<subtitle num="01" heading="Prescription Drug Affordability Board"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Abbreviated new drug application (ANDA)” means a submission to the FDA for the review and potential approval for marketing of a generic drug product, including bioequivalence data, as defined in 21 CFR §314.3 and described under 21 CFR §314.50.</text> </paragraph> <paragraph num="(2)"> <text>“Accelerated approval” means the FDA drug approval process defined in 21 U.S.C. §356(c)(1)(A).</text> </paragraph> <paragraph num="(3)"> <text>“Active ingredient” means a component of a drug that is intended to provide pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease, or to affect the structure or any function of the body, as defined in 21 CFR §314.3.</text> </paragraph> <paragraph num="(4)"> <text>“Active moiety” means the molecule or ion responsible for the physiological or pharmacological action of the drug substance, excluding those appended portions of the molecule that cause the drug to be an ester, salt, or other noncovalent derivative of the molecule, as defined in 21 CFR §314.3.</text> </paragraph> <paragraph num="(5)"> <text>“Average cost share” means the sum of the cost share of a prescription drug product for each patient, divided by the number of patients.</text> </paragraph> <paragraph num="(6)"> <text>“Average payor cost per patient” means the sum of the total dollars paid by all payors over the most recent calendar year, divided by the number of patients.</text> </paragraph> <paragraph num="(7)"> <text>“Average sales price (ASP)” has the meaning stated in 42 U.S.C §1395w-3a(c)(1).</text> </paragraph> <paragraph num="(8)"> <text>“Average total out-of-pocket cost” means the sum of all patient total out-of-pocket costs, divided by the number of patients.</text> </paragraph> <paragraph num="(9)"> <text>“Average wholesale price (AWP)” means the average suggested price paid by a retailer to buy a drug from a wholesaler, excluding price concessions, discounts, and rebates.</text> </paragraph> <paragraph num="(10)"> <text>“Biologic” means a biological product, as defined in 42 U.S.C. §262(i)(1).</text> </paragraph> <paragraph num="(11)"> <text>“Biologics license application (BLA)” means a request to the FDA to introduce, or deliver for introduction, a biological product, as defined in 21 CFR §600.3(h), into interstate commerce, as regulated under 21 CFR §600-680.</text> </paragraph> <paragraph num="(12)"> <text>“Biosimilar” means a biological product, as defined in 42 U.S.C. §262(i)(2), that is produced or distributed in accordance with a biologics license application approved under 42 U.S.C. §262(k)(3).</text> </paragraph> <paragraph num="(13)"> <text>“Board” has the meaning stated in Health-General Article, §21-2C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(14)"> <text>“Board staff” means an employee of the Board or a qualified independent third party that has contracted with the Board and is subject to a nondisclosure or confidentiality agreement.</text> </paragraph> <paragraph num="(15)"> <text>“Brand name drug” has the meaning stated in Health-General Article, §21-2C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(16)"> <text>“Carrier” has the meaning stated in Health-General Article, §19-132, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(17)"> <text>“Chair” means the chair of the Board, as provided in Health-General Article, §21-2C-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(18)"> <text>“Coinsurance” means the percentage of costs paid by the patient after meeting the deductible.</text> </paragraph> <paragraph num="(19)"> <text>“Consumer Price Index for All Urban Consumers (CPI-U)” means the measure of the average change over time in the prices paid by urban consumers for a defined market basket of consumer goods and services.</text> </paragraph> <paragraph num="(20)"> <text>“Copayment” means the set dollar amount that a patient pays for prescriptions or services covered by the patient’s health insurance, separate from the deductible.</text> </paragraph> <paragraph num="(21)"> <text>“Cost share” means the patient total out-of-pocket costs divided by gross spending.</text> </paragraph> <paragraph num="(22)"> <text>“Deductible” means the set amount a patient pays for health and medical services and products each calendar year before a health insurance plan begins to provide coverage, usually expressed in dollars.</text> </paragraph> <paragraph num="(23)"> <text>“Discount” means a monetary adjustment that reduces the price paid or dollar amount received by an entity engaging in a prescription drug transaction that occurs during the prescription drug transaction as reflected on the invoice.</text> </paragraph> <paragraph num="(24)"> <text>“Disease burden” means the impact of a health condition measured by financial cost, mortality, morbidity, severity, and epidemiological indicators.</text> </paragraph> <paragraph num="(25)"> <text>“Drug class” means the grouping of medications based on a common active ingredient, or ingredients, or by pharmacologic or therapeutic class.</text> </paragraph> <paragraph num="(26)"> <text>“Drug-specific patient access program” means a program designed to provide a patient with assistance in affording a prescription drug or paying for a prescription drug, including but not limited to the provision of a drug to a patient, coupons supplied by the manufacturer, donations to a nonprofit or foundation associated with the manufacturer, and donations to an independent nonprofit that are earmarked expressly for the manufacturer’s drugs.</text> </paragraph> <paragraph num="(27)"> <text>“Federal Supply Schedule (FSS)” means the drug pricing program under the collection of multiple award contracts used by federal agencies, U.S. territories, Indian tribes, and other specified entities to purchase supplies and services from outside vendors.</text> </paragraph> <paragraph num="(28)"> <text>“Food and Drug Administration (FDA)” means the federal agency of the U.S. Department of Health and Human Services tasked with protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and certain other consumer products.</text> </paragraph> <paragraph num="(29)"> <text>“Formulary” has the meaning stated in Insurance Article, §15-1601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(30)"> <text>“Fund” means the Prescription Drug Affordability Fund, as provided for in Health-General Article, §21-2C-11, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(31)"> <text>“Generic drug” has the meaning stated in Health-General Article, §21-2C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(32)"> <text>“Gross spending” means the sum of all monies paid for a prescription drug product for an individual patient in a calendar year.</text> </paragraph> <paragraph num="(33)"> <text>“Health economics and outcomes research” means the form of economic analysis that compares the relative costs and outcomes of different treatments, such as cost effectiveness analysis, comparative effectiveness research, health economic information analysis, and health technology assessments.</text> </paragraph> <paragraph num="(34)"> <text>“Health maintenance organization (HMO)” has the meaning stated in Health-General Article, §19-701, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(35)"> <text>“Indication” means labeling that discusses the disease or condition the drug product is intended to diagnose, treat, prevent, cure, or mitigate, including a description of the patient population.</text> </paragraph> <paragraph num="(36)"> <text>“Insurance benefit design” means the rules that determine the services covered by the plan and any other cost-sharing measures.</text> </paragraph> <paragraph num="(37)"> <text>“Managed care organization (MCO)” has the meaning stated in Health-General Article, §15-102.4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(38)"> <text>“Manufacturer” has the meaning stated in Health-General Article, §21-2C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(39)"> <text>“Maryland Medical Care Database (MCDB)” means the database established and maintained by the Maryland Health Care Commission pursuant to Health-General Article, §19-133, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(40)"> <text>“Medicaid” means the public health program jointly administered by the federal government and states that primarily serves low-income people (children, parents, and, in certain states, other adults) and some medically needy patients.</text> </paragraph> <paragraph num="(41)"> <text>“Medicare” means the health insurance program administered by the federal government for people 65 years old or older or with certain disabilities.</text> </paragraph> <paragraph num="(42)"> <text>“National average drug acquisition cost (NADAC)” means the pricing benchmark calculated from the Centers for Medicare & Medicaid Services’ (CMS) monthly surveys of retail pharmacies that reflects the average price pharmacies pay to acquire a drug from a wholesaler or manufacturer, excluding subsequent discounts or rebates from manufacturers to wholesalers or pharmacies.</text> </paragraph> <paragraph num="(43)"> <text>“National Drug Code (NDC)” means the unique three-segment number used for identification and reporting as set forth in 21 CFR §207.33.</text> </paragraph> <paragraph num="(44)"> <text>“Net cost” means the per-unit cost paid by payors and purchasers of a drug after accounting for all price concessions, discounts, and rebates.</text> </paragraph> <paragraph num="(45)"> <text>“Net price” means the per-unit amount received by manufacturers of a drug after accounting for price concessions, discounts, and rebates.</text> </paragraph> <paragraph num="(46)"> <text>“New drug application (NDA)” means a submission to the FDA for the review and potential approval for marketing of a drug product, which includes chemical, pharmacological, medical, biopharmaceutical, and statistical data, as defined in 21 CFR §314.3 and described under 21 CFR §314.50.</text> </paragraph> <paragraph num="(47)"> <text>“Other cost-sharing” means a program, benefit design, or other mechanism that determines a patient’s responsibility for a prescription drug product, such as a copayment, coinsurance, deductible, formulary, or other management tool.</text> </paragraph> <paragraph num="(48)"> <text>“Out-of-pocket costs” means the expenses for medical care, including prescription drug therapy, that are not reimbursed by insurance and are paid by a patient, including copayments, coinsurance, and deductibles for covered services, and the costs for all non-covered services.</text> </paragraph> <paragraph num="(49)"> <text>“Patient total out-of-pocket costs” means the sum of a patient’s out-of-pocket costs, including items such as copayments, coinsurance, and deductibles, in a calendar year.</text> </paragraph> <paragraph num="(50)"> <text>“Payor” means the entity other than the patient that is responsible for paying for health care costs, including health insurance carriers, health plan sponsors, PBMs, Medicare, Medicaid, MCOs, and HMOs.</text> </paragraph> <paragraph num="(51)"> <text>“Person” means an individual, limited liability company, partnership, corporation, association, county, and public or private organization of any character other than an agency.</text> </paragraph> <paragraph num="(52)"> <text>“Pharmacy benefit manager (PBM)” means a third-party administrator of prescription drug programs as stated in Insurance Article, §15-1601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(53)"> <text>“Prescription drug product” has the meaning stated in Health-General Article, §21-2C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(54)"> <text>“Price concession” means a mechanism other than a rebate or discount that reduces the price paid by a payor.</text> </paragraph> <paragraph num="(55)"> <text>“Proprietary” means something that is used, produced, or marketed under the exclusive legal right of the inventor, maker, or owner.</text> </paragraph> <paragraph num="(56)"> <text>“Purchaser” means an entity that purchases prescription drug products that is not a payor or patient.</text> </paragraph> <paragraph num="(57)"> <text>“Rebate” means a monetary adjustment that reduces the price paid or dollar amount received by an entity engaging in a prescription drug transaction that occurs after the prescription drug transaction.</text> </paragraph> <paragraph num="(58)"> <text>“Regulatory exclusivity” means any exclusive marketing rights or data exclusivity rights conferred by the FDA with respect to a pharmaceutical product other than patents, including but not limited to 180-day exclusivity, orphan drug exclusivity, new chemical entity exclusivity, data exclusivity, and pediatric exclusivity.</text> </paragraph> <paragraph num="(59)"> <text>“Stakeholder Council” means the Prescription Drug Affordability Stakeholder Council, as provided for in Health-General Article, §21-2C-04, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(60)"> <text>“Standard medical practice” means the customary treatment by medical professionals:</text> <paragraph num="(a)"> <text>Based on credible scientific evidence published in peer reviewed medical literature generally recognized by the relevant medical community;</text> </paragraph> <paragraph num="(b)"> <text>Consistent with physician specialty society recommendations; or</text> </paragraph> <paragraph num="(c)"> <text>Consistent with the views of physicians practicing in the relevant clinical areas.</text> </paragraph> </paragraph> <paragraph num="(61)"> <text>“State actual acquisition cost (SAAC)” has the meaning stated in COMAR 10.09.03.01B(42).</text> </paragraph> <paragraph num="(62)"> <text>“System net cost” means the sum of the net cost as defined above and the per unit patient out-of-pocket cost.</text> </paragraph> <paragraph num="(63)"> <text>“Therapeutic alternative” means a drug product that has one or more of the same or similar indications for use as a particular drug but is not a therapeutic equivalent to that drug.</text> </paragraph> <paragraph num="(64)"> <text>“Therapeutic class” means a group of drugs containing active moieties that share scientifically documented properties and are defined on the basis of any combination of three attributes: mechanism of action, physiologic effect, and chemical structure.</text> </paragraph> <paragraph num="(65)"> <text>“Therapeutic equivalent” has the meaning stated in 21 CFR §314.3.</text> </paragraph> <paragraph num="(66)"> <text>“Total gross spending” means the sum of all monies paid for a prescription drug product in a calendar year.</text> </paragraph> <paragraph num="(67)"> <text>“Total patient out-of-pocket cost” means the sum of all patient out-of-pocket costs in a calendar year, including items such as copayments, coinsurance, and deductibles.</text> </paragraph> <paragraph num="(68)"> <text>“Trade secret” has the meaning stated in Commercial Law Article, §11-1201, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(69)"> <text>“Wholesale acquisition cost (WAC)” means the manufacturer’s list price for a prescription drug product to wholesalers or direct purchasers in the United States, not including prompt pay or other discounts, rebates, or reductions in price, as reported in a wholesale price guide or other publication of prescription drug product pricing data.</text> </paragraph> <paragraph num="(70)"> <text>“Wholesale distributor” has the meaning stated in Health Occupations Article, §12-6C-01, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(71)"> <text>“Utilization” means information about the use of a drug including the number of units, the number of patients and number of prescriptions or claims.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Rules of Construction."> <paragraph num="A."> <text>Singular and Plural. In interpreting and applying this subtitle, the singular includes the plural.</text> </paragraph> <paragraph num="B."> <text>Computation of Time.</text> <paragraph num="(1)"> <text>In computing a period of time prescribed by this subtitle or an applicable statute, after a day, act, or event occurs, the following rules apply:</text> <paragraph num="(a)"> <text>The day of the act, event, or default after which the designated period of time begins to run is not included;</text> </paragraph> <paragraph num="(b)"> <text>If the period of time allowed is more than 7 days, intermediate Saturdays, Sundays, and legal holidays are counted;</text> </paragraph> <paragraph num="(c)"> <text>If the period of time allowed is 7 days or less, intermediate Saturdays, Sundays, and legal holidays are not counted; and</text> </paragraph> <paragraph num="(d)"> <text>The last day of the computed period is included unless it is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day that is a work day.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In computing a period of time prescribed by this subtitle or an applicable statute, before a day, act, or event occurs, the following rules apply:</text> <paragraph num="(a)"> <text>In determining the latest day for performing an act that is required to be performed a prescribed number of days before a certain day, act, or event, all days preceding that day, including intervening Saturdays, Sundays, and legal holidays, are counted in the number of days so prescribed; and</text> </paragraph> <paragraph num="(b)"> <text>The latest day is included in the determination unless it is a Saturday, Sunday, or legal holiday, in which event the latest day is the first preceding day that is a work day.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Open Meetings."> <paragraph num="A."> <text>Public Attendance.</text> <paragraph num="(1)"> <text>The general public is invited to attend and observe an open session of the Board.</text> </paragraph> <paragraph num="(2)"> <text>A member of the public attending an open session may not participate in the session, except when:</text> <paragraph num="(a)"> <text>The Board expressly invites public testimony, questions, comments, or other forms of public participation; or</text> </paragraph> <paragraph num="(b)"> <text>Public participation is otherwise authorized by law or regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Chair, or the Chair’s designee, may extend or waive any time requirement in this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Public Comments. A member of the public may provide oral public comment and written public comment in accordance with Regulation .05 of this chapter.</text> </paragraph> <paragraph num="C."> <text>Disruptive Conduct.</text> <paragraph num="(1)"> <text>An individual attending an open session of the Board may not engage in any conduct, including visual demonstrations such as waving of placards, signs, or banners, that disrupts the session or that interferes with the right of members of the public to attend and observe the session.</text> </paragraph> <paragraph num="(2)"> <text>Restoring Order. The presiding officer or Chair may:</text> <paragraph num="(a)"> <text>Order an individual who persists in conduct prohibited by §C(1) of this regulation, or who has violated any other regulation concerning the conduct of the open session, to be removed or disconnected from the session, and may request police assistance to restore order; and</text> </paragraph> <paragraph num="(b)"> <text>Recess the session while order is restored.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Confidential, Trade-Secret, and Proprietary Information."> <paragraph num="A."> <text>Collection of Records and Information.</text> <paragraph num="(1)"> <text>Identification.</text> <paragraph num="(a)"> <text>A person submitting information, including data and records, for the Board’s consideration under this subtitle and Health-General Article, Title 21, Subtitle 2C, Annotated Code of Maryland, shall:</text> <paragraph num="(i)"> <text>Clearly designate the specific information the person considers to be confidential, trade-secret, or proprietary; and</text> </paragraph> <paragraph num="(ii)"> <text>Submit a form certifying that the information so designated is not otherwise publicly available and has been handled and maintained to preserve its confidential, trade-secret, or proprietary nature.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Board may also determine that information it has received is confidential, trade-secret, or proprietary.</text> </paragraph> <paragraph num="(c)"> <text>The Board may seek additional information regarding whether the information is confidential, trade-secret, proprietary, or not otherwise publicly available from:</text> <paragraph num="(i)"> <text>The person submitting the information; or</text> </paragraph> <paragraph num="(ii)"> <text>To the extent the Board is able to determine who created the document or information, the person who created the document or information.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Designation. The information and data obtained by the Board under this subtitle and Health-General Article, Title 21, Subtitle 2C, Annotated Code of Maryland, that is not otherwise publicly available, is:</text> <paragraph num="(a)"> <text>Considered to be a trade secret and confidential and proprietary information; and</text> </paragraph> <paragraph num="(b)"> <text>Is not subject to inspection or disclosure under the Public Information Act.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Management of Information Received by the Board.</text> <paragraph num="(1)"> <text>Access to Information.</text> <paragraph num="(a)"> <text>Confidential, trade-secret, or proprietary information obtained by the Board under this subtitle and Health-General Article, Title 21, Subtitle 2C, Annotated Code of Maryland, may be accessed only by:</text> <paragraph num="(i)"> <text>Board members; and</text> </paragraph> <paragraph num="(ii)"> <text>Board staff including a qualified independent third party that has contracted with the Board and is subject to a nondisclosure agreement prohibiting disclosure of such information.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A person with access to confidential, trade-secret, or proprietary information shall maintain the confidentiality of the information in accordance with State Government Article, §10-617, and Health-General Article, §21-2C-10, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Consideration by Board.</text> <paragraph num="(a)"> <text>The Board may discuss confidential, trade-secret, and proprietary information in a closed session.</text> </paragraph> <paragraph num="(b)"> <text>The Board may not disclose confidential, trade-secret, or proprietary information in an open meeting, its public meeting materials, or its summary report of a cost review study.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Public Comment Procedures."> <paragraph num="A."> <text>Public Oral Comments for a Board Meeting.</text> <paragraph num="(1)"> <text>A member of the public may register to provide oral comments at a Board meeting by:</text> <paragraph num="(a)"> <text>Submitting a written notice that:</text> <paragraph num="(i)"> <text>Contains the individual’s name and email address or phone number;</text> </paragraph> <paragraph num="(ii)"> <text>Identifies whether the individual is affiliated with or commenting on behalf of an organization, agency, employer, or other entity; and</text> </paragraph> <paragraph num="(iii)"> <text>Identifies the agenda item the individual wishes to address; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Submitting the written notice to the Board at least 2 work days before the scheduled meeting.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Oral comments shall be made to the Board in open session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Public Written Comment Procedures.</text> <paragraph num="(1)"> <text>General Procedures.</text> <paragraph num="(a)"> <text>Unless expressly exempted, these provisions apply to all written public comments.</text> </paragraph> <paragraph num="(b)"> <text>Except as provided in §B(5) of this regulation, a member of the public may submit written comments to the Board by email, courier, or postal service.</text> </paragraph> <paragraph num="(c)"> <text>An individual submitting comments on behalf of an organization, agency, employer, or other entity shall:</text> <paragraph num="(i)"> <text>Submit the comments on the letterhead of the organization, agency, employer, or other entity; or</text> </paragraph> <paragraph num="(ii)"> <text>Disclose in writing the organization, agency, employer, or other entity with which the individual is affiliated;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Written comments received by the date prescribed by regulation or set by the Board will be:</text> <paragraph num="(i)"> <text>Shared with the Board;</text> </paragraph> <paragraph num="(ii)"> <text>Where applicable, made part of the record on the issue or matter before the Board where applicable; and</text> </paragraph> <paragraph num="(iii)"> <text>Posted on the Board’s website.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Board staff shall redact sociological information prior to posting the written comments on the Board website.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Public Written Comments for a Board Meeting.</text> <paragraph num="(a)"> <text>A member of the public may submit written comments concerning any agenda item of the Board or any decision pending before the Board in accordance with the procedures in §B(1) and (5) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Written comments received more than 2 work days before the scheduled Board meeting will be shared with the Board prior to the Board meeting.</text> </paragraph> <paragraph num="(c)"> <text>Written comments received less than 2 work days before the scheduled Board meeting will be shared with the Board and posted on the Board’s website after the scheduled meeting.</text> </paragraph> <paragraph num="(d)"> <text>Written comments received less than 2 work days before the scheduled Board meeting may be considered at the next Board meeting if the issue, matter, or decision is still pending.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Public Written Comments Authorized by Regulation. If a regulation expressly provides for public written comment, a member of the public may submit written comments to the Board within the time period prescribed by regulation in accordance with the procedures in §B(1) and (5) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Public Written Comments Requested by the Board. If the Board requests public comment by posting notice of the request and a due date on its website, a member of the public may submit written comments to the Board within the time period prescribed by the notice in accordance with the procedures in §B(1) and (5) this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Public Written Comments Containing Confidential, Trade-Secret, and Proprietary Information.</text> <paragraph num="(a)"> <text>A member of the public that wishes to submit written comments or attachments to written comments that contain confidential, trade-secret, and proprietary information shall:</text> <paragraph num="(i)"> <text>Redact the specific information the person considers to be confidential, trade-secret, or proprietary from the written comments and attachments;</text> </paragraph> <paragraph num="(ii)"> <text>Submit a form certifying that the redacted information is not otherwise publicly available and has been handled and maintained to preserve its confidential, trade-secret, or proprietary nature;</text> </paragraph> <paragraph num="(iii)"> <text>Submit the redacted comments and attachments to the Board by email, courier, or postal service; and</text> </paragraph> <paragraph num="(iv)"> <text>Submit the unredacted comments and attachments to the Board in paper form using a tracked common carrier, courier, or postal service, or electronically using secure file transfer.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Board and Board staff shall use, protect, and manage written comments and attachments containing confidential, trade-secret, and proprietary information in compliance with Regulation .04 of this chapter and Health-General Article, §§21-2C-03 and 21-2C-10, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Hearing Procedures."> <paragraph num="A."> <text>Scope.</text> <paragraph num="(1)"> <text>This regulation applies to hearings held:</text> <paragraph num="(a)"> <text>To gather information from the general public before making recommendations or taking action with respect to a policy; or</text> </paragraph> <paragraph num="(b)"> <text>For the purpose of receiving technical input, technical information or expert testimony before making recommendations or taking action with respect to a policy.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>This regulation does not apply to contested case hearings, any part of an appeal process or a hearing where the purpose is other than to gather information from:</text> <paragraph num="(a)"> <text>The public;</text> </paragraph> <paragraph num="(b)"> <text>A person with a specific interest in the issue including a stakeholder; or</text> </paragraph> <paragraph num="(c)"> <text>A person with specific knowledge, skills, expertise or technical information or input.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>General Hearing Provisions.</text> <paragraph num="(1)"> <text>Notice of Hearing.</text> <paragraph num="(a)"> <text>The Board shall publish a notice of the hearing on the Board’s website.</text> </paragraph> <paragraph num="(b)"> <text>The Board shall include in the notice of the hearing:</text> <paragraph num="(i)"> <text>The date and time of the hearing;</text> </paragraph> <paragraph num="(ii)"> <text>The physical location of the hearing, or link or registration information if the hearing is held remotely or live streamed;</text> </paragraph> <paragraph num="(iii)"> <text>The purpose of the hearing;</text> </paragraph> <paragraph num="(iv)"> <text>A statement that the Board will make reasonable accommodation for individuals with disabilities if these individuals advise the Board of their special needs by giving the Board reasonable advance notice; and</text> </paragraph> <paragraph num="(v)"> <text>Any other applicable information.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Conducting a Quasi-Legislative Hearing.</text> <paragraph num="(a)"> <text>A hearing held under this regulation is quasi-legislative and may be conducted or presided over by:</text> <paragraph num="(i)"> <text>The Board Chair; or</text> </paragraph> <paragraph num="(ii)"> <text>Designee.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Chair or designee shall determine the conduct of the hearing, including:</text> <paragraph num="(i)"> <text>The order of presentation; and</text> </paragraph> <paragraph num="(ii)"> <text>Time limits for questions and testimony.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The Chair or designee may:</text> <paragraph num="(i)"> <text>Order a person who engages in disruptive behavior that interferes with the orderly conduct of the hearing to be removed from the hearing;</text> </paragraph> <paragraph num="(ii)"> <text>Request police assistance to assure or restore order; and</text> </paragraph> <paragraph num="(iii)"> <text>Recess a disorderly hearing.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>For hearings held under this regulation the following does not apply:</text> <paragraph num="(i)"> <text>The right of cross-examination; and</text> </paragraph> <paragraph num="(ii)"> <text>The rules of evidence.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>If an exhibit is offered and is relevant to the hearing, the Chair or designee shall receive and mark the exhibit offered in testimony.</text> </paragraph> <paragraph num="(f)"> <text>Unless the Chair or designee believes that an oath provides some assurance of veracity, formality, or decorum to the hearing, the Chair or designee may dispense with the formality of an oath.</text> </paragraph> <paragraph num="(g)"> <text>The Chair or designee has discretion to:</text> <paragraph num="(i)"> <text>Postpone or continue the hearing; and</text> </paragraph> <paragraph num="(ii)"> <text>Accept additional materials beyond the date of the hearing.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Informational Hearings.</text> <paragraph num="(1)"> <text>Convening an Informational Hearing.</text> <paragraph num="(a)"> <text>The Board may, through Board staff, convene informational hearings to receive input, information, and opinions from the public and stakeholders to inform the consideration and development of a recommendation, policy, regulation or action.</text> </paragraph> <paragraph num="(b)"> <text>The Board shall provide public notice of the hearing in accordance with §B of this regulation.</text> </paragraph> <paragraph num="(c)"> <text>In advance of the scheduled hearing, the Board may identify and publish questions, topics or matters about which the Board would like to receive information.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Conducting an Informational Hearing.</text> <paragraph num="(a)"> <text>A person who wishes to provide input, information and opinions by testifying shall:</text> <paragraph num="(i)"> <text>Register to speak in advance of the hearing as directed by staff; and</text> </paragraph> <paragraph num="(ii)"> <text>Provide the information requested by staff.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Chair or designee shall give all persons who register to speak an opportunity to do so but may limit repetitious testimony.</text> </paragraph> <paragraph num="(c)"> <text>The Chair or designee may:</text> <paragraph num="(i)"> <text>Allow questions from the audience;</text> </paragraph> <paragraph num="(ii)"> <text>Take questions from the audience and redirect the questions to others present at the hearing;</text> </paragraph> <paragraph num="(iii)"> <text>Ask questions of anyone present at the hearing; and</text> </paragraph> <paragraph num="(iv)"> <text>Refer questions to Board staff who may respond after the hearing.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Following an informational hearing, Board staff may provide the Board with summaries of the information received and staff’s recommendations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Technical Hearings.</text> <paragraph num="(1)"> <text>Convening a Technical Hearing.</text> <paragraph num="(a)"> <text>The Board may convene a hearing for the purpose of receiving technical input, technical information or expert testimony from persons with specific knowledge, skills or expertise.</text> </paragraph> <paragraph num="(b)"> <text>The Board shall provide public notice of the hearing in accordance with §B of this regulation.</text> </paragraph> <paragraph num="(c)"> <text>The Board shall identify and invite a person to testify at a technical hearing to provide technical input, technical information or expert testimony on an issue the Board wishes to explore.</text> </paragraph> <paragraph num="(d)"> <text>The Board may request that a person invited to testify submit a written statement to the Board two business days before the scheduled hearing.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Conducting a Technical Hearing.</text> <paragraph num="(a)"> <text>The Chair may:</text> <paragraph num="(i)"> <text>Ask questions of any person present at the hearing;</text> </paragraph> <paragraph num="(ii)"> <text>Allow each Board member to ask questions of any person present at the hearing; and</text> </paragraph> <paragraph num="(iii)"> <text>Refer questions to Board staff who may respond after the hearing.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Following a technical hearing, Board staff may provide the Board with summaries of the information received and staff’s recommendations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Recordings of Quasi-Legislative Hearings.</text> <paragraph num="(1)"> <text>At the Board’s discretion, the Board or court reporter service may record the hearing.</text> </paragraph> <paragraph num="(2)"> <text>If a court reporter service records the hearing:</text> <paragraph num="(a)"> <text>The Board shall arrange for the court reporter service to retain the recording for 1 year following the final decision or action; and</text> </paragraph> <paragraph num="(b)"> <text>A person who desires a copy of the transcript may purchase a copy from the court reporter service.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If Board staff records the hearing:</text> <paragraph num="(a)"> <text>The Board shall keep the recording with the original of the record; and</text> </paragraph> <paragraph num="(b)"> <text>A person who desires a copy of the transcript may purchase a copy from the Board for a reasonable cost in accordance with COMAR 14.01.03, if a transcript has been prepared.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Hearing Record.</text> <paragraph num="(1)"> <text>The Chair or designee controls the record.</text> </paragraph> <paragraph num="(2)"> <text>The Chair or designee shall assemble a record that may include the following:</text> <paragraph num="(a)"> <text>Exhibits and documents entered into the record;</text> </paragraph> <paragraph num="(b)"> <text>Documents concerning the hearing such as a proposed regulation, the purpose of the hearing and public notice of the hearing;</text> </paragraph> <paragraph num="(c)"> <text>Relevant supporting and opposing documentation obtained before, during, and subsequent to the hearing;</text> </paragraph> <paragraph num="(d)"> <text>The register of persons who attended the hearing including name, address, and any affiliation relevant to the hearing;</text> </paragraph> <paragraph num="(e)"> <text>In accordance with §E of this regulation, any:</text> <paragraph num="(i)"> <text>Full or partial transcript of the hearing made or purchased by the Board, and</text> </paragraph> <paragraph num="(ii)"> <text>A recording or stenographic notes of the hearing made by the Board; and</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Board staff’s summaries of the information received and staff’s recommendations, if any.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The record of a policy action may include the hearing records of multiple hearings, public written comments, comments at Board meetings, Stakeholder Council input, any input, data, or information received and considered by the Board and any final action or decision.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Health-General Article, §21-2C-03(f), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 6, 2021 (48:18 Md. R. 692)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective December 25, 2023 (50:25 Md. R. 1089); April 28, 2025 (52:8 Md. R. 359)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted effective December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted effective December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 adopted effective December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted effective April 28, 2025 (52:8 Md. R. 359)</annotation> </annotations> </chapter> <chapter num="02" heading="Prescription Drug Affordability Fund"> <regulation prefix="Regulation" num=".01" heading="Prescription Drug Affordability Fund."> <paragraph num="A."> <text>The Prescription Drug Affordability Fund is a special, non-lapsing fund that is not subject to State Procurement Article, §7–302, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Prescription Drug Affordability Fund consists of:</text> <paragraph num="(1)"> <text>The assessment provided for by Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Money appropriated by the State budget;</text> </paragraph> <paragraph num="(3)"> <text>Interest earnings; and</text> </paragraph> <paragraph num="(4)"> <text>Any other money from any other source accepted for the benefit of the Fund.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Fee Assessment, Exemption, Waiver, and Collection."> <paragraph num="A."> <text>Annual Assessment.</text> <paragraph num="(1)"> <text>In each State fiscal year, the Board shall issue a fee assessment to each entity identified in Health-General Article, §21-2C-11, Annotated Code of Maryland, and Regulation .03 of this chapter and collect the assessment.</text> </paragraph> <paragraph num="(2)"> <text>Unless the entity requests and is granted an exemption from the assessment, the entity shall pay the assessment by October 1.</text> </paragraph> <paragraph num="(3)"> <text>An entity may pay the assessment by ACH transfer, wire transfer, or check.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Exemption from Assessment.</text> <paragraph num="(1)"> <text>An entity may request an exemption from the annual assessment by submitting a completed exemption form to the Board within 30 days of the Board transmitting the fee assessment.</text> </paragraph> <paragraph num="(2)"> <text>The exemption form shall be executed under oath and attest that:</text> <paragraph num="(a)"> <text>The entity is not a qualifying entity as defined in COMAR 14.01.01 and Health-General Article, §21-2C-11(b)(1), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>The entity no longer does business in Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>The entity is not subject to assessment for another reason with an explanation of that reason.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The entity bears the burden of demonstrating it qualifies for the claimed exemption and shall submit documentation in support of the exemption request, as follows:</text> <paragraph num="(a)"> <text>The entity shall provide an executed certificate of business record (available on the Board’s website) authenticating any business record the entity submits in support of the request for exemption.</text> </paragraph> <paragraph num="(b)"> <text>For carriers, supporting documentation may include but is not limited to NAIC “Annual Statement” including the cover page (signature page/jurat), Maryland State page, and Schedule T, acknowledgment from Maryland Insurance Administration of merger/change in subsidiary status, and SEC 10-K (any applicable exhibits).</text> </paragraph> <paragraph num="(c)"> <text>For manufacturers, distributors, and PBMs, supporting documentation may include but is not limited to discharge in bankruptcy, documentation of merger/change in corporate structure/subsidiary status (for example, SEC 10-K and any applicable exhibits), acknowledgment from Board of Pharmacy of expiration of license/registration, expired license/registration, documentation that manufacturer/distributor provides only non-covered products (for example, provides gases only, product or inventory lists), and documentation that the entity does not do business in Maryland.</text> </paragraph> <paragraph num="(d)"> <text>If the entity is unable to provide any documentation supporting the claimed exemption, the entity shall provide an affidavit (form on Board’s website) from the chief operating officer, chief financial officer, or other authorized official attesting to the factual basis of the claimed exemption.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>While the exemption request is pending, payment of the assessment is deferred.</text> </paragraph> <paragraph num="(5)"> <text>The Board shall determine all requests for exemption promptly.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Reconsideration.</text> <paragraph num="(1)"> <text>Within 15 days of the notice denying the exemption, an entity may file for reconsideration of the denial of a request for exemption by submitting:</text> <paragraph num="(a)"> <text>A request for reconsideration on the form provided; and</text> </paragraph> <paragraph num="(b)"> <text>Additional information or documentation in support of the claimed exemption.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A request for reconsideration that does not include additional information or additional documentation will be denied.</text> </paragraph> <paragraph num="(3)"> <text>If the request for exemption is denied after reconsideration, the entity shall pay the assessment within 30 days of the issuance of the notice of denial.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Collection and Penalties.</text> <paragraph num="(1)"> <text>Any fee assessment not paid within 30 days of the payment due date may be subject to an interest penalty to be determined and collected by the Board.</text> </paragraph> <paragraph num="(2)"> <text>In addition to any penalties the Board may impose on an entity that fails to pay the fee assessed by the Board in a timely manner, the Board may also refer an entity’s delinquent account to the Department of Budget and Management’s Central Collection Unit, pursuant to the procedures in State Finance and Procurement Article, Title 3, Subtitle 3, Annotated Code of Maryland, and COMAR 17.01.01.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Maintenance of Assessment List.</text> <paragraph num="(1)"> <text>The Board shall maintain a list of entities that are subject to assessment as identified in Health-General Article, §21-2C-11, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>At any time, Board staff may:</text> <paragraph num="(a)"> <text>Review the list, but staff shall review the list on at least an annual basis;</text> </paragraph> <paragraph num="(b)"> <text>Add additional entities reported by or obtained from other agencies or identified by staff; and</text> </paragraph> <paragraph num="(c)"> <text>Remove entities if the entity:</text> <paragraph num="(i)"> <text>Is no longer a going concern; or</text> </paragraph> <paragraph num="(ii)"> <text>Has been determined to be exempt from assessment.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Amount of Assessment."> <paragraph num="A."> <text>Entities identified in Health-General Article, §212C11, Annotated Code of Maryland, shall be subject to the following fee schedule:</text> <paragraph num="(1)"> <text>Manufacturers engaged in wholesale distribution, as defined in Health Occupations Article, §126C01, Annotated Code of Maryland, shall pay an assessment of $1,000;</text> </paragraph> <paragraph num="(2)"> <text>Wholesale distributors, as defined in Health Occupations Article, §126C01, Annotated Code of Maryland, that distribute prescription drugs shall pay an assessment of $1,000;</text> </paragraph> <paragraph num="(3)"> <text>Pharmacy benefits managers, as defined in Insurance Article, §151601, Annotated Code of Maryland, shall pay an assessment of $1,000; and</text> </paragraph> <paragraph num="(4)"> <text>Carriers that provide health benefit plans, as defined in Health-General Article, §19-132(e), Annotated Code of Maryland, shall pay an assessment of $1,000.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An entity may request to pay the annual assessment in installments by submitting a letter to the Board demonstrating significant financial hardship in paying the assessment in a single payment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Use of Funds."> <paragraph num="A."> <text>The Fund may only be used to finance the operation of the Board, as permitted in Health-General Article, §21–2C–11(c)(6), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Interest earned from the monies collected through the assessment in Regulation .02 of this chapter shall be retained to the credit of the Fund.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Surplus Funds."> <text>If the amount of assessed funds collected in a calendar year exceeds the cap identified in Health-General Article, §21–2C–11(B)(4), the Board shall:</text> <paragraph num="A."> <text>Issue a notice of such surplus; and</text> </paragraph> <paragraph num="B."> <text>Remit the surplus funds in a fair and equitable manner across all qualifying entities that have paid the assessment.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Health-General Article, §§21-2C-03(f) and 21-2C-11, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 6, 2021 (48:18 Md. R. 692)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective November 16, 2021 (48:26 Md. R. 1107); emergency provision expired May 6, 2022</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective August 22, 2022 (49:17 Md. R. 791); October 2, 2023 (50:19 Md. R 854)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective August 19, 2024 (51:16 Md. R. 743)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective October 2, 2023 (50:19 Md. R 854)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective November 16, 2021 (48:26 Md. R. 1107); emergency provision expired May 6, 2022</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective August 22, 2022 (49:17 Md. R. 791)</annotation> </annotations> </chapter> <chapter num="03" heading="Public Information Act"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets out procedures under the Public Information Act for filing and processing requests for the public records of the Prescription Drug Affordability Board.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Policy."> <text>It is the policy of the Board to facilitate access to the public records of the Board, if access is allowed by law, by minimizing costs and time delays to applicants.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Copy” means any form of reproduction using a photocopying machine or other reproduction technology, including a paper copy, an electronic copy, a printout, or an image.</text> </paragraph> <paragraph num="(4)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Executive Director” means the Executive Director of the Board as provided in Health-General Article, §21-2C-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Indigent” has the meaning stated in General Provisions Article, §4-206(a)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Metadata” has the meaning stated in General Provisions Article, §4-205(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“PIA coordinator” means the Board employee who is responsible for accepting requests for public records.</text> </paragraph> <paragraph num="(10)"> <text>“Public Access Ombudsman” means the official appointed under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, to resolve disputes under the Act.</text> </paragraph> <paragraph num="(11)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Reasonable fee” has the meaning stated in General Provisions Article, §4-206(a)(3), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Sociological information” means personal phone number, personal email address, and personal home address.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Official Custodian."> <text>Unless otherwise provided by law, the Executive Director is the official custodian of the public records of the Board.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Request for Public Records."> <text>Any person may request to inspect or copy the public records of the Board.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Written Request May Be Required."> <paragraph num="A."> <text>Inspection.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this chapter, the custodian shall make public records of the Board available for inspection by an applicant without demanding a written request.</text> </paragraph> <paragraph num="(2)"> <text>The custodian shall require a written request if the custodian reasonably believes that:</text> <paragraph num="(a)"> <text>The Act or any other law may prevent the disclosure of the public record to the applicant; or</text> </paragraph> <paragraph num="(b)"> <text>A written request will materially assist the Board in responding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Copies. If the applicant requests one or more copies of any public record of the Board, the custodian may require a written request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Contents of Written Request."> <paragraph num="A."> <text>A written request shall:</text> <paragraph num="(1)"> <text>Contain the applicant’s contact information; and</text> </paragraph> <paragraph num="(2)"> <text>Reasonably identify, by brief description, the public record sought.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Written requests from the same requestor may be consolidated</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Addressee."> <text>A request to inspect or copy a public record of the Board shall be addressed to the custodian of the record or to the Board’s PIA coordinator as designated under General Provisions Article, §4-503, Annotated Code of Maryland. If the custodian is unknown, the request may be addressed to “Executive Director” or “PIA Coordinator”.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Response to Request."> <paragraph num="A."> <text>Grant of Request.</text> <paragraph num="(1)"> <text>If the custodian decides to grant a request for inspection, the custodian shall produce the public record for inspection:</text> <paragraph num="(a)"> <text>Immediately; or</text> </paragraph> <paragraph num="(b)"> <text>Within a reasonable time period, not to exceed 30 days after the date of the request, if that period is needed to retrieve the public record and conduct any necessary review.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the custodian reasonably believes that it will take more than 10 working days to produce the public record, the custodian shall indicate in writing or by electronic mail within 10 working days after receipt of the request:</text> <paragraph num="(a)"> <text>The amount of time that the custodian anticipates it will take to produce the public record;</text> </paragraph> <paragraph num="(b)"> <text>An estimate of the range of fees that may be charged to comply with the request for public records; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why it will take more than 10 working days to produce the records.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Denial of Request. If the custodian decides to deny a request for inspection, the custodian shall:</text> <paragraph num="(1)"> <text>Deny the request within 30 days after the request; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the applicant of the denial.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a request is denied, the custodian shall provide the applicant, at the time of the denial or within 10 working days, a written statement that includes:</text> <paragraph num="(1)"> <text>The reasons for the denial, including, for records denied under General Provisions Article, §4-343, Annotated Code of Maryland, a brief explanation of:</text> <paragraph num="(a)"> <text>Why the denial is necessary, that is, why disclosure of the public record would be contrary to the public interest; and</text> </paragraph> <paragraph num="(b)"> <text>An explanation of why redacting information would not address the reasons for the denial;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The legal authority for the denial;</text> </paragraph> <paragraph num="(3)"> <text>Without disclosing the protected information, a brief description of the undisclosed record or records that will enable the applicant to assess the applicability of the legal authority for the denial; and</text> </paragraph> <paragraph num="(4)"> <text>Notice of the remedies available for review of the denial.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a requested public record is not in the custody or control of the person to whom application is made, that person shall, within 10 working days after receipt of the request:</text> <paragraph num="(1)"> <text>Notify the applicant that the person does not have custody or control of the requested public record; and</text> </paragraph> <paragraph num="(2)"> <text>If the person knows, include:</text> <paragraph num="(a)"> <text>The name of the custodian of the public record; and</text> </paragraph> <paragraph num="(b)"> <text>The location or possible location of the public record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Any time limit imposed by §§A—C of this regulation may be extended, with the consent of the applicant, for an additional period of up to 30 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Notice to Person Potentially Affected by Disclosure."> <paragraph num="A."> <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Board to any person who, in the judgment of the custodian, could be adversely affected by disclosure of that public record.</text> </paragraph> <paragraph num="B."> <text>The custodian may consider the views of the potentially affected person before deciding whether to disclose the public record to an applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Electronic Records."> <paragraph num="A."> <text>Except as provided in §§C and D of this regulation, the custodian shall provide an applicant with a copy of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(1)"> <text>The public record is in a searchable and analyzable electronic format;</text> </paragraph> <paragraph num="(2)"> <text>The applicant requests a copy of the public record in a searchable and analyzable electronic format; and</text> </paragraph> <paragraph num="(3)"> <text>The custodian is able to provide a copy of the public record, in whole or in part, in a searchable and analyzable electronic format that does not disclose information that is protected from disclosure under the Act.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The custodian shall provide a portion of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(1)"> <text>Requested by the applicant; and</text> </paragraph> <paragraph num="(2)"> <text>The custodian is able to do so by using the existing functions of the database or software program that contains the searchable and analyzable data.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The custodian is not required to:</text> <paragraph num="(1)"> <text>Create or reconstruct a public record in an electronic format if the public record is not available in an electronic format;</text> </paragraph> <paragraph num="(2)"> <text>Release an electronic record in a format that would jeopardize or compromise the security or integrity of the original record or of any proprietary software in which the record is maintained; or</text> </paragraph> <paragraph num="(3)"> <text>Create, compile, or program a new public record.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The custodian may remove metadata from an electronic document before providing the electronic record to an applicant by:</text> <paragraph num="(1)"> <text>Using a software program or function; or</text> </paragraph> <paragraph num="(2)"> <text>Converting the electronic record into a different searchable and analyzable format.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Public Record Destroyed or Lost."> <text>If the person to whom application is made knows that a requested public record of the Board has been destroyed or lost, that person shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not available; and</text> </paragraph> <paragraph num="B."> <text>Explain the reasons why the public record cannot be produced.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Availability of Judicial and Administrative Review."> <text>If the custodian denies a request to inspect or copy a public record of the Board, the applicant may file an action for judicial enforcement under General Provisions Article, §4-362, Annotated Code of Maryland, without pursuing the remedies set forth in General Provisions Article, Subtitles 1A and 1B, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>Denial Pending Court Order.</text> <paragraph num="(1)"> <text>If, in the opinion of the Executive Director, disclosure of a public record of the Board otherwise subject to disclosure under the Act would do substantial injury to the public interest, the Executive Director may temporarily deny the request to obtain a court order allowing nondisclosure.</text> </paragraph> <paragraph num="(2)"> <text>The temporary denial shall be in writing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Circuit Court Review.</text> <paragraph num="(1)"> <text>Within 10 working days after the denial, the Executive Director shall apply to the appropriate circuit court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of the Executive Director’s complaint shall be served on the applicant in the manner provided for service of process by the Maryland Rules of Procedure</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Fees."> <paragraph num="A."> <text>Except as provided in §§B and C of this regulation, the fee schedule for copying and certifying copies of public records of the Board is as follows:</text> <paragraph num="(1)"> <text>For each copy made by a standard printer or a photocopying machine within the Board, the fee is 25 cents per page;</text> </paragraph> <paragraph num="(2)"> <text>For each copy made other than by a standard printer or a photocopying machine within the Board, the fee shall be based on the actual cost of reproduction; and</text> </paragraph> <paragraph num="(3)"> <text>For a public record certified as a true copy, an additional fee of $1 per page (or, if appropriate, per item) shall be charged.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Minimum Fee. A charge may not be made if the total fee is $1 or less.</text> </paragraph> <paragraph num="C."> <text>If the fee for copies or certified copies of any public record of the Board is specifically set by a law other than the Act or this regulation, the custodian shall charge the prescribed fee.</text> </paragraph> <paragraph num="D."> <text>If the custodian cannot copy a public record within the Board, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Board. The custodian shall:</text> <paragraph num="(1)"> <text>Collect from the applicant a fee to cover the actual cost of reproduction; or</text> </paragraph> <paragraph num="(2)"> <text>Direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Before copying a public record of the Board, the custodian shall estimate both the cost of reproduction and the search and preparation fee under §F of this regulation and either:</text> <paragraph num="(1)"> <text>Obtain the agreement of the applicant to pay the cost; or</text> </paragraph> <paragraph num="(2)"> <text>Demand prepayment of all or a portion of the cost.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Search and Preparation Fee.</text> <paragraph num="(1)"> <text>Except as provided in §G of this regulation, the custodian may charge a reasonable fee for time that an official or employee of the Board spends to:</text> <paragraph num="(a)"> <text>Search for requested public records;</text> </paragraph> <paragraph num="(b)"> <text>Review requested public records for potential disclosure; and</text> </paragraph> <paragraph num="(c)"> <text>Prepare public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The custodian shall determine the fee under §F(1) of this regulation by multiplying the employee’s salary, prorated to an hourly basis, by the actual time attributable to the search for, review of, and preparation of public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The custodian may not charge a search or preparation fee under §F of this regulation for the first 2 hours needed to search for and prepare a public record for inspection.</text> </paragraph> <paragraph num="H."> <text>Waiver or Reduction of Fee.</text> <paragraph num="(1)"> <text>The official custodian may waive or reduce any fee set under this regulation if:</text> <paragraph num="(a)"> <text>The applicant requests a waiver; and</text> </paragraph> <paragraph num="(b)"> <text>Either:</text> <paragraph num="(i)"> <text>The custodian determines that the waiver or reduction is in the public interest; or</text> </paragraph> <paragraph num="(ii)"> <text>The applicant is indigent and files an affidavit verifying the facts that support a claim of indigency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>In determining whether a fee waiver is in the public interest, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or to a third party, the custodian may charge the applicant for the cost of postage or delivery.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Time and Place of Inspection."> <paragraph num="A."> <text>An applicant may inspect any public record of the Board that the applicant is entitled to inspect during the normal working hours of the Board.</text> </paragraph> <paragraph num="B."> <text>The inspection shall occur where the public record is located unless the custodian, after taking into account the applicant's expressed wish, determines that another place is more suitable and convenient.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Sociological Information."> <text>Except for use in carrying out the custodian’s governmental functions or if disclosure is otherwise required by law, and in compliance with General Provisions Article, §4-330, Annotated Code of Maryland, a custodian may not disclose under the Act, and shall deny a request for inspection or copying of, the part of a public record that contains sociological information relating to an individual.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article §§4-101—4-601; Health-General Article, §21-2C-03(f)(1), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 2, 2023 (50:19 Md. R. 854)</annotation> </annotations> </chapter> <chapter num="04" heading="Cost Review Study Process"> <regulation prefix="Regulation" num=".01" heading="Public Reporting of Drug Affordability Issues."> <paragraph num="A."> <text>Individual members of the public may report their personal experience with a drug or drugs that have caused or are causing an affordability issue for the individual.</text> </paragraph> <paragraph num="B."> <text>Individuals may report a drug:</text> <paragraph num="(1)"> <text>By completing the form available on the Board’s website electronically; or</text> </paragraph> <paragraph num="(2)"> <text>By downloading or obtaining the form from the Board, completing the form, and submitting it to the Board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Blank forms may be requested by contacting the Board by email or phone.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Identifying Drugs Eligible for Cost Review."> <paragraph num="A."> <text>The Board shall apply the metrics specified in Health-General Article, §21-2C-08(c), Annotated Code of Maryland, and this regulation to the following data sets to identify drugs eligible for selection for a cost review study:</text> <paragraph num="(1)"> <text>The claims data in the MCDB;</text> </paragraph> <paragraph num="(2)"> <text>Available subsets of claims data in the MCDB, such as the commercial market, Medicaid, and Medicare; and</text> </paragraph> <paragraph num="(3)"> <text>The data obtained from governmental and commercial databases, other databases, and other data sets as available.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board may identify the prescription drug products that meet these statutory metrics and regulatory criteria on at least an annual basis.</text> </paragraph> <paragraph num="C."> <text>Data Management.</text> <paragraph num="(1)"> <text>For any metric requiring adjustment for inflation, the adjustment for inflation shall be based on the Consumer Price Index for All Urban Consumers (CPI-U) as reported by the U.S. Bureau of Labor Statistics.</text> </paragraph> <paragraph num="(2)"> <text>For any data-based metric, the Board may account for data errors and outliers.</text> </paragraph> </paragraph> <paragraph num="D."> <text>To the extent practicable, and in addition to the statutory metrics set forth in Health-General Article, §21-2C-08(c), Annotated Code of Maryland, the Board may consider the following additional metrics and criteria to identify prescription drug products eligible for selection for a cost review study:</text> <paragraph num="(1)"> <text>Aggregated Spending and Pricing Data:</text> <paragraph num="(a)"> <text>The 100 prescription drug products with the highest total gross spending in the most recent available calendar year;</text> </paragraph> <paragraph num="(b)"> <text>The 100 prescription drug products with the highest total gross spending per patient in the most recent available calendar year;</text> </paragraph> <paragraph num="(c)"> <text>The 100 prescription drug products with the highest percent change increase in WAC over the most recent available calendar year;</text> </paragraph> <paragraph num="(d)"> <text>The 100 prescription drug products with the highest percent change increase in WAC over the most recent available 5-year period;</text> </paragraph> <paragraph num="(e)"> <text>The 100 prescription drug products with the highest dollar increase in WAC per year or course of treatment over the most recent available calendar year;</text> </paragraph> <paragraph num="(f)"> <text>The 100 prescription drug products with the highest dollar increase in WAC over the most recent available 5-year period; and</text> </paragraph> <paragraph num="(g)"> <text>The 100 prescription drug products with the highest percent change increase in total gross spending;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Patient Out-of-Pocket Costs:</text> <paragraph num="(a)"> <text>The 100 prescription drug products with the highest total patient out-of-pocket costs in the most recent available calendar year;</text> </paragraph> <paragraph num="(b)"> <text>The 100 prescription drug products with the highest average patient total out-of-pocket costs in the most recent available calendar year;</text> </paragraph> <paragraph num="(c)"> <text>The 100 prescription drug products ranked at the 50th percentile for patient total out-of-pocket costs in the most recent available calendar year; and</text> </paragraph> <paragraph num="(d)"> <text>The 100 prescription drug products ranked at the 90th percentile for patient total out-of-pocket costs; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any prescription drug product added by the Board to the list of prescription drug products eligible for cost review under this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>At an open meeting, a Board member may propose one or more additional prescription drug products for inclusion on the list of drugs eligible for cost review by:</text> <paragraph num="(1)"> <text>Moving that the prescription drug product or products be added to the eligible list; and</text> </paragraph> <paragraph num="(2)"> <text>Identifying how the prescription drug product or products may create affordability challenges for the State health care system or patients.</text> </paragraph> </paragraph> <paragraph num="F."> <text>After discussion at an open meeting, the Board may vote to add one or more prescription drug products to the list of drugs eligible for selection for a cost review study.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Selecting Drugs for Cost Review."> <paragraph num="A."> <text>Board staff may provide the Board with a dashboard containing the prescription drug products identified under the statutory metrics and regulatory criteria in Regulation .02 of this chapter.</text> </paragraph> <paragraph num="B."> <text>To the extent practicable, Board staff may provide the following information for each prescription drug product in the dashboard:</text> <paragraph num="(1)"> <text>FDA Approval:</text> <paragraph num="(a)"> <text>The date the FDA first approved the prescription drug product;</text> </paragraph> <paragraph num="(b)"> <text>If applicable, the date the last patent expired or will expire;</text> </paragraph> <paragraph num="(c)"> <text>Whether the prescription drug product was approved through an FDA accelerated approval pathway; and</text> </paragraph> <paragraph num="(d)"> <text>Whether the prescription drug product is designated by the Secretary of the FDA, under 21 U.S.C. §360bb, as a drug for a rare disease or condition;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Therapeutic Class:</text> <paragraph num="(a)"> <text>The class of the prescription drug product as identified in a recognized classification system;</text> </paragraph> <paragraph num="(b)"> <text>Whether the prescription drug product is the only prescription drug product in its class;</text> </paragraph> <paragraph num="(c)"> <text>Any therapeutic equivalent prescription drug product identified by examination of the FDA Orange Book, FDA Purple Book, or other therapeutic equivalence databases; and</text> </paragraph> <paragraph num="(d)"> <text>The availability and number of therapeutic equivalents for sale in the State;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Utilization, Spending and Price Data:</text> <paragraph num="(a)"> <text>The patient count for the prescription drug product in the most recent available calendar year;</text> </paragraph> <paragraph num="(b)"> <text>The total gross spending for the prescription drug product in the most recent available calendar year;</text> </paragraph> <paragraph num="(c)"> <text>The total gross spending per patient for the prescription drug product in the most recent available calendar year;</text> </paragraph> <paragraph num="(d)"> <text>The WAC on January 1 of the current calendar year, on January 1 of the previous calendar year, and at launch of the product;</text> </paragraph> <paragraph num="(e)"> <text>The percent increase in WAC of the prescription drug product over the most recent available calendar year;</text> </paragraph> <paragraph num="(f)"> <text>The percent increase in WAC of the prescription drug product over the most recent available 5-year period;</text> </paragraph> <paragraph num="(g)"> <text>The dollar increase in WAC over the most recent available calendar year;</text> </paragraph> <paragraph num="(h)"> <text>The dollar increase in WAC over the most recent available 5-year period;</text> </paragraph> <paragraph num="(i)"> <text>The dollar increase in WAC per year or course of treatment over the most recent available calendar year;</text> </paragraph> <paragraph num="(j)"> <text>The percent increase in overall total gross spending for the prescription drug product in the most recent available calendar year;</text> </paragraph> <paragraph num="(k)"> <text>The estimated percentage of manufacturer national net sales to gross sales of a prescription drug product for the most recently reported year;</text> </paragraph> <paragraph num="(l)"> <text>The average payor cost per patient for the prescription drug product in the most recent available calendar year; and</text> </paragraph> <paragraph num="(m)"> <text>The average cost share for the prescription drug product;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Patient Out-of-Pocket:</text> <paragraph num="(a)"> <text>The total patient out-of-pocket cost for the prescription drug product in the most recent available calendar year;</text> </paragraph> <paragraph num="(b)"> <text>The average total out-of-pocket costs in the most recent available calendar year;</text> </paragraph> <paragraph num="(c)"> <text>Patient total out-of-pocket costs ranked at the 50th percentile in the most recent available calendar year; and</text> </paragraph> <paragraph num="(d)"> <text>Patient total out-of-pocket costs ranked at the 90th percentile in the most recent available calendar year;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Whether the prescription drug product is currently in active shortage status; and</text> </paragraph> <paragraph num="(6)"> <text>Whether the prescription drug product is currently subject to or has been subject to the Medicare Drug Price Negotiation Program, under the Inflation Reduction Act (IRA) (Public Law 117-169).</text> </paragraph> </paragraph> <paragraph num="C."> <text>Selecting Drugs for Referral to Stakeholder Council.</text> <paragraph num="(1)"> <text>The Board may select one or more prescription drug products identified in Regulation .02 of this chapter as eligible for cost review to refer to the Stakeholder Council.</text> </paragraph> <paragraph num="(2)"> <text>Prior to a Board meeting, a Board member may request that a prescription drug product or products be placed on the Board’s meeting agenda for consideration for referral to the Stakeholder Council by submitting the proprietary drug name or nonproprietary name, as applicable, and NDC to the Board Chair in writing.</text> </paragraph> <paragraph num="(3)"> <text>The Board Chair may include the prescription drug product name and dose on the Board’s agenda.</text> </paragraph> <paragraph num="(4)"> <text>The public may provide oral and written comments concerning the drugs proposed for referral to the Stakeholder Council and identified on the meeting agenda in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> <paragraph num="(5)"> <text>Notwithstanding the pre-meeting identification of drugs for consideration, the Board may consider any drug identified in Regulation .02 of this chapter for referral to the Stakeholder Council.</text> </paragraph> <paragraph num="(6)"> <text>At an open meeting, the Board may:</text> <paragraph num="(a)"> <text>Consider the prescription drug products identified on the Board’s agenda and any eligible drug proposed for consideration by a Board member at the meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Select one or more prescription drug products by NDC to refer to the Stakeholder Council to receive input from the Stakeholder Council on the selection of prescription drug products for cost review.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>In selecting one or more prescription drug products to refer to the Stakeholder Council, the Board may consider:</text> <paragraph num="(1)"> <text>The prescription drug products identified under the statutory metrics and regulatory criteria in Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>The information provided under §B this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The average cost share of the prescription drug product, the average patient total out-of-pocket cost, and the average total payor cost; and</text> </paragraph> <paragraph num="(4)"> <text>Any written or oral public comment.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Board shall post notice of the prescription drug products referred to the Stakeholder Council on its website.</text> </paragraph> <paragraph num="F."> <text>The public may provide written comments concerning the list of prescription drug products referred to the Stakeholder Council by:</text> <paragraph num="(1)"> <text>Complying with the procedures in COMAR 14.01.01.05B(3); and</text> </paragraph> <paragraph num="(2)"> <text>Submitting the written comments to the Board within 30 calendar days of the date the list is posted on the Board’s website.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Stakeholder Council Input.</text> <paragraph num="(1)"> <text>To the extent practicable, the Board may provide the Stakeholder Council with:</text> <paragraph num="(a)"> <text>The information set forth in §B of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Whether the prescription drug product was reported by an individual member of the public; and</text> </paragraph> <paragraph num="(c)"> <text>Whether the prescription drug product was added by the Board for consideration under Regulation .02 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>To the extent practicable, the Stakeholder Council shall:</text> <paragraph num="(a)"> <text>Review the information provided for each referred prescription drug product; and</text> </paragraph> <paragraph num="(b)"> <text>Discuss the referred prescription drug products at an open meeting.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Board staff may present the Stakeholder Council input discussed at the open meeting to the Board.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Therapeutic Alternatives.</text> <paragraph num="(1)"> <text>Board staff may develop a list of therapeutic alternatives for each prescription drug product referred to the Stakeholder Council.</text> </paragraph> <paragraph num="(2)"> <text>Board staff shall post a list of therapeutic alternatives developed by staff on the Board’s website for comment.</text> </paragraph> <paragraph num="(3)"> <text>The public may provide written comments concerning the list of therapeutic alternatives by:</text> <paragraph num="(a)"> <text>Complying with the procedures in COMAR 14.01.01.05B(3); and</text> </paragraph> <paragraph num="(b)"> <text>Submitting the written comments to the Board within 30 calendar days of the date the list is posted on the Board’s website.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Board staff may modify the list of therapeutic alternatives for consideration by the Board.</text> </paragraph> <paragraph num="(5)"> <text>The Board shall determine the therapeutic alternatives for each prescription drug product selected for a cost review study.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Board Selection of Drugs for Cost Review.</text> <paragraph num="(1)"> <text>At an open meeting, the Board may select one or more prescription drug products for a cost review study.</text> </paragraph> <paragraph num="(2)"> <text>The public may provide oral and written comments concerning the selection of a prescription drug product for cost review in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> <paragraph num="(3)"> <text>In selecting a prescription drug product for cost review, the Board shall consider:</text> <paragraph num="(a)"> <text>The prescription drug products referred to the Stakeholder Council from the prescription drug products identified under the statutory metrics and regulatory criteria in Regulation .02 of this chapter and the information provided under §B of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>The average cost share of the prescription drug product, the average patient total out-of-pocket cost, the average total payor cost, and publicly available data on direct-to-consumer advertising spending for the prescription drug product;</text> </paragraph> <paragraph num="(c)"> <text>Input from the Stakeholder Council provided under §G of this regulation; and</text> </paragraph> <paragraph num="(d)"> <text>Input from the public provided under COMAR 14.01.01.05.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>During an open meeting, the Board may select one or more prescription drug products for cost review under Regulation .05 of this chapter and provide notice of the selection on its website within 3 work days of the meeting.</text> </paragraph> <paragraph num="(5)"> <text>The prescription drug product shall be identified by:</text> <paragraph num="(a)"> <text>NDC;</text> </paragraph> <paragraph num="(b)"> <text>ANDA, NDA, or BLA, as applicable; and</text> </paragraph> <paragraph num="(c)"> <text>Active moiety or active ingredient.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If the Board selects a prescription drug product for cost review, the Board may identify and approve all NDCs marketed under the same ANDA, NDA, or BLA to be included in the cost review.</text> </paragraph> <paragraph num="(7)"> <text>If the Board selects a prescription drug product for cost review that is an unapproved generic within the meaning of Health-General Article, §21-2C-01(f), Annotated Code of Maryland, the Board may identify and approve all NDCs with the same active moiety and manufacturer to be included in the cost review study.</text> </paragraph> <paragraph num="(8)"> <text>If the Board selects a prescription drug product for cost review, the Board shall approve the therapeutic alternatives to be used in conducting the cost review study.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Request for Information for Cost Review."> <paragraph num="A."> <text>Request for Information.</text> <paragraph num="(1)"> <text>The Board shall post notice of the prescription drug product or products selected for cost review through the process outlined in Regulation .03I of this chapter on the Board’s website.</text> </paragraph> <paragraph num="(2)"> <text>To the extent there is no publicly available information to conduct an aspect of the statutory cost review, the Board may request information to conduct a cost review study under Health-General Article, §21-2C-09(a)(2), Annotated Code of Maryland, and this regulation.</text> </paragraph> <paragraph num="(3)"> <text>The Board may request information by sending an email or postal mail to the manufacturer, PBMs, health insurance carriers, wholesale distributors, HMOs, and MCOs.</text> </paragraph> <paragraph num="(4)"> <text>The Board shall post notice of the request for information on its website.</text> </paragraph> <paragraph num="(5)"> <text>An entity that has not received a request for information from the Board may submit relevant information in accordance with this regulation.</text> </paragraph> <paragraph num="(6)"> <text>Within 30 days of the date the request for information is posted to the website or transmitted to the entity, an entity may submit the information requested by the Board, and any other relevant information, in accordance with §C of this regulation.</text> </paragraph> <paragraph num="(7)"> <text>An entity may request one 30-day extension of time to submit information under §A(6) of this regulation.</text> </paragraph> <paragraph num="(8)"> <text>An entity shall submit the request for a 30-day extension to the Board in writing on or before the expiration of the initial submission period.</text> </paragraph> </paragraph> <paragraph num="B."> <text>For each prescription drug product under review, the Board may request the following information from:</text> <paragraph num="(1)"> <text>Manufacturer:</text> <paragraph num="(a)"> <text>Documents and research explaining the relationship between the pricing of the prescription drug product and the cost of development, the relationship between the pricing of the prescription drug product and the therapeutic benefit, and information that is otherwise pertinent to the manufacturer’s pricing decision such as:</text> <paragraph num="(i)"> <text>Life cycle management;</text> </paragraph> <paragraph num="(ii)"> <text>Net average price in the State; and</text> </paragraph> <paragraph num="(iii)"> <text>The estimated value or cost-effectiveness of the prescription drug product;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The total amount of the price concessions, discounts, and rebates provided to each payor type operating in the State;</text> </paragraph> <paragraph num="(c)"> <text>The total amount of the price concessions, discounts, and rebates the manufacturer is expected to provide to each payor type;</text> </paragraph> <paragraph num="(d)"> <text>The net price received by manufacturers for the drug product in the State accounting for all price concessions, discounts, and rebates;</text> </paragraph> <paragraph num="(e)"> <text>The units of the prescription drug product sold in the State;</text> </paragraph> <paragraph num="(f)"> <text>The units of the prescription drug product sold nationally;</text> </paragraph> <paragraph num="(g)"> <text>The total dollar amount of sales of the prescription drug product into the State;</text> </paragraph> <paragraph num="(h)"> <text>The total dollar amount of sales of the prescription drug product nationally;</text> </paragraph> <paragraph num="(i)"> <text>The invoice price per unit for the prescription drug product charged to purchasers in the United Kingdom, Germany, France, and Canada, reported in U.S. dollars;</text> </paragraph> <paragraph num="(j)"> <text>Prices charged to purchasers in the State, including but not limited to pharmacies, pharmacy chains, pharmacy wholesalers, and other direct purchasers;</text> </paragraph> <paragraph num="(k)"> <text>The average profit margin of the prescription drug product over the prior 5-year period and the projected profit margin anticipated for the current year for the prescription drug product;</text> </paragraph> <paragraph num="(l)"> <text>Maryland and national gross and net manufacturer revenues for the prescription drug product under review for the most recent tax year;</text> </paragraph> <paragraph num="(m)"> <text>Information concerning all authorized generics as defined by 42 CFR §447.502 for the prescription drug product;</text> </paragraph> <paragraph num="(n)"> <text>Information concerning all other ANDAs, BLAs, and NDAs that pertain to the same active moiety and the same manufacturer;</text> </paragraph> <paragraph num="(o)"> <text>The manufacturer’s research and development costs, as indicated on the manufacturer’s federal tax filing or information filed with the Federal Securities and Exchange Commission for the most recent tax year;</text> </paragraph> <paragraph num="(p)"> <text>The portion of direct-to-consumer marketing costs eligible for favorable federal tax treatment in the most recent tax year that are specific to the prescription drug product under review; and</text> </paragraph> <paragraph num="(q)"> <text>Any additional factors or information the manufacturer proposes that the Board consider.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Health Insurance Carrier, HMO, and MCO:</text> <paragraph num="(a)"> <text>The total amount of the price concessions, discounts, and rebates the manufacturer provides to each health plan operating in the State, expressed as a percent of the WAC;</text> </paragraph> <paragraph num="(b)"> <text>The average price concession, discount, and rebate provided in the State for therapeutic alternatives;</text> </paragraph> <paragraph num="(c)"> <text>Placement in each formulary offered or administered in the State and the number of covered lives for each formulary;</text> </paragraph> <paragraph num="(d)"> <text>Benefit design around the prescription drug product, including copayment and coinsurance amounts in the State;</text> </paragraph> <paragraph num="(e)"> <text>The net cost incurred by the insurance carrier for the prescription drug product in the State; and</text> </paragraph> <paragraph num="(f)"> <text>Any additional factors or information the health insurance carrier, HMO, or MCO proposes that the Board consider.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Pharmacy Benefits Managers:</text> <paragraph num="(a)"> <text>The therapeutic alternatives for the prescription drug product(s) under review identified by each formulary administered by the PBM;</text> </paragraph> <paragraph num="(b)"> <text>The total amount of the price concessions, discounts, and rebates the manufacturer provides to each PBM operating in the State, expressed as a percent of the WAC;</text> </paragraph> <paragraph num="(c)"> <text>The average price concession, discount, and rebate provided in the State for therapeutic alternatives;</text> </paragraph> <paragraph num="(d)"> <text>Placement in each formulary offered or administered in the State and the number of covered lives for each formulary;</text> </paragraph> <paragraph num="(e)"> <text>Benefit design around the prescription drug product, including copayment and coinsurance amounts;</text> </paragraph> <paragraph num="(f)"> <text>Maryland and national gross and net PBM revenues for the prescription drug product under review for the most recent tax year; and</text> </paragraph> <paragraph num="(g)"> <text>Any additional factors or information the PBM proposes that the Board consider.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Wholesale Distributors:</text> <paragraph num="(a)"> <text>Prices charged to purchasers in the State, including but not limited to pharmacies, pharmacy chains, pharmacy wholesalers, and other direct purchasers;</text> </paragraph> <paragraph num="(b)"> <text>The total amount of price concessions and discounts provided by the wholesale distributor to purchasers in the State, including but not limited to pharmacies, pharmacy chains, pharmacy wholesalers, and other direct purchasers;</text> </paragraph> <paragraph num="(c)"> <text>Units of the prescription drug product sold in the State; and</text> </paragraph> <paragraph num="(d)"> <text>Any additional factors or information the wholesale distributor proposes that the Board consider.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Submission of Information.</text> <paragraph num="(1)"> <text>An entity may submit the information requested in §A of this regulation by:</text> <paragraph num="(a)"> <text>Completing the data form developed by the Board; and</text> </paragraph> <paragraph num="(b)"> <text>Providing supporting documentation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A person submitting information, including data and records, for the Board’s consideration shall comply with the procedures for designating confidential, trade-secret, and proprietary information set forth in COMAR 14.01.01.04.</text> </paragraph> <paragraph num="(3)"> <text>Information may be submitted to the Board:</text> <paragraph num="(a)"> <text>In paper form using a tracked common carrier, courier, or postal service; or</text> </paragraph> <paragraph num="(b)"> <text>Electronically using secure file transfer.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Cost Review Study."> <paragraph num="A."> <text>The Board may determine:</text> <paragraph num="(1)"> <text>Whether use of the prescription drug product has led or will lead to:</text> <paragraph num="(a)"> <text>Affordability challenges to the State health care system; or</text> </paragraph> <paragraph num="(b)"> <text>High out-of-pocket costs for patients;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Whether the use that has led to affordability challenges or high out-of-pocket costs is consistent with:</text> <paragraph num="(a)"> <text>The labeling approved by the FDA; or</text> </paragraph> <paragraph num="(b)"> <text>Standard medical practice; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The circumstances under which the prescription drug product has or will lead to an affordability challenge to the State health care system or high out-of-pocket costs to patients under §A(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Analyses and Data Compilation.</text> <paragraph num="(1)"> <text>To the extent practicable, Board staff may assemble the data and analyses specified by Health-General Article §21-2C-09(b), Annotated Code of Maryland, and this regulation for consideration by the Board, including the data elements and information provided to the Board under Regulation .03A and B of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>These data and analyses may be:</text> <paragraph num="(a)"> <text>Derived from published peer-reviewed literature;</text> </paragraph> <paragraph num="(b)"> <text>Derived from published public sources such as the FDA Orange Book, the FDA Purple Book, and other sources;</text> </paragraph> <paragraph num="(c)"> <text>Reported by or derived from manufacturers, health insurance plans, HMOs, MCOs, PBMs, and wholesale distributors;</text> </paragraph> <paragraph num="(d)"> <text>Produced by Board staff through analysis;</text> </paragraph> <paragraph num="(e)"> <text>Derived from external analyses and modeling studies;</text> </paragraph> <paragraph num="(f)"> <text>Derived from the MCDB, any claims set of the MCDB, and any other databases containing relevant information;</text> </paragraph> <paragraph num="(g)"> <text>Derived from reports generated by U.S. governmental entities, State governmental entities, foreign governmental and quasi-governmental agencies, and U.S. and foreign non-profit organizations; or</text> </paragraph> <paragraph num="(h)"> <text>Derived from quantitative and qualitative data collected by Board staff.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Factors Considered in Cost Review Study.</text> <paragraph num="(1)"> <text>To the extent practicable, the Board may consider the following data, information, and analyses in conducting a cost review study:</text> <paragraph num="(a)"> <text>Drug Pricing for Drug Product Under Review:</text> <paragraph num="(i)"> <text>The WAC, AWP, NADAC, SAAC, ASP, and FSS; and</text> </paragraph> <paragraph num="(ii)"> <text>Information estimating manufacturer net price and net sales amounts of the prescription drug product under review;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Price Concessions, Discounts, and Rebates:</text> <paragraph num="(i)"> <text>The average price concession, discount, and rebate provided by the manufacturer or expected to be provided to each payor class in the State for the drug under review, expressed as a number and as a percent of the WAC; and</text> </paragraph> <paragraph num="(ii)"> <text>The average price concession, discount, and rebate the manufacturer provided or is expected to provide for the prescription drug product under review to each PBM operating in the State, expressed as a number and as a percent of the WAC;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Therapeutic Alternatives:</text> <paragraph num="(i)"> <text>The average price concession, discount, or rebate the manufacturer provides or is expected to provide to health plans in the State for therapeutic alternatives;</text> </paragraph> <paragraph num="(ii)"> <text>The WAC, AWP, NADAC, SAAC, ASP, and FSS at which each therapeutic alternative has been sold in the State; and</text> </paragraph> <paragraph num="(iii)"> <text>The utilization, costs, and out-of-pocket costs for therapeutic alternatives;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Patient Access:</text> <paragraph num="(i)"> <text>The costs to health plans based on patient access consistent with FDA-labeled indications or standard medical practice;</text> </paragraph> <paragraph num="(ii)"> <text>The estimated impact on patient access resulting from the cost of the prescription drug product relative to insurance benefit design; and</text> </paragraph> <paragraph num="(iii)"> <text>The current or expected dollar value of drug-specific patient access programs that are supported by the manufacturer for the drug product under review and the policies surrounding and implementing such programs;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Cost and Comparative Effectiveness Analyses:</text> <paragraph num="(i)"> <text>The incremental costs associated with a prescription drug product, including financial impacts to health, medical, or social services as can be quantified and compared to baseline effects of existing therapeutic alternatives; and</text> </paragraph> <paragraph num="(ii)"> <text>Information derived from health economics and outcomes research that may address the effectiveness of the prescription drug product in treating the conditions for which it is prescribed or in improving a patient’s health, quality of life, or overall health outcomes, and the effectiveness of the prescription drug product compared with therapeutic alternatives or no treatment.</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Cost Sharing:</text> <paragraph num="(i)"> <text>The average patient copay and other cost-sharing data for the prescription drug in the State; and</text> </paragraph> <paragraph num="(ii)"> <text>The average cost share; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Additional Board Factors:</text> <paragraph num="(i)"> <text>Clinical information, including FDA indications and doses and information concerning standard medical practice;</text> </paragraph> <paragraph num="(ii)"> <text>The disease burden of the condition that is treated by the prescription drug product;</text> </paragraph> <paragraph num="(iii)"> <text>In the case of generic prescription drug products, the number of pharmaceutical manufacturers that produce the prescription drug product;</text> </paragraph> <paragraph num="(iv)"> <text>The total gross spending in the State for the prescription drug product under review, the total number of patients in the State using the prescription drug product, and the percentage of overall total prescription drug product spending that the product’s spending represents;</text> </paragraph> <paragraph num="(v)"> <text>The change in total gross spending and utilization for a prescription drug product in the State between the two most recent available calendar years and the percent change in total gross spending for a prescription drug product in the State between the two most recent available calendar years;</text> </paragraph> <paragraph num="(vi)"> <text>The mean, median, and 90th percentile out-of-pocket costs per patient compared to State incomes;</text> </paragraph> <paragraph num="(vii)"> <text>An assessment of the impact of the prescription drug product’s cost to access by priority populations and the impact on equity;</text> </paragraph> <paragraph num="(viii)"> <text>Information supplied by the manufacturer, if any, explaining the relationship between the pricing of the prescription drug product and (a) the cost of development and (b) the therapeutic benefit of the prescription drug product, or information that is otherwise pertinent to the manufacturer’s pricing decision;</text> </paragraph> <paragraph num="(ix)"> <text>Analysis of the prescription drug product’s approval process;</text> </paragraph> <paragraph num="(x)"> <text>Analysis of the prescription drug product’s shortage status;</text> </paragraph> <paragraph num="(xi)"> <text>Analysis of the market context of the prescription drug product including the prescription drug product’s lifecycle management, patent management, regulatory exclusivities, and product hopping;</text> </paragraph> <paragraph num="(xii)"> <text>The utilization and pricing of therapeutically equivalent drug products;</text> </paragraph> <paragraph num="(xiii)"> <text>Analysis of the impact of state and federal regulatory and compliance issues related to the prescription drug product;</text> </paragraph> <paragraph num="(xiv)"> <text>Input from state and local governmental entities and the entities’ contractors such as health plans and plan administrators;</text> </paragraph> <paragraph num="(xv)"> <text>Impact of the utilization and spending for the prescription drug product on public budgets and comparison of the spending on the prescription drug product to relevant benchmarks;</text> </paragraph> <paragraph num="(xvi)"> <text>Analyses and research including literature review by Board staff in response to information submitted by an entity under Regulation .04 of this chapter, or through any public comment or public input procedure</text> </paragraph> <paragraph num="(xvii)"> <text>Input from the public; and</text> </paragraph> <paragraph num="(xviii)"> <text>Information and analyses submitted by an entity under Regulation .04 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The public may provide written comments concerning the prescription drug product:</text> <paragraph num="(a)"> <text>Within 60 days of the date the drug’s selection for cost review study is posted on the Board’s website; and</text> </paragraph> <paragraph num="(b)"> <text>In accordance with the procedures in COMAR 14.01.01.05B(3).</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>At an open meeting, the Board may:</text> <paragraph num="(1)"> <text>Hear oral public comments concerning the prescription drug product in accordance with the procedures in COMAR 14.01.01.05A;</text> </paragraph> <paragraph num="(2)"> <text>To the extent permitted by Health-General Article, §§21-2C-03 and 21-2C-10, Annotated Code of Maryland, consider written comments submitted in accordance with the procedures in COMAR 14.01.01.05;</text> </paragraph> <paragraph num="(3)"> <text>To the extent practicable, and in compliance with Health-General Article, §21-2C-03(e)(1)(iv), Annotated Code of Maryland, consider the data and analyses specified by §C of this regulation, including the data elements and information provided to the Board under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Close the session to discuss confidential, trade-secret, and proprietary information; and</text> </paragraph> <paragraph num="(5)"> <text>Preliminarily determine whether:</text> <paragraph num="(a)"> <text>Use of the prescription drug product, identified by NDC, has led or will lead to:</text> <paragraph num="(i)"> <text>Affordability challenges to the State health care system; or</text> </paragraph> <paragraph num="(ii)"> <text>High out-of-pocket costs for patients; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Whether the use that has led to affordability challenges or high out-of-pocket costs is consistent with:</text> <paragraph num="(i)"> <text>The labeling approved by the FDA; or</text> </paragraph> <paragraph num="(ii)"> <text>Standard medical practice.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>If the Board is unable to determine whether a prescription drug product will produce or has produced challenges to the affordability of the prescription drug product for the State health care system, the Board may consider:</text> <paragraph num="(1)"> <text>The additional factors identified in Health-General Article, §21-2C-09(b)(3)(i)—(iv), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>The following additional factors:</text> <paragraph num="(a)"> <text>Federal support for the research and development of the prescription drug product; and</text> </paragraph> <paragraph num="(b)"> <text>Pricing data from other countries for the prescription drug product.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Preliminary Determination.</text> <paragraph num="(1)"> <text>In accordance with §C of this regulation, the Board may make a preliminary determination of whether use of the prescription drug product has led or will lead to affordability challenges for the State health care system or high out-of-pocket costs for patients.</text> </paragraph> <paragraph num="(2)"> <text>A preliminary determination is non-final and subject to revision and modification.</text> </paragraph> <paragraph num="(3)"> <text>Preliminary Determination of Affordability Challenge.</text> <paragraph num="(a)"> <text>Board staff shall prepare a draft of the preliminary determination cost review report that summarizes the information considered by the Board in conducting the cost review study, the Board’s deliberations, the circumstances or indicia reflecting the affordability challenge, and the Board’s preliminary determination.</text> </paragraph> <paragraph num="(b)"> <text>The public may comment on the draft of the preliminary determination cost review report.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Final Determination Concerning Affordability Challenge and Final Cost Review Study Report.</text> <paragraph num="(1)"> <text>The Board may vote to finalize the preliminary determination and approve the draft cost review report as final.</text> </paragraph> <paragraph num="(2)"> <text>The Board’s determination of whether a prescription drug has or will lead to an affordability challenge is not final until the final cost review report is adopted by the Board.</text> </paragraph> <paragraph num="(3)"> <text>The Board shall create and adopt a final report of the cost review study that, to the extent permitted by Health-General Article, §§21-2C-03 and 21-2C-10, Annotated Code of Maryland, summarizes the information considered by the Board in conducting the cost review study, the Board’s deliberations, and the Board’s determination.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Health-General Article, §§21-2C-03(f)(1), 21-2C-08(b), and 21-2C-09, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 25, 2023 (50:25 Md. R. 1089)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective November 14, 2024 (51:25 Md. R. 1140); adopted permanently effective March 3, 2025 (52:4 Md. R. 220)</annotation> </annotations> </chapter> <chapter num="05" heading="Policy Review, Final Action, Upper Payment Limits"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Driver” means a factor that causes a particular phenomenon to happen or develop.</text> </paragraph> <paragraph num="(2)"> <text>“Eligible governmental entity” means a unit of State or local government, an organization on behalf of a unit of State or local government, or the Maryland State Medical Assistance Program, as identified in Health-General Article, §21-2C-14(a), Annotated Code of Maryland, that pays for or purchases prescription drug products.</text> </paragraph> <paragraph num="(3)"> <text>“Eligible governmental entities upper payment limit” or “GovUPL” means upper payment limit established by the Board minus applicable patient out-of-pocket costs.</text> </paragraph> <paragraph num="(4)"> <text>“FDA prescription drug shortage list” means the U.S. Food and Drug Administration’s Drug Shortage Database.</text> </paragraph> <paragraph num="(5)"> <text>“Medicaid Best Price” has the meaning stated in 42 CFR §447.505.</text> </paragraph> <paragraph num="(6)"> <text>“Medicare Maximum Fair Price” has the meaning stated in 42 USC §1320f(c)(3).</text> </paragraph> <paragraph num="(7)"> <text>“System net ingredient cost” means the final system cost attributable to or related to the prescription drug product after accounting for all discounts and price concessions, excluding dispensing, administration and direct and indirect remuneration to pharmacies, including patient out-of-pocket costs.</text> </paragraph> <paragraph num="(8)"> <text>“Upper payment limit” or “UPL” means the amount established by the Board and represents the system net ingredient cost.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For the purpose of this chapter, “affordability challenge” refers to either (a) high out-of-pocket costs for patients or (b) an affordability challenge for the State health care system.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Criteria for Setting an Upper Payment Limit."> <paragraph num="A."> <text>When determining whether to set an upper payment limit and when setting an upper payment limit amount, the Board shall apply the criteria set forth in this regulation.</text> </paragraph> <paragraph num="B."> <text>The Board shall:</text> <paragraph num="(1)"> <text>Consider the cost of administering the drug and delivering the drug to consumers, as well as other relevant administrative costs;</text> </paragraph> <paragraph num="(2)"> <text>Determine whether an upper payment limit is an appropriate tool to address the drivers of the affordability challenge identified for the prescription drug product;</text> </paragraph> <paragraph num="(3)"> <text>Set an upper payment limit in a way to minimize adverse outcomes and minimize the risk of unintended consequences; and</text> </paragraph> <paragraph num="(4)"> <text>Prioritize drugs that have a high proportion of out-of-pocket costs compared to the system net cost of the drug.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Board shall not set an upper payment limit if:</text> <paragraph num="(1)"> <text>Spending on the prescription drug product by the eligible governmental entities is less than the administrative cost to implement an upper payment limit; or</text> </paragraph> <paragraph num="(2)"> <text>The prescription drug product is a generic and there are nine or more marketed therapeutic equivalents for the product.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Board shall not set an upper payment limit at an amount that:</text> <paragraph num="(1)"> <text>Impacts statutory or regulatory amounts, such as Medicaid Best Price; or</text> </paragraph> <paragraph num="(2)"> <text>Is lower than the Medicare Maximum Fair Price.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Policy Review and Final Action Process Overview."> <paragraph num="A."> <text>If the Board makes a preliminary determination that use of the prescription drug product has led or will lead to an affordability challenge, the Board shall commence the policy review process.</text> </paragraph> <paragraph num="B."> <text>The purpose of the policy review process is to:</text> <paragraph num="(1)"> <text>Based on the best available information, confirm the drivers and market conditions causing the affordability challenge phenomena; and</text> </paragraph> <paragraph num="(2)"> <text>Identify the policies that may address those drivers and redress the affordability challenges.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The policy review process includes:</text> <paragraph num="(1)"> <text>Information gathering:</text> <paragraph num="(a)"> <text>Informational hearings;</text> </paragraph> <paragraph num="(b)"> <text>Stakeholder Council input;</text> </paragraph> <paragraph num="(c)"> <text>Expert testimony hearings;</text> </paragraph> <paragraph num="(d)"> <text>Board staff research and analysis; and</text> </paragraph> <paragraph num="(e)"> <text>Eligible governmental entities’ information;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Preliminary policy recommendations:</text> <paragraph num="(a)"> <text>Policy actions other than UPLs; and</text> </paragraph> <paragraph num="(b)"> <text>Policy action in the form of a UPL and the process for setting upper payment limits; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Final actions:</text> <paragraph num="(a)"> <text>Adoption of the final cost review report;</text> </paragraph> <paragraph num="(b)"> <text>Adoption of non-UPL policy recommendations; and</text> </paragraph> <paragraph num="(c)"> <text>Adoption of proposed regulations setting a UPL amount.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Policy Review—Information Gathering."> <paragraph num="A."> <text>In studying the drivers, market conditions and policy options, the Board and staff may consider the information collected through the cost review study process pursuant to Health-General Article, §21-2C-09, Annotated Code of Maryland and COMAR 14.01.04.05, including all information, analyses, and public input collected and considered during the selection of drug for the cost review study and the cost review study process.</text> </paragraph> <paragraph num="B."> <text>If additional information is needed, the Board and staff may gather additional information through the tools outlined in §D of this regulation.</text> </paragraph> <paragraph num="C."> <text>If additional information is needed, the Board may utilize the information-gathering tools outlined in §D of this regulation at any point in the policy review process, including the consideration and setting of a UPL.</text> </paragraph> <paragraph num="D."> <text>Information Gathering Tools.</text> <paragraph num="(1)"> <text>Public Informational Hearings.</text> <paragraph num="(a)"> <text>The Board may, through Board staff, convene a hearing to receive input, information, and opinions from the public and stakeholders to inform the consideration and development of policy options including upper payment limits to redress an affordability challenge.</text> </paragraph> <paragraph num="(b)"> <text>The public informational hearing shall be conducted in accordance with COMAR 14.01.01.06.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Stakeholder Council Input.</text> <paragraph num="(a)"> <text>The Board may request input from the Stakeholder Council. This input can be a request for general input and ideas on policies or more specific requests for specific information.</text> </paragraph> <paragraph num="(b)"> <text>Board staff may provide the Board with summaries of input from the Stakeholder Council.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Technical Hearings.</text> <paragraph num="(a)"> <text>The Board may convene a hearing for the purpose of receiving technical input, technical information or expert testimony.</text> </paragraph> <paragraph num="(b)"> <text>The technical hearing shall be conducted in accordance with COMAR 14.01.01.06.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Board Staff Research and Analysis.</text> <paragraph num="(a)"> <text>Board staff may provide the Board with policy research and analyses related to the drivers of the potential affordability and potential options.</text> </paragraph> <paragraph num="(b)"> <text>Research may include a literature review of available literature and original quantitative or qualitative research conducted by staff.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Eligible Governmental Entities’ Information.</text> <paragraph num="(a)"> <text>Board staff may collect information concerning the prescription drug product and therapeutic alternatives from eligible governmental entities.</text> </paragraph> <paragraph num="(b)"> <text>The information collected may include utilization, spending, costs, benefit design, formulary placement, rebates, discounts, price concessions and other relevant information.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Policy Review—Preliminary Policy Recommendations."> <paragraph num="A."> <text>When developing preliminary policy recommendations for the Board, Board staff may use information gathered or obtained through the:</text> <paragraph num="(1)"> <text>Cost review study process under COMAR 14.01.04; and</text> </paragraph> <paragraph num="(2)"> <text>Information gathering process under Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Policy Action Other than UPL.</text> <paragraph num="(1)"> <text>Board staff may recommend policy options to redress the affordability challenge.</text> </paragraph> <paragraph num="(2)"> <text>When recommending policy options, Board staff may analyze the:</text> <paragraph num="(a)"> <text>Drivers of the affordability challenge;</text> </paragraph> <paragraph num="(b)"> <text>How the policy addresses a driver;</text> </paragraph> <paragraph num="(c)"> <text>Strengths and weaknesses of the policy;</text> </paragraph> <paragraph num="(d)"> <text>Possible implementation of the policy through legislation, regulation, or enforcement; and</text> </paragraph> <paragraph num="(e)"> <text>Potential impacts of the policy.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Board may:</text> <paragraph num="(a)"> <text>Adopt none of the non-UPL policy recommendations;</text> </paragraph> <paragraph num="(b)"> <text>Adopt one or more policy recommendations; or</text> </paragraph> <paragraph num="(c)"> <text>Adopt and modify one or more policy recommendations.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Board may adopt a final policy recommendation only after the Board has:</text> <paragraph num="(a)"> <text>Made a final affordability challenge determination; and</text> </paragraph> <paragraph num="(b)"> <text>Adopted the final cost review study report under COMAR 14.01.04.05G.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The public may provide oral and written comments concerning any agenda item of the Board or any decision pending before the Board in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> </paragraph> <paragraph num="C."> <text>Policy Action in the Form of an Upper Payment Limit.</text> <paragraph num="(1)"> <text>Board staff may recommend a UPL as a policy option to redress an affordability challenge.</text> </paragraph> <paragraph num="(2)"> <text>When recommending a UPL as a policy option, Board staff may analyze the:</text> <paragraph num="(a)"> <text>The drivers and market conditions causing the affordability challenge phenomena;</text> </paragraph> <paragraph num="(b)"> <text>Ability of a UPL to address these issues;</text> </paragraph> <paragraph num="(c)"> <text>Strengths and weaknesses of the UPL policy;</text> </paragraph> <paragraph num="(d)"> <text>Potential impacts of the UPL policy;</text> </paragraph> <paragraph num="(e)"> <text>Possible implementation of the policy through legislation, regulation or enforcement;</text> </paragraph> <paragraph num="(f)"> <text>Relevant regulatory criteria under Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(g)"> <text>Use of the drug by eligible governmental entities.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Board staff may provide recommendations related to establishing a UPL including:</text> <paragraph num="(a)"> <text>An assessment of the drivers of the affordability challenge; and</text> </paragraph> <paragraph num="(b)"> <text>The extent to which a UPL may address the drivers.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Board may pursue development of a UPL as a policy option and direct Board staff to provide recommendations concerning the frameworks and contextual information that may be used to set a UPL in accordance with the UPL process set forth in Regulation .06 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>The public may provide oral and written comments concerning any agenda item of the Board or any decision pending before the Board in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Policy Review—Process for Establishing a UPL."> <paragraph num="A."> <text>Staff Recommends Frameworks and Contextual Information.</text> <paragraph num="(1)"> <text>Board staff shall recommend at least one framework, identified in §B of this regulation, for use in developing a UPL for the subject prescription drug product.</text> </paragraph> <paragraph num="(2)"> <text>Board staff may recommend certain contextual information identified in §C of this regulation for use in developing a UPL for the subject prescription drug product.</text> </paragraph> <paragraph num="(3)"> <text>Board staff shall:</text> <paragraph num="(a)"> <text>Post staff’s recommendations on the Board’s website in advance of the Board meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Request public comment.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The public may submit written comments by the date specified in the posting in accordance with COMAR 14.01.01.05B(4).</text> </paragraph> <paragraph num="(5)"> <text>Board staff shall present the recommendations to the Board.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Frameworks.</text> <paragraph num="(1)"> <text>Cost Effectiveness Analysis.</text> <paragraph num="(a)"> <text>Under this framework, a maximum UPL value may be set by:</text> <paragraph num="(i)"> <text>Using a cost-effectiveness analysis to model how much additional health outcome is gained per dollar of additional spending when using a drug product compared to an alternative;</text> </paragraph> <paragraph num="(ii)"> <text>Comparing this number to a threshold to determine if a product is “cost-effective”; and</text> </paragraph> <paragraph num="(iii)"> <text>Then, if the product is not already cost-effective, given the specified threshold in §B(1)(a)(ii) of this regulation and the model in §B(1)(a)(i) of this regulation, calculating the maximum UPL for which it would be “cost-effective.”</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>When providing a UPL amount developed using this framework, Board staff shall identify the health outcome, threshold, and relevant underlying assumptions used in the analysis.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Therapeutic Class Reference Upper Payment Limit.</text> <paragraph num="(a)"> <text>Under this framework, a UPL value may be set using the lowest net price or net cost among competitor products in the same therapeutic class.</text> </paragraph> <paragraph num="(b)"> <text>The Board may limit the prescription drug products used for analysis to a subset of drugs in the same therapeutic class.</text> </paragraph> <paragraph num="(c)"> <text>When determining whether to use a product in the same therapeutic class as a reference product, the Board may consider:</text> <paragraph num="(i)"> <text>A difference in indication including a difference in the patient population and disease severity; and</text> </paragraph> <paragraph num="(ii)"> <text>Comparative effectiveness research.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Launch Price-Based Upper Payment Limit.</text> <paragraph num="(a)"> <text>Under this framework, a UPL value may be set based on the initial price at which the drug was first marketed (launch price) adjusted for inflation.</text> </paragraph> <paragraph num="(b)"> <text>The Board shall adjust the launch price using the CPI-U.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Same Molecule Reference Upper Payment Limit.</text> <paragraph num="(a)"> <text>Under the same molecule reference UPL framework, a UPL value may be set by comparing prices of certain reference drugs:</text> <paragraph num="(i)"> <text>A generic drug product that is therapeutically equivalent to the product under the review;</text> </paragraph> <paragraph num="(ii)"> <text>An authorized generic of the product under review;</text> </paragraph> <paragraph num="(iii)"> <text>A drug product licensed under a BLA that has the same active ingredient and is approved for one or more of the same or similar indications as the product under review;</text> </paragraph> <paragraph num="(iv)"> <text>A biosimilar for the product under review;</text> </paragraph> <paragraph num="(v)"> <text>The reference product for the product under review; and</text> </paragraph> <paragraph num="(vi)"> <text>A drug product approved under an NDA or ANDA that has the same active ingredient and is approved for one or more of the same or similar indications as the product under review.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>When using this framework Board staff may consider:</text> <paragraph num="(i)"> <text>Any differences between the product under review and the same molecule reference products; and</text> </paragraph> <paragraph num="(ii)"> <text>The utilization of the same molecule reference products.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Domestic Reference Upper Payment Limit.</text> <paragraph num="(a)"> <text>Under the domestic reference UPL framework, a UPL value may be set using the estimated net cost of a prescription drug product to other purchasers and payors for the same prescription drug product within the United States or the net price received by the manufacturer.</text> </paragraph> <paragraph num="(b)"> <text>Under this framework, the UPL may be set using the cost of the lowest estimated net-cost purchaser or payor, excluding Medicaid.</text> </paragraph> <paragraph num="(c)"> <text>The Board may consider information for all other payors, including information on the Medicare Maximum Fair Price.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>International Reference Upper Payment Limit.</text> <paragraph num="(a)"> <text>Under the international reference UPL framework, a UPL value may be set by comparing drug prices in other countries.</text> </paragraph> <paragraph num="(b)"> <text>Under this framework, the Board may consider the lowest price received by manufacturers for sales in the United Kingdom, Germany, France, and Canada, converted to U.S. dollars.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Budget Impact-Based Upper Payment Limits.</text> <paragraph num="(a)"> <text>Under the budget impact-based UPL framework, a UPL value may be set so that spending on the drug does not exceed a certain percentage of a budget as specified by the Board or have a disproportionate impact on that budget.</text> </paragraph> <paragraph num="(b)"> <text>The Board may consider current spending, projected spending, and potential offsets in developing a UPL value.</text> </paragraph> <paragraph num="(c)"> <text>When setting the percentage, the Board may consider the number of patients impacted, the disease burden, the current and projected future spending on other treatments and management of the disease.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Blend of Multiple Frameworks.</text> <paragraph num="(a)"> <text>Under this framework, Board staff may recommend potential UPL values derived from:</text> <paragraph num="(i)"> <text>A blend of frameworks; and</text> </paragraph> <paragraph num="(ii)"> <text>A variation in implementing a framework.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>When providing a blended UPL amount developed using this framework, Board staff shall identify how the potential blended UPL value was generated.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Contextual Information for the Prescription Drug Product:</text> <paragraph num="(1)"> <text>Information gathered during the cost review study process or the policy review process;</text> </paragraph> <paragraph num="(2)"> <text>Net costs for:</text> <paragraph num="(a)"> <text>State health plan;</text> </paragraph> <paragraph num="(b)"> <text>County, bicounty, and municipal health plans;</text> </paragraph> <paragraph num="(c)"> <text>Direct government purchases; and</text> </paragraph> <paragraph num="(d)"> <text>Medicaid;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Total out-of-pocket costs in:</text> <paragraph num="(a)"> <text>State health plan;</text> </paragraph> <paragraph num="(b)"> <text>County, bicounty, and municipal health plans; and</text> </paragraph> <paragraph num="(c)"> <text>Medicaid;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Current coverage status of the drug in:</text> <paragraph num="(a)"> <text>State health plan;</text> </paragraph> <paragraph num="(b)"> <text>County, bicounty, and municipal health plans; and</text> </paragraph> <paragraph num="(c)"> <text>Medicaid;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Utilization in the following program by patients and prescriptions:</text> <paragraph num="(a)"> <text>State health plan;</text> </paragraph> <paragraph num="(b)"> <text>County, bicounty, and municipal health plans; and</text> </paragraph> <paragraph num="(c)"> <text>Medicaid;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Amount of direct government purchases by units and patients served;</text> </paragraph> <paragraph num="(7)"> <text>For the Maryland State Medical Assistance Program:</text> <paragraph num="(a)"> <text>Number of prescriptions paid;</text> </paragraph> <paragraph num="(b)"> <text>Number of patients who received the prescription drug product; and</text> </paragraph> <paragraph num="(c)"> <text>Total amount paid for the prescription drug product;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Budget impact analysis;</text> </paragraph> <paragraph num="(9)"> <text>Comparisons of health system costs to research and development costs;</text> </paragraph> <paragraph num="(10)"> <text>Life cycle revenue analysis; and</text> </paragraph> <paragraph num="(11)"> <text>Information that can be derived from the aggregation, calculation, and comparison of available information.</text> </paragraph> </paragraph> <paragraph num="D."> <text>UPL Values.</text> <paragraph num="(1)"> <text>The Board may:</text> <paragraph num="(a)"> <text>Select one or more of the frameworks and contextual information identified in §§B and C of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Identify another framework;</text> </paragraph> <paragraph num="(c)"> <text>Prioritize the selected and identified frameworks and contextual information; and</text> </paragraph> <paragraph num="(d)"> <text>Direct staff to use the selected and identified frameworks and contextual information to perform analyses and calculations to obtain UPL values.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Based on guidance from the Board and the regulatory criteria under Regulation .02 of this chapter, Board staff shall perform calculations and analyses to develop a collection of potential UPL values.</text> </paragraph> <paragraph num="(3)"> <text>These calculations and analyses may include appropriate adjustments to ensure that the UPL value:</text> <paragraph num="(a)"> <text>Reflects all discounts, rebates and price concessions;</text> </paragraph> <paragraph num="(b)"> <text>Excludes dispensing and administration fees and direct and indirect renumeration to pharmacies; and</text> </paragraph> <paragraph num="(c)"> <text>Includes patient out-of-pocket costs other than costs attributable to dispensing fees under §D(3)(b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Board staff shall post a public version of:</text> <paragraph num="(a)"> <text>The UPL values developed through analysis;</text> </paragraph> <paragraph num="(b)"> <text>Staff’s recommendation for a proposed UPL amount with a description of the calculation and analyses and relevant underlying assumptions used in the analysis such as health outcome or threshold; and</text> </paragraph> <paragraph num="(c)"> <text>A request for public written comment on the Board’s website.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Board staff may also request public written comment addressing specific questions or proposing alternative analyses.</text> </paragraph> <paragraph num="(6)"> <text>The public may submit written comments by the date specified in the posting in accordance with COMAR 14.01.01.05B(4).</text> </paragraph> </paragraph> <paragraph num="E."> <text>Technical Hearing.</text> <paragraph num="(1)"> <text>The Board may convene a hearing for the purpose of receiving technical input, technical information or expert testimony.</text> </paragraph> <paragraph num="(2)"> <text>The technical hearing shall be conducted in accordance with COMAR 14.01.01.06.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Amendment of Recommendations and UPL Values.</text> <paragraph num="(1)"> <text>Board staff may modify or amend the public version of the developed UPL values, and staff’s recommendations for a proposed UPL amount.</text> </paragraph> <paragraph num="(2)"> <text>If Board staff modifies or amends the developed UPL values and staff’s recommendations, staff shall post the amendments to the Board’s website, and request public written comment by a specified date.</text> </paragraph> <paragraph num="(3)"> <text>The public may submit written comments by the date specified in the posting in accordance with COMAR 14.01.01.05B(4).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Policy Review—Final Policy Action."> <paragraph num="A."> <text>Final Determination Concerning Affordability Challenge.</text> <paragraph num="(1)"> <text>Prior to taking an action with respect to policy, the Board shall:</text> <paragraph num="(a)"> <text>Make a final determination of whether the prescription drug has or will create an affordability challenge; and</text> </paragraph> <paragraph num="(b)"> <text>Adopt as final a cost review study report under COMAR 14.01.04.05G.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board’s determination of whether a prescription drug has or will create an affordability challenge is not final until the final cost review study report is adopted by the Board.</text> </paragraph> <paragraph num="(3)"> <text>The public may provide oral and written comments concerning any agenda item of the Board or any decision pending before the Board in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> </paragraph> <paragraph num="B."> <text>Final Policy Action: Policy Recommendations and Proposed Regulations.</text> <paragraph num="(1)"> <text>If the Board makes a final determination that the prescription drug has or will create an affordability challenge, the Board may adopt:</text> <paragraph num="(a)"> <text>Non-UPL policy recommendations in accordance with Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Proposed regulations setting the UPL at the specified amount in accordance with Regulation .08 of this chapter; or</text> </paragraph> <paragraph num="(c)"> <text>Both.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The public may provide oral and written comments concerning any agenda item of the Board or any decision pending before the Board in accordance with the procedures and timelines in COMAR 14.01.01.05A and B(2).</text> </paragraph> <paragraph num="(3)"> <text>Where applicable, the adoption of the final cost review study report, non-UPL policy recommendations, and proposed regulations setting a UPL amount:</text> <paragraph num="(a)"> <text>Shall be performed sequentially; and</text> </paragraph> <paragraph num="(b)"> <text>May be taken at the same Board meeting.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Establishing and Monitoring a UPL."> <paragraph num="A."> <text>Adopting a Proposed Regulation Setting a UPL.</text> <paragraph num="(1)"> <text>The proposed regulation shall set a specified UPL amount for specified eligible governmental entities.</text> </paragraph> <paragraph num="(2)"> <text>The Board and staff shall work with eligible governmental entities to develop the best method for implementing the UPL for the entity and a prospective effective date that provides sufficient time for implementation.</text> </paragraph> <paragraph num="(3)"> <text>The per unit final net cost paid by the eligible governmental entity shall not exceed the GovUPL.</text> </paragraph> <paragraph num="(4)"> <text>The Board shall provide for the automatic suspension of the UPL for the time that the prescription drug product is on the federal Food and Drug Administration prescription drug shortage list by regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Monitoring a UPL.</text> <paragraph num="(1)"> <text>The Board shall develop a program for monitoring the availability of any prescription drug product for which it sets a UPL.</text> </paragraph> <paragraph num="(2)"> <text>If monitoring discloses a shortage of the prescription drug product in the State, the Board may suspend or modify the UPL.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Reconsideration."> <paragraph num="A."> <text>Authority to Reconsider UPL.</text> <paragraph num="(1)"> <text>The Board may reconsider a UPL for any reason.</text> </paragraph> <paragraph num="(2)"> <text>If the Board becomes aware of a shortage of a prescription drug product in the State, for a drug that is subject to a UPL, the Board shall reconsider the UPL.</text> </paragraph> <paragraph num="(3)"> <text>The Board may suspend a UPL at any time and may suspend the UPL for the duration of the reconsideration process by proposing an amended regulation.</text> </paragraph> <paragraph num="(4)"> <text>Following completion of the reconsideration process the Board may:</text> <paragraph num="(a)"> <text>Take no action and allow the UPL to stand;</text> </paragraph> <paragraph num="(b)"> <text>Modify the UPL amount and propose amendment of the UPL regulation setting the new modified UPL amount;</text> </paragraph> <paragraph num="(c)"> <text>Suspend the UPL for a specified period and propose amendment of the regulation to proscribe the suspension; and</text> </paragraph> <paragraph num="(d)"> <text>Repeal the UPL and propose repealing the regulation setting the UPL amount.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Reconsideration Process.</text> <paragraph num="(1)"> <text>General Procedures.</text> <paragraph num="(a)"> <text>Board staff shall post notice of the reconsideration of the UPL on the Board’s website.</text> </paragraph> <paragraph num="(b)"> <text>The Board may solicit patient and stakeholder feedback through written comments submitted in accordance with COMAR 14.01.01.05B(4) and informational hearings held under COMAR 14.01.01.06C.</text> </paragraph> <paragraph num="(c)"> <text>The Board may use the information gathering process under Regulation .04 of this chapter to obtain information for the reconsideration process.</text> </paragraph> <paragraph num="(d)"> <text>Board staff shall present to the Board:</text> <paragraph num="(i)"> <text>The basis for reconsideration;</text> </paragraph> <paragraph num="(ii)"> <text>A summary of the feedback obtained through written comments, informational hearings and the information gathering process, as applicable;</text> </paragraph> <paragraph num="(iii)"> <text>A summary of the information generated through the UPL monitoring program, as applicable;</text> </paragraph> <paragraph num="(iv)"> <text>Estimated impact of the UPL to date such as savings estimates, and estimated impact on access to the drug; and</text> </paragraph> <paragraph num="(v)"> <text>Staff recommendations for Board action.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>The Board may take any action specified under §A(4) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Modifying a UPL.</text> <paragraph num="(a)"> <text>If Board staff recommends further study to support modification of the UPL, the Board shall use the procedures in Regulations .06D-F and .07B(1)(b) of this chapter to develop a new UPL amount and receive public comment.</text> </paragraph> <paragraph num="(b)"> <text>The Board may modify the UPL amount and propose amendment of the UPL regulation setting the modified UPL amount under § A(4)(b) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Action on Drug where UPL was Repealed.</text> <paragraph num="(1)"> <text>For any prescription drug product previously subject to a UPL that was later repealed, the Board may:</text> <paragraph num="(a)"> <text>Select the prescription drug product for cost review study if the drug product meets the eligibility requirements set forth in COMAR 14.01.04.02;</text> </paragraph> <paragraph num="(b)"> <text>Conduct a cost review study in accordance with COMAR 14.01.04.05; and</text> </paragraph> <paragraph num="(c)"> <text>Make a preliminary determination in accordance with COMAR 14.01.04.05.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Board makes a preliminary determination that the prescription drug product has or will create an affordability challenge the Board may:</text> <paragraph num="(a)"> <text>Consider any element or analysis from the original cost review study report;</text> </paragraph> <paragraph num="(b)"> <text>If available, consider information from the UPL monitoring program;</text> </paragraph> <paragraph num="(c)"> <text>Consider information obtained through the reconsideration process under §B of this regulation; and</text> </paragraph> <paragraph num="(d)"> <text>Set a UPL or make other policy recommendations in accordance with Regulations .07—.08 of this chapter.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="History" subtype="Administrative History">Effective date: April 28, 2025 (52:8 Md. R. 359)</annotation> </annotations> </chapter> </subtitle> <subtitle num="02" heading="State Public Information Act Compliance Board"> <chapter num="01" heading="Definitions; General Provisions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Maryland Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Board” means the State Public Information Act Compliance Board, as described in General Provisions Article, §4-1A-02, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Designated representative” means an attorney, an employee organization representative, or any other individual authorized in writing by a party to represent the party.</text> </paragraph> <paragraph num="(6)"> <text>“Dispute” has the meaning stated in COMAR 14.37.01.01B.</text> </paragraph> <paragraph num="(7)"> <text>“Exemption” has the meaning stated in COMAR 14.37.01.01B.</text> </paragraph> <paragraph num="(8)"> <text>“Final Determination” means the written document issued by the Public Access Ombudsman pursuant to General Provisions Article, §4-1B-04(b), Annotated Code of Maryland, stating that a specific dispute has been resolved or partially resolved or not been resolved.</text> </paragraph> <paragraph num="(9)"> <text>“Inmate” means an individual who:</text> <paragraph num="(a)"> <text>Is confined in a correctional or other detention facility pursuant to a court order in a criminal or juvenile delinquency case; and</text> </paragraph> <paragraph num="(b)"> <text>Has no direct access to the U.S. Postal Service or the ability to submit a complaint or other information electronically.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Ombudsman” means the Public Access Ombudsman, as described in General Provisions, §4-1B-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Sociological information” means any of the following information concerning a person that may be contained in a record of the Board:</text> <paragraph num="(a)"> <text>Social security number;</text> </paragraph> <paragraph num="(b)"> <text>Personal address;</text> </paragraph> <paragraph num="(c)"> <text>Personal phone number;</text> </paragraph> <paragraph num="(d)"> <text>Personal email address; and</text> </paragraph> <paragraph num="(e)"> <text>Date of birth.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Unreasonable fee” means a fee that does not bear a reasonable relationship to the recovery of actual costs incurred by a governmental unit responding to a request for a public record.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Jurisdiction."> <paragraph num="A."> <text>Subject to the procedure outlined in COMAR 14.02.02, the Board shall review and resolve complaints from an applicant or the applicant’s designated representative alleging that a custodian:</text> <paragraph num="(1)"> <text>Denied inspection of a public record in violation of the Act;</text> </paragraph> <paragraph num="(2)"> <text>Charged an unreasonable fee or charged an unreasonable estimated fee of more than $350 under General Provisions Article, §4-206, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>Failed to respond to a request for a public record within the time limits established under General Provisions Article, §4-203(a) or (d), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Subject to the procedure outlined in COMAR 14.02.03, the Board shall review and resolve complaints from a custodian alleging that an applicant’s request or pattern of requests is frivolous, vexatious, or in bad faith.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Recusal of Board Members."> <paragraph num="A."> <text>Standard for Recusal.</text> <paragraph num="(1)"> <text>A Board member shall recuse himself or herself from Board proceedings that involve circumstances in which the Board member:</text> <paragraph num="(a)"> <text>Has a conflict of interest; or</text> </paragraph> <paragraph num="(b)"> <text>Cannot participate fairly and impartially.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Personal familiarity with an applicant or custodian does not, of itself, require recusal of a Board member.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board member who is recused from a matter before the Board may not:</text> <paragraph num="(1)"> <text>Participate in the Board’s discussion or decision on the matter; or</text> </paragraph> <paragraph num="(2)"> <text>Discuss the matter or the Board’s review of the matter with members of the Board, the parties, or staff or counsel to the Board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Board shall document the recusal of the Board member from a matter in its written decision on the matter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Consolidation of Complaints."> <text>In its discretion, the Board may consolidate complaints filed under COMAR 14.02.02 and COMAR 14.02.03 if both complaints involve the same applicant and same custodian, and if consolidation will promote efficient and fair resolution of the complaints.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Computation of Time."> <text>Computation of a period of time shall be governed by General Provisions Article, §1-302, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Date of Receipt."> <paragraph num="A."> <text>A complaint, response, or reply to a response is deemed received on the date that it is postmarked or sent by email to the Board.</text> </paragraph> <paragraph num="B."> <text>Inmate Applicants.</text> <paragraph num="(1)"> <text>A complaint, response, or reply to a response is deemed received on the date that the complaint, response, or reply to a response, in mailable form and with proper postage affixed is:</text> <paragraph num="(a)"> <text>Deposited by the inmate applicant into a receptacle designated by the facility for outgoing mail; or</text> </paragraph> <paragraph num="(b)"> <text>Personally delivered to an employee of the facility authorized by the facility to collect such mail.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A date stamp affixed pursuant to COMAR 12.02.20.04A or COMAR 12.12.20.04A, or a similar date stamp affixed by a county detention center or other detention facility not within the control of the Division of Correction, is evidence of the date on which an inmate applicant sent a complaint, response, or reply to a response under §B(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Record."> <paragraph num="A."> <text>The Board shall maintain a record of each matter, including an index.</text> </paragraph> <paragraph num="B."> <text>The Board’s internal record of a matter shall consist of the following, if filed in a matter:</text> <paragraph num="(1)"> <text>The complaint;</text> </paragraph> <paragraph num="(2)"> <text>The response to a complaint;</text> </paragraph> <paragraph num="(3)"> <text>The reply to the response;</text> </paragraph> <paragraph num="(4)"> <text>Written notices;</text> </paragraph> <paragraph num="(5)"> <text>Written requests for information;</text> </paragraph> <paragraph num="(6)"> <text>Records or additional information received by the Board pursuant to COMAR 14.02.05.03;</text> </paragraph> <paragraph num="(7)"> <text>The recording of an informal conference; and</text> </paragraph> <paragraph num="(8)"> <text>The Board’s written decision.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The public record of a matter shall consist of the records listed in §B of this regulation, if filed, except that records or additional information received by the Board pursuant to COMAR 14.02.05.03 may not be included.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §4-1A-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="02" heading="Complaint Process — Applicants"> <regulation prefix="Regulation" num=".01" heading="Filing a Complaint."> <paragraph num="A."> <text>An applicant or the applicant’s designated representative may file a complaint with the Board within 30 days after receiving a Final Determination from the Ombudsman that a specific dispute has not been resolved.</text> </paragraph> <paragraph num="B."> <text>The complaint shall:</text> <paragraph num="(1)"> <text>Pertain only to the dispute described in the Final Determination;</text> </paragraph> <paragraph num="(2)"> <text>Be submitted in writing; and</text> </paragraph> <paragraph num="(3)"> <text>Be signed by the applicant.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The substance of the complaint shall, at minimum:</text> <paragraph num="(1)"> <text>Identify the custodian that is the subject of the complaint; and</text> </paragraph> <paragraph num="(2)"> <text>Describe the action of the custodian, the date of the action, and the circumstances of the action.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A complaint may be filed by email or regular mail.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Documents Attached to Complaint."> <paragraph num="A."> <text>If available, an applicant shall attach to the complaint:</text> <paragraph num="(1)"> <text>A copy of the original request for a public record;</text> </paragraph> <paragraph num="(2)"> <text>A copy of the custodian’s response; and</text> </paragraph> <paragraph num="(3)"> <text>The Ombudsman’s Final Determination.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant may attach to the complaint additional documents relevant to the dispute, including correspondence between the applicant and the custodian.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Response to Complaint."> <paragraph num="A."> <text>Upon receipt of a complaint, the Board shall:</text> <paragraph num="(1)"> <text>Promptly send the complaint to the custodian identified in the complaint; and</text> </paragraph> <paragraph num="(2)"> <text>Request that the custodian send a response to the Board.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A custodian shall file a written response to a complaint within 30 days after receiving the complaint and request for a response from the Board.</text> </paragraph> <paragraph num="C."> <text>Complaints Alleging that a Custodian Denied Inspection of a Public Record in Violation of the Act.</text> <paragraph num="(1)"> <text>If a complaint alleges that a custodian denied inspection of a public record in violation of the Act, the custodian’s response shall, to the extent relevant to the dispute:</text> <paragraph num="(a)"> <text>Explain why denial was necessary;</text> </paragraph> <paragraph num="(b)"> <text>Explain why redacting information would not address the reasons for denial;</text> </paragraph> <paragraph num="(c)"> <text>Provide the legal authority for the denial; and</text> </paragraph> <paragraph num="(d)"> <text>Without disclosing protected information or creating a descriptive index, provide a brief description of the undisclosed records that allows the Board to assess the applicability of the legal authority for the denial.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the custodian’s response to the applicant’s request for public records contains all of the information required by §C(1) of this regulation, then it is sufficient for the custodian to attach the response.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a complaint alleges that a custodian charged an unreasonable fee or charged an unreasonable estimated fee of more than $350 under General Provisions Article, §4-206, Annotated Code of Maryland, the response shall, to the extent relevant to the dispute, include:</text> <paragraph num="(1)"> <text>The hourly salary rates for the staff who responded or who are likely to respond to the applicant’s request for a public record;</text> </paragraph> <paragraph num="(2)"> <text>The number of hours expended by each staff, or the number of hours the custodian anticipates will be expended by each staff, to respond to the applicant’s request for a public record;</text> </paragraph> <paragraph num="(3)"> <text>A description of the tasks each staff performed or is likely to perform to respond to the applicant’s request for public records; and</text> </paragraph> <paragraph num="(4)"> <text>An explanation of how fees for reproduction of the records are calculated.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a complaint alleges that a custodian failed to respond to a request for a public record within the time limits established by General Provisions Article, §4-203(a) or (d), Annotated Code of Maryland, the response shall, to the extent relevant to the dispute:</text> <paragraph num="(1)"> <text>Provide the date and nature of correspondence with the applicant, if any;</text> </paragraph> <paragraph num="(2)"> <text>Describe the circumstances that prevented the custodian from responding in a timely manner; and</text> </paragraph> <paragraph num="(3)"> <text>Explain how the custodian intends to respond to the applicant’s request for public records.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A custodian may not attach to its response records that it claims are confidential, privileged, or otherwise exempt from disclosure.</text> </paragraph> <paragraph num="G."> <text>A custodian shall send a copy of the response to the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reply to Response."> <paragraph num="A."> <text>The Board may, in its discretion, permit the applicant to file a reply to the custodian’s response.</text> </paragraph> <paragraph num="B."> <text>If permitted to file a reply, the applicant shall:</text> <paragraph num="(1)"> <text>File the reply within 15 days after receiving the custodian’s response; and</text> </paragraph> <paragraph num="(2)"> <text>Send a copy of the reply to the custodian.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Effect of Failure to Respond."> <text>If a written response from a custodian is not received within 30 days after the Board notifies the custodian of the complaint and requests a response and the Board has not requested any additional information, the Board shall decide the case on the facts before it.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Transfer of Information from Ombudsman."> <paragraph num="A."> <text>The Ombudsman may transfer basic information about a dispute to the Board, including:</text> <paragraph num="(1)"> <text>The identity of the applicant and custodian;</text> </paragraph> <paragraph num="(2)"> <text>A brief summary of the nature of the dispute; and</text> </paragraph> <paragraph num="(3)"> <text>A copy of the Final Determination relevant to the complaint.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidential Communications or Information.</text> <paragraph num="(1)"> <text>The Ombudsman may not disclose to the Board any confidential mediation communications or mediation information, defined in COMAR 14.37.01.01B(8) and (10), that are made or received in the course of attempting to resolve a dispute.</text> </paragraph> <paragraph num="(2)"> <text>The Ombudsman may disclose confidential communications or information referenced in §B(1) of this regulation if all parties have consented to the disclosure in writing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Withdrawal of Complaint."> <text>An applicant may withdraw a complaint at any time until the Board’s decision is issued.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Dismissal of Complaint."> <paragraph num="A."> <text>The Board shall dismiss a complaint if:</text> <paragraph num="(1)"> <text>The Board lacks jurisdiction to review the complaint;</text> </paragraph> <paragraph num="(2)"> <text>The complaint is filed more than 30 days after the applicant received the Ombudsman’s Final Determination; or</text> </paragraph> <paragraph num="(3)"> <text>The complaint is not signed by the applicant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Board dismisses a complaint because it is not signed by the applicant, the applicant may refile a signed complaint within the same 30 days of receiving the Final Determination from the Ombudsman.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Effect of Filing."> <text>A complaint, the custodian’s response to a complaint, and a reply to the custodian’s response are public records of the Board subject to inspection under the Act.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1A-04(a) and (c), 4-1A-05, and 4-1A-06, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="03" heading="Complaint Process — Custodians"> <regulation prefix="Regulation" num=".01" heading="Filing a Complaint."> <paragraph num="A."> <text>A custodian may file a complaint with the Board within 30 days after receiving a Final Determination from the Ombudsman that a dispute has not been resolved.</text> </paragraph> <paragraph num="B."> <text>The complaint shall:</text> <paragraph num="(1)"> <text>Pertain only to the dispute described in the Final Determination;</text> </paragraph> <paragraph num="(2)"> <text>Be submitted in writing; and</text> </paragraph> <paragraph num="(3)"> <text>Be signed by the custodian.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The substance of the complaint shall, at minimum:</text> <paragraph num="(1)"> <text>Identify the applicant that is the subject of the complaint;</text> </paragraph> <paragraph num="(2)"> <text>Describe the action of the applicant, the date of the action, and the circumstance of the action, including:</text> <paragraph num="(a)"> <text>The number and scope of the applicant’s past requests, if any;</text> </paragraph> <paragraph num="(b)"> <text>The custodian’s responses to past requests, if any; and</text> </paragraph> <paragraph num="(c)"> <text>Efforts to cooperate with the applicant; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Explain why, in the custodian’s opinion, the applicant’s request or pattern of requests is frivolous, vexatious, or in bad faith.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A complaint may be filed by email or regular mail.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Documents Attached to Complaint."> <paragraph num="A."> <text>If available, a custodian shall attach to the complaint:</text> <paragraph num="(1)"> <text>A copy of the original request for a public record;</text> </paragraph> <paragraph num="(2)"> <text>A copy of the custodian’s response; and</text> </paragraph> <paragraph num="(3)"> <text>The Ombudsman’s Final Determination.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A custodian may attach to the complaint additional documents relevant to the dispute, including correspondence between the applicant and the custodian.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Response to Complaint."> <paragraph num="A."> <text>Upon receipt of a complaint, the Board shall:</text> <paragraph num="(1)"> <text>Promptly send the complaint to the applicant identified in the complaint; and</text> </paragraph> <paragraph num="(2)"> <text>Request that the applicant send a response to the Board.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant shall file a written response to a complaint within 30 days after receiving the complaint and request for a response from the Board.</text> </paragraph> <paragraph num="C."> <text>An applicant shall send a copy of the response to the custodian.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reply to Response."> <paragraph num="A."> <text>The Board may, in its discretion, permit the custodian to file a reply to the applicant’s response.</text> </paragraph> <paragraph num="B."> <text>If permitted to file a reply, the custodian shall:</text> <paragraph num="(1)"> <text>File the reply within 15 days after receiving the applicant’s response; and</text> </paragraph> <paragraph num="(2)"> <text>Send a copy of the reply to the applicant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Effect of Failure to Respond."> <text>If a written response from an applicant is not received within 30 days after the Board notifies the applicant of the complaint and requests a response and the Board has not requested any additional information, the Board shall decide the case on the facts before it.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Transfer of Information from Ombudsman."> <paragraph num="A."> <text>The Ombudsman may transfer basic information about a dispute to the Board, including:</text> <paragraph num="(1)"> <text>The identity of the applicant and custodian;</text> </paragraph> <paragraph num="(2)"> <text>A brief summary of the nature of the dispute; and</text> </paragraph> <paragraph num="(3)"> <text>A copy of the Final Determination relevant to the complaint.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidential Communications or Information.</text> <paragraph num="(1)"> <text>The Ombudsman may not disclose to the Board any confidential communications or information, defined in COMAR 14.37.01.01B(8) and (10), that are made or received in the course of attempting to resolve a dispute.</text> </paragraph> <paragraph num="(2)"> <text>The Ombudsman may disclose confidential communications or information referenced in §B(1) of this regulation if all parties have consented to the disclosure in writing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Withdrawal of Complaint."> <text>A custodian may withdraw a complaint at any time until the Board’s decision is issued.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Dismissal of Complaint."> <paragraph num="A."> <text>The Board shall dismiss a complaint if:</text> <paragraph num="(1)"> <text>The Board lacks jurisdiction to review the complaint;</text> </paragraph> <paragraph num="(2)"> <text>The complaint is filed more than 30 days after the custodian received the Ombudsman’s Final Determination; or</text> </paragraph> <paragraph num="(3)"> <text>The complaint is not signed by the custodian.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Board dismisses a complaint because it is not signed by the custodian, the custodian may refile a signed complaint within the same 30 days of receiving the Final Determination from the Ombudsman.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Effect of Filing."> <text>A complaint, the applicant’s response to a complaint, and a reply to the applicant’s response are public records of the Board subject to inspection under the Act.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1A-04(b) and (c), 4-1A-05, and 4-1A-06, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="04" heading="Informal Conference"> <regulation prefix="Regulation" num=".01" heading="Board’s Discretion."> <text>If the Board is unable to reach a decision based on the written submissions before it, the Board may schedule an informal conference to hear from the complainant and affected custodian or applicant, or any other person with relevant information about the subject of the complaint.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Notice of Informal Conference."> <paragraph num="A."> <text>After receipt of a complaint, the response, and a reply to the response, if one is filed, the Board shall notify the parties if it intends to hold an informal conference.</text> </paragraph> <paragraph num="B."> <text>Notice of an informal conference shall state:</text> <paragraph num="(1)"> <text>The names of the complainant and affected custodian or applicant;</text> </paragraph> <paragraph num="(2)"> <text>The matter number;</text> </paragraph> <paragraph num="(3)"> <text>The date and time of the informal conference; and</text> </paragraph> <paragraph num="(4)"> <text>The location of the informal conference.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Board may coordinate the date, time, and location of the informal conference with the complainant and the affected custodian or applicant prior to issuing the notice under §B of this regulation.</text> </paragraph> <paragraph num="D."> <text>Notice of an informal conference shall be sent by email, if provided, and regular mail to the address provided.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Location of Informal Conference."> <paragraph num="A."> <text>An informal conference shall be held in a location that is as convenient as practicable to the complainant and the affected custodian or applicant.</text> </paragraph> <paragraph num="B."> <text>An informal conference may be held by videoconference or teleconference, at the Board’s discretion.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Timing of Informal Conference."> <text>An informal conference shall be held as soon as practicably possible after receipt of all written submissions, but no later than 30 days after receipt of all written submissions unless extenuating circumstances require an extension.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Procedure During Informal Conference."> <paragraph num="A."> <text>Charge of Informal Conference.</text> <paragraph num="(1)"> <text>The Chair of the Board shall have charge over the conduct of an informal conference.</text> </paragraph> <paragraph num="(2)"> <text>If the Chair is recused from a matter under COMAR 14.02.01.03, then a Board member designated by the Chair shall have charge over the conduct of an informal conference.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Evidence.</text> <paragraph num="(1)"> <text>Testimony.</text> <paragraph num="(a)"> <text>In addition to live testimony, the Board may allow the parties to testify by teleconference or to submit written testimony by email or regular mail, provided that any written testimony is also submitted to the other party.</text> </paragraph> <paragraph num="(b)"> <text>The Board may ask questions of and elicit testimony from the parties during the informal conference.</text> </paragraph> <paragraph num="(c)"> <text>Cross-examination may be conducted as the Chair, or the Board member designated by the Chair to have charge over the informal conference, finds it required for full and true disclosure of the facts.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board may allow documentary or other nontestimonial evidence to be submitted at an informal conference, provided that it is also sent to the other party.</text> </paragraph> <paragraph num="(3)"> <text>The strict rules of evidence observed by the courts do not apply to an informal conference.</text> </paragraph> <paragraph num="(4)"> <text>In its discretion, the Board may exclude irrelevant or unduly repetitive evidence.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An informal conference is not a contested case within the meaning of State Government Article, §10-202(d), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Record of Informal Conference."> <text>The Board shall record an informal conference.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1A-04(c) and 4-1A-07(b), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="05" heading="Request for Records or Additional Information"> <regulation prefix="Regulation" num=".01" heading="Form of Request."> <paragraph num="A."> <text>The Board may send a request for additional information by email or regular mail.</text> </paragraph> <paragraph num="B."> <text>The Board shall send a copy of a request for additional information to all parties.</text> </paragraph> <paragraph num="C."> <text>The Board may direct the party providing the additional information to send a copy of the additional information provided in response to the Board’s request to the other party.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Request for Custodian’s Response to Request for Public Record."> <text>If a complaint alleges that a custodian failed to respond to a request for a public record within the time limits established under General Provisions Article, §4-203(a) or (d), Annotated Code of Maryland, the Board may request the response to the request for a public record.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Requests Related to Public Records."> <paragraph num="A."> <text>If a complaint alleges that a custodian denied inspection of a public record in violation of the Act, the Board may request that the custodian provide, as appropriate in the Board’s discretion:</text> <paragraph num="(1)"> <text>A copy of the public record for in camera inspection, unless the custodian’s response to the request for a public record indicated that inspection was denied under General Provisions Article, §4-301(a)(2)(ii), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>A descriptive index of the public record; or</text> </paragraph> <paragraph num="(3)"> <text>A written reason why the record cannot be disclosed.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board shall maintain the confidentiality of records or information provided under §A of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Request for Basis for Fee Charged."> <text>If a complaint alleges that a custodian charged an unreasonable fee or estimated fee under General Provisions Article, §4-206, Annotated Code of Maryland, the Board may request that the custodian provide more information about the basis for the fee or estimated fee charged.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Frivolous, Vexatious, or Bad Faith Requests."> <text>If necessary to resolve the complaint, the Board may request more information related to an alleged frivolous, vexatious, or bad faith request, including information about the applicant’s pattern or history of requests.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Request for Affidavit or Statement."> <text>The Board may request that a custodian or applicant provide an affidavit, in the form provided by Maryland Rule 1-304, or a statement containing the facts that are at issue in the complaint.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Timing."> <paragraph num="A."> <text>The Board shall request additional records or information, if needed, as soon as practicably possible.</text> </paragraph> <paragraph num="B."> <text>A custodian or applicant shall send to the Board the additional records or information requested as soon as practicably possible after receipt of the Board’s request, but no later than 30 days after receipt of the request.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1A-04(c) and 4-1A-06(b), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="06" heading="Confidential Records or Information Provided Under COMAR 14.02.05.03"> <regulation prefix="Regulation" num=".01" heading="General Confidentiality Provisions."> <paragraph num="A."> <text>Records or Information Received by the Board.</text> <paragraph num="(1)"> <text>A record or information received by the Board pursuant to COMAR 14.02.05.03 is not a public record of the Board subject to inspection under the Act.</text> </paragraph> <paragraph num="(2)"> <text>A complaint, the response, and a reply to the response received by the Board are public records of the Board subject to inspection under the Act.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board shall maintain the confidentiality of a record or information received by the Board from a custodian pursuant to COMAR 14.02.05.03.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Provision of Confidential Records or Information."> <paragraph num="A."> <text>Records or information received by the Board pursuant to COMAR 14.02.05.03 may be sent by regular mail, certified mail, email, or hand-delivery.</text> </paragraph> <paragraph num="B."> <text>Records or information sent to the Board under this regulation shall contain an inspection index.</text> </paragraph> <paragraph num="C."> <text>Each individual record or information sent to the Board under this regulation shall be Bates numbered consecutively and correspond to the numbers as listed in the index.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Storage of Confidential Records or Information."> <paragraph num="A."> <text>Hardcopy records or information received by the Board pursuant to COMAR 14.02.05.03 shall be stored on behalf of the Board in a locked file of the Public Access Unit of the Office of the Attorney General.</text> </paragraph> <paragraph num="B."> <text>Electronic records or information received by the Board pursuant to COMAR 14.02.05.03 shall be stored on behalf of the Board in a secure electronic file.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Access to Confidential Records or Information."> <paragraph num="A."> <text>Only the Board, an Assistant Attorney General assigned to the Public Access Unit, the administrator to the Board, and individuals working under the supervision and at the direction of the staff of the Public Access Unit may inspect records or information received by the Board pursuant to COMAR 14.02.05.03.</text> </paragraph> <paragraph num="B."> <text>The individuals listed in §A of this regulation shall safeguard the confidentiality of records or information received by the Board pursuant to COMAR 14.02.05.03.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Reference to Confidential Records or Information."> <text>References in the Board’s decision to specific records or information received by the Board pursuant to COMAR 14.02.05.03 shall be by the Bates numbers or by generic descriptions or characterizations as set forth in the inspection index.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Return or Destruction of Confidential Records or Information."> <paragraph num="A."> <text>No Appeal of Board Decision Filed.</text> <paragraph num="(1)"> <text>After 45 days from the issuance of the Board’s decision, the Board shall notify the custodian to make appropriate arrangements for the return of all records or information received by the Board pursuant to COMAR 14.02.05.03.</text> </paragraph> <paragraph num="(2)"> <text>Destruction of Records or Information.</text> <paragraph num="(a)"> <text>If a custodian fails to make arrangements for the return of records or information received by the Board pursuant to COMAR 14.02.05.03, the Board shall destroy the records or information after 90 days from the issuance of the Board’s decision.</text> </paragraph> <paragraph num="(b)"> <text>Destruction of electronic records or information shall be accomplished by deleting the records or information from email and the internal network drive of the Public Access Unit.</text> </paragraph> <paragraph num="(c)"> <text>Destruction of hardcopy records or information shall be accomplished by shredding the records.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Appeal of Board Decision Filed.</text> <paragraph num="(1)"> <text>The Board shall continue to store records or information received by the Board pursuant to COMAR 14.02.05.03 according to Regulation .03 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>Once the opinion of the circuit court has issued, the Board shall return or destroy the records or information received by the Board pursuant to COMAR 14.02.05.03 according to the time periods provided in §A of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Effect of Providing Confidential Records or Information."> <paragraph num="A."> <text>A custodian may not be civilly or criminally liable under Maryland law for providing or describing a public record to the Board under General Provisions Article, §4-1A-06(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The provision of a record or a description of a record to the Board under General Provisions Article, §4-1A-06(b), Annotated Code of Maryland, may not be construed as a waiver of any applicable privilege.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Record on Appeal."> <paragraph num="A."> <text>The Board shall prepare and transmit the record in accordance with the Maryland Rules.</text> </paragraph> <paragraph num="B."> <text>The Board shall transmit any part of the record that contains records or information received by the Board pursuant to COMAR 14.02.05.03, or that are otherwise not open to public inspection, under seal.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-101(k), 4-1A-04(c), and 4-1A-06(b), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="07" heading="Decisions of Board"> <regulation prefix="Regulation" num=".01" heading="Written Decision."> <paragraph num="A."> <text>The Board shall issue a written decision.</text> </paragraph> <paragraph num="B."> <text>In its written decision, the Board shall refer to any confidential records or information in accordance with COMAR 14.02.06.05.</text> </paragraph> <paragraph num="C."> <text>A decision of the Board may state that it is unable to resolve the complaint.</text> </paragraph> <paragraph num="D."> <text>The Board shall send a copy of the written decision to the complainant and the affected custodian or applicant.</text> </paragraph> <paragraph num="E."> <text>The Board may send to any custodian in the State any written decision that will provide the custodian with guidance on compliance with the Act.</text> </paragraph> <paragraph num="F."> <text>As required by statute, the Attorney General shall post on the website of the Office of the Attorney General all of the Board’s written decisions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Timing Generally."> <paragraph num="A."> <text>Except as provided in Regulation .03 of this chapter, the Board shall issue a written decision within 30 days after receiving the written response, a reply, if filed, and all records or information requested under COMAR 14.02.05.</text> </paragraph> <paragraph num="B."> <text>Except as provided in Regulation .03 of this chapter, if the Board holds an informal conference under COMAR 14.02.04, the Board shall issue a written decision within 30 days after the informal conference.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Statement of Delay."> <paragraph num="A."> <text>If the Board is unable to issue a decision within the time periods specified in Regulation .02 of this chapter, it shall state in writing the reason for its inability to issue a decision.</text> </paragraph> <paragraph num="B."> <text>The Board shall issue a decision as soon as possible, but no later than 120 days after the filing of the complaint.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Remedies."> <paragraph num="A."> <text>If the Board finds that a custodian has denied inspection of all or part of a public record in violation of the Act, the Board may order the custodian to produce the public record for inspection.</text> </paragraph> <paragraph num="B."> <text>If the Board finds that a custodian charged an unreasonable fee or charged an unreasonable estimated fee under General Provisions Article, §4-206, Annotated Code of Maryland, the Board may order the custodian to reduce the fee or estimated fee to an amount the Board determines is reasonable and refund the difference, if applicable.</text> </paragraph> <paragraph num="C."> <text>Remedies for Custodian’s Failure to Respond.</text> <paragraph num="(1)"> <text>If the Board finds that a custodian failed to respond to a request for a public record within the time limits established under General Provisions Article, §4-203(a) or (d), Annotated Code of Maryland, the Board may order the custodian to promptly respond.</text> </paragraph> <paragraph num="(2)"> <text>The Board may order a custodian to waive all or part of the fee that the custodian is entitled to charge under General Provisions Article, §4-206, Annotated Code of Maryland, if:</text> <paragraph num="(a)"> <text>The Board finds that a custodian failed to respond to a request for a public record within the time limits established under General Provisions Article, §4-203(a) or (d), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>The Board includes its reasons for ordering the waiver in its written decision.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>If the Board finds that an applicant’s request is frivolous, vexatious, or in bad faith based on the totality of the circumstances, the Board may issue an order authorizing the custodian to:</text> <paragraph num="(1)"> <text>Ignore the request that is the subject of the custodian’s complaint;</text> </paragraph> <paragraph num="(2)"> <text>Ignore any future requests that are substantially the same as the request that is the subject of the custodian’s complaint; or</text> </paragraph> <paragraph num="(3)"> <text>Respond to a less burdensome version of the request within a time frame that the Board determines is reasonable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Appeal Rights."> <paragraph num="A."> <text>A complainant or custodian may appeal the Board’s decision in accordance with General Provisions, §4-362(a)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>An appeal filed pursuant to §A of this regulation automatically stays the Board’s decision pending the circuit court’s decision.</text> </paragraph> <paragraph num="C."> <text>A party may not appeal a decision of the Board that states that the Board is unable to resolve the complaint.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1A-04, 4-1A-07, and 4-362(a)(2), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> <chapter num="08" heading="Meetings of Board"> <regulation prefix="Regulation" num=".01" heading="Deliberations."> <paragraph num="A."> <text>To resolve a complaint, the Board may deliberate by email, teleconference, videoconference, or in person.</text> </paragraph> <paragraph num="B."> <text>Deliberations under this regulation shall pertain only to the resolution of a complaint.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Meetings."> <paragraph num="A."> <text>The Board may elect to convene regular standing meetings to deliberate and resolve complaints, and to address any other business of the Board.</text> </paragraph> <paragraph num="B."> <text>All meetings shall be held in accordance with General Provisions Article, Title 3, Annotated Code of Maryland, to the extent applicable to the meeting.</text> </paragraph> <paragraph num="C."> <text>All meetings shall be governed by commonly accepted rules of parliamentary procedure as determined by the Chair of the Board.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §4-1A-04(c), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 13, 2022 (49:12 Md. R. 641)</annotation> </annotations> </chapter> </subtitle> <subtitle num="03" heading="Commission on Human Relations"> <chapter num="01" heading="Rules of Procedure; Public Hearing Process"> <regulation prefix="Regulation" num=".01" heading="Applicability."> <text>The rules of procedure provided in this chapter apply to the processing of complaints of discrimination under the provisions of State Government Article, Title 20, Annotated Code of Maryland, except for those covered under the “Discrimination in Housing” subtitle, State Government Article, Title 20, Subtitle 7, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>Complaint.</text> <paragraph num="(1)"> <text>“Complaint” is a written statement by a person or by the Commission alleging an act of discrimination prohibited by State Government Article, Title 20, Annotated Code of Maryland, or any other statute administered or enforced by the Commission under the laws of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>No particular language or allegations may be required in a complaint for its filing, provided that its language is sufficient to apprise a reasonable person that such an act has been alleged.</text> </paragraph> <paragraph num="(3)"> <text>A complaint may be amended as provided in these regulations to include these allegations of specific facts and particulars as will fairly inform the respondent of the unlawful conduct alleged or otherwise to conform the complaint to the requirements of law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>“Executive Director” includes the Executive Director, and, in the event of the Executive Director's absence from the offices of the Commission or other temporary inability to fulfill the functions of the Executive Director's office, the Deputy Executive Director. “Executive Director or designee” includes the Executive Director, the Deputy Executive Director, and duly appointed supervisory personnel of the Commission duly acting in a supervisory function.</text> </paragraph> <paragraph num="C."> <text>“Human Relations Commission” includes any individual or body duly authorized by statute, ordinance, or other appointment or designation as provided by law, including, but not limited to, city, county, or other local human relations commissions or agencies, charged thereby with the receipt of complaints of unlawful discrimination, and any entity designated by the Governor for the administration of the Code of Fair Practices.</text> </paragraph> <paragraph num="D."> <text>“Investigator” means a member of the staff of the Commission presently designated “Human Relations Representative” and all agents of the Commission acting in the same capacity as may be so designated from time to time by the Executive Director or otherwise pursuant to law.</text> </paragraph> <paragraph num="E."> <text>Notice. Except where otherwise provided in these regulations, “notice” of any action, decision, or proceeding required by these regulations shall be deemed to have been properly served by:</text> <paragraph num="(1)"> <text>Mailing by certified or registered mail;</text> </paragraph> <paragraph num="(2)"> <text>A certification by an agent of the Commission that a document has been mailed; or</text> </paragraph> <paragraph num="(3)"> <text>Personal delivery to the addressee, such that actual receipt of this notice is made within a reasonably prompt time and within any time period required by these regulations.</text> </paragraph> </paragraph> <paragraph num="F."> <text>“Offices of the Commission” means the Commission's offices in Baltimore City and such other offices within the State as may from time to time be established by the Commission.</text> </paragraph> <paragraph num="G."> <text>Party. As used in Regulation .10, the word “party” means the Maryland Commission on Human Relations, the respondent, or the complainant. As used in Regulation .11, the word “party” means the Maryland Commission on Human Relations, the respondent, and the complainant, as well as any person clearly identified in the record of the proceedings before the Office of Administrative Hearings as having an interest in the disposition of the complaint.</text> </paragraph> <paragraph num="H."> <text>“Person” means one or more individuals, labor unions, partnerships, associations, corporations, successors in interest, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, or receivers.</text> </paragraph> <paragraph num="I."> <text>Time.</text> <paragraph num="(1)"> <text>Days.</text> <paragraph num="(a)"> <text>In computing any number of “days” described in these regulations or in any Order of the Commission, the day of the act or event after which the designated number of days begins is not included, and Saturdays, Sundays, and State holidays shall be counted only when the period described is more than 7 days.</text> </paragraph> <paragraph num="(b)"> <text>When the last day computed would fall on a Saturday, Sunday, or State holiday, the period shall extend to the first day thereafter which is not a Saturday, Sunday, or State holiday.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Six Months.</text> <paragraph num="(a)"> <text>“Six months” means that period of time which begins on the day following the applicable act or event and extends to the day of the sixth month bearing the same calendar number.</text> </paragraph> <paragraph num="(b)"> <text>When the last mentioned day would fall on a day whose number does not exist in this sixth month, the period shall extend to the applicable number of days in the next month.</text> </paragraph> <paragraph num="(c)"> <text>When the last day so computed would fall on a Saturday, Sunday, or State holiday, the period shall extend to the first day which is not one of those days.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>“Proceeding” means a conference, meeting, hearing, investigation, inquiry, or other fact-finding or decision-making procedure, including the dismissal of a complaint.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Complaint Filing."> <paragraph num="A."> <text>Who May File.</text> <paragraph num="(1)"> <text>Any person or organization whose membership includes any person or persons, who claim to have been aggrieved by an act or acts of unlawful discrimination prohibited by State Government Article, Title 20, Annotated Code of Maryland, may file a complaint with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may file a complaint in accordance with State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Manner of Filing.</text> <paragraph num="(1)"> <text>Complaints shall be filed at the offices of the Commission in person, by registered, certified, or regular mail, facsimile or other electronic media, or by delivery to any duly appointed representative of the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Complaints Initiated by Telephone.</text> <paragraph num="(a)"> <text>Complaints may be initiated by telephone to the Commission.</text> </paragraph> <paragraph num="(b)"> <text>If a complaint is initiated by telephone, the Commission shall:</text> <paragraph num="(i)"> <text>Reduce information provided by telephone to writing on the prescribed complaint form; and</text> </paragraph> <paragraph num="(ii)"> <text>Send the complaint form to the aggrieved person to be signed and affirmed as provided in §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A telephone-initiated complaint is considered filed only upon receipt of the form or a signed writing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>When Filed.</text> <paragraph num="(1)"> <text>Individual complaints, except those involving allegations of housing discrimination, shall be filed within 6 months from the date of the occurrence of the alleged unlawful discrimination.</text> </paragraph> <paragraph num="(2)"> <text>If the alleged unlawful discrimination practice is of a continuing nature, the date of the occurrence of this unlawful discrimination is considered to be any date up to and including that date on which the unlawful practice shall have ceased.</text> </paragraph> <paragraph num="(3)"> <text>An individual complaint filed with a federal or a local commission within the 6-month period required under §C(1) of this regulation shall be deemed as being a timely filing in compliance with that requirement.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Form and Content of Complaint.</text> <paragraph num="(1)"> <text>The original complaint and two additional copies shall be signed and affirmed by the complainant or, if the complaint is filed by the Commission, in accordance with Regulation .11 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>An individual complaint may be filed on a form provided by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Complaint forms will be made available to all persons at the office of the Commission in Baltimore, Maryland or other offices within the State which may be established.</text> </paragraph> <paragraph num="(4)"> <text>Appropriate assistance in filling out forms will be rendered to complainants or to persons filing on behalf of a complainant, by personnel of the Commission.</text> </paragraph> <paragraph num="(5)"> <text>Complaints filed on forms provided by other local commissions, including federal civil rights agencies, shall be considered complaints filed with the Commission.</text> </paragraph> <paragraph num="(6)"> <text>Notwithstanding the requirement for using a required form, the Commission will accept a written statement which substantially sets forth the allegations of a discriminatory practice under State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>Each complaint shall contain substantially the following information:</text> <paragraph num="(a)"> <text>The name and address of the complainant;</text> </paragraph> <paragraph num="(b)"> <text>The name and address of the respondent; and</text> </paragraph> <paragraph num="(c)"> <text>A concise statement of facts including pertinent dates, constituting the alleged discriminatory practice.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Amendment of Complaint.</text> <paragraph num="(1)"> <text>A complaint may be reasonably and fairly amended at any time.</text> </paragraph> <paragraph num="(2)"> <text>The amendments may include but are not limited to amendments to:</text> <paragraph num="(a)"> <text>Cure technical defects or omissions, including failure to sign or affirm the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Clarify and amplify any allegation made in the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Join additional or substitute respondents; or</text> </paragraph> <paragraph num="(d)"> <text>Allege additional acts which constitute discriminatory practices under State Government Article, Title 20, Annotated Code of Maryland, which relate back to or grow out of the subject matter of the original complaint.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All amendments shall relate back to the original filing date.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Complaint Processing."> <paragraph num="A."> <text>Review and Authorization. After the filing of a complaint, the Executive Director or designee shall:</text> <paragraph num="(1)"> <text>Review the complaint to determine whether it should issue for reasons of standing of the parties, timeliness of the filing, or other matters upon which its issuance may depend;</text> </paragraph> <paragraph num="(2)"> <text>In cases where the complaint is acceptable, authorize an investigation by dating and signing the complaint; or</text> </paragraph> <paragraph num="(3)"> <text>In cases where the complaint is rejected and not susceptible to amendment, serve notice on the complainant stating the reasons for the rejection.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice.</text> <paragraph num="(1)"> <text>After the authorization of an individual complaint by the Executive Director or designee, as set forth in §A of this regulation, and not more than 120 days from the date on which this complaint was filed, the Commission staff shall provide notice of it by serving a copy of the complaint upon the respondent.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall:</text> <paragraph num="(a)"> <text>Acknowledge the filing of the complaint and state the date that the complaint was accepted for filing;</text> </paragraph> <paragraph num="(b)"> <text>Include a copy of the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Advise the respondent of the time limits applicable to complaint processing and of the procedural rights and obligations of the respondent under these regulations; and</text> </paragraph> <paragraph num="(d)"> <text>Advise the respondent that retaliation against an individual because the individual made a complaint, testified, assisted, or participated in an investigation or conciliation under these regulations is a discriminatory practice that is prohibited by Article 49B, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Answer to Complaint.</text> <paragraph num="(1)"> <text>The respondent may file an answer not later than 30 days after receipt of the notice described in §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The respondent may assert any defense that might be available to a defendant in a court of law.</text> </paragraph> <paragraph num="(3)"> <text>The answer shall be signed and affirmed by the respondent.</text> </paragraph> <paragraph num="(4)"> <text>The affirmation shall state: “I declare under the penalty of perjury that the foregoing is true and correct.”</text> </paragraph> <paragraph num="(5)"> <text>An answer may be reasonably and fairly amended at any time with the consent of the Executive Director or designee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Withdrawal. A complaint filed by or on behalf of any aggrieved person may be withdrawn in writing at any time by the aggrieved person or person who filed the complaint.</text> </paragraph> <paragraph num="E."> <text>Administrative Closure—Notice and Reopening.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a complaint under those circumstances which, by way of example but not limitation, may include absence of information which establishes the whereabouts of the complainant, or the determination that statutory requisites have not been met.</text> </paragraph> <paragraph num="(2)"> <text>Notice of Administrative Closure.</text> <paragraph num="(a)"> <text>Written notice of the administrative closure shall be provided to the complainant's last known address, informing the complainant of the right to object to this closure within 15 days of the date on which this notice was mailed.</text> </paragraph> <paragraph num="(b)"> <text>If the complaint is withdrawn by the complainant, the 15-day notice provision to the complainant is not required.</text> </paragraph> <paragraph num="(c)"> <text>Written notice of the closure shall be sent to the respondent upon whom the complaint has been served.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Objection to Administrative Closure.</text> <paragraph num="(a)"> <text>If the complainant files a timely objection, the Executive Director or designee shall consider the closure in light of the reasons stated by the complainant, and shall make a determination.</text> </paragraph> <paragraph num="(b)"> <text>In the absence of a timely objection, the Executive Director or designee shall close the complaint and mark the case file as administratively closed.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Request to Reopen Complaint.</text> <paragraph num="(a)"> <text>A request to reopen a complaint administratively closed for lack of information establishing the whereabouts of the complainant that is received beyond the time for objecting specified in §D(2) of this regulation shall be considered only upon a showing of good cause made by the complainant.</text> </paragraph> <paragraph num="(b)"> <text>Factors to be considered in determining whether good cause exists include but are not limited to:</text> <paragraph num="(i)"> <text>The amount of time elapsed since the complainant last had contact with the Commission;</text> </paragraph> <paragraph num="(ii)"> <text>The circumstances surrounding the complainant's failure to inform the Commission of their whereabouts; and</text> </paragraph> <paragraph num="(iii)"> <text>Prejudice to the respondent.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Dismissal of Proceedings. As to cases which have not been filed with the Office of Administrative Hearings pursuant to Regulation .10B of this chapter, after notifying the complainant and respondent, the Executive Director or designee may dismiss without prejudice, at any stage of the proceedings, a case filed with the Commission, when the complainant has instituted an action in federal district court or State court alleging unlawful discrimination based on the same facts as those alleged in the complaint filed with the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Investigative Process."> <paragraph num="A."> <text>Investigation. Upon the authorization of a complaint, the Executive Director or designee shall assign, or cause to be assigned, the investigation of the complaint to a staff investigator.</text> </paragraph> <paragraph num="B."> <text>Systemic Processing.</text> <paragraph num="(1)"> <text>The Executive Director or designee may identify the complaint for systemic processing when the Executive Director or designee determines that:</text> <paragraph num="(a)"> <text>The alleged discriminatory practices contained in a complaint are pervasive or institutional in nature;</text> </paragraph> <paragraph num="(b)"> <text>The processing of the complaint will involve complex issues, novel questions of law or fact; or</text> </paragraph> <paragraph num="(c)"> <text>A large number of persons will be affected.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The determination in §B(1) of this regulation may be based on the facts of the complaint or on information gathered in connection with an investigation.</text> </paragraph> <paragraph num="(3)"> <text>Systemic investigations may focus not only on documenting facts involved in the alleged discriminatory practice that is the subject of the complaint, but also on review of other policies and procedures related to matters under investigation, to make sure they also comply with the nondiscriminatory requirements of State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Conduct of Investigation.</text> <paragraph num="(1)"> <text>Fact-Finding Conference. The Executive Director or designee may require that the complainant and respondent appear at a fact-finding conference convened for the following purposes:</text> <paragraph num="(a)"> <text>Defining the issues contained in a complaint;</text> </paragraph> <paragraph num="(b)"> <text>Determining which elements are undisputed; and</text> </paragraph> <paragraph num="(c)"> <text>Resolving those issues which are susceptible of resolution and ascertaining whether or not there is a basis for a negotiated settlement of the complaint.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Request for Information.</text> <paragraph num="(a)"> <text>The Executive Director or designee shall require the respondent to promptly provide answers to requests for information, which will be used to assist in determining the merits of the allegations contained in the complaint.</text> </paragraph> <paragraph num="(b)"> <text>The request for information shall be accompanied by the following:</text> <paragraph num="(i)"> <text>A copy of the charge; and</text> </paragraph> <paragraph num="(ii)"> <text>The date on which the response shall be submitted.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Additional requests for information may be made to further the investigation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Interrogatories—Content and Response.</text> <paragraph num="(a)"> <text>The investigator may, upon authorization of the Executive Director or designee, serve interrogatories on a respondent by registered or certified mail or by personal service.</text> </paragraph> <paragraph num="(b)"> <text>These interrogatories shall be accompanied by the following:</text> <paragraph num="(i)"> <text>The date by which a response is required, which date shall be not less than 30 days after the date on which these interrogatories were delivered to the respondent; and</text> </paragraph> <paragraph num="(ii)"> <text>A statement describing the consequences to the respondent should the respondent fail to answer these interrogatories, as set forth in Regulation .06 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The interrogatories shall be answered within the time prescribed in the accompanying notice and shall be under oath.</text> </paragraph> <paragraph num="(d)"> <text>Time extensions may be granted for good cause shown and upon a written request submitted to the Commission's Executive Director or designee.</text> </paragraph> <paragraph num="(e)"> <text>Subsequent interrogatories, upon a determination that they are relevant or necessary to complete the administrative process, may be authorized and promulgated by the Commission's staff.</text> </paragraph> <paragraph num="(f)"> <text>Motion to Strike or Exceptions.</text> <paragraph num="(i)"> <text>The respondent may file a motion to strike or exceptions to the interrogatories within the time period set forth in §C(3)(b)(i) of this regulation.</text> </paragraph> <paragraph num="(ii)"> <text>The motion or exceptions shall state the reason or reasons therefore and shall be supported by a memorandum of points and authorities.</text> </paragraph> <paragraph num="(iii)"> <text>The Executive Director or designee will rule on the motion papers without oral argument.</text> </paragraph> <paragraph num="(iv)"> <text>If the motion or exceptions are granted, the interrogatories may be limited, modified, or stricken in accordance with the order of the Executive Director or designee.</text> </paragraph> <paragraph num="(v)"> <text>If the motion or exceptions are denied, or if the order of the Executive Director or designee requires the respondent to answer any portion of the interrogatories, the respondent shall be given not more than 10 days from the date of receipt of the order to answer these interrogatories.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Investigatory Subpoena.</text> <paragraph num="(a)"> <text>If completion of an investigation requires the issuance of a subpoena, the investigator may, upon the written authorization of the Executive Director or designee, issue a subpoena to compel the attendance and testimony of witnesses, or a subpoena to compel the production of books, papers, records, and documents relevant or necessary to this investigation.</text> </paragraph> <paragraph num="(b)"> <text>Service of this subpoena shall be made in accordance with State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>The subpoena shall contain the following:</text> <paragraph num="(i)"> <text>The name of the person whose testimony is required, identification of the books, papers, records, and documents to be submitted, or all of these;</text> </paragraph> <paragraph num="(ii)"> <text>The time and date when and the place where the person subpoenaed is directed to appear and produce the information sought, which date may not be less than 15 days after the date on which the subpoena was served;</text> </paragraph> <paragraph num="(iii)"> <text>The signature of the Executive Director authorizing the issuance of this subpoena.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Upon failure by the person subpoenaed to appear, to produce these records, documents, papers, or books, or all of these, the Executive Director or designee may apply to the circuit court in the county having jurisdiction or to the Circuit Court for Baltimore City for an order requiring the attendance and testimony of the person subpoenaed, or the production of the requested records, documents, papers, books, or both.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Default Procedures."> <paragraph num="A."> <text>Interrogatories — Default Procedure.</text> <paragraph num="(1)"> <text>If, after a respondent has been served with duly authorized interrogatories together with a notice of the consequences of the failure to answer them, the respondent fails either to answer the interrogatories or to file a motion to strike or exceptions to the interrogatories within the time specified, the Executive Director or designee shall serve or cause to be served upon the respondent the following notice:</text> <paragraph num="(a)"> <text>An admission that the interrogatories, if answered, would have established facts consistent with the claim of the complainant; and</text> </paragraph> <paragraph num="(b)"> <text>A waiver of your right to have this Commission conduct further investigation, find whether there is probable cause, make conciliation efforts, or hold a hearing allowing the presentation of any and all defenses to the complaint which you might have otherwise raised."</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Upon failure by the respondent to file full and complete answers to these interrogatories in accordance with this notice, the Executive Director or designee may certify the file and forward it to the General Counsel.</text> </paragraph> <paragraph num="(3)"> <text>The General Counsel shall prepare for submission to the Office of Administrative Hearings the case file, together with a petition seeking a default order and an affidavit of the Executive Director or designee which shall include:</text> <paragraph num="(a)"> <text>A statement that the complainant has filed the allegations of discriminatory practices within the time prescribed in State Government Article, §20-1004(c), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>The date of service of the complaint and interrogatories on the respondent and the date of service of any notice requiring answer to interrogatories, or extending the time in which to answer them, or both;</text> </paragraph> <paragraph num="(c)"> <text>The date of service of the complaint and interrogatories as appears from the return of process;</text> </paragraph> <paragraph num="(d)"> <text>A statement that the respondent has failed to reply to the interrogatories within the time required; and</text> </paragraph> <paragraph num="(e)"> <text>A statement that the respondent has been given notice of the consequences of failure to respond to the interrogatories.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An administrative law judge shall determine whether the respondent is in default and shall issue the appropriate order and serve a copy of the order on all parties.</text> </paragraph> <paragraph num="(5)"> <text>If the administrative law judge determines that the respondent is in default, the administrative law judge may impose any or all of the sanctions set forth in §A(1) of this regulation as the administrative law judge finds appropriate.</text> </paragraph> <paragraph num="(6)"> <text>If the administrative law judge determines that the respondent is not in default, the administrative law judge shall deny the petition and return the case file to the Executive Director or designee for further investigative proceedings.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Petition to Vacate Default Order.</text> <paragraph num="(1)"> <text>Within 30 days after notice to the respondent of the entry of any default order, the respondent may petition the Commissioners sitting in their appellate capacity, as set forth in Regulation .12 of this chapter, to vacate the order and reopen the case for good cause shown.</text> </paragraph> <paragraph num="(2)"> <text>The respondent's assertion of good cause shall be in the form of an affidavit and shall include full and complete answers to the unanswered interrogatories.</text> </paragraph> <paragraph num="(3)"> <text>Oral argument is not permitted.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Issuance of Default Order. After the issuance of an order by the administrative law judge imposing sanctions:</text> <paragraph num="(1)"> <text>The case shall be logged in the Commission's official docket book for the purpose of hearing the complainant's evidence in support of the allegation of discrimination;</text> </paragraph> <paragraph num="(2)"> <text>A finding of probable cause shall be deemed made against the respondent;</text> </paragraph> <paragraph num="(3)"> <text>A failure of conciliation shall be presumed by respondent's default;</text> </paragraph> <paragraph num="(4)"> <text>The public hearing to be subsequently held on the merits of the complaint will be limited to whatever sanctions may be applied pursuant to §A(1) of this regulation; and</text> </paragraph> <paragraph num="(5)"> <text>The hearing may result in the issuance of a Commission order, pursuant to State Government Article, §20-1009(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Negotiated Settlement."> <paragraph num="A."> <text>Purpose. In the interest of promoting a prompt and just resolution of complaints brought, parties to a complaint are encouraged to enter into a settlement agreement.</text> </paragraph> <paragraph num="B."> <text>How Commenced.</text> <paragraph num="(1)"> <text>At any time before the issuance of written finding of facts, either party to a complaint may request that negotiations be entered.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of this request, the Executive Director or designee shall attempt to initiate these negotiations by arranging and presiding over a meeting between the parties.</text> </paragraph> <paragraph num="(3)"> <text>If both parties indicate a willingness to enter these negotiations, the Commission staff may require as a condition precedent to the convening of any meeting that the complainant, the respondent, or both, submit information which will facilitate an understanding of the case and promote its resolution.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Agreement. If negotiations result in a settlement of the complaint, the parties shall execute a written agreement setting forth the terms of the settlement, and the complainant shall authorize a withdrawal of the complaint.</text> </paragraph> <paragraph num="D."> <text>Order of the Commission. An agreement resulting from a settlement shall be executed on behalf of the Commission by the Executive Director or designee and shall constitute an order of the Commission as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Completion of Investigation."> <paragraph num="A."> <text>Written Findings.</text> <paragraph num="(1)"> <text>The results of the staff's investigation shall be set forth in a written report entitled “written findings” which shall chronicle the facts found to exist and the conclusions drawn.</text> </paragraph> <paragraph num="(2)"> <text>The findings shall be served on all parties to the complaint.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Probable Cause.</text> <paragraph num="(1)"> <text>The Commission shall determine whether, based on the totality of the factual circumstances known at the time of the decision, probable cause exists to believe that a discriminatory act has occurred.</text> </paragraph> <paragraph num="(2)"> <text>The probable cause determination shall be based solely on the facts concerning the alleged discriminatory act, provided by the complainant and respondent and otherwise, disclosed during the investigation.</text> </paragraph> <paragraph num="(3)"> <text>If the Commission determines that probable cause exists, the Commission shall immediately give notice to the complainant, the aggrieved person, and the respondent of this determination.</text> </paragraph> <paragraph num="(4)"> <text>If the Commission determines that no probable cause exists, the Commission shall immediately give notice to the complainant, the aggrieved person, and the respondent of this determination.</text> </paragraph> <paragraph num="(5)"> <text>A final written finding may be amended at any time, if additional information is discovered.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Reconsideration.</text> <paragraph num="(1)"> <text>If the findings conclude that there is no probable cause to believe that a discriminatory act has been or is being committed, the complainant shall be given the opportunity to apply to the Commission's Executive Director or designee for reconsideration of the Commission's written findings and recommendations.</text> </paragraph> <paragraph num="(2)"> <text>Reconsideration Process.</text> <paragraph num="(a)"> <text>The application and authority shall be in writing and shall state specifically the grounds upon which it is based.</text> </paragraph> <paragraph num="(b)"> <text>The application and authority shall be filed with the Executive Director or designee within 15 days from the date on which the findings were mailed to the complainant.</text> </paragraph> <paragraph num="(c)"> <text>Written notice that the complainant has requested reconsideration shall be given promptly to the respondent.</text> </paragraph> <paragraph num="(d)"> <text>Not later than 30 days after receipt of an application, the Executive Director or designee shall review the entire file, including the request for reconsideration, and may:</text> <paragraph num="(i)"> <text>Grant or deny the application for reconsideration; and</text> </paragraph> <paragraph num="(ii)"> <text>Issue an order the Executive Director or designee considers appropriate.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Not later than 30 days after making a determination, the Executive Director or designee shall notify the complainant and respondent in writing of the determination, and do one of the following:</text> <paragraph num="(i)"> <text>If the application for reconsideration is granted, remand the matter to the investigative staff for the appropriate action; or</text> </paragraph> <paragraph num="(ii)"> <text>If the application for reconsideration is not granted, administratively close the case.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The times set forth in §C of this regulation may be extended by the Executive Director or deputy director for good cause.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Conciliation Process."> <paragraph num="A."> <text>Conciliation.</text> <paragraph num="(1)"> <text>Upon a written finding of probable cause, the Commission, the complainant, and the respondent shall enter the conciliation process.</text> </paragraph> <paragraph num="(2)"> <text>Written notice of the opportunity to conciliate shall be provided to the parties.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Termination of Conciliation Efforts — Respondent's Actions.</text> <paragraph num="(1)"> <text>The Commission may terminate its efforts to conciliate if a respondent fails or refuses to confer with the Commission's staff, or fails or refuses to negotiate in good faith to resolve the dispute.</text> </paragraph> <paragraph num="(2)"> <text>If a written finding of probable cause has been issued, the Executive Director or designee may terminate the efforts to conciliate, notify the parties that conciliation has failed, and certify the case for public hearing as set forth in Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Termination of Conciliation Efforts—Complainant's Actions.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a case if the complainant:</text> <paragraph num="(a)"> <text>Fails to negotiate in good faith; or</text> </paragraph> <paragraph num="(b)"> <text>Rejects an offer of settlement or compromise made by the respondent, in a formal offer of settlements, which provides the complainant with the full relief which is available under the laws enforced by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Before administratively closing the case, the Executive Director or designee shall:</text> <paragraph num="(a)"> <text>Provide written notice to the complainant;</text> </paragraph> <paragraph num="(b)"> <text>Give the complainant 15 days after the mailing of the notice to object in writing and give reasons why the case should not be administratively closed;</text> </paragraph> <paragraph num="(c)"> <text>Consider the objections filed by the complainant;</text> </paragraph> <paragraph num="(d)"> <text>Administratively close the case if no objections are filed; and</text> </paragraph> <paragraph num="(e)"> <text>Promptly notify both the complainant and respondent of the determination.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Prohibitions and Requirements — Disclosure of Information Obtained During Conciliation.</text> <paragraph num="(1)"> <text>Except as provided in §C(2) of this regulation, nothing that is said or done in the course of conciliation under this regulation may be made public or used as evidence in a subsequent administrative hearing under State Government Article, Title 20, Annotated Code of Maryland, without written consent of the persons concerned or as otherwise permitted by law.</text> </paragraph> <paragraph num="(2)"> <text>Conciliation agreements shall be made public, unless the aggrieved person and respondent request nondisclosure and the Commission determines that disclosure is not required to further the purposes of State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Notwithstanding a determination that disclosure of a conciliation agreement is not required, the Commission may publish tabulated descriptions of the results of all conciliation efforts.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Review of Compliance with Conciliation Agreements.</text> <paragraph num="(1)"> <text>The Commission may, from time to time, review compliance with the terms of any conciliation agreement.</text> </paragraph> <paragraph num="(2)"> <text>Whenever the Commission has reasonable cause to believe that a respondent has breached a conciliation agreement, the Commission general counsel may file a civil action for the enforcement of the terms of the conciliation agreement.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Order of the Commission. An agreement resulting from conciliation shall be executed on behalf of the Commission by the Executive Director or designee and shall constitute an order of the Commission as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Public Hearings — Certification and Preliminary Proceedings."> <paragraph num="A."> <text>Certification of File.</text> <paragraph num="(1)"> <text>Upon failure of conciliation, the Executive Director or designee shall certify the case for public hearing. An entry identifying this case shall be logged in the Commission's official docket book, which shall be maintained by the Executive Director for cases pending public hearing.</text> </paragraph> <paragraph num="(2)"> <text>Upon certification of the file, the Executive Director or designee shall so notify the parties to an action and issue to complainant notice of opportunity for election of a civil action, pursuant to State Government Article, §20-1007, Annotated Code of Maryland, and Regulation .13 of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director or designee shall forward the certified case file to the Commission's general counsel for further processing.</text> </paragraph> <paragraph num="(4)"> <text>The general counsel, on review of a file so certified, may remand the case to the Executive Director or designee for:</text> <paragraph num="(a)"> <text>Further investigation and, in this case, shall state clearly the issues requiring further investigative proceedings; or</text> </paragraph> <paragraph num="(b)"> <text>Review of the findings and, in this case, shall state clearly the reason or reasons for the review.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Statement of Charges.</text> <paragraph num="(1)"> <text>The Commission shall file a statement of charges if:</text> <paragraph num="(a)"> <text>The complainant elects to pursue an administrative action; or</text> </paragraph> <paragraph num="(b)"> <text>The complainant or Commission fails to elect a civil action within the time specified under Regulation .13A of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission's general counsel shall prepare a written statement of charges in support of the complaint and forward it to the Office of Administrative Hearings together with a written request for a hearing date in accordance with COMAR 28.02.01.04.</text> </paragraph> <paragraph num="(3)"> <text>The statement of charges shall contain:</text> <paragraph num="(a)"> <text>An allegation that the person on whose behalf the complaint is issued is a proper complainant within the meaning of State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>An allegation that the respondent is a proper respondent within the meaning of, and subject to, provisions of State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>A factual allegation or allegations of an unlawful discriminatory practice or practices;</text> </paragraph> <paragraph num="(d)"> <text>A prayer for relief sought.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Consolidation of Complaints. The administrative law judge may consolidate or combine several cases for purposes of hearing or other proceedings, when the administrative law judge finds that sufficient common issues of fact, or law, or both, are involved.</text> </paragraph> <paragraph num="D."> <text>Prehearing Procedures.</text> <paragraph num="(1)"> <text>Prehearing Conference. A prehearing conference shall be conducted in accordance with COMAR 28.02.01.13.</text> </paragraph> <paragraph num="(2)"> <text>Notice of Prehearing Conference and Hearing.</text> <paragraph num="(a)"> <text>The administrative law judge shall set the matter in for a prehearing conference, or hearing, or both, on the earliest date practicable and shall, by registered or certified mail, forward to the complainant and to the respondent a statement of charges and a notice of prehearing conference or hearing, which shall include the following:</text> <paragraph num="(i)"> <text>The place, date, and hour of the prehearing conference or public hearing, or both;</text> </paragraph> <paragraph num="(ii)"> <text>A statement advising both the complainant and respondent of their respective rights to appear and be represented in this hearing in person, by their attorneys, or both, and that the case in support of the complaint shall be presented by the Commission's general counsel;</text> </paragraph> <paragraph num="(iii)"> <text>A statement advising the respondent of his or her right to file an answer to the statement of charges; and</text> </paragraph> <paragraph num="(iv)"> <text>The name of the administrative law judge who shall conduct this prehearing conference or hearing or a statement that an administrative law judge will be subsequently designated.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The administrative law judge shall forward a copy of the notice of prehearing conference, or public hearing, or both, to the general counsel of the Commission.</text> </paragraph> <paragraph num="(c)"> <text>The prehearing conference or public hearing, or both, may not be less than 20 or more than 60 days after the issuance and service of the statement of charges and notice of prehearing conference, or public hearing, or both.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Settlement Conference. When required, a settlement conference shall be conducted in accordance with COMAR 28.02.01.14.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Answer.</text> <paragraph num="(1)"> <text>Any answer made to the statement of charges shall be filed within 15 days after service of the statement of charges. Upon application in writing to the administrative law judge before the end of the 15 days, the administrative law judge may, for good cause shown, extend the time within which an answer may be filed.</text> </paragraph> <paragraph num="(2)"> <text>The answer shall be filed with the Office of Administrative Hearings and the original of the answer shall be signed under oath or affirmation of the respondent and shall contain:</text> <paragraph num="(a)"> <text>The name and address of the respondent;</text> </paragraph> <paragraph num="(b)"> <text>The name, address, and telephone number of the respondent's attorney, if any;</text> </paragraph> <paragraph num="(c)"> <text>A specific admission or denial or assertion that the respondent is without sufficient knowledge or information to form a belief with respect to each and every allegation of the complaint;</text> </paragraph> <paragraph num="(d)"> <text>A statement of any matter constituting a defense to any allegations in the statement of charges;</text> </paragraph> <paragraph num="(e)"> <text>A certification that service of this answer has been made upon all other parties.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any allegation in the statement of charges which is not denied or admitted in the answer shall be deemed admitted, unless the respondent shall state in the answer that it is without sufficient knowledge or information to form a belief with respect to this allegation.</text> </paragraph> <paragraph num="(4)"> <text>Any allegation of new matter contained in the answer shall be deemed denied without the necessity of a reply being filed, unless a reply is ordered by the administrative law judge conducting the hearing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Preliminary Matters—Motions.</text> <paragraph num="(1)"> <text>All preliminary matters shall be raised by motion filed at either the prehearing conference or not later than 45 days before the public hearing.</text> </paragraph> <paragraph num="(2)"> <text>The motion shall be in writing, stating briefly the relief applied for, with a memorandum stating the reasons and any law that may support the motion.</text> </paragraph> <paragraph num="(3)"> <text>The motion and two copies together with a certificate of mailing to all parties shall be filed with the administrative law judge.</text> </paragraph> <paragraph num="(4)"> <text>An answer to a preliminary motion shall be in writing and include:</text> <paragraph num="(a)"> <text>A memorandum stating the reasons and any law that may be in support of the answer; and</text> </paragraph> <paragraph num="(b)"> <text>Certification that a copy has been mailed to all parties.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The original and two copies of the answer shall be filed with the administrative law judge within 15 days of receipt of the original motion unless otherwise directed by the administrative law judge.</text> </paragraph> <paragraph num="(6)"> <text>The administrative law judge shall decide all motions without oral argument on the motions, unless the administrative law judge desires oral argument or testimony.</text> </paragraph> <paragraph num="(7)"> <text>If the administrative law judge desires oral arguments, the administrative law judge shall set the date, place, and time, and notify all parties.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Administrative Hearing Proceedings."> <paragraph num="A."> <text>General Information.</text> <paragraph num="(1)"> <text>Location of Hearing. An administrative law judge shall conduct the hearing at a place in Baltimore City or the county in which the discriminatory practice is alleged to have occurred.</text> </paragraph> <paragraph num="(2)"> <text>The administrative law judge shall conduct the hearing in accordance with COMAR 28.02.01.07, and State Government Article, §20-1008(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Time Computations.</text> <paragraph num="(a)"> <text>Time computations under this regulation shall be in accordance with Article 1, §36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>Except for time periods required by statute, the administrative law judge may enlarge or reduce any time period required under this regulation when necessary to avoid prejudicing the public interest or the rights of the parties.</text> </paragraph> <paragraph num="(c)"> <text>In computing any time period involved, the date of the issuance of an order or decision by an administrative law judge is the date the order or decision is served by the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(d)"> <text>Documents are not filed until received by the Office of Administrative Hearings.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Service and Filing.</text> <paragraph num="(a)"> <text>Service of documents under this regulation shall be in accordance with COMAR 28.02.01.24.</text> </paragraph> <paragraph num="(b)"> <text>Copies of all filed documents shall be served on all parties of record.</text> </paragraph> <paragraph num="(c)"> <text>All filed documents shall clearly designate the docket number, if any, title of the proceeding, and certificate of service.</text> </paragraph> <paragraph num="(d)"> <text>Parties shall file all documents with the Office of Administrative Hearings.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Administrative Law Judge.</text> <paragraph num="(1)"> <text>Authority. The powers and duties of an administrative law judge shall be in accordance with COMAR 28.02.01.08A and B.</text> </paragraph> <paragraph num="(2)"> <text>Disqualification. Any disqualification of an administrative law judge shall be in accordance with COMAR 28.02.01.08C.</text> </paragraph> <paragraph num="(3)"> <text>Ex Parte Communications. An ex parte communication shall be defined and prohibited in accordance with State Government Article, §10-219, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Parties. Parties to the proceedings include:</text> <paragraph num="(1)"> <text>The Commission that files the charge under Regulation .10 of this chapter seeking appropriate relief for an aggrieved party and the public interest;</text> </paragraph> <paragraph num="(2)"> <text>A complainant who is the person who files a complaint of discrimination issued under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>A respondent who is a person named in the complaint issued under Regulation .03 of this chapter against whom relief is sought;</text> </paragraph> <paragraph num="(4)"> <text>An aggrieved person who may file a request for intervention under COMAR 28.02.01.12; and</text> </paragraph> <paragraph num="(5)"> <text>Representation of the parties which shall be in accordance with COMAR 28.02.01.09.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Pleadings and Motions.</text> <paragraph num="(1)"> <text>Pleadings.</text> <paragraph num="(a)"> <text>Form. Every pleading, motion, brief, or other document shall contain a caption setting forth the title of the proceeding, the case number assigned by the Commission, and the designation of the type of document (for example, charge, answer, or motion to dismiss).</text> </paragraph> <paragraph num="(b)"> <text>Signature.</text> <paragraph num="(i)"> <text>Every pleading, motion, brief, or other document filed by a party shall be signed by the party, the party's representative, or the attorney representing the party, and shall include the signer's address and telephone number.</text> </paragraph> <paragraph num="(ii)"> <text>The signature constitutes a certification that the signer has read the document, that to the best of the signer's knowledge, information, and belief there is good ground to support the document, and that it is not interposed for delay.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Motions. All motions to an administrative law judge shall be in accordance with COMAR 28.02.01.16 except when otherwise provided in Regulation .10F of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Discovery. Discovery shall be conducted in accordance with COMAR 28.02.01.10.</text> </paragraph> <paragraph num="F."> <text>Subpoenas. Subpoenas shall be issued in accordance with State Government Article, §§20-1010 and 20-1023, Annotated Code of Maryland, and COMAR 28.02.01.11.</text> </paragraph> <paragraph num="G."> <text>Hearing Procedures.</text> <paragraph num="(1)"> <text>Place. The hearing shall be conducted in Baltimore City or the county where the discriminatory practice is alleged to have occurred.</text> </paragraph> <paragraph num="(2)"> <text>Notice of Hearing. The parties shall be notified of the hearing in accordance with Regulation .10D(2) of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>Conduct of Hearing. The hearing shall be conducted in accordance with COMAR 28.02.01.17.</text> </paragraph> <paragraph num="(4)"> <text>Evidence. Evidence shall be admitted in accordance with State Government Article, §10-213, Annotated Code of Maryland, and COMAR 28.02.01.18.</text> </paragraph> <paragraph num="(5)"> <text>Stipulations. The administrative law judge may accept stipulations in accordance with COMAR 28.02.01.15 upon the showing of mutual consent of the parties.</text> </paragraph> <paragraph num="(6)"> <text>Affidavits. The administrative law judge may accept affidavits in accordance with COMAR 28.02.01.15 upon showing:</text> <paragraph num="(a)"> <text>Mutual consent of the parties;</text> </paragraph> <paragraph num="(b)"> <text>That the affiant is unavailable to testify; and</text> </paragraph> <paragraph num="(c)"> <text>That the party seeking to introduce the affidavit has exercised reasonable diligence to locate the affiant.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Failure to Attend Hearing and Default. A party's failure to attend a hearing and the subsequent default process shall be in accordance with COMAR 28.02.01.20.</text> </paragraph> <paragraph num="(8)"> <text>Appointment of Interpreter. In situations when an interpreter is required, appointment shall be made in accordance with COMAR 28.02.01.19.</text> </paragraph> <paragraph num="(9)"> <text>Public Hearings. Proceedings under this regulation shall be open to the public in accordance with COMAR 28.02.01.21.</text> </paragraph> <paragraph num="(10)"> <text>Transcript of Hearing Record.</text> <paragraph num="(a)"> <text>The administrative law judge shall cause the testimony taken at the hearing to be transcribed.</text> </paragraph> <paragraph num="(b)"> <text>This transcript, together with all pleadings, exhibits, and other materials introduced into evidence shall constitute the record of the case as defined by State Government Article, §10-218, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Decision of Administrative Law Judge.</text> <paragraph num="(1)"> <text>In General.</text> <paragraph num="(a)"> <text>The administrative law judge shall issue a decision and order including findings of fact and conclusions of law upon each material issue of fact and law presented on the record.</text> </paragraph> <paragraph num="(b)"> <text>Decisions by the administrative law judge shall be in accordance with COMAR 28.02.01.22.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Finding Against Respondent.</text> <paragraph num="(a)"> <text>If the administrative law judge finds that a respondent has engaged in a discriminatory practice, the administrative law judge shall issue a decision against the respondent and order such relief as may be appropriate.</text> </paragraph> <paragraph num="(b)"> <text>This order shall set out the mechanism by which its provisions shall be monitored for compliance.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Finding in Favor of Respondent. If the administrative law judge finds that a respondent has not engaged in a discriminatory practice, the administrative law judge shall make an initial decision dismissing the charge.</text> </paragraph> <paragraph num="(4)"> <text>Service of Decision. The decision of an administrative law judge shall be delivered to all parties, the complainant, the respondent, and the Commission with a notice indicating the right of the Commission, the complainant, or the respondent to enter an appeal of this decision to an appeal board of the Commission within 30 days, in accordance with State Government Article, §20-207(f), Annotated Code of Maryland, and Regulation .12 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>Final Decision and Order. In the absence of a timely appeal, the decision of the administrative law judge shall become the final decision and order of the Commission, signed by the chairman, and from which no further administrative appeal may be taken.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Review by the Appeal Board of Decisions of the Administrative Law Judge."> <paragraph num="A."> <text>Notice of Appeal.</text> <paragraph num="(1)"> <text>An appeal may be taken by the Commission, the respondent, or the complainant.</text> </paragraph> <paragraph num="(2)"> <text>An appeal to the Appeal Board of the Commission shall be taken by filing with the administrative law judge a written notice of appeal within 30 days from the date of the delivery of the decision to the appealing party.</text> </paragraph> <paragraph num="(3)"> <text>This notice shall be sufficient if it is titled and captioned in the same manner as the case before the administrative law judge, and if it contains language indicating that the party desires a review of the decision of the administrative law judge.</text> </paragraph> <paragraph num="(4)"> <text>The appealing party shall serve a copy of the notice of appeal upon all other parties and shall certify in the notice of appeal that this service has been made.</text> </paragraph> <paragraph num="(5)"> <text>If a timely notice of appeal is filed by a party, any other party may file a written notice of appeal within 15 days of the date on which the first notice of appeal was filed or within the 30-day period set forth in §A(1) of this regulation, whichever is later.</text> </paragraph> <paragraph num="(6)"> <text>The administrative law judge shall promptly forward to the Chairman the transcript of the hearing together with all pleadings, exhibits, and other materials constituting the record of the case.</text> </paragraph> <paragraph num="(7)"> <text>If any question presented by an appeal can be determined by the Appeal Board without an examination of the entire record, the parties may prepare and sign a statement of the case showing how the question arose and was decided, setting forth only so much of the facts alleged and proved, or sought to be proved, as are essential to a decision of the question by the Appeal Board.</text> </paragraph> <paragraph num="(8)"> <text>A statement prepared under §A(7) of this regulation, when filed with the Appeal Board, shall be treated as superseding, for the purposes of the appeal, all parts of the record other than the decision from which the appeal is taken, and, together with this decision, shall be transmitted to the Appeal Board as the record on appeal.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Statement of Issues on Appeal.</text> <paragraph num="(1)"> <text>Within 30 days after the date on which notice of appeal is mailed, the person appealing shall set forth in writing a concise statement of issues upon which this appeal is taken together with a memorandum of law in support of it.</text> </paragraph> <paragraph num="(2)"> <text>The original and five copies of the statement and memorandum shall be mailed to the chairperson and shall include a certificate that copies of the statement and memorandum have been mailed to the appellees.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Answer.</text> <paragraph num="(1)"> <text>Within 30 days from the date the statement of issues is mailed, the appellee or appellees shall file an answer to statement together with a memorandum of law.</text> </paragraph> <paragraph num="(2)"> <text>The original and five copies of the answer and memoranda shall be mailed to the chairperson and shall include a certificate that copies have been mailed to all appellants.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Selection of Appeal Board. The chairperson of the Commission shall promptly:</text> <paragraph num="(1)"> <text>Appoint an Appeal Board, which shall consist of three commissioners, to decide the appeal;</text> </paragraph> <paragraph num="(2)"> <text>Designate one member as chairperson; and</text> </paragraph> <paragraph num="(3)"> <text>Provide written notification to members of the board, the Commission, all respondents, and all complainants.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Hearing.</text> <paragraph num="(1)"> <text>The Appeal Board shall decide whether it wishes to hear oral argument.</text> </paragraph> <paragraph num="(2)"> <text>If the Board chooses not to hear oral argument, it shall promptly, in writing, notify the Commission, complainants, and respondents.</text> </paragraph> <paragraph num="(3)"> <text>If the Board chooses to hear oral argument, the chairman of the board shall notify the Commission, complainants, and respondents of the time, place, and date of the hearing of oral argument.</text> </paragraph> <paragraph num="(4)"> <text>Oral argument shall then be limited to 30 minutes for each party to the appeal, and confined to the record of the case heard by the administrative law judge.</text> </paragraph> <paragraph num="(5)"> <text>The Appeal Board, in its discretion, may permit the admission of additional evidence not produced at a public hearing, upon a request made and good cause shown by the party proposing the admission of the new evidence.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Decision and Order.</text> <paragraph num="(1)"> <text>The Appeal Board may affirm, reverse, or modify the administrative law judge's decision.</text> </paragraph> <paragraph num="(2)"> <text>In making its determination, the Board shall consider:</text> <paragraph num="(a)"> <text>The entire record; or</text> </paragraph> <paragraph num="(b)"> <text>Upon agreement of the parties as set forth in §A(6) of this regulation, the statement of the case, including the decision of the administrative law judge.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In all appeals filed with the Appeal Board after June 1, 1989, the Appeal Board shall render its decision within 180 days after an Appeal Board has been selected pursuant to §D of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>A decision and order remanding the case for further proceedings is not a final decision and order of the Appeal Board.</text> </paragraph> <paragraph num="(5)"> <text>A copy of the decision and order and, when applicable, a notice of the right to apply for judicial review of the order under the appropriate provisions of the Maryland Administrative Procedure Act shall be served on all parties to the case.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Failure to comply with the provisions set forth in this regulation may result in dismissal of the appeal.</text> </paragraph> <paragraph num="H."> <text>A ruling on a motion to dismiss the appeal for failure to follow the provisions set forth in this regulation shall be made by the chairperson of the Appeal Board, or by the chairperson of the Commission, or a commissioner designated by the chairperson, if an appeal board has not yet been appointed.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Election of a Civil Action."> <paragraph num="A."> <text>Right to Election of a Civil Action.</text> <paragraph num="(1)"> <text>A complainant or respondent may elect to have the Commission assert the claim in a civil action, pursuant to State Government Article, §20-1007, Annotated Code of Maryland, in lieu of an administrative action, pursuant to State Government Article, §20-1008, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The complainant or respondent shall make an election of civil action not later than 30 days after receipt of notice of opportunity for an election.</text> </paragraph> <paragraph num="(3)"> <text>The complainant or respondent shall give notice of an election of civil action to all parties to the action, including the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Commission-Initiated Civil Actions.</text> <paragraph num="(1)"> <text>Pursuant to State Government Article, §20-1007(b), Annotated Code of Maryland, the Commission may elect to file a complaint in a civil action on the Commission’s own behalf if:</text> <paragraph num="(a)"> <text>The Commission determines there is probable cause to believe the respondent has engaged in or is engaging in a discriminatory act;</text> </paragraph> <paragraph num="(b)"> <text>Conciliation efforts have failed; and</text> </paragraph> <paragraph num="(c)"> <text>The file has been certified for public hearing.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission shall make the election within 30 days after certifying the file for public hearing.</text> </paragraph> <paragraph num="(3)"> <text>The Commission shall provide notice of the election to all parties.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Commencement of Civil Action.</text> <paragraph num="(1)"> <text>If an election for a civil action is made, either by the complainant or the Commission, the Commission's General Counsel shall commence a civil action seeking relief on behalf of the aggrieved person in the appropriate circuit court.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall file the civil action not later than 60 days after the election is made.</text> </paragraph> <paragraph num="(3)"> <text>The Commission shall file the civil action in the circuit court of Baltimore City or the county where the alleged discriminatory act occurred.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Intervention.</text> <paragraph num="(1)"> <text>Upon timely application, a person may intervene, pursuant to State Government Article, §20-1014(a), Annotated Code of Maryland, in a civil action brought by the Commission under this regulation if the action involves:</text> <paragraph num="(a)"> <text>An alleged act of discrimination to which the person is a party; or</text> </paragraph> <paragraph num="(b)"> <text>A conciliation agreement to which the person is a party.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The court may grant any appropriate relief to an intervening party that is authorized to be granted to a plaintiff in a civil action filed under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Remedies. If the court determines that the respondent has engaged in a discriminatory practice, the court may provide remedies as specified in State Government Article, §20-1009(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="F."> <text>Attorney's Fees and Costs.</text> <paragraph num="(1)"> <text>In an action brought under this regulation, the court, in its discretion, may award the prevailing party reasonable attorney's fees, expert witness fees, and costs.</text> </paragraph> <paragraph num="(2)"> <text>For an intervenor, attorney's fees and costs shall be allowed in the discretion of the court as follows:</text> <paragraph num="(a)"> <text>An intervenor is liable for reasonable attorney's fees and costs only to the extent that an intervenor's participation in the proceeding was frivolous or vexatious, or was for the purpose of harassment; or</text> </paragraph> <paragraph num="(b)"> <text>To the extent that an intervenor is a prevailing party, the respondent is liable for reasonable attorney's fees.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Private Right of Action."> <paragraph num="A."> <text>Right to Private Right of Action. Pursuant to State Government Article, §20-1013, Annotated Code of Maryland, a complainant may file a private right of action against the respondent in the circuit court of Baltimore City or the county where the alleged discriminatory act occurred.</text> </paragraph> <paragraph num="B."> <text>A complainant may file a private right of action if:</text> <paragraph num="(1)"> <text>The complainant initially filed a timely administrative charge or complaint under federal, State, or local law alleging a discriminatory act by the respondent;</text> </paragraph> <paragraph num="(2)"> <text>At least 180 days have elapsed since the date of filing of the administrative complaint; and</text> </paragraph> <paragraph num="(3)"> <text>The civil action is filed not more than 2 years after the occurrence of the alleged discriminatory act.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Intent to File a Private Right of Action. In a complaint that is filed with the Commission, the complainant shall provide written notice of intent to file a private right of action to the Commission and all parties to the action.</text> </paragraph> <paragraph num="D."> <text>Dismissal of Proceedings Pursuant to Private Right of Action.</text> <paragraph num="(1)"> <text>Upon receipt of the complainant's written notice of intent to file a private right of action, the Commission shall cease further processing of the complaint provided that the prerequisites of §B of this regulation have been met.</text> </paragraph> <paragraph num="(2)"> <text>Within 90 days after providing written notice of intent to file a private right of action, the complainant shall provide the Commission with a copy of the bill of complaint indicating that a private right of action was filed.</text> </paragraph> <paragraph num="(3)"> <text>Upon receipt of the bill of complaint, the Executive Director shall issue written notice of dismissal of proceedings pursuant to Regulation .04F of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>The Commission shall administratively close the case pursuant to Regulation .04E of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Intervention.</text> <paragraph num="(1)"> <text>Upon timely application, the Commission may intervene, pursuant to State Government Article, §20-1014(b), Annotated Code of Maryland, in a private right of action filed under this regulation if the Commission certifies that the case is of general public importance.</text> </paragraph> <paragraph num="(2)"> <text>The court may grant any appropriate relief to an intervening party that is authorized to be granted to a plaintiff in a civil action filed under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Remedies. If the court determines that the respondent has engaged in a discriminatory practice, the court may provide remedies in accordance with State Government Article, §20-1013(d)—(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="G."> <text>Attorney's Fees and Costs. In an action brought under this regulation, the court, in its discretion, may award the prevailing party reasonable attorney's fees, expert witness fees, and costs.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Special Provisions for the Commission-Initiated Complaints."> <paragraph num="A."> <text>The Commission may make and file a complaint in its name in the same manner as if the complaint had been filed by an individual or individuals, when it has received reliable information that any person has been engaged or is engaged in an unlawful discriminatory practice in violation of State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Initiation of Commission Complaints.</text> <paragraph num="(1)"> <text>Upon receipt by the Commission of reliable information that a person is engaged, or has been engaged, in unlawful discriminatory practices warranting the initiation of a Commission complaint, the Executive Director or designee shall present the information in writing to the Commission chairperson for consideration.</text> </paragraph> <paragraph num="(2)"> <text>If, in the judgment of the chairperson, a preliminary investigation is warranted, the chairperson shall direct the Executive Director to undertake such an investigation.</text> </paragraph> <paragraph num="(3)"> <text>Upon completion of the investigation the Executive Director shall forward to the general counsel a written summary of the investigation together with instructions to prepare a formal Commission complaint.</text> </paragraph> <paragraph num="(4)"> <text>The general counsel shall forward this complaint to the Executive Director who shall present the complaint to the chairperson for authorization by three Commissioners which, upon this authorization, shall constitute a Commission complaint.</text> </paragraph> <paragraph num="(5)"> <text>If the Commission authorizes a complaint under this section, it shall be forwarded to the Executive Director for processing in accordance with these regulations as otherwise applicable to complaints filed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Investigatory Hearings by Commissioners."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>When a problem of racial discrimination arises, the Commission immediately may hold an investigatory hearing.</text> </paragraph> <paragraph num="(2)"> <text>The purpose of the investigatory hearing shall be to resolve the problem promptly by the gathering of all facts from all interested parties and making the recommendations as may be necessary.</text> </paragraph> <paragraph num="(3)"> <text>The place of the hearing shall be in the area where the problem exists.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Preliminary Investigations.</text> <paragraph num="(1)"> <text>Upon receipt of reliable information that a problem of racial discrimination may exist that is not covered by State Government Article, §§20-301—20-305, 20-401—20-402, 20-606—20-607, 20-703—20-706, and 20-901—20-902, Annotated Code of Maryland, the Commission may, upon a vote of the majority, appoint a committee to conduct an investigation on its own or refer the matter to the Commission staff for a prompt preliminary investigation.</text> </paragraph> <paragraph num="(2)"> <text>In conducting the investigation the Commission or staff, or both, shall:</text> <paragraph num="(a)"> <text>Contact all persons considered by the Commission to be an interested party outlining the nature of the reliable information and giving each party an opportunity to respond;</text> </paragraph> <paragraph num="(b)"> <text>Conduct interviews or hold conferences with any person or organization who may have relevant and credible information to determine whether further investigation is warranted by the Commission;</text> </paragraph> <paragraph num="(c)"> <text>Obtain any materials and documents relevant or necessary to clarify or resolve any potential issues;</text> </paragraph> <paragraph num="(d)"> <text>If possible or practical, attempt to resolve the problems and issues between all interested parties by conference, conciliation, and persuasion; and</text> </paragraph> <paragraph num="(e)"> <text>Prepare a written report of the results of the preliminary investigation which shall summarize the issues involved, present the positions of the interested parties, summarize pertinent potential witness testimony, summarize the contents of any documentary evidence obtained, and make a recommendation of further action, if any, to be taken by the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Hearings.</text> <paragraph num="(1)"> <text>After the preliminary investigation is completed and the written results are submitted to the Commission, the Commission, upon a majority vote, may conduct a public hearing to fully gather all facts.</text> </paragraph> <paragraph num="(2)"> <text>In the conduct of the hearing the Commission shall issue a public notice of the hearing which shall state:</text> <paragraph num="(a)"> <text>The time, date, and place of the hearing;</text> </paragraph> <paragraph num="(b)"> <text>The names of any designated interested parties;</text> </paragraph> <paragraph num="(c)"> <text>A general description of the issues to be considered at the hearing;</text> </paragraph> <paragraph num="(d)"> <text>That any party interested or member of the public may attend and present written or oral statements when the presiding officer is in attendance, concerning the announced issues; and</text> </paragraph> <paragraph num="(e)"> <text>That presentations may be limited as to time and that the number of spokespersons representing any groups or organization may be limited.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Conduct of Public Hearings.</text> <paragraph num="(1)"> <text>The chairperson of the Commission shall preside at the public hearings, which may be called to order without need for a quorum.</text> </paragraph> <paragraph num="(2)"> <text>If the chairperson is absent or has been disqualified, the vice-chairperson or another Commissioner shall preside.</text> </paragraph> <paragraph num="(3)"> <text>All testimony taken shall be under oath or affirmation.</text> </paragraph> <paragraph num="(4)"> <text>The chairperson or presiding officer, with the advice of a legal advisor, if needed, shall:</text> <paragraph num="(a)"> <text>Make all rulings as to evidence, testimony, and official notice;</text> </paragraph> <paragraph num="(b)"> <text>Set the order for the testimony of the witnesses, and set time limitations for the testimony; and</text> </paragraph> <paragraph num="(c)"> <text>Allow witnesses to make an opening statement, after which the chairperson and other Commissioners, including the Commission's general counsel, may question the witness.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>All evidence and testimony shall be relevant and pertain solely to the issues being considered in a particular proceeding.</text> </paragraph> <paragraph num="(6)"> <text>Redundant evidence or testimony may not be permitted at public hearings or in the records of proceedings.</text> </paragraph> <paragraph num="(7)"> <text>Nonexpert opinion testimony may be considered at a hearing and documentary opinion evidence may be entered in the record of a proceeding if the testimony or evidence is based on facts and matters admissible into evidence and the facts and matters are within the personal knowledge of the submitter of the document.</text> </paragraph> <paragraph num="(8)"> <text>Expert Testimony.</text> <paragraph num="(a)"> <text>Qualification as an expert shall be within the discretion of the chairperson.</text> </paragraph> <paragraph num="(b)"> <text>The expert qualification need not be based upon academic degrees or learning.</text> </paragraph> <paragraph num="(c)"> <text>Reasonably extensive practical experience with the subject may be sufficient for an expert qualification.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Reliable and probative documents previously filed with or compiled by the Commission or its staff or consultants that are relevant to issues being considered by the Commission may be incorporated by reference into the record of a proceeding by the Commission or, with leave of the chairperson, by a party to the proceeding.</text> </paragraph> <paragraph num="(10)"> <text>Transcript of Hearing Record.</text> <paragraph num="(a)"> <text>The chairperson shall cause the testimony taken at the hearing to be transcribed.</text> </paragraph> <paragraph num="(b)"> <text>This transcript, together with written testimony, exhibits, and other materials introduced into evidence, shall constitute the record of the proceedings.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Subpoenas.</text> <paragraph num="(1)"> <text>At any time during the conduct of a preliminary investigation or the investigatory hearing the Commission may issue subpoenas directing a designated person to do the following:</text> <paragraph num="(a)"> <text>Appear to testify at a hearing or private prehearing conference conducted by the Commission or its staff;</text> </paragraph> <paragraph num="(b)"> <text>Appear at a specified time and date at the Commission offices or any designated place within the State, and, under oath or otherwise, give testimony and answer questions of the Commission or its staff; or</text> </paragraph> <paragraph num="(c)"> <text>Produce documents, reports, or records of a particular activity for a specific period of time if the designated person has custody of or access to the documents, reports, or records (the records may be in any reasonable form and the production shall be made at a specified time, date, and place).</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A subpoena shall be in whatever form is prescribed by the Commission and shall include:</text> <paragraph num="(a)"> <text>The name, title, if any, and address of the person upon whom it is to be served and the address at which it is to be served;</text> </paragraph> <paragraph num="(b)"> <text>The names, titles, or positions of the witnesses who shall appear and the time, date, and place of their appearance; and</text> </paragraph> <paragraph num="(c)"> <text>A reasonable specification of the documents, reports, or records, or all of these, to be produced at the designated time and date and place.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Decision and Recommendation of the Commission.</text> <paragraph num="(1)"> <text>The decision and the recommendation of the Commission shall be based solely on the testimony, examination, and evidence presented at the public hearing.</text> </paragraph> <paragraph num="(2)"> <text>The deliberations of the Commission may be held in private executive session.</text> </paragraph> <paragraph num="(3)"> <text>The decision shall be made by a majority of the Commission members who have attended all sessions of the public hearing, or who have read the record of hearings.</text> </paragraph> <paragraph num="(4)"> <text>The decision or the recommendation shall be in writing and shall state the reasons and grounds for the Commission's decision.</text> </paragraph> <paragraph num="(5)"> <text>The recommendations shall be directed to the affected interested parties as well as to any other appropriate private or public body. The Commission may also make recommendations to the Governor for additional legislation or changes in existing legislation.</text> </paragraph> <paragraph num="(6)"> <text>The Commission shall then publish a notice that:</text> <paragraph num="(a)"> <text>Copies of the Commission's decision and recommendations may be obtained by written request to the Commission offices; and</text> </paragraph> <paragraph num="(b)"> <text>The record of the complete proceeding is open for public inspection at the Commission offices during regular business hours.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Declaratory Rulings."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>An interested person may submit to the Commission a petition for a declaratory ruling with respect to the manner in which the Commission would apply the provisions of State Government Article, Title 20, Annotated Code of Maryland, to a person on the facts set forth in the petition.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may, in its sound discretion, declare whether any policy, practice, or conduct constitutes or would constitute unlawful discrimination within the meaning of State Government Article, §§20-301—20-305, 20-401—20-402, 20-606—20-607, 20-609, 20-701, 20-703—20-706, 20-709, and 20-901—20-902, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>This section shall be invoked solely for the purpose of determining the rights of the parties in the event of a controversy or uncertainty as to applicable law. Any issue or matter which is the subject of a formal complaint or Commission investigation is outside the scope of this section.</text> </paragraph> <paragraph num="(4)"> <text>An opinion or declaration made by any officer or employee of the Commission may not bind the Commission except as provided in this section or by Regulation .07, .09, .10, .12, or .17 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Contents of Petition.</text> <paragraph num="(1)"> <text>A petition for declaratory ruling shall be in writing and under oath.</text> </paragraph> <paragraph num="(2)"> <text>The petition shall contain the following:</text> <paragraph num="(a)"> <text>The name and address of the petitioner;</text> </paragraph> <paragraph num="(b)"> <text>The names of all persons or groups of persons who may have an interest which would be directly affected by the declaratory ruling;</text> </paragraph> <paragraph num="(c)"> <text>A full disclosure of the petitioner's interest in the matter and how this interest would be affected by the declaratory ruling;</text> </paragraph> <paragraph num="(d)"> <text>The precise reasons why a declaratory ruling is necessary and appropriate in this case;</text> </paragraph> <paragraph num="(e)"> <text>A detailed statement of the facts giving rise to the controversy or uncertainty;</text> </paragraph> <paragraph num="(f)"> <text>The specific declaratory ruling sought; and</text> </paragraph> <paragraph num="(g)"> <text>Argument in support of the ruling, with citation of all relevant statutory provisions.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Filing of Petition; Notice.</text> <paragraph num="(1)"> <text>Petitions under this section shall be filed with the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(2)"> <text>The petitioner shall serve by registered or certified mail a copy of the petition upon the general counsel and all persons having an interest in the matter.</text> </paragraph> <paragraph num="(3)"> <text>A certification of service shall be filed with the petition.</text> </paragraph> <paragraph num="(4)"> <text>If the controversy or uncertainty is one affecting a class or subclass of persons, the administrative law judge may require that written notice of the petition be given to some or all members in the manner the administrative law judge considers appropriate.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Parties; Intervention.</text> <paragraph num="(1)"> <text>Parties. For purposes of this section, a party includes:</text> <paragraph num="(a)"> <text>A person or organization whose membership includes any persons who, as a result of the declaratory ruling, may gain or be deprived of a legal right, privilege, or benefit;</text> </paragraph> <paragraph num="(b)"> <text>One or more representatives of a class or subclass whose members may, as a result of the declaratory ruling, gain or be deprived of legal rights, privileges, or benefits; and</text> </paragraph> <paragraph num="(c)"> <text>The Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Joinder and Intervention of a Party.</text> <paragraph num="(a)"> <text>A person having a substantial interest in the controversy or uncertainty shall be permitted to join or intervene in the proceeding as a party.</text> </paragraph> <paragraph num="(b)"> <text>A representative may be joined or permitted to intervene as a party if:</text> <paragraph num="(i)"> <text>The class is so numerous that joinder of all members is impracticable;</text> </paragraph> <paragraph num="(ii)"> <text>There are questions of law or fact common to the class;</text> </paragraph> <paragraph num="(iii)"> <text>The claims or defenses of the representative party are typical of the claims or defenses of the class; or</text> </paragraph> <paragraph num="(iv)"> <text>The representative party will fairly and adequately protect the interests of the class.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>In proceedings under this section, the Commission shall be represented by the General Counsel.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Motion to Dismiss; Grounds.</text> <paragraph num="(1)"> <text>Within 30 days from the date the petition is served, any party may file a motion to dismiss the petition on the grounds that a declaratory ruling is inappropriate.</text> </paragraph> <paragraph num="(2)"> <text>Within 90 days from the date the petition is filed, the administrative law judge shall make a written determination that the matter is appropriate for resolution through declaratory ruling or dismiss the petition on the grounds that a declaratory ruling is inappropriate.</text> </paragraph> <paragraph num="(3)"> <text>Grounds for dismissal include, but are not limited to the following:</text> <paragraph num="(a)"> <text>Petitioner has failed to follow the rules of procedure or petition requirements set forth in this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Petition does not raise a substantial question of law or fact with respect to the provisions of State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Controversy or uncertainty is more appropriately resolved through the complaint resolution procedures of Title 20 of the State Government Article;</text> </paragraph> <paragraph num="(d)"> <text>Controversy or uncertainty is the subject of proceedings in another forum or can be resolved by resort to other statutory or administrative remedies; or</text> </paragraph> <paragraph num="(e)"> <text>Contemplated proceedings do not constitute an efficient utilization of agency resources.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Briefs on Merits of Petition; Oral Argument.</text> <paragraph num="(1)"> <text>If the case is determined by the administrative law judge to be appropriate for declaratory ruling, the petitioner shall file within 30 days a brief setting forth argument in support of the petition or, if the petitioner so desires, can notify the administrative law judge in writing that the petitioner is relying upon the arguments set forth in its original petition.</text> </paragraph> <paragraph num="(2)"> <text>Within 30 days from the date the petitioner's brief is filed, or from the date that written notification is given that petitioner is relying upon the argument set forth in its petition, any party may file a reply brief setting forth the party's argument in support of or in opposition to the declaratory ruling.</text> </paragraph> <paragraph num="(3)"> <text>The administrative law judge may permit oral argument on the questions of law or fact set forth in the petition and briefs.</text> </paragraph> <paragraph num="(4)"> <text>The petitioner and all parties shall have the right to be represented by counsel and to be present.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Decision; Effect of Ruling.</text> <paragraph num="(1)"> <text>The administrative law judge may grant the petition, deny the petition, or alternatively, dismiss the petition on the grounds that a declaratory ruling is inappropriate.</text> </paragraph> <paragraph num="(2)"> <text>A declaratory ruling, if issued, shall declare the rights of the parties or express the opinion of the administrative law judge on the question presented.</text> </paragraph> <paragraph num="(3)"> <text>The decision shall be in the form of a decision and shall state the conclusions of law.</text> </paragraph> <paragraph num="(4)"> <text>As to the petitioner, a declaratory ruling shall bind the Commission on the facts set forth in the petition.</text> </paragraph> <paragraph num="(5)"> <text>A declaratory ruling may be prospectively revoked, altered, or amended by the Commission at any time.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Appeal; Judicial Review.</text> <paragraph num="(1)"> <text>An appeal to the Appeal Board of the Commission shall be taken and decided in accordance with the procedures set forth in Regulation .12 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>In the absence of a timely appeal, the decision of the administrative law judge shall become the final order of the Commission.</text> </paragraph> <paragraph num="(3)"> <text>A declaratory ruling by the Commission is subject to review in circuit court.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Public Information Act Requests."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>This regulation sets out the procedures for filing requests with the Maryland Commission on Human Relations for the inspection and copying of records under the Public Information Act, State Government Article, §§10-611—10-630, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>It is the policy of the Commission to facilitate public access to the records of the Commission, when that access is allowed by law, by minimizing costs and time delays to persons requesting information.</text> </paragraph> <paragraph num="(3)"> <text>It is also the policy of the Commission to safeguard and preserve the confidentiality of investigations of complaints made under State Government Article, Title 20, Annotated Code of Maryland, by restricting access to records when access is prohibited or restricted by law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, State Government Article, §§10-611—10-628, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a person requesting disclosure of public records.</text> </paragraph> <paragraph num="(3)"> <text>“Commission” means the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(4)"> <text>Custodian or Official Custodian.</text> <paragraph num="(a)"> <text>“Custodian” or “official custodian” means the person who is responsible for the maintenance, care, and keeping of the public records of the Commission.</text> </paragraph> <paragraph num="(b)"> <text>Unless otherwise provided by law, the Executive Director or designee is the official custodian of the Commission's records.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Executive Director” means the Executive Director of the Maryland Commission on Human Relations, or designee.</text> </paragraph> <paragraph num="(6)"> <text>“Final disposition” means the:</text> <paragraph num="(a)"> <text>Commission has found no probable cause, or has otherwise terminated its investigation;</text> </paragraph> <paragraph num="(b)"> <text>Administrative law judge and, if applicable, the Commission's Appeal Board have rendered their decisions; or</text> </paragraph> <paragraph num="(c)"> <text>Time to note an appeal to the Commission's Appeal Board has passed.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Investigative case file” means any record, regardless of physical form, generated or received by Commission staff in the course of the investigation of a complaint alleging a violation of State Government Article, §§20-301—20-305, 20-401—20-402, 20-602, 20-606—20-607, 20-705—20-706, and 20-901—20-902, or Health-General Article, §19-355, Annotated Code of Maryland, or the Governor’s Code of Fair Employment Practices, Order 01.01.2007.16 (August 22, 2007), as amended, including the complaint itself and any documents indicating the identity of a complainant or respondent until the stage of public hearing.</text> </paragraph> <paragraph num="(8)"> <text>“Public hearings” means any public hearing before either the Office of Administrative Hearings or any federal or State court of law.</text> </paragraph> <paragraph num="(9)"> <text>Public Records.</text> <paragraph num="(a)"> <text>“Public records” means all papers, correspondence, forms, books, photographs, photostats, films, microfilms, sound recordings, video recordings, maps, drawings, or other written documents, regardless of physical form or characteristics.</text> </paragraph> <paragraph num="(b)"> <text>“Public records” includes all copies made or received by the Commission in connection with “investigative case files” as defined in §B(7) of this regulation, and as set forth in Regulation .19E of this chapter.</text> </paragraph> <paragraph num="(c)"> <text>“Public records” includes salaries of all employees of the Commission.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Working day” means a day other than Saturday, Sunday, or State holiday.</text> </paragraph> <paragraph num="(11)"> <text>“Written documents” means all books, papers, maps, photographs, cards, tapes, recordings, computerized records, and other documentary materials, regardless of physical form or characteristics.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Retention of Investigative Case Files. The custodian shall maintain, as a public record of the Commission, all documents made or received by the Commission contained in the investigative case files, for a period of 18 months from the date of final disposition of the respective discrimination charge.</text> </paragraph> <paragraph num="D."> <text>Records Temporarily Unavailable. If a requested public record is in the custody or under the control of the person to whom written application is made but is not immediately available for inspection or copying, the custodian shall, within 10 working days of the receipt of the request, so notify the applicant and set a date and hour within a reasonable time for inspection or copying.</text> </paragraph> <paragraph num="E."> <text>Records Destroyed or Lost. If a requested record has been destroyed or lost, the custodian to whom the application is made shall, within 10 working days of the request, notify the applicant of this fact and explain in the response the reasons why the record cannot be produced.</text> </paragraph> <paragraph num="F."> <text>Who May Request. Any person may request to inspect or copy public records of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Application and Processing of Public Information Act Requests."> <paragraph num="A."> <text>Applications.</text> <paragraph num="(1)"> <text>A person or governmental unit that wishes to inspect a public record shall submit a written application to the custodian.</text> </paragraph> <paragraph num="(2)"> <text>If the individual to whom the application is submitted is not the custodian of the record, within 10 working days after receiving the application, the individual shall give the applicant notice of that fact and, if known, shall provide the name of the custodian and the location or possible location of the public record.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Contents of Written Application. A written application shall contain the applicant's name and address, shall be signed by the applicant, and shall reasonably identify by brief description the record sought.</text> </paragraph> <paragraph num="C."> <text>Response to Written Application.</text> <paragraph num="(1)"> <text>Granting of Request. If the custodian decides to grant a written application for inspection, the custodian shall produce the record for inspection immediately or within a reasonable period that is needed to retrieve the public record, not to exceed 30 days from the date of the application.</text> </paragraph> <paragraph num="(2)"> <text>Denial of Request.</text> <paragraph num="(a)"> <text>If the custodian denies the application, the custodian immediately shall notify the applicant and within, 10 working days, give the applicant a written statement that states the reason for the denial, the legal authority for the denial, and notice of the remedies under State Government Article, §§10-622 and 10-623, Annotated Code of Maryland, for review of denial.</text> </paragraph> <paragraph num="(b)"> <text>The custodian shall permit inspection of any part of the record that is subject to inspection and reasonably severable from the material to which access is denied by the custodian.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Request Made to an Individual Who is Not the Custodian of the Request Record.</text> <paragraph num="(a)"> <text>If a requested public record is not in the custody or control of the person to whom written application is made, that person shall, within 10 working days of the receipt of the request, notify the applicant.</text> </paragraph> <paragraph num="(b)"> <text>If the person to whom the application is made knows the name of the custodian of the record or the location or possible location of the record sought, this information also shall be given to the applicant.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>With the consent of the applicant, any time limit imposed under this section may be extended for not more than 30 days.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notification of Persons Who May be Affected by Disclosure.</text> <paragraph num="(1)"> <text>Unless prohibited by law, the custodian may notify any person who could be adversely affected by disclosure that an application for inspection or copying of the record has been made.</text> </paragraph> <paragraph num="(2)"> <text>The custodian may consider the comments of that person before deciding whether to disclose the record of the applicant.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Precertification Production of Investigative Case Files.</text> <paragraph num="(1)"> <text>Pursuant to State Government Article, §20-1101, Annotated Code of Maryland, during the investigation of any complaint alleging a violation of State Government Article, §§20-301—20-305, 20-602, 20-606—20-607, 20-705—20-706, and 20-901—20-902, Annotated Code of Maryland, and until the matters reach the stage of public hearings, the Commission is required to hold confidential any information in relation to investigative case files.</text> </paragraph> <paragraph num="(2)"> <text>Release of Information.</text> <paragraph num="(a)"> <text>Any request for information relating to investigative files before the charge has reached the public hearing stage will be denied, except those made pursuant to provisions of State Government Article, §20-1101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>Any information may be released at any time if the release has been agreed to in writing by both complainant and respondent.</text> </paragraph> <paragraph num="(c)"> <text>The identity of the complainant may be disclosed to the respondent at any time.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Certified Investigative Case Files.</text> <paragraph num="(1)"> <text>The custodian may deny inspection of:</text> <paragraph num="(a)"> <text>Cases which have been certified for public hearings under Regulation .10A of this chapter, and any other requests for information, in accordance with State Government Article, §10-618, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>An investigative case file or other document if the custodian believes it would be against public interest, subject to the provisions of §E(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The custodian may deny inspection by a person in interest only to the extent it would:</text> <paragraph num="(a)"> <text>Interfere with a valid and proper law enforcement proceeding;</text> </paragraph> <paragraph num="(b)"> <text>Deprive another person of a right to a fair trial or an impartial adjudication;</text> </paragraph> <paragraph num="(c)"> <text>Constitute an unwarranted invasion of personal privacy;</text> </paragraph> <paragraph num="(d)"> <text>Disclose the identity of a confidential source;</text> </paragraph> <paragraph num="(e)"> <text>Disclose an investigative technique or procedure;</text> </paragraph> <paragraph num="(f)"> <text>Prejudice an investigation; or</text> </paragraph> <paragraph num="(g)"> <text>Endanger the life or physical safety of an individual.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Privileged Information. A person may not inspect or copy any information which is privileged by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Review of the Denial of Public Information Act Request."> <paragraph num="A."> <text>Request for Review.</text> <paragraph num="(1)"> <text>If a written application is denied by the custodian for a reason other than that the record is temporarily unavailable, the applicant may, within 30 days after receipt of the notice of the denial, request administrative review of the denial, as described in §A(2) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>An applicant shall request administrative review of denial of an application for information by filing a written request within 30 days of the denial with the Chairperson of the Commission on Human Relations.</text> </paragraph> <paragraph num="(3)"> <text>In the written request for review, the applicant shall state their name, shall sign the request, shall identify by brief description the record sought, and include a copy of the writing from the custodian denying the request.</text> </paragraph> <paragraph num="(4)"> <text>The Chairperson shall issue the final decision of the Commission within 60 days of the request for review, unless the applicant requests a hearing as described in §A(5) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Request for Administrative Hearing.</text> <paragraph num="(a)"> <text>If the applicant requests a hearing, the hearing shall be conducted by an administrative law judge designated by the chairperson.</text> </paragraph> <paragraph num="(b)"> <text>The hearing shall be governed by the Commission's rules of procedure in Regulation .11G of this chapter.</text> </paragraph> <paragraph num="(c)"> <text>After the hearing, the administrative law judge shall prepare a recommended decision for the Chairperson.</text> </paragraph> <paragraph num="(d)"> <text>The Chairperson shall issue the final decision of the Commission within 60 days of the date of the hearing.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Request for Judicial Enforcement. If the applicant chooses not to request an administrative review under §A(1) of this regulation, the applicant may file an action for judicial enforcement under State Government Article, §10-623, Annotated Code of Maryland, without exhausting that administrative remedy, as provided by State Government Article, §§10-622 and 10-623, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Disclosure Against Public Interest.</text> <paragraph num="(1)"> <text>If, in the opinion of the Executive Director, disclosure of any public record that is otherwise required to be disclosed under the Act would do substantial injury to the public interest, the Executive Director may temporarily deny the request in writing and apply within 10 working days of the denial to the appropriate court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of the application filed with the circuit court shall be served on the applicant in the same manner that is provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Fees.</text> <paragraph num="(1)"> <text>The custodian shall provide copies, printouts, or photographs only upon payment of the applicable fee by the applicant.</text> </paragraph> <paragraph num="(2)"> <text>The fees to be charged for any copies, printouts, or photographs shall be established by the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>If the custodian is unable to copy a record within the Commission, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Commission.</text> </paragraph> <paragraph num="(4)"> <text>In a situation pursuant to §C(3) of this regulation, the custodian shall either collect from the applicant a fee to cover the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="(5)"> <text>Before copying a record, the custodian shall estimate the cost of reproduction and either obtain the agreement of the applicant to pay the cost or demand prepayment of any estimated fee before reproducing the record.</text> </paragraph> <paragraph num="(6)"> <text>The official custodian may charge reasonable fees for an official's or employee's time expended searching for requested records or for any time expended preparing records for inspection and copying, except for the first 2 hours of official or employee time that is needed to respond to a request for information.</text> </paragraph> <paragraph num="(7)"> <text>Fee Waiver or Reduction.</text> <paragraph num="(a)"> <text>Upon request, the official custodian may waive or reduce any fee charged pursuant to this section if the custodian determines that the waiver or reduction is in the public interest.</text> </paragraph> <paragraph num="(b)"> <text>The custodian shall consider, among other relevant factors, the ability of the applicant to pay the cost or fee.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>If the applicant requests that copies be mailed or delivered to the applicant, the custodian may charge the applicant for the cost of postage or delivery to the applicant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Time of Inspection. An applicant may inspect any public record that the applicant is entitled to inspect during the normal working hours of the Commission.</text> </paragraph> <paragraph num="E."> <text>Place of Inspection. The place of inspection shall be the place where the document is located unless the custodian, after taking into account the applicant's expressed wish, determines that another place of inspection is more suitable and convenient.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Amendments to These Regulations."> <paragraph num="A."> <text>Process.</text> <paragraph num="(1)"> <text>Pursuant to State Government Article, §10-123, Annotated Code of Maryland (Administrative Procedure Act), an interested person may petition this agency requesting the promulgation, amendment, or repeal of any regulation.</text> </paragraph> <paragraph num="(2)"> <text>Within 60 days after receipt of the petition, the Commission will either deny the petition in writing, stating the reasons for the denial, or initiate the rule-making proceedings which would accomplish the promulgation, amendment, or repeal.</text> </paragraph> <paragraph num="(3)"> <text>The petition shall be addressed to the Executive Director, shall state clearly the intent and, when possible, the wording of the proposal, as well as a concise statement of the reason or reasons.</text> </paragraph> <paragraph num="(4)"> <text>The Executive Director or designee shall submit the petition, along with recommendations, to the Commissioners for their consideration.</text> </paragraph> <paragraph num="(5)"> <text>A written report of the Commission's action shall be sent to the petitioner within 60 days of its receipt by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If, in response to this petition, the Commission decides to promulgate, amend, or repeal a regulation, it shall follow the procedures set forth by Maryland law.</text> </paragraph> <paragraph num="C."> <text>The Commission reserves the right to edit the language or style to comport with the style of its regulations, to the extent that the editing does not interfere with the substance of any promulgation or amendment proposed through the petition process, as set out in §§A—C of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="State Waiver of Sovereign Immunity."> <paragraph num="A."> <text>If an award is made against the State under this title, the State shall pay the award as soon as practicable within 20 days after the award is final, provided that the State has sufficient money available at the time an award is made.</text> </paragraph> <paragraph num="B."> <text>Payment of an award made against the State under this title shall be made in accordance with State Government Article, §20-904, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§10-204, 10-304, 20-207(f), and 20-1006—20-1015, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Chapter adopted as an emergency provision effective December 6, 1977 (4:27 Md. R. 2096)</annotation> <annotation type="History" subtype="Administrative History">Chapter adopted effective April 21, 1978 (5:8 Md. R. 595)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 6, 1979 (6:7 Md. R. 579); October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E amended as an emergency provision effective July 30, 1991 (18:17 Md. R. 1913); emergency status expired July 1, 1992</annotation> <annotation type="History" subtype="Administrative History">Regulations .02E and .05B amended as an emergency provision effective January 27, 1981 (8:3 Md. R. 224); emergency status extended to September 4, 1981 (8:13 Md. R. 1136); adopted permanently effective September 14, 1981 (8:18 Md. R. 1480)</annotation> <annotation type="History" subtype="Administrative History">Regulations .02I adopted and .03A amended as an emergency provision effective November 18, 1987 (14:25 Md. R. 2657); emergency status extended at 15:13 Md. R. 1549 (Emergency provisions are temporary and not printed in COMAR)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C, D amended effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C amended effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective April 6, 1979 (6:7 Md. R. 579); October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07P adopted effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective April 6, 1979 (6:7 Md. R. 579); October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective September 14, 1981 (8:18 Md. R. 1480)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulations .10 and .11 repealed and new Regulations .10--.14 adopted effective October 30, 1989 (16:21 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10C amended effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 adopted effective April 6, 1979 (6:7 Md. R. 579)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective August 30, 1993 (20:17 Md. R. 1348)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective April 7, 2008 (35:7 Md. R. 750)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective April 4, 2011 (38:7 Md. R. 433)</annotation> </annotations> </chapter> <chapter num="02" heading="Anti-Discrimination Relating to Persons with Disabilities"> <regulation prefix="Regulation" num=".01" heading="Statement of General Purpose."> <text>These regulations were adopted to contribute to the implementation of nondiscriminatory policies in employment and public accommodations with respect to persons with disabilities as required by State Government Article, Title 20, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Commission” means the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(2)"> <text>“Covered entity” means a person or entity subject to the jurisdiction of the Commission under State Government Article, §§20-301—20-305, 20-601, 20-606—20-607, 20-609, 20-801, 20-901—20-904, or 20-1017, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Facility” means all or a portion of a building, structure, site, complex, equipment, bus, heavy or light rail, or other conveyance, road, walkway, passageway, parking lot, or other real or personal property, including the real property where the building, property, structure, or equipment is located.</text> </paragraph> <paragraph num="(4)"> <text>“ADAAG” means the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities developed by the United States Architectural and Transportation Barriers Compliance Board, and adopted by the United States Department of Justice in Appendix A to 28 CFR Part 36.</text> </paragraph> <paragraph num="(5)"> <text>“Disabled individual” means an individual with a disability as defined in §B(6) of this regulation.</text> </paragraph> <paragraph num="(6)"> <text>“Disability” means, with respect to an individual:</text> <paragraph num="(a)"> <text>Epilepsy, infection with the human immunodeficiency virus, paralysis, amputation, lack of physical coordination, blindness or visual impairment, deafness or hearing impairment, muteness or speech impediment, physical reliance on a seeing eye dog, wheelchair, or other remedial appliance or device, or mental retardation or other mental impairment or deficiency which necessitates remedial or special education and related services;</text> </paragraph> <paragraph num="(b)"> <text>A physical or mental impairment, other than those enumerated in §B(6)(a) of this regulation, that is caused by bodily injury, birth defect, or illness, which substantially limits one or more of an individual's major life activities;</text> </paragraph> <paragraph num="(c)"> <text>A record of a physical or mental impairment as set forth in §B(6)(a) or (b) of this regulation, including having a history of, or being misclassified as having, such an impairment;</text> </paragraph> <paragraph num="(d)"> <text>Being regarded as having a physical or mental impairment as set forth in §B(6)(a) or (b) of this regulation, including one that:</text> <paragraph num="(i)"> <text>Does not substantially limit major life activities, if the individual is treated by a covered entity as having such a limitation; or</text> </paragraph> <paragraph num="(ii)"> <text>Substantially limits major life activities as a result of the attitude of the covered entity or of others towards the impairment; or</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Being treated by a covered entity as having an impairment, even if there is no physical or mental impairment.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Major life activities” includes, but is not limited to, functions such as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, working, driving a vehicle, socializing, and engaging in procreation and recreation.</text> </paragraph> <paragraph num="(8)"> <text>“Place of public accommodation” has the meaning stated in State Government Article, §20-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Physical or mental impairment” means:</text> <paragraph num="(a)"> <text>A physiological disorder or condition, cosmetic disfigurement, or anatomical loss, affecting one or more of the following bodily systems:</text> <paragraph num="(i)"> <text>Neurological;</text> </paragraph> <paragraph num="(ii)"> <text>Musculoskeletal;</text> </paragraph> <paragraph num="(iii)"> <text>Special sense organs;</text> </paragraph> <paragraph num="(iv)"> <text>Respiratory, including speech organs;</text> </paragraph> <paragraph num="(v)"> <text>Cardiovascular;</text> </paragraph> <paragraph num="(vi)"> <text>Reproductive;</text> </paragraph> <paragraph num="(vii)"> <text>Digestive;</text> </paragraph> <paragraph num="(viii)"> <text>Genitourinary;</text> </paragraph> <paragraph num="(ix)"> <text>Hemic and lymphatic; or</text> </paragraph> <paragraph num="(x)"> <text>Skin and endocrine; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A mental or psychological disorder such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Qualified individual with a disability” means an individual with a disability who:</text> <paragraph num="(a)"> <text>With or without reasonable accommodation can perform the essential functions of the job in question; or</text> </paragraph> <paragraph num="(b)"> <text>Is otherwise qualified for the benefit, term, condition, or privilege of employment at issue.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Qualified historic building or facility” means a building or facility that is:</text> <paragraph num="(a)"> <text>Listed in or eligible for listing in the National Register of Historic Places under the National Historic Preservation Act of 1966, 16 U.S.C. §470a(a);</text> </paragraph> <paragraph num="(b)"> <text>Listed in or eligible for listing in the Maryland Register of Historic Properties under State Finance and Procurement Article, §5A-323, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>Designated as historic under a local law.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Remedial appliance or device” means wheelchairs, prosthetic limbs and devices, braces, crutches, hearing aids, corrective lenses, and such other appliances or devices, which ameliorate or compensate for the limitations imposed by a physical or mental impairment, and which are acquired by an individual for such purpose.</text> </paragraph> <paragraph num="(13)"> <text>“Service animal” means a guide dog, signal dog, or other animal, individually trained to do work or perform tasks for the benefit of an individual with a disability, including, but not limited to:</text> <paragraph num="(a)"> <text>Guiding an individual with impaired vision;</text> </paragraph> <paragraph num="(b)"> <text>Alerting an individual with impaired hearing to intruders or sounds;</text> </paragraph> <paragraph num="(c)"> <text>Alerting an individual with seizures to the onset of a seizure;</text> </paragraph> <paragraph num="(d)"> <text>Providing minimal protection or rescue work;</text> </paragraph> <paragraph num="(e)"> <text>Pulling a wheelchair; or</text> </paragraph> <paragraph num="(f)"> <text>Retrieving items.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Structural changes” means any physical alterations or removal of barriers to a facility that would cause the facility to be accessible to an individual with a disability.</text> </paragraph> <paragraph num="(15)"> <text>“Teleworking” means an arrangement whereby an employee performs some or all of the employee's job duties at a work station located in the employee's residence, or at a designated location other than the employer's usual and customary worksite.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Verification of a Disability."> <paragraph num="A."> <text>The Commission may require the complainant to sign a waiver for the Commission to obtain verification of the existence, nature, and extent of the complainant's disability from a physician or other health care provider, based on medically accepted clinical or laboratory diagnostic techniques.</text> </paragraph> <paragraph num="B."> <text>The determination of whether an individual has a physical or mental impairment, or is substantially limited in a major life activity, or both, shall be made on a case-by-case basis and without regard to the mitigating effects of any remedial appliance or device.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Employment."> <paragraph num="A."> <text>Unlawful Employment Practices Generally. It is an unlawful employment practice for a covered entity to discriminate on the basis of disability against a qualified individual with a disability with regard to:</text> <paragraph num="(1)"> <text>Recruitment, advertising, and job application procedures;</text> </paragraph> <paragraph num="(2)"> <text>Hiring, upgrading, promotion, tenure, demotion, transfer, layoff, termination, right of return from layoff, and rehiring;</text> </paragraph> <paragraph num="(3)"> <text>Rate of pay, other form of compensation, and change in compensation;</text> </paragraph> <paragraph num="(4)"> <text>Job assignment, job referral, job classification, organizational structure, position description, line of progression, and seniority list;</text> </paragraph> <paragraph num="(5)"> <text>Leave of absence, sick leave, family leave, or other leave;</text> </paragraph> <paragraph num="(6)"> <text>Fringe benefits available by reason of employment, whether administered by the covered entity, except for underwriting or rate-setting practices of an insurer, as that term is defined in Insurance Article, §1-101(v), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(7)"> <text>Union membership;</text> </paragraph> <paragraph num="(8)"> <text>Selection and financial support for training, including apprenticeship, professional meetings, conferences, and other related activities, and selection for leave of absence to pursue training;</text> </paragraph> <paragraph num="(9)"> <text>Employer-sponsored activities, including social or recreational programs; and</text> </paragraph> <paragraph num="(10)"> <text>Any other term, condition, or privilege of employment.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unlawful Employment Practices Specifically. A covered entity may not:</text> <paragraph num="(1)"> <text>Limit, segregate, or classify a job applicant or employee in a way that adversely affects the individual's employment opportunities or status, on the basis of disability prohibited by this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Participate in a contractual or other arrangement or relationship that has the effect of subjecting an applicant or employee to the discrimination, on the basis of disability prohibited by this chapter; or</text> </paragraph> <paragraph num="(3)"> <text>Fail to make an individualized assessment of a qualified individual with a disability's ability to perform the essential functions of a job, unless the qualification standard, employment test, or other selection criteria under which the individual was disqualified meet the requirements of a bona fide occupational qualification (BFOQ) reasonably necessary to the normal operation of the particular business or program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Reasonable Accommodation in Employment."> <paragraph num="A."> <text>A covered entity:</text> <paragraph num="(1)"> <text>Shall make a reasonable accommodation to the known physical or mental limitations of a qualified individual with a disability;</text> </paragraph> <paragraph num="(2)"> <text>Is not required to provide an accommodation, if it demonstrates that the accommodation would impose undue hardship on the operation of its business or program; and</text> </paragraph> <paragraph num="(3)"> <text>May not deny an employment opportunity to a qualified individual with a disability, if the basis for the denial is the need to accommodate the individual's physical or mental limitations, and this accommodation, if attempted, would be reasonable.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Examples of a reasonable accommodation include, but are not limited to:</text> <paragraph num="(1)"> <text>Making existing facilities used by employees readily accessible to, and usable by, individuals with disabilities;</text> </paragraph> <paragraph num="(2)"> <text>Providing or modifying equipment or devices;</text> </paragraph> <paragraph num="(3)"> <text>Job restructuring;</text> </paragraph> <paragraph num="(4)"> <text>Part-time or modified work schedules;</text> </paragraph> <paragraph num="(5)"> <text>Reassigning or transferring an employee to a vacant position, light duty job, different work location, or other alternative employment opportunity which is available under the employer's existing policies or practices;</text> </paragraph> <paragraph num="(6)"> <text>Teleworking;</text> </paragraph> <paragraph num="(7)"> <text>Permitting an employee to use paid or unpaid sick leave, disability leave, medical leave, or other leave which is available under the employer's existing policies or practices;</text> </paragraph> <paragraph num="(8)"> <text>Adjusting or modifying examinations, training materials, or policies;</text> </paragraph> <paragraph num="(9)"> <text>Waiving a no pet requirement to allow use of a service animal;</text> </paragraph> <paragraph num="(10)"> <text>Providing applicants or employees with a disability with an opportunity to demonstrate their pertinent knowledge, skills, and abilities by testing methods adapted to their special circumstances if employment tests are used;</text> </paragraph> <paragraph num="(11)"> <text>Making reasonable modifications in the covered entity's rules, policies, and practices if the modification may enable an applicant or employee with a disability to perform the essential functions of the job; and</text> </paragraph> <paragraph num="(12)"> <text>Reanalyzing, with full consideration to the needs of the applicant or employee with a disability, job specifications, qualifications, or criteria to determine if they may be waived or modified.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Undue Hardship in Employment."> <paragraph num="A."> <text>The covered entity has the burden of proving an inability to accommodate a qualified individual with a disability.</text> </paragraph> <paragraph num="B."> <text>In determining whether an accommodation would impose an undue hardship on the covered entity's business or program, the following factors shall be considered:</text> <paragraph num="(1)"> <text>The nature and cost of the accommodation needed;</text> </paragraph> <paragraph num="(2)"> <text>The financial resources of the covered entity, and any parent corporation if applicable;</text> </paragraph> <paragraph num="(3)"> <text>The size of the business with respect to the number and type of facilities;</text> </paragraph> <paragraph num="(4)"> <text>The type of business or program, including the composition and structure of the work force;</text> </paragraph> <paragraph num="(5)"> <text>The ability of the covered entity to conduct business or operate programs with the accommodation;</text> </paragraph> <paragraph num="(6)"> <text>The effect of the accommodation on other employees' performance; and</text> </paragraph> <paragraph num="(7)"> <text>Legitimate safety concerns.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Safety requirements shall be based on actual information or data, not speculation, conjecture, stereotypes, or generalizations about individuals with disabilities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Preemployment Inquiries."> <paragraph num="A."> <text>Except as provided in §C of this regulation, a covered entity may not conduct a preemployment inquiry or medical examination to ascertain the existence of or the severity of a disability.</text> </paragraph> <paragraph num="B."> <text>A covered entity may make a preemployment inquiry into an applicant's ability to perform job-related functions.</text> </paragraph> <paragraph num="C."> <text>This section does not prohibit a covered entity from conditioning an offer of employment on the results of a medical examination conducted before the employee's entrance on duty, if:</text> <paragraph num="(1)"> <text>All entering employees in the same job category are subjected to the examination regardless of disability; and</text> </paragraph> <paragraph num="(2)"> <text>The results of the examination are used only in accordance with the requirements of §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Information obtained in accordance with this section as to the condition or history of the employee or applicant shall be collected and maintained on separate forms in separate files that are accorded confidentiality as medical records, except that:</text> <paragraph num="(1)"> <text>Supervisors and managers may be informed regarding restrictions on the work or duties of an employee with a disability, and necessary accommodations;</text> </paragraph> <paragraph num="(2)"> <text>First aid and safety personnel may be informed, when appropriate, if the condition may require emergency treatment; and</text> </paragraph> <paragraph num="(3)"> <text>The staff of the Commission investigating compliance with State Government Article, §20-606, Annotated Code of Maryland, shall be provided medical information upon request.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Affirmative Defenses."> <paragraph num="A."> <text>Bona Fide Occupational Qualification.</text> <paragraph num="(1)"> <text>A covered entity may take discriminatory actions otherwise prohibited under this chapter if mental or physical ability is a bona fide occupational qualification (BFOQ), reasonably necessary to the normal operation of the business or program.</text> </paragraph> <paragraph num="(2)"> <text>A covered entity has the burden of establishing the existence of a BFOQ. In determining whether the BFOQ defense, narrowly construed, has been met, a covered entity shall show that the particular standard or regulation is reasonably necessary to the normal operation of that business, and that:</text> <paragraph num="(a)"> <text>All or substantially all individuals with the particular disability would be unable, even with reasonable accommodation, to perform the duties of the job in question; or</text> </paragraph> <paragraph num="(b)"> <text>It is impossible or highly impractical to determine, on an individual basis, whether an individual with the particular disability would be able to perform the duties of the job in question.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Future Hazard.</text> <paragraph num="(1)"> <text>A covered entity may take discriminatory actions otherwise prohibited by this chapter, if the applicant's or employee's disability would create a future hazard to health or safety.</text> </paragraph> <paragraph num="(2)"> <text>To establish a future hazard defense, a covered entity shall show that:</text> <paragraph num="(a)"> <text>It conducted an individualized assessment of the individual's ability to perform the essential functions of the job in question; and</text> </paragraph> <paragraph num="(b)"> <text>To a reasonable probability, the individual's disability, even with reasonable accommodation, would render the individual unable to perform the duties of the position in question without endangering the health or safety of the individual with a disability or others.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Public Accommodations Practices."> <paragraph num="A."> <text>Unlawful Practices in Public Accommodations Generally. An owner, operator, manager, or lessor of a place of public accommodation may not discriminate on the basis of disability against an individual in the full and equal enjoyment of goods, services, facilities, privileges, advantages, or accommodations.</text> </paragraph> <paragraph num="B."> <text>Unlawful Practices in Public Accommodations Specifically.</text> <paragraph num="(1)"> <text>Unlawful Denial of Participation. An owner, operator, manager, or lessor of a place of public accommodation may not deny an individual with a disability, directly or indirectly, or through contractual, licensing, or other arrangements, the opportunity to participate in, or benefit from, a good, service, facility, privilege, advantage, or accommodation of a place of public accommodation.</text> </paragraph> <paragraph num="(2)"> <text>Unequal Participation. An owner, operator, manager, or lessor of a place of public accommodation may not deny an individual with a disability, directly or indirectly, or through contractual, licensing, or other arrangements, the opportunity to participate in, or benefit from, a good, service, facility, privilege, advantage, or accommodation of a place of public accommodation that is equal to that afforded to an individual without a disability.</text> </paragraph> <paragraph num="(3)"> <text>Separate Benefit. A public accommodation may provide separate benefits for individuals with disabilities only if requiring that individuals with disabilities be provided the same benefits as provided to individuals without disabilities would in effect create a barrier to full accessibility for the individual with a disability.</text> </paragraph> <paragraph num="(4)"> <text>Examples of when a public accommodation is permitted to provide a separate benefit include, but are not limited to:</text> <paragraph num="(a)"> <text>An athletic club which may provide a separate basketball league for wheelchair users, because integrating wheelchair users with nondisabled persons in the same game would create a barrier to full accessibility for the wheelchair users; and</text> </paragraph> <paragraph num="(b)"> <text>A museum which may provide a separate benefit to blind visitors through a separate tour in which they touch objects because the general rule that prohibits touching would create a barrier to full accessibility for blind visitors.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The example in §B(4)(b) of this regulation may not be construed to deny blind visitors the right to go on the standard tour observing the general rules applicable to all visitors.</text> </paragraph> <paragraph num="(6)"> <text>Eligibility Criteria. An owner, operator, manager, or lessor of a place of public accommodation may not impose, or apply eligibility criteria, that screen out or tend to screen out an individual with a disability from fully and equally participating in a good, service, facility, privilege, advantage, or accommodation, unless this criteria can be shown to be necessary for the provision of the good, service, facility, privilege, advantage, or accommodation.</text> </paragraph> <paragraph num="(7)"> <text>Surcharge. An owner, operator, manager, or lessor of a place of public accommodation may not impose a surcharge on an individual with a disability to cover the costs of complying with State Government Article, §§20-301—20-305, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Reasonable Accommodation in Public Accommodations."> <paragraph num="A."> <text>An owner, operator, manager, or lessor of a place of public accommodation, shall make a reasonable accommodation for an individual with a disability.</text> </paragraph> <paragraph num="B."> <text>For the purposes of this section, reasonable accommodation means to make a building or facility suitable for access, use, and patronage by an individual with a disability without danger to the individual's health or safety, and without undue hardship or expense to the business, or other activity making such an accommodation.</text> </paragraph> <paragraph num="C."> <text>Examples of a reasonable accommodation include, but are not limited to:</text> <paragraph num="(1)"> <text>Providing at least one accessible route consisting of a continuous unobstructed path connecting all accessible elements and spaces of a building or facility which shall include compliance with:</text> <paragraph num="(a)"> <text>ADAAG §4.6, parking and passenger loading zones, or other reasonable number of accessible parking spaces and passenger loading zones for individuals with physical disabilities;</text> </paragraph> <paragraph num="(b)"> <text>ADAAG §4.7, curb ramps, or other curb ramps or sloped areas in sidewalks, paths, and entrances to buildings or facilities;</text> </paragraph> <paragraph num="(c)"> <text>ADAAG §4.14, entrances, and §4.3, accessible route, or other accessible primary public entrance on at least the ground floor of the building or facility which allows safe and unobstructed passage by an individual using a wheelchair, which may be a service entrance only if the service entrance is the sole entrance for everyone;</text> </paragraph> <paragraph num="(d)"> <text>ADAAG §4.13, doors, or other doorways at the entrance and leading to each accessible space of sufficient clear width, and maneuvering clearances to allow safe and unobstructed passage by an individual using a wheelchair;</text> </paragraph> <paragraph num="(e)"> <text>ADAAG §4.2, space allowance and reach ranges, §4.3, accessible route, §4.4, protruding objects, and §4.5, ground and floor surfaces, or other walks, halls, corridors, passageways, aisles, and other spaces of sufficient clear width and maneuvering clearances, level grading with firm, stable, slip-resistant surfaces, and sufficient head room, to allow safe and unobstructed passage by an individual using a wheelchair;</text> </paragraph> <paragraph num="(f)"> <text>Where necessary to provide safe access to floor spaces of higher or lower levels, ADAAG §4.8, ramps, or the installation of a ramp;</text> </paragraph> <paragraph num="(g)"> <text>Where necessary to provide access over changes in floor levels too great for a ramp, or to provide vertical access to upper or lower floors, ADAAG §4.10, elevators, §4.11, platform lifts, or both, or the installation of a wheelchair lift or elevator;</text> </paragraph> <paragraph num="(h)"> <text>ADAAG §4.3.10, egress, or §4.3.11, areas of rescue assistance, or other accessible means of egress for emergencies, with the doors of sufficient clear width and maneuvering clearances to allow safe and unobstructed passage by an individual using a wheelchair, or an accessible area of rescue assistance or approved alternative;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the building or facility has public toilet facilities, compliance with ADAAG §4.22, toilet rooms, §4.16, water closets, §4.17, toilet stalls, §4.18, urinals, and §4.19, lavatories, or otherwise providing a facility with at least one water closet, lavatory and toilet stall, with grab bars, on an accessible route, and with sufficient clear doorway and floor space to accommodate a person using a wheelchair;</text> </paragraph> <paragraph num="(3)"> <text>If the building or facility has a public bathroom, bathing facility, shower room, or any of these, compliance with ADAAG §4.23, bathrooms, bathing facilities, and shower rooms, or otherwise providing a facility with grab bars, on an accessible route, and with sufficient clear doorway and floor space to accommodate a person using a wheelchair;</text> </paragraph> <paragraph num="(4)"> <text>If the building or facility has a public drinking fountain or water cooler, compliance with ADAAG §4.15, drinking fountains and water coolers, or otherwise providing at least one on accessible route with sufficient clear knee, or floor space, or both, at a height which allows an individual in a wheelchair to approach and use the drinking fountain or water cooler;</text> </paragraph> <paragraph num="(5)"> <text>If the building or facility has fixed or built-in storage facilities such as cabinets, shelves, closets, or drawers in accessible spaces, compliance with ADAAG §4.25, storage, or providing at least one of each type on an accessible route with sufficient clear floor space, and at a height which allows an individual in a wheelchair to approach and use the storage facility;</text> </paragraph> <paragraph num="(6)"> <text>If the building or facility has fixed or built-in seating, tables or counters in accessible public or common use areas, compliance with ADAAG §4.32, fixed or built-in seating and tables, or otherwise providing a reasonable number of seats, tables or counters on an accessible route with sufficient clear floor space and knee clearances, and at a height which allows an individual in a wheelchair to approach and use them;</text> </paragraph> <paragraph num="(7)"> <text>If the building or facility is a place of assembly with fixed seating, compliance with ADAAG §4.33, assembly areas, or otherwise providing a reasonable number of wheelchair seating locations on an accessible route with sufficient clear floor space and level surface for an individual in a wheelchair to comfortably view the performing areas with lines of sight comparable to those for members of the general public;</text> </paragraph> <paragraph num="(8)"> <text>Compliance with ADAAG §4.27, controls and operating mechanisms, or otherwise providing controls and operating mechanisms such as light switches and dispenser controls on an accessible route with sufficient clear floor space, and at a height which allows an individual in a wheelchair to approach and use the control or mechanism with limited force from one hand;</text> </paragraph> <paragraph num="(9)"> <text>If the building or facility has an emergency warning system, compliance with ADAAG §4.28, alarms, or otherwise installing a system with both audible and visual alarms of sufficient intensity, and at locations from which they will be heard or seen by individuals with sensory impairments;</text> </paragraph> <paragraph num="(10)"> <text>Compliance with ADAAG §4.29, detectable warnings, or otherwise installing detectable warnings on pedestrian walking surfaces that cross or adjoin vehicular ways, which are not separated by curbs, railings, or other elements; and</text> </paragraph> <paragraph num="(11)"> <text>In addition to the above actions, taking other steps to remove architectural and communication barriers and to facilitate physical access to goods and services, including, but not limited to, the following:</text> <paragraph num="(a)"> <text>Repositioning shelves;</text> </paragraph> <paragraph num="(b)"> <text>Rearranging tables, chairs, vending machines, display racks, and other furniture;</text> </paragraph> <paragraph num="(c)"> <text>Repositioning telephones;</text> </paragraph> <paragraph num="(d)"> <text>Installing flashing alarm lights or visual alarms;</text> </paragraph> <paragraph num="(e)"> <text>Adding raised markings on elevator control buttons;</text> </paragraph> <paragraph num="(f)"> <text>Providing Brailled and raised character signage;</text> </paragraph> <paragraph num="(g)"> <text>Waiving a no-pet requirement to allow the use of a service animal;</text> </paragraph> <paragraph num="(h)"> <text>Maintaining in operable working condition those features of facilities and equipment that are required to be readily accessible to, and usable by an individual with a disability, except an owner, operator, manager, or lessor of a place of public accommodation may temporarily fail to have its facilities or equipment accessible due to short term maintenance or repair;</text> </paragraph> <paragraph num="(i)"> <text>Modifying policies, practices and procedures to afford goods, services, facilities, privileges, advantages, or accommodations to an individual with a disability; and</text> </paragraph> <paragraph num="(j)"> <text>Providing an individual with a disability integrated settings.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Undue Hardship or Expense in Public Accommodations."> <paragraph num="A."> <text>An owner, operator, manager, or lessor of a place of public accommodation is not required to make a reasonable accommodation, if it is demonstrated that the accommodation would impose undue hardship or expense to the operation of the business or program.</text> </paragraph> <paragraph num="B."> <text>The owner, operator, manager, or lessor of a place of public accommodation has the burden of proving an inability to accommodate an individual with a disability because of undue hardship or expense.</text> </paragraph> <paragraph num="C."> <text>In determining if an accommodation would impose undue hardship or expense, the following factors shall be considered:</text> <paragraph num="(1)"> <text>The nature and cost of the accommodation needed;</text> </paragraph> <paragraph num="(2)"> <text>The financial resources of the individual or entity that owns, operates, manages, or leases the place of public accommodation, and a parent corporation, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>The overall size of the place of public accommodation, and number and type of facilities;</text> </paragraph> <paragraph num="(4)"> <text>The type of business or program of the public accommodation; and</text> </paragraph> <paragraph num="(5)"> <text>Legitimate safety requirements that are necessary for safe operation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Safety requirements referred in §C(5) of this regulation shall be based on actual information or data, not speculation, conjecture, stereotypes, or generalizations about individuals with disabilities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Qualified Historic Buildings and Facilities."> <paragraph num="A."> <text>An owner, operator, manager, or lessor of a qualified historic building or facility that is a place of public accommodation shall comply with the reasonable accommodation requirements of Regulation .10 of this chapter.</text> </paragraph> <paragraph num="B."> <text>In determining whether a particular accommodation is reasonable, in addition to the factors set forth in Regulation .11 of this chapter, the impact of the accommodation on the historical significance of a qualified historic building or facility shall be considered. A public accommodation is not required to take any action that would threaten, or destroy the historical significance of the building or facility.</text> </paragraph> <paragraph num="C."> <text>In making this determination, the Commission staff shall:</text> <paragraph num="(1)"> <text>Identify the historically significant features, finishes, materials, spaces, and spatial relationships that characterize the property, as well as the secondary features, finishes, materials, spaces, and spatial relationships, including previously altered areas and later additions, that may be less important to historic character;</text> </paragraph> <paragraph num="(2)"> <text>Consult with the appropriate federal, State, or local government officials or agencies with oversight responsibilities, or all of these officials, including but not limited to, the State Historic Preservation Officer, the Maryland Historical Trust, the Maryland Advisory Council on Historic Preservation, the National Advisory Council on Historical Preservation, or all of these. Other interested persons shall be invited to participate in the consultation process, including State or local accessibility officials, individuals with disabilities, and organizations representing individuals with disabilities;</text> </paragraph> <paragraph num="(3)"> <text>Seek accessibility solutions that:</text> <paragraph num="(a)"> <text>Do not cause damage to, permanently alter, or require the removal of, historically significant features, finishes, materials, spaces, or spatial relationships;</text> </paragraph> <paragraph num="(b)"> <text>Are in scale with the historic property; and</text> </paragraph> <paragraph num="(c)"> <text>Are visually compatible with the historic property.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Examples of accessibility modifications to a qualified historic building or facility may include, but are not limited to:</text> <paragraph num="(1)"> <text>Regrading the entrance when the entrance steps and landscape are not highly significant;</text> </paragraph> <paragraph num="(2)"> <text>Incorporating an entrance ramp or interior ramps, carefully designed and appropriately located to minimize the loss of historical features and preserve the overall historic setting and character;</text> </paragraph> <paragraph num="(3)"> <text>Installing a vertical or inclined wheelchair lift or a portable wheelchair lift if appropriate to make an entrance accessible, or to overcome changes in elevation within the building or facility, preferably in unobtrusive locations;</text> </paragraph> <paragraph num="(4)"> <text>Retrofitting nonhistorically significant doors, adapting door hardware and altering door thresholds to increase the size of the door opening and upgrade door pressure;</text> </paragraph> <paragraph num="(5)"> <text>Upgrading historic elevators by modifying control panels and adjusting timing devices;</text> </paragraph> <paragraph num="(6)"> <text>Modifying interior stairs by adding hand railings and beveled or closed risers; and</text> </paragraph> <paragraph num="(7)"> <text>Constructing a new addition to the building or facility with an accessible entrance and access to public levels via a ramp, wheelchair lift or elevator, where such addition is carefully located and compatible with the size, scale, and proportions of the property's historic features and materials.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If it is determined that modifications necessary to provide physical access to all public areas of a qualified historic building or facility would threaten or destroy the historic significance of the property, the extent of physical access to the property may be limited as follows:</text> <paragraph num="(1)"> <text>At least one accessible route from a site access point to an accessible entrance, which may be a ramp with a slope greater than that normally required if appropriate safety measures, such as handrails and nonskid surfaces, are used;</text> </paragraph> <paragraph num="(2)"> <text>At least one accessible entrance which is used by the public, or if not feasible:</text> <paragraph num="(a)"> <text>Access at any unlocked entrance not used by the general public with directional signage at the primary entrance and a notification system; or</text> </paragraph> <paragraph num="(b)"> <text>If security is a problem, remote monitoring may be used;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the building or facility has public toilets, at least one accessible toilet facility along an accessible route; and</text> </paragraph> <paragraph num="(4)"> <text>Accessible routes from the entrance to all publicly used spaces on at least the level of the accessible entrance, and if practical, to all levels of a building or facility.</text> </paragraph> </paragraph> <paragraph num="F."> <text>With respect to historically significant public areas or spaces, in which physical access cannot be provided without threatening or destroying the historical significance of the building or facility, alternative methods of programmatic access shall be provided, for example:</text> <paragraph num="(1)"> <text>Using audio-visual materials and devices, interpretive panels, tactile models, Brailled exhibits, and other media to depict those portions of an historic building or facility that cannot otherwise be made accessible;</text> </paragraph> <paragraph num="(2)"> <text>Assigning persons to guide individuals with disabilities into or through portions of historic buildings or facilities that cannot otherwise be made accessible; and</text> </paragraph> <paragraph num="(3)"> <text>Adopting other innovative measures.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="More Stringent Laws."> <text>These regulations do not exempt compliance with State, federal or local laws requiring more stringent structural changes, modifications, or additions to buildings or vehicles.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Affirmative Action to Inform."> <text>A person engaged in a business which falls within the areas covered by State Government Article, Title 20, Annotated Code of Maryland, shall take affirmative action to inform individuals with disabilities, as well as the public in general, of nondiscriminatory policies with respect to individuals with disabilities.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§10-111, 10-111.1(b), 10-205, 2-506, and 20-207, Annotated Code of Maryland;62 Opinions of the Attorney General 36 (1977)</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 27, 1979 (6:15 Md. R. 1285)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 4, 1988 (15:7 Md. R. 852)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08, Anti-Discrimination Relating to the Handicapped, repealed and new Regulations .01—14, Anti-Discrimination Relating to Persons with Disabilities, adopted effective December 24, 2001 (28:25 Md. R. 2192)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07D amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> </annotations> </chapter> <chapter num="03" heading="Penalties"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>These regulations apply whenever an administrative law judge intends to impose a financial penalty.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Requirements."> <text>In determining the amount of financial penalty to be imposed, an administrative law judge shall consider the following:</text> <paragraph num="A."> <text>The seriousness of the violation;</text> </paragraph> <paragraph num="B."> <text>The good faith of the violator;</text> </paragraph> <paragraph num="C."> <text>The harmful effect of the violation on the public or the harmful effect of the violator's actions on the investigatory process of the Commission on Human Relations; and</text> </paragraph> <paragraph num="D."> <text>The assets of the violator.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§10-204, 20-710(d), 20-1016, 20-1028, 20-1032, 20-1034, and 20-1036, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 and .02 adopted as an emergency provision effective July 30, 1991 (18:17 Md. R. 1913); emergency status expired July 1, 1992 (Emergency provisions are temporary and not printed in COMAR)</annotation> <annotation type="History" subtype="Administrative History">Regulations. 01 and .02 adopted effective August 30, 1993 (20:17 Md. R. 1350)</annotation> </annotations> </chapter> <chapter num="04" heading="Fair Housing Regulations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>It is the policy of the State to provide for fair housing throughout Maryland, to all its citizens, regardless of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation, and to that end to prohibit discriminatory practices with respect to residential housing by a person or group of persons, in order that the peace, health, safety, prosperity, and general welfare of all inhabitants of the State may be protected and insured.</text> </paragraph> <paragraph num="B."> <text>These regulations provide the Commission's interpretation of the coverage of the Maryland Fair Housing Law regarding discrimination related to the sale or rental of dwellings, the provision of services in connection with the sale or rental of dwellings, and the availability of residential real estate related transactions.</text> </paragraph> <paragraph num="C."> <text>Nothing in this regulation relieves persons participating in a federal or federally assisted or State or State-assisted program or activity from other requirements applicable to buildings and dwellings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Exemptions."> <paragraph num="A."> <text>These regulations do not:</text> <paragraph num="(1)"> <text>Prohibit a religious organization, association, or society, or any nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society from limiting the sale, rental, or occupancy of dwellings that it owns or operates for other than a commercial purpose to individuals of the same religion, or from giving preference to these individuals, unless membership in the religion is restricted because of race, color, or national origin;</text> </paragraph> <paragraph num="(2)"> <text>Prohibit a private club, not in fact open to the public, which as an incident to the club's primary purposes provides lodgings that it owns or operates for other than a commercial purpose, from limiting the rental or occupancy of the dwellings to its members or from giving preference to its members;</text> </paragraph> <paragraph num="(3)"> <text>Limit the applicability of any reasonable local, State, or federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling;</text> </paragraph> <paragraph num="(4)"> <text>Prohibit conduct against an individual because the individual has been convicted by a court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in 21 U.S.C. §802(c), or a controlled dangerous substance as defined in Criminal Law Article, §5-101(f), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Nothing in these regulations regarding discrimination based on familial status applies to housing for older persons as defined in Regulation .03B of this chapter.</text> </paragraph> <paragraph num="C."> <text>Nothing in these regulations, other than the prohibitions against discriminatory advertising, applies to the sale or rental of a single family dwelling, if the dwelling is sold or rented without the use of the sales or rental facilities or services of any:</text> <paragraph num="(1)"> <text>Real estate broker, agent, or salesman;</text> </paragraph> <paragraph num="(2)"> <text>Agent of any real estate broker, agent, or salesman;</text> </paragraph> <paragraph num="(3)"> <text>Person in the business of selling or renting dwellings; or</text> </paragraph> <paragraph num="(4)"> <text>Agent of a person in the business of selling or renting dwellings.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Nothing in these regulations with respect to discrimination on the basis of sex, marital status, or sexual orientation applies to the rental of:</text> <paragraph num="(1)"> <text>Rooms in any dwelling, if the owner maintains the dwelling as the owner's principal residence; or</text> </paragraph> <paragraph num="(2)"> <text>Any apartment in a dwelling that contains not more than 5 rental units, if the owner maintains the dwelling as the owner's principal residence.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Threat to Health, Safety, or Property.</text> <paragraph num="(1)"> <text>Nothing in these regulations shall require that a dwelling be made available to an individual whose tenancy would:</text> <paragraph num="(a)"> <text>Constitute a direct threat to the health or safety of another individual; or</text> </paragraph> <paragraph num="(b)"> <text>Result in substantial physical damages to the property of others.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The determination that an individual poses a threat to health, safety, or property shall be made on a case-by-case basis, and consist of an individualized assessment of:</text> <paragraph num="(a)"> <text>The nature, duration, and severity of the risks of injury or harm;</text> </paragraph> <paragraph num="(b)"> <text>The probability that injury or harm will actually occur; and</text> </paragraph> <paragraph num="(c)"> <text>Whether the threat can be eliminated through the provision of a reasonable accommodation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following words have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Accessible” means the public or common use areas of a building can be approached, entered, and used by individuals with physical disabilities and comply with the appropriate requirements of the American National Standard, “Specifications for Making Buildings and Facilities Accessible to and Usable by Physically Disabled People” (ANSI A117.1-1980), as incorporated by reference in COMAR 05.02.02.05B, or another standard that affords disabled persons access equivalent to or greater than that required by ANSI A117.1.</text> </paragraph> <paragraph num="(2)"> <text>“Accessible route” means a continuous unobstructed path connecting accessible elements and spaces in a building or within a site that can be negotiated by an individual with a disability using a wheelchair, in addition to being safe for and usable by people with other disabilities.</text> </paragraph> <paragraph num="(3)"> <text>“Agent” or “broker” means a person authorized to perform an action on behalf of another person or acting with apparent authority regarding any matter related to the sale or rental of dwellings.</text> </paragraph> <paragraph num="(4)"> <text>“Aggrieved person” has the meaning stated in State Government Article, §20-1020(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“ANSI A117.1-1980” means the American National Standard, “Specifications for Making Buildings and Facilities Accessible to and Usable by Physically Handicapped People”, as incorporated by reference in COMAR 05.02.02.05B.</text> </paragraph> <paragraph num="(6)"> <text>“Commission” means the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(7)"> <text>“Complaint” has the meaning stated in COMAR 14.03.01.02A.</text> </paragraph> <paragraph num="(8)"> <text>“Complainant” has the meaning stated in State Government Article, §20-101(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Conciliation” has the meaning stated in State Government Article, §20-1020(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Conciliation agreement” has the meaning stated in State Government Article, §20-1020(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Charge” means a written statement prepared by the Commission's general counsel and issued under State Government Article, §20-1025(b)(2), Annotated Code of Maryland, which contains a factual allegation or allegations of an unlawful discriminatory housing practice or practices.</text> </paragraph> <paragraph num="(12)"> <text>“Covered multifamily dwelling” has the meaning stated in State Government Article, §20-706(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>Disability.</text> <paragraph num="(a)"> <text>“Disability” has the meaning stated in State Government Article, §20-701(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Disability” does not include current illegal use of, or addiction to, a controlled dangerous substance defined under Criminal Law Article, §5-101, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Discriminatory housing practice” has the meaning stated in State Government Article, §20-701(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“Dwelling” has the meaning stated in State Government Article, §20-701(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(16)"> <text>Dwelling Unit.</text> <paragraph num="(a)"> <text>“Dwelling unit” means a single unit of residence for one or more individuals.</text> </paragraph> <paragraph num="(b)"> <text>“Dwelling unit” includes:</text> <paragraph num="(i)"> <text>A single family home;</text> </paragraph> <paragraph num="(ii)"> <text>An apartment unit within an apartment building; and</text> </paragraph> <paragraph num="(iii)"> <text>Other types of dwellings in which sleeping accommodations are provided but toileting or cooking facilities are shared by occupants of more than one room, portion of the dwelling, or rooms within which people sleep, for example, dormitory rooms, sleeping accommodations in shelters intended for occupancy, and a residence for homeless persons.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Executive Director” has the meaning stated in COMAR 14.03.01.02B.</text> </paragraph> <paragraph num="(18)"> <text>“Familial status” has the meaning stated in State Government Article, §20-701(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(19)"> <text>“Family” has the meaning stated in State Government Article, §20-701(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(20)"> <text>“Housing for older persons” has the meaning stated in State Government Article, §20-704(c)(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(21)"> <text>“Human Relations Commission” has the meaning stated in COMAR 14.03.01.02C.</text> </paragraph> <paragraph num="(22)"> <text>“In the business of selling or renting a dwelling” has the meaning stated in State Government Article, §20-701(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(23)"> <text>“Investigator” has the meaning stated in COMAR 14.03.01.02D.</text> </paragraph> <paragraph num="(24)"> <text>Landlord.</text> <paragraph num="(a)"> <text>“Landlord” means anyone other than the occupant of real property, who attempts to control or controls the use of the property under claim or right arising out of an ownership interest in the real property by that person or another person for whom that person acts.</text> </paragraph> <paragraph num="(b)"> <text>“Landlord” includes owners of rental property, trustees, receivers, persons controlling the common areas used in connection with condominiums, homeowners associations, and agents or others acting in the interest of any of these persons.</text> </paragraph> </paragraph> <paragraph num="(25)"> <text>“Marital status” has the meaning stated in State Government Article, §20-701(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(26)"> <text>“Notice” has the meaning stated in COMAR 14.03.01.02E.</text> </paragraph> <paragraph num="(27)"> <text>“Offices of the Commission” has the meaning stated in COMAR 14.03.01.02F.</text> </paragraph> <paragraph num="(28)"> <text>“Party” has the meaning stated in COMAR 14.03.01.02G.</text> </paragraph> <paragraph num="(29)"> <text>“Person” has the meaning stated in State Government Article, §1-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(30)"> <text>“Prevailing party” has the meaning stated in State Government Article, §20-1020(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(31)"> <text>“Proceeding” means a conference, meeting, hearing, investigation, inquiry, or other fact-finding or decision-making procedure, including the dismissal of a complaint.</text> </paragraph> <paragraph num="(32)"> <text>“Real property” includes dwellings, parking lots, interests in real estate corporeal or incorporeal, tenements, leaseholds, cooperatives, condominiums, and hereditaments.</text> </paragraph> <paragraph num="(33)"> <text>“Residential real estate related transaction” has the meaning stated in State Government Article, §20-707(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(34)"> <text>“Respondent” has the meaning stated in State Government Article, §20-101(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(35)"> <text>“Sexual orientation” means the identification of an individual as to male or female homosexuality, heterosexuality, or bisexuality.</text> </paragraph> <paragraph num="(36)"> <text>“Time” has the meaning stated in COMAR 14.03.01.02I.</text> </paragraph> <paragraph num="(37)"> <text>“To rent” has the meaning stated in State Government Article, §20-701(i), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Unlawful Practices Generally."> <paragraph num="A."> <text>Real Estate Practices Prohibited. In accordance with the Commission's interpretation of discriminatory housing practices, under State Government Article, §§20-705 and 20-707—20-708, Annotated Code of Maryland, it shall be unlawful for a person to:</text> <paragraph num="(1)"> <text>Refuse to sell or rent a dwelling after the making of a bona fide offer, refuse to negotiate for the sale or rental of a dwelling or otherwise make unavailable or deny a dwelling to a person because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(2)"> <text>Make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement with respect to the sale or rental of a dwelling that indicates a preference, limitation, or discrimination based on race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(3)"> <text>Represent to a person because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation that a dwelling is not available for sale or rental when the dwelling is in fact available;</text> </paragraph> <paragraph num="(4)"> <text>Induce or attempt to induce for a profit a person to sell or rent a dwelling by representations regarding the entry or prospective entry into a neighborhood of a person of a particular race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(5)"> <text>Discriminate against a person in making a real estate related transaction available or in the terms or conditions of a real estate related transaction because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(6)"> <text>Deny a person access to, or membership or participation in, a multi-listing service, real estate brokers' organization, or other service, organization, or facility relating to the business of selling or renting dwellings, or discriminate against a person in the terms or conditions of access, membership, participation in such an organization or service, or facility because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(7)"> <text>Intimidate or interfere with or attempt to intimidate or interfere with a person intentionally because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation whether acting under color of law, by force or threat of force:</text> <paragraph num="(a)"> <text>Because the person is or has been selling, purchasing, renting, financing, or occupying, contracting or negotiating for the sale, purchase, rental, financing, or occupation of a dwelling or for applying for or participating in a service, organization, or facility relating to the business of selling or renting dwellings, or</text> </paragraph> <paragraph num="(b)"> <text>Because a person has made a complaint, testified, assisted, or participated in any manner in a proceeding under State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Unlawful Refusal to Sell or Rent or to Negotiate.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person to refuse:</text> <paragraph num="(a)"> <text>To sell or rent a dwelling to a person who has made a bona fide offer because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(b)"> <text>To negotiate with a person for the sale or rental of a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Prohibited actions under this section include, but are not limited to:</text> <paragraph num="(a)"> <text>Imposing different sales prices or rental charges for the sale or rental of a dwelling upon a person because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(b)"> <text>Using different qualification criteria, applications, sale or rental standards or procedures such as income standards, application requirements, application fees, credit analysis, approval procedures, or other requirements, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(c)"> <text>Evicting tenants because of their race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Discrimination in Terms, Conditions, and Privileges and in Services and Facilities.</text> <paragraph num="(1)"> <text>It shall be unlawful, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation to:</text> <paragraph num="(a)"> <text>Impose different terms, conditions, or privileges relating to the sale or rental of a dwelling; or</text> </paragraph> <paragraph num="(b)"> <text>Deny or limit services or facilities in connection with the sale or rental of a dwelling.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Prohibited actions under this section include, but are not limited to:</text> <paragraph num="(a)"> <text>Using different provisions in leases or contracts of sale, such as those relating to rental charges, security deposits, and the terms of a lease, and those relating to down payment and closing requirements, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(b)"> <text>Failing or delaying maintenance or repairs of sale or rental dwellings because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(c)"> <text>Failing to process an offer for the sale or rental of a dwelling or to communicate an offer accurately because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(d)"> <text>Limiting the use of privileges, services, or facilities associated with a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation of an owner or tenant; or</text> </paragraph> <paragraph num="(e)"> <text>Denying or limiting services or facilities in connection with the sale or rental of a dwelling because an individual failed or refused to provide sexual favors.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Other Prohibited Sale and Rental Conduct. It shall be unlawful, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation to restrict or attempt to restrict the choice of a person by word or conduct in connection with seeking, negotiating for, buying, or renting a dwelling so as to:</text> <paragraph num="(1)"> <text>Perpetuate, or tend to perpetuate, segregated housing patterns; or</text> </paragraph> <paragraph num="(2)"> <text>Discourage or obstruct choices in a community, neighborhood, or development.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Prohibited Practices Under §D of This Regulation. Section D of this regulation generally refers to unlawful steering practices that include, but are not limited to:</text> <paragraph num="(1)"> <text>Discouraging a person from inspecting, purchasing, or renting a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(2)"> <text>Discouraging a person because of the race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation of individuals in a community, neighborhood, or development;</text> </paragraph> <paragraph num="(3)"> <text>Discouraging the purchase or rental of a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation by exaggerating drawbacks or failing to inform a person of desirable features of a dwelling, community, neighborhood, or development;</text> </paragraph> <paragraph num="(4)"> <text>Communicating to a prospective purchaser that the person would not be comfortable or compatible with existing residents of a community, neighborhood, or development because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(5)"> <text>Assigning a person to a particular section of a community, neighborhood, or development or to a particular floor of a building because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Unlawful Conduct Related to Provision of Housing, Services, or Facilities. Prohibited sales and rental practices under this section of the regulation include, but are not limited to:</text> <paragraph num="(1)"> <text>Discharging or taking other adverse action against an employee, broker, or agent because the individual refused to participate in a discriminatory housing practice;</text> </paragraph> <paragraph num="(2)"> <text>Employing codes or other devices to segregate or reject applicants, purchasers, or renters because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(3)"> <text>Refusing to take or to show listings of dwellings in certain areas because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(4)"> <text>Refusing to deal with certain brokers or agents because the brokers or agents or one or more of their clients are of a particular race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(5)"> <text>Denying or delaying the processing of an application made by a purchaser or renter or refusing to approve an individual for occupancy in a cooperative or condominium dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(6)"> <text>Refusing to provide municipal service, or property or hazard insurance for a dwelling, or providing it differently because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Unlawful Practices Specifically."> <paragraph num="A."> <text>Discriminatory Advertisements, Statements, and Notices.</text> <paragraph num="(1)"> <text>The prohibitions in this section shall apply to all written or oral notices or statements by a person engaged in the sale or rental of a dwelling.</text> </paragraph> <paragraph num="(2)"> <text>Written notices and statements include any applications, flyers, brochures, deeds, signs, banners, posters, billboards, or any other documents used with respect to the sale or rental of a dwelling.</text> </paragraph> <paragraph num="(3)"> <text>Discriminatory notices, statements, and advertisements include, but are not limited to:</text> <paragraph num="(a)"> <text>Using words, phrases, photographs, illustrations, symbols, or forms which convey that dwellings are available or not available to a particular group of individuals because of race, color, religion, sex, disability, familial status, marital status, national origin, and sexual orientation;</text> </paragraph> <paragraph num="(b)"> <text>Expressing to agents, brokers, employees, prospective sellers or renters, or other persons a preference for or limitation on any purchaser or renter because of race, color, religion, sex, disability, familial status, marital status, national origin, and sexual orientation;</text> </paragraph> <paragraph num="(c)"> <text>Selecting, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation, media or locations for advertising the sale or rental of dwellings which deny particular segments of the housing market information about housing opportunities; or</text> </paragraph> <paragraph num="(d)"> <text>Refusing to publish advertising for the sale or rental of dwellings or requiring different charges or terms for advertising because of race, color, religion, sex, disability, familial status, marital status, national origin, and sexual orientation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Discriminatory Representations on the Availability of Dwellings. Prohibited actions under this section of this regulation include, but are not limited to:</text> <paragraph num="(1)"> <text>Indicating through words or conduct that a dwelling which is available for inspection, sale, or rental has been sold or rented, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(2)"> <text>Representing that covenants or other deed, trust, or lease provisions which purport to restrict the sale or rental of dwellings because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation preclude the sale or rental of a dwelling to a person;</text> </paragraph> <paragraph num="(3)"> <text>Enforcing covenants or other deed, trust, or lease provisions which preclude the sale or rental to a person because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(4)"> <text>Limiting information, by word or conduct, regarding suitably priced dwellings available for inspection, sale, or rental because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(5)"> <text>Providing false or inaccurate information regarding the availability of a dwelling for sale or rental to an individual, including testers, regardless of whether the individual is actually seeking housing, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Blockbusting.</text> <paragraph num="(1)"> <text>In establishing a discriminatory housing practice under this section, it is not necessary that there was in fact profit as long as profit was a factor for engaging in the blockbusting activity.</text> </paragraph> <paragraph num="(2)"> <text>Prohibited actions under this section include, but are not limited to:</text> <paragraph num="(a)"> <text>Engaging, for profit, in conduct (including uninvited solicitations for listings) which conveys to a person that a neighborhood is undergoing or is about to undergo change in the race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation of persons residing in it, in order to encourage the person to offer a dwelling for sale or rental; or</text> </paragraph> <paragraph num="(b)"> <text>Encouraging, for profit, a person to sell or rent a dwelling through assertions that the entry or prospective entry of individuals of a particular race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation, can or will result in undesirable consequences for the project, neighborhood, or community, such as lowering of property values, an increase in criminal or antisocial behavior, or decline in the quality of schools or other services or facilities.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Discrimination in the Provision of Brokerage Services. Prohibited actions under this section include, but are not limited to:</text> <paragraph num="(1)"> <text>Setting different fees for access to or membership in a multiple listing service because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(2)"> <text>Denying or limiting benefits accruing to members in a real estate broker's organization because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(3)"> <text>Imposing different standards or criteria for membership in a real estate sales or rental organization because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(4)"> <text>Establishing geographic boundaries, office locations, or residence requirements for access to membership or participation in a multiple listing service, real estate broker's organization or other service, organization or facility relating to the business of selling or renting dwellings, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Discrimination in Real Estate Related Transactions."> <paragraph num="A."> <text>Discriminatory Practices in Residential Real Estate Related Transactions.</text> <paragraph num="(1)"> <text>This regulation provides the Commission's interpretation of the conduct that is unlawful housing discrimination under State Government Article, §20-707, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>It shall be unlawful for a person whose business includes engaging in residential real estate related transactions to discriminate against a person in making available a transaction, or terms or conditions of such a transaction, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Discrimination in the Making of Loan and Other Financial Assistance.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person whose business includes engaging in the making of residential real estate related transactions, loans, or other financial assistance to discriminate against a person in making available loans or other financial assistance for a dwelling, or which is or is to be secured by a dwelling, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> <paragraph num="(2)"> <text>Prohibited practices under this section include, but are not limited to:</text> <paragraph num="(a)"> <text>Failing or refusing to provide to a person, in connection with a residential real estate related transaction, information regarding the availability of loans or other financial assistance, application requirements, or procedures or standards for the review and approval of loans or financial assistance because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(b)"> <text>Providing information which is inaccurate or different from that provided others, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Discrimination in the Purchasing of Loans.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person engaged in the purchasing of loans, debts, or security which support the purchase, construction, improvement, repair, or maintenance of a dwelling, or which are secured by residential real estate to:</text> <paragraph num="(a)"> <text>Refuse to purchase a loan, debt, or security; or</text> </paragraph> <paragraph num="(b)"> <text>Impose different terms or condition for the purchase, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Unlawful conduct under this section includes, but is not limited to:</text> <paragraph num="(a)"> <text>Purchasing loans, other debts, or securities which relate to, or are secured by dwellings in certain communities or neighborhoods but not in others, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation of individuals in the neighborhoods or communities;</text> </paragraph> <paragraph num="(b)"> <text>Pooling or packaging loans, other debts, or securities which relate to, or which are secured by dwellings differently, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(c)"> <text>Imposing or using different terms or conditions on the marketing or sale of securities issued on the basis of loans or other debts, or securities which relate to or which are secured by dwellings, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Exclusions.</text> <paragraph num="(a)"> <text>This section does not prevent consideration, in the purchasing of loans, of factors justified by business necessity, including requirements of law, relating to a transaction's financial security, protection against default, or reduction in value of the security.</text> </paragraph> <paragraph num="(b)"> <text>This regulation does not preclude considerations employed in normal and prudent transactions, provided that factors do not in any way relate to race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Discrimination in the Terms and Conditions for Making Available Loans or Other Financial Assistance.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person engaged in the making of loans or in the provision of other financial assistance relating to the purchase, construction, improvement, repair, or maintenance of dwellings or which are secured by residential real estate to impose different terms or conditions for the availability of loans or other financial assistance because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> <paragraph num="(2)"> <text>Unlawful conduct under this section includes, but is not limited to:</text> <paragraph num="(a)"> <text>Using different policies, practices, or procedures in evaluating or in determining creditworthiness of a person in connection with the provision of a loan or other financial assistance which is secured by residential real estate because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation; or</text> </paragraph> <paragraph num="(b)"> <text>Determining the type of loan or other financial assistance to be provided with respect to a dwelling, fixing the amount, interest rate, duration, other terms for a loan or other financial assistance for a dwelling, or which is secured by residential real estate, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Unlawful Practices—Selling, Brokering, or Appraising of Residential Real Property.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person whose business includes engaging in the selling, brokering, or appraising of residential real property to discriminate against a person in making available the services, or in the performance of the services, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> <paragraph num="(2)"> <text>Appraisal.</text> <paragraph num="(a)"> <text>For the purpose of this section, the term “appraisal” means an estimate or opinion of the value of a specified residential real property made in a business context in connection with the sale, rental, financing, or refinancing of a dwelling or in connection with any activity that otherwise affects the availability of a residential real estate related transaction, whether the appraisal is oral or written, or transmitted formally or informally.</text> </paragraph> <paragraph num="(b)"> <text>The appraisal includes all written comments and other documents submitted as support for the estimate or opinion of value.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Nothing in this section prohibits a person engaged in the business of making or furnishing appraisals of residential real property from taking into consideration factors other than race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> <paragraph num="(4)"> <text>Practices which are unlawful in this section include, but are not limited to, using an appraisal of residential real property in connection with the sale, rental, or financing of any dwelling when the person knows or reasonably should know that the appraisal improperly takes into consideration race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Prohibition Against Discrimination Because of Disability."> <paragraph num="A."> <text>This regulation provides the Commission's interpretation of the conduct that is unlawful housing discrimination against an individual who has a disability under State Government Article, §20-706, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>General Prohibitions Against Discrimination Because of Disability.</text> <paragraph num="(1)"> <text>It shall be unlawful to discriminate in the sale or rental, or to otherwise make unavailable or deny a dwelling to a buyer or renter, because of a disability of:</text> <paragraph num="(a)"> <text>The buyer or renter; or</text> </paragraph> <paragraph num="(b)"> <text>An individual residing in or intending to reside in that dwelling after it is sold, rented, or made available.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>It shall be unlawful to discriminate against an individual in the terms, conditions, or privileges of the sale or rental of a dwelling, or in the provision of services or facilities in connection with the dwelling, because of a disability of:</text> <paragraph num="(a)"> <text>The buyer or renter; or</text> </paragraph> <paragraph num="(b)"> <text>An individual residing in or intending to reside in that dwelling after it is sold, rented, or made available.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>It shall be unlawful to make an inquiry to determine whether an applicant for a dwelling or an individual intending to reside in that dwelling after it is sold, rented, or made available has a disability or to make inquiry as to the nature or severity of a disability of that individual.</text> </paragraph> <paragraph num="(4)"> <text>This subsection does not prohibit the following inquiries, provided these inquiries are made of all applicants, with or without disabilities:</text> <paragraph num="(a)"> <text>Inquiry into an applicant's ability to meet the requirements of ownership or tenancy;</text> </paragraph> <paragraph num="(b)"> <text>Inquiry to determine whether an applicant is qualified for a dwelling available to individuals with disabilities or to an individual with a particular type of disability;</text> </paragraph> <paragraph num="(c)"> <text>Inquiry to determine whether an applicant for a dwelling is qualified for a priority available to individuals with disabilities or to individuals with a particular type of disability;</text> </paragraph> <paragraph num="(d)"> <text>Inquiring whether an applicant for a dwelling is a current illegal abuser or addict of a controlled dangerous substance; or</text> </paragraph> <paragraph num="(e)"> <text>Inquiring whether an applicant has been convicted of the illegal manufacture or distribution of a controlled dangerous substance.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Reasonable Accommodations.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person to refuse to make a reasonable accommodation in rules, policies, practices, or services when the accommodation may be necessary to afford a disabled individual an equal opportunity to use and enjoy a dwelling, including public and common use areas.</text> </paragraph> <paragraph num="(2)"> <text>A person is not required to provide a reasonable accommodation if providing the accommodation would impose an undue hardship.</text> </paragraph> <paragraph num="(3)"> <text>A person may not refuse to sell or rent a dwelling or otherwise make unavailable or deny a dwelling to an individual based upon the individual's need for a reasonable accommodation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Reasonable Modifications.</text> <paragraph num="(1)"> <text>It shall be unlawful for a person to refuse to permit, at the expense of a disabled individual, reasonable modifications of existing premises, occupied or to be occupied by a disabled individual, if the proposed modifications may be necessary to afford the disabled individual full enjoyment of the premises of a dwelling.</text> </paragraph> <paragraph num="(2)"> <text>In the case of a rental, the landlord may, when it is reasonable to do so, condition permission for a modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear expected.</text> </paragraph> <paragraph num="(3)"> <text>The landlord may reserve the right to approve the design, quality, and construction of the alterations or additions in order to minimize the damage to the building and enforce standards of quality and architectural responsibility.</text> </paragraph> <paragraph num="(4)"> <text>The landlord may not increase for disabled individuals any customarily required security deposit.</text> </paragraph> <paragraph num="(5)"> <text>Notwithstanding §D(4) of this regulation, when it is necessary in order to ensure with reasonable certainty that funds will be available to pay for restorations at the end of the tenancy, the landlord may:</text> <paragraph num="(a)"> <text>Negotiate as part of a restoration agreement, a provision requiring that the tenant pay into an interest-bearing escrow account, over a reasonable period, a reasonable amount of money not to exceed the cost of restorations; or</text> </paragraph> <paragraph num="(b)"> <text>Negotiate for the establishment of an escrow account, but the interest in the account shall accrue to the benefit of the tenant.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Examples of Appropriate Modifications. The following are examples of modifications used to make real property accessible by individuals with disabilities:</text> <paragraph num="(1)"> <text>Ramps for wheelchairs or walkers;</text> </paragraph> <paragraph num="(2)"> <text>Lights to indicate to a deaf person that the doorbell or telephone is ringing;</text> </paragraph> <paragraph num="(3)"> <text>Grab bars in bathrooms;</text> </paragraph> <paragraph num="(4)"> <text>Roll-out shelves in kitchens;</text> </paragraph> <paragraph num="(5)"> <text>Height-sensitive electrical outlets and switches; and</text> </paragraph> <paragraph num="(6)"> <text>Simplified locking systems for use by mentally disabled individuals.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Design and Construction Requirements.</text> <paragraph num="(1)"> <text>Covered multifamily dwellings for first occupancy after July 1, 1991, shall be designed and shall be constructed to have at least one building entrance on an accessible route unless it is impractical to do so because of terrain or unusual characteristics of the site.</text> </paragraph> <paragraph num="(2)"> <text>For purposes of this section, a covered multifamily dwelling shall be considered to be designed and to be constructed for first occupancy on or before July 1, 1991, or if they are occupied by that date.</text> </paragraph> <paragraph num="(3)"> <text>The burden of establishing impracticality because of terrain or unusual site characteristics is on the person or persons who designed and constructed the housing facility.</text> </paragraph> <paragraph num="(4)"> <text>All covered units of multifamily dwellings shall comply with the appropriate requirements of the American National Standard of Buildings and Facilities Providing Accessibility and Usability for Physically Handicapped People (commonly cited as ANSI A117.1) or the federal law, regulations, and guidelines on disabled accessibility adopted under the Fair Housing Act Amendments of 1988 and incorporated by reference in COMAR 05.02.02.</text> </paragraph> <paragraph num="(5)"> <text>This section does not invalidate or limit any law of a state or political subdivision of a state that requires dwellings to be designed and constructed in a manner that affords disabled individuals greater access than is required by this section.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Housing for Older Persons."> <paragraph num="A."> <text>Purpose. The purpose of this regulation is to effectuate the exemption in State Government Article, §20-704(c), Annotated Code of Maryland, that relates to housing for older persons.</text> </paragraph> <paragraph num="B."> <text>Exemption.</text> <paragraph num="(1)"> <text>The provisions regarding familial status in these regulations do not apply to housing which satisfies the requirements of §§C—E of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Nothing in this regulation limits the applicability of any reasonable local, State, or federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling.</text> </paragraph> </paragraph> <paragraph num="C."> <text>State and Federal Elderly Housing Programs. The provisions regarding familial status in these regulations do not apply to housing provided under any federal or State program that the Commission determines is specifically designed and operated to assist elderly individuals, as defined in the State and federal program.</text> </paragraph> <paragraph num="D."> <text>62 or Over Housing.</text> <paragraph num="(1)"> <text>The provisions regarding familial status in these regulations do not apply to housing intended for, and solely occupied by, an individual 62 years old or older.</text> </paragraph> <paragraph num="(2)"> <text>This housing satisfies the requirements of this regulation even though there are:</text> <paragraph num="(a)"> <text>Individuals residing in the housing on September 13, 1988, who are under 62 years old, provided that all new occupants are individuals 62 years old or older;</text> </paragraph> <paragraph num="(b)"> <text>Unoccupied units, provided that the units are reserved for occupancy by individuals 62 years old or older; or</text> </paragraph> <paragraph num="(c)"> <text>Units occupied by employees of the housing (and family members residing in the same unit) who are under 62 years old provided they perform substantial duties directly related to the management or maintenance of the housing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>55 or Over Housing. The provisions regarding familial status do not apply to housing intended and operated for occupancy by at least one individual 55 years old or older per unit, if the housing satisfies the following requirements:</text> <paragraph num="(1)"> <text>At least 80 percent of the units in the housing facility are occupied by at least one individual 55 years old or older per unit, except a newly constructed housing facility for first occupancy after July 1, 1991, need not comply with this subsection until 25 percent of the units in the facility are occupied; and</text> </paragraph> <paragraph num="(2)"> <text>The owner or manager of a housing facility publishes and adheres to policies and procedures which demonstrate an intent by the owner or manager to provide housing for persons 55 years old or older.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The following factors, among others, are relevant in determining whether the owner or manager of a housing facility has complied with the requirements of §E(2) of this regulation:</text> <paragraph num="(1)"> <text>The manner in which the housing facility is described to prospective residents;</text> </paragraph> <paragraph num="(2)"> <text>The nature of any advertising designed to attract prospective residents;</text> </paragraph> <paragraph num="(3)"> <text>Age verification procedures;</text> </paragraph> <paragraph num="(4)"> <text>Lease provisions;</text> </paragraph> <paragraph num="(5)"> <text>Written rules and regulations;</text> </paragraph> <paragraph num="(6)"> <text>Actual practices of the owner or manager in enforcing relevant lease provisions and relevant rules and regulations; and</text> </paragraph> <paragraph num="(7)"> <text>Whether the housing satisfies the requirements of the following:</text> <paragraph num="(a)"> <text>At least 80 percent of the units are occupied by at least one individual 55 years old or older,</text> </paragraph> <paragraph num="(b)"> <text>There are unoccupied units, provided that at least 80 percent of these units are reserved for occupancy by at least one individual 55 years old or older, or</text> </paragraph> <paragraph num="(c)"> <text>There are units occupied by employees of the housing (and family members residing in the same unit) who are under 55 years old provided they perform substantial duties directly related to the management or maintenance of the housing.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Prohibited Interference, Coercion, Intimidation, or Retaliation."> <paragraph num="A."> <text>It shall be unlawful housing discrimination to coerce, intimidate, threaten, or interfere with a person in the exercise or enjoyment of, or on account of that person having exercised or enjoyed, or on account of that person having aided or encouraged another person in the exercise or enjoyment of, a right granted or protected by State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Unlawful conduct under this regulation includes, but is not limited to:</text> <paragraph num="(1)"> <text>Coercing a person, either orally, in writing, or by other means, to deny or limit the benefits provided that person in connection with the sale or rental of a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(2)"> <text>Threatening, intimidating, or interfering with persons in their enjoyment of a dwelling because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation of these persons, or of visitors or associates of these persons;</text> </paragraph> <paragraph num="(3)"> <text>Threatening an employee or agent with dismissal or an adverse employment action, or taking an adverse employment action, for any effort to assist a person seeking access to the sale or rental of a dwelling or seeking access to any residential real estate related transaction, because of race, color, religion, sex, disability, familial status, marital status, national origin, or sexual orientation;</text> </paragraph> <paragraph num="(4)"> <text>Intimidating or threatening a person because that person is engaging in activities designed to make other persons aware of, or encouraging the other persons to exercise, rights granted or protected in these regulations; or</text> </paragraph> <paragraph num="(5)"> <text>Retaliating against a person because that person has made a complaint, testified, assisted, or participated in any manner in a proceeding under State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Fair Housing Complaint."> <paragraph num="A."> <text>Who May File.</text> <paragraph num="(1)"> <text>Any person who claims to have been aggrieved by an act or acts of unlawful housing discrimination prohibited by State Government Article, Title 20, Annotated Code of Maryland, may file a complaint with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The complaint may be filed with the assistance of an authorized representative of an aggrieved person, including any organization acting on behalf of an aggrieved person.</text> </paragraph> <paragraph num="(3)"> <text>Commission-Initiated Complaints. In accordance with Article State Government Article, §20-1004(d), Annotated Code of Maryland, the Commission may initiate a complaint in its own name if the Commission:</text> <paragraph num="(a)"> <text>Receives reliable information from an individual that a person has been engaged or is engaged in a discriminatory housing practice;</text> </paragraph> <paragraph num="(b)"> <text>Authorizes a preliminary investigation; and</text> </paragraph> <paragraph num="(c)"> <text>By action of not less than three Commissioners, determines that the information gathered during the preliminary investigation warrants the filing of a complaint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Persons Against Whom Complaints May Be Filed. A complaint may be filed against:</text> <paragraph num="(1)"> <text>A person alleged to be engaged or to have engaged in a discriminatory housing practice; or</text> </paragraph> <paragraph num="(2)"> <text>A person who directs or controls, or has the right to direct or control, the conduct of another person with respect to any aspect of the sale, rental, advertising, financing of dwellings, or the provisions of brokerage services relating to the sale or rental of dwellings if that other person, if acting within the scope of their authority as an employee or agent of the directing or controlling person, is engaged or has engaged in a discriminatory housing practice.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Manner of Filing.</text> <paragraph num="(1)"> <text>Complaints shall be filed at the offices of the Commission in person, by registered, certified, or regular mail, facsimile or other electronic media, or by delivery to any duly appointed representative of the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Complaints Initiated by Telephone.</text> <paragraph num="(a)"> <text>Complaints may be initiated by telephone to the Commission.</text> </paragraph> <paragraph num="(b)"> <text>If a complaint is initiated by telephone, the Commission shall:</text> <paragraph num="(i)"> <text>Reduce information provided by telephone to writing on the prescribed complaint form; and</text> </paragraph> <paragraph num="(ii)"> <text>Send the complaint form to the aggrieved person to be signed and affirmed as provided in §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A telephone-initiated complaint is considered filed only upon receipt of the form or a signed writing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>When Filed.</text> <paragraph num="(1)"> <text>Individual complaints shall be filed not later than 1 year after an alleged discriminatory housing practice has occurred or terminated, whichever is later.</text> </paragraph> <paragraph num="(2)"> <text>Discriminatory Housing Practices of a Continuing Nature.</text> <paragraph num="(a)"> <text>If the alleged discriminatory housing practice is of a continuing nature, the date of the occurrence of this discriminatory practice shall be considered to be the date up to and including that date on which the unlawful practice shall have ceased.</text> </paragraph> <paragraph num="(b)"> <text>The complaint will be timely if filed within 1 year of the last alleged occurrence of that practice.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An individual complaint filed with a federal or local human relations commission not later than the 1-year period required in this regulation shall be considered as being a timely filing in compliance with that requirement.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Form and Content of Complaint.</text> <paragraph num="(1)"> <text>Each complaint shall be in writing and shall be signed and affirmed by the aggrieved person filing the complaint.</text> </paragraph> <paragraph num="(2)"> <text>The affirmation shall state “I declare under the penalty of perjury that the foregoing is true and correct”.</text> </paragraph> <paragraph num="(3)"> <text>A complaint filed by the Commission shall be filed in accordance with COMAR 14.03.01.03.</text> </paragraph> <paragraph num="(4)"> <text>An individual complaint may be filed on a form provided by the Commission.</text> </paragraph> <paragraph num="(5)"> <text>Complaint forms will be made available to all persons at the office of the Commission in Baltimore, Maryland, or other offices within the State which may be established.</text> </paragraph> <paragraph num="(6)"> <text>Appropriate assistance in filling out forms will be rendered to complainants or to individuals filing on behalf of a complainant, by the personnel of the Commission.</text> </paragraph> <paragraph num="(7)"> <text>Complaints filed on forms provided by other local commissions, including federal civil rights agencies, shall be considered complaints filed with the Commission.</text> </paragraph> <paragraph num="(8)"> <text>Notwithstanding the requirement for using a prescribed form, the Commission may accept a written statement which substantially sets forth the allegations of a discriminatory housing practice under State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>Each complaint shall contain substantially the following information:</text> <paragraph num="(a)"> <text>The name and address of the aggrieved person;</text> </paragraph> <paragraph num="(b)"> <text>The name and address of the respondent;</text> </paragraph> <paragraph num="(c)"> <text>A description and the address of the dwelling which is involved, if appropriate; and</text> </paragraph> <paragraph num="(d)"> <text>A concise statement of facts including pertinent dates, constituting the alleged discriminatory housing practice.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Amendment of Complaint.</text> <paragraph num="(1)"> <text>A complaint may be reasonably and fairly amended at any time.</text> </paragraph> <paragraph num="(2)"> <text>The amendments may include but are not limited to:</text> <paragraph num="(a)"> <text>Amendments to cure technical defects or omissions, including failure to sign or affirm the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Amendments to clarify and amplify any allegation made in the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Amendments to join additional or substitute respondents; or</text> </paragraph> <paragraph num="(d)"> <text>Amendments to allege additional acts which constitute discriminatory housing practices under State Government Article, Title 20, Annotated Code of Maryland, which relate back to or grow out of the subject matter of the original complaint.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All amendments will relate back to the original filing date.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Complaint Processing."> <paragraph num="A."> <text>Review, Authorization, and Expedition.</text> <paragraph num="(1)"> <text>After the filing of a housing complaint, the Executive Director or designee shall:</text> <paragraph num="(a)"> <text>Review the complaint to determine whether it should issue for reasons of standing of the parties, timeliness of the filing, or other matters upon which its issuance may depend;</text> </paragraph> <paragraph num="(b)"> <text>If the complaint is rejected and not susceptible to amendment, serve notice on the complainant stating the reasons for rejection; and</text> </paragraph> <paragraph num="(c)"> <text>If the complaint is considered acceptable:</text> <paragraph num="(i)"> <text>Authorize an investigation by dating and signing the complaint; and</text> </paragraph> <paragraph num="(ii)"> <text>If the Executive Director or designee determines and states in writing that the complaint should be expedited based on a showing of good cause or because justice requires, expedite the complaint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a complaint is expedited under §A(1)(c)(ii) of this regulation, the Executive Director or designee may shorten time frames set forth in Regulation .12 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notification of Aggrieved Person.</text> <paragraph num="(1)"> <text>Upon the filing of a complaint, the Commission shall give notice to each aggrieved person on whose behalf the complaint was filed.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall:</text> <paragraph num="(a)"> <text>Acknowledge the filing of the complaint and state the date that the complaint was accepted for filing;</text> </paragraph> <paragraph num="(b)"> <text>Include a copy of the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Advise the aggrieved person of the time limits applicable to complaint processing and of the procedural rights and obligations of the aggrieved person under these regulations;</text> </paragraph> <paragraph num="(d)"> <text>Advise the aggrieved person of the right to commence a civil action under State Government Article, §20-1035, Annotated Code of Maryland, in an appropriate State court, not later than 2 years after the occurrence or termination of the alleged discriminatory housing practice, noting that:</text> <paragraph num="(i)"> <text>The computation of this 2-year period excludes any time during which an administrative proceeding is pending with respect to a complaint or charge based on the alleged discriminatory housing practice; and</text> </paragraph> <paragraph num="(ii)"> <text>The time period includes the time during which an action arising from a breach of conciliation agreement under Regulation .13 of this chapter, and State Government Article, §20-1024, Annotated Code of Maryland, is pending; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Advise the aggrieved person that retaliation against a person because the person made a complaint, testified, assisted, or participated in an investigation or conciliation under these regulations is a discriminatory housing practice that is prohibited by State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notification of Respondent; Joinder of Additional or Substitute Respondents.</text> <paragraph num="(1)"> <text>Within 10 days of the filing of a complaint or the filing of an amended complaint, including authorization, the Commission will serve a notice on each respondent by certified mail or personal service.</text> </paragraph> <paragraph num="(2)"> <text>A person who is not named as a respondent in the complaint, but who is identified in the course of the investigation as a person who is alleged to be engaged or to have engaged in the discriminatory housing practice upon which the complaint is based, may be joined as an additional or substitute respondent by service of a notice on the person under this regulation within 10 days of the identification.</text> </paragraph> <paragraph num="(3)"> <text>At a minimum, the notice shall:</text> <paragraph num="(a)"> <text>Identify the alleged discriminatory housing practice upon which the complaint is based, and include a copy of the complaint;</text> </paragraph> <paragraph num="(b)"> <text>State the date that the complaint was accepted for filing;</text> </paragraph> <paragraph num="(c)"> <text>Advise the respondent of the time limits applicable to complaint processing under this chapter and of the procedural rights and obligations of the respondent under State Government Article, §§20-701—20-710 and 20-1020—20-1037, Annotated Code of Maryland, including the opportunity to submit an answer to the complaint within 10 days of the receipt of the notice;</text> </paragraph> <paragraph num="(d)"> <text>Advise the respondent of the aggrieved person's right to commence a civil action in an appropriate State court, not later than 2 years after the occurrence or termination of the alleged discriminatory housing practice and state:</text> <paragraph num="(i)"> <text>The computation of this 2-year period excludes any time during which an administrative proceeding is pending with respect to a complaint or charge based on the alleged discriminatory housing practice; and</text> </paragraph> <paragraph num="(ii)"> <text>The time period includes the time during which an action arising from a breach of a conciliation agreement under State Government Article, §20-1024, Annotated Code of Maryland, is pending;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>If the person is not named in the complaint, but is being joined as an additional or substitute respondent, explain the basis for the Commission's belief that the joined person is properly joined as a respondent;</text> </paragraph> <paragraph num="(f)"> <text>Advise the respondent that retaliation against a person because the person made a complaint, testified, assisted, or participated in an investigation or conciliation is a discriminatory housing practice that is prohibited under State Government Article, Title 20, Annotated Code of Maryland, and these regulations; and</text> </paragraph> <paragraph num="(g)"> <text>Invite the respondent to enter into a conciliation agreement for the purpose of resolving the complaint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Answer to Complaint.</text> <paragraph num="(1)"> <text>The respondent may file an answer not later than 10 days after receipt of the notice described in §C of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The respondent may assert any defense that might be available to a defendant in a court of law.</text> </paragraph> <paragraph num="(3)"> <text>The answer shall be signed and affirmed by the respondent.</text> </paragraph> <paragraph num="(4)"> <text>The affirmation shall state: “I declare under the penalty of perjury that the foregoing is true and correct”.</text> </paragraph> <paragraph num="(5)"> <text>An answer may be reasonably and fairly amended at any time with the consent of the Executive Director or designee.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Withdrawal. A complaint filed by or on behalf of an aggrieved person may be withdrawn in writing at any time by the aggrieved person who filed the complaint.</text> </paragraph> <paragraph num="F."> <text>Administrative Closure — Notice and Reopening.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a complaint under those circumstances which, by way of example but not limitation, may include absence of information which establishes the whereabouts of the complainant, or the determination that statutory requisites have not been met.</text> </paragraph> <paragraph num="(2)"> <text>Written notice of the administrative closure shall be provided to the complainant at the last known address informing the complainant of the right to object to this closure within 15 days of the date on which the notice was mailed.</text> </paragraph> <paragraph num="(3)"> <text>If the complainant files a timely objection, the Executive Director or designee shall consider the closure in light of the reasons stated by the complainant and make a determination.</text> </paragraph> <paragraph num="(4)"> <text>In the absence of a timely objection, the Executive Director or designee shall close the complaint and so mark the subject case file.</text> </paragraph> <paragraph num="(5)"> <text>Written notice of the closure shall be sent to the respondent upon whom the complaint was served.</text> </paragraph> <paragraph num="(6)"> <text>In those cases when a complaint has been withdrawn by a complainant, the 15-day notice provision to the complainant is not required.</text> </paragraph> <paragraph num="(7)"> <text>A request to reopen a case administratively closed for lack of information establishing the whereabouts of the complainant that is received beyond the time for objecting specified in §F(2) of this regulation shall be considered only upon a showing of good cause made by the complainant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Investigative Process."> <paragraph num="A."> <text>Investigations.</text> <paragraph num="(1)"> <text>The Executive Director or designee shall authorize a complaint within 30 days after the filing of the complaint, or the notification or referral of a complaint, from the United States Department of Housing and Urban Development.</text> </paragraph> <paragraph num="(2)"> <text>Upon the authorization of a complaint, the Executive Director or designee shall assign, or cause to be assigned, the investigation of the complaint to a staff investigator.</text> </paragraph> <paragraph num="(3)"> <text>The investigative process involves:</text> <paragraph num="(a)"> <text>Promptly gathering information necessary and relevant to make a fair determination on the events or transactions that relate to the alleged discriminatory housing practice identified in the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Documenting policies or practices of the respondent involved in the alleged discriminatory housing practice raised in the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Developing factual data necessary for a determination whether probable cause exists to believe that a discriminatory housing practice has occurred or is about to occur and to take other actions provided under this chapter and State Government Article, Title 20, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(d)"> <text>Concluding the investigation, in accordance with this regulation, with the issuance of written findings of probable cause or no probable cause.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Systemic Processing.</text> <paragraph num="(1)"> <text>The Executive Director or designee may identify the complaint for systemic processing when the Executive Director or designee determines:</text> <paragraph num="(a)"> <text>That the alleged discriminatory practices contained in a complaint are pervasive or institutional in nature;</text> </paragraph> <paragraph num="(b)"> <text>That the processing of the complaint will involve complex issues, or novel questions of law or fact; or</text> </paragraph> <paragraph num="(c)"> <text>That a large number of individuals will be affected.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The determination in §B(1) of this regulation may be based on the face of the complaint or on information gathered in connection with an investigation.</text> </paragraph> <paragraph num="(3)"> <text>Systemic investigations may focus not only on documenting facts involved in the alleged discriminatory housing practice that is the subject of the complaint, but also on review of other policies and procedures related to matters under investigation, to make sure they also comply with the nondiscrimination requirements of State Government Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Conduct of Investigation.</text> <paragraph num="(1)"> <text>Fact-Finding Conference. A conference may be convened for the purpose of defining the issues contained in the complaint in accordance with COMAR 14.03.01.05C(1).</text> </paragraph> <paragraph num="(2)"> <text>Request for Information.</text> <paragraph num="(a)"> <text>The Executive Director or designee shall require the respondent to promptly provide answers to requests for information, which will be used to assist in determining the merits of the allegations contained in the complaint.</text> </paragraph> <paragraph num="(b)"> <text>The request for information shall be accompanied by the following:</text> <paragraph num="(i)"> <text>A copy of the charge; and</text> </paragraph> <paragraph num="(ii)"> <text>The date on which the response shall be submitted.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Additional requests for information may be made to further the investigation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Interrogatories—Content and Response. An investigator may serve interrogatories on a respondent, upon authorization by the Executive Director or designee in accordance with COMAR 14.03.01.05C(3).</text> </paragraph> <paragraph num="(4)"> <text>Interrogatories—Default Procedure. Failure of the respondent to either answer the interrogatories or to file a motion to strike or exceptions within the time specified will activate the default proceedings in accordance with COMAR 14.03.01.06.</text> </paragraph> <paragraph num="(5)"> <text>Investigatory Subpoena.</text> <paragraph num="(a)"> <text>In accordance with COMAR 14.03.01.05C(4), the Commission may, upon written authorization of the Executive Director or designee, issue a subpoena to compel the attendance and testimony of witnesses or to compel the production of books, papers, and documents relevant or necessary to an investigation or hearing.</text> </paragraph> <paragraph num="(b)"> <text>The Commission may bring an action to enforce the subpoena in the circuit court for the county in which the person to whom the subpoena is addressed resides, was served, or transacts business.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Cooperation of Federal, State, or Local Agencies. The Commission, in processing fair housing complaints, may seek the cooperation and utilize the services of federal, State, or local agencies, including any agency having regulatory or supervisory authority over financial institutions.</text> </paragraph> <paragraph num="E."> <text>Completion of Investigation.</text> <paragraph num="(1)"> <text>The investigation shall remain open until:</text> <paragraph num="(a)"> <text>A written finding of probable cause or no probable cause is made, in accordance with COMAR 14.03.01.08A;</text> </paragraph> <paragraph num="(b)"> <text>A conciliation agreement is executed and approved; or</text> </paragraph> <paragraph num="(c)"> <text>A withdrawal or an administrative closure is made in accordance with Regulation .11E and F of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Probable Cause.</text> <paragraph num="(a)"> <text>The Commission shall determine whether, based on the totality of the factual circumstances known at the time of the decision, probable cause exists to believe that a discriminatory housing practice has occurred.</text> </paragraph> <paragraph num="(b)"> <text>The probable cause determination shall be based solely on the facts concerning the alleged discriminatory housing practice, provided by complainant and respondent, and otherwise disclosed during the investigation.</text> </paragraph> <paragraph num="(c)"> <text>If the Commission determines that probable cause exists, the Commission shall immediately give notice to the complainant, the aggrieved person, and the respondent of this determination.</text> </paragraph> <paragraph num="(d)"> <text>If the Commission determines that no probable cause exists, the Commission shall immediately give notice to the complainant, the aggrieved person, and the respondent of this determination.</text> </paragraph> <paragraph num="(e)"> <text>A final written finding may be amended at any time, if additional information is discovered.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless it is impracticable to do so, the Commission shall complete the investigation of the alleged discriminatory housing practice within 100 days of the filing of the complaint.</text> </paragraph> <paragraph num="(4)"> <text>If the Commission is unable to complete the investigation within the 100-day period, the Commission shall give notice to the aggrieved person and the respondent of the reasons for the delay.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Reconsideration.</text> <paragraph num="(1)"> <text>If the findings conclude that there is no probable cause to believe that a discriminatory act has been or is being committed, the complainant shall be given the opportunity to apply to the Commission's Executive Director or designee for reconsideration of the Commission's written findings and recommendations.</text> </paragraph> <paragraph num="(2)"> <text>Reconsideration Process.</text> <paragraph num="(a)"> <text>The application and authority shall be in writing and shall state specifically the grounds upon which it is based.</text> </paragraph> <paragraph num="(b)"> <text>The application and authority shall be filed with the Executive Director or designee within 15 days from the date on which the findings were mailed to the complainant.</text> </paragraph> <paragraph num="(c)"> <text>Written notice that the complainant has requested reconsideration shall be given promptly to the respondent.</text> </paragraph> <paragraph num="(d)"> <text>Not later than 30 days after receipt of an application, the Executive Director or designee shall review the entire file, including the request for reconsideration, and may:</text> <paragraph num="(i)"> <text>Grant or deny the application for reconsideration; and</text> </paragraph> <paragraph num="(ii)"> <text>Issue an order the Executive Director or designee considers appropriate.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Not later than 30 days after making a determination, the Executive Director or designee shall notify the complainant and respondent in writing of the determination, and do one of the following:</text> <paragraph num="(i)"> <text>If the application for reconsideration is granted, remand the case to the investigative staff for the appropriate action; or</text> </paragraph> <paragraph num="(ii)"> <text>If the application for reconsideration is not granted, administratively close the case.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The times set forth in §F of this regulation may be extended by the Executive Director or deputy director for good cause.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Dismissal of Proceedings. The Executive Director or designee may dismiss cases which have not been certified for public hearing, at any stage of the proceedings in accordance with COMAR 14.03.01.04F.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Conciliation Process."> <paragraph num="A."> <text>Conciliation.</text> <paragraph num="(1)"> <text>During the period beginning with the initial filing of a complaint and ending with the certification of the file for processing for hearing or dismissal of the complaint, the Commission shall, to the extent feasible, attempt to conciliate the complaint.</text> </paragraph> <paragraph num="(2)"> <text>Written notice of the opportunity to conciliate shall be provided to the parties.</text> </paragraph> <paragraph num="(3)"> <text>In conciliating a complaint, the Commission shall attempt to achieve a just resolution of the complaint and to obtain assurances that the respondent will satisfactorily remedy any violations of the rights of the aggrieved person, and take such action as well as assure the elimination of discriminatory housing practices, or the prevention of their occurrence in the future.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Conciliation Agreement.</text> <paragraph num="(1)"> <text>The terms of a settlement of a complaint will be reduced to a written conciliation agreement.</text> </paragraph> <paragraph num="(2)"> <text>The conciliation agreement shall seek to protect the interests of the aggrieved person, other persons similarly situated, and the public interest.</text> </paragraph> <paragraph num="(3)"> <text>The types of relief that may be sought for the aggrieved person are described in §C of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>The provisions that may be sought for the vindication of the public interest are described in Regulation .17B(3) of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>The agreement shall be executed by the respondent and the complainant.</text> </paragraph> <paragraph num="(6)"> <text>The agreement is subject to the approval of the Executive Director or designee who shall indicate approval by signing the agreement.</text> </paragraph> <paragraph num="(7)"> <text>The Executive Director or designee shall approve an agreement and shall execute the agreement only if:</text> <paragraph num="(a)"> <text>The complainant and the respondent agree to the relief accorded the aggrieved person; and</text> </paragraph> <paragraph num="(b)"> <text>The provisions of the agreement will adequately vindicate the public interest.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Relief Sought for Aggrieved Persons.</text> <paragraph num="(1)"> <text>Administrative Relief. In conciliation, the Commission may seek any relief in accordance with Regulation .17B of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>Arbitration.</text> <paragraph num="(a)"> <text>The conciliation agreement may provide for binding arbitration of the dispute arising from the complaint.</text> </paragraph> <paragraph num="(b)"> <text>Arbitration may award appropriate relief as described in §C(1) of this regulation.</text> </paragraph> <paragraph num="(c)"> <text>The aggrieved person and the respondent may, in the conciliation agreement, limit the types of relief that may be awarded under binding arbitration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Termination of Conciliation Efforts—Respondent's Actions.</text> <paragraph num="(1)"> <text>The Commission may terminate its efforts to conciliate if a respondent fails or refuses to confer with the Commission's staff, or fails or refuses to negotiate in good faith to resolve the dispute.</text> </paragraph> <paragraph num="(2)"> <text>If a written finding of probable cause has been issued, the Executive Director or designee may terminate the efforts to conciliate, notify the parties that conciliation has failed, and certify the case for public hearing as set forth in Regulation .14 of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Termination of Conciliation Efforts—Complainant's Actions.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a case if the complainant:</text> <paragraph num="(a)"> <text>Fails to negotiate in good faith; or</text> </paragraph> <paragraph num="(b)"> <text>Rejects an offer of settlement or compromise made by the respondent, in a formal offer of settlements, which provides the complainant with the full relief which is available under the laws enforced by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Before administratively closing the case, the Executive Director or designee shall:</text> <paragraph num="(a)"> <text>Provide written notice to the complainant;</text> </paragraph> <paragraph num="(b)"> <text>Give the complainant 15 days after the mailing of the notice to object in writing and give reasons why the case should not be administratively closed;</text> </paragraph> <paragraph num="(c)"> <text>Consider the objections filed by the complainant;</text> </paragraph> <paragraph num="(d)"> <text>Administratively close the case if no objections are filed; and</text> </paragraph> <paragraph num="(e)"> <text>Promptly notify both the complainant and respondent of the determination.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>When the aggrieved person has commenced a civil action under federal law or State law seeking relief with respect to the alleged discriminatory housing practice, and the trial in the action has commenced, the Commission will terminate conciliation unless the court specifically requests assistance from the Commission.</text> </paragraph> <paragraph num="G."> <text>Prohibitions and Requirements—Disclosure of Information Obtained During Conciliation.</text> <paragraph num="(1)"> <text>Except as provided in §G(2) of this regulation, nothing that is said or done in the course of conciliation under this regulation may be made public or used as evidence in a subsequent administrative hearing or civil action under State Government Article, Title 20, Annotated Code of Maryland, without the written consent of the persons concerned.</text> </paragraph> <paragraph num="(2)"> <text>Conciliation agreements shall be made public, unless the aggrieved person and respondent request nondisclosure and the Commission determines that disclosure is not required to further the purposes of the Fair Housing Law.</text> </paragraph> <paragraph num="(3)"> <text>Notwithstanding a determination that disclosure of a conciliation agreement is not required, the Commission may publish tabulated descriptions of the results of all conciliation efforts.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Review of Compliance with Conciliation Agreements.</text> <paragraph num="(1)"> <text>The Commission may, from time to time, review compliance with the terms of any conciliation agreements.</text> </paragraph> <paragraph num="(2)"> <text>Whenever the Commission has reasonable cause to believe that a respondent has breached a conciliation agreement, the Commission through its general counsel may file a civil action for the enforcement of the terms of the conciliation agreement.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Order of the Commission. An agreement resulting from conciliation shall be executed on behalf of the Commission by the Executive Director or designee and shall constitute an order of the Commission as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Certification for Hearing Processing."> <paragraph num="A."> <text>Upon failure of conciliation, the Executive Director or designee shall certify the case for hearing processing.</text> </paragraph> <paragraph num="B."> <text>An entry identifying this case shall be logged in the Commission's official docket book, which shall be maintained by the Executive Director for cases pending hearing.</text> </paragraph> <paragraph num="C."> <text>The Executive Director or designee shall forward the certified case file to the Commission's general counsel for further processing.</text> </paragraph> <paragraph num="D."> <text>The General Counsel, on review of a certified file, may remand the case to the Executive Director or designee for:</text> <paragraph num="(1)"> <text>Further investigation and, in this case, shall state clearly the issues requiring further investigative proceedings; or</text> </paragraph> <paragraph num="(2)"> <text>Review of the findings and, in this case, shall state clearly the reason or reasons for the review.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The General Counsel, on review of a certified file, shall determine whether the matter involves the legality of local zoning or land use laws or ordinances and shall do the following:</text> <paragraph num="(1)"> <text>Immediately refer the investigative materials to the Attorney General for appropriate action in accordance with State Government Article, §20-1025(c)(1), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the complainant, the aggrieved person, and the respondent of this action by certified mail or personal service.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Not less than 60 days after the General Counsel refers the matter to the Attorney General under §E of this regulation, the Commission may issue a charge or take other appropriate action in the matter.</text> </paragraph> <paragraph num="G."> <text>If a federal or State civil action is commenced prior to the filing of the statement of charges alleging unlawful housing discrimination under the same facts, the Commission shall dismiss the case prior to the filing of the statement of charges pursuant to COMAR 14.03.01.04F.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Election of Civil Action or Provision of Administrative Proceeding."> <paragraph num="A."> <text>Election Process.</text> <paragraph num="(1)"> <text>When a complaint is certified for further processing pursuant to State Government Article, §20-1025(a), Annotated Code of Maryland, a complainant, respondent, or aggrieved person on whose behalf the complaint was filed may elect to have the claims asserted in the complaint decided in a civil action under State Government Article, §20-1032, Annotated Code of Maryland, instead of by an administrative hearing under State Government Article, §20-1027, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The election authorized under State Government Article, §20-1026, Annotated Code of Maryland, shall be made not later than:</text> <paragraph num="(a)"> <text>20 days after the complainant, respondent, or aggrieved person on whose behalf the complaint was filed receives service under State Government Article, §20-1025(e), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>In the case of the Commission, 20 days after service is made to all other parties under State Government Article, §20-1025(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A person who makes an election under State Government Article, §20-1026, Annotated Code of Maryland, shall give notice of the election to the Commission and to all other complainants, respondents, and aggrieved persons on whose behalf the complaint was filed or to whom the complaint relates.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Civil Action by the Commission.</text> <paragraph num="(1)"> <text>Action Brought on Behalf of Aggrieved Person.</text> <paragraph num="(a)"> <text>Commencement. In accordance with State Government Article, §20-1032, Annotated Code of Maryland, if an election is made to pursue judicial action under State Government Article, §20-1026, Annotated Code of Maryland, the Commission's General Counsel shall commence and maintain, not later than 60 days after the election is made, a civil action seeking relief under State Government Article, §20-1026, Annotated Code of Maryland, on behalf of the aggrieved person in the circuit court for the county where the dwelling that is the subject of the alleged discrimination is located.</text> </paragraph> <paragraph num="(b)"> <text>A hearing under Regulation .16 of this chapter and State Government Article, §20-1027, Annotated Code of Maryland, may not continue regarding an alleged discriminatory housing practice after the beginning of the trial of a civil action commenced by the aggrieved person under federal law or State law seeking relief with respect to that discriminatory housing practice.</text> </paragraph> <paragraph num="(c)"> <text>Relief. Relief and civil penalties shall be awarded in accordance with State Government Article, §20-1032(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>Intervention. Any aggrieved person with respect to the issues to be determined in a civil action under State Government Article, §20-1032 may intervene as of right.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Commission-Initiated Civil Action.</text> <paragraph num="(a)"> <text>Commencement. Pursuant to State Government Article, §20-1036(a), Annotated Code of Maryland, the Commission may commence a civil action in the appropriate circuit court if the Commission has probable cause to believe that:</text> <paragraph num="(i)"> <text>A person or group of persons is engaged in a pattern or practice of resistance to the full enjoyment of any of the rights granted by State Government Article, Title 20, Subtitle 7 and Subtitle 10, Part II, Annotated Code of Maryland, or any group of persons has been denied any of the rights granted by State Government Article, Title 20, Subtitles 7 and Subtitle 10, Part II, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(ii)"> <text>The resistance and denial raises an issue of general public importance.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A hearing under Regulation .16 of this chapter and State Government Article, §20-1027, Annotated Code of Maryland, may not continue regarding an alleged discriminatory housing practice after the beginning of the trial of a civil action commenced by the Commission under federal law or State law seeking relief with respect to that discriminatory housing practice.</text> </paragraph> <paragraph num="(c)"> <text>Relief and attorney’s fees shall be awarded in accordance with State Government Article, §20-1036(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>Intervention.</text> <paragraph num="(i)"> <text>On timely application, a person may intervene in a civil action commenced by the Commission under §B(2)(a)—(b) of this regulation if the action involves an alleged discriminatory housing practice to which the person is an aggrieved person or a conciliation agreement to which the person is a party.</text> </paragraph> <paragraph num="(ii)"> <text>A court may grant relief to an intervening party in accordance with State Government Article, §20-1036(d)(2), Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Civil Action by Aggrieved Person; Private Right of Action.</text> <paragraph num="(1)"> <text>Pursuant to State Government Article, §20-1035, Annotated Code of Maryland, an aggrieved person may file a civil action against the respondent in the appropriate State court to obtain relief for an alleged discriminatory housing practice, or the breach of a conciliation agreement entered into under State Government Article, Title 20, Subtitle 7, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Filing Period.</text> <paragraph num="(a)"> <text>The action shall be filed within 2 years after the occurrence or termination of the alleged discriminatory housing practice, or the breach of a conciliation agreement, whichever is later.</text> </paragraph> <paragraph num="(b)"> <text>The 2-year period does not include any time during which an administrative proceeding was pending for a complaint based on the alleged discriminatory housing practice under State Government Article, Title 20, Subtitle 7, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Exceptions.</text> <paragraph num="(a)"> <text>Except for the purposes of enforcing a conciliation agreement, an aggrieved person may not commence a civil action for the alleged discriminatory housing practice that forms the basis of the complaint if the Commission or a State or local unit has obtained a conciliation agreement with the consent of the aggrieved person.</text> </paragraph> <paragraph num="(b)"> <text>If an administrative law judge has commenced a hearing on the record under Regulation .16 of this chapter with respect to the charge, an aggrieved person may not commence a civil action for the alleged discriminatory housing practice that forms the basis of the charge issued by the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A hearing under Regulation .16 of this chapter and State Government Article, §20-1027, Annotated Code of Maryland, may not continue regarding an alleged discriminatory housing practice after the beginning of the trial of a civil action commenced by an aggrieved person under federal or State law seeking relief with respect to that discriminatory housing practice.</text> </paragraph> <paragraph num="(5)"> <text>Relief.</text> <paragraph num="(a)"> <text>Relief shall be awarded in accordance with State Government Article, §20-1035(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>Relief granted under State Government Article, §20-1035, Annotated Code of Maryland, may not affect any contract, sale, encumbrance, or lease consummated before the granting of relief and involving a bona fide purchaser, encumbrancer, or tenant without actual notice of the filing of a complaint with the Commission or civil action under State Government Article, §20-1035, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Intervention by the Commission. If the Commission certifies that the case is of general public importance and upon timely application, the Commission may intervene in a civil action brought under State Government Article, §20-1035, Annotated Code of Maryland, and obtain any relief available under State Government Article, §20-1036(c), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Provision of Administrative Proceeding.</text> <paragraph num="(1)"> <text>Issuance of Statement of Charges.</text> <paragraph num="(a)"> <text>When a party does not elect a civil action, the Commission's General Counsel shall serve a copy of the statement of charges to each respondent and each aggrieved person on whose behalf the complaint was filed by certified mail or personal service.</text> </paragraph> <paragraph num="(b)"> <text>The Commission’s General Counsel shall file the statement of charges not later than 30 days after the case is certified for public hearing and service is made to all parties under State Government Article, §20-1025(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>The statement of charges shall contain:</text> <paragraph num="(i)"> <text>An allegation that the person on whose behalf the complaint is filed is a proper complainant within the meaning of State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>An allegation that the respondent is a proper respondent within the meaning of, and subject to, provisions of State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(iii)"> <text>A factual allegation or allegations of an unlawful discriminatory housing practice or practices; and</text> </paragraph> <paragraph num="(iv)"> <text>A prayer for relief sought.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The Commission's General Counsel may not issue a charge under this regulation after the beginning of the trial of a civil action that is commenced by an aggrieved party under federal law or State law and that seeks relief for the same discriminatory housing practice alleged in that aggrieved party's complaint.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Answer.</text> <paragraph num="(a)"> <text>Any answer made to the statement of charges shall be filed within 15 days after the notice provided in accordance with §B(3) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Upon application in writing to an administrative law judge, and before the end of the 15 days, an administrative law judge may, for good cause shown, extend the time within which an answer may be filed.</text> </paragraph> <paragraph num="(c)"> <text>The answer shall be filed with the Office of Administrative Hearings and the original of the answer shall be signed under oath or affirmation of the respondent and shall contain:</text> <paragraph num="(i)"> <text>The name, address, and email address of the respondent;</text> </paragraph> <paragraph num="(ii)"> <text>The name, address, telephone number, and email address of the respondent's attorney, if any;</text> </paragraph> <paragraph num="(iii)"> <text>A specific admission or denial or assertion that the respondent is without sufficient knowledge or information to form a belief with respect to each and every allegation of the complaint;</text> </paragraph> <paragraph num="(iv)"> <text>A statement of any matter constituting a defense to any allegations in the statement of charges; and</text> </paragraph> <paragraph num="(v)"> <text>A certification that service of this answer has been made upon all other parties.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Any allegation in the statement of charges which is not denied or admitted in the answer shall be considered admitted, unless the respondent states in the answer that it is without sufficient knowledge or information to form a belief with respect to this allegation.</text> </paragraph> <paragraph num="(e)"> <text>Any allegation of new matter contained in the answer shall be deemed denied without the necessity of a reply being filed, unless a reply is ordered by the administrative law judge conducting the hearing.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Administrative Hearing Proceedings."> <paragraph num="A."> <text>General Information.</text> <paragraph num="(1)"> <text>Scope.</text> <paragraph num="(a)"> <text>This regulation contains the rules of practice and procedure established by the Maryland Commission on Human Relations and the Office of Administrative Hearings, under COMAR 28.02.01 in accordance with State Government Article, §20-1034, Annotated Code of Maryland, for administrative proceedings before an administrative law judge.</text> </paragraph> <paragraph num="(b)"> <text>This regulation applies only to an administrative law judge adjudication of a complaint asserted in a charge issued under State Government Article, §20-1027, Annotated Code of Maryland, when:</text> <paragraph num="(i)"> <text>An election to civil court has not been filed in accordance with Regulation .15 of this chapter; or</text> </paragraph> <paragraph num="(ii)"> <text>The Commission determines that the action is warranted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Location of Hearing. An administrative law judge shall conduct the hearing at a place in Baltimore City or the county in which the discriminatory housing practice is alleged to have occurred and in accordance with COMAR 28.02.01.07.</text> </paragraph> <paragraph num="(3)"> <text>Time Computation.</text> <paragraph num="(a)"> <text>Time computations under this regulation shall be in accordance with Article 1, §36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>In computing any time period involved, the date of the issuance of an order or decision by an administrative law judge is the date the order or decision is served by the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(c)"> <text>Documents are not filed until received by the Office of Administrative Hearings.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Service and Filing.</text> <paragraph num="(a)"> <text>Service of documents under this regulation shall be in accordance with COMAR 28.02.01.24.</text> </paragraph> <paragraph num="(b)"> <text>Copies of all filed documents shall be served on all parties of record.</text> </paragraph> <paragraph num="(c)"> <text>All filed documents shall clearly designate the docket number, if any, title of the proceeding, and certificate of service.</text> </paragraph> <paragraph num="(d)"> <text>Parties shall file all documents with the Office of Administrative Hearings.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Administrative Law Judge.</text> <paragraph num="(1)"> <text>Authority. The powers and duties of an administrative law judge shall be in accordance with COMAR 28.02.01.08A and B.</text> </paragraph> <paragraph num="(2)"> <text>Disqualification. Any disqualification of an administrative law judge shall be in accordance with COMAR 28.02.01.08C.</text> </paragraph> <paragraph num="(3)"> <text>Ex Parte Communications. An ex parte communication shall be defined and prohibited in accordance with State Government Article, §10-219, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Parties; Intervention.</text> <paragraph num="(1)"> <text>Parties to the proceedings include:</text> <paragraph num="(a)"> <text>The Commission, which files the charge under Regulation .15 of this chapter seeking appropriate relief for an aggrieved party and the public interest;</text> </paragraph> <paragraph num="(b)"> <text>A complainant, who is the person who files a complaint of discrimination issued under Regulation .10 of this chapter;</text> </paragraph> <paragraph num="(c)"> <text>A respondent, who is a person named in the complaint issued under Regulation .10B of this chapter against whom relief is sought;</text> </paragraph> <paragraph num="(d)"> <text>An intervenor, who is an aggrieved person that filed a request for intervention under COMAR 28.02.01.12; and</text> </paragraph> <paragraph num="(e)"> <text>Representation of the parties, which shall be in accordance with COMAR 28.02.01.09.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Intervention.</text> <paragraph num="(a)"> <text>A request for intervention shall be made by motion in accordance with §D(2) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Intervention shall be permitted if the request is timely and:</text> <paragraph num="(i)"> <text>The intervenor is the aggrieved person on whose behalf the complaint is issued; or</text> </paragraph> <paragraph num="(ii)"> <text>The intervenor is an aggrieved person who claims an interest in the property or transaction that is the subject of the complaint, and the disposition of the complaint may as a practical matter impair or impede the aggrieved person's ability to protect that interest, unless the aggrieved person is adequately represented by the existing parties.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Pleadings and Motions.</text> <paragraph num="(1)"> <text>Pleadings.</text> <paragraph num="(a)"> <text>Form. Every pleading, motion, brief, or other document shall contain a caption setting forth the title of the proceeding, the case number assigned by the Commission, and the designation of the type of document (for example, charge, answer, or motion to dismiss).</text> </paragraph> <paragraph num="(b)"> <text>Signature.</text> <paragraph num="(i)"> <text>Every pleading, motion, brief, or other document filed by a party shall be signed by the party, the party's representative, or the attorney representing the party, and shall include the signer's address and telephone number.</text> </paragraph> <paragraph num="(ii)"> <text>The signature constitutes a certification that the signer has read the document, that to the best of the signer's knowledge, information, and belief there is good ground to support the document, and that it is not interposed for delay.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Motions.</text> <paragraph num="(a)"> <text>All motions to an administrative law judge shall be in accordance with COMAR 28.02.01.16 except if otherwise provided in §G(4) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Motions for intervention shall be in accordance with COMAR 28.02.01.12 except if otherwise provided in §G(4) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Discovery. Discovery shall be conducted in accordance with COMAR 28.02.01.10.</text> </paragraph> <paragraph num="F."> <text>Subpoenas. Subpoenas shall be issued in accordance with State Government Article, §20-1023, Annotated Code of Maryland, and COMAR 28.02.01.11.</text> </paragraph> <paragraph num="G."> <text>Prehearing Procedures.</text> <paragraph num="(1)"> <text>Prehearing Conference. A prehearing conference shall be conducted in accordance with COMAR 28.02.01.13.</text> </paragraph> <paragraph num="(2)"> <text>Notice of Prehearing Conferences and Hearings.</text> <paragraph num="(a)"> <text>The administrative law judge shall set the matter in for a prehearing conference, hearing, or both, on the earliest date practicable.</text> </paragraph> <paragraph num="(b)"> <text>The administrative law judge shall, by registered or certified mail, forward to the complainant and to the respondent a statement of charges and a notice of prehearing conference or hearing, which shall include the following:</text> <paragraph num="(i)"> <text>The place, date, and hour of the prehearing conference, public hearing, or both;</text> </paragraph> <paragraph num="(ii)"> <text>A statement advising both the complainant and respondent of their respective rights to appear and be represented in this hearing in person, by their attorneys, or both, and that the case in support of the complaint shall be presented by the Commission's General Counsel;</text> </paragraph> <paragraph num="(iii)"> <text>A statement advising the respondent of the right to file an answer to the statement of charges; and</text> </paragraph> <paragraph num="(iv)"> <text>The name of the administrative law judge who conducts the prehearing conference or hearing or a statement that an administrative law judge will be subsequently designated.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The administrative law judge shall forward a copy of the notice of prehearing conference, public hearing, or both, to the General Counsel of the Commission.</text> </paragraph> <paragraph num="(d)"> <text>The prehearing conference, public hearing, or both, may not occur less than 20 or more than 60 days after the issuance and service of the statement of charges and notice of prehearing conference, public hearing, or both.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Prehearing Memorandum.</text> <paragraph num="(a)"> <text>Before the commencement of a prehearing conference, the administrative law judge may direct parties to file a prehearing memorandum.</text> </paragraph> <paragraph num="(b)"> <text>Contents of Memorandum. The memorandum shall state the name of the party or parties presenting the statement and, unless otherwise directed by the administrative law judge, briefly set forth the following:</text> <paragraph num="(i)"> <text>Issues involved in the proceeding;</text> </paragraph> <paragraph num="(ii)"> <text>Facts stipulated by the parties and a statement that the parties have made a good faith effort to stipulate to the greatest extent possible;</text> </paragraph> <paragraph num="(iii)"> <text>Facts in dispute;</text> </paragraph> <paragraph num="(iv)"> <text>Witnesses and exhibits to be presented at the hearing;</text> </paragraph> <paragraph num="(v)"> <text>A brief statement of applicable law;</text> </paragraph> <paragraph num="(vi)"> <text>Conclusions to be drawn;</text> </paragraph> <paragraph num="(vii)"> <text>Estimated time required for presentation of the party's case; and</text> </paragraph> <paragraph num="(viii)"> <text>Such other information as may assist in the disposition of the proceeding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Preliminary Matters — Motions.</text> <paragraph num="(a)"> <text>All preliminary matters shall be raised by motion filed at either the prehearing conference or not later than 45 days before the public hearing.</text> </paragraph> <paragraph num="(b)"> <text>The motion shall be in writing, stating briefly the relief applied for, with a memorandum stating the reasons and any law that may be in support of the motion.</text> </paragraph> <paragraph num="(c)"> <text>The motion and two copies together with a certificate of mailing to all parties shall be filed with the administrative law judge.</text> </paragraph> <paragraph num="(d)"> <text>An answer to a preliminary motion shall be in writing and shall include:</text> <paragraph num="(i)"> <text>A memorandum stating the reasons and any law that may be in support of the answer; and</text> </paragraph> <paragraph num="(ii)"> <text>Certification that a copy has been mailed to all parties.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>The original and two copies of the answer shall be filed with the administrative law judge within 15 days of receipt of the original motion unless otherwise directed by the administrative law judge.</text> </paragraph> <paragraph num="(f)"> <text>All motions shall be decided by the administrative law judge without oral argument on the motions, unless the administrative law judge desires oral argument or testimony.</text> </paragraph> <paragraph num="(g)"> <text>If the administrative law judge desires oral arguments, the administrative law judge shall set the date, place, and time, and notify all parties.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Settlement Conference. If required, a settlement conference shall be conducted in accordance with COMAR 28.02.01.14.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Hearing Procedures.</text> <paragraph num="(1)"> <text>Date.</text> <paragraph num="(a)"> <text>In accordance with State Government Article, §20-1027(b), Annotated Code of Maryland, the hearing shall commence not later than 120 days following the filing of the charge under Regulation .15 of this chapter, unless it is impracticable to do so.</text> </paragraph> <paragraph num="(b)"> <text>If the hearing cannot be commenced within this time period, the administrative law judge shall notify in writing all parties, the aggrieved persons on whose behalf the charge was filed, the respondent, and the Commission, of the reasons for the delay.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Place. The hearing shall be conducted in Baltimore City or the county where the discriminatory housing practice is alleged to have occurred.</text> </paragraph> <paragraph num="(3)"> <text>Notice of Hearing. The parties shall be notified of the hearing in accordance with §G(2) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Effect of a Civil Action on Administrative Proceeding.</text> <paragraph num="(a)"> <text>An administrative law judge may not continue an administrative proceeding under this regulation regarding an alleged discriminatory housing practice after the beginning of the trial of a civil action commenced by the aggrieved person or the Commission under an act of Congress or State law seeking relief with respect to that discriminatory housing practice.</text> </paragraph> <paragraph num="(b)"> <text>If such a trial is commenced, the administrative law judge shall dismiss the administrative proceeding.</text> </paragraph> <paragraph num="(c)"> <text>The commencement and maintenance of a civil action for appropriate temporary or preliminary relief under State Government Article, §20-1037, Annotated Code of Maryland, does not affect administrative proceedings under this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Conduct of Hearing. The hearing shall be conducted in accordance with COMAR 28.02.01.17.</text> </paragraph> <paragraph num="(6)"> <text>Evidence. Evidence shall be admitted in accordance with State Government Article, §10-213, Annotated Code of Maryland, and COMAR 28.02.01.18.</text> </paragraph> <paragraph num="(7)"> <text>Stipulations. The administrative law judge may accept stipulations in accordance with COMAR 28.02.01.15 upon the showing of mutual consent of the parties.</text> </paragraph> <paragraph num="(8)"> <text>Affidavits. The administrative law judge may accept affidavits in accordance with COMAR 28.02.01.15 upon showing:</text> <paragraph num="(a)"> <text>Mutual consent of the parties;</text> </paragraph> <paragraph num="(b)"> <text>The affiant is unavailable to testify; and</text> </paragraph> <paragraph num="(c)"> <text>The party seeking to introduce the affidavit has exercised reasonable diligence to locate the affiant.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Failure to Attend Hearing and Default. A party's failure to attend a hearing and the subsequent default process shall be in accordance with COMAR 28.02.01.20.</text> </paragraph> <paragraph num="(10)"> <text>Appointment of Interpreter. In situations when an interpreter is required, appointment shall be made in accordance with COMAR 28.02.01.19.</text> </paragraph> <paragraph num="(11)"> <text>Public Hearings. Proceedings under this regulation shall be open to the public in accordance with COMAR 28.02.01.21.</text> </paragraph> <paragraph num="(12)"> <text>Transcript of Hearing Record.</text> <paragraph num="(a)"> <text>The administrative law judge shall cause the testimony taken at the hearing to be transcribed.</text> </paragraph> <paragraph num="(b)"> <text>This transcript, together with all pleadings, exhibits, and other materials introduced into evidence shall constitute the record of the case as defined by State Government Article, §10-210, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Dismissals and Decisions."> <paragraph num="A."> <text>Dismissals. If the trial of a civil action that is commenced by an aggrieved party under an act of Congress or a State law and seeks relief for an alleged discriminatory housing practice has begun, an administrative law judge shall dismiss the administrative proceeding.</text> </paragraph> <paragraph num="B."> <text>Decision of Administrative Law Judge.</text> <paragraph num="(1)"> <text>In General.</text> <paragraph num="(a)"> <text>Within the time period set forth in §B(6) of this regulation and State Government Article, §20-1028(a), Annotated Code of Maryland, the administrative law judge shall issue a decision and provisional order including findings of fact and conclusions of law upon each material issue of fact and law presented on the record.</text> </paragraph> <paragraph num="(b)"> <text>Decisions and provisional orders by the administrative law judge shall be in accordance with COMAR 28.02.01.22.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Finding Against Respondent.</text> <paragraph num="(a)"> <text>If the administrative law judge finds that a respondent has engaged in a discriminatory housing practice, the administrative law judge shall issue a decision against the respondent and order such relief as may be appropriate.</text> </paragraph> <paragraph num="(b)"> <text>The relief may include, but is not limited to, the following:</text> <paragraph num="(i)"> <text>Actual damages suffered by the complainant or the aggrieved person including damages caused by humiliation or embarrassment;</text> </paragraph> <paragraph num="(ii)"> <text>Injunctive relief or such other equitable relief including, but not limited to, access to the dwelling at issue, or to a comparable dwelling, the provision of services or facilities in connection with a dwelling, or other specific relief;</text> </paragraph> <paragraph num="(iii)"> <text>Civil penalty against the respondent in accordance with State Government Article, §20-1028(b)(2), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(iv)"> <text>In a proceeding involving two or more respondents, a civil penalty as provided under §B(2)(b)(iii) of this regulation assessed against each respondent found to be engaged in a discriminatory housing practice.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Relief vindicating the public interest includes:</text> <paragraph num="(a)"> <text>Civil penalties;</text> </paragraph> <paragraph num="(b)"> <text>Remedial affirmative activities to overcome discriminatory housing practices;</text> </paragraph> <paragraph num="(c)"> <text>Reporting requirements; or</text> </paragraph> <paragraph num="(d)"> <text>Monitoring and enforcement activities.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The administrative law judge may assess a civil penalty against the respondent in an amount that does not exceed:</text> <paragraph num="(a)"> <text>$10,000, if the respondent has not been adjudged by order of the administrative law judge or a court to have committed a prior discriminatory housing practice;</text> </paragraph> <paragraph num="(b)"> <text>Except as provided in §B(5) of this regulation, $25,000 if the respondent has been adjudged by order of the administrative law judge or a court to have committed one other discriminatory housing practice during the 5-year period ending on the date of the filing of the charge; or</text> </paragraph> <paragraph num="(c)"> <text>Except as provided in §B(5) of this regulation, $50,000 if the respondent has been adjudged by order of the administrative law judge or a court to have committed two or more discriminatory housing practices during the 7-year period ending on the date of the filing of the charge.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the acts constituting the discriminatory housing practice that is the object of the charge are committed by the same individual who has been previously adjudged to have committed acts constituting a discriminatory housing practice, the civil penalties in §§B(4)(b)—(c) of this regulation may be imposed without regard to the period of time within which any other discriminatory housing practice occurred.</text> </paragraph> <paragraph num="(6)"> <text>All civil penalties shall be awarded in accordance with COMAR 14.03.03.02.</text> </paragraph> <paragraph num="(7)"> <text>At the request of the Commission, the Commission's General Counsel shall sue to recover a civil penalty due under this section.</text> </paragraph> <paragraph num="(8)"> <text>Restrictions on Relief. In accordance with State Government Article, §20-1028(c), Annotated Code of Maryland, an order issued by the administrative law judge may not affect any contract, sale, encumbrance, or lease consummated before the issuance of the decision and provisional order that involved a bona fide purchaser, encumbrancer, or tenant without actual knowledge of the charges filed under Regulation .15 of this chapter.</text> </paragraph> <paragraph num="(9)"> <text>Finding in Favor of Respondent.</text> <paragraph num="(a)"> <text>If the administrative law judge finds that a respondent has not engaged in a discriminatory housing practice, the administrative law judge shall make a decision and provisional order dismissing the charge.</text> </paragraph> <paragraph num="(b)"> <text>The Commission shall make public disclosure of each dismissal.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Date of Issuance.</text> <paragraph num="(a)"> <text>In accordance with State Government Article, §20-1028(a), Annotated Code of Maryland, the administrative law judge shall issue a decision and provisional order within 60 days after the end of the hearing, unless it is impracticable to do so.</text> </paragraph> <paragraph num="(b)"> <text>If the administrative law judge is unable to issue the decision and provisional order within the time period (or within any succeeding 60-day period), the administrative law judge shall notify in writing all parties, the aggrieved person on whose behalf the charge was filed, and the Commission of the reasons for the delay.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Service of Decision and Provisional Order. In accordance with State Government Article, §20-1029(b), Annotated Code of Maryland, the decision and provisional order of an administrative law judge shall be delivered to all parties, the aggrieved person on whose behalf the charge was filed, the respondent and the Commission with a notice indicating the right of the Commission, the aggrieved person, or the respondent to enter an appeal of this decision and provisional order to an appeal board of the Commission within 30 days.</text> </paragraph> <paragraph num="D."> <text>Review by the Appeal Board. An appeal to an appeal board of the Commission shall be in accordance with COMAR 14.03.01.12.</text> </paragraph> <paragraph num="E."> <text>Final Decision and Order.</text> <paragraph num="(1)"> <text>In the absence of a timely appeal, the decision and provisional order of the administrative law judge shall become the final decision and order of the Commission signed by the chairman and from which no further administrative appeal may be taken.</text> </paragraph> <paragraph num="(2)"> <text>Appeal Noted.</text> <paragraph num="(a)"> <text>If an appeal is noted, the appeal board of the Commission in accordance with COMAR 14.03.01.12F may review any finding of fact, conclusions of law, or order contained in the decision and provisional order of the administrative law judge and issue a final decision in the proceedings.</text> </paragraph> <paragraph num="(b)"> <text>The appeal board may affirm, reverse, or modify, in whole or in part, the decision and provisional order or remand the decision and provisional order for further proceedings.</text> </paragraph> <paragraph num="(c)"> <text>In making its determination, the appeal board shall consider the entire record, including the decision of the administrative law judge.</text> </paragraph> <paragraph num="(d)"> <text>The final decision and order shall be served on all parties, the aggrieved person on whose behalf the charge was filed, and the Commission's staff.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Action Upon Issuance of a Final Decision and Order — Licensed or Regulated Businesses.</text> <paragraph num="(1)"> <text>If a final decision and order includes a finding that a respondent has engaged, or is about to engage, in a discriminatory housing practice in the course of a business that is subject to licensing or regulation by a federal, State, or local governmental agency, the Commission shall:</text> <paragraph num="(a)"> <text>Notify the governmental agency of the decision by sending copies of the findings of fact and conclusions of law and the final decision to the governmental agency by certified mail;</text> </paragraph> <paragraph num="(b)"> <text>Recommend appropriate disciplinary action to the governmental agency, including, when appropriate, the suspension or revocation of the license of the respondent; or</text> </paragraph> <paragraph num="(c)"> <text>Recommend the suspension or disbarment of the respondent from participation in State and local loan, grant, or other regulated programs.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Petition for Judicial Review.</text> <paragraph num="(a)"> <text>The Commission shall give notice of the appropriate disciplinary action to the governmental agencies within 30 days after the issuance of the final decision, unless a petition for judicial review of the final decision and order as described in Regulation .18 of this chapter has been filed before the issuance of the notification of the agency.</text> </paragraph> <paragraph num="(b)"> <text>If a petition for judicial review has been filed, the Commission shall provide the notification to the governmental agency within 30 days of the date that the final decision and order is affirmed on review.</text> </paragraph> <paragraph num="(c)"> <text>If a petition for judicial review is timely filed following the notification of the governmental agency, the Commission shall promptly notify the governmental agency of the petition and withdraw the recommendation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Attorney's Fees and Costs.</text> <paragraph num="(1)"> <text>Following the issuance of the final decision and order under §E of this regulation, any prevailing party, including the Commission, may apply for attorney's fees and costs.</text> </paragraph> <paragraph num="(2)"> <text>The administrative law judge shall issue a decision and provisional order awarding or denying these fees and costs.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Final Administrative Disposition.</text> <paragraph num="(1)"> <text>The final disposition of a complaint by the administrative process shall be within 1 year of receipt of the complaint unless it is impracticable to do so.</text> </paragraph> <paragraph num="(2)"> <text>If the administrative disposition of the complaint does not occur within 1 year, the Commission shall notify in writing all parties, including the aggrieved person on whose behalf the charge was filed, of the reason for the delay.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Effect of Commission Order. A Commission order under State Government Article, §§20-1026—20-1034, Annotated Code of Maryland, and these regulations does not affect a contract, sale, encumbrance, or lease that was consummated before the Commission issued the order, and involved a bona fide purchaser, encumbrancer, or tenant who did not have actual notice of the charge filed under State Government Article, Title 20, Annotated Code of Maryland, or these regulations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Judicial Review and Enforcement of Final Decision and Order."> <paragraph num="A."> <text>Judicial Review of Final Decision and Order.</text> <paragraph num="(1)"> <text>Petition for Review.</text> <paragraph num="(a)"> <text>Any party adversely affected by a final decision and order under Regulation .17E of this chapter may file a petition in the circuit court of the judicial circuit in which the discriminatory housing practice is alleged to have occurred under State Government Article, §20-1030(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>The petition shall be filed within 30 days of the date of issuance of the final decision.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No Petition for Review. If no petition for review is filed under §A(1) of this regulation within 30 days after the final decision and order is entered, the findings of facts and final decision and order shall be conclusive in connection with any petition for enforcement described under this section filed by the General Counsel, and in connection with any petition for enforcement described under §B of this regulation after the end of the 45th day after the final decision and order is entered.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Enforcement of Final Decision.</text> <paragraph num="(1)"> <text>Enforcement by the Commission. Following the issuance of a final decision and order under Regulation .17E of this chapter, the General Counsel may petition the appropriate circuit court for the enforcement of the final decision and order and for appropriate temporary relief or restraining order in accordance with State Government Article, §20-1031(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Enforcement by Others. If before the expiration of 60 days from the date of issuance of the final decision and order under Regulation .17E of this chapter, no petition for review of the final decision and order described under this regulation has been filed, and the General Counsel has not sought enforcement of the final decision and order as described under §B(1) of this regulation, a person entitled to relief under the final decision and order may petition the appropriate circuit court for enforcement of the final decision in accordance with State Government Article, §20-1031(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Pattern and Practice."> <paragraph num="A."> <text>Engagement in Pattern and Practice Discrimination. In accordance with State Government Article, §20-1036(a), Annotated Code of Maryland, the Commission may take action upon the finding by the Commission that it has probable cause to believe that:</text> <paragraph num="(1)"> <text>A person or group of persons is engaged in a pattern and practice of resistance to the full enjoyment of any of the rights granted by State Government Article, §§20-701—20-710 and 20-1020—20-1037, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(2)"> <text>Any group of persons has been denied any of the rights granted by State Government Article, §§20-701—20-710 and 20-1020—20-1037, Annotated Code of Maryland, and that the denial or resistance raises an issue of general public importance.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Enforcement. The Commission may commence a civil action in the appropriate circuit court.</text> </paragraph> <paragraph num="C."> <text>Subpoena. A subpoena issued under this regulation and State Government Article, §20-1036(b), Annotated Code of Maryland, may be enforced by the Commission or other party at whose request the subpoena is issued in appropriate proceedings in the circuit court for Baltimore City or the county in which the person to whom the subpoena was addressed resides, was served, or transacts business.</text> </paragraph> <paragraph num="D."> <text>Relief. The court, in accordance with State Government Article, §20-1036(c), Annotated Code of Maryland, may:</text> <paragraph num="(1)"> <text>Award preventive relief, including a permanent or temporary injunction, restraining order, or other order against the person responsible for a violation of State Government Article, §§20-701—20-710 and 20-1020—20-1037, Annotated Code of Maryland, as is necessary to assure the full enjoyment of the rights granted by State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Award other relief as the court deems appropriate, including monetary damages to persons aggrieved; and</text> </paragraph> <paragraph num="(3)"> <text>To vindicate the public interest, assess a civil penalty against the respondent:</text> <paragraph num="(a)"> <text>In an amount not exceeding $50,000 for a first violation, and</text> </paragraph> <paragraph num="(b)"> <text>In an amount not exceeding $100,000 for any subsequent violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Attorney's Fees and Cost. The Court, in its discretion, may allow the prevailing party, including the Commission, reasonable attorney's fees and costs.</text> </paragraph> <paragraph num="F."> <text>Intervention.</text> <paragraph num="(1)"> <text>Upon timely application, a person may intervene in a civil action commenced by the Commission under State Government Article, §20-1036(d), Annotated Code of Maryland, and this regulation, if the action involves:</text> <paragraph num="(a)"> <text>An alleged discriminatory housing practice to which the person is an aggrieved person; or</text> </paragraph> <paragraph num="(b)"> <text>A conciliation agreement to which the person is a party.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The court may grant appropriate relief to any intervening party as is authorized to be granted to a plaintiff in a civil action under State Government Article, §20-1035(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Attorney's fees and cost shall be allowed in the discretion of the court or administrative law judge as follows:</text> <paragraph num="(a)"> <text>An intervenor shall be liable for reasonable attorney's fees and costs only to the extent that an intervenor's participation in the administrative proceeding was frivolous or vexatious, or was for the purpose of harassment; or</text> </paragraph> <paragraph num="(b)"> <text>To the extent that an intervenor is a prevailing party, the respondent shall be liable for reasonable attorney's fees.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§10-204, 20-710(d)(1), and 20-1034, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 30, 1993 (20:17 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective October 19, 1998 (25:21 Md. R. 1575)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective May 5, 2008 (35:9 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective April 18, 2011 (38:8 Md. R. 507)</annotation> </annotations> </chapter> <chapter num="05" heading="Commercial Nondiscrimination Policy"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>It is the policy of the State not to enter into a contract with any business entity that has discriminated in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers on the basis of race, color, religion, ancestry, or national origin, sex, age, marital status, sexual orientation, or disability, or any otherwise unlawful use of characteristics regarding the vendor's, supplier's, or commercial customer's employees or owners.</text> </paragraph> <paragraph num="B."> <text>These regulations provide the Commission's interpretation and regulations to implement the commercial nondiscrimination policy, as required by State Finance and Procurement Article, §19-119(a), and pursuant to State Government Article, §§10-110—10-112, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The rules of procedure provided in this chapter apply to the processing of complaints of commercial discrimination and retaliation filed under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>Rules of procedure for directing and conducting investigations of discrimination and retaliation complaints filed under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, shall be in a manner consistent with State Government Article, §§20-207, 20-1005, and 20-1006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="E."> <text>These regulations may not be construed to prohibit or limit otherwise lawful efforts to remedy the effects of discrimination that have occurred or are occurring in the marketplace.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Exemptions."> <paragraph num="A."> <text>This chapter does not apply to:</text> <paragraph num="(1)"> <text>Any real property acquisition by the State, including property subject to condemnation, other than a lease of real estate for the State's use;</text> </paragraph> <paragraph num="(2)"> <text>The settlement of litigation;</text> </paragraph> <paragraph num="(3)"> <text>The settlement of judicial or administrative enforcement proceedings by or on behalf of the State, except for proceedings to enforce State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(4)"> <text>Agreements concerning standards for locating facilities in a State right-of-way if a business entity has a statutory right to be in the right-of-way.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A government entity receiving federal financial assistance under Title VI of the Civil Rights Act of 1964 is not covered under this chapter unless the government entity is participating in an economic development project.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administrative law judge” means the individual assigned by the Office of Administrative Hearings to conduct a hearing under this chapter.</text> </paragraph> <paragraph num="(2)"> <text>“Aggrieved person” means any business entity that claims to have been injured by a discriminatory commercial practice.</text> </paragraph> <paragraph num="(3)"> <text>“Business entity” means any person, as defined in State Finance and Procurement Article, §1-101(d), Annotated Code of Maryland, firm, sole proprietorship, partnership, corporation, limited liability company, or other business entity, or a combination of any of these entities, including any financial institution, developer, consultant, prime contractor, subcontractor, supplier, or vendor, that has submitted a bid or proposal for, has been selected to engage in, or is engaged in providing goods or services to the State.</text> </paragraph> <paragraph num="(4)"> <text>“Charge” means a written statement prepared by the Commission's general counsel and issued under this chapter that contains a factual allegation of an unlawful discriminatory commercial practice.</text> </paragraph> <paragraph num="(5)"> <text>“Commercial customer” means a business entity that procures or attempts to procure goods or services from a business entity for business use as opposed to personal, family, or household use.</text> </paragraph> <paragraph num="(6)"> <text>“Commercial nondiscrimination policy” means the provisions under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, and any regulation, or documentation requirement, adopted by the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(7)"> <text>“Commercial treatment” means the treatment of a vendor, supplier, subcontractor, or commercial customer by a business entity that affects the conduct of business and the terms and conditions under which business is transacted between two or more business entities.</text> </paragraph> <paragraph num="(8)"> <text>“Commission” means the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(9)"> <text>“Commission staff” means employees of the Maryland Commission on Human Relations designated by the Commission to process, investigate, and pursue complaints filed under these regulations.</text> </paragraph> <paragraph num="(10)"> <text>“Complainant” means the person or business entity who files a complaint of discriminatory commercial practice or practices under these regulations.</text> </paragraph> <paragraph num="(11)"> <text>“Complaint” means a written statement by a person or business entity alleging an act or acts of commercial discrimination as prohibited by State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Conciliation” means the attempted resolution of issues raised by a complaint or by investigation of a complaint through informal negotiations involving the complainant, the respondent, and the Commission.</text> </paragraph> <paragraph num="(13)"> <text>“Conciliation agreement” means a written agreement setting forth the resolution of the issues in conciliation.</text> </paragraph> <paragraph num="(14)"> <text>“Contract” means an agreement with a business entity that is awarded by or on behalf of the State for that business entity to sell or lease supplies or goods, or to provide construction, real estate development, financial, insurance, professional, or other services to the State in return for a fee, or any other form of compensation to be paid or provided by the State.</text> </paragraph> <paragraph num="(15)"> <text>Discrimination.</text> <paragraph num="(a)"> <text>“Discrimination” means any disadvantage, difference, distinction, or preference in the solicitation, selection, hiring, or commercial treatment of a vendor, supplier, subcontractor, or commercial customer on the basis of race, color, religion, ancestry, national origin, sex, age, marital status, sexual orientation, disability, or any other unlawful use of characteristics regarding the vendor's, supplier's, or commercial customer's employees or owners.</text> </paragraph> <paragraph num="(b)"> <text>“Discrimination” does not include lawful efforts to remedy the effects of discrimination that have occurred or are occurring in the marketplace.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Economic development project” means a real estate development, construction, or renovation project for which the State provides:</text> <paragraph num="(a)"> <text>Funding or other financial assistance, other than payments in exchange for goods or services;</text> </paragraph> <paragraph num="(b)"> <text>Land;</text> </paragraph> <paragraph num="(c)"> <text>Road improvements;</text> </paragraph> <paragraph num="(d)"> <text>Tax credits; or</text> </paragraph> <paragraph num="(e)"> <text>A below market purchase price.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Executive Director” has the meaning stated in COMAR 14.03.01.02.</text> </paragraph> <paragraph num="(18)"> <text>Financial Institution.</text> <paragraph num="(a)"> <text>“Financial institution” means a person:</text> <paragraph num="(i)"> <text>Engaged in the business of lending money, guaranteeing loans, extending credit, securing bonds, or providing venture or equity capital; or</text> </paragraph> <paragraph num="(ii)"> <text>That offers financial services in connection with State projects or the administration of State government.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Financial institution” includes banks, savings and loans, venture capital companies, insurance companies, bonding companies, mortgage companies, credit unions, and brokers.</text> </paragraph> </paragraph> <paragraph num="(19)"> <text>“Investigator” has the meaning stated in COMAR 14.03.01.02.</text> </paragraph> <paragraph num="(20)"> <text>“Notice” has the meaning stated in COMAR 14.03.01.02.</text> </paragraph> <paragraph num="(21)"> <text>“Party” means:</text> <paragraph num="(a)"> <text>A person who has filed a complaint under this chapter;</text> </paragraph> <paragraph num="(b)"> <text>A respondent business entity that has been alleged to have violated State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>The Commission, which is responsible for investigating the complaint and rendering the initial findings.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Proceeding” means a conference, meeting, hearing, investigation, inquiry, or other fact-finding or decision-making procedure, including the dismissal of a complaint.</text> </paragraph> <paragraph num="(23)"> <text>“Respondent” means a person or business entity:</text> <paragraph num="(a)"> <text>Accused in a complaint of a discriminatory commercial practice; or</text> </paragraph> <paragraph num="(b)"> <text>Identified during an investigation of a complaint and joined as an additional or substitute respondent under this chapter.</text> </paragraph> </paragraph> <paragraph num="(24)"> <text>“Services” includes construction, real estate development, financial, insurance, professional, and other services.</text> </paragraph> <paragraph num="(25)"> <text>“State subcontract” means an agreement for the provision of goods or the performance of a particular portion of work to be performed under a contract with the State, where:</text> <paragraph num="(a)"> <text>The party providing the goods or services is on reasonable notice that the work is to be performed under a State contract; and</text> </paragraph> <paragraph num="(b)"> <text>The amount to be paid for the goods and services is material with respect to the overall amount of the contract.</text> </paragraph> </paragraph> <paragraph num="(26)"> <text>“State subcontractor” means the party providing goods or services under a State subcontract.</text> </paragraph> <paragraph num="(27)"> <text>“Time” has the meaning stated in COMAR 14.03.01.02.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Unlawful Practices Generally."> <paragraph num="A."> <text>Commercial Discrimination Practices Prohibited.</text> <paragraph num="(1)"> <text>It is unlawful for a business entity that has entered into a contract with the State to discriminate in the solicitation, selection, hiring, or commercial treatment of vendors, suppliers, subcontractors, or commercial customers.</text> </paragraph> <paragraph num="(2)"> <text>A business entity may not discriminate on the basis of race, color, religion, ancestry, national origin, sex, age, marital status, sexual orientation, disability, or any other unlawful use of characteristics regarding the vendor's, supplier's, or commercial customer's employees or owners.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Retaliation Prohibited. It is unlawful for a business entity that has entered into a contract with the State to take any action that has a material negative effect against any person, business, or other entity for:</text> <paragraph num="(1)"> <text>Reporting any incident of discrimination;</text> </paragraph> <paragraph num="(2)"> <text>Testifying as a witness at a hearing; or</text> </paragraph> <paragraph num="(3)"> <text>Providing requested assistance to Commission staff in any investigation of an incident of discrimination under these regulations.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Commercial Discrimination or Retaliation Complaint—Filing."> <paragraph num="A."> <text>Who May File. Any business entity who claims to have been aggrieved by an act or acts of unlawful commercial discrimination or retaliation prohibited by State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, may file a complaint with the Commission.</text> </paragraph> <paragraph num="B."> <text>Persons Against Whom Complaint May Be Filed. A complaint may be filed against any business entity that has entered into a contract with the State and is alleged to have engaged in commercial discrimination or retaliation as prohibited by State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Manner of Filing.</text> <paragraph num="(1)"> <text>A complaint shall be filed at the offices of the Commission in person, by registered, certified, or regular mail, facsimile or other electronic media, or by delivery to any duly appointed representative of the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Telephone Initiated Complaints.</text> <paragraph num="(a)"> <text>A complaint may be initiated by telephone to the Commission.</text> </paragraph> <paragraph num="(b)"> <text>If a complaint is issued by telephone:</text> <paragraph num="(i)"> <text>The Commission shall reduce information provided by telephone to writing on the prescribed complaint form; and</text> </paragraph> <paragraph num="(ii)"> <text>The Commission shall send the complaint form to the aggrieved person to be signed and affirmed as provided in §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A telephone initiated complaint is considered filed only upon receipt of the signed form or signed writing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>When Filed.</text> <paragraph num="(1)"> <text>A complaint shall be filed within 4 years after an alleged unlawful commercial discrimination or retaliation practice has occurred or terminated.</text> </paragraph> <paragraph num="(2)"> <text>If the alleged commercial discrimination or retaliation is of a continuing nature, the date of the occurrence of the unlawful practice shall be considered to be the date up to and including that date on which the unlawful practice ceased.</text> </paragraph> <paragraph num="(3)"> <text>A complaint is timely if filed within 4 years of the last alleged occurrence of an unlawful commercial discrimination or retaliation practice.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Form and Content of Complaint.</text> <paragraph num="(1)"> <text>A complaint shall be in writing and shall be signed and affirmed by the aggrieved person filing the complaint.</text> </paragraph> <paragraph num="(2)"> <text>The affirmation shall state “I declare under the penalty of perjury that the foregoing is true and correct.”</text> </paragraph> <paragraph num="(3)"> <text>Complaint Forms.</text> <paragraph num="(a)"> <text>A complaint may be filed on a form provided by the Commission.</text> </paragraph> <paragraph num="(b)"> <text>A complaint form shall be made available to all persons at the Commission in Baltimore, Maryland, or other offices within the State that may be established.</text> </paragraph> <paragraph num="(c)"> <text>Personnel of the Commission shall render appropriate assistance to a complainant in filling out forms.</text> </paragraph> <paragraph num="(d)"> <text>Notwithstanding the availability of a Commission form, the Commission shall accept a written statement which substantially sets forth under this section the allegations of commercial discrimination or retaliation practices prohibited under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Each complaint shall contain substantially the following information:</text> <paragraph num="(a)"> <text>The name and address of the aggrieved person;</text> </paragraph> <paragraph num="(b)"> <text>The name and address of the respondent; and</text> </paragraph> <paragraph num="(c)"> <text>A concise statement of facts to include:</text> <paragraph num="(i)"> <text>A description of the activities constituting the alleged unlawful commercial discrimination or retaliation practice;</text> </paragraph> <paragraph num="(ii)"> <text>Pertinent dates showing that the alleged unlawful practice occurred within the past 4 years; and</text> </paragraph> <paragraph num="(iii)"> <text>A statement indicating that the discrimination or retaliation occurred in the State pursuant to State Finance and Procurement Article, §19-107(f)(2), Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Amendment of Complaint.</text> <paragraph num="(1)"> <text>A complaint may be reasonably and fairly amended at any time.</text> </paragraph> <paragraph num="(2)"> <text>The amendments may include, but are not limited to:</text> <paragraph num="(a)"> <text>Curing technical defects or omissions, including failure to sign or affirm the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Clarifying and amplifying an allegation made in the complaint;</text> </paragraph> <paragraph num="(c)"> <text>Joining additional or substitute respondents; or</text> </paragraph> <paragraph num="(d)"> <text>Alleging additional acts that constitute unlawful commercial discrimination or retaliation practices under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, and that relate back to or grow out of the subject matter of the original complaint.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All amendments shall relate back to the original filing date.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Commercial Discrimination or Retaliation Complaint—Processing."> <paragraph num="A."> <text>Review and Authorization. After the filing of a complaint, the Executive Director or designee shall:</text> <paragraph num="(1)"> <text>Review the complaint to determine whether it should be issued for reasons of standing of the parties, timeliness of the filing, or other matters upon which its issuance may depend; and</text> </paragraph> <paragraph num="(2)"> <text>Do one of the following:</text> <paragraph num="(a)"> <text>If the complaint is acceptable, authorize an investigation by dating and signing the complaint; or</text> </paragraph> <paragraph num="(b)"> <text>If the complaint is unacceptable and not susceptible to amendment, reject the complaint and serve notice on the complainant stating the reasons for rejection.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Notification of Respondent.</text> <paragraph num="(1)"> <text>Within 10 days of the filing of a complaint or an amended complaint, including authorization, the Commission shall serve notice on each respondent by certified mail or personal service.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall:</text> <paragraph num="(a)"> <text>Acknowledge the filing of the complaint;</text> </paragraph> <paragraph num="(b)"> <text>State the date that the complaint was accepted for filing;</text> </paragraph> <paragraph num="(c)"> <text>Include a copy of the complaint;</text> </paragraph> <paragraph num="(d)"> <text>Identify the alleged commercial discrimination or retaliation practice upon which the complaint is based;</text> </paragraph> <paragraph num="(e)"> <text>Advise the respondent of the time limits applicable to complaint processing, and the procedural rights and obligations of the respondent under this chapter;</text> </paragraph> <paragraph num="(f)"> <text>Advise the respondent that retaliation against an aggrieved person because the person made a complaint or testified, assisted, or participated in an investigation or conciliation under this chapter is an unlawful commercial practice prohibited by State Finance and Procurement Article, §19-106(a), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(g)"> <text>Inform the respondent of the opportunity to enter into mediation for the purpose of resolving the complaint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Joinder of Additional or Substitute Respondents. A person who is not named as a respondent in the complaint, but who is identified in the course of the investigation as a person who is alleged to be engaged or have engaged in commercial discrimination or retaliation upon which the complaint is based, may be joined as an additional or substitute respondent by service of notice on the person under this regulation within 10 days of the identification.</text> </paragraph> <paragraph num="D."> <text>Answer to Complaint.</text> <paragraph num="(1)"> <text>A respondent may file an answer not later than 10 days after receipt of the notice described in §B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A respondent may assert any defense that might be available to a defendant in a court of law.</text> </paragraph> <paragraph num="(3)"> <text>The answer shall be signed and affirmed by the respondent, as described in Regulation .05E(1) and (2) of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>An answer may be reasonably and fairly amended at any time with the consent of the Executive Director or designee.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Withdrawal. A complaint filed by an aggrieved person may be withdrawn in writing at any time by the aggrieved person who filed the complaint.</text> </paragraph> <paragraph num="F."> <text>Administrative Closure—Notice and Reopening.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a complaint under those circumstances, which, by way of example but not limitation, may include:</text> <paragraph num="(a)"> <text>Absence of information that establishes the whereabouts of the complainant; or</text> </paragraph> <paragraph num="(b)"> <text>A determination that statutory requisites have not been met.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Notice of Administrative Closure.</text> <paragraph num="(a)"> <text>The Commission shall provide written notice of the administrative closure to the complainant at the last known address informing the complainant of the right to object to this closure within 15 days of the date on which the notice was mailed.</text> </paragraph> <paragraph num="(b)"> <text>In a case where the complaint has been withdrawn by a complainant, the 15-day notice provision to the complainant is not required.</text> </paragraph> <paragraph num="(c)"> <text>Written notice of the closure shall be sent to the respondent upon whom the complaint has been served.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Objection to Administrative Closure.</text> <paragraph num="(a)"> <text>If the complainant files a timely objection, the Executive Director or designee shall consider the closure in light of the reasons stated by the complainant and make a determination.</text> </paragraph> <paragraph num="(b)"> <text>In the absence of a timely objection, the Executive Director or designee shall:</text> <paragraph num="(i)"> <text>Close the complaint and mark the complaint file closed; and</text> </paragraph> <paragraph num="(ii)"> <text>Send written notice of the closure to the respondent upon whom the complaint was served.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Request to Reopen Case.</text> <paragraph num="(a)"> <text>A request to reopen a case administratively closed for lack of information establishing the whereabouts of the complainant that is received beyond the time for objecting specified in §F(2) of this regulation shall be considered only upon a showing of good cause made by the complainant.</text> </paragraph> <paragraph num="(b)"> <text>Factors to be considered in determining whether good cause exists include but are not limited to:</text> <paragraph num="(i)"> <text>The amount of time elapsed since the complainant last had contact with the Commission;</text> </paragraph> <paragraph num="(ii)"> <text>The circumstances surrounding the complainant's failure to inform the Commission of their whereabouts; and</text> </paragraph> <paragraph num="(iii)"> <text>Prejudice to the respondent.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Dismissal of Proceedings. The Executive Director or designee may dismiss cases which have not been certified for public hearing, at any state of the proceeding in accordance with COMAR 14.03.01.04E.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Mediation Process."> <paragraph num="A."> <text>Mediation.</text> <paragraph num="(1)"> <text>To promote a prompt and just resolution of a complaint, parties to a complaint are encouraged to enter into mediation to settle the complaint.</text> </paragraph> <paragraph num="(2)"> <text>Before the commencement of an investigation of a complaint, Commission staff shall review the complaint to determine whether mediation would be appropriate.</text> </paragraph> <paragraph num="(3)"> <text>The Commission shall provide each party with written notice of the opportunity to mediate.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Process.</text> <paragraph num="(1)"> <text>Participation in mediation is voluntary. Before mediation may occur, all parties shall sign a request form indicating their intent to mediate the complaint.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of a signed mediation request from all parties, the Commission shall suspend the normal investigation process and the parties shall be assigned to a neutral mediator in an attempt to resolve the complaint.</text> </paragraph> <paragraph num="(3)"> <text>As a condition precedent to the convening of any mediation meeting, the Commission may require a party to submit information which will facilitate an understanding of the case and promote its resolution.</text> </paragraph> <paragraph num="(4)"> <text>Information shared with the mediator during the mediation meeting may not become a part of the investigative record and may not be used against any party.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Agreement. If the parties reach an agreement to settle the complaint:</text> <paragraph num="(1)"> <text>The terms of the agreement shall be put in a written document and signed by all parties; and</text> </paragraph> <paragraph num="(2)"> <text>The complainant shall authorize a withdrawal of the complaint.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Order of the Commission. An agreement resulting from the mediation shall be executed on behalf of the Commission by the Executive Director or designee and shall constitute an order of the Commission as provided by law.</text> </paragraph> <paragraph num="E."> <text>Termination of Mediation Efforts.</text> <paragraph num="(1)"> <text>If no agreement is reached within 20 days of the initial meeting, the mediator shall refer the complaint back to the Commission for processing. The mediator may extend the 20-day period with the consent of the parties.</text> </paragraph> <paragraph num="(2)"> <text>The mediator shall destroy all information gathered during the mediation meeting.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Investigative Process."> <paragraph num="A."> <text>Investigations.</text> <paragraph num="(1)"> <text>Upon the authorization of a complaint, the Executive Director or designee, within 30 days after the filing of the complaint, shall assign, or cause to be assigned, the investigation of the complaint to an investigative unit.</text> </paragraph> <paragraph num="(2)"> <text>Commission staff shall direct and conduct investigations in a manner consistent with State Government Article, §§20-207, 20-1005, and 20-1006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>In determining whether to proceed further with an investigation and in making findings, the Commission staff may consider any evidence provided by the complainant or the respondent as to the following factors:</text> <paragraph num="(a)"> <text>Whether there was an intent to discriminate on the part of the respondent;</text> </paragraph> <paragraph num="(b)"> <text>Whether there was a pattern and practice of discrimination on the part of the respondent;</text> </paragraph> <paragraph num="(c)"> <text>Any actions taken by the respondent to remedy the alleged discrimination;</text> </paragraph> <paragraph num="(d)"> <text>The effectiveness of any prior attempts by the respondent to remedy the discrimination;</text> </paragraph> <paragraph num="(e)"> <text>Whether the respondent has procured goods or services from or otherwise engaged in business with persons or entities of the same protected class as the complainant to an extent sufficient to demonstrate that the respondent has not discriminated against that protected class in the overall context of its business; and</text> </paragraph> <paragraph num="(f)"> <text>Any other evidence considered relevant by the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Commission may request assignment of additional State personnel or outside consultants as may be reasonably necessary or appropriate to conduct an investigation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Systemic Processing.</text> <paragraph num="(1)"> <text>The Executive Director or designee may identify the complaint for systemic processing when the Executive Director or designee determines that:</text> <paragraph num="(a)"> <text>The alleged commercial discrimination or retaliation practices contained in the complaint are pervasive within a particular industry or institutional in nature;</text> </paragraph> <paragraph num="(b)"> <text>The processing of the complaint will involve complex issues, or novel questions of law or fact; or</text> </paragraph> <paragraph num="(c)"> <text>A large number of business entities within a particular industry will be affected.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The determination in §B(1) of this regulation may be based on the facts of the complaint or on information gathered in connection with an investigation.</text> </paragraph> <paragraph num="(3)"> <text>A systemic investigation may focus on:</text> <paragraph num="(a)"> <text>Documenting facts involved in the alleged commercial discrimination or retaliation practice that is the subject of the complaint; and</text> </paragraph> <paragraph num="(b)"> <text>Reviewing other policies and procedures related to the matters under investigation, to ensure their compliance with the commercial nondiscrimination and retaliation requirements of State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Conduct of Investigation.</text> <paragraph num="(1)"> <text>Fact-Finding Conference. The Commission staff may require that the complainant and respondent appear at a fact-finding conference convened to:</text> <paragraph num="(a)"> <text>Define the issues contained in a complaint;</text> </paragraph> <paragraph num="(b)"> <text>Determine which elements are undisputed; and</text> </paragraph> <paragraph num="(c)"> <text>Resolve those issues that can be resolved and ascertain whether or not there is a basis for a negotiated settlement of the complaint.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Request for Information.</text> <paragraph num="(a)"> <text>The Commission staff shall exercise reasonable judgment in seeking relevant evidence from the complainant, the respondent, and as necessary, external sources.</text> </paragraph> <paragraph num="(b)"> <text>The Commission staff shall require the respondent or an external source to promptly provide answers to requests for information that will be used to assist in determining the merits of the allegations contained in the complaint.</text> </paragraph> <paragraph num="(c)"> <text>The request for information shall be accompanied by the following:</text> <paragraph num="(i)"> <text>A copy of the charge; and</text> </paragraph> <paragraph num="(ii)"> <text>The date on which the response shall be submitted.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Additional requests for information may be made to further the investigation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Interrogatories—Content and Response.</text> <paragraph num="(a)"> <text>The Commission staff may serve, upon authorization by the Executive Director or designee, interrogatories on a respondent by registered or certified mail, or by personal service.</text> </paragraph> <paragraph num="(b)"> <text>The interrogatories shall be accompanied by the following:</text> <paragraph num="(i)"> <text>The date by which a response is required, which date may not be less than 30 days after the date on which the interrogatories were delivered to the respondent; and</text> </paragraph> <paragraph num="(ii)"> <text>A statement describing the consequences to the respondent if the respondent fails to answer the interrogatories, as set forth in Regulation .09 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The interrogatories shall be answered within the time prescribed in the accompanying notice and shall be under oath.</text> </paragraph> <paragraph num="(d)"> <text>Time extensions shall be granted for good cause shown and upon a written request submitted to the Commission's Executive Director or designee.</text> </paragraph> <paragraph num="(e)"> <text>Upon a determination that they are relevant or necessary to complete the administrative process, subsequent interrogatories may be authorized and promulgated by the Commission's staff.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Motion to Strike or Exceptions.</text> <paragraph num="(a)"> <text>The respondent may file a motion to strike or exceptions to the interrogatories within the time period set forth in §C(3)(b)(i) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>The motion or exceptions shall state the reason for them and be supported by a memorandum of points and authorities.</text> </paragraph> <paragraph num="(c)"> <text>The Executive Director or designee shall rule on the motion papers without oral argument.</text> </paragraph> <paragraph num="(d)"> <text>If the motion or exceptions are granted, the interrogatories may be limited, modified, or stricken in accordance with the order of the Executive Director or designee.</text> </paragraph> <paragraph num="(e)"> <text>If the motion or exceptions are denied, or if the order of the Executive Director or designee requires the respondent to answer any portion of the interrogatories, the respondent shall be given not more than 10 days from the date of receipt of the order to answer the interrogatories.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Investigatory Subpoena.</text> <paragraph num="(a)"> <text>Pursuant to its authority under State Government Article, §20-1010, Annotated Code of Maryland, Commission staff may issue a subpoena upon written authorization of the Executive Director or designee.</text> </paragraph> <paragraph num="(b)"> <text>If completion of an investigation requires the issuance of a subpoena, the Commission staff may, upon written authorization of the Executive Director or designee, issue a subpoena to compel the:</text> <paragraph num="(i)"> <text>Attendance and testimony of a witness; or</text> </paragraph> <paragraph num="(ii)"> <text>Production of books, papers, records, and documents relevant or necessary to the investigation.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Service of this subpoena shall be made in accordance with State Government Article, §20-1010(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(d)"> <text>The subpoena shall contain the following:</text> <paragraph num="(i)"> <text>The name of the person whose testimony is required;</text> </paragraph> <paragraph num="(ii)"> <text>Identification of the books, papers, records, and documents to be submitted;</text> </paragraph> <paragraph num="(iii)"> <text>The time, date, and location where the person subpoenaed is directed to appear and produce the information sought, which date may not be less than 15 days after the date on which the subpoena was served; and</text> </paragraph> <paragraph num="(iv)"> <text>The signature of the Executive Director authorizing the issuance of the subpoena.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Upon failure by the person subpoenaed to appear, or to produce the requested records, documents, papers, or books, the Executive Director or designee may apply to the circuit court in the city or county having jurisdiction for an order requiring the attendance and testimony of the person subpoenaed, or the production of the requested records, documents, papers, or books.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Confidentiality.</text> <paragraph num="(a)"> <text>In accordance with State Government Article, §20-1101, Annotated Code of Maryland, the Public Information Act, and the Open Meetings Act, the Commission shall protect the confidential nature of information relating to an investigation.</text> </paragraph> <paragraph num="(b)"> <text>Permissive Disclosure of Information. Information relating to an investigation may be disclosed in the following circumstances:</text> <paragraph num="(i)"> <text>Any information may be released at any time if the release has been agreed to in writing by both the complainant and the respondent;</text> </paragraph> <paragraph num="(ii)"> <text>The identity of the complainant may be disclosed to the respondent at any time; and</text> </paragraph> <paragraph num="(iii)"> <text>Information may be disclosed if a party requests a contested case hearing.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Protective Orders.</text> <paragraph num="(i)"> <text>The Commission may issue a protective order for good cause to limit, or otherwise impose conditions on, access by any person to any document in the possession of a party.</text> </paragraph> <paragraph num="(ii)"> <text>A protective order issued under this regulation may include a document in the possession of the State or otherwise in the record that is not a public record and information disclosed in accordance with State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Interrogatories — Default Procedure."> <paragraph num="A."> <text>If, after a respondent has been served with duly authorized interrogatories together with a notice of the consequences of the failure to answer them, the respondent fails either to answer the interrogatories or to file a motion to strike or exceptions to the interrogatories within the time specified, the Executive Director or designee shall serve or cause to be served upon the respondent the following notice:</text> <paragraph num="(1)"> <text>An admission that the interrogatories, if answered, would have established facts consistent with the claim of the complainant; and</text> </paragraph> <paragraph num="(2)"> <text>A waiver of your right to have this Commission conduct further investigation, find whether there is probable cause, make conciliation efforts, or hold a hearing allowing the presentation of any and all defenses to the complaint which you might have otherwise raised.”</text> </paragraph> </paragraph> <paragraph num="B."> <text>Upon failure by the respondent to file full and complete answers to the interrogatories in accordance with this notice, the Executive Director or designee may certify the file and forward it to the general counsel.</text> </paragraph> <paragraph num="C."> <text>The general counsel shall prepare the following for submission to the Office of Administrative Hearings:</text> <paragraph num="(1)"> <text>The case file;</text> </paragraph> <paragraph num="(2)"> <text>A petition seeking a default order; and</text> </paragraph> <paragraph num="(3)"> <text>An affidavit of the Executive Director or designee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The affidavit shall include:</text> <paragraph num="(1)"> <text>A statement that the complainant has filed the allegations of commercial discrimination or retaliation within the time prescribed in the State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>The date of service of the complaint and interrogatories on the respondent;</text> </paragraph> <paragraph num="(3)"> <text>The date of service of any notices requiring an answer to the interrogatories, or extending the time in which to answer;</text> </paragraph> <paragraph num="(4)"> <text>The date of service of the complaint and interrogatories as appears from the return of process;</text> </paragraph> <paragraph num="(5)"> <text>A statement that the respondent has failed to reply to the interrogatories within the time required; and</text> </paragraph> <paragraph num="(6)"> <text>A statement that the respondent has been given notice of the consequences of failure to respond to the interrogatories.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Administrative Determination.</text> <paragraph num="(1)"> <text>An administrative law judge shall determine whether the respondent is in default, issue the appropriate order, and serve a copy of the order on all parties.</text> </paragraph> <paragraph num="(2)"> <text>If the administrative law judge determines that the respondent is not in default, the administrative law judge shall deny the petition and return the case file to the Executive Director or designee for further investigative proceedings.</text> </paragraph> <paragraph num="(3)"> <text>If the administrative law judge determines that the respondent is in default, the administrative law judge may impose any or all of the sanctions set forth in §A of this regulation as the administrative law judge finds appropriate.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Petition to Vacate Default Order.</text> <paragraph num="(1)"> <text>Within 30 days after notice to the respondent of the entry of any default order, the respondent may petition the Commissioners sitting in their appellate capacity, as set forth in COMAR 14.03.01.12, to vacate the order and reopen the case for good cause shown.</text> </paragraph> <paragraph num="(2)"> <text>The respondent's assertion of good cause shall be in the form of an affidavit and shall include full and complete answers to the unanswered interrogatories.</text> </paragraph> <paragraph num="(3)"> <text>Oral argument may not be permitted.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Issuance of Default Order. After the issuance of an order by the administrative law judge imposing sanctions:</text> <paragraph num="(1)"> <text>The case shall be logged in the Commission's official docket book for the purpose of certifying the case for public hearing of the complainant's evidence in support of the allegation of commercial discrimination or retaliation;</text> </paragraph> <paragraph num="(2)"> <text>Finding of probable cause shall be considered made against the respondent; and</text> </paragraph> <paragraph num="(3)"> <text>Failure of conciliation shall be presumed by respondent's default.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Public Hearing.</text> <paragraph num="(1)"> <text>The public hearing to be subsequently held on the merits of the complaint shall be limited to whatever sanctions may be applied pursuant to §A of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The hearing may result in the issuance of a commission order, pursuant to State Government Article, §20-1009(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Completion of Investigation."> <paragraph num="A."> <text>Written Findings.</text> <paragraph num="(1)"> <text>The Commission shall set forth the results of its investigation in a written report entitled “written findings” which shall chronicle the facts found to exist and the conclusions drawn.</text> </paragraph> <paragraph num="(2)"> <text>The Commission staff shall make an initial finding of each allegation stated in the complaint, to include a finding of:</text> <paragraph num="(a)"> <text>Probable cause;</text> </paragraph> <paragraph num="(b)"> <text>No probable cause;</text> </paragraph> <paragraph num="(c)"> <text>False or frivolous;</text> </paragraph> <paragraph num="(d)"> <text>Settled; or</text> </paragraph> <paragraph num="(e)"> <text>Withdrawn.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Except as provided in §A(4) of this regulation, the Commission shall make the initial findings and issue recommendations for appropriate action within 120 calendar days of the receipt of the complaint.</text> </paragraph> <paragraph num="(4)"> <text>The Commission may extend the time limit set forth in §A(3) of this regulation if:</text> <paragraph num="(a)"> <text>Good cause exists; or</text> </paragraph> <paragraph num="(b)"> <text>The parties agree to mediate a settlement to the complaint.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Commission shall serve written findings on all parties to the complaint.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Probable Cause.</text> <paragraph num="(1)"> <text>The Commission shall determine whether, based upon a preponderance of the evidence and the totality of the factual circumstances known at the time of the decision, probable cause exists to believe that a commercial discrimination or retaliation practice has occurred.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall base a probable cause determination on the facts concerning the alleged commercial discrimination or retaliation practice, provided by the complainant, respondent, or otherwise obtained and disclosed during the investigation.</text> </paragraph> <paragraph num="(3)"> <text>If the Commission determines that probable cause exists, the Commission shall notify the complainant and respondent within 5 business days of the issuance of initial findings and recommendations and include an explanation of the reasons justifying the initial findings.</text> </paragraph> </paragraph> <paragraph num="C."> <text>No Probable Cause.</text> <paragraph num="(1)"> <text>If, based upon a preponderance of the evidence, the investigation fails to produce sufficient evidence to find that the alleged commercial discrimination or retaliation occurred, the Commission may issue a finding of no probable cause.</text> </paragraph> <paragraph num="(2)"> <text>If the Commission determines that no probable cause exists, the Commission shall notify the complainant and respondent within 5 business days of the issuance of initial findings and recommendations and include an explanation of the reasons justifying the initial findings.</text> </paragraph> </paragraph> <paragraph num="D."> <text>False or Frivolous Claim.</text> <paragraph num="(1)"> <text>Based upon a preponderance of the evidence, the Commission may issue a finding that the claim is false or frivolous if:</text> <paragraph num="(a)"> <text>The investigation produced sufficient evidence to establish that the complainant knowingly made one or more false or frivolous allegations; and</text> </paragraph> <paragraph num="(b)"> <text>Further investigation does not appear likely to produce sufficient evidence that the alleged commercial discrimination or retaliation occurred.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the Commission determines that the claim is false or frivolous, the Commission shall notify the complainant and respondent within 5 business days of the issuance of initial findings and recommendations and include an explanation of the reasons justifying the initial findings.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Recommendation for Appropriate Action.</text> <paragraph num="(1)"> <text>Upon completion of the investigation, the Commission staff shall recommend to the Commission the appropriate action to be taken.</text> </paragraph> <paragraph num="(2)"> <text>Commission staff may recommend the following actions:</text> <paragraph num="(a)"> <text>Additional investigation of the complaint;</text> </paragraph> <paragraph num="(b)"> <text>The Commission's adoption of the initial findings rendered by the Commission staff;</text> </paragraph> <paragraph num="(c)"> <text>Imposition of sanctions;</text> </paragraph> <paragraph num="(d)"> <text>Imposition of remedies; or</text> </paragraph> <paragraph num="(e)"> <text>Other action consistent with State Finance and Procurement Article, §19-108(d), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In determining appropriate action on a commercial discrimination claim, the Commission may take into account evidence provided or discovered in the course of the investigation regarding:</text> <paragraph num="(a)"> <text>The impact of the discrimination on affected parties;</text> </paragraph> <paragraph num="(b)"> <text>The impact of any authorized remedy on the State or any other party;</text> </paragraph> <paragraph num="(c)"> <text>Actions taken by the respondent to remedy the alleged discrimination;</text> </paragraph> <paragraph num="(d)"> <text>The effectiveness of any prior attempts by the respondent to remedy the discrimination;</text> </paragraph> <paragraph num="(e)"> <text>Whether the respondent has procured goods or services from or otherwise engaged in business with persons or entities of the same protected class as the complainant to an extent sufficient to demonstrate that the respondent has not discriminated against that protected class in the overall context of its business;</text> </paragraph> <paragraph num="(f)"> <text>The number and scope of prior violations of this policy by the respondent; and</text> </paragraph> <paragraph num="(g)"> <text>Any other evidence determined to be relevant by the Commission.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Unless a contested case hearing is requested in accordance with Regulation .12 of this chapter, the Commission's findings and recommendations shall become the final administrative decision of the State, subject to judicial review pursuant to Regulation .16 of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Reconsideration.</text> <paragraph num="(1)"> <text>If the findings conclude that there is no probable cause to believe that a discriminatory or retaliatory act has been or is being committed, the complainant shall be given the opportunity to apply to the Commission's Executive Director or designee for reconsideration of the Commission's written findings and recommendations.</text> </paragraph> <paragraph num="(2)"> <text>Reconsideration Process.</text> <paragraph num="(a)"> <text>The application and authority shall be in writing and shall state specifically the grounds upon which it is based.</text> </paragraph> <paragraph num="(b)"> <text>The application and authority shall be filed with the Executive Director or designee within 15 days from the date on which the findings were mailed to the complainant.</text> </paragraph> <paragraph num="(c)"> <text>The Commission shall promptly give the respondent written notice that the complainant has requested reconsideration.</text> </paragraph> <paragraph num="(d)"> <text>Not later than 30 days after receipt of an application, the Executive Director or designee shall review the entire file, including the request for reconsideration, and may:</text> <paragraph num="(i)"> <text>Grant or deny the application for reconsideration; and</text> </paragraph> <paragraph num="(ii)"> <text>Issue an order the Executive Director or designee considers appropriate.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Not later than 30 days after making a determination, the Executive Director or designee shall notify the complainant and respondent in writing of the determination, and do one of the following:</text> <paragraph num="(i)"> <text>If the application for reconsideration is granted, remand the matter to the investigative staff for the appropriate action; or</text> </paragraph> <paragraph num="(ii)"> <text>If the application for reconsideration is not granted, administratively close the case.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The times set forth in §F of this regulation may be extended by the Executive Director or designee for good cause.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Conciliation Process."> <paragraph num="A."> <text>Upon a written finding of probable cause, the Commission, the complainant, and the respondent shall enter the conciliation process.</text> </paragraph> <paragraph num="B."> <text>Written notice of the opportunity to conciliate shall be provided to the parties.</text> </paragraph> <paragraph num="C."> <text>Termination of Conciliation Efforts—Respondent's Actions.</text> <paragraph num="(1)"> <text>The Commission may terminate its efforts to conciliate if a respondent fails or refuses to:</text> <paragraph num="(a)"> <text>Confer with Commission staff; or</text> </paragraph> <paragraph num="(b)"> <text>Negotiate in good faith to resolve the dispute.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the prerequisites listed in §C(1) of this regulation are met, the Executive Director or designee may:</text> <paragraph num="(a)"> <text>Terminate the efforts to conciliate;</text> </paragraph> <paragraph num="(b)"> <text>Notify the parties that conciliation has failed; and</text> </paragraph> <paragraph num="(c)"> <text>Certify the case for public hearing as set forth in Regulation .13 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Termination of Conciliation Efforts—Complainant's Actions.</text> <paragraph num="(1)"> <text>The Executive Director or designee may administratively close a case if the complainant:</text> <paragraph num="(a)"> <text>Fails to negotiate in good faith; or</text> </paragraph> <paragraph num="(b)"> <text>Rejects an offer of settlement or compromise made by the respondent, in a formal offer of settlement, which provides the complainant with the full relief which is available under State Finance and Procurement Article, §§19-108(d) and 19-110, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Before administratively closing the case, the Executive Director or designee shall:</text> <paragraph num="(a)"> <text>Provide written notice to the complainant;</text> </paragraph> <paragraph num="(b)"> <text>Give the complainant 15 days after the mailing of the notice to object in writing and give reasons why the case should not be administratively closed;</text> </paragraph> <paragraph num="(c)"> <text>Consider the objections filed by the complainant;</text> </paragraph> <paragraph num="(d)"> <text>Administratively close the case, if no objections are filed; and</text> </paragraph> <paragraph num="(e)"> <text>Promptly notify both the complainant and the respondent of the determination.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Prohibitions and Requirements—Disclosure of Information Obtained During Conciliation.</text> <paragraph num="(1)"> <text>Except as provided in §E(2) of this regulation, nothing that is said or done in the course of conciliation under this regulation shall be made public or used as evidence in a subsequent administrative hearing under State Finance and Procurement Article, §19-109, Annotated Code of Maryland, without written consent of the persons concerned or as otherwise permitted by law.</text> </paragraph> <paragraph num="(2)"> <text>Conciliation agreements shall be made public unless:</text> <paragraph num="(a)"> <text>The aggrieved person and respondent request nondisclosure; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission determines that disclosure is not required to further the purposes of State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Notwithstanding a determination that disclosure of a conciliation agreement is not required, the Commission may publish tabulated descriptions of the results of all conciliation efforts.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Review of Compliance with Conciliation Agreement.</text> <paragraph num="(1)"> <text>The Commission may review compliance with the terms of any conciliation agreement.</text> </paragraph> <paragraph num="(2)"> <text>Whenever the Commission has reasonable cause to believe that a respondent has breached a conciliation agreement, the Commission general counsel may file a civil action for the enforcement of the terms of the conciliation agreement.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Order of the Commission. An agreement resulting from conciliation shall be executed on behalf of the Commission by the Executive Director or designee and shall constitute a final order of the Commission as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Request for Contested Case Hearing."> <paragraph num="A."> <text>Who May Request. A request to submit a matter to an administrative hearing as a contested case hearing under this chapter may be made by a:</text> <paragraph num="(1)"> <text>Respondent upon a Commission determination of probable cause for one or more of the allegations stated in the complaint against the respondent, and the failure of timely conciliation; or</text> </paragraph> <paragraph num="(2)"> <text>Complainant if the Commission determines that one or more allegations contained in the complaint were knowingly false or frivolous when made.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Manner of Request.</text> <paragraph num="(1)"> <text>A party shall request a contested case hearing by filing a written notice with the Commission within 15 calendar days of notice of the initial findings and recommendations.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall contain the following information:</text> <paragraph num="(a)"> <text>A demand that the matter be referred to the Office of Administrative Hearings for a contested case hearing in accordance with State Government Article, §10-205(c)(2), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>The names, addresses, and telephone numbers of the Commission, the business entity's representatives, and any other parties;</text> </paragraph> <paragraph num="(c)"> <text>A reference to State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(d)"> <text>A summary of the Commission's findings and recommendations that are being submitted for resolution to the administrative law judge for the contested case hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The requesting party shall immediately serve notice of the request for a contested case hearing upon all other parties.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Failure to Properly Request Hearing.</text> <paragraph num="(1)"> <text>If a respondent fails to properly request a contested case hearing:</text> <paragraph num="(a)"> <text>The initial findings and recommendations of the Commission shall become the final administrative decision of the State; and</text> </paragraph> <paragraph num="(b)"> <text>The Commission shall then be authorized to enter any order and to take any action reasonably necessary or convenient to:</text> <paragraph num="(i)"> <text>Implement remedies under State Finance and Procurement Article, §19-110, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>Impose sanctions under State Finance and Procurement Article, §19-111, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(iii)"> <text>Govern the conduct of the parties in the manner described under State Finance and Procurement Article, §19-112, Annotated Code of Maryland, so that the purposes of the commercial nondiscrimination policy are achieved.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a complainant fails to properly request a contested case hearing regarding a determination that a claim is false or frivolous, the initial findings and recommendations of the Commission shall become the final administrative decision of the State.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When a Request for Contested Case Hearing Is Not Made.</text> <paragraph num="(1)"> <text>If a timely contested case hearing is not requested, the Commission may vacate the Commission staff's recommended remedy on written notice to all parties within 5 business days after the time for requesting a contested case hearing has expired.</text> </paragraph> <paragraph num="(2)"> <text>In the absence of such notice as described in §D(1) of this regulation, the Commission is considered to have approved the Commission staff's recommended remedy.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Certification for Hearing and Preliminary Proceedings."> <paragraph num="A."> <text>Certification of File.</text> <paragraph num="(1)"> <text>Upon receipt of a request for a contested case hearing, the Executive Director or designee shall certify the case for public hearing.</text> </paragraph> <paragraph num="(2)"> <text>An entry identifying this case shall be logged in the Commission's official docket book, which shall be maintained by the Executive Director for cases pending public hearing.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director or designee shall forward the certified file to the Commission's General Counsel for further processing.</text> </paragraph> <paragraph num="(4)"> <text>The General Counsel, on review of a file so certified, may remand the case to the Executive Director or designee for:</text> <paragraph num="(a)"> <text>Further investigation and, in this case, shall state clearly the issues requiring further investigative proceedings; or</text> </paragraph> <paragraph num="(b)"> <text>Review of the findings and, in this case, shall state clearly the reason for the review.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Statement of Charges.</text> <paragraph num="(1)"> <text>For each contested case hearing properly requested, the Commission shall:</text> <paragraph num="(a)"> <text>File a statement of charges with the Office of Administrative Hearings; and</text> </paragraph> <paragraph num="(b)"> <text>Request a hearing before an administrative law judge in a manner consistent with the requirements of COMAR 28.02.01.04.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The statement of charges shall contain:</text> <paragraph num="(a)"> <text>An allegation that the person on whose behalf the complaint is being issued is a proper complainant within the meaning of State Finance and Procurement Article, §19-106, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>An allegation that the respondent is the proper respondent within the meaning of, and subject to provisions of State Finance and Procurement Article, §19-102, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>A factual allegation or allegations of an unlawful commercial discrimination or retaliation practice or practices; and</text> </paragraph> <paragraph num="(d)"> <text>A request for relief sought.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Answer.</text> <paragraph num="(1)"> <text>Any answer made to the statement of charges shall be filed within 15 days after service of the statement of charges.</text> </paragraph> <paragraph num="(2)"> <text>Upon application in writing to the administrative law judge before the end of the 15 days, the administrative law judge may extend the time within which the answer may be filed upon a showing of good cause.</text> </paragraph> <paragraph num="(3)"> <text>The answer shall be filed with the Office of Administrative Hearings and the original of the answer shall be signed under oath or affirmation of the respondent and shall contain:</text> <paragraph num="(a)"> <text>The name and address of the respondent;</text> </paragraph> <paragraph num="(b)"> <text>The name, address, and telephone number of the respondent's attorney, if any;</text> </paragraph> <paragraph num="(c)"> <text>A specific admission, denial, or assertion that the respondent is without sufficient knowledge or information to form a belief with respect to each and every allegation of the complaint;</text> </paragraph> <paragraph num="(d)"> <text>A statement of any matter constituting a defense to any allegations in the statement of charges; and</text> </paragraph> <paragraph num="(e)"> <text>A certification that service of this answer has been made upon all other parties.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Any allegation in the statement of charges which is not denied or admitted in the answer is considered admitted, unless the respondent states in the answer that it is without sufficient knowledge or information to form a belief with respect to this allegation.</text> </paragraph> <paragraph num="(5)"> <text>Any allegation of new matter contained in the answer is considered denied without the necessity of a reply being filed, unless a reply is ordered by the administrative law judge conducting the hearing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Administrative Hearing Proceedings."> <paragraph num="A."> <text>General Information.</text> <paragraph num="(1)"> <text>Scope. This regulation applies only to an administrative law judge adjudication of a request for a contested case hearing filed in accordance with Regulation .12 of this chapter pursuant to State Finance and Procurement Article, §19-109, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Venue. The Commission may designate the venue for the contested case hearing, taking into consideration the convenience of the parties and the location of the evidence.</text> </paragraph> <paragraph num="(3)"> <text>Burden of Proof. The Commission shall bear the burden of proof by a preponderance of the evidence.</text> </paragraph> <paragraph num="(4)"> <text>The Office of Administrative Hearings shall conduct a contested case hearing in accordance with its rules of procedure under COMAR 28.02.01.</text> </paragraph> <paragraph num="(5)"> <text>Time Computation.</text> <paragraph num="(a)"> <text>Time computations under this regulation shall be in accordance with Article 1, §36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>Except for time periods required by statute, the administrative law judge may enlarge or reduce any time period required under this regulation when necessary to avoid prejudicing the public interest or the rights of the parties.</text> </paragraph> <paragraph num="(c)"> <text>In computing any time period involved, the date of issuance of an order or decision by an administrative law judge is the date the order or decision is served by the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(d)"> <text>A document is not filed until received by the Office of Administrative Hearings.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Service and Filing.</text> <paragraph num="(a)"> <text>Service of a document under this regulation shall be in accordance with COMAR 28.02.01.24.</text> </paragraph> <paragraph num="(b)"> <text>A copy of all filed documents shall be served on all parties of record.</text> </paragraph> <paragraph num="(c)"> <text>All filed documents shall clearly state:</text> <paragraph num="(i)"> <text>The docket number, if any;</text> </paragraph> <paragraph num="(ii)"> <text>The title of the proceeding; and</text> </paragraph> <paragraph num="(iii)"> <text>Certificate of service.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>A party shall file all documents with the Office of Administrative Hearings.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Administrative Law Judge.</text> <paragraph num="(1)"> <text>Authority. The powers and duties of an administrative law judge shall be in accordance with COMAR 28.02.01.08A and B.</text> </paragraph> <paragraph num="(2)"> <text>Disqualification. A disqualification of an administrative law judge shall be in accordance with COMAR 28.02.01.08C.</text> </paragraph> <paragraph num="(3)"> <text>Ex Parte Communications. An ex parte communication shall be defined and prohibited in accordance with State Government Article, §10-219, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Parties. Parties to the proceeding shall include:</text> <paragraph num="(1)"> <text>The Commission that files the charge under Regulation .13B of this chapter seeking appropriate relief for an aggrieved party and the public interest;</text> </paragraph> <paragraph num="(2)"> <text>A complainant who is the person who files a complaint of commercial discrimination or retaliation issued under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>A respondent who is the person named in the complaint of commercial discrimination or retaliation issued under Regulation .05 of this chapter against whom relief is sought; and</text> </paragraph> <paragraph num="(4)"> <text>Representation of the parties, which shall be in accordance with COMAR 28.02.01.09.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Pleadings and Motions.</text> <paragraph num="(1)"> <text>Pleadings.</text> <paragraph num="(a)"> <text>Form. Every pleading, motion, brief, or other document shall contain a caption setting forth the:</text> <paragraph num="(i)"> <text>Title of the proceeding;</text> </paragraph> <paragraph num="(ii)"> <text>Case number assigned by the Commission; and</text> </paragraph> <paragraph num="(iii)"> <text>Designation of the type of document, for example, charge, answer, or motion to dismiss.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Signature.</text> <paragraph num="(i)"> <text>Every pleading, motion, brief, or other document filed by a party shall be signed by the party, the party's representative, or the attorney representing the party, and shall include the signer's address and telephone number.</text> </paragraph> <paragraph num="(ii)"> <text>The signature constitutes a certification that the signer has read the document, that to the best of the signer's knowledge, information, and belief there is good ground to support the document, and that it is not interposed for delay.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Motions. All motions to an administrative law judge shall be in accordance with COMAR 28.02.01.16 except as otherwise provided in §G(4) of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Discovery. Discovery shall be conducted in accordance with COMAR 28.02.01.10.</text> </paragraph> <paragraph num="F."> <text>Subpoenas. A subpoena shall be issued in accordance with State Government Article, §20-1010, Annotated Code of Maryland, and COMAR 28.02.01.11.</text> </paragraph> <paragraph num="G."> <text>Prehearing Procedures.</text> <paragraph num="(1)"> <text>Prehearing Conference. A prehearing conference shall be conducted in accordance with COMAR 28.02.01.13.</text> </paragraph> <paragraph num="(2)"> <text>Notice of Prehearing Conference and Hearing.</text> <paragraph num="(a)"> <text>The administrative law judge shall set the matter in for a prehearing conference, hearing, or both, on the earliest date practicable.</text> </paragraph> <paragraph num="(b)"> <text>The administrative law judge shall, by registered or certified mail, forward to the complainant and to the respondent, a statement of the charges and a notice of prehearing conference or hearing, which shall include the following:</text> <paragraph num="(i)"> <text>The place, date, and hour of the prehearing conference, public hearing, or both;</text> </paragraph> <paragraph num="(ii)"> <text>A statement advising both the complainant and respondent of their respective rights to appear and be represented in this hearing in person, by their attorneys, or both, and that the case in support of the complaint shall be presented by the Commission's General Counsel;</text> </paragraph> <paragraph num="(iii)"> <text>A statement advising the respondent of the right to file an answer to the statement of charges; and</text> </paragraph> <paragraph num="(iv)"> <text>The name of the administrative law judge designated to conduct the prehearing conference or hearing, or a statement that an administrative law judge will be subsequently designated.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The administrative law judge shall forward a copy of the notice of prehearing conference, public hearing, or both, to the General Counsel of the Commission.</text> </paragraph> <paragraph num="(d)"> <text>The prehearing conference, public hearing, or both, may not occur less than 20 or more than 60 days after the issuance and service of the statement of charges and notice of prehearing conference, public hearing, or both.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Prehearing Memorandum.</text> <paragraph num="(a)"> <text>Before the commencement of a prehearing conference, the administrative law judge may direct parties to file a prehearing memorandum.</text> </paragraph> <paragraph num="(b)"> <text>Contents of Memorandum. The memorandum shall state the name of the party or parties presenting the statement and, unless otherwise directed by the administrative law judge, briefly set forth the following:</text> <paragraph num="(i)"> <text>Issues involved in the proceeding;</text> </paragraph> <paragraph num="(ii)"> <text>Facts stipulated by the parties and a statement that the parties have made a good faith effort to stipulate to the greatest extent possible;</text> </paragraph> <paragraph num="(iii)"> <text>Facts in dispute;</text> </paragraph> <paragraph num="(iv)"> <text>Witnesses and exhibits to be presented at the hearing;</text> </paragraph> <paragraph num="(v)"> <text>A brief statement of applicable law;</text> </paragraph> <paragraph num="(vi)"> <text>Conclusions to be drawn;</text> </paragraph> <paragraph num="(vii)"> <text>Estimated time required for presentation of the party's case; and</text> </paragraph> <paragraph num="(viii)"> <text>Such other information as may assist in the disposition of the proceeding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Preliminary Matters—Motions.</text> <paragraph num="(a)"> <text>All preliminary matters shall be raised by motion filed at either the prehearing conference or not later than 45 days before the public hearing.</text> </paragraph> <paragraph num="(b)"> <text>The motion shall be in writing, stating briefly the relief applied for, with a memorandum stating the reasons and any law that may support the motion.</text> </paragraph> <paragraph num="(c)"> <text>The motion and two copies together with a certificate of mailing to all parties shall be filed with the administrative law judge.</text> </paragraph> <paragraph num="(d)"> <text>An answer to a preliminary motion shall be in writing and include:</text> <paragraph num="(i)"> <text>A memorandum stating the reasons and any law that may be in support of the answer; and</text> </paragraph> <paragraph num="(ii)"> <text>Certification that a copy has been mailed to all parties.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>The original and two copies of the answer shall be filed with the administrative law judge within 15 days of receipt of the original motion unless otherwise directed by the administrative law judge.</text> </paragraph> <paragraph num="(f)"> <text>The administrative law judge shall decide all motions without oral argument on the motions, unless the administrative law judge desires oral argument or testimony.</text> </paragraph> <paragraph num="(g)"> <text>If the administrative law judge requests oral arguments, the administrative law judge shall set the date, place, and time, and notify all parties.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Settlement Conference. If required, a settlement conference shall be conducted in accordance with COMAR 28.02.01.14.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Hearing Procedures.</text> <paragraph num="(1)"> <text>Date. All parties shall cooperate in good faith to have the contested case hearing concluded within 180 days after the issuance of a notice for a contested case hearing.</text> </paragraph> <paragraph num="(2)"> <text>Place. The Commission may designate the venue for the contested case hearing, taking into consideration the convenience of the parties and the location of the evidence pursuant to State Finance and Procurement Article, §19-109(d)(1)(ii), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Notice of Hearing. The parties shall be notified of the hearing in accordance with §G(2) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Conduct of Hearing. The hearing shall be conducted in accordance with COMAR 28.02.01.17.</text> </paragraph> <paragraph num="(5)"> <text>Evidence. Evidence shall be admitted in accordance with State Government Article, §10-213, Annotated Code of Maryland, and COMAR 28.02.01.18.</text> </paragraph> <paragraph num="(6)"> <text>Stipulations. The administrative law judge may accept stipulations in accordance with COMAR 28.02.01.15 upon the showing of mutual consent of all parties.</text> </paragraph> <paragraph num="(7)"> <text>Affidavits. The administrative law judge may accept affidavits in accordance with COMAR 28.02.01.15 upon showing:</text> <paragraph num="(a)"> <text>Mutual consent of the parties;</text> </paragraph> <paragraph num="(b)"> <text>The affiant is unavailable to testify; and</text> </paragraph> <paragraph num="(c)"> <text>The party seeking to introduce the affidavit has exercised reasonable diligence to locate the affiant.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Failure to Attend Hearing and Default. The failure of a party to attend a hearing and the subsequent default process shall be in accordance with COMAR 28.02.01.20.</text> </paragraph> <paragraph num="(9)"> <text>Appointment of Interpreter. In situations where an interpreter is required, appointment shall be made in accordance with COMAR 28.02.01.19.</text> </paragraph> <paragraph num="(10)"> <text>Public Hearings. Proceedings under this regulation shall be open to the public in accordance with COMAR 28.02.01.21.</text> </paragraph> <paragraph num="(11)"> <text>Transcript of Hearing Record.</text> <paragraph num="(a)"> <text>The administrative law judge shall cause the testimony taken at the hearing to be transcribed.</text> </paragraph> <paragraph num="(b)"> <text>The transcript, together with all pleadings, exhibits, and other materials introduced into evidence, shall constitute the record of the case as defined in State Government Article, §10-218, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Administrative Decisions and Orders."> <paragraph num="A."> <text>Decision of Administrative Law Judge.</text> <paragraph num="(1)"> <text>In General.</text> <paragraph num="(a)"> <text>At the conclusion of the contested case hearing, the administrative law judge shall issue a written decision and order including findings of fact and conclusions of law upon each material issue of fact and law presented on record.</text> </paragraph> <paragraph num="(b)"> <text>A decision and order of the administrative law judge shall be in accordance with COMAR 28.02.01.22.</text> </paragraph> <paragraph num="(c)"> <text>The written decision may:</text> <paragraph num="(i)"> <text>Affirm or reject all or part of the statement of charges; or</text> </paragraph> <paragraph num="(ii)"> <text>Substitute different findings and recommend appropriate remedies.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The administrative law judge shall base the decision solely on a preponderance of the evidence contained in the record of the contested case hearing and shall reflect the evidentiary basis for its findings.</text> </paragraph> <paragraph num="(e)"> <text>An administrative law judge may consider any evidence regarding the factors described in Regulation .08A(3) of this chapter when determining whether to sustain an allegation presented in a statement of charges.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Finding Against Complainant—False or Frivolous Complaint. If the administrative law judge finds that the complainant knowingly made a false or frivolous allegation, the administrative law judge shall make an initial decision dismissing the charge and order such relief as may be appropriate.</text> </paragraph> <paragraph num="(3)"> <text>Finding Against Respondent.</text> <paragraph num="(a)"> <text>If the administrative law judge affirms all or part of an allegation contained in the statement of charges, the administrative law judge may take additional evidence on the appropriate remedy to be recommended pursuant to State Finance and Procurement Article, §19-110(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>The administrative law judge may consider:</text> <paragraph num="(i)"> <text>Evidence relating to the factors described in Regulation .10E(3) of this chapter; and</text> </paragraph> <paragraph num="(ii)"> <text>Other evidence considered relevant by the administrative law judge.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Recommendations for Appropriate Action. If the administrative law judge affirms all or part of an allegation contained in the statement of charges, the administrative law judge may order any one or more of the following actions:</text> <paragraph num="(i)"> <text>Any remedy agreed upon by the respondent, complainant and the Commission;</text> </paragraph> <paragraph num="(ii)"> <text>Referral of the complainant to the Board of Public Works for a determination of disbarment pursuant to State Finance and Procurement Article, §§16-306 and 16-307, Annotated Code of Maryland, to preclude the business entity from bidding on or receiving contract awards on State projects, and participating in State contracts as a subcontractor, vendor, or supplier for a period of not more than 3 years;</text> </paragraph> <paragraph num="(iii)"> <text>Rescission, suspension, or termination of any current contract between the respondent and the State under the terms of that contract;</text> </paragraph> <paragraph num="(iv)"> <text>Exercise any other rights or remedies available to the State under any current contract between the respondent and the State;</text> </paragraph> <paragraph num="(v)"> <text>Finding that the respondent is not a “responsible bidder” within the meaning of State Finance and Procurement Article, §11-101(r), Annotated Code of Maryland, with respect to specific contracts that the State has put out for bids or intends to put out for bids;</text> </paragraph> <paragraph num="(vi)"> <text>Referral of the matter for criminal prosecution of fraud and other violations under State law if appropriate under the circumstances; or</text> </paragraph> <paragraph num="(vii)"> <text>Mediation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Finding in Favor of Respondent. If the administrative law judge determines that the respondent has not engaged in an unlawful act of commercial discrimination or retaliation, the administrative law judge shall make an initial decision dismissing the charge.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Service of Decision. The decision of the administrative law judge shall be delivered to all parties with a notice indicating the right of any party to appeal the decision in accordance with State Finance and Procurement Article, §19-113, Annotated Code of Maryland, and Regulation .16 of this chapter.</text> </paragraph> <paragraph num="C."> <text>Final Decision and Order.</text> <paragraph num="(1)"> <text>The written opinion of the administrative law judge shall become the final administrative decision of the State, subject to judicial review pursuant to Regulation .16 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>On issuance of the final decision, the Commission or the administrative law judge may enter any order reasonably necessary or convenient to govern the conduct of the State and the parties so that the purposes of the commercial nondiscrimination policy are achieved.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Costs.</text> <paragraph num="(1)"> <text>Notwithstanding any contrary provision contained in these regulations or State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, each party shall bear the costs of its own legal representation and expert witness fees.</text> </paragraph> <paragraph num="(2)"> <text>If the administrative law judge finds that one or more allegations giving rise to the Commission's findings or the respondent's challenge to the findings were knowingly false or frivolous when made, the administrative law judge may require the party who made the knowingly false or frivolous allegations to bear all or a portion of the other party's legal fees and expert witness fees.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Applicable Provisions. To the extent that procedures and standards stated in this regulation differ from those contained in Title 10, Subtitle 2 of the State Government Article, these regulations shall govern, but in all other respects, the provisions in the State Government Article shall govern.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Judicial Review and Enforcement of Final Decision and Order."> <paragraph num="A."> <text>Judicial Review of Final Decision and Order. Any party who, after having exhausted all administrative remedies available, is aggrieved by a final decision of the Commission or the administrative law judge issued under this chapter may seek judicial review pursuant to State Government Article, §10-222, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Enforcement of Final Decision and Order. Following the issuance of a final decision and order under this chapter, the Commission’s General Counsel may petition the appropriate circuit court for the enforcement of the final decision and order and for appropriate temporary relief or restraining order in accordance with State Government Article, §20-1011, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Required Language in State Contracts."> <text>Every contract that the State enters into shall contain the commercial nondiscrimination policy clause, as written in State Finance and Procurement Article, §19-116, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".18" heading="Public Information Act Requests."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>This regulation sets out the procedures for filing requests with the Maryland Commission on Human Relations for the inspection and copying of records under the Public Information Act, State Government Article, §§10-611—10-630, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>It is the policy of the Commission to facilitate public access to records of the Commission, if that access is allowed by law, by minimizing costs and time delays to persons requesting information.</text> </paragraph> <paragraph num="(3)"> <text>It is the policy of the Commission to safeguard and preserve the confidentiality of investigations of complaints made under State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, by restricting access to records when access is prohibited or restricted by law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, State Government Article, §§10-611—10-628, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a person requesting disclosure of public records.</text> </paragraph> <paragraph num="(3)"> <text>“Commission” means the Maryland Commission on Human Relations.</text> </paragraph> <paragraph num="(4)"> <text>Custodian or Official Custodian.</text> <paragraph num="(a)"> <text>“Custodian” or “official custodian” means the person who is responsible for maintenance, care, and keeping of the public records of the Commission.</text> </paragraph> <paragraph num="(b)"> <text>Unless otherwise provided by law, the Executive Director or designee is the official custodian of the Commission's records.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Executive Director” means the Executive Director of the Maryland Commission on Human Relations, or designee.</text> </paragraph> <paragraph num="(6)"> <text>“Investigative case file” means any record, regardless of physical form, generated or received by Commission staff during the course of the investigation until the stage of public hearing of a complaint alleging a violation of the Commercial Nondiscrimination Policy pursuant to State Finance and Procurement Article, §§19-101—19-120, Annotated Code of Maryland, including the complaint itself and any documents indicating the identity of a complainant or respondent.</text> </paragraph> <paragraph num="(7)"> <text>“Public hearing” means any public hearing or trial before either the Office of Administrative Hearings or any federal or State court of law.</text> </paragraph> <paragraph num="(8)"> <text>Public Record.</text> <paragraph num="(a)"> <text>“Public record” means all papers, correspondence, forms, books, photographs, photostats, films, microfilms, sound recordings, video recordings, maps, drawings, or other written documents, regardless of physical form or characteristics.</text> </paragraph> <paragraph num="(b)"> <text>“Public record” includes all copies made or received by the Commission in connection with “investigative case files” as defined in §B(6) of this regulation, and as set forth in Regulation .19E of this chapter.</text> </paragraph> <paragraph num="(c)"> <text>“Public record” includes salaries of all employees of the Commission.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Working day” means a day other than Saturday, Sunday, or a State holiday.</text> </paragraph> <paragraph num="(10)"> <text>“Written document” means all books, papers, maps, photographs, cards, tapes, recordings, computerized records, and other documentary material, regardless of physical form or characteristics.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Retention of Investigative Case Files.</text> <paragraph num="(1)"> <text>The custodian shall maintain, as a public record of the Commission, all documents made or received by the Commission contained in the investigative case files, for a period of 18 months from the date of final disposition.</text> </paragraph> <paragraph num="(2)"> <text>Final disposition means the:</text> <paragraph num="(a)"> <text>Commission has found no probable cause, or has otherwise terminated the investigation;</text> </paragraph> <paragraph num="(b)"> <text>Administrative law judge has rendered their decision; or</text> </paragraph> <paragraph num="(c)"> <text>Time to request judicial review pursuant to Regulation .16 of this chapter has passed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Records Temporarily Unavailable. If a requested public record is in the custody or under the control of the person to whom written application is made but is not immediately available for inspection or copying, the custodian shall, within 10 working days of receipt of the request, so notify the applicant and set a date and hour within a reasonable time for inspection or copying.</text> </paragraph> <paragraph num="E."> <text>Records Destroyed or Lost. If a requested record has been destroyed or lost, the custodian to whom written application is made shall, within 10 working days of receipt of the request, notify the applicant of this fact and explain in the response the reasons why the record cannot be produced.</text> </paragraph> <paragraph num="F."> <text>Who May Request. Any person may request to inspect or copy a public record of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Application and Processing of Public Information Act Requests."> <paragraph num="A."> <text>Applications.</text> <paragraph num="(1)"> <text>A person or governmental unit that wishes to inspect a public record shall submit a written application to the custodian.</text> </paragraph> <paragraph num="(2)"> <text>If the individual to whom the application is submitted is not the custodian of the record, within 10 working days after receiving the application, the individual shall give the applicant notice of that fact and, if known, shall provide the name of the custodian and the location or possible location of the public record.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Contents of Written Application. A written application shall contain the applicant's name and address, shall be signed by the applicant, and shall reasonably identify by brief description the record sought.</text> </paragraph> <paragraph num="C."> <text>Response to Written Application.</text> <paragraph num="(1)"> <text>Granting of Request. If the custodian decides to grant a written application for inspection, the custodian shall produce the record for inspection immediately or within a reasonable period that is needed to retrieve the public record, not to exceed 30 days from the date of the application.</text> </paragraph> <paragraph num="(2)"> <text>Denial of Request.</text> <paragraph num="(a)"> <text>If the custodian denies the application, the custodian immediately shall notify the applicant and within 10 working days, give the applicant a written statement that states the reason for the denial, the legal authority for the denial, and notice of the remedies under State Government Article, §§10-622 and 10-623, Annotated Code of Maryland, for review of denial.</text> </paragraph> <paragraph num="(b)"> <text>The custodian shall permit inspection of any part of the record that is subject to inspection and reasonably severable from the material to which access is denied by the custodian.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Request Made to an Individual Who Is Not the Custodian of the Request Record.</text> <paragraph num="(a)"> <text>If a requested public record is not in the custody or control of the person to whom written application is made, that person shall, within 10 working days of the receipt of the request, notify the applicant.</text> </paragraph> <paragraph num="(b)"> <text>If the person to whom the application is made knows the name of the custodian of the record or the location or possible location of the record sought, this information also shall be given to the applicant.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>With the consent of the applicant, any time limit imposed under this section may be extended for not more than 30 days.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notification of Persons Who May Be Affected by Disclosure.</text> <paragraph num="(1)"> <text>Unless prohibited by law, the custodian may notify any person who could be adversely affected by disclosure that an application for inspection or copying of the record has been made.</text> </paragraph> <paragraph num="(2)"> <text>The custodian may consider the comments of that person before deciding whether to disclose the record of the applicant.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Precertification Production of Investigative Case Files.</text> <paragraph num="(1)"> <text>Pursuant to State Government Article, §20-1101, Annotated Code of Maryland, during the investigation of any complaint alleging a violation of State Government Article, §§20-301—305, 20-602, 20-606—20-607, 20-705—20-706, and 20-901—20-902, Annotated Code of Maryland, and until the matters reach the stage of public hearings, the Commission is required to hold confidential any information in relation to investigative case files.</text> </paragraph> <paragraph num="(2)"> <text>Release of Information.</text> <paragraph num="(a)"> <text>Any request for information relating to investigative files before the charge has reached the public hearing stage shall be denied, except those made pursuant to provisions of State Government Article, §20-1101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>Any information may be released at any time if the release has been agreed to in writing by both complainant and respondent.</text> </paragraph> <paragraph num="(c)"> <text>The identity of the complainant may be disclosed to the respondent at any time.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Certified Investigative Case Files.</text> <paragraph num="(1)"> <text>The custodian may deny inspection of:</text> <paragraph num="(a)"> <text>Cases which have been certified for public hearings under Regulation .13 of this chapter, and any other requests for information, in accordance with State Government Article, §10-618, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>An investigative case file or other document if the custodian believes it would be against public interest, subject to the provisions of §E(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The custodian may deny inspection by a person in interest only to the extent it would:</text> <paragraph num="(a)"> <text>Interfere with a valid and proper law enforcement proceeding;</text> </paragraph> <paragraph num="(b)"> <text>Deprive another person of a right to a fair trial or an impartial adjudication;</text> </paragraph> <paragraph num="(c)"> <text>Constitute an unwarranted invasion of personal privacy;</text> </paragraph> <paragraph num="(d)"> <text>Disclose the identity of a confidential source;</text> </paragraph> <paragraph num="(e)"> <text>Disclose an investigative technique or procedure;</text> </paragraph> <paragraph num="(f)"> <text>Prejudice an investigation; or</text> </paragraph> <paragraph num="(g)"> <text>Endanger the life or physical safety of an individual.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Privileged Information. A person may not inspect or copy any information which is privileged by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Review of the Denial of Public Information Act Requests."> <paragraph num="A."> <text>Request for Review.</text> <paragraph num="(1)"> <text>If a written application is denied by the custodian for a reason other than the record is temporarily unavailable, the applicant may, within 30 days after receipt of the notice of the denial, request administrative review of the denial, as described in §A(2) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>An applicant shall request administrative review of denial of application for information by filing a written request within 30 days of the denial with the Chairperson of the Commission on Human Relations.</text> </paragraph> <paragraph num="(3)"> <text>In the written request for review, the applicant shall:</text> <paragraph num="(a)"> <text>State their name;</text> </paragraph> <paragraph num="(b)"> <text>Sign the request;</text> </paragraph> <paragraph num="(c)"> <text>Identify, by brief description, the record sought; and</text> </paragraph> <paragraph num="(d)"> <text>Include a copy of the writing from the custodian denying the request.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The chairperson shall issue the final decision of the Commission within 60 days of the request for review, unless the applicant requests a hearing as described in §A(5) of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Request for Administrative Hearing.</text> <paragraph num="(a)"> <text>If the applicant requests a hearing, the hearing shall be conducted by an administrative law judge designated by the chairperson.</text> </paragraph> <paragraph num="(b)"> <text>The hearing shall be governed by the Commission's rules of procedure pursuant to COMAR 14.03.01.11G.</text> </paragraph> <paragraph num="(c)"> <text>After the hearing, the administrative law judge shall prepare a recommended decision for the chairperson.</text> </paragraph> <paragraph num="(d)"> <text>The chairperson shall issue the final decision of the Commission within 60 days of the date of the hearing.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Request for Judicial Enforcement. If the applicant chooses not to request administrative review under §A(1) of this regulation, the applicant may file an action for judicial enforcement under State Government Article, §10-623, Annotated Code of Maryland, without exhausting that administrative remedy, as provided by State Government Article, §§10-622 and 10-623, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Disclosure Against Public Interest.</text> <paragraph num="(1)"> <text>If, in the opinion of the Executive Director, disclosure of a public record that is otherwise required to be disclosed under the Act would do substantial injury to the public interest, the Executive Director may temporarily deny the request in writing and apply within 10 working days of the denial to the appropriate court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of an application filed with the circuit court shall be served on the applicant in the manner that is provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Fees.</text> <paragraph num="(1)"> <text>The custodian shall provide copies, printouts, or photographs only upon payment of the applicable fee by the applicant.</text> </paragraph> <paragraph num="(2)"> <text>The fees to be charged for any copies, printouts, or photographs shall be established by the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>If the custodian is unable to copy a record within the Commission, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Commission.</text> </paragraph> <paragraph num="(4)"> <text>In a case as described in §C(3) of this regulation, the custodian shall either collect from the applicant a fee to cover the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="(5)"> <text>Before copying a record, the custodian shall estimate the cost of reproduction and either obtain the agreement of the applicant to pay the costs or demand prepayment of any estimated fee before reproducing the record.</text> </paragraph> <paragraph num="(6)"> <text>The official custodian may charge reasonable fees for an official's or employee's time expended searching for requested records or for any time expended preparing records for inspection and copying, except for the first 2 hours of official or employee time that is needed to respond to a request for information.</text> </paragraph> <paragraph num="(7)"> <text>Fee Waiver or Reduction.</text> <paragraph num="(a)"> <text>Upon request, the official custodian may waive or reduce any fee charged pursuant to this section if the custodian determines that the waiver or reduction is in the public interest.</text> </paragraph> <paragraph num="(b)"> <text>The custodian shall consider, among other relevant factors, the ability of the applicant to pay the costs or fee.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>If the applicant requests that copies be mailed or delivered to the applicant, the custodian may charge the applicant for the costs of postage or delivery to the applicant.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Time of Inspection. An applicant may inspect any public record that the applicant is entitled to inspect during the normal working hours of the Commission.</text> </paragraph> <paragraph num="E."> <text>Place of Inspection. The place of inspection shall be the place where the document is located unless the custodian, after taking into account the applicant's expressed wish, determines another place of inspection is more suitable and convenient.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Finance and Procurement Article, §§19-106—19-110, 19-116, and 19-119; State Government Article, §10-204; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 7, 2008 (35:7 Md. R. 750)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01D amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A, C amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A, H amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14F amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15C amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16B amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19E amended effective April 18, 2011 (38:8 Md. R. 507)</annotation> </annotations> </chapter> </subtitle> <subtitle num="04" heading="Maryland Technology Development Corporation"> <chapter num="01" heading="Definitions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>Except as otherwise provided in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Economic Development Article, Title 10, Subtitle 4, Annotated Code of Maryland, and Title 10, Subtitle 4A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a business that applies for an investment from TEDCO.</text> </paragraph> <paragraph num="(3)"> <text>“Board” means the Board of Directors of TEDCO.</text> </paragraph> <paragraph num="(4)"> <text>“Business” means an enterprise for profit, including a partnership, a limited partnership, a corporation, or a limited liability company.</text> </paragraph> <paragraph num="(5)"> <text>“Bylaws” means the bylaws of TEDCO.</text> </paragraph> <paragraph num="(6)"> <text>Capital Investment.</text> <paragraph num="(a)"> <text>“Capital investment” means an expenditure by a business for the purchase, improvement, or maintenance of a long-term asset providing value for more than a year to enhance the growth potential of the business.</text> </paragraph> <paragraph num="(b)"> <text>“Capital investment” includes land and buildings, construction, improvements, furniture and fixtures, machines, computing, vehicles, software development, software, branding, intellectual property, patents, product development, copyrights, franchise rights, and licenses.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Chief Executive Officer” means the individual who is named as the Chief Executive Officer of TEDCO by the TEDCO Board and employed by TEDCO.</text> </paragraph> <paragraph num="(8)"> <text>Debt.</text> <paragraph num="(a)"> <text>“Debt” means a debt security.</text> </paragraph> <paragraph num="(b)"> <text>“Debt” includes a convertible note.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Economic disadvantage” means the impairment of the ability to compete in the free enterprise system due to social disadvantage resulting in diminished capital and credit opportunities as compared to others in the same or similar line of business, as such term is interpreted under 13 CFR §124.104.</text> </paragraph> <paragraph num="(10)"> <text>“Early-stage business” means a business that:</text> <paragraph num="(a)"> <text>Except for businesses applying for investment under COMAR 14.04.03 and .04 or as otherwise provided in COMAR 14.04.05, commenced operations not more than 7 years before the date on which the business submits an application for an investment by TEDCO;</text> </paragraph> <paragraph num="(b)"> <text>Has received not more than $30,000,000 in investment by persons other than TEDCO as of the date that the business submits an application for an investment by TEDCO; and</text> </paragraph> <paragraph num="(c)"> <text>Has no more than 250 employees.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Employee” means a full-time or full-time equivalent W-2 reporting worker of a business.</text> </paragraph> <paragraph num="(12)"> <text>Equity Financing.</text> <paragraph num="(a)"> <text>“Equity financing” means the purchase of:</text> <paragraph num="(i)"> <text>Shares, units, or interests in a business; or</text> </paragraph> <paragraph num="(ii)"> <text>Rights to ownership of shares, units, interests, or rights, such as options or warrants, in a business.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Equity financing includes debt financing that is convertible into equity.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Follow-on investment” means TEDCO’s investment in a business in which TEDCO, at the time of the investment, holds debt or equity.</text> </paragraph> <paragraph num="(14)"> <text>“Founder” means an individual who establishes a business by:</text> <paragraph num="(a)"> <text>Assuming a portion of the risk of the business; and</text> </paragraph> <paragraph num="(b)"> <text>Having the initial rights to a portion of the profits of the business.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>Intellectual Property.</text> <paragraph num="(a)"> <text>“Intellectual property” means the intangible value developed by human creativity that is protected by the legal mechanisms of patents, trademarks, copyrights, service marks, trade secrets, mask works, and plant variety protection certificates.</text> </paragraph> <paragraph num="(b)"> <text>“Intellectual property” includes inventions, discoveries, know-how, show-how, processes, unique materials, copyrightable works, original data, and other creative or artistic works that have commercial value.</text> </paragraph> <paragraph num="(c)"> <text>“Intellectual property” also includes the physical embodiments of intellectual effort such as models, machines, devices, designs, apparatus, instrumentation, circuits, computer programs and visualizations, biological materials, chemicals, other compositions or matter, plants, and records of research.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Investment” means equity financing by TEDCO in a qualified business.</text> </paragraph> <paragraph num="(17)"> <text>“Investment Committee” has the meaning stated in §10-401(e) of the Act.</text> </paragraph> <paragraph num="(18)"> <text>“Investment program” means any TEDCO investment program or fund authorized by or under the Act.</text> </paragraph> <paragraph num="(19)"> <text>“Office of the Attorney General” means Office of the Attorney General of Maryland.</text> </paragraph> <paragraph num="(20)"> <text>“Person” has the meaning stated in General Provisions Article, §1-114, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(21)"> <text>“Product” means an item, process, or service for sale that is developed through or relies on technological innovation.</text> </paragraph> <paragraph num="(22)"> <text>“Qualified business” has the meaning stated in §§10-401(g) and 10-487(a)(4) of the Act, except as otherwise stated in this subtitle.</text> </paragraph> <paragraph num="(23)"> <text>“Rural area” has the meaning stated in State Finance and Procurement Article, §2-207, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(24)"> <text>“Rural community” has the meaning stated in State Finance and Procurement Article, §2-207, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(25)"> <text>“Social disadvantage” means subject to racial or ethnic prejudice or cultural bias within American society because of identity as a member of a group and without regard to individual qualities, as such term is interpreted under 13 CFR §124.103.</text> </paragraph> <paragraph num="(26)"> <text>Technology.</text> <paragraph num="(a)"> <text>“Technology” means the application of science for practical purposes.</text> </paragraph> <paragraph num="(b)"> <text>“Technology” includes products and processes that are, or will be, protectable as intellectual property.</text> </paragraph> </paragraph> <paragraph num="(27)"> <text>“Technology-based business” means a business that relies on technology to provide proprietary competitive advantage in the market.</text> </paragraph> <paragraph num="(28)"> <text>TEDCO.</text> <paragraph num="(a)"> <text>“TEDCO” means Maryland Technology Development Corporation established under the Act.</text> </paragraph> <paragraph num="(b)"> <text>For purposes of an investment program, TEDCO includes each entity owned by TEDCO through which investments are made under the investment program.</text> </paragraph> </paragraph> <paragraph num="(29)"> <text>“Workforce” means founders and employees of a business when determining:</text> <paragraph num="(a)"> <text>Whether a business is a qualified business; and</text> </paragraph> <paragraph num="(b)"> <text>The impact or potential impact of an investment on the State, a community in the State, or an area or region of the State.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 under COMAR 14.04.01 Stem Cell Research Commission recodified to be COMAR 14.04.08 Stem Cell Research Commission effective December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted under a new chapter, Definitions effective December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective February 22, 2021 (48:4 Md. R. 178); February 21, 2022 (49:4 Md. R. 302); September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="02" heading="Investment Programs"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>Except as otherwise provided in this subtitle, these regulations prescribe the policies and procedures applicable to all TEDCO investment programs.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>The objective of TEDCO’s investment programs is to foster the growth of early-stage technology-based businesses in the State.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Investment Philosophy and Types of Qualified Business."> <text>TEDCO seeks and makes investments that align the objectives of economic development in the State and return on investment. The balance of these objectives varies from investment program to investment program. Except for follow-on investments and for all investments under COMAR 14.04.09, TEDCO’s investments are limited to early-stage technology-based businesses.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Eligibility."> <paragraph num="A."> <text>Eligibility Criteria. Except as provided in §C of this regulation, TEDCO may invest in an applicant if TEDCO determines the applicant meets all of the following criteria:</text> <paragraph num="(1)"> <text>The applicant is a technology-based business;</text> </paragraph> <paragraph num="(2)"> <text>Except for applicants applying for investment under COMAR 14.04.09, over half of the applicant’s workforce works at and from a physical location in the State;</text> </paragraph> <paragraph num="(3)"> <text>An applicant’s principal business operations are conducted from a physical location in the State;</text> </paragraph> <paragraph num="(4)"> <text>The applicant agrees to execute a securities repurchase agreement or an equivalent commitment, each with a duration of five years, subject to the terms and in the form approved by the Office of the Attorney General;</text> </paragraph> <paragraph num="(5)"> <text>The applicant agrees to use the investment primarily to:</text> <paragraph num="(a)"> <text>Support business operations in the State; or</text> </paragraph> <paragraph num="(b)"> <text>In the case of a start-up business, establish and support business operations in the State;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The applicant employs not more than 250 employees;</text> </paragraph> <paragraph num="(7)"> <text>The applicant is not primarily engaged in retail sales, real estate development, insurance, banking, or lending;</text> </paragraph> <paragraph num="(8)"> <text>The applicant is not primarily engaged in the provision of professional services by accountants, attorneys, or physicians; and</text> </paragraph> <paragraph num="(9)"> <text>Other eligibility criteria for each investment program under COMAR 14.04.03—.06 and.09;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Qualified Business Information. Except as required under §C of this regulation, in order to be considered for an investment by TEDCO, an applicant shall submit to TEDCO a written application in accordance with Regulation .05 of this chapter with sufficient information for TEDCO to establish eligibility under §A of this regulation, including:</text> <paragraph num="(1)"> <text>Except for applicants applying for investment under COMAR 14.04.09, the total number of the applicant’s founders and employees and the number of the applicant’s founders and employees working in the State;</text> </paragraph> <paragraph num="(2)"> <text>The address of the applicant’s principal business operations in the State and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations;</text> </paragraph> <paragraph num="(3)"> <text>Addresses of all the physical locations of the applicant; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information required by TEDCO as necessary to establish that the applicant is a qualified business.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Substantial Economic Impact Information. In lieu of the information provided in §B(1)—(3) of this regulation, the applicant may submit to TEDCO information that the applicant’s business will have a substantial economic impact in the State as set forth in COMAR 14.04.07. After reviewing information submitted by an applicant under this section, TEDCO may request additional information or conduct its own investigation of the applicant’s potential for substantial economic impact in the State. In its sole discretion, TEDCO may submit information provided under this section to the Investment Committee for its consideration. This section does not apply to applicants applying for investment under COMAR 14.04.09.</text> </paragraph> <paragraph num="D."> <text>Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an investment.</text> </paragraph> <paragraph num="E."> <text>State Small Business Credit Initiative Funds. All investments using proceeds allocated under the federal State Small Business Credit Initiative shall comply with 12 U.S.C. 5701 et seq., as amended.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Procedures and Guidelines for Investment Decisions."> <paragraph num="A."> <text>In General. In its sole discretion, TEDCO shall select eligible applicants for investment based on a written application and investment diligence. Each investment program shall have a separate application, application process, and submission deadlines.</text> </paragraph> <paragraph num="B."> <text>Application Process.</text> <paragraph num="(1)"> <text>In General. TEDCO shall make available to the public on or through its website:</text> <paragraph num="(a)"> <text>An application process for each investment program; and</text> </paragraph> <paragraph num="(b)"> <text>Deadlines, if any, to submit applications to an investment program.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Required Information. Through an application, an applicant shall provide information sufficient for TEDCO to:</text> <paragraph num="(a)"> <text>Determine whether the applicant meets the eligibility requirements as set forth in the Act and the specific requirements of the applicable investment program set forth in COMAR 14.04.03—.06 and .09; and</text> </paragraph> <paragraph num="(b)"> <text>Evaluate TEDCO’s investment criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Preliminary Evaluation of Eligibility. TEDCO’s investment program staff:</text> <paragraph num="(a)"> <text>Shall perform an initial review of each application in accordance with the Act and Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>May review the application for investment criteria in accordance with this regulation and may examine the applicant’s books and records, business plan, and other business documents.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Eligibility Determination. Within 30 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for investment under Regulation .04 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>Investment Criteria, Diversity and Inclusion Criteria, and Diligence for all Investment Programs.</text> <paragraph num="(a)"> <text>If the applicant is eligible for investment by TEDCO, TEDCO shall consider the investment criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Investment Criteria. TEDCO shall use the following investment criteria as the basis of a scoring rubric to evaluate eligible applicants:</text> <paragraph num="(i)"> <text>The growth potential of the applicant based on a credible and sustainable business model;</text> </paragraph> <paragraph num="(ii)"> <text>The degree to which the applicant’s proposed product or service addresses a need in the market and brings value to customers;</text> </paragraph> <paragraph num="(iii)"> <text>Size of the total addressable market for the applicant’s product or services;</text> </paragraph> <paragraph num="(iv)"> <text>The analysis of competitors in the market and sustainability of the applicant’s competitive advantage;</text> </paragraph> <paragraph num="(v)"> <text>The strength of the applicant’s management team including the team’s technical competence, entrepreneurial experience, business experience, and ability to grow the business;</text> </paragraph> <paragraph num="(vi)"> <text>The potential of the applicant or the applicant’s management team, as applicable, to raise follow-on capital, increase revenues, and create jobs;</text> </paragraph> <paragraph num="(vii)"> <text>Stage of development for product or services including market testing, customer discovery, and scientific validation;</text> </paragraph> <paragraph num="(viii)"> <text>The applicant’s plan to deliver product or services to the market including manufacturing, marketing, partnering and as applicable, regulation strategies;</text> </paragraph> <paragraph num="(ix)"> <text>The amount of funds the applicant has raised as of the date of application;</text> </paragraph> <paragraph num="(x)"> <text>The applicant’s future financing plan including financial models, employment plan, strategic milestones, and capital needs;</text> </paragraph> <paragraph num="(xi)"> <text>The applicant demonstrates a reasonable opportunity that TEDCO will receive a positive return on its investment;</text> </paragraph> <paragraph num="(xii)"> <text>The applicant’s satisfaction of specific investment program criteria as specified under each investment program, as applicable;</text> </paragraph> <paragraph num="(xiii)"> <text>The time period from which the business commenced operations; and</text> </paragraph> <paragraph num="(xiv)"> <text>Adherence to the application process.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Diversity and Inclusion Criteria. TEDCO shall consider whether:</text> <paragraph num="(i)"> <text>The investment has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and</text> </paragraph> <paragraph num="(ii)"> <text>A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Diligence. TEDCO’s investment diligence may include:</text> <paragraph num="(i)"> <text>Review of the applicant’s books and records and business plan;</text> </paragraph> <paragraph num="(ii)"> <text>One or more site visits;</text> </paragraph> <paragraph num="(iii)"> <text>Discussion with customers and competitors;</text> </paragraph> <paragraph num="(iv)"> <text>Evaluation of intellectual property;</text> </paragraph> <paragraph num="(v)"> <text>Independent review of scientific data;</text> </paragraph> <paragraph num="(vi)"> <text>Validation of claims and assumptions made in the application; and</text> </paragraph> <paragraph num="(vii)"> <text>At TEDCO’s sole discretion, an applicant’s presentation and interview.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>Follow-On Investments. To the extent that TEDCO already has information and documents to evaluate eligibility and investment criteria for a follow-on investment, TEDCO may accept a follow-on investment application requiring only the additional information and documents TEDCO needs to make the determinations under §B(2) of this regulation. At the time of the follow-on application and investment, TEDCO shall reconfirm the business’s eligibility as required under this regulation. All information determining eligibility of the business shall be verified as provided under Regulation .04D of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric adopted for each investment program based on the investment criteria and diversity and inclusion criteria.</text> </paragraph> <paragraph num="D."> <text>Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an investment in an eligible applicant on:</text> <paragraph num="(1)"> <text>The application;</text> </paragraph> <paragraph num="(2)"> <text>The aggregate scores from the evaluation of investment criteria and diversity and inclusion criteria under §C of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The relative strength of the applicant in comparison to other applicants;</text> </paragraph> <paragraph num="(4)"> <text>The likelihood that the investment in the applicant will lead to economic growth in the State;</text> </paragraph> <paragraph num="(5)"> <text>The amount of money available for the specific TEDCO investment program from which the investment will be made; and</text> </paragraph> <paragraph num="(6)"> <text>An analysis of the potential of the investment in the applicant to positively impact economically disadvantaged individuals, economically distressed areas or regions, or rural areas or rural communities.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Closing Conditions. After final approval, TEDCO may release the funds to invest in an applicant if the following closing conditions are met:</text> <paragraph num="(1)"> <text>At the time of the investment, the applicant remains eligible;</text> </paragraph> <paragraph num="(2)"> <text>The applicant executes a securities repurchase agreement or an equivalent commitment as set forth in Regulation .04 of this chapter before the receipt of the investment proceeds;</text> </paragraph> <paragraph num="(3)"> <text>The applicant agrees to use the proceeds of the investment to establish and support operations in the State and in accordance with any requirements of the applicable investment program; and</text> </paragraph> <paragraph num="(4)"> <text>The applicant satisfies other closing conditions as required by the Office of the Attorney General and other terms and conditions that TEDCO, in its sole discretion, may require.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Rejected Applicants. If an applicant is rejected for an investment, TEDCO shall notify the applicant in writing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Amount of Money Available for Investment."> <paragraph num="A."> <text>In General. The amount of money available for investment shall vary from investment program to investment program.</text> </paragraph> <paragraph num="B."> <text>Amount for Each Investment Program.</text> <paragraph num="(1)"> <text>Pre-Seed Builder Fund and Inclusion Fund. TEDCO may make an investment of up to $500,000 in each business selected for participation in the Pre-Seed Builder Fund or the Inclusion Fund.</text> </paragraph> <paragraph num="(2)"> <text>Rural Business Innovation Initiative Program. TEDCO may invest up to $25,000 per investment.</text> </paragraph> <paragraph num="(3)"> <text>Seed Funds. TEDCO may invest:</text> <paragraph num="(a)"> <text>For Cybersecurity Investment Fund and Technology Commercialization Fund, up to $500,000 per investment;</text> </paragraph> <paragraph num="(b)"> <text>For the Life Science Investment Fund, up to $500,000 per investment; and</text> </paragraph> <paragraph num="(c)"> <text>For the GAP Fund, up to $750,000 per investment.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Maryland Venture Fund. TEDCO may invest $250,000 to $1,500,000 per investment.</text> </paragraph> <paragraph num="(5)"> <text>Maryland Equity Investment Fund. TEDCO may invest up to $2,000,000 per investment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Exceptions.</text> <paragraph num="(1)"> <text>The Board may increase or decrease the investment cap described in §B of this regulation at the request of the Chief Executive Officer and in accordance with any limitations of the appropriation.</text> </paragraph> <paragraph num="(2)"> <text>If the Board modifies an investment cap under §B of this regulation in accordance with this §C of this regulation, TEDCO shall publish the modified investment cap on its website..</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Inclusive and Diverse Entrepreneurship — All Investment Programs."> <text>In order to foster inclusive and diverse entrepreneurship and innovation throughout the State, including initiatives to raise awareness of investment programs to assist small minority and women-owned businesses, TEDCO shall:</text> <paragraph num="A."> <text>Establish bench-marks for diversity and inclusion for each investment program;</text> </paragraph> <paragraph num="B."> <text>Provide in the application process an opportunity for applicants to self-identify economic disadvantage;</text> </paragraph> <paragraph num="C."> <text>Consider historical data on investments in comparison to the bench-marks; and</text> </paragraph> <paragraph num="D."> <text>Develop outreach marketing targeted to economically disadvantaged groups in the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Nondiscrimination."> <text>An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Investment Program Administration."> <text>An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of equity financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee.</text> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation 03 amended effective July 8, 2024 (51:13 Md. R. 647)</annotation> <annotation type="History" subtype="Administrative History">Regulation 04 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective January 20, 2025 (52:1 Md. R. 19)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective February 22, 2021 (48:4 Md. R. 178); September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, C amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> </annotations> </chapter> <chapter num="03" heading="Pre-Seed Builder Fund and Inclusion Fund"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations prescribe the objectives and investment policy of the Pre-Seed Builder Fund and the Inclusion Fund, the standards for qualification and investment criteria for participation in the Pre-Seed Builder Fund and the Inclusion Fund, and procedures and guidelines for TEDCO’s selection of businesses to receive Pre-Seed Builder Fund and Inclusion Fund investment.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>The objective of the Pre-Seed Builder Fund is to make pre-seed investments in and to support the development of technology-based start-up businesses owned and managed by individuals who demonstrate economic disadvantage. The objective of the Inclusion Fund is to make investments in technology-based businesses that have grown since their pre-seed stage and are owned and managed by individuals who demonstrate economic disadvantage.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Executive support” includes assistance in and support for management and implementation, planning, tracking and analysis, networking support, mentoring, coaching, advisory, facilitation, instruction or observation and feedback provided to a business.</text> </paragraph> <paragraph num="(2)"> <text>“Inclusion Fund” means the program established by §§10-481—10-483 of the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Pre-Seed Builder Fund” means the program established by §10-486 of the Act.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Investment Philosophy and Types of Qualified Businesses."> <text>The Pre-Seed Builder Fund and Inclusion Fund each identify investment opportunities in businesses that are often overlooked by traditional sources of investment and financing because of economic disadvantage and seek to invest in early-stage technology-based businesses that have the potential, with the Pre-Seed Builder Fund investment, the Inclusion Fund investment, or other TEDCO services, to create jobs in the State and become attractive targets for follow-on financing or investment.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility."> <paragraph num="A."> <text>In General. TEDCO shall be satisfied that the applicant meets the eligibility requirements set forth in COMAR 14.04.02.04.</text> </paragraph> <paragraph num="B."> <text>Eligibility Requirements Specific to Pre-Seed Builder Fund. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that:</text> <paragraph num="(1)"> <text>At the time of TEDCO's investment, at least one owner or executive manager who has demonstrated economic disadvantage works at the applicant full-time;</text> </paragraph> <paragraph num="(2)"> <text>At the time of TEDCO's investment, at least 50 percent of the applicant is owned by one or more individuals who have demonstrated economic disadvantage; and</text> </paragraph> <paragraph num="(3)"> <text>If required by TEDCO, the founders, owners, managers, or officers agree to receive executive support.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Eligibility Requirements Specific to Inclusion Fund. In addition to the requirements set forth in COMAR 14.04.02.04 and §B(1) and (3) of this regulation, TEDCO shall be satisfied that:</text> <paragraph num="(1)"> <text>At the time of TEDCO's investment, at least 30 percent of the applicant is owned by one or more individuals who have demonstrated economic disadvantage; and</text> </paragraph> <paragraph num="(2)"> <text>For at least 1 year after the time of TEDCO's investment, the applicant is controlled and managed by one or more individuals who have demonstrated economic disadvantage.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Procedures and Guidelines for Investment Decisions."> <paragraph num="A."> <text>In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by the Pre-Seed Builder Fund or the Inclusion Fund in accordance with the application process as set forth in COMAR 14.04.02.</text> </paragraph> <paragraph num="B."> <text>Investment Criteria.</text> <paragraph num="(1)"> <text>In addition to the investment criteria described in COMAR 14.04.02.05, the following investment criteria shall form the basis of TEDCO’s determination of the applicant’s potential to attract subsequent financing or investment after participating in the Pre-Seed Builder Fund or the Inclusion Fund and to create jobs in the State:</text> <paragraph num="(a)"> <text>Whether the applicant has or does not have available to it other means of financing; and</text> </paragraph> <paragraph num="(b)"> <text>Whether the applicant has secured, through verifiable documentation:</text> <paragraph num="(i)"> <text>Expressions of interest in providing financing to the applicant from sources of institutional venture investment or other financing sources, based on specified milestones; or</text> </paragraph> <paragraph num="(ii)"> <text>Network opportunities, including introductions to customers, employees, and partners.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>TEDCO shall use the investment criteria to evaluate applicants to determine:</text> <paragraph num="(a)"> <text>Whether an applicant advances in the application process; and</text> </paragraph> <paragraph num="(b)"> <text>The extent to which the achievement of milestones determined by TEDCO or the receipt of executive support will be a condition of investment by the Pre-Seed Builder Fund or Inclusion Fund.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>TEDCO may require:</text> <paragraph num="(a)"> <text>Eligible applicants to interview with TEDCO program staff; and</text> </paragraph> <paragraph num="(b)"> <text>Finalists for investment to make in-person presentations to TEDCO program staff.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Re-application After Initial Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund after the business submits a first application to TEDCO, the business may re-apply to TEDCO upon the later of:</text> <paragraph num="(1)"> <text>120 days after the date on which TEDCO issues a written rejection to the business; or</text> </paragraph> <paragraph num="(2)"> <text>The satisfaction of recommendations by TEDCO, if any.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Re-application After Subsequent Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund any time after the business submits a second application to TEDCO, the business may re-apply to TEDCO upon the later of:</text> <paragraph num="(1)"> <text>1 year after the date on which TEDCO issues a written rejection to the business; or</text> </paragraph> <paragraph num="(2)"> <text>The satisfaction of any recommendations by TEDCO, if any.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-409, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> </annotations> </chapter> <chapter num="04" heading="Rural Business Innovation Initiative"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations prescribe the objectives and investment policy of the RBII Fund, the standards for qualification and investment criteria for a business to receive investment from the RBII Program, and procedures and guidelines for TEDCO’s selection of businesses to receive investment from the RBII Fund.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>The objective of the RBII Fund is to make pre-seed investments in technology-based businesses that maintain principal business operations in rural areas or rural communities.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“RBII Fund” is part of the RBII Program through which TEDCO provides pre-seed investments to small or early-stage technology-based businesses in rural areas or rural communities.</text> </paragraph> <paragraph num="(2)"> <text>“RBII Program” means the Rural Business Innovation Initiative Program through which TEDCO provides pre-seed investment, technical and business assistance, mentoring services, and operational support to small or early-stage technology-based businesses in rural areas or rural communities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Investment Philosophy and Types of Qualified Businesses."> <text>The RBII Fund identifies pre-seed investment opportunities in small or early-stage technology-based businesses in rural areas and rural communities that are often overlooked by traditional sources of pre-seed investment because of the location of the businesses’ principal business operations in a rural area or a rural community. The RBII Fund seeks to make investments that TEDCO determines have the potential to enable the business to advance to the next-stage of venture investment and to become an attractive applicant for other TEDCO investment programs not less than 12 to 24 months after investment by the RBII Fund.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility."> <paragraph num="A."> <text>In General. TEDCO shall be satisfied that the applicant meets the eligibility requirements set forth in COMAR 14.04.02.04.</text> </paragraph> <paragraph num="B."> <text>Location and Other Requirements. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that:</text> <paragraph num="(1)"> <text>The applicant’s principal business operations are located in a rural area or a rural community; and</text> </paragraph> <paragraph num="(2)"> <text>At the time of the application, the applicant has received mentoring services from the RBII Program for a period of not less than 90 days.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Procedures and Guidelines for Investment Decisions."> <paragraph num="A."> <text>In General. TEDCO shall select a business for investment from the RBII Program in accordance with the application process set forth in COMAR 14.04.02.</text> </paragraph> <paragraph num="B."> <text>Investment Criteria. In addition to the investment criteria described in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria:</text> <paragraph num="(1)"> <text>Whether the applicant has previously received a grant from the RBII Program; and</text> </paragraph> <paragraph num="(2)"> <text>Whether the applicant has the potential to grow and to receive an investment from other TEDCO investment programs not less than 12 to 24 months after receipt of RBII Fund investment proceeds.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-409, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> </annotations> </chapter> <chapter num="05" heading="Seed Funds"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations prescribe the objectives and investment policy of the Seed Funds, the eligibility requirements and criteria for investment by the Seed Funds, and procedures and guidelines for TEDCO’s investment in early-stage businesses.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>Through Seed Funds investment, TEDCO seeks to strengthen and grow early-stage technology-based businesses with the goal of creating a State-wide environment that encourages and supports emerging businesses and maximizes economic impact in the State.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Cybersecurity Investment Fund” means the investment program established by §10-464 of the Act.</text> </paragraph> <paragraph num="(2)"> <text>“GAP Fund” means the investment program established in accordance with the Act to make investments in businesses between seed-stage and venture investment.</text> </paragraph> <paragraph num="(3)"> <text>“Life Science Investment Fund” means the investment program established in accordance with the Act to make investments in businesses that develop products for commercialization which address human health and require approval from the United States Food and Drug Administration.</text> </paragraph> <paragraph num="(4)"> <text>“Seed Funds” means the Life Science Investment Fund, the Cybersecurity Investment Fund, the Technology Commercialization Fund, and the GAP Fund.</text> </paragraph> <paragraph num="(5)"> <text>“Technology Commercialization Fund” means the investment program established in accordance with the Act to make investments in businesses that develop and commercialize new technology-based products in all fields of technology.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Investment Philosophy and Types of Qualified Businesses."> <text>TEDCO seeks investment opportunities in early-stage technology-based businesses with demonstrable potential to secure next-stage investment and grow with a positive economic impact in the State.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility."> <paragraph num="A."> <text>In General. TEDCO shall be satisfied that the applicant meets the requirements under COMAR 14.04.02.04. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that the business is based on the validation of a minimum viable product or, in the case of life sciences, proof of concept data with validation from in vitro or in vivo models or patient samples.</text> </paragraph> <paragraph num="B."> <text>Eligibility for Specific Seed Funds.</text> <paragraph num="(1)"> <text>For Technology Commercialization Fund investments, at the time of the application and initial investment, the business:</text> <paragraph num="(a)"> <text>Has raised not more than $10,000,000 of dilutive funding, not including the investment; and</text> </paragraph> <paragraph num="(b)"> <text>Employs not more than 30 employees.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For Cybersecurity Investment Fund investments, the business:</text> <paragraph num="(a)"> <text>Shall be focused on information technology security, including the protection of networked devises, networks, programs, and data from unintended or unauthorized access, change, or destruction; and</text> </paragraph> <paragraph num="(b)"> <text>At the time of the application and initial investment:</text> <paragraph num="(i)"> <text>Has raised not more than $10,000,000 of dilutive funding, not including the investment; and</text> </paragraph> <paragraph num="(ii)"> <text>Employs not more than 30 employees.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>For GAP Fund investments, the business:</text> <paragraph num="(a)"> <text>Shall have secured verifiable funding commitments from non-government sources for a $1:1 ratio match to TEDCO’s investment, the receipt of which by the business shall be a condition of closing the TEDCO investment;</text> </paragraph> <paragraph num="(b)"> <text>Shall receive the non-governmental source of funding specified in §B(3)(a) of this regulation not more than 90 days before TEDCO’s investment and in connection with the same financing round in which TEDCO invests; and</text> </paragraph> <paragraph num="(c)"> <text>Shall use the proceeds from TEDCO’s investment for payroll to compensate new employees in the State hired by the applicant after or not more than 90 days before TEDCO’s release of the investment proceeds; and</text> </paragraph> <paragraph num="(d)"> <text>At the time of application and initial investment:</text> <paragraph num="(i)"> <text>Has raised not more than $10,000,000 of dilutive funding, not including the investment; and</text> </paragraph> <paragraph num="(ii)"> <text>Shall employ not more than 30 employees.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>For Life Science Investment Fund:</text> <paragraph num="(a)"> <text>The business shall be considered an early-stage business if the business submits an application for investment to TEDCO:</text> <paragraph num="(i)"> <text>Not more than 7 years after the date on which the business commenced operations or not more than 5 years after the date on which the business received its final approval from the United States Food and Drug Administration for the product or device the business is developing, whichever is later; and</text> </paragraph> <paragraph num="(ii)"> <text>Otherwise meets the requirements of an early-stage business;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The business shall be in the process of developing a technology for a product for human health that requires approval from the United States Food and Drug Administration prior to market; and</text> </paragraph> <paragraph num="(c)"> <text>At the time of the application and initial investment, the business:</text> <paragraph num="(i)"> <text>Has raised not more than $10,000,000 of dilutive funding, not including the investment; and</text> </paragraph> <paragraph num="(ii)"> <text>Employs not more than 30 employees.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Investment Criteria."> <text>In addition to the investment criteria set forth in COMAR 14.04.02.05, TEDCO shall consider whether:</text> <paragraph num="A."> <text>The market opportunity is appropriate for a seed-stage investment;</text> </paragraph> <paragraph num="B."> <text>The applicant has the potential to secure institutional venture capital from other investors; and</text> </paragraph> <paragraph num="C."> <text>The management team has the skills and ability to effectively secure an institutional venture investment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedures and Guidelines for Investment Decisions."> <paragraph num="A."> <text>In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by the Seed Funds in accordance with the application process set forth in COMAR 14.04.02.</text> </paragraph> <paragraph num="B."> <text>Reapplication after Initial Rejection. If TEDCO rejects a business for investment by the Seed Funds after the business submits a first application to TEDCO, the business may re-apply to TEDCO upon the later of:</text> <paragraph num="(1)"> <text>90 days after the date on which TEDCO issues a written rejection to the business; or</text> </paragraph> <paragraph num="(2)"> <text>The business’s consultation with TEDCO’s advisory services, if required by TEDCO, and satisfaction of any recommendations by TEDCO.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Reapplication after Subsequent Rejection. If TEDCO rejects a business for investment by the Seed Funds any time after the business submits a second application to TEDCO, the business may re-apply to TEDCO upon the later of:</text> <paragraph num="(1)"> <text>180 days after the date on which TEDCO issues a written rejection to the business; or</text> </paragraph> <paragraph num="(2)"> <text>The business’s consultation with TEDCO’s advisory services, if required by TEDCO, and satisfaction of any recommendations by TEDCO.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-409, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective February 21, 2022 (49:4 Md. R. 302); January 20, 2025 (52:1 Md. R. 19)</annotation> </annotations> </chapter> <chapter num="06" heading="Maryland Venture Fund"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations prescribe the objectives and investment policy of the Maryland Venture Fund, and the eligibility requirements, criteria, procedures and guidelines for investment by the Maryland Venture Fund.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>Through the Maryland Venture Fund, TEDCO seeks to support the State’s innovation and entrepreneurship environment by investing in opportunities that will have the potential to:</text> <paragraph num="A."> <text>Generate financial returns to sustain the investment programs that constitute the Maryland Venture Fund; and</text> </paragraph> <paragraph num="B."> <text>Foster economic growth throughout the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Enterprise Fund” means the investment program established by §10-469 of the Act.</text> </paragraph> <paragraph num="(2)"> <text>“Invest Maryland Program” means the investment program established under §§10-4A-01—10-4A-28 of the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Maryland Venture Fund” means the Enterprise Fund and the Invest Maryland Program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Investment Philosophy and Types of Qualified Businesses."> <text>TEDCO seeks to invest in businesses that have demonstrated financial success and continued growth potential appropriate for subsequent venture investments.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility."> <text>TEDCO shall be satisfied that the applicant meets the requirements under COMAR 14.04.02.04.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Investment Criteria."> <text>In General. In addition to the investment criteria set forth in 14.04.02.05, TEDCO shall consider the following investment criteria:</text> <paragraph num="A."> <text>Whether the market opportunity is appropriate for venture-stage investment;</text> </paragraph> <paragraph num="B."> <text>Whether the applicant, at the time it submits an application to TEDCO, is raising a minimum investment round of $2 million;</text> </paragraph> <paragraph num="C."> <text>Except for life sciences businesses, whether the applicant’s quarterly revenues equal or exceed $250,000;</text> </paragraph> <paragraph num="D."> <text>Whether the investment has the potential to generate returns of two times the amount of TEDCO’s invested capital not more than 8 years from the date of the investment;</text> </paragraph> <paragraph num="E."> <text>Whether the applicant presents a plausible exit strategy for investors;</text> </paragraph> <paragraph num="F."> <text>Whether the applicant can provide access to or information about its partners and customers;</text> </paragraph> <paragraph num="G."> <text>Whether the management team has the skills and ability to effectively secure an institutional venture investment or effectuate a successful exit for investors;</text> </paragraph> <paragraph num="H."> <text>Whether the applicant has the potential to secure institutional venture capital from other investors concurrent with Maryland Venture Fund; and</text> </paragraph> <paragraph num="I."> <text>Except for life science businesses, whether the applicant’s annual growth rate equals or exceeds 20 percent.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedures and Guidelines for Investment Decisions."> <paragraph num="A."> <text>In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by Maryland Venture Fund in accordance with the application process set forth in COMAR 14.04.02.</text> </paragraph> <paragraph num="B."> <text>Enterprise Fund. For Enterprise Fund investments:</text> <paragraph num="(1)"> <text>TEDCO may not acquire an ownership interest in a business that exceeds 25 percent of the business; and</text> </paragraph> <paragraph num="(2)"> <text>Within 15 years of making the investment, TEDCO shall divest itself of the investment.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective February 22, 2021 (48:4 Md. R. 178)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C repealed effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07C amended effective February 21, 2022 (49:4 Md. R. 302)</annotation> </annotations> </chapter> <chapter num="07" heading="Investment Committee"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations establish the Investment Committee of the Board and prescribe the responsibilities of the Investment Committee and the procedures of the Board to appoint the members of the Investment Committee.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>The objective of the Investment Committee is to advise on and approve the investments as required under the Act.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Investment Committee Established."> <paragraph num="A."> <text>Established. There is an Investment Committee of the Board.</text> </paragraph> <paragraph num="B."> <text>Composition. The Investment Committee shall consist of three directors. Each member of the Investment Committee shall serve for a term of 1 year and until the director’s successor is duly appointed and qualifies.</text> </paragraph> <paragraph num="C."> <text>Procedures for Appointment. The Board shall elect the members of the Investment Committee by the same procedures as set forth in the TEDCO Bylaws that the Board uses for the election of officers. In considering directors for appointment to the Investment Committee, the Board and any nominating committee of the Board shall consider appropriate qualifications for serving on the Investment Committee, including:</text> <paragraph num="(1)"> <text>Relevant professional experience or education in economic development, economics, public policy, investment, finance, or diverse communities; and</text> </paragraph> <paragraph num="(2)"> <text>Potential conflicts that may impair the director’s ability to participate in the matters before the Investment Committee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Procedures of Investment Committee. A majority of Investment Committee members present in person shall constitute a quorum for the transaction of business at a meeting. All matters brought before the Investment Committee at a properly constituted meeting shall be approved by a majority of the Investment Committee members present. All other procedures of the Committee, including procedures for consents without a meeting and remote meetings, shall be governed by the TEDCO Bylaws or the Investment Committee charter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Standards for Review and Approval of Investments."> <paragraph num="A."> <text>Responsibilities of the Committee.</text> <paragraph num="(1)"> <text>Consider and Determine Substantial Economic Impact. Upon request by Chief Executive Officer of TEDCO, the Investment Committee shall determine whether an investment in a business will have a substantial economic impact in the State. If the Investment Committee determines that an investment will have a substantial economic impact in the State, the Investment Committee shall authorize TEDCO to make the investment. If the Investment Committee does not determine that the investment will have a substantial economic impact in the State, the Investment Committee may not authorize TEDCO to make the investment.</text> </paragraph> <paragraph num="(2)"> <text>Monitor Investments. In addition to any other meeting for the purpose of approving an investment under §A(1) of this regulation, the Investment Committee shall meet at least two times per year to review:</text> <paragraph num="(a)"> <text>Investments in businesses which TEDCO staff has determined are no longer qualified businesses or no longer satisfy §10-401(g)(1)(i) of the Act; and</text> </paragraph> <paragraph num="(b)"> <text>Reports issued by TEDCO in accordance with §10-415 of the Act.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Post-Investment Determinations. For the first 5 years after making an investment, if TEDCO identifies a business that ceases to be a qualified business, TEDCO shall notify the Investment Committee. To the extent possible and available, TEDCO shall deliver to the Investment Committee information sufficient for the Investment Committee to determine whether the business has had a substantial economic impact in the State or is reasonably projected to have a substantial economic impact in the State.</text> </paragraph> <paragraph num="(4)"> <text>Information Considered. In considering whether an investment has had or will have a substantial economic impact in the State, the Investment Committee may rely on information provided by TEDCO and may conduct its own investigation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Substantial Economic Impact in the State. The Investment Committee shall determine that a proposed investment in a business will have a substantial economic impact in the State if the proposed investment is reasonably projected to meet the following measures:</text> <paragraph num="(1)"> <text>For the first $100,000 to be invested by TEDCO, the business will create at least five jobs in the State within 3 years from the date of the investment;</text> </paragraph> <paragraph num="(2)"> <text>For each $20,000 to be invested in addition to $100,000, the business will create at least one job within 3 years of the investment;</text> </paragraph> <paragraph num="(3)"> <text>The business will make capital investments in the State in an amount not less than two times the dollar value of the investment by TEDCO within 3 years from the date of the investment; and</text> </paragraph> <paragraph num="(4)"> <text>The business shall make a contribution to the State’s technology ecosystem in terms of:</text> <paragraph num="(a)"> <text>A return on the investment to TEDCO to be used for subsequent investment in the State;</text> </paragraph> <paragraph num="(b)"> <text>The development of products and services beneficial to companies and other persons in the State;</text> </paragraph> <paragraph num="(c)"> <text>The potential to attract management or additional venture financing to businesses based in the State; or</text> </paragraph> <paragraph num="(d)"> <text>The development of successful entrepreneurs from diverse communities in the State or the support of communities whose economic development has been impeded by economic distress.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-408 and 10-4A-27, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective February 22, 2021 (48:4 Md. R. 178); February 21, 2022 (49:4 Md. R. 302)</annotation> </annotations> </chapter> <chapter num="08" heading="Stem Cell Research Commission"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter describes the policies and procedures for State-funded stem cell research in Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Program Objective."> <text>The basic objective of the Program is to provide financial assistance to qualified applicants to advance stem cell research and its therapeutic applications.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>Applicant.</text> <paragraph num="(a)"> <text>“Applicant” means a person located in Maryland who applies for the financial assistance provided pursuant to this chapter.</text> </paragraph> <paragraph num="(b)"> <text>“Applicant” includes a public or private institution of higher education and a public or private corporation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Commission” means the Stem Cell Research Commission created under §10-431 of the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Corporation” means the Maryland Technology Development Corporation.</text> </paragraph> <paragraph num="(4)"> <text>“Financial assistance” means a grant or loan from the Fund.</text> </paragraph> <paragraph num="(5)"> <text>“Fund” means the Maryland Stem Cell Research Fund created under §10-434 of the Act.</text> </paragraph> <paragraph num="(6)"> <text>“Grantee” means an applicant who has been awarded financial assistance, whether in the form of a grant or a loan.</text> </paragraph> <paragraph num="(7)"> <text>“Human stem cell” means a stem cell derived from human tissue.</text> </paragraph> <paragraph num="(8)"> <text>“Institutional Review Board (IRB)” has the meaning stated in 45 CFR §46.102.</text> </paragraph> <paragraph num="(9)"> <text>“Program” means the program for State-funded stem cell research authorized by the Act.</text> </paragraph> <paragraph num="(10)"> <text>“Stem cell research” means basic, translational, or clinical research that:</text> <paragraph num="(a)"> <text>Is conducted in Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Uses human stem cells derived from:</text> <paragraph num="(i)"> <text>Tissue obtained after the birth of a human being; or</text> </paragraph> <paragraph num="(ii)"> <text>Unused IVF material.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(11)"> <text>“State-funded stem cell research” means, in addition to the meaning stated in §10-429(i) of the Act, stem cell research that receives financial assistance.</text> </paragraph> <paragraph num="(12)"> <text>“Stem cell” has the meaning stated in §10-429(j) of the Act.</text> </paragraph> <paragraph num="(13)"> <text>“Unused IVF material” means the unused material described in §§10-438 and 10-439 of the Act.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Eligible Applicants."> <paragraph num="A."> <text>To be eligible for financial assistance, an applicant shall certify to the Commission and the Corporation that the applicant:</text> <paragraph num="(1)"> <text>Will use the financial assistance solely in accordance with the requirements of the Program;</text> </paragraph> <paragraph num="(2)"> <text>Will conduct the stem cell research for which financial assistance is requested in Maryland;</text> </paragraph> <paragraph num="(3)"> <text>Has the legal capacity and all necessary legal authorization to incur the obligations related to the financial assistance; and</text> </paragraph> <paragraph num="(4)"> <text>Will comply with all applicable State and federal laws, including the requirement that stem cell research receiving financial assistance be conducted only after the approval of an Institutional Review Board.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not preclude an applicant from conducting otherwise lawful research that is ineligible for financial assistance.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Financial Assistance Criteria."> <text>The Commission shall consider the following factors in determining whether to award financial assistance to an applicant:</text> <paragraph num="A."> <text>The scientific merit of the stem cell research described in the application, taking into account the evaluation, rankings, and recommendations of an independent scientific peer review committee pursuant to §10-435 of the Act;</text> </paragraph> <paragraph num="B."> <text>The ethical implications of the stem cell research described in the application;</text> </paragraph> <paragraph num="C."> <text>The relationship between the stem cell research described in the application and the etiology, prevention, diagnosis, or treatment of a disease;</text> </paragraph> <paragraph num="D."> <text>The potential impact of the stem cell research described in the application on technological innovation and the advancement of biotechnology in Maryland's academic, business, and nonprofit sectors; and</text> </paragraph> <paragraph num="E."> <text>The relationship between the stem cell research described in the application and other research and sources of research funding.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Financial Assistance Terms."> <paragraph num="A."> <text>The financial assistance may be used for the purposes stated in the application, including the cost of facilities, capital leases, and capital equipment at a place where stem cell research is conducted.</text> </paragraph> <paragraph num="B."> <text>The amount of indirect, unspecified, or overhead costs included in an application may not exceed the percentage of the total cost of the research identified by the Commission in a request for applications.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Application."> <paragraph num="A."> <text>An application for financial assistance shall be in the form and with the content identified by the Commission in a request for applications.</text> </paragraph> <paragraph num="B."> <text>An application shall categorize the stem cell research described in the application by reference to the categories of research identified by the Commission in a request for applications.</text> </paragraph> <paragraph num="C."> <text>An application shall state the intended duration of the State-funded stem cell research.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Agreement Following Award of Financial Assistance."> <paragraph num="A."> <text>A grantee shall execute a grant agreement or loan agreement with the Corporation, in a form prescribed by the Corporation, that:</text> <paragraph num="(1)"> <text>Makes disbursement of financial assistance contingent on evidence of IRB approval of the State-funded stem cell research described in the application;</text> </paragraph> <paragraph num="(2)"> <text>Acknowledges, as appropriate, that an award of financial assistance beyond the current fiscal year may be contingent on future appropriations to the Fund;</text> </paragraph> <paragraph num="(3)"> <text>Establishes the scope of the State's ownership or other financial interest in the commercialization and other benefits of the results, products, inventions, and discoveries of the State-funded stem cell research described in the application;</text> </paragraph> <paragraph num="(4)"> <text>Discusses, as appropriate, other matters related to intellectual property; and</text> </paragraph> <paragraph num="(5)"> <text>Contains other assurances, as determined by the Corporation, related to the grantee's compliance with applicable law and the terms of the financial assistance.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A grantee shall, upon request, provide information to the Commission and Corporation reasonably related to the oversight of an award of financial assistance and the progress and results of the State-funded stem cell research.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Nondiscrimination."> <text>An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Drug-Free and Alcohol-Free Workplace."> <text>An applicant shall comply, and remain in compliance, with the State's policy concerning drug-free and alcohol-free workplaces, as set forth in Executive Order 01.01.1989.18, and shall make a good-faith effort to eliminate illegal drug use and alcohol and drug abuse from places at which work is performed that has been financed in whole or in part with financial assistance.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Waiver."> <text>The Corporation, in consultation with the Commission, may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if:</text> <paragraph num="A."> <text>Conformance to the requirements of any federal, State, or local programs in connection with State-funded stem cell research necessitates waiver or variance of a regulation; or</text> </paragraph> <paragraph num="B."> <text>In the determination of the Corporation, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-409 and 10-441, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 27, 2007 (34:17 Md. R. 1510)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 under COMAR 14.04.01, Stem Cell Research Commission recodified to be COMAR 14.04.08, Stem Cell Research Commission effective December 30, 2019 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 22, 2021 (48:4 Md. R. 178)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective February 22, 2021 (48:4 Md. R. 178)</annotation> </annotations> </chapter> <chapter num="09" heading="Maryland Equity Investment Fund"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations prescribe the objectives and investment policy of the Maryland Equity Investment Fund, and the eligibility requirements, criteria, procedures, and guidelines for investment by the Maryland Equity Investment Fund.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>Through the Maryland Equity Investment Fund, TEDCO seeks to invest in qualified businesses with a goal to increase private equity and venture capital in the State that will have the potential to:</text> <paragraph num="A."> <text>Generate financial returns to the benefit of the participants of the several pension systems managed by the State Retirement and Pension System; and</text> </paragraph> <paragraph num="B."> <text>Foster economic growth throughout the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions"> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Maryland Equity Investment Fund” means the investment program established by §10-487 of the Act.</text> </paragraph> <paragraph num="(2)"> <text>“Qualified business” has the meaning stated in §10-487(a)(4) of the Act..</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Investment Philosophy and Types of Qualified Businesses."> <text>TEDCO seeks to invest in businesses that have demonstrated financial success and continued growth potential appropriate for subsequent venture investments or a public offering.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility."> <text>TEDCO shall be satisfied that the applicant is a qualified business and meets the requirements under COMAR 14.04.02.04.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Investment Criteria."> <text>In General. In addition to the investment criteria set forth in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria:</text> <paragraph num="A."> <text>Whether the market opportunity is appropriate for venture capital;</text> </paragraph> <paragraph num="B."> <text>Whether the applicant, at the time it submits an application to TEDCO, is raising a minimum investment round of $2,000,000;</text> </paragraph> <paragraph num="C."> <text>Whether the investment has the potential to generate returns of two times the amount of TEDCO’s invested capital not more than 8 years from the date of the investment;</text> </paragraph> <paragraph num="D."> <text>Whether the applicant presents a plausible exit strategy for investors; and</text> </paragraph> <paragraph num="E."> <text>Whether the management team has the skills and ability to effectively secure an institutional venture investment concurrent with the investment of the Maryland Equity Investment Fund.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedures and Guidelines for Investment Decisions."> <text>TEDCO shall select businesses for investment by the Maryland Equity Investment Fund in accordance with the application process set forth in COMAR 14.04.02.</text> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-409, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="10" heading="Equitech Growth Fund"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>Except as otherwise provided in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Award” means grants, equity financing, debt financing, and other financial assistance.</text> </paragraph> <paragraph num="(2)"> <text>“Commission” means the Equitech Growth Commission.</text> </paragraph> <paragraph num="(3)"> <text>“Equitech Growth Fund” means the fund described in §10-488 of the Act.</text> </paragraph> <paragraph num="(4)"> <text>“Infrastructure” means to build or expand equipment, systems, resources, and facilities in the State to support, attract, and retain businesses in the State.</text> </paragraph> <paragraph num="(5)"> <text>Metrics.</text> <paragraph num="(a)"> <text>“Metrics” means performance criteria and measures established by the applicant for the applicant’s project.</text> </paragraph> <paragraph num="(b)"> <text>“Metrics” may include but is not limited to the project’s potential impact on businesses, industry growth, jobs, diversity, equity and inclusion, and economic development in the State.</text> </paragraph> <paragraph num="(c)"> <text>“Metrics” shall be consistent with the 10-year goals in the strategic plan developed by the Commission.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Nonprofit” means a tax-exempt entity under the Internal Revenue Code, organized for charitable, educational, or socially beneficial purposes.</text> </paragraph> <paragraph num="(7)"> <text>“Other sources of funding” means funding received from a non-profit or a public entity.</text> </paragraph> <paragraph num="(8)"> <text>“Private entity” or “private sector” means a non-governmental enterprise for profit that is not affiliated, through ownership or control with the federal, state, or a local government.</text> </paragraph> <paragraph num="(9)"> <text>Public Entity</text> <paragraph num="(a)"> <text>“Public entity” means a unit of the State or a local government.</text> </paragraph> <paragraph num="(b)"> <text>“Public entity” includes political subdivision, trusts, and instrumentalities of the State.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“State” means the State of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>Workforce Development.</text> <paragraph num="(a)"> <text>“Workforce development” means a coordination of programs and policies to create, sustain, and retain a viable workforce.</text> </paragraph> <paragraph num="(b)"> <text>“Workforce development” includes educational programs, degree and non-degree programs, certifications, training, and exposure to career pathways in Science, Technology, Engineering, Arts, or Math for all ages.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Eligibility."> <paragraph num="A."> <text>Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria:</text> <paragraph num="(1)"> <text>The applicant is a public, nonprofit, or private entity in the State, including institutions of higher education and public-private partnerships;</text> </paragraph> <paragraph num="(2)"> <text>The applicant’s proposed project is primarily focused on workforce development or infrastructure in the State;</text> </paragraph> <paragraph num="(3)"> <text>The applicant shall use the award proceeds and the leveraged funds in the State;</text> </paragraph> <paragraph num="(4)"> <text>The applicant shall have secured verified funding commitments from the private sector, federal sources, and other sources of funding in an amount to be approved by TEDCO, the receipt of which by the applicant shall be a condition of disbursing the TEDCO funds; and</text> </paragraph> <paragraph num="(5)"> <text>The applicant’s proposal shall be consistent with the 10-year goals in the strategic plan developed by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procedures and Guidelines for Award Decisions."> <paragraph num="A."> <text>In General. In its sole discretion, TEDCO shall select eligible applicants for an award under the Equitech Growth Fund based on a written application, applicant’s proposal, and TEDCO’s diligence.</text> </paragraph> <paragraph num="B."> <text>Application Process.</text> <paragraph num="(1)"> <text>In General. TEDCO shall make available to the public on or through its website:</text> <paragraph num="(a)"> <text>An application process for awards under the Equitech Growth Fund; and</text> </paragraph> <paragraph num="(b)"> <text>Deadlines, if any, to submit the applications.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Required Information. Through an application, an applicant shall provide a proposal for its project with information sufficient for TEDCO to establish eligibility for an award, including:</text> <paragraph num="(a)"> <text>Whether the applicant meets the eligibility requirements as set forth in the Act and under Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Detailed description of the proposed project including, but not limited to, current and proposed financial budgets, and the project’s goals to support workforce development or infrastructure in the State;</text> </paragraph> <paragraph num="(c)"> <text>Reasonable metrics of the project’s potential impact on the State’s ecosystem; and</text> </paragraph> <paragraph num="(d)"> <text>Any other information required to evaluate program criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Preliminary Evaluation of Eligibility. TEDCO's program staff:</text> <paragraph num="(a)"> <text>Shall perform an initial review of each application in accordance with the Act and Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s project proposal, budgets, metrics, and other documents.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Eligibility Determination. Within 45 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .02 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>Program Criteria, Diversity and Inclusion Criteria, and TEDCO’s Diligence.</text> <paragraph num="(a)"> <text>If the applicant is eligible for an award by TEDCO, TEDCO shall consider the program criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Program Criteria. TEDCO shall use the following criteria as the basis of a scoring rubric to evaluate eligible applicants:</text> <paragraph num="(i)"> <text>Whether the applicant’s project is viable, sustainable, and has a high probability for success;</text> </paragraph> <paragraph num="(ii)"> <text>The degree to which the applicant’s project addresses a need in the State’s ecosystem;</text> </paragraph> <paragraph num="(iii)"> <text>The degree to which the applicant’s project will leverage funding from private sector, federal sources, or other sources of funding;</text> </paragraph> <paragraph num="(iv)"> <text>The extent to which the applicant’s project is consistent with the 10-year goals in the strategic plan developed by the Commission;</text> </paragraph> <paragraph num="(v)"> <text>The analysis of the project’s metrics and potential impact on the State’s ecosystem; and</text> </paragraph> <paragraph num="(vi)"> <text>Adherence to the application process.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Diversity and Inclusion Criteria. TEDCO shall consider whether:</text> <paragraph num="(i)"> <text>The applicant’s project has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and</text> </paragraph> <paragraph num="(ii)"> <text>A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Diligence. TEDCO’s diligence may include:</text> <paragraph num="(i)"> <text>Review of applicant’s proposal, budgets, and metrics;</text> </paragraph> <paragraph num="(ii)"> <text>Site visits;</text> </paragraph> <paragraph num="(iii)"> <text>Validation of claims and assumptions made in the application; and</text> </paragraph> <paragraph num="(iv)"> <text>At TEDCO’s sole discretion, an applicant’s presentation and interview.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric based on the program criteria and diversity and inclusion criteria.</text> </paragraph> <paragraph num="D."> <text>Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an award to an eligible applicant on:</text> <paragraph num="(1)"> <text>The application;</text> </paragraph> <paragraph num="(2)"> <text>The aggregate scores from the evaluation of the program criteria and diversity and inclusion criteria under §C of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The likelihood that applicant’s project will lead to economic growth through workforce development or infrastructure in the State; and</text> </paragraph> <paragraph num="(4)"> <text>The amount of money available for this program.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Rejected Applicants. If an applicant is rejected for an award, TEDCO shall notify the applicant in writing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Process for Monitoring."> <paragraph num="A."> <text>Project Work-In-Progress. When the applicant’s project is work-in-progress, the applicant shall provide interim and final progress reports of the project including a detailed description of the use of award funds on a regular basis, as required from time to time by TEDCO.</text> </paragraph> <paragraph num="B."> <text>Project Completion. Upon completion of the project, the applicant shall provide impact reports to TEDCO annually for a period of up to 5 years following the completion, in such form as TEDCO may specify from time to time. Impact reports shall include an analysis of the achievement of the project’s metrics.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Nondiscrimination."> <text>An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Program Administration."> <text>An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee.</text> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-488, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 20, 2025 (52:1 Md. R. 19)</annotation> </annotations> </chapter> <chapter num="11" heading="Pava LaPere Innovation Acceleration Grant Program"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>Except as otherwise provided in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Award” means a $50,000 grant to a qualifying applicant.</text> </paragraph> <paragraph num="(2)"> <text>“Baltimore-Columbia-Towson MSA” means the Metropolitan Statistical Area in Maryland, as defined by the United States Office of Budget and Management.</text> </paragraph> <paragraph num="(3)"> <text>“Chief Executive Officer designee” means a TEDCO employee to whom the TEDCO’s Chief Executive Officer has designated decision making authority.</text> </paragraph> <paragraph num="(4)"> <text>Metrics.</text> <paragraph num="(a)"> <text>“Metrics” means performance criteria and measures established by the applicant for the applicant’s grant proposal.</text> </paragraph> <paragraph num="(b)"> <text>“Metrics” may include but is not limited to the project’s potential impact on fostering growth of the entrepreneurial innovation ecosystem in the State.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Postsecondary institution located in the Baltimore-Columbia-Towson MSA” means universities and colleges stated in §10-462.1 of the Act.</text> </paragraph> <paragraph num="(6)"> <text>“Program” means the Pava LaPere Innovation Acceleration Grant Program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Eligibility."> <paragraph num="A."> <text>Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria:</text> <paragraph num="(1)"> <text>The applicant is a technology-based start-up company;</text> </paragraph> <paragraph num="(2)"> <text>The founder of the applicant are students of a postsecondary institution located in the Baltimore-Columbia-Towson MSA;</text> </paragraph> <paragraph num="(3)"> <text>The applicant has its principal place of business located in the Baltimore-Columbia-Towson MSA; and</text> </paragraph> <paragraph num="(4)"> <text>The applicant agrees to use at least 20 percent of the award to hire third-party consultants for planning, development, regulatory compliance, or other technical assistance related to establishing a start-up company unless upon applicant’s request, TEDCO provides a waiver thereto.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procedures and Guidelines for Award Decisions."> <paragraph num="A."> <text>In General. TEDCO shall select eligible applicants for an award under the Program based on a written application, applicant’s proposal, and TEDCO’s diligence.</text> </paragraph> <paragraph num="B."> <text>Application Process.</text> <paragraph num="(1)"> <text>In General. TEDCO shall make available to the public on or through its website:</text> <paragraph num="(a)"> <text>An application process for awards under the Program; and</text> </paragraph> <paragraph num="(b)"> <text>Deadlines, if any, to submit the applications.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Required Information. Through an application, an applicant shall provide a grant proposal including information sufficient for TEDCO to establish eligibility for an award, including:</text> <paragraph num="(a)"> <text>Whether the applicant meets the eligibility requirements as set forth in the Act and under Regulation .02 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Detailed description of the grant proposal including, but not limited to, current and proposed financial budgets, business proposal, and the project’s potential impact on growth of the entrepreneurial innovation ecosystem in the State;</text> </paragraph> <paragraph num="(c)"> <text>The address of applicant’s principal business operations in the Baltimore-Columbia-Towson MSA and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations;</text> </paragraph> <paragraph num="(d)"> <text>Reasonable metrics of the project’s potential impact; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information required to evaluate program criteria.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Preliminary Evaluation of Eligibility. The Program:</text> <paragraph num="(a)"> <text>Shall perform an initial review of each application in accordance with the Act and Regulation .02 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s grant proposal, business plan, budget, metrics, and other information.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Eligibility Determination. Within 45 days from the date an applicant submits the application to the program, the program shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .02 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>Program Criteria. The Program shall consider the following criteria as the basis of a scoring rubric to evaluate eligible applicants:</text> <paragraph num="(a)"> <text>Whether the applicant’s grant proposal is viable, and has a reasonable probability for success;</text> </paragraph> <paragraph num="(b)"> <text>The analysis of the grant proposal’s metrics and potential impact; and</text> </paragraph> <paragraph num="(c)"> <text>Adherence to the application process.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Diligence. Program diligence may include:</text> <paragraph num="(a)"> <text>Review of applicant’s grant proposal, budgets, and metrics;</text> </paragraph> <paragraph num="(b)"> <text>Validation of claims and assumptions made in the application; and</text> </paragraph> <paragraph num="(c)"> <text>An applicant’s presentation and interview.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Scoring. The Program shall score each applicant in accordance with a uniform scoring rubric based on the program criteria.</text> </paragraph> <paragraph num="D."> <text>Final Approval. The Chief Executive Officer or a Chief Executive Officer’s designee, shall base TEDCO’s final decision regarding an award to an eligible applicant on:</text> <paragraph num="(1)"> <text>The application; and</text> </paragraph> <paragraph num="(2)"> <text>The aggregate scores from the evaluation of the program criteria under §C of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Rejected Applicants. If an applicant is rejected for a grant award, the program shall notify the applicant in writing.</text> </paragraph> <paragraph num="F."> <text>Award Amount. In accordance with the Act, program award amounts are $50,000 to each qualifying applicant, subject to funding availability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Nondiscrimination."> <text>An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Program Administration."> <text>An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee.</text> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-462, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 20, 2025 (52:1 Md. R. 19)</annotation> </annotations> </chapter> <chapter num="12" heading="Maryland Small Business Innovation Research and Technology Transfer Incentive Program"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>Except as otherwise provided in this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Award” means grants, equity financing, debt financing, and other financial assistance provided under the Program.</text> </paragraph> <paragraph num="(2)"> <text>“Fund” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund as described in §§10-473—10-478 of the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Fiscal year” means the 12-month period from July 1 through the following June 30.</text> </paragraph> <paragraph num="(4)"> <text>“Program” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Program as described in §§10-473—10-478 of the Act.</text> </paragraph> <paragraph num="(5)"> <text>“Proposal” means the proposal submitted by the business to an agency of the federal government for a SBIR or STIR award.</text> </paragraph> <paragraph num="(6)"> <text>“Qualified business” has the meaning stated in §10-401(g) of the Act.</text> </paragraph> <paragraph num="(7)"> <text>“SBIR award” means the small business innovation research award and has the meaning stated in §10-473 of the Act.</text> </paragraph> <paragraph num="(8)"> <text>“STTR award” means the small business technology transfer award and has the meaning stated in §10-473 of the Act.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Purpose and Objective."> <text>These regulations prescribe the objectives of the Program and the procedures and guidelines for TEDCO’s selection of businesses to receive an award under the Program. The purpose of the program is to foster job creation and economic development in the State by promoting the commercialization of research conducted by small businesses in the State and facilitating the transfer of technology from universities and federal research laboratories to small businesses.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility."> <paragraph num="A."> <text>Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria:</text> <paragraph num="(1)"> <text>Over half of the applicant’s workforce works at and from a physical location in the State;</text> </paragraph> <paragraph num="(2)"> <text>The applicant’s principal business operations are conducted from a physical location in the State;</text> </paragraph> <paragraph num="(3)"> <text>The applicant agrees to execute a securities repurchase agreement or an equivalent commitment, in the form determined and approved by the Office of the Attorney General, requiring the applicant to return to the Fund any money from an award including accrued interest and fees, if the applicant does not remain a qualified business for at least 2 years after receiving the award;</text> </paragraph> <paragraph num="(4)"> <text>The applicant agrees to return the award if the applicant fails to fulfill the eligibility and maintenance requirements of the Program as set forth in the Act and §A of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>The applicant agrees to use the award primarily to:</text> <paragraph num="(a)"> <text>Support business operations in the State; or</text> </paragraph> <paragraph num="(b)"> <text>In the case of a start-up business, establish and support business operations in the State;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The applicant employs not more than 250 employees;</text> </paragraph> <paragraph num="(7)"> <text>The applicant is not primarily engaged in retail sales, real estate development, insurance, banking, or lending;</text> </paragraph> <paragraph num="(8)"> <text>The applicant is not primarily engaged in the provision of professional services by accountants, attorneys, or physicians;</text> </paragraph> <paragraph num="(9)"> <text>The applicant has received a Phase I or Phase II SBIR award or STTR award during the 6 months immediately preceding the submission of the applicant’s application under the Program;</text> </paragraph> <paragraph num="(10)"> <text>The applicant has received no prior award under the Program in the current fiscal year; and</text> </paragraph> <paragraph num="(11)"> <text>The applicant has received less than three awards under the Program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility Information. In order to be considered for an award by TEDCO, an applicant shall submit to TEDCO a written application in accordance with Regulation .04 of this chapter with sufficient information for TEDCO to establish eligibility under §A of this regulation, including:</text> <paragraph num="(1)"> <text>The total number of the applicant’s founders and employees and the number of the applicant’s founders and employees working in the State;</text> </paragraph> <paragraph num="(2)"> <text>The address of the applicant’s principal business operations in the State and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations;</text> </paragraph> <paragraph num="(3)"> <text>Addresses of all the physical locations of the applicant;</text> </paragraph> <paragraph num="(4)"> <text>A copy of the applicant’s proposal submitted to a federal agency for a SBIR award or a STTR award;</text> </paragraph> <paragraph num="(5)"> <text>A copy of the applicant’s SBIR award or STTR award notification; and</text> </paragraph> <paragraph num="(6)"> <text>Any other information required by TEDCO as necessary to establish that the applicant is eligible for an award under the Program.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Procedures and Guidelines for Award Decisions."> <paragraph num="A."> <text>In General. In its sole discretion, TEDCO shall select eligible applicants for an award under the Program based on a written application, applicant’s proposal, and TEDCO’s diligence.</text> </paragraph> <paragraph num="B."> <text>Application Process.</text> <paragraph num="(1)"> <text>In General. TEDCO shall make available to the public on or through its website:</text> <paragraph num="(a)"> <text>An application process for awards under the Program; and</text> </paragraph> <paragraph num="(b)"> <text>Deadlines, if any, to submit the applications.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Required Information. Through an application, an applicant shall submit information sufficient for TEDCO to:</text> <paragraph num="(a)"> <text>Determine whether applicant meets the eligibility requirements as set forth in the Act and under Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Any other information required to evaluate program criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Preliminary Evaluation of Eligibility. TEDCO's program staff:</text> <paragraph num="(a)"> <text>Shall perform an initial review of each application in accordance with the Act and Regulation .03 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s proposal, budgets, economic impact, and other documents.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Eligibility Determination. Within 45 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .03 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>Program Criteria, Diversity and Inclusion Criteria, and TEDCO’s Diligence.</text> <paragraph num="(a)"> <text>If the applicant is eligible for an award by TEDCO, TEDCO shall consider the program criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>Program Criteria. TEDCO shall use the following criteria as the basis of a scoring rubric to evaluate eligible applicants:</text> <paragraph num="(i)"> <text>Whether the applicant’s business promotes commercialization of research in the State or facilitates transfer of technology from universities and federal research laboratories;</text> </paragraph> <paragraph num="(ii)"> <text>The degree to which the applicant will utilize the award towards commercialization of the research;</text> </paragraph> <paragraph num="(iii)"> <text>Whether the applicant’s business in primarily engaged in research and development activities that assist in the prevention of, preparedness for, or response to a public health crisis in the State;</text> </paragraph> <paragraph num="(iv)"> <text>The potential economic impact of the applicant’s growth in the State;</text> </paragraph> <paragraph num="(v)"> <text>Whether the award has a potential to foster job creation and economic development in the State; and</text> </paragraph> <paragraph num="(vi)"> <text>Adherence to the application process.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Diversity and Inclusion Criteria. TEDCO shall consider whether:</text> <paragraph num="(i)"> <text>The award has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and</text> </paragraph> <paragraph num="(ii)"> <text>A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Diligence. TEDCO’s diligence may include:</text> <paragraph num="(i)"> <text>Review of applicant’s proposal, budgets, and impact to the State’s ecosystem;</text> </paragraph> <paragraph num="(ii)"> <text>Site visits;</text> </paragraph> <paragraph num="(iii)"> <text>Validation of claims and assumptions made in the application; and</text> </paragraph> <paragraph num="(iv)"> <text>At TEDCO’s sole discretion, an applicant’s presentation and interview.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric based on the program criteria and diversity and inclusion criteria.</text> </paragraph> <paragraph num="D."> <text>Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an award to an eligible applicant on:</text> <paragraph num="(1)"> <text>The application;</text> </paragraph> <paragraph num="(2)"> <text>The aggregate scores from the evaluation of the program criteria and diversity and inclusion criteria under §C of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The likelihood that an award will foster job creation and economic development in the State; and</text> </paragraph> <paragraph num="(4)"> <text>The amount of money available for this program.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Rejected Applicants. If an applicant is rejected for an award, TEDCO shall notify the applicant in writing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Award Limitations."> <text>Subject to the availability of money in the Fund, TEDCO shall provide an award to selected applicants as follows:</text> <paragraph num="A."> <text>For Phase I SBIR award or STTR award applicants, an award under the Program shall be the lesser of:</text> <paragraph num="(1)"> <text>25 percent of the Phase I SBIR award or STTR award; or</text> </paragraph> <paragraph num="(2)"> <text>$25,000.</text> </paragraph> </paragraph> <paragraph num="B."> <text>For Phase II SBIR award or STTR award applicants, an award under the Program shall be the lesser of:</text> <paragraph num="(1)"> <text>25% of the Phase II SBIR award or STTR award; or</text> </paragraph> <paragraph num="(2)"> <text>$75,000.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Nondiscrimination."> <text>An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Program Administration."> <text>An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee.</text> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §10-462, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 — .07 adopted effective March 17, 2025 (52:5 Md. R. 238)</annotation> </annotations> </chapter> </subtitle> <subtitle num="05" heading="Veterans Commission"> <chapter num="01" heading="Veterans Claims Service" reason="Repealed. See 35.02.01" /> <chapter num="02" heading="Interments in State Veterans' Cemeteries" reason="Repealed. See 35.03.01" /> </subtitle> <subtitle num="06" heading="Office of the Public Defender"> <chapter num="01" heading="Representation"> <regulation prefix="Regulation" num=".01" heading="Provisions for Representation."> <paragraph num="A."> <text>The Office of the Public Defender shall provide representation to a person cited for contempt for failure to pay court-ordered support payments under the following circumstances:</text> <paragraph num="(1)"> <text>Upon request by the Court or upon application by the person cited;</text> </paragraph> <paragraph num="(2)"> <text>If it is determined that the person cited is indigent in accordance with Article 27A, §§2(f) and 7(a), Annotated Code of Maryland, and the person cited has no private counsel who had previously represented him in a divorce or paternity proceedings whose appearance is still pending on the cited person's behalf; and</text> </paragraph> <paragraph num="(3)"> <text>That the person cited is actually facing a prison term.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In making the determination to represent a person cited for contempt in non-support proceedings, it shall be encumbent upon the Office of the Public Defender to ascertain, before the hearing, whether the:</text> <paragraph num="(1)"> <text>State's Attorney will actually seek incarceration; or</text> </paragraph> <paragraph num="(2)"> <text>Department of Social Services, or counsel prosecuting the support case, or both, is seeking incarceration.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 27A, §6(c), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 1984 (11:3 Md. R. 204)</annotation> </annotations> </chapter> <chapter num="02" heading="Panel Attorneys"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>As used in this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Office” means the Office of the Public Defender, including a district office of the Public Defender.</text> </paragraph> <paragraph num="(2)"> <text>“District public defender” means:</text> <paragraph num="(a)"> <text>The attorney-at-law appointed by the Public Defender to be in charge of a district comprising one or more political subdivisions conforming to the geographic boundaries of the District Court districts established in Courts and Judicial Proceedings Article, §1-602, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>A division chief of a Statewide division within the office designated by the Public Defender.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Federal fee maximum” has the meaning stated in §B(6) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>“Panel attorney” means any attorney licensed to practice law in Maryland and who qualifies and is eligible for appointment as counsel to an indigent person as defined by Article 27A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Public Defender” means the head of the Office of the Public Defender.</text> </paragraph> <paragraph num="(6)"> <text>“Rate at which federal panel attorneys are compensated” means those rates of compensation for panel attorneys assigned to represent indigent federal criminal defendants, promulgated at 18 U.S.C. §3006A (Criminal Justice Act).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Introduction."> <text>The following regulations established for the operation and administration of the Office for the conduct of professional legal services of panel attorneys under the Public Defender Statute (Article 27A, Sec. 6, Annotated Code of Maryland).</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Duty of the Public Defender."> <text>Pursuant to Article 27A, §4, Annotated Code of Maryland, the Public Defender is charged with the primary duty to provide legal representation to any indigent eligible for services under the Article, in the following proceedings:</text> <paragraph num="A."> <text>In any criminal or juvenile proceeding constitutionally requiring the presence of counsel before presentment before a commissioner or judge;</text> </paragraph> <paragraph num="B."> <text>Criminal or juvenile proceedings, when the defendant is charged with a serious crime, before the District Court of Maryland, the various circuit courts within the State, and the Court of Special Appeals;</text> </paragraph> <paragraph num="C."> <text>Post conviction proceedings under Criminal Procedure Article, Annotated Code of Maryland, when the defendant has a right to counsel pursuant to Criminal Procedure Article, §7-108;</text> </paragraph> <paragraph num="D."> <text>Any other proceeding when possible incarceration pursuant to a judicial commitment of individuals in institutions of a public or private nature may result;</text> </paragraph> <paragraph num="E."> <text>An eligible party to a Child in Need of Assistance (CINA) proceeding who is entitled to the assistance of counsel as defined in Courts and Judicial Proceedings Article, §3-813, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Assignment of Panel Attorneys."> <paragraph num="A."> <text>When the office determines that an applicant for legal services is, in fact, an indigent and qualified for legal services under the Act, the Office may assign the applicant to a panel attorney. The Public Defender may relieve a panel attorney and substitute a new panel attorney. A panel attorney may not circumvent reassignment by entering a notice of appearance as private counsel.</text> </paragraph> <paragraph num="B."> <text>Primary Duty of Panel Attorneys. The primary duty of all panel attorneys appointed by the Office shall be to the individual defendant, with like effect and to the same purpose as though privately engaged by the indigent person and without regard to the use of public funds to provide the service (Article 27A, §6(c)).</text> </paragraph> <paragraph num="C."> <text>Privileged Communication. All communications between the individual defendant and any person in or engaged by the Office shall be fully protected by the attorney-client privilege to the same extent and degree as though counsel had been privately engaged. This does not preclude the use by the Office of material in the defendant's files, otherwise privileged, for the preparation and disclosure of statistical, case study, and other sociological data, provided always that in this use there shall be no disclosure of the identity of particular defendants.</text> </paragraph> <paragraph num="D."> <text>Each district public defender, subject to the authority and supervision of the Public Defender, shall maintain a confidential list of private attorneys who are eligible to provide legal representation under Article 27A, Annotated Code of Maryland. The qualification criteria for the panel attorneys shall be set forth by the Public Defender.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Final Report."> <text>At the conclusion of professional services, a panel attorney shall file a final report on forms furnished by the Office. Final petitions for fees will not be honored unless accompanied by a final report form.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Fees and Expenses."> <paragraph num="A."> <text>Hourly Rate. As the annual budget permits, panel attorneys will be compensated at the same hourly rate at which federal panel attorneys are compensated for indigent criminal defense representation, effective July 1, 2007. For cases assigned on or after July 1, 2006 and before July 1, 2007, panel attorneys will be compensated at an hourly rate of $90 per hour. For cases assigned on or after July 1, 2005, and before July 1, 2006, panel attorneys will be compensated at an hourly rate of $75 per hour. For cases assigned on or after January 1, 2005 and before July 1, 2005, panel attorneys will be compensated at an hourly rate of $50 per hour. Services performed, time spent, and compensation requested shall be detailed on petition forms supplied by the Office and certified under oath by the panel attorney.</text> </paragraph> <paragraph num="B."> <text>Maximum Allowable Fees.</text> <paragraph num="(1)"> <text>A district public defender or division chief may allow fees in each case up to the maximum established for corresponding federal panel attorney representation effective July 1, 2007. The corresponding federal fee maximum is based on the court in which representation is provided as follows:</text> <paragraph num="(a)"> <text>District Court—federal misdemeanor;</text> </paragraph> <paragraph num="(b)"> <text>Circuit court—federal felony;</text> </paragraph> <paragraph num="(c)"> <text>Juvenile Court—federal felony;</text> </paragraph> <paragraph num="(d)"> <text>Court of Special Appeals—federal appeal; and</text> </paragraph> <paragraph num="(e)"> <text>Court of Appeals—federal appeal.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>When there is no corresponding federal fee maximum, the maximum allowable fee is based on the court in which representation is provided, effective July 1, 2007, as follows:</text> <paragraph num="(a)"> <text>Postconviction and mental health proceedings—$2,500 maximum; and</text> </paragraph> <paragraph num="(b)"> <text>All other cases—$1,200 maximum.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any increase in the corresponding federal compensation of panel attorneys will be effective for Office panel attorneys on July 1 immediately following the effective date of the federal increase. If there is no corresponding federal fee maximum, the maximum will increase by the same percentage as any increase to the maximum for circuit court cases.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Interim Fee Schedule.</text> <paragraph num="(1)"> <text>As the budget permits, for cases assigned on or after July 1, 2006, and before July 1, 2007, a district public defender or division chief may allow panel attorney fees up to the limit of the following maximums based on the court in which representation is provided as follows:</text> <paragraph num="(a)"> <text>District Court—$1,500 maximum;</text> </paragraph> <paragraph num="(b)"> <text>Circuit court—$5,200 maximum;</text> </paragraph> <paragraph num="(c)"> <text>Juvenile Court—$5,200 maximum;</text> </paragraph> <paragraph num="(d)"> <text>Postconviction and mental health proceedings—$1,500 maximum;</text> </paragraph> <paragraph num="(e)"> <text>Court of Special Appeals—$3,700 maximum;</text> </paragraph> <paragraph num="(f)"> <text>Court of Appeals—$3,700 maximum; and</text> </paragraph> <paragraph num="(g)"> <text>All other cases—$1,200 maximum.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>As the budget permits, for cases assigned on or after January 1, 2005 and before July 1, 2006, a district public defender or division chief may allow panel attorney fees up to the limit of the following maximums based on the court in which representation is provided as follows:</text> <paragraph num="(a)"> <text>District Court—$750 maximum;</text> </paragraph> <paragraph num="(b)"> <text>Circuit court—$3,000 maximum;</text> </paragraph> <paragraph num="(c)"> <text>Juvenile Court—$3,000 maximum;</text> </paragraph> <paragraph num="(d)"> <text>Postconviction and mental health proceedings—$750 maximum;</text> </paragraph> <paragraph num="(e)"> <text>Court of Special Appeals—$2,500 maximum;</text> </paragraph> <paragraph num="(f)"> <text>Court of Appeals—$2,500 maximum; and</text> </paragraph> <paragraph num="(g)"> <text>All other cases—$500 maximum.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Time for Submitting Petition for Fee."> <text>Except for unusual or extenuating circumstances causing a delay in submission, each petition and final report shall be forwarded to the district public defender within 60 days of the final court event for the case. Unwarranted delays may cause the petition to be denied.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Review of Petition for Fee and Expenses by District Public Defender."> <text>All petitions for fees and expenses are subject to review and approval by the district public defender. District public defenders are authorized to allow fees up to the maximum fee schedule and, in addition, may recommend a fee in excess of the maximum to the Public Defender. The Public Defender will approve fees and expenses as the Public Defender deems reasonable and as necessitated by budget limitations.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Review of Petition for Fee and Expenses by District Advisory Board."> <text>Pursuant to Article 27A, §§6(d) and 10(c), Annotated Code of Maryland, any panel attorney seeking compensation for legal fees or expenses disapproved by the Public Defender or in excess of those authorized for payment may seek the review of his or her petition by the district advisory board. When this review is sought, the panel attorney shall notify the district public defender who will schedule a review with the board. The decision of the district advisory board is advisory.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Accepting Fees from Accused."> <text>Pursuant to Article 27A, §6(d), Annotated Code of Maryland, a panel attorney may not accept any fee, gratuity, or other valuable consideration from the accused, his family, or his friends. If such an offer is made, the information should be promptly communicated to the district public defender for appropriate action.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Redetermination of Indigency."> <text>Before the appointment of a panel attorney to represent an accused, a determination of indigency was made by the Office. After appointment, if a panel attorney discovers that an accused has secreted assets or falsified information regarding his true financial status, the panel attorney should promptly advise the district public defender. The district public defender will make further investigation of the financial status of the accused and, thereafter, advise the panel attorney regarding his continued appearance in the case and as to any other appropriate action.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Funding Availability."> <text>Implementation of this chapter is contingent upon availability of funds in accordance with State Finance and Procurement Article, §§7-234 and 7-235, Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">Article 27A, §§6(c) and (d) and 10(c), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 20, 1985 (12:21 Md. R. 2030)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06J amended effective July 13, 1997 (24:14 Md. R. 1013)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A amended effective October 17, 1988 (15:21 Md. R. 2469)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended as an emergency provision effective December 14, 1990 (18:2 Md. R. 147); emergency status expired May 13, 1991</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective September 16, 1991 (18:18 Md. R. 2009)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective July 13, 1997 (24:14 Md. R. 1013)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective April 11, 1994 (21:7 Md. R. 532)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 17, 2005 (32:1 Md. R. 28)</annotation> </annotations> </chapter> <chapter num="03" heading="Eligibility for Services"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“District” means an area comprising one or more political subdivisions conforming to the geographic boundaries of the District Court districts established in the Courts and Judicial Proceedings Article, §1-602, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“District public defender” means the district public defender of each of the various districts described in §B(1), above.</text> </paragraph> <paragraph num="(3)"> <text>“Division” means an organization subunit through which the Office of the Public Defender provides specialized defense services, including representation in appellate, post-conviction, involuntary institutionalization, child in need of assistance, termination of parental rights, and capital proceedings.</text> </paragraph> <paragraph num="(4)"> <text>“Division chief” means the attorney-at-law appointed by the public defender to be in charge of a division.</text> </paragraph> <paragraph num="(5)"> <text>“Expenses”, when used with reference to representation under these regulations, means all costs incident to investigation, other pretrial preparation, trial, and appeal of a person accused of a serious crime.</text> </paragraph> <paragraph num="(6)"> <text>“Indigent” means any person taken into custody or charged with a serious crime as defined under the laws of Maryland or the laws and ordinances of any county, municipality, or Baltimore City, who under oath or affirmation subscribes and states in writing that he is financially unable, without undue hardship, to provide for the full payment of an attorney and all other necessary expenses of legal representation.</text> </paragraph> <paragraph num="(7)"> <text>“Office” means the Office of the Public Defender, including district offices of the Public Defender and branch offices as are deemed necessary.</text> </paragraph> <paragraph num="(8)"> <text>“Serious crimes” when used in these regulations applies to serious crimes as defined under the Public Defender Statute, Article 27A, §2(h), Annotated Code of Maryland, as expanded by Argersinger v. Hamlin, 407 U.S. 31 (1972), in which the Court stated that, " . . . absent a knowing and intelligent waiver, no person may be imprisoned for any offense, whether classified as petty, misdemeanor or felony, unless he is represented by counsel at his trial." (407 U.S. 31 at 35).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>The following regulations are established for the operation and administration of the office for the determination of eligibility for public defender services under the Public Defender Statute, Criminal Procedure Article, §§16-207 and 16-210, Annotated Code of Maryland, and Office of the Public Defender v. State, 413 Md. 411 (2010).</text> </paragraph> <paragraph num="B."> <text>The regulations also seek to ensure that eligibility is determined in a manner consistent with the obligation of the office to render effective assistance of counsel.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Incorporation by Reference."> <paragraph num="A."> <text>In this chapter, the following document is incorporated by reference.</text> </paragraph> <paragraph num="B."> <text>Document Incorporated. Section 673(2) of Omnibus Budget Reconciliation Act (OBRA) of 1981 (Pub. L. 97-35) (42 U.S.C. §9902(2)).</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Duty to Provide Legal Representation."> <text>Pursuant to Article 27A, §4, Annotated Code of Maryland, the Public Defender is charged with the primary duty to provide legal representation to any indigent eligible for services under the Article, in the following proceedings:</text> <paragraph num="A."> <text>In any criminal or juvenile proceeding constitutionally requiring the presence of counsel before presentment before a commissioner or judge;</text> </paragraph> <paragraph num="B."> <text>Juvenile proceedings or criminal proceedings when the applicant is charged with a serious crime, before the District Court of Maryland, the various circuit courts within the State, and the Court of Special Appeals;</text> </paragraph> <paragraph num="C."> <text>Post-conviction proceedings under Criminal Procedure Article, Annotated Code of Maryland, when the defendant has a right to counsel pursuant to Criminal Procedure Article, §7-108, Annotated Code of Maryland;</text> </paragraph> <paragraph num="D."> <text>Any other proceeding when possible incarceration pursuant to a judicial commitment of individuals in institutions of a public or private nature may result;</text> </paragraph> <paragraph num="E."> <text>An involuntary termination of parental rights proceeding or a hearing under Family Law Article, §5-319, Annotated Code of Maryland, if the party is entitled to public defender representation under Family Law Article, §5-323, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Determination of Eligibility for Services."> <paragraph num="A."> <text>Pursuant to Criminal Procedure Article, §§16-207 and 16-210, Annotated Code of Maryland, and Office of the Public Defender v. State, 413 Md. 411 (2010), eligibility for services of the Office of the Public Defender shall be determined on the basis of need of the individual seeking legal representation. Need shall be measured by the financial ability of the applicant to engage and compensate competent private counsel and to provide all other necessary expenses of representation without undue financial hardship. This ability shall be recognized to be a variable depending on:</text> <paragraph num="(1)"> <text>The nature, extent, and liquidity of assets;</text> </paragraph> <paragraph num="(2)"> <text>The disposable net income of the defendant;</text> </paragraph> <paragraph num="(3)"> <text>The nature of the offense;</text> </paragraph> <paragraph num="(4)"> <text>The effort and skill required to gather pertinent information;</text> </paragraph> <paragraph num="(5)"> <text>The length and complexity of the proceedings; and</text> </paragraph> <paragraph num="(6)"> <text>Any other foreseeable expenses.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Persons seeking the services of the Office of the Public Defender shall fully disclose, under oath or affirmation, all financial assets, income, living expenses, and liabilities by completing an Application for Representation form which shall be supplied by the Office at a confidential eligibility interview.</text> </paragraph> <paragraph num="C."> <text>Following such full disclosure by the applicant, the Office shall check financial information so disclosed against information obtained by the Office from the Maryland Department of Labor (MDL), and may follow up with MDL as the Office in its sole discretion may deem appropriate. The information made available by MDL shall be the most reliable means for corroborating financial information supplied by the applicant, and no further corroboration is therefore required. However, in addition, the Office may in its sole discretion, but is not required to, undertake any additional investigation it deems appropriate, in connection with which it may request supporting documentation from an applicant. The applicant’s failure to provide some or all of any such documentation shall not necessitate a finding that the applicant is ineligible.</text> </paragraph> <paragraph num="D."> <text>In conformity with the decision of the Court of Special Appeals in Baldwin v. State, 51 Md. App. 538, 444 A.2d 1058 (1982), the following guidelines presumptively apply in the determination of eligibility:</text> <paragraph num="(1)"> <text>Consistently with Baldwin v. State, supra, and Office of the Public Defender v. State, supra, any doubts as to defendant’s indigence shall be resolved by providing assistance of counsel rather than denying it;</text> </paragraph> <paragraph num="(2)"> <text>The defendant's financial ability shall be measured in terms of his resources and not in terms of resources of the defendant's family;</text> </paragraph> <paragraph num="(3)"> <text>The fact that bond was posted may not be used as grounds to deny appointed counsel;</text> </paragraph> <paragraph num="(4)"> <text>Assets seized in raids and held by authorities subject to confiscation may not be deemed available to the defendant for purposes of determining his financial ability;</text> </paragraph> <paragraph num="(5)"> <text>The defendant's presumed employability shall form no proper basis for denying appointed counsel.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Pursuant to Criminal Procedure Article, §16-210 et seq., Annotated Code of Maryland, if a determination of eligibility cannot be made before the time when the first services are to be rendered, the Office may undertake representation of an indigent person provisionally. If it should subsequently be determined that the defendant is ineligible, the Office will so inform the defendant, and the defendant shall then be obligated to engage the defendant’s own counsel.</text> </paragraph> <paragraph num="F."> <text>If after appointment to represent the client the attorney discovers that the client has secreted assets or falsified information regarding his true financial status, the attorney should promptly advise the district public defender or division chief. The district public defender or division chief shall make further investigation of the financial status of the client, in connection with which the Office may request that the client provide further documentation. After such investigation, the district public defender or division chief shall advise the attorney regarding continued appearance in the case and as to any other appropriate action.</text> </paragraph> <paragraph num="G."> <text>Income Level.</text> <paragraph num="(1)"> <text>For an individual whose assets and net annual income are less than 100 percent of the federal poverty guidelines, eligibility for services of the Office may be determined without an assessment regarding the need of the applicant.</text> </paragraph> <paragraph num="(2)"> <text>Assets considered shall include all liquid and nonliquid assets of the applicant, excluding the applicant's principal residence and primary vehicle.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Reimbursement of Expenses."> <paragraph num="A."> <text>In the event a determination of eligibility cannot be made before the time when the first services are to be rendered and services are provisionally rendered pursuant to COMAR 14.06.03.05E, and it is subsequently determined that the person is ineligible pursuant to such section, the person shall be obligated to reimburse the Office for the cost of the services rendered to that time.</text> </paragraph> <paragraph num="B."> <text>The attorney shall review with the client any change in the client's circumstances which would affect the client's financial ability to reimburse the State for services rendered by the office before the final disposition of the case. The attorney shall be prepared to present those circumstances for consideration by the judge at sentencing in conjunction with the Court's determination of the ability of the client to make reimbursements for the services rendered by the office in accordance with Article 27A, §7(g) and (h), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Application for Public Defender Services."> <paragraph num="A."> <text>An applicant shall submit to a confidential eligibility interview at least 10 working days before any service is required to be rendered.</text> </paragraph> <paragraph num="B."> <text>An applicant applying for services more than 10 working days, but less than 16 working days, before any service is required to be rendered, will be interviewed and have eligibility determined at the time of the interview.</text> </paragraph> <paragraph num="C."> <text>An applicant applying for services more than 16 working days before the service is required to be rendered may:</text> <paragraph num="(1)"> <text>Be interviewed at an office other than one where representation would be provided, with the eligibility decision deferred to the district public defender rendering the service; or</text> </paragraph> <paragraph num="(2)"> <text>Visit an Office of the Public Defender district providing the service and have eligibility determined at the time of the interview.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Procedure Article, §16-210, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 24, 1987 (14:17 Md. R. 1872)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective September 28, 1994 (21:22 Md. R. 1872); emergency status extended at 22:6 Md. R. 471; revised permanently effective March 27, 1995 (22:6 Md. R. 474)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective March 19, 2012 (39:5 Md. R. 383)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective March 19, 2012 (39:5 Md. R. 383); March 28, 2016 (43:6 Md. R. 411)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective May 17, 1999 (26:10 Md. R. 799)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective March 28, 2016 (43:6 Md. R. 411)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective December 7, 2017 (44:24 Md. R. 1151)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective March 19, 2012 (39:5 Md. R. 383)</annotation> <annotation type="History" subtype="Administrative History">Regulations .08 and .09 repealed effective May 17, 1999 (26:10 Md. R. 799)</annotation> </annotations> </chapter> </subtitle> <subtitle num="07" heading="Maryland Automobile Insurance Fund"> <chapter num="01" heading="Board of Trustees" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: January 14, 1977 (5:2 Md. R. 83)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 recodified to be Regulation .01-1 and new Regulation .01 adopted effective August 30, 1993 (20:17 Md. R. 1351)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective March 12, 2002 (29:7 Md. R. 617); amended permanently effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective March 12, 2002 (29:7 Md. R. 617); amended permanently effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective March 12, 2002 (29:7 Md. R. 617); amended permanently effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective March 12, 2002 (29:7 Md. R. 617); amended permanently effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulations .06 and .09 amended effective May 5, 1986 (13:9 Md. R. 1031)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended as an emergency provision effective March 12, 2002 (29:7 Md. R. 617); amended permanently effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective May 19, 1978 (5:10 Md. R. 813)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 recodified to be Regulation .18 and new Regulation .16 adopted effective August 30, 1993 (20:17 Md. R. 1351)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17 adopted effective August 30, 1993 (20:17 Md. R. 1351)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective November 15, 2021 (48:23 Md. R. 981)</annotation> </annotations> </chapter> <chapter num="02" heading="Binding Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: November 1, 1975 (2:24 Md. R. 1479; 2:26 Md. R. 1158)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective April 1, 1977 (4:8 Md. R. 636); August 3, 1981 (8:15 Md. R. 1310)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 repealed and new Regulations .01—.09 adopted effective June 27, 1988 (15:13 Md. R. 1557)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01, .03, and .07 amended as an emergency provision effective December 20, 1988 (15:26 Md. R. 2978); amended permanently effective June 26, 1989 (16:12 Md. R. 1337)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective October 23, 1998 (25:23 Md. R. 1694); amended permanently effective April 5, 1999 (26:7 Md. R. 545)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective October 23, 1998 (25:23 Md. R. 1694); amended permanently effective April 5, 1999 (26:7 Md. R. 545)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D adopted effective February 26, 1996 (23:4 Md. R. 273)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective April 5, 1999 (26:7 Md. R. 545)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended as an emergency provision effective December 15, 1999 (27:2 Md. R. 141); emergency status extended at 27:5 Md. R. 578); emergency status expired June 16, 2000</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective April 8, 1996 (23:7 Md. R. 554); January 31, 2005 (32:2 Md. R. 147)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective October 1, 2003 (30:22 Md. R. 1575); emergency status expired April 1, 2004; amended permanently effective September 13, 2004 (31:18 Md. R. 1351)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended as an emergency provision effective October 23, 1998 (25:23 Md. R. 1694); amended permanently effective April 5, 1999 (26:7 Md. R. 545)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective August 25, 2008 (35:17 Md. R. 1489)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective November 15, 2021 (48:23 Md. R. 981)</annotation> </annotations> </chapter> <chapter num="03" heading="Producer Discipline Hearing Rules" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: August 2, 1982 (9:15 Md. R. 1517)</annotation> <annotation type="History" subtype="Administrative History">(Recodified from 14.07.04 to 14.07.03)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 repealed and new Regulations .01—.06 adopted as an emergency provision effective July 25, 1989 (16:16 Md. R. 1748); emergency status extended at 16:24 Md. R. 2615; adopted permanently effective January 8, 1990 (16:26 Md. R. 2796)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective November 15, 2021 (48:23 Md. R. 981)</annotation> </annotations> </chapter> <chapter num="04" heading="Uninsured Persons' Claims for Compensation from the Maryland Automobile Insurance Fund"> <regulation prefix="Regulation" num=".01" heading="Authority."> <text>This chapter is promulgated by the Executive Director of the Fund pursuant to the authority vested in the Executive Director under Insurance Article, §20-201(d)(3)(iii), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Purpose."> <paragraph num="A."> <text>The purpose of these regulations is to let a qualified claimant know how to file a claim in order to receive compensation for bodily injuries or property damages from the Fund if the claimant has been injured by a negligent uninsured owner or operator in an accident on or after July 1, 1987.</text> </paragraph> <paragraph num="B."> <text>To be eligible to claim against the Fund, the claimant may not have been covered on the accident date by any automobile liability insurance, either personally or by an immediate family member, nor will the claimant be eligible if the claimant was an operator or passenger in an insured automobile.</text> </paragraph> <paragraph num="C."> <text>These regulations also set forth how the Fund can proceed in negotiating and paying claims.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>As used in these regulations, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Accident” means any occurrence arising out of the ownership, maintenance, or use of a motor vehicle in this State which results in damage to any property, or injury or death to any person.</text> </paragraph> <paragraph num="(2)"> <text>“Claimant” means any qualified person making claim for damages for personal injury or death, or damage to property in excess of $250, by reason of the negligent conduct of an uninsured owner or operator of a motor vehicle, as these claims are further defined in Insurance Article, §20-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Disappearing motorist” means an owner or operator of a motor vehicle, who was originally identified but whose whereabouts cannot be ascertained.</text> </paragraph> <paragraph num="(4)"> <text>“Executive Director” means the Executive Director of the Maryland Automobile Insurance Fund, as defined by Insurance Article, §20-203, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Family member” means any person related by blood, marriage, or adoption.</text> </paragraph> <paragraph num="(6)"> <text>“Fund” means the Maryland Automobile Insurance Fund, created by Insurance Article §20-101, et seq., Annotated Code of Maryland, and includes the Uninsured Division, formerly the Unsatisfied Claim and Judgment Fund.</text> </paragraph> <paragraph num="(7)"> <text>Motor Vehicle.</text> <paragraph num="(a)"> <text>“Motor vehicle” means a vehicle that is operated or designed for operation upon a public road by any power other than animal or muscular power and is required to maintain automobile insurance under Transportation Article, §17-103, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Motor vehicle” does not include:</text> <paragraph num="(i)"> <text>A moped, as defined in Transportation Article, §11-134.1, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>A motor scooter, as defined in Transportation Article, §11.134.5, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(iii)"> <text>An electric bicycle, as defined in Transportation Article, §11-117.1, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Person” includes natural persons, firms, co-partnerships, associations, corporations, and governmental bodies.</text> </paragraph> <paragraph num="(9)"> <text>“Qualified person” has the meaning provided under Insurance Article, §20-601(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Unidentified motorist” means an owner or operator of a motor vehicle whose identity and whereabouts are not known.</text> </paragraph> <paragraph num="(11)"> <text>“Uninsured motorist” means an owner or operator of a motor vehicle whose whereabouts are ascertainable, but who was uninsured at the time of the accident.</text> </paragraph> <paragraph num="(12)"> <text>“Uninsured motor vehicle” means a motor vehicle which has:</text> <paragraph num="(a)"> <text>No security in force meeting the requirements of Transportation Article, §17-103, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>A liability insurance policy in force meeting the statutory requirements when a receiver or conservator has been appointed by a court of competent jurisdiction for the insurance company issuing the policy.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Uninsured owner or operator” includes a disappearing motorist, an unidentified motorist, and an uninsured motorist, as those terms are defined in these regulations.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Filing a Notice of Claim."> <paragraph num="A."> <text>There is no longer a notice of intention to make a claim allowed by law, only the Notice of Claim as provided for in these regulations and in Insurance Article, §20-603(b), Annotated Code of Maryland. A claimant may, however, file an Initial Notice of Claim, on a form prepared by the Fund, while verifying whether the claim is covered under Insurance Article, §20-601, Annotated Code of Maryland. The Fund shall furnish a form on request.</text> </paragraph> <paragraph num="B."> <text>A claimant shall file the Notice of Claim not later than 180 days after the date of the accident. If not, the claimant cannot recover from the Fund, unless the claimant qualifies for one of the exceptions described in Insurance Article, §20-603(a), Annotated Code of Maryland. Before filing the Notice of Claim, the claimant shall have made a significant good faith investigation of the claimant’s eligibility, damages, and the responsibility of the uninsured owner or operator, and the claimant shall supply that information in the Notice of Claim. The claimant shall have made all reasonable efforts to confirm that no automobile insurance exists for the at fault vehicle or any other applicable insurance coverage and shall confirm there is no uninsured motorist coverage as defined in Transportation Article, §17-103(b)(4), or Insurance Article, §19-509 or 19-509.1, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The claimant shall sign and file the Notice of Claim on the form prescribed by the Fund. The claimant’s signature on the form certifies any material misrepresentation made by the claimant constitutes grounds for denying the claim. A notice is not filed unless it is received by the Fund within 180 days.</text> </paragraph> <paragraph num="D."> <text>The Notice of Claim shall contain information and documentation substantiating all the matters described in §§E—M, of this regulation. It shall include all information and documentation as of the date of filing. If the Notice of Claim is not substantially complete the Fund may return it to the claimant.</text> </paragraph> <paragraph num="E."> <text>Claimants shall fulfill all legal requirements to claim against the Fund. Claimants shall show that their injuries or damages were caused by an uninsured motor vehicle or an uninsured owner or operator, and that the claimants are a resident of the State. Documentation which is generally acceptable includes records, affidavits, and certifications from the Motor Vehicle Administration, from insurance companies which provide or have provided coverage for the owner or operator at fault, and from those vehicle owners and operators involved in the accident.</text> </paragraph> <paragraph num="F."> <text>Claimants may not be eligible for Uninsured Division benefits from a policy of automobile liability insurance. Claimants shall show that:</text> <paragraph num="(1)"> <text>They own no automobile or other motor vehicle registered in Maryland;</text> </paragraph> <paragraph num="(2)"> <text>None of their family members with whom they regularly live own an automobile registered in Maryland;</text> </paragraph> <paragraph num="(3)"> <text>A vehicle in which they were an operator or passengers had no available insurance;</text> </paragraph> <paragraph num="(4)"> <text>The motor vehicle at fault had no insurance on the date of the accident; and</text> </paragraph> <paragraph num="(5)"> <text>All denial or disclaimers are valid under the law.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Documentation which is generally acceptable for the requirements of §F of this regulation includes records, affidavits, and certifications from the Motor Vehicle Administration and insurance companies which may provide or have provided coverage for the claimant or the claimant’s family members, or the uninsured owner or operator involved in the accident. Claimants shall also furnish the complete names, dates of birth, and, if known, social security numbers of all members of their immediate household 16 years old or older.</text> </paragraph> <paragraph num="H."> <text>If a claimant has lost any wages because the claimant has been unable to work because of the injuries sustained in the accident, the claimant's employer shall confirm the claimant's employment and wages, and the claimant shall submit the employer's statement with the Notice of Claim.</text> </paragraph> <paragraph num="I."> <text>If a claimant sustained any personal injury in the accident, the claimant shall submit all bills for medical treatment provided up to the time the claimant files the Notice of Claim. If the claimant has additional medical expenses after filing, the claimant shall notify the Fund of that fact and submit the additional bills as soon as possible.</text> </paragraph> <paragraph num="J."> <text>If a claimant sustained any personal injury in the accident, the claimant shall submit or have the claimant’s doctors send to the Fund reports of all medical treatment, therapy, and consultation which the claimant received from the doctors or others under their supervision for the claimant’s injuries. The report shall include dates and nature of treatment or therapy, and any diagnosis and prognosis of the injuries. At the Fund’s request, the claimant shall provide complete information regarding the claimant’s prior injuries and medical conditions that are relevant to the claimant’s injuries.</text> </paragraph> <paragraph num="K."> <text>If any of the claimant's property is damaged in the accident, the claimant shall identify all the property and, except for motor vehicles, provide the current value, price, date, and location of purchase of the property. Documentation generally accepted includes appraisals, repair estimates for property of more than ordinary value, and cleaning or repair receipts.</text> </paragraph> <paragraph num="L."> <text>When a claimant submits a Notice of Claim, the claimant shall submit any police and other accident reports available. A claimant shall submit to a statement under oath as requested by the Fund regarding eligibility, the accident facts, and injuries.</text> </paragraph> <paragraph num="M."> <text>When a claimant files a Notice of Claim, the claimant shall submit a complete narrative of the accident, including:</text> <paragraph num="(1)"> <text>Date;</text> </paragraph> <paragraph num="(2)"> <text>Time;</text> </paragraph> <paragraph num="(3)"> <text>Location;</text> </paragraph> <paragraph num="(4)"> <text>Vehicles;</text> </paragraph> <paragraph num="(5)"> <text>Names and addresses of all known drivers, passengers, and witnesses; and</text> </paragraph> <paragraph num="(6)"> <text>Circumstances leading up to and involving the accident.</text> </paragraph> </paragraph> <text>FORM AT END OF CHAPTER</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Settlement of Claims Involving a Disappearing Motorist or Unidentified Motorist."> <paragraph num="A."> <text>It is the policy of the Fund to settle uninsured persons' claims as promptly as possible once the Notice of Claim is completed and filed with all appropriate documents, and without court involvement whenever possible. However, in some cases a claimant may be required to file suit. The Fund has the right to deny any claim, in whole or in part, in accordance with applicable law.</text> </paragraph> <paragraph num="B."> <text>Whenever a disappearing motorist has injured a claimant or damaged the claimant’s property, the claimant shall show, before any payment can be made, that all reasonable efforts have been made to learn the whereabouts of the owner and operator of the uninsured vehicle, for the purpose of filing a legal action against the owner and operator and obtaining personal service of process on them as required by the Maryland Rules of Procedure, but that they cannot be located.</text> </paragraph> <paragraph num="C."> <text>Whenever an unidentified motorist has injured a claimant or damaged a claimant's property, the claimant shall show, before any payment can be made, that:</text> <paragraph num="(1)"> <text>The claimant has made all reasonable efforts to identify the motor vehicle, and its owner and operator, but cannot do so; or</text> </paragraph> <paragraph num="(2)"> <text>The motor vehicle was being operated without the owner's consent and that the unauthorized operator cannot be located.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When a claimant and the Fund agree on a settlement for the claim, the claimant shall release the Fund from any further liability and assign to the Fund, on a form prescribed and furnished by the Fund, any cause of action or judgment the claimant may have against any uninsured owner or operator who may be legally responsible for the injuries or damages for which the claimant is seeking compensation.</text> </paragraph> <paragraph num="E."> <text>Settlement may be made by any claim representative in the Uninsured Division of the Fund.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Settlement of Claims Involving Known Uninsured Motorists."> <paragraph num="A."> <text>When the Fund has received a Notice of Claim, it shall attempt to contact the uninsured owner or operator, or both, to investigate the liability and damages on the part of the uninsured. It shall also negotiate with claimants to compensate them promptly, fairly, and equitably.</text> </paragraph> <paragraph num="B."> <text>If a claimant does not arrive at an agreed settlement with the Fund, the Fund shall notify the claimant in writing that the claimant’s only remedy will be to file suit against the uninsured owner or operator. The claimant shall show that service has been perfected and a judgment has been obtained against the owner or operator, or both the owner and operator, of the uninsured vehicle. The Fund may not be a party to the suit until the claimant has first obtained a judgment against the uninsured owner or operator or unless the Fund elects to intervene as a party. The Fund may not be obligated to intervene.</text> </paragraph> <paragraph num="C."> <text>The Fund may seek to obtain a consent agreement from the uninsured owner or operator in the form of either a confessed judgment or confessed judgment promissory note before the claimant is paid. If the uninsured does not consent within 60 days, then the Fund may not delay its negotiations with a claimant in further efforts to obtain the uninsured's consent. In any case, the claimant shall sign a proper release and subrogation agreement in favor of the Fund before payment can be made.</text> </paragraph> <paragraph num="D."> <text>If all parties agree to a settlement, the Fund will pay the claimant for the claim when all appropriate documents have been executed. If the Fund believes that obtaining a prompt judgment against the uninsured is necessary in a particular case, then payment may not be made until a final judgment, consent or otherwise, against the uninsured has been entered or assigned in favor of the Fund.</text> </paragraph> <paragraph num="E."> <text>If the uninsured does not settle with the claimant and the Fund, the Fund shall give the uninsured owner or operator notice, by certified mail, return receipt requested, to the uninsured owner or operator’s last known address, as provided for in Insurance Article, §20-605, Annotated Code of Maryland. After 30 days have passed, the Fund may settle with the claimant or require the claimant to proceed to file suit and proceed to trial against the uninsured owner or operator. If the Fund elects to settle, the claimant shall assign his judgment or causes of action against the uninsured to the Fund and agree to cooperate in any suit or trial which the Fund may bring against the uninsured. If a claimant does not cooperate at any time during the suit or trial, the claimant may be compelled to cooperate by court order.</text> </paragraph> <paragraph num="F."> <text>The Fund may assign counsel to represent an uninsured owner or operator. The uninsured owner or operator shall cooperate with the Fund in the defense of the action. If the uninsured does not cooperate, the Fund may apply to the court for an order directing cooperation or may send the uninsured owner or operator notice of the Fund’s and counsel’s withdrawal in the manner provided for in Insurance Article, §20-606, Annotated Code of Maryland, and by rule of court.</text> </paragraph> <paragraph num="G."> <text>The written notice which the Fund shall give of its proposed settlement or payment with the claimant under §E of this regulation shall be as follows:</text> <paragraph num="(1)"> <text>Content of Notice. The notice shall:</text> <paragraph num="(a)"> <text>Set forth the amount and all other pertinent terms of the proposed settlement or payment, as well as the terms and conditions of any repayment which the Fund shall require of the uninsured owner or operator;</text> </paragraph> <paragraph num="(b)"> <text>Advise the uninsured owner or operator of the owner or operator's right to contest the proposed settlement or payment, as to the owner or operator's liability for the accident or the amount of the damages claimed, or both, by informing the Fund in writing of the uninsured's objection within 30 days of the date of mailing appearing on the notice;</text> </paragraph> <paragraph num="(c)"> <text>Advise the uninsured owner or operator that judgment for the amount of the settlement may be entered and enforced against him.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Manner of Giving Notice. If the identity and whereabouts of the uninsured owner or operator are known or if his identity is known but his current whereabouts are unknown, the notice shall be sent by certified mail, return receipt requested, directed to his last known address, or his last address or record on file with the Motor Vehicle Administration of this State or of the state of his residence.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §20-201(d)(3)(iii), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 1, 1977 (4:24 Md. R. 1850)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06, Settlement of Uninsured Motorists' Claims Without Court Approval, repealed effective May 2, 1988 (15:9 Md. R. 1112)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06, Uninsured Persons' Claims for Compensation from the Maryland Automobile Insurance Fund, adopted effective May 2, 1988 (15:9 Md. R. 1112)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, E, F amended effective February 19, 2024 (51:3 Md. R.154)</annotation> </annotations> </chapter> </subtitle> <subtitle num="08" heading="Blind Industries and Services of Maryland"> <chapter num="01" heading="Licensing for the Sale of Products Made by the Blind"> <regulation prefix="Regulation" num=".01" heading="Intent of Regulations."> <paragraph num="A."> <text>Pursuant to the intent of the Annotated Code of Maryland, these regulations are to assure that persons, associations, or corporations engaged in the business of selling products made by the blind conduct themselves in the highest ethical fashion and in no way impose a negative influence on the quality of lives lived by blind persons in the State.</text> </paragraph> <paragraph num="B."> <text>These regulations are applicable to all persons, associations, or corporations selling products made by the blind, whether for profit or charitable purposes.</text> </paragraph> <paragraph num="C."> <text>A person, association, or corporation may not include in its sales presentation the information that the products being sold were made by blind persons unless this information is used to demonstrate the quality of the product being sold.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Application."> <paragraph num="A."> <text>A person, association, or corporation desiring to sell products made by blind persons shall apply to the Blind Industries and Services of Maryland and use a form provided by the Blind Industries and Services of Maryland, which form, as amended from time to time, is incorporated herein and made a part of these regulations.</text> </paragraph> <paragraph num="B."> <text>A person, association, or corporation may not commence the sale of products made by the blind before being issued a license by Blind Industries and Services of Maryland (“BISM”).</text> </paragraph> <paragraph num="C."> <text>All applicants shall be required to submit at least the following information as part of the application:</text> <paragraph num="(1)"> <text>Type of business organization and names and addresses of all persons investing monies and the amount of each investment;</text> </paragraph> <paragraph num="(2)"> <text>The names and addresses of all persons who will be entitled to participate in the profits or receive dividends derived from the sale of products made by blind persons, or both, and the percentage each will receive;</text> </paragraph> <paragraph num="(3)"> <text>The names and addresses and relationship to any other corporations, associations, or businesses that the applicant may have;</text> </paragraph> <paragraph num="(4)"> <text>The location of the business and any leases that have been or will be entered into for this location;</text> </paragraph> <paragraph num="(5)"> <text>Information to show compliance with laws governing employer-employee relations, including Equal Employment Opportunity regulations when applicable;</text> </paragraph> <paragraph num="(6)"> <text>Information filed with the Maryland Department of Assessments and Taxation and the Internal Revenue Service;</text> </paragraph> <paragraph num="(7)"> <text>The names, home addresses, ages, and compensation of all persons engaged in the sale or solicitation of sales of products made by blind persons;</text> </paragraph> <paragraph num="(8)"> <text>The form and content of the sales approach to be used, including type of approach (that is, door-to-door, telephone), written sales presentation to be used, areas of the State to be canvassed, types of and dates of canvassing and solicitation, and names, addresses, and ages of persons to be used in particular areas of the State;</text> </paragraph> <paragraph num="(9)"> <text>A list of products to be sold, purchase price, sale price, profit margin, and sources of products;</text> </paragraph> <paragraph num="(10)"> <text>A projected profit and loss statement of the business and a current balance sheet and profit and loss statement.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A fee of 50 cents shall be charged for each license and each renewal of a license for persons, associations, or corporations residing or having their main office in Maryland. The license and renewal fee shall be $5 for those persons, associations, or corporations not residing or having their main office in Maryland.</text> </paragraph> <paragraph num="E."> <text>Before the filing of this application or the sale of products made by blind persons, or both, applicants are required to read and understand Article 30, §30A, Annotated Code of Maryland, and these regulations.</text> </paragraph> <paragraph num="F."> <text>Each license holder shall notify Blind Industries and Services of Maryland of any change or changes with respect to information furnished in its original application or subsequent renewal applications concerning sales approach, personnel, or areas of operations within 10 days after the change or changes occur.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Renewal Application."> <paragraph num="A."> <text>Annually, 30 days before the close of a calendar year subsequent to the original date of issuance of a license to sell products made by the blind, the license holder shall submit a renewal application. Renewal applications shall be obtained by written request to the Blind Industries and Services of Maryland.</text> </paragraph> <paragraph num="B."> <text>Financial Statements. A license holder shall submit with the renewal application an annual financial statement covering its operations for the preceding fiscal year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Violations, Rejections, and evocations."> <text>Violation of any of the following requirements shall subject an applicant or license holder, as the case may be, to rejection of an application, reprimand, suspension, or revocation of a license:</text> <paragraph num="A."> <text>Incorrect or incomplete information in an original or renewal application;</text> </paragraph> <paragraph num="B."> <text>Failure to inform Blind Industries and Services of Maryland of changes in personnel, sales approach, or area of operations as set forth in Items 6, 7, 17(a), 17(b), and 17(c) of the application;</text> </paragraph> <paragraph num="C."> <text>Any misrepresentation with respect to a product being sold;</text> </paragraph> <paragraph num="D."> <text>Any failure to conform to the provisions of Article 30, §30A, Annotated Code of Maryland, or these regulations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Procedure for Investigation of Complaints."> <paragraph num="A."> <text>Any person who alleges by written complaint a violation of any law regulating the sale of products made by blind persons may initiate an investigation by Blind Industries and Services of Maryland. The complaint shall be accompanied by documents, contracts, or other records relevant to the complaint to the extent that these written materials exist.</text> </paragraph> <paragraph num="B."> <text>Upon receipt of a sworn and written complaint, the Chairman of the Board of Trustees shall cause to be conducted a preliminary investigation of any person alleged to have violated the law, and a notice of preliminary investigation shall be delivered to all persons subject to this investigation. This notice shall contain a brief statement of the complaint and the sections of the law alleged to have been violated.</text> </paragraph> <paragraph num="C."> <text>After the preliminary investigation, the complainant and the person subject to investigation shall receive a written report of the investigation with an opinion as to any probable cause of a violation of the law.</text> </paragraph> <paragraph num="D."> <text>If probable cause of a violation is disclosed by the preliminary investigation, then all persons, including the complainant, shall be required to attend an informal conference in the offices of BISM. All other interested parties to the investigation shall be invited to attend.</text> </paragraph> <paragraph num="E."> <text>The informal conference shall be for the purpose of explaining the law and the rights or duties of the parties with respect thereto with the intention of adjusting the complaint.</text> </paragraph> <paragraph num="F."> <text>If the informal conference fails to adjust the complaint, any party (including the representative of BISM) may request a hearing by sending a written request to the Chairman of the Board of Trustees within 25 days after the informal conference.</text> </paragraph> <paragraph num="G."> <text>The Chairman of the Board of Trustees shall have the discretion to order a hearing upon his own motion at any time within 25 days following the informal conference.</text> </paragraph> <paragraph num="H."> <text>A notice of hearing with a brief statement of the allegations and references to the appropriate sections of the law shall be delivered to all parties involved.</text> </paragraph> <paragraph num="I."> <text>The time and place of the hearing may not be changed unless 7 days prior thereto written notice is delivered to the Chairman of the Board of Trustees with reasonable grounds therefor, and granted by the Chairman.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Procedure for Hearings on Complaints."> <paragraph num="A."> <text>The matter shall be heard by a panel of three chosen by the Chairman of the Board of Trustees. One member of the panel shall be the President of BISM and two other members shall be chosen from the Board of Trustees. He shall designate one member as Chairman of the Panel.</text> </paragraph> <paragraph num="B."> <text>The style of the complaint shall be called, and all persons summoned or who intend to give testimony shall be sworn.</text> </paragraph> <paragraph num="C."> <text>The Chairman shall explain briefly the purpose and nature of the hearing.</text> </paragraph> <paragraph num="D."> <text>Introduction of the following exhibits shall be made:</text> <paragraph num="(1)"> <text>The written complaint;</text> </paragraph> <paragraph num="(2)"> <text>Acknowledgement of the complaint;</text> </paragraph> <paragraph num="(3)"> <text>Notice of the complaint and preliminary investigation;</text> </paragraph> <paragraph num="(4)"> <text>Report of the preliminary investigation;</text> </paragraph> <paragraph num="(5)"> <text>Notice of informal conference;</text> </paragraph> <paragraph num="(6)"> <text>Written request for hearing;</text> </paragraph> <paragraph num="(7)"> <text>Notices of hearing.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Counsel for any interested party may be heard on any preliminary objections, exceptions, or motions, provided counsel represents a person subject to some penalty under the law.</text> </paragraph> <paragraph num="F."> <text>Introduction for identification only of any contracts, checks, notices, receipts, letters, files, or other documents relevant to the hearing shall be proffered.</text> </paragraph> <paragraph num="G."> <text>Counsel for BISM shall conduct the initial examination of the witness, and any person subject to penalties under the law, or his counsel, shall be permitted to cross examine each witness in turn, after which counsel for BISM may examine the witness on redirect examination.</text> </paragraph> <paragraph num="H."> <text>The rules of evidence of the Administrative Procedure Act, Article 41, §252, Annotated Code of Maryland, shall apply. A copy of this section shall be furnished to the parties at or before the hearing.</text> </paragraph> <paragraph num="I."> <text>Any person subject to penalty under the law may introduce any testimony or other evidence in rebuttal or of any affirmative nature. Any witness so introduced shall be subject to cross examination.</text> </paragraph> <paragraph num="J."> <text>Counsel for BISM or any person subject to penalty under the law may make any statement or argument relevant to the hearing.</text> </paragraph> <paragraph num="K."> <text>If the hearing panel determines that there is probable cause to believe that a violation of Article 30, §30A, has been committed, it shall refer, within 7 days, its findings to the Office of the State's Attorney within the jurisdiction where the violation has occurred.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedure for Hearings on Suspension or Revocation of Licenses."> <paragraph num="A."> <text>The matter shall be heard by a panel selected as set forth in Regulation .06A.</text> </paragraph> <paragraph num="B."> <text>The title of the case shall be called, and all persons summoned or who intend to give testimony shall be sworn.</text> </paragraph> <paragraph num="C."> <text>The Chairman shall explain briefly the purpose and nature of the hearing, and shall recite the charges brought against the licensee, giving reference to the particular statute and sections thereof.</text> </paragraph> <paragraph num="D."> <text>Counsel for any interested party may be heard for any preliminary objections, exceptions, or motions, provided counsel represents a person whose property rights may be affected by the hearing.</text> </paragraph> <paragraph num="E."> <text>Introduction for identification only of any contracts, checks, notices, receipts, letters, files, or other documents relevant to the charges shall be proffered.</text> </paragraph> <paragraph num="F."> <text>The Counsel for BISM shall conduct the initial examination of the witnesses and then any person subject to penalties under the law or his counsel shall be permitted to cross examine the witnesses, after which, the counsel for BISM may examine the witness on redirect examination.</text> </paragraph> <paragraph num="G."> <text>Any person subject to penalty under the law may introduce any testimony or other evidence in rebuttal or of an affirmative nature. Any witness so introduced shall be subject to cross examination.</text> </paragraph> <paragraph num="H."> <text>Counsel for BISM or any person subject to penalty under the law or through his attorney may make any statement or argument relevant to the hearing.</text> </paragraph> <paragraph num="I."> <text>The rules of evidence of the Administrative Procedure Act, Article 41, §252, Annotated Code of Maryland, shall apply. A copy of the section shall be furnished to the parties at or before the hearing.</text> </paragraph> <paragraph num="J."> <text>The hearing panel shall file in BISM's office its findings which may result in suspension or revocation of the respondent's license or a reprimand to the respondents and a statement of all facts considered by them upon which the findings are based. A copy of the findings shall be given to each party involved.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Petition for Declaratory Rulings."> <paragraph num="A."> <text>A licensee of BISM may petition the Chairman of the Board of Trustees for a ruling on the applicability of any regulation or of any statute to this licensee.</text> </paragraph> <paragraph num="B."> <text>The petition shall state the regulation or statute to be considered and a concise statement of the facts.</text> </paragraph> <paragraph num="C."> <text>The petition shall contain all statutes, judicial decisions, or regulations relevant to the issue.</text> </paragraph> <paragraph num="D."> <text>The petitioner may request a hearing to present any argument in support of the issue.</text> </paragraph> <paragraph num="E."> <text>The Chairman of the Board of Trustees, within 30 days from the presentation of the petition or the hearing, shall render a declaratory ruling on the petition.</text> </paragraph> <paragraph num="F."> <text>Any declaratory ruling may be modified or reversed by the adoption of regulations after the ruling as provided in Article 41, §245, Annotated Code of Maryland.</text> </paragraph> <paragraph num="G."> <text>Copies of all declaratory rulings shall be recorded in the office of BISM.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Advertising."> <paragraph num="A."> <text>Every advertisement shall state or clearly indicate the identity of the licensee in such a manner as to prevent confusion with the name of any other unrelated licensee.</text> </paragraph> <paragraph num="B."> <text>A licensee may not advertise any statement or claims as to the superiority of any product which is not true.</text> </paragraph> <paragraph num="C."> <text>A licensee may not advertise any warranties on any products which are not given to the customer in writing at the time of purchase.</text> </paragraph> <paragraph num="D."> <text>All advertisements shall be submitted to the Chairman of the Board of Trustees of BISM at least 25 days before release. If the licensee does not receive a notice of disapproval from the Chairman at least 10 days before this advertising is to be released, then the licensee may proceed with this advertising on schedule. Any advertising which has not been disapproved may be repeated without further approval.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 30, §30A, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 30, 1978 (5:13 Md. R. 1064)</annotation> </annotations> </chapter> </subtitle> <subtitle num="09" heading="Workers' Compensation Commission"> <chapter num="01" heading="General Administrative"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Affidavit” means a written statement the contents of which are affirmed under the penalties of perjury to be true.</text> </paragraph> <paragraph num="(2)"> <text>“Automatic award” means the order finding the claim compensable when:</text> <paragraph num="(a)"> <text>The employer or insurer files no response to an employee’s claim form by the consideration date in accordance with Labor and Employment Article, §9-713, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>The employer or insurer files a response that the claim does not involve lost time; or</text> </paragraph> <paragraph num="(c)"> <text>The employer or insurer files a response that the employer or insurer does not contest the claim.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Certified mail” means mail deposited with the United States Postal Service, postage prepaid and return receipt requested.</text> </paragraph> <paragraph num="(4)"> <text>“Claimant” means a person filing a workers' compensation claim and includes:</text> <paragraph num="(a)"> <text>A covered employee;</text> </paragraph> <paragraph num="(b)"> <text>A dependent of a deceased covered employee; or</text> </paragraph> <paragraph num="(c)"> <text>An individual authorized to act on behalf of a dependent of a deceased covered employee.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Commission” means either the Workers' Compensation Commission or its designee.</text> </paragraph> <paragraph num="(6)"> <text>“CompHub” means the Commission’s online system designed to facilitate the filing and adjudication of workers’ compensation claims, and to provide other services related to workers’ compensation benefits.</text> </paragraph> <paragraph num="(7)"> <text>“Consideration date” means the day by which the employer or its insurer must begin paying temporary total disability benefits, or file with the Commission any issue to contest the claim in accordance with Labor and Employment Article, §9-713, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Contact information” means the name of a person submitting a document or of a person on whose behalf a document is being submitted, telephone numbers, personal or business addresses, email addresses, employer identification and address, or similar facts that make it possible for another to contact a person who is named in a document.</text> </paragraph> <paragraph num="(9)"> <text>“Disputed workers' compensation claim” means a:</text> <paragraph num="(a)"> <text>Newly filed claim from the date it is filed until the employer or insurer commences paying the claim or until the consideration date has expired;</text> </paragraph> <paragraph num="(b)"> <text>New claim in which issues have been filed;</text> </paragraph> <paragraph num="(c)"> <text>Pending claim in which one or more issues have been filed; or</text> </paragraph> <paragraph num="(d)"> <text>Claim that is pending on appeal.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>File.</text> <paragraph num="(a)"> <text>“File” means to submit to the Commission a written claim, motion, request, or other document for action by the Commission.</text> </paragraph> <paragraph num="(b)"> <text>“File” does not include a submission rejected by the Commission.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Final award” means the award of compensation determined by the Commission after exhaustion of all applicable appeals, regardless of whether the award is increased or decreased as a result of any appeal.</text> </paragraph> <paragraph num="(12)"> <text>“Formal set-aside allocation” means a document reflecting a comprehensive analysis and projection of future injury-related medical needs and associated costs.</text> </paragraph> <paragraph num="(13)"> <text>“Healthcare provider delegate” means administrative or support staff designated by a health care provider to have access to basic claim information for the purpose of obtaining settlement, claim and hearing status information.</text> </paragraph> <paragraph num="(14)"> <text>“Individual” means a human being.</text> </paragraph> <paragraph num="(15)"> <text>“Insurer” means:</text> <paragraph num="(a)"> <text>A stock corporation or mutual association that is authorized under the Insurance Article, Annotated Code of Maryland, to provide workers' compensation insurance in the State;</text> </paragraph> <paragraph num="(b)"> <text>The Chesapeake Employers' Insurance Company authorized under Insurance Article, Title 24, Subtitle 3, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>A governmental self-insurance group that meets the requirements of Labor and Employment Article, §9-404, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(d)"> <text>A self-insurance group of private employers that meets the requirements of Insurance Article, §§25-301—25-308, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(e)"> <text>An individual employer that self-insures in accordance with Labor and Employment Article, §9-405, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Insurer delegate” means administrative or support staff, designated by an insurer, to have access to all claim documents in all claims in which the insurer is a party for the purpose of filing documents and managing claims.</text> </paragraph> <paragraph num="(17)"> <text>“Non-compromise case” means a case in which the employer/insurer has not contested liability or in which the Commission has found liability and in which the settlement compensates the claimant for anticipated future medical expenses.</text> </paragraph> <paragraph num="(18)"> <text>“Paper” means a document filed with the Commission, whether in physical paper form or electronic form or format.</text> </paragraph> <paragraph num="(19)"> <text>“Person” means:</text> <paragraph num="(a)"> <text>An individual;</text> </paragraph> <paragraph num="(b)"> <text>A general or limited partnership;</text> </paragraph> <paragraph num="(c)"> <text>A joint stock company;</text> </paragraph> <paragraph num="(d)"> <text>An unincorporated association or society;</text> </paragraph> <paragraph num="(e)"> <text>A municipal or other corporation;</text> </paragraph> <paragraph num="(f)"> <text>An incorporated association;</text> </paragraph> <paragraph num="(g)"> <text>A limited liability partnership;</text> </paragraph> <paragraph num="(h)"> <text>A limited liability company;</text> </paragraph> <paragraph num="(i)"> <text>The State, its agencies or political subdivisions; or</text> </paragraph> <paragraph num="(j)"> <text>A governmental entity.</text> </paragraph> </paragraph> <paragraph num="(20)"> <text>“Proxy” means administrative or support staff, designated by an attorney, to have access to all claim documents in all claims in which the attorney has entered the attorney's appearance for the purpose of filing documents and managing claims.</text> </paragraph> <paragraph num="(21)"> <text>“Role” means the functionality and type of account for which a user is authorized in CompHub and includes the following and their delegates and proxies:</text> <paragraph num="(a)"> <text>Attorney;</text> </paragraph> <paragraph num="(b)"> <text>Claimant;</text> </paragraph> <paragraph num="(c)"> <text>Employer;</text> </paragraph> <paragraph num="(d)"> <text>Insurer;</text> </paragraph> <paragraph num="(e)"> <text>Healthcare provider or practitioner; and</text> </paragraph> <paragraph num="(f)"> <text>Vocational rehabilitation provider or practitioner.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Signature” includes electronic signature pursuant to Commercial Law Article, §21-101(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(23)"> <text>“State average weekly wage” means the State average weekly wage in effect on the date of the accident or date of disablement.</text> </paragraph> <paragraph num="(24)"> <text>“Subpoena” means a written order directed to a person and requiring attendance at a particular time and place to take the action specified.</text> </paragraph> <paragraph num="(25)"> <text>“Subscriber” means an authorized user in CompHub having the access applicable to the role for which the user is authorized.</text> </paragraph> <paragraph num="(26)"> <text>“Subsequent Injury Fund” or “SIF” means the statutorily created entity, funded by assessments on workers' compensation awards and settlements, that may be a party to a claim and which pays benefits attributable to a compensable injury to previously injured body parts.</text> </paragraph> <paragraph num="(27)"> <text>“Undisputed workers' compensation claim” means a claim in which all issues have been:</text> <paragraph num="(a)"> <text>Withdrawn;</text> </paragraph> <paragraph num="(b)"> <text>Resolved by a decision of the commission that is not appealed; or</text> </paragraph> <paragraph num="(c)"> <text>Resolved on appeal.</text> </paragraph> </paragraph> <paragraph num="(28)"> <text>“Uninsured Employers' Fund” or “UEF” means the statutorily created entity, funded by assessments on workers' compensation awards and settlements, that may be a party to a claim and which pays workers compensation awards made against an uninsured employer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Commission Forms."> <paragraph num="A."> <text>Use of Commission forms, available on the Commission’s website or through CompHub, is mandatory. Use of Commission forms for any purpose for which they are not intended may result in delay or denial of the relief sought.</text> </paragraph> <paragraph num="B."> <text>Where the Commission has not created a form but has directed that the party or attorney prepare its own petition or motion, the party or attorney shall draft and file the required papers.</text> </paragraph> <paragraph num="C."> <text>Power of Attorney.</text> <paragraph num="(1)"> <text>If a party files a form or document under power of attorney, the party shall:</text> <paragraph num="(a)"> <text>Use a statutory form power of attorney in accordance with Estates and Trusts Article, §§17-101—17-204, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>File electronically a copy of the power of attorney with the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Only one copy of the power of attorney need be filed with the Commission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Service of Papers."> <paragraph num="A."> <text>Service by Commission.</text> <paragraph num="(1)"> <text>The Commission shall serve all notices, orders, and decisions, by:</text> <paragraph num="(a)"> <text>Electronic means:</text> <paragraph num="(i)"> <text>To each party’s attorney of record who has registered with CompHub and consents; and</text> </paragraph> <paragraph num="(ii)"> <text>To each unrepresented party who has registered with CompHub and consents; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>First-class mail.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Commission notices, awards, orders, and decisions are sent by electronic means or mailed by first-class mail on the date of issue shown on the notice, award, order, or decision.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Service by Parties.</text> <paragraph num="(1)"> <text>Except as otherwise provided in these regulations, a copy of every paper, form, or document filed with the Commission by a party shall be served promptly on all other parties.</text> </paragraph> <paragraph num="(2)"> <text>If a party is represented by an attorney, service shall be made upon the attorney unless service on the party is directed by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Service may be made by:</text> <paragraph num="(a)"> <text>Handing the papers to the party or attorney;</text> </paragraph> <paragraph num="(b)"> <text>Leaving the papers at that person's office with an individual in charge, or, if there is no one in charge, leaving the papers in a conspicuous place in the office, or, if the office is closed or the person has no office, leaving the papers at the person's usual place of residence with an individual of suitable age and discretion residing there;</text> </paragraph> <paragraph num="(c)"> <text>Mailing the papers to the address most recently stated in a paper filed by the party or attorney, or if not stated, to the last known address; or</text> </paragraph> <paragraph num="(d)"> <text>Electronic means.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Service by mail is complete upon mailing.</text> </paragraph> <paragraph num="(5)"> <text>Service by electronic means is complete upon sending the electronic filing or service, but service is not effective if the person who filed with the Commission or the person who sent by electronic means learns that the paper did not reach the person to be served. This regulation does not make the Commission responsible for notifying a person who filed the paper with CompHub that an attempted transmission by CompHub failed. But a filer who learns that the transmission failed is responsible for making effective service.</text> </paragraph> <paragraph num="(6)"> <text>Each paper filed that is required to be served shall be accompanied by a certificate of service, signed by the party or the party's attorney, showing the date and manner of making service on each of the other parties.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Filing Forms and Documents with the Commission."> <text>Forms and documents may be filed with the Commission by one of the following methods:</text> <paragraph num="A."> <text>Electronically through CompHub;</text> </paragraph> <paragraph num="B."> <text>In person at the Commission’s principal office in Baltimore City; or</text> </paragraph> <paragraph num="C."> <text>By mail addressed to the Commission's principal office in Baltimore City.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Hours of Business."> <text>Except for legal holidays, the hours of business of the Commission are Monday through Friday, 8 a.m. to 4:30 p.m.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Waiver of Strict Compliance."> <text>When justice so requires, the Commission may waive strict compliance with these regulations.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Powers and Duties of Commissioners."> <paragraph num="A."> <text>A Commissioner shall:</text> <paragraph num="(1)"> <text>Conduct a full, fair, and impartial hearing;</text> </paragraph> <paragraph num="(2)"> <text>Take action to avoid unnecessary delay in the disposition of the proceedings; and</text> </paragraph> <paragraph num="(3)"> <text>Maintain order.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A Commissioner has the power to regulate the course of the hearing and the conduct of the parties and authorized representatives, including but not limited to, the power to:</text> <paragraph num="(1)"> <text>Administer oaths and affirmations;</text> </paragraph> <paragraph num="(2)"> <text>Issue subpoenas for witnesses and the production of evidence;</text> </paragraph> <paragraph num="(3)"> <text>Rule upon offers of proof and receive relevant and material evidence;</text> </paragraph> <paragraph num="(4)"> <text>Consider and rule upon motions and requests;</text> </paragraph> <paragraph num="(5)"> <text>Examine witnesses and call witnesses as necessary to ensure a full and complete record;</text> </paragraph> <paragraph num="(6)"> <text>Limit repetitious testimony and reasonably limit the time for presentations;</text> </paragraph> <paragraph num="(7)"> <text>Grant a continuance of a hearing;</text> </paragraph> <paragraph num="(8)"> <text>Issue orders as are necessary to secure procedural simplicity and administrative fairness and to eliminate unjustifiable expense and delay;</text> </paragraph> <paragraph num="(9)"> <text>Conduct the hearing in a manner suited to ascertain the facts and safeguard the rights of the parties to the hearing; and</text> </paragraph> <paragraph num="(10)"> <text>Impose appropriate sanctions for the failure to abide by this chapter or any lawful order of the Commissioner.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Referral for Fraud."> <paragraph num="A."> <text>Pursuant to Labor and Employment Article, §9-310.2(a), Annotated Code of Maryland, any party may request that the Commission refer the case to the Insurance Fraud Division of the Maryland Insurance Administration for investigation.</text> </paragraph> <paragraph num="B."> <text>A party requesting a referral to the Insurance Fraud Division shall complete a fraud referral form provided by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="CompHub Conditions of Use."> <paragraph num="A."> <text>A subscriber shall:</text> <paragraph num="(1)"> <text>Provide the Commission with current contact information and promptly update this information as it changes; and</text> </paragraph> <paragraph num="(2)"> <text>Abide by the terms of the service agreement available on CompHub, applicable to the role for which the user is authorized in CompHub.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Continued use of CompHub constitutes agreement to abide by the terms of the CompHub service agreement.</text> </paragraph> <paragraph num="C."> <text>A subscriber’s CompHub subscription may be suspended or terminated if the subscriber:</text> <paragraph num="(1)"> <text>Fails to provide the Commission with current contact information;</text> </paragraph> <paragraph num="(2)"> <text>Fails to protect the subscriber’s username and password;</text> </paragraph> <paragraph num="(3)"> <text>Uses the system in a manner inconsistent with its stated purpose;</text> </paragraph> <paragraph num="(4)"> <text>Permits unauthorized use of the subscriber's account; or</text> </paragraph> <paragraph num="(5)"> <text>Violates the terms of the service agreement available on CompHub, applicable to the role for which the user is authorized in CompHub.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Notices Concerning Claims — Posting by Employer."> <text>The employer shall keep conspicuously posted at places of employment controlled or operated by the employer all written notices provided to the employer by the Commission or the employer's insurance carrier (or prepared by the employer, if self-insured) that give instructions or convey information to persons interested in or entitled to benefits under Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">Health-General Article, §4-303; Insurance Article, §§19-405 and 19-406;Labor and Employment Article, §§9-307, 9-309, 9-310.2, 9-314, 9-404, 9-405, 9-410, 9-602, 9-603, 9-610.1, 9-625, 9-635, 9-689, 9-701, 9-709, 9-710, 9-711, 9-721, 9-731, 9-736, 9-739, and 9-6A-07; State Government Article, §10-1103; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 1, 1958</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 1, 1983 (10:12 Md. R. 1073)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 repealed and new Regulation .11 adopted as an emergency provision effective March 26, 1990 (17:10 Md. R. 1217); emergency status extended at 18:4 Md. R. 445 (February 22, 1991) and 18:10 Md. R. 1114 (May 17, 1991)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.25 repealed effective October 1, 1991 (18:11 Md. R. 1187)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.29 adopted effective October 1, 1991 (18:11 Md. R. 1187)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 28, 2001 (28:10 Md. R. 949); September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 11, 2005 (32:7 Md. R. 683)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective January 4, 2010 (37:3 Md. R. 173); emergency status extended at 37:15 Md. R. 997</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective November 28, 2011 (38:24 Md. R. 1503)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective May 16, 2011 (38:10 Md. R. 616)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05E amended effective June 16, 2008 (35:12 Md. R. 1120)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 repealed effective April 12, 2004 (31:7 Md. R. 586)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted as an emergency provision effective November 5, 2007 (34:24 Md. R. 2155); emergency status extended at 35:9 Md. R. 894; emergency status expired July 31, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted effective August 11, 2008 (35:16 Md. R. 1391)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective March 21, 2011 (38:6 Md. R. 397)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C, D repealed as an emergency provision effective October 5, 2011 (38:23 Md. R. 1417); repealed permanently effective March 19, 2012 (39:5 Md. R. 384)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06-1 adopted as an emergency provision effective October 5, 2011 (38:23 Md. R. 1417); adopted permanently effective March 19, 2012 (39:5 Md. R. 384)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended effective July 16, 2007 (34:14 Md. R. 1246)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B amended effective September 2, 2002 (29:17 Md. R. 1382); October 15, 2012 (39:20 Md. R. 1307)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07C adopted effective October 15, 2012 (39:20 Md. R. 1307)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B repealed as an emergency provision effective November 5, 2007 (34:24 Md. R. 2155); emergency status extended at 35:9 Md. R. 894; emergency status expired July 31, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B repealed effective August 11, 2008 (35:16 Md. R. 1391)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10D amended effective February 1, 1996 (23:2 Md. R. 96)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12A amended effective February 1, 1996 (23:2 Md. R. 96)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective February 1, 1996 (23:2 Md. R. 96); September 12, 2005 (32:18 Md. R. 1521)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective March 15, 2004 (31:5 Md. R. 450)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective February 1, 1996 (23:2 Md. R. 96)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14F adopted effective November 8, 2004 (31:22 Md. R. 1597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended as an emergency provision effective January 4, 2010 (37:3 Md. R. 173); emergency status extended at 37:15 Md. R. 997</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended effective November 28, 2011 (38:24 Md. R. 1503)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19A amended effective April 16, 2012 (39:7 Md. R. 495)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 amended effective June 28, 1999 (26:13 Md. R. 1020)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 repealed effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23 amended effective May 28, 2001 (28:10 Md. R. 949); November 26, 2001 (28:23 Md. R. 2055); September 2, 2002 (29:17 Md. R. 1382); July 4, 2005 (32:13 Md. R. 1116)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23B amended effective July 4, 2005 (32:13 Md. R. 1116)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24D adopted effective August 20, 2012 (39:16 Md. R. 1081)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25 amended effective January 14, 2010 (37:1 Md. R. 15); July 26, 2010 (37:15 Md. R. 1000)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25B amended effective March 17, 2003 (30:5 Md. R. 367)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25B amended as an emergency provision effective April 8, 2003 (30:9 Md. R. 609); amended permanently effective August 18, 2003 (30:16 Md. R. 1075)</annotation> <annotation type="History" subtype="Administrative History">Regulation .27 repealed and new Regulation .27 adopted effective July 3, 2006 (33:13 Md. R. 1064)</annotation> <annotation type="History" subtype="Administrative History">Regulation .30 adopted effective March 14, 2005 (32:4 Md. R. 581)</annotation> <annotation type="History" subtype="Administrative History">Regulation .31 adopted effective December 8, 2005 (32:24 Md. R. 1905)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 3, 2014 (41:4 Md. R. 303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective March 12, 2018 (45:5 Md. R. 287); August 24, 2020 (47:17 Md. R. 797); October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective August 24, 2020 (47:17 Md. R. 797); October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective December 10, 2015 (42:24 Md. R. 1505); August 24, 2020 (47:17 Md. R. 797)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective August 24, 2020 (47:17 Md. R. 797); October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulations .11—.17, 26, and 27 repealed effective August 4, 2014 (41:15 Md. R. 892)</annotation> </annotations> </chapter> <chapter num="02" heading="Requirements for Filing and Amending Claims"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Apostille” means a certificate issued under the Apostille Convention authenticating the origin of a public document.</text> </paragraph> <paragraph num="(2)"> <text>“Apostille Convention” means the Hague Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents.</text> </paragraph> <paragraph num="(3)"> <text>“Authorization for Disclosure of Health Information” means the executed release authorizing the disclosure of protected health information in accordance with Labor and Employment Article, §§9-709, 9-710, and 9-711, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Certified copy” means a duplicate of an original document that is certified as a true and accurate copy by the officer having custody of the original.</text> </paragraph> <paragraph num="(5)"> <text>“Competent authority” means an authority designated by a Contracting State as competent to issue apostilles.</text> </paragraph> <paragraph num="(6)"> <text>“Foreign State” means a foreign sovereign state or country.</text> </paragraph> <paragraph num="(7)"> <text>“State of origin” means the country where the document was created or issued.</text> </paragraph> <paragraph num="(8)"> <text>“State Party” means a State that has joined the Apostille Convention, for which the Convention is in effect.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Requirements for Filing and Amending Claims."> <paragraph num="A."> <text>Claim for Benefits.</text> <paragraph num="(1)"> <text>To initiate a claim for benefits, an employee shall file a claim form with the Commission as follows:</text> <paragraph num="(a)"> <text>If represented by counsel, counsel shall file the claim on behalf of the employee electronically through CompHub; or</text> </paragraph> <paragraph num="(b)"> <text>If unrepresented by counsel, the employee may file the claim:</text> <paragraph num="(i)"> <text>Electronically through CompHub; or</text> </paragraph> <paragraph num="(ii)"> <text>By paper form.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission shall reject a claim form that does not contain sufficient information to process the claim, including:</text> <paragraph num="(a)"> <text>The employee's name;</text> </paragraph> <paragraph num="(b)"> <text>The employee's address;</text> </paragraph> <paragraph num="(c)"> <text>The employee's date of birth;</text> </paragraph> <paragraph num="(d)"> <text>The date of the accident or occupational disease;</text> </paragraph> <paragraph num="(e)"> <text>The member of the body that was injured;</text> </paragraph> <paragraph num="(f)"> <text>A description of how the accidental injury or occupational disease occurred; and</text> </paragraph> <paragraph num="(g)"> <text>The employee's employer's name and address.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Parties and attorneys of record shall notify the Commission of any change in their contact information within 30 days of the change. The Commission may rely on the latest information received by it for service of any papers.</text> </paragraph> <paragraph num="(4)"> <text>The employee shall sign the claim form certifying that the information submitted on the claim form is accurate.</text> </paragraph> <paragraph num="(5)"> <text>When completing the claim form, the claimant shall sign an authorization for disclosure of health information for the release to the claimant's attorney, the claimant's employer, the employer's insurer, the Subsequent Injury Fund, the Uninsured Employers’ Fund, or any agent thereof, the claimant's medical information that is relevant to:</text> <paragraph num="(a)"> <text>The member of the body that was injured by an accident or occupational disease, as indicated on the claim form; and</text> </paragraph> <paragraph num="(b)"> <text>The description of how the accidental injury or occupational disease occurred, as indicated on the claim form.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Revocation of Authorization.</text> <paragraph num="(a)"> <text>A claimant may revoke an authorization for disclosure of health information in writing.</text> </paragraph> <paragraph num="(b)"> <text>The claimant shall serve a copy of the written revocation on all parties in the case.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The Commission shall reject a claim form that does not contain a signed authorization for disclosure of health information.</text> </paragraph> <paragraph num="(8)"> <text>Date of Filing When Filed by Paper Form.</text> <paragraph num="(a)"> <text>Except as provided in §A(9) of this regulation, a claim is considered filed on the date that a completed and signed claim form, including the signed authorization for disclosure of health information, is received by the Commission in person or by mail addressed to the Commission’s principal office in Baltimore City.</text> </paragraph> <paragraph num="(b)"> <text>For any claim form that has not been rejected as incomplete under §A(2) of this regulation, the Commission’s date of receipt is determined by the date stamp affixed on the claim form.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Date of Filing When Submitted Electronically.</text> <paragraph num="(a)"> <text>For any claim form that has not been rejected under §A(2) of this regulation, the date of receipt is determined by the date stamp affixed on the electronically submitted claim form, provided that the signed claim form, including the signed authorization for disclosure of health information, is verified by the Commission.</text> </paragraph> <paragraph num="(b)"> <text>A claim electronically submitted but not verified by the Commission as provided in §A(9)(b) of this regulation is not considered filed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Social Security Number.</text> <paragraph num="(1)"> <text>Voluntary Disclosure of Social Security Number.</text> <paragraph num="(a)"> <text>On the claim form, the Commission shall request the Social Security Number of each claimant for workers' compensation benefits.</text> </paragraph> <paragraph num="(b)"> <text>The disclosure of the Social Security Number by the claimant on the claim form is voluntary.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Use of Social Security Number.</text> <paragraph num="(a)"> <text>The Commission may use the Social Security Number for the following purposes:</text> <paragraph num="(i)"> <text>Verifying wage records of a claimant;</text> </paragraph> <paragraph num="(ii)"> <text>Verifying the identity of a claimant;</text> </paragraph> <paragraph num="(iii)"> <text>Identifying a claimant who has changed his or her name;</text> </paragraph> <paragraph num="(iv)"> <text>Verifying medical records necessary to adjudicate workers' compensation claims;</text> </paragraph> <paragraph num="(v)"> <text>The administration and enforcement of Maryland's workers' compensation laws;</text> </paragraph> <paragraph num="(vi)"> <text>The collection of any debts owed as a result of the claimant's failure to pay child support under Title 10 of the Family Law Article; and</text> </paragraph> <paragraph num="(vii)"> <text>Assisting in the enforcement of child support orders as required by State and federal laws.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Commission may not use the social security number for any purpose not authorized under this regulation or by state or federal law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Amendment of Claim to Add or Remove a Body Part.</text> <paragraph num="(1)"> <text>A claimant may amend a claim to add or remove a member of the body by filing with the Commission a claim amendment form.</text> </paragraph> <paragraph num="(2)"> <text>A claimant shall serve a copy of a claim amendment form on the parties of record.</text> </paragraph> <paragraph num="(3)"> <text>The claimant shall sign the claim amendment form certifying that the information submitted on the claim amendment form is accurate.</text> </paragraph> <paragraph num="(4)"> <text>When completing the claim amendment form, the claimant shall sign an authorization for disclosure of health information authorizing the claimant's health care providers to disclose to the claimant's attorney, the claimant's employer, the employer's insurer, the Subsequent Injury Fund, the Uninsured Employers’ Fund, or any agent thereof, the claimant's medical information that is relevant to the member of the body identified by the claim amendment form.</text> </paragraph> <paragraph num="(5)"> <text>The Commission shall reject a claim amendment form that does not contain a signed authorization for disclosure of health information.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Adding or Impleading a Party."> <paragraph num="A."> <text>A party may amend a claim to add another party by filing a request to implead a party form.</text> </paragraph> <paragraph num="B."> <text>A party may amend a claim to add an employer, a statutory employer, an insurance carrier, the Subsequent Injury Fund or the Uninsured Employers’ Fund.</text> </paragraph> <paragraph num="C."> <text>Impleading the Subsequent Injury Fund.</text> <paragraph num="(1)"> <text>A party impleading the Subsequent Injury Fund more than 30 days before a scheduled hearing date shall file a request to implead a party form and shall serve the SIF with a copy of the form.</text> </paragraph> <paragraph num="(2)"> <text>A party impleading the SIF within 30 days of a scheduled hearing date shall:</text> <paragraph num="(a)"> <text>File a request to implead a party form;</text> </paragraph> <paragraph num="(b)"> <text>Serve the SIF with a copy of the form; and</text> </paragraph> <paragraph num="(c)"> <text>File with the form a declaration setting forth the moving party's prima facie case for alleging the involvement of the SIF, including, but not limited to, identification of the evidence the party intends to rely on to prove the liability of the SIF.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Within 10 days of filing the request to implead a party form, and any other required documents, the impleading party shall provide the following to the SIF and all other parties to the claim:</text> <paragraph num="(a)"> <text>All prior awards or settlements, identified by claim number if available, to the claimant for permanent disability made or approved by the Commission, or by a comparable Commission of another state, or the District of Columbia;</text> </paragraph> <paragraph num="(b)"> <text>All relevant medical evidence relied on to implead the SIF; and</text> </paragraph> <paragraph num="(c)"> <text>A certification providing that a copy of the request to implead a party form, along with all required information and documents, have been served on the SIF and all other parties to the claim.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A party who fails to comply with this regulation or causes unreasonable delay without good cause is subject to an assessment of costs and reasonable attorney fees under Labor and Employment Article, §9-734, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Death and Funeral Benefits."> <paragraph num="A."> <text>Election for Counties and Municipal Corporations.</text> <paragraph num="(1)"> <text>A county or municipal corporation may elect for the death benefits provisions of Labor and Employment Article, §§9-683.1—9-683.5, Annotated Code of Maryland, to apply to its public safety employees subject to the statutory presumption set forth in Labor and Employment Article, §9-503, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A county or municipal corporation may make this election by:</text> <paragraph num="(a)"> <text>Completing an online form, available at the Commission's website; and</text> </paragraph> <paragraph num="(b)"> <text>Attaching a copy of the county or municipal corporation's ordinance or resolution making the election.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Commission shall issue a date-stamped notice advising the county or municipal government of its receipt of the election.</text> </paragraph> <paragraph num="(4)"> <text>The date stamp of the Commission's notice will be used as the effective date of the election.</text> </paragraph> <paragraph num="(5)"> <text>All death benefit claims arising out of a death that occurred after the date of election are subject to the death benefits provisions set forth in Labor and Employment Article, §§9-683.1—9-683.5, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Dependent Claim for Death Benefits.</text> <paragraph num="(1)"> <text>To initiate a claim for death benefits, a dependent of the deceased employee or an individual authorized to act on behalf of the dependent claimant shall file a dependent death benefits claim form with the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may reject a claim form that does not contain sufficient information to process the claim including:</text> <paragraph num="(a)"> <text>The dependent claimant's name and, if applicable, the authorized individual's name;</text> </paragraph> <paragraph num="(b)"> <text>The dependent claimant's address and, if applicable, the authorized individual's address;</text> </paragraph> <paragraph num="(c)"> <text>The deceased employee's name;</text> </paragraph> <paragraph num="(d)"> <text>The deceased employee's address;</text> </paragraph> <paragraph num="(e)"> <text>The deceased employee's date of birth;</text> </paragraph> <paragraph num="(f)"> <text>The date of the accident or occupational disease;</text> </paragraph> <paragraph num="(g)"> <text>The member of the deceased employee's body that was injured;</text> </paragraph> <paragraph num="(h)"> <text>A description of how the accidental injury or occupational disease occurred;</text> </paragraph> <paragraph num="(i)"> <text>The deceased employee's date of death; and</text> </paragraph> <paragraph num="(j)"> <text>The deceased employee's employer's name and address.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the information set forth in §B(2) of this regulation is unavailable or does not exist the claimant shall:</text> <paragraph num="(a)"> <text>Enter all zeros (0) in the spaces provided for the information; and</text> </paragraph> <paragraph num="(b)"> <text>Attach a signed statement certifying that the information is unavailable or does not exist.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Signature.</text> <paragraph num="(a)"> <text>The dependent claimant or authorized individual shall sign the dependent death benefit claim form.</text> </paragraph> <paragraph num="(b)"> <text>An authorized individual shall submit documentation establishing his or her authority to act on behalf of the dependent claimant with the claim form.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Submission of Supporting Documentation.</text> <paragraph num="(a)"> <text>When completing the dependent death benefits claim form, the dependent claimant or authorized individual shall submit:</text> <paragraph num="(i)"> <text>An authorization for disclosure of health information signed by the dependent claimant or authorized individual, directing the deceased employee's health care providers to disclose to the dependent claimant's attorney, the deceased employee's attorney, the deceased employee's employer, the employer's insurer, or any agent thereof, the deceased employee's medical records that are relevant to:</text> <paragraph num="1."> <text>The member of the body that was injured by an accident or occupational disease, as indicated on the claim form; and</text> </paragraph> <paragraph num="2."> <text>The description of how the accidental injury or occupational disease occurred, as indicated on the claim form;</text> </paragraph> </paragraph> <paragraph num="(ii)"> <text>A certification of funeral expenses, if the dependent claimant is making a claim for funeral benefits, which shall:</text> <paragraph num="1."> <text>Include the name of the deceased employee;</text> </paragraph> <paragraph num="2."> <text>Include an attached itemized statement of the services performed and corresponding costs;</text> </paragraph> <paragraph num="3."> <text>Be signed by the provider of the funeral services or undertaker; and</text> </paragraph> <paragraph num="4."> <text>Be signed by the person authorizing the burial or other services.</text> </paragraph> </paragraph> <paragraph num="(iii)"> <text>A certified copy of the certificate of death for the deceased employee;</text> </paragraph> <paragraph num="(iv)"> <text>A certified copy of the certificate of marriage for the dependent claimant and deceased employee, if the dependent claimant is the surviving spouse of the employee; and</text> </paragraph> <paragraph num="(v)"> <text>A certified copy of the certificate of birth for the dependent claimant, if the dependent claimant is the surviving child of the deceased employee.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Prior to the scheduled hearing on the death claim, the dependent claimant or authorized individual who filed the claim shall submit:</text> <paragraph num="(i)"> <text>Proof of family income at the date of the accidental personal injury or disablement;</text> </paragraph> <paragraph num="(ii)"> <text>An affidavit attesting to the authenticity of the documents submitted as proof of family income; and</text> </paragraph> <paragraph num="(iii)"> <text>If applicable, copies of any legal documents or orders directing the deceased employee to pay child support or alimony.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Proof of family income may include:</text> <paragraph num="(i)"> <text>Payroll stubs or wage records covering the 14-week period prior to the accidental injury or date of disablement;</text> </paragraph> <paragraph num="(ii)"> <text>W-2s;</text> </paragraph> <paragraph num="(iii)"> <text>1099 forms or other evidence of earnings from self-employment; and</text> </paragraph> <paragraph num="(iv)"> <text>Tax returns.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>If the dependent claimant or authorized individual does not have access to proof of income records for some alleged dependent claimants, the dependent claimant or authorized individual shall submit evidence demonstrating the efforts made to obtain these records, including any Commission subpoenas.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Revocation of Authorization.</text> <paragraph num="(a)"> <text>A dependent claimant or authorized individual may revoke an authorization for disclosure of health information in writing.</text> </paragraph> <paragraph num="(b)"> <text>The dependent claimant or authorized individual shall serve a copy of the written revocation on all the parties in the case.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The Commission shall reject a dependent death benefits claim form that does not contain a signed authorization for disclosure of health information.</text> </paragraph> <paragraph num="(8)"> <text>Date of Filing.</text> <paragraph num="(a)"> <text>A claim is considered filed on the date that a completed and signed claim form, including the signed authorization for disclosure of health information, is received by the Commission.</text> </paragraph> <paragraph num="(b)"> <text>The Commission's date of receipt is determined by the date stamp affixed on the claim form.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Electronic Submission.</text> <paragraph num="(a)"> <text>A dependent death benefits claim that is submitted electronically is not considered filed until the signed claim form, including the signed authorization for disclosure of health information, is received by the Commission.</text> </paragraph> <paragraph num="(b)"> <text>The Commission's date of receipt is determined by the date stamp affixed on the claim form.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Claim for Funeral Benefits Only.</text> <paragraph num="(1)"> <text>If the deceased employee has no dependents, any person or entity responsible for paying, or who has paid, the deceased employee's funeral expenses may initiate a claim for funeral benefits by filing with the Commission a signed funeral benefits only claim form certifying that the information submitted on the form is accurate.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may reject a funeral benefits only claim form that does not contain sufficient information to process the claim including:</text> <paragraph num="(a)"> <text>The filing party's name and address;</text> </paragraph> <paragraph num="(b)"> <text>The deceased employee's name and address;</text> </paragraph> <paragraph num="(c)"> <text>The deceased employee's employer's name and address;</text> </paragraph> <paragraph num="(d)"> <text>The date of accident or occupational disease; and</text> </paragraph> <paragraph num="(e)"> <text>The deceased employee's date of death.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>When completing the funeral benefits only claim form the filing party shall attach a certification of funeral expenses, which shall:</text> <paragraph num="(a)"> <text>Include the name of the deceased employee;</text> </paragraph> <paragraph num="(b)"> <text>Include an attached itemized statement of the services performed and corresponding costs;</text> </paragraph> <paragraph num="(c)"> <text>Be signed by the provider of the funeral services or undertaker; and</text> </paragraph> <paragraph num="(d)"> <text>Be signed by the person authorizing the burial or other services.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Foreign Documents."> <paragraph num="A."> <text>When a document or public record required by this chapter was created or issued in a foreign state the Commission may not accept as supporting documentation:</text> <paragraph num="(1)"> <text>Photocopies;</text> </paragraph> <paragraph num="(2)"> <text>Facsimile copies;</text> </paragraph> <paragraph num="(3)"> <text>Notarized copies; or</text> </paragraph> <paragraph num="(4)"> <text>Documents with alterations or erasures.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When a document or public record required by this chapter was created or issued in a foreign state and the state of origin is a State Party to the Apostille Convention, the party submitting the document shall:</text> <paragraph num="(1)"> <text>Have a competent authority of the State of origin issue an apostille for the original or a certified copy of the document; and</text> </paragraph> <paragraph num="(2)"> <text>Attach to the apostilled document, an English translation of the document prepared pursuant to this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>When a document or public record required by this chapter originated in a foreign State and the State of origin is not a State Party to the Apostille Convention, the party submitting the document shall:</text> <paragraph num="(1)"> <text>Submit the public document with a written declaration (certificate) authenticating the signature/seal/stamp, signed in the State of origin which, if falsely made, would subject the maker to a criminal penalty under the laws of that foreign State;</text> </paragraph> <paragraph num="(2)"> <text>Attach to the document and certificate, a final certification as to the genuineness of the signature and official position of:</text> <paragraph num="(a)"> <text>The individual executing the certificate; or</text> </paragraph> <paragraph num="(b)"> <text>Any foreign official who certifies the genuineness of signature and official position of the executing individual, or is the last in a chain of certificates that collectively certify the genuineness of signature and official position of the executing individual; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Attach to the document and certificate or certificates, an English translation of the document prepared pursuant to this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A final certificate may be made by a secretary of an embassy or legation, consul general, consul, vice consul, or consular agent of the United States, or a diplomatic or consular official of the foreign State who is assigned or accredited to the United States.</text> </paragraph> <paragraph num="E."> <text>English Translation.</text> <paragraph num="(1)"> <text>An English translation of any document authenticated by an apostille or by a final certificate shall include:</text> <paragraph num="(a)"> <text>The typed or printed name and telephone number of the interpreter or translator; and</text> </paragraph> <paragraph num="(b)"> <text>A signed certification by the interpreter or translator that the translation is true, accurate, and complete.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A party shall have the English translation prepared by:</text> <paragraph num="(a)"> <text>An interpreter or translator whose name appears on the State of Maryland Court Interpreter Registry; or</text> </paragraph> <paragraph num="(b)"> <text>The embassy of the state from which the document originates.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>An attorney who advances the cost of having a foreign document authenticated, translated, or both, is entitled to recover the actual amount expended.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Claim for Unpaid Compensation of Deceased Claimant."> <paragraph num="A."> <text>A person seeking unpaid compensation payments as a dependent of a deceased covered employee under Labor and Employment Article, §9-632, 9-640, or 9-646, Annotated Code of Maryland, shall file an issue form in the same claim.</text> </paragraph> <paragraph num="B."> <text>A person seeking these benefits shall produce at the hearing proof of dependency and proof of death which may include a death certificate, marriage certificate, and birth certificate or order of adoption for any surviving children.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Notice of Claim to Employer and Insurer."> <paragraph num="A."> <text>After a claim is filed, the Commission shall send a notice of claim to all parties listed on the claim form and identified through the Commission’s database of insurers and employers.</text> </paragraph> <paragraph num="B."> <text>Insurer Identified.</text> <paragraph num="(1)"> <text>If an insurer has been identified, the Commission shall send a response to employee’s claim form to the insurer for completion.</text> </paragraph> <paragraph num="(2)"> <text>The insurer shall file a completed response to employee’s claim form with the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>No Insurer Identified.</text> <paragraph num="(1)"> <text>If no insurer has been identified, the Commission shall send a response to employee’s claim form to the employer.</text> </paragraph> <paragraph num="(2)"> <text>The employer shall file a completed response to employee’s claim form with the Commission.</text> </paragraph> <paragraph num="(3)"> <text>If an employer is not insured, the Commission shall send a response to notification to employer for insurance information form to the employer and a questionnaire to the claimant.</text> </paragraph> <paragraph num="(4)"> <text>The employer shall file the completed form with the Commission and send copies of the completed form to the Uninsured Employers' Fund.</text> </paragraph> <paragraph num="(5)"> <text>The claimant shall file the completed questionnaire with the Commission and concurrently send a copy to the Uninsured Employers’ Fund.</text> </paragraph> <paragraph num="(6)"> <text>No hearings on issues filed by the claimant shall be scheduled until the claimant has completed and filed the claimant's questionnaire.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If no response to employee’s claim form is filed by the consideration date an automatic award order will be issued finding the claim compensable.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Electronic Filing by Employer and Insurer."> <text>After a claim is filed, an employer and insurer who is represented by counsel shall file any response and any subsequent paper electronically through CompHub.</text> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-314, 9-402, 9-404, 9-602, 9-701, 9-709—9-711, and 9-736;State Government Article, §10-1103; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 14, 1983 (10:5 Md. R. 466)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective September 27, 2004 (31:19 Md. R. 1433)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 7, 2011 (38:5 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01-1 repealed effective August 4, 2014 (41:15 Md. R. 892)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective December 10, 2015 (42:24 Md. R. 1505); October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, C amended effective March 12, 2018 (45:5 Md. R. 287); August 24, 2020 (47:17 Md. R. 797)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B, C amended effective March 12, 2018 (45:5 Md. R. 287); April 8, 2019 (46:7 Md. R. 370)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 adopted effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="03" heading="Hearing Procedures"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>“Person in interest” means:</text> <paragraph num="(1)"> <text>An adult on whom a health care provider maintains a medical record;</text> </paragraph> <paragraph num="(2)"> <text>A person authorized to consent to health care for an adult pursuant to a grant of authority; and</text> </paragraph> <paragraph num="(3)"> <text>A duly appointed personal representative of a deceased person.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Filing and Withdrawing Issues."> <paragraph num="A."> <text>At the beginning of the claim, the employer or insurer may raise issues by filing the response to employee’s claim form.</text> </paragraph> <paragraph num="B."> <text>After the claim has commenced, any party may raise an issue by filing an issues form, available on the Commission website.</text> </paragraph> <paragraph num="C."> <text>The following kinds of issues may be raised by filing an issues form:</text> <paragraph num="(1)"> <text>Whether the employee sustained an injury causally related to an accident that arose out of and in the course of employment;</text> </paragraph> <paragraph num="(2)"> <text>Whether the disability of the employee is causally related to the accidental injury;</text> </paragraph> <paragraph num="(3)"> <text>Whether the employee sustained a compensable hernia;</text> </paragraph> <paragraph num="(4)"> <text>Whether the employee sustained an occupational disease;</text> </paragraph> <paragraph num="(5)"> <text>Average weekly wage;</text> </paragraph> <paragraph num="(6)"> <text>Limitations;</text> </paragraph> <paragraph num="(7)"> <text>Jurisdiction;</text> </paragraph> <paragraph num="(8)"> <text>Statutory employment;</text> </paragraph> <paragraph num="(9)"> <text>Medical expenses;</text> </paragraph> <paragraph num="(10)"> <text>Vocational rehabilitation issues not requiring the expedited process of COMAR 14.09.07.12;</text> </paragraph> <paragraph num="(11)"> <text>Attorneys’ fees/costs;</text> </paragraph> <paragraph num="(12)"> <text>Penalties;</text> </paragraph> <paragraph num="(13)"> <text>Whether the employee is entitled to temporary partial and temporary total disability benefits;</text> </paragraph> <paragraph num="(14)"> <text>The nature and extent of a permanent disability to specified body parts;</text> </paragraph> <paragraph num="(15)"> <text>Authorization for medical treatment; and</text> </paragraph> <paragraph num="(16)"> <text>Other issues when articulated with specificity.</text> </paragraph> </paragraph> <paragraph num="D."> <text>On the issues form, the party shall state with clarity issues to be determined and shall, if relevant:</text> <paragraph num="(1)"> <text>Include the inclusive dates of any temporary total disability;</text> </paragraph> <paragraph num="(2)"> <text>For permanent disability, identify each part of the body affected, and any alleged psychiatric disability;</text> </paragraph> <paragraph num="(3)"> <text>Specifically plead permanent total disability;</text> </paragraph> <paragraph num="(4)"> <text>Include the specific medical treatment sought; and</text> </paragraph> <paragraph num="(5)"> <text>For any medical expenses, attach a list identifying each amount owed and to whom the amount is owed.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The party who has raised issues may withdraw those issues by:</text> <paragraph num="(1)"> <text>Filing a request for action on filed issues form; or</text> </paragraph> <paragraph num="(2)"> <text>Verbally requesting that the issues be withdrawn at the scheduled hearing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A party that has filed issues and is not ready to proceed at the hearing shall withdraw the issues.</text> </paragraph> <paragraph num="G."> <text>A party that withdraws issues may not refile the same issues for a period of 90 days.</text> </paragraph> <paragraph num="H."> <text>A party may request an exemption from the prohibition against refiling issues within the 90-day period by filing a request for hearing on previously withdrawn issues form. Any supporting documentation shall be attached to the form.</text> </paragraph> <paragraph num="I."> <text>If the Commission grants the request for exemption, the Commission shall:</text> <paragraph num="(1)"> <text>Issue a memorandum granting the request; and</text> </paragraph> <paragraph num="(2)"> <text>Schedule a hearing on the previously withdrawn issues.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A party who fails to comply with this regulation, or causes unreasonable delay without good cause, may be subject to an assessment of costs and reasonable attorney fees under Labor and Employment Article, §9-734, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Hearing Notices."> <paragraph num="A."> <text>The Commission shall schedule a hearing on the issues identified on the issues form, or on the response to employee’s claim form, unless a hearing is already scheduled or set to be scheduled, and shall send written notice to all parties of the scheduled hearing date.</text> </paragraph> <paragraph num="B."> <text>A hearing notice issued by the Commission shall contain:</text> <paragraph num="(1)"> <text>The date the notice was issued; and</text> </paragraph> <paragraph num="(2)"> <text>The date, time and place of the hearing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Interpreters and Other Accommodations."> <paragraph num="A."> <text>Interpreter and Other Accommodations.</text> <paragraph num="(1)"> <text>If a party or witness cannot adequately hear, speak, or understand the spoken or written English language the Commission shall provide an interpreter or other reasonable accommodation service necessary for the party or witness to participate fully in the Commission proceedings.</text> </paragraph> <paragraph num="(2)"> <text>If a party, witness or individual having business with the Commission requires another form of accommodation to participate in Commission proceedings, the Commission shall take reasonable steps to provide a reasonable accommodation for the individual.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Request Required.</text> <paragraph num="(1)"> <text>Within 10 days of the date the Commission provides notice that issues have been filed, an individual requiring an interpreter or other accommodation shall make a request to the Commission Interpreter Program Office that specifies:</text> <paragraph num="(a)"> <text>The identity of the individual requiring the service;</text> </paragraph> <paragraph num="(b)"> <text>Date and location of hearing, if known;</text> </paragraph> <paragraph num="(c)"> <text>The language or other accommodation service being requested;</text> </paragraph> <paragraph num="(d)"> <text>Contact information for the service/accommodation requestor or their representative; and</text> </paragraph> <paragraph num="(e)"> <text>Any other information that may assist the Commission in providing the requested interpreter service or accommodation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Unless represented by counsel or registered with CompHub, an individual requiring an interpreter or other accommodation shall request an interpreter or other accommodation by:</text> <paragraph num="(a)"> <text>Telephoning the Commission Interpreter Program Office telephone line available on the Commission website; or</text> </paragraph> <paragraph num="(b)"> <text>Telephoning the Commission's main telephone line through the TTY service through Maryland Relay available on the Commission's website.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If represented by counsel or registered with CompHub, an individual requiring an interpreter or other accommodation shall request an interpreter or other accommodation by using CompHub.</text> </paragraph> <paragraph num="(4)"> <text>Upon receipt of a timely request for services, the Commission Interpreter Program Office shall:</text> <paragraph num="(a)"> <text>Schedule an interpreter, or accommodation service; or</text> </paragraph> <paragraph num="(b)"> <text>Engage in a dialogue about the requested accommodation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Except as provided in §D of this regulation, the Commission shall pay the fee for interpreter or other reasonable accommodation service requested pursuant to this regulation.</text> </paragraph> <paragraph num="D."> <text>Notification of Cancellation and Fees. An individual who has scheduled an interpreter or accommodation service under §B(2) of this regulation may cancel the requested service by notifying the Commission Interpreter Program Office, in the manner prescribed by the Commission, that the requested service is no longer required.</text> </paragraph> <paragraph num="E."> <text>An individual may be assessed the service minimum fee if:</text> <paragraph num="(1)"> <text>A matter is resolved more than 2 days prior to the hearing; and</text> </paragraph> <paragraph num="(2)"> <text>The service is not cancelled.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A party may not provide his or her own interpreter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Subpoenas."> <paragraph num="A."> <text>Use of Subpoenas.</text> <paragraph num="(1)"> <text>A subpoena is required to compel the person to whom it is directed to attend, give testimony, and produce designated documents or tangible things at a Commission proceeding or at a deposition held pursuant to Labor and Employment Article, §9-719(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>On a request of a party to a claim on which issues are currently pending, the Commission shall issue a subpoena for relevant documentation to be produced at the office of the requesting party and distributed to all parties to the claim in accordance with §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Procedure for Obtaining Subpoena.</text> <paragraph num="(1)"> <text>A CompHub subscriber entitled to the issuance of a subpoena shall obtain a subpoena by using CompHub.</text> </paragraph> <paragraph num="(2)"> <text>On the request of an individual who is entitled to the issuance of a subpoena and who is not a CompHub subscriber, the Commission shall provide a blank form of the subpoena which shall be filled in and returned to the Commission clerk to be signed and sealed before service.</text> </paragraph> <paragraph num="(3)"> <text>Unless impracticable, subpoenas shall be served at least 10 days before the hearing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Form of Subpoena.</text> <paragraph num="(1)"> <text>Every subpoena shall contain:</text> <paragraph num="(a)"> <text>The caption of the claim and claim number;</text> </paragraph> <paragraph num="(b)"> <text>The name and address of the person to whom it is directed;</text> </paragraph> <paragraph num="(c)"> <text>The name of the person at whose request it is issued;</text> </paragraph> <paragraph num="(d)"> <text>The date, time, and place where attendance is required; and</text> </paragraph> <paragraph num="(e)"> <text>A description of any documents or tangible things to be produced.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Medical Records and Financial Records.</text> <paragraph num="(1)"> <text>Medical Records.</text> <paragraph num="(a)"> <text>Every subpoena seeking the production of medical records shall comply with Health General Article, §4-306, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>A party seeking medical records by subpoena shall certify that the party has complied with the notice provisions of Health General Article, §§4-305—4-307, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Financial Records or Information Derived from Financial Records.</text> <paragraph num="(a)"> <text>Every subpoena seeking the production of financial records or information derived from financial records shall comply with Financial Institutions Article, §1-304, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>A party seeking financial records or information derived from financial records by subpoena shall certify that the party has complied with the notice provisions of Financial Institutions Article, §1-304, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Within 30 days of the date that notice of intent to subpoena medical records was mailed, a person in interest may oppose the disclosure of their medical records by:</text> <paragraph num="(a)"> <text>Filing an objection using the appropriate form with the Commission; and</text> </paragraph> <paragraph num="(b)"> <text>Serving a copy of the objection to all parties.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Upon receipt of an objection to subpoena of medical records, the Commission shall schedule a hearing to determine:</text> <paragraph num="(a)"> <text>Whether the subpoena should be quashed;</text> </paragraph> <paragraph num="(b)"> <text>Whether the subpoena should be limited in scope or otherwise modified; and</text> </paragraph> <paragraph num="(c)"> <text>Other appropriate relief.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Service of Subpoenas.</text> <paragraph num="(1)"> <text>Subpoenas may be served:</text> <paragraph num="(a)"> <text>In addition to any method allowed by law, in accordance with the Maryland Rules; or</text> </paragraph> <paragraph num="(b)"> <text>By certified mail to an unrepresented individual.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The subpoena may not be enforced pursuant to Labor and Employment Article, §9-717, Annotated Code of Maryland, absent proof of service by certified mail or personal delivery.</text> </paragraph> <paragraph num="(3)"> <text>Costs of certified mailing or personal delivery of the subpoena are the responsibility of the person requesting the service.</text> </paragraph> <paragraph num="(4)"> <text>Proof of service by certified mail or personal delivery is the responsibility of the person requesting the subpoena.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Return of service shall be made as follows:</text> <paragraph num="(1)"> <text>When service is by certified mail, by the filing of the original return receipt; or</text> </paragraph> <paragraph num="(2)"> <text>When service is by personal delivery, by the filing of an affidavit, signed by the individual who made service, containing:</text> <paragraph num="(a)"> <text>The name of the individual served;</text> </paragraph> <paragraph num="(b)"> <text>The date on which the individual was served;</text> </paragraph> <paragraph num="(c)"> <text>The particular place of service; and</text> </paragraph> <paragraph num="(d)"> <text>A statement that the server is 18 years old or older and not a party to the proceeding or related by blood or marriage to a party to the proceeding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Distribution of Documentation. Except as otherwise provided by law, the requesting party shall serve promptly on all other parties to the claim copies of all documentation produced in response to a subpoena.</text> </paragraph> <paragraph num="H."> <text>Enforcement of Subpoenas.</text> <paragraph num="(1)"> <text>If an individual fails to comply with a properly served subpoena, pursuant to Labor and Employment Article, §9-717, Annotated Code of Maryland, the party wishing to enforce the subpoena shall file with the Commission a written request for the enforcement of the subpoena.</text> </paragraph> <paragraph num="(2)"> <text>The request shall:</text> <paragraph num="(a)"> <text>State, with specificity:</text> <paragraph num="(i)"> <text>When and how the subpoena was served; and</text> </paragraph> <paragraph num="(ii)"> <text>Why the testimony or documents sought are necessary for the resolution of the issue; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Be accompanied by copies of the subpoena and any proof of service, return receipt, or affidavit.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon determining that the subpoena was issued and served in compliance with the law, the Commission may and, on request of a party to the proceeding, shall apply to the appropriate circuit court for an order to show cause why the individual should not be imprisoned for failing to comply with a subpoena.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Sanctions. If the Commission, after an evidentiary hearing, determines that a subpoena was requested in bad faith, the Commission may assess against the requesting party the whole cost of the proceeding, including reasonable attorney’s fees.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Average Weekly Wage."> <paragraph num="A."> <text>Preliminary Determination. For the purpose of making an initial award of compensation before a hearing in the matter, the Commission shall determine the claimant's average weekly wage from gross wages, including overtime, reported by the claimant on the employee's claim form.</text> </paragraph> <paragraph num="B."> <text>Filing of Wage Statement. As soon as practicable, the employer/insurer shall file a wage statement containing the following information:</text> <paragraph num="(1)"> <text>The average wage earned by the claimant during the 14 weeks before the accident, excluding the time between the end of the last pay period and the date of injury, provided that periods of involuntary layoff or involuntary authorized absences are not included in the 14 weeks;</text> </paragraph> <paragraph num="(2)"> <text>Those weeks the claimant actually worked during the 14 weeks before the accident;</text> </paragraph> <paragraph num="(3)"> <text>Vacation wages paid; and</text> </paragraph> <paragraph num="(4)"> <text>Those items set forth in Labor and Employment Article, §9-602(a)(2), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Determination at First Hearing.</text> <paragraph num="(1)"> <text>Calculation of the average weekly wage shall be adjudicated and determined at the first hearing before the Commission.</text> </paragraph> <paragraph num="(2)"> <text>All parties shall be prepared to produce evidence from which the Commission can determine an accurate average weekly wage at the first hearing.</text> </paragraph> <paragraph num="(3)"> <text>If the Commission determines that an inaccurate average weekly wage resulted in the overpayment or underpayment of benefits, the Commission may order:</text> <paragraph num="(a)"> <text>A credit against future permanent disability benefits;</text> </paragraph> <paragraph num="(b)"> <text>The payment of additional compensation; or</text> </paragraph> <paragraph num="(c)"> <text>Any other relief the Commission determines is appropriate under the circumstances.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Uninsured Employers' Fund. The Uninsured Employers' Fund may contest the average weekly wage determined by the Commission under §A or C of this regulation, along with other issues as authorized by Labor and Employment Article, §9-1002, Annotated Code of Maryland, by filing issues on the form prescribed by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Disclosure of Medical Information."> <paragraph num="A."> <text>Parties' Continuing Duty to Disclose Medical Information.</text> <paragraph num="(1)"> <text>When a claim or an issue is filed with the Commission, each party promptly shall provide to all other parties copies of all relevant medical information in the possession of the party or that is subsequently received by the party, but not previously provided.</text> </paragraph> <paragraph num="(2)"> <text>For the purpose of this regulation, medical information in the possession of, or received by, the party's agent or attorney is considered to be in possession of the party.</text> </paragraph> <paragraph num="(3)"> <text>The duty to disclose applies to all medical information including reports, evaluations, tests, and bills, and continues during the pendency of the claim.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Duty to Provide Medical Authorization.</text> <paragraph num="(1)"> <text>Unless the Commission orders otherwise for good cause shown, a party shall provide to any other party, on written request, a medical authorization or release.</text> </paragraph> <paragraph num="(2)"> <text>The parties shall, in good faith, attempt to resolve any issues concerning the scope of the requested medical authorization or release.</text> </paragraph> <paragraph num="(3)"> <text>Failure to comply with this regulation may result in sanctions including attorneys’ fees and costs, delay, and the exclusion of any evidence not properly disclosed.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Motion to Compel Medical Authorization.</text> <paragraph num="(1)"> <text>Upon the failure of a party to provide an executed medical authorization, the party seeking the medical authorization may file a motion to compel medical authorization form.</text> </paragraph> <paragraph num="(2)"> <text>A motion to compel medical authorization form shall:</text> <paragraph num="(a)"> <text>Be filed electronically;</text> </paragraph> <paragraph num="(b)"> <text>Be served on all parties of record; and</text> </paragraph> <paragraph num="(c)"> <text>Contain the claimant's name, date of accident/disablement, the health care provider's name, and the body parts or medical conditions to which the authorization/release applies.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A party may oppose the motion by filing a response to motion to compel medical authorization form.</text> </paragraph> <paragraph num="(4)"> <text>A response to motion to compel medical authorization form shall:</text> <paragraph num="(a)"> <text>Be filed within 7 days after receipt of the motion;</text> </paragraph> <paragraph num="(b)"> <text>Be filed electronically;</text> </paragraph> <paragraph num="(c)"> <text>Be served by hand delivery or facsimile on all parties of record; and</text> </paragraph> <paragraph num="(d)"> <text>State with particularity the reasons for failing to provide the requested medical authorization;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The motion shall be decided on the papers filed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Medical Examinations."> <paragraph num="A."> <text>Medical Examinations Ordered by the Commission.</text> <paragraph num="(1)"> <text>The Commission may order that the claimant be examined, at the Commission's expense, by the Commission's medical examiner or by some other physician, psychologist, or psychiatrist selected by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The claimant shall report to the office of the examining physician at the time scheduled by the physician for the examination.</text> </paragraph> <paragraph num="(3)"> <text>If the claimant is physically unable to report to the physician's office, the examination may be conducted wherever the claimant is located or is physically able to report.</text> </paragraph> <paragraph num="(4)"> <text>When the examining physician's report is filed, the Commission shall serve on all parties:</text> <paragraph num="(a)"> <text>A copy of the report; and</text> </paragraph> <paragraph num="(b)"> <text>A notice that any written objection to the report shall be filed within 15 days after the date of the notice.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A written objection may be made by written letter filed with the Commission and shall state clearly the reasons for objecting to the examining physician’s report.</text> </paragraph> <paragraph num="(6)"> <text>If no written objection is timely filed, the Commission may consider the report, along with any other admissible evidence presented, in deciding the claim.</text> </paragraph> <paragraph num="(7)"> <text>If an objection is timely filed, the Commission shall schedule a hearing on the matter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Medical Examination Requested by a Party.</text> <paragraph num="(1)"> <text>A party may schedule a medical examination of the claimant with a physician, psychologist, or psychiatrist chosen by the party, by providing to the claimant and claimant's counsel reasonable notice of the examination in writing.</text> </paragraph> <paragraph num="(2)"> <text>The party scheduling a medical examination of the claimant shall be responsible for all reasonable expenses associated with the examination.</text> </paragraph> <paragraph num="(3)"> <text>The parties shall, in good faith, attempt to resolve any differences in scheduling and scope of examination.</text> </paragraph> <paragraph num="(4)"> <text>A claimant shall appear for a scheduled medical examination.</text> </paragraph> <paragraph num="(5)"> <text>If a claimant fails to appear, refuses to submit, or fails to cooperate with the medical examination, the party requesting the examination may file an Issues form for a hearing to compel a medical examination and for reimbursement of reasonable expenses and costs.</text> </paragraph> <paragraph num="(6)"> <text>If a claimant fails to appear at, refuses to submit to, or fails to cooperate with the medical examination, without good cause, the Commission may order the claimant to attend a medical examination and order reimbursement of the reasonable expenses and costs actually incurred because of the missed examination.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Appearance by Examining Physician. A party requesting the appearance of an examining physician, psychologist, or psychiatrist at a hearing shall pay the appearance fee imposed by the provider.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Hearing Exhibits and Witnesses."> <paragraph num="A."> <text>Mandatory Exchange of Hearing Exhibits.</text> <paragraph num="(1)"> <text>Parties shall file exhibits, prepared in accordance with §D of this regulation, with the Commission through CompHub at least 3 business days prior to each hearing, with the following exceptions:</text> <paragraph num="(a)"> <text>Exhibits intended solely for impeachment; and</text> </paragraph> <paragraph num="(b)"> <text>Exhibits previously filed with the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Parties shall exchange exhibits by electronic means with all other parties at least 3 business days prior to each hearing.</text> </paragraph> <paragraph num="(3)"> <text>Failure to comply with this provision may result in sanctions.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidential Information.</text> <paragraph num="(1)"> <text>If sensitive material must be brought to the attention of a Commissioner for the proper adjudication of a matter in dispute, the party seeking the admission of the sensitive or restricted material may request to brief the Commissioner in-chambers regarding the subject matter only after providing notice to opposing counsel.</text> </paragraph> <paragraph num="(2)"> <text>A request to admit sensitive or restricted material shall be granted or denied at the Commissioner's discretion.</text> </paragraph> </paragraph> <paragraph num="C."> <text>General Rules Concerning Hearings.</text> <paragraph num="(1)"> <text>On any genuine issue, each party is entitled to call witnesses, offer evidence, and cross-examine any witness who testifies.</text> </paragraph> <paragraph num="(2)"> <text>A hearing shall be called to order by the Commissioner. The Commissioner may allow the parties to present preliminary matters.</text> </paragraph> <paragraph num="(3)"> <text>Witnesses shall be sworn or put under affirmation to tell the truth.</text> </paragraph> <paragraph num="(4)"> <text>A Commissioner may admit evidence that reasonable and prudent individuals commonly accept in the conduct of their affairs, and give probative effect to that evidence.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Hearing Exhibits. Each party shall prepare an exhibit that:</text> <paragraph num="(1)"> <text>Includes all documents that have not been filed previously with the Commission that are relevant and necessary to decide the issue or issues to be heard;</text> </paragraph> <paragraph num="(2)"> <text>Is paginated; and</text> </paragraph> <paragraph num="(3)"> <text>Includes a table of contents that indicates the first page of each document contained in the exhibit, and the name of the health care provider, the date of the report, and date of treatments.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Sequestration of Witnesses.</text> <paragraph num="(1)"> <text>Upon request by a party, the Commissioner may exclude witnesses other than parties from the hearing room, except when testifying.</text> </paragraph> <paragraph num="(2)"> <text>A party, representative, witness, or spectator may not disclose to a witness excluded under this section the nature, substance, or purpose of testimony, exhibits, or other evidence introduced during that witness's absence.</text> </paragraph> <paragraph num="(3)"> <text>A party that is not an individual may designate an employee or officer as its representative to remain in the hearing room, even though the employee or officer may be a witness.</text> </paragraph> <paragraph num="(4)"> <text>An expert witness who is to render an opinion based on testimony given at the hearing may remain during the testimony.</text> </paragraph> <paragraph num="(5)"> <text>The Commissioner may exclude the testimony of a witness who receives information in violation of this section, or take other appropriate action.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Stipulations.</text> <paragraph num="(1)"> <text>The parties may, in accordance with law, agree to any substantive or procedural matter.</text> </paragraph> <paragraph num="(2)"> <text>A stipulation may be filed in writing or entered on the record at the hearing.</text> </paragraph> <paragraph num="(3)"> <text>The Commissioner may require additional development of stipulated matters.</text> </paragraph> <paragraph num="(4)"> <text>The parties filing a stipulation shall attach to the stipulation, or submit to the Commissioner at the hearing, documentation supporting the stipulation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Expert Testimony.</text> <paragraph num="(1)"> <text>If a party wishes to have an expert witness appear and testify, other than a vocational rehabilitation counselor, the party must seek prior approval from the Chairman.</text> </paragraph> <paragraph num="(2)"> <text>The party shall submit a letter stating why oral testimony is necessary in lieu of documentary evidence.</text> </paragraph> <paragraph num="(3)"> <text>The party producing the expert witness shall be responsible for any fees charged by the expert for appearing and testifying.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Consequence of Nonappearance by Claimant."> <paragraph num="A."> <text>When a claimant, without good cause, fails to appear at a hearing on issues contesting the compensability of a claim, the Commission may dismiss the claim.</text> </paragraph> <paragraph num="B."> <text>When a claimant, without good cause, fails to appear at a hearing on issues in a compensable claim, the Commission may proceed ex parte and may decide the issues based on information on file with the Commission, together with any evidence presented at the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Request for Emergency Hearing."> <paragraph num="A."> <text>A party may request an emergency hearing by filing a Request for emergency hearing form.</text> </paragraph> <paragraph num="B."> <text>A party may request an emergency hearing on the following bases:</text> <paragraph num="(1)"> <text>Continuing temporary total disability and exigent circumstances causing undue financial hardship;</text> </paragraph> <paragraph num="(2)"> <text>Proposed urgent medical treatment; or</text> </paragraph> <paragraph num="(3)"> <text>Other truly exigent circumstances causing undue hardship.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A request for an emergency hearing shall be accompanied by supporting medical documentation and other documentation that establishes the nature of the emergency condition or circumstance.</text> </paragraph> <paragraph num="D."> <text>A request for emergency hearing on temporary total disability shall contain a detailed statement showing that any delay will cause the claimant undue financial hardship.</text> </paragraph> <paragraph num="E."> <text>Unless exceptional circumstances are demonstrated, the Commission shall deny a request for continuance made by the party upon whose request the emergency hearing was scheduled.</text> </paragraph> <paragraph num="F."> <text>A request for emergency hearing will be decided based on the papers filed.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Request for Continuance."> <paragraph num="A."> <text>Prior to filing a request for continuance of a scheduled hearing, the party seeking the continuance shall contact the other parties to the case and seek their consent.</text> </paragraph> <paragraph num="B."> <text>A party seeking a continuance shall file a request for continuance form setting forth the reasons for the continuance at least 30 days prior to the scheduled hearing.</text> </paragraph> <paragraph num="C."> <text>A request for continuance filed more than 30 days prior to a scheduled hearing, to which the parties have consented, shall routinely be granted.</text> </paragraph> <paragraph num="D."> <text>A request for continuance filed less than 30 days before the hearing may be granted subject to the discretion of the Commissioner.</text> </paragraph> <paragraph num="E."> <text>A request for continuance will be decided based on the papers filed without a hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Request for Modification."> <paragraph num="A."> <text>A party seeking modification of a prior finding or order shall file the request for modification form and simultaneously file an issues form identifying the issue to be resolved.</text> </paragraph> <paragraph num="B."> <text>A party seeking modification shall file a request for modification form within 5 years of the later of the date of the accident, the date of disablement, or the date of the last compensation payment.</text> </paragraph> <paragraph num="C."> <text>The request shall state specifically the finding or order that the party wishes modified and the facts and law upon which the party is relying as grounds for the modification.</text> </paragraph> <paragraph num="D."> <text>When a party seeks an increase in a prior award for permanent partial disability, the parties shall comply with Regulation .07 of this chapter and COMAR 14.09.09.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Request for Rehearing."> <paragraph num="A."> <text>Within 15 days after the date of decision, a party seeking reconsideration of a decision shall file a request for rehearing form, available on the Commission’s website.</text> </paragraph> <paragraph num="B."> <text>If the request is based on an alleged error of law, the request shall state specifically the error and the applicable case and statutory law.</text> </paragraph> <paragraph num="C."> <text>If the request is based on newly discovered evidence, the request shall describe specifically the newly discovered evidence and the reasons why that evidence was not known and could not have been discovered by due diligence at the time of the prior hearing.</text> </paragraph> <paragraph num="D."> <text>The request shall be accompanied by copies of all documentary evidence upon which the request is based.</text> </paragraph> <paragraph num="E."> <text>An answer to a request for rehearing may be filed with the Commission within 10 days after the request is filed.</text> </paragraph> <paragraph num="F."> <text>The Commission may decide the request with or without a hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Video Remote Hearings."> <paragraph num="A."> <text>Except as provided in COMAR 14.09.17, video remote hearings are available at the discretion of the Commission.</text> </paragraph> <paragraph num="B."> <text>Consent Required. A party requesting a video remote hearing shall seek consent of all parties. If there is no consent to a video remote hearing, the request shall be denied.</text> </paragraph> <paragraph num="C."> <text>Request for Video Hearing Form Required. A party wishing to request a video remote hearing shall file a request for video hearing form through CompHub.</text> </paragraph> <paragraph num="D."> <text>Continuances. A party wishing to continue a video remote hearing shall file a continuance of hearing form which shall include a statement that all parties consent to the hearing being reset as a video remote hearing. If there is no consent to the hearing being reset as a video remote hearing, the hearing will be reset in the normal course as in-person.</text> </paragraph> <paragraph num="E."> <text>Required Information. The request for video hearing form shall contain the following information:</text> <paragraph num="(1)"> <text>A statement that all parties consent to a video remote hearing;</text> </paragraph> <paragraph num="(2)"> <text>The name, email address, and telephone number of each party;</text> </paragraph> <paragraph num="(3)"> <text>The name, email address, and telephone number of each witness;</text> </paragraph> <paragraph num="(4)"> <text>Whether a language interpreter is required and for which languages; and</text> </paragraph> <paragraph num="(5)"> <text>A statement of the reasons for requesting a video remote hearing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Exhibits. Parties shall file and exchange exhibits at least 3 business days prior to the video remote hearing in the same manner as provided in Regulation .09A of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Hearings En Banc."> <paragraph num="A."> <text>At the request of a party, or on the Commission’s own initiative, a matter may be set in for hearing en banc before three Commissioners selected by the Chairman.</text> </paragraph> <paragraph num="B."> <text>In any examination or hearing held by the Commission under Labor and Employment Article, §§9-405 and 9-406, Annotated Code of Maryland, the matter shall be set in for hearing en banc before a majority of the Commissioners.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Health-General Article, §§4-303 and 4-305;Labor and Employment Article, §§9-309, 9-310, 9-311, 9-602, 9-625, 9-635, 9-701, 9-717, 9-720, 9-721, 9-726, 9-731, and 9-739; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision effective August 1, 1987 (14:17 Md. R. 1869); emergency status expired July 31, 1988</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted effective August 1, 1988 (15:14 Md. R. 1655)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective August 1, 1991 (18:13 Md. R. 1484)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed and new Regulation .01 adopted effective July 1, 1996 (23:12 Md. R. 872)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 1, 2004 (31:13 Md. R. 995)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective February 1, 2006 (33:5 Md. R. 517); amended permanently effective June 5, 2006 (33:11 Md. R. 951)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted as an emergency provision effective August 31, 2001 (28:19 Md. R. 1681); adopted permanently effective October 29, 2001 (28:21 Md. R. 1858)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 repealed and new Regulations .01—.08 adopted effective March 24, 2008 (35:6 Md. R. 699)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03F amended as an emergency provision effective April 4, 2008, (35:9 Md. R. 895); amended permanently effective September 8, 2008 (35:18 Md. R. 1501)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03G amended effective March 5, 2012 (39:4 Md. R. 338)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08, Guide of Medical and Surgical Fees, recodified from COMAR 14.09.03 to COMAR 14.09.08, Guide of Medical and Surgical Fees, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.15, Hearing Procedures adopted effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective April 8, 2019 (46:7 Md. R. 370)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective September 15, 2014 (41:18 Md. R. 1010)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="04" heading="Legal Representation and Fees"> <regulation prefix="Regulation" num=".01" heading="Legal Representation."> <paragraph num="A."> <text>Representation.</text> <paragraph num="(1)"> <text>A party may be represented before the Commission by:</text> <paragraph num="(a)"> <text>An attorney admitted by the Court of Appeals to practice in this State;</text> </paragraph> <paragraph num="(b)"> <text>An out-of-State attorney specially admitted by order of the circuit court pursuant to the Business Occupations and Professions Article, §10-215, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>A party, who is an individual, may appear on the individual's own behalf pursuant to Business Occupations and Professions Article, §10-102, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>All parties, other than an individual electing to represent him or herself, may be represented only by an attorney.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Attorney Registration with Commission.</text> <paragraph num="(1)"> <text>An attorney wishing to practice before the Commission shall register for CompHub.</text> </paragraph> <paragraph num="(2)"> <text>Following verification and completion of the registration, the Commission shall issue the attorney a multiple digit attorney code.</text> </paragraph> <paragraph num="(3)"> <text>Attorneys registered for CompHub shall maintain current contact information with the Commission and shall notify the Commission of any change in their contact information within 30 days of the change.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Entry of Appearance.</text> <paragraph num="(1)"> <text>An attorney representing a claimant enters an appearance as attorney of record automatically when the attorney files the claim electronically.</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §C(1) of this regulation, an attorney representing a party in a claim shall complete and file an entry of appearance form with the Commission to establish an attorney of record.</text> </paragraph> <paragraph num="(3)"> <text>If an insurer does not yet have an attorney of record, within 10 days of the filing of issues by any party, an insurer shall have an attorney complete and file an entry of appearance form with the Commission to establish an attorney of record.</text> </paragraph> <paragraph num="(4)"> <text>After an entry of appearance form has been filed by an attorney on behalf of the insurer, all papers filed on behalf of the insurer shall be filed by the attorney of record until the claim becomes undisputed.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notices.</text> <paragraph num="(1)"> <text>If a party is represented by an attorney, notices to the party may be served on the attorney of record only.</text> </paragraph> <paragraph num="(2)"> <text>An employer may designate a person who shall receive a courtesy copy of each notice of employee’s claim filed against the employer.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Termination of Representation.</text> <paragraph num="(1)"> <text>By Notice. An attorney may withdraw an appearance by filing a notice of withdrawal if:</text> <paragraph num="(a)"> <text>The client has another attorney of record; or</text> </paragraph> <paragraph num="(b)"> <text>The claim has been settled and there is no possibility of any future medical benefits.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>By Motion. If an attorney is not permitted to withdraw an appearance by notice under §E(1) of this regulation, the attorney wishing to withdraw an appearance shall file a motion to withdraw. Except if the motion is made in an open hearing with the client present, the motion shall be accompanied by the client's written consent to the withdrawal or the moving attorney's certificate that notice has been mailed to the client at least 5 days prior to the filing of the motion, informing the client of the attorney's intention to move for withdrawal and advising the client to have another attorney enter an appearance or to notify the Commission in writing or through CompHub of the client's intention to proceed in proper person. The Commission may deny the motion if withdrawal of the appearance would cause undue delay, prejudice, or injustice.</text> </paragraph> <paragraph num="(3)"> <text>An attorney whose appearance has been entered on behalf of a party to a claim remains the attorney of record for the party to that claim unless the appearance was terminated under §E(1) or (2) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Attorney's Fee, Medical Evaluation Fee, and Costs — Application or Petition for Approval."> <paragraph num="A."> <text>Request for Attorney’s Fee Not in Excess of Schedule.</text> <paragraph num="(1)"> <text>An attorney seeking approval of an attorney’s fee that does not exceed the maximum amount set forth in Regulation .03 of this chapter, shall request approval of the fee by filing the claimant’s consent to pay fees and costs form.</text> </paragraph> <paragraph num="(2)"> <text>A completed claimant’s consent to pay fees and costs form shall:</text> <paragraph num="(a)"> <text>Be signed by the claimant;</text> </paragraph> <paragraph num="(b)"> <text>Include the amount of any medical evaluation fee requested to be approved;</text> </paragraph> <paragraph num="(c)"> <text>Include any amount of costs advanced by claimant's attorney for which the attorney is seeking payment; and</text> </paragraph> <paragraph num="(d)"> <text>Include any appeal fee requested under Regulation .03B(8) of this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An attorney shall substantiate a request for a medical evaluation fee, costs, or a fee under Regulation .03 of this chapter by:</text> <paragraph num="(a)"> <text>Submitting medical bills, receipts, or other evidence of costs;</text> </paragraph> <paragraph num="(b)"> <text>Submitting evidence establishing that:</text> <paragraph num="(i)"> <text>The prior compensation award was appealed to the circuit court and tried on appeal;</text> </paragraph> <paragraph num="(ii)"> <text>The prior compensation award was appealed to an appellate court, briefed and decided on the merits;</text> </paragraph> <paragraph num="(iii)"> <text>The prior compensation award was appealed to the circuit court but not resolved by trial;</text> </paragraph> <paragraph num="(iv)"> <text>The prior compensation award was appealed to an appellate court but not briefed and decided on the merits; or</text> </paragraph> <paragraph num="(v)"> <text>The prior order of the Commission on the issue of compensability of the claim was appealed to the circuit court and the claim was determined to be compensable by the circuit court or jury.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>The claimant's consent to the fee is not binding on the Commission.</text> </paragraph> <paragraph num="(5)"> <text>An award by the Commission approving an attorney's fee under this regulation shall be notice to the party responsible for payment to reserve in escrow the amount of fee approved.</text> </paragraph> <paragraph num="(6)"> <text>If an appeal is not filed within 30 days, the party responsible for payment shall remit the approved fee to the attorney immediately after the expiration of the 30-day appeal period.</text> </paragraph> <paragraph num="(7)"> <text>If an appeal is filed timely, the party responsible for payment shall continue to reserve in escrow the amount of the fee approved by the Commission pending final determination of the appeal.</text> </paragraph> <paragraph num="(8)"> <text>If the parties agree that an appeal will not be filed, the fee may be remitted to the attorney before expiration of the 30-day appeal period.</text> </paragraph> <paragraph num="(9)"> <text>An attorney seeking approval of an attorney’s fee that does not exceed the maximum amount set forth in Regulation .03 of this chapter shall:</text> <paragraph num="(a)"> <text>Accurately calculate the fees sought; and</text> </paragraph> <paragraph num="(b)"> <text>Include an itemization of all attorney’s fees previously awarded by reference to the amount and date of the Commission’s orders.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Failure to comply with this regulation may result in the reduction or denial of the attorney’s fee sought.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Petition for Attorney’s Fee in Excess of Schedule.</text> <paragraph num="(1)"> <text>An attorney seeking an attorney's fee exceeding the maximum amount set forth in Regulation .03 of this chapter, shall draft and file with the Commission a written petition.</text> </paragraph> <paragraph num="(2)"> <text>The petition shall contain the following:</text> <paragraph num="(a)"> <text>A clear and concise description of the legal services rendered to the claimant;</text> </paragraph> <paragraph num="(b)"> <text>The amount of attorney's fee requested to be approved;</text> </paragraph> <paragraph num="(c)"> <text>A detailed statement of the reasons for a fee in excess of the maximum amount set forth in Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(d)"> <text>A detailed statement establishing the exceptional circumstances that warrant an excess fee;</text> </paragraph> <paragraph num="(e)"> <text>The claimant's signed acknowledgement of the fact that the attorney is requesting approval of an attorney's fee in excess of the schedule, in the amount specified and for the services described;</text> </paragraph> <paragraph num="(f)"> <text>The amount of any medical evaluation fee requested to be approved; and</text> </paragraph> <paragraph num="(g)"> <text>A certificate of service indicating that a copy of the petition has been served on the claimant, as well as the other parties to the case.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A petition for approval of an attorney's fee ordinarily shall be considered by the Commissioner who issued the award of compensation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Unreasonable Proceeding — Attorney Fee Award.</text> <paragraph num="(1)"> <text>Pursuant to Labor and Employment Article, §9-734, Annotated Code of Maryland, the Commission may award a reasonable attorney’s fee in any proceeding as a sanction against the conduct of a party acting without reasonable ground.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may make the attorney's fee award on its own initiative or at the request of any party.</text> </paragraph> <paragraph num="(3)"> <text>Unless the award of the fee is appealed, the fee allowed under this section is payable immediately.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Schedule of Attorney's Fees."> <paragraph num="A."> <text>The Commission shall approve attorney’s fees in accordance with the schedule of fees established by the Commission and set forth in §C of this regulation.</text> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Award of compensation” means the amount of indemnity benefits actually paid or payable to the claimant after applying:</text> <paragraph num="(i)"> <text>Any credit or offset required by Labor and Employment Article, §9-503(c), 9-609, or 9-610, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>Reduction of the percentage of permanent partial disability following a stipulation, appeal, or other modification approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Final award” means the award of compensation determined by the Commission after exhaustion of all applicable appeals, regardless of whether the award is increased or decreased because of any appeal.</text> </paragraph> <paragraph num="(c)"> <text>“Formal set-aside allocation” means a document reflecting a comprehensive analysis and projection of future injury-related medical needs and associated costs.</text> </paragraph> <paragraph num="(d)"> <text>“State average weekly wage” means the State average weekly wage in effect on the date of the accident or date of disablement.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Schedule of Fees.</text> <paragraph num="(1)"> <text>Amounts Excluded from Calculation. In calculating the attorney’s fee, an attorney may not include in the calculation any amounts paid or payable for medical services and prescription drugs, including but not limited to:</text> <paragraph num="(a)"> <text>Any monies allocated to future medical expenses through a formal set-aside allocation;</text> </paragraph> <paragraph num="(b)"> <text>Any monies apportioned to future medical benefits;</text> </paragraph> <paragraph num="(c)"> <text>Any monies already paid or owing for medical services and prescription drugs; or</text> </paragraph> <paragraph num="(d)"> <text>Any monies charged or to be charged for the administration of a formal set-aside allocation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Fee in Excess of Limits — Exceptional Circumstances. The Commission may approve an attorney’s fee in excess of the limits set forth in this regulation only if exceptional circumstances are shown under Regulation .02B of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>Permanent Partial Disability.</text> <paragraph num="(a)"> <text>General. Except as otherwise provided in §C(3)(b) of this regulation, in a case in which a final award of compensation is made for permanent partial disability, the Commission may approve an attorney’s fee in a total amount not to exceed 60 times the State average weekly wage and computed as follows:</text> <paragraph num="(i)"> <text>Up to 20 percent of the first $50,000 of the total award of compensation;</text> </paragraph> <paragraph num="(ii)"> <text>Up to 15 percent of the next $50,000 of the total award of compensation; and</text> </paragraph> <paragraph num="(iii)"> <text>Up to 5 percent of the total award of compensation in excess of $100,000.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Disability Due to Amputation or Loss of Vision — Generally. Except as provided in §C(3)(c) of this regulation, in a case in which the rate of compensation is set for permanent partial disability due to the amputation of an arm, leg, hand, or foot, or total loss of vision in one eye, and the sole issue before the Commission is the nature and extent of disability, the Commission may approve an attorney’s fee in an amount up to 5 percent of the compensation awarded, but not exceeding 7.5 times the State average weekly wage.</text> </paragraph> <paragraph num="(c)"> <text>Disability Due to Amputation or Loss of Vision — Worsening. In a case of worsening of a permanent partial disability due to the amputation of an arm, leg, hand, or foot, or total loss of vision in one eye, takes place or is discovered after the rate of compensation is set or compensation is terminated, the Commission may approve an attorney’s fee computed under §C(8) of this regulation on the increased award.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Permanent Total Disability.</text> <paragraph num="(a)"> <text>General. Except as otherwise provided in this regulation, in a case in which an initial determination of permanent disability produces a final award of compensation for permanent total disability, the Commission may approve an attorney’s fee in an amount not exceeding 25 times the State average weekly wage.</text> </paragraph> <paragraph num="(b)"> <text>Special Cases. The Commission may approve an attorney’s fee in an amount not exceeding 15 times the State average weekly wage in a case in which compensability is not an issue and an award of compensation is made for permanent total disability established pursuant to either:</text> <paragraph num="(i)"> <text>Labor and Employment Article, §9-636(b), Annotated Code of Maryland, for the loss of two or more scheduled members; or</text> </paragraph> <paragraph num="(ii)"> <text>The stipulation on the extent of disability.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Temporary Total and Temporary Partial Disability. The Commission may not approve an attorney’s fee in a case in which final award of compensation is made for temporary total or temporary partial disability or temporary total disability paid while a claimant is receiving vocational rehabilitation services unless the claimant’s right to the compensation is contested, and the issue is resolved by evidentiary hearing or by stipulation. In such a contested case, the fee may be in an amount not exceeding 10 percent of the compensation that has accrued as of the date of the award.</text> </paragraph> <paragraph num="(6)"> <text>Dependency Claims.</text> <paragraph num="(a)"> <text>In a case involving a claim of dependency where compensability is not contested, but the extent of dependency, partial or total, or the identity of a dependent, or both is contested, the Commission may approve a total attorney’s fee for attorneys representing all dependents:</text> <paragraph num="(i)"> <text>In an amount not exceeding 6.25 times the State average weekly wage in a case of partial dependency under Labor and Employment Article, §9-682, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>In an amount not exceeding 15 times the State average weekly wage in a case of total dependency under Labor and Employment Article, §9-681 or 9-683.3, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>In a case involving a claim of dependency where neither compensability nor dependency is contested and a record is being made solely to determine to whom payments of compensation shall be made, the Commission may approve an attorney’s fee in an amount not exceeding 2.5 times the State average weekly wage.</text> </paragraph> <paragraph num="(c)"> <text>In a case involving a claim of dependency where compensability and dependency are contested, the Commission may approve an attorney’s fee:</text> <paragraph num="(i)"> <text>In an amount calculated under §C(3)(a) of this regulation in a case involving a claim of partial dependency under Labor and Employment Article, §9-682 or 9-683.3, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>In an amount calculated under §C(4)(a) of this regulation in a case of total dependency under Labor and Employment Article, §9-681, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>Settlement Agreements. In a case in which an agreement of final compromise and settlement is approved, and upon the filing of an application or petition for an attorney’s fee in accordance with Regulation .02 of this chapter, the Commission may approve an attorney’s fee not exceeding 60 times the State average weekly wage and computed in accordance with §B(3)(a) of this regulation.</text> </paragraph> <paragraph num="(8)"> <text>Increase in Last Award of Compensation.</text> <paragraph num="(a)"> <text>Permanent Partial Disability. If the claimant is entitled to additional compensation as a result of an increase in a permanent partial disability award under §C(3) of this regulation the Commission may approve an additional attorney’s fee in an amount not exceeding the difference between the fee approved for all prior permanent partial disability awards and the fee computed under §C(3) or (4)(a) of this regulation on the increased award.</text> </paragraph> <paragraph num="(b)"> <text>Agreement of Final Compromise and Settlement. If the claimant is entitled to additional compensation as a result of an agreement of final compromise and settlement approved under §C(7) of this regulation following a prior award of permanent partial disability, the Commission may approve an additional attorney’s fee in an amount not exceeding the difference between the fee approved for all prior awards and the fee computed under §C(3) or (4) of this regulation on the increased award.</text> </paragraph> <paragraph num="(c)"> <text>In a case in which a determination of permanent disability made pursuant to Labor and Employment Article, §9-736(a), Annotated Code of Maryland, produces a final award of compensation for permanent total disability, the Commission may approve an additional attorney’s fee in an amount as follows:</text> <paragraph num="(i)"> <text>20 percent of the first 200 weeks of permanent total disability benefits, excluding any cost-of-living increase as provided in Labor and Employment Article, §9-638 or §9-638.1, Annotated Code of Maryland, minus a fee or fees approved for all prior permanent disability awards; and</text> </paragraph> <paragraph num="(ii)"> <text>Not exceeding 15 times the State average weekly wage.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(9)"> <text>Additional Fees for Appeals of Compensation Awards.</text> <paragraph num="(a)"> <text>When a compensation award of the Commission is appealed to a circuit court and the case is tried on appeal, the Commission may approve an additional attorney’s fee in an amount up to 5 percent of the first final indemnity award issued following the circuit court action, but not exceeding 7.5 times the State average weekly wage.</text> </paragraph> <paragraph num="(b)"> <text>When a decision of a circuit court on an appeal from a compensation award of the Commission is appealed to a higher appellate court and the appeal is briefed and decided on its merits, the Commission may approve an additional attorney’s fee for each appeal in an amount up to 5 percent of the first final indemnity award issued following the appellate action, but not exceeding 7.5 times the State average weekly wage.</text> </paragraph> <paragraph num="(c)"> <text>When an appeal from a compensation award of the Commission to a circuit court is not tried, or an appeal to a higher appellate court is not briefed and decided on its merits, the Commission may approve an additional attorney’s fee in an amount up to 2.5 percent of the first final indemnity award issued following the appellate action or circuit court action, but not exceeding 3.75 times the State average weekly wage.</text> </paragraph> <paragraph num="(d)"> <text>When a decision of the Commission on the issue of compensability of a claim is appealed to a circuit court, if the claim is determined on appeal to be compensable, the Commission, upon remand, may approve an additional attorney’s fee in an amount up to 5 percent of the first final indemnity award issued following the remand, but not exceeding 7.5 times the State average weekly wage.</text> </paragraph> <paragraph num="(e)"> <text>An attorney may be awarded an appeal fee under only one of paragraphs (a) — (d) of this subsection for a circuit court action or appellate court action.</text> </paragraph> <paragraph num="(f)"> <text>Once an appeal fee has been awarded for a circuit court action or appellate action, the Commission may not award an additional appeal fee based on the same circuit court action or appellate action.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Attorney’s Fee Allowed — Exceptional Circumstances.</text> <paragraph num="(1)"> <text>In exceptional circumstances as shown under Regulation .02B of this chapter, the Commission may approve an attorney’s fee in a case in which it is determined that the claimant is not entitled to any compensation or benefits. Nothing in this regulation prohibits the Commission from awarding an attorney’s fee under Regulation .02C of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>In exceptional circumstances as shown under Regulation .02B of this chapter, the Commission may approve an attorney’s fee in a case involving issues such as medical care and treatment, or vocational rehabilitation, in which the claimant does not receive any monetary award. Nothing in this regulation prohibits the Commission from awarding an attorney’s fee under Regulation .02C of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Attorneys' Fees for Multiple Counsel."> <paragraph num="A."> <text>An attorney who no longer represents a claimant and wishes to pursue a fee lien shall draft and file a petition for attorneys' fees.</text> </paragraph> <paragraph num="B."> <text>The petition for attorneys' fees shall include:</text> <paragraph num="(1)"> <text>A statement of the work performed and the basis of the fee; and</text> </paragraph> <paragraph num="(2)"> <text>A certificate of service.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The filing of the petition for attorneys' fee constitutes a fee lien that shall be noted and held until the permanency award or settlement.</text> </paragraph> <paragraph num="D."> <text>Unless the parties have otherwise agreed, upon the issuance of a permanency award or settlement, any attorney's fee awarded shall be held in escrow until the distribution of the fee to be resolved by:</text> <paragraph num="(1)"> <text>A hearing; or</text> </paragraph> <paragraph num="(2)"> <text>Agreement of the attorneys on the division of the attorney's fee.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-721, 9-731, and 9-734, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 15, 1988 (15:25 Md. R. 2903)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective July 1, 1990 (17:12 Md. R. 1494); May 28, 2001 (28:10 Md. R. 950)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective July 1, 1990 (17:12 Md. R. 1494)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02F amended effective July 1, 1990 (17:12 Md. R. 1494)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02, Guide for Evaluation of Permanent Impairment, recodified from COMAR 14.09.04 to COMAR 14.09.09, Guide for Evaluation of Permanent Disability, effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03, recodified from Regulations .23—.25 in COMAR 14.09.01, Procedural Regulations, to COMAR 14.09.04, Legal Representation and Fees, and amended effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective March 12, 2018 (45:5 Md. R. 287); August 24, 2020 (47:17 Md. R. 797); October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, B amended effective April 3, 2023 (50:6 Md. R. 219)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 repealed and new Regulation .03 adopted effective April 3, 2023 (50:6 Md. R. 219)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective July 20, 2015 (42:14 Md. R. 884); March 12, 2018 (45:5 Md. R. 287); April 8, 2019 (46:7 Md. R. 370); October 7, 2019 (46:20 Md. R. 846)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B, C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective March 3, 2014 (41:4 Md. R. 304)</annotation> </annotations> </chapter> <chapter num="05" heading="Uninsured Employers' Fund Claims"> <regulation prefix="Regulation" num=".01" heading="Notification and Response of Uninsured Employer and Claimant."> <paragraph num="A."> <text>If a workers’ compensation claim is received by the Commission and the Commission’s records indicate that the employer is uninsured, the Commission shall notify the employer of the claim by sending the employer:</text> <paragraph num="(1)"> <text>A notice of the claim form;</text> </paragraph> <paragraph num="(2)"> <text>An uninsured employer's questionnaire; and</text> </paragraph> <paragraph num="(3)"> <text>A request for verification of the employer's workers' compensation insurance policy.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission shall send a copy of the notice of the claim form to all parties of record.</text> </paragraph> <paragraph num="C."> <text>Within 21 days of the date the notice of the claim form was sent by the Commission:</text> <paragraph num="(1)"> <text>The uninsured employer shall:</text> <paragraph num="(a)"> <text>Begin paying temporary total benefits; or</text> </paragraph> <paragraph num="(b)"> <text>File a response to employee’s claim form, if the employer contests the claim; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>File one of the following:</text> <paragraph num="(a)"> <text>The signed and completed uninsured employer's questionnaire; or</text> </paragraph> <paragraph num="(b)"> <text>The verification of the employer's workers' compensation insurance policy, if applicable.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Within 21 days of the date the Commission sends the notice of the claim form to the parties of record, the claimant shall complete and file the claimant’s questionnaire in accordance with COMAR 14.09.02.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Review of Claim Contested by Uninsured Employer."> <paragraph num="A."> <text>The Commission shall set a hearing to review any claim contested by an uninsured employer pursuant to Regulation .01C of this chapter.</text> </paragraph> <paragraph num="B."> <text>Upon completion of the hearing the Commission shall:</text> <paragraph num="(1)"> <text>Dismiss the claim; or</text> </paragraph> <paragraph num="(2)"> <text>Issue an award requiring that the appropriate compensation be paid by the uninsured employer to the claimant.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Review of Uncontested Claims."> <text>If an uninsured employer does not contest the claim by filing the response to employee’s claim form within 21 days after the Commission served the notice of the claim form to the employer, the Commission may:</text> <paragraph num="A."> <text>Review the claim for legal sufficiency; and</text> </paragraph> <paragraph num="B."> <text>Either:</text> <paragraph num="(1)"> <text>Dismiss the claim; or</text> </paragraph> <paragraph num="(2)"> <text>Issue an automatic award finding the claim compensable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Notification and Payment of the Award."> <text>The uninsured employer shall pay an award issued under Regulation .02 or .03 of this chapter within 30 days of the date the Commission serves notice of the award to the parties in accordance with Labor and Employment Article, §9-1002, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Request for Payment by the Fund."> <paragraph num="A."> <text>If the uninsured employer fails to pay an award and does not file for review of the award, the claimant may:</text> <paragraph num="(1)"> <text>Send a request for payment, and a copy of claimant's questionnaire to the UEF; and</text> </paragraph> <paragraph num="(2)"> <text>Contemporaneously file a copy of the request for payment and the claimant's questionnaire with the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>No action will be taken against an employer or the UEF if the request for payment and the claimant's questionnaire are not filed with the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Response of UEF and Impleader of Other Employer or Insurer."> <paragraph num="A."> <text>Within 21 days after the date claimant filed a copy of the request for payment and claimant's questionnaire, the UEF shall respond by:</text> <paragraph num="(1)"> <text>Paying the award; or</text> </paragraph> <paragraph num="(2)"> <text>Filing issues.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the UEF raises issues of statutory employment, or the existence of another employer or insurer, the UEF shall implead the employer and the insurer, if known.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Notification and Response of Impleaded Employer or Insurer."> <paragraph num="A."> <text>If the UEF impleads an employer or insurer the Commission shall serve the impleaded party a copy of the notice of the claim form.</text> </paragraph> <paragraph num="B."> <text>The impleaded party shall respond within 21 days after the date of the notice referred to in §A of this regulation, by:</text> <paragraph num="(1)"> <text>Paying the award; or</text> </paragraph> <paragraph num="(2)"> <text>Filing issues.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Review of Disputed Claim."> <paragraph num="A."> <text>If the UEF or an impleaded party disputes a claim under Regulation .06 or .07 of this chapter, the Commission shall set a hearing to review the claims of all parties on all issues.</text> </paragraph> <paragraph num="B."> <text>Upon completion of the hearing, the Commission shall:</text> <paragraph num="(1)"> <text>Dismiss the claim; or</text> </paragraph> <paragraph num="(2)"> <text>Issue an award.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-6A-04, 9-6A-07, and 9-1002, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 11, 2001 (28:11 Md. R. 1053)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised and recodified from COMAR 14.09.07, Uninsured Employer's Fund Claims, to COMAR 14.09.05, Uninsured Employer's Fund Claims, effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="06" heading="Payment of Awards and Assessments and Termination of Benefits"> <regulation prefix="Regulation" num=".01" heading="Payment Prior to Filing of Claim."> <paragraph num="A."> <text>If a covered employee or dependent has not filed a claim with the Commission for the death or disability of the covered employee, an employer or insurer may not pay, in whole or in part, any compensation under Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>If a covered employee or dependent has not filed a claim with the Commission for the death or disability of the covered employee, an employer or insurer may pay or contest charges for medical and other services under Labor and Employment Article, Title 9, Subtitle 6, Part IX or Part XIII, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>An employer or insurer shall pay uncontested medical charges promptly after receipt.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Claims for Medical Expenses; Notice; Penalty."> <paragraph num="A."> <text>Notice. Within 5 days after receipt of an order of the Commission on a claim for payment for medical services, the claimant shall serve a copy of the order on the provider of the medical services for which payment was granted or denied.</text> </paragraph> <paragraph num="B."> <text>Penalty for Late Payment for Treatment or Services.</text> <paragraph num="(1)"> <text>The Commission may assess against an employer or insurer a fine not to exceed 20 percent of any fee approved but not timely paid pursuant to Labor and Employment Article, §9-664, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall determine the amount of the fine on a case-by-case basis.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Payment of Assessments."> <paragraph num="A."> <text>Time for Payment. Assessments payable for the SIF and the UEF shall be paid within 30 days after the date of the award of compensation or approval of a settlement.</text> </paragraph> <paragraph num="B."> <text>Assessments shall be paid in accordance with Labor and Employment Article, §§9-806, 9-1007, and 9-1008, Annotated Code of Maryland, as ordered by the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Termination of Temporary Total Disability and Medical Benefits."> <paragraph num="A."> <text>Termination of Monetary Benefits Requiring Notice.</text> <paragraph num="(1)"> <text>Prior to terminating payment of temporary total disability benefits, an insurer shall give written notice to the claimant by:</text> <paragraph num="(a)"> <text>Completing the insurer’s termination of temporary total disability benefits form; and</text> </paragraph> <paragraph num="(b)"> <text>Sending a copy of the form to the claimant, counsel and to the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The insurer’s termination of temporary total disability benefits form may be used to provide notice to the claimant of the termination of disability benefits when:</text> <paragraph num="(a)"> <text>The employee is working for another employer other than the employer where the accident or occupational disease occurred;</text> </paragraph> <paragraph num="(b)"> <text>No medical evidence supports continued payment;</text> </paragraph> <paragraph num="(c)"> <text>The employee failed to appear for a medical evaluation requested by the employer/insurer;</text> </paragraph> <paragraph num="(d)"> <text>A physician other than the employee's chosen treating physician has determined that the employee has reached maximum medical improvement; or</text> </paragraph> <paragraph num="(e)"> <text>Otherwise supported by law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Termination of Monetary Benefits — No Notice Required. An insurer may terminate payment of temporary total disability benefits without providing written notice, pursuant to Labor & Employment Article, §9-733(a), Annotated Code of Maryland, if:</text> <paragraph num="(1)"> <text>The employee has returned to his or her current employment;</text> </paragraph> <paragraph num="(2)"> <text>A treating physician chosen by the employee has advised that the employee has reached maximum medical improvement; or</text> </paragraph> <paragraph num="(3)"> <text>The termination is made after the termination date contained in an order of the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Termination of Medical Benefits.</text> <paragraph num="(1)"> <text>Prior to terminating the payment of medical benefits, an insurer shall give written notice to the claimant and the claimant's treating physician or health care provider of the date that benefits will be terminated.</text> </paragraph> <paragraph num="(2)"> <text>Written notice of the date that medical benefits will be terminated shall include a statement that the claimant has the right to request a hearing before the Commission on the issue of termination.</text> </paragraph> <paragraph num="(3)"> <text>A copy of the termination notice provided to the claimant shall be filed with the Commission.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-605, 9-713, 9-727—9-731, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 28, 2001 (28:10 Md. R. 949)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 2, 2002 (29:17 Md. R. 1382)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective November 26, 2001 (28:23 Md. R. 2055); April 11, 2005 (32:7 Md. R. 683)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 2, 2002 (29:17 Md. R. 1382); April 11, 2005 (32:7 Md. R. 683)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C repealed effective November 26, 2001 (28:23 Md. R. 2055)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective July 4, 2005 (32:13 Md. R. 1116); July 23, 2012 (39:14 Md. R. 839)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03, recodified from Regulations .09, .22, and .21 in COMAR 14.09.01, Procedural Regulations, to COMAR 14.09.06, Payment of Awards and Assessments and Termination of Benefits, and amended effective March 3, 2014 (41:4 Md. R. 303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective March 3, 2014 (41:4 Md. R. 303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="07" heading="Vocational Rehabilitation"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Advisory Committee” means the Advisory Committee on the Registration of Rehabilitation Practitioners.</text> </paragraph> <paragraph num="(2)"> <text>“Case management functions” means the coordination and utilization of vocational rehabilitation services, either in person or telephonically, with respect to a specific injured worker, including the supervision of these duties performed by others.</text> </paragraph> <paragraph num="(3)"> <text>“Commission” means the Maryland Workers' Compensation Commission.</text> </paragraph> <paragraph num="(4)"> <text>“Director” means the Director of Rehabilitation of the Maryland Workers' Compensation Commission.</text> </paragraph> <paragraph num="(5)"> <text>“DORS” means Maryland State Department of Education Division of Rehabilitation Services.</text> </paragraph> <paragraph num="(6)"> <text>“Enrolled vocational rehabilitation organization” means an organization or company that:</text> <paragraph num="(a)"> <text>Employs, or has working on its behalf, at least one registered vocational rehabilitation practitioner; and</text> </paragraph> <paragraph num="(b)"> <text>Has enrolled with the Commission.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Functional Capacity Evaluation (FCE)” means the systematic process of assessing an individual's physical capacities and functional abilities and matching human performance levels to the demands of a specific job or work activity or occupation.</text> </paragraph> <paragraph num="(8)"> <text>“Job placement” means services provided to support the disabled covered employee's search for work including, but not limited to, identifying job leads, arranging interviews, teaching techniques for effective job searches, resume writing, interviewing and job application completion,</text> </paragraph> <paragraph num="(9)"> <text>“Nurse case manager” means a nurse who is certified by the State Board of Nursing to provide case management services, including but not limited to interviewing the worker for the purpose of implementing and coordinating services with health care providers and with the worker and the worker's family.</text> </paragraph> <paragraph num="(10)"> <text>“Office” means the Office of Vocational Rehabilitation of the Maryland Workers' Compensation Commission.</text> </paragraph> <paragraph num="(11)"> <text>Provider.</text> <paragraph num="(a)"> <text>“Provider” means the enrolled vocational rehabilitation organization that provides vocational rehabilitation services to a claimant through a registered vocational rehabilitation practitioner.</text> </paragraph> <paragraph num="(b)"> <text>“Provider” includes the Maryland State Department of Education Division of Rehabilitation Services (“DORS”).</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Rehabilitation counselor” means a qualified individual who is engaged in activities leading to vocational assessment or job placement, or both, of an injured worker.</text> </paragraph> <paragraph num="(13)"> <text>“Rehabilitation practitioner” means an individual who provides vocational rehabilitation services including:</text> <paragraph num="(a)"> <text>A nurse certified by the State Board of Nursing as a nurse case manager;</text> </paragraph> <paragraph num="(b)"> <text>A rehabilitation counselor; and</text> </paragraph> <paragraph num="(c)"> <text>A vocational evaluator.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Retraining plan” means a plan for providing the disabled covered employee with educational and vocational training and may include on-the job training.</text> </paragraph> <paragraph num="(15)"> <text>“Self-employment plan” means a business plan for self-employment that identifies the skills, experience and expertise necessary to manage the business, and may include a complete business description, an organization plan, owner/operator qualifications, a marketing plan supported by factual information concerning the demand for products or services, income projections, a sound start-up financial plan, financial resources needed to start the business, and a contingency plan in the event the self-employment plan targets are not met.</text> </paragraph> <paragraph num="(16)"> <text>“Suitable gainful employment” has the meaning stated in Labor and Employment Article, §9-670(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(17)"> <text>“Vocational assessment” has the meaning stated in Labor and Employment Article, §9-670(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(18)"> <text>“Vocational evaluator” means a qualified individual who utilizes a comprehensive process that systematically uses the simulated or actual work environment as the basis for vocational assessment and exploration.</text> </paragraph> <paragraph num="(19)"> <text>“Vocational rehabilitation services” has the meaning stated in Labor and Employment Article, §9-670(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(20)"> <text>“Vocational testing” means standardized interest, aptitude, achievement, and other specific skills tests used to identify areas of interest and aptitudes for various types of work, and compatibilities with different work environments. The types of test may include but are not limited to the Wide Range Achievement Test (WRAT), the General Aptitude Test Battery (GATB), Strong Interest Inventory, the Myers-Briggs Type Indicator, and the Test of Nonverbal Intelligence.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Application Procedures for Registration."> <paragraph num="A."> <text>To apply for registration with the Commission, an applicant shall submit to the Commission:</text> <paragraph num="(1)"> <text>An application on the form prescribed by the Commission completed in accordance with the directions provided;</text> </paragraph> <paragraph num="(2)"> <text>Two letters attesting to the applicant's moral character;</text> </paragraph> <paragraph num="(3)"> <text>Appropriate documentation that the applicant satisfies the education and experience requirements of Labor and Employment Article, §9-6A-09, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(4)"> <text>Payment in the amount of the application fee established by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Automatic Registration.</text> <paragraph num="(1)"> <text>Nurse Case Managers. A nurse case manager certified by the State Board of Nursing is automatically registered with the Commission upon:</text> <paragraph num="(a)"> <text>Completion of the Commission application form; and</text> </paragraph> <paragraph num="(b)"> <text>Payment of the fee established by the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Other Health Practitioners. Any health care provider who is licensed or certified by the applicable State licensing board or commission and who provides vocational rehabilitation services is automatically registered with the Commission upon:</text> <paragraph num="(a)"> <text>Completion of the Commission application form; and</text> </paragraph> <paragraph num="(b)"> <text>Payment of the fee established by the Commission.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If another State licensing board or commission's certification is valid for a period of time less than a provider's registration under Regulation .02 of this chapter, the provider shall submit a copy of the provider's certificate or renewal to the Director within 30 days after receiving the certificate or renewal.</text> </paragraph> <paragraph num="(4)"> <text>A health care provider who is licensed or certified by an applicable State licensing board or commission and is automatically registered with the Commission under this regulation shall maintain their license or certificate in good standing in order to maintain automatic registration as a practitioner with the Commission. If the practitioner’s license or certificate expires or otherwise ceases to remain in good standing, the practitioner shall immediately notify the Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Waiver of Registration.</text> <paragraph num="(1)"> <text>The Commission shall keep a list of providers who are not required to be registered with the Commission in accordance with §A or B of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A provider who is not required to be registered with the Commission shall file a request for waiver on a form prescribed by the Commission every 2 years.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Review of Application.</text> <paragraph num="(1)"> <text>The Commission shall review applications for registration and requests for waivers.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may refer an application to the Advisory Committee for review, evaluation, and recommendations.</text> </paragraph> <paragraph num="(3)"> <text>If an application has been referred to the Advisory Committee for review, the Commission shall place the application under advisement until the Advisory Committee makes its recommendation regarding the applicant.</text> </paragraph> <paragraph num="(4)"> <text>After the Advisory Committee makes its recommendations, the Commission shall consider the application and recommendations at its regularly scheduled monthly meeting. The Commission need not accept the Advisory Committee's recommendations.</text> </paragraph> <paragraph num="(5)"> <text>If the application is approved, the Commission shall promptly register the applicant as a provider of vocational rehabilitation services.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Term and Renewal of Registration.</text> <paragraph num="(1)"> <text>A registration is valid for 3 years from the date of issuance.</text> </paragraph> <paragraph num="(2)"> <text>Notice of renewal and a renewal application shall be:</text> <paragraph num="(a)"> <text>Sent to each registered provider before the registration's expiration date; and</text> </paragraph> <paragraph num="(b)"> <text>Returned to the Director by the deadline for renewal.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Requirements for Renewal of Registration.</text> <paragraph num="(a)"> <text>Continuing Education Requirements — Renewal of Registration. Except for a practitioner automatically registered under §B of this regulation, a practitioner shall meet the following continuing education requirements for registration renewal:</text> <paragraph num="(i)"> <text>A minimum of 12 hours of continuing education credits in workers’ compensation related programs within the 3-year period preceding the application for renewal; and</text> </paragraph> <paragraph num="(ii)"> <text>At least six of the credits specified in §E(3)(a)(i) of this regulation shall be in training or information classes given or approved by the Commission.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Along with the renewal application, a provider shall submit appropriate documentation that the provider has satisfied the continuing education requirements specified in §E(3)(a) of this regulation.</text> </paragraph> <paragraph num="(c)"> <text>If a provider has not completed at least 12 hours of continuing education credits within the 3-year period preceding an application for renewal, the Commission has the sole discretion to determine the sufficiency of efforts by the provider in deciding whether to renew the provider's registration.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Hearings on Denial of Application or Request for Waiver."> <paragraph num="A."> <text>Denial of Application.</text> <paragraph num="(1)"> <text>If the Commission denies an application or request for waiver, the Commission shall issue an order advising the applicant of the Commission's action.</text> </paragraph> <paragraph num="(2)"> <text>The applicant may request a hearing by submitting the prescribed Commission form to the Director within 30 days after the date of the order.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Hearings and Final Orders.</text> <paragraph num="(1)"> <text>If a hearing is requested, the Commission shall conduct a hearing which is presided over by a panel of three Commissioners.</text> </paragraph> <paragraph num="(2)"> <text>After a hearing, the Commission shall promptly issue a final order which shall be decided by at least two of the three Commissioners.</text> </paragraph> <paragraph num="(3)"> <text>If an applicant fails to request a hearing within the time prescribed by §A(2) of this regulation, the Commission shall issue a final order denying the application.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The applicant may appeal a final decision of the Commission in accordance with Labor and Employment Article, §9-737, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="General Rules for Vocational Rehabilitation Service Practitioners."> <paragraph num="A."> <text>A practitioner shall consider the best interests of a disabled covered employee in providing vocational rehabilitation services. Unrepresented disabled covered employees shall be treated in the same manner as represented disabled covered employees.</text> </paragraph> <paragraph num="B."> <text>A practitioner may not misrepresent the practitioner's duties or responsibilities or the workers' compensation process to disabled covered employees.</text> </paragraph> <paragraph num="C."> <text>The vocational rehabilitation practitioner shall exercise independent and professional judgment when performing an assessment or developing a vocational rehabilitation plan.</text> </paragraph> <paragraph num="D."> <text>At the initial comprehensive assessment, a practitioner shall advise the disabled covered employee that:</text> <paragraph num="(1)"> <text>The practitioner's fees are paid by the employer/insurer; and</text> </paragraph> <paragraph num="(2)"> <text>The practitioner is an independent professional and shall render an opinion based solely on the facts and evidence in the case.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Subject to any applicable privilege, a practitioner shall notify all parties of any contact with or about the disabled covered employee, whether that contact was in person, in writing, or made electronically.</text> </paragraph> <paragraph num="F."> <text>Unless the disabled covered employee consents in writing, a practitioner may not be present during a medical examination.</text> </paragraph> <paragraph num="G."> <text>With the written consent of the disabled covered employee, a practitioner may seek a healthcare provider's opinion following examination.</text> </paragraph> <paragraph num="H."> <text>A practitioner shall comply with:</text> <paragraph num="(1)"> <text>The Commissioner's orders and procedures; and</text> </paragraph> <paragraph num="(2)"> <text>Standards of practice adopted by the practitioner's State licensing board or commission, if applicable.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Penalties. Violation of this regulation may result in the Commission:</text> <paragraph num="(1)"> <text>Suspending or revoking the practitioner's registration;</text> </paragraph> <paragraph num="(2)"> <text>Placing the practitioner on probation; or</text> </paragraph> <paragraph num="(3)"> <text>Reprimanding the practitioner.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Standards of Practice for Rehabilitation Counselors and Vocational Evaluators."> <paragraph num="A."> <text>Scope. This regulation applies only to rehabilitation counselors and vocational evaluators.</text> </paragraph> <paragraph num="B."> <text>Standards.</text> <paragraph num="(1)"> <text>Rehabilitation counselors and vocational evaluators shall use their professional skills to promote a disabled covered employee's active participation in plan development and the rehabilitation process within the disabled covered employee's physical and mental abilities.</text> </paragraph> <paragraph num="(2)"> <text>Rehabilitation counselors and vocational evaluators shall function within the limits of their defined roles, training, and professional competencies.</text> </paragraph> <paragraph num="(3)"> <text>Rehabilitation counselors and vocational evaluators may not engage in any activity which may compromise the health, safety, or welfare of the disabled covered employee, and shall avoid continuing a consulting or counseling relationship if it is reasonably expected that the relationship can be of no benefit to the client.</text> </paragraph> <paragraph num="(4)"> <text>Rehabilitation counselors and vocational evaluators shall demonstrate honesty and objectivity in:</text> <paragraph num="(a)"> <text>The administration, scoring, interpretation, and utilization of assessment instruments;</text> </paragraph> <paragraph num="(b)"> <text>The writing of reports; and</text> </paragraph> <paragraph num="(c)"> <text>Charges for professional services.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Rehabilitation counselors and vocational evaluators may not engage in harassment or discrimination of disabled covered employees on the basis of age, race, creed, national origin, gender, disability, or religious affiliation.</text> </paragraph> <paragraph num="(6)"> <text>Rehabilitation counselors and vocational evaluators may not engage in any act or omission of a dishonest, deceitful, or fraudulent nature in the conduct of their professional activities.</text> </paragraph> <paragraph num="(7)"> <text>Rehabilitation counselors and vocational evaluators may not allow the pursuit of financial gain or other personal benefit to interfere with the exercise of sound professional judgment and skills.</text> </paragraph> <paragraph num="(8)"> <text>Rehabilitation counselors and vocational evaluators may not disparage the competency or ethics of other professionals or agencies in discussions with their clients.</text> </paragraph> <paragraph num="(9)"> <text>Rehabilitation counselors and vocational evaluators shall perform appropriate and objective vocational evaluations and vocational assessments promptly.</text> </paragraph> <paragraph num="(10)"> <text>Rehabilitation counselors and vocational evaluators shall work cooperatively in a multidisciplinary effort to provide services leading to suitable gainful employment for an injured worker.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Penalties. Violation of one or more of the standards in §B of this regulation may result in the Commission:</text> <paragraph num="(1)"> <text>Suspending or revoking the practitioner's registration;</text> </paragraph> <paragraph num="(2)"> <text>Placing the practitioner on probation; or</text> </paragraph> <paragraph num="(3)"> <text>Reprimanding the practitioner.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Complaints Against Practitioners."> <paragraph num="A."> <text>Complaints.</text> <paragraph num="(1)"> <text>A complaint concerning a practitioner shall be:</text> <paragraph num="(a)"> <text>In writing;</text> </paragraph> <paragraph num="(b)"> <text>On the form prescribed by the Commission; and</text> </paragraph> <paragraph num="(c)"> <text>Signed under oath by the complainant.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The complaint as filed shall be confidential, unless introduced into evidence at a hearing before the Commission.</text> </paragraph> <paragraph num="(3)"> <text>All correspondence related to a complaint shall be:</text> <paragraph num="(a)"> <text>Addressed to the Director of Rehabilitation, Workers' Compensation Commission, 10 E. Baltimore Street, Baltimore, MD 21202; and</text> </paragraph> <paragraph num="(b)"> <text>Marked CONFIDENTIAL.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Preliminary Procedures.</text> <paragraph num="(1)"> <text>If the Director determines that the complaint may be meritorious, the Director shall:</text> <paragraph num="(a)"> <text>Promptly notify the practitioner in writing that a complaint has been filed against the practitioner; and</text> </paragraph> <paragraph num="(b)"> <text>Send the practitioner a copy of the complaint by registered mail.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 21 days after receipt of the complaint, the practitioner may:</text> <paragraph num="(a)"> <text>Respond in writing to the complaint; and</text> </paragraph> <paragraph num="(b)"> <text>Submit to the Director any additional information that may be relevant to the Director's investigation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Director shall ascertain whether the complaint is within the jurisdiction of the Commission or any other health licensing boards or commissions. If the complaint is within the jurisdiction of another licensing board or commission, the Director shall promptly send a copy of the complaint to the appropriate licensing board or commission.</text> </paragraph> <paragraph num="(4)"> <text>If the Director determines that there is insufficient information to make a fair determination of the conduct alleged in the complaint, the Director may request additional information from the complainant or others.</text> </paragraph> <paragraph num="(5)"> <text>If the Director requests additional information from the practitioner, the practitioner shall respond within the time specified by the Director. Failure to respond or to participate in the Director's investigation may result in a finding against the practitioner and a reprimand or suspension or revocation of the practitioner's registration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Referral to Commission.</text> <paragraph num="(1)"> <text>If the Director determines that there is reasonable cause to believe that the practitioner has violated one or more of the Commission's regulations or standards of practice, the Director shall refer the complaint to the Commission for a decision. The Director shall promptly inform the practitioner by registered mail that the complaint has been referred to the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The practitioner shall respond in writing within 21 days after receipt of notice of the referral. The response shall indicate whether the practitioner:</text> <paragraph num="(a)"> <text>Intends to defend against the allegations of the complaint; and</text> </paragraph> <paragraph num="(b)"> <text>Requests a hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the practitioner does not request a hearing within the time limit specified in §C(2) of this regulation, the Commission may rule on the complaint with or without a hearing. Top of Form</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedures for Hearings on Complaints."> <paragraph num="A."> <text>Notice of Hearing. The Commission shall send written notice of a hearing to all interested parties at least 30 days before the hearing. The notice shall state the:</text> <paragraph num="(1)"> <text>Date, time, and place of the hearing; and</text> </paragraph> <paragraph num="(2)"> <text>Issues or charges involved in the proceeding.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Conduct of Hearing.</text> <paragraph num="(1)"> <text>A hearing on a complaint against a practitioner shall be held before a panel of three Commissioners.</text> </paragraph> <paragraph num="(2)"> <text>Order of Procedure. The case on behalf of the Commission shall be presented first. The respondent shall then present the respondent's case. After that, rebuttal is permitted.</text> </paragraph> <paragraph num="(3)"> <text>All parties appearing at hearings have the right to appear in proper person, or by or with counsel.</text> </paragraph> <paragraph num="(4)"> <text>If a practitioner who has requested a hearing and been served with notice fails to appear for the hearing, the Commission may:</text> <paragraph num="(a)"> <text>Proceed with the hearing; and</text> </paragraph> <paragraph num="(b)"> <text>On the evidence presented, make its decision.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Records and Transcripts.</text> <paragraph num="(1)"> <text>The Commission shall prepare an official record which includes all:</text> <paragraph num="(a)"> <text>Pleadings;</text> </paragraph> <paragraph num="(b)"> <text>Testimony;</text> </paragraph> <paragraph num="(c)"> <text>Exhibits; and</text> </paragraph> <paragraph num="(d)"> <text>Other memoranda or material filed in the proceeding.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A record of the proceeding shall be made at the expense of the Commission. This record need not be transcribed unless requested by a party or by the Commission. The cost of any typewritten transcripts of proceeding, or part of them, shall be paid by the party requesting the transcript.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Decision and Order.</text> <paragraph num="(1)"> <text>After the hearing, the Commission shall promptly issue an order which shall be decided by two out of the three Commissioners.</text> </paragraph> <paragraph num="(2)"> <text>A copy of the Commission's decision and order shall be served on:</text> <paragraph num="(a)"> <text>Each party; or</text> </paragraph> <paragraph num="(b)"> <text>The party's attorney of record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Rehearing.</text> <paragraph num="(1)"> <text>A party aggrieved by the Commission's decision may move for a rehearing within 10 days after service of the decision and order.</text> </paragraph> <paragraph num="(2)"> <text>Unless otherwise ordered, a rehearing or a request for rehearing does not stay the enforcement of the Commission’s order, or excuse the persons affected by it for failure to comply with its terms.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may decide the request with or without a hearing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Appeals. Either the practitioner or the Director may appeal the final decision of the Commission as provided by Labor and Employment Article, §9-737, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Application Procedures for Enrollment of Providers."> <paragraph num="A."> <text>To enroll with the Commission, the provider shall submit:</text> <paragraph num="(1)"> <text>An application on the form prescribed by the Commission completed in accordance with the directions provided; and</text> </paragraph> <paragraph num="(2)"> <text>A complete listing of all registered practitioners employed by the provider.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Upon approval of the application, the Commission shall promptly enroll the provider as an enrolled provider of vocational rehabilitation services.</text> </paragraph> <paragraph num="C."> <text>Term, Conditions and Renewal of Enrollment.</text> <paragraph num="(1)"> <text>Enrollment is valid for 2 years from the date of issuance.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall provide each enrolled provider with a notice of renewal and a renewal application 30 days prior to the expiration date of the current enrollment.</text> </paragraph> <paragraph num="(3)"> <text>The enrolled provider shall return the application for renewal to the Rehabilitation Office by the specified deadline for renewal.</text> </paragraph> <paragraph num="(4)"> <text>The enrolled provider shall update the list of registered practitioners employed by the provider semi-annually.</text> </paragraph> <paragraph num="(5)"> <text>Unless a provider has enrolled with the Commission, a provider may not be eligible for referral under Regulation .09F of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Selection of Practitioner."> <paragraph num="A."> <text>A rehabilitation practitioner shall register with the Commission in accordance with Regulation .02 of this chapter.</text> </paragraph> <paragraph num="B."> <text>To be eligible for referral under §F of this regulation, a provider shall enroll with the Commission in accordance with Regulation .08 of this chapter.</text> </paragraph> <paragraph num="C."> <text>The Commission website shall provide information regarding enrolled providers including the name, address, website address, and telephone number of the provider.</text> </paragraph> <paragraph num="D."> <text>A disabled covered employee may obtain vocational rehabilitation services only in accordance with this regulation.</text> </paragraph> <paragraph num="E."> <text>Referral by Agreement or Order.</text> <paragraph num="(1)"> <text>The parties shall attempt to reach agreement on:</text> <paragraph num="(a)"> <text>Whether vocational rehabilitation services are appropriate in the case; and</text> </paragraph> <paragraph num="(b)"> <text>The registered practitioner to provide the vocational rehabilitation services.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the parties reach agreement on both the propriety of the services and the practitioner, the parties shall complete the prescribed Commission form indicating their agreement and identifying the selected practitioner.</text> </paragraph> <paragraph num="(3)"> <text>The parties shall file the form with the Commission and send a copy of the form to the selected practitioner.</text> </paragraph> <paragraph num="(4)"> <text>Unless the practitioner has received a copy of form selecting the practitioner as the individual to provide services, the practitioner may not:</text> <paragraph num="(a)"> <text>Contact the disabled covered employee directly or through an agent; or</text> </paragraph> <paragraph num="(b)"> <text>Initiate vocational rehabilitation services.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If the parties are unable to agree that vocational rehabilitation services are appropriate, the dispute shall be resolved in accordance with Regulation .12 of this chapter.</text> </paragraph> <paragraph num="(6)"> <text>If the Commission determines that vocational rehabilitation services are appropriate, the parties shall attempt to reach agreement on the identity of the registered practitioner to provide the vocational rehabilitation services in accordance with this section.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Referral Without Agreement.</text> <paragraph num="(1)"> <text>If the parties agree that vocational rehabilitation services are appropriate, or the Commission has determined that services are appropriate, but the parties cannot agree on a practitioner, each party has 5 business days from the date the parties were unable to reach agreement to:</text> <paragraph num="(a)"> <text>Notify the Commission of the dispute; and</text> </paragraph> <paragraph num="(b)"> <text>Identify three registered practitioners and the enrolled provider for whom the practitioner works, if applicable, for consideration.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Notice of the dispute and identification of the three preferred practitioners and corresponding providers shall be made electronically on a form prescribed by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Within 5 days of filing the notice of dispute and identification of three preferred practitioners and corresponding providers, each party shall strike two of the practitioners/providers from the opposing party's list and submit those strikes, by close of business, to the opposing party and to the Director by hand-delivery or facsimile.</text> </paragraph> <paragraph num="(4)"> <text>The Commission shall select one of the two remaining preferred practitioners and corresponding providers and inform the parties of this selection. All parties are bound by this selection.</text> </paragraph> <paragraph num="(5)"> <text>If a party fails to submit three registered practitioners and corresponding providers or to submit two strikes, the Commission shall select a practitioner/provider from the opposing party's list.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Assessment and Reporting."> <paragraph num="A."> <text>Comprehensive Vocational Assessment.</text> <paragraph num="(1)"> <text>As soon as practicable, a practitioner shall meet with the disabled covered employee and conduct a comprehensive vocational assessment in compliance with Labor and Employment Article, §9-670(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A nurse case manager providing telephonic medical case management may conduct an initial assessment by telephone.</text> </paragraph> <paragraph num="(3)"> <text>A comprehensive vocational assessment may include evaluation of the disabled covered employee's:</text> <paragraph num="(a)"> <text>Age;</text> </paragraph> <paragraph num="(b)"> <text>Education, including information about education level, courses or transcripts, licenses, and certifications or registrations obtained by the disabled covered employee in the past;</text> </paragraph> <paragraph num="(c)"> <text>Complete work history, addressing any gaps in employment;</text> </paragraph> <paragraph num="(d)"> <text>Transferable skills and experience, whether obtained from prior employment, prior courses and training, prior vocational rehabilitation services or plans, or non-work related activities such as hobbies and/or volunteer experience;</text> </paragraph> <paragraph num="(e)"> <text>Current physical and mental conditions caused by the injury or occupational disease, and the effect of those conditions on the disabled covered employee's ability to work;</text> </paragraph> <paragraph num="(f)"> <text>Pre-existing physical and mental conditions and the effect of those conditions on the disabled covered employee's ability to work;</text> </paragraph> <paragraph num="(g)"> <text>Post-injury physical and mental conditions and the effect of those nonrelated conditions on the disabled covered employee's ability to work;</text> </paragraph> <paragraph num="(h)"> <text>Wage and employment at the time of injury;</text> </paragraph> <paragraph num="(i)"> <text>Barriers to employment, including whether the barriers can be removed and what is needed to address the barriers;</text> </paragraph> <paragraph num="(j)"> <text>Current financial status; and</text> </paragraph> <paragraph num="(k)"> <text>Family supports/psychosocial aspects.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Reports.</text> <paragraph num="(1)"> <text>A practitioner shall:</text> <paragraph num="(a)"> <text>Prepare a written report within 30 days of the comprehensive vocational assessment;</text> </paragraph> <paragraph num="(b)"> <text>Prepare periodic progress reports every 30 days showing the activity and type of vocational rehabilitation services provided; and</text> </paragraph> <paragraph num="(c)"> <text>Submit copies of all reports to the Commission, the employer/insurer, and the disabled covered employee's attorney.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A practitioner shall include the following information in a comprehensive assessment report:</text> <paragraph num="(a)"> <text>If the practitioner is unable to obtain the information set forth in §A(3) of this regulation, documentation of the practitioner's efforts to secure that information;</text> </paragraph> <paragraph num="(b)"> <text>A determination of whether the disabled covered employee is able to work and if so, in what capacity, including whether the disabled covered employee can return to work in any capacity with the former employer and whether the disabled covered employee can return to work in a new job based on transferrable skills;</text> </paragraph> <paragraph num="(c)"> <text>Recommendations for additional testing including, but not limited to, a Functional Capacity Evaluation, psychiatric evaluation, and vocational testing;</text> </paragraph> <paragraph num="(d)"> <text>If no additional testing is recommended, identification of the order of vocational services to be provided; and</text> </paragraph> <paragraph num="(e)"> <text>A job analysis, approved by the healthcare provider, for the job or jobs for which the disabled covered employee is able to work if applicable.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A practitioner shall prepare periodic progress reports that contain the following information:</text> <paragraph num="(a)"> <text>A review of the disabled covered employee's compliance with the vocational rehabilitation plan, including any issues involving attendance, grades, and progression;</text> </paragraph> <paragraph num="(b)"> <text>A list of the dates the vocational rehabilitation counselor contacted the disabled covered employee and any training site, if applicable;</text> </paragraph> <paragraph num="(c)"> <text>A description of the work-related skills the disabled covered employee has acquired and a comparison with the vocational rehabilitation plan;</text> </paragraph> <paragraph num="(d)"> <text>A summary of all actions taken in the past 30 days, including progress on previously recommended actions;</text> </paragraph> <paragraph num="(e)"> <text>Identification of any barriers preventing completion of the plan and actions taken by the practitioner to address those barriers; and</text> </paragraph> <paragraph num="(f)"> <text>A statement of whether the disabled covered employee is progressing as expected and will complete the plan by the target end date.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The parties shall provide the Rehabilitation Office with such medical information as the Rehabilitation Office may direct.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Vocational Rehabilitation Services and Plans."> <paragraph num="A."> <text>Hierarchy of Vocational Rehabilitation Services.</text> <paragraph num="(1)"> <text>In determining the appropriate vocational rehabilitation services reasonably necessary to return a disabled covered employee to suitable gainful employment, a practitioner shall consider each of the factors specified in Labor and Employment Article, §9-673(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A practitioner shall document that each factor has been considered either in the vocational rehabilitation plan or in the initial assessment report.</text> </paragraph> <paragraph num="(3)"> <text>In providing vocational rehabilitation services, a practitioner shall attempt to return a disabled covered employee to suitable gainful employment in accordance with the following order of preference:</text> <paragraph num="(a)"> <text>Returning the disabled covered employee to the same job with the same employer;</text> </paragraph> <paragraph num="(b)"> <text>Modifying the same job with the same employer;</text> </paragraph> <paragraph num="(c)"> <text>Finding a new job with the same employer;</text> </paragraph> <paragraph num="(d)"> <text>Finding a job with a new employer;</text> </paragraph> <paragraph num="(e)"> <text>On the job training;</text> </paragraph> <paragraph num="(f)"> <text>Formally retraining the disabled covered employee for a period of time designed to lead to suitable gainful employment; and</text> </paragraph> <paragraph num="(g)"> <text>Self-employment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Vocational Rehabilitation Plan—Components.</text> <paragraph num="(1)"> <text>Vocational rehabilitation plans shall follow the hierarchy of services set forth in §A of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If a disabled covered employee is unable to return to suitable gainful employment without the provision of vocational rehabilitation services, a practitioner shall prepare a proposed vocational rehabilitation plan.</text> </paragraph> <paragraph num="(3)"> <text>A practitioner shall prepare a proposed rehabilitation plan on the vocational rehabilitation plan form prescribed by the Commission and shall complete the form in accordance with the instructions provided.</text> </paragraph> <paragraph num="(4)"> <text>A practitioner shall document in the proposed rehabilitation plan that each level of the hierarchy of services set forth in §A of this regulation has been considered during plan development.</text> </paragraph> <paragraph num="(5)"> <text>If the vocational rehabilitation plan includes a job placement plan, the practitioner shall include the following items in the vocational rehabilitation plan:</text> <paragraph num="(a)"> <text>The specific vocational goals;</text> </paragraph> <paragraph num="(b)"> <text>The specific types of services to be provided;</text> </paragraph> <paragraph num="(c)"> <text>Any viable job leads;</text> </paragraph> <paragraph num="(d)"> <text>A specific timeline including starting and completion dates; and</text> </paragraph> <paragraph num="(e)"> <text>Any estimated costs necessary to meet the specific vocational goals.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Retraining Plan.</text> <paragraph num="(a)"> <text>If the vocational rehabilitation plan includes a formal retraining plan, the practitioner shall include the following items in the vocational rehabilitation plan:</text> <paragraph num="(i)"> <text>The specific vocational retraining goal;</text> </paragraph> <paragraph num="(ii)"> <text>The estimated costs necessary to meet the specific goal;</text> </paragraph> <paragraph num="(iii)"> <text>Information about any formal course of study in the retraining plan including the name of the school, titles of classes, course length in weeks, attendance including beginning and ending dates, an itemized cost of tuition, books, and other necessary school charges; and</text> </paragraph> <paragraph num="(iv)"> <text>Any other required costs.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The practitioner shall attach to the retraining plan the following items:</text> <paragraph num="(i)"> <text>A copy of the course syllabus;</text> </paragraph> <paragraph num="(ii)"> <text>The physical requirements of the work for which the retraining will prepare the disabled covered employee;</text> </paragraph> <paragraph num="(iii)"> <text>Medical documentation demonstrating that the proposed training and field of work are within the disabled covered employee's physical restrictions;</text> </paragraph> <paragraph num="(iv)"> <text>Reports of all vocational testing and evaluations; and</text> </paragraph> <paragraph num="(v)"> <text>A recent labor market survey of the field for which the training is proposed.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>In the proposed retraining plan, the practitioner shall explain why retraining is recommended, including a discussion of the other options considered and the likelihood that the proposed retraining plan will result in the employee's return to suitable gainful employment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Vocational Rehabilitation Plan—Approval.</text> <paragraph num="(1)"> <text>The practitioner shall send copies of the proposed vocational rehabilitation plan to all parties.</text> </paragraph> <paragraph num="(2)"> <text>Within 15 days after receipt of a proposed rehabilitation plan, a party may sign the plan or submit the reason for disagreement, in writing, to all parties.</text> </paragraph> <paragraph num="(3)"> <text>Lack of response from a party is interpreted to mean that the party consents to the plan.</text> </paragraph> <paragraph num="(4)"> <text>If the parties agree to the proposed vocational rehabilitation plan, the parties shall submit the plan to the Commission for approval.</text> </paragraph> <paragraph num="(5)"> <text>The Commission may accept or reject the proposed plan, in whole or in part, and shall pass an order to that effect.</text> </paragraph> <paragraph num="(6)"> <text>The parties shall attempt to resolve any disagreement concerning the recommendations contained in the proposed vocational rehabilitation plan.</text> </paragraph> <paragraph num="(7)"> <text>If the parties are unable to reach agreement concerning the recommendations, the dispute shall be resolved in accordance with Regulation .12 of this chapter.</text> </paragraph> <paragraph num="(8)"> <text>If a hearing is necessary to resolve the dispute, the practitioner shall appear at the hearing to present the practitioner's recommendations.</text> </paragraph> <paragraph num="(9)"> <text>Expiration of Vocational Rehabilitation Plan.</text> <paragraph num="(a)"> <text>Fifteen (15) days prior to the expiration date of the Vocational Rehabilitation Plan, the practitioner shall contact all parties and make recommendations to:</text> <paragraph num="(i)"> <text>Discontinue services;</text> </paragraph> <paragraph num="(ii)"> <text>Extend services; or</text> </paragraph> <paragraph num="(iii)"> <text>Develop a new plan in accordance with §A of this regulation.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If the parties are unable to reach agreement concerning the practitioner's recommendations, the dispute shall be resolved in accordance with Regulation .12 of this chapter.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Disputes, Noncompliance and Termination."> <paragraph num="A."> <text>Disputes.</text> <paragraph num="(1)"> <text>If a dispute or issue arises regarding vocational rehabilitation services, the parties shall file electronically a vocational rehabilitation dispute form, as prescribed by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of the vocational rehabilitation dispute form, the Duty Commissioner shall contact the parties by telephone.</text> </paragraph> <paragraph num="(3)"> <text>If the Duty Commissioner is unable to resolve the dispute, a hearing will be scheduled within 5 business days.</text> </paragraph> <paragraph num="(4)"> <text>The Commission may award reasonable attorney fees in disputes arising out of vocational rehabilitation issues when deemed necessary given the particular facts of a claim.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Noncompliance with Vocational Rehabilitation Plan. If a disabled covered employee is not meeting the employee's responsibilities or is not cooperating with vocational rehabilitation services, a practitioner shall:</text> <paragraph num="(1)"> <text>Document the factual basis for that determination and the practitioner's efforts to promote the disabled covered employee's participation; and</text> </paragraph> <paragraph num="(2)"> <text>Promptly notify all parties in writing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Termination of Vocational Rehabilitation Services.</text> <paragraph num="(1)"> <text>Whenever a practitioner closes a case, the practitioner shall document the reasons for terminating vocational rehabilitation services.</text> </paragraph> <paragraph num="(2)"> <text>Upon termination of vocational rehabilitation services or case closure, a practitioner shall notify all parties within 5 working days of the:</text> <paragraph num="(a)"> <text>Reason for the termination or closure; and</text> </paragraph> <paragraph num="(b)"> <text>Current employment status of the disabled covered employee.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A practitioner shall send a closure report to the Commission within 10 business days after notice of termination on the form prescribed by the Commission.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-6A-04, and 9-6A-07, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 28, 1999 (26:13 Md. R. 1020)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective November 17, 2008 (35:23 Md. R. 2017)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B, F amended effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 adopted effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 adopted effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 adopted effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 adopted effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 adopted effective April 19, 2010 (37:8 Md. R. 619)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.05, Vocational Rehabilitation Practitioners, to COMAR 14.09.07, Vocational Rehabilitation Practitioners, effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B, E amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07D amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07E amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="08" heading="Guide of Medical and Surgical Fees"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Ambulatory surgical center (ASC)” means any center, service, office facility, or other entity that:</text> <paragraph num="(a)"> <text>Operates primarily for the purpose of providing surgical services to patients requiring a period of postoperative observation but not requiring overnight hospitalization; and</text> </paragraph> <paragraph num="(b)"> <text>Seeks reimbursement from payors as an ambulatory surgery center.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Authorized provider” means:</text> <paragraph num="(a)"> <text>A licensed physician's assistant (P.A.), providing services on or after March 24, 2008;</text> </paragraph> <paragraph num="(b)"> <text>A licensed acupuncturist;</text> </paragraph> <paragraph num="(c)"> <text>A medical doctor (M.D.);</text> </paragraph> <paragraph num="(d)"> <text>A doctor of osteopathy (D.O.);</text> </paragraph> <paragraph num="(e)"> <text>A doctor of chiropractic (D.C.), for services provided within the scope of Health Occupations Article, Title 3, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(f)"> <text>Podiatrist (D.P.M.);</text> </paragraph> <paragraph num="(g)"> <text>An optometrist (O.D.);</text> </paragraph> <paragraph num="(h)"> <text>A certified registered nurse anesthetist (C.R.N.A.);</text> </paragraph> <paragraph num="(i)"> <text>An occupational therapist (O.T.);</text> </paragraph> <paragraph num="(j)"> <text>A pharmacist (R. Ph.);</text> </paragraph> <paragraph num="(k)"> <text>A licensed physical therapist (P.T.);</text> </paragraph> <paragraph num="(l)"> <text>A psychologist (Ph.D.);</text> </paragraph> <paragraph num="(m)"> <text>A licensed clinical social worker (L.C.S.W.);</text> </paragraph> <paragraph num="(n)"> <text>A licensed audiologist;</text> </paragraph> <paragraph num="(o)"> <text>A licensed speech-language pathologist;</text> </paragraph> <paragraph num="(p)"> <text>A dentist (D.D.S./D.M.D.); and</text> </paragraph> <paragraph num="(q)"> <text>Any other health care provider as defined under Health-General Article, §4-301(h)(1)(i), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Base Unit/Basic Value” means the value assigned by CMS to each anesthesia procedure code based on the difficulty of the anesthesia service and is used to determine a portion of the reimbursement amount of the anesthesia procedure.</text> </paragraph> <paragraph num="(4)"> <text>“CMS” means the Centers for Medicare and Medicaid Services, the federal agency that administers the nation's Medicare program and partners with the states to administer the Medicaid program.</text> </paragraph> <paragraph num="(5)"> <text>“CMS-1500” means the standard claim form, maintained by the National Uniform Claim Committee (NUCC), used by a non-institutional provider or supplier to bill Medicare carriers, Medicare administrative contractors, and Medicaid State agencies.</text> </paragraph> <paragraph num="(6)"> <text>“CPT” means the Physician's Current Procedural Terminology, copyrighted and maintained by the American Medical Association.</text> </paragraph> <paragraph num="(7)"> <text>“CPT code” means the five digit numerical code obtained from the CPT in effect when a medical service or treatment is provided.</text> </paragraph> <paragraph num="(8)"> <text>“CPT modifier” means the numerical code used to indicate that a service or procedure was altered in some way from the stated CPT description.</text> </paragraph> <paragraph num="(9)"> <text>“Geographic Price Cost Index (GPCI)” means the resource cost difference of providing a service, by geographic region, reflected in the relative work (work), practice expense (PE), and malpractice costs (MP) of the service.</text> </paragraph> <paragraph num="(10)"> <text>“Healthcare Common Procedure Coding System (HCPCS)” means one of two coding systems used by CMS: level I, consisting of CPT codes, and level II, used primarily to identify products, supplies, and services not included in the CPT codes, such as ambulance services and durable medical equipment, prosthetics, orthotics, and supplies.</text> </paragraph> <paragraph num="(11)"> <text>“Maryland specific conversion factor (MSCF)” means a fixed dollar amount used as a multiplier in calculating the MRA for medical services and treatment, orthopedic and neurological surgical procedures, and anesthesiology services.</text> </paragraph> <paragraph num="(12)"> <text>“Maximum reimbursement allowable (MRA)” means the amount payable to an authorized provider, unless subject to a private agreement to the contrary, calculated pursuant to this chapter for the provision of medical services and treatment rendered to an individual whose injury or disease falls within the scope of Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Medicare economic index (MEI)” means a measure of the inflation faced by physicians with respect to their practice costs and wage levels as calculated by CMS.</text> </paragraph> <paragraph num="(14)"> <text>“Medicare Physician Fee Schedule” means the Medicare database, based on the RBRVS, from which the Medicare reimbursement rate is obtained.</text> </paragraph> <paragraph num="(15)"> <text>“Medicare reimbursement rate (MRR)” means the rate at which Medicare reimburses a services provider based on certain inputs including the CPT/HCPCS code, jurisdiction, year, any applicable CPT modifiers, any federal budget neutrality adjuster, and any Medicare conversion factor.</text> </paragraph> <paragraph num="(16)"> <text>“Resource based relative value scale (RBRVS)” means the system by which medical providers are reimbursed based on the resource costs needed to provide a given service. Under the RBRVS, CMS assigns each medical procedure a relative value quantifying the relative work (work), practice expense (PE), and malpractice costs (MP) for each service.</text> </paragraph> <paragraph num="(17)"> <text>“RBRVS relative value unit (RVU)” means the uniform value assigned by CMS to each medical procedure and service identified by CPT/HCPCS code quantifying the work (work), practice expense (PE), and malpractice costs (MP) for each service.</text> </paragraph> <paragraph num="(18)"> <text>“Time Unit” means a measure of each 15-minute interval, or fraction thereof, during which anesthesiology services are performed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Incorporation by Reference."> <paragraph num="A."> <text>The “Official Maryland Workers’ Compensation Medical Fee Guide” (1995) is incorporated by reference.</text> </paragraph> <paragraph num="B."> <text>Health Services Cost Review Commission. In accordance with Health-General Article, §19-211, Annotated Code of Maryland, in the case of a discrepancy between a rate for a hospital service set by the Health Services Cost Review Commission and that set by the Workers’ Compensation Commission, the rate set by the Health Services Cost Review Commission shall prevail.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Calculation of the Maximum Reimbursement Allowable."> <paragraph num="A."> <text>For medical services and treatment provided before August 31, 2001, the MRA shall be the fees set forth in the Official Maryland Workers' Compensation Medical Fee Guide (1995). For anesthesiology services, the MRA is calculated by adding the Time Units and Base Units/Basic Value and multiplying that sum by a conversion factor: MRA = (Time Units + Base Units) × Conversion Factor.</text> </paragraph> <paragraph num="B."> <text>For medical services and treatment provided between August 31, 2001, and August 31, 2004, the MRA shall be calculated by increasing the fees set forth in the Official Maryland Workers' Compensation Medical Fee Guide (1995) by 4 percent.</text> </paragraph> <paragraph num="C."> <text>For medical services and treatment provided between September 1, 2004, and January 31, 2006, the MRA shall be calculated by multiplying the MRR by a percentage multiplier as follows:</text> <paragraph num="(1)"> <text>The MRR is obtained from the Medicare Physician Fee Schedule by utilizing 2004 for the year, Maryland for the state, Baltimore and Surrounding Counties for the locality, the applicable CPT code and any CPT modifier;</text> </paragraph> <paragraph num="(2)"> <text>The MRA is calculated by multiplying the MRR by 109 percent; and</text> </paragraph> <paragraph num="(3)"> <text>For anesthesiology services, the MRA is calculated by adding the Time Units and Base Units/Basic Value, multiplying that sum by the CMS 2004 conversion factor multiplied by 109 percent: MRA = (Time Units + Base Units) × CMS 2004 Conversion Factor × 109 percent.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For medical services and treatment provided between February 1, 2006, and March 24, 2008, the MRA shall be calculated by multiplying the MRR by a percentage multiplier as follows:</text> <paragraph num="(1)"> <text>The MRR is obtained from the Medicare Physician Fee Schedule by utilizing 2004 for the year, Maryland for the state, Baltimore and Surrounding Counties for the locality, the applicable CPT code and any CPT modifier; and</text> </paragraph> <paragraph num="(2)"> <text>The MRA is calculated by multiplying the MRR by the specified percentage multiplier:</text> <paragraph num="(a)"> <text>For anesthesiology services, the MRA is calculated by adding the Time Units and Base Units/Basic Value, multiplying that sum by the CMS 2004 conversion factor multiplied by 109 percent;</text> </paragraph> <paragraph num="(b)"> <text>For orthopedic and neurological surgical procedures, excluding minor procedures, the MRA is calculated by multiplying the MRR by 144 percent; and</text> </paragraph> <paragraph num="(c)"> <text>Except as otherwise provided, the MRA for all other medical services and treatment is calculated by multiplying the MRR by 109 percent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>After March 24, 2008.</text> <paragraph num="(1)"> <text>For medical services and treatment provided after March 24, 2008, the Commission shall utilize the current calendar year CMS Resource Based Relative Value Scale (RBRVS), exclusive of any Federal Budget Neutrality Adjustment Factor or CMS conversion factor, as the basis for calculating the MRA.</text> </paragraph> <paragraph num="(2)"> <text>The non-facility MRA shall be calculated by multiplying each RBRVS relative value unit (RVU) by each corresponding GPCI, adding those sums, and then multiplying that total by the Maryland specific conversion factor (MSCF) as follows: Non-facility MRA = ((Work RVU × Work GPCI) + (Transitioned Non-Facility PE RVU × PE GPCI) + (MP RVU × MP GPCI)) × MSCF.</text> </paragraph> <paragraph num="(3)"> <text>The facility MRA shall be calculated by multiplying each RBRVS RVU by each corresponding GPCI, adding those sums, and then multiplying that total by the MSCF as follows: Facility MRA = ((Work RVU × Work GPCI) + (Transitioned Facility PE RVU × PE GPCI) + (MP RVU × MP GPCI)) × MSCF.</text> </paragraph> <paragraph num="(4)"> <text>For anesthesiology services, the MRA shall be calculated by adding the Time Units and Base Units and multiplying that sum by the MSCF: MRA = (Time Units + Base Units) × MSCF.</text> </paragraph> <paragraph num="(5)"> <text>In calculating the MRA, the following MSCFs apply:</text> <paragraph num="(a)"> <text>For anesthesiology services, the MSCF is $19.39;</text> </paragraph> <paragraph num="(b)"> <text>For orthopedic and neurological surgical procedures, MSCF is $53.77; and</text> </paragraph> <paragraph num="(c)"> <text>For all other medical services and treatment, except as otherwise provided, the MSCF is $40.70.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Ambulatory Surgical Centers.</text> <paragraph num="(1)"> <text>For medical services and treatment provided at an ASC between September 1, 2004, and January 31, 2006, the MRA is calculated by multiplying the CMS 2004 ASC group payment rate by 109 percent.</text> </paragraph> <paragraph num="(2)"> <text>For medical services and treatment provided at an ASC between February 1, 2006, and March 24, 2008, the MRA is calculated by multiplying the 2004 CMS ASC group payment rate by 125 percent.</text> </paragraph> <paragraph num="(3)"> <text>For medical services and treatment provided at an ASC on, or after, March 24, 2008, the MRA is calculated by multiplying the current calendar year ASC MRR by 125 percent.</text> </paragraph> </paragraph> <paragraph num="G."> <text>MSCF Annual Adjustment.</text> <paragraph num="(1)"> <text>Beginning January 1, 2009, an adjustment shall be made to the prior year's MSCFs and percentage multiplier (for ASCs).</text> </paragraph> <paragraph num="(2)"> <text>The MSCFs for the following year shall be calculated by multiplying the MSCFs in effect on November 1 of the current year by the percentage change in the first quarter MEI of the current year, as published on November 1 of the current year, and adding that amount to the current year's MSCFs.</text> </paragraph> <paragraph num="(3)"> <text>The percentage multiplier for the following year shall be calculated by multiplying the percentage multiplier in effect on November 1 of the current year by the percentage change in the first quarter MEI of the current year, as published on November 1 of the current year, and adding that amount to the current year's percentage multiplier.</text> </paragraph> <paragraph num="(4)"> <text>The resulting figures shall be utilized as the new MSCF and percentage multiplier for the following year for the purpose of calculating the MRA under §§E and F of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>The Commission shall post the new MSCFs and percentage multiplier on its website by December 1.</text> </paragraph> <paragraph num="(6)"> <text>The resulting new MSCFs and percentage multiplier shall be effective January 1 of the following year.</text> </paragraph> <paragraph num="(7)"> <text>The Commission shall review the annual adjustment process every 5 years to assure that reimbursement rates are neither inadequate nor excessive.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="MRA or Fee Not Established."> <paragraph num="A."> <text>The Commission has not established a medical fee schedule for dental services, durable medical equipment, and pharmaceuticals.</text> </paragraph> <paragraph num="B."> <text>For products and services for which the Commission has not established an MRA or medical fee schedule, including dental services, durable medical equipment, and pharmaceuticals, the insurance carrier shall assign a relative value to the product or service.</text> </paragraph> <paragraph num="C."> <text>An insurance carrier may base the assigned value on nationally recognized and published relative value studies, or on the values assigned for services involving similar work and resources.</text> </paragraph> <paragraph num="D."> <text>Upon application of either party, the amount of reimbursement is subject to review by the Commission under the procedures set forth in Regulation .06 of this chapter.</text> </paragraph> <paragraph num="E."> <text>Reimbursement.</text> <paragraph num="(1)"> <text>Except as provided in §E(2) of this regulation, reimbursement shall be the lesser of:</text> <paragraph num="(a)"> <text>The MRA amount as established by this regulation; or</text> </paragraph> <paragraph num="(b)"> <text>The authorized provider's usual and customary charge.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If, in the opinion of a health care provider it is medically necessary to exceed the MRA, the authorized provider shall submit substantiating documentation to the payor with the Form CMS-1500.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For relevant CPT/HCPCS level I codes that are not valued by CMS, the Commission shall post MRAs for those codes on its website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Guidelines for Using Values and Codes."> <paragraph num="A."> <text>The Maryland Workers' Compensation Act, implementing regulations, policies, and guidelines shall take precedence over any conflicting provision adopted or utilized by CMS in administering the CMS program.</text> </paragraph> <paragraph num="B."> <text>For coding, billing, reporting, and reimbursement of medical treatment and services, authorized providers shall apply the CPT/HCPCS code and CPT modifier in effect on the date the treatment or service was provided.</text> </paragraph> <paragraph num="C."> <text>The Commission shall post instructions for obtaining RVU and GPCI values on its website.</text> </paragraph> <paragraph num="D."> <text>RVU and GPCI values shall be obtained utilizing the current year, the locality code for Baltimore and Surrounding Counties (0090101), the applicable CPT/HCPCS code and any CPT modifier.</text> </paragraph> <paragraph num="E."> <text>The Commission shall post a link to the Medicare Physician Fee Schedule on its website.</text> </paragraph> <paragraph num="F."> <text>The Commission shall post a link to the ASC payment rate instructions on its website.</text> </paragraph> <paragraph num="G."> <text>Notwithstanding CMS payment policies, chiropractors may be reimbursed for services provided within the scope of their practice act.</text> </paragraph> <paragraph num="H."> <text>For procedures performed or services rendered after September 1, 2004, a multiple procedure discount is not permitted for physical medicine and rehabilitation services (CPT codes 97010—97799).</text> </paragraph> <paragraph num="I."> <text>After September 1, 2004, only one code per session will be reimbursed for CPT codes 97012—97039.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Reimbursement Procedures."> <paragraph num="A."> <text>To obtain reimbursement under this chapter, an authorized provider shall:</text> <paragraph num="(1)"> <text>Complete Form CMS-1500 in accordance with the written instructions posted on the Commission's website; and</text> </paragraph> <paragraph num="(2)"> <text>Within the time provided in §H of this regulation, submit to the employer or insurer the completed Form CMS-1500, which shall include:</text> <paragraph num="(a)"> <text>An itemized list of each service;</text> </paragraph> <paragraph num="(b)"> <text>The diagnosis relative to each service;</text> </paragraph> <paragraph num="(c)"> <text>The medical records related to the service being billed;</text> </paragraph> <paragraph num="(d)"> <text>The appropriate CPT/HCPCS code with CPT modifiers, if any, for each service;</text> </paragraph> <paragraph num="(e)"> <text>The date of each service;</text> </paragraph> <paragraph num="(f)"> <text>The specific fee charged for each service;</text> </paragraph> <paragraph num="(g)"> <text>The tax ID number of the provider;</text> </paragraph> <paragraph num="(h)"> <text>The professional license number of the provider; and</text> </paragraph> <paragraph num="(i)"> <text>The National Provider Identifier (NPI) of the provider.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Modifiers.</text> <paragraph num="(1)"> <text>Modifying circumstances may be identified by use of the relevant CPT modifier in effect when the medical service or treatment was provided.</text> </paragraph> <paragraph num="(2)"> <text>The identification of modifying circumstances does not imply or guarantee that a provider will receive reimbursement as billed.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Time for Reimbursement. Reimbursement by the employer or insurer shall be made within 45 days of the date on which the Form CMS-1500 was received by the employer or insurer, unless the claim for treatment or services is denied in full or in part under §G of this regulation.</text> </paragraph> <paragraph num="D."> <text>Untimely Reimbursement. If an employer or insurer does not pay the fee calculated under this chapter or file a notice of denial of reimbursement, within 45 days of receipt of the CMS-1500, the Commission may assess a fine against the employer or its insurer, and award interest to the provider in accordance with Labor and Employment Article, §§9-663 and 9-664, Annotated Code of Maryland, and COMAR 14.09.06.02.</text> </paragraph> <paragraph num="E."> <text>Denial of Reimbursement.</text> <paragraph num="(1)"> <text>If an employer or insurer denies, in full or in part, a claim for treatment or services, the employer or insurer shall:</text> <paragraph num="(a)"> <text>Notify the provider of the reasons for the denial in writing; and</text> </paragraph> <paragraph num="(b)"> <text>Mail the notice of denial of reimbursement to the provider within 45 days of the date on which Form CMS-1500 was received.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An employer or insurer who fails to file a notice of denial of reimbursement within 45 days of receipt of the CMS-1500 waives the right to deny reimbursement, and is subject to the provisions of Labor and Employment Article, §§9-663 and 9-664, Annotated Code of Maryland, and COMAR 14.09.06.02</text> </paragraph> </paragraph> <paragraph num="F."> <text>Objection to Denial of Reimbursement.</text> <paragraph num="(1)"> <text>A provider may contest a partial or total denial of reimbursement, by submitting to the Commission the following items:</text> <paragraph num="(a)"> <text>A “Claim for Medical Services” on a form provided by the Commission;</text> </paragraph> <paragraph num="(b)"> <text>The Form CMS-1500 that relates to the unpaid claims; and</text> </paragraph> <paragraph num="(c)"> <text>All correspondence relating to the unpaid claim.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Commission shall review the items submitted, without hearing, and issue its decision in an Order Nisi.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Hearing on Objection to Commission's Order Nisi.</text> <paragraph num="(1)"> <text>The provider, employer, or insurer may contest the Commission's Order Nisi by filing with the Commission a controversion of medical claim, on a form provided by the Commission, within 30 days of the date of the Order Nisi.</text> </paragraph> <paragraph num="(2)"> <text>The Commission shall schedule a hearing on the matter and render a decision.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Time for Submitting Form CMS-1500.</text> <paragraph num="(1)"> <text>A provider who provides medical service or treatment to a covered employee and seeks reimbursement under this chapter for providing medical service or treatment shall submit to the employer or the employer’s insurer a bill in the form of a completed Form CMS-1500 within 12 months from the later of the date:</text> <paragraph num="(a)"> <text>Medical service or treatment was provided to a covered employee;</text> </paragraph> <paragraph num="(b)"> <text>The claim for compensation was accepted by the employer or the employer’s insurer; or</text> </paragraph> <paragraph num="(c)"> <text>The claim for compensation was determined by the Commission to be compensable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The employer or the employer’s insurer may not be required to pay a bill submitted after the time period required under §H(1) of this regulation unless:</text> <paragraph num="(a)"> <text>The provider files an application for payment with the Commission within 3 years from the later of the date:</text> <paragraph num="(i)"> <text>Medical service or treatment was provided to the covered employee;</text> </paragraph> <paragraph num="(ii)"> <text>The claim for compensation was accepted by the employer or the employer’s insurer; or</text> </paragraph> <paragraph num="(iii)"> <text>The claim for compensation was determined by the Commission to be compensable; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Commission excuses the untimely submission for good cause.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Medical Records."> <paragraph num="A."> <text>Medical records are the basis for determining whether a particular treatment or service is medically necessary and, therefore, reimbursable.</text> </paragraph> <paragraph num="B."> <text>Each health care provider is responsible for creating and maintaining legible medical records documenting the employee's course of treatment.</text> </paragraph> <paragraph num="C."> <text>Employee medical records shall include the:</text> <paragraph num="(1)"> <text>History of the patient;</text> </paragraph> <paragraph num="(2)"> <text>Results of a physical examination performed in conformity with the standard of practice of similar health care providers, with similar training, in the same or similar communities;</text> </paragraph> <paragraph num="(3)"> <text>Progress, clinical, or office notes that reflect:</text> <paragraph num="(a)"> <text>Subjective patient complaints;</text> </paragraph> <paragraph num="(b)"> <text>Objective findings of the provider;</text> </paragraph> <paragraph num="(c)"> <text>Assessment of the presenting problem;</text> </paragraph> <paragraph num="(d)"> <text>Any plan or plans of care or recommendations for treatment; and</text> </paragraph> <paragraph num="(e)"> <text>Updated assessments of patient's medical status and response to therapy;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Copies of lab, x-ray, or other diagnostic tests, if any, that reflect the current progress of the patient and response to therapy; and</text> </paragraph> <paragraph num="(5)"> <text>Hospital inpatient and outpatient records, if any, including:</text> <paragraph num="(a)"> <text>Operation reports;</text> </paragraph> <paragraph num="(b)"> <text>Test results;</text> </paragraph> <paragraph num="(c)"> <text>Consultation reports;</text> </paragraph> <paragraph num="(d)"> <text>Discharge summaries; and</text> </paragraph> <paragraph num="(e)"> <text>Other dictated reports.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Writing, Maintaining, and Submitting Medical Records.</text> <paragraph num="(1)"> <text>Employee medical records shall be submitted to the employer or insurer, or, upon request, to the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The cost of maintaining medical records is included in the treatment and service fees established by the Official Maryland Workers' Compensation Medical Fee Guide (1995) and this chapter. A provider may not submit a separate fee for writing or maintaining medical records.</text> </paragraph> <paragraph num="(3)"> <text>Additional Medical Report Fees.</text> <paragraph num="(a)"> <text>Upon the request of any party or the Commission, a provider shall promptly write and submit the requested additional medical reports.</text> </paragraph> <paragraph num="(b)"> <text>When additional medical reports are requested by the Commission, a provider may not charge a fee for writing or preparing the additional medical reports.</text> </paragraph> <paragraph num="(c)"> <text>When additional medical reports are requested by any party, the provider may seek reimbursement under Regulation .06 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Copies of Medical Records and Additional Medical Reports.</text> <paragraph num="(a)"> <text>Requests for Copies of Medical Records.</text> <paragraph num="(i)"> <text>A party requesting medical records shall ensure that the request is reasonable and specific.</text> </paragraph> <paragraph num="(ii)"> <text>Health care providers shall respond promptly to requests for medical records and additional medical reports.</text> </paragraph> <paragraph num="(iii)"> <text>Health care providers may request clarification regarding which medical records and medical reports are the subject of the request.</text> </paragraph> <paragraph num="(iv)"> <text>Copies of medical records that were not specifically requested by the payor, are not subject to reimbursement under this chapter.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Fees for Copying.</text> <paragraph num="(i)"> <text>When requested by the injured employee, injured employee's attorney, the employer, or insurer, copies of medical records and additional medical reports will be reimbursed pursuant to Health-General Article, §4-304(c), Annotated Code of Maryland, and other applicable law.</text> </paragraph> <paragraph num="(ii)"> <text>Medical record requests by the Commission will be furnished by the provider without charge.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Deposition Witness Fee."> <paragraph num="A."> <text>After March 24, 2008, the Commission no longer regulates the reimbursement of deposition fees through a medical fee schedule.</text> </paragraph> <paragraph num="B."> <text>For witness depositions for which a bill has been submitted by the authorized provider before March 24, 2008, the authorized provider shall be allowed a witness fee if the provider submits a bill for the fee using the CPT code for the service.</text> </paragraph> <paragraph num="C."> <text>Reimbursement for a deposition is limited to the amount published in the “Official Maryland Workers' Compensation Medical Fee Guide (1995)” for the appropriate CPT code.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-663, and 9-731, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision effective August 1, 1987 (14:17 Md. R. 1869); emergency status expired July 31, 1988</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted effective August 1, 1988 (15:14 Md. R. 1655)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective August 1, 1991 (18:13 Md. R. 1484)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed and new Regulation .01 adopted effective July 1, 1996 (23:12 Md. R. 872)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 1, 2004 (31:13 Md. R. 995)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective February 1, 2006 (33:5 Md. R. 517); amended permanently effective June 5, 2006 (33:11 Md. R. 951)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted as an emergency provision effective August 31, 2001 (28:19 Md. R. 1681); adopted permanently effective October 29, 2001 (28:21 Md. R. 1858)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 repealed and new Regulations .01—.08 adopted effective March 24, 2008 (35:6 Md. R. 699)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03F amended as an emergency provision effective April 4, 2008, (35:9 Md. R. 895); amended permanently effective September 8, 2008 (35:18 Md. R. 1501)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03G amended effective March 5, 2012 (39:4 Md. R. 338)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.03, Guide of Medical and Surgical Fees, to COMAR 14.09.08, Guide of Medical and Surgical Fees, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective February 24, 2020 (47:4 Md. R. 263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective February 24, 2020 (47:4 Md. R. 263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective March 12, 2018 (45:5 Md. R. 287)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06H adopted effective March 12, 2018 (45:5 Md. R. 287)</annotation> </annotations> </chapter> <chapter num="09" heading="Guide for Evaluation of Permanent Disability"> <regulation prefix="Regulation" num=".01" heading="Incorporation by Reference."> <text>Guides to the Evaluation of Permanent Impairment (American Medical Association, Fourth Edition, 1993) is incorporated by reference.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Filing Issues."> <paragraph num="A."> <text>A claimant alleging permanent disability shall file with the Commission an issues form that:</text> <paragraph num="(1)"> <text>Explicitly claims permanent partial or permanent total disability;</text> </paragraph> <paragraph num="(2)"> <text>Identifies the body parts at issue; and</text> </paragraph> <paragraph num="(3)"> <text>Identifies any alleged psychiatric disability.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prior to filing an issues form raising permanent disability, the party filing the issue shall have obtained a written evaluation of permanent impairment prepared by a physician, psychologist, or psychiatrist in accordance with Regulation .03 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Evaluation of Permanent Impairment."> <paragraph num="A."> <text>Written Evaluation Required. As evidence of permanent impairment, a party shall submit:</text> <paragraph num="(1)"> <text>A written evaluation of permanent impairment prepared by a physician; or</text> </paragraph> <paragraph num="(2)"> <text>In claims where the issue concerns psychiatric impairment, a written evaluation of permanent psychiatric impairment prepared by a licensed psychologist or psychiatrist.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When preparing an evaluation of permanent impairment, a physician, psychologist or psychiatrist shall:</text> <paragraph num="(1)"> <text>Generally conform the evaluation with the format set forth in §2.2 (“Reports”) of the American Medical Association's “Guides to the Evaluation of Permanent Impairment”;</text> </paragraph> <paragraph num="(2)"> <text>Use the numerical ratings for the impairment set forth in the American Medical Association's “Guides to the Evaluation of Permanent Impairment”, provided that a physician, psychologist or psychiatrist is not required to use the inclinometer evaluation technique specified in §3.3, but instead may use the goniometer technique specified in the “Addendum to Chapter 3”;</text> </paragraph> <paragraph num="(3)"> <text>Include the items listed under the heading “Comparison of the results of analysis with the impairment criteria . . .” in §2.2 (“Reports”) of the American Medical Association's “Guides to the Evaluation of Permanent Impairment”; and</text> </paragraph> <paragraph num="(4)"> <text>Include information on the items required by Labor and Employment Article, §9-721, Annotated Code of Maryland:</text> <paragraph num="(a)"> <text>Loss of function, endurance, and range of motion; and</text> </paragraph> <paragraph num="(b)"> <text>Pain, weakness, and atrophy.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Numerical Ratings.</text> <paragraph num="(1)"> <text>A physician, psychologist or psychiatrist preparing an evaluation of permanent impairment may include numerical ratings not set forth in the American Medical Association's “Guides to the Evaluation of Permanent Impairment” for the items listed in §B(4) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>If the physician, psychologist or psychiatrist uses other numerical ratings the physician shall include in the evaluation the detailed findings that support those numerical ratings.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When reviewing an evaluation for permanent impairment, the Commission shall consider all the items listed in §B of this regulation.</text> </paragraph> <paragraph num="E."> <text>The Commission may not approve payment of a physician's, psychologist's or psychiatrist's fee for an evaluation that does not comply with this regulation.</text> </paragraph> <paragraph num="F."> <text>This regulation shall apply to all evaluations prepared on or after July 1, 1990.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Stipulation for Permanent Disability."> <paragraph num="A."> <text>A written stipulation to an award for permanent disability shall be filed using the stipulation of parties and award of compensation form and contain the following information:</text> <paragraph num="(1)"> <text>The claimant's average weekly wage;</text> </paragraph> <paragraph num="(2)"> <text>The inclusive dates of any temporary total disability;</text> </paragraph> <paragraph num="(3)"> <text>The inclusive dates and rate of any temporary partial disability;</text> </paragraph> <paragraph num="(4)"> <text>A copy of any medical evaluation relied upon;</text> </paragraph> <paragraph num="(5)"> <text>The percentage of claimant's loss of use or industrial loss of use and the benefits weeks payable;</text> </paragraph> <paragraph num="(6)"> <text>Any medical expenses claimed;</text> </paragraph> <paragraph num="(7)"> <text>Any attorney's fees sought by claimant's attorney; and</text> </paragraph> <paragraph num="(8)"> <text>The signatures of all parties if a written stipulation is submitted.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the claimant is not represented by an attorney, the stipulation shall be accompanied by the following:</text> <paragraph num="(1)"> <text>All medical information in the possession of other parties; and</text> </paragraph> <paragraph num="(2)"> <text>A statement signed by the claimant acknowledging that the claimant understands that the stipulation does not foreclose the claimant's future right to benefits under the Workers' Compensation Law, including the right to reopen and the right to continuing medical treatment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The stipulation is not binding on the Commission unless approved by the Commission.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-701, 9-721, and 9-731, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 15, 2004 (31:5 Md. R. 451)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.16, Public Information Act Requests, recodified from COMAR 14.09.09 to COMAR 14.09.16, Public Information Act Requests, effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised, Regulations .01 and.03 recodified from 14.09.04, Guide for Evaluation of a Permanent Impairment, to COMAR 14.09.09, Guide for Evaluation of a Permanent Disability, effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A, C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="10" heading="Settlements and Lump Sum Payments"> <regulation prefix="Regulation" num=".01" heading="Lump Sum Payment."> <paragraph num="A."> <text>A claimant seeking a lump sum payment shall file an application with the Commission that:</text> <paragraph num="(1)"> <text>States specifically the facts and circumstances that the claimant contends justify the lump sum payment; and</text> </paragraph> <paragraph num="(2)"> <text>Is accompanied by any documents upon which the claimant relies in support of the application.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The party who may be required to make the lump sum payment shall file with the Commission a statement showing the outstanding balance of payments due the claimant and indicating whether that party objects to the granting of the application.</text> </paragraph> <paragraph num="C."> <text>A hearing on the application shall be scheduled if:</text> <paragraph num="(1)"> <text>The employer, insurer or other payor does not consent to the lump sum, or</text> </paragraph> <paragraph num="(2)"> <text>The Commission, upon review of the application, determines a hearing is warranted.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Agreements for Final Compromise and Settlement."> <paragraph num="A."> <text>General Requirements. An agreement for final compromise and settlement of a claim that is submitted to the Commission for approval as required by Labor and Employment Article, §9-722, Annotated Code of Maryland, shall be submitted electronically and contain the following:</text> <paragraph num="(1)"> <text>The total amount of settlement proposed;</text> </paragraph> <paragraph num="(2)"> <text>An application or petition for approval of attorney’s fees, medical evaluation fees, and costs as provided in COMAR 14.09.04.02;</text> </paragraph> <paragraph num="(3)"> <text>The inclusive dates of any temporary total disability;</text> </paragraph> <paragraph num="(4)"> <text>The date on which the payments under the agreement are to begin;</text> </paragraph> <paragraph num="(5)"> <text>If any compensation was previously awarded or paid, a statement indicating whether the settlement includes, is in addition to, or is in place of all or part of that compensation;</text> </paragraph> <paragraph num="(6)"> <text>A statement indicating the rate of payment and whether all or part of the settlement is to be paid in a lump sum;</text> </paragraph> <paragraph num="(7)"> <text>The claimant's average weekly wage;</text> </paragraph> <paragraph num="(8)"> <text>The claimant's date of birth and age in years and months;</text> </paragraph> <paragraph num="(9)"> <text>The total amount of all indemnity benefits paid to claimant;</text> </paragraph> <paragraph num="(10)"> <text>The gross total of all future payments to be paid pursuant to an annuity (not present value);</text> </paragraph> <paragraph num="(11)"> <text>If the insurer makes an assignment of any of its obligations to a third party, the settlement agreement shall contain affirmative language confirming that the employer/insurer shall resume its obligation for all remaining payments in the event of default by the third party;</text> </paragraph> <paragraph num="(12)"> <text>The date of disablement by accidental injury or occupational disease; and</text> </paragraph> <paragraph num="(13)"> <text>A completed copy of the settlement worksheet form, available on the Commission website, attached to the settlement.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Future Medical Expenses.</text> <paragraph num="(1)"> <text>A settlement involving future medical expenses, including future pharmaceutical expenses, may be approved by the Commission provided that the settlement agreement:</text> <paragraph num="(a)"> <text>Contains a detailed statement explaining how the interests of Medicare have been considered in reaching the settlement; and</text> </paragraph> <paragraph num="(b)"> <text>Identifies the amount of the proposed settlement:</text> <paragraph num="(i)"> <text>Apportioned to future medical expenses; or</text> </paragraph> <paragraph num="(ii)"> <text>Set aside for future medical expenses through a formal set-aside allocation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The apportionment of the amount of the settlement associated with future medical expenses shall be supported by medical evidence such as a medical opinion or evaluation.</text> </paragraph> <paragraph num="(3)"> <text>A formal set-aside allocation shall comply with the guidelines established by Medicare for set-aside allocations.</text> </paragraph> <paragraph num="(4)"> <text>In determining whether a set-aside allocation and settlement may be reviewed and approved by the Centers for Medicare and Medicaid Services (CMS), the Commission shall apply the most current Medicare review thresholds set forth in the memoranda or regulations available on the CMS website.</text> </paragraph> <paragraph num="(5)"> <text>A settlement within the Medicare review thresholds may be approved by the Commission provided that, in addition to the requirements set forth in §B(1) of this regulation, the settlement agreement contains a statement acknowledging:</text> <paragraph num="(a)"> <text>That the settlement is within the CMS review thresholds;</text> </paragraph> <paragraph num="(b)"> <text>That the parties voluntarily have elected not to submit the settlement and formal set-aside allocation to CMS for review and approval; and</text> </paragraph> <paragraph num="(c)"> <text>That the parties are aware that CMS may refuse to pay for services related to the injury and may assert a recovery claim against any entity, including a claimant, provider, supplier, physician, attorney, or private insurer.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A settlement involving future medical expenses may not be approved if the proposed settlement contains contingency provisions from which the Commission cannot determine the amount of medical expenses, if any, subject to assessment under Labor and Employment Article, §§9-806(a)(2) and 9-1007(a)(2), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Special Requirements.</text> <paragraph num="(1)"> <text>Resolution of Third-Party Liability Claims. When a third-party liability claim has been resolved by settlement or judgment, the agreement settling the workers' compensation claim shall be submitted to the Commission for approval, comply with §§A and B of this regulation, and contain or be accompanied by the following:</text> <paragraph num="(a)"> <text>A statement of the full amount of compensation paid or to be paid by the employer and insurer;</text> </paragraph> <paragraph num="(b)"> <text>A statement of the total amount of compensation paid or payable, the amount the employer or insurer is waiving reimbursement from the third-party settlement, the amount of the third-party settlement, the amount of attorney's fee charged in the third-party case; and</text> </paragraph> <paragraph num="(c)"> <text>A copy of the executed release or judgment.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Dependency Claims.</text> <paragraph num="(a)"> <text>When the settlement arises in connection with a claim involving a surviving dependent, the agreement submitted to the Commission for approval, in addition to complying with §§A and B, shall contain:</text> <paragraph num="(i)"> <text>A statement setting forth in factual detail the position of the parties on each issue involved in the claim; and</text> </paragraph> <paragraph num="(ii)"> <text>The name and address, if known, of any dependent for whom a claim has not been filed or a statement that no other dependents are known to the parties.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The parties shall file with the agreement, if not previously filed in the case, certified copies of the following:</text> <paragraph num="(i)"> <text>The certificate of death of the deceased employee;</text> </paragraph> <paragraph num="(ii)"> <text>The autopsy report for the deceased employee, if applicable;</text> </paragraph> <paragraph num="(iii)"> <text>The certificate of marriage for the dependent and deceased employee, if the dependent is the surviving spouse of the employee; and</text> </paragraph> <paragraph num="(iv)"> <text>The birth certificate of the dependent, if the dependent is the surviving child of the employee.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>When a document or public record required by this chapter was created or issued in a foreign State, the party submitting the document shall comply with the authentication requirements for foreign documents set forth in COMAR 14.09.02.05.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Structured Settlements. Agreements for the structured settlement of a claim shall be determined on a case-by-case basis.</text> </paragraph> <paragraph num="E."> <text>Medical Report.</text> <paragraph num="(1)"> <text>An agreement for final compromise and settlement shall be accompanied by all medical reports evaluating the nature and extent of the claimant's disability.</text> </paragraph> <paragraph num="(2)"> <text>On written request of the parties, the Commission may waive the requirement under §E(1) of this regulation if:</text> <paragraph num="(a)"> <text>The claim being settled is contested on an issue that denies the claimant's right to any benefits under Labor and Employment Article, Title 9;</text> </paragraph> <paragraph num="(b)"> <text>The claim has been disallowed by the Commission and is pending on appeal; or</text> </paragraph> <paragraph num="(c)"> <text>Good cause, that does not involve solely the question of the nature and extent of the claimant's disability, is shown for not requiring a medical report.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Hearing.</text> <paragraph num="(1)"> <text>The Commission may not approve an agreement for final compromise and settlement without a hearing unless the agreement is accompanied by the affidavit of the claimant, on the form prescribed by the Commission, waiving the hearing.</text> </paragraph> <paragraph num="(2)"> <text>The Commission may, at its discretion, require a hearing even when the affidavit is filed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Assessments on Third Party and Structured Settlements."> <paragraph num="A."> <text>Third-Party Settlements. In a final compromise and settlement involving third-party liability under Labor and Employment Article, Title 9, Subtitle 9, Annotated Code of Maryland, the assessments for SIF and UEF shall be computed on the amount of compensation paid or to be paid by the employer or insurer for which the employer or insurer may not be reimbursed from the third-party settlement.</text> </paragraph> <paragraph num="B."> <text>Structured Settlements.</text> <paragraph num="(1)"> <text>In case of a structured settlement of a claim, the assessments for SIF and UEF shall be computed on the premium payable by the employer or insurer for any annuity policy purchased on behalf of the employee.</text> </paragraph> <paragraph num="(2)"> <text>If the parties fail to disclose to the Commission the amount of premium payable by the employer or insurer, then the assessments shall be computed on the total amount of money guaranteed to be paid under the settlement agreement.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-402, 9-403, 9-405, 9-406, 9-701, and 9-722, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 2004 (31:7 Md. R. 586)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective April 11, 2005 (32:7 Md. R. 683)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.10, Individual Employer Self-Insurer, to COMAR 14.09.13, Individual Employer Self-Insurer, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03, recodified from Regulations .18, .19, and .21C, D in COMAR 14.09.01, Procedural Regulations, to COMAR 14.09.10, Settlements and Lump Sum Payments, and amended effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective March 12, 2018 (45:5 Md. R. 288); October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="11" heading="Judicial Review Procedures"> <regulation prefix="Regulation" num=".01" heading="Petition for Judicial Review."> <paragraph num="A."> <text>A party seeking judicial review of a decision of the Commission shall file a petition for judicial review in the circuit court within 30 days after the date the Commission’s order was mailed in accordance with Labor and Employment Article, §9-737, Annotated Code of Maryland, and the Maryland Rules, 7-201, et seq.</text> </paragraph> <paragraph num="B."> <text>A party filing a petition for judicial review shall serve a copy of the petition on the Commission in accordance with Labor and Employment Article, §9-737, Annotated Code of Maryland, and Maryland Rule 7-202(d).</text> </paragraph> <paragraph num="C."> <text>A party seeking judicial review of a decision granting or denying attorney’s fees shall serve a copy of the petition for judicial review on the Assistant Attorney General assigned to represent the Commission at the Commission’s principal office in Baltimore City. The judicial review shall be on the record of the Commission in accordance with Maryland Rule 7-206.1(b).</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Transcript of Proceedings."> <paragraph num="A."> <text>Unless the parties agree that a transcript is not necessary for review, or the court so orders, the first petitioner shall request and pay for a copy of the transcript of the proceedings before the Commission in accordance with Maryland Rule 7-206.</text> </paragraph> <paragraph num="B."> <text>The first petitioner shall file a written request that the transcript be prepared containing:</text> <paragraph num="(1)"> <text>The Commission case number;</text> </paragraph> <paragraph num="(2)"> <text>The date and place of the Commission hearing;</text> </paragraph> <paragraph num="(3)"> <text>The circuit court case number if known;</text> </paragraph> <paragraph num="(4)"> <text>The name of the first petitioner; and</text> </paragraph> <paragraph num="(5)"> <text>An acknowledgement that the first petitioner shall pay the cost of transcription.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon receipt of the request, the court reporter who recorded the hearing shall advise the first petitioner in writing of the estimated cost of the transcript.</text> </paragraph> <paragraph num="D."> <text>The first petitioner shall pay the cost of the transcription.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Circuit Court Proceedings."> <paragraph num="A."> <text>Following the disposition of a petition for judicial review by trial or motion, the prevailing party shall notify the Commission of the circuit court disposition within 30 days after disposition.</text> </paragraph> <paragraph num="B."> <text>A Cover Sheet for Action on Claims on Appeal shall be used to notify the Commission of the circuit court disposition and shall be accompanied by a copy of the verdict or signed order and memorandum, if any.</text> </paragraph> <paragraph num="C."> <text>If a hearing is required, the prevailing party shall file an issues form with the cover sheet.</text> </paragraph> <paragraph num="D."> <text>If a party appeals the circuit court disposition, the party shall notify the Commission using a Cover Sheet for Action on Claims on Appeal accompanied by a copy of the notice of appeal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Appellate Proceedings."> <paragraph num="A."> <text>Following the disposition of a case on appeal to the appellate courts, the prevailing party shall notify the Commission of the appellate court disposition.</text> </paragraph> <paragraph num="B."> <text>A Cover Sheet for Action on Claims on Appeal shall be used to notify the Commission of the appellate court disposition and shall be accompanied by:</text> <paragraph num="(1)"> <text>The appellate court opinion and order; and</text> </paragraph> <paragraph num="(2)"> <text>The appellate court mandate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a hearing is required, the prevailing party shall file an issues form with the cover sheet.</text> </paragraph> <paragraph num="D."> <text>If a party appeals the appellate court disposition, the party shall notify the Commission using a Cover Sheet for Action on Claims on Appeal accompanied by a copy of the notice of appeal or petition for writ of certiorari.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Supplemental Order Subject to Review on the Pending Appeal."> <paragraph num="A."> <text>If the Commission exercises its continuing jurisdiction under Labor and Employment Article, §9-742, Annotated Code of Maryland, to pass a supplemental order deciding an issue, the first petitioner/appellant shall file within 5 days of entry of the supplemental order:</text> <paragraph num="(1)"> <text>A copy of the supplemental order with the circuit or appellate court in which judicial review/appeal is pending; and</text> </paragraph> <paragraph num="(2)"> <text>A written certification with the Commission that the first petitioner/appellant has filed the copy of the supplemental order with the circuit or appellate court.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The written certification shall contain:</text> <paragraph num="(1)"> <text>The workers' compensation claim number;</text> </paragraph> <paragraph num="(2)"> <text>The claimant’s name;</text> </paragraph> <paragraph num="(3)"> <text>The caption of the case on appeal including the parties, the name of the court, and case number;</text> </paragraph> <paragraph num="(4)"> <text>A description of the supplemental order filed; and</text> </paragraph> <paragraph num="(5)"> <text>The date and manner of the filing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Any transcript of the proceeding that is required for inclusion in the record shall be requested by and paid for by the first petitioner or appellant.</text> </paragraph> <paragraph num="D."> <text>The petitioner/appellant shall file the written request for any transcript required for inclusion in the record when the written certification is filed with the Commission.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-701, 9-731(c) and (d), 9-737, 9-739, and 9-742, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 3, 2014 (41:4 Md. R. 305)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective August 3, 2015 (42:15 Md. R. 1016)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective July 15, 2019 (46:14 Md. R. 622)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective August 3, 2015 (42:15 Md. R. 1016)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03D adopted effective August 3, 2015 (42:15 Md. R. 1016)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D adopted effective August 3, 2015 (42:15 Md. R. 1016)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective August 3, 2015 (42:15 Md. R. 1016)</annotation> </annotations> </chapter> <chapter num="12" heading="Responsibilities of Insurers"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Competent Individual” means an individual who has sufficient skill, knowledge, and experience to handle and adjust disputed claims and who has authority to resolve claims without having to routinely contact an out-of-State representative of the insurer.</text> </paragraph> <paragraph num="(2)"> <text>“Commission designee” means the National Council on Compensation Insurance or any other entity that the Commission, from time to time, may designate as its representative to receive notices required by this regulation.</text> </paragraph> <paragraph num="(3)"> <text>“Insurance policy” means a policy or binder for workers' compensation insurance under Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Notices of Insurance, Cancellation, Reinstatement, and Election of Coverage."> <paragraph num="A."> <text>Notice of Insurance. When an insurance policy is issued or renewed, the insurer issuing or renewing it shall file a notice of insurance with the Commission designee within 45 days after the effective date of the policy.</text> </paragraph> <paragraph num="B."> <text>Notice of Cancellation.</text> <paragraph num="(1)"> <text>Required Filing. When an insurance policy is cancelled by the insurer or by the insured, the insurer shall file a notice of cancellation with the Commission designee.</text> </paragraph> <paragraph num="(2)"> <text>Time for Filing.</text> <paragraph num="(a)"> <text>Cancellation by Insurer.</text> <paragraph num="(i)"> <text>If the insurer cancels the insurance policy for nonpayment of premium, the notice of cancellation shall be filed at least 10 days before the effective date of the cancellation, in compliance with Insurance Article, §19-406(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(ii)"> <text>If the insurer cancels the insurance policy for any other reason, the notice of cancellation shall be filed at least 45 days before the effective date of the cancellation, in compliance with Insurance Article, §19-406(a), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Cancellation by Insured. When the cancellation is initiated by the insured, the notice of cancellation shall be filed by the insurer within 15 days after the effective date of the cancellation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Reinstatement — Time of Filing. When an insurance policy is reinstated, the insurer shall file a notice of reinstatement with the Commission designee within 15 days after the effective date of the reinstatement.</text> </paragraph> <paragraph num="D."> <text>Notice of Insurance, Cancellation, and Reinstatement — Form and Content. A notice of insurance, cancellation, or reinstatement shall contain all the following information:</text> <paragraph num="(1)"> <text>The employer's name;</text> </paragraph> <paragraph num="(2)"> <text>All names under which the employer trades;</text> </paragraph> <paragraph num="(3)"> <text>All nontemporary business addresses of the employer in Maryland;</text> </paragraph> <paragraph num="(4)"> <text>The employer’s federal identification number or, if the employer is not required to have a federal identification number, the last four digits of the employer’s social security number;</text> </paragraph> <paragraph num="(5)"> <text>The insurance policy number; and</text> </paragraph> <paragraph num="(6)"> <text>The policy period.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Notice of Election of Inclusion or Exemption of Coverage.</text> <paragraph num="(1)"> <text>A person may elect to be a covered employee by filing a notice of election with the Commission and with the insurer.</text> </paragraph> <paragraph num="(2)"> <text>The following types of persons may elect to be covered employees:</text> <paragraph num="(a)"> <text>Pursuant to Labor and Employment Article, §9-227(b), Annotated Code of Maryland, sole proprietors; and</text> </paragraph> <paragraph num="(b)"> <text>Pursuant to Labor and Employment Article, §9-219(b), Annotated Code of Maryland, partners.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A person may elect to be exempt from coverage as an employee by filing a notice of election with the Commission and the insurer.</text> </paragraph> <paragraph num="(4)"> <text>The following types of persons may elect to be exempted from coverage:</text> <paragraph num="(a)"> <text>Pursuant to Labor and Employment Article §9-206(b)(1), officers of a closed corporation;</text> </paragraph> <paragraph num="(b)"> <text>Pursuant to Labor and Employment Article §9-206(b)(2) and (c), officers of a corporation, other than closed corporation;</text> </paragraph> <paragraph num="(c)"> <text>Pursuant to Labor and Employment Article §9-206(b)(3) and (4), officers of a farm corporation or professional services corporation; and</text> </paragraph> <paragraph num="(d)"> <text>Pursuant to Labor and Employment Article §9-206(b)(5), members of a limited liability company.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If an employer changes insurers, a person shall file a new notice of election with the Commission and with the new insurer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Handling and Adjusting Disputed Claims."> <paragraph num="A."> <text>An insurer that provides workers' compensation insurance in Maryland shall have in the State competent individuals who:</text> <paragraph num="(1)"> <text>Handle and adjust each disputed workers' compensation claim for the insurer;</text> </paragraph> <paragraph num="(2)"> <text>Have authority to resolve claims without having to routinely contact an out-of-State representative of the insurer; and</text> </paragraph> <paragraph num="(3)"> <text>Possess the knowledge and experience to handle and adjust each disputed claim.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If an insurer files issues to dispute a claim, the filing shall be done in the State by competent individuals who:</text> <paragraph num="(1)"> <text>Handle and adjust each disputed workers' compensation claim for the insurer;</text> </paragraph> <paragraph num="(2)"> <text>Have authority to resolve claims without having to routinely contact an out-of-State representative of the insurer; and</text> </paragraph> <paragraph num="(3)"> <text>Possess the knowledge and experience to handle and adjust each disputed claim.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Within 10 days of an insurer filing issues to dispute a claim, the insurer shall have an attorney complete and file an entry of appearance form in accordance with COMAR 14.09.04.01C(2).</text> </paragraph> <paragraph num="D."> <text>Each insurer shall register with the Commission the contact information for a designated representative who can identify the competent individual handling and adjusting each disputed claim.</text> </paragraph> <paragraph num="E."> <text>Upon inquiry, the designated individual shall provide the name, address, telephone number, and email address of the competent individual handling and adjusting a claim within 2 business days.</text> </paragraph> <paragraph num="F."> <text>If any of the information in §D of this regulation changes, the insurer shall notify the Commission immediately.</text> </paragraph> <paragraph num="G."> <text>An insurer that provides workers' compensation insurance in Maryland shall establish a toll-free telephone number through which an insured or claimant, or a representative of an insured or claimant, may make direct telephone inquiries during regular business hours.</text> </paragraph> <paragraph num="H."> <text>An insurer that provides workers’ compensation insurance in Maryland shall register with CompHub to file and receive papers with the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Failure to Comply."> <paragraph num="A."> <text>Fine.</text> <paragraph num="(1)"> <text>An insurer found in violation of Regulation .03 of this chapter may be fined up to $1,000 per offense.</text> </paragraph> <paragraph num="(2)"> <text>Each day a violation is continued after the first fine is a separate offense.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Revocation of Self-Insurance Approval. A violation of Regulation .03 of this chapter that jeopardizes prompt and fair compensation of a Maryland workers' compensation claim may be grounds for the revocation of an employer's self-insurance approval under Labor and Employment Article, §9-403(e)(1), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Hearing Procedure."> <paragraph num="A."> <text>Notice of Agency Action.</text> <paragraph num="(1)"> <text>If the Commission has reasonable cause to believe that an insurer has violated Regulation .03 of this chapter, the Commission shall give reasonable notice of the alleged violation and the action the Commission proposes to take.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall state:</text> <paragraph num="(a)"> <text>The facts that are asserted;</text> </paragraph> <paragraph num="(b)"> <text>If the facts cannot be stated in detail when the notice is given, the issues that are involved;</text> </paragraph> <paragraph num="(c)"> <text>The potential penalty that could be imposed;</text> </paragraph> <paragraph num="(d)"> <text>That the recipient has a right to request a hearing;</text> </paragraph> <paragraph num="(e)"> <text>That any request for a hearing shall be in writing and received by the Commission within 20 days of the date of the notice; and</text> </paragraph> <paragraph num="(f)"> <text>That if a hearing is not requested within the time allowed, the Commission shall render its decision on the basis of its own investigation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Notice of Hearing.</text> <paragraph num="(1)"> <text>If a hearing is requested, the Commission shall mail a notice of the hearing 20 days before the date set for the hearing.</text> </paragraph> <paragraph num="(2)"> <text>The notice shall state:</text> <paragraph num="(a)"> <text>The date, time, place, and nature of the hearing;</text> </paragraph> <paragraph num="(b)"> <text>That the insurer may submit a written statement 5 days before the hearing;</text> </paragraph> <paragraph num="(c)"> <text>That the insurer may present oral argument at the hearing;</text> </paragraph> <paragraph num="(d)"> <text>That the insurer may call witnesses and submit documents or other evidence relative to the issues contained in the notice; and</text> </paragraph> <paragraph num="(e)"> <text>That the insurer may agree to the evidence and waive its right to appear at the hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Postponement.</text> <paragraph num="(1)"> <text>An insurer may request a postponement in writing 5 days before the hearing.</text> </paragraph> <paragraph num="(2)"> <text>If an insurer fails to appear at a hearing, and has not requested a postponement, the Commission may either:</text> <paragraph num="(a)"> <text>Proceed with the hearing; or</text> </paragraph> <paragraph num="(b)"> <text>Make its decision on the record before it.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Disposition. A hearing may not be adjourned or continued except upon order of the Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Penalty for Failure to Submit Required Case Payment Report."> <paragraph num="A."> <text>The Commission may assess against an insurer a fine not to exceed $1,000 for any unexcused failure to file a case payment report as required under Labor and Employment Article, §9-313(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Schedule of Assessments. The schedule of assessments established by the Commission is as follows:</text> </paragraph> <paragraph num="C."> <text>In calculating the imposition of an assessment on an insurer, each failure to submit a required report or the submission of an inaccurate or incomplete report is considered a separate violation subject to assessment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Appeal."> <text>An appeal from a decision made under this chapter shall be made on the record in accordance with Maryland Rule 7-206.1(b).</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Report of Payroll."> <paragraph num="A."> <text>In accordance with Labor and Employment Article, §9-316(g), Annotated Code of Maryland, each insurer shall file an annual report of insured payroll to the Commission electronically and as directed by the Commission.</text> </paragraph> <paragraph num="B."> <text>Any unexcused failure to file an accurate annual report of insured payroll to the Commission as required under Labor and Employment Article, §9-316(g), Annotated Code of Maryland, may result in an inaccurate assessment, delays in any refund due as a result of inaccurate reporting, or both.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §19-406; Labor and Employment Article, §§9-309, 9-404, 9-405, 9-409, 9-410, and 9-744; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 3, 2014 (41:4 Md. R. 303)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective March 12, 2018 (45:5 Md. R. 288)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective January 7, 2016 (42:26 Md. R. 1596)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended effective February 24, 2020 (47:4 Md. R. 263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A, B amended effective March 12, 2018 (45:5 Md. R. 288)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C, D amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03H adopted effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 adopted effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="13" heading="Individual Employer Self-Insurer"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Acceptable financial indicators” means indicators consistent with comparable industry financial health and performance criteria as reported in rating services such as RMA Annual Financial Statement Studies or equivalent recognized indices.</text> </paragraph> <paragraph num="(2)"> <text>“Act” means the Maryland Workers' Compensation Act, Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Actuarial report” means a report written by an actuary who is a member of the Casualty Actuarial Society or the American Academy of Actuaries.</text> </paragraph> <paragraph num="(4)"> <text>“Affiliate” means a member of a group of companies with common ownership but not the company having a direct ownership interest.</text> </paragraph> <paragraph num="(5)"> <text>“Commission” means the Maryland State Workers' Compensation Commission.</text> </paragraph> <paragraph num="(6)"> <text>“Investment grade securities” means federal or state bonds accepted by the circuit courts for investment of trust money.</text> </paragraph> <paragraph num="(7)"> <text>“Irrevocable trust, custodian, safekeeping, or book entry account” means a depository account of monies and investment grade securities held by a Federal Deposit Insurance Corporation bank that agrees to hold amounts ordered by the Commission for a self-insurer that can only be withdrawn by the Commission, or if a trust exists pursuant to the terms of the trust document.</text> </paragraph> <paragraph num="(8)"> <text>Self-Insurer.</text> <paragraph num="(a)"> <text>“Self-insurer” means an employer which has been granted the privilege to self-insure its liability and to maintain direct responsibility for the payment of this liability under the Act including any approved subsidiary of the self-insurer.</text> </paragraph> <paragraph num="(b)"> <text>“Self-insurer” does not include a parent company or affiliate that has guaranteed the payment of the self-insurer's liability.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“State” means the State of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Third-party administrator” means a company that handles and adjusts workers’ compensation claims under contract to a self-insurer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Application."> <paragraph num="A."> <text>Requirements.</text> <paragraph num="(1)"> <text>An initial application for individual self-insurance shall be submitted to the Commission on forms prescribed by the Commission and shall include all required information and documentation required by the Commission. A corporation shall submit a resolution of its board of directors authorizing and directing the corporation to apply to become self-insured.</text> </paragraph> <paragraph num="(2)"> <text>A nonrefundable fee in the amount established by the Commission shall accompany the application.</text> </paragraph> <paragraph num="(3)"> <text>The required information on the application shall be fully completed and particularly set forth under oath by the employer or an individual acting on the employer's behalf. The affidavit shall be made upon personal knowledge of the matters set forth in the application. The Commission may require the applicant to supplement or explain any of the matters set forth or to provide additional information that the Commission considers necessary.</text> </paragraph> <paragraph num="(4)"> <text>If a third-party administrator is used or intended to be used, the applicant shall provide a copy of the contract between the parties demonstrating that the third-party administrator agrees to do the following:</text> <paragraph num="(a)"> <text>Have in the State competent individuals who possess the knowledge and experience to handle and adjust each disputed claim in an efficient manner; and</text> </paragraph> <paragraph num="(b)"> <text>Handle and adjust each disputed workers’ compensation claim on behalf of the self-insurer in accordance with Maryland law.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Upon receipt of a complete application and all required information and documentation, the Commission shall act upon the application for self-insurance within 60 days.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Parental Guarantees and Subsidiaries.</text> <paragraph num="(1)"> <text>When an employer applying to self-insure is a subsidiary company, the parent company shall provide, on forms prescribed by the Commission, a written agreement adopted by its board of directors which states that the parent company guarantees the payment of all claims incurred by the self-insurer and its affiliates and subsidiaries that are approved under the self-insurance program. The parent company shall further assume liability for the payment of an affiliate's or subsidiary's claims incurred during its period of self-insurance upon termination of the affiliate or parent-subsidiary relationship until formally released by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>When a subsidiary company applies to self-insure under a parent company's existing self-insurance program, the subsidiary company shall file an application on forms prescribed by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Approval.</text> <paragraph num="(1)"> <text>In determining whether an applicant is eligible for self-insurance and in establishing the amount of surety required, the Commission shall consider all relevant factors including the following:</text> <paragraph num="(a)"> <text>Established record of financial stability and solvency, including:</text> <paragraph num="(i)"> <text>Net worth or unrestricted net assets of not less than $10,000,000 and at least 20 times average annual incurred claims net of reimbursements for the past 3 years;</text> </paragraph> <paragraph num="(ii)"> <text>Profitable and positive cash flow from operations 3 out of the last 5 years;</text> </paragraph> <paragraph num="(iii)"> <text>Acceptable debt-equity ratio;</text> </paragraph> <paragraph num="(iv)"> <text>Acceptable current and quick ratio;</text> </paragraph> <paragraph num="(v)"> <text>Acceptable interest coverage ratio; and</text> </paragraph> <paragraph num="(vi)"> <text>Acceptable financial stability of surety, excess carrier, or letter of credit issuer;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The proposed excess insurance policy limits and retention level;</text> </paragraph> <paragraph num="(c)"> <text>The experience of the organizational unit or service company processing and handling claims in the State;</text> </paragraph> <paragraph num="(d)"> <text>Workers' compensation loss history of the applicant;</text> </paragraph> <paragraph num="(e)"> <text>The number of years in business, with a minimum of 3 consecutive years before application; and</text> </paragraph> <paragraph num="(f)"> <text>Number of employees.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Not-for-profit organizations need not be profitable if all other provisions are satisfied and there are significant investments or endowments and other resources to assure payment of workers' compensation claims.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Revocation of Self-Insured Status."> <paragraph num="A."> <text>Approval for self-insurance privileges shall be continuous unless and until revoked or withdrawn.</text> </paragraph> <paragraph num="B."> <text>Deterioration in the financial strength of the self-insurer, which may affect the ability of the self-insurer to pay current and future claims when due, may result in modification or revocation of self-insurance privileges.</text> </paragraph> <paragraph num="C."> <text>Failure of a self-insurer to satisfy the Commission of its financial ability to secure compensation to pay current and future claims includes the following conditions:</text> <paragraph num="(1)"> <text>3 straight years of losses or negative cash flow from operations;</text> </paragraph> <paragraph num="(2)"> <text>Negative tangible net worth;</text> </paragraph> <paragraph num="(3)"> <text>8 straight quarters of losses;</text> </paragraph> <paragraph num="(4)"> <text>Noncompliance with lender covenants;</text> </paragraph> <paragraph num="(5)"> <text>Financial instability of surety, excess carrier, or letter of credit issuer;</text> </paragraph> <paragraph num="(6)"> <text>Public disclosure of accounting irregularities;</text> </paragraph> <paragraph num="(7)"> <text>Potential insolvency or bankruptcy; or</text> </paragraph> <paragraph num="(8)"> <text>Any other issue that shows financial instability.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An employer whose self-insurance privileges have been revoked shall continue to provide competent administration of disputed claims. If it is determined by the Commission that the claims are not being competently administered or reported, the Commission shall notify the employer. If the problem is not resolved to the satisfaction of the Commission within a reasonable period of time, the Commission may require the designation of a new claims administrator and the costs shall be borne by the employer.</text> </paragraph> <paragraph num="E."> <text>Whenever an employer voluntarily withdraws or is terminated or revoked from the self-insurance program, the Commission shall require the employer to provide all available information regarding case reserves and incurred but not reported estimates of remaining liability while self-insured.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Voluntary Withdrawal from the Self-Insurance Program."> <paragraph num="A."> <text>A self-insurer who voluntarily withdraws its privileges or the privileges of a self-insured subsidiary shall:</text> <paragraph num="(1)"> <text>Provide written notice to the Commission by personal delivery or by certified mail, return receipt requested, including a:</text> <paragraph num="(a)"> <text>Recent actuarial report;</text> </paragraph> <paragraph num="(b)"> <text>Claims payment history for up to 5 years; and</text> </paragraph> <paragraph num="(c)"> <text>Current loss run; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provide the date and time of the intended withdrawal and the carrier name, policy number, and effective date of coverage of the insurer assuming the risk.</text> </paragraph> </paragraph> <paragraph num="B."> <text>All former self-insurers and their guarantors shall remain responsible for any and all workers' compensation liabilities incurred during the self-insurance period. The incurred liabilities of a subsidiary or division are not subject to transfer to another entity through a sale unless the liabilities are to be fully covered under a workers' compensation insurance policy or a qualified self-insurance program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Revoked and Terminated Self-Insurers."> <paragraph num="A."> <text>Effective on the date of self-insurance revocation or termination, a revoked or terminated self-insurer shall provide the Commission with written evidence of workers' compensation insurance from an approved commercial carrier or the Maryland Injured Workers Insurance Fund, effective on the date of self-insurance termination.</text> </paragraph> <paragraph num="B."> <text>A terminated or revoked self-insurer shall maintain the security, excess policy, and parental guarantee which were in effect for the period while self-insured until released by the Commission.</text> </paragraph> <paragraph num="C."> <text>Each year, a terminated or revoked self-insurer shall provide to the Commission, an audited financial statement prepared by an independent certified public accountant. A self-insurer shall provide a separate report on a form prescribed by the Commission on the balance remaining in reserves, including incurred but not reported costs, for the period while self-insured. Any payments made during the year as well as the amount of adjustment made to the reserves from the prior year shall also be included in the prescribed report. The Commission may waive these requirements after 3 years from the date of termination.</text> </paragraph> <paragraph num="D."> <text>When the security has been exhausted, the surety or administrator shall make a final accounting to the Commission. The Commission shall direct the transfer of the workers' compensation records associated with the period of self-insurance.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Security."> <paragraph num="A."> <text>Each self-insurer shall, as a condition for the approval and continuation of its self-insurance privilege, provide a qualifying security deposit to secure the payment of compensation. The security is not subject to assignment, execution, attachment, or any legal process whatsoever, except as necessary to guarantee compensation under this chapter. The Commission may waive security requirements for individually self-insured governmental entities.</text> </paragraph> <paragraph num="B."> <text>Types of Qualifying Security.</text> <paragraph num="(1)"> <text>Surety Bond.</text> <paragraph num="(a)"> <text>A surety bond shall be on a form prescribed by the Commission and issued by a company authorized to transact surety business in this State by the Maryland Insurance Administration.</text> </paragraph> <paragraph num="(b)"> <text>The surety company shall possess a current A. M. Best Rating of A- or better or a comparable rating by another insurance company rating service acceptable to the Commission.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Letter of Credit.</text> <paragraph num="(a)"> <text>Requirements.</text> <paragraph num="(i)"> <text>A letter of credit shall be issued by a Federal Deposit Insurance Corporation member bank on a form prescribed by the Commission and in accordance with the Act.</text> </paragraph> <paragraph num="(ii)"> <text>A letter of credit shall possess a current financial standing according to Weiss Ratings, Inc. or equivalent rating service of B- or better.</text> </paragraph> <paragraph num="(iii)"> <text>If the Commission executes a draw down against a letter of credit, the funds shall be wired to a Federal Deposit Insurance Corporation member bank account within the State.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>When a self-insurer, active or revoked, provides adequate security after the Commission drawing on the letter of credit, the funds shall be released back to the letter of credit issuer.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Irrevocable Trust, Custodian, Safekeeping Agreement, or Book Entry Account.</text> <paragraph num="(a)"> <text>The Commission in its discretion may accept an irrevocable trust, custodian, safekeeping agreement, or book entry account for placement of securities issued by the federal government or by any state government in the United States, which is AA rated or better.</text> </paragraph> <paragraph num="(b)"> <text>Investment grade securities deposited in an irrevocable trust, custodian, safekeeping agreement, or book entry account shall be held for the benefit of the Commission and shall have a fair market value and be redeemable at or above the required security amount at all times.</text> </paragraph> <paragraph num="(c)"> <text>An irrevocable trust, custodian, safekeeping agreement, or book entry account that contains adequate securities as defined in §B(3)(a) and (b) of this regulation for the benefit of injured employees of the self-insurer may not be used for any other purpose or voided by order of owners, directors, or creditors of the self-insurer, or by order of any court, without specific written authorization of the Commission.</text> </paragraph> <paragraph num="(d)"> <text>When a self-insurer is revoked or withdraws from the self-insurance program, the securities remain pledged to the Commission to guarantee payment of any claim occurring during the self-insured period.</text> </paragraph> <paragraph num="(e)"> <text>At any time that the redeemable value falls below the security required, the self-insurer shall provide the additional security within 60 days of notification of deficit by the banking depository or the Commission. Any securities subject to rollover shall be replaced concurrently with the maturity and receipt of proceeds from the rollover.</text> </paragraph> <paragraph num="(f)"> <text>Any earnings received on these securities shall be returned to the self-insurer.</text> </paragraph> <paragraph num="(g)"> <text>A request for release of securities, or any part of the securities, shall be in writing to the Commission.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Security Deposit Determinations.</text> <paragraph num="(1)"> <text>Before approval of self-insurance status and periodically after that, the Commission, in establishing and adjusting security deposit amounts, shall consider, among other conditions or facts relevant to security and prompt payment of compensation, the following:</text> <paragraph num="(a)"> <text>Claims experience and reserves;</text> </paragraph> <paragraph num="(b)"> <text>Financial condition and performance;</text> </paragraph> <paragraph num="(c)"> <text>Safety record and program;</text> </paragraph> <paragraph num="(d)"> <text>Potential for catastrophic event;</text> </paragraph> <paragraph num="(e)"> <text>Compliance with law and regulations; and</text> </paragraph> <paragraph num="(f)"> <text>Reliability of audited financial statements, and reports of payroll, accident, claims, and reserve data.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A self-insurer shall, after the third full year of an approved plan, or earlier if required by the Commission, and tri-annually after that, or at a time frequency determined by the Commission, provide an independent actuarial study prepared in accordance with actuarial standards of practice as a basis for security deposit determination. The Commission may use reported reserve amounts in addition to a factor for related administrative costs and the potential modifiers in this subsection to establish the security amount.</text> </paragraph> <paragraph num="(3)"> <text>The Commission may waive this requirement for security for individually self-insured governmental entities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Excess Insurance."> <paragraph num="A."> <text>The applicant for self-insurance shall purchase excess insurance in an amount determined by the Commission.</text> </paragraph> <paragraph num="B."> <text>Specific retention amounts as defined in the excess policy shall be no higher than 5 percent of net worth or unrestricted net assets. The specific excess limit shall be not less than 20 times the specific retention amount or as otherwise ordered by the Commission.</text> </paragraph> <paragraph num="C."> <text>The applicant for self-insurance may request the intended specific retention amount and specific excess limit. The Commission shall order the approved amounts.</text> </paragraph> <paragraph num="D."> <text>The applicant for self-insurance shall provide proof of excess insurance by filing a copy of the excess certificate and a copy of the excess insurance policy with any endorsements with the Commission within 30 days of its issuance or renewal, or when requested by the Commission.</text> </paragraph> <paragraph num="E."> <text>Whenever the Commission makes a security deposit determination under Regulation .06 of this chapter, it also shall consider the terms and conditions of any excess insurance, including specific retention amount and specific excess limit.</text> </paragraph> <paragraph num="F."> <text>The Commission may waive this requirement for excess insurance for individually self-insured governmental entities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Reporting Requirements."> <paragraph num="A."> <text>Financial Reports.</text> <paragraph num="(1)"> <text>A self-insurer shall file an annual certified, audited financial report and 10K reports, if applicable, with the Commission within 120 days of the end of the reporting period. An extension may be granted upon written request of the Commission.</text> </paragraph> <paragraph num="(2)"> <text>The self-insurer shall submit interim reports as requested by the Commission.</text> </paragraph> <paragraph num="(3)"> <text>Financial reports shall be filed with the Commission electronically and as directed by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Claims Reports.</text> <paragraph num="(1)"> <text>A self-insurer shall maintain true and accurate records of workers' compensation paid and incurred costs and case reserves on each claim in indemnity, medical, and allocated costs paid and reserves for each claim. This information shall be provided annually to the Commission or more frequently if requested by the Commission.</text> </paragraph> <paragraph num="(2)"> <text>Reports submitted by a service company or third-party administrator on behalf of the self-insurer shall be treated as if they were submitted by the self-insurer directly.</text> </paragraph> <paragraph num="(3)"> <text>Claims reports shall be filed with the Commission electronically and as directed by the Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Penalty.</text> <paragraph num="(1)"> <text>After notice and opportunity for a hearing, the Commission may assess an individual employer self-insurer that the commission finds to be in violation of this regulation a fine not exceeding $1,000 for each violation.</text> </paragraph> <paragraph num="(2)"> <text>Failure to pay a fine assessed under this section may result in revocation of self-insurance status.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Reserves. A self-insurer shall evaluate and maintain adequate records of the past, present, and future liability of all claims incurred under its self-insurance program, including their closed and current claims in addition to reserves for future anticipated costs. Future anticipated costs shall represent the expected total cost of compensation over the life of each claim, based on all available information at the valuation date. Annually required reserves reports shall also include estimates of incurred but not reported costs applicable to both open claims, closed claims and claims which have occurred, but have not yet been reported.</text> </paragraph> <paragraph num="E."> <text>Change In Ownership Or Financial Condition.</text> <paragraph num="(1)"> <text>A self-insurer shall notify the Commission within 30 days of a change in majority ownership. Existing parental guarantees may not be released until an acceptable replacement guarantee is received by the acquiring parent company.</text> </paragraph> <paragraph num="(2)"> <text>A self-insurer or parent guarantor that amends its organizational documents to change its identity, status, or business structure, including merger, acquisition, and disposition, shall promptly notify the Commission in writing. All legal agreements and instruments that obligate the self-insurer, guarantors, excess carrier, or security provider shall be updated by the provider within 30 days. The Commission may request copies of documents or information considered necessary to determine whether an action has affected the ability of the employer to self-insure.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Bankruptcy and Closure. A current or former self-insurer shall notify the Commission within 10 days by certified mail, return receipt requested, of a petition for bankruptcy or closure filing and shall provide an updated claims report as defined in §B of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Proceedings."> <paragraph num="A."> <text>An order of denial of an application for self-insurance or a change in terms or conditions of the self-insurance program shall be served upon the designated representative or representatives of the self-insurer by personal delivery or by certified mail, return receipt requested. The order shall include the reason or reasons for denial.</text> </paragraph> <paragraph num="B."> <text>Upon receipt of the order of denial of an application for self-insurance or a change in terms or conditions of the self-insurance program, a party may request a hearing before the Commission within 15 days. A hearing shall be set as soon as practicable but no sooner than 20 days.</text> </paragraph> <paragraph num="C."> <text>A show cause order for termination or revocation of the self-insurance program shall be served upon the designated representative or representatives of the self-insurer by personal delivery or by certified mail, return receipt requested. The order shall contain the reason or reasons for the termination or revocation and date, time, and place of the hearing.</text> </paragraph> <paragraph num="D."> <text>A self-insurer who has been provided an order of denial or a show cause order may, at its option, submit a written statement before the date set for the hearing and, at the hearing, may appear and present oral argument or other evidence on the issues contained in the hearing notice. When a written statement is presented, 15 copies shall be served on the Commission at least 5 days before the date set for the hearing.</text> </paragraph> <paragraph num="E."> <text>Under exigent circumstances, the Commission may set a hearing in a time period less than prescribed in §D of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Examinations."> <text>The costs of examinations pursuant to Labor and Employment Article, §9-405(e), Annotated Code of Maryland, shall be paid by the Commission. If the self-insurer is in default, the expense of the examination shall be paid by the self-insurer.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Access To Workers' Compensation Records of Self-Insurer."> <text>A self-insurer or its designee shall immediately upon notification by the Commission, or upon discontinuance of workers' compensation payments for the period while self-insured, release all relevant records to the Commission or the agent for the surety responsible for the continuation of workers' compensation payments.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Confidentiality of Information."> <text>The Commission may not release to the public any information concerning a self-insurer or third-party administrator other than confirmation that an employer is individually self-insured, its address, the effective date of the insurance program, and the name of the claims or third-party administrator, unless by order of a court, or as required by State or federal law.</text> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-402, 9-403, 9-405, and 9-406, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 2004 (31:7 Md. R. 586)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective April 11, 2005 (32:7 Md. R. 683)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.10, Individual Employer Self-Insurer, to COMAR 14.09.13, Individual Employer Self-Insurer, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective March 12, 2018 (45:5 Md. R. 288)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective March 12, 2018 (45:5 Md. R. 288)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective February 10, 2020 (47:3 Md. R. 172)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="14" heading="Governmental Group Self-Insurance"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>For the purposes of this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Actuarially calculated ultimate loss liability” means the sum of open claim reserves plus an estimate of incurred but not reported losses on open and closed claims through the cutoff date for the estimate in accordance with generally accepted actuarial principles.</text> </paragraph> <paragraph num="(2)"> <text>“Adequate consideration” has the meaning set forth in the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §1108(17)(B).</text> </paragraph> <paragraph num="(3)"> <text>“Administrator” means a person or entity designated by the Board of Trustees for a purpose authorized by this regulation.</text> </paragraph> <paragraph num="(4)"> <text>“Board of Trustees” means the elected governing body of a governmental group self-insurance fund.</text> </paragraph> <paragraph num="(5)"> <text>“Elect” means either:</text> <paragraph num="(a)"> <text>Direct election by the members of the governmental group fund;</text> </paragraph> <paragraph num="(b)"> <text>Appointment by the Board of Directors of a governmental entity member organization; or</text> </paragraph> <paragraph num="(c)"> <text>Appointment by the Board of Directors of the governmental group or sponsoring organization.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Exchange traded fund” or “ETF” means an equity fund or bond fund designed to replicate the performance of a major broad market United States, international, or global index and publicly traded on an American Stock Exchange.</text> </paragraph> <paragraph num="(7)"> <text>“Fiduciary” means:</text> <paragraph num="(a)"> <text>An individual or group of individuals as defined in the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §1102(21)(A);</text> </paragraph> <paragraph num="(b)"> <text>A member of the Board of Trustees;</text> </paragraph> <paragraph num="(c)"> <text>A member of an investment committee of the Board of Trustees; and</text> </paragraph> <paragraph num="(d)"> <text>An administrator.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Fiscal agent” means the entity employed by the Board of Trustees to hold the monies of the Fund.</text> </paragraph> <paragraph num="(9)"> <text>“Fund” means the governmental self-insurance group fund established pursuant to Labor and Employment Article, §9-404, Annotated Code of Maryland, and this chapter.</text> </paragraph> <paragraph num="(10)"> <text>“Party in interest” means:</text> <paragraph num="(a)"> <text>An administrator;</text> </paragraph> <paragraph num="(b)"> <text>A fiduciary;</text> </paragraph> <paragraph num="(c)"> <text>A member of the Fund, any of whose employees are covered by the Fund;</text> </paragraph> <paragraph num="(d)"> <text>A service company;</text> </paragraph> <paragraph num="(e)"> <text>A trustee;</text> </paragraph> <paragraph num="(f)"> <text>A fiscal agent;</text> </paragraph> <paragraph num="(g)"> <text>A spouse, ancestor, lineal descendent, or spouse of a lineal descendent of a person set forth in §B(10)(a) — (f) of this regulation;</text> </paragraph> <paragraph num="(h)"> <text>A corporation, partnership, trust or estate of which 50 percent is owned directly or indirectly by a person set forth in §B(9)(a) — (f) of this regulation;</text> </paragraph> <paragraph num="(i)"> <text>An employee, officer, director or 10 percent or more shareholder of an entity or person set forth in §B(10)(a) — (f) of this regulation; and</text> </paragraph> <paragraph num="(j)"> <text>A 10 percent or more partner or joint venturer of an entity or person set forth in §B(10)(a) — (f) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“SEC” means the United States Securities and Exchange Commission.</text> </paragraph> <paragraph num="(12)"> <text>“Service company” means an organization, company, or person hired to perform a function of the Fund's day-to-day operations including, but not limited to:</text> <paragraph num="(a)"> <text>Adjusting claims;</text> </paragraph> <paragraph num="(b)"> <text>Performing safety engineering;</text> </paragraph> <paragraph num="(c)"> <text>Compiling statistics and preparing premium, loss, and tax reports;</text> </paragraph> <paragraph num="(d)"> <text>Preparing other required fund reports;</text> </paragraph> <paragraph num="(e)"> <text>Developing members' premiums and fees;</text> </paragraph> <paragraph num="(f)"> <text>Managing the investment of all or part of the Fund's assets; and</text> </paragraph> <paragraph num="(g)"> <text>Providing advisory services, including advice on investment objectives, asset allocation, manager search, and performance monitoring.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Sponsoring organization” means the governmental group that has been approved for joint self-insurance coverage under Labor and Employment Article, §9-404, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(14)"> <text>“Surplus monies not needed to meet current obligations (surplus monies)” means monies not needed to pay current Fund:</text> <paragraph num="(a)"> <text>Expenses;</text> </paragraph> <paragraph num="(b)"> <text>Obligations;</text> </paragraph> <paragraph num="(c)"> <text>Open claim reserves; and</text> </paragraph> <paragraph num="(d)"> <text>Incurred, but not reported, claim reserves.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".01-1" heading="Application."> <paragraph num="A."> <text>Application for governmental group coverage for the express purpose of establishing a group self-insurers' fund, to be administered under the direction of an elected board of trustees, and to provide workers' compensation coverage for a group of public employers of the same type of unit, shall be made to the Workers' Compensation Commission.</text> </paragraph> <paragraph num="B."> <text>The application shall be made on a prescribed form and shall contain answers to all questions and shall be accompanied by the application fee in the amount as may be approved by the Commission from time to time.</text> </paragraph> <paragraph num="C."> <text>Additional Requirements. The application, as submitted by the initial board of trustees of self-insurers’ fund, shall be accompanied by all of the following:</text> <paragraph num="(1)"> <text>A copy of the bylaws of the proposed group self-insurers' fund.</text> </paragraph> <paragraph num="(2)"> <text>An individual application of each member of the group applying for coverage in the fund.</text> </paragraph> <paragraph num="(3)"> <text>A current financial statement and a budget report that shows planned expenditures are funded.</text> </paragraph> <paragraph num="(4)"> <text>Evidence of the financial ability of the group to meet its obligations under the Workers' Compensation Law.</text> </paragraph> <paragraph num="(5)"> <text>A composite listing of the estimated standard premium to be developed by each member of the group individually and in total as a group.</text> </paragraph> <paragraph num="(6)"> <text>Proof of payment by each member of not less than 25 percent of the estimated annual standard premium into a designated depository. For governmental entities, a letter of intent signed by the responsible financial officer pledging payment within 10 days of the approval of the fund by the Commission may constitute proof of payment.</text> </paragraph> <paragraph num="(7)"> <text>A confirmation of excess insurance by an authorized carrier in an acceptable amount and which complies with the requirements in Regulation .07 of this chapter.</text> </paragraph> <paragraph num="(8)"> <text>Designation of a qualified employee or administrator of the association or group, or a qualified service company with a copy of the signed service agreement.</text> </paragraph> <paragraph num="(9)"> <text>Designation of the initial board of trustees.</text> </paragraph> <paragraph num="(10)"> <text>Proof of a fidelity bond and errors and omissions policy in a form and amount acceptable to the Commission.</text> </paragraph> <paragraph num="(11)"> <text>If required, a surety bond written by an authorized carrier in an amount acceptable or other acceptable security.</text> </paragraph> <paragraph num="(12)"> <text>A copy of a trust and indemnity agreement which shall be subject to approval by the Commission. The agreement shall contain a provision jointly and severally binding the group and each member of it to comply with the provision of the Workers' Compensation Law.</text> </paragraph> <paragraph num="(13)"> <text>A breakdown of all projected administrative expenses for the fund year in an amount and as a percentage of the annual standard premium collected.</text> </paragraph> <paragraph num="(14)"> <text>Proof, satisfactory to the Commission, that the annual gross premiums of the fund will not be less than $500,000. The premium collected from each member shall be computed by applying the appropriate manual rates per payroll code classification and multiplying the manual rate by an experience modification factor, if the modification factor is applicable.</text> </paragraph> <paragraph num="(15)"> <text>Proof that the fund has within its own organization ample facilities and competent personnel to service its own program with respect to underwriting matters and industrial safety engineering or shall contract with a qualified service company or employer adjusters to provide these services. A qualified service company shall be used to handle claims adjusting and reporting of loss data.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Approval and Review."> <paragraph num="A."> <text>After considering the application and all supportive data, the Commission shall either grant approval or advise the trustees of the governmental self-insurers' group of the requirements to be met before approval is granted. The group shall be given 30 days from the receipt of the notice in which to comply with the requirements. The self-insured authority may not become effective until there is proof that all requirements for self-insured approval have been met.</text> </paragraph> <paragraph num="B."> <text>The group may, at the discretion of the Commission, be granted additional time to meet the requirements for the self-insured program. A request for an extension of time shall be made in writing by the group within the 30-day compliance period. If the Commission does not receive proof that all requirements for the self-insured program have been met within the time prescribed, the application shall be considered withdrawn.</text> </paragraph> <paragraph num="C."> <text>Upon meeting the requirements, the group shall receive a formal certificate approving its status as a self-insurer. The privilege shall be extended until denied.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Members Admission and Termination."> <paragraph num="A."> <text>After the inception date of the fund, prospective new members of the fund shall submit an application for membership to the board of trustees, or its administrator. The trustees or administrator may approve the application for membership pursuant to the bylaws of the governmental group self-insurers' fund. The application for membership shall then be filed with the Commission, and membership shall take effect on the date approval is granted by the Commission.</text> </paragraph> <paragraph num="B."> <text>Individual members may elect to terminate their participation in a governmental group self-insurers’ program or be subject to cancellation by the governmental group fund pursuant to the bylaws of the fund. However, termination or cancellation may not take place for at least 30 days after notice to the Commission of the termination or cancellation from the governmental group fund.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reports to the Commission."> <paragraph num="A."> <text>Reports as to financial standing, payroll records, insurance coverage, accident experience, compensation payments, and such other reports as are required to be filed shall be made at the following times and in the following manner:</text> <paragraph num="(1)"> <text>Each fund shall file a statement of financial condition annually prepared by a certified public accounting firm. The financial statement shall show evidence that the fund has surplus sufficient to pay 1 year of estimated claim payments.</text> </paragraph> <paragraph num="(2)"> <text>Summary loss data shall be filed on each fund member within 60 days after the annual evaluation date of the losses being reported, in a manner as prescribed. Full actuarial reports and loss runs shall be provided annually. The Commission may request these reports more frequently.</text> </paragraph> <paragraph num="(3)"> <text>Classified, audited, and properly limited payrolls on each fund member shall be submitted on an annual basis or upon special request on forms prescribed.</text> </paragraph> <paragraph num="(4)"> <text>A certified copy of the minutes of all trustee meetings shall be submitted by the fund administrator within 30 days of approval but not less than 45 days after the meeting date.</text> </paragraph> <paragraph num="(5)"> <text>Members of a governmental self-insurers' group shall be subject to an experience rating plan for the purpose of determining the modified insurance rate to develop compensation premiums. The experience rating formula promulgated by the National Council on Compensation Insurance or other formula approved by the group and the Commission shall be used in determining the modified premium. Annually, or as otherwise prescribed, the modified premium for each member shall be approved by the trustees.</text> </paragraph> <paragraph num="(6)"> <text>The trustees of any governmental group fund may apply a penalty rate in excess of the normal premium to any risk with an unfavorable loss experience, provided the members and the Commission are notified in writing before the effective date of the change in rates.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Any fund which fails or refuses to file the above reports within the time limits prescribed in these regulations or whose filed reports indicate the fund is not operating in accordance with these regulations shall be notified that its authority to be self-insured shall be terminated and the grounds for the termination. The fund may request a hearing in accordance with the regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Trustee Responsibilities."> <paragraph num="A."> <text>Trustee Election.</text> <paragraph num="(1)"> <text>Trustees shall be elected or appointed for a stated term of office.</text> </paragraph> <paragraph num="(2)"> <text>A trustee may not be an owner, officer, or employee of a service company with which the Board of Trustees contracts for a purpose authorized by this chapter, except that a Trustee may be an employee of the governmental group or sponsoring organization.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Delegation of Authority to Administrator.</text> <paragraph num="(1)"> <text>Subject to final approval by the Commission, the Board of Trustees may delegate authority to perform specific functions to an Administrator including, but not limited to, the authority to:</text> <paragraph num="(a)"> <text>Contract with a service company and other providers;</text> </paragraph> <paragraph num="(b)"> <text>Determine the premium charged to and refunds payable to members subject to the restrictions of the Commission;</text> </paragraph> <paragraph num="(c)"> <text>Invest surplus monies subject to the restrictions set forth in this regulation; and</text> </paragraph> <paragraph num="(d)"> <text>Approve applications for membership.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board of Trustees shall include in the written minutes of trustee meetings the specific authority delegated to an administrator pursuant to this section.</text> </paragraph> <paragraph num="(3)"> <text>The Board of Trustees shall submit a copy of the minutes under §B(2) of this regulation to the Commission for approval.</text> </paragraph> <paragraph num="(4)"> <text>An Administrator designated by the Board of Trustees:</text> <paragraph num="(a)"> <text>May not be an owner, officer, or employee of a service company with which the Board of Trustees has contracted for a purpose authorized by this chapter, except that the Administrator may be an employee of the governmental group or sponsoring organization; and</text> </paragraph> <paragraph num="(b)"> <text>Shall furnish a fidelity bond, with the Fund as obligee, in an amount, as determined by the Commission, sufficient to protect the Fund against misappropriation or misuse of any monies or securities.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Authority of Board of Trustees.</text> <paragraph num="(1)"> <text>The Board of Trustees may not:</text> <paragraph num="(a)"> <text>Extend credit to individual members for payment of premiums other than normal premium payment plans;</text> </paragraph> <paragraph num="(b)"> <text>Utilize any of the monies collected as premiums for any purpose unrelated to the Fund's workers' compensation program; or</text> </paragraph> <paragraph num="(c)"> <text>Borrow any monies from the Fund or in the name of the Fund:</text> <paragraph num="(i)"> <text>Without obtaining the prior approval of the Commission; or</text> </paragraph> <paragraph num="(ii)"> <text>For the purpose of engaging in an investment activity pursuant to this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board of Trustees may:</text> <paragraph num="(a)"> <text>Direct the administration of the Fund;</text> </paragraph> <paragraph num="(b)"> <text>Approve applications for membership in the Fund;</text> </paragraph> <paragraph num="(c)"> <text>Invest surplus monies subject to the restrictions set forth in Labor and Employment Article, §9-404(a), Annotated Code of Maryland, and this chapter; and</text> </paragraph> <paragraph num="(d)"> <text>Contract with a service company or other provider for a purpose authorized by this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Board of Trustees shall:</text> <paragraph num="(a)"> <text>Retain control of monies collected or disbursed from the Fund;</text> </paragraph> <paragraph num="(b)"> <text>Establish a claims fund sufficient to cover payment of the entire aggregate loss fund as defined in any aggregate excess policy required by the Commission;</text> </paragraph> <paragraph num="(c)"> <text>Establish a trustee fund sufficient to pay the administrative costs of the Fund and from which all administrative costs and other disbursements shall be made;</text> </paragraph> <paragraph num="(d)"> <text>Establish a revolving fund, to be replenished from time to time from the claims fund, for use by the Fund's staff or an authorized service company;</text> </paragraph> <paragraph num="(e)"> <text>Arrange for the annual audit of the accounts and records of the Fund by an independent certified public accountant, copies of which shall be filed with the Commission no later than 5 months after the close of the Fund fiscal year; and</text> </paragraph> <paragraph num="(f)"> <text>Determine the premiums charged to and refunds payable to members.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Use of Service Company.</text> <paragraph num="(1)"> <text>The Board of Trustees may contract with a service company to perform any function not specifically reserved to the Board of Trustees.</text> </paragraph> <paragraph num="(2)"> <text>Prior to entering into a contract with a service company or other provider for a purpose authorized by this chapter, the Board of Trustees or Administrator shall provide to the Commission satisfactory proof that the service company or provider:</text> <paragraph num="(a)"> <text>Is covered by a fidelity bond, with the Fund as obligee, in an amount sufficient to protect monies over which the service company or provider exercises control;</text> </paragraph> <paragraph num="(b)"> <text>Maintains fiduciary liability insurance, and if not, how the Fund's interests are protected;</text> </paragraph> <paragraph num="(c)"> <text>Possesses experience and expertise relevant to the activity that the service company or provider has been contracted to provide;</text> </paragraph> <paragraph num="(d)"> <text>Holds the qualifications required by the state or federal agency responsible for regulating the activity that the service company or provider has been contracted to provide; and</text> </paragraph> <paragraph num="(e)"> <text>Is licensed, registered, or exempt from licensing or registration, with the state or federal agency responsible for regulating the activity that the service company or provider has been contracted to provide.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Prohibited Transactions.</text> <paragraph num="(1)"> <text>Except as provided in §E(3), a fiduciary with respect to the Fund may not cause the Fund to engage in a transaction, if the fiduciary knows or should know that such transaction constitutes direct or indirect:</text> <paragraph num="(a)"> <text>Sale, exchange, or leasing of property between the Fund and a party in interest;</text> </paragraph> <paragraph num="(b)"> <text>Lending of money or other extension of credit between the Fund and a party in interest;</text> </paragraph> <paragraph num="(c)"> <text>Furnishing of goods, services, or facilities between the Fund and a party in interest;</text> </paragraph> <paragraph num="(d)"> <text>Transfer to, or use by or for the benefit of, a party in interest, of an asset of the Fund; or</text> </paragraph> <paragraph num="(e)"> <text>Engaging in investment, or other activity not provided for in the approved annual investment plan, this chapter, or Labor and Employment Article, §9-404(a), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except as provided in §E(3) of this regulation, a fiduciary may not:</text> <paragraph num="(a)"> <text>Deal with Fund assets in the fiduciary's own interest or for the fiduciary's own account;</text> </paragraph> <paragraph num="(b)"> <text>Act in a transaction involving the Fund on behalf of a party whose interests are adverse to the interest of the Fund or its members; or</text> </paragraph> <paragraph num="(c)"> <text>Receive any consideration for the fiduciary's own personal account from a person dealing with the Fund in connection with a transaction involving the assets of the Fund.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The prohibitions in §E(1) and (2) of this regulation do not apply to the following transactions:</text> <paragraph num="(a)"> <text>Contracting or making reasonable arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the Fund and its workers' compensation insurance program, if not more than reasonable compensation is paid for those services; or</text> </paragraph> <paragraph num="(b)"> <text>Transactions described in §E(1) and (2) of this regulation between the Fund and a person that is a party in interest, other than a fiduciary, who has or exercises any discretionary authority or control with respect to the investment of the Fund assets involved in the transaction, or who renders investment advice, within the meaning of Regulation .01B(7)(a) of this chapter, with respect to those assets, solely by reason of providing services to the plan or solely by reason of a relationship to such a service provider, but only if in connection with such transaction the Fund receives no less, or pays no more, than adequate consideration as defined in Regulation .01A(2) of this chapter.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Upon application, the Commission may authorize other exemptions for fiduciaries or transactions.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Funds, Advance Premium Discounts, Surplus Distribution, Deficits."> <paragraph num="A."> <text>The trustees of any group self-insurers' fund may not allow advance premium discounts to any member in excess of that allowed by the excess insurance underwriter, subject, however, to a maximum of 15 percent of their standard premium.</text> </paragraph> <paragraph num="B."> <text>Any surplus monies for a fund year in excess of the amount necessary to fulfill all obligations under the Workers' Compensation Law for that fund year, including a provision for claims incurred but not reported, may be declared to be refundable by the trustees at any time, and the amount of the declaration shall be a fixed liability of the fund at the time of the declaration.</text> </paragraph> <paragraph num="C."> <text>The date of payment shall be as agreed by the trustees except that surplus monies not needed to satisfy the loss fund requirements, that is, trustees' funds, may be refunded immediately after the end of the fund year with the approval of the Commission. The intent of this section is to ensure that sufficient monies are retained to assure that total assets are greater than total liabilities for each fund year.</text> </paragraph> <paragraph num="D."> <text>In the event of a deficit in any fund year, the deficit shall be made up immediately from any of the following:</text> <paragraph num="(1)"> <text>Unencumbered surplus from a fund year other than the current fund year;</text> </paragraph> <paragraph num="(2)"> <text>Trustees' funds;</text> </paragraph> <paragraph num="(3)"> <text>By assessment of the membership of the deficit fund year if ordered; or</text> </paragraph> <paragraph num="(4)"> <text>By such alternative method as the Commission may approve.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Commission shall be notified before any transfer of unencumbered surplus funds.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Excess Insurance."> <text>A contract or policy of aggregate or specific excess insurance may not be recognized in considering the ability of an applicant to fulfill its financial obligations under the Workers' Compensation Law, unless the contract or policy complies with all of the following:</text> <paragraph num="A."> <text>Is issued by a casualty insurance company authorized to transact this business in this State and is rated A- or above by AM Best or equivalent.</text> </paragraph> <paragraph num="B."> <text>Is not cancelable or nonrenewable unless written notice by registered or certified mail is given to the other party to the policy and to the Commission not less than 30 days before termination by the party desiring to cancel or not renew the policy.</text> </paragraph> <paragraph num="C."> <text>Any contract or policy containing any type of commutation clause shall provide that any commutation effected thereunder does not relieve the underwriter of further liability in respect to claims and expenses unknown at the time of the commutation or in regard to any claim apparently closed at the time of initial commutation which is subsequently reopened by or through a competent authority. If the underwriter proposes to settle their liability for future payments payable as compensation for accidents occurring during the term of the policy by the payment of a lump sum to the employer, to be fixed as provided in the commutation clause of the policy, then not less than 30 days prior notice of the commutation shall be given by the underwriters or their agent by registered or certified mail. If any commutation is effected, then the Commission shall have the right to direct that the sum be placed in trust for the benefit of the injured employee entitled to the future payments of compensation.</text> </paragraph> <paragraph num="D."> <text>If a governmental group self-insured employer becomes insolvent or is unable to make compensation payments, the excess carrier shall make, directly to claimants or their authorized representatives, such payments as would have been made by the excess carrier to the employer after it has been determined that the retention level has been reached on the excess contract.</text> </paragraph> <paragraph num="E."> <text>All of the following shall be applied toward the reaching of the retention level in the aggregate excess contract:</text> <paragraph num="(1)"> <text>Payments made by the employer;</text> </paragraph> <paragraph num="(2)"> <text>Payments due and owing to claimants of the employer;</text> </paragraph> <paragraph num="(3)"> <text>Payments made on behalf of the employer by any surety bond under a bond required by the Commission.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Copies of the complete policies of excess insurance shall be filed with the Commission, together with a certification that these policies fully comply with the regulations of the Workers' Compensation Law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Investments Authorized."> <paragraph num="A."> <text>Conditions to Investing.</text> <paragraph num="(1)"> <text>Prior to engaging in an investment activity under this chapter, the Board of Trustees shall:</text> <paragraph num="(a)"> <text>Fully fund the actuarially calculated ultimate loss liability of the Fund; and</text> </paragraph> <paragraph num="(b)"> <text>Submit to the Commission for approval an Annual Investment Plan that satisfies the requirements of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Annual Investment Plan submitted to the Commission shall include:</text> <paragraph num="(a)"> <text>A statement of investment policy and current year objectives;</text> </paragraph> <paragraph num="(b)"> <text>A complete asset allocation study;</text> </paragraph> <paragraph num="(c)"> <text>Projected investment activity for the coming year by asset allocation group; and</text> </paragraph> <paragraph num="(d)"> <text>A signed acknowledgement from any fiduciary acknowledging his or her fiduciary responsibilities and the prohibited transactions set forth in Regulation .06E of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Investing of Surplus Monies in Insured and Government Obligations.</text> <paragraph num="(1)"> <text>The Board of Trustees may invest all surplus monies not needed to meet current obligations in:</text> <paragraph num="(a)"> <text>Investments authorized by State Finance and Procurement Article, §6-222, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>United States Government Bonds or Treasury Notes;</text> </paragraph> <paragraph num="(c)"> <text>Investment shares accounts in any savings and loan association whose deposits are insured by a federal agency; and</text> </paragraph> <paragraph num="(d)"> <text>Certificates of deposit issued by a duly chartered commercial bank.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except as provided in §B(3) of this regulation, the Board of Trustees:</text> <paragraph num="(a)"> <text>Shall limit deposits in savings and loan associations and commercial banks to institutions in this State; and</text> </paragraph> <paragraph num="(b)"> <text>May not deposit more than the federally insured amount in any one account.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Notwithstanding §B(2) of this regulation, the Board of Trustees may deposit more than the federally insured amount in any one account if the amount does not exceed:</text> <paragraph num="(a)"> <text>5 percent of the combination of surplus and undivided profits and reserves as currently reported for each bank in this State in the banking division annual report of the Financial Institution Bureau of the Department of Commerce (banking control); or</text> </paragraph> <paragraph num="(b)"> <text>$500,000 per institution.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Investing of Surplus Monies in Equities.</text> <paragraph num="(1)"> <text>The Board of Trustees may, subject to the requirements of this chapter, invest a maximum of 30 percent of surplus monies not needed to meet current obligations in equities.</text> </paragraph> <paragraph num="(2)"> <text>Of the monies that may be invested in equities pursuant to §C(1) of this regulation, the Board of Trustees may not invest more than:</text> <paragraph num="(a)"> <text>33-1/3 percent, at cost, or 50 percent at market value, in any single equity fund, bond fund, or ETF, including any single country, commodity, or sector fund; and</text> </paragraph> <paragraph num="(b)"> <text>5 percent, at cost, or 8 percent at market value, in any single listed equity, right, depositary receipt, or convertible security.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Notwithstanding the investment allocation restrictions in §C(2) of this regulation, in the case of an equity investment whose weighting is greater than 5 percent of the applicable benchmark index, the Board of Trustees may be permitted to equal-weight the equity investment at cost and hold a market value weighting not to exceed 1-1/2 times the equity investment's index weighting.</text> </paragraph> <paragraph num="(4)"> <text>The Board of Trustees may invest in only the following equities:</text> <paragraph num="(a)"> <text>Preferred stock of a solvent institution that is:</text> <paragraph num="(i)"> <text>Not in default of dividend, principal, or interest payments on any preferred stock or debt instrument; and</text> </paragraph> <paragraph num="(ii)"> <text>Created or existing under the laws of the United States, Canada, a state, or a province of Canada;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Common stock of a solvent corporation created or existing under the laws of the United States, Canada, a state, or a province of Canada that is:</text> <paragraph num="(i)"> <text>Not in default of dividend, principal, or interest payments on any preferred stock or debt instrument;</text> </paragraph> <paragraph num="(ii)"> <text>Publicly traded on an American stock exchange; and</text> </paragraph> <paragraph num="(iii)"> <text>Subject to the rules and regulation of the SEC;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Common Stock Mutual Funds and Bond Mutual Funds created by investment managers that are formed and operated under the laws of the United States, Canada, a state, or a province of Canada that are:</text> <paragraph num="(i)"> <text>Publicly traded and readily marketable;</text> </paragraph> <paragraph num="(ii)"> <text>Offered for purchase and redemption to the public; and</text> </paragraph> <paragraph num="(iii)"> <text>Are subject to the rules and regulation of the SEC and the existing laws and regulations of a State, province, or nation in which they reside; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>An ETF that is formed and operated under the laws of the United States, Canada, a state, or a province of Canada and that is:</text> <paragraph num="(i)"> <text>Readily marketable;</text> </paragraph> <paragraph num="(ii)"> <text>Offered for purchase and redemption to the public; and</text> </paragraph> <paragraph num="(iii)"> <text>Subject to the rules and regulation of the SEC and the existing laws and regulations of the state, province, or nation in which it resides.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Reporting Requirements and Corrective Action Plans."> <paragraph num="A."> <text>The Board of Trustees shall:</text> <paragraph num="(1)"> <text>Submit quarterly reports regarding the status or condition of investments made pursuant to this chapter, including quarterly investment statements; and</text> </paragraph> <paragraph num="(2)"> <text>Submit any additional information requested by the Commission under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Commission may direct the Board of Trustees to submit to the Commission:</text> <paragraph num="(1)"> <text>A written explanation of its investment strategy and performance;</text> </paragraph> <paragraph num="(2)"> <text>A written proposed corrective action plan; and</text> </paragraph> <paragraph num="(3)"> <text>Any additional information concerning these investments that the Commission deems relevant.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Commission may order the Board of Trustees to implement a corrective action plan, to convert its investments to the investments authorized in Regulation .07B of this chapter, and to take any other action the Commission deems necessary.</text> </paragraph> <paragraph num="D."> <text>The Commission shall serve an order issued under §C of this regulation on the Board of Trustees by certified and regular mail.</text> </paragraph> <paragraph num="E."> <text>If aggrieved by a decision of the Commission under this regulation, the Board of Trustees may request a hearing before the Commission in accordance with Regulation .10 of this chapter.</text> </paragraph> <paragraph num="F."> <text>The Commission may terminate a fund from participation in the governmental group self-insurance program for failing to comply with an order of the Commission under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Request for Hearing Before the Commission."> <paragraph num="A."> <text>A Board of Trustees aggrieved by a decision of the Commission under this chapter may request a hearing before the Commission within 15 days of the date the decision is mailed.</text> </paragraph> <paragraph num="B."> <text>A hearing shall be set as soon as practicable but no sooner than 20 days after the request is received by the Commission.</text> </paragraph> <paragraph num="C."> <text>The Board of Trustees may:</text> <paragraph num="(1)"> <text>Submit a written statement, 15 copies of which shall be served on the Commission at least 5 days before the hearing; and</text> </paragraph> <paragraph num="(2)"> <text>Appear and present oral argument and evidence on the issues contained in the hearing notice.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Board of Trustees bears the burden of persuasion in a hearing held under §A(1) of this regulation.</text> </paragraph> <paragraph num="E."> <text>The Commission shall issue a decision, which shall be served on the Board of Trustees by certified mail, return receipt requested.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Appeals to Circuit Court."> <text>The Board of Trustees may appeal an adverse decision pursuant to Labor and Employment Article, §9-409, Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-309, 9-402, and 9-404, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 14, 1983 (10:5 Md. R. 466)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective September 27, 2004 (31:19 Md. R. 1433)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 7, 2011 (38:5 Md. R. 319)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.02, Governmental Group Self-Insurance, to COMAR 14.09.14, Governmental Group Self-Insurance, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01-1C amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="15" heading="Open Meetings"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to open meetings of the Workers’ Compensation Commission at which a quorum of a majority of Commissioners is present. This chapter does not apply to proceedings of the Commission conducted in accordance with Labor and Employment Article, §§9-307 and 9-308, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Commission” means the Workers' Compensation Commission.</text> </paragraph> <paragraph num="(2)"> <text>“Open Meeting” means any meeting of the Commission required to be open to the public by the Open Meetings Act, General Provisions Article, §§3-101—3-501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Public body” has the meaning stated in General Provisions Article, §3-101(h), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public Attendance."> <paragraph num="A."> <text>At any open meeting of the Commission, the public is invited to listen and observe.</text> </paragraph> <paragraph num="B."> <text>Unless the Commission expressly invites public testimony, questions, comments, or other forms of public participation, or public participation is authorized by law, a member of the public attending an open meeting may not actively participate in the meeting.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Prohibited Conduct or Activity."> <paragraph num="A."> <text>An individual attending an open meeting of the Commission may not engage in conduct, including visual demonstrations such as the waving of placards, signs, or banners, that disrupts the session or interferes with the opportunity of members of the public to attend and observe.</text> </paragraph> <paragraph num="B."> <text>The presiding officer may:</text> <paragraph num="(1)"> <text>Order an individual who persists in conduct prohibited in §A of this regulation, or who violates another regulation concerning conduct of the open meeting, to be removed from the meeting;</text> </paragraph> <paragraph num="(2)"> <text>Request police or other assistance to restore order; and</text> </paragraph> <paragraph num="(3)"> <text>Recess the meeting while order is restored.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Recording, Photographing, and Broadcasting of Open Meetings."> <paragraph num="A."> <text>A member of the public, including a representative of the news media, may record discussions of the Commission at an open meeting by means of tape recorder or another recording device, if the device:</text> <paragraph num="(1)"> <text>Does not create excessive noise that disturbs a member of the Commission or any individual attending the meeting;</text> </paragraph> <paragraph num="(2)"> <text>Does not otherwise interfere with an individual's observation or participation in the meeting; and</text> </paragraph> <paragraph num="(3)"> <text>Is operated openly so that it is obvious to those in attendance that the meeting is being recorded.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A member of the public, including a representative of the news media, may photograph or videotape the proceedings of the Commission at an open meeting with any type of camera, if the camera:</text> <paragraph num="(1)"> <text>Is operated without excessively bright artificial light that disturbs members of the Commission or other individuals attending the open meeting;</text> </paragraph> <paragraph num="(2)"> <text>Does not create excessive noise that disturbs members of the Commission or any individual attending the meeting;</text> </paragraph> <paragraph num="(3)"> <text>Does not otherwise interfere with an individual's observation or participation in the meeting; and</text> </paragraph> <paragraph num="(4)"> <text>Is operated openly so that it is obvious to those in attendance that the meeting is being photographed or videotaped.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A representative of the news media may broadcast or televise the proceedings of the Commission at an open meeting if the equipment used:</text> <paragraph num="(1)"> <text>Is operated without excessively bright artificial light that disturbs members of the Commission or other individuals attending the open meeting;</text> </paragraph> <paragraph num="(2)"> <text>Does not create excessive noise that disturbs members of the Commission or any individual attending the meeting;</text> </paragraph> <paragraph num="(3)"> <text>Does not otherwise interfere with an individual's observation of or participation in the meeting; and</text> </paragraph> <paragraph num="(4)"> <text>Is operated openly so that it is obvious to those in attendance that the meeting is being broadcast or televised.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The presiding officer may restrict movement of a person who is using a recording device, camera, or broadcasting or television equipment if the restriction is necessary to maintain the orderly conduct of the open meeting.</text> </paragraph> <paragraph num="E."> <text>A public body of the Commission may require that an individual who intends to record, photograph, videotape, broadcast, or televise an open meeting register before the beginning of the meeting.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recordings, Photographs, Videotapes — Not Part of Record."> <text>A recording, photograph, or videotape of an open session made by a member of the public, or any transcript or copy derived from a recording, photograph, or videotape is not part of the record of any proceeding of the Commission.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§3-101—3-501; Labor and Employment Article, §9-309(a); Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 18, 2003 (30:16 Md. R. 1075)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.08, Open Meetings, to COMAR 14.09.15, Open Meetings, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective March 16, 2015 (42:5 Md. R. 487)</annotation> </annotations> </chapter> <chapter num="16" heading="Public Information Act Requests"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets out procedures under the Public Information Act for filing and processing requests to the Workers' Compensation Commission for the inspection and copying of public records of the Commission.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Policy."> <text>It is the policy of the Commission to facilitate access to the public records of the Commission, if access is allowed by law, by minimizing costs and time delays to applicants.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Chairman” has the meaning stated in Labor and Employment Article, §9-303, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Commission” means the Workers’ Compensation Commission and has the meaning stated in Labor and Employment Article, §9-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Indigent” has the meaning stated in General Provisions Article, §4-206(a)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Metadata” has the meaning stated in General Provisions Article, §4-205(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Public Access Ombudsman” means the official appointed under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, to resolve disputes under the Act.</text> </paragraph> <paragraph num="(10)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Reasonable Fee” has the meaning stated in General Provisions Article, §4-206(a)(3), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Secretary” has the meaning stated in Labor and Employment Article, §9-305(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Working day” has the meaning stated in Labor and Employment Article, §9-307, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Chairman as Official Custodian."> <text>Unless otherwise provided by law, the Chairman is the official custodian of the public records of the Commission.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Request for Public Records."> <text>Any person may request to inspect or copy public records of the Commission.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Necessity for Written Request."> <paragraph num="A."> <text>Inspection.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this chapter, the custodian shall make public records of the Commission available for inspection by an applicant without demanding a written request.</text> </paragraph> <paragraph num="(2)"> <text>The custodian shall require a written request if the custodian reasonably believes that:</text> <paragraph num="(a)"> <text>The Act or any other law may prevent the disclosure of the public record to the applicant; or</text> </paragraph> <paragraph num="(b)"> <text>A written request will materially assist the Commission in responding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Copies. If the applicant requests one or more copies of any public record of the Commission, the custodian may require a written request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Contents of Written Request."> <text>A written request shall:</text> <paragraph num="A."> <text>Contain the applicant’s contact information; and</text> </paragraph> <paragraph num="B."> <text>Reasonably identify, by brief description, the public record sought.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Addressee."> <text>A request to inspect or copy a public record of the Commission shall be addressed to the custodian of the record or to the Secretary, the Commission’s representative for public records requests as designated under General Provisions Article, §4-503, Annotated Code of Maryland. If the custodian is unknown, the request may be addressed to the Chairman.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Response to Request."> <paragraph num="A."> <text>Grant of Request.</text> <paragraph num="(1)"> <text>If the custodian decides to grant a request for inspection, the custodian shall produce the public record for inspection:</text> <paragraph num="(a)"> <text>Immediately; or</text> </paragraph> <paragraph num="(b)"> <text>Within a reasonable time period, not to exceed 30 days after the date of the request, if that period is needed to retrieve the public record and conduct any necessary review.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the custodian reasonably believes that it will take more than 10 working days to produce the public record, the custodian shall indicate in writing or by electronic mail within 10 working days after receipt of the request:</text> <paragraph num="(a)"> <text>The amount of time that the custodian anticipates it will take to produce the public record;</text> </paragraph> <paragraph num="(b)"> <text>An estimate of the range of fees that may be charged to comply with the request for public records; and</text> </paragraph> <paragraph num="(c)"> <text>The reason why it will take more than 10 working days to produce the records.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Denial of Request. If the custodian decides to deny a request for inspection, the custodian shall:</text> <paragraph num="(1)"> <text>Deny the request within 30 days after the request; and</text> </paragraph> <paragraph num="(2)"> <text>Immediately notify the applicant of the denial.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a request is denied, the custodian shall provide the applicant, at the time of the denial or within 10 working days, a written statement that gives:</text> <paragraph num="(1)"> <text>The reasons for the denial, including, for records denied under General Provisions Article, §4-343, Annotated Code of Maryland, a brief explanation of:</text> <paragraph num="(a)"> <text>Why the denial is necessary, i.e., why disclosure of the public record would be contrary to the public interest; and</text> </paragraph> <paragraph num="(b)"> <text>An explanation of why redacting information would not address the reasons for the denial;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The legal authority for the denial;</text> </paragraph> <paragraph num="(3)"> <text>Without disclosing the protected information, a brief description of the undisclosed record(s) that will enable the applicant to assess the applicability of the legal authority for the denial; and</text> </paragraph> <paragraph num="(4)"> <text>Notice of the remedies available for review of the denial.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a requested public record is not in the custody or control of the person to whom application is made, that person shall, within 10 working days after receipt of the request, notify the applicant:</text> <paragraph num="(1)"> <text>That the person does not have custody or control of the requested public record; and</text> </paragraph> <paragraph num="(2)"> <text>If the person knows:</text> <paragraph num="(a)"> <text>The name of the custodian of the public record; and</text> </paragraph> <paragraph num="(b)"> <text>The location or possible location of the public record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Any time limit imposed by §§A—C of this regulation may be extended:</text> <paragraph num="(1)"> <text>With the consent of the applicant, for an additional period of up to 30 days; and</text> </paragraph> <paragraph num="(2)"> <text>For the period of time during which a dispute initiated by the applicant is pending before the Public Access Ombudsman.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Notice to Person Potentially Affected by Disclosure."> <paragraph num="A."> <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Commission to any person who, in the judgment of the custodian, could be adversely affected by disclosure of that public record.</text> </paragraph> <paragraph num="B."> <text>The custodian may consider the views of the potentially affected person before deciding whether to disclose the public record to an applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Electronic Records."> <paragraph num="A."> <text>Except as provided in §§C and D of this regulation, the custodian shall provide an applicant with a copy of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(1)"> <text>The public record is in a searchable and analyzable electronic format;</text> </paragraph> <paragraph num="(2)"> <text>The applicant requests a copy of the public record in a searchable and analyzable electronic format; and</text> </paragraph> <paragraph num="(3)"> <text>The custodian is able to provide a copy of the public record, in whole or in part, in a searchable and analyzable electronic format that does not disclose information that is exempt from disclosure under the Act.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The custodian shall provide a portion of the public record in a searchable and analyzable electronic format if:</text> <paragraph num="(1)"> <text>Requested by the applicant; and</text> </paragraph> <paragraph num="(2)"> <text>The custodian is able to do so by using the existing functions of the database or software program that contains the searchable and analyzable data.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The custodian is not required to:</text> <paragraph num="(1)"> <text>Create or reconstruct a public record in an electronic format if the public record is not available in an electronic format;</text> </paragraph> <paragraph num="(2)"> <text>Release an electronic record in a format that would jeopardize or compromise the security or integrity of the original record or of any proprietary software in which the record is maintained; or</text> </paragraph> <paragraph num="(3)"> <text>Create, compile, or program a new public record.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The custodian may remove metadata from an electronic document before providing the electronic record to an applicant by:</text> <paragraph num="(1)"> <text>Using a software program or function; or</text> </paragraph> <paragraph num="(2)"> <text>Converting the electronic record into a different searchable and analyzable format.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Public Record Destroyed or Lost."> <text>If the person to whom application is made knows that a requested public record of the Commission has been destroyed or lost, that person shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not available; and</text> </paragraph> <paragraph num="B."> <text>Explain the reasons why the public record cannot be produced.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Availability of Judicial and Administrative Review."> <text>If the custodian denies a request to inspect or copy a public record of the Commission, the applicant may file an action for judicial enforcement under General Provisions Article, §4-362, Annotated Code of Maryland, without pursuing the remedies set forth in General Provisions Article, Subtitles 1A and 1B, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>Denial Pending Court Order.</text> <paragraph num="(1)"> <text>If, in the opinion of the Chairman, disclosure of a public record of the Commission otherwise subject to disclosure under the Act would do substantial injury to the public interest, the Chairman may temporarily deny the request to obtain a court order allowing nondisclosure.</text> </paragraph> <paragraph num="(2)"> <text>The temporary denial shall be in writing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Circuit Court Review.</text> <paragraph num="(1)"> <text>Within 10 working days after the denial, the Chairman shall apply to the appropriate circuit court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of the Chairman's complaint shall be served on the applicant in the manner provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Fees."> <paragraph num="A."> <text>Except as provided in §§B and C of this regulation, the fee schedule for copying and certifying copies of public records of the Commission is as follows:</text> <paragraph num="(1)"> <text>The fee for each copy made by a standard printer or a photocopying machine within the Commission is 25 cents per page;</text> </paragraph> <paragraph num="(2)"> <text>The fee for each copy made otherwise than by a standard printer or a photocopying machine shall be based on the actual cost of reproduction; and</text> </paragraph> <paragraph num="(3)"> <text>For a public record certified as a true copy, an additional fee of $1 per page (or if appropriate, per item) shall be charged.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Minimum Fee. A charge may not be made if the total fee is $1 or less.</text> </paragraph> <paragraph num="C."> <text>If the fee for copies or certified copies of any public record of the Commission is specifically set by a law other than the Act or this regulation, the custodian shall charge the prescribed fee.</text> </paragraph> <paragraph num="D."> <text>If the custodian cannot copy a public record within the Commission, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Commission. The custodian shall:</text> <paragraph num="(1)"> <text>Collect from the applicant a fee to cover the actual cost of reproduction; or</text> </paragraph> <paragraph num="(2)"> <text>Direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Before copying a public record of the Commission, the custodian shall estimate both the cost of reproduction and the search and preparation fee under §F of this regulation and either:</text> <paragraph num="(1)"> <text>Obtain the agreement of the applicant to pay the cost; or</text> </paragraph> <paragraph num="(2)"> <text>Demand prepayment of all or a portion of the cost.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Search and Preparation Fee.</text> <paragraph num="(1)"> <text>Except as provided in §G of this regulation, the custodian may charge a reasonable fee for time that an official or employee of the Commission spends to:</text> <paragraph num="(a)"> <text>Search for requested public records;</text> </paragraph> <paragraph num="(b)"> <text>Review requested public records for potential disclosure; and</text> </paragraph> <paragraph num="(c)"> <text>Prepare public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The custodian shall determine the fee under §F(1) of this regulation by multiplying actual time attributable to the search for, review of, and preparation of public records for inspection and/or copying by $100 per hour for clerical staff time and $200 per hour for information technology staff time.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The custodian may not charge a search or preparation fee under §F of this regulation for the first 2 hours needed to search for and prepare a public record for inspection.</text> </paragraph> <paragraph num="H."> <text>Waiver or Reduction of Fee.</text> <paragraph num="(1)"> <text>The official custodian may waive or reduce any fee set under this regulation if:</text> <paragraph num="(a)"> <text>The applicant requests a waiver; and</text> </paragraph> <paragraph num="(b)"> <text>Either:</text> <paragraph num="(i)"> <text>The custodian determines that the waiver or reduction is in the public interest; or</text> </paragraph> <paragraph num="(ii)"> <text>The applicant is indigent and files an affidavit verifying the facts that support a claim of indigency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>In determining whether a fee waiver is in the public interest, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text> </paragraph> </paragraph> <paragraph num="I."> <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or to a third party, the custodian may charge the applicant for the cost of postage or delivery.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Time and Place of Inspection."> <paragraph num="A."> <text>An applicant may inspect any public record of the Commission that the applicant is entitled to inspect during the normal working hours of the Commission.</text> </paragraph> <paragraph num="B."> <text>The inspection shall occur where the public record is located, unless the custodian, after taking into account the applicant's expressed wish, determines that another place is more suitable and convenient.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Sociological Information."> <paragraph num="A."> <text>For purposes of this regulation, “sociological information” means:</text> <paragraph num="(1)"> <text>Social Security number;</text> </paragraph> <paragraph num="(2)"> <text>Personal phone number;</text> </paragraph> <paragraph num="(3)"> <text>Personal email address; and</text> </paragraph> <paragraph num="(4)"> <text>Date of birth.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except for use in carrying out the custodian’s governmental functions or except as further provided in §C of this regulation, a custodian may not disclose under the Act, and shall deny a request for inspection or copying of, any part of a public record that contains sociological information relating to an individual.</text> </paragraph> <paragraph num="C."> <text>A custodian may disclose sociological information:</text> <paragraph num="(1)"> <text>To other public employees in the performance of their public duties;</text> </paragraph> <paragraph num="(2)"> <text>To parties to a claim filed with the Commission;</text> </paragraph> <paragraph num="(3)"> <text>To the person in interest or the agent or representative of the person in interest;</text> </paragraph> <paragraph num="(4)"> <text>With the consent of the person in interest;</text> </paragraph> <paragraph num="(5)"> <text>Pursuant to a duly issued subpoena;</text> </paragraph> <paragraph num="(6)"> <text>Pursuant to a court order;</text> </paragraph> <paragraph num="(7)"> <text>If disclosure is otherwise required by law; or</text> </paragraph> <paragraph num="(8)"> <text>If the Chairman or the Commission determines the disclosure to be in the public interest.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-101—4-601; Labor and Employment Article, §9-309(a); Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 15, 2004 (31:5 Md. R. 451)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.09.09, Public Information Act Requests, to COMAR 14.09.16, Public Information Act Requests, effective March 3, 2014 (41:4 Md. R. 304)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective March 16, 2015 (42:5 Md. R. 487)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective March 16, 2015 (42:5 Md. R. 487)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> <chapter num="17" heading="Emergency Powers of Chairman of the Commission"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>Generally. This chapter applies to situations in which the Governor has declared an emergency pursuant to Public Safety Article, Title 14, Annotated Code of Maryland, and the emergency or directives issued by the Governor pursuant to the emergency significantly affect access to or the operations of one or more Commission hearing locations or other Commission facilities or the ability of the Commission to operate effectively.</text> </paragraph> <paragraph num="B."> <text>Other Events Affecting the Commission. The authority granted specifically by this chapter generally also may be exercised, to the extent necessary, by the Chairman of the Commission in the event of a natural or other event that significantly disrupts access to or the operations of one or more Commission hearing locations or other Commission facilities or the ability of the Commission to operate effectively, but for which the Governor has not declared an emergency pursuant to Public Safety Article, Title 14, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Supplemental; Conflict. The provisions of this chapter are in addition to and supplemental to the authority of the Commission granted elsewhere in this subtitle, but, to the extent of any conflict with other provisions of this subtitle, any authority provided in this chapter shall prevail.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Coordination with Governor and Chief Judge of the Court of Appeals."> <text>Upon the declaration of any emergency by the Governor pursuant to Public Safety Article, Title 14, Annotated Code of Maryland, the Chairman of the Commission, directly or through designees, shall, to the extent practicable, consult with the Governor, the Governor’s designees, the Maryland Emergency Management Agency, other Executive Branch officials, and, as appropriate, the Chief Judge of the Court of Appeals, in order to coordinate Executive and Judicial Branch responses to the emergency as they relate to operations of the Commission.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Authority of Chairman."> <paragraph num="A."> <text>Generally. Upon a determination by the Chairman of the Commission that an emergency or other event within the scope of Regulation .01 of this chapter significantly affects access to or the operations of one or more Commission hearing locations or other Commission facilities or the ability of the Commission to operate effectively, the Chairman, by Administrative Order, may, to the extent necessary:</text> <paragraph num="(1)"> <text>Suspend the operation of rules or regulations that cannot be implemented as intended because of the emergency;</text> </paragraph> <paragraph num="(2)"> <text>Direct that hearings or meetings be conducted remotely by electronic means, video or telephone, if existing facilities become inaccessible or unusable;</text> </paragraph> <paragraph num="(3)"> <text>Identify and direct the use of alternative locations to conduct Commission business if existing facilities become inaccessible or unusable;</text> </paragraph> <paragraph num="(4)"> <text>Transfer cases pending in one hearing location that becomes inaccessible or unusable to any other hearing location;</text> </paragraph> <paragraph num="(5)"> <text>Permit claims or documents to be filed in alternate locations or by alternative means if the normal location, that is, Baltimore City, is not reasonably accessible or usable;</text> </paragraph> <paragraph num="(6)"> <text>Suspend, toll, or grant relief from time deadlines or filing requirements that otherwise would expire when there is no practical ability of a party to comply with the deadline or seek other relief;</text> </paragraph> <paragraph num="(7)"> <text>Triage claims or issues and categories of claims or issues with respect to expedited treatment;</text> </paragraph> <paragraph num="(8)"> <text>Suspend any Commission business not deemed essential;</text> </paragraph> <paragraph num="(9)"> <text>Designate other Commissioners or recall Commissioners or Commission officials to implement directives entered by the Chairman or the Governor; and</text> </paragraph> <paragraph num="(10)"> <text>Take any other appropriate action necessary to assure that essential Commission business is effectively handled by the Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Duration; Compatibility with Governor’s Directives. The authority granted in §A of this regulation may be implemented only as necessary during the emergency or its immediate aftermath and, if exercised following an emergency declared by the Governor, shall be compatible with directives and orders issued by the Governor. Promptly upon termination of the emergency, the Chairman shall review all directives issued pursuant to §A of this regulation and determine a reasonable schedule for the rescission of those directives.</text> </paragraph> <paragraph num="C."> <text>Chairman Unavailable. During any period in which the Chairman is unavailable to exercise the authority granted in §A of this regulation, that authority may be exercised by the Commissioner on the Commission most senior in length of service on the Commission, unless the Chairman has designated another Commissioner on the Commission to exercise that authority or the Governor has designated another Commissioner on the Commission to serve as Acting Chairman during that period.</text> </paragraph> <paragraph num="D."> <text>Notice and Posting of Directives. To the extent practicable, a copy of all directives and orders issued under §A of this regulation following a declaration of emergency by the Governor shall be sent to the Governor and shall be posted on the Commission website. Notices may be sent electronically and may be posted through Commission social media accounts as appropriate.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Labor and Employment Article, §§9-105(f), 9-206(d), 9-302(f)(7), 9-309(a), 9-311(c),9-314(b), 9-316(g)(2), 9-402.1(j), 9-404(a), 9-663(a)(1) and (2), 9-6A-04, 9-6A-07, 9-6A-11, 9-6A-16,9-701, 9-720(a), and 9-721(a), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective March 13, 2020 (47:9 Md. R. 475); adopted permanently effective July 16, 2020 (47:14 Md. R. 675)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A, D amended effective October 18, 2021 (48:21 Md. R. 890)</annotation> </annotations> </chapter> </subtitle> <subtitle num="10" heading="Property Tax Assessment Appeal Boards"> <chapter num="01" heading="General Regulations"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>“Administrator” means the Administrator of the property tax assessment appeal boards.</text> </paragraph> <paragraph num="B."> <text>“Appraisal” means a formal, narrative, written appraisal report submitted as evidence to a property tax assessment appeal board as documentation of a value estimate.</text> </paragraph> <paragraph num="C."> <text>“Board” means a property tax assessment appeal board for a county.</text> </paragraph> <paragraph num="D."> <text>“County” includes Baltimore City.</text> </paragraph> <paragraph num="E."> <text>“Department” means the Department of Assessments and Taxation.</text> </paragraph> <paragraph num="F."> <text>“Supervisor” means the supervisor of assessments for a county.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Authority of Administrator."> <paragraph num="A."> <text>The Administrator is responsible for the adoption of uniform regulations governing the conduct of the boards and of forms necessary for the boards to carry out their responsibilities.</text> </paragraph> <paragraph num="B."> <text>The Administrator is responsible for the budgets of the boards and shall supply to the boards the clerical and other necessary personnel. With respect to personnel, the Administrator has the authority to employ, discipline, and, if necessary, to discharge employees of the boards, according to law.</text> </paragraph> <paragraph num="C."> <text>As necessary, the Administrator shall publish notice of board meetings in the Maryland Register or in other media.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Filing of Appeals."> <paragraph num="A."> <text>A person aggrieved by the decision of the supervisor may file with the board an appeal within 30 days after the date of the final notice from the supervisor.</text> </paragraph> <paragraph num="B."> <text>The appeal shall be filed by written notice.</text> </paragraph> <paragraph num="C."> <text>The board may waive the 30-day time requirement on a showing of good cause by reason of the physical inability of the petitioner to meet the requirement.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Docket of Appeals."> <paragraph num="A."> <text>The clerk of the board shall keep a docket of all appeals, and, on the initial filing of an appeal, shall assign a docket number to the appeal. The docket is a public record, open during business hours for inspection.</text> </paragraph> <paragraph num="B."> <text>Each paper that relates to the appeal and that is filed with the board shall contain the docket number, assigned by the clerk of the board.</text> </paragraph> <paragraph num="C."> <text>When the clerk dockets an appeal, the clerk shall send to the petitioner an acknowledgement of the notice of appeal, instructions concerning the payment of taxes while the appeal is pending, information concerning hearing conduct, and the docket number.</text> </paragraph> <paragraph num="D."> <text>The clerk shall forward to the Supervisor a notice of the appeal and the docket number.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Hearings."> <paragraph num="A."> <text>Time and Place.</text> <paragraph num="(1)"> <text>The board shall set the time and place of the hearing. The hearing shall be held at a place in the county where the board is located that is convenient and accessible to the public.</text> </paragraph> <paragraph num="(2)"> <text>A request for a postponement may be made by the petitioner or the Supervisor. However, the board may not grant more than two postponements to a petitioner or to the Supervisor.</text> </paragraph> <paragraph num="(3)"> <text>The board may continue or adjourn the hearing from time to time.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice.</text> <paragraph num="(1)"> <text>The board shall give to the petitioner and to the Supervisor at least 14 days notice of the time and place of hearing. However, this section does not apply to a resumption of a hearing that has been continued according to §A(3), above, if reasonable notice of the resumption has been given. Appearance at the hearing waives notice.</text> </paragraph> <paragraph num="(2)"> <text>The board also shall give public notice of the hearing schedule by posting, at least 5 working days before the date set for hearings, the schedule of hearings at a convenient public location at or near the place of hearing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Evidence.</text> <paragraph num="(1)"> <text>The board is not bound by the technical rules of evidence.</text> </paragraph> <paragraph num="(2)"> <text>Exhibits such as maps, plats, photographs, and comparable sales are permitted.</text> </paragraph> <paragraph num="(3)"> <text>The petitioner has the burden of proof in demonstrating that the decision of the Supervisor was wrong.</text> </paragraph> <paragraph num="(4)"> <text>For any appeal in which the value of property is at issue, at least 10 days before a hearing on the appeal, the Department and the taxpayer shall exchange any written appraisals to be used for the purpose of placing a value on the property.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Rights of Parties.</text> <paragraph num="(1)"> <text>The petitioner has the right to appear in person or to be represented by any other individual. Instead of appearance in person or through a representative, the petitioner may submit to the board a written presentation. However, the board shall dismiss an appeal if the petitioner fails to appear or to submit a presentation.</text> </paragraph> <paragraph num="(2)"> <text>At the hearing, each party has the right to be heard, to present evidence material to the controversy, and to cross-examine witnesses.</text> </paragraph> <paragraph num="(3)"> <text>The Supervisor, or his designee, is required to attend the hearing.</text> </paragraph> <paragraph num="(4)"> <text>A petition of appeal may be withdrawn at any time before the presentation of testimony at the hearing. Thereafter, no request for withdrawal may be granted.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Authority of Board—Conduct.</text> <paragraph num="(1)"> <text>The board shall conduct the hearing in an informal manner.</text> </paragraph> <paragraph num="(2)"> <text>The chairman of the board is responsible for the conduct of the hearing and shall decide any questions relating to the conduct.</text> </paragraph> <paragraph num="(3)"> <text>At least two members of the board, including any alternate member assigned to hear appeals, are required to be present when the board is conducting hearings.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Authority of Board—Witnesses.</text> <paragraph num="(1)"> <text>The chairman may administer to each witness the following oath or affirmation:</text> </paragraph> <paragraph num="(2)"> <text>Any member of the board may question a witness.</text> </paragraph> <aftertext>“I do hereby solemnly declare and affirm that the testimony I shall give be the truth, the whole truth, and nothing but the truth.”</aftertext> </paragraph> <paragraph num="G."> <text>Authority of Board—Close of Hearing.</text> <paragraph num="(1)"> <text>The board may allow the submission of additional information after the presentation of all other evidence if the additional information is submitted to the board and the opposing party, in writing.</text> </paragraph> <paragraph num="(2)"> <text>The hearing shall close after presentation of all evidence or, if the board authorizes additional information, on the final date set for submission of the additional information.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Contact with Board Members and Parties.</text> <paragraph num="(1)"> <text>Except as provided in §H(2), below, a party or his representative may not communicate directly with a member of the board concerning the appeal.</text> </paragraph> <paragraph num="(2)"> <text>A party or his representative shall communicate with a member of the board only by either of the following means:</text> <paragraph num="(a)"> <text>Written communication submitted to the chairman of the board and served on the other parties or their representatives;</text> </paragraph> <paragraph num="(b)"> <text>Oral communication with the board member in the presence of the other parties or their representatives.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any person aware of any communication with a board member in violation of §H(1), above, immediately shall notify the Administrator. If, after investigation, the Administrator determines that the communication has prejudiced the hearing, he shall require the selection of a new board panel to hear the appeal.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Conflict of Interest. A board member, who has any connection with or interest in any property which is the subject of a hearing before the board or whose family has any connection with or interest in any property which is the subject of a hearing, shall disqualify himself and shall immediately notify the Administrator of this conflict of interest.</text> </paragraph> <paragraph num="J."> <text>Acceptance of Gifts. A board member may not accept a present, gift, gratuity, or consideration of any kind from a person or entity connected with a hearing before the board.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Board Decision."> <paragraph num="A."> <text>Within 30 days after the close of the hearing, the board shall send to the petitioner and to the Supervisor a written decision that concisely states its findings and the bases for the findings on the appeal.</text> </paragraph> <paragraph num="B."> <text>The decision shall include a statement that advises the petitioner of the right to appeal within 30 days to the Maryland Tax Court.</text> </paragraph> <paragraph num="C."> <text>The decision shall be made by affirmative vote of at least two members of the board, including any alternate member, who were present at the hearing.</text> </paragraph> <paragraph num="D."> <text>If the board dismisses any appeal according to Regulation .05D(1), above, the board shall send to the petitioner a notice of the dismissal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Rehearings."> <text>The board may not rehear any appeal.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Computation of Time."> <text>The computation of time shall be in accordance with the Maryland Rules.</text> </regulation> <annotations> <annotation type="Authority">Tax-Property Article, §3-108, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 25, 1978 (5:17 Md. R. 1331)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective December 25, 1989 (16:25 Md. R. 2714)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective September 5, 1988 (15:18 Md. R. 2152)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended effective September 5, 1988 (15:18 Md. R. 2152)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective December 29, 1978 (5:26 Md. R. 1930); April 20, 1979 (6:8 Md. R. 658); September 5, 1988 (15:18 Md. R. 2152)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective September 5, 1988 (15:18 Md. R. 2152);</annotation> <annotation type="History" subtype="Administrative History">December 25, 1989 (16:25 Md. R. 2714)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D amended effective January 11, 1980 (7:1 Md. R. 45)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05F amended effective March 9, 1979 (6:5 Md. R. 446);</annotation> <annotation type="History" subtype="Administrative History">September 5, 1988 (15:18 Md. R. 2152)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05I amended effective December 29, 1978 (5:26 Md. R. 1930)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05J adopted effective December 29, 1978 (5:26 Md. R. 1930)</annotation> </annotations> </chapter> </subtitle> <subtitle num="11" heading="Program Services"> <chapter num="01" heading="Attendant Care Program"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The Attendant Care Program provides financial reimbursement to assist individuals with severe chronic or permanent physical disabilities who require attendant care services or ongoing additional supports to direct their own care and select their own service providers. Reimbursement may be available for attendant care services or ongoing additional supports that are provided in the home, school, workplace, or other community locations.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Annual adjusted gross income” means the total taxable and nontaxable annual income, less 100 percent of total unreimbursed medical expenses as defined by COMAR 07.03.17.33, of:</text> <paragraph num="(a)"> <text>The eligible applicant; and</text> </paragraph> <paragraph num="(b)"> <text>The applicant's spouse.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Applicant” means an individual who has submitted an application to participate in the Program in order to receive reimbursement of the cost of attendant care services or ongoing additional supports.</text> </paragraph> <paragraph num="(3)"> <text>“Attendant” means an individual or provider agency who provides attendant care services to a participant.</text> </paragraph> <paragraph num="(4)"> <text>“Attendant care agreement” means a written agreement developed by the Department that:</text> <paragraph num="(a)"> <text>Provides:</text> <paragraph num="(i)"> <text>The effective date for reimbursable services; and</text> </paragraph> <paragraph num="(ii)"> <text>The terms for reimbursement under the Program; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is signed by the participant and the Program Director at the time of initial enrollment and at the request of the Program Director if any circumstances change for the individual or the program.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Attendant care services” means any of the following services for an individual, which are deemed necessary by an attending physician or by a registered nurse or certified nurse practitioner serving the individual including:</text> <paragraph num="(a)"> <text>Activities of daily living such as:</text> <paragraph num="(i)"> <text>Dressing;</text> </paragraph> <paragraph num="(ii)"> <text>Preparing food and assisting with eating;</text> </paragraph> <paragraph num="(iii)"> <text>Bathing and personal hygiene;</text> </paragraph> <paragraph num="(iv)"> <text>Assisting with routine bodily functions, including bowel and urinary care; and</text> </paragraph> <paragraph num="(v)"> <text>Moving into, out of, or turning in bed; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Instrumental activities of daily living such as:</text> <paragraph num="(i)"> <text>Laundering and other clothing care;</text> </paragraph> <paragraph num="(ii)"> <text>Cleaning house; and</text> </paragraph> <paragraph num="(iii)"> <text>Performing other services of daily care, including shopping and transportation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Attending physician” means an individual who is authorized to practice medicine in this State and who has provided medical treatment to an applicant.</text> </paragraph> <paragraph num="(7)"> <text>“Certification of service form” means a document designated by the Department that verifies the participant's receipt of attendant care services for billing purposes.</text> </paragraph> <paragraph num="(8)"> <text>“Department” means the Department of Disabilities.</text> </paragraph> <paragraph num="(9)"> <text>“Duplicative services” means comparable care services or ongoing additional supports provided through any other federal or State assistance programs, such as but not limited to the programs described in COMAR 07.06.12, 10.09.04, or 10.09.20.</text> </paragraph> <paragraph num="(10)"> <text>“Episodic” means when an impairment or medical condition varies in frequency, intensity and duration and renders the person unable to engage in major life activities when onset.</text> </paragraph> <paragraph num="(11)"> <text>“Financial assistance” means reimbursement by the Department of the eligible percentage of the cost paid by a participant for attendant care services or ongoing additional supports.</text> </paragraph> <paragraph num="(12)"> <text>“Fiscal payment schedule” means the list of 12 1-month periods, established annually by the Program Director, in which Attendant Care Program benefits are provided, and participants are required to submit certification of service forms and receipts for reimbursement processing.</text> </paragraph> <paragraph num="(13)"> <text>“Home visit” means a visit by the Program Director or designee to the home of the Program participant.</text> </paragraph> <paragraph num="(14)"> <text>“Ongoing additional supports” means a continual support that increases an eligible individual’s independent performance of an essential activity of daily living, self-care, or mobility, and is requested by a Participant and approved by the Department.</text> </paragraph> <paragraph num="(15)"> <text>“Participant” means an eligible and enrolled individual in the Program.</text> </paragraph> <paragraph num="(16)"> <text>“Permanent physical disability” means a medical condition that substantially affects an individual's ability to perform physical activities such as walking, standing, transferring, seeing, or hearing.</text> </paragraph> <paragraph num="(17)"> <text>“Program” means the Attendant Care Program.</text> </paragraph> <paragraph num="(18)"> <text>“Program Director” means the individual designated by the Secretary to oversee the day-to-day operations of the Program.</text> </paragraph> <paragraph num="(19)"> <text>“Review of financial or programmatic eligibility” means initiating verification that the participant remains eligible within 1 calendar year since the completion of the most recent review or more frequently if requested by the Department or the individual.</text> </paragraph> <paragraph num="(20)"> <text>“Severe chronic disability” means a recurring medical condition that substantially limits an individual's mobility or ability to perform activities of daily living, instrumental activities of daily living, or self-care:</text> <paragraph num="(a)"> <text>Permanently; or</text> </paragraph> <paragraph num="(b)"> <text>On an ongoing basis or episodically, as defined by Regulation .02B(10) of this chapter.</text> </paragraph> </paragraph> <paragraph num="(21)"> <text>“Sliding reimbursement scale” means the percentage breakdown of maximum financial assistance afforded to a Program participant based upon adjusted gross income and household size.</text> </paragraph> <paragraph num="(22)"> <text>“Standard assessment of functional capability” means the document designated by the Department to evaluate an applicant's:</text> <paragraph num="(a)"> <text>Ability to perform essential activities of daily living and self-care;</text> </paragraph> <paragraph num="(b)"> <text>Mobility;</text> </paragraph> <paragraph num="(c)"> <text>Need for assistance with instrumental activities of daily living; and</text> </paragraph> <paragraph num="(d)"> <text>Need for attendant care services or ongoing additional supports.</text> </paragraph> </paragraph> <paragraph num="(23)"> <text>“Receipts” means proof of payment made for an approved service designated by the Department.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility."> <paragraph num="A."> <text>To be eligible for the Program, an applicant:</text> <paragraph num="(1)"> <text>Shall be a resident of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Shall be at least 18 years old and younger than 65 years old at the time of initial enrollment in the Program;</text> </paragraph> <paragraph num="(3)"> <text>Shall be determined by the applicant's attending physician, registered nurse, or certified nurse practitioner to have a severe chronic or permanent physical disability that:</text> <paragraph num="(a)"> <text>Precludes or impairs the independent performance of essential activities of daily living, instrumental activities of daily living, self-care, or mobility as determined by the standard assessment of functional capability form; and</text> </paragraph> <paragraph num="(b)"> <text>Is subject to eligibility review at a frequency determined by the Department;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>May not have an annual adjusted gross income greater than $119,999.00;</text> </paragraph> <paragraph num="(5)"> <text>May not be receiving duplicative services as defined in Regulation .02B of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Shall meet the requirements of Regulation .04B(1) or (2) of this chapter; and</text> </paragraph> <paragraph num="(7)"> <text>Shall agree to abide by the Program requirements by signing an attendant care agreement form at the time of initial enrollment and at the request of the Program Director if any circumstances change for the individual or the Program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Program Director, or designee, shall initiate an annual review of financial or programmatic eligibility for each participant at least once every 12 months from completion of the last review, or more frequently if needed.</text> </paragraph> <paragraph num="C."> <text>Participation in the Program may be denied to eligible applicants in accordance with Regulation .04 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Limitations on Service and Participation in the Program."> <paragraph num="A."> <text>The Program Director shall limit Program participation to the number of participants whom the Program's budget can serve. If sufficient funds are not available, the Department may limit the rate of payment under the sliding reimbursement scale.</text> </paragraph> <paragraph num="B."> <text>The Program Director shall limit Program participation to achieve the following demographic:</text> <paragraph num="(1)"> <text>At least 50 percent of the participants shall be:</text> <paragraph num="(a)"> <text>Self-employed or competitively employed with compensation;</text> </paragraph> <paragraph num="(b)"> <text>Actively seeking employment and reasonably be expected to become employed within 6 months of the date of application approval, which the Program Director may extend once for an additional 6 months; or</text> </paragraph> <paragraph num="(c)"> <text>Attending an institution of postsecondary, higher education, or apprenticeship training program; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Not more than 50 percent of the participants shall be:</text> <paragraph num="(a)"> <text>At risk of placement in a nursing home, as certified by the attending physician, if attendant care services are not received in the community; or</text> </paragraph> <paragraph num="(b)"> <text>Residents of a nursing facility or similar institution who are seeking to transition into the community and will be capable of living in the community if attendant care services are received.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Program Director shall seek to achieve the demographic in §B absent a limited or situational waiver from the Secretary.</text> </paragraph> <paragraph num="D."> <text>Notwithstanding the above, an applicant found ineligible or properly disenrolled from the Program shall be required to observe a waiting period prior to reapplication of not less than:</text> <paragraph num="(1)"> <text>1 year for reason of disability or financial eligibility; or</text> </paragraph> <paragraph num="(2)"> <text>3 years upon a finding of fraud or misuse of program funds.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Applicants to the Program shall be encouraged to complete an application for medical assistance and utilize personal care services under the following programs, if applicable:</text> <paragraph num="(1)"> <text>Examples of such services or programs include:</text> <paragraph num="(a)"> <text>Community Personal Assistance Services;</text> </paragraph> <paragraph num="(b)"> <text>Community First Choice Program; or</text> </paragraph> <paragraph num="(c)"> <text>A Home and Community-Based Waiver.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Program is entitled to evaluate whether such services are duplicative.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Application Process."> <paragraph num="A."> <text>An applicant shall apply for financial assistance by submitting a completed and signed Program application, to include the standard assessment of functional capability, to the Department.</text> </paragraph> <paragraph num="B."> <text>The Program Director or designee shall determine an applicant's eligibility in accordance with Regulation .03 of this chapter and the regulations governing this Program as a whole.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Priority for Approval of Applications."> <paragraph num="A."> <text>The Program Director shall approve applications and enroll eligible applicants for financial assistance based upon the availability of Program funds.</text> </paragraph> <paragraph num="B."> <text>Waiting List.</text> <paragraph num="(1)"> <text>The Program Director shall establish a waiting list of eligible applicants if:</text> <paragraph num="(a)"> <text>Program funds are not available; or</text> </paragraph> <paragraph num="(b)"> <text>The demographics of the Program do not meet the requirements under Regulation .04B of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>As funds allow, the Program shall enroll applicants on the waiting list generally in the following order:</text> <paragraph num="(a)"> <text>Individuals meeting the criteria under Regulation .04B(1) of this chapter in order of the earlier application approval date; and</text> </paragraph> <paragraph num="(b)"> <text>Individuals meeting the criteria under Regulation .04B(2) of this chapter in order of the earlier application approval date.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>With the explicit written consent of the Secretary, and after obtaining a waiver of the proportionality requirement set forth in Regulation .04B(1) of this chapter as necessary, in limited emergency circumstances, the Program Director may prioritize certain individuals meeting the criteria under Regulation .04B(2)(a) of this chapter before other individuals meeting the criteria under .04B(2)(a) of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Payment."> <paragraph num="A."> <text>A participant shall submit a signed certification of service form and receipts for attendant care services or ongoing additional supports in accordance with the Program's fiscal payment schedule.</text> </paragraph> <paragraph num="B."> <text>Reimbursement shall be made in compliance with the attendant care agreement and Regulation .04A of this chapter.</text> </paragraph> <paragraph num="C."> <text>The Department may return improperly completed forms to the participant without making payment.</text> </paragraph> <paragraph num="D."> <text>The Department may return the certification of service form to the participant without making payment if more than 2 months have passed since the date of service.</text> </paragraph> <paragraph num="E."> <text>The Department reserves the right to deny reimbursement of expenses that it determines are not representative of ongoing additional supports or attendant care services.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Participant's Responsibilities."> <paragraph num="A."> <text>A participant shall:</text> <paragraph num="(1)"> <text>Select, hire, train, supervise, terminate, and pay the attendant, including payment of applicable federal and State employment taxes;</text> </paragraph> <paragraph num="(2)"> <text>Maintain accurate records of hours and days that attendant care services are provided;</text> </paragraph> <paragraph num="(3)"> <text>Prepare and submit all billing forms in accordance with the Fiscal Payment Schedule;</text> </paragraph> <paragraph num="(4)"> <text>Reimburse the Department for any overpayment;</text> </paragraph> <paragraph num="(5)"> <text>Reimburse the Department for any outstanding advanced payment;</text> </paragraph> <paragraph num="(6)"> <text>Submit all required documentation to determine continued eligibility for participation in the Program at least once every 12 months, or more often as requested by the Program Director; and</text> </paragraph> <paragraph num="(7)"> <text>Comply with the attendant care agreement requirements, and provide a signed copy to the Department at the initial eligibility determination and at the request of the Department at any time thereafter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A participant shall employ an attendant who is 18 years old or older, and who is not a spouse or the representative payee of the participant.</text> </paragraph> <paragraph num="C."> <text>A participant shall notify the Program Director within 14 days of any changes in circumstances that affect eligibility for the Program for financial assistance</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Participant's Rights."> <text>Pursuant to Human Services Article, §1-201, Annotated Code of Maryland, the Program may not release information about a participant or an applicant.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Quality Assurance Plan."> <paragraph num="A."> <text>The Department shall establish a quality assurance plan to review Program administration and ensure compliance with this chapter.</text> </paragraph> <paragraph num="B."> <text>Home visits may be conducted as a part of the quality assurance plan.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Termination."> <text>The Secretary of the Department or a designee of the Secretary may terminate enrollment if:</text> <paragraph num="A."> <text>A participant no longer meets the eligibility requirements;</text> </paragraph> <paragraph num="B."> <text>A participant refuses to comply with the requirements of this chapter; or</text> </paragraph> <paragraph num="C."> <text>Sufficient Program funds are not available.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Financial Assistance."> <paragraph num="A."> <text>The Program Director shall establish a sliding reimbursement scale to determine a participant's reimbursement rate.</text> </paragraph> <paragraph num="B."> <text>The participant's reimbursement rate shall be based on:</text> <paragraph num="(1)"> <text>The participant's adjusted annual gross income;</text> </paragraph> <paragraph num="(2)"> <text>The number of persons dependent on household income including the participant's spouse, and minors younger than 18 years old; and</text> </paragraph> <paragraph num="(3)"> <text>The participant's cost of attendant care services.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A participant eligible in the category set forth in Regulation .04B(1) of this chapter shall pay a minimum of 2 percent of the cost of attendant care services, unless the Program Director determines that the minimum copayment causes the participant financial hardship and issues a written waiver of the copayment.</text> </paragraph> <paragraph num="D."> <text>A participant eligible in the category set forth in Regulation .04B(2) of this chapter shall pay a minimum of 5 percent of the cost of attendant care services, unless the Program Director determines that the minimum copayment causes the participant financial hardship and issues a written waiver of the copayment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Appeals."> <paragraph num="A."> <text>An applicant or participant may appeal eligibility and termination determinations by requesting an appeal hearing which shall be held in accordance with COMAR 28.02.01.</text> </paragraph> <paragraph num="B."> <text>If the Program notifies an applicant or participant of an action to deny, delay, suspend, reduce, or terminate assistance, the Program Director or designee shall give written notification of the right to appeal and the procedures for requesting an appeal hearing to the applicant or participant.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Human Services Article, §§7-401—7-406, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 21, 2009 (36:19 Md. R. 1437)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A, B amended effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C,D, E adopted effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13C amended effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13D adopted effective August 18, 2014 (41:16 Md. R. 947)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> </subtitle> <subtitle num="12" heading="Tax Court"> <chapter num="01" heading="Rules of Procedure"> <regulation prefix="Regulation" num=".01" heading="Petition of Appeal—Form and Content*."> <text>FOOTNOTE — *Forms of Petitions will be supplied by the Clerk's office on request.</text> <paragraph num="A."> <text>All proceedings shall be initiated by filing with the Court a Petition of Appeal. In an appeal by a taxpayer, the Supervisor of Assessments, the State Department of Assessments and Taxation, or other initial assessing or taxing authority, as the case may be, shall be designated as Respondent. In an appeal by an assessing or taxing authority or representative thereof, the taxpayer shall be designated as Respondent.</text> </paragraph> <paragraph num="B."> <text>There shall be no fee for filing a Petition in the Court.</text> </paragraph> <paragraph num="C."> <text>Each paragraph of the Petition shall be separately numbered. It shall set forth succinctly the nature of the case, the facts involved, and the question or questions to be reviewed by the Court, as provided by Tax General Article, §13-516(a), Annotated Code of Maryland. Where applicable, the Petition shall also set forth that the assessment or classification appealed from is illegal, specifying the ground or alleged illegality, or that it is erroneous by reason of overvaluation or undervaluation, or that the assessment is unequal in that it has been made at a higher proportion of value than other property of the same class or the Petition may assign any other errors which exist in the particular case for which an appeal is allowed, and on account of which the Petitioner claims to be injured, as provided by Tax Property Article, §14-512, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>One complete, accurately conformed copy of each Petition of Appeal shall be filed with the signed original.</text> </paragraph> <paragraph num="E."> <text>A letter or other written communication from the party wishing to appeal or his representative, although not conforming to the provisions of §C, may be considered an informal Petition if it is filed within the statutory time for filing an appeal. In such event the Court by order shall require that a formal Amended Petition of Appeal be filed which complies with the provisions of this Rule, or may require such explanations, amendments and/or additions as may be necessary or desirable, so that the case may be properly tried and determined. If such order is not complied with within the time fixed by the Court in said order, the proceedings may be dismissed on the Court's own motion or on motion of the opposing party.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Responsive Pleading—Form and Content—30 Days."> <paragraph num="A."> <text>Respondent shall, within thirty (30) days after being served by mail or otherwise with a copy of a formal Petition of Appeal by the Clerk, file with the Court an Answer, Motion to Dismiss, Notice of Intention to Defend, or other pleading. In the event that the Respondent's first pleading is other than an Answer, or Notice of Intention to defend, the Court shall, in its order ruling on such other pleading, specify the time within which an Answer shall be filed.</text> </paragraph> <paragraph num="B."> <text>An Answer shall be divided into paragraphs which shall be separately numbered, and insofar as possible, each paragraph shall contain a separate and distinct averment or denial. An Answer shall specifically admit, deny or explain the facts alleged by the Petitioner, unless the Respondent is without knowledge thereof, in which event it shall be so stated; and such statement shall operate as a denial. All the material allegations in the Petition of Appeal shall be answered. The proceeding shall be deemed at issue when an Answer has been filed.</text> </paragraph> <paragraph num="C."> <text>A Notice of Intention to Defend shall notify the Court of the Respondent's intention to defend this assessment appealed. This pleading may only be filed in response to a Petition of Appeal which concerns the assessment of real property. The proceeding shall be deemed at issue when such Notice has been filed.</text> </paragraph> <paragraph num="D."> <text>Prior to filing, or concurrently therewith, a copy of the Answer or other pleading shall be served by mail or otherwise on the opposing side and the Answer or other pleading shall contain a statement that the copy of said Answer or other pleading has been mailed to or otherwise served on the opposing side.</text> </paragraph> <paragraph num="E."> <text>One complete, accurately conformed copy of each pleading shall be filed with the signed original.</text> </paragraph> <paragraph num="F."> <text>All Motions filed with the Clerk in any proceeding, shall be considered by the Court Ex Parte unless a hearing is requested in the Motion, or in an Answer thereto. The Court may in its discretion, require a hearing on any Motion.</text> </paragraph> <paragraph num="G."> <text>Should a hearing on a Motion be requested by a party or required by the Court, each side shall be limited to fifteen (15) minutes of argument unless the Court is notified in writing ten (10) days prior to the scheduled hearing that additional time is necessary.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Signatures, Captions, etc."> <paragraph num="A."> <text>Petitions of Appeal, Answers and other pleadings filed with the Court shall be signed by the Petitioner or Respondent, as the case may be, or by an attorney admitted to practice before the Court of Appeals of Maryland representing such Petitioner or Respondent. A pleading by an individual taxpayer shall be signed by the taxpayer himself or by his attorney. A pleading by a partnership shall be signed by the attorney representing the same, or by a member of the partnership. A pleading by a corporation shall be signed by the attorney representing the same or by an officer of the corporation. The person signing a pleading shall type or print his name, capacity, mailing address and telephone number beneath his signature. The Court shall be notified in writing of any change in address.</text> </paragraph> <paragraph num="B."> <text>All papers filed with the Court must be in clear and legible form. Printed forms for Petitions furnished by the Clerk may be used, but are not compulsory.</text> </paragraph> <paragraph num="C."> <text>All papers shall be bound together at the side only, and shall have no backs or covers. The left-hand margin shall be at least one and one-half inches wide.</text> </paragraph> <paragraph num="D."> <text>All papers shall have a caption and a signature.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Where and When to File Papers."> <text>Papers in connection with any appeal to this Court shall be mailed or otherwise delivered to the Clerk. *</text> <text>-----------FOOTNOTE----------- *The Clerk's Office on the fifteenth (15th) floor at 301 West Preston Street, Suite 1513, Baltimore, Maryland 21201 is open daily from 8:30 A.M. to 4:30 P.M., Mondays through Fridays, except for legal holidays. The Clerk's phone number is 410-767-4830. ---------</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Joinder of Appeals as to Real Property."> <text>Where two or more real properties are in the same ownership, and within the same taxing jurisdiction, they may be included in a single Petition of Appeal whenever there exists any substantial question of law or fact common to all the properties. The Court, however, may order separate Petitions filed if in the Court's opinion the issues involved may not conveniently be disposed of in the same proceeding. Where properties are not in the same ownership, they must be made the subject of separate Petitions of appeal, even though common questions of law or fact may be involved.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Docketing—Summons—Copies."> <paragraph num="A."> <text>Upon receipt of a Petition by the Clerk, the proceeding will be entered upon the docket and will be assigned a number and the parties will be notified thereof. The docket number shall be placed by the parties on all papers thereafter filed in the proceeding and referred to in all correspondence with the Court. Pursuant to Tax General Article, §13-520(a), Annotated Code of Maryland, upon receipt of a Petition, the Clerk shall forthwith issue a summons and subpoena duces tecum to the assessing or taxing authority or other agency appealed from, requiring it to produce at the hearing the record of the proceedings, as well as all maps, plats, documents and other papers connected with the record, or a properly certified copy thereof.</text> </paragraph> <paragraph num="B."> <text>The Clerk shall send a copy of the Petition to the Respondent as designated in Regulation .01A, and to the Attorney General in the event of an appeal by the taxpayer, and shall upon request, supply a copy of the Petition to the assessing or taxing authority or other agency appealed from.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Notice of Reliance on Other Properties—Service of List—Ten Days."> <paragraph num="A."> <text>In every case where for the purpose of showing equality or inequality of assessment or for any other relevant purpose, either party proposes to offer evidence concerning any properties (including any properties to be referred to, used or relied upon by an expert witness as a basis for his opinion), other than the property which is the subject of the appeal, as to:</text> <paragraph num="(1)"> <text>Sales thereof; and/or</text> </paragraph> <paragraph num="(2)"> <text>Assessment thereon; and/or</text> </paragraph> <paragraph num="(3)"> <text>Construction costs thereof; and/or</text> </paragraph> <paragraph num="(4)"> <text>Income therefrom said party shall at least ten (10) days before the date set for hearing, serve by mail or otherwise on the opposing side an itemized list of such other properties, clearly identifying them by their street addresses, if any, or by other means, and giving the name of the owner or reputed owner.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the purpose is to show a sale of any such property, the date of sale and sale price shall be stated.</text> </paragraph> <paragraph num="C."> <text>If the purpose is to show the assessment on any such property the amount of the assessment and the year or years in which said assessment was applicable shall be given.</text> </paragraph> <paragraph num="D."> <text>If the purpose is to show construction costs, the amount of said costs shall be given and also the year or years in which construction was begun and completed.</text> </paragraph> <paragraph num="E."> <text>If the purpose is to show income derived, a detailed statement of the income and expenses shall be given for the year or years in which the said income was received.</text> </paragraph> <paragraph num="F."> <text>The notice required by this Rule must be given, even though the same properties were referred to at the hearing before the assessing authority from which the appeal is taken to the Maryland Tax Court.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Continuances."> <text>Once a case has been set down for a hearing, a request for a continuance shall be granted only upon written request and order of Court, except that the Court may, for good cause shown, waive the requirement of a written request and order. The written request shall set forth in detail the reasons for said request, and the Court shall have the right to require such documentary proof of said reasons as it may deem proper. Prior to filing, or concurrently therewith, a copy of said request shall be served by mail or otherwise on the opposing side and the request shall contain a statement that a copy of said request has been mailed to or otherwise served on the opposing side.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Summonses and Subpoenas."> <paragraph num="A."> <text>An original and two signed copies of requests for summonses and/or subpoenas duces tecum shall be delivered to the Clerk at least five (5) working days before the date the case is scheduled for trial. The signature of such request shall be taken as a guarantee of any Sheriff's cost for making service of the summons or subpoena.</text> </paragraph> <paragraph num="B."> <text>Failure to obey a summons or subpoena of this Court, lawfully issued and served, may subject the person guilty of such failure to contempt proceedings pursuant to Tax General Article, §13-522, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Consolidation."> <paragraph num="A."> <text>When Petitions involving a common question of law or fact are pending, the Court, on its own motion, or upon application of any party for good cause shown, may order a joint hearing or trial of any or all of the matters in issue; order any or all of the cases consolidated for trial; and make such orders governing the proceedings as may tend to avoid unnecessary costs or delay.</text> </paragraph> <paragraph num="B."> <text>When subsequent petitions involve the same issues as a petition previously filed, the Court may order said subsequent petitions withheld from the hearing docket to abide the ultimate result of the hearing of the prior petition, or any appeals therefrom.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Conduct of Hearings, Briefs, and Memoranda of Grounds for Decision."> <paragraph num="A."> <text>As provided by Tax General Article, §13-523, Annotated Code of Maryland, proceedings before the Court shall be de novo, and shall be conducted in a manner similar to the proceedings in the Courts of Equity in this State. Opening statements and closing arguments shall be permitted each party, the Court reserving the right to determine the time limit thereof. Each party shall have the right to introduce testimony, offer exhibits and cross-examine adverse or hostile witnesses. The Court shall not be bound by the technical rules of evidence, but the testimony of witnesses must be responsive to questions asked and must be relevant to the issues of the case. Each party may submit a brief or written memorandum within such time after the hearing as may be determined by the Court. An original of any brief or memorandum, together with a copy for each judge who participated in the hearing, shall be filed with the Clerk, and a copy shall be served by mail or otherwise on the opposing side.</text> </paragraph> <paragraph num="B."> <text>The Court shall upon motion of any party, made at any time prior to the expiration of the time for appeal, dictate to the court stenographer or reporter, or prepare and file with the clerk a brief statement of the grounds for its decision.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Computing Time."> <text>In computing any period of time prescribed or allowed by these Rules the day of the act or event after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included unless:(1) it is a Saturday, Sunday or a legal holiday, in which event the period runs until the end of the next day which is neither a Saturday, Sunday or a holiday; (2) the act to be done is the filing of some paper in this Court, and the office of the Clerk of this Court on said last day of the period is not open, or is closed for a part of a day, in which event, the period runs until the end of the next day which is neither a Saturday, Sunday, a legal holiday, or a day on which the said office is not open the entire day during ordinary business hours. When the period of time allowed is more than seven (7) days, intermediate Saturdays, Sundays and holidays shall be considered as other days; but if the period of time is seven (7) days or less, intermediate Saturdays, Sundays, and holidays shall not be counted in computing the period of time.</text> </regulation> <regulation prefix="Regulation" num=".13" heading="Pretrial Conference."> <text>In any proceeding, the Court may in its discretion direct the parties or their attorneys to appear before it, for a pretrial conference to consider such matters as may aid in the disposition of the case.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Further Appeals."> <paragraph num="A."> <text>If any party to a proceeding shall appeal from a final order of this Court to the Circuit Court of any county or to the Baltimore City Court of Baltimore City, such party shall be required to order and furnish the Maryland Tax Court with a transcript of the testimony and shall be charged with the expense of such transcription, unless the parties shall agree upon a statement in lieu of record as provided by Rule 7-206 of the Maryland Rules of Procedure.</text> </paragraph> <paragraph num="B."> <text>In all cases of appeal from the Court's final order, the Court shall file and include in the record of the case its findings of fact and conclusions of law on which it based its decision and order.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Hearing Examiners."> <paragraph num="A."> <text>The Court may assign all cases involving the assessment of Real Property to a Hearing Examiner.</text> </paragraph> <paragraph num="B."> <text>The Hearing Examiners shall hear the evidence presented and promptly thereafter provide the Clerk with a written recommendation.</text> </paragraph> <paragraph num="C."> <text>Copies of the recommendation shall be sent by mail to all parties of record, before submission to the Court. Within 15 days of the date of mailing, a party may file Exceptions with the Clerk, with a copy to be served by mail or otherwise on the opposing side, or sides, concurrently. Within that period or within 15 days after service (date of mailing plus 3 days) of the first Exceptions, whichever is later, any other party may file an Exception or Response. An Exception or Response is to be in writing and is to set forth the asserted error with particularity. Any matter not specifically set forth in the Exceptions is waived unless the Court finds that justice requires otherwise. The Court may not consider the Exceptions filed by any party who fails to comply with any of the above procedures.</text> </paragraph> <paragraph num="D."> <text>The recommendation will be submitted to the Court after the time period allowed for the filing of Exceptions in §C of this regulation. The Court, in its discretion, may require a hearing.</text> </paragraph> <paragraph num="E."> <text>The Court shall either adopt, modify or reject the recommendation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Tax General Article §3-105, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 1, 1977 (4:16 Md. R. 1247)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 adopted effective July 13, 1977</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective January 27, 1986 (13:2 Md. R. 139)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 repealed and new Regulation .04 adopted as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .09C adopted as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .11A amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .15C, D amended as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 adopted as an emergency provision effective December 18, 2020 (48:2 Md. R. 46); emergency provision expired effective June 11, 2021</annotation> </annotations> </chapter> </subtitle> <subtitle num="13" heading="Northeast Maryland Waste Disposal Authority"> <chapter num="01" heading="Procurement Procedures"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The procedures established in this chapter are applicable to the procurement of supplies, services, and construction including leasing personal property as a lessee. The Authority is not subject to the State Finance and Procurement Article, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Conflict of Interest."> <text>The members of the Authority, its Executive Director, and staff members are required to comply with the conflict of interest provisions found in the General Provisions Article, Title 5, Subtitle 5, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Scope."> <paragraph num="A."> <text>This chapter does not apply to the following:</text> <paragraph num="(1)"> <text>Contracts with or procurement from:</text> <paragraph num="(a)"> <text>A State agency or unit,</text> </paragraph> <paragraph num="(b)"> <text>A political subdivision of the State,</text> </paragraph> <paragraph num="(c)"> <text>An agency of a political subdivision of the State,</text> </paragraph> <paragraph num="(d)"> <text>A government, including the government of another state or the United States,</text> </paragraph> <paragraph num="(e)"> <text>An agency or political subdivision of the State, or</text> </paragraph> <paragraph num="(f)"> <text>A bistate, multistate, bicounty, or multicounty governmental agency;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Acquisition of real property or a permanent or temporary interest in real estate;</text> </paragraph> <paragraph num="(3)"> <text>Disposal of real or personal property; or</text> </paragraph> <paragraph num="(4)"> <text>Contracts or purchases that were originally procured by a federal, state or local government agency or entity, pursuant to the procurement laws and regulations of the procuring entity.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Northeast Maryland Waste Disposal Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Board” means the Board of Directors of the Authority.</text> </paragraph> <paragraph num="(3)"> <text>“Executive Director” means the Executive Director of the Northeast Maryland Waste Disposal Authority.</text> </paragraph> <paragraph num="(4)"> <text>“Person” has the meaning stated in Natural Resources Article, §3-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>Proposal.</text> <paragraph num="(a)"> <text>“Proposal” means the response by an offeror to a request for proposals to obtain supplies, services, or construction.</text> </paragraph> <paragraph num="(b)"> <text>“Proposal” may include, without limitation, an offeror's price, description of technical expertise, work experience, and other information requested in the solicitation.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Responsible” means a person who has the capability in all respects to dutifully perform fully the contract requirements, and the integrity and reliability that ensures good faith performance.</text> </paragraph> <paragraph num="(7)"> <text>“Responsive” means a bid or offer submitted in response to a solicitation that conforms in all material respects to the requirements contained in the solicitation.</text> </paragraph> <paragraph num="(8)"> <text>“Services” means the rendering of time, effort, or work, rather than the furnishing of a specific physical product other than reports incidental to the required performance.</text> </paragraph> <paragraph num="(9)"> <text>“Supplies” means all tangible personal property, including equipment, leases of equipment, and insurance, including any incidental services.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Procurement Authority."> <text>The power to contract on behalf of the Authority for the procurement of materials, supplies, or services and construction shall be vested in the Executive Director. The Executive Director may, with the approval of the Authority, delegate this power to other staff members. The Executive Director may exercise any responsibility of the Authority set forth in these regulations. However, contracts and orders involving the expenditure of more than $10,000 shall be awarded only by resolution of the Authority upon recommendation of the Executive Director.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Advertising."> <text>Advertising, when used, shall be placed in one or more newspapers of general circulation serving the area where the procurement is required, or e-Maryland Marketplace. Wider range advertising, including advertising in professional and trade publications, may be employed at the discretion of the Executive Director. The advertisement shall describe the materials, supplies, equipment, or services required, pertinent information as to submission of bids, proposals or qualification statements, and shall identify a staff member of the Authority who can respond to inquiries concerning the procurement.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Methods of Procurement."> <paragraph num="A."> <text>All purchases shall be awarded by one of the following methods:</text> <paragraph num="(1)"> <text>Competitive sealed bidding;</text> </paragraph> <paragraph num="(2)"> <text>Competitive negotiation;</text> </paragraph> <paragraph num="(3)"> <text>Small procurement procedures, when permitted by Regulation .14 of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Revised bids after competitive sealed bidding where all bids are rejected;</text> </paragraph> <paragraph num="(5)"> <text>Sole source procurement, when permitted by Regulation .11 of this chapter;</text> </paragraph> <paragraph num="(6)"> <text>Emergency procurement, when permitted by Regulation .12 of this chapter; or</text> </paragraph> <paragraph num="(7)"> <text>Intergovernmental cooperative purchasing as that term is defined in State Finance and Procurement Article, §13-110, Annotated Code of Maryland, and COMAR 21.05.09.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Authority shall select the method of procurement which in its discretion best meets the needs of the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Prequalification."> <paragraph num="A."> <text>The Authority may require prequalification of bidders regardless of the method of procurement selected.</text> </paragraph> <paragraph num="B."> <text>Method of Prequalification.</text> <paragraph num="(1)"> <text>The Authority shall issue a request for qualifications.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may invite some or all persons and entities seeking to become qualified to participate in oral interviews. The interviews will become part of the responses to a request for qualifications.</text> </paragraph> <paragraph num="(3)"> <text>The Authority may require some or all persons and entities seeking to become qualified to submit additional data and information, which will become part of the responses.</text> </paragraph> <paragraph num="(4)"> <text>The Authority shall evaluate the responses and shall rank each response in accordance with evaluation criteria.</text> </paragraph> <paragraph num="(5)"> <text>By applying the evaluation criteria, the Authority shall establish a short-list composed of a minimum of two and, in general, a maximum of five persons or entities.</text> </paragraph> <paragraph num="(6)"> <text>The Authority shall notify those who qualified for the short-list that they have qualified and that they can anticipate a request for proposals, an invitation to bid, or, depending on the method of procurement selected by the Authority, an invitation to participate in negotiations.</text> </paragraph> <paragraph num="(7)"> <text>The Authority shall notify those who did not qualify.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The requirement for competition may be satisfied by the prequalification process.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Guidelines for Competitive Sealed Bidding."> <paragraph num="A."> <text>Bids shall be submitted in a sealed envelope marked with the bidder's name. All bids will be publicly opened at the time and place stated in the request.</text> </paragraph> <paragraph num="B."> <text>Award shall be made with reasonable promptness after the date of bid opening to that person or entity with the lowest bid which is both responsible and responsive.</text> </paragraph> <paragraph num="C."> <text>All bids may be rejected if the Authority determines that it is in the public interest to do so.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Guidelines for Competitive Negotiation."> <paragraph num="A."> <text>A special form or procedure is not prescribed for procurement by competitive negotiation. The request shall be in writing and shall describe the procurement in sufficient detail to provide an understanding of what is required, but should not be unnecessarily restrictive so as to preclude or limit competition. The request shall state applicable dates for the submission of proposals, and any other information which may be necessary and useful, including evaluation criteria.</text> </paragraph> <paragraph num="B."> <text>Precautions shall be taken to avoid prejudice in the selection of a source of supply, and to assure that a fair and reasonable price is obtained. This section does not preclude the Authority from making an award when only one proposal is received by the Authority after advertising.</text> </paragraph> <paragraph num="C."> <text>The Authority may conduct oral negotiations before or after the receipt of proposals. The purpose of the negotiation is to promote understanding of the Authority's requirements and the offerors' proposals and to facilitate arrival at a contract that is most advantageous to the Authority. The Authority may require offerors to submit best and final offers after negotiations.</text> </paragraph> <paragraph num="D."> <text>The Authority shall make an award to the offeror whose proposal or, if applicable, best and final offer, after giving effect to the understanding gained during negotiations, is determined to be most advantageous to the Authority.</text> </paragraph> <paragraph num="E."> <text>The Authority may abandon a procurement by competitive negotiation if it is determined to be in the public interest to do so.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Sole Source Procurement."> <paragraph num="A."> <text>Condition for Use. Sole source procurement is not permissible unless a requirement is available from only a single vendor.</text> </paragraph> <paragraph num="B."> <text>The determination as to whether a procurement shall be made as a sole source shall be made by the Executive Director, and approved by the Board. The determination and the basis for it shall be in writing. The Authority may not award a contract to a sole source before the Board's approval, except as allowed in Regulation .14 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Emergency Procurement."> <paragraph num="A."> <text>Application. The Authority may award an emergency contract by means other than competitive sealed bidding or competitive negotiation under Regulation .09 or .10 of this chapter.</text> </paragraph> <paragraph num="B."> <text>Scope. “Emergency” means a sudden and unexpected occurrence or condition which the Authority could not reasonably foresee and which requires an action to avoid or to mitigate damage to the environment or to health, safety, or welfare. An emergency procurement is limited to the procurement of only those items necessary to avoid or to mitigate the damage to the environment or to health, safety, or welfare.</text> </paragraph> <paragraph num="C."> <text>Competition. The Authority shall reasonably attempt to obtain such competition as is consistent with meeting the time requirements of the emergency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Supplemental Work."> <text>The Authority need not follow the procurement process as set forth in these regulations when the procurement is for supplemental work, substantially related to work previously awarded by the Authority by competitive sealed bidding or competitive negotiation, and where further competitive procurement would not enhance the public interest.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Small Procurement Procedures."> <text>Materials, supplies, equipment, and services may be procured by open market purchase or sole source award when the amount involved is anticipated to be less than $2,500 in the aggregate on an annual basis for a particular procurement. Procurement by open market purchase or sole source award in amounts over $2,500, but less than $10,000, is permitted when the materials, supplies, equipment, and services are of a unique and special nature, or when public exigency will not permit the delay incident to competition. In this event, a memorandum justifying the action and signed by the Executive Director shall be filed with the official records of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Contracts Voidable for Noncompliance."> <paragraph num="A."> <text>If the Board determines that a procurement violates this chapter, the Board may determine that the procurement contract is voidable rather than void if the Board finds that:</text> <paragraph num="(1)"> <text>All parties have acted in good faith;</text> </paragraph> <paragraph num="(2)"> <text>Ratification of the procurement contract would not undermine the purposes of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>The violation, or series of violations, was insignificant or otherwise did not prevent substantial compliance with this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Board determines that a procurement contract is voidable under §A of this regulation and that the contractor has not acted in violation of this chapter, the Board may:</text> <paragraph num="(1)"> <text>Ratify the contract if it determines that ratification is in the best interest of the Authority; or</text> </paragraph> <paragraph num="(2)"> <text>Void the contract.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Board determines that a procurement contract is voidable under §A of this regulation and that the contractor has acted in violation of this chapter, the Authority:</text> <paragraph num="(1)"> <text>May void the contract; or</text> </paragraph> <paragraph num="(2)"> <text>Without the prejudice to the Authority's right to appropriate damages, may ratify the contract if the Board determines that ratification is in the best interests of the Authority.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Bid Protests."> <paragraph num="A."> <text>Time Restrictions.</text> <paragraph num="(1)"> <text>A protest based upon alleged improprieties in a solicitation that are apparent before bid opening or the closing date for receipt of initial proposals shall be submitted to the Director of Finance and Administration before bid opening or the closing date for receipt of initial proposals.</text> </paragraph> <paragraph num="(2)"> <text>For procurement by competitive sealed proposals, alleged improprieties that did not exist in the initial solicitation but which are subsequently incorporated in the solicitation shall be submitted to the Director of Finance and Administration not later than the next closing date for receipt of proposals following the incorporation.</text> </paragraph> <paragraph num="(3)"> <text>In all other cases, protests shall be submitted to the Director of Finance and Administration not later than 7 days after the basis for protest is known, or should have been known, whichever is earlier.</text> </paragraph> <paragraph num="(4)"> <text>A protest received by the Director of Finance and Administration after the time limits of §A(1)—(3) of this regulation may not be considered and shall be denied as untimely.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Form and Content of Bid Proposals.</text> <paragraph num="(1)"> <text>To expedite the handling of protests, the envelope should be labeled “Protest”.</text> </paragraph> <paragraph num="(2)"> <text>The written proposal shall include as a minimum the following content:</text> <paragraph num="(a)"> <text>The name and address of the protestor;</text> </paragraph> <paragraph num="(b)"> <text>Appropriate identification of the procurement and, if a contract has been awarded, its number if known;</text> </paragraph> <paragraph num="(c)"> <text>A statement of the reasons for the protest;</text> </paragraph> <paragraph num="(d)"> <text>Supporting exhibits, evidence, or documents to substantiate the reasons for the protest; and</text> </paragraph> <paragraph num="(e)"> <text>If not available within the time restrictions:</text> <paragraph num="(i)"> <text>A description of the nature and extent of the evidence and documents; and</text> </paragraph> <paragraph num="(ii)"> <text>The expected availability date of the evidence and documents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any additional information or substantiation requested by the Director of Finance and Administration shall be submitted within 5 days after receipt of request, or other time as the Director of Finance and Administration may specify in order to expedite consideration of the protest. Failure of the protestant to comply with a request for information or substantiation by the Director of Finance and Administration may result in a resolution of the protest without consideration of any response to the request that is not timely filed.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Authority Determination and Finding.</text> <paragraph num="(1)"> <text>After a protest is filed, the Director of Finance and Administration shall consider the protest, all supporting documentation, and any submissions from other bidders or offerors. This consideration is not a contested hearing, subject to State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. After consideration, the Director of Finance and Administration shall make a determination and finding regarding the protest.</text> </paragraph> <paragraph num="(2)"> <text>For contracts valued at less than $10,000, the Director of Finance and Administration may make the determination and finding without consultation with the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>For contracts valued at $10,000 or more, the Director of Finance and Administration shall provide a proposed determination and finding to the Executive Director. The Executive Director shall consider the protest and shall issue the determination and finding.</text> </paragraph> <paragraph num="(4)"> <text>The determination and finding shall be forwarded by certified mail to the protestor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Appeal.</text> <paragraph num="(1)"> <text>The protestor may appeal the determination and finding to the Board of Directors within 10 days after receipt. The appeal shall be in writing, and include a copy of the protest and the determination and finding. In addition, the appeal shall contain all grounds for disagreement with the determination and finding. Appeals not received within 10 days after receipt by the protestor shall be dismissed as untimely.</text> </paragraph> <paragraph num="(2)"> <text>If the protestor desires a hearing on its protest, a request for a hearing shall be made, in writing, at the time of the appeal. If a timely request for a hearing is received, the Board of Directors shall conduct a hearing in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. In accordance with State Government Article, §10-205, Annotated Code of Maryland, the Board of Directors may delegate its authority to conduct this hearing to the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(3)"> <text>The Board of Directors shall issue a final decision on the protest, which is the final Authority decision. This final decision of the Authority is subject to judicial review in accordance with the rules established by State Government Article, §10-222, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Contract Awards.</text> <paragraph num="(1)"> <text>Generally, if a protest has been filed, the Authority may not award the contract until there is a final Authority decision on the protest.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may award a contract before there is a final Authority decision after making a determination and finding which considers:</text> <paragraph num="(a)"> <text>The merits of the protestor's complaint;</text> </paragraph> <paragraph num="(b)"> <text>The need of the Authority for the procurement, which is the subject of the protest;</text> </paragraph> <paragraph num="(c)"> <text>The fluctuations in the market, which may impact costs;</text> </paragraph> <paragraph num="(d)"> <text>The unwillingness of the proposed awardee to extend its offer; or</text> </paragraph> <paragraph num="(e)"> <text>Other factors which impact on the public interest.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-905(b) and 3-921, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 26, 1980 (7:26 Md. R. 2424)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective September 27, 1982 (9:19 Md. R. 1896)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 19, 2001 (28:5 Md. R. 552)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective December 21, 2015 (42:25 Md. R. 1546)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective December 21, 2015 (42:25 Md. R. 1546)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective December 21, 2015 (42:25 Md. R. 1546)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 adopted effective December 11, 2003 (30:24 Md. R. 1744)</annotation> </annotations> </chapter> <chapter num="02" heading="Designation of the Boundary of the Northeast Maryland Waste Disposal Region"> <regulation prefix="Regulation" num=".01" heading="Purpose and Scope."> <text>The boundary established in these regulations shall be the basis of the Maryland Environmental Service's designation of the Northeast Maryland Waste Disposal Region as a solid waste disposal service region as provided in Natural Resources Article, §3-106, Annotated Code of Maryland, the basis of the Northeast Maryland Waste Disposal Authority's 5-year planning process, and the basis of the establishment of service districts within the Northeast Maryland Waste Disposal Region pursuant to any duly adopted 5-year plan.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Boundary."> <text>The boundary of the Northeast Maryland Waste Disposal Region shall be: To the North, the boundary between the State of Maryland and the Commonwealth of Pennsylvania; to the East, to the extent of county jurisdiction, the Susquehanna River, and the Chesapeake Bay; to the South, a line described by U.S. Routes 50 and 301, from the Preston Lane Jr. Memorial Bridge to a point generally west of the City of Annapolis where this highway intersects with Maryland Route 450 (Defense Highway) and from there following Maryland Route 450 to the intersection of this highway with the boundary between Anne Arundel and Prince George's Counties; and to the West, a line proceeding in a northerly direction along the boundary of Anne Arundel with Prince George's and Howard Counties to its juncture with the boundary of Baltimore County and then northwesterly along the boundary of Baltimore County with Howard and Carroll Counties.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Boundary Revisions."> <text>The boundary defined in Regulation .02 shall be revised only by regulation.</text> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-903(m) and 3-918, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 1, 1981 (8:9 Md. R. 803)</annotation> </annotations> </chapter> <chapter num="03" heading="Public Information Requests"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations set out procedures for filing requests with the Northeast Maryland Waste Disposal Authority for the inspection and copying of records under the Public Information Act, State Government Article, §§10-611—10-628, Annotated Code of Maryland. It is the policy of the Authority to facilitate public access to the records of the Authority, when that access is allowed by law, by minimizing costs and time delays to persons requesting information.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, State Government Article, §§10-611—10-628, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a person requesting disclosure of public records.</text> </paragraph> <paragraph num="(3)"> <text>"Authority" means the Northeast Maryland Waste Disposal Authority.</text> </paragraph> <paragraph num="(4)"> <text>“Custodian” means and includes the official custodian or any authorized person employed by the Authority having personal custody and control of public records of the Authority.</text> </paragraph> <paragraph num="(5)"> <text>“Official custodian” means the person who is responsible for the maintenance, care, and keeping of the public records of the Authority. Unless otherwise provided by law, the Executive Director of the Authority is the official custodian of the Authority's records.</text> </paragraph> <paragraph num="(6)"> <text>“Public record” has the meaning stated in State Government Article, §10-611(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Working day” means a day other than Saturday, Sunday, or State holiday or national holiday.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May Request."> <text>Any person may request to inspect or copy public records of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Necessity for Written Request."> <paragraph num="A."> <text>Inspections.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this regulation, the custodian shall generally make public records available for inspection by an applicant without demanding a written request.</text> </paragraph> <paragraph num="(2)"> <text>The custodian shall require a written request if the custodian reasonably believes that the Act or any other law may prevent the disclosure of the public record to the applicant or that a written request will materially assist the Authority in responding to the request.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Copies. If the applicant is requesting a copy of any public record, the custodian may require a written request by the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Contents of Written Request."> <text>A written request shall contain the applicant's name and address, shall be signed by the applicant, and shall reasonably identify by brief description the public record sought.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Filing Written Request."> <text>A written request shall be addressed to the custodian of the record. If the custodian is unknown to the applicant, the request may be addressed to the Executive Director of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Response to Written Request."> <paragraph num="A."> <text>If the custodian decides to grant a written request for inspection, the custodian shall produce the record for inspection immediately or within a reasonable period, not to exceed 30 days from the date of the request when that period of time is needed to retrieve the information.</text> </paragraph> <paragraph num="B."> <text>If the custodian decides to deny the written request, the custodian shall do so within 30 days of the written request and immediately upon deciding to deny the request, notify the applicant of the denial.</text> </paragraph> <paragraph num="C."> <text>If a requested public record is not in the custody or control of the person to whom written application is made, that person shall, within 10 working days of the receipt of the request, so notify the applicant. If that person knows the name of the custodian of the record or the location or possible location of the record, this information shall also be given to the applicant.</text> </paragraph> <paragraph num="D."> <text>With the consent of the applicant, any time limit imposed by §§A—C may be extended for an additional period not to exceed 30 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Notification of Persons Who May Be Affected by Disclosure."> <text>Unless prohibited by law, the custodian may notify any person who could be adversely affected by disclosure of a public record to the applicant that a request for inspection or copying of the record has been made. The custodian may solicit and consider the viewpoint of that person before deciding whether to disclose the record to the applicant.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Records Temporarily Unavailable."> <text>If a requested public record is in the custody and control of the person to whom written application is made but is not immediately available for inspection or copying, the custodian shall promptly notify the applicant that the public record is not immediately available, and schedule a date and hour within a reasonable time for inspection or copying.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Records Destroyed or Lost."> <text>If a requested record has been destroyed or lost, the custodian to whom the application is made shall promptly notify the applicant of this fact and explain in the response the reasons why the record cannot be produced.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Review of a Denial."> <paragraph num="A."> <text>If a written request is denied by the custodian for a reason other than that the record is temporarily unavailable, the applicant may, within 30 days after receipt of the notice of the denial, request an administrative hearing.</text> </paragraph> <paragraph num="B."> <text>If the applicant requests a hearing, the hearing shall be conducted by a hearing officer designated by the Executive Director of the Authority and the hearing shall be governed by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. After the hearing, the hearing officer shall prepare a recommended decision for the Executive Director. The Executive Director shall issue the final decision of the Authority unless the Executive Director delegates the final decision authority.</text> </paragraph> <paragraph num="C."> <text>If the hearing results in a total or partial denial of the written request, the applicant may file an appropriate action in the circuit court under State Government Article, §10-623, Annotated Code of Maryland:</text> </paragraph> <paragraph num="D."> <text>If the applicant chooses not to request a hearing under §A, above, the applicant may file an action for judicial enforcement under State Government Article, §10-623, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>If, in the opinion of the official custodian, disclosure of any public record that is otherwise required to be disclosed under the Act would do substantial injury to the public interest, the official custodian may temporarily deny the request in writing and apply within 10 working days of the denial to the appropriate circuit court for an order permitting continued denial or restriction of access. Notice of the application filed with the circuit court shall be served on the applicant in the same manner that is provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> <paragraph num="B."> <text>The official custodian may solicit and consider the advice and counsel of a person or persons specializing in the fields of law, engineering, or finance in order to form an opinion as to whether the application should be denied.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Fees."> <paragraph num="A."> <text>The fee schedule for copying and certifying copies of records is as follows:</text> <paragraph num="(1)"> <text>Copies. The fee for each copy is $.25 per page if reproduction is made by a photocopying machine within the Authority. If records are not susceptible to photocopying (for example, punch cards, magnetic tapes, blueprints, and microfilm), the fee for copies is based on the actual cost of reproduction.</text> </paragraph> <paragraph num="(2)"> <text>Certification of Copies. If an applicant requests that a copy of a record be certified as a true copy, an additional fee of $1 per page or, if appropriate, per item shall be charged.</text> </paragraph> <paragraph num="(3)"> <text>Minimum Fee Charged. A charge may not be made if the total amount of the fee would be $1 or less.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notwithstanding §A, above, if the fees for copies, printouts, photographs, or certified copies of any record are specifically prescribed by a law other than the Act or this regulation, the prescribed fee shall be charged.</text> </paragraph> <paragraph num="C."> <text>If the custodian is unable to copy a record within the Authority, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Authority. The official custodian shall either collect from the applicant a fee to cover the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="D."> <text>Before copying a record, the official custodian shall estimate the cost of reproduction and either obtain the agreement of the applicant to pay the cost or demand prepayment of any estimated fee before reproducing the record.</text> </paragraph> <paragraph num="E."> <text>Except as provided in §F of this regulation, the official custodian may charge reasonable fees for official or employee time expended searching for requested records or for any time expended preparing records for inspection and copying.</text> </paragraph> <paragraph num="F."> <text>The official custodian may not charge any search or preparation fee for the first 2 hours of official or employee time that is needed to respond to a request for inspection or copying.</text> </paragraph> <paragraph num="G."> <text>Upon request, the official custodian may waive or reduce any fee charged pursuant to these regulations if the custodian determines that the waiver or reduction is in the public interest. The official custodian shall consider among other relevant factors, the ability of the applicant to pay the cost or fee.</text> </paragraph> <paragraph num="H."> <text>If the applicant requests that copies be mailed or delivered to the applicant, the official custodian may charge the applicant for the cost of postage or delivery to the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Time of Inspection."> <text>An applicant may inspect any public record permitted under the Act and these regulations during the normal working hours of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Place of Inspection."> <text>The place of inspection shall be the place where the public record is located unless the custodian, after taking into account the applicant's expressed wish, determines that another place of inspection is more suitable and convenient.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §10-621;Natural Resources Article §§3-903(d) and 3-905(b); Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 28, 1983 (10:4 Md. R. 316)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 11, 2003 (30:24 Md. R. 1744)</annotation> </annotations> </chapter> <chapter num="04" heading="Correction or Amendment of Personal Records"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations set out procedures within the Northeast Maryland Waste Disposal Authority for persons in interest to request the correction or amendment of personal records under State Government Article, § 10-625, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>"Authority" means the Northeast Maryland Waste Disposal Authority.</text> </paragraph> <paragraph num="B."> <text>“Custodian” means and includes the official custodian or any authorized person employed by the Authority having personal custody and control of public records of the Authority.</text> </paragraph> <paragraph num="C."> <text>“Official custodian” means the person who is responsible for the maintenance, care, and keeping of the public records of the Authority. Unless otherwise provided by law, the Executive Director of the Authority is the official custodian of the Authority's records.</text> </paragraph> <paragraph num="D."> <text>“Person in interest” means and includes the person who is the subject of a record or any representative designated by that person, except that if the subject of the record is under legal disability, the term “person in interest” shall mean and include the parent or duly appointed legal representative.</text> </paragraph> <paragraph num="E."> <text>“Personal records” means and includes any public record that contains information pertaining to a natural person whose identity can be ascertained from the public record with reasonable certainty either by name, address, number, description, finger or voice print, picture, or any other identifying factor or factors.</text> </paragraph> <paragraph num="F."> <text>“Third party” means any natural person, corporation, partnership, firm, association or governmental agency who is not a “person in interest.”</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May Request."> <text>A person in interest who has the right to inspect records pursuant to State Government Article, §§10-614—10-619, Annotated Code of Maryland, may request the Authority to correct or amend any personal records pursuant to State Government Article, §10-625, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Contents of Request."> <text>The person in interest shall request the correction or amendment in writing. Each request shall:</text> <paragraph num="A."> <text>Identify the personal records the person is seeking to correct or amend;</text> </paragraph> <paragraph num="B."> <text>State the precise correction or amendment requested;</text> </paragraph> <paragraph num="C."> <text>State the reason the correction or amendment is sought; and</text> </paragraph> <paragraph num="D."> <text>Include the statement that the personal records are to the person's belief currently inaccurate or incomplete.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Filing the Request."> <text>A request for correction or amendment of the records shall be filed with the Authority by addressing it to the custodian of the record. If the custodian is unknown to the person in interest, the request may be addressed to the Executive Director, Northeast Maryland Waste Disposal Authority, 131 East Redwood Street, Suite 503, Baltimore, Maryland 21202-1275.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Return of Request."> <text>A request for correction or amendment will be considered filed with the Authority when received only to the extent that it reasonably complies with Regulation . 04. If a request does not reasonably comply with Regulation .04, it shall be returned to the person with an explanation of the reason for the return and a statement that, upon proper completion, it may be refiled with the Authority.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Response to Request."> <text>Within 30 days after the completed request for correction or amendment that complies with Regulations . 04 and .05 is received, the custodian of the record shall:</text> <paragraph num="A."> <text>Make the requested correction or amendment and inform the person in writing of the action;</text> </paragraph> <paragraph num="B."> <text>Inform the person in writing of the:</text> <paragraph num="(1)"> <text>Authority's refusal to make the requested correction or amendment,</text> </paragraph> <paragraph num="(2)"> <text>Reason for the refusal; or</text> </paragraph> </paragraph> <paragraph num="C."> <text>Inform the person in writing that the request will not be acted on because:</text> <paragraph num="(1)"> <text>The person is not a person in interest,</text> </paragraph> <paragraph num="(2)"> <text>The records sought to be corrected or amended are not personal records,</text> </paragraph> <paragraph num="(3)"> <text>The person requesting the correction or amendment is not entitled to inspect the records under State Government Article, §§10-614—10-619, Annotated Code of Maryland, or</text> </paragraph> <paragraph num="(4)"> <text>Of any other reason that is authorized by law.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Refusal of Request."> <text>If the Authority's final determination under Regulation . 07 is to refuse the requested correction and amendment, as authorized by Regulation .07B, the person in interest may file with the Authority a concise statement, not to exceed five 8 x 11 inch pages, of the reasons for:</text> <paragraph num="A."> <text>The requested correction or amendment; and</text> </paragraph> <paragraph num="B."> <text>Disagreement with the Authority's refusal to make the correction or amendment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Information Provided to Third Parties."> <text>When the Authority discloses to a third party information from personal records about which a statement in compliance with Regulation . 08 has been filed, the Authority shall furnish a copy of the statement to the third party.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Administrative Review."> <paragraph num="A."> <text>A person in interest may request an administrative review within the Authority by filing a request for review with the Executive Director if the person in interest has been denied:</text> <paragraph num="(1)"> <text>An amendment or correction of a record;</text> </paragraph> <paragraph num="(2)"> <text>The right to file a statement; or</text> </paragraph> <paragraph num="(3)"> <text>The right to have a statement forwarded to a third party pursuant to Regulation .09.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A request for review shall be filed within 30 days of the date the person in interest is advised of the Authority's action.</text> </paragraph> <paragraph num="C."> <text>The review proceedings shall be conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>This remedy of administrative review need not be exhausted before filing suit in a circuit court pursuant to State Government Article, §10-623, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-903(f), 3-905(b), 3-905(r), and 3-918, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 8, 1984 (11:20 Md. R. 1743)</annotation> </annotations> </chapter> <chapter num="05" heading="Open Meetings"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter contains procedures regarding the conduct of persons attending open meetings, and the recording and broadcasting of open meetings.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Northeast Maryland Waste Disposal Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Open session” means a meeting of the Authority required to be open to the public pursuant to the Open Meetings Act, State Government Article, Title 10, Subtitle 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public Attendance."> <paragraph num="A."> <text>The general public is invited to attend and observe an open session of the Authority.</text> </paragraph> <paragraph num="B."> <text>Except in instances when the Authority expressly invites public testimony, questions, comments, or other forms of public participation, or when public participation is otherwise authorized by law, a member of the public attending an open session may not participate in the session.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Disruptive Conduct."> <paragraph num="A."> <text>An individual attending an open session of the Authority may not engage in any conduct, including but not limited to visual demonstrations such as the display of placards, signs, or banners, that disrupts the session or interferes with the right of a member of the public to attend and observe the session.</text> </paragraph> <paragraph num="B."> <text>The presiding officer may:</text> <paragraph num="(1)"> <text>Order a person who engages in conduct prohibited by §A of this regulation or who violates any other regulation concerning the conduct of the open session to be removed from the session;</text> </paragraph> <paragraph num="(2)"> <text>Request police or other assistance to restore order; and</text> </paragraph> <paragraph num="(3)"> <text>Recess the open session while order is restored.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Recording, Photocopying, and Broadcasting of Open Sessions."> <paragraph num="A."> <text>A member of the public, including a representative of the news media, may:</text> <paragraph num="(1)"> <text>Record discussions of the Authority at an open session by means of a tape recorder or other recording device if the device does not create noise that disturbs members of the Authority or others attending the open session; and</text> </paragraph> <paragraph num="(2)"> <text>Photograph or videotape the proceedings of the Authority at an open session if the camera is operated without excessively bright artificial light or noise that disturbs members of the Authority or others attending the open session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A representative of the news media may broadcast or televise the proceedings of the Authority at an open session if the equipment used:</text> <paragraph num="(1)"> <text>Is operated without excessively bright artificial light that disturbs members of the Authority or others attending the open session; and</text> </paragraph> <paragraph num="(2)"> <text>Does not create noise that disturbs members of the Authority or others attending the open session.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The presiding officer may restrict the movement of a person who is using a recording device, camera, or broadcasting or televising equipment if the restriction is necessary to maintain the orderly conduct of the open session.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recordings Not Part of Record."> <text>A recording of an open session made by a member of the public, including a representative of the news media, or any transcript derived from a recording, is not a part of the record of any proceeding of the open session.</text> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-905(b), 3-905(r), 3-918;State Government Article, §10-507; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 15, 1994 (21:16 Md. R. 1389)</annotation> </annotations> </chapter> </subtitle> <subtitle num="14" heading="Hazardous Waste Facilities Siting Board"> <chapter num="01" heading="General Administrative Procedures"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>The following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Hazardous Waste Facilities Siting Program Act, Title 3, Subtitle 7 of the Natural Resources Article, Annotated Code of Maryland (Laws of 1980, Ch. 528).</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a person, partnership, corporation, association, governmental body, or other entity that submits an application.</text> </paragraph> <paragraph num="(3)"> <text>“Application” means a written request for a certificate of public necessity from the Board submitted in accordance with these regulations.</text> </paragraph> <paragraph num="(4)"> <text>“Board” means the Hazardous Waste Facilities Siting Board.</text> </paragraph> <paragraph num="(5)"> <text>“Certificate” means a certificate of public necessity issued by the Board.</text> </paragraph> <paragraph num="(6)"> <text>“Department” means, unless otherwise indicated, the Maryland Department of Health, or any other successor State agency with primary regulatory responsibility over hazardous waste.</text> </paragraph> <paragraph num="(7)"> <text>“Facility” means any structure, equipment, machinery, bins, tanks, pipes, pumps, conveyors, wells, trenches, pits, or cells used for treatment, processing, reconditioning, exchange, incidental storage in connection with the preceding activities, long-term storage, or ultimate disposal of hazardous waste.</text> </paragraph> <paragraph num="(8)"> <text>“Hazardous waste” means any waste substance or material designated as a hazardous substance pursuant to Natural Resources Article, §8-1413.2, Annotated Code of Maryland, and COMAR Title 10, Subtitle 51, as amended.</text> </paragraph> <paragraph num="(9)"> <text>“Permit” means any regulatory permit that may be required of the applicant by any State or federal regulatory agency. This includes a facility permit required by the Department, any permit for emissions of air, water, noise, or other pollutants required by the Department or the United States Environmental Protection Agency, or a floodplain or stream diversion permit required by the Department of Natural Resources, as the case may be.</text> </paragraph> <paragraph num="(10)"> <text>“Secretary” means Secretary to the Board.</text> </paragraph> <paragraph num="(11)"> <text>“Service” means the Maryland Environmental Service.</text> </paragraph> <paragraph num="(12)"> <text>“Site” means the geographic area to be occupied by a facility, including buffer or security areas and areas used for any appurtenant functions.</text> </paragraph> <paragraph num="(13)"> <text>“Subdivision” means the 23 counties or Baltimore City and other incorporated municipalities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Statutory References."> <paragraph num="A."> <text>“Administrative Procedure Act” means Article 41, §§244—256, Annotated Code of Maryland, as amended.</text> </paragraph> <paragraph num="B."> <text>“Public Information Act” means Article 76A, Annotated Code of Maryland, as amended.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="General Procedures."> <paragraph num="A."> <text>The Board may adopt standing rules governing details of the conduct of business by the Board. Standing rules may be suspended for the duration of a meeting by majority vote of those present. Proceedings shall be governed by Roberts Rules of Order, Revised, except as otherwise provided by these regulations, by law, or by standing rules of the Board.</text> </paragraph> <paragraph num="B."> <text>Absence of Chairman.</text> <paragraph num="(1)"> <text>The Chairman may appoint a member of the Board to preside in his or her absence.</text> </paragraph> <paragraph num="(2)"> <text>When the Chairman has not appointed a presiding officer to serve in his or her absence, the Board will elect a Chairman pro tem to serve until the Chairman returns.</text> </paragraph> <paragraph num="(3)"> <text>In case of extended absence of the Chairman, that fact will be brought to the Governor's attention.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Attendance.</text> <paragraph num="(1)"> <text>Regular attendance at meetings is required of all members.</text> </paragraph> <paragraph num="(2)"> <text>Members are expected to notify the Chairman or Secretary when they are unable to attend.</text> </paragraph> <paragraph num="(3)"> <text>When excessive or recurrent absence of one or more members impedes the effectiveness of the Board, it shall discuss the matter of absence in closed session. The Board may recommend to the Governor the relief of a member for excessive or recurrent absence and the appointment of a successor.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Regular Meetings.</text> <paragraph num="(1)"> <text>Regular meetings of the Board shall take place at a regular time and place determined by the Board.</text> </paragraph> <paragraph num="(2)"> <text>A schedule of the regular meetings shall be maintained by the Secretary and published in the Maryland Register at least 15 calendar days in advance.</text> </paragraph> <paragraph num="(3)"> <text>Notice of meetings and an agenda shall be mailed in advance of the meeting to any person who so requests the Secretary in writing.</text> </paragraph> <paragraph num="(4)"> <text>The business of a regular meeting shall be published in the agenda insofar as practicable. Business not included in the published agenda may be added when allowed by law. The agenda shall be prepared by the Secretary and approved by the Chairman.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Special Meetings.</text> <paragraph num="(1)"> <text>A special meeting is one convened at a time different from any regular meeting to consider item or items of business as specified in the notice. Business shall be limited to that specified in the notice.</text> </paragraph> <paragraph num="(2)"> <text>A special meeting may be convened at the call of the Chairman or at the request of three members.</text> </paragraph> <paragraph num="(3)"> <text>Notice and an agenda of special meetings will be mailed as far in advance of the meeting as practicable to any person who so requests of the Secretary in writing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Minutes.</text> <paragraph num="(1)"> <text>The Secretary shall keep written minutes of all meetings. The minutes shall record the nature of each item of business, action taken, and any recorded vote.</text> </paragraph> <paragraph num="(2)"> <text>Unless a stenographic record is made and transcribed, minutes need not record discussion.</text> </paragraph> <paragraph num="(3)"> <text>Motions and resolutions shall be submitted in writing to the Secretary or shall be recorded in writing by the Secretary before the question is stated by the Chairman.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Meetings Generally Open to the Public.</text> <paragraph num="(1)"> <text>It shall be the policy of the Board that meetings be conducted in an open and public manner.</text> </paragraph> <paragraph num="(2)"> <text>The Board may meet in closed session as authorized by law. The reason for the closed session shall be stated in the minutes.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Public Hearings Held Other than to Consider Applicants."> <paragraph num="A."> <text>All public hearings, other than those held to consider applications, will be held at a location or locations directed by the Board.</text> </paragraph> <paragraph num="B."> <text>Notice will be published in the Maryland Register at least 15 calendar days in advance.</text> </paragraph> <paragraph num="C."> <text>Notice by ordinary mailing will be given to any person who has requested to receive notice of Board meetings.</text> </paragraph> <paragraph num="D."> <text>The Chairman may preside over the hearing or may designate another Board member or other person as hearing officer.</text> </paragraph> <paragraph num="E."> <text>The Board may establish procedural rules governing the conduct of hearings, consolidation of hearings, ceding of time, time limits, and other such matters as the Board finds appropriate.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Public Records."> <paragraph num="A."> <text>General. All records of the Board are subject to inspection and copying as provided in the Public Information Act, Article 76A,§1-5A, Annotated Code of Maryland. It is the policy of the Board to facilitate public access to the records of the Board, when access is allowed by law, by minimizing costs and time delays to persons requesting information.</text> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Custodian” means an authorized person employed by the Board having personal custody and control of public records of the Board.</text> </paragraph> <paragraph num="(2)"> <text>“Information requester” means a person requesting disclosure of public records.</text> </paragraph> <paragraph num="(3)"> <text>“Official custodian” means the person who is responsible for the maintenance, care, and keeping of the public records of the Board. Unless otherwise provided by law, the Secretary is the official custodian of the Board's records.</text> </paragraph> <paragraph num="(4)"> <text>“Public records” means all paper, correspondence, forms, books, photographs, photostats, films, microfilms, sound recordings, maps, drawings, or other written documents, regardless of physical form or characteristics. “Public records” includes all copies made or received by the Board in connection with the transaction of public business and includes the salaries of all employees of the Board.</text> </paragraph> <paragraph num="(5)"> <text>“Working day” means a day other than a Saturday, Sunday, or a State holiday.</text> </paragraph> <paragraph num="(6)"> <text>“Written documents” means all books, papers, maps, photographs, cards, tapes, recordings, computerized records, and other documentary materials, regardless of physical form or characteristics.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Who May Request. Any person may request to inspect or copy public records of the Board.</text> </paragraph> <paragraph num="D."> <text>Necessity for Written Request.</text> <paragraph num="(1)"> <text>Inspections.</text> <paragraph num="(a)"> <text>Except as otherwise provided in this regulation, the custodian shall generally make public records available for inspection by an information requester without demanding a written request.</text> </paragraph> <paragraph num="(b)"> <text>The custodian shall require a written request if the custodian reasonably believes that the Public Information Act or any other law may prevent the disclosure of the record to the information requester or that a written request will materially assist the Board in responding to the request.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Copies. If the information requester is requesting a copy of any public record, the custodian may require a written request by the information requester.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Contents of Written Request. A written request shall:</text> <paragraph num="(1)"> <text>Contain the information requester's name and address;</text> </paragraph> <paragraph num="(2)"> <text>Be signed by the information requester; and</text> </paragraph> <paragraph num="(3)"> <text>Reasonably identify by brief description the record sought.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Filing Written Request. A written request shall be addressed to the custodian of the record. If the custodian is unknown to the information requester, the request may be addressed to the Secretary.</text> </paragraph> <paragraph num="G."> <text>Response to Written Request.</text> <paragraph num="(1)"> <text>If the custodian decides to grant a written request for inspection, he shall produce the record for inspection immediately or within a reasonable period, not to exceed 30 days from the date of the request where the period of time is needed to retrieve the information.</text> </paragraph> <paragraph num="(2)"> <text>If the custodian decides to deny the written request, he shall do so within 30 days of the written request and, immediately upon deciding to deny the request, notify the information requester of the denial.</text> </paragraph> <paragraph num="(3)"> <text>If a requested public record is not in the custody or control of the person to whom written request is made, that person shall, within 10 working days of the receipt of the request, notify the information requester. If that person knows the name of the custodian of the record or the location or possible location of the record, this information shall also be given to the information requester.</text> </paragraph> <paragraph num="(4)"> <text>With the consent of the information requester, any time limit imposed by §G(1)—(3) above, may be extended for an additional period not to exceed 30 days.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Notification of Persons Who May be Affected by Disclosure. Unless prohibited by law, the custodian may notify any person who could be adversely affected by disclosure of a record to the information requester that a request for inspection or copying of the record has been made. The custodian may consider the views of that person before deciding whether to disclose the record to the information requester.</text> </paragraph> <paragraph num="I."> <text>Records Temporarily Unavailable. If a requested public record is in the custody and control of the person to whom written request is made but is not immediately available for inspection or copying, the custodian shall, within 10 working days of the receipt of the request, notify the information requester and set a date and hour within a reasonable time for inspection or copying.</text> </paragraph> <paragraph num="J."> <text>Records Destroyed or Lost. If a requested record has been destroyed or lost, the custodian to whom the request is made shall, within 10 working days of the request, notify the information requester of this fact and explain in the response the reasons why the record cannot be produced.</text> </paragraph> <paragraph num="K."> <text>Review of the Denial.</text> <paragraph num="(1)"> <text>If a written request is denied by the custodian for a reason other than that the record is temporarily unavailable, the information requester may, within 30 days after receipt of the notice of the denial, request an administrative hearing.</text> </paragraph> <paragraph num="(2)"> <text>If the information requester requests a hearing, the hearing shall be conducted by a hearing officer designated by the Chairman and the hearing shall be governed by the Administrative Procedure Act,§251—254, Annotated Code of Maryland. After the hearing, the hearing officer shall prepare a recommended decision for the Board. The Chairman shall issue the final decision of the Board.</text> </paragraph> <paragraph num="(3)"> <text>If the hearing results in a total or partial denial of the written request, the information requester may file an appropriate action in the circuit court under§5 of the Public Information Act.</text> </paragraph> <paragraph num="(4)"> <text>If the information requester chooses not to request a hearing under§K(1), above, the information requester may file an action for judicial enforcement under§5 of the Public Information Act without exhausting that administrative remedy.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Disclosure Against Public Interest. If, in the opinion of the Board disclosure of any public record that is otherwise required to be disclosed under the Act would do substantial injury to the public interest, the Chairman may temporarily deny the request in writing and apply within 10 working days of the denial to the appropriate circuit court for an order permitting continued denial or restriction of access. Notice of the application filed with the circuit court shall be served on the information requester in the same manner that is provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> <paragraph num="M."> <text>Fees.</text> <paragraph num="(1)"> <text>The fee schedule for copying and certifying copies of records is as follows:</text> <paragraph num="(a)"> <text>Copies. The fee for each copy is 15 cents per page if reproduction is made by a photocopying machine within the Board's offices. If records are not susceptible to photocopying (for example, punch cards, magnetic tapes, blueprints, and microfilm), the fee for copies will be based on the actual cost of reproduction.</text> </paragraph> <paragraph num="(b)"> <text>Certification of Copies. If a person requests that a copy of a record be certified as a true copy, an additional fee of $1 per page shall be charged.</text> </paragraph> <paragraph num="(c)"> <text>Minimum Fee Charged. A charge will not be made if the total amount of the fee is $1 or less.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Notwithstanding §M(1), above, if the fees for copies, printouts, photographs, or certified copies of any record are specifically prescribed by a law other than the Public Information Act or this regulation, the prescribed fee shall be charged.</text> </paragraph> <paragraph num="(3)"> <text>If the custodian is unable to copy a record within the Board's offices, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Board's offices. The custodian shall either collect from the information requester a fee to cover the actual cost of reproduction or direct the information requester to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="(4)"> <text>Before copying a record, the custodian shall estimate the cost of reproduction and either obtain the agreement of the information requester to pay the cost or demand prepayment of any estimated fee before reproducing the record.</text> </paragraph> <paragraph num="(5)"> <text>Except as provided in §M(6), below, the Secretary may charge reasonable fees for official or employee time expended searching for requested records or for any time expended preparing records for inspection and copying.</text> </paragraph> <paragraph num="(6)"> <text>The Secretary may not charge any search or preparation fee for the first 2 hours of official or employee time that is needed to respond to a request for information.</text> </paragraph> <paragraph num="(7)"> <text>Upon request, the Secretary may waive or reduce any fee charged pursuant to this regulation if the custodian determines that the waiver or reduction is in the public interest. The Secretary shall consider, among other relevant factors, the ability of the information requester to pay the cost or fee.</text> </paragraph> <paragraph num="(8)"> <text>If the information requester requests that copies be mailed or delivered to the information requester, the custodian may charge the information requester for the cost of postage or delivery to the information requester.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Time of Inspection. An information requester may inspect any public record that he is entitled to inspect during the normal working hours of the Board.</text> </paragraph> <paragraph num="O."> <text>Place of Inspection. The place of inspection shall be the place where the document is located unless the custodian, after taking into account the information requester's expressed wish, determines that another place of inspection is more suitable and convenient.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Petitions for Adoption, Amendment, or Repeal of Regulations."> <paragraph num="A."> <text>General. These regulations set out procedures for interested persons to petition the Board for the promulgation, amendment, or repeal of regulations over which the Board has authority.</text> </paragraph> <paragraph num="B."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Petition” means a petition to promulgate, amend, or repeal a regulation.</text> </paragraph> <paragraph num="(2)"> <text>“Regulation” means rule as defined in the Administrative Procedure Act, Article 41,§244(b), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Who May File. Any person may file a petition requesting the promulgation, amendment, or repeal of any regulation over which the Board has rule-making authority.</text> </paragraph> <paragraph num="D."> <text>Form. The petition may be in the form of a letter or any other written form desired by the petitioner. It shall include a detailed description of the new, amended, or existing regulation which the petitioner seeks to have the Board promulgate, amend, or repeal and a statement of reasons and other information in support of the petition. It shall also include the name, address, and telephone number of the petitioner.</text> </paragraph> <paragraph num="E."> <text>The petition should be addressed to the Secretary, Hazardous Waste Facilities Siting Board, 60 West Street, Annapolis, Maryland 21401. Petitions will be considered submitted upon receipt in the office of the Secretary.</text> </paragraph> <paragraph num="F."> <text>Disposition. Within 60 days after receipt of the petition, the Board will either deny the petition, stating the reasons for denial, or initiate rulemaking proceedings.</text> </paragraph> <paragraph num="G."> <text>Reasons for Denial of a Petition. The Board may deny a petition to promulgate, amend, or repeal a regulation, for any reason permitted by law, including, but not limited to:</text> <paragraph num="(1)"> <text>That the Board does not have the authority to grant the petition;</text> </paragraph> <paragraph num="(2)"> <text>That the Board does not have adequate information or resources to evaluate the petition;</text> </paragraph> <paragraph num="(3)"> <text>That the Board does not have adequate resources to implement the requested regulation if it is adopted;</text> </paragraph> <paragraph num="(4)"> <text>That the Board previously adopted a regulation dealing with the same subject matter as that of the petition and rejected the position taken by the petitioner at that time, or the petitioner unreasonably failed to make his position known at that time; or</text> </paragraph> <paragraph num="(5)"> <text>That, in the legal discretion of the Board, the requested regulation change is contrary to or inconsistent with Board policy.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Rulemaking Proceedings.</text> <paragraph num="(1)"> <text>Rulemaking proceedings may include any type of action which the Board is authorized or required by law to take when promulgating, amending, or repealing regulations, including:</text> <paragraph num="(a)"> <text>Conducting studies (either before or after proposal of the regulation in the Maryland Register) to gather information in support of the regulation;</text> </paragraph> <paragraph num="(b)"> <text>Advance notice of proposed rulemaking if the Board determines that additional information or public comment is necessary or desirable before a proposed regulation can be formulated;</text> </paragraph> <paragraph num="(c)"> <text>Referral (either before or after proposal of the regulation in the Maryland Register) to advisory councils or other official or quasi-official agencies or groups responsible for reviewing the regulation;</text> </paragraph> <paragraph num="(d)"> <text>Proposal of the regulation in the Maryland Register;</text> </paragraph> <paragraph num="(e)"> <text>Reproposal of the regulation proposed in the Maryland Register if the Board determines that, before final adoption, the proposed regulation must be altered so that it is substantially different from its original text;</text> </paragraph> <paragraph num="(f)"> <text>Modification of the regulation change requested by the petitioner, either in form or substance, and either before or after proposal in the Maryland Register, to better reflect the Board's responsibilities, than reflected by the petitioner's request.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Despite the initiation of rulemaking proceedings, the Board may decide not to finally promulgate, amend, or repeal the requested regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Notice to the Petitioner and Other Persons. The Board shall send written notices to the petitioner and any other person requesting notification in accordance with this section, as follows:</text> <paragraph num="(1)"> <text>If the petition is denied, notice of the denial (including the reasons for the denial) shall be sent within 60 days of receipt of the petition.</text> </paragraph> <paragraph num="(2)"> <text>When the requested (or modified) regulation appears in the Maryland Register, notice of this event will be sent at the time of the appearance in the Maryland Register.</text> </paragraph> <paragraph num="(3)"> <text>When the Board finally disposes of the requested regulation (final promulgation, amendment, repeal, or a decision to discontinue the rulemaking), notice will be sent at this time. If the final disposition is a decision to discontinue the rulemaking, the notice will include a statement of the reasons for the discontinuance.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article,§3-704, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 29, 1981 (8:11 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended and regulations .05 and .06 adopted effective November 8, 1982 (9:22 Md. R. 2198)</annotation> </annotations> </chapter> <chapter num="02" heading="Determination of Need for a Facility and Suitability of a Site"> <regulation prefix="Regulation" num=".01" heading="Determination of Need."> <paragraph num="A."> <text>The Board shall periodically make a determination of the Statewide or regional need for a certain type of facility. The types and quantities, both current and projected, of hazardous waste generated in the State shall be estimated and the means available for their safe treatment, storage, and disposal determined. The Board may also determine the desirability of public or private ownership for a particular type of facility.</text> </paragraph> <paragraph num="B."> <text>Following this determination of need, the Board may adopt a policy concerning the need for a certain type of facility. This adopted policy shall constitute a conclusive determination and is not subject to adjudication in other administrative proceedings of the Board.</text> </paragraph> <paragraph num="C."> <text>In its sole discretion, the Board may decide to consider applications only for facilities which are consistent with its adopted policy or policies. Upon determination that there exists a need for a particular type of facility, the Board shall publish this need to the public in the Maryland Register and solicit applications for this facility.</text> </paragraph> <paragraph num="D."> <text>Before adoption of a need policy, the Board shall hold a public hearing or hearings conducted in accordance with COMAR 14.14.01.04. In advance of the hearing or hearings, the Board may make available for inspection or copying, any plans, surveys, reports, or studies made at the Board's direction which are relevant to the proceeding.</text> </paragraph> <paragraph num="E."> <text>The Department shall be consulted in preparation of plans and surveys for determination of need. Plans and surveys so prepared shall be provided to the Department for inclusion in the Statewide solid waste management plan required by the Resource Conservation and Recovery Act of 1976.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Determination of Suitability."> <paragraph num="A."> <text>The Board may consolidate consideration of applications which are in competition for the same sites or which are intended to fulfill the same need identified by Board policy. The applications may be evaluated comparatively to determine the most suitable site or sites and facility or facilities.</text> </paragraph> <paragraph num="B."> <text>The Board shall consider, as required by law, environmental, social, technical, and economic factors as they apply to a particular site. The Board will deny certification if any of these factors would create an unacceptable impact on public health, safety, or the quality of the environment.</text> </paragraph> <paragraph num="C."> <text>Issuance of a certificate does not convey authorization to build or operate a facility. The design, construction, and operation of a facility and the associated transportation of hazardous waste to and from the facility remain subject to all environmental, health, and safety restrictions that may be imposed by State or federal regulatory agencies under applicable law and regulation. The Board will coordinate its activities with those agencies having authority over hazardous waste. Requirements for the submission of information, technical determinations, or any other appropriate matter will be coordinated so as to avoid duplication and the possibility of inconsistent regulatory decisions. As set forth in these regulations, this may include deferring consideration of certain disputed issues of fact involving technical matters to those regulatory agencies with a particular expertise in them (with the consent of the agency). If the Board relies on or requires certain premises or conditions before it will issue a certificate, and these premises or conditions change as a result of the imposition of permit conditions by other regulatory agencies, the Board may, in its sole discretion, revoke or amend the certificate as appropriate.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article,§3-704, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 29, 1981 (8:11 Md. R. 976)</annotation> </annotations> </chapter> <chapter num="03" heading="Procedure for Application, Evaluation, and Issuance of Certificates"> <regulation prefix="Regulation" num=".01" heading="Application Procedure."> <paragraph num="A."> <text>Before submission of an application, a potential applicant may be requested to:</text> <paragraph num="(1)"> <text>Attend a preliminary conference with the Secretary to obtain information concerning the Board's procedures, guidelines, policies, and scheduling regarding submission of applications; and</text> </paragraph> <paragraph num="(2)"> <text>Have first applied for any regulatory permits required and to have progressed at least through evaluation of preliminary design concepts in pursuit of these permits.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Dates When Applications Are to Be Accepted.</text> <paragraph num="(1)"> <text>The Board shall specify dates when applications will be accepted.</text> </paragraph> <paragraph num="(2)"> <text>The Board may declare closed periods in which applications may not be accepted when:</text> <paragraph num="(a)"> <text>Studies are underway which have been directed by the Board, or which are being conducted by another source and which promise to materially improve the Board's capability to conduct an adequate review;</text> </paragraph> <paragraph num="(b)"> <text>The Board has directed the Service to submit an application;</text> </paragraph> <paragraph num="(c)"> <text>The Board is in the process of obtaining the resources necessary to conduct an adequate review.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>All dates governing submission of applications will be established by action of the Board in open session and published in the Maryland Register.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Schedule of Fees.</text> <paragraph num="(1)"> <text>The fee for processing an application for a certificate of public necessity shall consist of two parts, an initial application fee and a processing fee.</text> </paragraph> <paragraph num="(2)"> <text>The initial application fee for all applications shall be $10,000, to be paid by certified check. This fee shall cover the cost of initial review of an application. The initial application fee is not refundable.</text> </paragraph> <paragraph num="(3)"> <text>As part of the determination of completeness of an application, the Board will determine, in its sole discretion, the costs of evaluation and processing of the application. The estimated cost shall include the cost of additional staff, if any, consultants, hearing officer, reporter and transcripts, transportation, witnesses called by the Board, meeting places and associated expenses, and other costs which are attributable directly to the evaluation and processing of the application. The sum of these estimated costs shall constitute the processing fee to be paid by the applicant.</text> </paragraph> <paragraph num="(4)"> <text>Once determined and paid by the applicant, the processing fee is not subject to increase or decrease, except that if processing of an application is terminated before the start of any services which formed part of the fee calculation, that portion of the fee shall be refunded to the applicant. For any processing partially or fully undertaken, there shall be no refund of the fee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Submission and Evaluation of Application.</text> <paragraph num="(1)"> <text>The applicant shall submit 50 copies of the application to the Secretary.</text> </paragraph> <paragraph num="(2)"> <text>The initial application fee shall accompany the application. An initial application will not be reviewed until the full initial fee has been received.</text> </paragraph> <paragraph num="(3)"> <text>The Secretary will promptly acknowledge, by certified mail, the receipt of any application. Notice of receipt, however, does not signify any decision regarding the completeness of the application.</text> </paragraph> <paragraph num="(4)"> <text>The Secretary shall transmit five copies of the application to the Department as an application for a facility permit. Transmittal by the Board does not signify completeness of the application or relieve the applicant of any additional or subsequent requirements by the Department or any other regulatory agency.</text> </paragraph> <paragraph num="(5)"> <text>The Board may conduct working sessions with an applicant, in either open or closed session (depending on whether confidential information will be discussed, or otherwise as law permits) to further its review of the completeness of the application.</text> </paragraph> <paragraph num="(6)"> <text>The Board shall determine in its sole discretion the completeness of any application.</text> </paragraph> <paragraph num="(7)"> <text>The Board, upon a determination of completeness, shall:</text> <paragraph num="(a)"> <text>Advise the applicant of the amount of the processing fee. The determination of completeness will not be submitted for publication in the Maryland Register in accordance with§D(7)(b) until the Board has received from the applicant the full processing fee.</text> </paragraph> <paragraph num="(b)"> <text>Announce the determination by publication in the Maryland Register. The date of publication commences the 6-month processing time for consideration of applications required by the Act.</text> </paragraph> <paragraph num="(c)"> <text>The Secretary shall mail copies of the application to recipients designated by law and as directed by the Board.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The Board may discontinue consideration of a completed application at any time if it determines that:</text> <paragraph num="(1)"> <text>The application contains materially false information;</text> </paragraph> <paragraph num="(2)"> <text>A State or federal regulatory agency has denied a required permit or the Board has reason to believe that a required permit cannot be obtained;</text> </paragraph> <paragraph num="(3)"> <text>The Board amends its adopted policy as to the need for any type of facility; or</text> </paragraph> <paragraph num="(4)"> <text>There exists any changed circumstance regarding representations made in the application concerning ownership of the facility, financial responsibility, site design, or any other material fact.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Applications for changes in certified sites and facilities shall be processed by the Board under the same requirements, procedures, and restrictions as for an initial application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Content of Application."> <paragraph num="A."> <text>Applicant's Burden of Production. An applicant shall have the burden of setting forth in the application the information described in this regulation and all other factual, technical, or expert information which the applicant wishes the Board to consider in acting on the application. In addition, an applicant shall have the burden of setting forth in the application each inference or conclusion which the applicant is asking the Board to make in determining to issue a certificate of public necessity in accordance with the Natural Resources Article, §§3-702 and 3-705, Annotated Code of Maryland, and shall have the burden of relating in the application the informational basis for each inference or conclusion. The Board will not determine an application to be complete unless and until the applicant has met these burdens.</text> </paragraph> <paragraph num="B."> <text>Format.</text> <paragraph num="(1)"> <text>Each application shall contain a letter of intent signed by a person with the authority to obligate the firm or other entity submitting the application. The letter shall state the purpose of the application and shall reference supporting information. The applicant shall submit the application to the Board in care of the Secretary.</text> </paragraph> <paragraph num="(2)"> <text>The letter of intent shall be supported and accompanied by any forms required by the Board and supplemental reports or other materials which shall contain information of the type, quality, and detail that will permit adequate consideration of the application by the Board. The supporting reports and any supplemental information submitted shall be considered an integral part of the application.</text> </paragraph> <paragraph num="(3)"> <text>Each application shall contain a summary of the proposed site and facility. The summary shall include a factual description of the site, the facility and the treatment, disposal, or recovery process proposed and shall highlight any major risks to the environment and public health or safety associated with the proposal and describe the methods proposed to eliminate or reduce those risks. The applicant shall highlight in the summary the conclusions and inferences the applicant is asking the Board to make in accordance with §A.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Supporting Reports and Other Information.</text> <paragraph num="(1)"> <text>Each application shall include an ownership report which contains the following information:</text> <paragraph num="(a)"> <text>Legal description of applicant, including identification of all principal participants, such as major shareholders, corporate officers, affiliated firms;</text> </paragraph> <paragraph num="(b)"> <text>A current audited financial statement or statements of the applicant based upon an audit or audits by a certified public accountant including the accountant's opinions;</text> </paragraph> <paragraph num="(c)"> <text>A description of all liability insurance or other type of liability coverage the applicant has or plans to obtain for the proposed site and facility and a description of the financial and managerial arrangements for closure and post-closure care of the facility and site;</text> </paragraph> <paragraph num="(d)"> <text>A description of any other hazardous waste facilities operated or owned currently or in the past by the applicant with details of their compliance record.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Each application shall include a site-assessment report which contains a 7-1/2 minute series United States Geological Survey topographic map of the site vicinity and detailed information about the existing environmental, health, and community conditions surrounding the proposed site and facility. It shall describe any possible environmental, health, or community impacts which the proposed site and facility may cause, including descriptions of:</text> <paragraph num="(a)"> <text>The geology and hydrology surrounding the site;</text> </paragraph> <paragraph num="(b)"> <text>The surface and groundwater resources surrounding the site and facility and any positive or negative impacts the site and facility may have on these resources along with a list of all local, State, or federal water or soil permits or approvals the facility will be required to have and the applicant's plans for compliance;</text> </paragraph> <paragraph num="(c)"> <text>The ambient air quality surrounding the facility and site vicinity and any positive or negative impacts the site and facility may have on the surrounding air quality along with a list of any local, State, or federal air or noise permits or approvals the facility will be required to have and the applicant's plans for compliance;</text> </paragraph> <paragraph num="(d)"> <text>Any other existing environmental features of the site vicinity and any impacts which the site or facility may have on those features and any other State, local, or federal health or environmental permits or approvals the facility will be required to have before construction or operation and the applicant's plans for compliance;</text> </paragraph> <paragraph num="(e)"> <text>The surrounding land uses and affected communities and the existing local planning and zoning provisions;</text> </paragraph> <paragraph num="(f)"> <text>The transportation routes and methods the customers of the facility will generally use and the existing and proposed State, local, and federal plans for repair, maintenance, and control of those routes and methods;</text> </paragraph> <paragraph num="(g)"> <text>The volume of traffic the facility will generate and the traffic volume and accident records for the routes the customers will use;</text> </paragraph> <paragraph num="(h)"> <text>Any community or environmental mitigation or compensation plans the applicant has;</text> </paragraph> <paragraph num="(i)"> <text>Any known objections or endorsements by State and local governments and citizens in the site vicinity of the proposed facility.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The application shall include a facility and operation report which contains a detailed description and discussion of the mechanical, operational, and financial aspects of the facility and treatment, disposal, or recovery process including a discussion of:</text> <paragraph num="(a)"> <text>The designed capability and capacity of the facility;</text> </paragraph> <paragraph num="(b)"> <text>The types and amounts of wastes which will be accepted and their geographic origin;</text> </paragraph> <paragraph num="(c)"> <text>The relationship of the applicant to the customers including a sample customer contract form;</text> </paragraph> <paragraph num="(d)"> <text>The process or processes to be employed including its basic characteristics and principal limitations;</text> </paragraph> <paragraph num="(e)"> <text>Any emission controls, liquid or gaseous discharges, and solid residues the facility will emit or discharge which were not discussed in the site-assessment report;</text> </paragraph> <paragraph num="(f)"> <text>Normal operating procedures including waste acceptance requirements, compliance with the manifest system and other pertinent hazardous substances transportation laws and regulations, employee training, testing procedures and any company regulatory compliance monitoring;</text> </paragraph> <paragraph num="(g)"> <text>The emergency prevention and control plans including a description of on-site equipment and trained personnel and existing or proposed nearby state or local equipment or personnel such as fire equipment or rescue squads;</text> </paragraph> <paragraph num="(h)"> <text>Planned operational safeguards and monitoring of the facility following cessation of operation;</text> </paragraph> <paragraph num="(i)"> <text>Cost effectiveness of the process.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Form of the Application.</text> <paragraph num="(1)"> <text>The application should be contained in one or more three-ring loose leaf binders on preferably 8-1/2 x 11 inch paper.</text> </paragraph> <paragraph num="(2)"> <text>All maps required by this regulation shall be detachable, but may be fold-outs.</text> </paragraph> <paragraph num="(3)"> <text>The summary shall be capable of separate reproduction and distribution.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procedure for Issuing Certificate."> <paragraph num="A."> <text>The notice required by Regulation .01D(7) announcing that a completed application has been received shall contain a brief description of the applicant, site, and facility. It shall also indicate the date, time, and place of the information meeting between the applicant and interested members of the general public. It shall also indicate the possibility of a pre-hearing conference or further procedures as outlined in Regulation .04, below, if an adjudicatory hearing is to be convened. The notice shall advise that the completed application (including the applicant's summary) is available for inspection and copying at the office of the Secretary.</text> </paragraph> <paragraph num="B."> <text>This notice shall appear in the Maryland Register and in one or more newspapers of general circulation in the affected county or counties. The cost of all legal notices shall be paid for by the applicant.</text> </paragraph> <paragraph num="C."> <text>Any person (other than the applicant or person requesting an adjudicatory hearing pursuant to Regulation .04 below) desiring to make known to the Board other relevant facts concerning an application shall do so within 50 days of the public notice of the completed application. Failure to provide the Board with this information within the 50 day period will preclude its consideration by the Board, unless the Board determines that the information could not have been submitted during the 50-day period. The applicant shall have the opportunity to contest any such information.</text> </paragraph> <paragraph num="D."> <text>Information Meeting with Applicant.</text> <paragraph num="(1)"> <text>A meeting with interested members of the public shall be held in the county in which the proposed site is located at which the applicant will present and discuss its application. The information meeting is the first phase of the public participation process.</text> </paragraph> <paragraph num="(2)"> <text>If the proposed site is located in two or more counties, the meeting will be held at a location reasonably convenient and accessible to citizens in all these counties.</text> </paragraph> <paragraph num="(3)"> <text>Notice of the meeting shall be published in the Maryland Register and in one or more newspapers of general circulation in the affected county or counties and sent by ordinary mail to any person who has requested to receive notice of Board meetings. The costs of this notice shall be borne by the applicant.</text> </paragraph> <paragraph num="(4)"> <text>The meeting will be conducted by the Secretary. The applicant will present its proposal and entertain questions.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An adjudicatory hearing may be held after the informational meeting, at times and dates specified by the Board. An adjudicatory hearing is to resolve disputed issues of adjudicative fact raised by the application in accordance with Regulation .04 below, and the Administrative Procedure Act.</text> </paragraph> <paragraph num="F."> <text>Upon completion of the factual record on an application, including completion of any adjudicatory hearing, the Board shall schedule a public hearing for the purpose of receiving advice and comment on the application. The hearing shall be conducted in accordance with the procedures set out in Regulation .05 below.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Procedure for Adjudicatory Hearing on an Application."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Adjudicative fact” means facts which involve a particular party or facility and have no general applicability--for example, the types and quantities of pollutant emissions which one facility will have.</text> </paragraph> <paragraph num="(2)"> <text>“Adjudicatory hearing” means a contested case hearing conducted pursuant to the relevant provisions of the Act and the Administrative Procedure Act.</text> </paragraph> <paragraph num="(3)"> <text>“Requester” means the person requesting an adjudicatory hearing who seeks to or has become a party to the proceedings, and whose legal rights, duties, statutory entitlements, or privileges are adversely affected by the decision of the Board on an application.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Requests for Adjudicatory Hearings.</text> <paragraph num="(1)"> <text>Within 50 calendar days from the date of publication in the Maryland Register of the notice of the completed application, persons requesting an adjudicatory hearing shall submit to the Secretary, in writing, specific grounds for their grievances.</text> </paragraph> <paragraph num="(2)"> <text>Requesters for adjudicatory hearings shall do all of the following:</text> <paragraph num="(a)"> <text>State the name, address, and telephone number of the person making the request;</text> </paragraph> <paragraph num="(b)"> <text>Identify the specific rights, duties, statutory entitlements, or privileges of the requester which are adversely affected by the application for which the adjudicatory hearing is requested, and upon which the requester asserts his or her grievance;</text> </paragraph> <paragraph num="(c)"> <text>Identify any other person whom the requester represents;</text> </paragraph> <paragraph num="(d)"> <text>State separately and specifically the issues of adjudicative fact proposed to be considered at the hearing; and</text> </paragraph> <paragraph num="(e)"> <text>Describe the data and information which, if established through relevant and competent evidence at the hearing, would be adequate to justify resolution of the factual issue(s) in the way sought by the person.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Board's Consideration of Requests.</text> <paragraph num="(1)"> <text>The Board shall consider any requests for an adjudicatory hearing promptly and give notice of its decision to requesters by certified mail. Before an adjudicatory hearing is granted, the Board may request briefs from all requesters on the issue of standing or other threshold issues. The Board or its hearing officer will determine which parties will have standing as to each issue. Any requester may be admitted as a party for limited purposes.</text> </paragraph> <paragraph num="(2)"> <text>Requests for an adjudicatory hearing will be granted if the requester has shown all of the following:</text> <paragraph num="(a)"> <text>There is a genuine issue of material adjudicative fact for resolution at a hearing. An adjudicatory hearing will not be granted on issues of policy or law or on issues of fact which are of no consequence to the determination of whether or not a certificate should issue.</text> </paragraph> <paragraph num="(b)"> <text>The factual issue is capable of being resolved by available and specifically identified evidence. A hearing will not be granted on the basis of mere allegations or denial or general descriptions of positions and contentions.</text> </paragraph> <paragraph num="(c)"> <text>The data and information identified in the request for hearing, if established through relevant and competent evidence at a hearing, would be adequate to justify resolution of the factual issue in the way sought by the person. A hearing will be denied if the Board concludes that, even assuming the truth and accuracy of all of the data and information submitted in support of the objection and request for hearings, they are insufficient to justify the factual determination urged.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Pre-hearing Conference.</text> <paragraph num="(1)"> <text>The hearing officer may hold a pre-hearing conference to determine standing or any other preliminary matters.</text> </paragraph> <paragraph num="(2)"> <text>At the discretion of the hearing officer, persons other than parties may attend pre-hearing conferences.</text> </paragraph> <paragraph num="(3)"> <text>At a pre-hearing conference or within some reasonable time set by the hearing officer, each party shall make available to the other parties the names of experts and other witnesses the party expects to call, together with a brief written summary of their anticipated testimony.</text> </paragraph> <paragraph num="(4)"> <text>At a pre-hearing conference, or within some reasonable time set by the hearing officer, the following matters shall be considered:</text> <paragraph num="(a)"> <text>The documents within the Board's file shall be identified.</text> </paragraph> <paragraph num="(b)"> <text>Stipulations and admissions of facts and the genuineness of documents and other matters upon which there is agreement shall be identified.</text> </paragraph> <paragraph num="(c)"> <text>Matters of which official notice may be taken shall be identified.</text> </paragraph> <paragraph num="(d)"> <text>Disputed issues of a purely legal nature shall be identified and submitted by the hearing officer to the Attorney General.</text> </paragraph> <paragraph num="(e)"> <text>Disputed issues of policy shall be identified and deferred for consideration until the public hearing held on the application.</text> </paragraph> <paragraph num="(f)"> <text>Disputed issues of fact which concern technical matters (plans, specifications, construction drawings, process controls, operation procedures, etc.) subject to determination by the Department in connection with issuance of a facility or discharge permit may be deferred, at the hearing officer's sole discretion, to the Department with the Department's concurrence. Until the resolution of the disputed factual issue by the Department or issuance of necessary permits, the Board shall presume resolution of the disputed fact in a manner consistent with issuance of the certificate. Post-permit review by the Board shall be as set forth in Regulation .07E.</text> </paragraph> <paragraph num="(g)"> <text>When possible, consideration shall be given to and decisions made upon objections to the introduction into evidence at the hearing of any written documents, papers, exhibits, testimony, or materials proposed to be introduced at the hearing by a party. The hearing officer may determine to receive evidence on an issue by issue basis. To the extent possible, parties of like interest in the application shall consolidate the presentation of their cases.</text> </paragraph> <paragraph num="(h)"> <text>A schedule of presentation order for the following shall be established:</text> <paragraph num="(i)"> <text>Submissions of written statements;</text> </paragraph> <paragraph num="(ii)"> <text>Presentation of oral and written statements;</text> </paragraph> <paragraph num="(iii)"> <text>Presentation of oral, direct, and cross-examinations;</text> </paragraph> <paragraph num="(iv)"> <text>Presentation of oral arguments.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>The hearing officer shall prepare a written pre-hearing order reciting the actions taken at the pre-hearing conference.</text> </paragraph> </paragraph> <paragraph num="E."> <text>General Procedure for Hearing. Adjudicatory hearings shall be conducted generally in the following order, unless modified by the hearing officer during the pre-hearing conference:</text> <paragraph num="(1)"> <text>Call of the case by the hearing officer;</text> </paragraph> <paragraph num="(2)"> <text>Opening statements by the parties;</text> </paragraph> <paragraph num="(3)"> <text>Presentation of the case by the applicant and intervenors in favor of the application:</text> <paragraph num="(a)"> <text>Direct evidence,</text> </paragraph> <paragraph num="(b)"> <text>Cross-examination in an order to be determined by the hearing officer;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Presentation of the case by opponent or opponents in an order to be determined by hearing officer:</text> <paragraph num="(a)"> <text>Direct evidence by the opposition,</text> </paragraph> <paragraph num="(b)"> <text>Cross-examination by the applicant or intervenors in favor of the application, or both;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Written rebuttals to be filed within 3 days of the close of oral testimony:</text> <paragraph num="(a)"> <text>Concluding arguments by the applicant and other proponents,</text> </paragraph> <paragraph num="(b)"> <text>Concluding arguments by the opponents;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Concluding arguments shall be heard by a majority of the Board. The Board may also examine witnesses.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The party who raises material issues of fact has the burden to present an affirmative case upon the issues. The burden of production on any specific issue may vary between the parties at the discretion of the hearing officer. The hearing officer may issue a summary dismissal of any issue of fact after presentation of a party's case when, even assuming the truth and accuracy of all evidence submitted by that party, it is insufficient to justify the factual determination urged. The applicant has the ultimate burden of persuasion on all factual issues adjudicated.</text> </paragraph> <paragraph num="G."> <text>Authority and Duty of Hearing Officer.</text> <paragraph num="(1)"> <text>The hearing officer shall have the authority and duty to conduct a fair and impartial hearing, to take action to avoid unnecessary delay in the disposition of the proceedings, and to maintain order.</text> </paragraph> <paragraph num="(2)"> <text>The hearing officer shall have all powers necessary to these ends, including the following:</text> <paragraph num="(a)"> <text>To administer oaths and affirmations;</text> </paragraph> <paragraph num="(b)"> <text>To issue summonses for witnesses and subpoenas requiring the production of documents;</text> </paragraph> <paragraph num="(c)"> <text>To rule upon offers of proof and receive relevant and material evidence;</text> </paragraph> <paragraph num="(d)"> <text>To consider and rule upon all procedural motions and other motions appropriate to the proceedings;</text> </paragraph> <paragraph num="(e)"> <text>To examine witnesses;</text> </paragraph> <paragraph num="(f)"> <text>To maintain order, limit unduly repetitious testimony, and limit the time for presentations;</text> </paragraph> <paragraph num="(g)"> <text>To identify and submit issues of law to the Attorney General;</text> </paragraph> <paragraph num="(h)"> <text>To identify and determine appropriate issues of fact to be deferred to the Department;</text> </paragraph> <paragraph num="(i)"> <text>To grant a continuance for good cause shown;</text> </paragraph> <paragraph num="(j)"> <text>To require parties to submit proposed findings of fact.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Parties may cross-examine a witness who appears at an adjudicatory hearing to the extent that cross-examination is necessary for full and true disclosure of the facts. The provisions of the Administrative Procedure Act shall apply to the adjudicatory hearing.</text> </paragraph> <paragraph num="I."> <text>In multi-party proceedings, the hearing officer may limit cross-examination to one party on each side if he or she is satisfied that the cross-examination by that party will adequately protect the other parties. Other parties may engage in cross-examination relevant to matters not adequately covered by previous cross-examination.</text> </paragraph> <paragraph num="J."> <text>Rulings of the hearing officer on the admissibility of evidence, the propriety of cross-examination, and other procedural matters shall be final and shall appear in the record. Parties shall be presumed to have taken exception to an adverse ruling.</text> </paragraph> <paragraph num="K."> <text>Record of Adjudicatory Hearing.</text> <paragraph num="(1)"> <text>All orders issued by the hearing officer, stenographic notes or tapes, or transcripts of oral hearings or arguments, written statements of position, written direct and rebuttal testimony, and any other data, studies, reports, documentation, information, and other written matter submitted in the adjudicatory hearing, shall be available to the public in the office of the Secretary upon compilation.</text> </paragraph> <paragraph num="(2)"> <text>Adjudicatory hearings shall be either stenographically reported verbatim or tape recorded, and then may be transcribed. Stenographic notes or tapes, or originals of the transcript, shall be filed with the record along with all exhibits.</text> </paragraph> <paragraph num="(3)"> <text>The hearing officer shall certify that the stenographic notes or tapes, or transcripts and exhibits are received, and each of the parties shall be so notified by certified mail. Any party who desires a copy of a transcript of the hearing may request a copy from the hearing office and pay the costs. If the transcript is prepared by a private stenographer, the hearing officer may direct interested persons to make arrangements for copies by dealing directly with the reporter.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Within 10 calendar days after mailing to the parties notice of certification of the stenographic notes, tapes, or transcript, any party may file with the hearing officer proposed findings of fact and conclusions and a brief in support thereof, each containing appropriate references to the record. A copy of the findings, conclusions, and brief shall be mailed to every other party at the same time. The time for filing may be shortened or extended by the hearing officer only for good cause shown.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Procedure for Public Hearing on an Application."> <paragraph num="A."> <text>After completion of the factual record for each application being considered, the Board shall schedule a public hearing. The hearing shall be held in the county in which the proposed site is located. If the proposed site is located in two or more counties, the hearing will be held at a location reasonably convenient and accessible to the citizens of all these counties.</text> </paragraph> <paragraph num="B."> <text>Notice.</text> <paragraph num="(1)"> <text>Notice will be given by:</text> <paragraph num="(a)"> <text>Publication at least 15 calendar days in advance in the Maryland Register and one or more newspapers of general circulation in the county or counties in which the proposed site is located;</text> </paragraph> <paragraph num="(b)"> <text>Ordinary mail to the governing body of any county in which the proposed site is located and the governing body of every adjoining county and every incorporated municipality within 10 miles of the site; and</text> </paragraph> <paragraph num="(c)"> <text>Ordinary mail to any person who has requested to receive notice of Board meetings.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Arrangements for all legal notices shall be made by the Board at the expense of the applicant.</text> </paragraph> </paragraph> <paragraph num="C."> <text>At least a majority of the members of the Board shall be present at the public hearing.</text> </paragraph> <paragraph num="D."> <text>The Chairman may be the hearing officer or the chairman may designate another Board member or person as hearing officer.</text> </paragraph> <paragraph num="E."> <text>At the public hearing the Board shall:</text> <paragraph num="(1)"> <text>Announce any findings of facts which may have been determined in any adjudicatory hearing or by the Department or otherwise in respect to a particular application.</text> </paragraph> <paragraph num="(2)"> <text>Receive advice and comments from interested persons as to the suitability of the site in question.</text> </paragraph> <paragraph num="(3)"> <text>Receive advice and comment from interested persons on any issues of policy identified by the Board as being presented by the application. Any issues so identified by the Board shall be stated in the public notice announcing the public hearing.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Board may permit the parties to any adjudicatory hearing to present their final arguments at the public hearing or may schedule the arguments at another meeting before the public hearing as time and circumstances permit.</text> </paragraph> <paragraph num="G."> <text>The record shall remain open for written public advice and comment for a period to be specified by the Board, but not less than 15 days.</text> </paragraph> <paragraph num="H."> <text>The Board may establish procedural rules governing the conduct of hearings, consolidation of hearings, ceding of time, time limits, and other such matters as the Board deems appropriate.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Decision to Issue or Deny a Certificate."> <text>After consideration of information submitted as part of the application, findings of fact determined at any adjudicatory hearing or otherwise, the advice and comments of interested persons, and other relevant information, the Board shall announce its decision to grant or deny a certificate. The Board shall promptly notify by certified mail, the applicant, other parties to any adjudicatory hearings, and the chief executive officer of any municipality within 10 miles of the proposed site and of any affected county of its decision. The Board shall include in the notice its reasons for granting or denying a certificate and shall state the terms and conditions of the certificate.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Form, Terms, and Conditions of Certificate."> <paragraph num="A."> <text>The certificate shall state the following:</text> <paragraph num="(1)"> <text>A statement in large print that it is a Certificate of Public Necessity;</text> </paragraph> <paragraph num="(2)"> <text>A citation to the statutory authority for issuance;</text> </paragraph> <paragraph num="(3)"> <text>The signatures of the Chairman and the Secretary;</text> </paragraph> <paragraph num="(4)"> <text>The effective date and, when appropriate, a renewal date;</text> </paragraph> <paragraph num="(5)"> <text>The purpose for which the certificate is issued;</text> </paragraph> <paragraph num="(6)"> <text>A description of the site and proposed facility;</text> </paragraph> <paragraph num="(7)"> <text>All terms and conditions;</text> </paragraph> <paragraph num="(8)"> <text>Any referenced exhibits to be attached or incorporated by reference into the certificate.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A complete copy of the certificate including all conditions, shall be prominently displayed by the applicant at the facility, or, before construction, at a location reasonably accessible for inspection.</text> </paragraph> <paragraph num="C."> <text>A certificate may be assigned or transferred only with the prior permission of the Board. The Board may require additional information and appearance before the Board.</text> </paragraph> <paragraph num="D."> <text>The Board shall impose terms and conditions necessary to assure that a facility and site are consistent with the purpose of the certificate and with the purposes of the Act. These terms and conditions may include but are not limited to:</text> <paragraph num="(1)"> <text>The specific geographic area for which the certificate applies;</text> </paragraph> <paragraph num="(2)"> <text>A general description of the facility including:</text> <paragraph num="(a)"> <text>Facility type,</text> </paragraph> <paragraph num="(b)"> <text>Technology to be applied in treating, storing, recycling, or disposing of hazardous waste at the facility,</text> </paragraph> <paragraph num="(c)"> <text>Required buffer areas or buffer mechanisms,</text> </paragraph> <paragraph num="(d)"> <text>Description of types and quantities of wastes, and</text> </paragraph> <paragraph num="(e)"> <text>Transportation routes.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>During the process of obtaining any other necessary permits, the design and operation of the site or facility may be altered in such a way that it results in significantly different impacts on the site or surrounding community than were considered by the Board in its decision to issue a certificate. If this occurs, the Board shall review the changes and consider their effects. The Board may decide to revoke the certificate or change or impose new terms and conditions on the certificate as specified in§D after such hearings as may be required by law. The decision shall be within the sole discretion of the Board and shall be final. The certificate holder shall be notified as to the effectiveness of the certificate within 3 weeks after the issuance of these permits.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article,§3-704; Article 41,§248; Article 76A, §2(a), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 29, 1981 (8:11 Md. R. 976)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C and D amended effective December 7, 1981 (8:24 Md. R. 1937)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective September 26, 1983 (10:19 Md. R. 1691)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective November 8, 1982 (9:22 Md. R. 2198)</annotation> </annotations> </chapter> <chapter num="04" heading="Enforcement of Certification"> <regulation prefix="Regulation" num=".01" heading="Monitoring and Enforcement of Terms and Conditions."> <paragraph num="A."> <text>The Board shall enter into agreements with the Department or other appropriate governmental agencies for the monitoring of compliance with the terms and conditions of any certificate. Evidence of violations received by the Board shall be referred to the appropriate enforcement agency.</text> </paragraph> <paragraph num="B."> <text>In the certificate, the Board shall, to the extent feasible, identify the agency or agencies responsible for monitoring and enforcement activities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Revocation of Certificate."> <paragraph num="A."> <text>It shall be the policy of the Board that reasonable efforts shall be made to resolve complaints or violations in a manner which encourages voluntary compliance and full cooperation with all parties. However, if the frequency, pattern, or type of complaint or violation is of serious concern to the Board, or upon the request of any appropriate federal, State, or local government or agency, the Board may revoke a certificate.</text> </paragraph> <paragraph num="B."> <text>The revocation process shall include the following procedural elements:</text> <paragraph num="(1)"> <text>The Board shall notify the certificate holder of its concern by certified mail. The notice shall state that the Board is considering possible revocation proceedings and shall direct that the certificate holder show cause why these proceedings should not be initiated. The certificate holder shall have 15 calendar days from receipt of the letter to respond.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of the response from the certificate holder or if no response is given, the Board may decide to:</text> <paragraph num="(a)"> <text>Take no further action;</text> </paragraph> <paragraph num="(b)"> <text>Hold an adjudicatory hearing pursuant to the requirements of the Administrative Procedure Act to consider revocation of the certificate or imposition of additional terms or conditions on the certificate holder.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Renewal of Certificate."> <paragraph num="A."> <text>A certificate which contains a time limit on the life of the certificate shall be renewed by the Board for an appropriate term after the following:</text> <paragraph num="(1)"> <text>A public hearing is conducted at which the applicant and public may present evidence and testimony concerning the renewal.</text> </paragraph> <paragraph num="(2)"> <text>A review is conducted by the Board which includes consideration of the:</text> <paragraph num="(a)"> <text>Continued need for the facility;</text> </paragraph> <paragraph num="(b)"> <text>Quality of operation of the facility; and</text> </paragraph> <paragraph num="(c)"> <text>Compliance with the conditions of the certificate.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Board may renew the certificate without change or may amend the certificate as appropriate.</text> </paragraph> <paragraph num="C."> <text>The Board may not revoke or refuse to renew the certificate unless the procedure for revocation in Regulation .02 is followed.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §3-704, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 29, 1981 (8:11 Md. R. 976)</annotation> </annotations> </chapter> <chapter num="05" heading="Treatment and Disposal Needs for the State"> <regulation prefix="Regulation" num=".01" heading="Findings."> <paragraph num="A."> <text>Hazardous Waste Generation and Disposition in 1981-1982.</text> </paragraph> <paragraph num="B."> <text>Hazardous Waste Management Alternatives.</text> <paragraph num="(1)"> <text>Reduction, Recovery, and Reuse. The Board finds that the reduction of hazardous waste generated and the recovery, re-use, or exchange of hazardous waste are generally preferable to either the treatment or burial of hazardous wastes. The Board recognizes, however, that the waste generator, not the Board, is the key party in implementing reduction, recovery, or re-use. The Board can therefore only endorse and support reduction, recovery, and re-use practices and the implementation of policies or incentives that make them more likely to be employed. The Board notes that reduction, recovery, and re-use are likely to broaden in capability and improve in efficiency under encouraging regulatory and economic conditions, and that in the future less waste would then require treatment, or burial or other long-term storage.</text> </paragraph> <paragraph num="(2)"> <text>Treatment. The Board finds that total dependence on treatment, including aqueous treatment, incineration, or other techniques that reduce the hazard or volume of a waste, is not feasible at this time. The Board notes that some existing techniques are being improved and new techniques are being developed, and that in the future more wastes will be capable of being treated. The Board finds that treatment facilities to reduce the hazard or volume of residue or waste that would otherwise be buried are desirable additions to the options available in Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Disposal. The Board finds that ultimate or indefinite disposal by burial or long-term storage of certain hazardous wastes, including residues from treatment processes, are the only feasible alternatives for many Maryland wastes even though burial is the means of disposition generally least preferred by the Board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Hazardous Waste Treatment and Disposal Needs Projections.</text> <paragraph num="(1)"> <text>The Board finds that hazardous waste treatment and disposal needs depend upon the types and quantities generated as influenced by economic conditions, prices and availability of disposition services, and policies of state and federal governments.</text> </paragraph> <paragraph num="(2)"> <text>The Board notes the following facts concerning specific types and quantities:</text> <paragraph num="(a)"> <text>Overall changes in actual generation of hazardous waste since 1980 have been small since previous findings based on calendar year 1980. Significant increases in hazardous waste generation are unlikely. The quantity of hazardous waste generated per year is likely to decrease with time.</text> </paragraph> <paragraph num="(b)"> <text>On-site disposition is likely to continue in its present pattern. Waste now being treated or disposed of on-site is not likely to become a significant off-site demand. The large reduction in on-site disposition between calendar year 1980 and the August 1981 to July 1982 period was due largely to regulatory decisions that certain wastes were not hazardous. Shifts from on-site to off-site demand appears to be less than 10 percent of the total off-site demand.</text> </paragraph> <paragraph num="(c)"> <text>Most of the 41,000 tons of hazardous waste exported in 1981-1982 is likely to remain in the State if treatment or disposal facilities are available.</text> </paragraph> <paragraph num="(d)"> <text>Oils and solvents are sufficiently valuable that with few exceptions industry will return them to useful purposes. The recovery or use of oil and solvents as fuel may become subject to increased regulation in the future and more oils and solvents may require capacity in treatment facilities.</text> </paragraph> <paragraph num="(e)"> <text>The Board notes that the Maryland Environmental Service's Hawkins Point Hazardous Waste Landfill, assuming issuance of a new facility permit, is estimated to provide burial capacity for The Allied Corporation's hazardous waste for approximately 8 years. The Hawkins Point Landfill, assuming issuance of a new-facility permit and favorable circumstances, could provide burial capacity for the general industrial community's hazardous waste for approximately 10 years. Under unfavorable circumstances the capacity available to the general industrial community could be significantly less than 5 years.</text> </paragraph> <paragraph num="(f)"> <text>The Board finds that manifests recorded 79,000 tons imported in 1981-1982, and that this demand could continue or increase in the future.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Board finds that the following quantities and types of waste make up a reasonable estimate of the Maryland annual disposal demand. This estimate includes primary industrial generation, residues from waste treatment, shifts from on-site to off-site disposition, changes in disposition methods as a result of anticipated policy changes, and waste exported in 1981-1982 that was assumed to remain in the State in the future. The estimate does not include imported waste. The quantities and types of waste are:</text> <paragraph num="(a)"> <text>Wastes in which water is a major component, and which may be neutralized, detoxified, or otherwise treated: 87,000 tons;</text> </paragraph> <paragraph num="(b)"> <text>Wastes of primarily organic make-up which could be managed in a variety of ways, one of which may be incineration; 13,000 tons;</text> </paragraph> <paragraph num="(c)"> <text>Wastes which will not burn and are not otherwise amenable to treatment to eliminate their hazardous nature, for which secure land burial is the appropriate means of disposal: 169,000 tons.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Hazardous Waste Landfill Need.</text> <paragraph num="(1)"> <text>Total Landfill Capacity.</text> <paragraph num="(a)"> <text>Noting that some out-of-State hazardous waste and some non-hazardous waste may be received at a landfill, that the data base itself has inherent uncertainties, and that some flexibility is required, the Board hereby finds that the State's annual hazardous waste landfill disposal capacity need is 200,000 tons per year.</text> </paragraph> <paragraph num="(b)"> <text>The Board notes that landfill capacity is needed as the disposal method for those wastes of unreactive or undecomposable character for which alternative technology has not been developed or for which a treatment facility has not been built.</text> </paragraph> <paragraph num="(c)"> <text>It should also be noted that most waste treatment methods produce a waste which must be landfilled.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Number of Landfills. The Board finds that a single landfill offers economy of scale but that multiple facilities offer price competition and an increased overall system reliability, which would permit the closing of one landfill without destroying the ability to dispose of waste safely. Multiple landfills will also reduce the impact on a single area. The Board, therefore, finds a need for a total of either two or three secure landfills in the State.</text> </paragraph> <paragraph num="(3)"> <text>Capacity of Individual Landfills. The Board finds that any general purpose hazardous waste landfill should have a total capacity of at least 5 years of the total Maryland hazardous waste generation designated for landfill, and should be designed for a yearly burial of at least 50 percent of Maryland hazardous waste generation suitable for landfill.</text> </paragraph> <paragraph num="(4)"> <text>Landfill to Meet Special Needs. The Board also recognizes that there may be a need for a smaller hazardous waste landfill in an area which is convenient to a single hazardous waste generator or group of hazardous waste generators and which meets their special disposal needs.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Incineration Need.</text> <paragraph num="(1)"> <text>The Board finds that incineration of certain, primarily organic, materials is an alternative to landfill disposal. The Board finds that incinerator capacity in Maryland is presently insufficient to treat the estimated 13,000 tons per year in the incinerable category generated in Maryland but that unused capacity is available a short distance away, in New Jersey and at other locations in the United States. The Board believes that incineration may offer net benefits in spite of the fact that only a small fraction of the waste is incinerable and that the cost of incineration is very high. The Board also finds that incineration is not entirely without risk. For treatment of some types of waste, incineration involves fewer short-term risks than alternative treatment methods, while burial involves irrevocable use of land and long-term risks. The Board notes that “incinerable” means that the substance can be decomposed by fire, not necessarily that the substance will support combustion.</text> </paragraph> <paragraph num="(2)"> <text>The Board finds that due to the high cost of incineration, alternative management techniques (reduction, re-use, exchange, innovative treatment) are likely to reduce the quantity of waste in the incinerable category. The Board also notes that without a categorical prohibition against disposing of incinerable wastes in landfills, a generator is free to choose between two very differently priced alternatives.</text> </paragraph> <paragraph num="(3)"> <text>The Board therefore finds, in view of the quantities and circumstances involved, that large-scale incinerator capacity is not crucial to the State's management needs in the immediate future. It appears unlikely that the market will attract the investment necessary to build a major incinerator as described in Regulation .02E.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Aqueous Treatment Facilities Need. The Board notes the existence of two facilities in Maryland capable of treating hazardous wastes of which water is a major component. The Board recognizes, however, that competition will provide economic benefits to hazardous waste generators, and that existing facilities may not provide all the services needed by Maryland generators. The Board finds that additional treatment capacity and capability is desirable.</text> </paragraph> <paragraph num="G."> <text>Facility Location. The Board finds that most of the hazardous waste generated in Maryland originates in the Baltimore area, although nearly all areas of the State contribute some hazardous waste. The Board wishes to minimize, consistent with other considerations, the expense and risk to the general public of long distance transport of hazardous materials. Therefore the Board finds that the disposal needs will best be met through facilities whose location takes into account these concerns.</text> </paragraph> <paragraph num="H."> <text>Special Needs. The Board finds that a role may exist for special purpose facilities capable of, for instance, consolidating small lots of solvent for recovery or small lots of waste for treatment, or for satisfying landfill needs as outlying locations and/or of magnitudes different from those determined above. Other treatment facilities (such as evaporation or stabilization) designed to reduce the hazard or volume of the waste to be landfilled represent a desirable addition to the available treatment/disposal options.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Implementation."> <paragraph num="A."> <text>Waste Reduction and Recovery. The Board encourages applicants to propose measures in their applications which can be reasonably expected to reduce or eliminate waste quantities or to recover wastes.</text> </paragraph> <paragraph num="B."> <text>Conditions. The Board may impose conditions on any certificate of public necessity which expedite, enhance, or enforce the more preferable alternatives and minimize reliance on the less preferable alternatives. These conditions shall be imposed in cooperation with the Maryland Department of Health whenever possible.</text> </paragraph> <paragraph num="C."> <text>Landfill.</text> <paragraph num="(1)"> <text>The Board will consider applications for secure hazardous waste landfills designed to have a total capacity of at least 5 years of Maryland's annual landfill need (200,000 tons) determined to exist by Regulation .01D, and an annual burial capacity of at least 50 percent of the annual landfill need.</text> </paragraph> <paragraph num="(2)"> <text>At the present time, the Board will approve not more than two applications for landfills for general commercial use.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Exchange, Recovery, and Transfer Facilities. The Board will consider applications for facilities that will promote waste recovery and the more efficient use of other recovery or treatment facilities.</text> </paragraph> <paragraph num="E."> <text>Specialty Units. The Board will consider applications for aqueous treatment or incineration units intended to meet particular needs or to serve specific groups of Maryland generators identified in the application.</text> </paragraph> <paragraph num="F."> <text>Aqueous Treatment Facility. The Board will consider an application for one broad-capability aqueous treatment facility.</text> </paragraph> <paragraph num="G."> <text>Incinerator Facility. The Board will consider an application for one major incinerator facility.</text> </paragraph> <paragraph num="H."> <text>Captive Facilities. The need and priority of a “captive” (generator-owned) facility, either on-site or off-site, will be judged according to its importance to the generator and the extent to which the facility affects or serves the overall needs of the State.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article,§3-704; Article 41,§248; Article 76A,§2(a), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 21, 1981 (8:25 Md. R. 1997)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective September 26, 1983 (10:19 Md. R. 1692)</annotation> </annotations> </chapter> </subtitle> <subtitle num="15" heading="College Savings Plans of Maryland"> <chapter num="01" heading="Master Agreement for Contract Holders" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: September 6, 1999 (26:18 Md. R. 1376)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 repealed effective April 1, 2013 (40:6 Md. R. 475)</annotation> </annotations> </chapter> <chapter num="02" heading="Maryland College Investment Plan"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Board” means the Maryland Higher Education Investment Board.</text> </paragraph> <paragraph num="(2)"> <text>“Contributor” means the person who establishes an investment account on behalf of a qualified designated beneficiary.</text> </paragraph> <paragraph num="(3)"> <text>“Investment account” means an account established by a contributor under this subtitle on behalf of a qualified designated beneficiary for the purpose of applying distributions toward qualified higher education expenses at eligible educational institutions. An investment account may include more than one investment option.</text> </paragraph> <paragraph num="(4)"> <text>“Investment option” means the investment portfolios available to contributors in the plan.</text> </paragraph> <paragraph num="(5)"> <text>“Master account statement” means the statement of the beginning balance, contributions, withdrawals, and the ending value of each investment option selected by a contributor for a particular qualified designated beneficiary.</text> </paragraph> <paragraph num="(6)"> <text>“Plan” means the Maryland College Investment Plan.</text> </paragraph> <paragraph num="(7)"> <text>“Qualified designated beneficiary” has the meaning stated in §529(e) of the Internal Revenue Code.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Duties, Responsibilities, and Authority over the Plan."> <text>To carry out Education Article, Title 18, Subtitle 19A, Annotated Code of Maryland, the Board has been vested with the authority to adopt regulations which are consistent with those provisions and to establish the form of the Plan, including determinations as to the establishment of a trust and the offering of multiple investment options.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Form of Plan."> <text>The Plan shall be established in the form of a trust titled the Maryland College Investment Plan Trust. The Plan shall offer not less than three and not more than 20 investment options.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Statements."> <text>At least annually, each contributor shall receive a master account statement that provides separate accounting for each investment option selected by the contributor for a particular qualified designated beneficiary and itemized contributions and withdrawals for each investment option during the period covered by the master account statement. The master account statement shall identify each investment option selected by the contributor for the qualified designated beneficiary. The master account statement may identify each investment option by a separate identifying number. A contributor shall receive a separate master account statement for each qualified designated beneficiary for whom the contributor establishes an investment account.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §18-1905, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective November 11, 2002 (29:24 Md. R. 1915); emergency status extended at 30:6 Md. R. 417; emergency status expired July 1, 2003; adopted permanently effective July 21, 2003 (30:14 Md. R. 938)</annotation> </annotations> </chapter> </subtitle> <subtitle num="16" heading="Veterans' Home Commission"> <chapter num="01" heading="Admission to Charlotte Hall Veterans' Home" reason="Repealed. See 35.04.01" /> </subtitle> <subtitle num="17" heading="Maryland Cannabis Administration"> <chapter num="01" heading="Definitions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined</text> <paragraph num="(1)"> <text>“Administration” means the Maryland Cannabis Administration established under Alcoholic Beverages and Cannabis Article, §36-201, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Advisory Council” means the Cannabis Public Health Advisory Council established under Health-General Article, §13–4502, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Agent.</text> <paragraph num="(a)"> <text>“Agent” means an employee, a volunteer, or any other authorized person who acts for or at the direction of a cannabis licensee or cannabis registrant.</text> </paragraph> <paragraph num="(b)"> <text>“Agent” includes:</text> <paragraph num="(i)"> <text>Cannabis licensee agent;</text> </paragraph> <paragraph num="(ii)"> <text>Cannabis registrant agent;</text> </paragraph> <paragraph num="(iii)"> <text>Owners; and</text> </paragraph> <paragraph num="(iv)"> <text>Management companies or individuals who are employees, volunteers, or otherwise authorized by a management company.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Cannabis.</text> <paragraph num="(a)"> <text>“Cannabis” means the plant cannabis sativa l. and any part of the plant, including all non-synthetically derived, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration greater than 0.3 percent on a dry weight basis.</text> </paragraph> <paragraph num="(b)"> <text>“Cannabis” includes cannabis products, seeds, seedlings, immature plants, and clones.</text> </paragraph> <paragraph num="(c)"> <text>“Cannabis” does not include hemp or hemp products, as defined in Agriculture Article, §14–101, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Cannabis Product.</text> <paragraph num="(a)"> <text>“Cannabis product” means a product that is composed of cannabis, cannabis concentrate, cannabis extract, or any other ingredient and is intended for use or consumption.</text> </paragraph> <paragraph num="(b)"> <text>“Cannabis product” includes any product produced and regulated under this subtitle, including:</text> <paragraph num="(i)"> <text>Cannabis vaporizing devices;</text> </paragraph> <paragraph num="(ii)"> <text>Concentrated cannabis products;</text> </paragraph> <paragraph num="(iii)"> <text>Edible cannabis products; and</text> </paragraph> <paragraph num="(iv)"> <text>Usable cannabis products.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>Cannabis Vaporizing Device.</text> <paragraph num="(a)"> <text>“Cannabis vaporizing device” means a device that can be used to deliver aerosolized or vaporized cannabis or cannabis products to an individual inhaling from the device.</text> </paragraph> <paragraph num="(b)"> <text>“Cannabis vaporizing device” includes:</text> <paragraph num="(i)"> <text>A vape pen;</text> </paragraph> <paragraph num="(ii)"> <text>Vaping liquid; and</text> </paragraph> <paragraph num="(iii)"> <text>Any component, part, or accessory of such a device regardless of whether it is sold separately, including a concentrated or infused cannabis liquid, for the purposes of heating and producing a vapor.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>Canopy.</text> <paragraph num="(a)"> <text>“Canopy” means the total square footage of space used by a licensee to produce flowering cannabis plants.</text> </paragraph> <paragraph num="(b)"> <text>“Canopy” includes each layer of flowering cannabis plants grown on any rack or shelving.</text> </paragraph> <paragraph num="(c)"> <text>“Canopy” does not include square footage used for:</text> <paragraph num="(i)"> <text>Mother stock;</text> </paragraph> <paragraph num="(ii)"> <text>Propagation;</text> </paragraph> <paragraph num="(iii)"> <text>Immature or nonflowering plants;</text> </paragraph> <paragraph num="(iv)"> <text>Processing;</text> </paragraph> <paragraph num="(v)"> <text>Drying;</text> </paragraph> <paragraph num="(vi)"> <text>Curing;</text> </paragraph> <paragraph num="(vii)"> <text>Trimming;</text> </paragraph> <paragraph num="(viii)"> <text>Storage;</text> </paragraph> <paragraph num="(ix)"> <text>Offices;</text> </paragraph> <paragraph num="(x)"> <text>Hallways;</text> </paragraph> <paragraph num="(xi)"> <text>Pathways;</text> </paragraph> <paragraph num="(xii)"> <text>Work areas; or</text> </paragraph> <paragraph num="(xiii)"> <text>Other administrative and nonproduction uses.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Capsules” means a solid preparation containing a single serving of tetrahydrocannabinol or other cannabinoid that:</text> <paragraph num="(a)"> <text>Is intended to be swallowed whole;</text> </paragraph> <paragraph num="(b)"> <text>Not formulated to be chewable, dispersible, effervescent, orally disintegrating, used as a suspension, or consumed in a manner other than swallowed whole; and</text> </paragraph> <paragraph num="(c)"> <text>Does not contain any added natural or artificial flavor or sweetener.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Caregiver.</text> <paragraph num="(a)"> <text>“Caregiver” means an individual who has agreed to assist with a qualifying patient’s medical use of cannabis.</text> </paragraph> <paragraph num="(b)"> <text>“Caregiver” means, for a qualifying patient younger than 18 years old:</text> <paragraph num="(i)"> <text>A parent or legal guardian; and</text> </paragraph> <paragraph num="(ii)"> <text>Not more than two additional adults designated by the parent or legal guardian.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Caregiver” does not include any designated school personnel authorized to administer medical cannabis to a student in accordance with the guidelines established under Education Article, §7-446, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Certifying provider” has the meaning stated in Alcoholic Beverages and Cannabis Article, §36-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Clinical director” means an individual who:</text> <paragraph num="(a)"> <text>Is appointed by a licensed dispensary to provide information on medical cannabis to qualifying patients, registered caregivers, and dispensary agents;</text> </paragraph> <paragraph num="(b)"> <text>Meets the requirements of COMAR 14.17.04.08; and</text> </paragraph> <paragraph num="(c)"> <text>Is registered with the Administration.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>Concentrated Cannabis Product.</text> <paragraph num="(a)"> <text>“Concentrated cannabis product” means a product derived from cannabis that has undergone a process to concentrate one or more active cannabinoids.</text> </paragraph> <paragraph num="(b)"> <text>“Concentrated cannabis product” includes:</text> <paragraph num="(i)"> <text>Kief;</text> </paragraph> <paragraph num="(ii)"> <text>Hashish;</text> </paragraph> <paragraph num="(iii)"> <text>Bubble hash;</text> </paragraph> <paragraph num="(iv)"> <text>Oil;</text> </paragraph> <paragraph num="(v)"> <text>Wax;</text> </paragraph> <paragraph num="(vi)"> <text>Shatter;</text> </paragraph> <paragraph num="(vii)"> <text>Resin; or</text> </paragraph> <paragraph num="(viii)"> <text>Any other product produced by extracting cannabinoids from the plant using solvents, carbon dioxide, heat, screens, presses or steam distillation.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Concentrated cannabis product” does not include any cannabis vaporizing device as defined in this regulation.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Conditional license” means a temporary preapproval for a cannabis license issued pending satisfactory completion of the requirements for licensing under COMAR 14.17.05.</text> </paragraph> <paragraph num="(14)"> <text>“Consumer” means an individual 21 years old or older who purchases cannabis or a cannabis product from a licensed dispensary or on-site consumption establishment.</text> </paragraph> <paragraph num="(15)"> <text>Control.</text> <paragraph num="(a)"> <text>“Control” means:</text> <paragraph num="(i)"> <text>The decision–making authority over the management, operations, or policies that either guide a business or guide authority over the operation of the technical aspects of a business; or</text> </paragraph> <paragraph num="(ii)"> <text>Authority over the operation of the technical aspects of the business.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Control” includes:</text> <paragraph num="(i)"> <text>Holding a right to veto significant events;</text> </paragraph> <paragraph num="(ii)"> <text>The right or authority to make or veto decisions regarding operations and strategic planning, capital allocations, acquisitions, and divestments;</text> </paragraph> <paragraph num="(iii)"> <text>The right or authority to appoint or remove directors, corporate-level officers, or their equivalent;</text> </paragraph> <paragraph num="(iv)"> <text>The right or authority to make major marketing, production, and financial decisions; and</text> </paragraph> <paragraph num="(v)"> <text>The right or authority to execute exclusive contracts or significant contracts in the aggregate of $10,000 or greater on behalf of the licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Criminal history record check” means a State and national criminal history records check in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(17)"> <text>“Data network” means the interface with the seed-to-sale tracking system that enables licensees to identify qualifying patients and registered caregivers and monitor patient allotments.</text> </paragraph> <paragraph num="(18)"> <text>“Delivery service” means a licensee authorized to deliver cannabis in accordance with a micro license to operate a dispensary.</text> </paragraph> <paragraph num="(19)"> <text>Dispensary.</text> <paragraph num="(a)"> <text>“Dispensary” means an entity licensed under Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, that acquires, possesses, repackages, transports, sells, distributes, or dispenses cannabis or cannabis products, including tinctures, aerosols, oils, and ointments, related supplies, and educational materials for use by qualifying patients, caregivers, or consumers through a storefront or through a delivery service, based on license type.</text> </paragraph> <paragraph num="(b)"> <text>“Dispensary” includes standard and micro license types.</text> </paragraph> </paragraph> <paragraph num="(20)"> <text>“Disproportionately impacted area” means a geographic area identified by the Office of Social Equity that has had above 150 percent of the State’s 10-year average for cannabis possession charges.</text> </paragraph> <paragraph num="(21)"> <text>Edible Cannabis Product.</text> <paragraph num="(a)"> <text>“Edible cannabis product” means a cannabis product intended for human consumption by oral ingestion, in whole or in part.</text> </paragraph> <paragraph num="(b)"> <text>“Edible cannabis product” includes a cannabis product that dissolves or disintegrates in the mouth.</text> </paragraph> <paragraph num="(c)"> <text>“Edible cannabis product” does not include any concentrated cannabis products, infused non-edible cannabis products, or capsules or tinctures that do not contain any food or food ingredients.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Electronic manifest” means the comprehensive report created by a licensee within the Administration’s designated seed-to-sale tracking system to record the chain of custody of a cannabis transfer or delivery.</text> </paragraph> <paragraph num="(23)"> <text>“Green waste” means unauthorized, misbranded, contaminated, unused, surplus, returned, or out-of-date cannabis or product containing cannabis.</text> </paragraph> <paragraph num="(24)"> <text>Grower.</text> <paragraph num="(a)"> <text>“Grower” means an entity licensed under Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, that cultivates or packages cannabis and is authorized by the Administration to provide cannabis to other licensees and registered independent testing laboratories.</text> </paragraph> <paragraph num="(b)"> <text>“Grower” includes standard and micro license types.</text> </paragraph> </paragraph> <paragraph num="(25)"> <text>High Potency Product.</text> <paragraph num="(a)"> <text>“High potency product” means a product that exceeds the maximum potency for consumers, as established by the Administration, and may only be sold or distributed to a qualifying patient or registered caregiver.</text> </paragraph> <paragraph num="(b)"> <text>“High potency product” includes:</text> <paragraph num="(i)"> <text>A concentrated cannabis product that exceeds 1 gram in total weight; and</text> </paragraph> <paragraph num="(ii)"> <text>An edible cannabis product, capsule, or tincture that exceeds 10 milligrams THC per serving and 100 milligrams THC per package.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(26)"> <text>Home Cultivation Product.</text> <paragraph num="(a)"> <text>“Home cultivation product” means the clones, seeds, seedlings, stalks, roots, and stems of the cannabis plant for home cultivation.</text> </paragraph> <paragraph num="(b)"> <text>“Home cultivation product” does not include any plant that is:</text> <paragraph num="(i)"> <text>Wider than 8 inches;</text> </paragraph> <paragraph num="(ii)"> <text>Taller than 8 inches; or</text> </paragraph> <paragraph num="(iii)"> <text>Otherwise in a vegetative or flowering state.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(27)"> <text>“Incubator space” means a facility where a micro licensee may operate in accordance with Alcoholic Beverages and Cannabis Article, §36-406, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(28)"> <text>“Independent testing laboratory” means a facility, entity, or site that is:</text> <paragraph num="(a)"> <text>Registered with the Administration to perform tests on cannabis or cannabis products;</text> </paragraph> <paragraph num="(b)"> <text>Independent of any entity licensed under Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, to grow, process or dispense cannabis; and</text> </paragraph> <paragraph num="(c)"> <text>Accredited as operating to International Organization for Standardization (ISO) standard 17025 by an accreditation body:</text> <paragraph num="(i)"> <text>Operating in accordance with ISO standard ISO/IEC 17011; and</text> </paragraph> <paragraph num="(ii)"> <text>That is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA).</text> </paragraph> </paragraph> </paragraph> <paragraph num="(29)"> <text>“Infused non-edible cannabis product” means ointment, salve, suppository, dermal patch, cartridge, or any other product containing cannabis that has been processed so that the dried leaves and flowers are integrated into other material that is not intended for human consumption by inhalation or oral ingestion.</text> </paragraph> <paragraph num="(30)"> <text>“Law enforcement agency” means a governmental police force, sheriff’s office, security force, or law enforcement organization of the State, a county, or a municipal corporation that by statute, ordinance, or common law is authorized to enforce the general criminal laws of the State.</text> </paragraph> <paragraph num="(31)"> <text>Licensee.</text> <paragraph num="(a)"> <text>“Licensee” means a business licensed by the Administration in accordance with Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Licensee” includes any:</text> <paragraph num="(i)"> <text>Micro grower;</text> </paragraph> <paragraph num="(ii)"> <text>Micro processor;</text> </paragraph> <paragraph num="(iii)"> <text>Micro dispensary;</text> </paragraph> <paragraph num="(iv)"> <text>Standard grower;</text> </paragraph> <paragraph num="(v)"> <text>Standard processor;</text> </paragraph> <paragraph num="(vi)"> <text>Standard dispensary;</text> </paragraph> <paragraph num="(vii)"> <text>Incubator space; and</text> </paragraph> <paragraph num="(viii)"> <text>On-site consumption establishment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(32)"> <text>Liquid Edible Product.</text> <paragraph num="(a)"> <text>“Liquid edible product” means an edible cannabis product that is a liquid beverage or liquid food-based product for which the intended use is oral consumption.</text> </paragraph> <paragraph num="(b)"> <text>“Liquid edible product” excludes a tincture as defined in this section.</text> </paragraph> </paragraph> <paragraph num="(33)"> <text>“Micro license” means a license to operate a cannabis business that does not exceed the limits established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(34)"> <text>“Neutral age screen” means a mechanism to verify a user's age by requiring them to enter their date of birth to gain access to areas of a website that are not designed for children.</text> </paragraph> <paragraph num="(35)"> <text>“On-site consumption establishment” means an entity licensed by the Administration to distribute cannabis or cannabis products for on-site consumption other than by smoking indoors.</text> </paragraph> <paragraph num="(35-1)"> <text>“Operational” means physically and actively engaged in the cultivation, processing, or dispensing of cannabis.</text> </paragraph> <paragraph num="(36)"> <text>“Owner” means a person with an ownership interest in a cannabis license.</text> </paragraph> <paragraph num="(37)"> <text>“Ownership interest” means a direct or indirect equity interest in a cannabis license, including in its shares or stock.</text> </paragraph> <paragraph num="(38)"> <text>“Passive investor” means an individual or an entity that:</text> <paragraph num="(a)"> <text>Holds an aggregate ownership interest of less than 5 percent in a cannabis licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Does not have control of the cannabis licensee.</text> </paragraph> </paragraph> <paragraph num="(39)"> <text>“Personal use amount” means an amount of:</text> <paragraph num="(a)"> <text>Cannabis that does not exceed 1.5 ounces;</text> </paragraph> <paragraph num="(b)"> <text>Concentrated cannabis that does not exceed 12 grams; or</text> </paragraph> <paragraph num="(c)"> <text>Cannabis products containing no more than 750 milligrams of delta-9-tetrahydrocannabinol.</text> </paragraph> </paragraph> <paragraph num="(40)"> <text>“Principal officer” means a board member, a president, a vice president, a secretary, a treasurer, a partner, an officer, a managing member, or any other individual with a profit sharing, financial interest, or revenue sharing arrangement, including an individual with the authority to control a cannabis license.</text> </paragraph> <paragraph num="(41)"> <text>“Processing” means the manufacture of usable cannabis into a cannabis concentrate or manufacture of a cannabis-infused product.</text> </paragraph> <paragraph num="(42)"> <text>Processor.</text> <paragraph num="(a)"> <text>“Processor” means an entity licensed by the Administration in accordance with Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, that:</text> <paragraph num="(i)"> <text>Transforms cannabis into another product, or an extract, and packages and labels the cannabis product; and</text> </paragraph> <paragraph num="(ii)"> <text>Is authorized by the Administration to provide cannabis to cannabis licensees and registered independent testing laboratories.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Processor” includes standard and micro license types.</text> </paragraph> </paragraph> <paragraph num="(43)"> <text>“Qualifying patient” means an individual who:</text> <paragraph num="(a)"> <text>Has been provided with a valid written certification by an Administration-registered certifying provider in accordance with a bona fide provider–patient relationship; and</text> </paragraph> <paragraph num="(b)"> <text>If younger than 18 years old, has a caregiver.</text> </paragraph> </paragraph> <paragraph num="(44)"> <text>Registrant.</text> <paragraph num="(a)"> <text>“Registrant” means a business registered by the Administration to operate in the cannabis industry.</text> </paragraph> <paragraph num="(b)"> <text>“Registrant” includes:</text> <paragraph num="(i)"> <text>Independent testing laboratory;</text> </paragraph> <paragraph num="(ii)"> <text>Transporter business;</text> </paragraph> <paragraph num="(iii)"> <text>Security guard company; and</text> </paragraph> <paragraph num="(iv)"> <text>Waste disposal company.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(45)"> <text>Residence.</text> <paragraph num="(a)"> <text>“Residence” means a house, condominium, apartment, or any other dwelling unit under legal possession of an individual.</text> </paragraph> <paragraph num="(b)"> <text>“Residence” does not mean a dormitory or other on-campus college or university housing.</text> </paragraph> </paragraph> <paragraph num="(46)"> <text>“Seed-to-sale tracking system” means a software system procured by the Administration that tracks cannabis from either the seed or immature plant stage, until the cannabis is sold to a patient, caregiver, or consumer.</text> </paragraph> <paragraph num="(47)"> <text>“Serious adverse event” means an undesirable experience associated with the use of cannabis where the outcome was death, life-threatening, hospitalization, disability or permanent damage, congenital anomaly or birth defect or any other important medical event.</text> </paragraph> <paragraph num="(48)"> <text>“Social equity applicant” means an applicant for a cannabis license or cannabis registration that:</text> <paragraph num="(a)"> <text>Has at least 65 percent ownership and control held by one or more individuals who:</text> <paragraph num="(i)"> <text>Have lived in a disproportionately impacted area for at least 5 of the 10 years immediately preceding the submission of the application;</text> </paragraph> <paragraph num="(ii)"> <text>Attended a public school in a disproportionately impacted area for at least 5 years; or</text> </paragraph> <paragraph num="(iii)"> <text>For at least 2 years, attended a 4-year institution of higher education in the State where at least 40 percent of the individuals who attend the institution of higher education are eligible for a Pell Grant; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Meets any other criteria established by the Administration.</text> </paragraph> </paragraph> <paragraph num="(49)"> <text>Social Equity Licensee.</text> <paragraph num="(a)"> <text>“Social equity licensee” means a social equity applicant who has been awarded a cannabis license.</text> </paragraph> <paragraph num="(b)"> <text>“Social equity licensee” includes a grower, processor, or dispensary that:</text> <paragraph num="(i)"> <text>Held a Stage One Preapproval for a license before October 1, 2022; and</text> </paragraph> <paragraph num="(ii)"> <text>Was not operational before October 1, 2022.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(50)"> <text>“Social Equity Partnership Grant” means a program within the Office of Social Equity that awards grants to promote qualifying partnerships between operational licensees and social equity licensees.</text> </paragraph> <paragraph num="(51)"> <text>“Standard license” means a license to operate a cannabis business that complies with the limits established in Alcoholic Beverages and Cannabis Article, §36-401(c)(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(52)"> <text>“State Cannabis Testing Laboratory” means the laboratory operated by the Administration in accordance with Alcoholic Beverages and Cannabis Article, §36-204, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(53)"> <text>“Tetrahydrocannabinol” or “THC”, unless otherwise specified, means any:</text> <paragraph num="(a)"> <text>Tetrahydrocannabinol, including delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, and delta-10-tetrahydrocannabinol, regardless of how derived;</text> </paragraph> <paragraph num="(b)"> <text>Other cannabinoid, other than cannabidiol that the Administration determines to cause intoxication; and</text> </paragraph> <paragraph num="(c)"> <text>Other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, as identified by the Administration.</text> </paragraph> </paragraph> <paragraph num="(54)"> <text>“Tincture” means a solution that is:</text> <paragraph num="(a)"> <text>Dissolved in alcohol, glycerin, or vegetable oil; and</text> </paragraph> <paragraph num="(b)"> <text>Distributed in a dropper bottle of 4 ounces or less.</text> </paragraph> </paragraph> <paragraph num="(55)"> <text>Usable Cannabis.</text> <paragraph num="(a)"> <text>“Usable cannabis” means the dried leaves and flowers of the cannabis plant.</text> </paragraph> <paragraph num="(b)"> <text>“Usable cannabis” does not include seedlings, seeds, stems, stalks, or roots of the plant or the weight of any noncannabis ingredients combined with cannabis, such as ingredients added to prepare a topical administration.</text> </paragraph> </paragraph> <paragraph num="(56)"> <text>Usable Cannabis Product.</text> <paragraph num="(a)"> <text>“Usable cannabis product” means a prepackaged product containing usable cannabis.</text> </paragraph> <paragraph num="(b)"> <text>“Usable cannabis product” includes:</text> <paragraph num="(i)"> <text>A pre-rolled amount of usable cannabis;</text> </paragraph> <paragraph num="(ii)"> <text>Securely stored, sealed, and labeled amount of usable cannabis; and</text> </paragraph> <paragraph num="(iii)"> <text>Any other type or amount of usable cannabis that has been wrapped, rolled, or otherwise encased for the purposes of smoking.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(57)"> <text>Visitor.</text> <paragraph num="(a)"> <text>“Visitor” means a guest at a licensed or registered premises who is not a registered agent employed by the licensee or registrant.</text> </paragraph> <paragraph num="(b)"> <text>“Visitor” does not include:</text> <paragraph num="(i)"> <text>A qualifying patient, registered caregiver, adult-use consumer, or any children who accompany a qualifying patient or registered caregiver for the sole purpose of purchasing cannabis or cannabis products; or</text> </paragraph> <paragraph num="(ii)"> <text>An Administration investigator.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(58)"> <text>“Written certification” means a certification that:</text> <paragraph num="(a)"> <text>Is issued by a certifying provider to a qualifying patient with whom the provider has a bona fide provider–patient relationship;</text> </paragraph> <paragraph num="(b)"> <text>Includes a written statement certifying that, in the certifying provider’s professional opinion, after having completed an assessment of the patient’s medical history and current medical condition, the patient has a condition:</text> <paragraph num="(i)"> <text>That meets the inclusion criteria and does not meet the exclusion criteria of the certifying provider’s application; and</text> </paragraph> <paragraph num="(ii)"> <text>For which the potential benefits of the medical use of cannabis would likely outweigh the health risks for the patient; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>May include a written statement certifying that, in the certifying provider’s professional opinion, a 30–day supply of medical cannabis would be inadequate to meet the medical needs of the qualifying patient.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Authority: Alcoholic Beverages and Cannabis Article, §36-101, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 14, 2025 (52:7 Md. R. 324); March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="02" heading="General Regulations"> <regulation prefix="Regulation" num=".01" heading="Succession of the Maryland Medical Cannabis Commission."> <paragraph num="A."> <text>The Maryland Cannabis Administration is the successor entity to the Natalie M. LaPrade Medical Cannabis Commission.</text> </paragraph> <paragraph num="B."> <text>Any bulletin, final order, notice of violation, or formal changes issued by the Natalie M. LaPrade Medical Cannabis Commission remains valid and stands as authorized by the Maryland Cannabis Administration.</text> </paragraph> <paragraph num="C."> <text>Except as otherwise provided in this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland, a registration issued by the Natalie M. LaPrade Medical Cannabis Commission shall be valid until the stated expiration date for each:</text> <paragraph num="(1)"> <text>Patient or caregiver;</text> </paragraph> <paragraph num="(2)"> <text>Certifying provider;</text> </paragraph> <paragraph num="(3)"> <text>Clinical director;</text> </paragraph> <paragraph num="(4)"> <text>Agent;</text> </paragraph> <paragraph num="(5)"> <text>Independent testing laboratory; and</text> </paragraph> <paragraph num="(6)"> <text>Other business registrants.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Maryland Cannabis Administration may rescind, revoke, correct, or reissue any bulletin, final order, notice of violation, or formal changes issued by the Natalie M. LaPrade Medical Cannabis Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Single Supply Chain for Cannabis Products."> <paragraph num="A."> <text>Except as otherwise provided in this subtitle, all cannabis grown, harvested, processed, transported, delivered, produced, manufactured, or sold in Maryland shall follow the regulations in this subtitle.</text> </paragraph> <paragraph num="B."> <text>A licensee shall accurately track, tag, or otherwise record inventory in the seed-to-sale tracking system designated by the Administration as specified:</text> <paragraph num="(1)"> <text>Throughout this subtitle; and</text> </paragraph> <paragraph num="(2)"> <text>In guidance issued by the Administration or its vendor.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Conversion of Medical Cannabis License."> <paragraph num="A."> <text>This regulation applies to each licensee required to pay a conversion fee under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The conversion fee shall be based on the gross revenue of a licensee and calculated by the Administration using the State’s seed-to-sale tracking system for calendar year 2022.</text> </paragraph> <paragraph num="C."> <text>Licensees choosing to convert their license shall, on or before July 1, 2023:</text> <paragraph num="(1)"> <text>Pay the conversion fee as calculated by the Administration in full; or</text> </paragraph> <paragraph num="(2)"> <text>Enter into a payment plan with the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The payment plan under §C(2) of this regulation shall establish:</text> <paragraph num="(1)"> <text>The conversion fee as calculated by Administration;</text> </paragraph> <paragraph num="(2)"> <text>The exact payment amount required under each payment installment; and</text> </paragraph> <paragraph num="(3)"> <text>Payment due dates as directed by the Administration for four equal payment installments over an 18-month period.</text> </paragraph> </paragraph> <paragraph num="E."> <text>On or before January 1, 2025, a licensee shall pay the installment payment in full in accordance with §D of this regulation.</text> </paragraph> <paragraph num="F."> <text>A licensee that does not meet a payment deadline is subject to:</text> <paragraph num="(1)"> <text>An administrative hold on their ability to transfer cannabis or cannabis products to another licensee or distribute or dispense cannabis or cannabis products to a qualifying patient, registered caregiver, or consumer until payment is remitted to the Administration;</text> </paragraph> <paragraph num="(2)"> <text>A fine of up to $5,000 for each day past the deadline that the payment is not received; and</text> </paragraph> <paragraph num="(3)"> <text>After a period of 30 days, license suspension or revocation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A converted license shall be valid for a period of 5 years, beginning on July 1, 2023.</text> </paragraph> <paragraph num="H."> <text>A converted license is not transferrable prior to July 1, 2028, except as provided under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Technical Authority."> <text>The Maryland Cannabis Administration’s Technical Authority for Cannabis Testing (Effective February 2025), or Technical Authority, is incorporated by reference.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Sociological Information."> <paragraph num="A."> <text>For purposes of this regulation and as provided for under General Provisions Article, §4-330, Annotated Code of Maryland, “sociological information” means any of the following information requested from the Administration:</text> <paragraph num="(1)"> <text>Academic or personal records provided to verify social equity status;</text> </paragraph> <paragraph num="(2)"> <text>Records about an individual’s personal history, age, family, race, national origin, creed, color, sex, pregnancy, sexual orientation, ethnic background, ancestry, physiology, religion, academic achievement, employment, gender identity or expression, genetic information, veteran status, or physical or mental ability;</text> </paragraph> <paragraph num="(3)"> <text>Family history, identity of relatives, emergency contacts, or representatives;</text> </paragraph> <paragraph num="(4)"> <text>Medical or psychiatric history;</text> </paragraph> <paragraph num="(5)"> <text>Social security number;</text> </paragraph> <paragraph num="(6)"> <text>Date of birth;</text> </paragraph> <paragraph num="(7)"> <text>Credit card or other banking information;</text> </paragraph> <paragraph num="(8)"> <text>Personal addresses, personal phone numbers, personal electronic mail address, or personal social media account information;</text> </paragraph> <paragraph num="(9)"> <text>Information regarding marital status, domestic partnership, dependents, or relatives, including related employment benefits elections;</text> </paragraph> <paragraph num="(10)"> <text>Information regarding employment status, including disciplinary records and records related to an application for employment;</text> </paragraph> <paragraph num="(11)"> <text>Applicant information of those not selected for licensure;</text> </paragraph> <paragraph num="(12)"> <text>Military service;</text> </paragraph> <paragraph num="(13)"> <text>Driver’s license number;</text> </paragraph> <paragraph num="(14)"> <text>Immigration status, passport, or visa numbers;</text> </paragraph> <paragraph num="(15)"> <text>Any information obtained through employment coaching or surveys;</text> </paragraph> <paragraph num="(16)"> <text>Financial information, including income other than State salary, assets, and liabilities; and</text> </paragraph> <paragraph num="(17)"> <text>Records not related to the transaction of State business.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except for use in carrying out the Administration’s governmental functions or except as further provided in §C of this regulation, the Administration may not disclose under the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland, and shall deny a request for inspection or copying of, any part of a public record that contains sociological information relating to an individual.</text> </paragraph> <paragraph num="C."> <text>The Administration may disclose sociological information:</text> <paragraph num="(1)"> <text>To the person in interest or the agent or representative of the person in interest;</text> </paragraph> <paragraph num="(2)"> <text>With the consent of the person in interest;</text> </paragraph> <paragraph num="(3)"> <text>Pursuant to a duly issued subpoena;</text> </paragraph> <paragraph num="(4)"> <text>Pursuant to a court order;</text> </paragraph> <paragraph num="(5)"> <text>If disclosure is otherwise required by law, including if required to be disclosed under General Provisions Article, §4-333, Annotated Code of Maryland, as part of a licensing record; or</text> </paragraph> <paragraph num="(6)"> <text>If disclosure is otherwise permitted by law and the Administration determines that disclosure would be in the public’s best interests.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Pilot Authority."> <text>The Administration may require licensees to participate in pilot programs to test efficacy of proposed initiatives to improve regulation of cannabis, provided the following criteria are met.</text> <paragraph num="A."> <text>Pilot participants shall be selected according to objective criteria as determined by the Administration.</text> </paragraph> <paragraph num="B."> <text>No documents produced by a licensee as part of the pilot program may be used to gather a compliance case against a licensee.</text> </paragraph> <paragraph num="C."> <text>The Administration shall provide a minimum of 60 days’ notice to any licensee selected to participate prior to the start date of pilot participation.</text> </paragraph> <paragraph num="D."> <text>The Administration shall maintain strict confidentiality and data protection standards for all data collected, created, or maintained under any pilot program. Such standards shall include:</text> <paragraph num="(1)"> <text>Restricting data collection and use to the explicit, legitimate purposes of the pilot program; and</text> </paragraph> <paragraph num="(2)"> <text>Using appropriate encryption, access controls, and other measures to prevent unauthorized disclosure or misuse.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Administration may consider a licensee's written request to opt out of a pilot program based on:</text> <paragraph num="(1)"> <text>Anticipated hardship by the proposed pilot program; or</text> </paragraph> <paragraph num="(2)"> <text>Participation in an Administration pilot program in the prior 6 months.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-201, 36-401, and 36-403, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted effective March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="03" heading="Social Equity Partnership Grant Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to the Office of Social Equity, an independent office that functions within the Maryland Cannabis Administration, whose mission is to promote and encourage participation in the regulated cannabis industry by people from communities that have previously been disproportionately impacted by cannabis prohibition and enforcement.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agreement” means a selected application for the Social Equity Partnership Grant Program.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a social equity licensee and an operational cannabis licensee who apply together for a social equity partnership grant.</text> </paragraph> <paragraph num="(3)"> <text>“Application” means a Social Equity Partnership Grant Program application.</text> </paragraph> <paragraph num="(4)"> <text>“Mediation” has the meaning stated in Courts and Judicial Proceedings Article, §3-1801, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Operational cannabis licensee” means a licensee that was operational prior to October 1, 2022.</text> </paragraph> <paragraph num="(6)"> <text>“Qualifying partnership” means a meaningful partnership between a social equity licensee and an operational cannabis licensee that supports or advises the social equity licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Social Equity Partnership Grant Program."> <paragraph num="A."> <text>The Social Equity Partnership Grant Program shall promote qualifying partnerships between operational cannabis licensees and social equity licensees.</text> </paragraph> <paragraph num="B."> <text>The Office of Social Equity shall implement and administer the grant program, including approving qualifying partnerships.</text> </paragraph> <paragraph num="C."> <text>The Office of Social Equity may approve a qualifying partnership where a cost or other fee is imposed by an operational cannabis licensee, if it determines the cost or other fee is substantially reduced from the market value.</text> </paragraph> <paragraph num="D."> <text>The Office of Social Equity shall determine the grant amounts based on:</text> <paragraph num="(1)"> <text>The number of partnership applications;</text> </paragraph> <paragraph num="(2)"> <text>Programmatic needs;</text> </paragraph> <paragraph num="(3)"> <text>Availability of funds; and</text> </paragraph> <paragraph num="(4)"> <text>Equitable distribution of qualifying partnerships across license types.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If an operational cannabis licensee has a license that was converted under Alcoholic Beverages and Cannabis Article, §36-401(b)(1)(ii), Annotated Code of Maryland, the total amount of grants issued to the licensee may not exceed the lesser of:</text> <paragraph num="(1)"> <text>The cost of the conversion fee that was paid by the licensee to date; or</text> </paragraph> <paragraph num="(2)"> <text>$250,000 per year per qualifying partnership.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Qualifying partnerships under this regulation may not:</text> <paragraph num="(1)"> <text>Explicitly or implicitly transfer, including through convertible debt, any ownership or control from the social equity licensee to the operational cannabis licensee;</text> </paragraph> <paragraph num="(2)"> <text>Require the social equity licensee to conform with any branding, messaging, standard operating procedures, or other infringement on the social equity licensees’ operations;</text> </paragraph> <paragraph num="(3)"> <text>Otherwise restrict, hinder, exploit, or unfairly treat the social equity licensee to benefit the operational cannabis licensee; or</text> </paragraph> <paragraph num="(4)"> <text>Exist between entities that have common ownership or control.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Office of Social Equity may deny an application or terminate any qualifying partnership agreement that includes false or misleading information.</text> </paragraph> <paragraph num="H."> <text>In addition to any other applicable penalties established in this subtitle, including suspending, fining, restricting, or revoking a license, an operational cannabis licensee found in violation of §F of this regulation may be subject to any of the following sanctions:</text> <paragraph num="(1)"> <text>Restriction, revocation, or invalidation of any qualifying partnership approved by the Office of Social Equity;</text> </paragraph> <paragraph num="(2)"> <text>Rescission or invalidation of any attempted transfer of ownership or control; or</text> </paragraph> <paragraph num="(3)"> <text>Repayment of any grant funding received by the operational cannabis licensee.</text> </paragraph> </paragraph> <paragraph num="I."> <text>The Office of Social Equity shall evaluate grant applications on a pass or fail basis according to the following criteria:</text> <paragraph num="(1)"> <text>Demonstration that the operational cannabis licensee has capacity to support a social equity licensee;</text> </paragraph> <paragraph num="(2)"> <text>A comprehensive estimation of the value of services provided that assigns a value to each element of services provided;</text> </paragraph> <paragraph num="(3)"> <text>Demonstration that the operational cannabis licensee has been compliant with the Maryland Cannabis Administration regulation related to:</text> <paragraph num="(a)"> <text>Health and safety;</text> </paragraph> <paragraph num="(b)"> <text>Diversion and theft; and</text> </paragraph> <paragraph num="(c)"> <text>Any area material to the proposed partnership;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Attestation that both the operational cannabis licensee and social equity licensee will have an equal role in addressing any changes required in the partnership; and</text> </paragraph> <paragraph num="(5)"> <text>Any additional criteria the Office of Social Equity may include to assist with the review of each application, including but not limited to a party’s prior conduct within the Social Equity Partnership Grant Program.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Requests for Information.</text> <paragraph num="(1)"> <text>The Office of Social Equity may request an applicant submit supporting documentation related to the applicant’s efforts to establish any of the application criteria outlined in §I of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Any information requested by the Office of Social Equity is due within 10 business days of the date of the request, unless otherwise noted.</text> </paragraph> <paragraph num="(3)"> <text>The Office of Social Equity may deny an application if its request for information is not fulfilled within 10 days.</text> </paragraph> </paragraph> <paragraph num="K."> <text>To select passing applications, the Office of Social Equity shall conduct a lottery that is impartial, random, and in a format selected by the Office of Social Equity.</text> </paragraph> <paragraph num="L."> <text>Application and Award Limits.</text> <paragraph num="(1)"> <text>An operational cannabis licensee without common ownership or control of another operational cannabis licensee submitting an application:</text> <paragraph num="(a)"> <text>May submit only one application per award period; and</text> </paragraph> <paragraph num="(b)"> <text>May be awarded up to one qualifying partnership per award period.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Operational cannabis licensees who share common ownership or control submitting applications:</text> <paragraph num="(a)"> <text>May collectively submit up to two applications per award period; and</text> </paragraph> <paragraph num="(b)"> <text>May collectively be awarded up to two qualifying partnerships per award period.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A social equity licensee may submit one application per award period.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Partnership Disputes.</text> <paragraph num="(1)"> <text>If a cannabis licensee engaged in a qualifying partnership claims a breach in their qualifying partnership has occurred, the licensee shall submit a written complaint in the manner specified by the Office of Social Equity.</text> </paragraph> <paragraph num="(2)"> <text>The Office of Social Equity may request additional information necessary to investigate the complaint.</text> </paragraph> <paragraph num="(3)"> <text>After reviewing the complaint and any additional information, the Office of Social Equity may:</text> <paragraph num="(a)"> <text>Make a determination about whether a breach of a partnership agreement has occurred; or</text> </paragraph> <paragraph num="(b)"> <text>Refer the complaint to the Office of Administrative Hearings for mandatory mediation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Mediation procedures shall be in accordance with COMAR 28.02.01.18.</text> </paragraph> <paragraph num="(5)"> <text>The Office of Social Equity may establish written standards of conduct with which the parties shall comply during the mediation process.</text> </paragraph> <paragraph num="(6)"> <text>The Office of Social Equity shall disclose all written standards of conduct to the parties at the time the matter is referred to the Office of Administrative Hearings for mediation.</text> </paragraph> <paragraph num="(7)"> <text>A party’s failure to abide by a written standard of conduct may result in termination of the mediation process.</text> </paragraph> <paragraph num="(8)"> <text>If an agreement is reached by the parties as a result of mediation, the parties shall provide a written statement outlining the agreement terms to the Office of Social Equity.</text> </paragraph> <paragraph num="(9)"> <text>If the parties fail to reach an agreement, the mediator shall give written notice to the Office of Social Equity that an agreement was not reached at mediation.</text> </paragraph> <paragraph num="(10)"> <text>If the Office of Social Equity determines that a licensee has breached its agreement, it may:</text> <paragraph num="(a)"> <text>Restrict, revoke, or invalidate a partnership agreement;</text> </paragraph> <paragraph num="(b)"> <text>Require repayment of any grant funding received by the operational cannabis licensee; or</text> </paragraph> <paragraph num="(c)"> <text>Require amendments to the partnership agreement as determined by the terms of any mediation agreement reached by the parties as a result of mediation before the Office of Administrative Hearings.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>The Office of Social Equity will monitor compliance of the parties with the terms of any mediation agreement and will then make a determination about the partnership dispute and shall notify both licensees of its determination.</text> </paragraph> </paragraph> <paragraph num="N."> <text>An aggrieved party shall exhaust all administrative remedies provided in this subtitle before seeking review in any other forum.</text> </paragraph> <paragraph num="O."> <text>The Office of Social Equity may refer any suspected violation of this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland to the Maryland Cannabis Administration for further investigation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reporting Requirements."> <text>Within 30 days of a written request, a cannabis licensee shall provide any data and information required by the Office of Social Equity to:</text> <paragraph num="A."> <text>Complete statutorily mandated reports;</text> </paragraph> <paragraph num="B."> <text>Evaluate the diversity and equity of ownership, management, employment, and contracted goods and services in the legal cannabis economy in Maryland; and</text> </paragraph> <paragraph num="C."> <text>Operate and evaluate the Social Equity Partnership Grant Program.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §1-309.1, and 1-323Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 7, 2025 (52:13 Md. R. 656)</annotation> </annotations> </chapter> <chapter num="04" heading="Medical Cannabis Program"> <regulation prefix="Regulation" num=".01" heading="Certifying Providers."> <paragraph num="A."> <text>Provider Registration.</text> <paragraph num="(1)"> <text>A provider seeking registration as a certifying provider shall submit an application in the manner specified by the Administration.</text> </paragraph> <paragraph num="(2)"> <text>The Administration may approve certifying provider applications to treat:</text> <paragraph num="(a)"> <text>A chronic or debilitating disease or medical condition that results in a patient being admitted into hospice or receiving palliative care; or</text> </paragraph> <paragraph num="(b)"> <text>A chronic or debilitating disease or medical condition or the treatment of a chronic or debilitating disease or medical condition that produces:</text> <paragraph num="(i)"> <text>Cachexia, anorexia, or wasting syndrome;</text> </paragraph> <paragraph num="(ii)"> <text>Severe or chronic pain;</text> </paragraph> <paragraph num="(iii)"> <text>Severe nausea;</text> </paragraph> <paragraph num="(iv)"> <text>Seizures;</text> </paragraph> <paragraph num="(v)"> <text>Severe or persistent muscle spasms;</text> </paragraph> <paragraph num="(vi)"> <text>Glaucoma;</text> </paragraph> <paragraph num="(vii)"> <text>Post-traumatic stress disorder; or</text> </paragraph> <paragraph num="(viii)"> <text>Any other condition that is severe and for which other medical treatments have been ineffective if the symptoms reasonably can be expected to be relieved by the medical use of cannabis.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>A certifying provider may apply to amend the approval at any time.</text> </paragraph> <paragraph num="(4)"> <text>The application shall be deemed approved unless the Administration notifies the applicant that the application has been denied.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A certifying provider may discuss the use of medical cannabis with a patient, including but not limited to:</text> <paragraph num="(1)"> <text>Contraindications;</text> </paragraph> <paragraph num="(2)"> <text>Dosage;</text> </paragraph> <paragraph num="(3)"> <text>Problem use; and</text> </paragraph> <paragraph num="(4)"> <text>Harm reduction and safety precautions.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Certifying Provider Registration Renewal.</text> <paragraph num="(1)"> <text>An approval is valid for 2 years.</text> </paragraph> <paragraph num="(2)"> <text>A certifying provider shall apply to renew a registration to certify at the time of renewal of the provider’s license.</text> </paragraph> <paragraph num="(3)"> <text>The Administration shall provide a certifying provider with notice of renewal 90 business days before expiration of the registration.</text> </paragraph> <paragraph num="(4)"> <text>The Administration shall grant the application for renewal of registration if:</text> <paragraph num="(a)"> <text>The certifying provider attests that:</text> <paragraph num="(i)"> <text>The certifying provider’s license to practice in Maryland is active, unrestricted, and in good standing; and</text> </paragraph> <paragraph num="(ii)"> <text>The certifying provider’s registration by the State to prescribe controlled dangerous substances is valid; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The certifying provider has otherwise complied with this chapter.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>If a certifying provider fails to obtain a renewal of a registration to issue written certifications, the certifying provider may not issue written certifications.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A certifying provider may not receive compensation, including promotion, recommendation, advertising, subsidized rent, or anything of value, from a licensee.</text> </paragraph> <paragraph num="E."> <text>Action Against a Provider.</text> <paragraph num="(1)"> <text>After a written notice and a hearing in accordance with COMAR 14.17.22 if such hearing is properly requested, the Administration may deny a certifying provider’s application for registration, or revoke registration to certify if the provider:</text> <paragraph num="(a)"> <text>Fraudulently applies for approval;</text> </paragraph> <paragraph num="(b)"> <text>Fraudulently issues a written certification; or</text> </paragraph> <paragraph num="(c)"> <text>Fails to comply with this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Administration shall report any finding to the provider’s State licensing board and may refer any allegation of fraud or conduct that threatens public health by a certifying provider.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Patient and Caregiver Registry."> <paragraph num="A."> <text>The Administration shall maintain a registry of qualifying patients and caregivers.</text> </paragraph> <paragraph num="B."> <text>Patient Registration.</text> <paragraph num="(1)"> <text>An individual seeking to become a qualifying patient shall complete the online registration process established by the Administration.</text> </paragraph> <paragraph num="(2)"> <text>The Administration shall issue a unique patient identifier to each person who registers as a qualifying patient.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Caregiver Registration.</text> <paragraph num="(1)"> <text>A qualifying patient, or a parent or legal guardian of a qualifying patient younger than 18 years old, may designate:</text> <paragraph num="(a)"> <text>For a qualifying patient 18 years old or older, up to two caregivers; and</text> </paragraph> <paragraph num="(b)"> <text>For a qualifying patient younger than 18 years old, up to four caregivers, including the patient’s parent or legal guardian.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An individual seeking to become a caregiver shall complete the online registration process established by the Administration.</text> </paragraph> <paragraph num="(3)"> <text>The Administration shall issue a unique caregiver identifier to each person who registers with the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>To designate the relationship between a qualifying patient and a registered caregiver, a qualifying patient or a parent or legal guardian of a qualifying patient younger than 18 years old shall designate the caregiver using the caregiver’s unique identifier through the Administration’s website.</text> </paragraph> <paragraph num="E."> <text>A qualifying patient, or a parent or guardian of a qualifying patient younger than 18 years old, may terminate a caregiver by completing the online process established by the Administration.</text> </paragraph> <paragraph num="F."> <text>The Administration shall provide access to the Administration’s registry to a Maryland law enforcement agency on a real-time basis only for just cause to verify that a patient or caregiver is registered with the Administration.</text> </paragraph> <paragraph num="G."> <text>Patient or Caregiver Identification Cards.</text> <paragraph num="(1)"> <text>A qualifying patient or registered caregiver may purchase an identification card by paying the fee in COMAR 14.17.21.</text> </paragraph> <paragraph num="(2)"> <text>The identification card fee is waived for a qualifying patient enrolled in the:</text> <paragraph num="(a)"> <text>Maryland Medical Assistance Program; or</text> </paragraph> <paragraph num="(b)"> <text>Veterans Administration Maryland Health Care System.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If an identification card is lost, destroyed, or stolen, the cardholder shall, within 72 hours of becoming aware of the loss, destruction, or theft, report the loss, destruction, or theft to the Administration.</text> </paragraph> <paragraph num="(4)"> <text>Misuse of Identification Card.</text> <paragraph num="(a)"> <text>If an individual other than the qualifying patient or caregiver to whom an identification card has been issued attempts to use an identification card, a registered dispensary agent to whom it is offered shall confiscate it and initiate the return of the card to the Administration within 5 business days.</text> </paragraph> <paragraph num="(b)"> <text>The Administration may notify the certifying provider and revoke the identification card of a qualifying patient or caregiver who allows another person to use an identification card which has been issued to the qualifying patient or caregiver.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>If there is any change in the qualifying patient or the caregiver name or address, the qualifying patient or caregiver shall:</text> <paragraph num="(1)"> <text>Notify the Administration within 30 days; and</text> </paragraph> <paragraph num="(2)"> <text>If seeking a replacement identification card, pay the identification card replacement fee to obtain a new identification card.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Written Certification."> <paragraph num="A."> <text>Issuing a Written Certification.</text> <paragraph num="(1)"> <text>A certifying provider may determine that a patient qualifies for a written certification only if the:</text> <paragraph num="(a)"> <text>Qualifying patient:</text> <paragraph num="(i)"> <text>Has registered with the Administration;</text> </paragraph> <paragraph num="(ii)"> <text>Meets the certifying provider’s inclusion criteria; and</text> </paragraph> <paragraph num="(iii)"> <text>Does not meet the certifying provider's exclusion criteria; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Certifying provider:</text> <paragraph num="(i)"> <text>Has a bona fide provider-patient relationship with the qualifying patient; and</text> </paragraph> <paragraph num="(ii)"> <text>Has determined that the potential benefits of the medical use of cannabis likely outweigh the health risks for the patient.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a certifying provider determines that a patient qualifies for a written certification, the certifying provider shall:</text> <paragraph num="(a)"> <text>Issue a written certification in the form required by the Administration;</text> </paragraph> <paragraph num="(b)"> <text>Transmit the written certification to the Administration using the designated online process; and</text> </paragraph> <paragraph num="(c)"> <text>If requested, provide a copy of the written certification to the qualifying patient.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A written certification shall include the:</text> <paragraph num="(a)"> <text>Provider’s name, Maryland Board of Physicians, Board of Dental Examiners, Board of Podiatric Medical Examiners, or Board of Nursing license number, and office telephone number;</text> </paragraph> <paragraph num="(b)"> <text>Qualifying patient’s name, date of birth, address, and county of residence;</text> </paragraph> <paragraph num="(c)"> <text>Medical condition requiring medical cannabis; and</text> </paragraph> <paragraph num="(d)"> <text>The date of qualification as a qualifying patient.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A written certification may contain, if applicable, a written statement certifying that, in the provider’s professional opinion, a 30-day supply of medical cannabis would be inadequate to meet the medical needs of the qualifying patient.</text> </paragraph> <paragraph num="(5)"> <text>A certifying provider shall terminate a written certification if:</text> <paragraph num="(a)"> <text>The qualifying patient meets the provider’s exclusion criteria;</text> </paragraph> <paragraph num="(b)"> <text>Treatment with medical cannabis is no longer necessary for the qualifying patient;</text> </paragraph> <paragraph num="(c)"> <text>Adverse effects of medical cannabis outweigh the benefits to the qualifying patient’s health; or</text> </paragraph> <paragraph num="(d)"> <text>There is evidence that the qualifying patient engaged in diversion of medical cannabis.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A certifying provider may terminate a written certification if the qualifying patient demonstrates misuse of any substance.</text> </paragraph> <paragraph num="(7)"> <text>A certifying provider shall notify the Administration within 1 business day of the termination of a written certification.</text> </paragraph> <paragraph num="(8)"> <text>A qualifying patient shall have only one certifying provider at any time.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Written Certification Renewal.</text> <paragraph num="(1)"> <text>A qualifying patient may seek renewal of a written certification not less than 30 calendar days after it was issued by notifying the patient’s certifying provider.</text> </paragraph> <paragraph num="(2)"> <text>A certifying provider may renew the written certification for a qualifying patient if the certifying provider determines the patient still meets the criteria set forth in §A(1) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Upon renewing a written certification for a qualifying patient, a certifying provider shall notify the Administration.</text> </paragraph> <paragraph num="(4)"> <text>Prior to renewing a written certification, a certifying provider shall conduct a full assessment of the qualifying patient within 365 days before the reissuance.</text> </paragraph> <paragraph num="(5)"> <text>The full assessment in §B(4) of this regulation may be conducted via telehealth as defined by the certifying provider’s licensing board.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Product Reservation for Qualifying Patients."> <text>A dispensary may only sell or dispense high potency products to a qualified patient or registered caregiver, as specified in COMAR 14.17.13.03.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Accommodations for Qualifying Patients."> <paragraph num="A."> <text>A standard dispensary licensed under COMAR 14.17.06.08 shall:</text> <paragraph num="(1)"> <text>Provide exclusive access to the licensed premises to qualifying patients and registered caregivers for at least 1 hour per day that the dispensary is operational or a dedicated service line to serve only qualifying patients and caregivers for the duration of the licensed premises’ operating hours;</text> </paragraph> <paragraph num="(2)"> <text>Conspicuously display information about the reserved hours or dedicated service line for qualifying patients and registered caregivers, whichever is applicable on:</text> <paragraph num="(a)"> <text>The front of the licensed premises; and</text> </paragraph> <paragraph num="(b)"> <text>If applicable, the licensed dispensary’s social media accounts and public-facing website;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If providing reserved hours, maintain a consistent schedule; and</text> </paragraph> <paragraph num="(4)"> <text>If providing a dedicated service line, shall make a good faith effort to prioritize qualifying patients and registered caregivers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A standard dispensary may offer additional time and accommodation for qualifying patients and registered caregivers beyond the requirements in §A of this regulation, including reserving for qualifying and registered caregivers:</text> <paragraph num="(1)"> <text>Priority access to the dispensary service area; and</text> </paragraph> <paragraph num="(2)"> <text>Parking spaces near the entrance of the dispensary, if applicable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Compassionate Use Fund."> <paragraph num="A."> <text>The purpose of the Compassionate Use Fund is to reduce the cost of obtaining a medical assessment to determine the appropriateness of treatment with cannabis or reduce the cost of medical cannabis for individuals enrolled in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System.</text> </paragraph> <paragraph num="B."> <text>Eligibility for Compassionate Use Fund.</text> <paragraph num="(1)"> <text>A patient enrolled in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System may attest to a certifying provider eligibility for the Compassionate Use Fund due to their coverage status.</text> </paragraph> <paragraph num="(2)"> <text>A certifying provider shall verify the individual’s eligibility for the Compassionate Use Fund due to their coverage status and provide documentation of eligibility status to the Administration.</text> </paragraph> <paragraph num="(3)"> <text>A certifying provider shall reverify patient enrollment in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System annually.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Reimbursement of Written Certification.</text> <paragraph num="(1)"> <text>A certifying provider may submit to the Administration for reimbursement of the written certification for individuals enrolled in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System.</text> </paragraph> <paragraph num="(2)"> <text>In order to submit for reimbursement under this section, a certifying provider shall:</text> <paragraph num="(a)"> <text>Verify a patient’s active enrollment in the Maryland Medical Assistance Program or the Veterans Affairs Maryland Health Care System at the time the written certification is given;</text> </paragraph> <paragraph num="(b)"> <text>Conspicuously display a standard assessment and evaluation fee to be paid by the patient to obtain a written certification;</text> </paragraph> <paragraph num="(c)"> <text>Offer a discount of $50 off the provider’s fee to provide written certifications to patients eligible under §B of this regulation; and</text> </paragraph> <paragraph num="(d)"> <text>Charge an assessment and evaluation fee not to exceed the amount conspicuously displayed in §C(2)(b) of this regulation to obtain a written certification to all patients, regardless of eligibility under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Nothing in this section prohibits a certifying provider from offering a discount above $50 off the provider’s fee to provide written certifications to patients eligible under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Reimbursement.</text> <paragraph num="(1)"> <text>On a monthly basis, a certifying provider may request reimbursement from the Administration for the discounted prices offered to eligible patients under this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A certifying provider may submit a request for reimbursement by the 15th of the following month, in the manner specified by the Administration.</text> </paragraph> <paragraph num="(3)"> <text>To request reimbursement, a certifying provider shall provide the Administration with detailed records of the discounts provided, including:</text> <paragraph num="(a)"> <text>A list of qualifying patients who obtained discounts in the past month, and whether the patient was enrolled in the Maryland Medical Assistance Program or the Veterans Affairs Maryland Health Care System;</text> </paragraph> <paragraph num="(b)"> <text>An itemized account of the discounts provided to eligible patients in the past month, indicating:</text> <paragraph num="(i)"> <text>The full price of the written certification; and</text> </paragraph> <paragraph num="(ii)"> <text>Reduced cost paid by the eligible patient; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Any additional information requested by the Administration.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>To the extent funds are available within the Compassionate Use Fund, the Administration shall reimburse a certifying provider for eligible expenses.</text> </paragraph> <paragraph num="(5)"> <text>If the Compassionate Use Fund lacks sufficient funds to reimburse a certifying provider:</text> <paragraph num="(a)"> <text>The Administration shall cease providing reimbursements; and</text> </paragraph> <paragraph num="(b)"> <text>A certifying provider is no longer required to provide discounts pursuant to this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Clinical Directors."> <paragraph num="A."> <text>A licensed dispensary shall appoint at least one individual to function as clinical director who:</text> <paragraph num="(1)"> <text>Is eligible to serve as a certifying provider, as defined in COMAR 14.17.01;</text> </paragraph> <paragraph num="(2)"> <text>Is a licensed pharmacist in good standing with the State Board of Pharmacy; or</text> </paragraph> <paragraph num="(3)"> <text>Has substantial education, training, and experience in the medical use of cannabis, as determined by the Administration and is a:</text> <paragraph num="(a)"> <text>Registered nurse in good standing with the State Board of Nursing; or</text> </paragraph> <paragraph num="(b)"> <text>Licensed naturopathic doctor in good standing with the State Board of Physicians.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>During the hours of operation, a licensed dispensary shall have a clinical director:</text> <paragraph num="(1)"> <text>On-site; or</text> </paragraph> <paragraph num="(2)"> <text>Available via electronic communication.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A clinical director shall:</text> <paragraph num="(1)"> <text>Register as a clinical director with the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Complete at least one training course each year that is approved by the Administration, which includes:</text> <paragraph num="(a)"> <text>The latest scientific research on medical cannabis;</text> </paragraph> <paragraph num="(b)"> <text>The risks and benefits of medical cannabis; and</text> </paragraph> <paragraph num="(c)"> <text>Other information considered necessary by the Administration;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Educate qualifying patients and caregivers on:</text> <paragraph num="(a)"> <text>Treatment of the qualifying patient’s medical condition with medical cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Potential drug-to-drug interactions, including interactions with alcohol, prescription drugs, non-prescription drugs, and supplements;</text> </paragraph> <paragraph num="(c)"> <text>Possible side effects or contraindications of medical cannabis use;</text> </paragraph> <paragraph num="(d)"> <text>The potential for differing strengths and effects of medical cannabis strains; and</text> </paragraph> <paragraph num="(e)"> <text>Different methods, forms, and routes of medical cannabis administration; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Provide training to dispensary agents on:</text> <paragraph num="(a)"> <text>Guidelines for providing information to qualifying patients related to risks, benefits, and side effects associated with medical cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Recognizing signs and symptoms of substance abuse; and</text> </paragraph> <paragraph num="(c)"> <text>Guidelines for refusing to provide medical cannabis to an individual who appears to be under the influence of drugs or alcohol.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A clinical director for a licensed dispensary may not provide a written certification for medical cannabis to any qualifying patient.</text> </paragraph> <paragraph num="E."> <text>A standard dispensary is not subject to §§A—C of this regulation until the licensee has been licensed and operational for a period of at least 24 months.</text> </paragraph> <paragraph num="F."> <text>A micro dispensary is not subject to §§A—C of this regulation.</text> </paragraph> <paragraph num="G."> <text>The Administration may request information from licensed dispensaries on clinical director utilization in a manner specified by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Tax Exemption of Medical Cannabis."> <text>Medical cannabis sold to qualifying patients or registered caregivers under this chapter shall be exempt from any sales and use tax assessment.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Medical Product Availability."> <paragraph num="A."> <text>A qualifying patient, registered caregiver, certifying provider, licensee, or clinical director may submit to the Administration, in a manner prescribed by the Administration, information about medical cannabis products that are scarce, limited in production, or no longer available.</text> </paragraph> <paragraph num="B."> <text>The Administration may implement programs or incentives to address product scarcity.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-201, 36-301, 36-302, 36-410, and 36-601, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 repealed effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended and recodified to be Regulation .07 effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended and recodified to be Regulation .08 effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="05" heading="Application Process and Issuance of Licenses"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to the distribution of any cannabis licenses through a lottery system, including a:</text> <paragraph num="A."> <text>Standard grower license;</text> </paragraph> <paragraph num="B."> <text>Standard processor license;</text> </paragraph> <paragraph num="C."> <text>Standard dispensary license;</text> </paragraph> <paragraph num="D."> <text>Micro grower license;</text> </paragraph> <paragraph num="E."> <text>Micro processor license;</text> </paragraph> <paragraph num="F."> <text>Micro dispensary license;</text> </paragraph> <paragraph num="G."> <text>On-site consumption establishment license; and</text> </paragraph> <paragraph num="H."> <text>Incubator space license.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Application Requirements."> <paragraph num="A."> <text>An applicant shall submit an application to the Administration for a license.</text> </paragraph> <paragraph num="B."> <text>A submitted application shall conform with the requirements established under Alcoholic Beverages and Cannabis Article, §36-404, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>An application shall be:</text> <paragraph num="(1)"> <text>Completed on a form designated by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Accompanied by the application fee as specified in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An applicant, including any individual or entity that holds an ownership interest in or control of the applicant, may only be listed on:</text> <paragraph num="(1)"> <text>One application per license type per application round; and</text> </paragraph> <paragraph num="(2)"> <text>Two applications for any license type per application round.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Any applicant that violates §D of this regulation may not be considered by the Administration for licensure.</text> </paragraph> <paragraph num="F."> <text>The Administration may not require an applicant to possess or own any property or facility to operate a cannabis business at the time of the application.</text> </paragraph> <paragraph num="G."> <text>The Administration may verify an applicant’s status as a social equity applicant prior to the initial application and licensure.</text> </paragraph> <paragraph num="H."> <text>Any information an applicant submits in support of their social equity status in §G of this regulation is considered part of the application and is subject to verification by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Application Notification, Submission, and Review."> <paragraph num="A."> <text>The Administration shall announce an application round at least 60 days prior to the acceptance of applications. The announcement shall include:</text> <paragraph num="(1)"> <text>Types of licenses available during the licensing round;</text> </paragraph> <paragraph num="(2)"> <text>Number of licenses available by license type;</text> </paragraph> <paragraph num="(3)"> <text>Beginning and closing day of the application period; and</text> </paragraph> <paragraph num="(4)"> <text>Any regional, jurisdictional, or other geographical considerations in the licensing round.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration shall accept applications for a period of 30 calendar days.</text> </paragraph> <paragraph num="C."> <text>The Administration shall conduct extensive outreach to small, minority, and women business owners and potential social equity applicants prior to accepting applications.</text> </paragraph> <paragraph num="D."> <text>Upon the closing of any application period, the Administration shall announce the number of applications submitted and the maximum number of licenses that may be awarded within each license category and pool of applications.</text> </paragraph> <paragraph num="E."> <text>Application Review.</text> <paragraph num="(1)"> <text>The burden of proving an applicant’s qualifications rests on the applicant.</text> </paragraph> <paragraph num="(2)"> <text>The Administration may:</text> <paragraph num="(a)"> <text>Deny an application that:</text> <paragraph num="(i)"> <text>Is not complete in every material detail;</text> </paragraph> <paragraph num="(ii)"> <text>Contains a material misstatement, omission, misrepresentation, or untruth;</text> </paragraph> <paragraph num="(iii)"> <text>Does not meet the minimum qualifications for the lottery; or</text> </paragraph> <paragraph num="(iv)"> <text>Is not submitted by the established deadline;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Request any additional information from any applicant, if it deems the information necessary to review or process the application; and</text> </paragraph> <paragraph num="(c)"> <text>If the applicant does not provide the additional requested information within 10 calendar days, deny the application.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Administration shall determine whether a submitted application meets the minimum qualifications for the lottery on a pass-fail basis by reviewing:</text> <paragraph num="(a)"> <text>A detailed operational plan for the safe, secure, and effective operation of the business;</text> </paragraph> <paragraph num="(b)"> <text>A business plan demonstrating a likelihood of success and sufficient ability and experience on the part of the applicant, and providing for appropriate employee working conditions;</text> </paragraph> <paragraph num="(c)"> <text>A detailed diversity plan; and</text> </paragraph> <paragraph num="(d)"> <text>For the first round of licensing and otherwise as required under Alcoholic Beverages and Cannabis Article, §36-404, Annotated Code of Maryland, for any subsequent round of licensing, documentation that the applicant meets the requirements of a social equity applicant.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Minimum qualifications in §E(3) of this regulation shall be established by the Administration and communicated to prospective applicants prior to the application period.</text> </paragraph> <paragraph num="G."> <text>The Administration may award fewer licenses than authorized under law in any licensing round.</text> </paragraph> <paragraph num="H."> <text>The Administration may require an applicant, or any individual or entity that holds an ownership interest in or control of the applicant, to complete an attestation demonstrating the applicant meets the requirements for award established in Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 4, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Lottery Award and Conditional License."> <paragraph num="A."> <text>Lottery.</text> <paragraph num="(1)"> <text>The Administration shall conduct a lottery that is impartial, random, and in a format selected by the Administration.</text> </paragraph> <paragraph num="(2)"> <text>Any applicant that meets the minimum qualifications for licensing shall be placed in the lottery.</text> </paragraph> <paragraph num="(3)"> <text>Subsequent to the lottery, the Administration shall notify all applicants of whether their application was selected in the lottery.</text> </paragraph> <paragraph num="(4)"> <text>The Administration may request any additional information or supporting documentation from an applicant selected in the lottery necessary to verify aspects of the application, including but not limited to additional information and supporting documentation related to the:</text> <paragraph num="(a)"> <text>Operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant, and providing for appropriate employee working conditions;</text> </paragraph> <paragraph num="(c)"> <text>Detailed diversity plan; and</text> </paragraph> <paragraph num="(d)"> <text>Ownership and control of the applicant.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Administration may deny issuing a conditional license to an applicant selected in the lottery if:</text> <paragraph num="(a)"> <text>The applicant fails to provide any additional information or supporting documentation requested pursuant to §A(4) of this regulation within 10 calendar days;</text> </paragraph> <paragraph num="(b)"> <text>Any additional information or supporting documentation submitted by the applicant demonstrates the applicant is not eligible for a license under this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>The Administration determines that the applicant violated Regulation .02D of this chapter.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The Administration shall notify an applicant who has been awarded a conditional license within 5 calendar days of the award.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Conditional License.</text> <paragraph num="(1)"> <text>A conditional licensee shall complete a supplemental license application.</text> </paragraph> <paragraph num="(2)"> <text>A supplemental license application shall require a conditional licensee to:</text> <paragraph num="(a)"> <text>Undergo a criminal history records check in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Complete a financial background investigation conducted by the Administration;</text> </paragraph> <paragraph num="(c)"> <text>Verify any information or supporting documentation provided in the application;</text> </paragraph> <paragraph num="(d)"> <text>Disclose any adverse action taken against a professional or business license held in any jurisdiction by the applicant or any individual or entity holding an ownership interest in the applicant;</text> </paragraph> <paragraph num="(e)"> <text>Waive any contractual, statutory, or common law obligation of confidentiality and authorize any government agency in any jurisdiction to release to the Administration all information the conditional licensee has provided to any other jurisdiction while seeking a cannabis-related license in that other jurisdiction, as well as the information obtained by that other jurisdiction during any investigation it may have conducted regarding the applicant;</text> </paragraph> <paragraph num="(f)"> <text>Release all financial institutions, fiduciaries, and other parties from any contractual, statutory, or common law obligation of confidentiality to provide financial, personal and background information relevant to the conditional licensee’s capacity to manage a licensed facility; and</text> </paragraph> <paragraph num="(g)"> <text>Identify and demonstrate legal control of the proposed site, through lease, purchase, or other means, for the cannabis business.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Any conditional license not awarded due to circumstances in §A of this regulation may be awarded by lottery using the same pool of applicants as the initially selected application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Issuance of a License or Rescission of a Conditional License."> <paragraph num="A."> <text>Conditional License Period.</text> <paragraph num="(1)"> <text>The conditional license period:</text> <paragraph num="(a)"> <text>Begins on the day that a conditional license is issued to the selected applicant; and</text> </paragraph> <paragraph num="(b)"> <text>Expires 24 months after the day that conditional license was issued or at the end of an extension granted by the Administration.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A conditional licensee may apply for an extension of the conditional license.</text> </paragraph> <paragraph num="(3)"> <text>The Administration may approve a one-time extension of up to 6 months, if the Administration determines the conditional licensee has made consistent good faith efforts to establish a cannabis business.</text> </paragraph> <paragraph num="(4)"> <text>For purposes of determining consistent good faith effort in §A(3) of this regulation, the Administration:</text> <paragraph num="(a)"> <text>Will consider demonstrating legal control of a premises to indicate consistent good faith effort if the premises:</text> <paragraph num="(i)"> <text>Is suitable for the operations of the cannabis license; and</text> </paragraph> <paragraph num="(ii)"> <text>Complies with local planning and zoning requirements; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>May use its discretion to determine that a conditional licensee has demonstrated consistent good faith effort if the conditional licensee provides adequate documentation that a political subdivision has unduly burdened its efforts toward becoming operational, as defined in Alcoholic Beverages and Cannabis Article, §36-405, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>During the conditional license period, a conditional licensee shall:</text> <paragraph num="(a)"> <text>Complete a supplemental license application;</text> </paragraph> <paragraph num="(b)"> <text>Establish legal control of the proposed site, through lease, purchase, or other means, for the cannabis business;</text> </paragraph> <paragraph num="(c)"> <text>Notify the Administration of establishment of legal control of the proposed site;</text> </paragraph> <paragraph num="(d)"> <text>Within 6 months of being issued a conditional license, demonstrate adequate capitalization to enable the business to become operational;</text> </paragraph> <paragraph num="(e)"> <text>Gain zoning or planning approval from a political subdivision, if applicable; and</text> </paragraph> <paragraph num="(f)"> <text>Register the business with the State Department of Assessment and Taxation.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>During a conditional license period, a conditional licensee may not:</text> <paragraph num="(a)"> <text>Engage in purchasing, possessing, cultivating, manufacturing, or selling cannabis or cannabis products;</text> </paragraph> <paragraph num="(b)"> <text>Make any transfer of an ownership interest that causes a change in the individual or entity that holds the controlling ownership interest;</text> </paragraph> <paragraph num="(c)"> <text>Make any transfer of control, as defined in COMAR 14.17.01; and</text> </paragraph> <paragraph num="(d)"> <text>If the conditional licensee qualified as a social equity applicant, make any transfer of an ownership interest that causes the conditional licensee to no longer comply with the social equity applicant definition in COMAR 14.17.01.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>During a conditional license period, a conditional licensee may obtain additional resources by adding:</text> <paragraph num="(a)"> <text>Grants and loans from new or existing financial sources not listed in the initial application; and</text> </paragraph> <paragraph num="(b)"> <text>Owners and passive investors.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Any additional resources obtained by a conditional licensee made under §A(7) of this regulation may not violate this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 4, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Rescission of a Conditional License. The Administration may rescind a conditional license if a conditional licensee, or any individual or entity included in the supplemental license application:</text> <paragraph num="(1)"> <text>Has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have conviction or plea set aside;</text> </paragraph> <paragraph num="(2)"> <text>Fraudulently or deceptively attempts to obtain a license;</text> </paragraph> <paragraph num="(3)"> <text>Is ineligible to hold an ownership interest in or control of a business licensed under Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 4, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(4)"> <text>Fails to reveal any material fact pertaining to the conditional licensee’s qualification for a license;</text> </paragraph> <paragraph num="(5)"> <text>Fails to submit a complete supplemental license application;</text> </paragraph> <paragraph num="(6)"> <text>Fails to become licensed and operational within:</text> <paragraph num="(a)"> <text>24 months after the day the conditional license was issued; or</text> </paragraph> <paragraph num="(b)"> <text>If granted an extension, the day after the expiration of any extension granted by the Administration;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Fails to comply with §A(5) and (6) of this regulation;</text> </paragraph> <paragraph num="(8)"> <text>Is not registered or in good standing with the State Department of Assessment and Taxation; or</text> </paragraph> <paragraph num="(9)"> <text>Has taxes in arrears in any jurisdiction.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may award a license on a determination that:</text> <paragraph num="(1)"> <text>The conditional licensee has submitted a complete supplemental license application;</text> </paragraph> <paragraph num="(2)"> <text>The supplemental license application, including any individual or entity included in the application, does not violate §B of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The license fee specified in COMAR 14.17.21 has been paid;</text> </paragraph> <paragraph num="(4)"> <text>All inspections are passed, and all the conditional licensee’s operations conform to the specifications of the application as approved pursuant to this chapter; and</text> </paragraph> <paragraph num="(5)"> <text>The proposed premises:</text> <paragraph num="(a)"> <text>Are under the legal control of the conditional licensee; and</text> </paragraph> <paragraph num="(b)"> <text>Comply with all zoning and planning requirements.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A licensed business may not grow, process, distribute, dispense, or otherwise begin business operations without approval of written documentation under §C of this regulation by the Administration.</text> </paragraph> <paragraph num="E."> <text>The Administration may not award a license to a business who has registered with the State Department of Assessment and Taxation using a legal name that:</text> <paragraph num="(1)"> <text>Uses the terms “cannabis”, “marijuana”, or other synonym related to controlled substances;</text> </paragraph> <paragraph num="(2)"> <text>Suggests the use of cannabis as an intoxicant; or</text> </paragraph> <paragraph num="(3)"> <text>Incorporates any copyrighted material or trademark or service mark attributable to another entity.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Administration may suspend, fine, restrict, or revoke a license, including a conditional license, if:</text> <paragraph num="(1)"> <text>A licensee has fraudulently or deceptively submitted written documentation to the Administration;</text> </paragraph> <paragraph num="(2)"> <text>A licensee has violated Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 11, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>A licensee began operations prior to Administration approval; or</text> </paragraph> <paragraph num="(4)"> <text>It is determined that a licensee has not complied with statements in the application, including statements about standards of operation or employment practices related to diversity, equity, and inclusion.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Application Retention."> <paragraph num="A."> <text>Upon notification that an applicant was not selected by the lottery, the applicant may request the Administration retain the application for subsequent licensure application rounds.</text> </paragraph> <paragraph num="B."> <text>The Administration shall retain any application requested for retention by the applicant for a period of 1 year.</text> </paragraph> <paragraph num="C."> <text>The Administration may contact an applicant with a retained application for any additional information required for subsequent licensing rounds.</text> </paragraph> <paragraph num="D."> <text>Any application retained by the Administration that meets the specifications and requirements of a subsequent licensing round within the 1-year retention period shall be automatically entered into the lottery if:</text> <paragraph num="(1)"> <text>The applicant has properly amended the application if requested by the Administration under §C of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Any additional information requested by the Administration has been updated.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Administration may not enter a retained application into a subsequent lottery round if:</text> <paragraph num="(1)"> <text>Any individual included in the application is associated with additional applications in the licensing round that exceed the restrictions in Regulation .02D of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Any individual included in the application is in violation of ownership restrictions under COMAR 14.17.16, or the awarding of a license would place the individual in violation of ownership restrictions under COMAR 14.17.16; and</text> </paragraph> <paragraph num="(3)"> <text>Any individual associated with the application has been found to be in violation of Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 11, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Hearing Rights of Applicants."> <paragraph num="A."> <text>Records Review.</text> <paragraph num="(1)"> <text>An applicant not entered into the lottery by the Administration may request a records review of the submitted application within 10 days of notification that their application does not meet the minimum qualifications for the lottery on a pass-fail basis.</text> </paragraph> <paragraph num="(2)"> <text>A records review shall consist of an opportunity for the applicant to examine the applicant’s records received by the Administration and verify the basis on which the application was deemed ineligible for the lottery.</text> </paragraph> <paragraph num="(3)"> <text>No applicant may gain access to records submitted by any other applicant through the records review process.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A selected applicant or an applicant who applies pursuant to COMAR 14.17.05.06 who subsequently has their application denied by the Administration or a conditional licensee who has their conditional license rescinded pursuant to Regulation .05B of this chapter may request a hearing under COMAR 14.17.22.</text> </paragraph> <paragraph num="C."> <text>An applicant who meets the minimum qualifications for the lottery, but is not selected in the lottery, may not appeal or request a hearing. The application shall be retained by the Administration in accordance with Regulation .06 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Lottery Exemption."> <paragraph num="A."> <text>Pigford v. Glickman Class Members.</text> <paragraph num="(1)"> <text>The Administration may issue up to five conditional grower licenses to recognized class members of Pigford v. Glickman, 185 32 F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011) who:</text> <paragraph num="(a)"> <text>Were awarded damages related to farming operations in Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Have provided evidence to the Administration that they have not been fully compensated for discrimination and continue to experience challenges due to past or present discrimination; and</text> </paragraph> <paragraph num="(c)"> <text>Meet all other application criteria established by the Administration under this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If there are more qualified applications than the number of licenses available, the Administration shall conduct a lottery for all applicants that meet the minimum qualifications for licensing established under §A(1) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Notwithstanding any other provision of law, a license issued under this regulation is in addition to and not subject to the limitations on the total number of licenses that the Administration may issue under Alcoholic Beverages and Cannabis Article, Title 36, Subtitle 4, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A business awarded a grower license pursuant to Ch. 598, Acts of 2018, may be awarded a standard dispensary license, if the grower:</text> <paragraph num="(1)"> <text>Submits an application that meets the minimum qualifications for a standard dispensary license, as determined by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Including any individual or entity that holds an ownership interest in or control of the grower, does not own or control a dispensary license.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-401, 36-404, and 36-505, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective April 14, 2025 (52:7 Md. R. 324); March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="06" heading="Standard Cannabis Licenses"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to all standard cannabis licenses, including:</text> <paragraph num="A."> <text>Standard grower, processor, and dispensary licenses authorized under Alcoholic Beverages and Cannabis Article, §36-401(c)(1), Annotated Code of Maryland;</text> </paragraph> <paragraph num="B."> <text>Converted licenses under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland;</text> </paragraph> <paragraph num="C."> <text>Converted micro licenses under COMAR 14.17.07.08;</text> </paragraph> <paragraph num="D."> <text>Incubator space licenses, authorized under Alcoholic Beverages and Cannabis Article, §36-406, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="E."> <text>On-site consumption licenses, authorized under Alcoholic Beverages and Cannabis Article, §36-407, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Term of License and License Renewal."> <paragraph num="A."> <text>Licenses converted under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland, are valid for 5 years from the date of the initial conversion fee payment to the Administration.</text> </paragraph> <paragraph num="B."> <text>As a condition of licensure, a licensee shall comply with all subregulatory guidance issued by the Administration, including but not limited to bulletins, notices, resolutions, seed-to-sale tracking system guidance, and technical authorities posted to the Administration’s website.</text> </paragraph> <paragraph num="C."> <text>A cannabis license under this chapter is valid for:</text> <paragraph num="(1)"> <text>5 years on initial licensure; and</text> </paragraph> <paragraph num="(2)"> <text>5 years on renewal.</text> </paragraph> </paragraph> <paragraph num="D."> <text>At least 90 calendar days before the expiration of a license, the Administration shall notify the licensee of the:</text> <paragraph num="(1)"> <text>Date on which the license expires;</text> </paragraph> <paragraph num="(2)"> <text>Process and the fee required to renew the license; and</text> </paragraph> <paragraph num="(3)"> <text>Consequences of a failure to renew the license.</text> </paragraph> </paragraph> <paragraph num="E."> <text>At least 30 calendar days before a license expires, a licensee seeking approval shall submit:</text> <paragraph num="(1)"> <text>The renewal application in the form designated by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Proof that fingerprints have been submitted to Criminal Justice Information System and the Federal Bureau of Investigation for each agent and any owner with an ownership interest of 5 percent or more;</text> </paragraph> <paragraph num="(3)"> <text>To a full inspection of the licensed premises as described in COMAR 14.17.14.03, unless a full inspection was satisfactorily completed within 3 months before the date of the license expiration; and</text> </paragraph> <paragraph num="(4)"> <text>Payment of the fee specified in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Administration may renew a license that meets the requirements for renewal as stated in §E of this regulation.</text> </paragraph> <paragraph num="G."> <text>If a licensee fails the inspection or submits a deficient application for renewal, the licensee may apply for reinstatement by:</text> <paragraph num="(1)"> <text>Submitting a plan to correct the deficiencies noted during an inspection; and</text> </paragraph> <paragraph num="(2)"> <text>Amending the application for renewal.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Administration may deny a license renewal if:</text> <paragraph num="(1)"> <text>The plan to correct deficiencies identified in an inspection is deficient;</text> </paragraph> <paragraph num="(2)"> <text>The amended application for renewal is deficient;</text> </paragraph> <paragraph num="(3)"> <text>The licensee is repeatedly found in violation of health and safety regulations during the license period; or</text> </paragraph> <paragraph num="(4)"> <text>The licensee is repeatedly found in violation of this subtitle or Title 36, Alcoholic Beverages and Cannabis Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A licensee who fails to apply for license renewal by the date specified by the Administration, or whose license was not renewed by the Administration:</text> <paragraph num="(1)"> <text>Shall cease operations at all premises; and</text> </paragraph> <paragraph num="(2)"> <text>May not provide cannabis to any entity or individual.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A license may be reinstated upon:</text> <paragraph num="(1)"> <text>Payment of the reinstatement fee specified in COMAR 14.17.21; and</text> </paragraph> <paragraph num="(2)"> <text>Submission of a reinstatement application approved by the Administration.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A licensee may not register with the State Department of Assessment and Taxation using a legal name that:</text> <paragraph num="(1)"> <text>Uses the terms “cannabis”, “marijuana”, or other synonym related to controlled substances;</text> </paragraph> <paragraph num="(2)"> <text>Suggests the use of cannabis as an intoxicant; or</text> </paragraph> <paragraph num="(3)"> <text>Incorporates any copyrighted material or trademark or service mark attributable to another entity.</text> </paragraph> </paragraph> <paragraph num="L."> <text>The Administration may specify the format and manner for all required licensee and conditional licensee submissions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Change of Location."> <paragraph num="A."> <text>A licensee may apply to change the location of the licensee’s operation.</text> </paragraph> <paragraph num="B."> <text>The licensee shall apply for a change of location in the form designated by the Administration along with the fee specified in COMAR 14.17.21.</text> </paragraph> <paragraph num="C."> <text>A licensee may not begin cultivation, processing, or dispensing of cannabis at a new location until the Administration approves the change.</text> </paragraph> <paragraph num="D."> <text>A dispensary may only change location within the county that the dispensary was awarded a license.</text> </paragraph> <paragraph num="E."> <text>A grower or processor may only change location outside of the region in which the grower or processor was awarded a license if the proposed location is part of a co-location agreement as described in COMAR 14.17.06.11.</text> </paragraph> <paragraph num="F."> <text>The Administration may deny a change of location application if:</text> <paragraph num="(1)"> <text>The application is not complete in every material detail;</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding §E of this regulation, the change of location would move the proposed licensed location outside of the region or jurisdiction in which it was awarded; or</text> </paragraph> <paragraph num="(3)"> <text>The change of location otherwise violates a provision of State or local law pertaining to the licensed locations of cannabis businesses.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A licensee’s proposed location shall conform to local zoning and planning requirements.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Transfer of Ownership Interest in a License."> <paragraph num="A."> <text>A cannabis licensee, including a cannabis licensee whose license was converted in accordance with Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, is not transferable except as provided under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>If a proposed transfer is for less than 5 percent of a cannabis licensee and the proposed transfer will not result in the transferee holding 5 percent or more of the licensee, then the proposed transfer does not require approval by the Administration.</text> </paragraph> <paragraph num="C."> <text>The Administration may approve a transfer or assignment of ownership if:</text> <paragraph num="(1)"> <text>The Administration receives notice of the intent of the owner of the interest, or of the estate of the owner of the interest, to transfer or assign an ownership interest in a license to another party, in a form prescribed by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>The proposed transfer does not violate Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>The transferee has paid the required fee specified in COMAR 14.17.21; and</text> </paragraph> <paragraph num="(4)"> <text>The transferee has provided criminal history record and financial information to the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration shall deny transfer of an interest for any proposed transferee:</text> <paragraph num="(1)"> <text>If the transfer violates COMAR 14.17.16;</text> </paragraph> <paragraph num="(2)"> <text>If the transfer would convey a controlling interest in the license prior to the cannabis licensee being licensed and operational for a period of at least 5 years, and is not proposed due to death, disability, incapacity, bankruptcy, or receivership in accordance with a lending agreement of a cannabis licensee or court order; or</text> </paragraph> <paragraph num="(3)"> <text>If, prior to the cannabis licensee being licensed and operational for a period of at least 5 years, the transfer would convey to the transferee the right or authority to obtain a controlling interest in the license at a later date.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Administration may deny transfer of an interest for any proposed transferee if the:</text> <paragraph num="(1)"> <text>Transferee or an individual with ownership or control of the transferee has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside;</text> </paragraph> <paragraph num="(2)"> <text>Payment of taxes due in any jurisdiction is in arrears.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Administration may deny transfer of a controlling interest in a license or in an ownership interest of 5 percent or more if the Administration finds good cause to deny the proposed transfer.</text> </paragraph> <paragraph num="G."> <text>Any individual or entity identified as having ownership or control of a license may not hold an ownership interest that exceeds the limitations set forth in Alcoholic Beverages and Cannabis Article, §36-401(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="H."> <text>If the Administration approves a transfer of an ownership interest of a license and subsequently the Administration finds that such a transfer violates State, local, or federal law, the Administration may:</text> <paragraph num="(1)"> <text>Issue a fine against any parties involved in the transfer;</text> </paragraph> <paragraph num="(2)"> <text>Declare the transfer void; and</text> </paragraph> <paragraph num="(3)"> <text>Rescind the license.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Prior to the transfer, the licensee shall conduct a full inventory of all cannabis and cannabis products, in a manner prescribed by the Administration.</text> </paragraph> <paragraph num="J."> <text>Employee Incentive Programs.</text> <paragraph num="(1)"> <text>In this section, the term “incentive unit” means a unit of ownership in the licensee or its parent, subsidiary, or affiliate such as stock or limited liability company membership, issued to an individual as part of a licensee’s employee incentive program or other compensation.</text> </paragraph> <paragraph num="(2)"> <text>A licensee may issue employee incentive units as part of an employee compensation plan.</text> </paragraph> <paragraph num="(3)"> <text>A licensee shall:</text> <paragraph num="(a)"> <text>Establish a detailed employee incentive plan for each individual to whom it intends to issue incentive units and issue incentive units in accordance with the plan; and</text> </paragraph> <paragraph num="(b)"> <text>Upon request, provide a copy of the plan in §J(3)(a) of this regulation, in a manner prescribed by the Administration.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A licensee may not issue employee incentive units in a way that violates:</text> <paragraph num="(a)"> <text>This regulation;</text> </paragraph> <paragraph num="(b)"> <text>This chapter;</text> </paragraph> <paragraph num="(c)"> <text>This subtitle;</text> </paragraph> <paragraph num="(d)"> <text>Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Incentive units issued to employees under this section may not:</text> <paragraph num="(a)"> <text>Exceed 5 percent total ownership to any one individual; or</text> </paragraph> <paragraph num="(b)"> <text>Change the control structure of the license.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>In the annual disclosure of ownership and control report required by COMAR 14.17.16.02, a licensee shall disclose any employee incentive unit issuances or transfers that have occurred since the date of the licensee's last annual disclosure submission.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Management Agreements."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined. “Management company” means an entity that provides management services to a licensed entity.</text> <paragraph num="(a)"> <text>Management Agreement.</text> <paragraph num="(i)"> <text>“Management agreement” means an arrangement between a management company and a licensee for the provision of services, including but not limited to consulting, advisory, or marketing services related to the licensee’s operations.</text> </paragraph> <paragraph num="(ii)"> <text>“Management agreement” does not include arrangements for legal, financial, or other services that do not delegate operational aspects of the business to the service provider.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Management company” means an entity that provides management services to a licensed entity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A management company shall be:</text> <paragraph num="(1)"> <text>Approved by the Administration, in a manner prescribed by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>In good standing with the State Department of Assessments and Taxation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A licensee shall provide a copy of a management agreement to the Administration and include:</text> <paragraph num="(1)"> <text>Information detailing any compensation paid in exchange for the management services;</text> </paragraph> <paragraph num="(2)"> <text>Criminal history record and financial information of the third party providing the management services; and</text> </paragraph> <paragraph num="(3)"> <text>Any other information relevant to the management agreement requested by the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A management agreement may not take effect unless the Administration has:</text> <paragraph num="(1)"> <text>Received proper notice of the management agreement, as specified in §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Received the required fee specified in COMAR 14.17.21; and</text> </paragraph> <paragraph num="(3)"> <text>Approved the management agreement.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Administration may deny a management agreement:</text> <paragraph num="(1)"> <text>If the management agreement constitutes an invalid transfer of an ownership interest in a license, as specified in Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>If the criminal history record information or the background investigation reveals the personnel of a third party providing the management services has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside;</text> </paragraph> <paragraph num="(3)"> <text>If the management agreement transfers control of a license:</text> <paragraph num="(a)"> <text>In violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>As established in §H of this regulation;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the licensee fails to produce additional documentation requested by the Administration;</text> </paragraph> <paragraph num="(5)"> <text>If the management agreement is found to be in violation of §G of this regulation; or</text> </paragraph> <paragraph num="(6)"> <text>For any other good cause.</text> </paragraph> </paragraph> <paragraph num="F."> <text>In the case of material change to a management agreement, including but not limited to a change of ownership or control of the management company, the licensee shall:</text> <paragraph num="(1)"> <text>Provide any relevant records, files, or information to the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Receive Administration approval prior to the material change to the management agreement taking effect.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A management agreement under this regulation may not require a licensee to:</text> <paragraph num="(1)"> <text>Operate the business under a marketing plan or system that is associated with the trademark, service mark, trade name, logotype, advertising, or other commercial symbol that designates the licensee as same or similar to the management company;</text> </paragraph> <paragraph num="(2)"> <text>Offer, sell, or distribute cannabis or cannabis products under a marketing plan or system prescribed in substantial part by the entity providing the management agreement;</text> </paragraph> <paragraph num="(3)"> <text>Limit the offerings of cannabis or cannabis products to another licensed entity holding a direct or indirect financial relationship to the management company; or</text> </paragraph> <paragraph num="(4)"> <text>Sell or transfer ownership interest in the license at a later date to the management company.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A management agreement may constitute a transfer of control if it conveys to a management company:</text> <paragraph num="(1)"> <text>Unilateral control as defined in COMAR 14.17.01; or</text> </paragraph> <paragraph num="(2)"> <text>The right or authority to make major marketing, production, and financial decisions, including:</text> <paragraph num="(a)"> <text>The right or authority to operate the business under a trademark, service mark, trade name, logotype, or other commercial symbol that is the same as the management company or another licensee;</text> </paragraph> <paragraph num="(b)"> <text>The right or authority to purchase a controlling interest in, or control of, the license at a later date; or</text> </paragraph> <paragraph num="(c)"> <text>The right to or actual payment from the licensee over the course of a calendar year exceeding the greatest of:</text> <paragraph num="(i)"> <text>25 percent of the licensee’s gross revenue;</text> </paragraph> <paragraph num="(ii)"> <text>50 percent of the licensee’s net profits; or</text> </paragraph> <paragraph num="(iii)"> <text>$250,000.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Standard Grower License."> <paragraph num="A."> <text>A standard grower license authorizes the licensee to:</text> <paragraph num="(1)"> <text>Cultivate or package cannabis; and</text> </paragraph> <paragraph num="(2)"> <text>Provide cannabis, or usable cannabis, to other licensees and registered independent testing laboratories.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A standard grower’s canopy may not exceed the canopy restrictions as established in Alcoholic Beverages and Cannabis Article, §36-402, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>On or before October 1 of each year a standard grower shall report to the Administration the square footage of indoor and outdoor canopy as defined in COMAR 14.17.01. The Administration may:</text> <paragraph num="(1)"> <text>Inspect the licensed premise to verify the standard grower’s annual submission of canopy square footage; and</text> </paragraph> <paragraph num="(2)"> <text>Restrict, reduce, fine, or otherwise sanction any standard grower who misrepresents canopy square footage.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For any standard grower found in violation of §B of this regulation, the Administration may:</text> <paragraph num="(1)"> <text>Reduce the canopy of the standard grower by the same percentage as it exceeds the authorized canopy; and</text> </paragraph> <paragraph num="(2)"> <text>Seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in the excess of the canopy restrictions.</text> </paragraph> </paragraph> <paragraph num="E."> <text>For the purposes of calculating canopy under §§B—D of this regulation, canopy that is rented, leased, operated, or otherwise controlled by a standard grower other than its owner shall only be attributed to the standard grower in control of the square footage.</text> </paragraph> <paragraph num="F."> <text>For the purposes of calculating canopy under §§B—D of this regulation, 1 square foot of indoor canopy is equal to 4 square feet of outdoor canopy.</text> </paragraph> <paragraph num="G."> <text>A standard grower licensed under this regulation shall operate in accordance with COMAR 14.17.10.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Standard Processor License."> <paragraph num="A."> <text>A standard processor license authorizes the licensee to:</text> <paragraph num="(1)"> <text>Transform cannabis into another product or an extract and package and label the cannabis product; and</text> </paragraph> <paragraph num="(2)"> <text>Provide cannabis to licensed dispensaries and independent testing laboratories.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A standard processor licensed under this regulation shall operate in accordance with COMAR 14.17.11.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Standard Dispensary License."> <paragraph num="A."> <text>A standard dispensary license authorizes the licensee operating a store at a physical location to acquire, possess, sell, or dispense cannabis products and related materials in accordance with Alcoholic Beverages and Cannabis Article, §36-401(c)(1), Annotated Code of Maryland, including for use by qualifying patients or consumers through a physical storefront.</text> </paragraph> <paragraph num="B."> <text>A standard dispensary may not operate a delivery service as defined in COMAR 14.17.01, unless the standard dispensary:</text> <paragraph num="(1)"> <text>Has a qualifying partnership with a micro dispensary under Alcoholic Beverages and Cannabis Article, §1-323, Annotated Code of Maryland, to conduct delivery services on behalf of the standard dispensary; or</text> </paragraph> <paragraph num="(2)"> <text>Otherwise partners or contracts with a micro dispensary to conduct delivery services for the standard dispensary.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A standard dispensary licensed under this regulation shall operate in accordance with COMAR 14.17.12.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Incubator Space License."> <paragraph num="A."> <text>An incubator space license authorizes the licensee to operate a facility within which a micro licensee may operate in accordance with Alcoholic Beverages and Cannabis Article, §36-406, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Any individual with ownership or control of an incubator space license may not have any ownership or control any other cannabis license type.</text> </paragraph> <paragraph num="C."> <text>Prior to the issuance of incubator space licenses, the Maryland Economic Development Corporation shall identify regional sites in accordance with Chs. 254 (H.B. 556) and 255 (S.B. 516), §13, Acts of 2023.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="On-Site Consumption License."> <paragraph num="A."> <text>An on-site consumption establishment license authorizes the licensee to operate a licensed premises in which cannabis may be consumed in accordance with Alcoholic Beverages and Cannabis Article, §36-407, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>An on-site consumption establishment may operate only if the county or, if applicable, the municipality, where the business is located has issued a permit or license that expressly allows the operation of the on-site consumption establishment subject to the limitations in Alcoholic Beverages and Cannabis Article, §36-405, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>An on-site consumption license does not authorize the holder of the license to:</text> <paragraph num="(1)"> <text>Cultivate cannabis;</text> </paragraph> <paragraph num="(2)"> <text>Process cannabis or cannabis–infused products; or</text> </paragraph> <paragraph num="(3)"> <text>Add cannabis to food prepared or served on the premises.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Any individual or entity who holds an ownership interest in or control of an on-site consumption license may not have any ownership interest or control in any other cannabis license.</text> </paragraph> <paragraph num="E."> <text>An on-site consumption establishment may apply to change the location of the on-site consumption establishment’s operation.</text> </paragraph> <paragraph num="F."> <text>The on-site consumption establishment shall submit an application to the Administration along with the fee specified in COMAR 14.17.21.</text> </paragraph> <paragraph num="G."> <text>The application shall include documentation:</text> <paragraph num="(1)"> <text>Of approval from the jurisdiction where the on-site consumption establishment plans to relocate; and</text> </paragraph> <paragraph num="(2)"> <text>That the proposed premises:</text> <paragraph num="(a)"> <text>Is under legal control of the applicant; and</text> </paragraph> <paragraph num="(b)"> <text>Comply with all zoning and planning requirements.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>The Administration may not award licenses for on-site consumption establishments prior to May 1, 2024.</text> </paragraph> <paragraph num="I."> <text>No other cannabis licensee may authorize or permit on-site consumption at the licensed premise, or at any space owned or controlled by the licensee.</text> </paragraph> <paragraph num="J."> <text>Prior to operating a facility where the consumption of cannabis is permitted on the premises, a person shall obtain an on-site consumption licensed.</text> </paragraph> <paragraph num="K."> <text>An on-site consumption establishment may obtain cannabis and cannabis products from licensed growers, processors, and standard dispensaries.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Licensee Co-Location."> <paragraph num="A."> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Co-located licensee” means a grower or processor licensee who has entered an agreement to share a licensed premises.</text> </paragraph> <paragraph num="(2)"> <text>“Commingling” means mixing any cannabis belonging to one licensee with cannabis that belongs to another licensee.</text> </paragraph> <paragraph num="(3)"> <text>“Storage area” means any single room or container designated for cannabis to be kept before distribution, transfer, or processing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A maximum of three licensees may enter an agreement to share a licensed premises, provided:</text> <paragraph num="(1)"> <text>Provided at least one of the licensees operates in the region in which they were awarded a license; and</text> </paragraph> <paragraph num="(2)"> <text>The licensees are growers or processors.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If co-located licensees share equipment or production materials, each licensee shall:</text> <paragraph num="(1)"> <text>Use equipment at separate times;</text> </paragraph> <paragraph num="(2)"> <text>Sanitize any equipment and work space before it is used by another licensee; and</text> </paragraph> <paragraph num="(3)"> <text>Maintain independent and unique storage areas.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A co-located licensee shall:</text> <paragraph num="(1)"> <text>Adhere to all requirements for operating a licensed grower or processor premises, whichever applies;</text> </paragraph> <paragraph num="(2)"> <text>Establish and follow all standard operating procedures for sharing a licensed premises and, if applicable, sharing equipment;</text> </paragraph> <paragraph num="(3)"> <text>Store and keep separate all of its cannabis at all times to avoid commingling at any stage of the growth or production process;</text> </paragraph> <paragraph num="(4)"> <text>Have equal, independent, and unique control over access to its storage area, including the ability to add or remove its badged agents to access any area in which their plants or products are stored;</text> </paragraph> <paragraph num="(5)"> <text>Have equal independent and unique access to its video surveillance recordings, which shall be recorded and saved as required by COMAR 14.17.10.02 or COMAR 14.17.11.02, whichever applies; and</text> </paragraph> <paragraph num="(6)"> <text>Maintain independent and accurate records within the seed-to-sale tracking system as required by regulations for their license type.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A co-location agreement:</text> <paragraph num="(1)"> <text>May not transfer ownership or control of a license in violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>May not be used to circumvent any requirements for operating a licensed premises;</text> </paragraph> <paragraph num="(3)"> <text>May not take effect prior to Administration:</text> <paragraph num="(a)"> <text>Approval of the agreement terms; and</text> </paragraph> <paragraph num="(b)"> <text>Inspection of the shared premises; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If co-located licensees are sharing security or video surveillance systems, shall specify which licensee is responsible for ensuring a shared system complies with COMAR 14.17.10.02F and G or COMAR 14.17.11.02E and F, whichever apply.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Upon signing a co-location agreement, a co-locating licensee shall provide to the Administration:</text> <paragraph num="(1)"> <text>A copy of the co-location agreement; and</text> </paragraph> <paragraph num="(2)"> <text>Any other documents relevant to the co-location as requested by the Administration.</text> </paragraph> </paragraph> <paragraph num="H."> <text>If the Administration determines a co-location agreement violates §F of this regulation, the Administration may:</text> <paragraph num="(1)"> <text>Deny or rescind approval of the co-location agreement; and</text> </paragraph> <paragraph num="(2)"> <text>Fine, suspend, restrict, revoke, or otherwise sanction a co-locating licensee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Protest of Renewal."> <paragraph num="A."> <text>Individuals may file a protest against cannabis license renewal with the Administration in a manner prescribed by the Administration.</text> </paragraph> <paragraph num="B."> <text>A valid filing of a protest against license renewal under this regulation shall be made by ten or more individuals who are located within 1,000 feet of the license location and are:</text> <paragraph num="(1)"> <text>Residents;</text> </paragraph> <paragraph num="(2)"> <text>Commercial tenants; or</text> </paragraph> <paragraph num="(3)"> <text>Real estate owners.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A protest against license renewal shall be made on the basis of:</text> <paragraph num="(1)"> <text>A violation by the licensee of this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>A violation by the licensee of civil or criminal law; or</text> </paragraph> <paragraph num="(3)"> <text>Conduct by the licensee that creates or maintains conditions that allow other individuals to act in a manner that disturbs the public peace, including:</text> <paragraph num="(a)"> <text>Obstruction of public rights-of-way by unruly crowds;</text> </paragraph> <paragraph num="(b)"> <text>Assault, battery, or other disorderly conduct that disturbs the public peace;</text> </paragraph> <paragraph num="(c)"> <text>Vandalism; or</text> </paragraph> <paragraph num="(d)"> <text>Littering.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Reasonable Grounds.</text> <paragraph num="(1)"> <text>Individuals may only demonstrate reasonable grounds for a protest against license renewal by:</text> <paragraph num="(a)"> <text>Submitting criminal or civil citations, violations, incident reports, or other sanctions against the licensee by:</text> <paragraph num="(i)"> <text>Local law enforcement;</text> </paragraph> <paragraph num="(ii)"> <text>The Maryland Cannabis Administration;</text> </paragraph> <paragraph num="(iii)"> <text>The Alcohol, Tobacco or Cannabis Commission; or</text> </paragraph> <paragraph num="(iv)"> <text>Any other unit of government with the legal authority to issue fines, citations, or other violations; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Submitting criminal or civil citation, violations, or other sanctions against an individual for conduct occurring within 1,000 feet of the licensed establishment by:</text> <paragraph num="(i)"> <text>Local law enforcement; or</text> </paragraph> <paragraph num="(ii)"> <text>Any other unit of government with the legal authority to issue fines, citations, or other violations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Administration shall determine if the protest filed is based on reasonable grounds.</text> </paragraph> <paragraph num="(3)"> <text>In making the determination of reasonable grounds, the Administration may consider the number of citations, violations, or other sanctions filed under §D(1) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>A submission under §D(1) of this regulation may only be used for the purposes of a single protest against license renewal filing.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Protest of Renewal Hearing.</text> <paragraph num="(1)"> <text>If the Administration determines that the protest is based on reasonable grounds, the Administration shall:</text> <paragraph num="(a)"> <text>Hold a hearing in accordance with COMAR 14.17.22 of this subtitle; and</text> </paragraph> <paragraph num="(b)"> <text>Notify the licensee no later than 30 days prior to the hearing date.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A hearing under this regulation shall be held within 6 months of the determination by the Administration that the protest was filed on the basis of reasonable grounds.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Sanctions.</text> <paragraph num="(1)"> <text>As a result of a hearing held under this regulation, the Administration may immediately:</text> <paragraph num="(a)"> <text>Suspend, fine, or revoke a license; and</text> </paragraph> <paragraph num="(b)"> <text>Develop a corrective action plan for the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In determining sanctions against the licensee, the Administration may consider the:</text> <paragraph num="(a)"> <text>Number of individuals filing the protest;</text> </paragraph> <paragraph num="(b)"> <text>Grounds on which the protest was filed;</text> </paragraph> <paragraph num="(c)"> <text>Number of citations, violations, or other sanctions filed against the license as a part of the protest against license renewal; and</text> </paragraph> <paragraph num="(d)"> <text>Any prior protest against license renewal filings or other violations issued by the Administration.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202—203, 36-401, 36-405—36-407, 36-411, 36-503, and 36-802, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02L adopted effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03E—G adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D, E amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B, C amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="07" heading="Micro Licenses"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to all micro licenses authorized under Alcoholic Beverages and Cannabis Article, §36-401(c)(2), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Term of License and License Renewal."> <paragraph num="A."> <text>In addition to §§B—D of this regulation, terms of license and license renewal for micro licenses are as established in COMAR 14.17.06.02B—K.</text> </paragraph> <paragraph num="B."> <text>A micro licensee may not exceed growing, processing or dispensing operational restrictions set forth in Alcoholic Beverages and Cannabis Article, §36-401(c)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The Administration may verify compliance with the operational restrictions under §B of this regulation within the first 24 months of a micro licensee’s operations by:</text> <paragraph num="(1)"> <text>For growers, measuring and inspecting the canopy owned or otherwise controlled by the licensed micro grower;</text> </paragraph> <paragraph num="(2)"> <text>For processors, querying the seed-to-sale tracking system for the prior 12 months of operations; and</text> </paragraph> <paragraph num="(3)"> <text>For dispensaries, investigating or otherwise verifying that the licensee:</text> <paragraph num="(a)"> <text>Operates only in the region in which the license was awarded or authorized;</text> </paragraph> <paragraph num="(b)"> <text>Employs no more than ten registered agents; and</text> </paragraph> <paragraph num="(c)"> <text>Does not operate a physical storefront.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may restrict, reduce, fine, or otherwise sanction any micro licensee who is found to be in violation of §B of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Change of Location."> <paragraph num="A."> <text>Change of location procedures and requirements are as established in COMAR 14.17.06.03.</text> </paragraph> <paragraph num="B."> <text>A petition to expand the authorized service area of a micro dispensary does not constitute a change of location under this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Ownership, Control, and Management Agreements for Micro Licenses."> <paragraph num="A."> <text>Transfer of ownership interest requirements and procedures for micro licenses are established in COMAR 14.17.06.04.</text> </paragraph> <paragraph num="B."> <text>Management agreement requirements and procedures for micro licenses are established in COMAR 14.17.06.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Micro Grower License."> <paragraph num="A."> <text>A micro grower license authorizes the licensee to:</text> <paragraph num="(1)"> <text>Cultivate or package cannabis; and</text> </paragraph> <paragraph num="(2)"> <text>Provide cannabis to other licensees and registered independent testing laboratories.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A micro grower’s canopy may not exceed the restrictions as established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>On or before October 1 of each year, micro growers shall report to the Administration the square footage of indoor and outdoor canopy as defined in COMAR 14.17.01.</text> </paragraph> <paragraph num="D."> <text>The Administration may:</text> <paragraph num="(1)"> <text>Inspect the licensed premise to verify the micro grower’s annual submission of canopy square footage; and</text> </paragraph> <paragraph num="(2)"> <text>Restrict, reduce, fine, or otherwise sanction any micro grower who misrepresents canopy square footage.</text> </paragraph> </paragraph> <paragraph num="E."> <text>For any micro grower found in violation of §B of this regulation, the Administration may:</text> <paragraph num="(1)"> <text>Reduce the canopy of the micro grower by the same percentage as it exceeds the authorized canopy; and</text> </paragraph> <paragraph num="(2)"> <text>Seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in the excess of the canopy.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For the purposes of calculating canopy under §§B—E of this regulation, canopy that is rented, leased, operated, or otherwise controlled by one micro grower to another micro grower shall only be attributed to the micro grower in control of the square footage.</text> </paragraph> <paragraph num="G."> <text>A micro grower licensed under this regulation shall operate in accordance with COMAR 14.17.10.</text> </paragraph> <paragraph num="H."> <text>A micro grower licensed under this regulation may convert to a standard grower license under COMAR 14.17.06.06 in accordance with Regulation .08 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Micro Processor License."> <paragraph num="A."> <text>A micro processor license authorizes the licensee to:</text> <paragraph num="(1)"> <text>Transform cannabis into another product or an extract and package and label the cannabis product; and</text> </paragraph> <paragraph num="(2)"> <text>Provide cannabis to licensed dispensaries and independent testing laboratories.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A micro processor licensed under this chapter may not exceed the restrictions as established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(ii), Annotated Code of Maryland, for the processing of cannabis products.</text> </paragraph> <paragraph num="C."> <text>A micro processor licensed under this regulation shall operate in accordance with COMAR 14.17.11.</text> </paragraph> <paragraph num="D."> <text>A micro processor licensed under this regulation may convert to a standard processor license under COMAR 14.17.06.07 in accordance with Regulation .08 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Micro Dispensary License."> <paragraph num="A."> <text>A micro dispensary license authorizes the licensee to operate a delivery service as defined in COMAR 14.17.01.</text> </paragraph> <paragraph num="B."> <text>A micro dispensary may not:</text> <paragraph num="(1)"> <text>Operate a physical storefront; or</text> </paragraph> <paragraph num="(2)"> <text>Employ more than 10 individuals.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A micro dispensary licensed under this regulation shall only deliver cannabis products to residences and medical facilities in the authorized service area under §D of this regulation.</text> </paragraph> <paragraph num="D."> <text>Authorized Service Area.</text> <paragraph num="(1)"> <text>A micro dispensary may only make deliveries of cannabis or cannabis products:</text> <paragraph num="(a)"> <text>In the region in which its license was awarded; and</text> </paragraph> <paragraph num="(b)"> <text>As specifically permitted by the Administration in §D(3) of this regulation, its expanded authorized service area.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A micro dispensary may submit a petition to expand its authorized service area in the manner specified by the Administration.</text> </paragraph> <paragraph num="(3)"> <text>The Administration may approve, deny, or issue temporary approval of a petition to expand a micro dispensary’s authorized service area.</text> </paragraph> <paragraph num="(4)"> <text>The authorized service area shall be entirely within the State of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>A micro dispensary may:</text> <paragraph num="(a)"> <text>Store cannabis in a facility outside of the authorized service area in accordance with COMAR 14.17.12.03; or</text> </paragraph> <paragraph num="(b)"> <text>Transit outside the authorized service area:</text> <paragraph num="(i)"> <text>For the purpose of stocking or restocking inventory; or</text> </paragraph> <paragraph num="(ii)"> <text>When it is most efficient, as part of a planned delivery route.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A micro dispensary licensed under this regulation shall operate in accordance with COMAR 14.17.12.03—.11.</text> </paragraph> <paragraph num="F."> <text>A micro dispensary licensed under this regulation may convert to a standard dispensary license under COMAR 14.17.06.08 in accordance with Regulation .08 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Conversion to Standard License."> <paragraph num="A."> <text>A micro licensee in good standing may apply to the Administration to convert to a standard license once it has been operational for at least 24 months, in a manner determined by the Administration.</text> </paragraph> <paragraph num="B."> <text>The Administration may deny the micro licensee for conversion to a standard license if the micro licensee:</text> <paragraph num="(1)"> <text>Has been operational for 24 or fewer months;</text> </paragraph> <paragraph num="(2)"> <text>Has been found to violate any operational restrictions in Regulation .02B of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Would be in violation of the ownership or control restrictions in COMAR 14.17.16;</text> </paragraph> <paragraph num="(4)"> <text>Does not provide adequate notice to the Administration; or</text> </paragraph> <paragraph num="(5)"> <text>For any other good cause determined by the Administration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A micro license converted under §§A and B of this regulation to a standard license shall be valid through the date of the initial micro license.</text> </paragraph> <paragraph num="D."> <text>Prior to the conversion of micro license to a standard license the licensee shall pay in full a pro-rated license fee.</text> </paragraph> <paragraph num="E."> <text>The pro-rated license fee required under §D of this regulation shall be calculated by the Administration by:</text> <paragraph num="(1)"> <text>Subtracting any previous license fee paid for the valid micro license that is being converted into the standard license from the standard fee under COMAR 14.17.21; and</text> </paragraph> <paragraph num="(2)"> <text>Pro-rating the remaining license fee total by months remaining on the initial 5-year term of the micro license.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A micro license converted under this regulation:</text> <paragraph num="(1)"> <text>Shall be forfeited by the licensee as a condition of conversion and the Administration may award the forfeited license in a subsequent licensing round;</text> </paragraph> <paragraph num="(2)"> <text>Shall only be for the corresponding standard license type; and</text> </paragraph> <paragraph num="(3)"> <text>May not be converted to an incubator space license under COMAR 14.17.06.09 or on-site consumption license under COMAR 14.17.06.10.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Administration shall reserve enough standard licenses, by license type, to allow a reasonable number of micro licenses to convert to a standard license.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Licensee Co-Location."> <text>Licensee co-location requirements and procedures are as established in COMAR 14.17.06.11.</text> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202—203, 36-401, and 36-503, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted effective July 22, 2024 (51:14 Md. R.678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> </annotations> </chapter> <chapter num="08" heading="Laboratory Registration and Operations"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Accreditation body” means a nonprofit, impartial organization that requires conformance to 17025 ISO/IEC requirements and is a signatory to the international laboratory accreditation cooperation (ILAC) mutual recognition arrangement for testing.</text> </paragraph> <paragraph num="(2)"> <text>“Cannabis industry” means all cannabis registrants, licensees, and their agents in Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Independent Testing Laboratory Registration."> <paragraph num="A."> <text>An independent testing laboratory shall register with the Administration.</text> </paragraph> <paragraph num="B."> <text>To register, an independent laboratory shall:</text> <paragraph num="(1)"> <text>Submit a completed independent laboratory registration form;</text> </paragraph> <paragraph num="(2)"> <text>Pay the registration fee specified in COMAR 14.17.21;</text> </paragraph> <paragraph num="(3)"> <text>Submit a copy of the certificate of accreditation accompanied by the scope of accreditation; and</text> </paragraph> <paragraph num="(4)"> <text>Submit the name, address, date of birth, and Social Security Number or Individual Taxpayer Identification Number of each independent testing laboratory employee and a copy of the application form completed by each independent testing laboratory employee.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may issue a provisional registration to an independent testing laboratory that has not yet been issued a certificate of accreditation in Maryland if the independent testing laboratory submits:</text> <paragraph num="(1)"> <text>A copy of the contract with the accreditation body with which it is applying to become accredited and a copy of the proposed scope of the accreditation;</text> </paragraph> <paragraph num="(2)"> <text>Evidence the independent testing laboratory has been accredited by the accreditation body in another jurisdiction; and</text> </paragraph> <paragraph num="(3)"> <text>All other required components listed in §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Once it has obtained a certificate of accreditation, a provisionally registered independent testing laboratory shall apply to be registered, subject to the following terms:</text> <paragraph num="(1)"> <text>The term of the registration may not exceed the term of the provisional registration; and</text> </paragraph> <paragraph num="(2)"> <text>No additional registration fee need be paid for that term.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Standards of Care."> <paragraph num="A."> <text>The independent testing laboratory shall:</text> <paragraph num="(1)"> <text>Follow the methodologies, ranges and parameters which are contained in the scope of the accreditation for testing cannabis or cannabis products;</text> </paragraph> <paragraph num="(2)"> <text>Establish standard operating procedures and method validation or verification, if applicable, for testing that are approved by the accrediting body and the Administration;</text> </paragraph> <paragraph num="(3)"> <text>Establish and follow written procedures for verifying the experience and education of laboratory employees;</text> </paragraph> <paragraph num="(4)"> <text>Before an independent testing laboratory employee works or volunteers for the independent testing laboratory, register the employee with the Administration;</text> </paragraph> <paragraph num="(5)"> <text>Upon termination of the independent testing laboratory’s association with a registered independent testing laboratory employee:</text> <paragraph num="(a)"> <text>Obtain any keys or other entry devices from the terminated independent testing laboratory employee;</text> </paragraph> <paragraph num="(b)"> <text>Ensure the terminated independent laboratory employee can no longer gain access to the laboratory premises; and</text> </paragraph> <paragraph num="(c)"> <text>Within 1 business day of the termination of independent laboratory employee, notify the Administration of the termination;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Notify the Administration within 1 business day after the independent testing laboratory obtains notice of any kind that its accreditation has been denied, suspended, or revoked;</text> </paragraph> <paragraph num="(7)"> <text>Implement the testing requirements established in Regulation .05 of this chapter and identified in the Administration’s Technical Authority for cannabis testing;</text> </paragraph> <paragraph num="(8)"> <text>Maintain a continuous or motion-activated video surveillance recording system that:</text> <paragraph num="(a)"> <text>Records all activity high quality and high resolution images capable of clearly revealing facial detail;</text> </paragraph> <paragraph num="(b)"> <text>Operates 24 hours a day, 365 days a year without interruption;</text> </paragraph> <paragraph num="(c)"> <text>Provides a date and time stamp for every recorded frame; and</text> </paragraph> <paragraph num="(d)"> <text>Captures activity at each area where cannabis is tested, disposed of, or stored;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Store and retain all recordings of security video surveillance in a format that can be easily accessed for investigational purposes for a minimum of 90 calendar days;</text> </paragraph> <paragraph num="(10)"> <text>Make any security video surveillance recording available to the Administration or law enforcement agency for just cause as requested within 48 hours;</text> </paragraph> <paragraph num="(11)"> <text>Maintain a log of all visitors to the premises for 2 years; and</text> </paragraph> <paragraph num="(12)"> <text>Conspicuously display a copy of its laboratory registration at the registered premises.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Violation.</text> <paragraph num="(1)"> <text>Failure to provide the Administration with any video surveillance recording within 48 hours of a request from the Administration is a violation of COMAR 14.17.14.04.</text> </paragraph> <paragraph num="(2)"> <text>Each day of recording within the minimum timeframe stated in §A(9) of this regulation that a licensee fails to provide to the Administration constitutes a separate violation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Term and Renewal."> <paragraph num="A."> <text>The registration is valid for 2 years.</text> </paragraph> <paragraph num="B."> <text>An independent testing laboratory may renew its registration by submitting to the Administration:</text> <paragraph num="(1)"> <text>A registration renewal form completed in the manner specified by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Payment of the registration fee specified in COMAR 14.17.21; and</text> </paragraph> <paragraph num="(3)"> <text>Submission of copies of the most recent:</text> <paragraph num="(a)"> <text>Assessment from the accreditation body; and</text> </paragraph> <paragraph num="(b)"> <text>Proficiency testing results obtained by the independent testing laboratory.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Independent Testing Laboratory Responsibilities."> <paragraph num="A."> <text>In this regulation, “supporting data” means charts, graphs, spectra, or other information resulting from the testing of cannabis or cannabis products.</text> </paragraph> <paragraph num="B."> <text>An independent testing laboratory shall:</text> <paragraph num="(1)"> <text>Establish and follow statistically valid sampling methods to obtain samples from licensees;</text> </paragraph> <paragraph num="(2)"> <text>Adopt standard operating procedures that are approved by the Administration to test cannabis, cannabis concentrate, and any other product that contains more than 0.5 milligrams of THC per serving and 2.5 milligrams of THC per package;</text> </paragraph> <paragraph num="(3)"> <text>Perform sampling, testing, and analysis of cannabis and cannabis products in accordance with the Administration’s Technical Authority;</text> </paragraph> <paragraph num="(4)"> <text>In the event a test result is outside action limits:</text> <paragraph num="(a)"> <text>Follow standard operating procedure to confirm or refute the original result;</text> </paragraph> <paragraph num="(b)"> <text>Notify the Administration of the failed test result via reporting in the seed-to-sale tracking system within 24 hours of the determination; and</text> </paragraph> <paragraph num="(c)"> <text>Follow testing protocols established in the MCA’s Technical Authority.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Issue to the licensee a certificate of analysis for each batch or lot, with supporting data upon request, to report concentrations of compounds, presences of contaminants, and whether the batch or lot is within action limits for certain characteristics, as required by the Technical Authority; and</text> </paragraph> <paragraph num="(6)"> <text>After the analysis is complete, weigh, document, and destroy all green waste in accordance with a standard operating procedure approved by the Administration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An independent testing laboratory may only handle, test, or analyze cannabis or cannabis products if it:</text> <paragraph num="(1)"> <text>Has been registered by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Is independent from any entity licensed under Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, to grow, process, or dispense cannabis;</text> </paragraph> <paragraph num="(3)"> <text>Is accredited by an accreditation body or has a provisional registration from the Administration;</text> </paragraph> <paragraph num="(4)"> <text>Has established standard operating procedures that provide for adequate chain of custody controls for samples transferred to the independent testing laboratory for testing, which are approved by the Administration; and</text> </paragraph> <paragraph num="(5)"> <text>Enters timely and accurate data into the seed-to-sale tracking system that identifies and tracks samples.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon request, in a format determined by the Administration, independent testing laboratories shall:</text> <paragraph num="(1)"> <text>Provide materials to the State Cannabis Testing Laboratory to conduct the activities under Regulation .07B of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>As part of a licensee inspection, analyze samples and provide a written report to the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Transportation of Products Containing Cannabis."> <paragraph num="A."> <text>A registered independent testing laboratory may transport samples of cannabis and products containing cannabis from the premises of a licensed grower, processor, or dispensary to the independent testing laboratory.</text> </paragraph> <paragraph num="B."> <text>A registered independent testing laboratory shall transport samples of cannabis and products containing cannabis:</text> <paragraph num="(1)"> <text>With oversight by at least one independent testing laboratory employee registered with the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Using a vehicle that meets the criteria specified in COMAR 14.17.09.03.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="State Cannabis Testing Laboratory."> <paragraph num="A."> <text>The Administration shall operate a State Cannabis Testing Laboratory under Alcoholic Beverages and Cannabis Article, §36-204, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Administration shall operate a State Cannabis Testing Laboratory to:</text> <paragraph num="(1)"> <text>Prepare, conduct, and analyze proficiency testing events for independent testing laboratories registered under this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Develop cannabis testing methodologies;</text> </paragraph> <paragraph num="(3)"> <text>Conduct compliance testing on cannabis samples;</text> </paragraph> <paragraph num="(4)"> <text>Establish and verify standard operating procedures for independent testing laboratories;</text> </paragraph> <paragraph num="(5)"> <text>Develop and facilitate quality assurance and compliance controls for micro growers and micro processors;</text> </paragraph> <paragraph num="(6)"> <text>Remediate problems with registered independent testing laboratories and recommend Administration sanctions; and</text> </paragraph> <paragraph num="(7)"> <text>Test products for adverse event reporting, research, and other purposes deemed necessary by the Administration, including:</text> <paragraph num="(a)"> <text>Licensed cannabis products produced and sold in accordance with this subtitle;</text> </paragraph> <paragraph num="(b)"> <text>Unlicensed cannabis products produced or sold in violation of this subtitle;</text> </paragraph> <paragraph num="(c)"> <text>Hemp derived products; and</text> </paragraph> <paragraph num="(d)"> <text>Any other products required to be tested for the public health or public safety of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Pilot Programs.</text> <paragraph num="(1)"> <text>The State Cannabis Testing Laboratory may establish pilot programs for the purposes of:</text> <paragraph num="(a)"> <text>Improving public health and safety;</text> </paragraph> <paragraph num="(b)"> <text>Reviewing existing regulatory standards; or</text> </paragraph> <paragraph num="(c)"> <text>Developing new regulatory standards.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>As part of a pilot program established under this section, the Administration may waive, reduce, or amend existing testing standards.</text> </paragraph> <paragraph num="(3)"> <text>Participation in a pilot program will be determined by the Administration, in a manner prescribed by the Administration.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202—204, and 36-408, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="09" heading="Other Cannabis Businesses"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to any registrant who conducts transportation, disposal, or security services for any cannabis licensee in Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Cannabis Registrants."> <paragraph num="A."> <text>A registrant shall be registered with the Administration prior to providing any laboratory, transportation, disposal, or security services for any cannabis licensee in Maryland.</text> </paragraph> <paragraph num="B."> <text>To register, a cannabis business shall submit:</text> <paragraph num="(1)"> <text>A completed registration form in the manner specified by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>The name of each agent for the cannabis business;</text> </paragraph> <paragraph num="(3)"> <text>The registration fee specified in COMAR 14.17.21;</text> </paragraph> <paragraph num="(4)"> <text>Any secure cannabis transport vehicle for inspection by the Administration; and</text> </paragraph> <paragraph num="(5)"> <text>Proof that fingerprints have been submitted to CJIS and the FBI for every cannabis agent.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may approve a cannabis registration if the business:</text> <paragraph num="(1)"> <text>Submits a complete and accurate registration form;</text> </paragraph> <paragraph num="(2)"> <text>Is authorized to do business in Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>Pays the required fee specified in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may deny a registration or renewal for any good cause as determined by the Administration.</text> </paragraph> <paragraph num="E."> <text>The Administration may collect demographic information from applicants at the time of registration.</text> </paragraph> <paragraph num="F."> <text>The Administration may deny or revoke a cannabis business registration if any agent or individual with ownership interest in the business is convicted of or pleads nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside.</text> </paragraph> <paragraph num="G."> <text>The registration is valid for 2 years.</text> </paragraph> <paragraph num="H."> <text>The business may renew its registration by submitting to the Administration:</text> <paragraph num="(1)"> <text>A registration renewal form completed in the manner specified by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>The registration fee established in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A licensee may only contract with Administration-registered cannabis businesses for the provisions of services under this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Transport Operations."> <paragraph num="A."> <text>This regulation governs the transport of cannabis or cannabis products by a licensed grower, processor, dispensary, or a registered transporter business between the premises of licensees, independent testing laboratories, the State Cannabis Testing Laboratory, and for green waste disposal.</text> </paragraph> <paragraph num="B."> <text>A licensee or registrant shall ensure:</text> <paragraph num="(1)"> <text>Agents have on their person their current, active driver’s license;</text> </paragraph> <paragraph num="(2)"> <text>Agents have on their person Administration-issued proof of:</text> <paragraph num="(a)"> <text>The licensee’s or registrant’s current licensure or registration; and</text> </paragraph> <paragraph num="(b)"> <text>Their own registration;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>While in transit, agents do not wear any clothing or symbols that may indicate ownership or possession of cannabis;</text> </paragraph> <paragraph num="(4)"> <text>Each vehicle used to transport cannabis is operated by at least one registered agent; and</text> </paragraph> <paragraph num="(5)"> <text>All cannabis is transported in one or more locked and secure storage containers which may not be accessible while in transit.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A vehicle used to transport cannabis:</text> <paragraph num="(1)"> <text>Shall have and display current vehicle registration;</text> </paragraph> <paragraph num="(2)"> <text>Shall be insured as required by law;</text> </paragraph> <paragraph num="(3)"> <text>Shall be equipped with locked and secure storage containers anchored to the inside of the vehicle;</text> </paragraph> <paragraph num="(4)"> <text>Shall conceal storage containers so they are not visible or identifiable from outside of the vehicle; and</text> </paragraph> <paragraph num="(5)"> <text>May not display any sign or illustration related to cannabis or a licensee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The requirements in §C(2) and (3) do not apply to a registrant that only disposes of green waste.</text> </paragraph> <paragraph num="E."> <text>Electronic Manifest.</text> <paragraph num="(1)"> <text>A shipping licensee shall create an electronic manifest to record the chain of custody for each cannabis shipment.</text> </paragraph> <paragraph num="(2)"> <text>The electronic manifest shall record:</text> <paragraph num="(a)"> <text>The name and address of the shipping licensee;</text> </paragraph> <paragraph num="(b)"> <text>The shipping licensee’s shipment identification number;</text> </paragraph> <paragraph num="(c)"> <text>The weight and description of each individual package that is part of the shipment, and the total number of individual packages;</text> </paragraph> <paragraph num="(d)"> <text>The name of the registered grower agent, processor agent, or dispensary agent that prepared the shipment;</text> </paragraph> <paragraph num="(e)"> <text>The name and address of the receiving licensee or other receiving party if applicable; and</text> </paragraph> <paragraph num="(f)"> <text>Any handling or storage instructions.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The electronic manifest shall contain the following entries as points in the chain of custody:</text> <paragraph num="(a)"> <text>An entry by a registered grower agent, registered processor agent, or registered dispensary agent who has prepared the shipment, including the date and time of preparation;</text> </paragraph> <paragraph num="(b)"> <text>An entry by a registered grower agent, processor agent, or dispensary agent of the date and time of the placement of the shipment into the secure cannabis transport vehicle;</text> </paragraph> <paragraph num="(c)"> <text>An entry by the receiving licensee’s agent receiving the shipment, including the date and time of the acceptance; and</text> </paragraph> <paragraph num="(d)"> <text>If any other person had custody or control of the shipment, that person’s identity, the circumstances, duration, and disposition.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Delivering and Receiving Cannabis Shipments.</text> <paragraph num="(1)"> <text>Upon arrival of a secure cannabis transport vehicle, the shipping licensee agent who delivers the shipment shall notify an appropriate receiving licensee agent to continue the chain of custody in the electronic manifest of the shipment of cannabis or cannabis products.</text> </paragraph> <paragraph num="(2)"> <text>An agent of the receiving licensee shall:</text> <paragraph num="(a)"> <text>Log into the seed-to-sale tracking system;</text> </paragraph> <paragraph num="(b)"> <text>Take custody of a shipment of products containing cannabis;</text> </paragraph> <paragraph num="(c)"> <text>Confirm that:</text> <paragraph num="(i)"> <text>The agent who delivers the shipment is carrying appropriate identification;</text> </paragraph> <paragraph num="(ii)"> <text>The packaging is secure, undamaged, and appropriately labeled;</text> </paragraph> <paragraph num="(iii)"> <text>Each package in the shipment is labeled as described in the electronic manifest; and</text> </paragraph> <paragraph num="(iv)"> <text>The contents of the shipment are as described in the electronic manifest;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Record the confirmations in the electronic manifest;</text> </paragraph> <paragraph num="(e)"> <text>Obtain in the electronic manifest the signature or identification number of the agent who delivers the shipment;</text> </paragraph> <paragraph num="(f)"> <text>Record in the electronic manifest the date and time the receiving licensee agent takes custody of the shipment;</text> </paragraph> <paragraph num="(g)"> <text>Enter the products containing cannabis into the seed-to-sale tracking system;</text> </paragraph> <paragraph num="(h)"> <text>Segregate the items in the shipment from the inventory until the item can be inspected;</text> </paragraph> <paragraph num="(i)"> <text>Inspect each item to ensure that the packaging of each item is undamaged, accurate, and complete; and</text> </paragraph> <paragraph num="(j)"> <text>Upon determining the item passes inspection, release the item into the stock.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The agent who delivers the shipment shall provide a copy of the electronic manifest for the shipment to the receiving licensee.</text> </paragraph> <paragraph num="(4)"> <text>The agent who delivers the shipment shall provide the completed electronic manifest to the shipping licensee.</text> </paragraph> <paragraph num="(5)"> <text>The shipping licensee shall retain the electronic manifest for the shipment for 2 years.</text> </paragraph> <paragraph num="(6)"> <text>Discrepancy in the Shipment.</text> <paragraph num="(a)"> <text>A discrepancy between the electronic manifest and the shipment, identified by an agent who delivers the shipment or a receiving agent, shall be reported by each agent to the agent’s supervisor.</text> </paragraph> <paragraph num="(b)"> <text>If a discrepancy can be immediately rectified, the accepting processor supervisor shall record the rectification in the electronic manifest.</text> </paragraph> <paragraph num="(c)"> <text>A discrepancy that cannot be immediately rectified shall be reported to the Administration by the receiving licensee within 24 hours of the observation of the discrepancy and the shipping licensee shall initiate an investigation of the discrepancy.</text> </paragraph> <paragraph num="(d)"> <text>The shipping licensee shall submit to the Administration:</text> <paragraph num="(i)"> <text>Within 7 calendar days of the observation of the discrepancy, a preliminary report of an investigation of a discrepancy; and</text> </paragraph> <paragraph num="(ii)"> <text>Within 30 calendar days, a final report of the investigation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Licensees and registrants transporting or receiving edible cannabis products shall comply with COMAR 14.17.11.14.</text> </paragraph> <paragraph num="H."> <text>A registered transporter business may not deliver cannabis to qualifying patients, registered caregivers, or adult-use consumers.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Incubator Spaces."> <paragraph num="A."> <text>An incubator space may provide one or more of the following:</text> <paragraph num="(1)"> <text>Secure storage of cannabis or cannabis products for licensed micro dispensaries;</text> </paragraph> <paragraph num="(2)"> <text>Commercial kitchen space for the processing and production of cannabis products by licensed micro processors; or</text> </paragraph> <paragraph num="(3)"> <text>Space for the cultivation of cannabis by licensed micro growers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An incubator space shall comply with the requirements of COMAR 14.17.10, 14.17.11, and 14.17.12 for the:</text> <paragraph num="(1)"> <text>Security of the premises;</text> </paragraph> <paragraph num="(2)"> <text>Sanitation of any cannabis or cannabis product produced at the incubator space;</text> </paragraph> <paragraph num="(3)"> <text>Safety of any cannabis cultivated at the incubator space, including the use of pesticides;</text> </paragraph> <paragraph num="(4)"> <text>Storage of cannabis and cannabis products; and</text> </paragraph> <paragraph num="(5)"> <text>Use of the seed-to-sale tracking system.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The incubator space licensee shall make a good faith effort to:</text> <paragraph num="(1)"> <text>Secure any cannabis, cannabis products, inventory, equipment, or other materials on the licensed premise; and</text> </paragraph> <paragraph num="(2)"> <text>Prevent theft or diversion of any cannabis, cannabis products, inventory, equipment, or other materials by license holders, agents, or members of the public.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The incubator space licensee holder may assess a fair market rent for the use or storage of the facility.</text> </paragraph> <paragraph num="E."> <text>The incubator space licensee may not accept or receive any equity stake, ownership share, or control of a micro license facility as a condition of rent or use of the space.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, 36-401, and 36-409, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="10" heading="Cannabis Grower Operations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>Unless otherwise specified this chapter applies to a business licensed to grow cannabis under COMAR 14.17.06.06 and 14.17.07.05.</text> </paragraph> <paragraph num="B."> <text>This chapter applies to all cannabis grown in Maryland intended for either adult-use or medical-use sales.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Cannabis Grower Premises."> <paragraph num="A."> <text>In this regulation, the following terms have the meanings indicated.</text> <paragraph num="(1)"> <text>“Indoor cultivation” means producing cannabis plants in a permanent structure that provides control of environmental conditions using artificial heating, air conditioning, or other climate control.</text> </paragraph> <paragraph num="(2)"> <text>“Outdoor cultivation” means producing flowering cannabis plants in an area that is directly or indirectly exposed to outdoor elements.</text> </paragraph> <paragraph num="(3)"> <text>“Permanent structure” means a building, shipping container, greenhouse, or other structure that is used for cultivation for 180 days or more in a one year period.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A grower premises shall:</text> <paragraph num="(1)"> <text>Be located within Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Conform to local zoning and planning requirements; and</text> </paragraph> <paragraph num="(3)"> <text>Conspicuously display an Administration-issued grower license at the licensed premises.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Outdoor cultivation premises are subject to the following, additional provisions:</text> <paragraph num="(1)"> <text>A grower premises for outdoor cultivation of cannabis shall be situated to maintain the greatest achievable level of privacy and security.</text> </paragraph> <paragraph num="(2)"> <text>An area of cultivation shall be securely surrounded by fencing and gates constructed to prevent unauthorized entry.</text> </paragraph> <paragraph num="(3)"> <text>Fencing and gates shall be equipped with a security alarm system that:</text> <paragraph num="(a)"> <text>Covers the entire perimeter;</text> </paragraph> <paragraph num="(b)"> <text>Is continuously monitored; and</text> </paragraph> <paragraph num="(c)"> <text>Is capable of detecting power loss.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The premises shall be protected by a video surveillance recording system to ensure:</text> <paragraph num="(a)"> <text>Surveillance of the entire perimeter of the area of cultivation;</text> </paragraph> <paragraph num="(b)"> <text>Surveillance over all portions of the security fence and all gates; and</text> </paragraph> <paragraph num="(c)"> <text>Adherence to the video surveillance requirements of this chapter.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A grower may modify its security lighting to protect light-dark cycles for proper cultivation, provided the security lighting complies with §§C(4) and F of this regulation.</text> </paragraph> <paragraph num="(6)"> <text>An outdoor cultivation area may not:</text> <paragraph num="(a)"> <text>Be enclosed by a permanent structure; or</text> </paragraph> <paragraph num="(b)"> <text>Employ any artificial heating, air conditioning, or other climate control.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>In determining whether a cultivation premises qualifies as outdoor, the Administration may consider the number of cultivation cycles that can be produced at the facility.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A grower may not make modifications or renovations:</text> <paragraph num="(1)"> <text>Without prior approval by the Maryland Cannabis Administration in a manner prescribed by the Administration; or</text> </paragraph> <paragraph num="(2)"> <text>That increase a standard grower’s capacity to greater than the canopy limits prescribed in Alcoholic Beverages and Cannabis Article, §36-402(b), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A grower facility premises shall be constructed to prevent unauthorized entry.</text> </paragraph> <paragraph num="F."> <text>Security Lighting. The grower shall design and install lighting fixtures to ensure proper surveillance of the perimeter of the cultivation area.</text> </paragraph> <paragraph num="G."> <text>Security Alarm Systems.</text> <paragraph num="(1)"> <text>A grower shall maintain a security alarm system that covers all:</text> <paragraph num="(a)"> <text>Perimeter entry points and portals at all premises;</text> </paragraph> <paragraph num="(b)"> <text>Rooms that hold cannabis;</text> </paragraph> <paragraph num="(c)"> <text>Locations where records are stored on-site; and</text> </paragraph> <paragraph num="(d)"> <text>Locations where records are stored off-site.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A security system shall:</text> <paragraph num="(a)"> <text>Be continuously monitored;</text> </paragraph> <paragraph num="(b)"> <text>Be capable of detecting smoke and fire;</text> </paragraph> <paragraph num="(c)"> <text>Be capable of detecting power loss;</text> </paragraph> <paragraph num="(d)"> <text>Include panic alarm devices mounted at convenient, readily accessible locations throughout the licensed premises;</text> </paragraph> <paragraph num="(e)"> <text>Remain operational until a licensed premises no longer has any cannabis, seeds, or cuttings on the premises; and</text> </paragraph> <paragraph num="(f)"> <text>Be equipped with auxiliary power sufficient to maintain operation for at least 48 hours.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Video Surveillance Requirements.</text> <paragraph num="(1)"> <text>A grower shall maintain a motion-activated video surveillance recording system at all premises that:</text> <paragraph num="(a)"> <text>Records all activity in images of high quality and high resolution capable of clearly revealing facial detail;</text> </paragraph> <paragraph num="(b)"> <text>Operates 24-hours a day, 365 days a year without interruption; and</text> </paragraph> <paragraph num="(c)"> <text>Provides a date and time stamp for every recorded frame.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A grower shall post appropriate notices advising visitors of the video surveillance.</text> </paragraph> <paragraph num="(3)"> <text>A surveillance camera shall be located and operated to capture each exit from the premises.</text> </paragraph> <paragraph num="(4)"> <text>A surveillance camera shall capture activity at each:</text> <paragraph num="(a)"> <text>Entrance to an area where cannabis is grown, tested, cured, manufactured, processed, or stored; and</text> </paragraph> <paragraph num="(b)"> <text>Area where cannabis is trimmed, packaged, cured, or stored.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The storage of all recordings of security video surveillance shall be:</text> <paragraph num="(a)"> <text>Access-limited;</text> </paragraph> <paragraph num="(b)"> <text>Secured by a security alarm system that is independent of the main premises security alarm system;</text> </paragraph> <paragraph num="(c)"> <text>In a format that can be easily accessed for investigational purposes; and</text> </paragraph> <paragraph num="(d)"> <text>Retained for a minimum of 90 calendar days.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Any recording of security video surveillance shall be made available to the Administration or law enforcement agency for just cause as requested within 48 hours.</text> </paragraph> <paragraph num="(7)"> <text>Violation.</text> <paragraph num="(a)"> <text>Failure to provide the Administration with any recording of video surveillance within 48 hours of a request from the Administration is a violation of COMAR 14.17.14.04.</text> </paragraph> <paragraph num="(b)"> <text>Each day of recording within the timeframe in [§G(5)(d)] §H(5)(d) of this regulation that a grower fails to provide to the Administration constitutes a separate violation..</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Handwashing Sinks. A grower shall:</text> <paragraph num="(1)"> <text>Ensure that agents engaged in creating usable cannabis products have easy access to a handwashing sink that provides warm water of sufficient volume under pressure for effective handwashing procedures; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain at least one handwashing sink for the following number of agents who are engaged in creating usable cannabis products while on duty at the same time:</text> <paragraph num="(a)"> <text>Every 15 agents; and</text> </paragraph> <paragraph num="(b)"> <text>Any fraction of 15 agents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Micro growers may not operate a facility greater than the limits established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(i), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Cannabis Grower Controls."> <paragraph num="A."> <text>Receipt of Material.</text> <paragraph num="(1)"> <text>A grower shall quarantine material that is received to produce cannabis.</text> </paragraph> <paragraph num="(2)"> <text>A grower shall inspect material for defects, contamination, and compliance with a grower’s specifications.</text> </paragraph> <paragraph num="(3)"> <text>Material may not be released from quarantine by a grower until the material:</text> <paragraph num="(a)"> <text>Passes inspection; and</text> </paragraph> <paragraph num="(b)"> <text>Is determined to be acceptable for use as intended.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Growing Cannabis.</text> <paragraph num="(1)"> <text>Horticultural Controls.</text> <paragraph num="(a)"> <text>Water. The grower shall keep a record of water quality testing on-site and make it available for inspection.</text> </paragraph> <paragraph num="(b)"> <text>Fertilizer. As part of the standard operating procedure, a grower shall:</text> <paragraph num="(i)"> <text>Adopt a nutrient management plan prepared by a certified nutrient management consultant;</text> </paragraph> <paragraph num="(ii)"> <text>Use fertilizer or hydroponic solution of a type, formulation, and at a rate, to support healthy growth of cannabis; and</text> </paragraph> <paragraph num="(iii)"> <text>Maintain records of the type and amounts of fertilizer and any growth additives used.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Unless the cannabis is field grown, a grower shall install, as part of the standard operating procedure, a system to monitor, record, and regulate:</text> <paragraph num="(i)"> <text>Temperature;</text> </paragraph> <paragraph num="(ii)"> <text>Humidity;</text> </paragraph> <paragraph num="(iii)"> <text>Ventilation; and</text> </paragraph> <paragraph num="(iv)"> <text>Lighting, if used.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Unless the cannabis is field grown, a grower shall seal or screen the premises ventilation system with a mesh or filtering system fine enough to exclude most plant pests.</text> </paragraph> <paragraph num="(e)"> <text>Pest Monitoring. A grower shall use integrated pest management practices and techniques to identify and manage plant pathogen and pest problems, including:</text> <paragraph num="(i)"> <text>A door control system sufficient to prevent pest entry;</text> </paragraph> <paragraph num="(ii)"> <text>Regular visual inspection of plants and growing areas for the presence of pests;</text> </paragraph> <paragraph num="(iii)"> <text>The use of sticky cards in growing areas, when applicable; and</text> </paragraph> <paragraph num="(iv)"> <text>Identification and recording of all pests or pathogens detected and the measures taken for control.</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Pest Control. Pesticide applicators and applications shall follow State and federal pesticide requirements for any pesticide applied.</text> </paragraph> <paragraph num="(g)"> <text>Sanitation. Sanitation shall comply with the grower’s standard operating procedures.</text> </paragraph> <paragraph num="(h)"> <text>Green Waste. A grower shall weigh, document, and destroy all green waste in accordance with the standard operating procedures.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Equipment. A grower shall:</text> <paragraph num="(a)"> <text>Maintain equipment that comes in contact with cannabis to prevent contamination;</text> </paragraph> <paragraph num="(b)"> <text>Maintain cleaning and equipment maintenance logs;</text> </paragraph> <paragraph num="(c)"> <text>Ensure all scales are National Type Evaluation Program-approved;</text> </paragraph> <paragraph num="(d)"> <text>Have any scale, balance, or other measurement device, and any automatic, mechanical, or electronic equipment:</text> <paragraph num="(i)"> <text>Annually calibrated by a calibration laboratory accredited to International Organization for Standardization (ISO) standard 17025 ISO/IEC by an accreditation body that is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement; and</text> </paragraph> <paragraph num="(ii)"> <text>Checked at least once per month to ensure accuracy; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Make records and certifications required under §B(2)(c) and (d) of this regulation available to the Administration available upon request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Inventory Controls.</text> <paragraph num="(1)"> <text>A grower shall enter timely and accurate data into the Administration’s designated seed-to-sale tracking system to track the grower’s stock of cannabis from the time the cannabis is propagated from seed or cutting to the time it is delivered to a:</text> <paragraph num="(a)"> <text>Licensed processor; or</text> </paragraph> <paragraph num="(b)"> <text>Licensed dispensary.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Upon receipt of raw material for cultivation, a grower shall record in the seed-to-sale tracking system:</text> <paragraph num="(a)"> <text>The date delivered; and</text> </paragraph> <paragraph num="(b)"> <text>The number of cuttings or seeds delivered or the weight of the seeds for each variety in the shipment.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Requirements for Receipt of Material. A grower:</text> <paragraph num="(a)"> <text>Shall quarantine material that is received to be used to produce cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Shall inspect material for defects, contamination, and compliance with a grower’s specifications; and</text> </paragraph> <paragraph num="(c)"> <text>May not release material from quarantine until it:</text> <paragraph num="(i)"> <text>Passes inspection; and</text> </paragraph> <paragraph num="(ii)"> <text>Is determined acceptable for use as intended.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Plant Tagging and Entry into Seed-to-Sale Tracking System.</text> <paragraph num="(a)"> <text>For each plant, as soon as practical, a grower shall:</text> <paragraph num="(i)"> <text>Create a unique identifier for each plant;</text> </paragraph> <paragraph num="(ii)"> <text>Assign each plant to a batch;</text> </paragraph> <paragraph num="(iii)"> <text>Enter information regarding the plant into the seed-to-sale tracking system;</text> </paragraph> <paragraph num="(iv)"> <text>Create a tag with the unique identifier and batch number; and</text> </paragraph> <paragraph num="(v)"> <text>Securely attach the tag to a plant container or plant.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A tag shall be:</text> <paragraph num="(i)"> <text>Indelible and tamper-evident; and</text> </paragraph> <paragraph num="(ii)"> <text>Made of a material that resists variation in temperature and moisture.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Control of Harvested Cannabis. A grower shall:</text> <paragraph num="(a)"> <text>Upon completion of curing or drying of each batch, weigh cannabis to update the seed-to-sale tracking system for the batch; and</text> </paragraph> <paragraph num="(b)"> <text>At least monthly, conduct a physical inventory of the stock and compare the physical inventory of stock with the stock reflected in seed-to-sale tracking system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Quality Controls.</text> <paragraph num="(1)"> <text>Production and Process Controls.</text> <paragraph num="(a)"> <text>A grower shall cultivate each plant and produce each batch of cannabis in conformity with standard operating procedures.</text> </paragraph> <paragraph num="(b)"> <text>A grower shall record the cultivation process in accordance with standard operating procedures to ensure:</text> <paragraph num="(i)"> <text>Consistency of the batch with the variety; and</text> </paragraph> <paragraph num="(ii)"> <text>Accuracy of the day-to-day production.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A grower shall record any deviation defined as a material change from the standard operating procedure which would impact the quality of the batch in the log.</text> </paragraph> <paragraph num="(d)"> <text>A grower may not release any batch of cannabis if there was any deviation in production of the batch from the standard operating procedure unless:</text> <paragraph num="(i)"> <text>After independent testing of the batch in accordance with the criteria set forth in COMAR 14.17.08.05A, the grower determines, as a result of such testing, that the batch meets the specification for the variety; and</text> </paragraph> <paragraph num="(ii)"> <text>The determination is recorded.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>During the process of cultivation, a grower shall regularly inspect each plant to ensure proper growth and absence of pests and disease.</text> </paragraph> <paragraph num="(3)"> <text>A grower shall hold cannabis in secure, segregated storage until released for distribution.</text> </paragraph> <paragraph num="(4)"> <text>A grower shall use an Administration-registered independent testing laboratory to test each batch of cannabis and obtain a certificate of analysis.</text> </paragraph> <paragraph num="(5)"> <text>Batch Release Controls.</text> <paragraph num="(a)"> <text>If a grower, upon review of the certificate of analysis, determines that a batch meets the specification for the variety, the grower may:</text> <paragraph num="(i)"> <text>Assign an expiration date to the batch;</text> </paragraph> <paragraph num="(ii)"> <text>Release the batch for distribution; and</text> </paragraph> <paragraph num="(iii)"> <text>Revise the status of the batch in the seed-to-sale tracking system.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If a grower receives test results that fall outside action limits, the grower:</text> <paragraph num="(i)"> <text>May rework or reprocess the batch according to their standard operating procedure; and</text> </paragraph> <paragraph num="(ii)"> <text>If applicable, shall ensure the reworked or reprocessed batch is resampled and retested by the independent testing laboratory to confirm that all required specifications are met.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>If a batch is being transferred to a licensed processor for processing, the grower may release the batch for distribution without having a certificate of analysis or being sampled or tested by an independent testing laboratory.</text> </paragraph> <paragraph num="(d)"> <text>All cannabis products shall have a certificate of analysis, as specified in COMAR 14.17.08.05, prior to transfer to a licensed dispensary.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A grower shall retain every certificate of analysis.</text> </paragraph> <paragraph num="(7)"> <text>Stability Testing and Retention Sampling.</text> <paragraph num="(a)"> <text>A grower shall provide a sample from each released batch to an independent testing laboratory sufficient to perform stability testing at 6-month intervals to:</text> <paragraph num="(i)"> <text>Ensure product potency and purity; and</text> </paragraph> <paragraph num="(ii)"> <text>Provide support for expiration dating.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Retention samples retained from each released batch shall be:</text> <paragraph num="(i)"> <text>Tested by a registered independent testing laboratory other than the original certifying laboratory following an adverse event reported to the Administration;</text> </paragraph> <paragraph num="(ii)"> <text>Properly stored by the grower; and</text> </paragraph> <paragraph num="(iii)"> <text>Properly discarded 6 months after the expiration date of the batch.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Sanitation.</text> <paragraph num="(1)"> <text>Scales, surfaces, and other equipment use for the purposes of creating usable cannabis products shall be cleaned and sanitized:</text> <paragraph num="(a)"> <text>Between shifts;</text> </paragraph> <paragraph num="(b)"> <text>Between packaging, repackaging, or otherwise creation of usable cannabis products with different usable cannabis batches;</text> </paragraph> <paragraph num="(c)"> <text>Before beginning any packaging, repackaging, or other creation of usable cannabis products; and</text> </paragraph> <paragraph num="(d)"> <text>After the completion of any packaging or creation of usable cannabis products.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A grower shall maintain an accurate log of cleaning and sanitation required under §E(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Micro Grower Premises and Operations."> <text>A micro grower’s canopy may not exceed the restrictions established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(i), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Product Returned for Destruction and Disposal of Green Waste."> <paragraph num="A."> <text>A grower shall accept any product returned for destruction and record as green waste.</text> </paragraph> <paragraph num="B."> <text>A grower shall otherwise destroy any other product recorded as green waste with standard operating procedures.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Product Reservations and Trade Practices."> <paragraph num="A."> <text>Except as specified in §C of this regulation, a grower licensed under COMAR 14.17.06.06 shall make a good faith effort to transfer at least 10 percent of cannabis grown to:</text> <paragraph num="(1)"> <text>Licensed processors and dispensaries that have no common ownership interest or control with the grower; or</text> </paragraph> <paragraph num="(2)"> <text>Social equity licensees as defined in COMAR 14.17.01 .</text> </paragraph> </paragraph> <paragraph num="B."> <text>In fulfilling the requirement in §A of this regulation, a grower shall to the extent practicable:</text> <paragraph num="(1)"> <text>Prioritize social equity licensees; and</text> </paragraph> <paragraph num="(2)"> <text>Ensure that approximately equal amounts of cannabis are transferred to licensed processors and dispensaries.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A social equity grower licensee shall make a good faith effort to transfer at least 10 percent of cannabis grown to licensed processors and dispensaries that have no common ownership interest or control with the social equity grower licensee.</text> </paragraph> <paragraph num="D."> <text>The Administration may query the seed-to-sale tracking system to ensure compliance with this regulation.</text> </paragraph> <paragraph num="E."> <text>If a grower is found in violation of this regulation, the Administration may:</text> <paragraph num="(1)"> <text>Issue a fine; and</text> </paragraph> <paragraph num="(2)"> <text>Restrict, suspend, or revoke the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Visitor to the Premises."> <paragraph num="A."> <text>When a visitor is admitted to an area of the premises used for cannabis operations, an agent shall:</text> <paragraph num="(1)"> <text>Log the visitor in and out;</text> </paragraph> <paragraph num="(2)"> <text>Retain with the log a photocopy of the visitor’s government-issued identification;</text> </paragraph> <paragraph num="(3)"> <text>Continuously, physically supervise the visitor while they are on the premises; and</text> </paragraph> <paragraph num="(4)"> <text>Ensure that the visitor does not touch any cannabis.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An Administration investigator is not subject to the visitor requirements established in §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>The grower shall maintain a log of all visitors for 2 years.</text> </paragraph> <paragraph num="D."> <text>A firefighter, a rescue squad member, law enforcement officer, or emergency medical services personnel who is actively responding to a call for emergency services is not subject to §A(1)—(3) of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Discrepancy, Theft, and Diversion Reporting."> <paragraph num="A."> <text>Discrepancy Reporting.</text> <paragraph num="(1)"> <text>If a grower discerns a discrepancy between the inventory of stock and the seed-to-sale tracking system outside of normal weight loss due to moisture loss and handling, the grower shall:</text> <paragraph num="(a)"> <text>Commence an investigation of the discrepancy within 1 business day; and</text> </paragraph> <paragraph num="(b)"> <text>If the grower cannot resolve the discrepancy within 30 business days, report the discrepancy to MCA.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to report an unresolved discrepancy may be used as evidence of diversion.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Theft or Diversion. If the grower finds evidence of a theft or diversion, the grower shall report the theft or diversion to the Administration within 1 business day.</text> </paragraph> <paragraph num="C."> <text>Within 30 business days of discovering the theft, diversion, or unresolved discrepancy, the grower shall:</text> <paragraph num="(1)"> <text>Complete an investigation;</text> </paragraph> <paragraph num="(2)"> <text>Amend its standard operating procedures, if necessary; and</text> </paragraph> <paragraph num="(3)"> <text>Send a report of the investigation to the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Standard Operating Procedures."> <paragraph num="A."> <text>A grower shall establish written standard operating procedures in accordance with this subtitle to include all aspects of:</text> <paragraph num="(1)"> <text>Inventory control, including:</text> <paragraph num="(a)"> <text>Identifying and tracking the grower’s stock of cannabis in the seed-to-sale tracking system; and</text> </paragraph> <paragraph num="(b)"> <text>Monthly physical inventory;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Receiving material used to produce cannabis;</text> </paragraph> <paragraph num="(3)"> <text>Shipping and transporting cannabis or products containing cannabis;</text> </paragraph> <paragraph num="(4)"> <text>Sanitation, including:</text> <paragraph num="(a)"> <text>Storage of cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Maintaining the sanitation of equipment that comes into contact with cannabis; and</text> </paragraph> <paragraph num="(c)"> <text>Good hygiene practices and the wearing of protective clothing by agents;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Equipment maintenance and calibration;</text> </paragraph> <paragraph num="(6)"> <text>Handling, packaging, and labeling of cannabis products and byproducts;</text> </paragraph> <paragraph num="(7)"> <text>Rework or reprocessing;</text> </paragraph> <paragraph num="(8)"> <text>Green waste procedures;</text> </paragraph> <paragraph num="(9)"> <text>Non-green waste procedures;</text> </paragraph> <paragraph num="(10)"> <text>Security and visitor procedures, including theft and diversion prevention;</text> </paragraph> <paragraph num="(11)"> <text>Storage, handling, and disposal of recalled materials.</text> </paragraph> <paragraph num="(12)"> <text>Irrigation, propagation, cultivation, fertilization, including the use of growing media or hydroponic solution;</text> </paragraph> <paragraph num="(13)"> <text>Recording the cultivation process;</text> </paragraph> <paragraph num="(14)"> <text>Pest monitoring and management;</text> </paragraph> <paragraph num="(15)"> <text>Harvesting, drying, curing;</text> </paragraph> <paragraph num="(16)"> <text>Research and development procedures;</text> </paragraph> <paragraph num="(17)"> <text>Decontamination, including but not limited to:</text> <paragraph num="(a)"> <text>Preventing contamination;</text> </paragraph> <paragraph num="(b)"> <text>Investigating decontaminating after repeated tests falling outside action limits; and</text> </paragraph> <paragraph num="(c)"> <text>Remediation steps and resulting environmental analysis.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>If applicable, co-locating with another licensee, including:</text> <paragraph num="(a)"> <text>Sharing equipment and production materials; and</text> </paragraph> <paragraph num="(b)"> <text>Maintaining independent and unique security video surveillance control.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A grower’s standard operating procedures shall:</text> <paragraph num="(1)"> <text>Be available to each agent in a form the agent understands;</text> </paragraph> <paragraph num="(2)"> <text>Be available on-site for inspection by the Administration; and</text> </paragraph> <paragraph num="(3)"> <text>Accurately reflect the procedures used at the premises.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, 36-401, 36-402, and 36-410, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B, D amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07D adopted effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective May 26, 2025 (52:10 Md. R. 436); March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="11" heading="Cannabis Processor Operations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>Unless otherwise specified, this chapter applies to a business licensed to process cannabis under COMAR 14.17.06.07 and COMAR 14.17.07.06.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Cannabis Processor Premises."> <paragraph num="A."> <text>A processor premises shall:</text> <paragraph num="(1)"> <text>Be located within Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Conform to local zoning and planning requirements; and</text> </paragraph> <paragraph num="(3)"> <text>Conspicuously display a processor license at the licensed premises.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A processor may not make modifications or renovations to a processor premises without prior approval by the Administration in a manner prescribed by the Administration.</text> </paragraph> <paragraph num="C."> <text>A processor facility premises shall be constructed to prevent unauthorized entry.</text> </paragraph> <paragraph num="D."> <text>The processor shall design and install lighting fixtures to ensure proper surveillance.</text> </paragraph> <paragraph num="E."> <text>Security Alarm Systems.</text> <paragraph num="(1)"> <text>A processor shall maintain a security alarm system that covers all:</text> <paragraph num="(a)"> <text>Perimeter entry points and portals at all premises;</text> </paragraph> <paragraph num="(b)"> <text>Rooms that hold cannabis;</text> </paragraph> <paragraph num="(c)"> <text>Locations where records are stored on-site; and</text> </paragraph> <paragraph num="(d)"> <text>Locations where records are stored off-site.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A security system shall:</text> <paragraph num="(a)"> <text>Be continuously monitored;</text> </paragraph> <paragraph num="(b)"> <text>Be capable of detecting smoke and fire;</text> </paragraph> <paragraph num="(c)"> <text>Be capable of detecting power loss;</text> </paragraph> <paragraph num="(d)"> <text>Include panic alarm devices mounted at convenient, readily accessible locations throughout the licensed premises;</text> </paragraph> <paragraph num="(e)"> <text>Remain operational until a licensed premises no longer has any cannabis, seeds, or cuttings on the premises; and</text> </paragraph> <paragraph num="(f)"> <text>Be equipped with auxiliary power sufficient to maintain operation for at least 48 hours.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Video Surveillance Requirements.</text> <paragraph num="(1)"> <text>A processor shall maintain a motion-activated video surveillance recording system at all premises that:</text> <paragraph num="(a)"> <text>Records all activity in images of high quality and high resolution capable of clearly revealing facial detail;</text> </paragraph> <paragraph num="(b)"> <text>Operates 24-hours a day, 365 days a year without interruption; and</text> </paragraph> <paragraph num="(c)"> <text>Provides a date and time stamp for every recorded frame.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A processor shall post appropriate notices advising visitors of the video surveillance.</text> </paragraph> <paragraph num="(3)"> <text>A surveillance camera shall be located and operated to capture each exit from the premises.</text> </paragraph> <paragraph num="(4)"> <text>A surveillance camera shall capture activity at each:</text> <paragraph num="(a)"> <text>Entrance to an area where cannabis is processed, tested, packaged, or stored; and</text> </paragraph> <paragraph num="(b)"> <text>Area where cannabis is processed, packaged, or stored.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The storage of all recordings of security video surveillance shall be:</text> <paragraph num="(a)"> <text>Access-limited;</text> </paragraph> <paragraph num="(b)"> <text>Secured by a security alarm system that is independent of the main premises security alarm system;</text> </paragraph> <paragraph num="(c)"> <text>In a format that can be easily accessed for investigational purposes; and</text> </paragraph> <paragraph num="(d)"> <text>Retained for a minimum of 90 calendar days.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Any recording of security video surveillance shall be made available to the Administration or law enforcement agency for just cause as requested within 48 hours.</text> </paragraph> <paragraph num="(7)"> <text>Violation.</text> <paragraph num="(a)"> <text>Failure to provide the Administration with any recording of video surveillance within 48 hours of a request from the Administration is a violation of COMAR 14.17.14.04.</text> </paragraph> <paragraph num="(b)"> <text>Each day of recording within the time frame stated in §F(5)(d) of this regulation that a processor fails to provide to the Administration constitutes a separate violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Handwashing Sinks. A processor shall:</text> <paragraph num="(1)"> <text>Ensure that agents engaged in creating usable cannabis products have easy access to a handwashing sink that provides warm water of sufficient volume under pressure for effective handwashing procedures; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain at least one handwashing sink for the following number of agents who are engaged in creating usable cannabis products while on duty at the same time:</text> <paragraph num="(a)"> <text>Every 15 agents; and</text> </paragraph> <paragraph num="(b)"> <text>Any fraction of 15 agents.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Cannabis Processor Facility Operations."> <paragraph num="A."> <text>A processor shall:</text> <paragraph num="(1)"> <text>Create and enter timely and accurate data into the seed-to-sale tracking system to identify and track the processor’s stock of cannabis from the time it is delivered or produced to the time it is delivered to another licensee; and</text> </paragraph> <paragraph num="(2)"> <text>At least monthly, conduct a physical inventory of the stock and compare the physical inventory of stock with the stock reflected in the seed-to-sale tracking system.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Receipt of Products Containing Cannabis.</text> <paragraph num="(1)"> <text>A processor may not:</text> <paragraph num="(a)"> <text>Acquire cannabis from an individual or entity in Maryland other than a licensee;</text> </paragraph> <paragraph num="(b)"> <text>Acquire cannabis from outside of Maryland unless authorized by the Administration; or</text> </paragraph> <paragraph num="(c)"> <text>Transport cannabis to any place outside of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Hemp.</text> <paragraph num="(a)"> <text>A processor may acquire hemp, as defined in Agriculture Article, §14-101, Annotated Code of Maryland, from a person licensed to produce hemp by:</text> <paragraph num="(i)"> <text>The Maryland Department of Agriculture;</text> </paragraph> <paragraph num="(ii)"> <text>The Secretary of the U.S. Department of Agriculture; or</text> </paragraph> <paragraph num="(iii)"> <text>An agency of another state pursuant to a hemp production plan that has been approved by the Secretary of the U.S. Department of Agriculture.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Any product derived from hemp shall comply with:</text> <paragraph num="(i)"> <text>The testing standards established in COMAR 14.17.08 and the Technical Authority;</text> </paragraph> <paragraph num="(ii)"> <text>The relevant manufacturing standards established in this chapter and COMAR 14.17.13; and</text> </paragraph> <paragraph num="(iii)"> <text>The relevant packaging and labeling standards established in COMAR 14.17.18.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A licensed processor shall:</text> <paragraph num="(i)"> <text>After placing an order to acquire hemp and before accepting delivery of hemp, submit a request for Administration approval to acquire hemp in the manner specified by the Administration.</text> </paragraph> <paragraph num="(ii)"> <text>Follow the process for receiving cannabis established in this regulation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Sanitary Storage of Cannabis. A processor shall:</text> <paragraph num="(1)"> <text>Maintain the cleanliness of any building or equipment used to store or display cannabis;</text> </paragraph> <paragraph num="(2)"> <text>Ensure cannabis is free from contamination;</text> </paragraph> <paragraph num="(3)"> <text>Require a processor agent to report any personal health condition that might compromise the cleanliness or quality of the cannabis the processor agent might handle;</text> </paragraph> <paragraph num="(4)"> <text>Dispose and segregate storage of any cannabis:</text> <paragraph num="(a)"> <text>That is outdated, damaged, deteriorated, misbranded, or adulterated; or</text> </paragraph> <paragraph num="(b)"> <text>Whose containers or packages have been improperly or accidentally opened.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Equipment Sanitation, Accuracy, and Maintenance of Logs. A processor shall:</text> <paragraph num="(1)"> <text>Maintain the sanitation of equipment that comes in contact with cannabis;</text> </paragraph> <paragraph num="(2)"> <text>Ensure all scales are National Type Evaluation Program-approved;</text> </paragraph> <paragraph num="(3)"> <text>Ensure that any scale, balance, or other measurement device and any automatic, mechanical, or electronic equipment is:</text> <paragraph num="(a)"> <text>Annually calibrated by a calibration laboratory accredited to International Organization for Standardization (ISO) standard 17025 ISO/IEC by an accreditation body that is signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement; and</text> </paragraph> <paragraph num="(b)"> <text>Checked at least once each month to ensure accuracy;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Maintain an accurate log recording the:</text> <paragraph num="(a)"> <text>Cleaning of equipment;</text> </paragraph> <paragraph num="(b)"> <text>The maintenance of equipment; and</text> </paragraph> <paragraph num="(c)"> <text>The calibration of equipment; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Make records and certifications required under §D(2) and (3) of this regulation available to the Administration available upon request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Sanitation.</text> <paragraph num="(1)"> <text>Scales, surfaces, and other equipment use for the purposes of creating usable cannabis products shall be cleaned and sanitized:</text> <paragraph num="(a)"> <text>Between shifts;</text> </paragraph> <paragraph num="(b)"> <text>Between packaging, repackaging, or otherwise creation of usable cannabis products with different usable cannabis batches;</text> </paragraph> <paragraph num="(c)"> <text>Before beginning any packaging, repackaging, or otherwise creation of usable cannabis products; and</text> </paragraph> <paragraph num="(d)"> <text>After the completion of any packaging or creation of usable cannabis products.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A processor shall maintain an accurate log of cleaning and sanitation required under §E(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Cannabis Product Processing."> <paragraph num="A."> <text>Controls for Processing of Cannabis Concentrates and Cannabis-Infused Products.</text> <paragraph num="(1)"> <text>A licensed processor of cannabis concentrates and cannabis-infused products shall:</text> <paragraph num="(a)"> <text>Develop standard operating procedures in accordance with COMAR 14.17.11.19, good manufacturing practices, and a training plan before producing cannabis concentrates and cannabis-infused products;</text> </paragraph> <paragraph num="(b)"> <text>Require that any person involved in processing cannabis concentrates and cannabis-infused products:</text> <paragraph num="(i)"> <text>Is appropriately trained in accordance with their job description to safely operate and maintain the system used for processing;</text> </paragraph> <paragraph num="(ii)"> <text>Has direct access to applicable material safety sheets and labels; and</text> </paragraph> <paragraph num="(iii)"> <text>Follows OSHA protocols for handling and storage of all chemicals;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Assign a unique lot number to each lot of cannabis concentrate or cannabis-infused product;</text> </paragraph> <paragraph num="(d)"> <text>If using a solvent-based extraction method, ensure solvents are at least 99 percent pure;</text> </paragraph> <paragraph num="(e)"> <text>Require:</text> <paragraph num="(i)"> <text>The use of solvents in a professional grade, closed-loop extraction system designed to recover the solvents;</text> </paragraph> <paragraph num="(ii)"> <text>Work in a spark-free environment with proper ventilation; and</text> </paragraph> <paragraph num="(iii)"> <text>Following all applicable OSHA regulations, and local fire, safety, and building codes in the processing and storage of the solvents; and</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>If using carbon dioxide gas extraction, ensure:</text> <paragraph num="(i)"> <text>Every vessel is rated to a minimum of 900 pounds per square inch;</text> </paragraph> <paragraph num="(ii)"> <text>The use of a professional grade, closed-loop system; and</text> </paragraph> <paragraph num="(iii)"> <text>The use of carbon dioxide that is at least 99 percent pure.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensed processor may use heat, screens, presses, steam distillation, ice water, and other methods to produce cannabis concentrates.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Upon successful completion of a validation process, the licensed processor shall use an Administration-registered independent testing laboratory to test each unique lot of cannabis concentrate or cannabis-infused product and obtain a certificate of analysis.</text> </paragraph> <paragraph num="C."> <text>Batch Release Controls.</text> <paragraph num="(1)"> <text>If a licensed processor, upon review of the certificate of analysis, determines that a lot meets the specification for the product, the licensed processor may:</text> <paragraph num="(a)"> <text>Assign an expiration date to the lot;</text> </paragraph> <paragraph num="(b)"> <text>Release the lot for distribution; and</text> </paragraph> <paragraph num="(c)"> <text>Revise the status of the lot in the seed-to-sale tracking system.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a licensed processor receives test results that the lot falls outside action limits, the licensed processor:</text> <paragraph num="(a)"> <text>May rework or reprocess the lot according to their standard operating procedure; and</text> </paragraph> <paragraph num="(b)"> <text>If applicable, shall ensure the reworked or reprocessed lot is resampled and retested by the independent testing laboratory to meet all required specifications.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensed processor shall retain every certificate of analysis.</text> </paragraph> <paragraph num="(4)"> <text>All cannabis products shall have a certificate of analysis, as specified in COMAR 14.17.08.05A(5), prior to transfer to a licensed dispensary.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Stability Testing and Retention Sampling.</text> <paragraph num="(1)"> <text>A processor shall provide a sample from each unique lot to an independent testing laboratory sufficient to perform stability testing at 6-month intervals to:</text> <paragraph num="(a)"> <text>Ensure product potency and purity; and</text> </paragraph> <paragraph num="(b)"> <text>Provide support for expiration dating.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Retention samples retained from each released lot shall be:</text> <paragraph num="(a)"> <text>Tested by the State Cannabis Testing Laboratory following an adverse event reported to the Administration;</text> </paragraph> <paragraph num="(b)"> <text>Properly stored by the licensed processor; and</text> </paragraph> <paragraph num="(c)"> <text>Properly discarded 6 months after the expiration date of the lot.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Correction and Prevention Action.</text> <paragraph num="(1)"> <text>If a processor’s test results indicate the confirmed presence of a pathogen more than once in a 60-day period, the processor shall:</text> <paragraph num="(a)"> <text>Conduct environmental swab testing as required by the Administration’s Technical Authority;</text> </paragraph> <paragraph num="(b)"> <text>Conduct an investigation to determine the root cause of contamination;</text> </paragraph> <paragraph num="(c)"> <text>Decontaminate all areas, including rooms, equipment, and surfaces used for cannabis product processing;</text> </paragraph> <paragraph num="(d)"> <text>Provide, in the manner designated by the Administration:</text> <paragraph num="(i)"> <text>A report of the investigation; and</text> </paragraph> <paragraph num="(ii)"> <text>The licensee’s corrective action plan; and</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>If applicable, update and implement standard operating procedures needed to ensure passing samples in the future.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Administration may require a processor to:</text> <paragraph num="(a)"> <text>Conduct further investigation; and</text> </paragraph> <paragraph num="(b)"> <text>Implement additional procedures to prevent future contamination.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Edible Cannabis Product Processing."> <paragraph num="A."> <text>A processor that produces edible cannabis products as defined in COMAR 14.17.01 shall maintain facilities and manufacture and transport edible products in accordance with this regulation, Regulations .06—.14 of this chapter, and COMAR 14.17.13.05.</text> </paragraph> <paragraph num="B."> <text>Issuance of Permit.</text> <paragraph num="(1)"> <text>Before engaging in the business of possessing, processing, packaging, labeling, transferring, transporting, selling, or distributing edible cannabis products, a processor shall obtain a permit from the Administration.</text> </paragraph> <paragraph num="(2)"> <text>To obtain a permit, a processor shall:</text> <paragraph num="(a)"> <text>Submit a completed permit application;</text> </paragraph> <paragraph num="(b)"> <text>Pay the registration fee specified in COMAR 14.17.21;</text> </paragraph> <paragraph num="(c)"> <text>Make available all edible cannabis product processing standard operating procedures required by Regulation .19 of this chapter;</text> </paragraph> <paragraph num="(d)"> <text>Pass a pre-operation inspection; and</text> </paragraph> <paragraph num="(e)"> <text>Conspicuously post applicable State and local licenses at the licensed premises.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The processor may apply for a permit to manufacture edible cannabis products at:</text> <paragraph num="(a)"> <text>The processor’s premises; or</text> </paragraph> <paragraph num="(b)"> <text>A facility under the legal control of the processor that meets:</text> <paragraph num="(i)"> <text>All zoning and planning requirements; and</text> </paragraph> <paragraph num="(ii)"> <text>The requirements of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Administration may deny a permit if the processor:</text> <paragraph num="(i)"> <text>Violates or fails to meet the requirements of this chapter; or</text> </paragraph> <paragraph num="(ii)"> <text>Fraudulently or deceptively attempts to obtain a permit.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Trade Secrets.</text> <paragraph num="(1)"> <text>A processor shall provide the Administration with the recipe for each edible cannabis product prior to offering the product for distribution or sale to a licensed dispensary.</text> </paragraph> <paragraph num="(2)"> <text>A processor shall notify the Administration of any ingredient or recipe that the processor considers a trade secret.</text> </paragraph> <paragraph num="(3)"> <text>The Administration shall maintain the confidentiality of trade secret information in accordance with State Government Article, §10-617, and Health-General Article, §21-259, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>If the Administration determines that the information about an ingredient or recipe is necessary to conduct a disease outbreak investigation, the Administration may disclose the trade secret to the appropriate investigators.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Edible Cannabis Product Processing — Definitions."> <paragraph num="A."> <text>In Regulations .05—.14 of this chapter, the following terms have the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Approved source” means a source of:</text> <paragraph num="(a)"> <text>Cannabis approved, licensed, and regulated by the Administration; or</text> </paragraph> <paragraph num="(b)"> <text>Food ingredients regulated by an approving authority.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Approving authority” means the agency designated in the laws of Maryland, another state, or another country to license or permit a food processing plant.</text> </paragraph> <paragraph num="(3)"> <text>“Commercially sterile” means the condition achieved by the:</text> <paragraph num="(a)"> <text>Application of heat, pressure, or other energy or matter that renders a food ingredient free of:</text> <paragraph num="(i)"> <text>Microorganisms capable of reproducing in the food ingredient under normal non-refrigerated conditions of storage and distribution; and</text> </paragraph> <paragraph num="(ii)"> <text>Viable microorganisms, including spores, that cause disease; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Control of water activity and the application of heat, pressure, or other energy or matter that renders the food ingredient free of microorganisms capable of reproducing in the food ingredient under normal non-refrigerated conditions of storage and distribution.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Cookware” means items used during the processing of ingredients or edible cannabis products, including pots, pans, utensils, and containers.</text> </paragraph> <paragraph num="(5)"> <text>“Critical control point” means a point in the receiving, storage, processing, or distribution of ingredients or edible cannabis products where there is a reasonable likelihood that improper control may cause, allow, or contribute to a hazard to public health.</text> </paragraph> <paragraph num="(6)"> <text>Critical Item.</text> <paragraph num="(a)"> <text>“Critical item” means a safety requirement that if violated requires:</text> <paragraph num="(i)"> <text>Immediate correction;</text> </paragraph> <paragraph num="(ii)"> <text>Destruction of any ingredients or edible cannabis products which may be affected;</text> </paragraph> <paragraph num="(iii)"> <text>The cessation of some or all processing operations; or</text> </paragraph> <paragraph num="(iv)"> <text>Closure of the licensed premises.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Critical item” includes the following requirements:</text> <paragraph num="(i)"> <text>Food ingredients be obtained from an approved source and approved for human consumption by an approving authority;</text> </paragraph> <paragraph num="(ii)"> <text>Cannabis ingredients be obtained from an approved source;</text> </paragraph> <paragraph num="(iii)"> <text>All ingredients and edible cannabis products be protected from contamination;</text> </paragraph> <paragraph num="(iv)"> <text>All processes provide safe edible cannabis products with proper control at critical control points;</text> </paragraph> <paragraph num="(v)"> <text>Licensed processor sanitation be adequate, provide safety, and prevent illness transmissible through edible cannabis products or ingredients;</text> </paragraph> <paragraph num="(vi)"> <text>Equipment allows for proper processing and sanitation;</text> </paragraph> <paragraph num="(vii)"> <text>Edible cannabis products be packaged and labeled for safety;</text> </paragraph> <paragraph num="(viii)"> <text>A sufficient volume of potable hot and cold water supply under adequate pressure be available to facilitate proper handwashing procedures outlined in this chapter; and</text> </paragraph> <paragraph num="(ix)"> <text>Sewage be discharged in compliance with applicable laws and regulations.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Food” means any substance that is used as food or drink for human beings or as a component of food or drink for human beings.</text> </paragraph> <paragraph num="(8)"> <text>“Food ingredient” means a substance that is used as a component of food, including:</text> <paragraph num="(a)"> <text>Flavoring;</text> </paragraph> <paragraph num="(b)"> <text>Food coloring; and</text> </paragraph> <paragraph num="(c)"> <text>Preservatives.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Ingredient” means any component of an edible cannabis product that is intended for human consumption, approved by the Administration, and composed of:</text> <paragraph num="(a)"> <text>Food or food ingredients; or</text> </paragraph> <paragraph num="(b)"> <text>Cannabis.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Permit” means a permit issued by the Administration to a licensed processor for the purpose of manufacturing edible cannabis products.</text> </paragraph> <paragraph num="(11)"> <text>“Permittee” means a licensed processor authorized by the Administration to manufacture edible cannabis products.</text> </paragraph> <paragraph num="(12)"> <text>Potentially Hazardous Edible Cannabis Product.</text> <paragraph num="(a)"> <text>“Potentially hazardous edible cannabis product” means an edible cannabis product that requires temperature control because the product is in a form capable of supporting:</text> <paragraph num="(i)"> <text>The rapid and progressive growth of infectious or toxigenic microorganisms; or</text> </paragraph> <paragraph num="(ii)"> <text>The growth and toxin production of Clostridium botulinum.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Potentially hazardous edible cannabis product” does not include products with a water activity (aw) value of 0.85 or less.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Potentially Hazardous Ingredient.</text> <paragraph num="(a)"> <text>“Potentially hazardous ingredient” means a natural or synthetic component of food or an edible cannabis product intended for human consumption that requires temperature control because the ingredient is in a form capable of supporting the:</text> <paragraph num="(i)"> <text>Rapid and progressive growth of infectious or toxigenic microorganisms; or</text> </paragraph> <paragraph num="(ii)"> <text>Growth and toxin production of Clostridium botulinum.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Potentially hazardous ingredient” does not include an ingredient with a:</text> <paragraph num="(i)"> <text>Water activity (aw) value of 0.85 or less;</text> </paragraph> <paragraph num="(ii)"> <text>Commercially sterile ingredient in a hermetically sealed container.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Quarantine area” means an area within a licensed premise in which ingredients, cannabis, or cannabis finished products that may be contaminated are temporarily stored prior to disposal or collection by a public health agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Edible Cannabis Product Processing — General Premises Requirements."> <paragraph num="A."> <text>The premises and operations shall conform to all local zoning and planning requirements.</text> </paragraph> <paragraph num="B."> <text>A permittee shall conspicuously display at the premises a permit to process edible cannabis products.</text> </paragraph> <paragraph num="C."> <text>No modifications or renovations to licensed processor premises shall be undertaken without prior approval by the Maryland Cannabis Administration.</text> </paragraph> <paragraph num="D."> <text>The premises shall be completely separated from an area used as living quarters by solid, impervious floors, walls, and ceilings with no connecting openings.</text> </paragraph> <paragraph num="E."> <text>A room or area in which ingredients or edible cannabis products are processed or stored, or in which cookware equipment is cleaned, sanitized, or stored, shall:</text> <paragraph num="(1)"> <text>Be separated from other rooms or areas at the licensed premises by tight walls, ceilings, and self-closing doors;</text> </paragraph> <paragraph num="(2)"> <text>Be refrigerated or mechanically ventilated using exhaust and supply fans to:</text> <paragraph num="(a)"> <text>Remove grease vapors, steam, condensation, heat, and odor;</text> </paragraph> <paragraph num="(b)"> <text>Provide filtered air and positive air pressure to the room; and</text> </paragraph> <paragraph num="(c)"> <text>Prevent condensation and grease from accumulating on surfaces and equipment;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Have a floor, ceiling, and walls that are smooth, washable, and impervious to water;</text> </paragraph> <paragraph num="(4)"> <text>Have floor-wall joints that are coved and impervious to water; and</text> </paragraph> <paragraph num="(5)"> <text>Prevent overhead pipes, ducts, conduits, evaporators, and other structures required to manufacture edible cannabis products from:</text> <paragraph num="(a)"> <text>Being located over ingredient or edible cannabis product storage, preparation, manufacturing, packaging, or labeling areas; and</text> </paragraph> <paragraph num="(b)"> <text>Leaking on or contaminating ingredients, edible cannabis products, cookware, or packaging or labeling materials.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Artificial Lighting.</text> <paragraph num="(1)"> <text>A room or area in which ingredients or edible cannabis products are processed or stored, or in which cookware or equipment are cleaned, sanitized, or stored, shall have artificial lights that provide at a minimum:</text> <paragraph num="(a)"> <text>40-foot candles of light on all work surfaces used for processing and warewashing; and</text> </paragraph> <paragraph num="(b)"> <text>20-foot candles of light on surfaces used solely for storage.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The artificial lighting shall consist of:</text> <paragraph num="(a)"> <text>Shatter-resistant bulbs; or</text> </paragraph> <paragraph num="(b)"> <text>Light shields that protect exposed light bulbs or fixtures from breakage and prevent glass fragments from contacting ingredients, edible cannabis products, or contact surfaces.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Floor Drains.</text> <paragraph num="(1)"> <text>The permittee shall:</text> <paragraph num="(a)"> <text>If a floor receives water because of processing or cleaning, install and maintain floor drains at a rate of one floor drain for every 400 square feet of floor area; and</text> </paragraph> <paragraph num="(b)"> <text>Ensure that the floor is sloped to one or more floor drains at a pitch of 1/8 to 1/4 inch per foot.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Pooling or standing water is not allowed.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Lavatories.</text> <paragraph num="(1)"> <text>The premises shall be constructed to include:</text> <paragraph num="(a)"> <text>A separate, gender-segregated lavatory for men and women, or a gender-neutral lavatory; and</text> </paragraph> <paragraph num="(b)"> <text>One toilet for the following number of agents who are on duty at the same time:</text> <paragraph num="(i)"> <text>Every 15 agents; and</text> </paragraph> <paragraph num="(ii)"> <text>Any fraction of 15 agents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A lavatory may not open directly into an area in which:</text> <paragraph num="(a)"> <text>Ingredients or edible cannabis products are stored, processed, packaged, or labeled; or</text> </paragraph> <paragraph num="(b)"> <text>Cookware or equipment is washed or stored.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Each lavatory shall be equipped with:</text> <paragraph num="(a)"> <text>Ventilation with mechanical air exhaust at the rate of 2 cubic feet per minute of air for each square foot of floor area or a screened window that allows the entrance of outside air;</text> </paragraph> <paragraph num="(b)"> <text>Easily cleanable and durable walls and ceiling;</text> </paragraph> <paragraph num="(c)"> <text>A smooth, impervious, and easily cleanable floor;</text> </paragraph> <paragraph num="(d)"> <text>Artificial lighting that provides 20-foot candles of light when measured 30 inches above the floor;</text> </paragraph> <paragraph num="(e)"> <text>A handwashing sink;</text> </paragraph> <paragraph num="(f)"> <text>Soap;</text> </paragraph> <paragraph num="(g)"> <text>Paper towels or warm air hand drying devices;</text> </paragraph> <paragraph num="(h)"> <text>Warm water of sufficient volume under pressure for effective handwashing; and</text> </paragraph> <paragraph num="(i)"> <text>A covered trash receptacle.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Non-Green Waste.</text> <paragraph num="(1)"> <text>The premises shall include non-green waste containers that are:</text> <paragraph num="(a)"> <text>Adequate in number to maintain sanitary conditions;</text> </paragraph> <paragraph num="(b)"> <text>Accessible to agents at locations where non-green waste is generated;</text> </paragraph> <paragraph num="(c)"> <text>Labeled as not suitable for any green waste;</text> </paragraph> <paragraph num="(d)"> <text>Easily cleanable; and</text> </paragraph> <paragraph num="(e)"> <text>Placed on a hard and impermeable surface.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Non-green waste containers located inside shall be leak-proof and emptied and cleaned at least daily.</text> </paragraph> <paragraph num="(3)"> <text>Non-green waste containers located outdoors shall be:</text> <paragraph num="(a)"> <text>Impervious to leaks, vermin, and insects;</text> </paragraph> <paragraph num="(b)"> <text>Equipped with a drain that conveys wastewater from the container directly into a sewerage system that meets all applicable State and local codes and properly disposes of the wastewater;</text> </paragraph> <paragraph num="(c)"> <text>Large enough to hold waste until the waste is taken off-site; and</text> </paragraph> <paragraph num="(d)"> <text>Covered.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>In any event where the permittee is unable to ensure adequate sanitation, such as during an electrical outage or water shut-off, the permittee shall:</text> <paragraph num="(1)"> <text>Cease all edible cannabis processing;</text> </paragraph> <paragraph num="(2)"> <text>Conduct a risk analysis to determine whether any ingredients, edible cannabis products, or packaging or labeling materials were contaminated; and</text> </paragraph> <paragraph num="(3)"> <text>Notify the Administration within 24 hours of the event.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Edible Cannabis Product Processing — Receipt of Ingredients."> <paragraph num="A."> <text>Ingredients and other supplies necessary to process edible cannabis products shall be received in a designated area identified in the standard operating procedures.</text> </paragraph> <paragraph num="B."> <text>This regulation does not apply to the receipt of cannabis, cannabis concentrates, or cannabis-infused products that are not intended to be used as an ingredient in edible cannabis products.</text> </paragraph> <paragraph num="C."> <text>Each receiving area shall have a barrier that reasonably prevents the entry of:</text> <paragraph num="(1)"> <text>Insects;</text> </paragraph> <paragraph num="(2)"> <text>Vermin;</text> </paragraph> <paragraph num="(3)"> <text>Pathogenic microorganisms;</text> </paragraph> <paragraph num="(4)"> <text>Toxic or deleterious chemicals;</text> </paragraph> <paragraph num="(5)"> <text>Foreign matter;</text> </paragraph> <paragraph num="(6)"> <text>Dust; or</text> </paragraph> <paragraph num="(7)"> <text>Animals.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Any dock or overhead door may only be open when ingredients, edible cannabis products, waste, or other items are:</text> <paragraph num="(1)"> <text>Received;</text> </paragraph> <paragraph num="(2)"> <text>Removed from the premises; or</text> </paragraph> <paragraph num="(3)"> <text>Moved between receiving areas.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Upon receipt of each delivery, a permittee shall:</text> <paragraph num="(1)"> <text>Inspect the delivery for damage and potential contamination;</text> </paragraph> <paragraph num="(2)"> <text>Inspect the delivery for potentially hazardous ingredients;</text> </paragraph> <paragraph num="(3)"> <text>Enter timely and accurate temperature data for potentially hazardous ingredients; and</text> </paragraph> <paragraph num="(4)"> <text>Confirm that each:</text> <paragraph num="(a)"> <text>Delivery is not damaged or contaminated; or</text> </paragraph> <paragraph num="(b)"> <text>Damaged or contaminated item is recorded in the receiving log.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>All ingredients shall be clearly labeled by the permittee with the:</text> <paragraph num="(1)"> <text>Name of the ingredient;</text> </paragraph> <paragraph num="(2)"> <text>Batch or lot number;</text> </paragraph> <paragraph num="(3)"> <text>Date of receipt; and</text> </paragraph> <paragraph num="(4)"> <text>Expiration or use-by date.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A permittee shall maintain for at least 2 years a log of the:</text> <paragraph num="(1)"> <text>Date and time of each delivery of ingredients;</text> </paragraph> <paragraph num="(2)"> <text>Name and quantity of ingredients received;</text> </paragraph> <paragraph num="(3)"> <text>Batch or lot number of each ingredient received;</text> </paragraph> <paragraph num="(4)"> <text>Temperature data required under §E(3) of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>Name of the product manufacturer or licensee and, if different, the name of the shipping company; and</text> </paragraph> <paragraph num="(6)"> <text>Name of processor agent responsible for receiving the shipment.</text> </paragraph> </paragraph> <paragraph num="H."> <text>All food ingredients shall be produced by a commercial manufacturer that is licensed by an approving authority.</text> </paragraph> <paragraph num="I."> <text>Spoiled, unwholesome, vermin-infested, or insect-infested ingredients are not allowed onto the premises and shall be:</text> <paragraph num="(1)"> <text>Removed immediately from the premises and properly disposed of;</text> </paragraph> <paragraph num="(2)"> <text>If it is not practicable to remove immediately, placed in a quarantine area temporarily until proper disposal; or</text> </paragraph> <paragraph num="(3)"> <text>If deemed necessary as part of an investigation by the Administration or other State, local, or federal regulatory agency, placed in a quarantine area until collection.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Edible Cannabis Product Processing — Storage of Ingredients and Edible Cannabis Products."> <paragraph num="A."> <text>All ingredients and edible cannabis products shall be kept in a secure controlled environment that:</text> <paragraph num="(1)"> <text>Meets the requirements set forth in this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Is a dry storage area, refrigerated storage area, or freezer storage area.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Storage standard operating procedures shall preserve freshness, prevent contamination, and maintain cannabinoid content of any ingredients or edible cannabis products.</text> </paragraph> <paragraph num="C."> <text>Food ingredients may not be stored in the same areas as cannabis unless as outlined in standard operating procedures and approved by the Administration.</text> </paragraph> <paragraph num="D."> <text>Storage equipment shall be positioned so that:</text> <paragraph num="(1)"> <text>Storage surfaces are at least 6 inches:</text> <paragraph num="(a)"> <text>Above the floors; and</text> </paragraph> <paragraph num="(b)"> <text>Away from the walls; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Ingredient contact surfaces are at least 18 inches above the floor.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Dry Storage Area.</text> <paragraph num="(1)"> <text>A dry storage area shall be maintained between 50°F and 70°F.</text> </paragraph> <paragraph num="(2)"> <text>A dry storage area shall have:</text> <paragraph num="(a)"> <text>Adequate ventilation to remain below 60 percent relative humidity; and</text> </paragraph> <paragraph num="(b)"> <text>A thermometer and hygrometer in plain sight that are calibrated based on the manufacturer’s recommendations to ensure accuracy.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Refrigerated Storage Area.</text> <paragraph num="(1)"> <text>A refrigerated storage area shall:</text> <paragraph num="(a)"> <text>Be maintained at or below 40°F; and</text> </paragraph> <paragraph num="(b)"> <text>Have thermometers that are easily readable and accurate to plus or minus 2°F.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A permittee shall:</text> <paragraph num="(a)"> <text>Position a temperature sensor to register the warmest air in the temperature-controlled space; or</text> </paragraph> <paragraph num="(b)"> <text>Have several thermometers throughout the area to ensure accuracy, consistency, and adequate cooling.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A refrigerator unit shall have doors that close tightly and seal fully.</text> </paragraph> <paragraph num="(4)"> <text>In the case of a power outage, if the refrigerator unit:</text> <paragraph num="(a)"> <text>Remains below 40°F for the duration of the power outage, the refrigerator contents are considered safe; and</text> </paragraph> <paragraph num="(b)"> <text>Rises above 40°F for more than 2 hours, then:</text> <paragraph num="(i)"> <text>Any ingredients or edible cannabis products shall be discarded; and</text> </paragraph> <paragraph num="(ii)"> <text>The permittee shall notify the Administration within 24 hours.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>If any ingredients or edible cannabis products that were stored in the refrigerator do not require temperature control for safety, a permittee may conduct a risk analysis to determine whether the ingredients or edible cannabis products remain safe for human consumption.</text> </paragraph> <paragraph num="H."> <text>The permittee shall maintain a record of any risk analysis conducted, the agent responsible for the risk analysis, and any ingredients or edible cannabis products that the permittee determines remain safe for human consumption.</text> </paragraph> <paragraph num="I."> <text>Freezer Storage Area.</text> <paragraph num="(1)"> <text>A freezer storage area shall:</text> <paragraph num="(a)"> <text>Be maintained at or below 0°F; and</text> </paragraph> <paragraph num="(b)"> <text>Have thermometers that are easily readable and accurate to plus or minus 2°F.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A permittee shall:</text> <paragraph num="(a)"> <text>Position a temperature sensor to register the warmest air in the temperature-controlled space; or</text> </paragraph> <paragraph num="(b)"> <text>Have several thermometers throughout the area to ensure accuracy, consistency, and adequate cooling.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A freezer unit shall have doors that close tightly and seal fully.</text> </paragraph> <paragraph num="(4)"> <text>In the case of a power outage, if the freezer unit:</text> <paragraph num="(a)"> <text>Remains at or below 0°F for the duration of the power outage, its contents are considered safe; and</text> </paragraph> <paragraph num="(b)"> <text>Rises above 0°F for more than 2 hours, then:</text> <paragraph num="(i)"> <text>Any ingredients or edible cannabis products that were stored in the freezer shall be discarded; and</text> </paragraph> <paragraph num="(ii)"> <text>The permittee shall notify the Administration within 24 hours.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>If any ingredients or edible cannabis products that were stored in the freezer do not require temperature control for safety, a permittee may conduct a risk analysis to determine whether the ingredients or edible cannabis products remain safe for human consumption.</text> </paragraph> <paragraph num="(6)"> <text>The permittee shall maintain a record of any risk analysis conducted, the agent responsible for the risk analysis, and any ingredients or edible cannabis products that the permittee determines remain safe for human consumption.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Potentially Hazardous Ingredients.</text> <paragraph num="(1)"> <text>The internal temperature of a potentially hazardous ingredient shall:</text> <paragraph num="(a)"> <text>Be kept at 41°F or less, or 135°F or greater; and</text> </paragraph> <paragraph num="(b)"> <text>For ingredients with a non-proteolytic Clostridium botulinum potential hazard, be kept at 38°F or less during refrigerated storage.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>When the internal temperature of a potentially hazardous ingredient is kept at temperatures other than specified in §J(1) of this regulation:</text> <paragraph num="(a)"> <text>A scheduled process approved by the Administration, specifying the temperature and amount of time at that temperature, shall be used; and</text> </paragraph> <paragraph num="(b)"> <text>Documentation of any corrective action taken and the agent responsible for monitoring the corrective action plan shall be kept for a minimum of 2 years and made available to the Administration upon request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>All ingredients and edible cannabis products shall be clearly labeled and stored in a manner that:</text> <paragraph num="(1)"> <text>Facilitates first-expired, first-out (FEFO) procedures; and</text> </paragraph> <paragraph num="(2)"> <text>Is approved by the Administration.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Each temperature-controlled equipment unit shall have a temperature sensor visible from outside of the temperature-controlled equipment unit.</text> </paragraph> <paragraph num="M."> <text>For each dry storage area, refrigerator storage area, and freezer storage area, a permittee shall:</text> <paragraph num="(1)"> <text>Monitor the temperature 24 hours a day, 365 days a year without interruption;</text> </paragraph> <paragraph num="(2)"> <text>Document the temperature at least two times a day, 365 days a year without interruption; and</text> </paragraph> <paragraph num="(3)"> <text>If outside the specified temperature range, document the time, date, any appropriate corrective action, and the agent responsible for monitoring the corrective action plan.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Poisonous or Toxic Materials.</text> <paragraph num="(1)"> <text>A permittee shall ensure that any poisonous or toxic materials are:</text> <paragraph num="(a)"> <text>Kept in the original bulk container before use;</text> </paragraph> <paragraph num="(b)"> <text>Prominently and distinctively marked or labeled for easy identification;</text> </paragraph> <paragraph num="(c)"> <text>Used in accordance with manufacturer’s guidelines; and</text> </paragraph> <paragraph num="(d)"> <text>Not used or stored in a way that is likely to contaminate cannabis, ingredients, edible cannabis products, or packaging and labeling materials.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A permittee shall make a safety data sheet that is specific to any poisonous or toxic material available to each agent in a form that the agent understands.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Edible Cannabis Product Processing — Equipment."> <paragraph num="A."> <text>General Requirements.</text> <paragraph num="(1)"> <text>The permittee shall prevent any ingredient or edible cannabis product from coming into contact with a surface or substance other than a clean and sanitary surface or substance intended for food contact or incorporation into food.</text> </paragraph> <paragraph num="(2)"> <text>Any heating and cooling equipment in close contact with ingredients or edible cannabis products shall be:</text> <paragraph num="(a)"> <text>Food grade;</text> </paragraph> <paragraph num="(b)"> <text>Approved for use in food processing areas; or</text> </paragraph> <paragraph num="(c)"> <text>Designed to prevent any contact with any ingredient or edible cannabis product.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The permittee shall ensure that:</text> <paragraph num="(a)"> <text>The warewashing area includes a three-compartment sink able to hold and wash cookware and equipment in the kitchen;</text> </paragraph> <paragraph num="(b)"> <text>Larger cookware or equipment that cannot have at least 50 percent of its contact surface submerged in the three-compartment sink complies with approved standard operating procedures for cleaning and sanitizing the cookware or equipment;</text> </paragraph> <paragraph num="(c)"> <text>Agents are trained to clean the larger cookware and equipment according to the standard operating procedures; and</text> </paragraph> <paragraph num="(d)"> <text>A log is maintained for 2 years detailing the date, time, and agent responsible for cleaning and sanitizing the larger cookware or equipment.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Equipment used to process ingredients and edible cannabis products shall be:</text> <paragraph num="(a)"> <text>Maintained in a sanitary and working condition;</text> </paragraph> <paragraph num="(b)"> <text>Tested and calibrated according to the equipment manufacturer’s instructions to ensure accuracy; and</text> </paragraph> <paragraph num="(c)"> <text>Positioned in a manner that does not impede proper cleaning and sanitation procedures.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Equipment used to process ingredients and edible cannabis products shall meet design standards intended for food production equipment, such as those established by the:</text> <paragraph num="(a)"> <text>National Sanitation Foundation (NSF);</text> </paragraph> <paragraph num="(b)"> <text>Bakery Industry Sanitation Standards Committee;</text> </paragraph> <paragraph num="(c)"> <text>National Automatic Merchandising Association;</text> </paragraph> <paragraph num="(d)"> <text>International Association of Milk and Food Sanitarians;</text> </paragraph> <paragraph num="(e)"> <text>American Society of Mechanical Engineers; or</text> </paragraph> <paragraph num="(f)"> <text>U.S. Department of Agriculture.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>A thermometer used to monitor the temperature of any ingredient, edible cannabis product, or storage area shall be:</text> <paragraph num="(a)"> <text>Validated at least once per month using standard operating procedures approved by the Administration; and</text> </paragraph> <paragraph num="(b)"> <text>Calibrated based on the manufacturer’s recommendations to ensure accuracy, and at a minimum:</text> <paragraph num="(i)"> <text>Annually; or</text> </paragraph> <paragraph num="(ii)"> <text>When validation procedures identify a thermometer is not accurate to plus or minus 2°F.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Contact Surfaces.</text> <paragraph num="(1)"> <text>Materials used as contact surfaces of equipment or cookware shall be:</text> <paragraph num="(a)"> <text>Nontoxic;</text> </paragraph> <paragraph num="(b)"> <text>Inert to ingredients;</text> </paragraph> <paragraph num="(c)"> <text>Nonporous and nonabsorbent;</text> </paragraph> <paragraph num="(d)"> <text>Corrosion-resistant;</text> </paragraph> <paragraph num="(e)"> <text>Durable;</text> </paragraph> <paragraph num="(f)"> <text>If stainless steel, made of stainless steel of American Iron and Steel Institute Type 304, or equivalent; and</text> </paragraph> <paragraph num="(g)"> <text>Maintained in good condition.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Contact surfaces of equipment or cookware shall be designed, constructed, and maintained to be:</text> <paragraph num="(a)"> <text>Smooth;</text> </paragraph> <paragraph num="(b)"> <text>Easily cleanable;</text> </paragraph> <paragraph num="(c)"> <text>Free of difficult-to-clean internal surfaces;</text> </paragraph> <paragraph num="(d)"> <text>Self-emptying or self-draining if an interior surface;</text> </paragraph> <paragraph num="(e)"> <text>Visible for inspection or readily disassembled for inspection;</text> </paragraph> <paragraph num="(f)"> <text>If manually cleaned:</text> <paragraph num="(i)"> <text>Readily accessible for cleaning without tools; or</text> </paragraph> <paragraph num="(ii)"> <text>If not readily accessible, readily disassembled for cleaning with the use of simple tools kept available near the equipment; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>If cleaned and sanitized by pressurized cleaning-in-place system, readily accessible to the cleaning and sanitizing solutions without disassembly.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Edible Cannabis Product Processing — Cleaning and Sanitation Procedures."> <paragraph num="A."> <text>General Requirements.</text> <paragraph num="(1)"> <text>A permittee shall establish standard operating procedures for cleaning and sanitizing any surface, cookware, or equipment that comes into contact with ingredients or edible cannabis products that:</text> <paragraph num="(a)"> <text>Ensure proper sanitation throughout the premises;</text> </paragraph> <paragraph num="(b)"> <text>Are available to each agent in a form the agent understands; and</text> </paragraph> <paragraph num="(c)"> <text>Are approved by the Administration.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Any surface that comes into contact with ingredients or edible cannabis products shall be cleaned and sanitized:</text> <paragraph num="(a)"> <text>In accordance with cleaning and sanitation procedures for food contact surfaces of cookware and equipment specified in COMAR 10.15.03;</text> </paragraph> <paragraph num="(b)"> <text>After preparing potentially hazardous ingredients; and</text> </paragraph> <paragraph num="(c)"> <text>When there is an interruption in processing of greater than 2 hours.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The permittee shall use a cleaning and sanitizing schedule and procedure demonstrated by scientific evidence to kill pathogens and be safe for use on surfaces that come into contact with ingredients and edible cannabis products.</text> </paragraph> <paragraph num="(4)"> <text>Any surface that only comes into contact with fully processed edible cannabis products shall be cleaned and sanitized:</text> <paragraph num="(a)"> <text>Each time more than 8 hours elapse between the start of processing and the previous cleaning and sanitizing;</text> </paragraph> <paragraph num="(b)"> <text>If processing more than one type of edible cannabis product, at a frequency sufficient to prevent cross-contamination of allergens or different dosage forms;</text> </paragraph> <paragraph num="(c)"> <text>After processing has been completed;</text> </paragraph> <paragraph num="(d)"> <text>When there is an interruption in processing of greater than 2 hours; and</text> </paragraph> <paragraph num="(e)"> <text>As often as needed during processing to prevent contamination of edible cannabis products.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Any surface, utensil, or equipment that does not contact ingredients or edible cannabis products shall be cleaned:</text> <paragraph num="(1)"> <text>According to COMAR 10.15.04; and</text> </paragraph> <paragraph num="(2)"> <text>As often as necessary to maintain sanitary conditions.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Vermin and insects shall be eliminated so that there is minimal potential for contamination of ingredients or edible cannabis products.</text> </paragraph> <paragraph num="D."> <text>Pesticides may not be used to exterminate vermin unless:</text> <paragraph num="(1)"> <text>Approved for use in food processing areas; or</text> </paragraph> <paragraph num="(2)"> <text>The permittee:</text> <paragraph num="(a)"> <text>Applies the pesticides only in areas not used for storage or processing of ingredients or edible cannabis products; and</text> </paragraph> <paragraph num="(b)"> <text>Accurately enters the data into the seed-to-sale tracking system.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Edible Cannabis Product Processing — Agent Sanitation."> <paragraph num="A."> <text>The permittee shall ensure that each agent:</text> <paragraph num="(1)"> <text>Practices good personal hygiene and does not contaminate ingredients or edible cannabis products;</text> </paragraph> <paragraph num="(2)"> <text>Wears clean outerwear and, if necessary, a hair or beard covering, or both;</text> </paragraph> <paragraph num="(3)"> <text>Wears gloves when handling any cannabis plant material or cannabis concentrate;</text> </paragraph> <paragraph num="(4)"> <text>If wearing gloves:</text> <paragraph num="(a)"> <text>Uses gloves that are intended for food contact;</text> </paragraph> <paragraph num="(b)"> <text>Washes their hands thoroughly before putting on the gloves; and</text> </paragraph> <paragraph num="(c)"> <text>Washes their hands and replaces the gloves in accordance with COMAR 10.15.03.14J and after an activity that:</text> <paragraph num="(i)"> <text>Is likely to soil the gloves; or</text> </paragraph> <paragraph num="(ii)"> <text>Damages the gloves;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>If not wearing gloves, washes their hands and the exposed portions of their arms:</text> <paragraph num="(a)"> <text>Frequently, and after an activity that is likely to soil their hands;</text> </paragraph> <paragraph num="(b)"> <text>Immediately upon entrance to any area containing ingredients or edible cannabis products;</text> </paragraph> <paragraph num="(c)"> <text>Immediately before engaging in preparation for the production of edible cannabis products;</text> </paragraph> <paragraph num="(d)"> <text>After using the lavatory;</text> </paragraph> <paragraph num="(e)"> <text>After coughing, sneezing, or using a handkerchief or disposable tissue;</text> </paragraph> <paragraph num="(f)"> <text>After using tobacco;</text> </paragraph> <paragraph num="(g)"> <text>After eating or drinking;</text> </paragraph> <paragraph num="(h)"> <text>After handling soiled linens, equipment, or cookware;</text> </paragraph> <paragraph num="(i)"> <text>During preparation for production of edible cannabis products, as often as necessary to remove soil and contamination and to prevent cross-contamination when changing tasks;</text> </paragraph> <paragraph num="(j)"> <text>When switching between working with ingredients or unfinished edible cannabis products and working with fully processed edible cannabis products;</text> </paragraph> <paragraph num="(k)"> <text>Before donning gloves for working with edible cannabis products or ingredients; and</text> </paragraph> <paragraph num="(l)"> <text>After engaging in any other activities that may contaminate the hands;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If handling ingredients or edible cannabis products, maintains trim and clean fingernails and does not wear artificial fingernails; and</text> </paragraph> <paragraph num="(7)"> <text>Is excluded from working with ingredients or edible cannabis products, packaging materials, labeling materials, clean equipment, clean utensils, or clean linens:</text> <paragraph num="(a)"> <text>If the agent has any disease caused by:</text> <paragraph num="(i)"> <text>Entamoeba histolytica;</text> </paragraph> <paragraph num="(ii)"> <text>Vibrio cholera;</text> </paragraph> <paragraph num="(iii)"> <text>Staphylococcus aureus;</text> </paragraph> <paragraph num="(iv)"> <text>Escherichia coli O157:H7or other Enterohemorrhagic or Shiga-toxin producing Escherichia coli;</text> </paragraph> <paragraph num="(v)"> <text>Hepatitis A;</text> </paragraph> <paragraph num="(vi)"> <text>Salmonella spp.;</text> </paragraph> <paragraph num="(vii)"> <text>Shigella spp.;</text> </paragraph> <paragraph num="(viii)"> <text>Norovirus;</text> </paragraph> <paragraph num="(ix)"> <text>Group A beta-hemolytic Streptococcus; or</text> </paragraph> <paragraph num="(x)"> <text>Salmonella Typhi, typhoid-like fever or carrier thereof;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If the agent has an:</text> <paragraph num="(i)"> <text>Illness transmissible through food or edible cannabis products; or</text> </paragraph> <paragraph num="(ii)"> <text>Exposed and open sore or cut; or</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>If the agent is experiencing:</text> <paragraph num="(i)"> <text>Persistent sneezing, coughing, or a runny nose that causes discharges from the eyes, nose, or mouth;</text> </paragraph> <paragraph num="(ii)"> <text>Fever;</text> </paragraph> <paragraph num="(iii)"> <text>Diarrhea, unless a physician has certified the agent as noninfectious;</text> </paragraph> <paragraph num="(iv)"> <text>Vomiting; or</text> </paragraph> <paragraph num="(v)"> <text>Jaundice, unless a physician has certified the agent as noninfectious.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The premises shall ensure good personal hygiene by providing:</text> <paragraph num="(1)"> <text>Lockers or similar storage facilities for the secure storage of personal items in a designated non-working area;</text> </paragraph> <paragraph num="(2)"> <text>Adequate hand-washing facilities as set forth in this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Signage in each lavatory that instructs agents to wash their hands before returning to work;</text> </paragraph> <paragraph num="(4)"> <text>A water fountain or other water dispenser that provides potable water without the use of reusable cups;</text> </paragraph> <paragraph num="(5)"> <text>An area for agents to consume food and beverages that is not used in conjunction with the processing or storage of:</text> <paragraph num="(a)"> <text>Ingredients;</text> </paragraph> <paragraph num="(b)"> <text>Edible cannabis products;</text> </paragraph> <paragraph num="(c)"> <text>Packaging and labeling materials; or</text> </paragraph> <paragraph num="(d)"> <text>Cookware; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If necessary, to ensure safety and sanitation, sanitizer foot baths, footwear covers, or hand dips.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The permittee shall:</text> <paragraph num="(1)"> <text>Ensure that each agent who handles ingredients or edible cannabis products successfully completes a food handler certificate course, from an entity accredited by the American National Standards Institute (ANSI) or an equivalent food safety accrediting body:</text> <paragraph num="(a)"> <text>Within 90 days of commencing employment at the premises; and</text> </paragraph> <paragraph num="(b)"> <text>Every 3 years during employment; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Maintain a log of agent training in ingredient and edible cannabis product handling.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Edible Cannabis Product Processing — Manufacture."> <paragraph num="A."> <text>Potentially hazardous edible cannabis products may not be manufactured unless approved by the Administration.</text> </paragraph> <paragraph num="B."> <text>A permittee shall ensure:</text> <paragraph num="(1)"> <text>The consistent and safe manufacture of edible cannabis products;</text> </paragraph> <paragraph num="(2)"> <text>Pathogenic microorganisms are excluded or eliminated from edible cannabis products before being offered for human consumption;</text> </paragraph> <paragraph num="(3)"> <text>All edible cannabis products undergo thermal processing or another process scientifically proven to kill pathogenic microorganisms that pose a threat to human health, as outlined in applicable standard operating procedures and approved by the Administration;</text> </paragraph> <paragraph num="(4)"> <text>The heating, cooling, or re-heating of ingredients or edible cannabis products use methods that prevent contamination; and</text> </paragraph> <paragraph num="(5)"> <text>All edible cannabis products are safe for human consumption.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The permittee shall provide a shelf-life study in accordance with the Administration’s Technical Authority for cannabis testing, to prove the manufacturing processes prevent contamination of edible cannabis products or premature degradation of therapeutic compounds.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Transport of Edible Cannabis Products."> <paragraph num="A."> <text>If transporting or shipping edible cannabis products that require temperature control for safety and stability, a permittee shall ensure the vehicle or transportation equipment:</text> <paragraph num="(1)"> <text>Provides adequate temperature control to prevent the edible cannabis products from becoming unsafe during transport; and</text> </paragraph> <paragraph num="(2)"> <text>Complies with the requirements established in 21 CFR §1.908(c).</text> </paragraph> </paragraph> <paragraph num="B."> <text>A permittee shall maintain a detailed log of the temperature of the edible cannabis products at the time of departure for at least 2 years.</text> </paragraph> <paragraph num="C."> <text>The receiving licensee shall maintain a detailed log of the temperature of the edible cannabis products at the time of arrival at the licensed dispensary for at least 2 years.</text> </paragraph> <paragraph num="D."> <text>If any edible cannabis products are declined upon arrival to the licensed dispensary due to contamination, damage, or an unsafe temperature, the permittee shall, within 24 hours:</text> <paragraph num="(1)"> <text>Document the declination and the reason for the declination in the seed-to-sale tracking system; and</text> </paragraph> <paragraph num="(2)"> <text>Dispose of the rejected material in accordance with the permittee’s approved green waste disposal plan.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Micro Processor Premise and Operations."> <text>Micro processors may not process more cannabis than the limits established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(ii), Annotated Code of Maryland</text> </regulation> <regulation prefix="Regulation" num=".16" heading="Product Returned for Destruction and Disposal of Green Waste."> <paragraph num="A."> <text>A processor shall accept any product returned for destruction and record as green waste.</text> </paragraph> <paragraph num="B."> <text>A processor shall otherwise destroy any other product recorded as green waste in accordance with standard operating procedures.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Visitor to the Premises."> <paragraph num="A."> <text>When a visitor is admitted to an area of the premises used for cannabis operations, a registered agent shall:</text> <paragraph num="(1)"> <text>Log the visitor in and out;</text> </paragraph> <paragraph num="(2)"> <text>Retain with the log a photocopy of the visitor’s government-issued identification;</text> </paragraph> <paragraph num="(3)"> <text>Continuously, physically supervise the visitor while they are on the premises; and</text> </paragraph> <paragraph num="(4)"> <text>Ensure that the visitor does not touch any cannabis.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An Administration investigator is not subject to the visitor requirements established in §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>The processor shall maintain a log of all visitors for 2 years.</text> </paragraph> <paragraph num="D."> <text>A firefighter, a rescue squad member, law enforcement officer, or emergency medical services personnel who is actively responding to a call for emergency services is not subject to §A(1)—(3) of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Discrepancy, Theft, and Diversion Reporting."> <paragraph num="A."> <text>Discrepancy Reporting.</text> <paragraph num="(1)"> <text>If a processor discerns a discrepancy between the inventory of stock and the seed-to-sale tracking system outside of normal weight loss due to moisture loss and handling, the processor shall:</text> <paragraph num="(a)"> <text>Commence an investigation of the discrepancy within 1 business day; and</text> </paragraph> <paragraph num="(b)"> <text>If the processor cannot resolve the discrepancy within 30 business days, report the discrepancy to MCA.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to report an unresolved discrepancy may be used as evidence of diversion.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Theft or Diversion. If the processor finds evidence of a theft or diversion, the processor shall report the theft or diversion to the Administration within 1 business day.</text> </paragraph> <paragraph num="C."> <text>Within 30 business days of discovering the theft, diversion, or unresolved discrepancy, the processor shall:</text> <paragraph num="(1)"> <text>Complete an investigation;</text> </paragraph> <paragraph num="(2)"> <text>Amend its standard operating procedures, if necessary; and</text> </paragraph> <paragraph num="(3)"> <text>Send a report of the investigation to the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Standard Operating Procedures."> <paragraph num="A."> <text>A processor shall establish standard operating procedures for all aspects of:</text> <paragraph num="(1)"> <text>Inventory control, including:</text> <paragraph num="(a)"> <text>Identifying and tracking the processor’s stock of cannabis in the seed-to-sale tracking system; and</text> </paragraph> <paragraph num="(b)"> <text>Monthly physical inventory;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Receiving, shipping, and transporting cannabis or products containing cannabis;</text> </paragraph> <paragraph num="(3)"> <text>Sanitation, including:</text> <paragraph num="(a)"> <text>Storage of cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Maintaining the sanitation of equipment that comes into contact with cannabis; and</text> </paragraph> <paragraph num="(c)"> <text>Good hygiene practices and the wearing of protective clothing by agents;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Equipment maintenance and calibration;</text> </paragraph> <paragraph num="(5)"> <text>Handling, packaging, and labeling cannabis and cannabis products;</text> </paragraph> <paragraph num="(6)"> <text>Reworking or reprocessing a lot if the processor receives a test result that the lot does not meet specifications;</text> </paragraph> <paragraph num="(7)"> <text>Green waste procedures;</text> </paragraph> <paragraph num="(8)"> <text>Security and visitor procedures, including theft and diversion procedures;</text> </paragraph> <paragraph num="(9)"> <text>Storage, handling, and disposing of recalled materials;</text> </paragraph> <paragraph num="(10)"> <text>Producing cannabis concentrates and cannabis-infused products, including:</text> <paragraph num="(a)"> <text>Methods, equipment, solvents, and gases when processing cannabis concentrates and cannabis-infused products;</text> </paragraph> <paragraph num="(b)"> <text>Use of solvents in a professional grade, closed-loop extraction system designed to recover the solvents;</text> </paragraph> <paragraph num="(c)"> <text>Work in a spark-free environment with proper ventilation;</text> </paragraph> <paragraph num="(d)"> <text>Following all applicable OSHA regulations, and local fire, safety, and building codes in the processing and storage of the solvents; and</text> </paragraph> <paragraph num="(e)"> <text>If applicable, carbon dioxide extraction;</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Decontamination, including but not limited to:</text> <paragraph num="(a)"> <text>Preventing contamination;</text> </paragraph> <paragraph num="(b)"> <text>Investigating decontaminating after presumptive positive pathogen detection; and</text> </paragraph> <paragraph num="(c)"> <text>Remediation steps and resulting environmental analysis.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>If applicable, producing edible cannabis products, including receipt of ingredients, storage, equipment maintenance, sanitation, manufacture, and transport; and</text> </paragraph> <paragraph num="(13)"> <text>If applicable, co-locating with another licensee, including:</text> <paragraph num="(a)"> <text>Sharing equipment and production materials; and</text> </paragraph> <paragraph num="(b)"> <text>Maintaining independent and unique security and video surveillance control.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A processor’s standard operating procedures shall:</text> <paragraph num="(1)"> <text>Be available to each agent in a form the agent understands;</text> </paragraph> <paragraph num="(2)"> <text>Be available on-site for inspection by the Administration; and</text> </paragraph> <paragraph num="(3)"> <text>Accurately reflect the procedures used at the premises.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-401, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.19 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.19 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E adopted effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17D adopted effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18B amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19A amended effective May 26, 2025 (52:10 Md. R. 436); March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="12" heading="Cannabis Dispensary Operations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>Unless otherwise specified, this chapter applies to all business licensed to dispense cannabis under COMAR 14.17.06.08 or COMAR 14.17.07.08.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Standard Cannabis Dispensary."> <paragraph num="A."> <text>A dispensary licensed under COMAR 14.17.06.08 shall:</text> <paragraph num="(1)"> <text>Be located in Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Conform to all local zoning and planning requirements;</text> </paragraph> <paragraph num="(3)"> <text>Conspicuously display valid proof of dispensary licensure; and</text> </paragraph> <paragraph num="(4)"> <text>Provide accommodations for qualifying patients and registered caregivers in accordance with COMAR 14.17.04.05.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A dispensary may not make modifications or renovations to the standard dispensary premises licensed under COMAR 14.17.06.08 without the prior approval of Maryland Cannabis Administration.</text> </paragraph> <paragraph num="C."> <text>The Administration may require a dispensary licensed under this regulation to conspicuously display:</text> <paragraph num="(1)"> <text>Minimum purchase age and identification requirements; and</text> </paragraph> <paragraph num="(2)"> <text>Other information related to health and safety provided by the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Any display required by the Administration under §C of this regulation shall be in a manner and size determined by the Administration.</text> </paragraph> <paragraph num="E."> <text>A dispensary shall restrict access to the licensed premises to only:</text> <paragraph num="(1)"> <text>Qualifying patients;</text> </paragraph> <paragraph num="(2)"> <text>Registered caregivers; and</text> </paragraph> <paragraph num="(3)"> <text>Individuals 21 years old or older.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Notwithstanding §E of this regulation, a dispensary may allow children younger than 8 years old to enter the licensed premises if they are accompanied for the duration of their visit by a:</text> <paragraph num="(1)"> <text>Qualifying patient; or</text> </paragraph> <paragraph num="(2)"> <text>Registered caregiver.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A standard dispensary premises shall:</text> <paragraph num="(1)"> <text>Be constructed to prevent unauthorized entry; and</text> </paragraph> <paragraph num="(2)"> <text>Contain a secure room to store the cannabis inventory, which:</text> <paragraph num="(a)"> <text>Shall be constructed of concrete or similar building material that prevents unauthorized entry;</text> </paragraph> <paragraph num="(b)"> <text>May not be placed adjacent to an exterior wall of the premises; and</text> </paragraph> <paragraph num="(c)"> <text>Shall have only one entrance door that:</text> <paragraph num="(i)"> <text>Prevents unauthorized entry;</text> </paragraph> <paragraph num="(ii)"> <text>Is equipped with a cipher or chip-activated keyed lock or equivalent; and</text> </paragraph> <paragraph num="(iii)"> <text>Is not visible from public areas of the premises.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>A dispensary shall store its cannabis inventory in the secure room other than while the licensed dispensary is open for business and 2 hours before and 2 hours after.</text> </paragraph> <paragraph num="I."> <text>A dispensary may request an exemption to §H of this regulation for the purposes of conducting inventory review. Requests for an exemption shall be:</text> <paragraph num="(1)"> <text>Made in a manner prescribed by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Explicitly authorized by the Administration prior to the exemption.</text> </paragraph> </paragraph> <paragraph num="J."> <text>The licensed dispensary shall design and install lighting fixtures to ensure proper surveillance.</text> </paragraph> <paragraph num="K."> <text>Security Alarm Systems.</text> <paragraph num="(1)"> <text>A dispensary shall maintain a security alarm system that covers all:</text> <paragraph num="(a)"> <text>Perimeter entry points and portals at all premises;</text> </paragraph> <paragraph num="(b)"> <text>Rooms that hold cannabis;</text> </paragraph> <paragraph num="(c)"> <text>Locations where records are stored on-site; and</text> </paragraph> <paragraph num="(d)"> <text>Locations where records are stored off-site.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A security system shall:</text> <paragraph num="(a)"> <text>Be continuously monitored;</text> </paragraph> <paragraph num="(b)"> <text>Be capable of detecting smoke and fire;</text> </paragraph> <paragraph num="(c)"> <text>Be capable of detecting power loss;</text> </paragraph> <paragraph num="(d)"> <text>Include panic alarm devices mounted at convenient, readily accessible locations throughout the licensed premises;</text> </paragraph> <paragraph num="(e)"> <text>Remain operational until a licensed premises no longer has any cannabis, seeds, or cuttings on the premises; and</text> </paragraph> <paragraph num="(f)"> <text>Be equipped with auxiliary power sufficient to maintain operation for at least 48 hours.</text> </paragraph> </paragraph> </paragraph> <paragraph num="L."> <text>Video Surveillance Requirements.</text> <paragraph num="(1)"> <text>A dispensary shall maintain a motion-activated video surveillance recording system at all premises that:</text> <paragraph num="(a)"> <text>Records all activity in images of high quality and high resolution capable of clearly revealing facial detail;</text> </paragraph> <paragraph num="(b)"> <text>Operates 24-hours a day, 365 days a year without interruption; and</text> </paragraph> <paragraph num="(c)"> <text>Provides a date and time stamp for every recorded frame.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A dispensary shall post appropriate notices advising visitors of the video surveillance.</text> </paragraph> <paragraph num="(3)"> <text>A surveillance camera shall be located and operated to capture each exit from the premises.</text> </paragraph> <paragraph num="(4)"> <text>A surveillance camera shall capture activity at each:</text> <paragraph num="(a)"> <text>Entrance to an area where cannabis is packaged, stored, or dispensed; and</text> </paragraph> <paragraph num="(b)"> <text>Area where cannabis is packaged, stored, or dispensed.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Recordings of security video surveillance shall be:</text> <paragraph num="(a)"> <text>Access-limited;</text> </paragraph> <paragraph num="(b)"> <text>Secured by a security alarm system that is independent of the main premises security alarm system;</text> </paragraph> <paragraph num="(c)"> <text>In a format that can be easily accessed for investigational purposes; and</text> </paragraph> <paragraph num="(d)"> <text>Retained for a minimum of 90 calendar days.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Any recording of security video surveillance shall be made available to the Administration or law enforcement agency for just cause as requested within 48 hours.</text> </paragraph> <paragraph num="(7)"> <text>Violation.</text> <paragraph num="(a)"> <text>Failure to provide the Administration with any recording of video surveillance within 48 hours of a request from the Administration is a violation of COMAR 14.17.14.04.</text> </paragraph> <paragraph num="(b)"> <text>Each day of recording within the timeframe stated in §L(5)(d) that a dispensary fails to provide to the Administration constitutes a separate violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>Standard Dispensary Premises Organization.</text> <paragraph num="(1)"> <text>A dispensary premises shall be divided into a public zone and an operations zone.</text> </paragraph> <paragraph num="(2)"> <text>Public Zone.</text> <paragraph num="(a)"> <text>The public zone shall have:</text> <paragraph num="(i)"> <text>A waiting area open to the general public; and</text> </paragraph> <paragraph num="(ii)"> <text>A service area in which an adult-use consumer, qualifying patient, or caregiver may consult with a dispensary agent and receive cannabis.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The dispensary shall restrict entry into the service area to verified adult-use consumers, qualifying patients, and registered caregivers.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Operations Zone.</text> <paragraph num="(a)"> <text>All operations other than consulting with adult-use consumers, qualifying patients, and registered caregivers and dispensing cannabis shall be carried out in the operations zone.</text> </paragraph> <paragraph num="(b)"> <text>The operations zone shall be appropriately divided into separate areas for:</text> <paragraph num="(i)"> <text>Cannabis storage;</text> </paragraph> <paragraph num="(ii)"> <text>Cannabis preparation and packaging;</text> </paragraph> <paragraph num="(iii)"> <text>Use by dispensary agents for breaks; and</text> </paragraph> <paragraph num="(iv)"> <text>Changing clothing and dispensary agent lockers.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Tamper-evident logbooks or electronic identification logs shall document the movement of persons to and from the operations zone.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Appropriate signage shall clearly delineate the separate zones.</text> </paragraph> <paragraph num="(5)"> <text>Doors and other access points between zones shall be secured.</text> </paragraph> <paragraph num="(6)"> <text>Security alarms systems and video surveillance, as described in §§K and L of this regulation, shall be used to monitor the separation between zones.</text> </paragraph> <paragraph num="(7)"> <text>All cannabis, other than that being displayed, packaged, or dispensed during hours of operation, shall be kept in a secure room that complies with §G(2) of this regulation.</text> </paragraph> <paragraph num="(8)"> <text>No individual other than a dispensary agent may handle the inventory in a display case or elsewhere in the dispensary until dispensed.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Visitors.</text> <paragraph num="(1)"> <text>When a visitor is admitted to the operations zone of the premises, a registered dispensary agent shall:</text> <paragraph num="(a)"> <text>Log the visitor in and out;</text> </paragraph> <paragraph num="(b)"> <text>Retain with the log a photocopy of the visitor’s government-issued identification;</text> </paragraph> <paragraph num="(c)"> <text>Continuously, physically supervise the visitor while they are on the premises; and</text> </paragraph> <paragraph num="(d)"> <text>Ensure that the visitor does not touch any cannabis.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The dispensary shall maintain a log of all visitors to the operations zone for 2 years.</text> </paragraph> <paragraph num="(3)"> <text>An Administration investigator is not subject to the visitor requirements in this section.</text> </paragraph> <paragraph num="(4)"> <text>A firefighter, a rescue squad member, law enforcement officer, or emergency medical services personnel who is actively responding to a call for emergency services is not subject to §N(1)(a)—(c) of this regulation.</text> </paragraph> </paragraph> <paragraph num="O."> <text>Drive-through or Walk-up Dispensing Services.</text> <paragraph num="(1)"> <text>A dispensary providing drive-through or walk-up dispensing services shall:</text> <paragraph num="(a)"> <text>Dispense through a window or other opening in the exterior wall of a dispensary that enables a registered dispensary agent to serve an adult-use consumer, a qualifying patient, or a registered caregiver without a:</text> <paragraph num="(i)"> <text>Registered dispensary agent leaving the dispensary service area; or</text> </paragraph> <paragraph num="(ii)"> <text>If applicable, qualifying patient, registered caregiver, or adult-use consumer leaving their vehicle;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Pass a pre-operation inspection before use;</text> </paragraph> <paragraph num="(c)"> <text>Meet all other requirements for a dispensary service area, including:</text> <paragraph num="(i)"> <text>The window or opening in the exterior wall shall be constructed to prevent unauthorized entry;</text> </paragraph> <paragraph num="(ii)"> <text>Security lighting, alarms systems, and video surveillance, as described in this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Displaying the licensed dispensary’s license and hours of operation at the entrance to the drive-through dispensing zone; and</text> </paragraph> <paragraph num="(iv)"> <text>Secured doors and other access points between public and operations zones; and</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Adhere to its standard operating procedures and requirements for dispensing cannabis established in Regulation .04 of this chapter.</text> </paragraph> <paragraph num="(e)"> <text>Fulfill pre-orders in compliance with Regulation .08 of this chapter through the drive-through or walk-up dispensing method.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A dispensary that provides both drive-through and walk-up dispensing services shall designate separate windows or openings for each type of service.</text> </paragraph> </paragraph> <paragraph num="P."> <text>To provide curbside pick-up, a standard dispensary shall:</text> <paragraph num="(1)"> <text>Designate curbside pick-up parking spots within 100 feet from the dispensary’s entrance and ensure that dispensary agents only deliver cannabis or cannabis products to the designated parking spots;</text> </paragraph> <paragraph num="(2)"> <text>Capture the on-site delivery on its motion-activated video surveillance recording system as required in §L of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Fulfill pre-orders in compliance with Regulation .08 of this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>Adhere to:</text> <paragraph num="(a)"> <text>Its standard operating procedures; and</text> </paragraph> <paragraph num="(b)"> <text>Dispensing requirements in Regulation .04 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="Q."> <text>Cannabis Display. A dispensary may store cannabis in a clear, tamper-evident canister for display purposes, provided the following conditions are met:</text> <paragraph num="(1)"> <text>During hours of operation, the canister is:</text> <paragraph num="(a)"> <text>Stored out of reach behind the service area counter when not being actively examined by a qualifying patient, registered caregiver, or adult-use consumer; or</text> </paragraph> <paragraph num="(b)"> <text>Otherwise stored securely to prevent unauthorized removal of the canister;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Outside of hours of operation, the canister is stored in the dispensary’s secure room;</text> </paragraph> <paragraph num="(3)"> <text>Once the display is no longer in use, the dispensary green wastes the cannabis in accordance with its standard operating procedures;</text> </paragraph> <paragraph num="(4)"> <text>Product stored inside the display jars is not easily accessible or removable by qualifying patients, registered caregivers, or adult-use consumers; and</text> </paragraph> <paragraph num="(5)"> <text>Cannabis used for display is recorded in accordance with seed-to-sale tracking system procedures.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Micro Dispensary."> <paragraph num="A."> <text>A micro dispensary may store its inventory in up to three storage facilities:</text> <paragraph num="(1)"> <text>That it controls and operates, in accordance with §D of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Controlled and operated by a licensed grower, processor, or incubator space, in accordance with §D of this regulation; or</text> </paragraph> <paragraph num="(3)"> <text>Controlled and operated by a licensed standard dispensary, in accordance with Regulation .02 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A micro dispensary storing inventory in a storage facility controlled and operated by another licensee shall:</text> <paragraph num="(1)"> <text>Ensure each licensee’s cannabis inventory is physically separated and only accessible to the licensee’s agents and owners;</text> </paragraph> <paragraph num="(2)"> <text>Have equal, independent, and unique control over access to its cannabis inventory, including the ability to add or remove its badged agents to access any area or container in which their cannabis or cannabis products are stored; and</text> </paragraph> <paragraph num="(3)"> <text>Have equal independent and unique access to its video surveillance recordings, which shall be recorded and saved as required by §K of this regulation or COMAR 14.17.12.02L, whichever applies.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A micro dispensary shall ensure any cannabis or cannabis product has been transferred within the seed-to-sale tracking system to the control of the micro dispensary as prescribed in COMAR 14.17.09.03 prior to:</text> <paragraph num="(1)"> <text>Any delivery of the cannabis or cannabis product;</text> </paragraph> <paragraph num="(2)"> <text>Any transportation of the cannabis or cannabis product to a storage facility; and</text> </paragraph> <paragraph num="(3)"> <text>Any receipt of cannabis or cannabis product to a storage facility.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Except as specified in §A(3) of this regulation, a micro dispensary storage facility shall adhere to the following requirements:</text> <paragraph num="(1)"> <text>The storage facility shall:</text> <paragraph num="(a)"> <text>Be located in Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Maintain relevant and current building codes and standards;</text> </paragraph> <paragraph num="(c)"> <text>Be constructed to prevent unauthorized entry;</text> </paragraph> <paragraph num="(d)"> <text>In areas where cannabis is stored, provide adequate lighting, ventilation, temperature, humidity, space, and equipment to maintain product quality;</text> </paragraph> <paragraph num="(e)"> <text>Be maintained in a clean and orderly condition; and</text> </paragraph> <paragraph num="(f)"> <text>Be free from infestation by insects, rodents, birds, and pests of any kind.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The micro dispensary shall:</text> <paragraph num="(a)"> <text>Prohibit access to the storage facility to anyone other than:</text> <paragraph num="(i)"> <text>The micro dispensary owner;</text> </paragraph> <paragraph num="(ii)"> <text>The micro dispensary agents; and</text> </paragraph> <paragraph num="(iii)"> <text>If applicable, the owner and agents of the licensee that controls or operates the storage facility;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Ensure the storage facility is securely locked and protected from entry, except for the actual time required to remove, replace, or repackage cannabis;</text> </paragraph> <paragraph num="(c)"> <text>Design and install lighting fixtures to ensure proper surveillance;</text> </paragraph> <paragraph num="(d)"> <text>Maintain a security alarm system that covers all:</text> <paragraph num="(i)"> <text>Perimeter entry points and portals at all premises;</text> </paragraph> <paragraph num="(ii)"> <text>Rooms that hold cannabis;</text> </paragraph> <paragraph num="(iii)"> <text>Locations where records are stored on-site; and</text> </paragraph> <paragraph num="(iv)"> <text>Locations where records are stored off-site;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Ensure that the security system in §C(2)(d) of this regulation shall:</text> <paragraph num="(i)"> <text>Be continuously monitored;</text> </paragraph> <paragraph num="(ii)"> <text>Be capable of detecting smoke and fire;</text> </paragraph> <paragraph num="(iii)"> <text>Be capable of detecting power loss;</text> </paragraph> <paragraph num="(iv)"> <text>Include panic alarm devices mounted at convenient, readily accessible locations throughout the licensed premises;</text> </paragraph> <paragraph num="(v)"> <text>Remain operational until a licensed premises no longer has any cannabis, seeds, or cuttings on the premises; and</text> </paragraph> <paragraph num="(vi)"> <text>Be equipped with auxiliary power sufficient to maintain operation for at least 48 hours;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Maintain a motion-activated video surveillance recording system that:</text> <paragraph num="(i)"> <text>Records all activity in images of high quality and high resolution capable of clearly revealing facial detail;</text> </paragraph> <paragraph num="(ii)"> <text>Operates 24-hours a day, 365 days a year without interruption;</text> </paragraph> <paragraph num="(iii)"> <text>Provides a date and time stamp for every recorded frame;</text> </paragraph> <paragraph num="(iv)"> <text>Shall capture activity at each area and entrance to an area where cannabis is packaged, stored, or prepared for transport; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Keep all locks and security equipment, including video surveillance and alarm systems, in good working order.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Delivery Operations.</text> <paragraph num="(1)"> <text>A micro dispensary shall verify that the individual placing the order is a consumer who is at least 21 years old, a qualifying patient, or a registered caregiver prior to order placement, using an ordering system that complies with Regulation .08 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>A micro dispensary shall only travel:</text> <paragraph num="(a)"> <text>Between licensees, registrants, or from one delivery address to another delivery address; and</text> </paragraph> <paragraph num="(b)"> <text>In Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A micro dispensary shall only make deliveries to residences as defined in COMAR 14.17.01 and medical facilities in the authorized service area.</text> </paragraph> <paragraph num="(4)"> <text>Agents conducting deliveries shall have on their person:</text> <paragraph num="(a)"> <text>Their current, active driver’s license; and</text> </paragraph> <paragraph num="(b)"> <text>Administration-issued proof of the micro dispensary’s licensure and their own registration.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>While in transit, delivery agents may not wear any clothing or symbols that may indicate ownership or possession of cannabis.</text> </paragraph> <paragraph num="(6)"> <text>Each secure cannabis transport vehicle shall be operated by at least one registered agent.</text> </paragraph> <paragraph num="(7)"> <text>Only registered agents may occupy the delivery vehicle while the vehicle contains cannabis or cannabis products.</text> </paragraph> <paragraph num="(8)"> <text>All cannabis shall be transported in one or more locked and secure storage containers which may not be accessible while in transit.</text> </paragraph> <paragraph num="(9)"> <text>A micro dispensary agent shall transport cannabis or cannabis products in an enclosed vehicle that:</text> <paragraph num="(a)"> <text>Has and displays a current vehicle registration;</text> </paragraph> <paragraph num="(b)"> <text>Is insured as required by law;</text> </paragraph> <paragraph num="(c)"> <text>Is equipped with:</text> <paragraph num="(i)"> <text>A global positioning system (GPS) that enables the micro dispensary to monitor the vehicle’s location for the entirety of its delivery routes;</text> </paragraph> <paragraph num="(ii)"> <text>Locked and secure storage containers anchored to the inside of the vehicle; and</text> </paragraph> <paragraph num="(iii)"> <text>A motion-activated video-surveillance system that captures activity around all storage containers that contain cannabis or cannabis products;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Conceals storage containers so they are not visible or identifiable from outside of the vehicle; and</text> </paragraph> <paragraph num="(e)"> <text>Does not display any sign or illustration related to cannabis, cannabis products, or a cannabis licensee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>A micro dispensary shall:</text> <paragraph num="(1)"> <text>Timely and accurately track its stock of cannabis in the seed-to-sale tracking system from the time it is acquired by the micro dispensary to the time it is delivered and dispensed to a qualifying patient, registered caregiver, or adult-use consumer;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that all cannabis other than that being packaged or dispensed during hours of operation is kept in the storage facility;</text> </paragraph> <paragraph num="(3)"> <text>Follow its standard operating procedure for examining at specified regular interval the GPS records of all delivery vehicles, including stops made along the delivery route.</text> </paragraph> <paragraph num="(4)"> <text>When purchasing cannabis from another licensee, coordinate with the licensee to create an electronic manifest to record the chain of custody for each cannabis shipment in accordance with COMAR 14.17.09.03E and F.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A micro dispensary licensed to dispense cannabis under COMAR 14.17.07.07 may not:</text> <paragraph num="(1)"> <text>Transport cannabis or cannabis products not associated with an active invoice, order, or product manifest;</text> </paragraph> <paragraph num="(2)"> <text>Transport cannabis or cannabis products in any vehicle noncompliant with §D(10) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Dispense cannabis or cannabis products without a prior order submitted to the licensed business;</text> </paragraph> <paragraph num="(4)"> <text>Dispense cannabis or cannabis products from the storage facility premises; or</text> </paragraph> <paragraph num="(5)"> <text>Carry cannabis or cannabis products in the delivery vehicle with a value in excess of $5,000 at any time.</text> </paragraph> </paragraph> <paragraph num="H."> <text>For the purposes §G(5) of this regulation, the value of cannabis goods shall be determined using the current retail price of all cannabis or cannabis products carried by or within the delivery vehicle.</text> </paragraph> <paragraph num="I."> <text>A micro dispensary owner shall be a registered agent if they work or volunteer in any operational areas of the premises, including delivery vehicles.</text> </paragraph> <paragraph num="J."> <text>Global Positioning System (GPS) and Video Surveillance Record Requirements.</text> <paragraph num="(1)"> <text>GPS and video surveillance recordings required in this regulation shall be:</text> <paragraph num="(a)"> <text>Access-limited;</text> </paragraph> <paragraph num="(b)"> <text>In a format that can be easily accessed for investigational purposes;</text> </paragraph> <paragraph num="(c)"> <text>Retained for a minimum of 90 calendar days; and</text> </paragraph> <paragraph num="(d)"> <text>Made available to the Administration or law enforcement agency for just cause as requested within 48 hours.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Violation.</text> <paragraph num="(a)"> <text>Failure to provide the Administration with any GPS or video surveillance record within 48 hours of a request from the Administration is a violation of COMAR 14.17.14.04.</text> </paragraph> <paragraph num="(b)"> <text>Each day of recording within the timeframe stated in §J(1)(c) of this regulation that a micro dispensary fails to provide to the Administration constitutes a separate violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>Visitors.</text> <paragraph num="(1)"> <text>When a visitor is admitted to the operations zone of the premises, a registered dispensary agent shall:</text> <paragraph num="(a)"> <text>Log the visitor in and out;</text> </paragraph> <paragraph num="(b)"> <text>Retain with the log a photocopy of the visitor’s government-issued identification;</text> </paragraph> <paragraph num="(c)"> <text>Continuously, physically supervise the visitor while they are on the premises; and</text> </paragraph> <paragraph num="(d)"> <text>Ensure that the visitor does not touch any cannabis.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The dispensary shall maintain a log of all visitors to the operations zone for 2 years.</text> </paragraph> <paragraph num="(3)"> <text>An Administration investigator is not subject to the visitor requirements in this section.</text> </paragraph> <paragraph num="(4)"> <text>A firefighter, a rescue squad member, or emergency services personnel who is actively responding to a call for emergency services is not subject to §K(1)(a)—(c) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Dispensary Operations."> <paragraph num="A."> <text>Dispensing Medical Cannabis.</text> <paragraph num="(1)"> <text>A dispensary agent shall dispense medical cannabis only from the service area or other area as designated by the Administration in Regulations .02 and .03 of this chapter to a qualifying patient or caregiver who has presented:</text> <paragraph num="(a)"> <text>An Administration-issued patient or caregiver identification number; and</text> </paragraph> <paragraph num="(b)"> <text>A valid government-issued photo identification.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Before any distribution of medical cannabis, a dispensary agent shall query the Administration data network using a unique log-in that identifies the registered dispensary agent and verify:</text> <paragraph num="(a)"> <text>That the qualifying patient or caregiver is currently registered;</text> </paragraph> <paragraph num="(b)"> <text>That a certifying provider issued a valid written certification to the qualifying patient;</text> </paragraph> <paragraph num="(c)"> <text>That the amount of medical cannabis that has already been dispensed pursuant to the written certification; and</text> </paragraph> <paragraph num="(d)"> <text>Whether a qualifying patient is actively enrolled in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System, and therefore, eligible for discounted medical cannabis pursuant to COMAR 14.17.04.06.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A dispensary agent may provide information on:</text> <paragraph num="(a)"> <text>The available types of medical cannabis, cannabis varieties, and medical cannabis finished products;</text> </paragraph> <paragraph num="(b)"> <text>Methods by which medical cannabis can be taken; and</text> </paragraph> <paragraph num="(c)"> <text>How unused cannabis may be returned for disposal.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>30-Day Supply.</text> <paragraph num="(a)"> <text>A qualifying patient or caregiver may obtain a portion of a 30-day supply at any time once the written certification is presented to a licensed dispensary, provided the portion being sought when added to portions previously obtained does not exceed a 30-day supply.</text> </paragraph> <paragraph num="(b)"> <text>The dispensary agent shall enter the weight of usable cannabis or the weight of delta-9-tetrahydrocannabinol (THC) dispensed in the Administration data network.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A dispensary agent may decline to dispense medical cannabis to a qualifying patient or caregiver if, in the dispensary agent’s professional opinion, the patient or caregiver appears to be currently under the influence of drugs or alcohol.</text> </paragraph> <paragraph num="(6)"> <text>A dispensary may not distribute a sample of medical cannabis.</text> </paragraph> <paragraph num="(7)"> <text>If not used to purchase medical cannabis within 120 days of issuance, a written certification becomes null and void.</text> </paragraph> <paragraph num="(8)"> <text>Any dispensing to a qualified patient or registered caregiver shall be recorded by the dispensary agent as a sale of medical cannabis using the seed-to-sale tracking system.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Dispensing Adult-Use Cannabis.</text> <paragraph num="(1)"> <text>A dispensary agent shall dispense cannabis only from the service area or other area as designated by the Administration in Regulations .02 and .03 of this chapter to a consumer who has presented a government-issued photo identification card that is valid, unexpired, and contains the consumer’s birth date.</text> </paragraph> <paragraph num="(2)"> <text>A government-issued identification card under §B(1) of this regulation includes:</text> <paragraph num="(a)"> <text>State driver’s license;</text> </paragraph> <paragraph num="(b)"> <text>U.S. passport;</text> </paragraph> <paragraph num="(c)"> <text>U.S. passport card;</text> </paragraph> <paragraph num="(d)"> <text>Non-driver’s state photo ID card;</text> </paragraph> <paragraph num="(e)"> <text>Foreign passport;</text> </paragraph> <paragraph num="(f)"> <text>U.S. military ID card; and</text> </paragraph> <paragraph num="(g)"> <text>Tribal card.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A government-issued photo identification card does not include a student identification card issued by a public institution or university.</text> </paragraph> <paragraph num="(4)"> <text>Before any distribution of cannabis, a dispensary agent shall log in to the Administration data network using a unique log-in that identifies the dispensary agent.</text> </paragraph> <paragraph num="(5)"> <text>At the point of sale, a dispensary agent shall verify that the consumer is 21 years old or older using the consumer’s government-issued photo identification.</text> </paragraph> <paragraph num="(6)"> <text>A dispensary agent may provide information on:</text> <paragraph num="(a)"> <text>The available types of cannabis, cannabis varieties, and cannabis finished products;</text> </paragraph> <paragraph num="(b)"> <text>Methods of cannabis administration; and</text> </paragraph> <paragraph num="(c)"> <text>How to return unused cannabis for disposal.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Sales Limits.</text> <paragraph num="(a)"> <text>A dispensary agent may not knowingly dispense to an individual an amount of cannabis or cannabis products greater than the personal use amount under Criminal Law Article, §5-101, Annotated Code of Maryland, in a single day.</text> </paragraph> <paragraph num="(b)"> <text>For the purposes of calculating the personal use amount of cannabis that can be dispensed, an individual may not purchase more than:</text> <paragraph num="(i)"> <text>1.5 ounces of usable cannabis products as defined in COMAR 14.17.01;</text> </paragraph> <paragraph num="(ii)"> <text>12 grams of concentrated cannabis products; or</text> </paragraph> <paragraph num="(iii)"> <text>Edible cannabis products, capsules, and tinctures that do not exceed 750 milligrams of tetrahydrocannabinol.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For the purpose of determining sales limits under this subsection, cannabis vaporizing devices shall be weighed and considered as concentrated cannabis products.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>A dispensary agent may decline to dispense cannabis to a consumer if, in the dispensary agent’s professional opinion, the consumer appears to be:</text> <paragraph num="(a)"> <text>Currently under the influence of drugs or alcohol;</text> </paragraph> <paragraph num="(b)"> <text>Attempting to purchase cannabis products for resale or diversion; or</text> </paragraph> <paragraph num="(c)"> <text>Obtaining an amount of cannabis products greater than the personal use amounts under §B(7) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Consumers purchasing cannabis under this section may purchase:</text> <paragraph num="(a)"> <text>Usable cannabis products as specified in COMAR 14.17.13.11;</text> </paragraph> <paragraph num="(b)"> <text>Cannabis vaporizing devices as specified in COMAR 14.17.13.08;</text> </paragraph> <paragraph num="(c)"> <text>Concentrated cannabis products as specified in COMAR 14.17.13.10;</text> </paragraph> <paragraph num="(d)"> <text>Home cultivation products;</text> </paragraph> <paragraph num="(e)"> <text>Infused non-edible cannabis products;</text> </paragraph> <paragraph num="(f)"> <text>Edible cannabis products under COMAR 14.17.13.05 and capsules, and tinctures under COMAR 14.17.13.06 with up to:</text> <paragraph num="(i)"> <text>10 milligrams of THC per serving; and</text> </paragraph> <paragraph num="(ii)"> <text>100 milligrams of THC per container.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(10)"> <text>Consumer Profiles. A dispensary may not:</text> <paragraph num="(a)"> <text>Use an adult-use consumer’s personal information, including records of their purchases, to create or maintain a customer profile without the consumer’s express permission; or</text> </paragraph> <paragraph num="(b)"> <text>Deny an adult-use consumer the opportunity to purchase adult-use cannabis exclusively on the basis that the customer does not consent to the storage and use of their personal information.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Dispensing Controls.</text> <paragraph num="(1)"> <text>A dispensary may not sell, transfer, or deliver cannabis or cannabis products unless the licensee verifies by means of a valid driver’s license or other government–issued photo identification containing the bearer’s date of birth, in accordance with Alcoholic Beverages and Cannabis Article, §36-1101(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A dispensary shall use the seed-to-sale tracking system to track its stock of cannabis from the time it is received by the dispensary to the time it is delivered or dispensed to another licensee, a registrant, a qualifying patient, registered caregiver, or adult-use consumer.</text> </paragraph> <paragraph num="(3)"> <text>A dispensary may not distribute samples of cannabis or cannabis products to consumers.</text> </paragraph> <paragraph num="(4)"> <text>A dispensary agent or owner may not dispense cannabis to themselves.</text> </paragraph> <paragraph num="(5)"> <text>If a dispensary offers reduced cost or discount cannabis or cannabis products to an agent, the reduced cost or discount available shall be distributed in accordance with the standard operating procedure.</text> </paragraph> </paragraph> <paragraph num="D."> <text>At least monthly, a dispensary shall conduct a physical inventory of its stock of cannabis and compare the physical inventory of stock with the stock reflected in seed-to-sale tracking system.</text> </paragraph> <paragraph num="E."> <text>Upon request by a qualifying patient, registered caregiver, or adult-use consumer, a dispensary shall display any labeling information required under COMAR 14.17.18.03 in an easily readable format.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Coordination of Enforcement Efforts Between Maryland Cannabis Administration and the Comptroller of Maryland."> <paragraph num="A."> <text>The Administration may query the seed-to-sale tracking system and shall, upon request from the Comptroller of Maryland, provide information from the seed-to-sale tracking system to the Comptroller of Maryland to ensure proper compliance, collection, and assessment of the sales and use tax by dispensaries and on-site consumption establishments.</text> </paragraph> <paragraph num="B."> <text>If a dispensary fails to pay a tax to the Office of the Comptroller when due under Tax-General Article, Annotated Code of Maryland, the Administration may:</text> <paragraph num="(1)"> <text>Levy a fine; and</text> </paragraph> <paragraph num="(2)"> <text>Restrict, suspend, or revoke the cannabis license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Product Reservations and Trade Practices."> <paragraph num="A."> <text>Products not authorized for adult-use consumers under Regulation .04B of this chapter shall only be sold, distributed, or otherwise dispensed to qualifying patients and caregivers.</text> </paragraph> <paragraph num="B."> <text>Subject to §§C and D of this regulation, a dispensary licensed under COMAR 14.17.06.08 or COMAR 14.17.07.07 shall ensure at least 25 percent of product available for retail sales are products grown, manufactured, extracted, or otherwise produced by:</text> <paragraph num="(1)"> <text>Licensees that have no common ownership interest or control with the dispensary licensee; and</text> </paragraph> <paragraph num="(2)"> <text>Social equity licensees as defined in COMAR 14.17.01.</text> </paragraph> </paragraph> <paragraph num="C."> <text>In fulfilling the requirement in §B of this regulation, a dispensary shall prioritize social equity licensees.</text> </paragraph> <paragraph num="D."> <text>Social equity dispensary licensees shall ensure at least 25 percent of product available for retail sales are products grown, manufactured, extracted, or otherwise produced by licensees that have no common ownership interest or control with the dispensary licensee.</text> </paragraph> <paragraph num="E."> <text>The Administration may query the seed-to-sale tracking system to ensure compliance with this regulation.</text> </paragraph> <paragraph num="F."> <text>If a dispensary is found in violation of this regulation, the Administration may:</text> <paragraph num="(1)"> <text>Issue a fine; and</text> </paragraph> <paragraph num="(2)"> <text>Restrict, suspend, or revoke the license.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Product Returned for Destruction and Disposal of Green Waste."> <paragraph num="A."> <text>Product Returned for Destruction. A dispensary shall:</text> <paragraph num="(1)"> <text>Accept and record the return of any cannabis from an adult-use consumer, qualifying patient, or a registered caregiver; and</text> </paragraph> <paragraph num="(2)"> <text>Destroy the returned cannabis.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Disposal of Green Waste. A dispensary may either:</text> <paragraph num="(1)"> <text>Ship any cannabis that is surplus or out of date or that is waste from processing or repackaging to a licensed grower for disposal; or</text> </paragraph> <paragraph num="(2)"> <text>Dispose of such material in accordance with the dispensary’s approved waste disposal plan.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Online, Telephone, or Other Remote Ordering."> <paragraph num="A."> <text>A dispensary may use an online, telephone or other remote order system to place pre-orders for:</text> <paragraph num="(1)"> <text>Pick-up at a standard dispensary; and</text> </paragraph> <paragraph num="(2)"> <text>Delivery by a micro dispensary.</text> </paragraph> </paragraph> <paragraph num="B."> <text>To fulfill an order, a dispensary shall comply with dispensing requirements in Regulation .04 of this chapter.</text> </paragraph> <paragraph num="C."> <text>An ordering system for cannabis or cannabis products shall:</text> <paragraph num="(1)"> <text>Prior to order placement, validate the individual is 21 years old or older, a qualifying patient, or a registered caregiver by:</text> <paragraph num="(a)"> <text>Employing a neutral age screen to verify the individual is 21 years old or older or an alternative screening mechanism to verify the individual is a qualifying patient, or a registered caregiver; or</text> </paragraph> <paragraph num="(b)"> <text>Using another method to validate that the individual is 21 years old or older, a qualifying patient, or a registered caregiver;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Include a notice that a valid, government-issued photo identification card as set forth in Regulation .04B(2) of this chapter is required to receive the order of cannabis or cannabis products; and</text> </paragraph> <paragraph num="(3)"> <text>Collect the name and date of birth of the individual submitting the order.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Until the consumer, qualifying patient, or registered caregiver presents valid identification as set forth in Regulation .04A(1) or B(2) of this chapter, whichever applies, and the dispensary agent confirms that the identification card displays a name and date of birth that matches the information collected in §C(3) of this regulation, a dispensary may not:</text> <paragraph num="(1)"> <text>Dispense cannabis products; or</text> </paragraph> <paragraph num="(2)"> <text>Collect payment.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A dispensary may not sell or otherwise transfer any cannabis or cannabis products to a consumer through an unlicensed third party, intermediary business, broker, or any other business or entity.</text> </paragraph> <paragraph num="F."> <text>Effective July 1, 2025, only a micro dispensary may deliver cannabis to qualifying patients, registered caregivers, or adult-use consumers in accordance with Regulation .03 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Hours of Operations."> <paragraph num="A."> <text>A dispensary may not conduct sales before 8 a.m. or past 11 p.m.</text> </paragraph> <paragraph num="B."> <text>A dispensary shall display its hours of operation at the main entrance to the premises.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Discrepancy, Theft, or Diversion."> <paragraph num="A."> <text>Discrepancy Reporting.</text> <paragraph num="(1)"> <text>If a dispensary discerns a discrepancy between the inventory of stock and the seed-to-sale tracking system of greater than 0.5 percent of total product weight or items, the dispensary shall:</text> <paragraph num="(a)"> <text>Commence an investigation of the discrepancy within 1 business day; and</text> </paragraph> <paragraph num="(b)"> <text>If the dispensary cannot resolve the discrepancy within 30 business days, report the discrepancy to MCA.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Failure to report an unresolved discrepancy may be used as evidence of diversion.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Theft or Diversion. If the dispensary finds evidence of a theft or diversion, the dispensary shall report the theft or diversion to the Administration within 1 business day.</text> </paragraph> <paragraph num="C."> <text>Within 30 business days of discovering the theft, diversion, or unresolved discrepancy, the dispensary shall:</text> <paragraph num="(1)"> <text>Complete an investigation;</text> </paragraph> <paragraph num="(2)"> <text>Amend its standard operating procedures, if necessary; and</text> </paragraph> <paragraph num="(3)"> <text>Send a report of the investigation to the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A dispensary shall use the seed-to-sale tracking system for explanation and reporting of discrepancies less than 0.5 percent.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Standard Operating Procedures."> <paragraph num="A."> <text>A dispensary shall establish standard operating procedures in accordance with this subtitle for all aspects of:</text> <paragraph num="(1)"> <text>Inventory control, including:</text> <paragraph num="(a)"> <text>Tracking the dispensary’s stock of cannabis in the seed-to-sale tracking system from the time it is received by the dispensary to the time it is delivered or dispensed to another licensee, a registrant, a qualifying patient, a registered caregiver, or an adult-use consumer; and</text> </paragraph> <paragraph num="(b)"> <text>Monthly physical inventory;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Receiving cannabis or products containing cannabis;</text> </paragraph> <paragraph num="(3)"> <text>Receipt, storage, and distribution of edible cannabis products;</text> </paragraph> <paragraph num="(4)"> <text>Safe and sanitary storage of cannabis;</text> </paragraph> <paragraph num="(5)"> <text>Equipment cleaning, maintenance, calibration;</text> </paragraph> <paragraph num="(6)"> <text>Handling, packaging, and labeling cannabis and cannabis products;</text> </paragraph> <paragraph num="(7)"> <text>Green waste procedures;</text> </paragraph> <paragraph num="(8)"> <text>Security and visitor procedures, including theft and diversion prevention;</text> </paragraph> <paragraph num="(9)"> <text>Storage, handling, and disposing of recalled materials;</text> </paragraph> <paragraph num="(10)"> <text>Dispensing cannabis and cannabis products to qualifying patients, registered caregivers, and adult-use consumers; and</text> </paragraph> <paragraph num="(11)"> <text>If applicable:</text> <paragraph num="(a)"> <text>Delivering cannabis to a qualifying patient, a registered caregiver, or an adult-use consumer;</text> </paragraph> <paragraph num="(b)"> <text>Repackaging cannabis into usable cannabis products;</text> </paragraph> <paragraph num="(c)"> <text>Providing reduced cost or discount cannabis or cannabis products to its agents;</text> </paragraph> <paragraph num="(d)"> <text>Drive-through or walk-up window dispensing;</text> </paragraph> <paragraph num="(e)"> <text>Curbside dispensing; and</text> </paragraph> <paragraph num="(f)"> <text>Examining at a specified regular interval GPS records of all delivery vehicles, including stops made along the delivery route.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A dispensary’s standard operating procedures shall:</text> <paragraph num="(1)"> <text>Be available to each agent in a form the agent understands;</text> </paragraph> <paragraph num="(2)"> <text>Be available on-site for inspection by the Administration; and</text> </paragraph> <paragraph num="(3)"> <text>Accurately reflect the procedures used at the premises.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, 36-401, and 36-410, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02M amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02N amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02O amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02P amended effective April 14, 2025 (52:7 Md. R. 324); March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02Q adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, D amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10A, B amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10D adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="13" heading="Cannabis Products"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Current Good Manufacturing Practices” or “cGMP” means a manufacturing process that complies with 21 CFR Part 111 or 21 CFR Part 210.</text> </paragraph> <paragraph num="(2)"> <text>“Food” means any substance that is used as food or drink for human beings or as a component of food or drink for human beings.</text> </paragraph> <paragraph num="(3)"> <text>“Food ingredient” means a substance that is used as a component of food, including:</text> <paragraph num="(a)"> <text>Flavoring;</text> </paragraph> <paragraph num="(b)"> <text>Food coloring; and</text> </paragraph> <paragraph num="(c)"> <text>Preservatives.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Ingredient” means any component of an edible cannabis product that is intended for human consumption, approved by the Administration, and composed of:</text> <paragraph num="(a)"> <text>Food or food ingredients; or</text> </paragraph> <paragraph num="(b)"> <text>Cannabis.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Permittee” means a licensed processor authorized by the Administration to manufacture edible cannabis products.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Finished Products for Retail Sale."> <paragraph num="A."> <text>A dispensary is only authorized to dispense a finished product that has been sealed, labeled, and packaged in accordance with COMAR 14.17.18.</text> </paragraph> <paragraph num="B."> <text>Except as described in Regulation .11 of this chapter, a dispensary shall only obtain finished cannabis products from a licensed grower or processor.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Product Reservations."> <paragraph num="A."> <text>Medical Cannabis Products.</text> <paragraph num="(1)"> <text>The Administration shall require that certain finished cannabis products be dispensed only to qualifying patients or registered caregivers to:</text> <paragraph num="(a)"> <text>Ensure adequate supply of medical cannabis products; and</text> </paragraph> <paragraph num="(b)"> <text>Reserve high potency products for medical patients.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No part of this section may be construed to prohibit the dispensing of other finished cannabis products to qualifying patients in accordance with COMAR 14.17.12.04, including:</text> <paragraph num="(a)"> <text>Cannabis vaporizing devices;</text> </paragraph> <paragraph num="(b)"> <text>Home cultivation products;</text> </paragraph> <paragraph num="(c)"> <text>Usable cannabis products; and</text> </paragraph> <paragraph num="(d)"> <text>Edible cannabis products containing less than:</text> <paragraph num="(i)"> <text>10 milligrams of tetrahydrocannabinol per serving; or</text> </paragraph> <paragraph num="(ii)"> <text>100 milligrams of tetrahydrocannabinol per package.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Adult-Use Cannabis Products. Individuals purchasing cannabis products for adult-use may purchase:</text> <paragraph num="(1)"> <text>Cannabis vaporizing devices;</text> </paragraph> <paragraph num="(2)"> <text>Concentrated cannabis products with a total weight of 1 gram or less;</text> </paragraph> <paragraph num="(3)"> <text>Home cultivation products;</text> </paragraph> <paragraph num="(4)"> <text>Usable cannabis products;</text> </paragraph> <paragraph num="(5)"> <text>Infused non-edible cannabis products; and</text> </paragraph> <paragraph num="(6)"> <text>Edible cannabis products, tinctures, and capsules containing equal to or less than:</text> <paragraph num="(a)"> <text>10 milligrams of tetrahydrocannabinol per serving; and</text> </paragraph> <paragraph num="(b)"> <text>100 milligrams of tetrahydrocannabinol per package.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Infused pre-rolls are not subject to the weight limit in §B(2) of this regulation.</text> </paragraph> <paragraph num="D."> <text>Licensed dispensaries shall otherwise provide products for retail sale in accordance with COMAR 14.17.12.06.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Product Testing."> <paragraph num="A."> <text>Finished cannabis products for retail sale shall be tested by an independent testing laboratory authorized by the Administration in accordance with COMAR 14.17.08 prior to any sale, distribution, or dispensing.</text> </paragraph> <paragraph num="B."> <text>Testing, sampling, and other laboratory protocols shall be performed by the independent testing laboratory in accordance with the Administration’s Technical Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Edible Cannabis Products."> <paragraph num="A."> <text>General Requirements.</text> <paragraph num="(1)"> <text>Before engaging in the business of possessing, processing, packaging, labeling, transferring, transporting, selling, or distributing edible cannabis products to a dispensary, a licensed processor shall obtain a permit from the Administration in accordance with COMAR 14.17.11.05B.</text> </paragraph> <paragraph num="(2)"> <text>Prior to offering the products for distribution or sale to a licensed dispensary, a permittee shall obtain approval from the Administration for all edible cannabis products by submitting a request in in a manner prescribed by the Administration.</text> </paragraph> <paragraph num="(3)"> <text>A permittee seeking approval to offer an edible cannabis product shall submit:</text> <paragraph num="(a)"> <text>A photograph, digital image, or digital rendering of the product, labeling, and packaging;</text> </paragraph> <paragraph num="(b)"> <text>The varying levels of potency and dosing of the edible cannabis product;</text> </paragraph> <paragraph num="(c)"> <text>The recipe, including the production process, for manufacturing the edible cannabis product; and</text> </paragraph> <paragraph num="(d)"> <text>Any scientific studies or laboratory testing results supporting the stability and approximate expiration date of the edible cannabis product.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Administration shall review and approve each edible cannabis product before the product may be commercially manufactured or sold by a permittee, to ensure the:</text> <paragraph num="(a)"> <text>Product complies with the requirements of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Safety of minors.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Dosage Requirements.</text> <paragraph num="(1)"> <text>Unless expressly authorized by the Administration, an edible cannabis product may not contain more than:</text> <paragraph num="(a)"> <text>10 milligrams of THC per serving; and</text> </paragraph> <paragraph num="(b)"> <text>100 milligrams of THC per package.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Each single serving contained in a package of a multiple-serving edible cannabis product shall be physically separated in a way that enables an individual to determine how much of the edible cannabis product constitutes a single serving.</text> </paragraph> <paragraph num="(3)"> <text>An intact product form containing multiple servings does not meet the requirements of §B(2) of this regulation if it has demarcations or delineations on the product to indicate individual servings.</text> </paragraph> <paragraph num="(4)"> <text>The Administration may approve a request to manufacture a high potency edible cannabis product containing more than 10 milligrams of THC per serving or 100 milligrams of THC per package if:</text> <paragraph num="(a)"> <text>A permittee submits a request in a form prescribed by the Administration; and</text> </paragraph> <paragraph num="(b)"> <text>The request complies with §G of this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An edible cannabis product consisting of multiple servings shall be homogenized so that each serving contains the same concentration of THC.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Appearance of Edible Cannabis Products.</text> <paragraph num="(1)"> <text>A permittee shall only manufacture or distribute solid edible cannabis product in geometric shapes.</text> </paragraph> <paragraph num="(2)"> <text>A permittee may not manufacture an edible cannabis product that due to its shape, design, or flavor is likely to appeal to minors.</text> </paragraph> <paragraph num="(3)"> <text>The manufacture or sale of edibles in the following shapes is prohibited:</text> <paragraph num="(a)"> <text>Human, animal, toy, or fruit;</text> </paragraph> <paragraph num="(b)"> <text>A shape that bears the likeness or contains characteristics of a realistic or fictional human, animal, or fruit, including artistic, caricature, or cartoon renderings; and</text> </paragraph> <paragraph num="(c)"> <text>A commercially available food or beverage product that targets or is primarily marketed to minors.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Liquid Edible Product Requirements.</text> <paragraph num="(1)"> <text>A liquid edible product container may not contain more than a single serving per container.</text> </paragraph> <paragraph num="(2)"> <text>A single serving of a liquid edible product may not exceed 10 milligrams of THC per container.</text> </paragraph> <paragraph num="(3)"> <text>A liquid edible product shall otherwise comply with this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Prohibited Products.</text> <paragraph num="(1)"> <text>Edible cannabis products may not contain:</text> <paragraph num="(a)"> <text>Meat;</text> </paragraph> <paragraph num="(b)"> <text>Seafood;</text> </paragraph> <paragraph num="(c)"> <text>Unpasteurized eggs; or</text> </paragraph> <paragraph num="(d)"> <text>Unpasteurized dairy of any type.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The following types of products may not be sold:</text> <paragraph num="(a)"> <text>Alcoholic beverages, as defined in Alcoholic Beverage and Cannabis Article, §1-101, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>Any product containing any non-cannabis additive that would increase potency or toxicity, or that would create an unsafe combination with other psychoactive substances, including nicotine and caffeine.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The prohibition in §E(2)(b) of this regulation does not apply to products containing naturally occurring caffeine, such as coffee, tea, or chocolate.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Compliance with State and Federal Food Safety Requirements. In addition to the other requirements set forth in this chapter, a permittee shall comply with all applicable food safety regulations, including:</text> <paragraph num="(1)"> <text>21 CFR, as amended;</text> </paragraph> <paragraph num="(2)"> <text>21 U.S.C. §343, as amended;</text> </paragraph> <paragraph num="(3)"> <text>21 U.S.C. §§451—471, as amended; and</text> </paragraph> <paragraph num="(4)"> <text>21 U.S.C. §§601—695, as amended.</text> </paragraph> </paragraph> <paragraph num="G."> <text>High Potency Edible Cannabis Products.</text> <paragraph num="(1)"> <text>Edible products produced with approval by the Administration under §B(4) of this regulation shall comply with Current Good Manufacturing Practices under 21 CFR Part 111 or 21 CFR Part 210.</text> </paragraph> <paragraph num="(2)"> <text>A permittee shall submit to the Administration a third-party certification that demonstrates compliance with §G(1) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Demonstration of compliance required under §G(2) of this regulation shall include:</text> <paragraph num="(a)"> <text>Proof of the third party’s accreditation to certify for Current Good Manufacturing Practices that complies with 21 CFR Part 111 or 21 CFR Part 210;</text> </paragraph> <paragraph num="(b)"> <text>An attestation that the third party performed a facility audit of the licensed processor’s facility using an audit checklist within the scope of accreditation that complies with 21 CFR Part 111 or 21 CFR Part 210;</text> </paragraph> <paragraph num="(c)"> <text>The audit checklist for cGMP 21 CFR Part 111 or 21 CFR Part 210, facility score, the audit checklist score scale, and a corrective plan to remediate any deficiencies identified during the audit; and</text> </paragraph> <paragraph num="(d)"> <text>Documentation that the dosage form is recognized by the United States Pharmacopeia, the National Formulary, or the Food and Drug Administration.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Edible products produced with approval by the Administration under §B(4) of this regulation may not contain more than:</text> <paragraph num="(a)"> <text>40 milligrams of THC per serving; and</text> </paragraph> <paragraph num="(b)"> <text>400 milligrams of THC per package.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A dispensary shall only sell or dispense high potency edible products to qualified patients and registered caregivers.</text> </paragraph> <paragraph num="(6)"> <text>A processor shall label high potency edible products in accordance with COMAR 14.17.18.04.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Administration shall maintain permittee trade secrets in conformity with COMAR 14.17.11.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Capsule and Tincture Products."> <paragraph num="A."> <text>A tincture shall:</text> <paragraph num="(1)"> <text>Contain no additional non-cannabis ingredients except potable water, unless approved by the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>For vegetable oil tinctures, be manufactured in accordance with the regulation of edible cannabis products under Regulation .05E—H of this chapter and COMAR 14.17.11.05—.14, except for COMAR 14.17.11.05B; and</text> </paragraph> <paragraph num="(3)"> <text>Be dispensed in a container that:</text> <paragraph num="(a)"> <text>Has a resealing, child-resistant cap, or closure; and</text> </paragraph> <paragraph num="(b)"> <text>Includes a dropper measuring device within the package.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A licensee is encouraged to manufacture varying levels of potency for each tincture or capsule product the permittee distributes, including products containing:</text> <paragraph num="(1)"> <text>2.5 milligrams of THC per serving; and</text> </paragraph> <paragraph num="(2)"> <text>5 milligrams of THC per serving.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A dispensary shall only sell or dispense capsule and tincture products with more than 10 milligrams of tetrahydrocannabinol per serving and 100 milligrams tetrahydrocannabinol per package to qualifying patients or registered caregivers.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Home Cultivation Products."> <paragraph num="A."> <text>A licensed dispensary is authorized to sell and distribute home cultivation products intended to assist with the home cultivation of cannabis.</text> </paragraph> <paragraph num="B."> <text>A licensed dispensary may sell up to:</text> <paragraph num="(1)"> <text>Two actively growing plants or seedlings to an adult use consumer; and</text> </paragraph> <paragraph num="(2)"> <text>Four actively growing plants or seedlings to a qualifying patient who is 21 years old or older or to a registered caregiver.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Seedlings not sold by a dispensary shall be destroyed and recorded as green waste in accordance with standard operating procedures if the plant is:</text> <paragraph num="(1)"> <text>Taller than 8 inches;</text> </paragraph> <paragraph num="(2)"> <text>Wider than 8 inches; or</text> </paragraph> <paragraph num="(3)"> <text>Otherwise in a flowering or vegetative state.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A licensed dispensary may not cultivate cannabis plants.</text> </paragraph> <paragraph num="E."> <text>A licensed dispensary shall only acquire home cultivation products under this regulation from a licensed grower.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Cannabis Vaporizing Devices."> <paragraph num="A."> <text>A dispensary may sell cannabis vaporizing devices to:</text> <paragraph num="(1)"> <text>Individuals 21 years old or older; or</text> </paragraph> <paragraph num="(2)"> <text>Registered patients and qualifying caregivers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A cannabis vaporizing device may include a cartridge containing a concentrated or infused cannabis liquid for the purposes of heating and producing a vapor.</text> </paragraph> <paragraph num="C."> <text>Except as authorized by COMAR 14.17.12.04, cannabis vaporizing devices may not include any solvent, solution, or other substance deemed to be a risk to public health or safety by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Infused Non-Edible Products."> <text>A dispensary may dispense infused non-edible products to qualifying patients, registered caregivers, or adult use consumers.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Concentrated Cannabis Products."> <paragraph num="A."> <text>A dispensary shall only sell or dispense concentrated cannabis products with a total weight that exceeds 1 gram to qualifying patients or registered caregivers.</text> </paragraph> <paragraph num="B."> <text>Concentrated cannabis products with a total weight that exceeds 1 gram shall be labeled in accordance with COMAR 14.17.18.04.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Usable Cannabis Products."> <paragraph num="A."> <text>Usable cannabis products may be sold to:</text> <paragraph num="(1)"> <text>Individuals 21 years old or older; or</text> </paragraph> <paragraph num="(2)"> <text>Qualifying patients and registered caregivers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A licensed dispensary may package, repackage, wrap, roll, or otherwise create usable cannabis products from usable cannabis in accordance with §§C and D of this regulation.</text> </paragraph> <paragraph num="C."> <text>Repackaging Requirements.</text> <paragraph num="(1)"> <text>Handwashing Sinks.</text> <paragraph num="(a)"> <text>A dispensary shall ensure that agents engaged in creating usable cannabis products have easy access to a handwashing sink that provides warm water of sufficient volume under pressure for effective handwashing procedures.</text> </paragraph> <paragraph num="(b)"> <text>A dispensary shall maintain at least one handwashing sink for the following number of agents who are engaged in repackaging while on duty at the same time:</text> <paragraph num="(i)"> <text>Every 15 agents; and</text> </paragraph> <paragraph num="(ii)"> <text>Any fraction of 15 agents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Scales.</text> <paragraph num="(a)"> <text>A scale used by a licensed dispensary for the creation of usable cannabis products shall be:</text> <paragraph num="(i)"> <text>A National Type Evaluation Program approved device;</text> </paragraph> <paragraph num="(ii)"> <text>Calibrated and recertified annually.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>A licensed dispensary shall make records and certifications required under §C(2)(a) of this regulation available to the Administration available upon request.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Sanitation.</text> <paragraph num="(a)"> <text>Scales, surfaces, and other equipment use for the purposes of creating usable cannabis products shall be cleaned and sanitized:</text> <paragraph num="(i)"> <text>Between shifts;</text> </paragraph> <paragraph num="(ii)"> <text>Between packaging, repackaging, or otherwise creation of usable cannabis products with different usable cannabis batches;</text> </paragraph> <paragraph num="(iii)"> <text>Before beginning any packaging, repackaging, or otherwise creation of usable cannabis products; and</text> </paragraph> <paragraph num="(iv)"> <text>After the completion of any packaging, repackaging, or otherwise creation of usable cannabis products.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Licensed dispensaries shall maintain an accurate log of cleaning and sanitation required under §C(3)(a) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Products produced by dispensaries under this regulation shall be packaged and labeled in accordance with COMAR 14.17.18.</text> </paragraph> <paragraph num="E."> <text>Transfer limits and Inventory Controls on Usable Cannabis.</text> <paragraph num="(1)"> <text>Usable cannabis transferred from a licensed grower to a licensed dispensary for the purposes of creation of usable cannabis products may not exceed:</text> <paragraph num="(a)"> <text>1 pound in a single package; or</text> </paragraph> <paragraph num="(b)"> <text>50 pounds in a single transfer.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensed dispensary shall have no more than 50 pounds of usable cannabis in inventory at a given time for the purposes of creating usable cannabis products.</text> </paragraph> <paragraph num="(3)"> <text>The Administration may query the seed-to-sale tracking system to ensure compliance with this section.</text> </paragraph> </paragraph> <paragraph num="F."> <text>A dispensary may not weigh, package, repackage, or create usable cannabis products at the point of sale, or conduct deli-style sales.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Novel Product Requests."> <paragraph num="A."> <text>In this regulation, “novel product” means a cannabis product that is:</text> <paragraph num="(1)"> <text>Not presently authorized in Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Lawfully produced in another jurisdiction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A licensed processor may submit a request to the Administration in a manner prescribed by the Administration to approve a novel product.</text> </paragraph> <paragraph num="C."> <text>A valid novel product request shall include:</text> <paragraph num="(1)"> <text>A detailed product description;</text> </paragraph> <paragraph num="(2)"> <text>An explanation of how the product deviates from current regulations;</text> </paragraph> <paragraph num="(3)"> <text>Evidence that the same product type is permitted in at least one other state’s regulated cannabis market; and</text> </paragraph> <paragraph num="(4)"> <text>Health and safety information, including but not limited to:</text> <paragraph num="(a)"> <text>Available information or studies regarding any beneficial or adverse effects from the use of the product; and</text> </paragraph> <paragraph num="(b)"> <text>Packaging and labeling strategies to minimize risk to patients, consumers, and children.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may:</text> <paragraph num="(1)"> <text>Make its own determination to approve or deny the request; or</text> </paragraph> <paragraph num="(2)"> <text>Defer the request to the Public Health Advisory Council.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Administration reserves the right to make a final determination on the request</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-203.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05G amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 adopted effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="14" heading="Complaints, Enforcement, Record Keeping, and Inspections of Cannabis Businesses"> <regulation prefix="Regulation" num=".01" heading="Complaints, Adverse Events, and Recall."> <paragraph num="A."> <text>The Administration, licensees, and certifying providers shall establish a procedure to receive, organize, store, and respond to all oral, written, electronic, or other complaints regarding any cannabis product and severe adverse events.</text> </paragraph> <paragraph num="B."> <text>In the event a licensee or certifying provider receives a complaint regarding the quality or safety of a product, including a report of a serious adverse event, the licensee or certifying provider shall report the complaint within 24 hours to:</text> <paragraph num="(1)"> <text>The Administration;</text> </paragraph> <paragraph num="(2)"> <text>If applicable, the licensed grower or processor from which the cannabis originated; and</text> </paragraph> <paragraph num="(3)"> <text>If applicable, the licensed dispensary that dispensed the cannabis.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Complaint Investigation Process.</text> <paragraph num="(1)"> <text>After notifying the Administration about a complaint as required in §B of this regulation, a licensee or certifying provider shall:</text> <paragraph num="(a)"> <text>Promptly identify the batch number or lot number of the cannabis or cannabis product, or any other product that is the subject of the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Investigate the production of the batch or lot to determine if there was a deviation from the standard operating procedure in the production of the batch or lot;</text> </paragraph> <paragraph num="(c)"> <text>Send part of the retention sample of the batch or lot to an independent testing laboratory to determine if it meets quality and safety standards; and</text> </paragraph> <paragraph num="(d)"> <text>If there is reasonable cause to suspect communicable disease transmission from or by an agent, collect morbidity history from any suspected agents.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the sample analysis conducted under §C(1) of this regulation reveals that the batch or lot fails to meet quality and safety standards, the licensee shall:</text> <paragraph num="(a)"> <text>Order a recall of all products derived from or included in the batch or lot;</text> </paragraph> <paragraph num="(b)"> <text>To the extent possible, notify all adult-use consumers, patients, caregivers, and dispensaries who may have obtained cannabis products from such a batch or lot of the recall; and</text> </paragraph> <paragraph num="(c)"> <text>Pay reimbursement for any returned cannabis.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In the case of a report of a serious adverse event, if the investigation reveals a deviation from the standard operating procedure in the production of the batch or lot, the licensee shall:</text> <paragraph num="(a)"> <text>Order a recall of all products derived from or included in the batch or lot;</text> </paragraph> <paragraph num="(b)"> <text>Notify all adult-use consumers, patients, caregivers, and dispensaries who may have obtained cannabis from such a batch or lot of the recall; and</text> </paragraph> <paragraph num="(c)"> <text>Pay reimbursement for any returned cannabis.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the licensee’s investigation reveals there is reasonable cause to suspect communicable disease transmission from or by an agent, the licensee shall ensure that appropriate follow-up action is taken, whenever applicable, including but not limited to:</text> <paragraph num="(a)"> <text>Immediately excluding any indicated agent from the licensed facility;</text> </paragraph> <paragraph num="(b)"> <text>Issuing an order to recall all products derived from, or included in, any affected batch or lot;</text> </paragraph> <paragraph num="(c)"> <text>To the extent possible, notifying all adult-use consumers, patients, caregivers, and dispensaries who may have obtained cannabis from any affected batch or lot of the recall;</text> </paragraph> <paragraph num="(d)"> <text>Reimbursing for any returned cannabis;</text> </paragraph> <paragraph num="(e)"> <text>Immediately closing the licensed premises until medical and epidemiological evidence shows that the likelihood of further disease transmission is low; and</text> </paragraph> <paragraph num="(f)"> <text>In accordance with COMAR 10.06.01, conducting an investigation, a report, and control of a communicable disease outbreak.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Custody of Returned Recalled Cannabis Products.</text> <paragraph num="(1)"> <text>The licensee shall develop a procedure to ensure cannabis that is recalled is stored and segregated until disposal of recalled material is authorized by the Administration.</text> </paragraph> <paragraph num="(2)"> <text>Within 24 hours of the receipt of notice from the Administration that the disposal of recalled cannabis is authorized, the licensee shall dispose of the recalled cannabis according to its standard operating procedure.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Records."> <paragraph num="A."> <text>A licensee shall maintain:</text> <paragraph num="(1)"> <text>Independent of the seed-to-sale tracking system, a searchable, secure, tamper-evident record of each distribution that contains:</text> <paragraph num="(a)"> <text>If applicable, the name and address of the patient;</text> </paragraph> <paragraph num="(b)"> <text>The quantity delivered; and</text> </paragraph> <paragraph num="(c)"> <text>The product name, strength, batch number, and lot number.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>To ensure uniformity, for each batch and lot:</text> <paragraph num="(a)"> <text>Records of production and distribution; and</text> </paragraph> <paragraph num="(b)"> <text>Daily checklists;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A record of test methods and test results for each batch and lot;</text> </paragraph> <paragraph num="(4)"> <text>A log of individuals visiting each premises; and</text> </paragraph> <paragraph num="(5)"> <text>A duplicate set of all records at a secure, off-site location.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unless otherwise specified, a licensee, or a certifying provider shall retain a record for a period of 2 years.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Inspections."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. “Investigator” means any Administration employee or contractor designated by the Administration to carry out an inspection under this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Submission of an application to be a licensee or registrant irrevocably gives the Administration consent to conduct all inspections to ensure compliance with State law and regulations.</text> </paragraph> <paragraph num="C."> <text>The Administration may inspect all of a cannabis business applicant’s premises and operations to ensure conformity with its application, State law, and regulations.</text> </paragraph> <paragraph num="D."> <text>In the case of an inspection before the issuance of a license, the Administration shall arrange the inspection to take place at a mutually agreeable time.</text> </paragraph> <paragraph num="E."> <text>Announced and Unannounced Inspections.</text> <paragraph num="(1)"> <text>The Administration may conduct announced and unannounced inspections of a licensee or registrant subject to the Administration’s regulation, mission, and function, to determine compliance with statute and regulations.</text> </paragraph> <paragraph num="(2)"> <text>Failure by a licensee or registrant to provide the Administration with immediate access to any part of a premises, requested material, information, or agent as part of an inspection may result in the imposition of a civil fine, suspension of license, or revocation of license.</text> </paragraph> <paragraph num="(3)"> <text>During an inspection, the Administration may:</text> <paragraph num="(a)"> <text>Review and make copies of any and all records, including but not limited to financial data, sales data, employment data, or other material that would otherwise be considered proprietary;</text> </paragraph> <paragraph num="(b)"> <text>Enter any place, including but not limited to vehicles in which cannabis is held, dispensed, sold, produced, tested, delivered, transported, manufactured, or otherwise disposed of;</text> </paragraph> <paragraph num="(c)"> <text>Inspect all equipment, raw and processed material, containers, and labeling;</text> </paragraph> <paragraph num="(d)"> <text>Inventory any cannabis;</text> </paragraph> <paragraph num="(e)"> <text>Inspect any equipment, instruments, tools, or machinery used to process:</text> <paragraph num="(i)"> <text>Cannabis; or</text> </paragraph> <paragraph num="(ii)"> <text>Cannabis product;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Investigate complaints; and</text> </paragraph> <paragraph num="(g)"> <text>Question personnel present at the location and any agent of the licensee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>During an inspection, a material misstatement, omission, misrepresentation, or untruth by the cannabis business applicant, licensee, registrant, or agent may result in:</text> <paragraph num="(a)"> <text>Denial of the application;</text> </paragraph> <paragraph num="(b)"> <text>The imposition of a civil fine;</text> </paragraph> <paragraph num="(c)"> <text>Suspension of a license or registration; or</text> </paragraph> <paragraph num="(d)"> <text>Revocation of a license or registration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Sample Collection and Testing as Part of Inspection.</text> <paragraph num="(1)"> <text>During an inspection, the Administration may obtain samples for testing of any:</text> <paragraph num="(a)"> <text>Cannabis;</text> </paragraph> <paragraph num="(b)"> <text>Cannabis product;</text> </paragraph> <paragraph num="(c)"> <text>Media used to grow cannabis;</text> </paragraph> <paragraph num="(d)"> <text>Chemicals or solvents used to process cannabis concentrate;</text> </paragraph> <paragraph num="(e)"> <text>Labels or containers for cannabis;</text> </paragraph> <paragraph num="(f)"> <text>Paraphernalia;</text> </paragraph> <paragraph num="(g)"> <text>Environmental swabs;</text> </paragraph> <paragraph num="(h)"> <text>Any waste material; and</text> </paragraph> <paragraph num="(i)"> <text>Raw or processed material.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An investigator may contract with an independent testing laboratory or the State Cannabis Testing Laboratory to analyze the samples for any deviation from specification questioned by the investigator.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Investigative Actions.</text> <paragraph num="(1)"> <text>In the event that an investigator has cause to suspect an operational failure or conditions that create a likelihood of diversion, contamination, or a risk to the public health:</text> <paragraph num="(a)"> <text>An investigator may:</text> <paragraph num="(i)"> <text>Suspend the distribution of some or all cannabis from the cannabis licensee;</text> </paragraph> <paragraph num="(ii)"> <text>Order immediate evacuation of the premises and seal the entry door; or</text> </paragraph> <paragraph num="(iii)"> <text>Quarantine some or all cannabis;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Administration shall undertake a review of the inspection findings and may:</text> <paragraph num="(i)"> <text>Request a recall of the cannabis;</text> </paragraph> <paragraph num="(ii)"> <text>Request independent testing of affected cannabis;</text> </paragraph> <paragraph num="(iii)"> <text>Approve a procedure to reprocess the cannabis;</text> </paragraph> <paragraph num="(iv)"> <text>Notify law enforcement if diversion is suspected; or</text> </paragraph> <paragraph num="(v)"> <text>Order the destruction of contaminated or substandard cannabis; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The Administration may notify the local fire department or police department, or appropriate regulatory agency, regarding a risk to public health and safety.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>During an inspection or any investigation, a licensee, registrant, or agent, or employee shall comply with an Administration request to:</text> <paragraph num="(a)"> <text>Appear for a sworn statement; or</text> </paragraph> <paragraph num="(b)"> <text>Submit documents responsive to any Administration request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>The Administration shall leave a receipt and create a documented chain of custody for anything removed from the premises during an inspection.</text> </paragraph> <paragraph num="I."> <text>Report of an Inspection and Letter of Non-Compliance.</text> <paragraph num="(1)"> <text>An investigator shall:</text> <paragraph num="(a)"> <text>Prepare an investigative report; and</text> </paragraph> <paragraph num="(b)"> <text>Deliver a copy of the report and obtain a receipt for the delivery.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 10 business days from the receipt of a letter of non-compliance imposing a fine or demanding corrective action, a licensee shall:</text> <paragraph num="(a)"> <text>Respond in writing to each demand for corrective action;</text> </paragraph> <paragraph num="(b)"> <text>Set forth a plan for corrective action to be taken and the timetable for correction; and</text> </paragraph> <paragraph num="(c)"> <text>Pay the fine set forth in the letter of non-compliance.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Upon receipt of a letter of non-compliance, a licensee or registrant may request an evidentiary hearing on the same provided such request is made in writing within 30 days of receipt of the letter of non-compliance in accordance with COMAR 14.17.22.</text> </paragraph> <paragraph num="(4)"> <text>If a licensee or registrant does not submit a request for a hearing in writing within the 30-day period, the agency action becomes a final determination and is not subject to appeal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Discipline and Enforcement."> <paragraph num="A."> <text>Diversion.</text> <paragraph num="(1)"> <text>A licensee, registrant, or agent may not:</text> <paragraph num="(a)"> <text>Divert cannabis or cannabis products for any unauthorized sale or distribution;</text> </paragraph> <paragraph num="(b)"> <text>Fail to maintain records in accordance with this subtitle or the licensee’s standard operating procedures;</text> </paragraph> <paragraph num="(c)"> <text>Fail to accurately track, tag, or otherwise record inventory in the seed-to-sale tracking system; or</text> </paragraph> <paragraph num="(d)"> <text>Sell or dispense cannabis or cannabis products in a manner that:</text> <paragraph num="(i)"> <text>Exceeds the personal use amount of cannabis or cannabis products;</text> </paragraph> <paragraph num="(ii)"> <text>Is reasonably expected to be in violation of the personal use amount; or</text> </paragraph> <paragraph num="(iii)"> <text>Could otherwise reasonably give rise to any other violation of law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensee, registrant, or agent may not conduct a series of transactions that would be in violation of §A(1)(d) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Health Endangerment.</text> <paragraph num="(1)"> <text>A licensee, registrant, or agent may not:</text> <paragraph num="(a)"> <text>Apply any contaminant to cannabis or cannabis products;</text> </paragraph> <paragraph num="(b)"> <text>Handle cannabis or cannabis products in a manner that would endanger health and safety;</text> </paragraph> <paragraph num="(c)"> <text>Store cannabis or cannabis products in a manner that would endanger health and safety; or</text> </paragraph> <paragraph num="(d)"> <text>Otherwise risk the health and safety of a patient or consumer.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensee, registrant, or agent may not sell, dispense, or otherwise distribute cannabis or cannabis products to an individual younger than 21 years old unless the individual is a qualifying patient 18 years old or older.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A licensee or registrant may not substantially deviate or demonstrate a pattern of deviation from:</text> <paragraph num="(1)"> <text>Its standard operating procedures;</text> </paragraph> <paragraph num="(2)"> <text>Its application; or</text> </paragraph> <paragraph num="(3)"> <text>State, federal, or local:</text> <paragraph num="(a)"> <text>Law;</text> </paragraph> <paragraph num="(b)"> <text>Regulations; or</text> </paragraph> <paragraph num="(c)"> <text>Ordinances.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may fine, suspend, restrict, revoke, or otherwise sanction any cannabis licensee, registrant, or agent for:</text> <paragraph num="(1)"> <text>Any violation of Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Any violation of this subtitle;</text> </paragraph> <paragraph num="(3)"> <text>Restricting, limiting, or otherwise impeding an inspection or investigation by the Administration;</text> </paragraph> <paragraph num="(4)"> <text>A material misstatement, omission, misrepresentation, or untruth by the licensee, registrant, registered agent, or other employee; or</text> </paragraph> <paragraph num="(5)"> <text>Any other violation of State, federal, or local:</text> <paragraph num="(a)"> <text>Law;</text> </paragraph> <paragraph num="(b)"> <text>Regulations; or</text> </paragraph> <paragraph num="(c)"> <text>Ordinances.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Fines and Suspension Proceedings."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Letter of non-compliance” means a written communication from the Administration to a licensee or registrant that imposes a fine or demands corrective action.</text> </paragraph> <paragraph num="(b)"> <text>“Respondent” means a licensee, registrant, or selected applicant who is issued a letter of non-compliance, notice of intent to summarily suspend, or order of summary suspension.</text> </paragraph> <paragraph num="(c)"> <text>“Show cause hearing” means a non-evidentiary hearing to provide the parties involved with an opportunity for oral argument on a notice of intent to summarily suspend or a summary suspension.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A licensee, registrant, or agent who violates Regulation .04 of this chapter or COMAR 14.17.20 is subject to a fine of up to $10,000 per violation.</text> </paragraph> <paragraph num="C."> <text>Each day a violation continues is a separate violation under this section.</text> </paragraph> <paragraph num="D."> <text>The licensee, registrant, or agent assessed a fine under this regulation may:</text> <paragraph num="(1)"> <text>Elect to pay the imposed fine; or</text> </paragraph> <paragraph num="(2)"> <text>Request an evidentiary hearing in accordance with COMAR 14.17.22 not later than 30 days after the receipt of the notice of the fine.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a respondent does not submit a request for an evidentiary hearing within 30 days from receipt of the letter of non-compliance or administrative charges, the agency determination becomes final and is not subject to appeal.</text> </paragraph> <paragraph num="F."> <text>The Administration may impose late fees on respondents who do not pay fines by the date indicated in a Letter of Non-Compliance or in a final agency determination, as described in COMAR 14.17.22.10.</text> </paragraph> <paragraph num="G."> <text>The Administration shall remit any penalty collected under this regulation to the:</text> <paragraph num="(1)"> <text>Medical Cannabis Compassionate Use Fund;</text> </paragraph> <paragraph num="(2)"> <text>Cannabis Business Assistance Fund;</text> </paragraph> <paragraph num="(3)"> <text>Community Reinvestment and Repair Fund; or</text> </paragraph> <paragraph num="(4)"> <text>Cannabis Public Health Fund.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Funds from fines remitted under §F of this regulation shall be distributed at the discretion of the Administration by evaluating:</text> <paragraph num="(1)"> <text>Available fund balances;</text> </paragraph> <paragraph num="(2)"> <text>Uses of the fund; and</text> </paragraph> <paragraph num="(3)"> <text>Future needs of the fund.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Summary Suspension.</text> <paragraph num="(1)"> <text>The Administration shall order the summary suspension of a license or registration if the Administration determines that the threat to public health, safety, or welfare requires immediate suspension of a license or registration.</text> </paragraph> <paragraph num="(2)"> <text>The Administration shall promptly give the licensee or registrant:</text> <paragraph num="(a)"> <text>Written notice of the suspension, the findings, and the reasons that support the findings; and</text> </paragraph> <paragraph num="(b)"> <text>An opportunity for a hearing before the Administration.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Service of notice of intent shall be made by:</text> <paragraph num="(a)"> <text>Serving the notice of intent via hand delivery to the point of contact on file;</text> </paragraph> <paragraph num="(b)"> <text>Sending the notice of intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or</text> </paragraph> <paragraph num="(c)"> <text>Other reasonable means to effect service.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A licensee or registrant aggrieved by the action of the Administration under this regulation may request a show cause hearing by filing a written request for a hearing not later than 30 days after receipt of notice of the Administration's action.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Notice of Intent to Summarily Suspend a License or Registration.</text> <paragraph num="(1)"> <text>The Administration may issue a Notice of Intent to Summarily Suspend a cannabis license or registration if the Administration determines that a suspension of a license or registration is necessary to protect the health and welfare of the public.</text> </paragraph> <paragraph num="(2)"> <text>The Administration shall promptly give the licensee or registrant:</text> <paragraph num="(a)"> <text>Written notice of the suspension, the findings, and the reasons that support the findings; and</text> </paragraph> <paragraph num="(b)"> <text>An opportunity for a hearing before the Administration.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Service shall be made by:</text> <paragraph num="(a)"> <text>Serving the Notice of Intent via hand delivery to the point of contact on file;</text> </paragraph> <paragraph num="(b)"> <text>Sending the Notice of Intent via certified mail to the address the licensee or registrant is required to maintain with the Administration; or</text> </paragraph> <paragraph num="(c)"> <text>Other reasonable means to effect service.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A licensee or registrant aggrieved by the action of the Administration under this regulation may request a show cause hearing by filing a request for a hearing in writing not later than 30 days after receipt of notice of the Administration's action.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Show Cause Hearing.</text> <paragraph num="(1)"> <text>If requested in writing, the show cause hearing shall be held promptly within a reasonable time after the effective date of the action.</text> </paragraph> <paragraph num="(2)"> <text>The show cause hearing shall be conducted before the Administration’s director or a designee who:</text> <paragraph num="(a)"> <text>Shall determine procedural issues;</text> </paragraph> <paragraph num="(b)"> <text>May impose reasonable time limits on each party’s oral argument; and</text> </paragraph> <paragraph num="(c)"> <text>Shall make rulings reasonably necessary to facilitate the effective and efficient operation of the show cause hearing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>At the conclusion of the show cause hearing, the Administration director or a designee may:</text> <paragraph num="(a)"> <text>Affirm the order of summary suspension or notice of intent to summarily suspend;</text> </paragraph> <paragraph num="(b)"> <text>Rescind the order of summary suspension;</text> </paragraph> <paragraph num="(c)"> <text>Enter into a consent order with the respondent on behalf of the Administration; or</text> </paragraph> <paragraph num="(d)"> <text>Enter into an interim order with the respondent on behalf of the Administration warranted by the circumstances of the case, including one providing for a stay of the summary suspension, subject to certain conditions.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After the show cause hearing, if the Administration Director or a designee decides to continue the summary suspension, the licensee or registrant aggrieved by the decision may pursue a hearing in accordance with COMAR 14.17.22.</text> </paragraph> <paragraph num="(5)"> <text>Contesting a summary suspension or notice of intent to summarily suspend through a show cause hearing does not toll or otherwise excuse the requirement that an aggrieved party request a hearing within 30 days of notice of intent to summarily suspend, as set forth in §I(4) or §J(4) of this regulation.</text> </paragraph> <paragraph num="(6)"> <text>If the licensee or registrant against whom the action is contemplated does not appear, the Administration may hear and determine the matter.</text> </paragraph> <paragraph num="(7)"> <text>A show cause hearing is not subject to the hearing procedures set forth in COMAR 14.17.22.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Advertising."> <paragraph num="A."> <text>All advertisements for cannabis products, businesses, licensees, or other cannabis-related services shall comply with the requirements of Alcoholic Beverages and Cannabis Article, §§36-901—36-903, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>A licensee, registrant, agent, or certifying provider who violates §A of this regulation:</text> <paragraph num="(1)"> <text>Is subject to a fine not exceeding:</text> <paragraph num="(a)"> <text>$1,000 for the first violation;</text> </paragraph> <paragraph num="(b)"> <text>$10,000 for the second violation occurring within 24 months after the first violation;</text> </paragraph> <paragraph num="(c)"> <text>$25,000 the third violation occurring within 24 months after the second violation; and</text> </paragraph> <paragraph num="(d)"> <text>$50,000 for each subsequent violation occurring within 24 months after the preceding violation; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>May elect to:</text> <paragraph num="(a)"> <text>Pay the imposed fine; or</text> </paragraph> <paragraph num="(b)"> <text>Request a hearing not later than 30 days from the receipt of the fine.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Any violations that occurred between May 3, 2023, and the effective date of these regulations count for purposes of calculating the appropriate fine.</text> </paragraph> <paragraph num="D."> <text>In accordance with the hearing provisions in Regulation .05 of this chapter, the Administration may deny, suspend, or revoke the license or registration of a licensee, registrant, agent, or certifying provider who violates §A of this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-901, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, D amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="15" heading="Cannabis Business Agents"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to agents as defined in COMAR 14.17.01.</text> </paragraph> <paragraph num="B."> <text>This chapter applies to individuals who are employed, volunteer, or work for management companies as defined in COMAR 14.17.06.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Registration."> <paragraph num="A."> <text>To volunteer or work for a licensee or registrant, an individual shall be registered with the Administration as an agent.</text> </paragraph> <paragraph num="B."> <text>Agent registration shall be conducted pursuant to Alcoholic Beverages and Cannabis Article, §36-501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>A licensee shall apply to register an agent by submitting to the Administration:</text> <paragraph num="(1)"> <text>The name, address, date of birth, and Social Security Number or Individual Tax Identification Number of an agent;</text> </paragraph> <paragraph num="(2)"> <text>Documentation of the submission of fingerprints of the agent of to the Criminal Justice Information System’s Central Repository in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>The request for the criminal history record information of the agent to be forwarded to the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>As a condition of registration, an agent shall report to the Administration a conviction of or plea of nolo contendere to a crime involving moral turpitude within 14 days of the conviction or plea.</text> </paragraph> <paragraph num="E."> <text>The Administration may:</text> <paragraph num="(1)"> <text>Disqualify as an agent an individual who has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside;</text> </paragraph> <paragraph num="(2)"> <text>Revoke the registration of an agent who is convicted of or pleads nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; and</text> </paragraph> <paragraph num="(3)"> <text>Disqualify as an agent an individual who previously had a registration revoked under Alcoholic Beverages and Cannabis Article, §36-202(a)(7), Annotated Code of Maryland, or for good cause.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Administration may not deny a cannabis agent registration based on any cannabis-related offense occurring before July 1, 2023.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Registered Agent Identification Cards."> <paragraph num="A."> <text>The Administration shall issue to each registered agent an identification card which includes a photograph of the face of the registered agent taken no more than 6 months before the date of the application.</text> </paragraph> <paragraph num="B."> <text>At all times every registered agent at a licensed or registered premises shall visibly wear the identification card issued to the registered agent by the Administration.</text> </paragraph> <paragraph num="C."> <text>The agent shall apply for renewal of the identification card every 2 years.</text> </paragraph> <paragraph num="D."> <text>If a registered agent’s identification card is lost, destroyed, or stolen, within 24 hours of becoming aware of the loss, destruction or theft, the licensee shall:</text> <paragraph num="(1)"> <text>Report the loss, destruction, or theft to the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Apply for a replacement card; and</text> </paragraph> <paragraph num="(3)"> <text>Pay a replacement card fee specified in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An identification card remains the property of the Administration and the Administration may order the return or seizure of an identification card if the registration is revoked or expires.</text> </paragraph> <paragraph num="F."> <text>If a registered agent’s identification card is lost, destroyed, or stolen, a copy of the notification to the Administration shall be evidence of registration until a new card is obtained from the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Termination."> <paragraph num="A."> <text>Within 30 days of the termination of a registered agent, the licensee or registrant shall:</text> <paragraph num="(1)"> <text>Take custody of the terminated registered agent’s identification card;</text> </paragraph> <paragraph num="(2)"> <text>Obtain any keys or other entry devices from the terminated registered agent; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure the terminated registered agent can no longer gain access to the licensed premises.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Within 1 business day of the termination of a registered agent, a licensee or registrant shall:</text> <paragraph num="(1)"> <text>Notify the Administration:</text> <paragraph num="(a)"> <text>Of the termination and the circumstance of the termination; and</text> </paragraph> <paragraph num="(b)"> <text>Whether the terminated registered agent has returned the agent’s identification card; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Initiate delivery of the terminated registered agent’s identification card to the Administration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration shall revoke the registration of an agent upon receiving notification that an agent is no longer associated with a licensee.</text> </paragraph> <paragraph num="D."> <text>If a registered agent did not return the agent’s identification card within 30 days of the termination, the Administration shall notify the law enforcement agency with jurisdiction in the licensee’s area.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Training."> <paragraph num="A."> <text>The licensee shall train all registered agents on:</text> <paragraph num="(1)"> <text>Federal and State cannabis laws and regulation and other laws and regulations pertinent to the agent’s responsibilities;</text> </paragraph> <paragraph num="(2)"> <text>Standard operating procedures;</text> </paragraph> <paragraph num="(3)"> <text>The State alcohol and drug free workplace policy, as identified in COMAR 21.11.08.03;</text> </paragraph> <paragraph num="(4)"> <text>Detection and prevention of diversion of cannabis;</text> </paragraph> <paragraph num="(5)"> <text>Security procedures; and</text> </paragraph> <paragraph num="(6)"> <text>Safety procedures including responding to:</text> <paragraph num="(a)"> <text>A medical emergency;</text> </paragraph> <paragraph num="(b)"> <text>A fire;</text> </paragraph> <paragraph num="(c)"> <text>A chemical spill; and</text> </paragraph> <paragraph num="(d)"> <text>A threatening event such as:</text> <paragraph num="(i)"> <text>An armed robbery;</text> </paragraph> <paragraph num="(ii)"> <text>An invasion;</text> </paragraph> <paragraph num="(iii)"> <text>A burglary; and</text> </paragraph> <paragraph num="(iv)"> <text>Any other criminal incident.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The licensee shall retain training materials and attendance records and make the training materials available for inspection by the Administration.</text> </paragraph> <paragraph num="C."> <text>Within 90 days of employment start date and annually thereafter, a registered agent employed by a cannabis licensee shall complete a responsible vendor training program that:</text> <paragraph num="(1)"> <text>Meets the minimum requirements under Alcoholic Beverages and Cannabis Article, §§36-1001—36-1003, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Is registered with the Administration in accordance with §E(3) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A responsible vendor training program required under §E of this regulation shall be in addition to the training requirements under §A of this regulation.</text> </paragraph> <paragraph num="E."> <text>Responsible Vendor Training Program.</text> <paragraph num="(1)"> <text>To offer a responsible medical or adult-use cannabis vendor, server, and seller training program, a person shall submit an application to the Administration.</text> </paragraph> <paragraph num="(2)"> <text>To be considered for approval, the proposed training program application shall meet the minimum educational standards established in Alcoholic Beverages and Cannabis Article, §36-1001(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Applications approved by the Administration shall be registered with the Administration for a period of 3 years from the date of approval.</text> </paragraph> <paragraph num="(4)"> <text>The Administration shall assess a fee for the application, registration, and renewal of a responsible vendor training program under this regulation as specified in COMAR 14.17.21.</text> </paragraph> <paragraph num="(5)"> <text>A person offering a responsible vendor training program under this paragraph may not have ownership or control of any cannabis license.</text> </paragraph> <paragraph num="(6)"> <text>A person offering a responsible vendor training program shall:</text> <paragraph num="(a)"> <text>Maintain records for at least 4 years; and A</text> </paragraph> <paragraph num="(b)"> <text>Make these records available to the Administration upon request.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, 36-501, and 36-1001—36-1003, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05C amended effective April 15, 2025 (52:7 Md. R. 324); March 16, 2026 (53:5 Md. R. 244)</annotation> </annotations> </chapter> <chapter num="16" heading="Cannabis Business Owners"> <regulation prefix="Regulation" num=".01" heading="Conditions of Ownership and Control."> <paragraph num="A."> <text>An individual who holds any amount of ownership interest or control in a cannabis licensee shall be 21 years old or older.</text> </paragraph> <paragraph num="B."> <text>The requirement in §A of this regulation does not apply to beneficiaries of ownership interests held in a trust if:</text> <paragraph num="(1)"> <text>The trustee is 21 years old or older; and</text> </paragraph> <paragraph num="(2)"> <text>Ownership interests do not vest prior to the beneficiary’s 21st birthday.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may force divestiture of an individual with ownership interest or control from the licensed business if they are convicted or plead nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside.</text> </paragraph> <paragraph num="D."> <text>Transfers.</text> <paragraph num="(1)"> <text>A person wishing to hold an ownership interest of greater than 5 percent or control in a cannabis license shall comply with the application requirements under Alcoholic Beverages and Cannabis Article, §36-502, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>A license issued, regulated, or otherwise authorized under this subtitle shall only be transferred in accordance with Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Applicants and transferees under this chapter shall submit to a criminal history record check in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Disclosure of Ownership and Control."> <paragraph num="A."> <text>Each licensee shall submit to the Administration a table of organization, ownership, and control in a manner designated by the Administration:</text> <paragraph num="(1)"> <text>On or before July 1 of each year;</text> </paragraph> <paragraph num="(2)"> <text>Within 10 business days of any change in ownership interest greater than 5 percent; and</text> </paragraph> <paragraph num="(3)"> <text>Upon request by the Administration.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The table of organization, ownership, and control shall identify the management structure, ownership, and control of the licensee, including but not limited to the:</text> <paragraph num="(1)"> <text>Name of each owner or principal officer and any other individual or entity with the authority to control the licensee;</text> </paragraph> <paragraph num="(2)"> <text>The office or position held, if any; and</text> </paragraph> <paragraph num="(3)"> <text>The percentage of ownership interest, if any.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The identification of ownership shall include:</text> <paragraph num="(1)"> <text>The name and percentage of ownership interest of each individual or business entity with ownership of more than 5 percent of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Division filings; and</text> </paragraph> <paragraph num="(2)"> <text>To the extent known, the names and percentage of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10 percent of the voting shares of the entity.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A licensee that is owned or controlled, in whole or in part, by another entity shall disclose to the Administration:</text> <paragraph num="(1)"> <text>The relationship between the licensee and the parent or affiliate; and</text> </paragraph> <paragraph num="(2)"> <text>Each owner, board member, or officer and any other individual with control or management authority over those entities owning or controlling the license.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Any individual identified as having ownership or control of a license may not have other ownership interest that exceeds the limitations set forth in Alcoholic Beverages and Cannabis Article, §36-401(e), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Annual Reports for Cannabis Business Owners."> <paragraph num="A."> <text>Annual Report on Minority Owners and Employees.</text> <paragraph num="(1)"> <text>On or before August 1 of each year, each licensee and registrant shall submit a report in a manner determined by the Administration in accordance with Alcoholic Beverages and Cannabis Article, §36-801(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Each licensee and registrant shall maintain the data required for the report in §A(1) of this regulation for a period of 5 years.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration may request an annual report regarding a licensee’s or registrant’s environmental resource consumption and waste generation, including but not limited to:</text> <paragraph num="(1)"> <text>Energy and water usage; and</text> </paragraph> <paragraph num="(2)"> <text>Green waste disposal.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may require licensees to demonstrate progress toward the stated goals of the diversity plan on a quarterly basis for the first operational year of licensure, in a manner specified by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Mandatory Reporting of Legal Actions."> <paragraph num="A."> <text>The required reporting under this regulation applies to a legal action whether in Maryland or another jurisdiction.</text> </paragraph> <paragraph num="B."> <text>Notification.</text> <paragraph num="(1)"> <text>A licensee or its parent, affiliate, or any subsidiary shall notify and provide a description to the Administration within 30 days of any of the following events:</text> <paragraph num="(a)"> <text>The filing of any administrative, civil, or criminal action against the licensee or its parent, affiliate, or subsidiary by any governmental entity, private entity, or individual;</text> </paragraph> <paragraph num="(b)"> <text>The disposition of any administrative, civil, or criminal action against the licensee or its parent, affiliate, or subsidiary by any governmental entity, private entity, or individual, whether by judgment, final order, consent order, or other negotiated resolution; or</text> </paragraph> <paragraph num="(c)"> <text>The filing for bankruptcy of the licensee or its parent, affiliate, or subsidiary, the entry of a court order for the placement into receivership, or the date of an assignment for the benefit of creditors.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An individual with ownership interest or control greater than 5 percent shall notify and provide a description to the Administration within 30 days of any of the following events:</text> <paragraph num="(a)"> <text>The filing for bankruptcy of the licensee or its parent, affiliate, or subsidiary, the entry of a court order for the placement into receivership, or the date of an assignment for the benefit of creditors; or</text> </paragraph> <paragraph num="(b)"> <text>An owner’s conviction of or plea of nolo contendere to a crime involving moral turpitude whether or not any appeal or other proceeding is pending to have the conviction or plea set aside.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The notification and description of the event required under §B(1) and (2) of this regulation shall be provided to the Administration within 14 calendar days after receiving:</text> <paragraph num="(a)"> <text>Proper service of process in accordance with the rules of civil or criminal procedure of a court of competent jurisdiction; or</text> </paragraph> <paragraph num="(b)"> <text>Formal written notice in accordance with the administrative rules of an administrative agency with jurisdiction.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The description under §B(3) of this regulation shall include the following:</text> <paragraph num="(1)"> <text>Title and docket number;</text> </paragraph> <paragraph num="(2)"> <text>Name and location of the court;</text> </paragraph> <paragraph num="(3)"> <text>Names of the parties;</text> </paragraph> <paragraph num="(4)"> <text>General nature and scope of the legal action; and</text> </paragraph> <paragraph num="(5)"> <text>Any judgment, final order, consent order, or other negotiated resolution.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Prohibited Acts."> <paragraph num="A."> <text>A licensee may not transfer ownership of the license for the purpose of:</text> <paragraph num="(1)"> <text>Improperly shielding the license or the value of the license from any judgement or liability; or</text> </paragraph> <paragraph num="(2)"> <text>Furthering any action or plan of action that violates any State, local or federal law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as authorized under Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland, a licensee may not be:</text> <paragraph num="(1)"> <text>A member of the General Assembly;</text> </paragraph> <paragraph num="(2)"> <text>An employee of the Administration; or</text> </paragraph> <paragraph num="(3)"> <text>Otherwise in violation of Alcoholic Beverages and Cannabis Article, §36-504, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual, group of individuals or persons may not own multiple, non-majority or unreported shares or interests in a cannabis license unless every holding is a passive interest that:</text> <paragraph num="(1)"> <text>Has an aggregate ownership interest of less than 5 percent; and</text> </paragraph> <paragraph num="(2)"> <text>Does not have control over the license.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Owners found in violation of this regulation by the Administration may be subject to any of the following sanctions:</text> <paragraph num="(1)"> <text>Fine;</text> </paragraph> <paragraph num="(2)"> <text>Suspension or revocation of the licensed business; or</text> </paragraph> <paragraph num="(3)"> <text>Forced divestiture of the owner from the licensed business.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-501, 36-502, 36-503, 36-504, and 36-801, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="17" heading="Secured Creditors and Receivership"> <regulation prefix="Regulation" num=".01" heading="Security Interest in a Cannabis License."> <paragraph num="A."> <text>Prior to initiating an agreement that involves a security interest in a cannabis license, a creditor shall register with the Administration in the manner specified by the Administration.</text> </paragraph> <paragraph num="B."> <text>A security agreement may not contain provisions that authorize the creditor to:</text> <paragraph num="(1)"> <text>Require the security agreement to become due earlier than the terms specified in the agreement, except if the licensee materially breaches or defaults on its material obligations as set forth in the security agreement;</text> </paragraph> <paragraph num="(2)"> <text>Convert the debt under the security agreement to equity whether present, optional, or future, in a manner that violates Maryland law concerning ownership and control of a license, including restrictions on transfers of a license;</text> </paragraph> <paragraph num="(3)"> <text>Deprive the licensee of the right to operate the license;</text> </paragraph> <paragraph num="(4)"> <text>Restrict the ability of the licensee to make payment on the security agreement through a third party unless the payment restriction would cause the creditor to violate a law by which it is governed; or</text> </paragraph> <paragraph num="(5)"> <text>Restrict the ability of the licensee to exercise control over the licensed entity as defined in COMAR 14.17.01.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A creditor or licensee shall make a copy of the security agreement available to the Administration upon request.</text> </paragraph> <paragraph num="D."> <text>The Administration may invalidate a provision of a security agreement if it violates §B of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Notice of Receivership Action Involving Cannabis Licensee."> <paragraph num="A."> <text>Any person who files any receivership or trustee action involving any cannabis licensee shall provide the Administration with original notice of the action:</text> <paragraph num="(1)"> <text>Within 1 business day; and</text> </paragraph> <paragraph num="(2)"> <text>In a manner specified by the Administration.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration will find a licensee compliant with this chapter only if it receives original notice of the action and the receiver is registered consistent with Administration requirements.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Selection of an Eligible Receiver."> <paragraph num="A."> <text>A creditor may select an eligible receiver who is registered with the Administration to oversee the disposition of a cannabis license if the licensee is the subject of a court order requiring appointment of a receiver.</text> </paragraph> <paragraph num="B."> <text>Within 10 business days of a court order requiring appointment of a receiver, the creditor shall submit to the Administration:</text> <paragraph num="(1)"> <text>Proof of the creditor’s secured interest in the proceeds from a sale of the license of the associated licensee;</text> </paragraph> <paragraph num="(2)"> <text>Proof of a court order requiring appointment of a receiver; and</text> </paragraph> <paragraph num="(3)"> <text>Any additional information requested by the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Receivership Registration."> <paragraph num="A."> <text>Prior to serving as a receiver under this chapter, a prospective receiver shall register with the Administration.</text> </paragraph> <paragraph num="B."> <text>The prospective receiver shall submit to the Administration a completed registration form, in a manner specified by the Administration, accompanied by the following:</text> <paragraph num="(1)"> <text>Documentation establishing the prospective receiver’s qualifications and ability to oversee the orderly disposition of the secured license and the licensee’s cannabis inventory, in a manner that facilitates continuity of the licensee’s operations to the extent possible, including demonstrated understanding of the laws and regulations that apply to:</text> <paragraph num="(a)"> <text>The license type; and</text> </paragraph> <paragraph num="(b)"> <text>Receivership, including the provisions of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A list of all owners and principal officers of the applicant and supporting documentation, including:</text> <paragraph num="(a)"> <text>Certificate of incorporation;</text> </paragraph> <paragraph num="(b)"> <text>Bylaws;</text> </paragraph> <paragraph num="(c)"> <text>Articles of organization;</text> </paragraph> <paragraph num="(d)"> <text>Operating agreements;</text> </paragraph> <paragraph num="(e)"> <text>Certificate of limited partnership;</text> </paragraph> <paragraph num="(f)"> <text>Resolution of a board of directors; or</text> </paragraph> <paragraph num="(g)"> <text>Other similar business formation documents;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Documentation establishing that the individual or entity is eligible to do business in Maryland throughout the term of the receivership;</text> </paragraph> <paragraph num="(4)"> <text>Criminal history record information demonstrating that the applicant for receivership does not have any disqualifying criminal conviction applicable to licensees under this subtitle;</text> </paragraph> <paragraph num="(5)"> <text>Financial records, including a record of tax payments in all jurisdictions in which an applicant has operated a business for the 3 years before the filing of the application;</text> </paragraph> <paragraph num="(6)"> <text>An affidavit confirming that the applicant does not have a financial or ownership interest in any licensee in Maryland;</text> </paragraph> <paragraph num="(7)"> <text>A disposition of license plan, subject to Administration approval, which includes:</text> <paragraph num="(a)"> <text>A detailed description of the plan for the orderly disposition of the license and the licensee’s cannabis inventory, to satisfy the security interest in the right to the proceeds from the sale of the license; and</text> </paragraph> <paragraph num="(b)"> <text>A proposed timeline for the orderly disposition of the license of the associated licensee and the licensee’s cannabis inventory; and</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Any additional information requested by the Administration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The application shall be accompanied by a non-refundable receivership registration fee specified in COMAR 14.17.21.</text> </paragraph> <paragraph num="D."> <text>Administration Determination of Receivership.</text> <paragraph num="(1)"> <text>Upon receipt of a completed receiver registration application and associated fee, the Administration shall either approve, deny, or request additional information from the applicant.</text> </paragraph> <paragraph num="(2)"> <text>If the applicant fails to provide any additional requested information to the Administration within 30 days of the request, the application shall be considered denied.</text> </paragraph> <paragraph num="(3)"> <text>The approved receiver:</text> <paragraph num="(a)"> <text>Shall maintain compliance with the eligibility requirements under this chapter, as evidenced by submitting an annual report to the Administration attesting to continued compliance beginning 1 calendar year after the date the receiver is approved;</text> </paragraph> <paragraph num="(b)"> <text>Shall be a third party that is not affiliated with a creditor that has or asserts rights regarding a Maryland cannabis licensee; and</text> </paragraph> <paragraph num="(c)"> <text>May not have a financial or ownership interest in any Maryland cannabis licensee during the period the receiver is actively carrying out its responsibilities under this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>A receiver may only initiate the disposition of license and the licensee’s cannabis inventory if:</text> <paragraph num="(1)"> <text>The creditor and receiver are registered with the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>The Administration has approved its disposition of license plan.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Administration may not approve the plan for disposition of license and the licensee’s cannabis inventory earlier than 10 days after receiving a complete receivership registration application as described in §B of this regulation.</text> </paragraph> <paragraph num="G."> <text>The receiver may not implement any disposition of license plan modifications prior to receiving Administration approval of the plan modifications.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Receiver’s Responsibilities."> <paragraph num="A."> <text>A receiver may only engage in growing, processing, or dispensing cannabis, including any plant touching activity associated with operational cannabis licensure, necessary to execute the disposition of license plan approved by the Administration.</text> </paragraph> <paragraph num="B."> <text>A receiver shall comply with the provisions in this subtitle and Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland, governing a Maryland cannabis licensee that is subject to the receivership.</text> </paragraph> <paragraph num="C."> <text>Material Violation.</text> <paragraph num="(1)"> <text>In the event of a material violation by the receiver, the Administration shall provide the creditor associated with the receivership with written notice of the violation and an opportunity to cure within 45 days after receipt of the written notice, unless the Administration determines that the violation is an imminent threat to public health and safety, in which case the Administration shall terminate the receivership immediately.</text> </paragraph> <paragraph num="(2)"> <text>The Administration shall terminate the receivership if after providing notice and the opportunity to cure, the material violation is not cured within the 45-day period.</text> </paragraph> <paragraph num="(3)"> <text>Whenever the Administration terminates a receivership under this regulation, the creditor may select another prospective receiver for Administration approval under Regulation .04 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>If a court is overseeing the matter for which a receiver has been appointed, the Administration shall provide notice to the court of a material violation by the receiver.</text> </paragraph> <paragraph num="(5)"> <text>If the violation is an imminent threat to public health and safety, the Administration shall terminate the receivership immediately and notify the court within 1 business day of terminating the receivership.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Disposition of a Cannabis License."> <paragraph num="A."> <text>A receiver appointed under this chapter shall initiate and oversee the orderly disposition of a license and associated business assets in accordance with a disposition of license plan submitted to the Administration that includes:</text> <paragraph num="(1)"> <text>A detailed description of the plan for the orderly disposition of the license and associated business assets; and</text> </paragraph> <paragraph num="(2)"> <text>A proposed timeline for the orderly disposition of the license of the associated licensed grower, processor, or dispensary.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notification. A receiver shall:</text> <paragraph num="(1)"> <text>Issue public notice of the method, manner, time, place, and other terms of the disposition in a newspaper of general circulation in the jurisdiction in which the licensee is located and authorized to do business at least 60 days prior to the planned disposition, including the following information in clear, bold type:</text> <paragraph num="(a)"> <text>Name and contact information of the creditor;</text> </paragraph> <paragraph num="(b)"> <text>Name of licensee, and doing business as (d/b/a) or trade name, if applicable;</text> </paragraph> <paragraph num="(c)"> <text>License number;</text> </paragraph> <paragraph num="(d)"> <text>License classification;</text> </paragraph> <paragraph num="(e)"> <text>Date, time, and location of planned disposition;</text> </paragraph> <paragraph num="(f)"> <text>Deadline for obtaining pre-approval from the Administration to qualify as an eligible bidder at the planned disposition; and</text> </paragraph> <paragraph num="(g)"> <text>Terms and conditions imposed by the creditor on the disposition process and on the successful bidder; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provide a copy of the information in §B(1) of this regulation to the Administration for the purpose of posting on the Administration’s website.</text> </paragraph> </paragraph> <paragraph num="C."> <text>To qualify as an eligible bidder seeking to obtain the cannabis license, an individual, or in the case of an entity, each individual who would acquire an ownership interest of 5 percent or more of the cannabis license that is the subject of the disposition, shall provide the following information to the Administration not later than 30 days before the deadline for obtaining Administration approval to qualify as a bidder at the planned disposition of the license:</text> <paragraph num="(1)"> <text>Name and contact information;</text> </paragraph> <paragraph num="(2)"> <text>Criminal history record information;</text> </paragraph> <paragraph num="(3)"> <text>Completed ownership and control attestation form provided by the Administration for each individual who intends to hold an ownership interest of 5 percent or more;</text> </paragraph> <paragraph num="(4)"> <text>Evidence of immediately available financial resources sufficient to pay the deposit at the planned disposition and to close the transaction within 10 days of the ratified and final disposition;</text> </paragraph> <paragraph num="(5)"> <text>Demonstration that the bidder meets all material requirements for licensure; and</text> </paragraph> <paragraph num="(6)"> <text>Any additional information requested by the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An individual, entity, or an entity’s parent company, subsidiary, or affiliate, may not bid on or obtain a cannabis license that is subject to disposition under this chapter if it has any security interest in the cannabis license.</text> </paragraph> <paragraph num="E."> <text>The Administration shall deny the transfer and sale of any cannabis license to an individual or entity, or an entity’s parent company, subsidiary, or affiliate, if it has any security interest in the cannabis license.</text> </paragraph> <paragraph num="F."> <text>Process for Final Disposition.</text> <paragraph num="(1)"> <text>Upon completion of the planned disposition, the successful bidder shall prepare and submit to the Administration, within 3 days after the conclusion of the planned disposition, the necessary documentation to obtain final approval for the transfer and sale of the license, including a completed request to transfer ownership of a cannabis license provided by the Administration.</text> </paragraph> <paragraph num="(2)"> <text>Upon receipt of final approval of the transfer and sale of the license by the Administration, the disposition shall be considered ratified and final.</text> </paragraph> </paragraph> <paragraph num="G."> <text>To facilitate the orderly disposition of a secured license and associated assets, the provisions set forth in Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland, do not apply to the sale or transfer of the license pursuant to this chapter.</text> </paragraph> <paragraph num="H."> <text>Notwithstanding §E of this regulation, the sale or transfer of a license in accordance with this chapter shall be conducted in good faith, and the provisions of this chapter may not be used as a mechanism to circumvent the sale or transfer of ownership requirements under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.</text> </paragraph> <paragraph num="I."> <text>All cannabis, as defined in Alcoholic Beverages and Cannabis Article, §36-101, Annotated Code of Maryland, shall be disposed of in accordance with this subtitle and Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland.</text> </paragraph> <paragraph num="J."> <text>Termination of Receivership.</text> <paragraph num="(1)"> <text>Upon ratified and final disposition of the cannabis license and associated assets:</text> <paragraph num="(a)"> <text>The receivership terminates; and</text> </paragraph> <paragraph num="(b)"> <text>The receiver shall be immediately released of any responsibility associated with the receivership, and from liability for any actions or omissions that occur after the termination of the receivership.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Nothing in this regulation shall be construed as limiting the liability of the receiver for any actions or omissions that occurred during the period that the receivership was in effect.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Administration Approval Required."> <text>Notwithstanding any provision of this regulation, a cannabis license may not be transferred or operated without express approval of the Administration.</text> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-503, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A—D amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E —G adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B,C amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D, E adopted effective May 26, 2025 (52:10 Md. R. 436)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F—J amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> </annotations> </chapter> <chapter num="18" heading="Finished Product Packaging"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Cartoon” means a drawing showing the features of the subject in a simplified or exaggerated way.</text> </paragraph> <paragraph num="(2)"> <text>“Child resistant” means with respect to packaging of cannabis or cannabis product ready for retail sale, designed or constructed to be significantly difficult for a typical child younger than 5 years old to open and not to be significantly difficult for a typical adult to open, and complies with 16 CFR §1700.15(B)(1).</text> </paragraph> <paragraph num="(3)"> <text>“Exit packaging” means an opaque bag, pouch, or other container that cannabis, cannabis products and/or cannabis seeds and plants are placed after a retail sale and before the purchased items leave the licensed premise.</text> </paragraph> <paragraph num="(4)"> <text>“Lot” means all of a cannabis finished product that is uniform, that is intended to meet specifications, and that is manufactured, packaged, or labeled together during a specified time period according to a single lot record.</text> </paragraph> <paragraph num="(5)"> <text>“Marketing layer” means the outermost layer of a retail sale container, which is most predominantly apparent and visible. If the container consists of only a single layer, then the outer surface of the container is the marketing layer.</text> </paragraph> <paragraph num="(6)"> <text>“Tamper evident” means with respect to a device or process, bearing a seal, a label or a marking that makes unauthorized access to or tampering with a package, product, or container easily detectable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General Packaging Requirements."> <paragraph num="A."> <text>All items shall be individually packaged by a licensed grower or processor prior to distribution to any licensed dispensary for retail sale.</text> </paragraph> <paragraph num="B."> <text>Packaging Requirements.</text> <paragraph num="(1)"> <text>All packaging of any cannabis product for retail sale shall be:</text> <paragraph num="(a)"> <text>Tamper evident;</text> </paragraph> <paragraph num="(b)"> <text>Child resistant; and</text> </paragraph> <paragraph num="(c)"> <text>Plain and opaque.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Tamper evident packaging required under this section:</text> <paragraph num="(a)"> <text>For soft sided packaging:</text> <paragraph num="(i)"> <text>Shall be sealed at the opening in a way that indicates if the container has been opened or tampered with; and</text> </paragraph> <paragraph num="(ii)"> <text>Once opened shall remain clear that the package has previously been opened; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For a rigid container shall:</text> <paragraph num="(i)"> <text>Contain a tamper evident seal; or</text> </paragraph> <paragraph num="(ii)"> <text>Have an adhesive band or seal on the lid or enclosure that indicates the package has previously been opened.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any soft sided package shall be 4 mil or greater in thickness.</text> </paragraph> <paragraph num="(4)"> <text>Any package containing multiple servings shall be resealable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="General Labeling Requirements."> <paragraph num="A."> <text>All cannabis and cannabis products for retail sale shall be properly labeled in accordance with this regulation.</text> </paragraph> <paragraph num="B."> <text>Labels required under this regulation shall:</text> <paragraph num="(1)"> <text>Except as specifically authorized, be printed directly on, or on a label or sticker affixed directly to, the marketing layer;</text> </paragraph> <paragraph num="(2)"> <text>Use text no smaller than size 6 font or 1/12 an inch; and</text> </paragraph> <paragraph num="(3)"> <text>Use text clearly written and printed in the English language.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Warning Statements.</text> <paragraph num="(1)"> <text>All products sold for retail shall include all of the following warning statements in a manner that complies with §B of this regulation:</text> <paragraph num="(a)"> <text>“The contents may only be lawfully consumed by a consumer 21 years old or older, or a registered medical cannabis patient.”</text> </paragraph> <paragraph num="(b)"> <text>“Consumption of cannabis may impair your ability to drive a car or operate machinery. Please use extreme caution.”</text> </paragraph> <paragraph num="(c)"> <text>“There may be health risks associated with cannabis use, especially if pregnant or breastfeeding.”</text> </paragraph> <paragraph num="(d)"> <text>“This package contains cannabis. Keep out of reach of children and animals.”</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Any product intended for topical application shall include a statement identifying that the product is not intended for human consumption, ingestion, or inhalation.</text> </paragraph> <paragraph num="(3)"> <text>Any product for retail sale shall include the Maryland Poison Center emergency telephone number.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Product Information.</text> <paragraph num="(1)"> <text>All products sold for retail shall include the following product information in a manner that complies with §B of this regulation:</text> <paragraph num="(a)"> <text>Net weight of the cannabis, or cannabis product;</text> </paragraph> <paragraph num="(b)"> <text>Finished product lot number;</text> </paragraph> <paragraph num="(c)"> <text>Name of the licensee that packaged the product;</text> </paragraph> <paragraph num="(d)"> <text>Name and phone number of the licensee that manufactured the product to report an adverse event;</text> </paragraph> <paragraph num="(e)"> <text>An itemization, including weight, of all cannabinoid and terpene ingredients specified for the product, with concentrates of any cannabinoid of less than 1 percent printed with a leading zero before the decimal point;</text> </paragraph> <paragraph num="(f)"> <text>If applicable, a list of all major allergens contained in and used to manufacture the cannabis finished product in accordance with the Food Allergen Labeling and Consumer Protection Act of 2004, 21 U.S.C. §343 (2010), specifically milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat, and soybeans;</text> </paragraph> <paragraph num="(g)"> <text>A list of all noncannabis ingredients;</text> </paragraph> <paragraph num="(h)"> <text>A list of any solvents used to produce the product; and</text> </paragraph> <paragraph num="(i)"> <text>Dates corresponding to the date that:</text> <paragraph num="(i)"> <text>The product was harvested, packaged, or produced; and</text> </paragraph> <paragraph num="(ii)"> <text>The product would be considered expired by, or best used by.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The information required under §D(1)(e)—(g) of this regulation may be printed on an inner layer of a label or made available through a link or QR code.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A certificate of analysis completed by an independent testing laboratory in accordance with COMAR 14.17.08 and the Technical Authority shall be made available on the package through a link or QR code.</text> </paragraph> <paragraph num="F."> <text>Universal Symbol.</text> <paragraph num="(1)"> <text>Packages shall display the universal symbol:</text> <paragraph num="(a)"> <text>On the front or most predominantly displayed area of the package;</text> </paragraph> <paragraph num="(b)"> <text>In an area no smaller than ½ inch by ½ inch;</text> </paragraph> <paragraph num="(c)"> <text>In the form provided by the Administration and may not be modified, recreated, stylized, stretched, or otherwise distorted; and</text> </paragraph> <paragraph num="(d)"> <text>On a background where the symbol is clearly distinguishable and identifiable.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The following symbol shall be the only symbol used on packages under this regulation:</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Medical Cannabis Product Packaging and Labeling."> <paragraph num="A."> <text>Unless otherwise stated, product regulations under Regulations .02 and .03 of this chapter apply to medical cannabis products.</text> </paragraph> <paragraph num="B."> <text>In addition to the packaging and labeling requirements under Regulations .02 and .03 of this chapter, medical cannabis products shall:</text> <paragraph num="(1)"> <text>Maintain space for a licensed dispensary to attach a personalized label for the qualifying patient; and</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding the exemption in §D(2) of this regulation, bear a clear warning that it is illegal:</text> <paragraph num="(a)"> <text>For any person to possess or consume the contents of the package other than the qualifying patient; and</text> </paragraph> <paragraph num="(b)"> <text>To transfer the package or contents to any person other than a transfer by a caregiver to a qualifying patient.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>High potency products that are only authorized for sale to qualifying patients under COMAR 14.17.13.03A shall maintain the requirements under §B of this regulation on the product packaging from the licensed grower or processor.</text> </paragraph> <paragraph num="D."> <text>For products that are authorized for sale to either qualifying patients or adult use consumers, the warnings required under §B(2) of this regulation:</text> <paragraph num="(1)"> <text>May be applied to a sticker or label that can be attached to the product at the point of sale, such as the personalized label under §E of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Do not need to be included on a product sold to an adult-use consumer.</text> </paragraph> </paragraph> <paragraph num="E."> <text>All products dispensed to a qualifying patient under COMAR 14.17.12.04A shall include a personalized label for the qualifying patient, which shall include:</text> <paragraph num="(1)"> <text>The name of the qualifying patient;</text> </paragraph> <paragraph num="(2)"> <text>The name of the certifying provider;</text> </paragraph> <paragraph num="(3)"> <text>The name of the licensee where the product was dispensed;</text> </paragraph> <paragraph num="(4)"> <text>The date that the medical cannabis was dispensed;</text> </paragraph> <paragraph num="(5)"> <text>The name of the product;</text> </paragraph> <paragraph num="(6)"> <text>The strength of applicable cannabinoid and terpene compounds:</text> <paragraph num="(a)"> <text>Displayed in units appropriate to the dosage form; and</text> </paragraph> <paragraph num="(b)"> <text>Concentrations of any cannabinoid of less than 1 percent shall be printed with a leading zero before the decimal point;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The quantity of medical cannabis dispensed, displayed in units appropriate to the dosage form;</text> </paragraph> <paragraph num="(8)"> <text>Any directions for use of the product; and</text> </paragraph> <paragraph num="(9)"> <text>The instructions for proper storage or handling of the product.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Edible Cannabis Product Packaging."> <paragraph num="A."> <text>Unless otherwise stated, product regulations under Regulations .02—.04 of this chapter apply to edible cannabis products and tinctures.</text> </paragraph> <paragraph num="B."> <text>All edible cannabis product packaging shall include:</text> <paragraph num="(1)"> <text>Milligrams per single serving of total THC, total CBD, and any other marketed cannabinoid;</text> </paragraph> <paragraph num="(2)"> <text>Milligrams per package of total THC, total CBD, and any other marketed cannabinoid;</text> </paragraph> <paragraph num="(3)"> <text>The number of servings per package and, if applicable, the recommended size of a serving;</text> </paragraph> <paragraph num="(4)"> <text>A nutritional fact panel consistent with the U.S. Food and Drug Administration Standards;</text> </paragraph> <paragraph num="(5)"> <text>A list of all active and inactive ingredients in descending order of predominance by weight in the cannabis product; and</text> </paragraph> <paragraph num="(6)"> <text>A warning label that states, “Effects of this product may be delayed by 4 or more hours.”</text> </paragraph> </paragraph> <paragraph num="C."> <text>The nutritional fact panel required in §B(4) of this regulation may be printed on an inner layer of a label or made available on the package through a link or QR code.</text> </paragraph> <paragraph num="D."> <text>Any edible cannabis product containing multiple servings shall:</text> <paragraph num="(1)"> <text>Be resealable;</text> </paragraph> <paragraph num="(2)"> <text>Contain no greater than 10 milligrams of THC per serving;</text> </paragraph> <paragraph num="(3)"> <text>Contain no greater than 100 milligrams of THC per package;</text> </paragraph> <paragraph num="(4)"> <text>Clearly indicate the size of a serving; and</text> </paragraph> <paragraph num="(5)"> <text>Include within the package a measuring device that is appropriate for the product form, such as a dropper for liquids or a measuring spoon for powders.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Multiple, individually packaged single serving products may be packaged together by a licensed processor using a marketing layer if the marketing layer:</text> <paragraph num="(1)"> <text>Contains the necessary labels, warnings, and standards under this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Does not combine products the THC content of which exceeds 100 milligrams.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Packaging and Labeling Requirements of Cannabis Seeds and Plants."> <paragraph num="A."> <text>This regulation applies only to cannabis seeds and plants for home cultivation regulated under 14.17.13.07.</text> </paragraph> <paragraph num="B."> <text>Products sold under this regulation are exempt from Regulations .02—.05 of this chapter.</text> </paragraph> <paragraph num="C."> <text>Cannabis Seeds. Packaging for cannabis seeds for sale to consumers shall:</text> <paragraph num="(1)"> <text>Keep cannabis seeds dry;</text> </paragraph> <paragraph num="(2)"> <text>Prevent germination of the seeds in the packaging; and</text> </paragraph> <paragraph num="(3)"> <text>Not impart any deleterious substances into the cannabis seeds.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Labeling Requirements. All cannabis seeds or plants for home cultivation shall display on the marketing layer:</text> <paragraph num="(1)"> <text>The name of the licensed facility where the cannabis seeds were derived or propagated;</text> </paragraph> <paragraph num="(2)"> <text>The name of the licensed dispensary where the product is being sold to an individual for home cultivation;</text> </paragraph> <paragraph num="(3)"> <text>The net weight of the product, or the number of individual seeds; and</text> </paragraph> <paragraph num="(4)"> <text>A warning label that states, “For home cultivation only. Must be 21 years old or older or a registered patient for home cultivation.”</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Prohibited Packaging and Labeling."> <paragraph num="A."> <text>Cannabis products packaging and labeling may not bear any:</text> <paragraph num="(1)"> <text>Image that may appeal to minors, including:</text> <paragraph num="(a)"> <text>Resemblance to the trademarked, characteristic, or product-specialized packaging of any commercially available candy, snack, baked good or beverage;</text> </paragraph> <paragraph num="(b)"> <text>Images of food, candy, baked goods, cereal, fruit, beverages, or the words “candy” or “candies”;</text> </paragraph> <paragraph num="(c)"> <text>Images, graphics, features, or likeness to images, graphics, or features that are popularly used to advertise to children, such as cartoons, animals, neon colors, celebrities, mascots, or phrases;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Statement, artwork, or design that could reasonably mislead any person to believe that the package contains anything other than a cannabis finished product;</text> </paragraph> <paragraph num="(3)"> <text>Seal, flag, crest, coat of arms, or other insignia that could reasonably mislead any person to believe that the product has been endorsed, manufactured, or used by any State, county or municipality or any agency thereof;</text> </paragraph> <paragraph num="(4)"> <text>Depiction of any form of consumption of cannabis or cannabis products;</text> </paragraph> <paragraph num="(5)"> <text>Depiction of overconsumption or intoxicating effects of cannabis or cannabis products;</text> </paragraph> <paragraph num="(6)"> <text>Claims regarding health or physical benefits to the consumer; or</text> </paragraph> <paragraph num="(7)"> <text>False or misleading statements;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Labels, marketing layers or any other aspect of the product package are prohibited from obscuring any warnings, statements, or information required under this chapter.</text> </paragraph> <paragraph num="C."> <text>Products are prohibited from targeting or being designed to appeal to any individuals younger than 21 years old.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-203.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03D amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="19" heading="Cannabis Research"> <regulation prefix="Regulation" num=".01" heading="Academic Research."> <paragraph num="A."> <text>An entity eligible to register with the Administration for the purpose of conducting a bona fide research project relating to the uses, properties, or composition of cannabis includes:</text> <paragraph num="(1)"> <text>An institution of higher education;</text> </paragraph> <paragraph num="(2)"> <text>A related medical facility; or</text> </paragraph> <paragraph num="(3)"> <text>An affiliated biomedical research firm.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Academic research institutions and entities shall operate in accordance with Alcoholic Beverages and Cannabis Article, §36-701, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Registration.</text> <paragraph num="(1)"> <text>An entity qualified under §A of this regulation shall submit an application to the Administration that includes:</text> <paragraph num="(a)"> <text>The name of the primary researcher;</text> </paragraph> <paragraph num="(b)"> <text>The expected duration of the research project;</text> </paragraph> <paragraph num="(c)"> <text>The primary objectives of the research project, scope of work, and potential application(s) of the research findings;</text> </paragraph> <paragraph num="(d)"> <text>An application fee as specified in COMAR 14.17.21; and</text> </paragraph> <paragraph num="(e)"> <text>If applicable, a detailed budget.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Registrations under this regulation shall be valid until:</text> <paragraph num="(a)"> <text>There is a change in the research project;</text> </paragraph> <paragraph num="(b)"> <text>The institution withdraws the registration; or</text> </paragraph> <paragraph num="(c)"> <text>30 days have elapsed from the expected duration of the research project and the Administration has not been notified of any change or extension to the research project.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Modifications.</text> <paragraph num="(1)"> <text>The registered entity shall report any modifications to the scope, researcher, or any other information submitted as part of the application within 30 days to the Administration.</text> </paragraph> <paragraph num="(2)"> <text>The registered entity may continue to conduct research under this regulation while awaiting Administration approval of any modifications.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Research and Development."> <paragraph num="A."> <text>The Administration may register an entity to grow, process, test, or transfer cannabis for the purposes of research and development.</text> </paragraph> <paragraph num="B."> <text>An entity under §A of this regulation shall conduct research and development only for the purposes under Alcoholic Beverages and Cannabis Article, §36-702, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Registration.</text> <paragraph num="(1)"> <text>An entity shall submit an application to the Administration that includes:</text> <paragraph num="(a)"> <text>The name of the primary researcher or entity;</text> </paragraph> <paragraph num="(b)"> <text>The address the research will be primarily taking place;</text> </paragraph> <paragraph num="(c)"> <text>The research purpose; and</text> </paragraph> <paragraph num="(d)"> <text>An application fee as specified in COMAR 14.17.21.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Registrations under this regulation shall be valid for 2 years and may be renewed for additional 2 year terms in a manner determined by the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Research and development entities under this regulation shall otherwise comply with Alcoholic Beverages and Cannabis Article, §36-702, Annotated Code of Maryland, and the following requirements:</text> <paragraph num="(1)"> <text>The study shall be conducted in conformity with study protocols provided and any additional Administration guidance;</text> </paragraph> <paragraph num="(2)"> <text>The entity shall notify the Administration of any adverse events reported by study participants within 48 hours of the study’s primary researcher being made aware of the adverse event;</text> </paragraph> <paragraph num="(3)"> <text>Within 30 days, the entity or primary researcher shall update the Administration with any changes to the study protocols, including but not limited to:</text> <paragraph num="(a)"> <text>Scope;</text> </paragraph> <paragraph num="(b)"> <text>Researcher;</text> </paragraph> <paragraph num="(c)"> <text>Number of participants;</text> </paragraph> <paragraph num="(d)"> <text>Study duration; and</text> </paragraph> <paragraph num="(e)"> <text>Products used;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The entity may continue to conduct research under this regulation while awaiting Administration approval of any changes to the study protocols;</text> </paragraph> <paragraph num="(5)"> <text>The entity or primary researcher shall provide documentation of Institutional Review Board or Institutional Animal Care and Use Committee, whichever is applicable, approval prior to the beginning of the study;</text> </paragraph> <paragraph num="(6)"> <text>An entity shall track the cannabis used for research and development in the seed-to-sale tracking system;</text> </paragraph> <paragraph num="(7)"> <text>A batch or lot of cannabis originally used or processed for research and development purposes:</text> <paragraph num="(a)"> <text>May not be used in the processing of cannabis sold to a licensed dispensary; and</text> </paragraph> <paragraph num="(b)"> <text>Shall be destroyed and logged as green waste; and</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>An entity shall maintain a record of all research and development tests for at least 2 years and provide copies of the test results to the Administration, upon request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Edible Cannabis Product Development. An entity that processes edible cannabis products for research and development shall:</text> <paragraph num="(1)"> <text>Quarantine each batch or lot in a quarantine area and label each batch or lot with a distinctive label; and</text> </paragraph> <paragraph num="(2)"> <text>Process the cannabis for research and development during a time that does not overlap with the processing of any cannabis that will be intended for distribution.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Limited Testing for Edible Cannabis Product Development.</text> <paragraph num="(1)"> <text>An entity may conduct the research and development testing on the entity’s premises or through an independent testing laboratory.</text> </paragraph> <paragraph num="(2)"> <text>If an independent testing laboratory conducts the research and development testing on the edible cannabis product, the laboratory shall clearly mark any certificate of analysis or reporting of test results with “R&D TESTING ONLY” on the header and footer of the report in 20-point white font and a red background.</text> </paragraph> <paragraph num="(3)"> <text>The cannabis product shall be categorized as “Work in Process” in the seed-to-sale tracking system.</text> </paragraph> <paragraph num="(4)"> <text>Any edible cannabis product transferred from the premises for research and development testing shall:</text> <paragraph num="(a)"> <text>Be packaged in accordance with COMAR 14.17.18.05;</text> </paragraph> <paragraph num="(b)"> <text>Be labeled with the statements:</text> <paragraph num="(i)"> <text>“CAUTION: THIS PRODUCT IS FOR APPROVED R&D USAGE ONLY.”; and</text> </paragraph> <paragraph num="(ii)"> <text>“This product has not been approved by the Administration and is intended for research and development purposes only.”;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Identify the name and telephone number of the entity who manufactured the product; and</text> </paragraph> <paragraph num="(d)"> <text>Include a unique identifying number.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Inspections and Controls."> <paragraph num="A."> <text>The Administration may inspect entities registered under this chapter to ensure compliance with:</text> <paragraph num="(1)"> <text>Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>This subtitle;</text> </paragraph> <paragraph num="(3)"> <text>Any other violation of State, federal, or local:</text> <paragraph num="(a)"> <text>Law;</text> </paragraph> <paragraph num="(b)"> <text>Regulations; or</text> </paragraph> <paragraph num="(c)"> <text>Ordinances.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Inspections under this regulation may be announced or unannounced.</text> </paragraph> <paragraph num="C."> <text>The Administration may issue identification cards for individuals associated with research entities registered under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Reporting Requirements."> <paragraph num="A."> <text>The registrant shall submit to the Administration:</text> <paragraph num="(1)"> <text>An annual report on the progress and status of any research project; and</text> </paragraph> <paragraph num="(2)"> <text>A final report of the findings of the research project to the Administration within 30 days of the completion of the research project.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The final report shall include a summary of the research findings and their applications.</text> </paragraph> <paragraph num="C."> <text>A published article or document on the research project may serve as the final report.</text> </paragraph> <paragraph num="D."> <text>Approval is required by the Administration prior to publication of any findings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Prohibitions."> <paragraph num="A."> <text>Entities registered under this regulation may not dispense, sell, sample, or otherwise distribute cannabis or cannabis products to individuals outside of the scope the defined research project.</text> </paragraph> <paragraph num="B."> <text>Entities registered under this regulation may not otherwise operate in a manner that gives the appearance of the growing, processing, or dispensing of cannabis or cannabis products by a licensee.</text> </paragraph> <paragraph num="C."> <text>Entities registered under this regulation may not perform research activities outside of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-701, and 36-702, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02F amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> <chapter num="20" heading="Prohibited Acts"> <regulation prefix="Regulation" num=".01" heading="Definition."> <paragraph num="A."> <text>In this chapter, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Defined Term. “Naturally occurring biologically active chemical constituent” means a chemical compound, component, or other material found naturally in the Cannabis Sativa L. plant and recognized by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Prohibitions."> <paragraph num="A."> <text>A licensee may not:</text> <paragraph num="(1)"> <text>Sell, transfer, or deliver cannabis to an individual who is visibly intoxicated;</text> </paragraph> <paragraph num="(2)"> <text>Offer cannabis or cannabis products as a prize, premium or consideration for a lottery, contest, game of chance, game of skill, or competition of any kind;</text> </paragraph> <paragraph num="(3)"> <text>Conduct direct-to-consumer internet sales of adult-use cannabis or cannabis products on or before July 1, 2025; or</text> </paragraph> <paragraph num="(4)"> <text>Violate any part of:</text> <paragraph num="(a)"> <text>Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>This subtitle;</text> </paragraph> <paragraph num="(c)"> <text>Any other violation of State, federal, or local:</text> <paragraph num="(i)"> <text>Law;</text> </paragraph> <paragraph num="(ii)"> <text>Regulation; or</text> </paragraph> <paragraph num="(iii)"> <text>Ordinances.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Persons not registered or licensed under this subtitle may not:</text> <paragraph num="(1)"> <text>Operate a business or establishment that could reasonably be interpreted to be a licensee; or</text> </paragraph> <paragraph num="(2)"> <text>Sell or distribute a product intended for human consumption or inhalation that contains more than:</text> <paragraph num="(a)"> <text>0.5 milligrams of THC per serving; or</text> </paragraph> <paragraph num="(b)"> <text>2.5 milligrams of THC per package.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Exemptions.</text> <paragraph num="(1)"> <text>Persons are exempt from §B(2) of this regulation if they sell or distribute a hemp-derived tincture that complies with Alcoholic Beverages and Cannabis Article, §36-1102(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Products exempted under this subsection shall be tested by an Independent Testing Lab under COMAR 14.17.08.05A.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Sales Restrictions.</text> <paragraph num="(1)"> <text>Naturally Occurring Biologically Active Chemical Constituents.</text> <paragraph num="(a)"> <text>A person, registered agent, or licensed business may not sell or distribute a cannabinoid that is not derived from naturally occurring biological active chemical constituents.</text> </paragraph> <paragraph num="(b)"> <text>A licensed business may submit to the State Cannabis Testing Laboratory, in a manner determined by the Administration, other compounds to be considered for sale, distribution, and regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Businesses licensed under this subtitle may not:</text> <paragraph num="(a)"> <text>Have a license to sell alcoholic beverages under Alcoholic Beverages and Cannabis Article, Title 1 or 2, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Allow another business to sell alcoholic beverages within its licensed premises.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensee may not distribute any cannabis to any person if the licensee knows, or may have reason to know, that the distribution of cannabis or cannabis products to an individual does not comply with any provision of Alcoholic Beverages and Cannabis Article, Annotated Code of Maryland, or this subtitle.</text> </paragraph> <paragraph num="(4)"> <text>A licensee may not distribute any cannabis to any person if the licensee knows, or may have reason to know, that the cannabis or cannabis products itself does not comply with any provision of Alcoholic Beverages and Cannabis Article, Annotated Code of Maryland, or this subtitle.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Samples.</text> <paragraph num="(1)"> <text>A licensed business may not provide samples of cannabis or cannabis product unless authorized by this section.</text> </paragraph> <paragraph num="(2)"> <text>Under this section, samples are only authorized from a licensed business to:</text> <paragraph num="(a)"> <text>Another licensed business;</text> </paragraph> <paragraph num="(b)"> <text>An employee, owner, or agent of another licensed business; or</text> </paragraph> <paragraph num="(c)"> <text>An employee, owner, or agent of the licensed business.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Trade Samples.</text> <paragraph num="(a)"> <text>Trade samples shall only be provided by a licensed growers and processors and shall be:</text> <paragraph num="(i)"> <text>Provided solely for the purpose of business-to-business marketing;</text> </paragraph> <paragraph num="(ii)"> <text>Recorded in the Administration’s seed-to-sale system;</text> </paragraph> <paragraph num="(iii)"> <text>Packaged and labeled in accordance with COMAR 14.17.18;</text> </paragraph> <paragraph num="(iv)"> <text>Tested in accordance with COMAR 14.17.08; and</text> </paragraph> <paragraph num="(v)"> <text>Compliant with product requirements under COMAR 14.17.13.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Trade samples under this subsection may not be:</text> <paragraph num="(i)"> <text>Sold to another licensed business, patient, caregiver, or consumer;</text> </paragraph> <paragraph num="(ii)"> <text>Consumed on any licensed premises; or</text> </paragraph> <paragraph num="(iii)"> <text>A cannabis plant.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Employee Samples.</text> <paragraph num="(a)"> <text>Employee samples shall only be provided by a licensed business to an employee of the licensed business and shall be:</text> <paragraph num="(i)"> <text>Provided solely for the purpose of employee education;</text> </paragraph> <paragraph num="(ii)"> <text>Recorded in the Administration’s seed-to-sale system;</text> </paragraph> <paragraph num="(iii)"> <text>Packaged and labeled in accordance with COMAR 14.17.18;</text> </paragraph> <paragraph num="(iv)"> <text>Tested in accordance with COMAR 14.17.08; and</text> </paragraph> <paragraph num="(v)"> <text>Compliant with product requirements under COMAR 14.17.13.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Employee samples under this subsection may not be:</text> <paragraph num="(i)"> <text>Sold to another licensed business, patient, caregiver, or consumer;</text> </paragraph> <paragraph num="(ii)"> <text>Consumed on any licensed premises; or</text> </paragraph> <paragraph num="(iii)"> <text>A cannabis plant.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-1101, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 effective July 22, 2024 (51:14 Md. R. 678)</annotation> </annotations> </chapter> <chapter num="21" heading="Fees"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>The following fees are established by the Administration.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Fees."> <paragraph num="A."> <text>Application fees:</text> <paragraph num="(1)"> <text>For a standard license, on-site consumption license, or incubator space– $5,000; and</text> </paragraph> <paragraph num="(2)"> <text>For a micro license — $1,000.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Licensing fees:</text> <paragraph num="(1)"> <text>For a standard license, on-site consumption license, or incubator space issued under COMAR 14.17.06, the licensing fees for initial licensure or renewal shall be:</text> <paragraph num="(a)"> <text>Grower license — $50,000;</text> </paragraph> <paragraph num="(b)"> <text>Processor license — $25,000;</text> </paragraph> <paragraph num="(c)"> <text>Dispensary license — $25,000;</text> </paragraph> <paragraph num="(d)"> <text>Incubator space license — $10,000; and</text> </paragraph> <paragraph num="(e)"> <text>On-site consumption license — $10,000.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a micro license issued under COMAR 14.17.07:</text> <paragraph num="(a)"> <text>Grower license — $10,000;</text> </paragraph> <paragraph num="(b)"> <text>Processor license — $10,000; and</text> </paragraph> <paragraph num="(c)"> <text>Dispensary license — $10,000.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Licensing fees required under this section shall be valid for a 5-year period.</text> </paragraph> <paragraph num="(4)"> <text>A licensed social equity licensee shall have the licensing fees in §B(1) and (2) of this regulation reduced by 50 percent by the Administration for each license type held by the social equity licensees.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Registration fees:</text> <paragraph num="(1)"> <text>Cannabis agent fees:</text> <paragraph num="(a)"> <text>Registration fee to be paid every 2 years —$25; and</text> </paragraph> <paragraph num="(b)"> <text>Replacement identification card fee — $50.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Independent testing laboratory fees:</text> <paragraph num="(a)"> <text>Laboratory registration fee to be paid every 2 years — $500;</text> </paragraph> <paragraph num="(b)"> <text>Employee registration fee to be paid every 2 years —$25; and</text> </paragraph> <paragraph num="(c)"> <text>Replacement employee identification card fee — $50.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Registrant:</text> <paragraph num="(a)"> <text>Business registration fee to be paid every 2 years — $100;</text> </paragraph> <paragraph num="(b)"> <text>Agent registration fee to be paid every 2 years —$25; and</text> </paragraph> <paragraph num="(c)"> <text>Replacement agent identification card fee — $50.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Research and development fees:</text> <paragraph num="(a)"> <text>Academic research institution fees:</text> <paragraph num="(i)"> <text>Registration fee — $500;</text> </paragraph> <paragraph num="(ii)"> <text>Renew fee for each subsequent or modified research project — $100;</text> </paragraph> <paragraph num="(iii)"> <text>Academic research representative registration fee —$25; and</text> </paragraph> <paragraph num="(iv)"> <text>Academic research representative card replacement fee — $50.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Research and development entity fees:</text> <paragraph num="(i)"> <text>Registration fee — $1,000;</text> </paragraph> <paragraph num="(ii)"> <text>Renewal fee for each subsequent or modified research project — $500;</text> </paragraph> <paragraph num="(iii)"> <text>Research and development representative registration fee — $25; and</text> </paragraph> <paragraph num="(iv)"> <text>Research and development representative card replacement fee — $50.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Responsible vendor training program fees:</text> <paragraph num="(i)"> <text>Registration fee — $500; and</text> </paragraph> <paragraph num="(ii)"> <text>Renewal fee — $250.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Qualifying patient and caregiver fees:</text> <paragraph num="(1)"> <text>Identification card base fee — $25; and</text> </paragraph> <paragraph num="(2)"> <text>Replacement identification card fee — $50.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Micro license conversion fees:</text> <paragraph num="(1)"> <text>A micro licensee who wishes to convert the micro license into a standard license shall pay a pro-rated amount based on:</text> <paragraph num="(a)"> <text>The number of whole months remaining on the initial micro license; and</text> </paragraph> <paragraph num="(b)"> <text>The fee amount difference between a standard and micro license of the license type.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The conversion fee in this section shall be calculated by the Administration using:</text> <paragraph num="(a)"> <text>For growers:</text> <paragraph num="(i)"> <text>$50,000 for a full 5-year license term; or</text> </paragraph> <paragraph num="(ii)"> <text>A pro-rated amount for each remaining whole month the initial micro license is valid.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For processors:</text> <paragraph num="(i)"> <text>$25,000 for a full 5-year license term; or</text> </paragraph> <paragraph num="(ii)"> <text>A pro-rated amount for each remaining whole month the initial micro license is valid.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For dispensaries:</text> <paragraph num="(i)"> <text>$25,000 for a full 5-year license term; or</text> </paragraph> <paragraph num="(ii)"> <text>A pro-rated amount for each remaining whole month the initial micro license is valid.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The conversion fee calculated under this section shall be paid in full within 18 months of the date the conversion is in effect.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Edible cannabis product permit application fee —$1,000.</text> </paragraph> <paragraph num="G."> <text>Miscellaneous fees:</text> <paragraph num="(1)"> <text>Transfer of 5 percent or more ownership interest in or control of a grower, processor, dispensary, on-site consumption, or incubator space license with entity transferee — $1,000;</text> </paragraph> <paragraph num="(2)"> <text>Transfer of 5 percent or more ownership interest in a grower, processor, dispensary, on-site consumption, or incubator space license with individual transferee — $500 per person;</text> </paragraph> <paragraph num="(3)"> <text>Change in the location of a grower, processor, or dispensary premises – $500;</text> </paragraph> <paragraph num="(4)"> <text>License reinstatement fee — $2,000;</text> </paragraph> <paragraph num="(5)"> <text>Receivership application fee — $1,000; and</text> </paragraph> <paragraph num="(6)"> <text>Management agreement fee — $1,000.</text> </paragraph> </paragraph> <paragraph num="H."> <text>At its discretion, the Administration may waive or reduce the fees established in this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-205, and 36-403, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.02 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective May 26, 2025 (52:10 Md. R. 436); March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02F amended effective March 16, 2026 (53:5 Md. R. 244)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02G amended effective May 26, 2025 (52:10 Md. R. 436)</annotation> </annotations> </chapter> <chapter num="22" heading="Hearing Procedures"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to hearings before the Administration or its designee.</text> </paragraph> <paragraph num="B."> <text>These procedures are intended to supplement the procedures required by law under State Government Article, §10-201 et seq., Annotated Code of Maryland. They are not to be construed as creating rights not set out by law. In the event of conflict, statutory provisions take precedence over this chapter.</text> </paragraph> <paragraph num="C."> <text>The right to a hearing under this regulation is granted to a licensee, registrant, agent, owner, or selected applicant that has been subject to an action by the Administration other than a notice of intent to summarily suspend or summary suspension as set forth in COMAR 14.17.14.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Final decision maker” means:</text> <paragraph num="(a)"> <text>The Administration’s hearing officer; or</text> </paragraph> <paragraph num="(b)"> <text>A designee for the purpose of rendering a final decision in a contested case.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Final decision order” means a final ruling in a contested case that is adverse to a party and which shall comply with the requirements of State Government Article §10-221 et seq., Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Hearing” means a contested case hearing as defined by the Administrative Procedure Act, State Government Article, §10-201 et seq., Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Hearing officer” means the individual designated to preside over an evidentiary hearing in a contested case.</text> </paragraph> <paragraph num="(5)"> <text>“Notice of agency action” means a document issued by the Administration, including:</text> <paragraph num="(a)"> <text>Granting a license or registration;</text> </paragraph> <paragraph num="(b)"> <text>Denying a license or registration;</text> </paragraph> <paragraph num="(c)"> <text>Letter of non-compliance;</text> </paragraph> <paragraph num="(d)"> <text>Issuance of a fine;</text> </paragraph> <paragraph num="(e)"> <text>Remedial action certification;</text> </paragraph> <paragraph num="(f)"> <text>Issuance of administrative charges; or</text> </paragraph> <paragraph num="(g)"> <text>Revocation.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Party” means a licensee, registrant, selected applicant, or the Administrative Prosecutor.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Notice of Agency Action."> <paragraph num="A."> <text>The Administration shall provide notice of agency action and a statement of the right to a hearing required by law when it takes an agency action. The notice shall contain the information required by State Government Article, §§10-207 and 10-208, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Administration may delegate hearing authority under State Government Article, §10-205, Annotated Code of Maryland, and any delegated hearings shall be conducted in accordance with this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Request for a Hearing."> <paragraph num="A."> <text>A party may file a request for a hearing within 30 days of the date of the notice of agency action.</text> </paragraph> <paragraph num="B."> <text>If a party does not submit a request for a hearing within the 30-day period, the agency action becomes final and is not subject to appeal.</text> </paragraph> <paragraph num="C."> <text>The Administration may delegate a contested case regarding Administration determination to the Office of Administrative Hearings, as permitted and consistent with State Government Article, §10-205, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Postponement."> <paragraph num="A."> <text>A hearing officer shall consider a request for postponement only if the requesting party can establish good cause for the postponement.</text> </paragraph> <paragraph num="B."> <text>Except as provided in §D of this regulation, a request for postponement shall be made in writing and be received by the Administration no fewer than 5 business days before the scheduled hearing.</text> </paragraph> <paragraph num="C."> <text>The hearing officer may require documentation of the reasons for the postponement request from the party.</text> </paragraph> <paragraph num="D."> <text>Emergency Request for Postponement.</text> <paragraph num="(1)"> <text>For purposes of this paragraph, “emergency” means a sudden, unforeseen occurrence requiring immediate attention which arises within 5 business days of the hearing.</text> </paragraph> <paragraph num="(2)"> <text>In an emergency, a request for postponement may be made by telephone.</text> </paragraph> <paragraph num="(3)"> <text>The hearing officer may require documentation of the reasons for the emergency postponement request from a party.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Prehearing Conference and Case Resolution."> <paragraph num="A."> <text>Before a hearing, the hearing officer may:</text> <paragraph num="(1)"> <text>Hold a prehearing conference; and</text> </paragraph> <paragraph num="(2)"> <text>Review or request materials relevant to the proceedings.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If all parties agree at a prehearing conference, a hearing officer may dispose of an issue by stipulation or settlement stating whether the disposition is with or without prejudice.</text> </paragraph> <paragraph num="C."> <text>Case Resolution.</text> <paragraph num="(1)"> <text>The Administration may initiate a case resolution process with parties after administrative charges have been filed or upon the request for a hearing.</text> </paragraph> <paragraph num="(2)"> <text>Any cases that are not resolved through case resolution shall proceed to a hearing in accordance with this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Scheduling a Hearing."> <paragraph num="A."> <text>After receipt of a timely request for a hearing, the Administration shall schedule a hearing as soon as practicable.</text> </paragraph> <paragraph num="B."> <text>The hearing officer or their designee shall notify the party:</text> <paragraph num="(1)"> <text>Of the date, time, and location of hearing;</text> </paragraph> <paragraph num="(2)"> <text>Of the statutory and regulatory authority of the Administration’s action or proposed action;</text> </paragraph> <paragraph num="(3)"> <text>That the party may present witnesses and documents at the hearing;</text> </paragraph> <paragraph num="(4)"> <text>That the failure to appear for the scheduled hearing may nonetheless result in a final decision or order issued by the final decision maker;</text> </paragraph> <paragraph num="(5)"> <text>Of any applicable deadlines for submission of a prehearing statement, motion, or exchange of hearing exhibits; and</text> </paragraph> <paragraph num="(6)"> <text>If the hearing is by telephone, video, or other electronic means, of instructions on how to appear for the hearing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon request by a party, witness, or representative who cannot hear, speak, or understand the spoken or written English language, the Administration shall provide a qualified interpreter during the proceeding in which the party, witness, or representative is participating as required by the Americans with Disabilities Act.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Filing."> <text>Unless otherwise provided by law:</text> <paragraph num="A."> <text>An initial pleading is deemed to be filed on the earlier of the date that a request for hearing, along with all required fees, necessary documents, and other information, is postmarked or received by the Administration, if required to be filed with the Administration;</text> </paragraph> <paragraph num="B."> <text>Other pleadings are deemed to be filed on the earliest of the date on which they are addressed to the Administration and postmarked; and</text> </paragraph> <paragraph num="C."> <text>Non-postmarked documents delivered or electronically transmitted to the Administration after 5 p.m. are deemed to be filed on the Administration’s next business day.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Hearings."> <paragraph num="A."> <text>Procedures.</text> <paragraph num="(1)"> <text>The Administration shall record all hearings and provide a copy of that recording upon request.</text> </paragraph> <paragraph num="(2)"> <text>A party may produce witnesses and documents in support of the party’s position.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Written Subpoenas.</text> <paragraph num="(1)"> <text>A party may request that the hearing officer issue subpoenas for witnesses or documents necessary for the hearing.</text> </paragraph> <paragraph num="(2)"> <text>A party shall make the request in writing, no later than 21 days before the hearing, explaining why the subpoena is necessary.</text> </paragraph> <paragraph num="(3)"> <text>The hearing officer may:</text> <paragraph num="(a)"> <text>Question any witnesses;</text> </paragraph> <paragraph num="(b)"> <text>In accordance with State Government Article, §10-219(a), Annotated Code of Maryland, consult with any employee of the Administration before making a decision in a case; or</text> </paragraph> <paragraph num="(c)"> <text>Decline to issue the subpoena.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Evidence.</text> <paragraph num="(1)"> <text>The hearing officer shall consider evidence of the type and in the manner prescribed by State Government Article, §10-213, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Copies of documents may be admitted, although the Administration’s hearing officer may require production of originals.</text> </paragraph> <paragraph num="(3)"> <text>The Administration shall retain documentary or other evidence for at least 60 days after a final order has been issued and all appeal rights have been exhausted or waived. The evidence may then be destroyed unless the owner or person producing it makes a written request for its return.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Burden of Proof.</text> <paragraph num="(1)"> <text>The standard of proof in a hearing shall be a preponderance of evidence.</text> </paragraph> <paragraph num="(2)"> <text>In the hearing of a contested case involving allegations that a party violated a law or regulation, the Administration shall bear the burden of proof that the party committed the violations that resulted in the Administration’s action against the party.</text> </paragraph> <paragraph num="(3)"> <text>In the hearing of a contested case resulting from the denial, or proposed denial, of a license, registration, or permit, the applicant shall have the burden of establishing the applicant's entitlement to the license, registration, or permit.</text> </paragraph> <paragraph num="(4)"> <text>In the hearing of a contested case resulting from an advertisement alleged to not comply with the requirements of Alcoholic Beverages and Cannabis Article, §§36-903(a)(1)(iv), Annotated Code of Maryland, there is a rebuttable presumption that the advertisement at issue is prohibited unless or until a respondent demonstrates that it is permissible.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Construction.</text> <paragraph num="(1)"> <text>In hearings conducted by an Administrative Law Judge of the Office of Administrative Hearings, COMAR 14.17.22, et seq shall whenever possible be construed as supplementing and in harmony with COMAR 28.02.01.</text> </paragraph> <paragraph num="(2)"> <text>In the event of a conflict between COMAR 14.17.22 et seq. and COMAR 28.02.01, this subtitle shall apply.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Hearings Conducted by Electronic Means.</text> <paragraph num="(1)"> <text>A hearing officer may conduct all or part of a hearing by telephone, video conferencing, or other electronic means, with the consent of all parties.</text> </paragraph> <paragraph num="(2)"> <text>All substantive and procedural rights applicable to hearings described in this regulation apply to telephone, video, or other electronic hearings, subject only to the limitations of the physical arrangement.</text> </paragraph> <paragraph num="(3)"> <text>For a telephone, video, or other electronic hearing, a party shall provide documentary evidence to be offered to all parties so that each party and the hearing officer receive it within the time specified by the hearing officer or, if not specified, no less than 15 days before the scheduled hearing.</text> </paragraph> <paragraph num="(4)"> <text>For a telephone, video, or other electronic hearing, the following may be considered a failure to appear and result in the assessment or denial of the application for refund becoming final and not subject to appeal:</text> <paragraph num="(a)"> <text>Failure to answer the telephone for 15 minutes from the time set for the hearing;</text> </paragraph> <paragraph num="(b)"> <text>Failure to free the telephone for a hearing;</text> </paragraph> <paragraph num="(c)"> <text>Any other failure without good cause to be ready to proceed with the hearing as scheduled.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Final Determination."> <paragraph num="A."> <text>A Notice of Agency Action becomes a final decision or order if a request for a hearing is not made timely.</text> </paragraph> <paragraph num="B."> <text>The Administration may delegate to an Administrative Law Judge responsibility to make:</text> <paragraph num="(1)"> <text>Proposed findings of fact;</text> </paragraph> <paragraph num="(2)"> <text>Proposed findings of fact and proposed conclusions of law; or</text> </paragraph> <paragraph num="(3)"> <text>Proposed findings of fact, proposed conclusions of law, and proposed disposition.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Administration does not preside over hearing, it may make changes, modifications, or amendments to the proposed decision in accordance with State Government Article, §10-216, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>The notice of final determination issued by an Administration hearing officer shall summarize:</text> <paragraph num="(1)"> <text>Findings of fact and conclusions of law;</text> </paragraph> <paragraph num="(2)"> <text>Any adjustments to the determination of fines or penalties and the reasons for the Administration’s action;</text> </paragraph> <paragraph num="(3)"> <text>The deadline for payment of a fine or penalty; and</text> </paragraph> <paragraph num="(4)"> <text>In the case that the Administration orders a suspension or revocation of a license as a result of a hearing, the reason for the Administration's action.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The final determination exhausts all administrative remedies.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Record."> <text>The hearing officer shall create and maintain a record that includes the information set forth in State Government Article, §10-218, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Judicial Review."> <paragraph num="A."> <text>A party may appeal the final determination of the Administration to a Maryland circuit court if done so within 30 days of receipt of the final determination.</text> </paragraph> <paragraph num="B."> <text>For purposes of an appeal, the venue in the Circuit Court of Anne Arundel County shall be proper as that is where the Administration resides and carries on its regular business.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §36-202, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07B, C amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation> </annotations> </chapter> </subtitle> <subtitle num="18" heading="State Archives"> <chapter num="01" heading="Certificates of Reservation and Land Patents"> <regulation prefix="Regulation" num=".01" heading="Application for Certificates of Reservation."> <text>All applications for certificates of reservation shall be on forms required by the Commissioner of Land Patents and shall, in the case of a unit of State government, be filed with a copy of the Board of Public Works agenda item approving the request to apply or, in the case of any other governmental body, be filed with a copy of a document from the appropriate authority approving the request to apply. An application may not be considered filed until it has been determined complete and in order by the Commissioner or the Commissioner's authorized agent.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Applications for Warrants to Survey or Resurvey."> <paragraph num="A."> <text>All applications for warrants to survey or resurvey shall be on forms required by the Commissioner of Land Patents and shall be filed in triplicate with certified copies of documents, where required, attached to each copy. The application shall be accompanied by cash, check, or money order in the amount of $100. An application may not be considered filed until it has been determined complete and in order by the Commissioner or his duly authorized agent.</text> </paragraph> <paragraph num="B."> <text>In complying with Real Property Article, §13-302(a)(2), Annotated Code of Maryland, that is, in supplying the names and addresses of all persons other than the applicant who would obtain a direct or indirect title interest in the land, the applicant may list a spouse but need not list all possible heirs to the title. It is to be understood that the purpose of Real Property Article, §13-302(a)(2) is to make certain that the applicant is applying solely on his own behalf and not on the behalf of any hidden partners, commercial enterprise, corporate or otherwise, or as an agent on behalf of any undisclosed principals.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Warrants."> <paragraph num="A."> <text>Warrants to survey or resurvey shall only be issued to a professional land surveyor or property line surveyor licensed under the Maryland Professional Land Surveyors Act.</text> </paragraph> <paragraph num="B."> <text>Warrants to survey or resurvey shall be on forms prescribed by the Commissioner of Land Patents and shall be sent to the surveyor by the Commissioner with a copy of the application attached. The notice of issuance of warrant required by Real Property Article, §13-308 shall be prepared by the Commissioner and sent to the applicant who shall then see to its newspaper publication and posting and provide the Commissioner with the certificate of publication and the sheriff's certificate of posting. All costs of the publication and posting shall be borne by the applicant, and the Commissioner of Land Patents bears no responsibility for it.</text> </paragraph> <paragraph num="C."> <text>In his acknowledgment of receipt of the warrant, the surveyor shall understand “last publication of notice” in Real Property Article, §13-307(b)(2) to mean the last publication in a newspaper as specified in Real Property Article, §13-308(c)(1)(i). That is to say, the surveyor shall set a date for making the survey which shall be no earlier than 10 days and no later than 6 months after the appearance of the third weekly newspaper notice required by Real Property Article, §13-308(c)(1)(i).</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Surveys."> <text>Upon issuance of a warranty to survey or resurvey, the applicant shall immediately contact the surveyor and shall cooperate with the surveyor in all respects as he may require. Compensation of the surveyor shall be the exclusive responsibility of the applicant, and the Commissioner of Land Patents assumes no responsibility for it.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Previously Performed Surveys."> <paragraph num="A."> <text>The Commissioner may accept a previously performed survey upon finding that the surveyor is a qualified professional land surveyor or property line surveyor licensed under the Maryland Professional Land Surveyors Act, that the survey was conducted in accordance with standards required by the Commissioner, and that adjoining landowners were given written notice of the survey.</text> </paragraph> <paragraph num="B."> <text>Unless as otherwise provided, the provisions of Real Property Article, Title 13, Annotated Code of Maryland, and this chapter applicable to a survey performed pursuant to a warrant issued by the Commissioner are applicable to a previously performed survey.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Certificates of Survey."> <paragraph num="A."> <text>Certificates of survey shall be on forms prescribed by the Commissioner of Land Patents and shall be filed in duplicate.</text> </paragraph> <paragraph num="B."> <text>The plat required by Real Property Article, §13-310(b)(1), shall be filed in duplicate. Both plats shall be submitted on linen sheets or an acceptable equivalent. The signature and seal of the surveyor shall be affixed to to the plats as well as to the certificates of survey.</text> </paragraph> <paragraph num="C."> <text>Upon receipt of the certificates, plats, and the surveyor's description of the land to be patented, the Commissioner shall immediately forward copies to the Department of Transportation and the Department of Natural Resources so those agencies can better determine whether the land will be needed for future public use.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Certificate of Valuation."> <paragraph num="A."> <text>In providing the statement of the reasons for the valuation as required by Real Property Article, §13-313(b)(3), the assessors shall be as specific as possible. Mere statements as “based on sales in the area” are inadequate. Examples of recent sales valuations of similar property should be included in the reasons for the valuation.</text> </paragraph> <paragraph num="B."> <text>In the case of an application by a governmental body for a certificate of reservation, the Supervisor of Assessments is not required to assess the value of the land.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Objections."> <paragraph num="A."> <text>Persons entitled to object under Real Property Article, §13-401 shall do so in the manner prescribed under Real Property Article, §13-402, within 6 months after the issuance of the warrant to survey or 60 days after the surveyor's return of the certificate of survey, whichever is later.</text> </paragraph> <paragraph num="B."> <text>Acceptance of a previously performed survey does not preclude an objector from raising any objection that might otherwise have been raised had the survey been performed pursuant to a warrant issued by the Commissioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Determination of Forum."> <text>Requests of parties to the proceeding for referral to the circuit court may be made in the manner and within the time required by Real Property Article, §13-405, Annotated Code of Maryland, and the Commissioner's determination of an appropriate forum shall be final.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Hearings Before Commissioner."> <paragraph num="A."> <text>This regulation governs hearings on an application for a land patent or a certificate of reservation. To the extent that is practical, as determined by the Commissioner, this regulation also governs other hearings conducted by the Commissioner.</text> </paragraph> <paragraph num="B."> <text>Location and Date. The hearing shall take place at the State Archives, 350 Rowe Boulevard, Annapolis, Maryland, on the date and at a time specified by the Commissioner. For cause, the Commissioner may designate another site as the place for the hearing. At the request of a party or at the Commissioner's initiative, a hearing may be postponed or continued to another date and time or moved to another site.</text> </paragraph> <paragraph num="C."> <text>Notice. At least 15 days before the hearing, the Commissioner shall send a written notice to all parties advising them of the place, date, and time of the hearing. To the extent that the issues have been defined, the notice shall state the issues to be considered and decided. In the event of a postponement or continuance, the Commissioner shall give notice as may be effective in the circumstances.</text> </paragraph> <paragraph num="D."> <text>Parties. The applicant and a person or governmental entity which has filed an objection are parties.</text> </paragraph> <paragraph num="E."> <text>Representation. Parties may appear in proper person or by counsel. Parties represented by counsel shall advise the Commissioner of the counsel's name at least 10 days before the hearing.</text> </paragraph> <paragraph num="F."> <text>Presiding Officer. The Commissioner is the presiding officer at the hearing. The Commissioner has complete charge of the hearing and shall conduct it in accordance with the Administrative Procedure Act.</text> </paragraph> <paragraph num="G."> <text>Counsel to the Presiding Officer. If requested by the Commissioner, counsel to the State Archives or another attorney designated by the Attorney General shall serve as counsel to the Commissioner. Counsel to the Commissioner has all the rights and privileges that counsel for a party would have.</text> </paragraph> <paragraph num="H."> <text>Prehearing Conference. The Commissioner may, upon due notice, hold a prehearing conference with the parties for the purpose of defining the issues, entering stipulations, and resolving other matters preliminary to the hearing.</text> </paragraph> <paragraph num="I."> <text>List of Witnesses, Exhibits, and Documents. Before the hearing, the Commissioner may order the parties to file a list of witnesses, exhibits, and documents which they expect to call or introduce into evidence. Copies of the list shall be made available to all parties.</text> </paragraph> <paragraph num="J."> <text>Record and Transcript.</text> <paragraph num="(1)"> <text>The Commissioner shall prepare an official record, which includes the pleadings, testimony, exhibits, and other memoranda or material filed in the proceeding.</text> </paragraph> <paragraph num="(2)"> <text>Unless waived by all parties, a stenographic record of the hearing shall be made and the expense shall be one of the costs of the hearing. If the record is transcribed at the direction of the Commissioner, a party may obtain a copy upon paying the cost of reproduction. If the record is not transcribed at the direction of the Commissioner, a party may, at the party's own expense, request that the record be transcribed and the Commissioner and any party may obtain a copy upon payment of the cost of reproduction.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Order of Procedure. Unless directed otherwise by the Commissioner, the applicant shall call witnesses and present evidence first. The objecting parties shall then call witnesses and present evidence. The applicant may then call witnesses and present evidence in rebuttal.</text> </paragraph> <paragraph num="L."> <text>Opening Statements. The parties or their counsel may make opening statements.</text> </paragraph> <paragraph num="M."> <text>Witnesses, Evidence, and Motions.</text> <paragraph num="(1)"> <text>Subject to the rules of evidence of the Administrative Procedure Act, the parties and the Commissioner may call witnesses and present evidence.</text> </paragraph> <paragraph num="(2)"> <text>Witnesses shall testify under oath and are subject to cross examination by the other parties and the Commissioner, or the Commissioner's counsel.</text> </paragraph> <paragraph num="(3)"> <text>Parties may make motions, exceptions, and objections. As the Commissioner considers appropriate, the Commissioner may allow other parties to respond. Except for good cause, the Commissioner shall promptly rule on all motions, exceptions, and objections.</text> </paragraph> <paragraph num="(4)"> <text>Parties represented by counsel may only examine and cross examine witnesses and make motions, exceptions, objections, and responses by counsel.</text> </paragraph> <paragraph num="(5)"> <text>The burden of proof is on the applicant.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Memoranda and Briefs. The Commissioner may allow the parties to submit memoranda and briefs in the form and number as the Commissioner may direct.</text> </paragraph> <paragraph num="O."> <text>Closing Arguments. The parties or their counsel may make closing arguments.</text> </paragraph> <paragraph num="P."> <text>Opinions. The Commissioner shall issue a written opinion within 30 days of the end of the hearing. A copy shall be promptly sent to each party.</text> </paragraph> <paragraph num="Q."> <text>Costs. The Commissioner may assess a party with any part of the costs of the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Purchase Price."> <paragraph num="A."> <text>The purchase price shall be the fair market value of the land, as determined by the Commissioner under Real Property Article, §13-313, as amended by Acts of 1977, Chapter 162, less all expenses of the surveyor, reasonable attorney's fees, and costs charged by the Commissioner. Within 15 days after the hearing, the applicant must submit an account of the expenses deductible by law. Publication costs are not deductible items under current legislation.</text> </paragraph> <paragraph num="B."> <text>A governmental body requesting a certificate of reservation is not required to pay the purchase price of the land.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Certificates of Reservation."> <text>In the case of an application for a certificate of reservation, the Commissioner's opinion and findings shall constitute the certificate of reservation and the description of the land provided by the surveyor shall be made an attachment thereto.</text> </regulation> <regulation prefix="Regulation" num=".13" heading="Patents."> <text>After the Commissioner has prepared, sealed, and signed the patent, he shall forward it to the assistant attorney general assigned. The assistant attorney general shall then examine the patent as to form and legal sufficiency, and, if the contents be deemed in order, he shall endorse the patent in the space beneath the Commissioner's signature with the statement, “Approved as to form and legal sufficiency this ____ day of __________ , 19____ ”, and affix his signature. The patent shall then be forwarded by the Commissioner to the Board of Public Works as required under Real Property Article, §13-502, as amended by Acts of 1977, Chapter 162. If the patent is approved, the patent shall be endorsed, “Approved by the Board of Public Works this ____ day of __________ , 19____”, and signed by the Secretary of the Board of Public Works.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Mail."> <text>In addition to using restricted delivery for mailing the warrant (Real Property Article, §13-306), the notice of issuance of warrant (Real Property Article, §13-308(a)), the notice of the return of the certificate of survey (Real Property Article, §13-311(b)(2)), the order for hearing or order for referral of hearing (Real Property Article, §13-405(c)(2)), and the notice of purchase price (Real Property Article, §13-409) as required by the Annotated Code of Maryland, the Commissioner shall use restricted delivery for requesting the valuation of the supervisor of assessments, for issuing copies of the final judgment, and for issuing the patent to the applicant.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Expenses."> <text>If the Commissioner finds that an applicant for a land patent acted in bad faith and without substantial justification, the Commissioner may require the applicant to pay the reasonable expenses of the objectors, including the objector's attorneys' fees and expert witness fees, and the reasonable expenses of the Commissioner, including administration, research, and hearing expenses.</text> </regulation> <regulation prefix="Regulation" num=".16" heading="General."> <paragraph num="A."> <text>These procedural regulations are not intended to change any part of the Real Property Article, Title 13, Annotated Code of Maryland. The intention is to clarify certain provisions thereof and to provide an orderly procedure for the granting of certificates of reservation or the issuance of land patents.</text> </paragraph> <paragraph num="B."> <text>Except as otherwise provided, the provisions of Real Property Article, Title 13, Annotated Code of Maryland, and this chapter applicable to the issuing of land patents are applicable to the granting of certificates of reservation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-1007, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 6, 1978 (5:20 Md. R. 1498)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 04.01.01 to 04.20.01</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 04.20.01 to 14.18.01 effective</annotation> <annotation type="History" subtype="Administrative History">June 29, 1987 (14:13 Md. R. 1474)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective June 29, 1987 (14:13 Md. R. 1474)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A amended effective June 29, 1987 (14:13 Md. R. 1474)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 4, 1994 (21:13 Md. R. 1159)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective December 17, 2007 (34:25 Md. R. 2214)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective December 17, 2007 (34:25 Md. R. 2214)</annotation> </annotations> </chapter> <chapter num="02" heading="Records Retention and Disposition Schedules"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of these regulations is to:</text> <paragraph num="A."> <text>Protect records considered essential to the continuing operation of government;</text> </paragraph> <paragraph num="B."> <text>Guarantee the integrity and preservation of permanent records;</text> </paragraph> <paragraph num="C."> <text>Ensure the legal admissibility of the permanent record;</text> </paragraph> <paragraph num="D."> <text>Secure the rights and privileges of citizens;</text> </paragraph> <paragraph num="E."> <text>Assure public access to the records of government;</text> </paragraph> <paragraph num="F."> <text>Promote agency legal and fiscal accountability; and</text> </paragraph> <paragraph num="G."> <text>Provide a means to document agency administrative history.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agency” means any office, department, board, commission or other separate unit of Maryland government, including the executive, legislative, and judicial branches of government, and all political subdivisions.</text> </paragraph> <paragraph num="(2)"> <text>“Appraisal” is the process of determining how long, in what format, and under what circumstances a record series ought to be preserved, based upon the information contained in the records inventory.</text> </paragraph> <paragraph num="(3)"> <text>“Archives” means the Maryland State Archives.</text> </paragraph> <paragraph num="(4)"> <text>“Custodian” means an officer or employee of the State or a political subdivision who, whether or not the officer or employee has physical custody and control of a public record, is responsible for keeping the public record.</text> </paragraph> <paragraph num="(5)"> <text>“Division” means the Records Management Division of the Department of General Services.</text> </paragraph> <paragraph num="(6)"> <text>“Non-permanent record” means a public record with temporary value which may be destroyed after the passage of a specified period of time.</text> </paragraph> <paragraph num="(7)"> <text>“Permanent record” means a public record which is considered by law, statute, rule, agency personnel or the State Archivist to have ongoing administrative, fiscal, legal, historical, or other archival value.</text> </paragraph> <paragraph num="(8)"> <text>“Publication” means any informational material developed by or for an agency for general public dissemination.</text> </paragraph> <paragraph num="(9)"> <text>Record.</text> <paragraph num="(a)"> <text>“Record” means any documentary material in any form created or received by an agency in connection with the transaction of public business; and</text> </paragraph> <paragraph num="(b)"> <text>“Record” includes:</text> <paragraph num="(i)"> <text>Written materials, email, books, photographs, photocopies, publications, forms, microfilms, tapes, computerized records, maps, drawings, and other materials in any format;</text> </paragraph> <paragraph num="(ii)"> <text>Data generated, stored, received, or communicated by electronic means for use by, or storage in, an information system or for transmission from one information system to another.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Records inventory” means a survey of all records series maintained by an agency resulting in a detailed itemized compilation of the records in the possession of the agency, and is the first step in preparing a records retention and disposition schedule.</text> </paragraph> <paragraph num="(11)"> <text>“Records officer” means any person or persons designated according to the provisions of this chapter whose responsibilities include the development and oversight of agency records management programs.</text> </paragraph> <paragraph num="(12)"> <text>“Record series” means a set of similar records maintained in any form or format.</text> </paragraph> <paragraph num="(13)"> <text>“Schedule” means a records retention and disposition schedule which is an official document listing and describing all records of an agency, and provides:</text> <paragraph num="(a)"> <text>For the permanent retention of records considered by statute or the Archivist to be of permanent value; and</text> </paragraph> <paragraph num="(b)"> <text>For the destruction of records that are not essential to agency operations after the lapse of a stated period of time.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Scope."> <text>These regulations apply to all:</text> <paragraph num="A."> <text>Agencies; and</text> </paragraph> <paragraph num="B."> <text>Records.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Agency Responsibilities."> <text>Agencies shall:</text> <paragraph num="A."> <text>Develop schedules;</text> </paragraph> <paragraph num="B."> <text>Review and update their schedules at least once every 2 years;</text> </paragraph> <paragraph num="C."> <text>Establish and maintain a records management program;</text> </paragraph> <paragraph num="D."> <text>Provide copies of publications to Archives as soon after release to the public as is practicable;</text> </paragraph> <paragraph num="E."> <text>Initiate appropriate action to recover records removed unlawfully or without authorization; and</text> </paragraph> <paragraph num="F."> <text>Transfer to Archives permanent record material not needed for the current operation of the agency in accordance with procedures outlined in this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Duties of Custodians, Public Officials, and Employees."> <paragraph num="A."> <text>It is the responsibility of all custodians, public officials, and employees to:</text> <paragraph num="(1)"> <text>Retain and protect all records in their custody;</text> </paragraph> <paragraph num="(2)"> <text>Cooperate with Division and Archives in the establishment and maintenance of an active and continuous program for the economical and efficient management of records;</text> </paragraph> <paragraph num="(3)"> <text>Ensure that agency records, including electronic records, are covered by a schedule, which shall outline procedures to ensure the retention and usability throughout the authorized lifecycle of the records.</text> </paragraph> </paragraph> <paragraph num="B."> <text>No officer, employee, or contractor of any agency shall destroy, sell, or otherwise dispose of any record in such person's care or custody or under such person's control without first having followed the procedures under Regulation .07 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Duties of Division and Archives."> <paragraph num="A."> <text>The Division shall assist agency personnel in the development of schedules by providing guidance, templates, forms, and advice.</text> </paragraph> <paragraph num="B."> <text>Upon request from an agency or the Division, the Archives will provide assistance in determining what records may be considered permanent.</text> </paragraph> <paragraph num="C."> <text>The Division and Archives shall provide additional instruction and guidance on the scheduling process and records transfers on a website to be maintained by Archives: http://www.msa.md.gov/msa/intromsa/html/record_mgmt/homepage.html</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procedures."> <paragraph num="A."> <text>Records Inventory.</text> <paragraph num="(1)"> <text>Agencies shall submit to Division for review a records inventory for each record series.</text> </paragraph> <paragraph num="(2)"> <text>For each record series in inventory, the following information is required:</text> <paragraph num="(a)"> <text>Name of the agency that created record;</text> </paragraph> <paragraph num="(b)"> <text>Record series title;</text> </paragraph> <paragraph num="(c)"> <text>Dates of the oldest and most recent records;</text> </paragraph> <paragraph num="(d)"> <text>Description of the types of information, data, or documents which includes:</text> <paragraph num="(i)"> <text>Physical form or forms, such as letter-size paper, legal-size paper, bound book, audio tape, electronic data, video tape, film, or other medium;</text> </paragraph> <paragraph num="(ii)"> <text>Total quantity of materials, stated in terms of number of units, such as cubic feet, reels of film, tapes, gigabytes of data;</text> </paragraph> <paragraph num="(iii)"> <text>Estimated annual growth;</text> </paragraph> <paragraph num="(iv)"> <text>Current location or locations;</text> </paragraph> <paragraph num="(v)"> <text>Index system used for access, if any;</text> </paragraph> <paragraph num="(vi)"> <text>Access restrictions, if any, based on laws or regulations (with citations); and</text> </paragraph> <paragraph num="(vii)"> <text>Audit requirements, if any.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Records Schedule.</text> <paragraph num="(1)"> <text>A Schedule shall be prepared by:</text> <paragraph num="(a)"> <text>Inventorying the records;</text> </paragraph> <paragraph num="(b)"> <text>Appraising the records;</text> </paragraph> <paragraph num="(c)"> <text>Preparing the schedule;</text> </paragraph> <paragraph num="(d)"> <text>Obtaining legal authorization for use of the schedule from the State Archivist.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Schedules shall:</text> <paragraph num="(a)"> <text>Provide for periodic transfer to the Archives, at a stated frequency, of records designated to be of permanent value, including electronic records;</text> </paragraph> <paragraph num="(b)"> <text>Provide for annual or more frequent transfer to the Archives of master security microform designated as permanent;</text> </paragraph> <paragraph num="(c)"> <text>Designate agency publications as permanent and provide for copies to be sent to Archives;</text> </paragraph> <paragraph num="(d)"> <text>Define any access restrictions that apply, give legal or regulatory citation for access restrictions, and note when or under what circumstances those restrictions will be lifted; and</text> </paragraph> <paragraph num="(e)"> <text>Specify the length of time nonpermanent records will be kept in the agency or, if applicable, stored in a records center, or retained after required audit.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Schedules containing new record series must be submitted to the Division with records inventories.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Legal Authorization and Implementation of Schedules.</text> <paragraph num="(1)"> <text>Before an agency submits to Division a proposed schedule, the schedule shall have been approved in writing by the agency director.</text> </paragraph> <paragraph num="(2)"> <text>Three signed copies of any proposed schedule and one copy of the records inventory accompanying each proposed schedule shall be submitted to Division for review.</text> </paragraph> <paragraph num="(3)"> <text>Proposed revisions made by Division and approved by the agency shall be incorporated into proposed schedule and signed by the agency director.</text> </paragraph> <paragraph num="(4)"> <text>The Division shall assign a control number (schedule number) and forward to Archives all three copies of proposed schedule, as amended or revised, and records inventory.</text> </paragraph> <paragraph num="(5)"> <text>Archives shall review proposed schedule and, if the State Archivist approves it as submitted, two copies signed by the State Archivist shall be returned to the Division (one copy for transmittal to the agency). If the State Archivist disapproves the proposed schedule, in whole or in part, the Archives shall return all copies to Division with a statement of reasons for disapproval. The Division then shall request the agency to modify the schedule and resubmit it to the State Archivist for approval.</text> </paragraph> <paragraph num="(6)"> <text>Until it has been approved in writing by the State Archivist, a schedule does not constitute legal authorization for the disposal of records.</text> </paragraph> <paragraph num="(7)"> <text>At any time, a schedule may be amended or revised by an agency, or at the request of Division or Archives. Reasons for amendments or revisions may include the creation of new record series, changes in record-keeping practices, changes in formats, or reorganization of an agency. To amend or revise a schedule, steps outlined in this chapter shall be followed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Form and Format."> <text>Records designated by schedule as being permanent are to be considered permanent regardless of the form and format of the records, and whether or not a duplicate exists in some other form or format. All permanent records shall be scheduled for transfer to Archives.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Custodian Designated."> <text>Public officials charged with the statutory or delegated responsibility for administering an agency, and for creating, storing, and maintaining records shall be the custodian of such records. Upon transfer of any and all records to Archives, the State Archivist shall become the custodian.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Appointment of Records Officers."> <paragraph num="A."> <text>Each agency shall designate at least one records officer to serve as liaison with Division and with Archives for the purpose of implementing and overseeing a records management program, and coordinating legal disposition, including destruction of obsolete records.</text> </paragraph> <paragraph num="B."> <text>Appointment of agency records officers shall be made by the head of each agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Storage and Protection of Records."> <paragraph num="A."> <text>All records shall be kept in facilities maintained by the agency responsible for the creation and maintenance of such records, unless the consent of Division is obtained for their transfer or storage elsewhere.</text> </paragraph> <paragraph num="B."> <text>The public official responsible for maintaining an office or offices where records are created or kept shall establish such safeguards against damage, removal, or loss of records as may be required by Archives or Division. Such safeguards shall include notifying all employees of the requirements of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Delivery of Records to Successors."> <text>The custodian of records shall, at the expiration of the custodian's term of office, appointment, or employment, deliver custody and control of all records kept or received in the transaction of official business to the custodian's successor, supervisor, or records officer, or to Archives.</text> </regulation> <regulation prefix="Regulation" num=".13" heading="Transfer of Records upon Termination of Agencies."> <paragraph num="A."> <text>All records which are in or shall come into the possession of any agency shall, upon termination of such agency, be transferred to the custody of Archives, provided that such transfer is consistent with the provision of any such termination.</text> </paragraph> <paragraph num="B."> <text>All records which are in or shall come into the possession of any political subdivision of this State shall, upon termination of such political subdivision, be transferred to the custody of Archives.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Recovery of Record."> <paragraph num="A."> <text>Public officials shall notify the Archives of any actual, impending, or threatened unlawful removal, defacing, alteration, or destruction of records that shall come to the agency's attention.</text> </paragraph> <paragraph num="B."> <text>The State Archivist may request the Attorney General to seek appropriate relief.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Certificate of Records Destruction."> <text>When nonpermanent records are destroyed in accordance with the terms of an approved schedule, the agency or Records Center shall submit a certificate of records destruction to Archives. For each record series, the certificate shall contain:</text> <paragraph num="A."> <text>Name of the agency that created the record;</text> </paragraph> <paragraph num="B."> <text>Record series title;</text> </paragraph> <paragraph num="C."> <text>Inclusive dates;</text> </paragraph> <paragraph num="D."> <text>Schedule number or numbers, assigned by Division, authorizing destruction of record series as well as item number from Schedule;</text> </paragraph> <paragraph num="E."> <text>Quantity of material;</text> </paragraph> <paragraph num="F."> <text>Date of destruction;</text> </paragraph> <paragraph num="G."> <text>Method of destruction; and</text> </paragraph> <paragraph num="H."> <text>Signature of agency director, or the director of the Records Management Division of the Department of General Services, or the State Archivist.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Certified Copies."> <text>Archives may issue certified copies of any records in its custody.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1007—9-1012, and 10-632, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 12, 1987 (14:14 Md. R. 1574)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 4, 1994 (21:13 Md. R. 1159)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective November 15, 1999 (26:23 Md. R. 1777)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective November 15, 1999 (26:23 Md. R. 1777)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed and new Regulations .01—.16 adopted effective July 12, 2010 (37:14 Md. R. 940)</annotation> </annotations> </chapter> <chapter num="03" heading="Local Archives"> <regulation prefix="Regulation" num=".01" heading="Establishment."> <text>To establish a local archives as the repository for the permanently valuable records of the executive and legislative branches of a county or municipal government, the county or municipal government shall submit a request in writing to the State Archivist. The request shall consist of a proposal that meets the standards and requirements set by this chapter and shall be approved in writing by the State Archivist before implementation.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Collection Policy."> <paragraph num="A."> <text>A local archives may collect the records of a:</text> <paragraph num="(1)"> <text>County executive's office and its departments;</text> </paragraph> <paragraph num="(2)"> <text>County council and its departments;</text> </paragraph> <paragraph num="(3)"> <text>Board of county commissioners;</text> </paragraph> <paragraph num="(4)"> <text>County administrative offices; and</text> </paragraph> <paragraph num="(5)"> <text>Municipal government offices.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The State Archives is the official repository for permanent records of the following agencies, whose records may not be deposited in a local archives:</text> <paragraph num="(1)"> <text>Circuit courts, clerks of the circuit courts, and their predecessor agencies;</text> </paragraph> <paragraph num="(2)"> <text>Registers of wills, orphans courts, and their predecessor agencies;</text> </paragraph> <paragraph num="(3)"> <text>District courts and their predecessor agencies;</text> </paragraph> <paragraph num="(4)"> <text>State agencies and their predecessor agencies, including but not limited to those:</text> <paragraph num="(a)"> <text>That have county or other local offices, and</text> </paragraph> <paragraph num="(b)"> <text>Whose functions were administered by county or other local agencies before the formation of the State agency, such as the State Department of Assessments and Taxation, State Administrative Board of Election Laws, and Maryland Department of Health.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Records Retention and Disposal."> <text>A local archives shall follow the requirements of COMAR 14.18.02 governing records retention and disposition schedules, except in reference to the provisions regarding the Records Management Division of the Department of General Services.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Archival Qualifications."> <text>The minimum qualifications for the archivist or archivists responsible for managing the daily operations of a local archives shall include graduation from an accredited:</text> <paragraph num="A."> <text>Four-year college or university, preferably with a degree in history, archival science, library science, or related field and 3 years of full-time, or its equivalent, professional archival experience; or</text> </paragraph> <paragraph num="B."> <text>College or university with a Master's degree in history, archival science, library science, or related field and 2 years of full-time, or its equivalent, professional archival experience.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Public Access to Records."> <paragraph num="A."> <text>A local archives shall provide the public with access to government records in accordance with State Government Article, §§10-611—10-628, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>To facilitate access, a local archives shall provide a guide to its record holdings or be developing a guide. A copy of all published or unpublished finding aids shall be deposited with the State Archives.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Copying of Records."> <paragraph num="A."> <text>Whenever permanent records are microformed or recorded on an equivalent medium, a local archives shall:</text> <paragraph num="(1)"> <text>Meet standards of permanence and durability acceptable to the State Archives; and</text> </paragraph> <paragraph num="(2)"> <text>Deposit the master security microforms with the State Archives.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The State Archives may require that:</text> <paragraph num="(1)"> <text>Records of historical importance be microformed or copied on an equivalent medium at the expense of a local archives; and</text> </paragraph> <paragraph num="(2)"> <text>Master security microforms be deposited with the State Archives.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Preservation and Security of Records."> <paragraph num="A."> <text>Records in the form of loose papers shall be stored in acid-neutral folders and acid-neutral boxes.</text> </paragraph> <paragraph num="B."> <text>Records shall be handled so as to prevent physical damage to them.</text> </paragraph> <paragraph num="C."> <text>Temperature in the records storage area shall be maintained at 65°F, plus or minus 5°F, at all times.</text> </paragraph> <paragraph num="D."> <text>Relative humidity in the record storage area shall be maintained at 55 percent, plus or minus 5 percent, at all times.</text> </paragraph> <paragraph num="E."> <text>The records storage area shall have the following fire detection and fire extinguishing devices:</text> <paragraph num="(1)"> <text>Smoke detector;</text> </paragraph> <paragraph num="(2)"> <text>Heat detector;</text> </paragraph> <paragraph num="(3)"> <text>Manual fire extinguishers; and</text> </paragraph> <paragraph num="(4)"> <text>Sprinklers or halon system as approved by the State Fire Marshal for use in an archival facility.</text> </paragraph> </paragraph> <paragraph num="F."> <text>To protect against theft, vandalism, and physical misuse of records, a local archives shall have a 24-hour security system and adequate research room security, including researcher identification and supervision of researchers by an archivist when records are being used.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Transfer of Records to the State Archives."> <text>A local archives may transfer permanent records to the State Archives. If a local archives ceases operation, the permanent records shall be offered to the State Archives.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1007 and 10-632, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 12, 1987 (14:14 Md. R. 1574)</annotation> </annotations> </chapter> <chapter num="04" heading="Electronic Records" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: August 15, 1994 (21:16 Md. R. 1389)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective November 15, 1999 (26:23 Md. R. 1778)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04H adopted effective May 22, 1995 (22:10 Md. R. 708)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective November 15, 1999 (26:23 Md. R. 1778)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed effective July 12, 2010 (37:14 Md. R. 940)</annotation> </annotations> </chapter> <chapter num="05" heading="Archival Standards for Records on Microfilm"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations establish uniform methods for the microfilming of records. The standards in these regulations ensure the economical production and use of microfilm in record keeping to meet legal and archival requirements and preserve the integrity of the original records.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>These regulations apply to the microfilming of record material by any agency of State, county, or local governments.</text> </paragraph> <paragraph num="B."> <text>With the written approval of the State Archivist, the head of an agency or office may destroy original material that has been photographed, photocopied, or microphotographed if:</text> <paragraph num="(1)"> <text>The head of the agency or office offers the original material to the Archives, but the Archives declines to accept;</text> </paragraph> <paragraph num="(2)"> <text>The copy is made in a manner that meets the standard of quality of the Archives for permanent photographic records;</text> </paragraph> <paragraph num="(3)"> <text>The copy is placed in an adequately accessible container; and</text> </paragraph> <paragraph num="(4)"> <text>Provisions are made:</text> <paragraph num="(a)"> <text>For the preservation, examination, and use of the copy in a manner that the Archives approves, and</text> </paragraph> <paragraph num="(b)"> <text>For a record that a statute otherwise expressly requires to be kept permanently, for the copy to be available, on request, in the same manner as the original material.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agency” means any unit of State, county, or local government.</text> </paragraph> <paragraph num="(2)"> <text>“Archives” means the State Archives.</text> </paragraph> <paragraph num="(3)"> <text>“Division” means the Records Management Division of the Department of General Services.</text> </paragraph> <paragraph num="(4)"> <text>“Office” means a part of an agency.</text> </paragraph> <paragraph num="(5)"> <text>“Record” means documentary material in any form or format including paper, microform, electronic record, or other medium, that is:</text> <paragraph num="(a)"> <text>Created by an agency or office; or</text> </paragraph> <paragraph num="(b)"> <text>Received by an agency or office in connection with the transaction of public business.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Microfilm Standards."> <paragraph num="A."> <text>Microfilm shall be of the type suitable for archival quality. Archival quality or permanent film is defined as any film that is equal to or better than silver-gelatin film, as specified in the “American National Standard for Imaging Media (Film)—Silver-Gelatin Type—Specifications for Stability (ANSI/NAPM IT9.1-1992)” and in the “American National Standard for Photography—Determination of Regional Thiosulfate and Other Related Chemicals in Processed Photographic Materials—Methods Using Iodine—Amylose, Methylene Blue and Silver Sulfide (ANSI/NAPM IT9.17-1993)”, which are incorporated by reference. Diazo or vesicular film are not acceptable as archival quality microfilm.</text> </paragraph> <paragraph num="B."> <text>If an agency is microfilming its own records, it shall be the responsibility of the head of each agency or office to ensure that microfilm equipment is cleaned and maintained according to manufacturer's specifications or accepted industry practice, or both.</text> </paragraph> <paragraph num="C."> <text>Microfilm Processing Requirements.</text> <paragraph num="(1)"> <text>For the production of archival quality or permanent film, microfilm shall be processed as described in this section.</text> </paragraph> <paragraph num="(2)"> <text>Permanent text records shall be microfilmed at a reduction ratio not greater than 24X.</text> </paragraph> <paragraph num="(3)"> <text>Permanent graphic records shall be microfilmed at a reduction ratio not greater than 36X.</text> </paragraph> <paragraph num="(4)"> <text>Each film roll shall contain not less than 18 inches of film leader, and 18 inches of film trailer.</text> </paragraph> <paragraph num="(5)"> <text>Microfilm Density.</text> <paragraph num="(a)"> <text>Optimum background densities of microfilm images are dependent upon the quality of the documents filmed.</text> </paragraph> <paragraph num="(b)"> <text>For permanent records, density on negative copies will be between 0.95 and 1.2.</text> </paragraph> <paragraph num="(c)"> <text>For nonpermanent records, the ultimate density criterion is that the microfilm be legible for its intended use (reading, copying, or production of hard copy), and that all images on a roll can be printed, as much as is practicable, at the same printing exposure.</text> </paragraph> <paragraph num="(d)"> <text>The following classification indicates the maximum limits of density:</text> <paragraph num="(i)"> <text>Density not higher than 1.4 is required for high quality printed books, periodicals, and dense typing;</text> </paragraph> <paragraph num="(ii)"> <text>Density not higher than 1.3 is required for fine line originals, letters typed with a worn ribbon, pencil writing with a soft lead, and documents with small printing;</text> </paragraph> <paragraph num="(iii)"> <text>Density not lower than 1.0 is required for pencil drawings, faded printing, graph paper with pale fine colored lines, and very small printing such as footnotes;</text> </paragraph> <paragraph num="(iv)"> <text>Density not lower than 0.8 is required for very weak pencil manuscripts and drawings, and poorly printed, faint, or faded documents; and</text> </paragraph> <paragraph num="(v)"> <text>Readings beyond these densities are unacceptable.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>Resolution of the completed microfilm may not be less than 100 lines per millimeter, as determined by inspection of a resolution test chart photographed on each roll of film.</text> </paragraph> <paragraph num="(7)"> <text>Residual thiosulfate concentration shall be less than 1 microgram per square centimeter as proved by subsequent testing of the processed film. At regular intervals agencies shall send samples of processed film to the Division's Microfilm Laboratory for methylene blue testing. Samples are to be processed within 1 week before testing if accurate results are to be obtained.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The following identification targets, presented in the order in which they are to appear, shall be used on each roll of microfilm:</text> <paragraph num="(1)"> <text>Resolution test target for rotary camera applications derives from the “Standard for Information and Image Management—Practice for Operational Procedures/Inspection and Quality Control of First-Generation Silver Microfilm of Documents, Rotary Camera Test Chart (ANSI/AIIM MS 23-1991)”, which is incorporated by reference, or for planetary camera applications “Photographic Microcopy Target (NBS 1010a)”, which is incorporated by reference;</text> </paragraph> <paragraph num="(2)"> <text>A title target for each volume of records to be filmed shall include the agency name and the record title and volume identification, both identifiable without the use of a magnifier or viewer;</text> </paragraph> <paragraph num="(3)"> <text>A certification target signed by authorized agency personnel;</text> </paragraph> <paragraph num="(4)"> <text>Certificate of Camera Operator Target (RM-4); and</text> </paragraph> <paragraph num="(5)"> <text>The appropriate test chart.</text> </paragraph> </paragraph> <paragraph num="E."> <text>During filming, if any document is suspected of not having been filmed correctly, follow that image with a correction target, followed by the document again.</text> </paragraph> <paragraph num="F."> <text>After exposure, each roll of microfilm is developed and inspected to insure completeness and legibility of every image. A light box inspection alone is not acceptable.</text> </paragraph> <paragraph num="G."> <text>Illegible or missing records shall be microfilmed again as retakes, according to the following procedure:</text> <paragraph num="(1)"> <text>Allow 18 inches of blank leader at the beginning of the retakes for each individual volume;</text> </paragraph> <paragraph num="(2)"> <text>Photograph a start of retake section target;</text> </paragraph> <paragraph num="(3)"> <text>Microfilm the documents that were illegible or missing in the same order in which they would have appeared on the original roll if they had been available;</text> </paragraph> <paragraph num="(4)"> <text>Microfilm an end of retake section target;</text> </paragraph> <paragraph num="(5)"> <text>Allow 18 inches of blank trailer at the end of each section of retakes; and</text> </paragraph> <paragraph num="(6)"> <text>After processing, inspection, and approval, splice retake images onto the beginning of the original roll of microfilm that bears the illegible images or lacks the documents contained on the retake roll.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Precautions shall be taken in the handling and storage of original camera microfilm. These precautions include, but are not limited to, the following:</text> <paragraph num="(1)"> <text>Always wear cotton gloves when handling film to prevent fingerprints or dirt on the microfilm images;</text> </paragraph> <paragraph num="(2)"> <text>Never use tape, paper clips, rubber bands, staples, etc., to splice or hold microfilm on rolls or any other microform;</text> </paragraph> <paragraph num="(3)"> <text>Do not place microfilm on reels that corrode or emit toxic elements that destroy microfilm; and</text> </paragraph> <paragraph num="(4)"> <text>Do not store microfilm within 4 inches of the floor because storage under improper conditions of temperature and humidity drastically shortens the useful life of microfilm;</text> </paragraph> <paragraph num="(5)"> <text>Recommended standards for temperature and humidity for the storage of microfilm are as follows:</text> <paragraph num="(a)"> <text>Short-term (under 10 years) storage temperature may not exceed 75°F and relative humidity may not exceed 60 percent, and</text> </paragraph> <paragraph num="(b)"> <text>Permanent or archival storage temperature may not exceed 70°F and relative humidity may not exceed 40 percent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Archival microfilm of records scheduled for permanent retention shall be transferred periodically to the Archives. This microfilm shall be the silver-gelatin master negative.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Agency Responsibility."> <paragraph num="A."> <text>When paper records are to be microfilmed, and the microfilm is scheduled for permanent retention, the paper records may not be destroyed until the microfilming of those records and the subsequent processing and inspection of the film has been completed in compliance with the standards in Regulation .04G and H of this chapter, nor until the State Archivist has approved the destruction of those records. Permission to destroy record material shall be obtained by filing a Proposal and Certificate of Records Destruction (form DGS-550-9) with the Archives. This permission shall be received before any records destruction can take place.</text> </paragraph> <paragraph num="B."> <text>It is the policy of the Division not to store paper records in the State Records Center after those records have been microfilmed. The State Records Center will hold the paper records until the microfilm has been inspected by agency personnel. Once the quality of the microfilm has been assured, the paper records shall be returned to the agency of record or disposed of in accordance with State Government Article, §10-642, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The head of each agency shall ensure that the standards in this chapter are made a part of any contract for microfilming services into which an agency may enter.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-1007 and 10-632, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 15, 1994 (21:16 Md. R. 1390)</annotation> </annotations> </chapter> </subtitle> <subtitle num="19" heading="Chesapeake Bay Critical Area Commission - Development in the Critical Area Resulting From State and Local Agency Programs" /> <subtitle num="20" heading="Chesapeake Bay Critical Area Commission" /> <subtitle num="21" heading="Maryland Food Center Authority"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>These regulations describe policies, procedures, and authorizations for the operations of the Maryland Food Center Authority.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Maryland Food Center Authority Act, Article 41, §§13-101—13-121, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>"Authority" means the Maryland Food Center Authority.</text> </paragraph> <paragraph num="(3)"> <text>“Board of Directors” means the members of the Authority as described in Article 41, §13-103(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Executive Director” means the Executive Director of the Maryland Food Center Authority as appointed by the Board of Directors.</text> </paragraph> <paragraph num="(5)"> <text>“Project” means the market, the park, and other food or agriculturally related real estate developments undertaken by the Authority to further the Authority's purposes, including any ancillary or appurtenant facilities.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 41, §§ 13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="02" heading="Public Information Requests"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations set out the procedures for filing requests with the Maryland Food Center Authority for the inspection or copying of records under State Government Article, § 10-611--10-630, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>Terms appearing in the Public Information Act shall have the meanings defined there and, in addition, the meaning used in these regulations.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means a person or agency requesting disclosure of public records.</text> </paragraph> <paragraph num="(2)"> <text>“Custodian” or “official custodian” means the Executive Director of the Authority, who is responsible for the maintenance, care, and keeping of public records of the Authority.</text> </paragraph> <paragraph num="(3)"> <text>“Public Information Act” means State Government Article, §§10-611—10-630, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>Public Records.</text> <paragraph num="(a)"> <text>“Public records” means any paper, correspondence, form, book, photograph, photostat, film, microfilm, computerized record, sound recording, map, drawing, or other written document regardless of physical form or characteristics.</text> </paragraph> <paragraph num="(b)"> <text>“Public records” includes all copies that have been made by the Authority or received by the Authority in connection with the transaction of public business and includes the salaries of all employees of the Authority.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Working day”, for purposes of this chapter, means each day between the hours of 9 a.m. and 4 p.m. except Saturdays, Sundays, and holidays.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Requests for Records."> <paragraph num="A."> <text>A person may request to inspect or copy any public record that is in the custody and control of the Authority and which, under the provisions of the Public Information Act, the Authority is required to make available to the public.</text> </paragraph> <paragraph num="B."> <text>Requests for public records shall:</text> <paragraph num="(1)"> <text>Be made in writing;</text> </paragraph> <paragraph num="(2)"> <text>Be addressed to the official custodian;</text> </paragraph> <paragraph num="(3)"> <text>Contain the applicant's name and address; and</text> </paragraph> <paragraph num="(4)"> <text>Reasonably identify by brief description the specific record sought.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Response to Request."> <paragraph num="A."> <text>If the custodian decides to grant a written request for inspection, the custodian shall produce the record, or a copy, for inspection within a reasonable time not to exceed 30 days from the date of receipt of the request.</text> </paragraph> <paragraph num="B."> <text>If the custodian decides to deny the request, the custodian shall do so within 30 days of receipt of the written request and, immediately upon deciding to deny the request, shall notify the applicant of the denial. Any reasonably severable portion of a record shall be provided after deletion of those portions which may be withheld from disclosure. Within 10 working days of the denial, the custodian shall give the applicant a written statement that gives the reasons and legal authority for the denial and contains a notice of the remedies for review of the denial.</text> </paragraph> <paragraph num="C."> <text>If a requested public record is not in the custody or control of the person to whom the written application is made, that person shall, within 10 working days of the receipt of the request, notify the applicant. If the person knows the name of the custodian of the record or the location or possible location of the record, this information shall also be given to the applicant.</text> </paragraph> <paragraph num="D."> <text>With the consent of the applicant, any time limit imposed by §§A—C of this regulation may be extended for an additional period not to exceed 30 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Notification of Persons Who May be Affected by Disclosure."> <paragraph num="A."> <text>The custodian, unless prohibited by law, may notify an individual who could be adversely affected by:</text> <paragraph num="(1)"> <text>A disclosure of a record to the applicant who has made a request for inspection; or</text> </paragraph> <paragraph num="(2)"> <text>The copying of a record.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In cases of permissive disclosure, the custodian may consider the views of the person before deciding whether to disclose the record to the public.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Review of Denial."> <paragraph num="A."> <text>If the written request is denied by the custodian, the applicant may, within 30 days after receipt of denial, request an administrative hearing on the denial.</text> </paragraph> <paragraph num="B."> <text>If a hearing is requested by the applicant the hearing shall be conducted by a hearing officer designated by the Executive Director. After the hearing the hearing officer shall prepare a recommended decision which shall be submitted to the Executive Director.</text> </paragraph> <paragraph num="C."> <text>If the administrative hearing results in a total or partial denial of the written request, the applicant may file an appropriate action in the circuit court under State Government Article, §10-623, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>The applicant may file an action for judicial enforcement under State Government Article, §10-623, without exhausting the administrative remedy of §A of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>If, in the opinion of the Executive Director, disclosure of any public record which is otherwise required to be disclosed under the Public Information Act will do substantial injury to the public interest, the Executive Director may:</text> <paragraph num="(1)"> <text>Temporarily deny the request in writing; and</text> </paragraph> <paragraph num="(2)"> <text>Apply within 10 working days of the denial to the appropriate circuit court for an order permitting the Executive Director to continue to deny or restrict disclosure.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice of the application filed with the circuit court shall be served upon the applicant in the same manner provided for service of process by the Maryland Rules of Procedure.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Fees."> <paragraph num="A."> <text>The Authority may charge reasonable fees as determined from time to time. As of July 1, 1991 fees to be charged under this chapter are in accordance with the following fee schedule:</text> <paragraph num="(1)"> <text>Copies. The fee for each copy is 15 cents per page when reproduction can be made by a photocopying machine within the Authority. When records are not amenable to photocopying (for example, punch cards, magnetic tapes, large documents, and microfilm), the fee for reproducing the record may be based on the actual cost of reproduction.</text> </paragraph> <paragraph num="(2)"> <text>Certification of Copies. When a person requests that a copy of a record be certified as a true copy of the original public record, an additional cost of $1 per page shall be charged.</text> </paragraph> <paragraph num="(3)"> <text>Searching or Record Preparation. There will be a $10 per hour charge for every hour or part of it over 2 hours needed to search for and prepare a public record.</text> </paragraph> <paragraph num="(4)"> <text>Exception to Fee. A charge may not be made when the amount of the fee is $10 or less.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notwithstanding §A of this regulation, if any fees for copies, printouts, photographs, or certified copies of any record are specifically prescribed by law other than the Public Information Act or this regulation the specific fee contained in that law shall determine the amount charged for that record.</text> </paragraph> <paragraph num="C."> <text>If the custodian is unable to copy a record within the Authority, the custodian shall make arrangements for the reproduction of the record at public or private facilities outside the Authority. The custodian shall either collect from the applicant a fee which is sufficient to pay the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="D."> <text>Before copying a record, the custodian shall estimate the cost of copying and obtain the agreement of the applicant that the cost shall be paid. The custodian may demand prepayment of any estimated fee before copying a record. If prepayment is required, the time limitations contained elsewhere in these regulations may not commence until the payment is made.</text> </paragraph> <paragraph num="E."> <text>Upon request the custodian may waive or reduce any fee charged under this regulation if:</text> <paragraph num="(1)"> <text>The applicant asks for a waiver; and</text> </paragraph> <paragraph num="(2)"> <text>After consideration of the ability of the applicant to pay the fee and other relevant factors, the custodian determines that the waiver will be in the public interest.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If the applicant requests that copies be mailed or delivered to the applicant, the custodian may charge the applicant for the cost of postage or delivery to the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Time of Inspection."> <text>An applicant may inspect any public record which it has been determined that the applicant is entitled to inspect during any suitable working day.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Place of Inspection."> <text>The place of inspection shall be the place where the document is located unless the custodian determines that another place of inspection is more suitable.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121; State Government Article, §10-613; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="03" heading="Petition for Adoption of Regulations"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations are promulgated under State Government Article, § 10-101--10-129, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Maryland Food Center Authority for the adoption of regulations.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Who May File."> <text>Any interested person may file a petition with the Executive Director requesting the promulgation, amendment, or repeal of any regulation.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Form."> <text>The petition shall be in writing and shall contain:</text> <paragraph num="A."> <text>A clear, concise statement of the regulation, amendment, or repeal which is sought;</text> </paragraph> <paragraph num="B."> <text>Reasons in support of the proposed regulation change;</text> </paragraph> <paragraph num="C."> <text>References to the authority of the Authority to take the action which is requested; and</text> </paragraph> <paragraph num="D."> <text>The name, address, and telephone number of the petitioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Where Filed."> <paragraph num="A."> <text>The petition shall be filed with the Executive Director for the Executive Director's consideration and disposition.</text> </paragraph> <paragraph num="B."> <text>The time period for response to a petition begins when the petition is received by the Executive Director.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Disposition."> <text>Within 60 days after receipt of the petition, the Executive Director shall either deny the petition in writing, stating the reasons for the denial, or initiate the procedures for adoption of the regulation as submitted or with appropriate modifications as determined by the Executive Director to be in the best interest of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Agency File."> <text>The Authority shall maintain a file of petitions submitted and the responses which shall be available for public inspection to the extent permitted by law.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121; State Government Article, §10-23; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="04" heading="Petition for Declaratory Rulings"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations are promulgated under State Government Article, Title 10, Subtitle 3, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Maryland Food Center Authority for a declaratory ruling.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Who May File."> <text>An interested person may file a petition for declaratory ruling with respect to the manner in which the Authority will apply a regulation or order of the Authority, or a statute that the Authority enforces, to a person or property on the facts set forth in the petition.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Filing."> <paragraph num="A."> <text>A petitioner shall file a petition within 30 days of notice from the Authority of the manner in which the Authority intends to apply a regulation, order, or statute.</text> </paragraph> <paragraph num="B."> <text>A petition shall be filed with the Executive Director for consideration and disposition by the Authority, or by the Executive Director if the duty is delegated by the Authority to the Executive Director.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Form."> <text>A petition for a declaratory ruling shall be in writing and shall:</text> <paragraph num="A."> <text>Contain a detailed statement of the facts on which the petition is based;</text> </paragraph> <paragraph num="B."> <text>Cite all regulations and statutes involved;</text> </paragraph> <paragraph num="C."> <text>Evaluate whether and in what manner the relevant regulations apply to the petition under the facts contained in the petition;</text> </paragraph> <paragraph num="D."> <text>Contain the name, address, and telephone number of the petitioner; and</text> </paragraph> <paragraph num="E."> <text>Contain a statement by the petitioner, under oath, that the facts contained in the petition are true.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Consideration and Disposition."> <paragraph num="A."> <text>The Executive Director has the duty to consider and dispose of petitions received with respect to:</text> <paragraph num="(1)"> <text>Waivers made by managers of Authority project operations;</text> </paragraph> <paragraph num="(2)"> <text>Implementation of agreements and arrangements that have been approved or authorized by the Board of Directors; and</text> </paragraph> <paragraph num="(3)"> <text>Implementation of contracts for goods and services that are within a budget that has been approved by the Board of Directors.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board of Directors may delegate to the Executive Director the duty to consider and dispose of other particular petitions or categories of petitions for declaratory rulings.</text> </paragraph> <paragraph num="C."> <text>Petitions respecting matters under §§A and B of this regulation that are received by the Executive Director in accordance with Regulation .03 of this chapter shall be acknowledged by the Executive Director within 30 days. The Executive Director:</text> <paragraph num="(1)"> <text>May require a presentation on the petition and additional submissions, consultations, or reports in the discretion of the Executive Director; and</text> </paragraph> <paragraph num="(2)"> <text>Shall issue a declaratory ruling within 45 days of receipt of final submissions, if any, requested under §C(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Consideration by the Board of Directors.</text> <paragraph num="(1)"> <text>Petitions respecting matters not delegated to the Executive Director shall be referred to the Board of Directors.</text> </paragraph> <paragraph num="(2)"> <text>Petitions received in accordance with Regulation .03 of this chapter shall be presented to the Board of Directors at the first meeting that is scheduled to take place at least 45 days after receipt of the petition.</text> </paragraph> <paragraph num="(3)"> <text>The Board of Directors may require a presentation on the petition, and additional submissions, consultations, or reports, in its discretion.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A declaratory ruling issued by the Authority, or by the Executive Director if so delegated, is binding upon the Authority and the petitioner, on the facts set forth in the petition. Declaratory rulings issued shall be in writing and shall state the reasons for the decision. A copy of the declaratory ruling shall be delivered to the petitioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Appeal of Declaratory Ruling."> <paragraph num="A."> <text>A declaratory ruling issued by the Executive Director may be appealed to the Board of Directors in writing within 10 days of the ruling, and shall be referred to the Board of Directors in accordance with Regulation .05D.</text> </paragraph> <paragraph num="B."> <text>A declaratory ruling by the Board of Directors may be appealed to a circuit court in accordance with State Government Article, §10-305, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Agency File."> <text>The Authority shall maintain a file of all petitions submitted and the declaratory rulings issued. This file shall be available for public inspection to the extent permitted by law.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121; State Government Article, §10-304; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="05" heading="Acquisition of Real Property"> <regulation prefix="Regulation" num=".01" heading="General."> <text>The Authority may acquire real property and interests in real property for any of the Authority's corporate purposes on the terms and conditions that it considers appropriate.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <text>In this chapter, terms appearing in the Act shall have the meanings defined there.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Authorization of the Executive Director Regarding Acquisitions."> <paragraph num="A."> <text>At the direction of the Board of Directors or on the Executive Director's own initiative the Executive Director may conduct preliminary negotiations or investigations relating to the acquisition of real property or interests in real property.</text> </paragraph> <paragraph num="B."> <text>In connection with negotiations and acquisitions, the Executive Director, after consultation with the Board of Directors or at the direction of the Board of Directors, may obtain appraisals, surveys, engineering and architectural studies, title insurance, and any other items and services the Executive Director considers appropriate under the circumstances.</text> </paragraph> <paragraph num="C."> <text>Upon approval of an acquisition as set forth in Regulation .05 of this chapter, the Executive Director shall have the power on behalf of the Authority to execute all documents and do all things necessary and convenient to accomplish the purposes of the approved transaction.</text> </paragraph> <paragraph num="D."> <text>The Executive Director is authorized to exercise remedies for default under agreements that have been approved in accordance with Regulation .05 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review."> <text>Proposed construction of real estate development by the Authority shall be submitted for review to the Legislative Policy Committee of the General Assembly of Maryland and to the Maryland Department of Fiscal Services.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Approvals."> <text>A proposed acquisition of real property or interest in real property shall be submitted for approval to the Board of Directors. If approved by the Board of Directors, the proposed acquisition shall be submitted for approval to the State Board of Public Works.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="06" heading="Sale or Lease of Real Property"> <regulation prefix="Regulation" num=".01" heading="General."> <text>The Authority may sell or lease real property and interests in real property.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definition."> <paragraph num="A."> <text>In this chapter, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined. “Project” means the market, the park, and other food or agriculturally related real estate developments undertaken by the Authority to further the Authority's purposes, including any ancillary or appurtenant facilities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Market Value."> <paragraph num="A."> <text>Sales. Real property or interest in real property may not be sold by the Authority unless the purchaser pays an amount at least equal to the full appraised value of the real property or interest in real property as determined by the Authority.</text> </paragraph> <paragraph num="B."> <text>Leases. Real property or interest in real property may not be leased by the Authority to any lessee unless the lessee pays an amount equal to the reasonable rental value of the real property or interest in real property as determined by the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Evaluation of Prospective Tenant or Purchaser."> <paragraph num="A."> <text>The Authority may require a potential tenant or purchaser of an interest in real property to provide the Authority with information relating to the potential tenant or purchaser's experience and financial stability, including but not limited to, audited financial statements, bank statements, and tax returns.</text> </paragraph> <paragraph num="B."> <text>If two or more potential tenants or purchasers seek a particular property which the Authority has available for sale or lease, the Authority may evaluate and determine, in its sole discretion, which transaction will be in the best interest of the Authority, taking into account such factors as:</text> <paragraph num="(1)"> <text>Which potential tenant or purchaser will afford the greatest opportunity for success;</text> </paragraph> <paragraph num="(2)"> <text>Which potential tenant or purchaser will have the greatest positive effect on a project of the Authority;</text> </paragraph> <paragraph num="(3)"> <text>The nature of the product or service the potential tenant or purchaser intends to provide;</text> </paragraph> <paragraph num="(4)"> <text>The economic return to the Authority; or</text> </paragraph> <paragraph num="(5)"> <text>Other matters the Authority considers relevant in carrying out its purposes.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Development Plans and Restrictive Covenants."> <paragraph num="A."> <text>The Authority may adopt development plans which designate parcels of real property to be developed for particular uses, and may revise the plans from time to time.</text> </paragraph> <paragraph num="B."> <text>The Authority may restrict interests in real property that it conveys and may do all things necessary and convenient to carry out the powers expressly granted by the Act.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="No Brokerage Fees."> <text>The Authority may not be required to pay real estate commission costs, or any other similar brokerage fees in connection with its conveyance of real property or interests in real property.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Authorization of Executive Director Regarding Sales and Leases."> <paragraph num="A."> <text>The Executive Director, in relation to the conveyance of interests in real property, may:</text> <paragraph num="(1)"> <text>Initiate or receive offers;</text> </paragraph> <paragraph num="(2)"> <text>Obtain and evaluate relevant information;</text> </paragraph> <paragraph num="(3)"> <text>Conduct negotiations; and</text> </paragraph> <paragraph num="(4)"> <text>Make recommendations to the Board of Directors.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Upon approval of a sale or lease as set forth in Regulation .08 of this chapter, the Executive Director shall have the power to execute, on behalf of the Authority, all documents necessary or convenient relating to the approved transaction.</text> </paragraph> <paragraph num="C."> <text>The Executive Director is authorized to exercise remedies for default under agreements that have been approved in accordance with Regulation .08 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Approvals."> <text>A proposed sale or lease of real property shall be submitted for approval to the Board of Directors. If approved by the Board of Directors, it shall be submitted for approval to the State Board of Public Works.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="07" heading="Project Operations"> <regulation prefix="Regulation" num=".01" heading="General."> <text>The Authority may manage directly or may engage the services of others to manage project facilities.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>Terms appearing in the Act shall have the meanings defined there and, in addition, the meanings used in these regulations.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Customer” means any purchaser of goods or services at the market, park, or other project.</text> </paragraph> <paragraph num="(2)"> <text>“Project” means the market, the park, and other food or agriculturally related real estate developments undertaken by the Authority to further the Authority's corporate purposes, including any ancillary facilities.</text> </paragraph> <paragraph num="(3)"> <text>“Supplier” means a wholesale distributor or other business which provides tenants with a commodity for resale.</text> </paragraph> <paragraph num="(4)"> <text>“Tenant” means any lessee of the Authority who operates a business in a market or other project facility.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Management Rules."> <paragraph num="A."> <text>In accordance with the applicable laws and ordinances of the jurisdictions in which project facilities are located, the Authority may from time to time establish reasonable rules of operation for project facilities, giving reasonable notice of these rules, and posting them in a conspicuous location at the project facility.</text> </paragraph> <paragraph num="B."> <text>The rules may concern:</text> <paragraph num="(1)"> <text>Use of streets, driveways, docking slips, and parking areas;</text> </paragraph> <paragraph num="(2)"> <text>Hours and days of operation;</text> </paragraph> <paragraph num="(3)"> <text>Reasonable fee schedules which describe fees or charges to be paid by suppliers, customers, tenants, and other users of project facilities;</text> </paragraph> <paragraph num="(4)"> <text>Safety and welfare of persons and protection of property; and</text> </paragraph> <paragraph num="(5)"> <text>Other matters which pertain to the management of project operations.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Sanctions. The rules established under this section may include reasonable sanctions. Sanctions may:</text> <paragraph num="(1)"> <text>Deny use of and access to project facilities;</text> </paragraph> <paragraph num="(2)"> <text>Impose fees or charges; and</text> </paragraph> <paragraph num="(3)"> <text>Impose other reasonable restrictions that the Authority may consider proper or necessary for the safe and efficient management of project operations.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Authorization of the Executive Director Regarding Project Operations."> <paragraph num="A."> <text>The Executive Director has primary responsibility for management of project operations.</text> </paragraph> <paragraph num="B."> <text>The Executive Director may:</text> <paragraph num="(1)"> <text>With the approval of the Board of Directors, engage the services of others to manage one or more project facilities, or to perform particular services; and</text> </paragraph> <paragraph num="(2)"> <text>Exercise remedies for default under agreements relating to the provision of goods or services to the Authority.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Executive Director may delegate to other employees of the Authority duties relating to:</text> <paragraph num="(1)"> <text>Personnel management;</text> </paragraph> <paragraph num="(2)"> <text>Procurement matters;</text> </paragraph> <paragraph num="(3)"> <text>On-site project management; and</text> </paragraph> <paragraph num="(4)"> <text>Such other duties as the Executive Director considers appropriate.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="08" heading="Personnel"> <regulation prefix="Regulation" num=".01" heading="Independent Appointment."> <paragraph num="A."> <text>The Authority may appoint and dismiss officers, agents, and employees and fix their compensation.</text> </paragraph> <paragraph num="B."> <text>Employment by the Authority is not governed by Article 64A, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Authorization of the Executive Director."> <paragraph num="A."> <text>The Executive Director shall make employment decisions in the best interest of the Authority and shall consider operational and budgetary requirements of the Authority in making the decisions.</text> </paragraph> <paragraph num="B."> <text>The Executive Director may adopt and may revise, from time to time, guidelines for the administration of personnel management.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="09" heading="Procurement"> <regulation prefix="Regulation" num=".01" heading="General."> <text>The Authority may contract for goods and services.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Procedures."> <paragraph num="A."> <text>Except for Title 14, Subtitle 3, the provisions of the State Finance and Procurement Article, Division II, Annotated Code of Maryland, and regulations under the State Finance and Procurement Article, Division II, do not apply to the procurement procedures of the Authority.</text> </paragraph> <paragraph num="B."> <text>The Authority may elect, at its discretion, to incorporate into its bid documents and contract documents, provisions similar to those customarily found in State contracts under the State Finance and Procurement Article, Annotated Code of Maryland, for similar goods and services, or other provisions that the Authority considers to be in its best interests.</text> </paragraph> <paragraph num="C."> <text>Contracts by the Authority for construction of facilities of a project shall be made only after solicitation of sealed bids, except for construction on land that has been either leased or sold by the Authority to a private entity or entities.</text> </paragraph> <paragraph num="D."> <text>The Executive Director may, without further approval by the Board of Directors, contract for goods and services that are within a budget that has been approved by the Board of Directors. The Executive Director may exercise remedies for default relating to the agreements.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procurement Officer."> <paragraph num="A."> <text>The Executive Director shall designate a procurement officer for any procurement anticipated to cost $10,000 or more.</text> </paragraph> <paragraph num="B."> <text>The procurement officer may, in the best interests of the Authority:</text> <paragraph num="(1)"> <text>Waive any solicitation requirement;</text> </paragraph> <paragraph num="(2)"> <text>Amend or revise solicitation documents; or</text> </paragraph> <paragraph num="(3)"> <text>Reject any or all bids.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Disputes."> <paragraph num="A."> <text>The Executive Director shall designate an appeals officer for any procurement anticipated to cost $10,000 or more.</text> </paragraph> <paragraph num="B."> <text>Bidders shall submit in writing to the procurement officer any questions, comments, or objections regarding the solicitation documents within the time period stated in the solicitation documents. In the absence of any stated time period in the solicitation documents, written comments, questions, or objections shall be received by the procurement officer not later than 5 business days before the scheduled bid opening.</text> </paragraph> <paragraph num="C."> <text>In the absence of a stated time in the contract documents, contractors shall file a written notice of a claim with the procurement officer within 15 days after the basis for the claim is known or should have been known, whichever is earlier.</text> </paragraph> <paragraph num="D."> <text>Appeal from a decision of the procurement officer shall be submitted in writing to the appeals officer not later than 10 days after the decision of the procurement officer.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Exception for Urgent Action."> <text>Except for Regulation .02C of this chapter and except to the extent expressly required by the Act, procedures adopted under this chapter do not apply to procurement of goods or services in cases where a determination has been made by the Executive Director that urgent action is required. The Executive Director, in these cases, may authorize expeditious procurement of goods or services by such means as the Executive Director considers to be in the best interests of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Termination for Convenience."> <text>The Authority may terminate contracts, in whole or in part, without showing cause upon giving written notice to the contractor. In these cases, the Authority shall pay reasonable costs associated with the contract that the contractor has incurred up to the date of termination. The contractor may not be reimbursed, however, for any anticipated profits which have not been earned up to the date of termination.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Performance and Payment Bonds."> <text>The Authority may require performance bonds and payment bonds in such amounts, in such forms, and under such circumstances as the procurement officer may determine to be in the best interests of the Authority.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> <chapter num="10" heading="Waiver"> <regulation prefix="Regulation" num=".01" heading="Waiver of Regulations."> <text>The Authority may waive any of the regulations set forth in this subtitle in a particular instance if:</text> <paragraph num="A."> <text>It has been determined that application of the regulation in a particular instance will be inequitable; and</text> </paragraph> <paragraph num="B."> <text>Waiver of the regulation will not be inconsistent with the Act.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 41, §§13-101—13-121, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 16, 1992 (19:5 Md. R. 578)</annotation> </annotations> </chapter> </subtitle> <subtitle num="22" heading="Commission on Criminal Sentencing Policy"> <chapter num="01" heading="General Regulations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>The Maryland sentencing guidelines apply to criminal cases prosecuted in a circuit court. The following sentencing matters handled by judges in a circuit court are excluded from guidelines coverage:</text> <paragraph num="(1)"> <text>Prayers for jury trial from District Court, unless a PSI is ordered;</text> </paragraph> <paragraph num="(2)"> <text>Appeals from District Court, unless a PSI is ordered;</text> </paragraph> <paragraph num="(3)"> <text>Crimes which carry no possible penalty of incarceration;</text> </paragraph> <paragraph num="(4)"> <text>Public local laws and municipal ordinances;</text> </paragraph> <paragraph num="(5)"> <text>Sentencing hearings in response to a violation of probation;</text> </paragraph> <paragraph num="(6)"> <text>Criminal nonsupport and criminal contempt; and</text> </paragraph> <paragraph num="(7)"> <text>Cases adjudicated in a juvenile court.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Under Criminal Procedure Article, §6-211(b), Annotated Code of Maryland, the sentencing guidelines are voluntary and may not be construed to require a court to sentence a defendant as prescribed by this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Adjudication” includes a:</text> <paragraph num="(a)"> <text>Finding of guilt by a judge or jury;</text> </paragraph> <paragraph num="(b)"> <text>Plea of guilt by the offender;</text> </paragraph> <paragraph num="(c)"> <text>Plea of nolo contendere (no contest) by the offender;</text> </paragraph> <paragraph num="(d)"> <text>Sentence to probation before judgment (PBJ) pursuant to Criminal Procedure Article, §6-220(b) or 6-220(c), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(e)"> <text>Finding of guilt by a general or special court-martial, if the elements of the offense constitute an offense under Maryland law and do not require the defendant’s service in a military force.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Adjudication as delinquent” means subsequent to a disposition hearing, a finding that a child has committed a delinquent act and is in need of or requires treatment, guidance, or rehabilitation, pursuant to the definitions and procedures set forth in Courts and Judicial Proceedings Article, §§3-8A-01 and 3-8A-19, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Cell” means the intersection of the offense score (or seriousness category) and the offender score on a two-variable guideline matrix.</text> </paragraph> <paragraph num="(4)"> <text>Corrections Options.</text> <paragraph num="(a)"> <text>“Corrections options” means:</text> <paragraph num="(i)"> <text>Home detention;</text> </paragraph> <paragraph num="(ii)"> <text>A corrections options program established under law which requires the individual to participate in home detention, inpatient/residential treatment, or other similar programs involving terms and conditions that constitute the equivalent of confinement;</text> </paragraph> <paragraph num="(iii)"> <text>Inpatient drug or alcohol counseling under Health General Article, Title 8, Subtitle 5, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(iv)"> <text>Participation in a problem-solving court, including a drug court, mental health court, family/dependency court, veterans court, or other problem-solving court as defined by the Administrative Office of the Courts Office of Problem Solving Courts;</text> </paragraph> <paragraph num="(v)"> <text>A sentence, with required substance abuse treatment, for the possession, administration, obtainment, etc., of controlled dangerous substances (CDS) currently outlined in Criminal Law Article, §5-601(c), Annotated Code of Maryland, and pursuant to Criminal Law Article, §5-601(e)(3), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(vi)"> <text>Work release; or</text> </paragraph> <paragraph num="(vii)"> <text>Weekend (or other discontinuous) incarceration.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Corrections options” includes programs established by the Department of Public Safety and Correctional Services (DPSCS) and/or local correctional agencies, if the program meets the Commission’s criteria, as described in §B(4)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Departure.</text> <paragraph num="(a)"> <text>“Departure” means a judicially imposed sentence that falls outside of the recommended sentencing guidelines range.</text> </paragraph> <paragraph num="(b)"> <text>“Departure” does not include any sentence that complies with at least one of the requirements that deems a sentence to be within the guidelines as set forth in Regulation .17 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Drug offense” means an offense involving controlled dangerous substances or paraphernalia.</text> </paragraph> <paragraph num="(7)"> <text>“Economic loss” means for all offenses involving theft and related crimes under Criminal Law Article, Title 7, or fraud and related crimes under Criminal Law Article, Title 8, Annotated Code of Maryland, the amount of restitution ordered by a circuit court judge or, if not ordered, the full amount of restitution that could have been ordered.</text> </paragraph> <paragraph num="(8)"> <text>“Feigned weapon” means that an individual intentionally created the false impression that there is an actual weapon present, including a finger used to simulate a gun, a written note stating that there is a dangerous weapon present, or a verbal statement that there is a dangerous weapon present.</text> </paragraph> <paragraph num="(9)"> <text>“Finding of a delinquent act” means a finding of facts sustained at a juvenile adjudicatory hearing, pursuant to the definitions and procedures set forth in Courts and Judicial Proceedings Article, §§3-8A-01 and 3-8A-18, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>Guidelines Offense.</text> <paragraph num="(a)"> <text>“Guidelines offense” means an offense prosecuted in a circuit court.</text> </paragraph> <paragraph num="(b)"> <text>“Guidelines offense” includes the following types of cases:</text> <paragraph num="(i)"> <text>New trials ordered by appellate courts; and</text> </paragraph> <paragraph num="(ii)"> <text>Reconsiderations/modifications and three-judge panel reviews involving a crime of violence, as defined in Criminal Law Article, §14-101, Annotated Code of Maryland, if an adjustment was made to the active, original sentence. Guidelines-eligible reconsiderations/modifications include sentence adjustments imposed pursuant to Maryland Rule 4-345 or a Health-General Article, §8-507, Annotated Code of Maryland, order.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Guidelines offense” does not include the following types of cases:</text> <paragraph num="(i)"> <text>Prayers for jury trial from District Court, unless a PSI is ordered;</text> </paragraph> <paragraph num="(ii)"> <text>Appeals from District Court, unless a PSI is ordered;</text> </paragraph> <paragraph num="(iii)"> <text>Offenses which carry no possible penalty of incarceration;</text> </paragraph> <paragraph num="(iv)"> <text>Public local laws and municipal ordinances;</text> </paragraph> <paragraph num="(v)"> <text>Sentencing hearings in response to a violation of probation;</text> </paragraph> <paragraph num="(vi)"> <text>Criminal nonsupport and criminal contempt; and</text> </paragraph> <paragraph num="(vii)"> <text>Cases adjudicated in a juvenile court.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Guidelines range” means the recommended sentencing range for offenders who fall within a particular cell of the person, drug, and property offense sentencing matrices.</text> </paragraph> <paragraph num="(12)"> <text>“Judge” means:</text> <paragraph num="(a)"> <text>The trial judge who imposes or alters a sentence; or</text> </paragraph> <paragraph num="(b)"> <text>A panel of trial judges who alter a sentence.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“MSCCSP binding plea agreement” means a plea agreement that:</text> <paragraph num="(a)"> <text>Is presented to the court in agreement by an attorney for the government and the defendants attorney, or the defendant when proceeding pro se, that a court has approved relating to a particular sentence and disposition;</text> </paragraph> <paragraph num="(b)"> <text>Includes agreement to a specific amount of active time (if any), not merely a sentence cap or range;</text> </paragraph> <paragraph num="(c)"> <text>The court has the discretion to accept or reject; and</text> </paragraph> <paragraph num="(d)"> <text>Is binding on the court under Maryland Rule 4-243(c) if the court accepts the plea.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Multiple criminal events” means more than one criminal transaction committed over a period of time. Multiple criminal events being sentenced together may have occurred on the same or different dates. Offenses which occur on different dates are almost always multiple criminal events.</text> </paragraph> <paragraph num="(15)"> <text>“Offender score” means a summary score ranging from 0 to 9 which:</text> <paragraph num="(a)"> <text>Measures an offender's prior criminal history; and</text> </paragraph> <paragraph num="(b)"> <text>Is calculated for use in the person, drug, and property offense sentencing matrices.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Offense score” means a summary score ranging from 1 to 15 which:</text> <paragraph num="(a)"> <text>Measures the seriousness of a person offense; and</text> </paragraph> <paragraph num="(b)"> <text>Is calculated for use in the person offense sentencing matrix.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Person offense” means:</text> <paragraph num="(a)"> <text>An offense involving confrontation between the offender and the victim, including offenses with bodily harm or the threat of bodily harm to a victim; or</text> </paragraph> <paragraph num="(b)"> <text>A weapons offense.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Property offense” means an offense where property is unlawfully damaged or taken.</text> </paragraph> <paragraph num="(19)"> <text>“PSI” means a presentence investigation prepared in accordance with Correctional Services Article, §6-112, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(20)"> <text>“Sentencing event” means a sentencing disposition or hearing for an individual defendant conducted in front of one judge on the same day.</text> </paragraph> <paragraph num="(21)"> <text>“Sentencing guidelines worksheet” means the form:</text> <paragraph num="(a)"> <text>Issued by the Commission on Criminal Sentencing Policy; and</text> </paragraph> <paragraph num="(b)"> <text>Used to determine the recommended sentence outcome and to record sentencing data.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Seriousness category” means an offense ranking ranging from I to VII, where I designates the most serious criminal offenses and VII designates the least serious criminal offenses.</text> </paragraph> <paragraph num="(23)"> <text>“Single criminal event” means one or more crimes committed in the course of the same transaction.</text> </paragraph> <paragraph num="(24)"> <text>“Special vulnerability of victim” means cases in which the relative status of the victim tends to render the actions of the perpetrator more serious. A vulnerable victim is anyone:</text> <paragraph num="(a)"> <text>Younger than 11 years old;</text> </paragraph> <paragraph num="(b)"> <text>65 years old or older; or</text> </paragraph> <paragraph num="(c)"> <text>Having a temporary or permanent physical or mental disability, including an individual who is physically or mentally limited in a material way. Examples of a temporary physical or mental limitation include, but are not limited to, instances when the offender knew or should have known the victim was pregnant, unconscious, asleep, or intoxicated.</text> </paragraph> </paragraph> <paragraph num="(25)"> <text>“Victim injury” means physical or psychological injury to the crime victim, the cause of which is directly linked to the conduct of the defendant in the commission of the offense.</text> </paragraph> <paragraph num="(26)"> <text>“Weapon presence” means the presence of an article or device which reasonably appears capable of causing injury or the presence of an article that could result in conviction under Criminal Law Article, §4-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(27)"> <text>“White collar offense” means a property offense, identified as an illegal act or series of illegal acts committed by other than physical means and by concealment or guile to:</text> <paragraph num="(a)"> <text>Obtain money or property;</text> </paragraph> <paragraph num="(b)"> <text>Avoid payment or loss of money or property; or</text> </paragraph> <paragraph num="(c)"> <text>Obtain business or professional advantage.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Sentencing Guidelines Worksheet."> <paragraph num="A."> <text>The sentencing guidelines worksheet issued by the Commission on Criminal Sentencing Policy shall be used to calculate the sentencing guidelines.</text> </paragraph> <paragraph num="B."> <text>The sentencing guidelines and offense seriousness categories in effect at the time of sentencing shall be used to calculate the guidelines. If it is determined that the guidelines are different than what they would have been if calculated using the sentencing guidelines and offense seriousness categories in effect on the date the instant offense was committed, the State's Attorney or defense counsel may bring this to the attention of the judge as a consideration for departure from the guidelines.</text> </paragraph> <paragraph num="C."> <text>Single Criminal Event.</text> <paragraph num="(1)"> <text>The sentencing guidelines worksheet shall be used for up to three offenses from a single criminal event.</text> </paragraph> <paragraph num="(2)"> <text>If there are more than three offenses from a single criminal event, additional worksheets shall be used as needed.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Multiple Criminal Events.</text> <paragraph num="(1)"> <text>When two or more adjudications result from separate criminal transactions over a period of time, each criminal transaction is considered a separate event.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall use at least one worksheet for each event.</text> </paragraph> <paragraph num="(3)"> <text>In determining whether multiple crimes are committed in the course of the same transaction, the person filling out the guidelines worksheet shall consider whether the crimes:</text> <paragraph num="(a)"> <text>Are committed close in time, in an uninterrupted course of conduct;</text> </paragraph> <paragraph num="(b)"> <text>Occur in the same location; and</text> </paragraph> <paragraph num="(c)"> <text>Are similar in nature or intertwined (for example, whether they share a common scheme or purpose).</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Sentencing Event.</text> <paragraph num="(1)"> <text>One set of sentencing guidelines shall be completed for each sentencing event.</text> </paragraph> <paragraph num="(2)"> <text>Multiple criminal events (as often indicated by multiple unique case numbers) sentenced by the same judge on the same day constitute one sentencing event, and only one set of guidelines worksheets shall be completed for all of the counts in the sentencing event.</text> </paragraph> <paragraph num="(3)"> <text>The offender score includes any adult adjudication prior to the current sentence date and any finding of a delinquent act (i.e., findings of facts sustained at an adjudicatory hearing) within 5 years prior to the date of the most recent instant offense (unless the defense or State can show that a finding of a delinquent act did not result in the youth's adjudication as delinquent at a juvenile disposition hearing, in which case the finding of a delinquent act shall not be scored as a part of the juvenile record) and, with the possible exception of part A of the offender score (relationship to the criminal justice system), shall be the same for each offense in the sentencing event.</text> </paragraph> <paragraph num="(4)"> <text>The overall sentence across all included offenses shall be compared to the overall guidelines for the sentencing event to determine if the sentence is a departure from the guidelines.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Sentencing Guidelines Completion.</text> <paragraph num="(1)"> <text>Before the judge imposes the sentence, an individual shall complete the worksheet down to the section labeled “Actual Sentence” and include each offense for which the offender is to be sentenced.</text> </paragraph> <paragraph num="(2)"> <text>If the judge orders a PSI, an agent of the Division of Parole and Probation shall complete each worksheet.</text> </paragraph> <paragraph num="(3)"> <text>If the judge does not order a PSI, the judge may complete the worksheet personally or delegate the task to counsel or the judge's staff.</text> </paragraph> <paragraph num="(4)"> <text>Regardless of who completes the worksheet, the court shall review the worksheet to confirm that the guidelines reflected on the worksheet were considered in the respective case.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Presentencing Distribution of Sentencing Guidelines Worksheets.</text> <paragraph num="(1)"> <text>The individual who completes the worksheet shall forward a copy of each completed worksheet to both the State and the defense so that they will have an opportunity to review the information provided.</text> </paragraph> <paragraph num="(2)"> <text>The State and the defense shall bring any disagreements between them to the judge's attention before sentencing.</text> </paragraph> <paragraph num="(3)"> <text>Changes in the worksheet may be made only by, or with the approval of, the judge.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Sentencing Guidelines Sentence."> <paragraph num="A."> <text>Sentence Range. Suspended time is not considered in determining whether the sentence falls within the recommended sentence range.</text> </paragraph> <paragraph num="B."> <text>Offender Already Under Sentence.</text> <paragraph num="(1)"> <text>If an offender is already serving one or more sentences, the time remaining to be served may be considered in determining whether the sentence or sentences are within the recommended guidelines range.</text> </paragraph> <paragraph num="(2)"> <text>The judge shall indicate whether the new sentence is consecutive to or concurrent with the existing sentence.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Length of Probation. Within statutory limits, the length of any probation imposed is within the discretion of the judge.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Sentences Outside the Guidelines."> <paragraph num="A."> <text>The judge shall document on the guidelines worksheet the reason or reasons for imposing a sentence outside of the recommended guidelines range.</text> </paragraph> <paragraph num="B."> <text>Common reasons for departure under the guidelines range include, but are not limited to, the following:</text> <paragraph num="(1)"> <text>The parties reached a plea agreement that called for a reduced sentence;</text> </paragraph> <paragraph num="(2)"> <text>The offender had a minor role in the offense;</text> </paragraph> <paragraph num="(3)"> <text>The offender is or was suffering from a mental or physical condition that reduces culpability for the offense;</text> </paragraph> <paragraph num="(4)"> <text>The offender’s age/health;</text> </paragraph> <paragraph num="(5)"> <text>The offender is amenable to probation or other community supervision;</text> </paragraph> <paragraph num="(6)"> <text>The offender made restorative efforts after the offense;</text> </paragraph> <paragraph num="(7)"> <text>The offender’s criminal history is less severe than represented by offender score;</text> </paragraph> <paragraph num="(8)"> <text>The offender's commitment to substance abuse treatment or other therapeutic program; or</text> </paragraph> <paragraph num="(9)"> <text>Recommendation of the State's attorney or Division of Parole and Probation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Common reasons for departure over the guidelines range include, but are not limited to, the following:</text> <paragraph num="(1)"> <text>The offender had a major role in the offense;</text> </paragraph> <paragraph num="(2)"> <text>The level of harm was excessive;</text> </paragraph> <paragraph num="(3)"> <text>Special circumstances of the victim;</text> </paragraph> <paragraph num="(4)"> <text>The offender exploited a position of trust;</text> </paragraph> <paragraph num="(5)"> <text>The offender’s criminal history is more serious than represented by offender score;</text> </paragraph> <paragraph num="(6)"> <text>The parties reached a plea agreement that called for an increased sentence;</text> </paragraph> <paragraph num="(7)"> <text>The vicious or heinous nature of the conduct; or</text> </paragraph> <paragraph num="(8)"> <text>Recommendation of the State's attorney or Division of Parole and Probation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Guidelines Worksheet Distribution."> <paragraph num="A."> <text>Worksheet Completion. The judge, the State, and the defense shall receive copies of the worksheets before sentencing. When an agent of the Division of Parole and Probation fills in a worksheet, the agent shall send the judge the first four copies, together with the PSI and the Maryland Sentencing Guidelines Criteria for Prior Record form issued by the Commission on Criminal Sentencing Policy.</text> </paragraph> <paragraph num="B."> <text>Worksheet Completion. At sentencing, the judge shall enter the actual sentence and any changes to the worksheet including changes for any counts merged at sentencing.</text> </paragraph> <paragraph num="C."> <text>Worksheet Distribution. After sentencing, the clerk shall distribute copies according to individual court practice. The Maryland Sentencing Guidelines Criteria for Prior Record form shall accompany the worksheets sent to the Commission on Criminal Sentencing Policy. If the court orders both incarceration and probation, the clerk shall forward a copy of the worksheet to the appropriate probation office. The clerk shall forward a copy of the worksheet to the agency that has been ordered to retain custody of the defendant. An agency receiving an inmate eligible for parole shall duplicate its worksheet and forward a copy of the worksheet to the Parole Commission.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Case Information."> <paragraph num="A."> <text>The top section of the sentencing guidelines worksheet contains:</text> <paragraph num="(1)"> <text>The offender's name, State Identification (SID) number, sex, race, ethnicity, and birth date;</text> </paragraph> <paragraph num="(2)"> <text>Jurisdiction where the case was tried;</text> </paragraph> <paragraph num="(3)"> <text>Whether or not a PSI was available;</text> </paragraph> <paragraph num="(4)"> <text>Dates of offense and sentencing;</text> </paragraph> <paragraph num="(5)"> <text>Number of offenses and criminal events at the sentencing being reported;</text> </paragraph> <paragraph num="(6)"> <text>The number of the worksheet and criminal event;</text> </paragraph> <paragraph num="(7)"> <text>Disposition type, modification to COV sentences, and representation;</text> </paragraph> <paragraph num="(8)"> <text>The title of the instant offense and its seriousness category (I—VII), Maryland State Criminal Charge Code (commonly known as a “CJIS” code), and Annotated Code of Maryland article and section number or common law reference;</text> </paragraph> <paragraph num="(9)"> <text>Statutory maximum and mandatory minimum penalties;</text> </paragraph> <paragraph num="(10)"> <text>The case or docket number; and</text> </paragraph> <paragraph num="(11)"> <text>Whether or not victim-related court costs were imposed.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Jurisdiction Code. The individual completing the worksheet shall use the following numeric codes for the jurisdiction in which the defendant was tried on the guidelines worksheet:</text> <paragraph num="(1)"> <text>Allegany County = 1;</text> </paragraph> <paragraph num="(2)"> <text>Anne Arundel County = 2;</text> </paragraph> <paragraph num="(3)"> <text>Baltimore City = 24;</text> </paragraph> <paragraph num="(4)"> <text>Baltimore County = 3;</text> </paragraph> <paragraph num="(5)"> <text>Calvert County = 4;</text> </paragraph> <paragraph num="(6)"> <text>Caroline County = 5;</text> </paragraph> <paragraph num="(7)"> <text>Carroll County = 6;</text> </paragraph> <paragraph num="(8)"> <text>Cecil County = 7;</text> </paragraph> <paragraph num="(9)"> <text>Charles County = 8;</text> </paragraph> <paragraph num="(10)"> <text>Dorchester County = 9;</text> </paragraph> <paragraph num="(11)"> <text>Frederick County = 10;</text> </paragraph> <paragraph num="(12)"> <text>Garrett County = 11;</text> </paragraph> <paragraph num="(13)"> <text>Harford County = 12;</text> </paragraph> <paragraph num="(14)"> <text>Howard County = 13;</text> </paragraph> <paragraph num="(15)"> <text>Kent County = 14;</text> </paragraph> <paragraph num="(16)"> <text>Montgomery County = 15;</text> </paragraph> <paragraph num="(17)"> <text>Prince George's County = 16;</text> </paragraph> <paragraph num="(18)"> <text>Queen Anne's County = 17;</text> </paragraph> <paragraph num="(19)"> <text>St. Mary's County = 18;</text> </paragraph> <paragraph num="(20)"> <text>Somerset County = 19;</text> </paragraph> <paragraph num="(21)"> <text>Talbot County = 20;</text> </paragraph> <paragraph num="(22)"> <text>Washington County = 21;</text> </paragraph> <paragraph num="(23)"> <text>Wicomico County = 22;</text> </paragraph> <paragraph num="(24)"> <text>Worcester County = 23.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Offenses.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall record the total number of offenses for which a judge may impose a sentence in the space provided on the worksheet.</text> </paragraph> <paragraph num="(2)"> <text>Offenses considered as merged may not be placed on the worksheet and may not be considered in any of the worksheet computations.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Number of Criminal Events. The individual completing the worksheet shall write the total number of criminal events for which a defendant is being sentenced in the space for the number of criminal events at the sentencing.</text> </paragraph> <paragraph num="E."> <text>Page Numbering of Worksheets.</text> <paragraph num="(1)"> <text>Multiple worksheets may be required for a single sentencing event. The individual completing the worksheets shall number each worksheet consecutively in the space provided for worksheet number.</text> </paragraph> <paragraph num="(2)"> <text>If a sentencing event consists of more than one criminal event, the individual completing the worksheets shall maintain a separate count of worksheets for each criminal event.</text> </paragraph> <paragraph num="(3)"> <text>If a sentencing event consists of more than one criminal event, the individual completing the worksheets shall number the criminal events chronologically by date of offense.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Offense Title. The individual completing the worksheet shall write the offense titles and their corresponding Annotated Code of Maryland references or a reference to the common law in the space provided.</text> </paragraph> <paragraph num="G."> <text>Signatures. The judge and the individual or individuals completing the worksheet shall sign at the bottom of the worksheet in the space provided.</text> </paragraph> <paragraph num="H."> <text>Disposition Type.</text> <paragraph num="(1)"> <text>The disposition type refers to the nature and circumstances of the adjudication and sentencing.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall indicate on the worksheet whether the disposition resulted from:</text> <paragraph num="(a)"> <text>An MSCCSP binding plea agreement;</text> </paragraph> <paragraph num="(b)"> <text>Another plea with agreement;</text> </paragraph> <paragraph num="(c)"> <text>A plea without agreement from the prosecutor or judge regarding the terms of the plea;</text> </paragraph> <paragraph num="(d)"> <text>A court trial; or</text> </paragraph> <paragraph num="(e)"> <text>A trial by jury.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The judge shall ensure that the disposition type box is marked.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Reconsideration or Review. The individual completing the worksheet shall indicate on the worksheet whether the sentence was a reconsideration for a crime of violence, as defined in Criminal Law Article, §14-101, Annotated Code of Maryland, a three-judge panel review, or neither.</text> </paragraph> <paragraph num="J."> <text>Representation. In the box labeled Representation, the individual completing the worksheet shall indicate the type of legal representation the defendant received in the case.</text> </paragraph> <paragraph num="K."> <text>Victim Information. The individual completing the worksheet shall provide the victim information requested in the designated space on the worksheet. The information requested includes:</text> <paragraph num="(1)"> <text>Whether there was a victim in this offense;</text> </paragraph> <paragraph num="(2)"> <text>Whether the victim participated in the sentencing process;</text> </paragraph> <paragraph num="(3)"> <text>Whether the victim filed a Crime Victim Notification and Demand for Rights form;</text> </paragraph> <paragraph num="(4)"> <text>Whether the victim was notified of a plea agreement;</text> </paragraph> <paragraph num="(5)"> <text>Whether the victim was notified of and present at the sentencing;</text> </paragraph> <paragraph num="(6)"> <text>Whether there was a written or an oral Victim Impact Statement (VIS);</text> </paragraph> <paragraph num="(7)"> <text>Whether the victim or State requested that the defendant have no contact with the victim; and</text> </paragraph> <paragraph num="(8)"> <text>Whether the judge ordered that the defendant have no contact with the victim.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Annotated Code of Maryland, Article and Section.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall identify the Annotated Code of Maryland reference for each offense. The reference shall include the name or number of the article, the section number, and any subsection letters or numbers. If the substantive offense and the penalty for the offense are in separate sections or subsections, they shall both be referenced.</text> </paragraph> <paragraph num="(2)"> <text>“Common Law” shall be written in this space if the source of the offense is the common law. Some common law offenses have penalty provisions in the Annotated Code of Maryland. In these cases, the Code reference shall also be included.</text> </paragraph> </paragraph> <paragraph num="M."> <text>CJIS Code. The individual completing the worksheet shall record in the designated space the CJIS code that corresponds to the offense. The CJIS codes can be found in COMAR 14.22.02.02. If there are multiple CJIS codes for a listed offense and it is not known which code corresponds to the specific offense conduct, the space can be left blank.</text> </paragraph> <paragraph num="N."> <text>Statutory Maximum and Mandatory Minimum Penalties.</text> <paragraph num="(1)"> <text>The maximum penalty prescribed for each offense shall be recorded in the designated space on the worksheet.</text> </paragraph> <paragraph num="(2)"> <text>If the offense carries a nonsuspendable mandatory minimum penalty, that penalty shall be recorded in the designated space on the worksheet.</text> </paragraph> </paragraph> <paragraph num="O."> <text>Economic Loss. In the area labeled “Actual Sentence”, the individual completing the worksheet shall record in the designated space the dollar amount of the economic loss or mark “unknown amount” for all offenses involving theft and related crimes under Criminal Law Article, Title 7, or fraud and related crimes under Criminal Law Article, Title 8, Annotated Code of Maryland.</text> </paragraph> <paragraph num="P."> <text>Record of Announcement. The court shall make a record of the statement in open court required under Criminal Procedure Article, §6-217, Annotated Code of Maryland, of the minimum time the defendant must serve before becoming eligible for parole.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Guidelines Scoring."> <paragraph num="A."> <text>For person offenses, the individual completing the worksheet shall compute an offense score and an offender score for each offense to be sentenced.</text> </paragraph> <paragraph num="B."> <text>For drug and property offenses, the individual completing the worksheet shall compute the offender score and shall use the assigned offense seriousness category.</text> </paragraph> <paragraph num="C."> <text>Seriousness Category of the Offense.</text> <paragraph num="(1)"> <text>Unless placed in a different category or specifically addressed by separate statute, the individual completing the worksheet shall consider a conspiracy, attempt, or solicitation in the same seriousness category as the substantive offense.</text> </paragraph> <paragraph num="(2)"> <text>For conspiracy to commit a lawful act by unlawful means, the seriousness category and offense type classification shall be the same as the most serious unlawful means by which the lawful act was to be accomplished. If there is a question as to the seriousness category or offense type classification for the conspiracy to commit a lawful act by unlawful means, that question shall be brought to the attention of the judge at sentencing.</text> </paragraph> <paragraph num="(3)"> <text>Accessoryship.</text> <paragraph num="(a)"> <text>If the accessory after the fact has a penalty of 5 years or greater under Criminal Law Article, §1-301, Annotated Code of Maryland, a seriousness category V shall be assigned, unless the underlying offense has a seriousness category of less than V, in which case the accessory after the fact shall be assigned the same seriousness category as the underlying offense.</text> </paragraph> <paragraph num="(b)"> <text>If the accessory after the fact has a penalty of less than 5 years under Criminal Law Article, §1-301, Annotated Code of Maryland, the seriousness category shall be the same category as the underlying offense.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>For conspiracy, attempt, solicitation, or accessoryship, the individual completing the worksheet shall specify the substantive illegal activity involved, and the substantive offense’s Annotated Code of Maryland article and section number, if any.</text> </paragraph> <paragraph num="(5)"> <text>If a Maryland offense has not been assigned a seriousness category and the offense has a maximum penalty of 1 year or less, the offense shall be assigned the lowest seriousness category (VII).</text> </paragraph> <paragraph num="(6)"> <text>If a Maryland offense has not been assigned a seriousness category and the offense has a maximum penalty greater than 1 year, the individual completing the worksheet shall use the closest analogous offense and the sentencing judge and the parties shall be notified.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Offense Score."> <paragraph num="A."> <text>Computation of Offense Score. The individual completing the worksheet shall derive the offense score for each offense by totaling the points given for certain factors of that offense. A column of offense scores is provided on the worksheet for each of the three possible offenses within a single criminal event. A judge may include factors known to the judge even if they are not within the scope of the offense, such as weapon presence in a robbery offense or victim injury in an offense involving a handgun violation.</text> </paragraph> <paragraph num="B."> <text>Elements of the Offense Score.</text> <paragraph num="(1)"> <text>The offense score consists of four elements.</text> </paragraph> <paragraph num="(2)"> <text>Seriousness Category of the Offense.</text> <paragraph num="(a)"> <text>The individual completing the worksheet shall assign points based on the seriousness category of the offense. COMAR 14.22.02 contains a list of Maryland criminal offenses and their assigned seriousness categories.</text> </paragraph> <paragraph num="(b)"> <text>The individual completing the worksheet shall assign the number of points that correspond to the seriousness category of each offense on the guidelines worksheet.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Victim Injury.</text> <paragraph num="(a)"> <text>Victim injury, whether physical or psychological, shall be based on reasonable proof. Physical injury shall be more than minimal. Physical injuries such as lasting muscle damage or amputation are permanent. Proof of psychological injury shall be based on confirmed medical diagnosis or psychological counseling or treatment, or other forms of reasonable proof. Rape crisis hotlines, clergy conferences, educational counseling, and other similar services are considered psychological counseling or treatment. Permanent psychological injury shall be based on proof of a substantial impairment likely to be of an extended or continuous duration. Offenses involving photographic or video evidence of child pornography shall be scored as permanent victim injury.</text> </paragraph> <paragraph num="(b)"> <text>The individual completing the worksheet shall assign a score of 0 if there was no victim injury.</text> </paragraph> <paragraph num="(c)"> <text>The individual completing the worksheet shall assign a score of 1 if victim injury occurred and the injury was not permanent.</text> </paragraph> <paragraph num="(d)"> <text>The individual completing the worksheet shall assign a score of 2 if victim injury occurred and the injury was permanent or resulted in the death of the victim.</text> </paragraph> <paragraph num="(e)"> <text>The victim injury component of the offense score shall be completed for each offense to be sentenced.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Weapon Presence.</text> <paragraph num="(a)"> <text>The individual completing the worksheet shall assign a score of 0 if no weapon was present.</text> </paragraph> <paragraph num="(b)"> <text>The individual completing the worksheet shall assign a score of 1 if a weapon other than a firearm was present.</text> </paragraph> <paragraph num="(c)"> <text>The individual completing the worksheet shall assign a score of 2 if a firearm or explosive material was present.</text> </paragraph> <paragraph num="(d)"> <text>The individual completing the worksheet shall complete the weapon presence component of the offense score for each offense to be sentenced. The individual completing the worksheet shall apply the following rules:</text> <paragraph num="(i)"> <text>Explosive material (as defined in Criminal Law Article, §4–501, Annotated Code of Maryland) is considered the same as a firearm;</text> </paragraph> <paragraph num="(ii)"> <text>An unloaded firearm is considered the same as a loaded firearm;</text> </paragraph> <paragraph num="(iii)"> <text>Weapons other than firearms include incendiary and toxic materials (as defined in Criminal Law Article, §4–501, Annotated Code of Maryland), knives, tire irons, and clubs;</text> </paragraph> <paragraph num="(iv)"> <text>Carbon dioxide (CO2) guns (including pellet guns) and starter pistols are also scored as weapons other than firearms and receive one point;</text> </paragraph> <paragraph num="(v)"> <text>Except if deliberately used as a weapon, automobiles are not included as weapons and shall receive a weapon presence score of zero;</text> </paragraph> <paragraph num="(vi)"> <text>Unless the offender is a professional in some form of self-defense, parts of the body, such as hands or feet, are not included as weapons;</text> </paragraph> <paragraph num="(vii)"> <text>If a weapon was feigned but no weapon was actually present, the score shall be 1 (weapon other than firearm);</text> </paragraph> <paragraph num="(viii)"> <text>A feigned weapon shall be scored 1 point when an individual intentionally creates the false impression that there is an actual weapon present, including a finger used to simulate a gun, a written note stating that there is a dangerous weapon present, or a verbal statement that there is a dangerous weapon present; and</text> </paragraph> <paragraph num="(ix)"> <text>Any applicable guidelines points for weapon presence shall be given to an accessory before the fact, but not to an accessory after the fact.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Special Vulnerability of Victim. The individual completing the worksheet shall assign a score of 0 if the victim is not defined as a vulnerable victim. The individual completing the worksheet shall assign a score of 1 if the victim is defined as a vulnerable victim. The individual completing the worksheet shall complete the Special Vulnerability of Victim component of the offense score for each offense to be sentenced.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Total Offense Score. To obtain an offense score, the individual completing the worksheet shall add the points assigned to each element of the offense score for each person offense for which the defendant is to be sentenced. The maximum score is 15 and the minimum score is 1.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Computation of the Offender Score."> <paragraph num="A."> <text>Computation of the Offender Score. The individual completing the worksheet shall derive the offender score by totaling the points represented by the offender's prior criminal history. Any prior criminal adjudications, as defined in COMAR 14.22.01.02B(1), shall be included. With the exception of the juvenile delinquency component of the offender score, the offender score refers only to the defendant's adult involvement with the criminal justice system. A prior adjudication of not criminally responsible (NCR) or not guilty by reason of insanity may not be included when calculating the offender score.</text> </paragraph> <paragraph num="B."> <text>Four Components of the Offender Score.</text> <paragraph num="(1)"> <text>Relationship to the Criminal Justice System When Instant Offense Occurred.</text> <paragraph num="(a)"> <text>If the offender was in the criminal justice system as the result of an adjudication as an adult when the instant offense occurred, the individual completing the worksheet shall assign a score of 1.</text> </paragraph> <paragraph num="(b)"> <text>The offender was in the criminal justice system if the offender was on parole, on probation, incarcerated, on work release, on mandatory supervision, was an escapee, or had a comparable status at the time the offense was committed.</text> </paragraph> <paragraph num="(c)"> <text>An offender is not considered to be in the criminal justice system if the offender was on unsupervised probation for an offense not punishable by imprisonment.</text> </paragraph> <paragraph num="(d)"> <text>Relationship to the criminal justice system may differ across offenses in multiple offense sentencing events. If there is more than one instant offense and the offender was in the criminal justice system at the time one or more offenses occurred, but not in the criminal justice system at the time additional offense(s) in the sentencing event occurred, the person completing the sentencing guidelines worksheet shall assign a score of 1 to those offenses that were committed while the offender was in the criminal justice system. The person completing the sentencing guidelines worksheet shall assign a score of zero to those offenses that were committed while the offender was not in the criminal justice system.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Juvenile Delinquency.</text> <paragraph num="(a)"> <text>The individual completing the worksheet shall count only one finding of a delinquent act (i.e., finding of facts sustained at an adjudicatory hearing) for a single adjudicatory hearing. If multiple findings of a delinquent act relate to a single adjudicatory hearing, the individual completing the worksheet shall count only one finding of a delinquent act.</text> </paragraph> <paragraph num="(b)"> <text>When the defense or State can show that a finding of a delinquent act did not result in the youth’s adjudication as delinquent at a juvenile disposition hearing, the finding of a delinquent act shall not be scored as a part of the juvenile record.</text> </paragraph> <paragraph num="(c)"> <text>The juvenile delinquency record may not include adjudications based on acts that are no longer crimes.</text> </paragraph> <paragraph num="(d)"> <text>The individual completing the worksheet shall treat an incarcerable traffic offense in which the court finds a juvenile involved as part of his or her juvenile record.</text> </paragraph> <paragraph num="(e)"> <text>The individual completing the worksheet shall assign a score of 0 if an offender is 23 years or older by the date of the most recent instant offense. The individual completing the worksheet shall assign a score of 0 if an offender has zero findings of a delinquent act within 5 years of the date of the most recent instant offense.</text> </paragraph> <paragraph num="(f)"> <text>The individual completing the worksheet shall assign a score of 1 if an offender:</text> <paragraph num="(i)"> <text>Is younger than 23 years old on the date of the most recent instant offense; and</text> </paragraph> <paragraph num="(ii)"> <text>Has one or two findings of a delinquent act within 5 years of the date of the most recent instant offense.</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>The individual completing the worksheet shall assign a score of 2 if an offender:</text> <paragraph num="(i)"> <text>Is younger than 23 years old on the date of the most recent instant offense; and</text> </paragraph> <paragraph num="(ii)"> <text>Has three or more findings of a delinquent act within 5 years of the date of the most recent instant offense.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Prior Adult Criminal Record.</text> <paragraph num="(a)"> <text>In General.</text> <paragraph num="(i)"> <text>Except as noted in this paragraph, the prior adult criminal record includes all adjudications preceding the current sentencing event, whether the offense was committed before, during, or after the instant offense(s). The prior adult criminal record shall not include: adjudications that were expunged from the record or proven by the defense to have been eligible for expungement as a matter of right prior to the date of offense pursuant to Subtitle 1 (Expungement of Police and Court Records) of Title 10 (Criminal Records) of the Criminal Procedure Article, Annotated Code of Maryland; violations of public local laws; municipal infractions; contempt; criminal nonsupport; adjudications based on acts that are no longer crimes (e.g., cannabis possession); non-incarcerable traffic offenses; military adjudications imposed by an Article 15 proceeding or summary court-martial; findings of guilt by general or special courts-martial, if the elements of the offense require the defendant’s service in a military force, including but not limited to desertion, absence without leave (AWOL), and conduct unbecoming an officer and a gentleman, or do not constitute an offense under Maryland law; or more than one adjudication arising from a single criminal event.</text> </paragraph> <paragraph num="(ii)"> <text>The sentencing guidelines and offense table in effect at the time of the current sentencing event shall be used to determine the correct seriousness category for each adjudication included in the calculation of the prior adult criminal record.</text> </paragraph> <paragraph num="(iii)"> <text>If a Maryland offense has not been assigned a seriousness category and the offense has a maximum penalty of 1 year or less, the offense shall be assigned the lowest seriousness category (VII).</text> </paragraph> <paragraph num="(iv)"> <text>If a Maryland offense has not been assigned a seriousness category (and the offense has a maximum penalty of more than one year) or has been repealed from the Annotated Code of Maryland, but the act on which the repealed offense is based is still a crime, the individual completing the worksheet shall use the closest analogous offense and the sentencing judge and the parties shall be notified.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Criteria.</text> <paragraph num="(i)"> <text>The individual completing the worksheet shall use the instructions and table below to determine whether a defendant's prior criminal adult record is minor, moderate, or major. If the defendant has no prior adult criminal record, the individual completing the worksheet shall assign a score of 0. If the defendant has a minor adult criminal record, the individual completing the worksheet shall assign a score of 1. If the defendant has a moderate criminal record, the individual completing the worksheet shall assign a score of 3. If the defendant has a major criminal record, the individual completing the worksheet shall assign a score of 5.</text> </paragraph> <paragraph num="(ii)"> <text>The individual completing the worksheet shall count the number of prior adjudications according to the seriousness categories. If prior multiple adjudications relate to a single criminal event, the individual completing the worksheet shall score only the offense with the highest seriousness category. The prior adult criminal record shall score no more than one adjudication stemming from a single criminal event.</text> </paragraph> <paragraph num="(iii)"> <text>Taking the number of adjudications in the most serious category of offenses, the individual completing the worksheet shall refer to the table below and locate the block containing the number of adjudications for that seriousness category.</text> </paragraph> <paragraph num="(iv)"> <text>The individual completing the worksheet shall use the criteria in the identified block to classify the record as Minor, Moderate, or Major.</text> </paragraph> <paragraph num="(v)"> <text>Criteria Matrix.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Different Criminal Events Sentenced Together. If multiple offenses from different criminal events are being sentenced together at this sentencing event, the offender's criminal record includes any adjudication before the current sentencing and is the same for each offense being sentenced at this time.</text> </paragraph> <paragraph num="(d)"> <text>Adjudications Out of Jurisdiction. If an offender has an out of jurisdiction adjudication, excluding military adjudications (see §B(3)(e) of this regulation for instructions for scoring military adjudications), the individual completing the worksheet shall match the offense as closely as possible to the closest analogous Maryland offense. If no Maryland analogous offense exists, the individual completing the worksheet shall count the offense in the lowest seriousness category (VII), and shall inform the judge and parties. If the out of jurisdiction adjudication is based on act that is not a criminal violation in Maryland (e.g., cannabis possession), then the out of jurisdiction adjudication shall be excluded from the prior adult criminal record. If there is a question as to the analogous guidelines offense for an out-of-State adjudication, that question shall be brought to the attention of the judge at sentencing.</text> </paragraph> <paragraph num="(e)"> <text>Military Adjudications. If an offender has a finding of guilt by a general or special court-martial, the military adjudication shall be matched as closely as possible to the closest analogous Maryland offense. If a military adjudication has no equivalent in Maryland law or requires as an element of the offense the defendant’s service in a military force, including but not limited to desertion, absence without leave (AWOL), and conduct unbecoming an officer and a gentleman, the offense shall be excluded from the adult prior criminal record. If there is a question as to the analogous guidelines offense for a military adjudication, that question shall be brought to the attention of the judge at sentencing.</text> </paragraph> <paragraph num="(f)"> <text>Theft-Type Offenses. Theft adjudications, such as larceny, larceny by trick, or larceny after trust, that took place before the enactment of the comprehensive theft statute in 1978 are considered misdemeanor theft if they were misdemeanors and felony theft if they were felonies.</text> </paragraph> <paragraph num="(g)"> <text>Criminal Record Decay Factor. If an offender has lived in the community for at least 10 years prior to the instant offense without criminal justice system involvement resulting from an adjudication or a plea of nolo contendere, the criminal record shall be reduced by one level: from Major to Moderate, from Moderate to Minor, or from Minor to None. An offender was in the criminal justice system if the offender was on parole, on probation, incarcerated, on work release, on mandatory supervision, was an escapee, or had a comparable status. An offender is not considered to be in the criminal justice system if the offender was on unsupervised probation for an offense not punishable by imprisonment.</text> </paragraph> <paragraph num="(h)"> <text>Conspiracies, Attempts, Solicitations, and Accessoryships.</text> <paragraph num="(i)"> <text>The individual completing the worksheet shall place conspiracies, attempts, and solicitations in the same seriousness category as the substantive offense unless placed in a different category or specifically addressed by separate statute.</text> </paragraph> <paragraph num="(ii)"> <text>For conspiracy to commit a lawful act by unlawful means, the seriousness category and offense type classification shall be the same as the most serious unlawful means by which the lawful act was to be accomplished. If there is a question as to the seriousness category or offense type classification for the conspiracy to commit a lawful act by unlawful means, that question shall be brought to the attention of the judge at sentencing.</text> </paragraph> <paragraph num="(iii)"> <text>If accessory after the fact has a penalty of 5 years or greater under Criminal Law Article, §1-301, Annotated Code of Maryland, a seriousness category V shall be assigned, unless the underlying offense has a seriousness category of less than V, in which case the accessory after the fact shall be assigned the same seriousness category as the underlying offense.</text> </paragraph> <paragraph num="(iv)"> <text>If accessory after the fact has a penalty of less than 5 years under Criminal Law Article, §1-301, Annotated Code of Maryland, the seriousness category shall be the same category as the underlying offense.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Prior Adult Parole/Probation Violations.</text> <paragraph num="(a)"> <text>The individual completing the worksheet shall assign a score of 0 if the offender has never been on adult parole, probation, or equivalent supervisory status, or has successfully completed previous periods of supervision as an adult.</text> </paragraph> <paragraph num="(b)"> <text>The individual completing the worksheet shall assign a score of 1 if the offender was ever found by a court to have violated parole, probation, or equivalent supervisory status, or if the offender has ever received an adjudication for an offense while on parole, probation, or equivalent supervisory status, unless the adjudication arose from the offense or offenses of this sentencing event. The individual completing the worksheet may not assign a point simply because the offender was on parole, probation, or equivalent supervisory status at the time of the instant offense.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Total Offender Score. To obtain the total offender score, the individual completing the worksheet shall add the points assigned to each element of the offender score. The maximum offender score is 9 and the minimum score is 0.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Determining the Guidelines Sentence."> <paragraph num="A."> <text>Guidelines Range. After the offense and offender scores have been calculated for each offense, the individual completing the worksheet shall use the appropriate matrix — person, drug, or property — to determine the guidelines range. In multiple offense cases, the individual completing the worksheet shall determine the overall guidelines range after calculating guidelines for the individual offenses.</text> </paragraph> <paragraph num="B."> <text>Actual Sentence. At the time of sentencing, the judge shall enter the actual sentence on the worksheet. Complete sentencing information for each offense includes credit for time served, suspended time, length of probation, fine, restitution, and community service. If at any time a sentence is altered, a judge shall issue a revised worksheet and direct that the worksheet be distributed in the same manner as an original worksheet.</text> </paragraph> <paragraph num="C."> <text>Person Offenses.</text> <paragraph num="(1)"> <text>To find the recommended guidelines sentence for a person offense, the individual completing the worksheet shall use the sentencing matrix for offenses against persons. The guideline ranges are in a grid format with the offense score on the vertical axis and the offender score on the horizontal axis. The guidelines range for any given offense is in the cell where the two scores intersect.</text> </paragraph> <paragraph num="(2)"> <text>Sentencing Matrix for Offenses Against Persons.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Drug Offenses.</text> <paragraph num="(1)"> <text>To find the recommended guidelines sentence for a drug offense, the individual completing the worksheet shall use the sentencing matrix for drug offenses. The guideline range for a particular instant offense is in the cell opposite the seriousness category for that offense and under the applicable offender score.</text> </paragraph> <paragraph num="(2)"> <text>Sentencing Matrix for Drug Offenses.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Property Offenses.</text> <paragraph num="(1)"> <text>To find the recommended guidelines sentence for a property offense, the individual completing the worksheet shall use the sentencing matrix for property offenses. The guidelines range for a particular offense is in the cell opposite the seriousness category for that offense and under the applicable offender score.</text> </paragraph> <paragraph num="(2)"> <text>Sentencing Matrix for Property Offenses.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Multiple Offense Scoring."> <paragraph num="A."> <text>Single Criminal Event, Not More Than One Seriousness Category I or II Offense.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall calculate the guidelines range for each offense.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall determine the overall guideline range by:</text> <paragraph num="(a)"> <text>Identifying the highest of the lower guidelines limit of all the offenses; and</text> </paragraph> <paragraph num="(b)"> <text>Identifying the greater of:</text> <paragraph num="(i)"> <text>The highest of the upper guidelines limits;</text> </paragraph> <paragraph num="(ii)"> <text>If there are separate offenses involving different victims, adding or “stacking” the highest of the upper guidelines limit for each offense with a unique victim. Only one offense per distinct victim may be used to calculate the overall guidelines range. Pursuant to Criminal Law Article, §10-627, Annotated Code of Maryland, each animal harmed in violation of Criminal Law Article, Title 10, Subtitle 6, Annotated Code of Maryland, shall be considered a victim for the purposes of applying the multiple victims stacking rule; or</text> </paragraph> <paragraph num="(iii)"> <text>If the sentence for one of the offenses is statutorily required to run consecutive to the sentence for another offense, adding the upper limit of the guidelines range for the offense whose sentence is required to run consecutive to another offense to the upper limit of the guidelines range for the eligible other offense with the highest upper guidelines limit.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Single Criminal Event, Two or More Seriousness Category I or II Offenses.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall calculate the guidelines range for each offense.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall determine the overall guidelines range by adding the guidelines ranges for each offense in Seriousness Category I or II.</text> </paragraph> <paragraph num="(3)"> <text>Any combinations of sentences imposed, concurrent or consecutive, are within the guidelines when the net time to be served (that is, the initial sentence minus suspended sentence) falls within the overall guideline range.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Multiple Criminal Events, One Offense in Each Event.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall arrange the offenses in chronological order beginning with the one committed first.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall calculate the guideline range for each event’s offenses. With the possible exception of part A (relationship to the criminal justice system), the offender score calculated for the first event is the same for all succeeding events, as long as they are being sentenced at the same time.</text> </paragraph> <paragraph num="(3)"> <text>The individual completing the worksheet shall determine the overall guidelines range by adding the ranges for each event.</text> </paragraph> <paragraph num="(4)"> <text>Any combinations of sentences imposed, concurrent or consecutive, are within the guidelines when the net time to be served (that is, the initial sentence minus suspended sentence) falls within the overall guideline range.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Multiple Criminal Events With Multiple Offenses Within One or More Event or Events.</text> <paragraph num="(1)"> <text>The individual completing the worksheet shall arrange the events in chronological order, beginning with the offense or offenses committed in the first event.</text> </paragraph> <paragraph num="(2)"> <text>The individual completing the worksheet shall calculate the guidelines range for each offense in the first event.</text> </paragraph> <paragraph num="(3)"> <text>The individual completing the worksheet shall determine the overall guidelines range for the first criminal event as if there were only one event, but may not enter it on the worksheet.</text> </paragraph> <paragraph num="(4)"> <text>The individual completing the worksheet shall repeat the instruction of §D(2) and (3) of this regulation for each succeeding criminal event. With the possible exception of part A (relationship to the criminal justice system), the offender score calculated for the first event is the same for all succeeding events, as long as they are being sentenced at the same time.</text> </paragraph> <paragraph num="(5)"> <text>After determining the overall guidelines range for each criminal event, the individual completing the worksheet shall add the ranges to determine the overall guidelines range for the entire case.</text> </paragraph> <paragraph num="(6)"> <text>Any combinations of sentences imposed, concurrent or consecutive, are within the guidelines when the net time to be served (that is, the initial sentence minus suspended sentence) falls within the overall guideline range.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Presentence Detention."> <text>When a defendant has been incarcerated before sentencing, the judge shall indicate the detention under “Actual Sentence”. The judge shall indicate either the number of days credit for time served or the date on which the sentence is to begin.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Mandatory Sentences."> <paragraph num="A."> <text>Statutory Maximums. If the guidelines sentence range exceeds the statutory maximum for a given offense, the statutory maximum is the upper limit of the guidelines range.</text> </paragraph> <paragraph num="B."> <text>Mandatory Minimums. If the guidelines range is below the nonsuspendable mandatory minimum, that minimum is the lower limit of the guidelines range.</text> </paragraph> <paragraph num="C."> <text>First Degree Murder. The adjusted guidelines range for first degree murder is always a term of “life to life” and should replace the calculated guidelines range.</text> </paragraph> <paragraph num="D."> <text>Mandatory Consecutive Sentences. When there is a criminal event with multiple offenses, no more than one seriousness category I or II offense, and the sentence for one of the offenses is statutorily required to run consecutive to the sentence for another offense in the same criminal event, the person completing the sentencing guidelines worksheet shall add the upper limit of the guidelines range for the offense whose sentence is required to run consecutive to another offense to the upper limit of the guidelines range for the eligible other offense to obtain the upper limit of the overall guidelines range. Whenever the sentence for an offense is statutorily required to run consecutive to the sentence for more than one other offense in the criminal event, the person filling out the worksheet shall add the upper limit of the guidelines range for that offense to the upper limit of the guidelines range for the eligible offense with the highest upper guidelines limit. When there is a criminal event with multiple offenses with mandatory consecutive sentences, the upper limit of the overall guidelines range shall equal the sum of the upper limits of the one pair of offenses whose sum is the greatest.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Subsequent Offenses."> <paragraph num="A."> <text>In General. Enhanced punishment law for subsequent offenses takes precedence over guidelines ranges if not otherwise provided for in these regulations. If sentencing is pursuant to an enhanced punishment statute, the individual completing the worksheet shall specify the statute.</text> </paragraph> <paragraph num="B."> <text>Subsequent Drug Offense. When the statutory penalty for a drug offense is doubled under Criminal Law Article, §5-905, Annotated Code of Maryland, the guidelines range for that offense is also doubled. If the upper limit of the calculated guidelines range exceeds the doubled statutory maximum for the offense, the doubled statutory maximum is the upper limit of the guidelines range. Likewise, if the lower limit of the calculated guidelines range exceeds the doubled statutory maximum for the offense, the doubled statutory maximum is the lower and upper limit of the guidelines range.</text> </paragraph> <paragraph num="C."> <text>Subsequent Crime of Violence. When a non-suspendable mandatory minimum sentence for a crime of violence has been invoked pursuant to Criminal Law Article, §14-101, Annotated Code of Maryland, that mandatory minimum takes precedence over the lower limit and, possibly, the upper limit of the guidelines range, if the mandatory minimum exceeds the calculated lower or upper limit of the range. In this scenario, the lower limit of the range (and possibly the upper limit of the range) is replaced by the mandatory minimum.</text> </paragraph> <paragraph num="D."> <text>Subsequent Violation of Use of a Firearm or Assault Weapon in the Commission of a Felony or Crime of Violence. When an individual is being sentenced for multiple violations, including contemporaneous violations, of Criminal Law Article, §4-204, Annotated Code of Maryland (use of a firearm in the commission of a crime of violence or any felony) or Criminal Law Article, §4-306, Annotated Code of Maryland (use of an assault weapon in the commission of a felony or crime of violence), the guidelines for all but the first violation of each offense shall be calculated pursuant to Criminal Law Article, §4-204(c)(2), Annotated Code of Maryland, or Criminal Law Article, §4-306(b)(3), Annotated Code of Maryland, respectively, both of which provide penalties for subsequent violations.</text> </paragraph> <paragraph num="E."> <text>Other Subsequent Offenses. When an enhanced penalty for any other subsequent offense has been invoked, providing for an enhanced statutory maximum and/or mandatory minimum, the guidelines shall be calculated according to the rules set forth in these regulations with respect to the offense’s statutory maximum and/or any applicable mandatory minimum.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Maryland Sentencing Guidelines Manual."> <text>The individual completing the worksheet shall use the sentencing guidelines worksheet issued by the Commission on Criminal Sentencing Policy and may refer to the Maryland Sentencing Guidelines Manual for additional instruction and for case examples.</text> </regulation> <regulation prefix="Regulation" num=".17" heading="Sentences Deemed to Be Within Guidelines."> <text>Notwithstanding the actual guidelines range, the Commission on Criminal Sentencing Policy shall deem a sentence within the guidelines range if a judge:</text> <paragraph num="A."> <text>Approved an MSCCSP binding plea agreement and sentence agreed to by both the defendant and by the State;</text> </paragraph> <paragraph num="B."> <text>Sentenced a defendant to a period of pre-sentence incarceration time with no additional post-sentence incarceration time and the length of credited pre-sentence incarceration exceeds the upper guidelines range for the case; or</text> </paragraph> <paragraph num="C."> <text>Imposed a sentence of corrections options if the defendant’s:</text> <paragraph num="(1)"> <text>Initial sentence plus any suspended sentence falls within or above the overall guidelines range; and</text> </paragraph> <paragraph num="(2)"> <text>Current sentence or sentences and any pending charges do not include a violation of:</text> <paragraph num="(a)"> <text>A crime of violence under Criminal Law Article, §14-101, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Sexual child abuse under Criminal Law Article, §3-602, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Escape; or</text> </paragraph> <paragraph num="(d)"> <text>A law of the United States or of any other state or the District of Columbia similar to §C(2)(a)—(c) of this regulation.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Procedure Article, §§6-211 and 6-214, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 1, 2001 (28:8 Md. R. 763)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective December 24, 2001 (28:25 Md. R. 2193); January 19, 2004 (31:1 Md. R. 31)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective November 1, 2013 (40:21 Md. R. 1780); November 1, 2016 (43:21 Md. R. 1169); March 1, 2019 (46:3 Md. R. 108)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective December 24, 2001 (28:25 Md. R. 2193); January 19, 2004 (31:1 Md. R. 31); March 28, 2005 (32:6 Md. R. 636); August 14, 2006 (33:16 Md. R. 1365); January 1, 2008 (34:24 Md. R. 2159); September 1, 2009 (36:17 Md. R. 1313);May 1, 2010 (37:7 Md. R. 575); November 1, 2013 (40:21 Md. R. 1780); November 1, 2016 (43:21 Md. R. 1169); October 1, 2017 (44:18 Md. R. 866); July 1, 2018 (45:11 Md. R. 578); July 1, 2019 (46:11 Md. R. 516); July 1, 2020 (47:11 Md. R. 560); February 1, 2021 (48:1 Md. R. 10); April 1, 2021 (48:6 Md. R. 238); November 14, 2022 (49:23 Md. R. 997); February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective March 1, 2008 (35:4 Md. R. 515); November 1, 2013 (40:21 Md. R. 1780); February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 1, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03D amended effective February 1, 2023 (49:27 Md. R. 1111)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03E amended effective July 1, 2018 (45:11 Md. R. 578); February 1, 2020 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03F amended effective October 1, 2017 (44:18 Md. R. 866)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective July 1, 2025 (52:10 Md. R. 438)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective July 1, 2019 (46:11 Md. R. 516); February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended and I—M adopted effective July 7, 2003 (30:13 Md. R. 854); November 14, 2022 (49:23 Md. R. 997)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A, J amended effective November 1, 2010 (37:21 Md. R. 1437); November 1, 2012 (39:20 Md. R. 1307)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A, M amended effective March 1, 2008 (35:4 Md. R. 515)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07H amended effective January 19, 2004 (31:1 Md. R. 31); September 1, 2009 (36:17 Md. R. 1313); April 1, 2021 (48:6 Md. R. 238)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07N, O adopted effective January 19, 2004 (31:1 Md. R. 31)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07N amended effective March 28, 2005 (32:6 Md. R. 636)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B amended effective February 1, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective July 1, 2020 (47:11 Md. R. 560); February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A, B amended effective May 1, 2010 (37:7 Md. R. 575)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended effective December 24, 2001 (28:25 Md. R. 2193); January 19, 2004 (31:1 Md. R. 31); August 14, 2006 (33:16 Md. R. 1365); April 1, 2009 (36:6 Md. R. 492); February 1, 2015 (42:1 Md. R. 18); February 1, 2021 (48:1 Md. R. 10); October 1, 2021 (48:18 Md. R. 692); November 14, 2022 (49:23 Md. R. 997); April 1, 2023 (50:5 Md. R. 182); January 1, 2026 (52:25 Md. R. 1269)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10A amended effective July 1, 2008 (35:13 Md. R. 1181); May 1, 2010 (37:7 Md. R. 575)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10B amended effective January 19, 2004 (31:1 Md. R. 31); effective August 14, 2006 (33:16 Md. R. 1365); October 23, 2006 (33:21 Md. R. 1678); March 1, 2008 (35:4 Md. R. 515); July 1, 2008 (35:13 Md. R. 1181); September 8, 2008 (35:18 Md. R. 1601); November 1, 2012 (39:20 Md. R. 1307); February 1, 2015 (42:1 Md. R. 18); June 1, 2015 (42:10 Md. R. 685); November 1, 2016 (43:21 Md. R. 1169); October 1, 2017 (44:18 Md. R. 866); July 1, 2018 (45:11 Md. R. 578); November 5, 2018 (45:22 Md. R. 1027); November 4, 2019 (46:22 Md. R. 978); February 1, 2020 (46:26 Md. R. 1167); July 1, 2020 (47:11 Md. R. 560); February 1, 2021 (48:1 Md. R. 10); October 1, 2022 (49:18 Md. R. 819); April 1, 2023 (50:5 Md. R. 182); June 10, 2024 (51:11 Md. R. 580)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective February 1, 2024 (51:1 Md. R. 16)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D amended effective December 24, 2001 (28:25 Md. R. 2193); July 7, 2003 (30:13 Md. R. 854); January 1, 2008 (34:24 Md. R. 2159); July 1, 2016 (43:6 Md. R. 411); April 1, 2023 (50:5 Md. R. 182)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D, E amended effective July 1, 2022 (49:7 Md. R. 468)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12A amended effective January 19, 2004 (31:1 Md. R. 31); November 5, 2018 (45:22 Md. R. 1027); February 1, 2024 (50:17 Md. R. 769); November 1, 2024 (51:21 Md. R 927); October 27, 2025 (52:21 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12A, C amended effective June 10, 2024 (51:11 Md. R. 580)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12C, D amended effective February 1, 2020 (46:26 Md. R. 1167)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective March 1, 2008 (35:4 Md. R. 515); February 1, 2021 (48:1 Md. R. 10); February 1, 2024 (50:17 Md. R. 769)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14D amended effective November 1, 2024 (51:21 Md. R.927)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective January 19, 2004 (31:1 Md. R. 31); November 5, 2018 (45:22 Md. R. 1027); January 1, 2026 (52:25 Md. R. 1269)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17 adopted effective December 24, 2001 (28:25 Md. R. 2193)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17A amended effective April 1, 2021 (48:6 Md. R. 238)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17B amended effective January 19, 2004 (31:1 Md. R. 31)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17C amended effective June 1, 2011 (38:9 Md. R. 553); June 1, 2015 (42:10 Md. R. 685); October 1, 2017 (44:18 Md. R. 866)</annotation> </annotations> </chapter> <chapter num="02" heading="Criminal Offenses and Seriousness Categories"> <regulation prefix="Regulation" num=".01" heading="List of Offense Headings."> <text>A</text> <text>Abuse and Other Offensive Conduct</text> <text>Accessory After the Fact</text> <text>Alcoholic Beverages</text> <text>Animals, Crimes Against</text> <text>Arson and Burning</text> <text>Assault and Other Bodily Woundings</text> <text>Assault Weapons</text> <text>Assisted Suicide</text> <text>B</text> <text>Bad Check</text> <text>Boating Offenses</text> <text>Bribery</text> <text>Burglary and Related Crimes</text> <text>C</text> <text>Cannabis License or Registration</text> <text>CDS and Paraphernalia</text> <text>CDS — Registration</text> <text>Cemeteries and Funerary Objects, Crimes Involving</text> <text>Commercial Fraud, Other</text> <text>Conspiracy</text> <text>Consumer Protection Laws</text> <text>Counterfeiting</text> <text>Credit Card Crimes</text> <text>Crimes Against the Person, Generally</text> <text>Criminal Organizations</text> <text>D</text> <text>Deceased Human Body, Crimes Involving</text> <text>Destructive Devices</text> <text>Disturbing the Peace, Disorderly Conduct, and Related Crimes</text> <text>E</text> <text>Election Offenses</text> <text>Estates, Crimes Against</text> <text>Extortion and Other Threats</text> <text>F</text> <text>False Advertising and Related Crimes</text> <text>False Statements, Other</text> <text>Forensic Genealogy, Crimes Involving</text> <text>Fraud, Financial Crimes Against Vulnerable Adults</text> <text>Fraud, Miscellaneous</text> <text>Fraud, Telecommunication Service Providers</text> <text>G</text> <text>Gambling, General Provisions</text> <text>H</text> <text>Handguns — In General</text> <text>Harboring, Escape, and Contraband</text> <text>Hate Crimes</text> <text>Home Improvement, Crimes Involving</text> <text>Human Relations, Crimes Involving</text> <text>Human Trafficking</text> <text>I</text> <text>Identity Fraud</text> <text>Influencing or Intimidating Judicial Process</text> <text>Interference with or Misuse of Government Operations</text> <text>K</text> <text>Kidnapping and Related Crimes</text> <text>L</text> <text>Labor Trafficking</text> <text>Lotteries</text> <text>M</text> <text>Machine Guns</text> <text>Malicious Destruction and Related Crimes</text> <text>Manslaughter and Related Crimes</text> <text>Marriage, Crimes Against</text> <text>Maryland Credit Services Businesses Act</text> <text>Motor Vehicle Offenses</text> <text>Murder</text> <text>N</text> <text>Nudity and Related Sexual Displays</text> <text>O</text> <text>Obscene Matter</text> <text>P</text> <text>Perjury</text> <text>Prescription Drugs and Other Substances</text> <text>Pretrial Release, Crimes Involving</text> <text>Prostitution and Related Crimes</text> <text>Protected Individuals, Protected Information</text> <text>Public Fraud</text> <text>Public Health and Safety, Crimes Against</text> <text>R</text> <text>Railroads, Crimes Involving</text> <text>Robbery</text> <text>S</text> <text>Sabotage and Related Crimes</text> <text>School Security</text> <text>Securities Fraud and Related Crimes</text> <text>Sexual Crimes</text> <text>Stalking and Harassment</text> <text>Statewide DNA Data Base System, Crimes Involving</text> <text>Stored Wire and Electronic Communications Access, Crimes Involving</text> <text>Surveillance & Other Crimes Against Privacy</text> <text>T</text> <text>Telecommunications and Electronics, Crimes Involving</text> <text>Theft, Crimes Involving</text> <text>Threat of Mass Violence</text> <text>Trespass</text> <text>U</text> <text>Unlawful Use of Goods</text> <text>W</text> <text>Weapons Crimes-In General</text> <text>Workers’ Compensation, Crimes Involving</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Seriousness Categories."> <text>Offense Literal CJISCode Source Felony or Misd. Max Term Min Term Offense Type Seriousness Category Fine 1 Abuse and Other Offensive ConductChild Abuse—physical, 1st degree with death, victim at least 13 years old 1-1108 CR, §3-601(b)(2)(ii) Felony 40Y ♦ Person II 1-1 Abuse and Other Offensive ConductChild Abuse—physical, 1st degree with death, victim younger than 13 years old 1-1109 CR, §3-601(b)(2)(iii) Felony LIFE ♦ Person I 1-2 Abuse and Other Offensive ConductChild Abuse—physical, previous conviction for child abuse CR, §3-601(c)(1) Felony 25Y ♦♦ Person II 1-3 Abuse and Other Offensive ConductChild Abuse—physical, with death, previous conviction for child abuse CR, §3-601(c)(2) Felony LIFE ♦ Person I 2 Abuse and Other Offensive ConductChild Abuse—physical, 1st degree 1-0334 CR, §3-601(b)(2)(i) Felony 25Y ♦ Person II 2-1 Abuse and Other Offensive ConductChild Abuse—physical, 2nd degree 1-01731-3802 CR, §3-601(d) Felony 15Y Person IV 3 Abuse and Other Offensive ConductChild Abuse—sexual 1-03221-0922 CR, §3-602(b) Felony 25Y ♦♦ Person II 4 Abuse and Other Offensive ConductAbuse, neglect of vulnerable adult by custodian, 1st degree 1-11382-1138 CR, §3-604 Felony 10Y Person IV $10,000 4-1 Abuse and Other Offensive ConductAbuse, neglect of vulnerable adult by custodian, 2nd degree 1-04662-0350 CR, §3-605 Misd. 5Y Person V $5,000 4-2 Abuse and Other Offensive ConductChild neglect 1-1614 CR, §3-602.1 Misd. 5Y Person VI $5,000 4-3 Abuse and Other Offensive ConductKnowingly fail to provide the required notice or make the required written report of suspected abuse or neglect of a child 1-1725 CR, §3-602.2 Misd. 3Y Person VI $10,000 4-4 Abuse and Other Offensive ConductCommit crime of violence in the presence of a minor CR, §3-601.1 Misd. 5Y Person VI 4-5 Abuse and Other Offensive ConductCommit a crime of violence against another person when the person knows or believes that the other person is pregnant 1-1733 CR, §14-104 Felony 10Y Person IV 5 Abuse and Other Offensive Conduct Sell, barter, trade, etc., a child for money, property, etc. 1-1719 CR, §3-603 Felony 5Y Person V $10,000 5-1 Abuse and Other Offensive Conduct Prevent or interfere with the making of a report of suspected child abuse or neglect 1-0734 FL, §5-705.2(penalty) Misd. 5Y Person V $10,000 5-2 Abuse and Other Offensive Conduct Confine unattended child 1-0005 FL, §5-801 Misd. 30D Person VII $500 6 Abuse and Other Offensive Conduct Contributing to a child being delinquent or in need of supervision 2-0238 CJ, §3-8A-30 Misd. 3Y Person VI $2,500 6-1 Abuse and Other Offensive Conduct Contributing to a child in need of assistance 1-0844 CJ, §3-828 Misd. 3Y Person VI $2,500 6-2 Abuse and Other Offensive Conduct Failure to report disappearance of a minor 1-1002 CR, §3-608 Misd. 3Y Person VI 6-3 Abuse and Other Offensive Conduct Failure to report death of a minor 1-1003 CR, §3-609 Misd. 3Y Person VI 7 Abuse and Other Offensive ConductInterfering with rights of developmentally disabled individual 1-1608 HG, §7-1102 Misd. 2Y Person VII $5,000 8 Vacant 8-1 Accessory after the FactAccessory after the fact to 1st degree mu362rder 1-0774 CR, §1-301(b)(1) Felony 10Y Person V 8-2 Accessory after the FactAccessory after the fact to 2nd degree murder 1-0776 CR, §1-301(b)(2) Felony 10Y Person V 9 Accessory after the FactAccessory after the fact to a felony 1-1480 CR, §1-301(a) Felony Lesser of 5Y or max. term penalty for the underlying offense Person,Drug,Property Lesser of V or the category for the underlying offense 9-1 Alcoholic BeveragesIntoxicated and endanger safety of person or property; or intoxicated or drink alcoholic beverage in public place and cause public disturbance 1-16611-1662 AB, §6-320 Misd. 90D Person VII $100 9-2 Alcoholic BeveragesCounty-specific provisions concerning giving, serving, dispensing, keeping, or allowing alcoholic beverages without license; bottle clubs; places of public entertainment-Anne Arundel, Baltimore, Calvert, Caroline, Charles, Dorchester, Frederick, Kent, Prince George’s, Queen Anne’s, Somerset, Talbot, Wicomico, or Worcester Counties, or Baltimore City AB, §11-2502AB, §12-2501AB, §13-2501AB, §14-2501AB, §15-2501AB, §18-2501AB, §19-2501AB, §20-2501AB, §24-2501AB, §26-2501AB, §27-2501AB, §29-2501AB, §30-2501AB, §32-2501AB, §33-2501 Misd. 2Y Property VII $10,000 9-3 Alcoholic BeveragesSelling or providing alcoholic beverages to an individual under the age of 21 in Washington County, 3rd or subsequent offense AB, §31-2702 Misd. 2Y Property VII $1,000 9-4 Animals, Crimes AgainstAnimal cruelty 1-05001-05011-0503 CR, §10-604 Misd. 90D Property VII $1,000 9-5 Animals, Crimes AgainstAbuse or neglect of an animal that results in the death of or need to euthanize a domestic animal or livestock 1-0316 CR, §10-604.1 Misd. 1Y Property VII $5,000 9-6 Animals, Crimes AgainstAggravated animal cruelty 1-05051-0508 CR, §10-606 Felony 3Y Property VI $5,000 10 Animals, Crimes Against Use dog in dogfight or for baiting; arrange dogfight; possess, own, etc. dog for dogfight or baiting; allow dogfight or baiting on premises 1-05061-0510 1-05111-0652 CR, §10-607 Felony 3Y Property VI $5,000 11 Animals, Crimes Against Use or allow use of bird for cockfight; possess implement of cockfighting; arrange or conduct cockfight; possess bird for cockfight; allow premises to be used for cockfight 1-05071-05121-05131-05141-0515 CR, §10-608 Felony 3Y Property VI $5,000 11-1 Animals, Crimes AgainstAttending a dogfight or cockfight 1-0597 1-0598 CR, §10-605 Misd. 1Y Property VII $2,500 12 Animals, Crimes AgainstInterfering with an equine 1-1676 1-1677 CR, §10-620 Misd. 1Y Property VII $1,000 12-1 Animals, Crimes Against Hunting via an internet connection NR, §10-426(c) Misd. 1Y Property VII $10,000 12-2 Animals, Crimes AgainstUnlawful capture of over $20,000 worth of striped bass 1-1076 CR, §10-626(c)(2) Misd. 1Y Property VII $1,000 12-3 Animals, Crimes AgainstWillfully and maliciously interfere with the use of a service animal 1-1076 CR, §10-626(c)(2) Misd. 1Y Property VII $4,000 12-4 Animals, Crimes AgainstWillfully and maliciously kill or injure a service animal 1-1074 CR, §10-626(c)(1) Misd. 2Y Property VI $2,500 13 Arson and Burning Arson—dwelling or occupied structure (arson 1st degree) 1-6500 CR, §6-102(a) Felony 30Y ♦ Person III $50,000 14 Arson and BurningArson—Other structure (arson, 2nd degree) 1-6501 CR, §6-103(a) Felony 20Y Property IV $30,000 14-1 Arson and BurningMalicious or fraudulent burning resulting in the death of or serious physical injury to a firefighter 1-2227 CR, §6-112 Felony 10Y Person IV 15 Arson and BurningArson—threat of 1-6505 CR, §6-107(a) Misd. 10Y Property V $10,000 16 Arson and BurningBurning personal property of another, $1,000 or more (malicious burning 1st degree) 1-6502 CR, §6-104(b) Felony 5Y Property VI $5,000 17 Arson and Burning Burning property with intent to defraud 1-6504 CR, §6-106(a) Misd. 5Y Property VI $5,000 18 Arson and BurningBurn personal property of another less than $1,000 (malicious burning, 2nd degree) 1-6503 CR, §6-105(b) Misd. 18M Property VII $500 19 Arson and BurningArson—trash bin 2-2003 CR, §6-108(a) Misd. 30D Property VII $500 20 Assault and Other Bodily WoundingsPoisoning—attempted 2-0999 CR, §3-213 Felony 10Y 2Y Person II 21 Assault and Other Bodily WoundingsPoisoning—contaminating water, food, etc. 1-03193-0999 CR, §3-214 Felony 20Y Person II 22 Assault and other Bodily WoundingsAssault, 1st degree 1-1420 CR, §3-202 Felony 25Y ♦ Person III 23 Vacant 24 Assault and Other Bodily WoundingsAssault, 2nd degree 1-1415 CR, §3-203 Misd. 10Y Person V $2,500 25 Assault and Other Bodily WoundingsFemale genital mutilation—perform or consent to 1-09651-0970 HG, §20-601HG, §20-603 Felony 5Y Person V $5,000 25-1 Assault and Other Bodily WoundingsWillfully expose others to infectious disease 1-0285 HG, §18-601 Misd. 1Y Person VII $500 25-2 Vacant 25-3 Vacant 25-4 Assault and Other Bodily WoundingsKnowingly and willfully causing another to ingest bodily fluid 1-0321 CR, §3-215 Misd. 10Y Person V $2,500 25-5 Assault and Other Bodily WoundingsFailure to comply with or violation of protective order, 1st offense 2-0254 FL, §4-509(a)(1) Misd. 90D Person VII $1,000 25-6 Assault and Other Bodily WoundingsFailure to comply with or violation of protective order, subsequent 2-0354 FL, §4-509(a)(2) Misd. 1Y Person VII $2,500 25-7 Assault and Other Bodily WoundingsFailure to comply with or violation of peace order, 1st offense 2-0105 CJ, §3-1508(a)(1) Misd. 90D Person VII $1,000 25-8 Assault and Other Bodily WoundingsFailure to comply with or violation of peace order, subsequent 2-0105 CJ, §3-1508(a)(2) Misd. 1Y Person VII $2,500 25-9 Assault and Other Bodily WoundingsFailure to comply with an extreme risk protective order, 1st offense 1-1446 PS, §5-610(a)(1) Misd. 90D Person VII $1,000 25-10 Assault and Other Bodily WoundingsFailure to comply with an extreme risk protective order, subsequent 1-1447 PS, §5-610(a)(2) Misd. 1Y Person VII $2,500 26 Assault and Other Bodily WoundingsReckless endangerment 1-1425 1-1430 (from car) CR, §3-204(a) Misd. 5Y Person V $5,000 26-1 Assault and Other Bodily WoundingsCriminally negligent life-threatening injury by motor vehicle or vessel 1-1094 CR, §3-212.1(e) Misd. 1Y Person VII $5,000 27 Assault and Other Bodily WoundingsCause a life threatening injury by motor vehicle or vessel while under the influence of alcohol, 1st offense 1-0765 CR, §3-211(c)(3)(i) Misd. 3Y Person VI $5,000 27-1 Assault and Other Bodily WoundingsCause a life threatening injury by motor vehicle or vessel while under the influence of alcohol, subsequent CR, §3-211(c)(3)(ii) Misd. 5Y Person V $10,000 28 Assault and Other Bodily WoundingsCause a life threatening injury by motor vehicle or vessel while impaired by alcohol, 1st offense 1-0770 CR, §3-211(d)(3)(i) Misd. 2Y Person VI $3,000 28-1 Assault and Other Bodily WoundingsCause a life threatening injury by motor vehicle or vessel while impaired by alcohol, subsequent CR, §3-211(d)(3)(ii) Misd. 5Y Person V $10,000 29 Assault and Other Bodily WoundingsCause a life-threatening injury by motor vehicle or vessel while impaired by drugs, 1st offense 1-0775 CR, §3-211(e)(3)(i) Misd. 2Y Person VI $3,000 29-1 Assault and Other Bodily WoundingsCause a life-threatening injury by motor vehicle or vessel while impaired by drugs, subsequent CR, §3-211(e)(3)(ii) Misd. 5Y Person V $10,000 29-2 Assault and Other Bodily WoundingsCause a life-threatening injury by motor vehicle or vessel while impaired by a controlled dangerous substance, 1st offense 1-1640 CR, §3-211(f)(4)(i) Misd. 3Y Person VI $5,000 30 Assault and Other Bodily WoundingsCause a life-threatening injury by motor vehicle or vessel while impaired by a controlled dangerous substance, subsequent CR, §3-211(f)(4)(ii) Misd. 5Y Person V $10,000 30-1 Assault and Other Bodily WoundingsAssault on law enforcement officer, parole or probation agent, or first responder, 2nd degree 1-1416 CR, §3-203(c) Felony 10Y Person V $5,000 30-2 Assault and Other Bodily WoundingsAssault by incarcerated individual on employee or other incarcerated individual of State, local, or sheriff's office correctional facility, 1st degree 1-1435 CR, §3-210 Felony 25Y ♦ Person III 30-3 Assault and Other Bodily WoundingsAssault by incarcerated individual on employee or other incarcerated individual of State, local, or sheriff's office correctional facility, 2nd degree 1-1440 CR, §3-210 Misd. 10Y Person V $2,500 30-4 Assault and Other Bodily WoundingsIncarcerated individual causing correctional employee or sheriff to come in contact with bodily fluid 1-0222 CR, §3-205 Misd. 10Y Person V $2,500 30-5 Assault and Other Bodily WoundingsIntentional violation by a police officer of use of force standards resulting in serious physical injury or death to a person 1-1095 PS, §3-524(i)(2) Misd. 10Y Person IV 31 Assault WeaponsUse of assault weapon, rapid fire activator, or magazine with a capacity of more than 10 rounds in the commission of a felony or crime of violence, subsequent 3-5260 CR, §4-306(b)(3) Misd. 20Y 10Y Person III 32 Assault WeaponsUse of assault weapon, rapid fire activator, or magazine with a capacity of more than 10 rounds in the commission of a felony or crime of violence, 1st offense 3-5260 CR, §4-306(b)(2) Misd. 20Y MM*= 5Y Person III 33 Assault WeaponsUnlawfully possess, sell, offer to sell, etc., an assault weapon; manufacture, sell, offer to sell, etc., a detachable magazine with a capacity of more than 10 rounds; manufacture, possess, sell, etc., a rapid fire activator 3-5250 3-52551-1448 CR, §4-303(a) CR, §4-305(b) CR, §4-305.1(a)CR, §4-306(a) (penalty) Misd. 3Y Person VI $5,000 34 Assisted SuicideCoercion; provide means; participation 2-0175 2-0180 2-0185 CR, §3-102 CR, §3-104 Felony 1Y Person VII $10,000 35 Bad CheckFelony bad check, $100,000 or greater 1-11641-11681-11721-11761-1180 CR, §8-103 CR, §8-106(a)(3) Felony 20Y Property III $25,000 35-1 Bad CheckFelony bad check, at least $25,000 but less than $100,000 1-11651-11691-11731-11771-1181 CR, §8-103 CR, §8-106(a)(2) Felony 10Y Property V $15,000 35-2 Bad CheckFelony bad check, at least $1,500 but less than $25,000 1-11661-11701-11741-11781-1182 CR, §8-103 CR, §8-106(a)(1) Felony 5Y Property VI $10,000 35-3 Bad CheckMultiple bad checks within a 30-day period, each at least $1,500 but less than $25,000 and totaling at least $1,500 but less than $25,000 1-11621-1163 CR, §8-103 CR, §8-106(b) Felony 5Y Property VI $10,000 36 Bad Check Misdemeanor bad check, at least $100 but less than $1,500 1-11671-11711-11751-11791-1184 CR, §8-103 CR, §8-106(c) Misd. 1Y Property VII $500 36-1 Bad CheckMisdemeanor bad check, less than $100 1-11411-11421-11431-11441-1240 CR, §8-103CR, §8-106(d) Misd. 90D Property VII $500 36-2 Boating OffensesOperate a vessel while under the influence of alcohol, 1st offense 6-8000 NR, §8-738(e)(1)(i)(1) Misd. 1Y Person VII $1,000 36-3 Boating OffensesOperate a vessel while under the influence of alcohol, 2nd offense 6-8000 NR, §8-738(e)(1)(i)(2) Misd. 2Y Person VI $2,000 36-4 Boating OffensesOperate a vessel while under the influence of alcohol, 3rd or subsequent offense 6-8000 NR, §8-738(e)(1)(i)(3) Misd. 3Y Person V $3,000 36-5 Boating OffensesOperate a vessel while prohibited from operating a vessel under NR, §8-738(e)(3)(i), 1st offense NR, §8-738.3(c)(1) Misd. 1Y Property VII $1,000 36-6 Boating OffensesOperate a vessel while prohibited from operating a vessel under NR, §8-738(e)(3)(i), 2nd offense NR, §8-738.3(c)(2) Misd. 2Y Property VI $2,000 36-7 Boating OffensesOperate a vessel while prohibited from operating a vessel under NR, §8-738(e)(3)(i), 3rd or subsequent offense NR, §8-738.3(c)(3) Misd. 3Y Property V $3,000 36-8 Boating OffensesFailure to render all practical and necessary assistance to persons affected by a vessel collision, accident, or other casualty; failure to provide operator’s information NR, §8-724(b) Misd. 2M Person VII $500 36-9 Boating OffensesFailure to immediately stop a vessel involved in a collision, accident, or other casualty that results in bodily injury to another person NR, §8-724(a)(3)(ii)(1) Misd. 1Y Person VII $3,000 36-10 Boating OffensesFailure to immediately stop a vessel involved in a collision, accident, or other casualty that results in the death of another person NR, §8-724(a)(3)(ii)(2) Misd. 5Y Person V $5,000 36-11 Boating OffensesFailure to immediately stop a vessel involved in a collision, accident, or other casualty when the person knew or reasonably should have known that serious bodily injury to another person might occur and serious bodily injury actually occurred NR, §8-724(a)(3)(iii)(1) Felony 5Y Person V $5,000 36-12 Boating OffensesFailure to immediately stop a vessel involved in a collision, accident, or other casualty when the person knew or reasonably should have known that the death of another person might occur and death actually occurred NR, §8-724(3)(iii)(2) Felony 10Y Person IV $10,000 37 BriberyBribery to or by public officer 1-1678 1-1683 CR, §9-201 Misd. 12Y 2Y Property V $5,000—$25,000 38 Bribery Bribe juror or acceptance of bribe by juror 2-5100 2-5110 CR, §9-202 Misd. 6Y 18M Property VI 39 Bribery Person or persons who bribe or attempt to bribe a participant, etc., in athletic contest 1-5100 CR, §9-204 Misd. 3Y 6M Property VI $100—$5,000 40 BriberyBribery—athletic contestant accepts bribe 2-5103 CR, §9-205 Misd. 3Y Property VII $5,000 41 Burglary and Related Crimes Burglary, 1st degree 2-3000 CR, §6-202(c) Felony 20Y ♦ Property III 41-1 Burglary and Related Crimes Home invasion 1-1338 CR, §6-202(d) Felony 25Y ♦ Person III 42 Burglary and Related CrimesBurglary, with explosives 2-3060 CR, §6-207 Felony 20Y ♦ Property III 43 Burglary and Related CrimesBurglary, 2nd degree 2-3010 CR, §6-203(c)(1) Felony 15Y ♦ Property IV 44 Burglary and Related CrimesBurglary, 2nd degree, steal or take firearm 2-3015 CR,§6-203(c)(2) Felony 20Y ♦ Property IV $10,000 45 Burglary and Related Crimes Burglary, 3rd degree 2-3020 CR, §6-204 Felony 10Y ♦ Property IV 46 Burglary and Related Crimes Breaking and entering —research facility 2-3070 CR, §6-208 Felony 5Y Property VI $5,000 47 Burglary and Related Crimes Breaking and entering—motor vehicle (rogue and vagabond) 2-3080 2-3090 CR, §6-206 Misd. 3Y Property VII 48 Burglary and Related CrimesBurglary, 4th degree 1-11302-30302-30402-30452-3050 CR, §6-205 Misd. 3Y Property VII 48-1 Cannabis License or Registration Use of straw ownership to apply for or hold a cannabis license or registration AB, §36-1103 Misd. 1Y Property VII $2,500 48-2 CDS and ParaphernaliaManufacture, distribute, dispense, or possess certain Schedule I through V non-narcotics, large amounts as specified in CR, §5-612, non-cannabis 1-08791-08801-0881 CR, §5-612(c)(1) Felony 5Y MM*=5Y Drug IV $100,000 48-3 CDS and ParaphernaliaManufacture, distribute, dispense, or possess certain Schedule I or II controlled dangerous substances, large amounts as specified in CR, §5-612 1-08791-08801-0881 CR, §5-612(c)(1) Felony 20Y MM*=5Y Drug IIIB $100,000 48-4 CDS and ParaphernaliaManufacture, distribute, dispense, or possess 50 pounds or more of cannabis 1-2216 1-2217 1-2218 CR, §5-612(c)(2) Misd. 10Y Drug IV $50,000 49 CDS and ParaphernaliaDrug kingpin—non-cannabis 1-0488 CR, §5-613(b)(1) Felony 40Y MM*= 20Y Drug II $1,000,000 49-1 CDS and ParaphernaliaDrug kingpin—cannabis 1-2219 CR, §5-613(b)(2) Felony 20Y Drug IIIB $100,000 50 CDS and ParaphernaliaControlled dangerous substance importation into State, non-cannabis 3-3550 CR, §5-614(a) Felony 25Y Drug IIIC $50,000 50-1 CDS and ParaphernaliaControlled dangerous substance importation into State, cannabis (45 kilograms or more) 3-3550 CR, §5-614(a) Felony 25Y Drug IIIA $50,000 51 CDS and ParaphernaliaBringing minor into State to violate drug laws 1-0489 CR, §5-628(a)(2) Felony 20Y Drug IIIB $20,000 52 CDS and ParaphernaliaUnlawfully distribute, PWID, manufacture, possess production equipment, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—narcotics and hallucinogenics (e.g., PCP, heroin, cocaine, LSD, oxycodone, fentanyl, and methadone) 1-11181-11191-11201-11211-11221-11231-11241-11251-11261-11271-11281-11291-11311-11321-11331-15561-15571-1558 CR, §5-602(a)CR, §5-603(a)CR, §5-604CR, §5-605CR, §5-606CR, §5-608(a)CR, §5-609(a)(penalty) Felony 20Y Drug IIIB $15,000 53 CDS and ParaphernaliaUnlawfully distribute, PWID, manufacture, possess production equipment, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—narcotics and hallucinogenics (e.g., PCP, heroin, cocaine, LSD, oxycodone, fentanyl, and methadone), subsequent CR, §5-602(a)CR, §5-603(a)CR, §5-604CR, §5-605CR, §5-606 CR, §5-608(b) CR, §5-609(b) CR, §5-608(c) CR, §5-609(c) CR, §5-608(d) CR, §5-609(d) (penalty) Felony 20Y25Y40Y Drug IIIBIIIBIIIC $15,000$25,000$25,000 53-1 CDS and ParaphernaliaKnowingly violated CR, §5-602 with a mixture of heroin and fentanyl or any analogue of fentanyl; or fentanyl or any analogue of fentanyl 1-0908 CR, §5-608.1 Felony 10Y Drug IIIC 54 Vacant 54-1 CDS and ParaphernaliaUnlawfully distribute, PWID, manufacture, possess production equipment, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—MDMA (methylenedioxymethamphetamine), 750 grams or more 1-11271-11281-11291-11311-11321-11331-15561-15571-1558 CR, §5-602(a)CR, §5-603(a)CR, §5-604CR, §5-605CR, §5-606CR, §5-609(a)(penalty) Felony 20Y Drug IIIA $15,000 54-2 CDS and ParaphernaliaUnlawfully distribute, PWID, manufacture, possess production equipment, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—MDMA (methylenedioxymethamphetamine), 750 grams or more, subsequent CR, §5-602(a)CR, §5-603(a)CR, §5-604CR, §5-605CR, §5-606 CR, §5-609(b)CR, §5-609(c)CR, §5-609(d) Felony 20Y25Y40Y Drug IIIAIIIAIIIB $15,000$25,000$25,000 55 CDS and ParaphernaliaManufacture, distribute, or dispense controlled dangerous substances near schools or on school vehicles, 1st offense 1-0483 1-0484 CR, §5-627 Felony 20Y Drug IIIB $20,000 55-1 CDS and ParaphernaliaManufacture, distribute, or dispense controlled dangerous substances near schools or on school vehicles, subsequent 1-0483 1-0484 CR, §5-627 Felony 40Y MM*= 5Y Drug IIIC $40,000 56 CDS and ParaphernaliaUsing minors for manufacture, delivery, or distribution of controlled dangerous substances 1-5409 CR, §5-628(a)(1) Felony 20Y Drug IIIB $20,000 57 CDS and ParaphernaliaControlled dangerous substance importation into State, cannabis (5 to less than 45 kilos) 1-0730 CR, §5-614(b) Felony 10Y Drug IV $10,000 58 CDS and ParaphernaliaDistribution—distribution of non-controlled substance as controlled dangerous substance 1-0246 CR, §5-617 Felony 5Y Drug IV $15,000 58-1 CDS and ParaphernaliaDistribute, possess, manufacture, or use cannabis diverted from a qualifying patient, caregiver, licensed grower, or licensed dispensary HG, §13-3313 Felony 5Y Drug IV $10,000 58-2 CDS and ParaphernaliaUnlawfully PWID, manufacture, possess production equipment—cannabis 1-16921-16931-1694 CR, §5-602(b)(1)CR, §5-603(b) CR, §5-607(a)(2) (penalty) Misd. 3Y Drug V $5,000 58-3 CDS and ParaphernaliaUnlawfully distribute, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—cannabis 1-0234 1-0235 1-0236 1-0238 1-0239 1-0728 2-3550 CR, §5-602(a)(1) CR, §5-604 CR, §5-605 CR, §5-606 CR, §5-607(a)(1) (penalty) Felony 10Y Drug IV $10,000 59 CDS and ParaphernaliaUnlawfully distribute, PWID, manufacture, possess production equipment, distribute counterfeit, PWID counterfeit, possess counterfeiting equipment, keep common nuisance, possess false prescription—Schedules I through V non-narcotics (e.g., amphetamines, methamphetamine, synthetic marijuana, diazepam, MDMA under 750 grams, and Valium) and buprenorphine 1-0233 1-0234 1-0235 1-0236 1-0237 1-0238 1-0239 1-0660 1-07282-3550 CR, §5-602(a) CR, §5-603(a) CR, §5-604 CR, §5-605 CR, §5-606 CR, §5-607(a)(1) (penalty) Felony 5Y Drug IV $15,000 60 CDS and Paraphernalia Cannabis cultivation in violation of requirements provided in CR, §5-601.2 1-1734 CR, §5-601.2 Misd. 3Y Drug V $5,000 61 Vacant 62 CDS and ParaphernaliaParaphernalia—deliver drug paraphernalia to minor by adult who is 3 or more years older 7-3550 CR, §5-619(d)(4) Misd. 8Y Drug IV $15,000 63 CDS and ParaphernaliaReceive, acquire, give, sell, transfer, etc., proceeds knowing that the proceeds are derived from a CDS offense, 1st offense 1-06731-0675 CR, §5-623(c)(1) Felony 5Y Drug V Greater of $250,000 or twice the value of the proceeds 64 CDS and Paraphernalia Receive, acquire, give, sell, transfer, etc., proceeds knowing that the proceeds are derived from a CDS offense, subsequent 1-06731-0675 CR, §5-623(c)(2) Felony 10Y Drug IV Greater of $500,000 or 5 times the value of the proceeds 65 CDS and ParaphernaliaParaphernalia—distribute controlled paraphernalia—non-cannabis, subsequent 1-22141-2215 CR, §5-620(d)(2) Misd. 1Y Drug VII $1,000 66 CDS and ParaphernaliaParaphernalia—deliver or sell, or manufacture or possess with intent to deliver or sell, drug paraphernalia, subsequent 1-2213 CR, §5-619(d)(2)(ii) Misd. 1Y Drug VII $1,000 66-1 CDS and ParaphernaliaParaphernalia—deliver or sell, or manufacture or possess with intent to deliver or sell, drug paraphernalia, previous conviction for deliver drug paraphernalia to minor by adult who is 3 or more years older CR, §5-619(d)(3) Misd. 2Y Drug VII $2,000 67 CDS and ParaphernaliaParaphernalia—use or possess with intent to use drug paraphernalia—non-cannabis, subsequent 1-2212 CR, §5-619(c)(2)(ii) Misd. 1Y Drug VII $1,000 68 CDS and ParaphernaliaParaphernalia—unlawfully advertise with the purpose to promote the sale and delivery of drug paraphernalia, subsequent 9-0092 CR, §5-619(e)(2)(ii) Misd. 2Y Drug VII $2,000 69 CDS and ParaphernaliaPossession—unlawful possession or administering to another, obtaining, etc., substance by fraud, forgery, misrepresentation, etc.; affixing forged labels; altering etc., label—cannabis 1-15591-15601-15611-15621-15631-1564 CR, §5-601(c)(2)(i) Misd. 6M Drug VII $1,000 69-1 CDS and ParaphernaliaPossession—unlawful possession or administering to another; obtaining, etc., substance by fraud, forgery, misrepresentation, etc.; affixing forged labels; altering etc., label—non-cannabis, 1st offense 1-11101-11111-11121-11131-11141-11151-1117 CR, §5-601(c)(1)(i) Misd. 1Y Drug VII $5,000 69-2 CDS and ParaphernaliaPossession—unlawful possession or administering to another; obtaining, etc., substance by fraud, forgery, misrepresentation, etc.; affixing forged labels; altering etc., label—non-cannabis, 2nd or 3rd offense CR, §5-601(c)(1)(ii) Misd. 18M Drug VII $5,000 69-3 CDS and ParaphernaliaPossession—unlawful possession or administering to another; obtaining, etc., substance by fraud, forgery, misrepresentation, etc.; affixing forged labels; altering etc., label—non-cannabis, 4th or subsequent offense CR, §5-601(c)(1)(iii) Misd. 2Y Drug VII $5,000 70 CDS and ParaphernaliaPossession—unsolicited mailing of certain drugs, controlled dangerous substances, medicines, etc. 1-0025 CR, §5-703 Misd. 6M Drug VII $500 71 CDS and ParaphernaliaPossession/purchase of non-CDS believed to be a controlled dangerous substance 1-0691 CR, §5-618(a) Misd. 1Y Drug VII $500 71-1 CDS and Paraphernalia Distribute, sell, expose for sale, or advertise for sale a tianeptine product HG, §21-2D-02 Misd. 90D Drug VII $5,000 71-2 CDS and Paraphernalia Preparation, distribution, or sale of kratom products to an individual under 21; without proper label disclosures; or that contain certain other substances HG, §21-2E-02(f) Misd. 90D Drug VII $5,000 71-3 CDS and Paraphernalia Prepare, distribute, sell, or expose for sale phenibut product without required disclosures; not recognized by the FDA; adulterated or contaminated with a dangerous substance; or to an individual under the age of 21 years HG, §21-2F-02(f) Misd. 90D Drug VII $5,000 72 CDS—RegistrationCDS—deliver as a registrant a CDS of Schedule I/II without an order form 9-3550 CR, §5-904(a) Felony 10Y Drug IV $100,000 73 CDS—Registration CDS registration—use fictitious, etc. registration number; distribute without an order form 1-0263 CR, §5-903(a) Felony 10Y Drug IV $100,000 74 CDS—RegistrationManufacture CDS which was not authorized by registration 8-3550 CR, §5-902(b) Misd. 2Y Drug VII $100,000 75 CDS—RegistrationCDS Registration—unlawful acts 1-0258 1-0259 1-0260 1-0261 1-02621-14451-3550 CR, §5-902(a) Misd. 2Y Drug VII $100,000 76 Cemeteries and Funerary Objects, Crimes InvolvingRemoval or attempted removal of human remains from a burial site 3-3932 CR, §10-402(a) Misd. 5Y Property VI $10,000 77 Cemeteries and Funerary Objects, Crimes InvolvingDestruction of funerary objects/structures placed in a cemetery 3-3942 CR, §10-404(a) Misd. 5Y Property VI $10,000 78 Cemeteries and Funerary Objects, Crimes InvolvingDestruction of graveyard plants 3-3946 CR, §10-404(b) Misd. 2Y Property VII $500 79 Cemeteries and Funerary Objects, Crimes InvolvingDisorderly conduct in cemetery 3-3947 CR, §10-404(c) Misd. 2Y Property VII $500 79-1 Cemeteries and Funerary Objects,Crimes InvolvingCommitting, or aiding or abetting another to commit, certain destructive acts to human remains with the intent to conceal a crime 1-2225 1-2226 CR, §10-405 Felony 5Y Property VI 80 Commercial Fraud, Other False statement or false entry in records with the intent to deceive a person authorized to examine the affairs of the bank, trust company, or savings bank 1-5581 FI, §5-803(b) Felony 10Y Property V $5,000 80-1 Commercial Fraud, Other Providing an unlicensed loan 1-0049 FI, §11-203.1(a)FI, §11-222(penalty) Misd. 3Y Property VI $5,000 81 Commercial Fraud, OtherMisappropriation, fraudulent conversion, or any fraudulent act in the course of engaging in the mortgage lending business 2-0946 FI, §11-523(c) Felony 15Y Property V $100,000 82 Commercial Fraud, Other Fraudulent Insurance Acts—Violation of §27-407 or any other provision of §§27-403, 27-404, 27-405, 27-406, 27-406.1, 27-407, 27-407.1, or 27-407.2 where the value of the fraud is $300 or greater 1-06251-08981-09021-09423-01203-01253-01263-01303-01503-01603-0180 IN, §27-408(a)(1)(penalty) Felony 15Y Property V $10,000 82-1 Commercial Fraud, Other Fraudulent Insurance Acts—Violation of §27-407 or any other provision of §§27-403, 27-404, 27-405, 27-406, 27-406.1, 27-407, 27-407.1, or 27-407.2 where the value of the fraud is less than $300 1-08991-09013-01273-01353-01403-01453-01553-01653-0185 IN, §27-408(a)(2)(penalty) Misd. 18M Property VII $10,000 83 Commercial Fraud, Other Fail to obtain and maintain a corporate surety bond or irrevocable letter of credit or to hold sums of money in an escrow account 1-0727 RP, §10-305(a) Felony 15Y Property V $10,000 84 Commercial Fraud, Other Sales of property, Custom Home Protection Act-willful failure to obtain and maintain a corporate surety bond or to hold sums of money in escrow account; willful failure to make disclosure; willful commission of a breach of trust provided in §10-502 1-01231-09871-1512 RP, §10-507(b)(2) Felony 15Y Property V $10,000 84-1 Commercial Fraud, OtherSales of property, Custom Home Protection Act—any other conduct that fails to comply with RP, Title 10, Subtitle 5 1-1507 RP, §10-507(b)(3) Misd. 1Y Property VII $1,000 84-2 Commercial Fraud, OtherCommission of mortgage fraud 1-1319 RP, §7-407(a) Felony 10Y Property V $5,000 84-3 Commercial Fraud, Other Commission of mortgage fraud involving victim who is a vulnerable adult under CR, §3-604 1-1320 RP, §7-407(b) Felony 15Y Property V $15,000 84-4 Commercial Fraud, Other Commission of mortgage fraud, engaging in a pattern of mortgage fraud 1-1321 RP, §7-407(c) Felony 20Y Property IV $100,000 84-5 Commercial Fraud, OtherFailure of foreclosure consultant to obtain a real estate broker's license RP, §7-318.1(a)RP, §7-321 (penalty) Misd. 3Y Property VI $10,000 84-6 Commercial Fraud, Other Violation of any provision of Business Occupations and Professions Article, Title 17, by foreclosure consultant RP, §7-318.1(b) RP, §7-321 (penalty) Misd. 3Y Property VI $10,000 84-7 Commercial Fraud, Other Other violation of any provision of Protection of Homeowners in Foreclosure Act, Real Property Article, Title 7, Subtitle 3 RP, §7-321(penalty) Misd. 3Y Property VI $10,000 84-8 Commercial Fraud, Other Violation of certain provisions of the Maryland Real Estate Brokers Act, 1st offense 1-04501-04981-04992-06052-0606 BO, §17-613(a)(penalty) Misd. 1Y Property VII $5,000 84-9 Commercial Fraud, OtherViolation of certain provisions of the Maryland Real Estate Brokers Act, 2nd offense BO, §17-613(d)(1)(penalty) Misd. 2Y Property VII $15,000 84-10 Commercial Fraud, Other Violation of certain provisions of the Maryland Real Estate Brokers Act, 3rd or subsequent offense BO, §17-613(d)(2)(penalty) Misd. 3Y Property VI $25,000 84-11 Commercial Fraud, Other Violation of any provisions of Maryland Mortgage Assistance Relief Services Act 1-1424 RP, §7-509(penalty) Misd. 3Y Property VI $10,000 84-12 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 6, 1st offense 1-09801-0981 BR, §5-610(a)(1), (b)(1)(penalty) Misd. 1Y Property VII $5,000 84-13 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 6, 2nd offense 1-09801-0981 BR, §5-610(a)(2), (b)(2)(penalty) Misd. 2Y Property VII $10,000 84-14 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 6, 3rd or subsequent offense 1-09801-0981 BR, §5-610(a)(3), (b)(3)(penalty) Misd. 3Y Property VI $20,000 84-15 Commercial Fraud, Other Misappropriation or fraudulent conversion of perpetual care trust funds in excess of $100 1-0982 BR, §5-610(c) Felony 10Y Property V $25,000 84-16 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 9, 1st offense 1-07311-0986 BR, §5-904(1)(penalty) Misd. 1Y Property VII $5,000 84-17 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 9, 2nd offense BR, §5-904(2)(penalty) Misd. 2Y Property VII $10,000 84-18 Commercial Fraud, Other Violation of any provision of Business Regulation Article, Title 5, Subtitle 9, 3rd or subsequent offense BR, §5-904(3)(penalty) Misd. 3Y Property VI $15,000 84-19 Commercial Fraud, Other Failure to deposit money received under or in connection with preneed burial contract, 1st offense 1-09831-0984 BR, §5-712(b)(1)(i), (b)(2)(i) Misd. 1Y Property VII $10,000 84-20 Commercial Fraud, Other Failure to deposit money received under or in connection with preneed burial contract, 2nd offense 1-09831-0984 BR, §5-712(b)(1)(ii), (b)(2)(ii) Misd. 2Y Property VII $15,000 84-21 Commercial Fraud, Other Failure to deposit money received under or in connection with preneed burial contract, 3rd or subsequent offense 1-09831-0984 BR, §5-712(b)(1)(iii), (b)(2)(iii) Misd. 3Y Property VI $20,000 84-22 Commercial Fraud, Other Misappropriation or fraudulent conversion of preneed trust funds in excess of $100 1-0985 BR, §5-712(c) Felony 10Y Property V $25,000 84-23 Commercial Fraud, Other Violations of law relating to returnable containers and returnable textiles, 1st offense BR, §19-304 Misd. 1Y Property VII $1,000 84-24 Commercial Fraud, Other Violations of law relating to returnable containers and returnable textiles, subsequent BR, §19-304 Misd. 3Y Property VII $2,500 84-25 Commercial Fraud, Other Violations of law relating to plastic secondary packaging, 1st offense 1-08771-0878 BR, §19-308(e)(1) Misd. 1Y Property VII $1,000 84-26 Commercial Fraud, Other Violations of law relating to plastic secondary packaging, subsequent BR, §19-308(e)(2) Misd. 3Y Property VII $2,500 85 Commercial Fraud, OtherFraud—breach of trust 1-2602 CR, §8-406(a) Misd. 10Y 1Y Property VI $500-$5,000 86 Commercial Fraud, OtherFraud—convert to own use the property of partner, make entries of a partnership transaction 2-2701 3-2607 CR, §8-401(a) Misd. 10Y Property VI $5,000 87 Commercial Fraud, OtherFraud, misrepresentation by corporate officer 4-2607 CR, §8-402(a) Misd. 3Y 6M Property VI $1,000-$10,000 88 Commercial Fraud, Other False or misleading statement or omission of material fact in sale of business opportunity 1-0871 BR, §14-127(b) Felony 5Y Property VI $10,000 89 Commercial Fraud, Other Offer or sale of franchise without registration 2-0633 BR, §14-228 Felony 5Y Property VI $10,000 90 Commercial Fraud, Other Untrue statements or omissions of material fact in connection with an offer to sell or sale of a franchise 1-0870 BR, §14-229(b) Felony 5Y Property VI $10,000 91 Commercial Fraud, Other False or misleading statement or omission in prospectus or amendment 2-0634 BR, §14-230 Felony 5Y Property VI $10,000 92 Commercial Fraud, Other Untrue statements or omissions of material fact in applications, notices, or reports in sale of franchise 2-0635 BR, §14-231 Felony 5Y Property VI $10,000 93 Commercial Fraud, Other Failure to notify Commissioner of material change in sale of franchise 2-0636 BR, §14-232 Felony 5Y Property VI $10,000 94 Vacant 95 Commercial Fraud, OtherFraud—pyramid, promotional scheme 6-2600 CR, §8-404(b) Misd. 1Y Property VII $10,000 96 Vacant 97 Vacant 98 Commercial Fraud, OtherUnlawful subleasing of motor vehicle 2-0615 CR, §8-408(b) Misd. 3Y Property VII $5,000 98-1 Commercial Fraud, OtherOperation of an assisted living program without a license, 1st offense 1-0557 HG, §19-1809(a)(2)(i) Felony 5Y Property VII $10,000 98-2 Commercial Fraud, OtherOperation of an assisted living program without a license, subsequent HG, §19-1809(a)(2)(ii) Felony 5Y Property VI $20,000 98-3 Commercial Fraud, OtherFraudulently obtaining motor vehicle accident report TR, §20-110(e)(1) Felony 15Y Property V $10,000 98-4 Commercial Fraud, OtherImproper disclosure of motor vehicle accident report by law enforcement agent TR, §20-110(e)(2) Felony 15Y Property V $10,000 99 ConspiracyConspiracy to commit a lawful act by unlawful means Common Law Misd. LIFE PersonDrugProperty Same seriousness category as most serious unlawful means 100 CounterfeitingCounterfeiting public seal 1-0663 CR, §8-607 Misd. 10Y 2Y Property V 101 CounterfeitingCounterfeiting United States currency with intent to defraud 1-00671-0069 CR, §8-604 Felony 10Y Property V $10,000 102 CounterfeitingCounterfeiting of private instruments or documents 1-2502 CR, §8-601(c)(1) Felony 10Y Property V $1,000 102-1 CounterfeitingPossession of counterfeit private instruments or documents 1-1502 CR, §8-601(c)(2) Misd. 3Y Property VII $1,000 102-2 CounterfeitingCounterfeiting of private instruments or documents, not covered by CR, §8-601 or another statute 6-1313 Common Law Misd. LIFE Property V 103 CounterfeitingCounterfeiting of public documents 1-2500 1-2504 CR, §8-605 Felony 10Y 2Y Property V 103-1 CounterfeitingCounterfeiting of public documents, not covered by CR, §8-605 or another statute 6-1313 Common Law Misd. LIFE Property V 104 CounterfeitingCounterfeiting of orders for money or goods 1-2501 2-25102-2520 CR, §8-609 Felony 10Y 2Y Property V 104-1 CounterfeitingTrademark counterfeiting, less than $1,500 1-1386 CR, §8-611(d) Misd. 1Y Property VII $1,000 105 CounterfeitingTrademark counterfeiting, $1,500 or greater 1-1385 CR, §8-611(c) Felony 10Y Property V $10,000 106 CounterfeitingIssuing counterfeit private instruments or documents 1-2513 CR, §8-602 Felony 10Y Property V $1,000 106-1 CounterfeitingIssuing counterfeit private instruments or documents, not covered by CR, §8-602 or another statute Common Law Misd. LIFE Property V 107 CounterfeitingCounterfeiting stamp of Comptroller 1-2603 CR, §8-608 Misd. 10Y 2Y Property V 108 Vacant 109 CounterfeitingMaking false entries in public records and related crimes 2-2504 3-2504 5-2504 CR, §8-606 Misd. 3Y Property VII $1,000 110 Counterfeiting Forging, falsifying, or counterfeiting signature of judge, court officer, or court employee 1-1698 1-1699 CR, §8-606.1 Misd. 5Y Property VI $10,000 111 Vacant 112 CounterfeitingPossessing or issuing counterfeit United States currency 1-0494 CR, §8-604.1 Misd. 3Y Property VII $1,000 113 CounterfeitingPossessing counterfeit title to motor vehicle 2-0035 CR, §8-603 Misd. 3Y Property VII $1,000 113-1 CounterfeitingCounterfeiting prescription 1-01802-02622-25022-2530 CR, §8-610 Misd. 2Y Property VI 114 CounterfeitingCounterfeiting and issuing of tokens 3-2502 3-2510 CR, §8-612 Misd. 1Y Property VII 114-1 Credit Card Crimes Felony credit card crimes, $100,000 or greater 1-11881-11891-11931-11971-13511-1355 CR, §8-206(c)(1)(iii)CR, §8-207(b)(1)(iii)CR, §8-209(b)(1)(iii) Felony 20Y Property III $25,000 114-2 Credit Card Crimes Felony credit card crimes, at least $25,000 but less than $100,000 1-11871-11901-11941-11981-13521-1356 CR, §8-206(c)(1)(ii)CR, §8-207(b)(1)(ii)CR, §8-209(b)(1)(ii) Felony 10Y Property V $15,000 114-3 Credit Card Crimes Felony credit card crimes, at least $1,500 but less than $25,000 1-11861-11911-11961-13501-13541-1357 CR, §8-206(c)(1)(i)CR, §8-207(b)(1)(i)CR, §8-209(b)(1)(i) Felony 5Y Property VI $10,000 114-4 Credit Card Crimes Misdemeanor credit card crimes, at least $100 but less than $1,500 1-11851-11921-11951-11991-13531-1358 CR, §8-206(c)(2)CR, §8-207(b)(2)CR, §8-209(b)(2) Misd. 1Y Property VII $500 115 Credit Card CrimesMisdemeanor credit card crimes, less than $100 1-05811-05821-0583 1-05841-05851-0586 CR, §8-206(c)(3)CR, §8-207(b)(3)CR, §8-209(b)(3) Misd. 90D Property VII $500 115-1 Credit Card CrimesPossess incomplete credit card or knowingly possess machinery, plates, etc. to reproduce credit cards 1-0199 1-0200 CR, §8-208 Felony 15Y Property V $1,000 116 Credit Card CrimesUnlawfully use or disclose credit card number or other payment device number or holder's signature 2-0550 2-0560 CR, §8-214CR, §8-216(penalty) Felony 15Y Property V $1,000 116-1 Credit Card CrimesMake or cause to be made a false written statement with respect to identity to procure the issuance of a credit card 1-2607 CR, §8-203 Misd. 18M Property VII $500 116-2 Credit Card CrimesSteal credit card, receive stolen or lost credit card, or sell or buy credit card 1-2399 2-2803 1-2899 1-26051-2803 CR, §8-204 Misd. 18M Property VII $500 117 Credit Card CrimesFalsely make or emboss credit card, transfer or possess falsely made or embossed credit card, or sign credit card with intent to defraud 1-01961-01981-0903 CR, §8-205 Felony 15Y Property V $1,000 118 Credit Card CrimesPublish or cause to be published the number or code of a telephone credit card with intent to defraud 2-2605 CR, §8-210 Misd. 1Y Property VII $500 119 Crimes Against the Person, GenerallyAdministered controlled dangerous substance before committing crime of violence 2-0710 CR, §5-624(b) Misd. 1Y Person VII $2,500 119-1 Criminal OrganizationsUse of or threat of force to coerce participation or prevent leaving organization 1-1391 CR, §9-802 Misd. 2Y Person VII $10,000 119-2 Criminal OrganizationsUse of or threat of force to coerce participation or prevent leaving organization in school or within 1,000 feet of school property 1-1392 CR, §9-803 Misd. 4Y Person VI $20,000 119-3 Criminal OrganizationsParticipate as member of criminal organization in commission of crime; in receipt and use or investment, of proceeds of $10,000 or more from underlying crime in the acquisition of real property or establishment or operation of any enterprise; in acquisition or maintenance of any interest or control of any enterprise or property through an underlying crime 1-13941-13951-14191-14211-14221-1423 CR, §9-804(f)(1)(i) Felony 15Y Person One category more serious than most serious underlying offense. If no conviction on underlying offense, category=IV $1,000,000 119-4 Criminal OrganizationsParticipate as member of criminal organization in commission of crime—resulting in death of victim 1-14171-1418 CR, §9-804(f)(1)(ii) Felony 25Y Person One category more serious than most serious underlying offense. If no conviction on underlying offense, category=III $5,000,000 119-5 Criminal OrganizationsOrganize, supervise, finance, or manage a criminal organization 1-1393 CR, §9-805 Felony 20Y Person III $1,000,000 119-6 Deceased Human Body, Crimes InvolvingUnauthorized burial or disposal of body; unauthorized use or disposal of soil remains 1-0932 HG, §5-514 Misd. 1Y Person VII $5,000 120 Destructive Devices Explosives—possession without license with intention to use in violation of various statutes 2-0393 PS, §11-114(b)PS, §11-116(a)(penalty) Felony 20Y Person III $10,000 121 Destructive DevicesExplosives—sale without license with intention to use in violation of various statutes 1-0022 PS, §11-114(c)PS, §11-116(b)(penalty) Felony 20Y Person III $10,000 122 Destructive Devices Firearm, explosive on aircraft 2-5203 TR, §5-1008 Felony 10Y Person III 123 Destructive DevicesManufacture, transport, possess, control, store, sell, distribute, or use a destructive device 1-0720 CR, §4-503(a)(1) Felony 25Y Person III $250,000 124 Destructive DevicesPossess explosive, incendiary, or toxic material with the intent to create a destructive device 1-0725 CR, §4-503(a)(2) Felony 25Y Person III $250,000 125 Destructive DevicesExplosives—unlawful manufacture or dealing without license 1-0907 PS, §11-114(a) Misd. 5Y Person VI $5,000 125-1 Destructive DevicesExplosives—possession without license 1-1603 PS, §11-114(b) Misd. 5Y Person VI $5,000 125-2 Destructive DevicesExplosives—sale without license PS, §11-114(c) Misd. 5Y Person VI $5,000 125-3 Destructive DevicesExplosives—owner of operation that uses explosives dealing without license PS, §11-114(d) Misd. 5Y Person VI $5,000 126 Destructive Devices Explosives—employee possession without license PS, §11-114(e) Misd. 5Y Person VI $5,000 127 Destructive Devices Explosives—violate explosives regulation PS, §11-114(f) Misd. 5Y Person VI $5,000 127-1 Disturbing the Peace, Disorderly Conduct, and Related Crimes Disturbing the peace, disorderly conduct in public place 2-00452-00502-00552-00602-0065 CR, §10-201 Misd. 60D Person VII $500 127-2 Disturbing the Peace, Disorderly Conduct, and Related Crimes Keeping a disorderly house 5-5311 CR, §10-202 Misd. 6M 10D PersonDrugProperty VII $50—$300 127-3 Disturbing the Peace, Disorderly Conduct, and Related Crimes Affray 3-5399 Common Law Misd. LIFE Person VI 128 Disturbing the Peace, Disorderly Conduct, and Related Crimes Rioting 3-1314 Common law Misd. LIFE Person IV 129 Disturbing the Peace, Disorderly Conduct, and Related CrimesDesecrate flag to incite or produce an imminent breach of the peace 1-0671 CR, §10-704 Misd. 1Y Property VII $1,000 129-1 Disturbing the Peace, Disorderly Conduct, and Related CrimesWillfully violate order given by Governor in time of emergency PS, §14-114 Misd. 1Y Person VII $5,000 129-2 Disturbing the Peace, Disorderly Conduct, and Related CrimesWillfully and knowingly fail to comply with order in time of investigation of communicable disease 1-0969 HG, §18-907 Misd. 1Y Person VII $3,000 130 Election Offenses False reports by election judge or election official 1-15292-0381 EL, §16-601 Felony 10Y 1Y Property V 131 Election Offenses Defacing or removing election records related to voting 2-0382 EL, §16-701 Felony 10Y 1Y Property V 132 Election Offenses Tampering with electronic voting system 1-0785 EL, §16-804 Felony 10Y Property V $50,000 133 Election Offenses Voting by person convicted of a felony and currently serving a court-ordered sentence of imprisonment 2-0374 EL, §16-202 Felony 5Y 1Y Property VI 134 Election Offenses Tampering with election records 2-0377 EL, §16-302 Felony 5Y 1Y Property VI 135 Election Offenses Adding or deleting votes 2-0378 EL, §16-304 Felony 5Y 1Y Property VI 135-1 Election Offenses Voting offenses 1-1501 EL, §16-201 Misd. 5Y Property VII $5,000 135-2 Election Offenses Voter registration offenses 2-0372 EL, §16-101 Misd. 5Y Property VII $1,000 135-3 Election Offenses Neglect of official duties by election official or official of political party 2-0376 EL, §16-301 Misd. 3Y 30D Property VII $50-$1,000 136 Election Offenses Destruction of voting equipment 1-1532 EL, §16-801 Felony 3Y Property VI $10,000 136-1 Election Offenses Tampering with voting equipment 1-0783 EL, §16-802 Felony 3Y Property VI $10,000 136-2 Election Offenses Removal or destruction of equipment or supplies 1-0784 EL, §16-803 Felony 3Y Property VI $10,000 136-3 Election Offenses Falsely or fraudulently making, defacing, or destroying a certificate of candidacy or nomination 2-0385 EL, §16-901 Misd. 3Y Property VI $100-$1,000 136-4 Election Offenses Unlawful actions by an election judge EL, §16-303 Misd. 2Y 3M Property VII 136-5 Election Offenses Violate any provision of Election Law Article, Title 9 (Voting), Subtitle 3 (Absentee Voting) EL, §9-312 Misd. 2Y Property VII $1,000 136-6 Election OffensesGive, receive, etc., any valuable thing to influence vote, etc. 1-0924 EL, §13-602 Misd. 1Y Property VII $1,000 136-7 Election OffensesPublish, distribute, etc., campaign material that violates authority line requirements in EL, §13-401 1-1551 EL, §13-401 EL, §13-602 (penalty) Misd. 1Y Property VII $1,000 136-8 Election Offenses Threaten election official or immediate family member of election official 1-1804 1-1805 EL, §16-904 Misd. 3Y Person V $2,500 136-9 Election OffensesInterference with performance of official duties by election official, an individual present at polling place, or canvass of votes 1-1484 EL, §16-205 Misd. 1Y 3M Person V $50-$1,000 136-10 Election OffensesInterference with performance of official duties by election official, an individual present at polling place, or canvass of votes 1-1484 EL, §16-205 Misd. 1Y 3M Property VI $50-$1,000 137 Estates, Crimes AgainstDestroy or conceal will 2-2700 CR, §8-702 Misd. 15Y 18M Property V 137-1 Estates, Crimes AgainstEmbezzle, alter will or record 1-2700 CR, §8-701 Misd. 7Y 3Y Property VI 138 Extortion and Other ThreatsFelony Extortion—by anyone, $100,000 or greater 1-12071-1213 CR, §3-701(c)(3) Felony 25Y Property II $25,000 138-1 Extortion and Other ThreatsFelony Extortion—by anyone, at least $10,000 but less than $100,000 1-12061-1211 CR, §3-701(c)(2) Felony 15Y Property IV $15,000 138-2 Extortion and Other ThreatsFelony Extortion—by anyone, at least $1,000 but less than $10,000 1-12041-1210 CR, §3-701(c)(1) Felony 10Y Property V $10,000 138-3 Extortion and Other ThreatsMisdemeanor Extortion—by anyone, less than $1,000 1-12091-1286 CR, §3-701(d) Misd. 18M Property VII $1,000 139 Extortion and Other ThreatsFelony Extortion—by State or local officer, $100,000 or greater 1-1217 CR, §3-702(e) Felony 25Y Property II $25,000 139-1 Extortion and Other ThreatsFelony Extortion—by State or local officer, at least $10,000 but less than $100,000 1-1216 CR, §3-702(d) Felony 15Y Property IV $15,000 139-2 Extortion and Other ThreatsFelony Extortion—by State or local officer, at least $1,000 but less than $10,000 1-1215 CR, §3-702(c) Felony 10Y Property V $10,000 139-3 Extortion and Other ThreatsMisdemeanor Extortion—by State or local officer, less than $1,000 1-1214 CR, §3-702(f) Misd. 18M Property VII $500 140 Extortion and Other ThreatsExtortion—sending, etc. a threatening letter, etc. 1-17051-17061-17072-51302-5140 CR, §3-706 Felony 10Y Property V $10,000 141 Extortion and Other ThreatsExtortion—threatening verbally 1-17021-17031-17042-21042-2106 CR, §3-705 Felony 10Y Property V $10,000 142 Extortion and Other ThreatsThreaten to take the life, kidnap, or cause physical injury to State or local official, deputy or assistant State's Attorney, or assistant Public Defender 1-0477 1-0478 CR, §3-708 Misd. 3Y Person V $2,500 143 Extortion and Other ThreatsExtortion—by false accusation 1-17013-21043-2105 CR, §3-704 Misd. 10Y Property V $10,000 144 Extortion and Other ThreatsExtortion—by State or local officer or employee against another employee 4-2100 CR, §3-703(a) Felony 5Y Property VI $5,000 144-1 Extortion and Other ThreatsSextortion—causing another to engage in sexual activity or in a visual representation of sexual activity by threating behavior 1-14521-1453 CR, §3-709 Misd. 10Y Person V $10,000 145 False Advertising and Related CrimesFalse and fraudulent advertising CL, §14-2902 Misd. 1Y Property VII $1,000 146 False Advertising and Related CrimesBait and switch 5-2607 CL, §14-2903 Misd. 1Y Property VII $500 146-1 False Statements, OtherFalse statement—to Department of Housing and Community Development, in document required under or to influence action on a Rental Housing Program loan HS, §4-411 Misd. 5Y Property VII $50,000 146-2 False Statements, OtherFalse statement—to Department of Housing and Community Development, in document required under or to influence action on an Energy-Efficient Homes Construction Loan Program loan HS, §4-2005 Misd. 5Y Property VII $50,000 146-3 False Statements, OtherFalse statement—in loan application under the Local Land Trust Revolving Loan program NR, §3-215(h) Misd. 5Y Property VII $50,000 147 False Statements, OtherFalse Statement—rumor as to bomb 1-5300 CR, §9-504(b) Felony 10Y Property V $10,000 147-1 False Statements, OtherFalse Statement—manufacture, possess, transport, or place a phony destructive device 2-5215 CR, §9-505 Felony 10Y Property V $10,000 147-2 False Statements, OtherFalse Statement—of an emergency or crime with reckless disregard of causing bodily harm to an individual 1-1781 CR, §9-501.1(c)(1) Misd. 3Y Person VII $2,000 147-3 False Statements, OtherFalse Statement—of an emergency or crime resulting in serious physical injury or death to a person 1-1782 CR, §9-501.1(c)(2) Felony 10Y Person V $20,000 148 False Statements, Other Fraud—failure to provide or providing false information willfully or with intent to evade taxes 1-0828 TG, §13-1024(a) Misd. 18M Property VI $5,000 149 False Statements, OtherFraud—willful failure to file income tax return 1-0831 TG, §13-1001(d) Misd. 5Y Property VI $10,000 150 False Statements, Other Fraud—willful failure to withhold income tax TG, §13-1007(b) Misd. 5Y Property VI $10,000 151 False Statements, Other Fraud—willful preparation of false income tax return 1-0751 TG, §13-1004 Misd. 5Y Property VI $10,000 151-1 False Statements, Other File false lien or encumbrance or make false statement on lien or encumbrance, 1st offense 1-0651 CR, §3-808(b)(1) Misd. 1Y Property VII $10,000 151-2 False Statements, Other File false lien or encumbrance or make false statement on lien or encumbrance, subsequent CR, §3-808(b)(1) Misd. 5Y Property VI $10,000 152 False Statements, OtherFalse statement—on application for funds for Maryland higher education commission 2-5099 CR, §9-506(a) Misd. 1Y Property VII $5,000 153 False Statements, OtherFalse Statement—to official or agencies of State or its subdivisions 1-5099 CR, §9-503(a) Misd. 6M Property VII $500 154 False Statements, OtherFalse Statement—to peace or police officers 1-0207 1-0690 1-4803 CR, §9-501(a) CR, §9-502(a) Misd. 6M Property VII $500 154-1 Forensic Genealogy, Crimes InvolvingWillfully fail to destroy genetic genealogy information, forensic genetic genealogical (FGG) profiles, or DNA samples that are required to be destroyed in accordance with CP, §17-102(h) 1-1078 CP, §17-102(j)(2) Misd. 1Y Property VII $1,000 154-2 Forensic Genealogy, Crimes InvolvingDisclose genetic genealogy data, forensic genetic genealogical (FGG) profiles, or DNA samples not authorized by a court order in the course of a forensic genetic genealogical DNA analysis and search (FGGS), or in the course of any criminal proceeding that arises from an FGGS 1-1077 CP, §17-102(i)(2) Misd. 5Y Property V $5,000 154-3 Fraud, Financial Crimes Against Vulnerable AdultsObtain property of vulnerable adult or an individual at least 68 years old by deception, intimidation, or undue influence, $100,000 or greater 1-1390 CR, §8-801(c)(1)(iii) Felony 20Y Property III $25,000 154-4 Fraud, Financial Crimes Against Vulnerable AdultsObtain property of vulnerable adult or an individual at least 68 years old by deception, intimidation, or undue influence, at least $25,000 but less than $100,000 1-1389 CR, §8-801(c)(1)(ii) Felony 10Y Property V $15,000 154-5 Fraud, Financial Crimes Against Vulnerable AdultsObtain property of vulnerable adult or an individual at least 68 years old by deception, intimidation, or undue influence, at least $1,500 but less than $25,000 1-1388 CR, §8-801(c)(1)(i) Felony 5Y Property VI $10,000 154-6 Fraud, Financial Crimes Against Vulnerable AdultsObtain property of vulnerable adult or an individual at least 68 years old by deception, intimidation, or undue influence, less than $1,500 1-1387 CR, §8-801(c)(2) Misd. 1Y Property VII $500 155 Fraud, Miscellaneous Fraud—misuse by lawyer 1-1775 BO, §10-306, BO, §10-606 (b) Misd. 5Y Property V 156 Vacant 157 Fraud, MiscellaneousFraud—failure to deliver receipts for stored grain 1-55076-2610 CR, §7-116 Misd. 10Y 1Y Property VI $500-$5,000 158 Fraud, MiscellaneousFraudulent actions related to cable TV for payment or offer of pay 2-0290 2-0291 2-0292 2-0293 2-0294 2-0295 4-0248 CR, §7-303(c) Misd. 5Y Property VI $5,000 159 Fraud, Miscellaneous Out-of-State unlicensed sellers of alcohol 1-1668 AB, §6-327 Felony 2Y Property VI $1,000 159-1 Fraud, Miscellaneous Violate certain provisions of Health Occupations Article, Title 8 (Nurses), Subtitle 7 (Prohibited Acts; Penalties) 1-11511-11521-11531-11541-11551-11561-11571-1158 HO, §8-710(penalty) Misd. 5Y Person VI $10,000 159-2 Fraud, Miscellaneous Violate any provision of Health Occupations Article, Title 19 (Social Workers), Subtitle 4 (Prohibited Acts; Penalties) 1-08881-08891-0890 HO, §19-407(penalty) Misd. 2Y Person VII $5,000 159-3 Fraud, Miscellaneous Practicing medicine without a license or misrepresentation as practitioner of medicine 1-08911-1375 HO, §14-601HO, §14-602HO, §14-606(a)(4)(penalty) Felony 5Y Person VI $10,000 159-4 Fraud, Miscellaneous Practicing respiratory care without a license 2-0987 HO, §§14-5A-20 — 14-5A-22 HO, §14-5A-23(a)(penalty) Misd. 1Y Person VII $1,000 159-5 Fraud, Miscellaneous Practicing radiation therapy, nuclear medicine technology, radiography, or radiology assistance without a license HO, §§14-5B-17 — 14-5B-18HO, §14-5B-19(a)(penalty) Misd. 1Y Person VII $1,000 159-6 Fraud, Miscellaneous Practicing polysomnography without a license HO, §§14-5C-20 — 14-5C-22 HO, §14-5C-23(a) (penalty) Misd. 1Y Property VII $1,000 159-7 Fraud, Miscellaneous Practicing athletic training without a license HO, §14-5D-17HO, §14-5D-18(a)(penalty) Misd. 1Y Person VII $1,000 159-8 Fraud, Miscellaneous Practicing perfusion without a license HO, §§14-5E-20 — 14-5E-22HO, §14-5E-23(a)(penalty) Misd. 1Y Person VII $1,000 159-9 Fraud, Miscellaneous Practicing naturopathic medicine without a license HO, §14-5F-29(a)HO, §14-5F-30HO, §14-5F-29(b)(penalty) Felony 5Y Person VI $10,000 159-10 Fraud, MiscellaneousPracticing genetic counseling without a license HO, §§14-5G-23 — 14-5G-25 HO, §14-5G-27(a)(penalty) Misd. 1Y Person VII $1,000 159-11 Fraud, Miscellaneous Practicing dentistry without a license or misrepresentation as practitioner of dentistry, 1st offense 1-16801-1681 HO, §4-601(a)HO, §4-602HO, §4-606(a)(1)(i)(penalty) Felony 1Y Person VII $5,000 159-12 Fraud, Miscellaneous Practicing dentistry without a license or misrepresentation as practitioner of dentistry, subsequent HO, §4-601(a)HO, §4-602HO, §4-606(a)(1)(ii)(penalty) Felony 5Y Person VI $20,000 per day 159-13 Fraud, Miscellaneous Conducting unauthorized dental laboratory work or advertising a dental appliance without a dental license 1-1682 HO, §4-503(c)HO, §4-606(c)(penalty) Felony 2Y Property VII $2,000 per day 159-14 Fraud, Miscellaneous Aiding or abetting the unauthorized practice of massage therapy in violation of HO, §6–501(b), 1st offense 1-1834 HO, §6-504(b)(1) (penalty) Felony 1Y Person VII $5,000 per day 159-15 Fraud, Miscellaneous Aiding or abetting the unauthorized practice of massage therapy in violation of HO, §6–501(b), subsequent 1-1834 HO, §6-504(b)(2) (penalty) Felony 5Y Person VI $20,000 per day 160 Fraud, Miscellaneous Fraud—falsely representing self as lawyer 2-0592 BO, §10-602 BO, §10-606(penalty) Misd. 1Y Person VII $5,000 160-1 Fraud, MiscellaneousImpersonating a law enforcement officer 1-06041-1769 PS, §3-502 Misd. 2Y Person VII $2,000 160-2 Fraud, MiscellaneousAltering the results of a drug or alcohol screening test, 1st offense 1-0284 CR, §10-111 Misd. 1Y Property VI $1,000 160-3 Fraud, MiscellaneousAltering the results of a drug or alcohol screening test, subsequent 1-0284 CR, §10-111 Misd. 3Y Property V $5,000 160-4 Fraud, MiscellaneousViolation of Maryland Food, Drug, and Cosmetic Act, 1st offense 1-05371-05381-05391-05402-09592-09602-09612-09622-09632-09642-09652-09662-09672-0968 HG, §21-1215(b)(1)(penalty) Misd. 1Y Property VII $10,000 161 Fraud, MiscellaneousViolation of Maryland Food, Drug, and Cosmetic Act, subsequent HG, §21-1215(b)(2)(penalty) Misd. 3Y Property VI $25,000 162 Fraud, MiscellaneousFraudulently substituting wood alcohol for grain alcohol while in the business of making, manufacturing, etc. drugs, medicines, medicinal or chemical preparations CR, §8-802(b) Misd. 1Y Property VII $100-$500 162-1 Vacant 163 Vacant 163-1 Fraud, MiscellaneousPossession of unstamped cigarettes or other tobacco products on which tobacco tax has not been paid, more than 30 cartons 1-7510 TG, §13-1014(a)(3) Misd. 1Y Property VII $1,000 164 Fraud, MiscellaneousWillful transportation of unstamped cigarettes or other tobacco products on which tobacco tax has not been paid 1-0796 TG, §13-1015 Felony 2Y Property VII Mandatory $150/carton for a first offense, or $300/carton for a subsequent offense 164-1 Fraud—Telecommunication Service Providers Telecom devices and telecom theft 1-0590 CR, §7-315 Misd. 3Y Property VI $2,500 164-2 Fraud—Telecommunication Service Providers Telecom devices and telecom theft, over 100 devices 1-0591 CR, §7-315 Felony 10Y Property IV $10,000 165 Vacant 166 Gambling—General Provisions Rent place for gambling 2-3921 CR, §12-104(a) Misd. 1Y 6M Property VII $500 167 Gambling—General Provisions Fix horse race 1-0433 CR, §12-109(a) Misd. 3Y Property VII $5,000 168 Gambling—General Provisions Make or sell a book or pool on the result of a race, etc.; establish, keep, etc., a building, vessel, or place for the purpose of betting, etc.; receive, become the depository of, etc., money to be bet, etc. 1-1710 1-1711 CR, §12-102(b) Misd. 6M Property VII $5,000 169 Gambling—General Provisions Gambling—keeping gaming table or place 1-39081-3921 CR, §12-104(a) Misd. 1Y 6M Property VII $500 170 Gambling—General ProvisionsOwner/occupier of building knowingly permits gaming table to be kept 2-3908 CR, §12-104(a) Misd. 1Y 6M Property VII $500 171 Gambling—General ProvisionsFraud—enter horse in a race under a name other than that assigned and registered; racing horse under a false or unregistered name 1-0231 CR, § 8-904 Misd. 3Y Property VII $5,000 172 Vacant 173 Gambling—General Provisions Off-shore gambling 6-2620 CR, §12-105(b) Misd. 1Y Property VII $200-$1,000 174 Gambling—General Provisions Keep, etc. slot machine unlawfully 3-3908 CR, §12-302(a) Misd. 1Y Property VII $1,000 175 Vacant 176 Vacant 176-1 Handguns—In General Handgun—unlawful wearing, carrying, etc., 1st weapon offense, generally 1-17831-1785 CR, §4-203(c)(2)(i) Misd. 5Y 30D Person VI $250-$2,500 177 Handguns—In General Handgun—unlawful wearing, carrying, etc., 2nd weapon offense, generally 1-17871-1788 CR, §4-203(c)(3)(i)1 Misd. 10Y 1Y Person III 177-1 Handguns—In General Handgun—unlawful wearing, carrying, etc., more than two prior weapon offenses, generally 1-17891-1790 CR, §4-203(c)(4)(i)1 Misd. 10Y 3Y Person III 177-2 Handguns—In General Handgun—unlawful wearing, carrying, etc., on school property, 1st weapon offense 1-1783 1-1785 CR, §4-203(c)(2)(ii) Misd. 5Y 90D Person VI $250-$2,500 178 Handguns—In General Handgun—unlawful wearing, carrying, etc., on school property,2nd weapon offense CR, §4-203(c)(3)(i)2 Misd. 10Y 3Y Person III 179 Vacant 180 Handguns—In General Handgun—unlawful wearing, carrying, etc., on school property, more than two prior weapon offenses CR, §4-203(c)(4)(i)2A Misd. 10Y 5Y Person III 180-1 Handguns—In General Handgun—unlawful wearing, carrying, etc., a loaded handgun, 1st weapon offense 1-17841-1786 CR, §4-203(c)(2)(i) Misd. 5Y 30D Person VI $250-$2,500 180-2 Handguns—In General Handgun—unlawful wearing, carrying, etc., a loaded handgun, 2nd weapon offense 1-14561-1457 CR, §4-203(c)(3)(ii)2 Misd. 10Y MM*=1Y Person III 180-3 Handguns—In General Handgun—unlawful wearing, carrying, etc., a loaded handgun, more than two prior weapon offenses 1-14581-1459 CR, §4-203(c)(4)(ii)2 Misd. 10Y MM*=3Y Person III 181 Handguns—In General Handgun—unlawful wearing, carrying, etc., with deliberate purpose to injure or kill, more than two prior weapon offenses CR, §4-203(c)(4)(i)2B Misd. 10Y 5Y Person III 182 Handguns—In General Handgun—unlawful wearing, carrying, etc., under influence 6-5210 PS, §5-314 Misd. 1Y Person VII $1,000 183 Vacant 184 Vacant 185 Vacant 186 Handguns—In General Sale of a handgun manufactured on or before 12/31/02 with no external safety lock 2-2020 PS, §5-132PS, §5-144(penalty) Misd. 5Y Person VI $10,000 187 Handguns—In General Fail to return revoked handgun permit 6-5211 PS, §5-313 Misd. 1Y Person VII $100-$1,000 188 Handguns—In GeneralManufacture for distribution or sale a handgun that is not included on the handgun roster 1-2222 PS, §5-406(c)(1) Felony 5Y Person VI $10,000 189 Handguns—In GeneralSell or offer to sell a handgun that is not included on the handgun roster 1-2223 PS, §5-406(c)(2) Felony 5Y Person VI $2,500 190 Harboring, Escape, and Contraband Operate unmanned aircraft over a correctional facility to photograph or record images of facility without authorization 1-1836 CS, §8-804 Misd. 3Y Property VI $1,000 191 Harboring, Escape, and Contraband Contraband—deliver contraband using an unmanned aircraft 1-1837 CR, §9-417.1 Misd. 3Y Property VI $1,000 192 Harboring, Escape, and ContrabandContraband—deliver, possess, with intent to deliver, conceal, receive weapon 2-1035 2-1040 2-1045 2-1055 CR, §9-414 Felony 10Y Person IV $5,000 193 Harboring, Escape, and ContrabandContraband—deliver, possess, with intent to deliver, conceal, receive contraband to effect an escape 2-1060 2-1065 2-1070 2-1075 CR, §9-413 Felony 10Y Person IV $5,000 194 Harboring, Escape, and ContrabandEscape, 1st degree 1-0615 2-1010 CR, §9-404 Felony 10Y Person IV $20,000 195 Harboring, Escape, and Contraband Escape, 2nd degree 1-0766 2-1020 2-1025 2-1030 CR, §9-405 Misd. 3Y Person VI $5,000 196 Harboring, Escape, and Contraband Resisting or interfering with arrest 1-0600 CR, §9-408 Misd. 3Y Person VI $5,000 197 Harboring, Escape, and ContrabandContraband—deliver, possess with intent to deliver, knowingly possess contraband 1-1835 2-1080 2-1085 CR, §9-412 Misd. 3Y Property VI $1,000 198 Harboring, Escape, and Contraband Deliver, possess with intent to deliver, receive alcoholic beverage 1-0724 2-1090 2-1092 CR, §9-415 Misd. 3Y Property VI $1,000 199 Harboring, Escape, and ContrabandDeliver, possess with intent to deliver, receive controlled dangerous substance 1-0718 2-1095 2-1097 CR, §9-416 Misd. 3Y Property VI $1,000 199-1 Harboring, Escape, and ContrabandPossess, possess with intent to deliver, receive telecommunication device or accessory 1-13271-13281-13291-1330 CR, §9-417 Misd. 5Y Property VI $3,000 200 Harboring, Escape, and ContrabandHarbor fleeing felon 1-4904 CR, §9-402 Misd. 1Y Person VII $1,000 201 Harboring, Escape, and ContrabandHarbor felon/fugitive 1-0232 CR, §9-402 Misd. 1Y Person VII $1,000 202 Harboring, Escape, and ContrabandHarboring—prison escapee 2-4904 CR, §9-403 Misd. 1Y Person VII $1,000 203 Harboring, Escape, and Contraband Violate Home Detention Program CS, §3-409 Misd. 1Y Person VII 204 Hate CrimesCrimes against, or threatening to commit crimes against, persons, groups, or property motivated either in whole or substantial part by race, color, religious beliefs, sexual orientation, gender, gender identity, disability, national origin, or homelessness—resulting in death CR, §10-304(2)(ii)CR, §10-306(b)(2)(penalty) Felony 20Y Person III $20,000 205 Hate Crimes Crimes against, or threatening to commit crimes against, persons, groups, or property motivated either in whole or substantial part by race, color, religious beliefs, sexual orientation, gender, gender identity, disability, national origin, or homelessness—involving separate felony CR, §10-304(2)(i)CR, §10-306(b)(1)(penalty) Felony 10Y Person IV $10,000 205-1 Hate CrimesDamage property of religious entity 1-0435 CR, §10-302CR, §10-306(a)(penalty) Misd. 3Y Person V $5,000 205-2 Hate CrimesObstruct exercise of religious belief 1-0436 CR, §10-303CR, §10-306(a)(penalty) Misd. 3Y Person V $5,000 205-3 Hate CrimesCrimes against, or threatening to commit crimes against, persons, groups, or property motivated either in whole or substantial part by race, color, religious beliefs, sexual orientation, gender, gender identity, disability, national origin, or homelessness 1-0437 CR, §10-304(l)CR, §10-306(a)(penalty) Misd. 3Y Person V $5,000 205-4 Hate CrimesDamage to associated building 2-02512-0252 CR, §10-305CR, §10-306(a)(penalty) Misd. 3Y Person V $5,000 205-5 Hate CrimesUse of an item or a symbol to threaten or intimidate 1-1675 CR, §10-305.1CR, §10-306(a)(penalty) Misd. 3Y Person V $5,000 205-6 Home Improvement, Crimes InvolvingAct as contractor or sell a home improvement without a license, 1st offense 1-15971-1598 BR, §8-601 Misd. 6M Property VII $1,000 205-7 Home Improvement, Crimes InvolvingAct as contractor or sell a home improvement without a license, subsequent 2-02562-02572-0275 BR, §8-601 Misd. 2Y Property VII $5,000 205-8 Home Improvement, Crimes InvolvingAbandon or fail to perform contract 2-02582-0259 BR, §8-605BR, §8-623(penalty) Misd. 6M Property VII $1,000 205-9 Human Relations, Crimes InvolvingInjury, intimidation, or interference with protected housing activities because of a person’s race, color, religion, sex, disability, marital status, familial status, sexual orientation, gender identity, national origin, or source of income SG, §20-1103(c)(1) Misd. 1Y Person VII $1,000 205-10 Human Relations, Crimes InvolvingInjury, intimidation, or interference with protected housing activities because of a person’s race, color, religion, sex, disability, marital status, familial status, sexual orientation, gender identity, national origin, or source of income—resulting in bodily injury SG, §20-1103(c)(2) Misd. 10Y Person IV $10,000 205-11 Human Relations, Crimes InvolvingInjury, intimidation, or interference with protected housing activities because of a person’s race, color, religion, sex, disability, marital status, familial status, sexual orientation, gender identity, national origin, or source of income—resulting in death SG, §20-1103(c)(3) Misd. LIFE Person II 205-12 Human TraffickingSex trafficking, misdemeanor 1-07521-07571-07591-07621-10801-10821-1083 CR, §3-1102(c)(1) Misd. 10Y Person III $5,000 205-13 Human TraffickingSex trafficking, felony 1-07541-07561-07581-07611-07861-07871-07881-0789 CR, §3-1102(c)(2) Felony 25Y♦ Person II $15,000 206 Human TraffickingForced marriage 1-17261-17271-17281-1729 CR, §3-1103 Felony 25Y♦ Person II $15,000 206-1 Identity FraudPossess, obtain personally identifying information or willfully assume the identity of another, benefit $100,000 or greater 1-13591-13661-1370 CR, §8-301(b), (c)CR, §8-301(g)(1)(iii)(penalty) Felony 20Y Property III $25,000 206-2 Identity FraudPossess, obtain personally identifying information or willfully assume the identity of another, benefit at least $25,000 but less than $100,000 1-13601-13671-1371 CR, §8-301(b), (c)CR, §8-301(g)(1)(ii)(penalty) Felony 10Y Property V $15,000 206-3 Identity FraudPossess, obtain personally identifying information or willfully assume the identity of another, benefit at least $1,500 but less than $25,000 1-13611-13681-1372 CR, §8-301(b), (c)CR, §8-301(g)(1)(i)(penalty) Felony 5Y Property VI $10,000 206-4 Identity FraudPossess, obtain personally identifying information or willfully assume the identity of another, benefit at least $100 but less than $1,500 1-13621-13691-1373 CR, §8-301(b), (c)CR, §8-301(g)(2)(penalty) Misd. 1Y Property VII $500 206-5 Identity FraudUse a re-encoder or skimming device for purpose of identity theft, benefit $100,000 or greater 1-13741-1379 CR, §8-301(d)CR, §8-301(g)(1)(iii)(penalty) Felony 20Y Property III $25,000 206-6 Identity FraudUse a re-encoder or skimming device for purpose of identity theft, benefit at least $25,000 but less than $100,000 1-13761-1380 CR, §8-301(d)CR, §8-301(g)(1)(ii)(penalty) Felony 10Y Property V $15,000 207 Identity FraudUse a re-encoder or skimming device for purpose of identity theft, benefit at least $1,500 but less than $25,000 1-13771-1381 CR, §8-301(d) CR, §8-301(g)(1)(i)(penalty) Felony 5Y Property VI $10,000 207-1 Identity FraudUse a re-encoder or skimming device for purpose of identity theft, benefit at least $100 but less than $1,500 1-13781-1382 CR, §8-301(d) CR, §8-301(g)(2)(penalty) Misd. 1Y Property VII $500 207-2 Identity FraudIntent to manufacture, distribute, or dispense personally identifying information 1-0921 CR, §8-301(g)(3) Felony 10Y Property V $25,000 207-3 Identity FraudFalsely represent self as another person 1-13641-1384 CR, §8-301(c)(1), (f) CR, §8-301(g)(4)(penalty) Misd. 1Y Property VII $500 207-4 Identity FraudUse an interactive computer service to disclose personal identifying information of an individual in order to annoy, threaten, embarrass, or harass 1-1363 CR, §8-301(b-1)CR, §8-301(g)(4)(penalty) Misd. 1Y Property VII $500 207-6 Identity Fraud Possess, obtain, or help another obtain a re-encoder or skimming device for purpose of identity theft 1-1383 CR, §8-301(e) CR, §8-301(g)(4) (penalty) Misd. 1Y Property VII $500 208 Identity FraudSell etc. false ID 1-04321-1434 CR, §8-302(b) Misd. 2Y Property VII $2,000 209 Identity Fraud Possess/use false government ID; display government ID of another 1-14321-1433 CR, §8-303 Misd. 6M Property VII $500 209 -1 Vacant 209 -2 Influencing or Intimidating Judicial Process Induce false testimony or avoidance of a subpoena related to felony violation of Title 5 offense or crime of violence 1-03551-0655 CR, §9-302(c)(2) Felony 20Y Person III 210 Influencing or Intimidating Judicial ProcessInduce false testimony (witness or victim intimidation) 1-15651-1566 CR, §9-302(c)(1) Misd. 10Y Person IV $5,000 211 Influencing or Intimidating Judicial ProcessInfluence, intimidate, or impede a juror, witness, or court officer 1-15711-1572 CR, §9-305(c)(1) Misd. 10Y Person IV $5,000 212 Influencing or Intimidating Judicial ProcessObstructing justice 2-5006 CR, §9-306(a) Misd. 5Y Person V $10,000 213 Influencing or Intimidating Judicial ProcessRetaliation for testimony, reporting a crime, performance of juror’s or officer of the court’s duties 1-15671-15681-15691-15701-15731-1575 CR, §9-303(c)(1) Misd. 10Y Person IV $5,000 214 Vacant 215 Vacant 215-1 Influencing or Intimidating Judicial ProcessRetaliation for testimony, reporting a crime, performance of juror’s or officer of the court’s duties, related to felony violation of Title 5 offense or crime of violence 1-03571-08871-15741-1576 CR, §9-303(c)(2) Felony 20Y Person III 215-2 Influencing or Intimidating Judicial Process Intimidating or corrupting jurors in connection with a Title 5 offense or crime of violence 1-03591-0363 CR, §9-305(c)(2) Felony 20Y Person III 215-3 Influencing or Intimidating Judicial Process Tampering with or fabricating physical evidence 1-13321-13331-1334 CR, §9-307 Misd. 3Y Person V $5,000 216 Interference with or Misuse of Government Operations Malfeasance, misconduct in office 1-01572-0645 Common law Misd. LIFE Person Drug Property IV 217 Interference with or Misuse of Government OperationsFalse alarms, fire ambulance or rescue squad calls 1-0208 1-5308 CR, §9-604(a) Misd. 5Y Property V $5,000 218 Interference with or Misuse of Government OperationsHinder police officer 1-0043 Common law Misd. LIFE Person VI 219 Interference with or Misuse of Government OperationsInterference, obstruction or false representation of fire or emergency services personnel 1-01652-02494-53974-53984-5399 PS, §6-602 PS, §7-402 Misd. 3Y Person VII 220 Kidnapping and Related CrimesChild younger than 16 years old 4-1005 CR, §3-503(a)(2) Felony 30Y ♦ Person II 221 Kidnapping and Related CrimesKidnapping—generally 3-1005 CR, §3-502(a) Felony 30Y ♦ Person II 222 Kidnapping and Related Crimes False imprisonment by incarcerated individual 3-5730 CS, §8-801 Felony 30Y Person II 223 Kidnapping and Related CrimesAbduction—child younger than 12 years old 1-10051-0163 CR, §3-503(a)(1) Felony 20Y ♦ Person III 224 Kidnapping and Related Crimes False imprisonment 1-0042 Common law Misd. LIFE Person V 225 Kidnapping and Related Crimes Abduction—child younger than16 years old by relative in State 1-03641-03651-03662-1005 FL, §9-304FL, §9-307(a) (penalty) Misd. 30D Person VII $250 226 Kidnapping and Related Crimes Abduction—child younger than 16 years old by relative outside State 30 days or less 1-0736 1-0737 1-0738 1-0739 FL, §9-305(a)FL, §9-307(b)(penalty) Felony 1Y Person VII $1,000 227 Kidnapping and Related Crimes Abduction—child younger than16 years old by relative outside State more than 30 days 1-07461-07471-07481-0749 FL, §9-305(a)FL, §9-307(c)(penalty) Felony 3Y Person VI $2,500 227-1 Kidnapping and Related Crimes Abduction—International parental kidnapping 1-0906 FL, §9-305(b)FL, §9-307(d)(penalty) Felony 5Y Person V $5,000 227-2 Labor Trafficking Take, place, etc., another by force, fraud, or coercion to provide services or labor; benefit from services or labor induced by force, fraud, or coercion; aid or conspire with another to commit these offenses 1-17211-17221-17231-1724 CR, §3-1202 Felony 25Y Person II $15,000 228 LotteriesLottery offenses, subsequent 1-02861-02871-39152-39184-39215-3921 CR, §12-210 Misd. 5Y Property VI $5,000 229 LotteriesLotteries—hold lottery or sell lottery device 1-39182-39252-3930 CR, §12-203 Misd. 12M 3M Property VII $200-$1,000 230 LotteriesLotteries—importing lottery device or possession of lottery records or money 1-02861-02872-3918 CR, §12-205 Misd. 1Y Property VII $1,000 231 LotteriesLotteries—keep place for selling lottery device or allow property to be used for selling lottery device 4-39215-3921 CR, §12-204 Misd. 1Y Property VII $1,000 232 LotteriesProhibited acts relating to State lottery 1-01142-1173 SG, §9-124 Misd. 3Y Property VII $2,500 233 Vacant 234 Machine GunsWeapons—possession or use of a machine gun in commission of a crime of violence 2-5299 CR, §4-404 Felony 20Y Person III 235 Machine GunsPossess, use a machine gun for an aggressive purpose 1-1314 CR, §4-405 Misd. 10Y Person IV 236 Malicious Destruction and Related CrimesThrowing missiles into occupied vehicle or instrumentality of public transportation 1-2903 CR, §6-302(a) Misd. 1Y Person VII $500 237 Malicious Destruction and Related CrimesDestruction of property, less than $1,000 3-4025 CR, §6-301(c) Misd. 60D Property VII $500 238 Malicious Destruction and Related CrimesDestruction of property, $1,000 or greater 3-4030 3-4035 CR, §6-301(b) Misd. 3Y Property VII $2,500 239 Malicious Destruction and Related CrimesSerial numbers, removing, etc. 1-0291 2-2800 CR, §6-306(a) Misd. 18M Property VII $500 239-1 Malicious Destruction and Related CrimesSell or possess stolen serial number or vehicle identification plate, etc. 2-28102-2820 CR, §6-307 Misd. 18M Property VII $500 240 Manslaughter and Related Crimes Manslaughter—voluntary 1-0910 CR, §2-207 Felony 10Y ♦ Person IV $500 241 Manslaughter and Related CrimesManslaughter—involuntary 1-0911 CR, §2-207 Felony 10Y Person IV $500 242 Manslaughter and Related CrimesManslaughter—by vehicle or vessel, 1st offense 1-0909 CR, §2-209(d)(1) Felony 10Y Person IV $5,000 242-1 Manslaughter and Related CrimesManslaughter—by vehicle or vessel, subsequent CR, §2-209(d)(2) Felony 15Y Person III $10,000 242-2 Manslaughter and Related CrimesCriminally negligent manslaughter by vehicle or vessel, 1st offense 1-1611 CR, §2-210(f)(1) Misd. 3Y Person VII $5,000 242-3 Manslaughter and Related CrimesCriminally negligent manslaughter by vehicle or vessel, subsequent CR, §2-210(f)(2) Felony 5Y Person V $10,000 243 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while under the influence of alcohol, 1st offense 1-0900 CR, §2-503(c)(1) Felony 5Y Person V $5,000 243-1 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while under the influence of alcohol, subsequent CR, §2-503(c)(2) Felony 10Y Person IV $10,000 243-2 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by alcohol, 1st offense 1-0693 CR, §2-504(c)(1) Felony 3Y Person VI $5,000 243-3 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by alcohol, subsequent CR, §2-504(c)(2) Felony 5Y Person V $10,000 243-4 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by drugs, 1st offense 1-1720 CR, §2-505(c)(1) Felony 5Y Person V $5,000 243-5 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by drugs, subsequent CR, §2-505(c)(2) Felony 10Y Person IV $10,000 243-6 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by CDS, 1st offense 1-1436 CR, §2-506(c)(1) Felony 5Y Person V $5,000 244 Manslaughter and Related CrimesNegligent homicide by motor vehicle or vessel while impaired by CDS, subsequent CR, §2-506(c)(2) Felony 10Y Person IV $10,000 244-1 Marriage, Crimes AgainstBigamy 1-3804 CR, §10-502(b) Misd. 9Y Person VI 244-2 Maryland Credit Services Businesses ActViolation of any provision of Maryland Credit Services Businesses Act CL, §14-1915(penalty) Misd. 3Y Property VI $5,000 244-3 Motor Vehicle OffenseReckless driving TR, §21-901.1(c)(1) Misd. 60D Person VII $1,000 244-4 Motor Vehicle OffenseDriving while impaired by alcohol, 1st offense TR, §21-902(b)(1)(ii)(1) Misd. 2M Person VII $500 244-5 Motor Vehicle OffenseDriving while impaired by alcohol, 2nd offense TR, §21-902(b)(1)(ii)(2) Misd. 1Y Person VII $500 244-6 Motor Vehicle OffenseDriving while impaired by alcohol, 3rd offense TR, §21-902(b)(1), (h) Misd. 5Y Person V $5,000 244-7 Motor Vehicle OffenseDriving while impaired by alcohol, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(b)(1), (i) Misd. 10Y Person IV $10,000 245 Motor Vehicle OffenseDriving while impaired by alcohol, while transporting a minor, 1st offense TR, §21-902(b)(2)(ii)(1) Misd. 1Y Person VII $1,200 245-1 Motor Vehicle OffenseDriving while impaired by alcohol, while transporting a minor, 2nd offense TR, §21-902(b)(2)(ii)(2) Misd. 2Y Person VI $2,400 245-2 Motor Vehicle OffenseDriving while impaired by alcohol, while transporting a minor, 3rd offense TR, §21-902(b)(2), (h) Misd. 5Y Person V $5,000 245-3 Motor Vehicle OffenseDriving while impaired by alcohol, while transporting a minor, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(b)(2), (i) Misd. 10Y Person VI $10,000 245-4 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, 1st offense TR, §21-902(c)(1)(ii)(1) Misd. 2M Person VII $500 245-5 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, 2nd offense TR, §21-902(c)(1)(ii)(2) Misd. 1Y Person VII $500 245-6 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, 3rd offense TR, §21-902(c)(1), (h) Misd. 5Y Person V $5,000 245-7 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(c)(1), (i) Misd. 10Y Person IV $10,000 245-8 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, while transporting a minor, 1st offense TR, §21-902(c)(2)(ii)(1) Misd. 1Y Person VII $1,200 245-9 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, while transporting a minor, 2nd offense TR, §21-902(c)(2)(ii)(2) Misd. 2Y Person VI $2,400 245-10 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, while transporting a minor, 3rd offense TR, §21-902(c)(2), (h) Misd. 5Y Person V $5,000 245-11 Motor Vehicle OffenseDriving while impaired by drugs or drugs and alcohol, while transporting a minor, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(c)(2), (i) Misd. 10Y Person IV $10,000 245-12 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, 1st offense TR, §21-902(d)(1)(ii)(1) Misd. 1Y Person VII $1,200 245-13 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, 2nd offense TR, §21-902(d)(1)(ii)(2), (f)(3)(i) Misd. 2Y Within 5 years of prior conviction—MM 5 days Person VI $2,400 245-14 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, 3rd offense TR, §21-902(d)(1), (f)(3)(ii), (h) Misd. 5Y Within 5 years of prior conviction—MM 10 days Person V $5,000 245-15 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(d)(1), (f)(3)(ii), (i) Misd. 10Y Within 5 years of prior conviction—MM 10 days Person IV $10,000 245-16 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, while transporting a minor, 1st offense TR, §21-902(d)(2)(ii)(1) Misd. 2Y Person VI $2,000 245-17 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, while transporting a minor, 2nd offense TR, §21-902(d)(2)(ii)(2), (f)(3)(i) Misd. 3Y Within 5 years of prior conviction—MM 5 days Person V $3,000 245-18 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, while transporting a minor, 3rd offense TR, §21-902(d)(2), (f)(3)(ii), (h) Misd. 5Y Within 5 years of prior conviction—MM 10 days Person V $5,000 245-19 Motor Vehicle OffenseDriving while impaired by controlled dangerous substance, while transporting a minor, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(d)(2), (f)(3)(ii), (i) Misd. 10Y Within 5 years of prior conviction—MM 10 days Person IV $10,000 245-20 Motor Vehicle OffenseDriving while under the influence of alcohol, 1st offense TR, §21-902(a)(1)(iii)(1) Misd. 1Y Person VII $1,200 245-21 Motor Vehicle OffenseDriving while under the influence of alcohol, 2nd offense TR, §21-902(a)(1)(iii)(2), (f)(2)(i) Misd. 2Y Within 5 years of prior conviction—MM 5 days Person VI $2,400 245-22 Motor Vehicle OffenseDriving while under the influence of alcohol, 3rd offense TR, §21-902(a)(1), (f)(2)(ii), (h) Misd. 5Y Within 5 years of prior conviction—MM 10 days Person V $5,000 245-23 Motor Vehicle OffenseDriving while under the influence of alcohol, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(a)(1), (f)(2)(ii), (i) Misd. 10Y Within 5 years of prior conviction—MM 10 days Person IV $10,000 245-24 Motor Vehicle OffenseDriving while under the influence of alcohol, while transporting a minor, 1st offense TR, §21-902(a)(2)(ii)(1) Misd. 2Y Person VI $2,000 245-25 Motor Vehicle OffenseDriving while under the influence of alcohol, while transporting a minor, 2nd offense TR, §21-902(a)(2)(ii)(2), (f)(2)(i) Misd. 3Y Within 5 years of prior conviction—MM 5 days Person V $3,000 245-26 Motor Vehicle OffenseDriving while under the influence of alcohol, while transporting a minor, 3rd offense TR, §21-902(a)(2), (f)(2)(ii), (h) Misd. 5Y Within 5 years of prior conviction—MM 10 days Person V $5,000 245-27 Motor Vehicle OffenseDriving while under the influence of alcohol, while transporting a minor, 4th or subsequent offense, or previous conviction for negligent homicide or injury by motor vehicle or vessel while under the influence or impaired TR, §21-902(a)(2), (f)(2)(ii), (i) Misd. 10Y Within 5 years of prior conviction—MM 10 days Person IV $10,000 246 Motor Vehicle Offense Fleeing or eluding police, 1st offense TR, §21-904(f)(1)(i) Misd. 1Y Person VII $1,000 247 Motor Vehicle Offense Fleeing or eluding police, subsequent TR, §21-904(f)(1)(ii) Misd. 2Y Person VI $1,000 248 Motor Vehicle Offense Fleeing or eluding police that results in bodily injury to another person TR, §21-904(d)(1), (f)(2) Misd. 3Y Person V $5,000 249 Motor Vehicle Offense Fleeing or eluding police that results in death of another person TR, §21-904(f)(3) Misd. 10Y Person IV $5,000 250 Motor Vehicle Offense Fleeing or eluding police attempting to apprehend driver for commission of crime of violence TR, §21-904(e), (f)(2) Misd. 3Y Person V $5,000 250-1 Motor Vehicle OffenseDriver failing to remain at scene of accident that results only in damage to attended vehicle or property TR, §20-103 Misd. 2M Property VII $500 250-2 Motor Vehicle OffenseFailure of driver involved in accident with unattended vehicle or property to notify the driver, owner, or person in charge of the damaged vehicle or property TR, §20-105 Misd. 2M Property VII $500 250-3 Motor Vehicle OffenseDriver failing to render reasonable assistance to person injured in an accident TR, §20-104 Misd. 2M Person VII $500 251 Motor Vehicle Offense Driver failing to remain at scene of accident that results in bodily injury to another person TR, §20-102(c)(2)(i) Misd. 1Y Person VII $3,000 252 Motor Vehicle Offense Driver failing to remain at scene of accident that results in death of another person TR, §20-102(c)(2)(ii) Misd. 5Y Person V $5,000 253 Motor Vehicle Offense Driver failing to remain at scene of accident with knowledge of serious bodily injury to another person TR, §20-102(c)(3)(i) Felony 5Y Person V $5,000 254 Motor Vehicle Offense Driver failing to remain at scene of accident with knowledge of death of another person TR, §20-102(c)(3)(ii) Felony 10Y Person IV $10,000 254-1 Motor Vehicle Offense Commit or engage another to commit a violation of motor vehicle law for the purpose of recording the violation without permission TR, §21-1126 Misd. 1Y Person VII $1,000 254-2 Motor Vehicle Offense Use of text messaging device or handheld telephone while driving that causes an accident resulting in death or serious bodily injury TR, §21-1124.3 Misd. 1Y Person VII $5,000 255 Motor Vehicle Offense Violation of ignition interlock system participation requirements, 1st offense TR, §16-113(l)(2)(i) Misd. 1Y Property VII $1,000 256 Motor Vehicle Offense Violation of ignition interlock system participation requirements, subsequent TR, §16-113(l)(2)(ii) Misd. 2Y Property VI $1,000 256-1 Motor Vehicle Offense Driving without having been issued a license, 1st offense TR, §16-101(c)(1) Misd. 60D Property VII $500 257 Motor Vehicle Offense Driving without having been issued a license, subsequent TR, §16-101(c)(2) Misd. 1Y Property VII $500 258 Motor Vehicle Offense Driving while license is refused, canceled, suspended, or revoked, 1st offense TR, §16-303(k)(1)(i) Misd. 1Y Property VII $1,000 258-1 Motor Vehicle Offense Driving while license is refused, canceled, suspended, or revoked, subsequent offense within 3 years of prior conviction TR, §16-303(k)(1)(ii) Misd. 2Y Property VI $1,000 259 Motor Vehicle Offense Driving commercial motor vehicle while license is refused, canceled, suspended, or revoked TR, §16-808(d)(1) Misd. 5Y Property VI $10,000 260 Motor Vehicle Offense Driver of commercial vehicle not in possession of license, 1st offense TR, §16-808(d)(2)(i) Misd. 6M Property VII $1,000 261 Motor Vehicle Offense Driver of commercial vehicle not in possession of license, 2nd offense TR, §16-808(d)(2)(ii) Misd. 1Y Property VII $2,000 262 Motor Vehicle Offense Driver of commercial vehicle not in possession of license, 3rd or subsequent offense TR, §16-808(d)(2)(iii) Misd. 2Y Property VI $3,000 263 Motor Vehicle Offense Obtaining commercial driver's license by misrepresentation TR, §16-813.1 Misd. 5Y Property VI $10,000 264 Motor Vehicle Offense Providing false evidence of required security, 1st offense 1-1298 TR, §17-110(b)(1) Misd. 1Y Property VII $1,000 265 Motor Vehicle Offense Providing false evidence of required security, subsequent TR, §17-110(b)(2) Misd. 2Y Property VI $1,000 266 Motor Vehicle Offense Drive vehicle or permit another to drive vehicle knowing that vehicle is not covered by the required security, 1st offense TR, §17-107(d)(1) Misd. 1Y Property VII $1,000 267 Motor Vehicle Offense Drive vehicle or permit another to drive vehicle knowing that vehicle is not covered by the required security, subsequent TR, §17-107(d)(2) Misd. 2Y Property VI $1,000 267-1 Motor Vehicle Offense Knowingly sell, offer, install, reinstall, import, misrepresent, etc., a counterfeit, nonfunctional, or no airbag TR, §22-419 Misd. 5Y Property VI $5,000 268 Motor Vehicle Offense Possession of motor vehicle master key TR, §14-103 Misd. 1Y Property VII $500 268-1 Motor Vehicle OffenseConduct the business of a vehicle dealer without a license TR, §15-302 Misd. 1Y Property VII $5,000 268-2 Motor Vehicle OffenseConduct the business of an automotive dismantler and recycler or a scrap processor without a license, subsequent TR, §15-502(e)(2) Misd. 1Y Property VII $2,000 268-3 Motor Vehicle OffenseAct as a vehicle salesman without a license, subsequent TR, §15-402(c)(2) Misd. 1Y Property VII $2,000 268-4 Motor Vehicle OffenseTransportation of hazardous materials, subsequent TR, §21-1411(d)(2) Misd. 1Y Property VII $2,000 269 Vacant 270 Vacant 271 Vacant 272 Vacant 273 Vacant 274 Vacant 275 Vacant 276 Murder1st degree 1-0990 CR, §2-201 Felony LIFE ♦ LIFE Person I 277 Vacant 278 Vacant 279 Vacant 280 Murder1st degree, attempted 2-0910 CR, §2-205 Felony LIFE ♦ Person II 280-1 Murder 1st degree, conspiracy 1C0990 Common law Misd. LIFE Person I 281 Murder 1st degree, solicitation 1S0990 Common law Misd. LIFE Person II 282 Murder2nd degree 1-1107 CR, §2-204 Felony 40Y ♦ Person II 283 Murder 2nd degree, attempted 2-0920 CR, §2-206 Felony 30Y ♦ Person III 284 Nudity and Related Sexual DisplaysIndecent exposure 1-3605 CR, §11-107(d)(1) Misd. 3Y Person VI $1,000 284-1 Nudity and Related Sexual DisplaysIndecent exposure of an incarcerated individual to correctional officer 2-1133 CS, § 8-803 Misd. 3Y Person VI $1,000 284-2 Nudity and Related Sexual Displays Indecent exposure when person knows or should know that a minor is present 1-1807 CR, §11-107(d)(2) Misd. 5Y Person V $10,000 285 Obscene MatterChild pornography, 1st offense 1-0298 1-0299 1-0300 1-0315 2-3799 CR, §11-207(b)(1) Felony 10Y Person IV $25,000 286 Obscene MatterChild pornography-subsequent 1-0298 1-0299 1-0300 1-0315 2-3799 CR, §11-207(b)(2) Felony 20Y Person III $50,000 287 Obscene MatterSending or bringing into State for sale or distribution, publishing, etc., subsequent 1-3705 1-0294 1-0295 1-0296 CR, §11-202(b)(2) Misd. 3Y Person VI $5,000 288 Obscene MatterObscene performances in Anne Arundel, Charles, Howard, Somerset, Wicomico, Worcester counties, subsequent CR, §11-204(c)(2) Misd. 3Y Person VI $5,000 289 Obscene Matter Sale or display of certain items to persons younger than 18 years old, subsequent 1-3799 1-0297 CR, §11-203(d)(2) Misd. 3Y Person VI $5,000 290 Obscene MatterPossess, retain, access, or view visual representations of persons younger than 16 years old engaged in certain sexual acts, subsequent 1-1756 1-1796 CR, §11-208(c)(2) Felony 10Y Person IV $10,000 291 Obscene MatterRequiring acceptance of obscene matter as condition to sale, etc.; denial of franchise, etc., for failure to accept obscene matter, subsequent CR, §11-206(b)(2) Misd. 3Y Person VI $5,000 292 Obscene MatterHire minor to distribute obscene material 3-3799 CR, §11-209(a) Misd. 1Y Person VII $1,000 293 Obscene MatterSending or bringing into State for sale or distribution, publishing, etc., 1st offense 1-3705 1-0294 1-0295 1-0296 CR, §11-202(b)(1) Misd. 1Y Person VII $1,000 294 Obscene MatterObscene performances in Anne Arundel, Charles, Howard, Somerset, Wicomico, Worcester counties, 1st offense CR, §11-204(c)(1) Misd. 1Y Person VII $1,000 295 Obscene MatterSale or display of certain items to persons younger than 18 years old, 1st offense 1-02971-06351-3799 CR, §11-203(d)(1) Misd. 1Y Person VII $1,000 296 Obscene MatterPossess, retain, access, or view visual representations of persons younger than 16 years old engaged in certain sexual acts, 1st offense 1-17561-1796 CR, §11-208(c)(1) Misd. 5Y Person V $2,500 297 Obscene MatterRequiring acceptance of obscene matter as condition to sale, etc.; denial of franchise, etc., for failure to accept obscene matter, 1st offense CR, §11-206(b)(1) Misd. 1Y Person VII $1,000 298 Obscene MatterObscene advertising, 1st offense 1-0562 CR, §11-205(b)(1) Misd. 1Y Property VII $1,000 299 Obscene MatterObscene advertising, subsequent CR, §11-205(b)(2) Misd. 3Y Property VII $5,000 300 PerjuryPerjury—subornation of perjury 1-5004 CR, §9-102 Misd. 10Y Person IV 301 Perjury Perjury—willfully filing false tax returns 2-1180 TG, §13-1002CR, §9-101 (penalty) Misd. 10Y Property IV 301-1 Perjury Perjury—willfully make a false, fraudulent, or misleading statement under oath in a campaign finance report; submit a campaign finance report on behalf of another person without their consent 1-0996 EL, §14-109(c) CR, §9-101 (penalty) Misd. 10Y Property IV 301-2 Perjury Perjury—willfully make a false, fraudulent, or misleading statement under oath in a statement filed by a person providing compensation to a lobbyist; make an electronic submission of a statement required by GP, §5-716 on behalf of another person without their consent GP, §5-716(n) CR, §9-101 (penalty) Misd. 10Y Property IV 302 PerjuryPerjury 1-0307 1-0308 1-0309 1-03101-5003 CR, §9-101(a) Misd. 10Y Property IV 303 PerjuryPerjury—affirmation to two contradictory statements 2-5003 CR, §9-101(c) Misd. 10Y Property IV 304 Prescription Drugs and Other SubstancesHarmful substances—distribution; possession with intent to distribute; instruction in the unlawful inhaling; or distribution of butane can to minor 1-0272 1-0273 1-0735 1-3500 CR, §5-709 Misd. 18M Drug VII $1,000 305 Prescription Drugs and Other SubstancesHarmful substances—smelling or inhaling harmful substances 1-5599 CR, §5-708(b) Misd. 6M Drug VII $500 306 Prescription Drugs and Other SubstancesPossession—compounding or selling different drug, controlled dangerous substance, medicine, etc. 1-0018 CR, §5-702 Misd. 12M 1M Drug VII $100-$500 307 Prescription Drugs and Other SubstancesPossession—prescription drugs—manufacture, distribute, etc.; obtain by fraud, etc., forgery, etc., label property, destruction 1-0010 1-0264 1-0265 1-02661-02671-02681-02691-02701-0271 CR, §5-701(d) Misd. 2Y Drug VII $1,000 307-1 Pretrial Release, Crimes InvolvingFailure to appear in connection with a felony 1-1474 CP, §5-211(c)(1) Misd. 5Y Person V $5,000 307-2 Pretrial Release, Crimes InvolvingFailure to appear in connection with a misdemeanor or for appearance as witness 1-1475 CP, §5-211(c)(2) Misd. 1Y Person VII $1,000 308 Pretrial Release, Crimes InvolvingViolate release conditions while charged with committing a sexual crime against a minor, a crime of violence, a crime against a person eligible for relief, or stalking 1-06361-14641-14651-1732 CP, §5-213.1 Misd. 90D Person VII 308-1 Prostitution and Related CrimesAbduction—Persuade, entice, secrete, or harbor individual younger than 16 years old for the purpose of committing a sexual crime 1-1336 CR, §11-305 Felony 25Y ♦ Person II $5,000 309 Vacant 310 Vacant 311 Vacant 312 Vacant 313 Vacant 313-1 Prostitution and Related CrimesReceive money from the earnings of a person engaged in prostitution 1-1090 CR, §11-304 Misd. 10Y Person IV $10,000 314 Prostitution and Related CrimesEngage in prostitution or assignation; occupy a building for prostitution or assignation 1-1093 CR, §11-303 Misd. 1Y Person VII $500 315 Prostitution and Related CrimesProcure or solicit or offer to procure or solicit prostitution or assignation 1-1730 CR, §11-306 Misd. 1Y Person VII $500 316 Prostitution and Related CrimesAllow a building to be used for prostitution or assignation; allow a person into a building for prostitution or assignation; or keep, set up, etc., a building for prostitution or assignation 1-1731 CR, §11-307 Misd. 1Y Person VII $500 317 Protected Individuals, Protected Information Publish personal information of protected individual knowing that publishing the information poses a threat to protected individual; and its publishing results in assault, harassment, trespass, or malicious destruction of property 1-1833 CJ, §3-2304 Misd. 18M Person V $5,000 318 Public FraudState health plan fraud, resulting in death 2-2125 2-2165 2-2325 2-23652-29902-2880 2-2930 2-41252-2970 CR, §8-509 CR, §8-510 CR, §8-511 CR, §8-512 CR, §8-513 CR, §8-514 CR, §8-515CR, §8-516(a)(penalty) Felony LIFE Person II $200,000 319 Public FraudState health plan fraud, resulting in serious injury 2-2120 2-21602-23202-23602-2985 2-2875 2-2925 2-4120 2-2965 CR, §8-509 CR, §8-510 CR, §8-511 CR, §8-512 CR, §8-513 CR, §8-514 CR, §8-515CR, §8-516(b)(penalty) Felony 20Y Person III $100,000 320 Public FraudPerjury—Public Assistance fraud in application 2-2607 CR, §8-504(b), CR, §9-101(penalty) Misd. 10Y Property IV $1,000 321 Public Fraud Use, with intent to defraud, of a facsimile signature, or any reproduction of it, of any authorized officer; or use with intent to defraud, of a facsimile seal, or any reproduction of it, of the State or of any of its political subdivisions 1-0715 SF, §2-305(b) Felony 10Y Property V $5,000 322 Public Fraud Violation of Architectural and Engineering Services subtitle 2-1167 SF, §13-322 Felony 10Y Property V $20,000 322-1 Public Fraud State health plan fraud, less than $1,500 2-2110 2-21502-21902-23502-29752-28652-29102-41102-2955 CR, §8-509CR, §8-510CR, §8-511CR, §8-512CR, §8-513CR, §8-514CR, §8-515CR, §8-516(d)(penalty) Misd. 3Y Property VII $50,000 323 Public FraudState health plan fraud, $1,500 or greater 2-21152-21352-2155 2-2195 2-2355 2-28702-29202-29602-29802-4115 CR, §8-509 CR, §8-510CR, §8-511 CR, §8-512 CR, §8-513 CR, §8-514 CR, §8-515 CR, §8-516(c)(penalty) Felony 5Y Property V $100,000 324 Public Fraud Falsification, concealment, etc., of material facts in connection with a procurement contract 2-1166 SF, §11-205.1(c) Felony 5Y Property VI $20,000 325 Public Fraud Minority Business Participation—Fraudulently obtain, etc. or hold certification; aid another person in fraudulently obtaining, etc. certification; willfully obstruct, impede, etc., a State official, etc., investigating the qualifications of a business entity that has requested certification; fraud in any minority business enterprise matter under this subtitle 2-1168 SF, §14-308(a)(2) Felony 5Y Property VI $20,000 326 Public Fraud Sale or purchase of food stamp benefits; or sale or purchase of merchandise with food stamp benefits, $1,000 or more HU, §5-504(c) Felony 5Y Property VI $10,000 327 Public FraudFraud—Public Assistance fraud, generally (with the exception of Medicaid fraud) 7-2607 CR, §8-503(b) Misd. 3Y Property VII $1,000 328 Public FraudFraud—Falsely obtain legal representation by the Office of the Public Defender 6-2607 CR, §8-521(b) Misd. 1Y Property VII $1,000 328-1 Public FraudFraud—Housing assistance fraud; Making false statements 1-0419 CR, §8-523(b) Misd. 3Y Property VII 329 Public Fraud Sale or purchase of food stamp benefits; or sale or purchase of merchandise with food stamp benefits, less than $1,000 1-1505 HU, §5-504(d) Misd. 3Y Property VII $1,000 330 Public FraudRequest or obtain info on HIV and/or AIDS under false pretenses or deception HG, §18-215(f)(1)(i) Misd. 5Y Property V $100,000 330-1 Public Fraud Request or obtain info on HIV and/or AIDS under false pretenses or deception with intent to sell HG, §18-215(f)(1)(ii) Misd. 10Y Property IV $250,000 331 Public Health and Safety, Crimes Against Hazardous substances—unlawfully transport, treat, store, etc., a controlled hazardous substance, knowing the violation endangers others 2-0015 EN, §7-265(d) Felony 15Y Person II $250,000 332 Public Health and Safety,Crimes AgainstHazardous substances—storing, treating, dumping, etc., in other than hazardous substance facility; transporting for treatment, storage, etc. to any place other than hazardous substance facility; falsifying required information; authorizing, directing, etc., any offense listed in this section 1-00121-55152-00122-00132-00142-0863 EN, §7-265(a) Felony 5Y Person V $100,000 333 Public Health and Safety, Crimes AgainstUnlawfully cause or unlawfully dump, deposit, throw, etc., litter greater than 500 lbs. in weight or 216 cubic feet in volume or for commercial purposes 1-0645 1-06461-1427 CR, §10-110(f)(2)(iii) Misd. 5Y Property VI $30,000 333-1 Public Health and Safety, Crimes AgainstDisposing of scrap tires for monetary or financial gain by any means other than through a licensed scrap tire hauler or by delivering the tires to an approved facility 1-1773 EN, §9-228(f)(2)EN, §9-268.1(a)(2)(penalty) Misd. 5Y Property VI $25,000 334 Public Health and Safety, Crimes Against Hazardous substances—failure to meet requirement for generators; failure to meet standards for hauler certificate or driver certificate; violations of restrictions on transporting controlled hazardous substances 1-0618 EN, §7-265(b) Misd. 3Y Person VII $50,000 334-1 Public Health and Safety, Crimes Against Install, alter, or extend water supply systems, sewerage systems, or refuse disposal systems without a permit, etc., 1st offense 1-0726 EN, §9-204EN, §9-343(a)(1)(i)(penalty) Misd. 1Y Property VII $25,000 334-2 Public Health and Safety,Crimes AgainstInstall, alter, or extend water supply systems, sewerage systems, or refuse disposal systems without a permit, etc., subsequent EN, §9-204 EN, §9-343(a)(1)(ii)(penalty) Misd. 2Y Property VII $50,000 per day 334-3 Public Health and Safety,Crimes AgainstViolation of any provision of or failure to perform any duty imposed by a rule, regulation, order, or permit adopted or issued under Environment Article, Title 9, Subtitle 2, 1st offense EN, §9-343(a)(1)(i)(penalty) Misd. 1Y Property VII $25,000 334-4 Public Health and Safety,Crimes AgainstViolation of any provision of or failure to perform any duty imposed by a rule, regulation, order, or permit adopted or issued under Environment Article, Title 9, Subtitle 2, subsequent EN, §9-343(a)(1)(ii)(penalty) Misd. 2Y Property VII $50,000 per day 335 Public Health and Safety,Crimes Against Water pollution—discharge pollutant into State waters, 1st offense 1-5516 EN, §9-343(a)(1)(i)EN, §9-322(penalty) Misd. 1Y Property VII $25,000 336 Public Health and Safety,Crimes Against Water pollution—discharge pollutant into State waters, subsequent EN, §9-322 EN, §9-343(a)(1)(ii) (penalty) Misd. 2Y Property VII $50,000per day 337 Public Health and Safety, Crimes Against Water pollution—false statements in required documents 1-0895 EN, §9-343(b) Misd. 2Y Property VII $50,000 338 Public Health and Safety,Crimes AgainstUnlawfully cause or unlawfully dump, deposit, throw, etc., litter, greater than 100 lbs. in weight or 27 cubic feet in volume 1-06431-06441-1426 CR, §10-110(f)(2)(ii) Misd. 1Y Property VII $10,000 338-1 Public Health and Safety,Crimes AgainstFalsifying permits, licenses, etc., to demonstrate compliance with environmental regulatory requirements 1-05541-0555 EN, §1-302 Misd. 2Y Property VII $50,000 338-2 Public Health and Safety,Crimes AgainstPurchase, sell, transfer, or obtain any stem cell material donated in accordance with EC, §10-438 for financial gain or advantage EC, §10-439 Misd. 3Y Property VI $50,000 338-3 Public Health and Safety,Crimes AgainstConducting or attempting to conduct human cloning EC, §10-440 Felony 10Y Person IV $200,000 338-4 Public Health and Safety,Crimes AgainstWillfully, maliciously, or with intent, setting on fire, or causing to be set on fire, any woods, brush, grass, grain, or stubble NR, §5-704(a) Misd. 5Y 30D Property VI $250-$2,000 339 Railroads, Crimes InvolvingObstruct, break, damage, etc., railroad with intent to obstruct, overthrow and direct from the tracks a railroad vehicle 3-5740 3-5750 CR, §6-502(b) Felony 10Y Property V $5,000 340 Railroads, Crimes InvolvingShoot at, throw at a railroad locomotive, motor, tender, car 3-5312 CR, §6-505(b) Misd. 5Y Property VI $1,000 341 RobberyCarjacking—armed 1-0826 CR, §3-405(c) Felony 30Y ♦ Person II 342 RobberyCarjacking—unarmed 1-0825 CR, §3-405(b) Felony 30Y ♦ Person III 343 RobberyRobbery 2-0700 CR, §3-402 Felony 15Y ♦ Person IV 344 RobberyRobbery with a dangerous weapon 2-0705 CR, §3-403(a)(1) Felony 20Y ♦ Person III 345 RobberyRobbery by display of written instrument claiming possession of dangerous weapon 2-0705 CR, §3-403(a)(2) Felony 20Y ♦ Person III 345-1 Sabotage and Related CrimesDefense related activities—Intentional defective workmanship 1-5520 CR, §9-703 Felony 10Y Property IV $10,000 345-2 Sabotage and Related Crimes Defense related activities—Intentional injury or interference with property 1-5519 CR, §9-702 Felony 10Y Property IV $10,000 345-3 School Security Disturb school operations; molest or threaten to harm an individual on school property, etc.; threaten to harm a school employee at home 1-00701-09131-1307 ED, §26-101 Misd. 6M Person VII $2,500 345-4 School Security Trespass on school grounds; refuse to leave school grounds; damage or deface school grounds 7-57078-57079-5707 ED, §26-102 Misd. 6M Property VII $1,000 346 Securities Fraud and Related Crimes Securities fraud and other violations of Maryland Securities Act 1-55741-55751-55762-06702-0671 CA, §11-705(a)(1)(penalty) Misd. 3Y Property VII $50,000 347 Securities Fraud and Related Crimes Use a senior or retiree credential or designation in a way that is misleading in connection with the offer, sale, or purchase of securities, etc. CA, §11-305CA, §11-705(a)(2)(penalty) Misd. 5Y Property V $100,000 348 Sexual CrimesRape, 1st degree 1-18121-18131-18141-18151-1816 CR, §3-303(d)(1) Felony LIFE ♦ Person I 348-1 Sexual Crimes Rape, 1st degree, in conjunction with kidnapping child younger than 16 years old 1-1817 CR, §3-303(d)(2) Felony LIFE without Parole ♦ Person I 348-2 Sexual Crimes Rape, 1st degree, subsequent 1-1812 1-1813 1-1814 1-1815 1-1816 1-1817 CR, §3-303(d)(3) Felony LIFE without Parole ♦ Person I 348-3 Sexual Crimes Rape, 1st degree, adult offender with victim younger than 13 years old 1-1818 CR, §3-303(d)(4) Felony LIFE without Parole ♦ MM*=25Y Person I 349 Sexual CrimesSex Offense, 1st degree (offense date prior to October 1, 2017) 2-1102 CR, §3-305(d)(1) Felony LIFE ♦ Person I 349-1 Sexual CrimesSex Offense, 1st degree, in conjunction with kidnapping child younger than 16 years old (offense date prior to October 1, 2017) 2-1102 CR, §3-305(d)(2) Felony LIFE without Parole ♦ Person I 349-2 Sexual Crimes Sex Offense, 1st degree, subsequent (offense date prior to October 1, 2017) 2-1102 CR, §3-305(d)(3) Felony LIFE without Parole ♦ Person I 349-3 Sexual Crimes Sex Offense, 1st degree, adult offender with victim younger than 13 years old (offense date prior to October 1, 2017) 2-1102 CR, §3-305(d)(4) Felony LIFE without Parole ♦ MM*=25Y Person I 350 Sexual CrimesAttempted rape, 1st degree 2-1120 CR, §3-309(a) Felony LIFE ♦ Person II 351 Sexual Crimes Attempted sexual offense, 1st degree (offense date prior to October 1, 2017) 2-1125 CR, §3-311(a) Felony LIFE ♦ Person II 352 Sexual CrimesRape, 2nd degree 1-1819 1-1820 1-1821 CR, §3-304(c)(1) Felony 20Y ♦ Person II 352-1 Sexual CrimesRape, 2nd degree, adult offender with victim younger than 13 years old 1-1822 1-1823 CR, §3-304(c)(2) Felony LIFE ♦ MM*=15Y Person II 353 Sexual CrimesSex Offense, 2nd degree (offense date prior to October 1, 2017) 2-3600 CR, §3-306(c)(1) Felony 20Y ♦ Person II 353-1 Sexual CrimesSex Offense, 2nd degree, adult offender with victim younger than 13 years old (offense date prior to October 1, 2017) 2-3600 CR, §3-306(c)(2) Felony LIFE ♦ MM*=15Y Person II 354 Sexual CrimesAttempted rape, 2nd degree 2-1110 CR, §3-310(a) Felony 20Y ♦ Person III 355 Sexual CrimesAttempted sexual offense, 2nd degree (offense date prior to October 1, 2017) 2-1115 CR, §3-312(a) Felony 20Y ♦ Person III 356 Sexual CrimesIncest 1-3604 CR, §3-323 Felony 10Y 1Y Person IV 356-1 Sexual CrimesSex Offense, 3rd degree (a)(1) employ or display a dangerous weapon, etc.; (a)(2) with substantially cognitively impaired, mentally incapacitated, or physically helpless individual 1-1824 1-1825 1-1826 1-1827 1-1828 CR, §3-307(a)(1)CR, §3-307(a)(2) Felony 10Y Person IV 357 Sexual CrimesSex Offense, 3rd degree (a)(3), (a)(4), (a)(5) — age based elements 1-1829 1-1830 1-1831 CR, §3-307(a)(3)CR, §3-307(a)(4)CR, §3-307(a)(5) Felony 10Y Person IV 358 Sexual CrimesSexual conduct by correctional employee with incarcerated individual 2-1130 CR, §3-314(b) Misd. 3Y Person V $3,000 359 Sexual CrimesSexual conduct with juvenile detainee 2-1132 CR, §3-314(c) Misd. 3Y Person V $3,000 359-1 Sexual CrimesSexual conduct by court-ordered services provider with person ordered to obtain services 1-1149 CR, §3-314(d) Misd. 3Y Person V $3,000 359-2 Sexual CrimesSexual conduct by law enforcement officer with victim, witness, or suspect in an open investigation; with person requesting assistance from or responding to law enforcement officer; or with person in custody of law enforcement officer 1-1462 CR, §3-314(e) Misd. 3Y Person V $3,000 360 Sexual Crimes Solicit to commit 3rd degree sex act Common law Misd. LIFE Person V 360-1 Sexual CrimesSexual solicitation of a minor or law enforcement officer posing as a minor, 1st offense 1-1604 CR, §3-324(d)(1) Felony 10Y Person IV $25,000 360-2 Sexual CrimesSexual solicitation of a minor or law enforcement officer posing as a minor, subsequent CR, §3-324(d)(2) Felony 20Y Person III $50,000 360-3 Sexual CrimesUse of personal identifying information of an individual to invite another to commit sexual crime 1-1340 CR, §3-325 Felony 20Y Person IV $25,000 361 Sexual Crimes Sex Offender—failing to register and/or providing false information, 1st offense 1-14772-1134 CP, §11-721(b)(1) Misd. 3Y Person VI $5,000 361-1 Sexual Crimes Sex Offender—failing to register and/or providing false information, subsequent CP, §11-721(b)(2) Felony 5Y Person V $10,000 361-2 Sexual Crimes Sex Offender—violation of restriction barring sex offenders from specified locations where children gather and certain school employment 1-14781-1479 CP, §11-722 Misd. 5Y Person V $5,000 361-3 Sexual Crimes Willfully and knowingly violating conditions of lifetime sexual offender supervision, 1st offense 1-0713 CP, §11-724(b)(1) Misd. 5Y Person V $5,000 361-4 Sexual Crimes Willfully and knowingly violating conditions of lifetime sexual offender supervision, subsequent 1-0713 CP, §11-724(b)(2) Felony 10Y Person IV $10,000 362 Vacant 363 Sexual CrimesSex Offense, 4th degree 1-16231-16241-16251-16264-3600 CR, §3-308(d)(1) Misd. 1Y Person VII $1,000 363-1 Sexual CrimesContinuing course of conduct which includes 3 or more acts involving 1st, 2nd, or 3rd degree sex offense or 1st or 2nd degree rape over a period of 90 days or more, with a victim younger than 14 years old 2-1136 CR, §3-315 Felony 30Y ♦ Person II 363-2 Sexual CrimesSex Offense, 4th degree, subsequent 1-16231-16241-16251-16264-3600 CR, §3-308(d)(2) Misd. 3Y Person VI $1,000 364 Sexual CrimesAdministered controlled dangerous substance before committing sex offense 2-0715 CR, §5-624(b) Misd. 1Y Person VII $25,000 364-1 Stalking and HarassmentStalking 1-6525 CR, §3-802 Misd. 5Y Person V $5,000 365 Stalking and HarassmentHarassment, 1st offense 1-0191 1-2210 1-5406 CR, §3-803(d)(1) Misd. 90D Person VII $500 365-1 Stalking and HarassmentHarassment, subsequent 1-0191 1-22101-5406 CR, §3-803(d)(2) Misd. 6M Person VII $1,000 365-2 Stalking and HarassmentAiming laser pointer at aircraft 1-1001 CR, §3-807 Misd. 3Y Person VI $2,500 365-3 Stalking and HarassmentRevenge porn 1-1326 CR, §3-809 Misd. 2Y Person VII $5,000 365-4 Statewide DNA Data Base System, Crimes InvolvingImproper disclosure of DNA information to a person/agency not entitled to receive the information PS, §2-512(a), (e) Felony 5Y Property V $5,000 365-5 Statewide DNA Data Base System, Crimes InvolvingFraudulent obtainment of DNA information from the Statewide DNA data base/repository PS, §2-512(b), (e) Felony 5Y Property V $5,000 366 Statewide DNA Data Base System, Crimes InvolvingWillfully testing DNA for information not related to identification of individuals PS, §2-512(c), (e) Felony 5Y Property V $5,000 366-1 Stored Wire and Electronic Communications Access, Crimes Involving Obtaining, altering, or preventing authorized access to a wire or electronic communication while it is in electronic storage in an electronic communications system, 1stoffense CJ, §10-4A-02(b)(1)(i) Misd. 1Y Property VII $250,000 366-2 Stored Wire and Electronic Communications Access, Crimes Involving Obtaining, altering, or preventing authorized access to a wire or electronic communication while it is in electronic storage in an electronic communications system, subsequent CJ, §10-4A-02(b)(1)(ii) Misd. 2Y Property VI $250,000 366-3 Surveillance and Other Crimes Against Privacy Visual and camera surveillance, private place 1-07161-07171-17591-17603-5715 CR, §3-902CR, §3-903 Misd. 1Y Person VII $2,500 367 Surveillance and Other Crimes Against Privacy Wiretapping—breaking and entering, etc., to place, adjust, or remove equipment without a court order 1-5580 CJ, §10-412 Felony 10Y Property V 368 Surveillance and Other Crimes Against Privacy Wiretapping—unlawful interception of communications 1-55951-5705 CJ, §10-402(a) Felony 5Y Property V $10,000 369 Surveillance and Other Crimes Against Privacy Divulging contents of communications CJ, §10-402(e) Misd. 5Y Property VI $10,000 370 Surveillance and Other Crimes Against Privacy Manufacture, possession, or sale of intercepting device 1-5579 CJ, §10-403(a) Felony 5Y Property VI $10,000 371 Surveillance and Other Crimes Against Privacy Giving notice of interception of wire, oral, or electronic communications in order to obstruct, impede or prevent such interception 2-0647 CJ, §10-414(b) Felony 5Y Property VI $10,000 372 Surveillance and Other Crimes Against PrivacyUnauthorized disclosure of information obtained or generated by examining licensed persons, etc. FI, §2-117 Misd. 2Y Property VI $1,000 372-1 Surveillance and Other Crimes Against PrivacyUnauthorized disclosure of information obtained or generated by examining banking institutions and credit unions, etc. FI, §2-117.1 Misd. 2Y Property VI $1,000 373 Telecommunications and Electronics, Crimes Involving Motion Picture Theaters—prohibition against audiovisual recording 1-0336 CR, §7-308(e) CR, §7-309 Misd. 1Y Property VII $2,500 373-1 Telecommunications and Electronics, Crimes Involving Motion Picture Theaters—prohibition against audiovisual recording, subsequent CR, §7-308(e) CR, §7-309 Misd. 3Y Property VI $10,000 373-2 Telecommunications and Electronics, Crimes Involving Unlawfully access, attempt to access, cause access to, etc., a computer, computer network, etc.; copy, attempt to copy, possess, etc., the contents of all or part of a computer database 1-09141-2804 CR, §7-302(d)(1) Misd. 3Y Property VI $1,000 374 Telecommunications and Electronics, Crimes InvolvingUnlawfully access, attempt to access, cause access to, etc., a computer, computer network, etc., to cause malfunction, interruption, alteration, damage, etc.; Unlawfully possess, identify, distribute, etc., a valid access code, less than $10,000 1-0470 1-0471 1-0472 CR, §7-302(d)(2)(ii) Misd. 5Y Property V $5,000 375 Telecommunications and Electronics, Crimes InvolvingUnlawfully access, attempt to access, cause access to, etc., a computer, computer network, etc., to cause malfunction, interruption, alteration, damage, etc.; Unlawfully possess, identify, distribute, etc., a valid access code, $10,000 or greater 1-0495 1-04961-0497 CR, §7-302(d)(2)(i) Felony 10Y Property IV $10,000 376 Telecommunications and Electronics, Crimes InvolvingUnauthorized computer access for sabotage of State government, public utilities, other energy infrastructure, health care facilities, or public schools, less than $10,000 1-0638 CR, §7-302(d)(3)(ii) Misd. 5Y Property V $25,000 376-1 Telecommunications and Electronics, Crimes InvolvingUnauthorized computer access for sabotage of State government, public utilities, other energy infrastructure, health care facilities, or public schools, $10,000 or greater 1-1085 CR, §7-302(d)(3)(i) Felony 10Y Property IV $100,000 376-2 Telecommunications and Electronics, Crimes InvolvingKnowingly possess ransomware with the intent to use the ransomware for the purpose of introduction into the computer, computer network, or computer system of another person without the authorization of the other person 1-1086 CR, §7-302(d)(4) Misd. 2Y Property V $5,000 376-3 Telecommunications and Electronics, Crimes Involving Taking certain actions with the intent to interrupt or impair the functioning of a public safety answering point 1-2231 CR, §7-302(d)(5) Felony 5Y Property V $25,000 377 Telecommunications and Electronics, Crimes InvolvingUse of electronic communication to alarm or seriously annoy another; or to inflict serious emotional distress on a minor or place a minor in fear of death or serious bodily injury; or that has the effect of intimidating or harassing a minor and causing physical injury or serious emotional distress 1-17121-17131-17141-17151-1716 CR, §3-805(b)(1)-(5)CR, §3-805(e)(1)(penalty) Misd. 3Y Person VI $10,000 377-1 Telecommunications and Electronics, Crimes InvolvingUse of electronic communication to alarm or seriously annoy another, etc., with the intent to induce a minor to commit suicide 1-1717 CR, §3-805(b)(6)CR, §3-805(e)(2)(penalty) Misd. 10Y Person IV $10,000 378 Telecommunications and Electronics, Crimes InvolvingRecord/sell, etc., unauthorized performance, 1st offense 1-0330 1-0331 1-0332 3-2602 CR, §7-308CR, §7-309 Misd. 1Y Property VII $2,500 379 Telecommunications and Electronics, Crimes InvolvingRecord/sell, etc., unauthorized performance, subsequent 1-0330 1-0331 1-0332 3-2602 CR, §7-308 CR, §7-309 Misd. 3Y Property VII $10,000 380 Telecommunications and Electronics, Crimes InvolvingTelephone, unlawful use of 1-0340 1-0341 1-5309 CR, §3-804(a) Misd. 3Y Property VII $500 381 Telecommunications and Electronics, Crimes InvolvingUnauthorized connections, etc.; tampering or interfering with meters, poles, wires, etc. 1-0215 1-0217 1-2608 CR, §6-303 Misd. 6M Property VII $500 381-1 Telecommunications and Electronics, Crimes InvolvingObtaining, selling, etc., telephone record without authorization 1-0593 CR, §7-304 Misd. 2Y Property VII $2,000 382 Telecommunications and Electronics, Crimes InvolvingManufacture, sell, use, etc., a code grabbing device with the intent for the code to be used in the commission of a crime CR, §7-301(b) Misd. 1Y Property VII $1,000 382-1 Telecommunications and Electronics, Crimes InvolvingElectronic security system blockers 1-1472 CR, §7-301(c) Misd. 1Y Property VII $1,000 383 Theft, Crimes InvolvingFelony theft or theft-scheme, $100,000 or greater 1-11341-1303 CR, §7-104(g)(1)(iii) Felony 20Y Property III $25,000 384 Theft, Crimes InvolvingFelony theft or theft scheme, at least $25,000 but less than $100,000 1-11351-1139 CR, §7-104(g)(1)(ii) Felony 10Y Property V $15,000 384-1 Theft, Crimes InvolvingFelony theft or theft scheme, at least $1,500 but less than $25,000 1-11361-1160 CR, §7-104(g)(1)(i) Felony 5Y Property VI $10,000 384-2 Theft, Crimes InvolvingMisdemeanor theft or theft scheme, at least $100 but less than $1,500, 1st offense 1-11371-1161 CR, §7-104(g)(2)(i)(1) Misd. 6M Property VII $500 384-3 Theft, Crimes InvolvingMisdemeanor theft or theft scheme, at least $100 but less than $1,500, 2nd or subsequent offense CR, §7-104(g)(2)(i)(2) Misd. 1Y Property VII $500 384-4 Theft, Crimes InvolvingMisdemeanor theft or theft scheme, less than $1,500, 5th or subsequent offense CR, §7-104(g)(4) Misd. 5Y Property VI $5,000 385 Theft, Crimes InvolvingMisdemeanor theft or theft scheme, less than $100 1-05211-1631 CR, §7-104(g)(3) Misd. 90D Property VII $500 385-1 Theft, Crimes Involving Organized retail theft, $100,000 or greater 1-2230 CR, §7-104.1(c)(3) Felony 20Y Property III $25,000 385-2 Theft, Crimes Involving Organized retail theft, at least $25,000 but less than $100,000 1-2229 CR, §7-104.1(c)(2) Felony 10Y Property V $15,000 385-3 Theft, Crimes Involving Organized retail theft, at least $1,500 but less than $25,000 1-2228 CR, §7-104.1(c)(1) Felony 5Y Property VI $10,000 386 Theft, Crimes InvolvingMotor vehicle—unlawful taking 2-0480 CR, §7-105 Felony 5Y Property V $5,000 387 Theft, Crimes InvolvingEmbezzlement, misappropriation by fiduciaries 1-0460 1-2799 CR, §7-113 Misd. 5Y 1Y Property V 387-1 Theft, Crimes InvolvingDefalcation by officer collecting revenue due State or county 2-0365 CR, §7-114 Misd. 5Y 1Y Property VI 387-2 Threat of Mass ViolenceThreatening to commit or cause a crime of violence that would place others at risk 1-1335 CR, §3-1001 Misd. 10Y Person V $10,000 387-3 TrespassTrespass on posted property or private property, 1st offense 2-2210 2-2220 2-2230 CR, §6-402(b)(1) CR, §6-403(c)(1) Misd. 3M Property VII $500 387-4 TrespassTrespass on posted property or private property, 2nd offense within 2 years after first violation CR, §6-402(b)(2)CR, §6-403(c)(2) Misd. 6M Property VII $1,000 387-5 TrespassTrespass on posted property or private property, 3rd and subsequent offense within 2 years after preceding violation CR, §6-402(b)(3)CR, §6-403(c)(3) Misd. 1Y Property VII $2,500 388 Vacant 388-1 TrespassTrespass on railroad vehicle CR, §6-503(c) Misd. 6M Property VII 388-2 Unlawful Use of GoodsUnauthorized removal of property 1-1466 1-1467 CR, §7-203 Misd. 4Y 6M Property VI $50—$100 388-3 Unlawful Use of GoodsFraud—abandoning or refusing to return leased motor vehicle 1-02201-2405 CR, §7-205(a) Misd. 1Y Property VII $500 389 Weapons Crimes—In GeneralPossess, use, wear, carry, or transport a firearm in a drug offense, 1st offense 1-04931-0487 CR, §5-621(c) Felony 20Y MM*= 5Y Person III 390 Weapons Crimes—In GeneralPossess, use, wear, carry, or transport a firearm in a drug offense, subsequent 1-04931-0487 CR, §5-621(c) Felony 20Y MM*= 10Y Person III 391 Weapons Crimes—In GeneralPossess, use, wear, carry, or transport a firearm in a drug offense, 1st offense (select firearms) 1-0493 1-0487 CR, §5-621(d) Felony 20Y MM*= 5Y Person III 392 Weapons Crimes—In General Possess, use, wear, carry, or transport a firearm in a drug offense, subsequent (select firearms) 1-04931-0487 CR, §5-621(d) Felony 20Y MM* = 20Y Person III 392-1 Weapons Crimes—In GeneralUnlawful use of firearm in commission of felony or crime of violence, 1st offense 1-5299 CR, §4-204(c)(1) Misd. 20Y ♦ MM* = 5Y Person III 392-2 Weapons Crimes—In General Unlawful use of firearm in commission of felony or crime of violence, subsequent 1-5299 CR, §4-204(c)(2) Misd. 20Y ♦ MM* = 5Y Person III 392-3 Weapons Crimes—In General Possess or use restricted firearm ammunition in a crime of violence 1-1284 CR, §4-110 Misd. 5Y Person V $5,000 393 Weapons Crimes—In GeneralCarrying or possessing firearm, knife, or deadly weapon on school property, other than handgun 1-5203 CR, §4-102 Misd. 3Y Person VI $1,000 394 Weapons Crimes—In General Wear or carry concealed dangerous weapon; concealed possession of pepper mace by a minor 1-5202 CR, §4-101(c)(1)CR, §4-101(d)(1) Misd. 3Y Person VII $1,000 395 Weapons Crimes—In GeneralWear or carry dangerous weapon, mace, or tear gas device openly with intent to injure; openly wear or carry pepper mace by a minor 1-5200 2-5200 CR, §4-101(c)(2) CR, §4-101(d)(1) Misd. 3Y Person VII $1,000 396 Weapons Crimes—In General Wear or carry dangerous weapon openly or concealed with deliberate intent to kill or injure 1-5202 1-5200 2-5200 CR, §4-101(d)(2) Misd. 3Y 3Y Person VI $1,000 397 Weapons Crimes—In GeneralMinor carrying dangerous weapon between 1 hour after sunset and 1 hour before sunrise, whether concealed or not (select counties) CR, §4-101(c)(3) Misd. 3Y Person VII $1,000 397-1 Weapons Crimes—In GeneralIllegal possession of electronic control device (e.g., stun gun, taser) while committing a separate crime of violence 1-0596 CR, §4-109(e)(2) Felony 3Y Person VI $5,000 398 Weapons Crimes—In GeneralPossession of firearm at a demonstration in a public place 3-5299 CR, §4-208(b) Misd. 1Y Person VII $1,000 398-1 Weapons Crimes—In GeneralWear, carry, or transport a firearm in an area for children or vulnerable individuals, a government or public infrastructure area, or a special purpose area 1-17911-17921-1793 CR, §4-111 Misd. 1Y Person VII $1,000 398-2 Weapons Crimes—In GeneralWear, carry, or transport a firearm while entering or trespassing in the dwelling or on the property of another without owner’s consent 1-17941-1795 CR, §6-411 Misd. 1Y Person VII $1,000 399 Weapons Crimes—In General Unlawful possession of short-barreled rifle or shotgun 2-5212 PS, §5-203(a) Misd. 5Y Person VI $5,000 399-1 Weapons Crimes—In General Sell, rent, or transfer a rifle or shotgun by a person who is not a licensee; failure of licensee to comply with State and federal laws that apply to the sale, rental, or transfer of a rifle or shotgun; etc 1-0991 PS, §5-204.1(f)(1) Misd. 6M Person VII $10,000 399-2 Weapons Crimes—In General Provide false information while conducting a transaction for the sale, rental, or transfer of a rifle or shotgun 1-0992 PS, §5-204.1(f)(2) Misd. 3Y Person VI $5,000 400 Weapons Crimes—In GeneralPossession of rifle or shotgun by restricted person (convicted of a disqualifying crime, fugitive, habitual drunkard, etc.) 1-0439 PS, §5-205 Misd. 3Y Person VI $1,000 400-1 Weapons Crimes—In GeneralPossession of rifle or shotgun after having been convicted of a crime of violence or select drug crimes 1-1610 PS, §5-206 Felony 15Y Person V 400-2 Weapons Crimes—In GeneralSell, rent, transfer, or loan a rifle or shotgun to restricted person (convicted of a disqualifying crime, fugitive, habitual drunkard, etc.) 1-0993 PS, §5-207 Misd. 5Y Person VI $10,000 400-3 Weapons Crimes—In General Purchase, receive, sell, offer to sell, or transfer an unfinished frame or receiver that has not been imprinted with a serial number in compliance with federal laws and regulations (i.e., a “ghost gun”) 1-2224 PS, §5-703(c)(1) Felony 5Y Person V $10,000 400-4 Weapons Crimes—In General Possess a firearm that has not been imprinted with a serial number in compliance with federal laws and regulations 1-1686 PS, §5-703(c)(2) Misd. 2Y Person VI $10,000 401 Weapons Crimes—In General Possess, own, carry, or transport a firearm after conviction of a Title 5 (CDS) offense 1-0692 CR, §5-622(b) Felony 5Y Person VI $10,000 402 Weapons Crimes—In General Possession of regulated firearm by restricted person (convicted of a disqualifying crime, fugitive, habitual drunkard, etc.) 1-1106 PS, §5-133(b) PS, §5-144(penalty) Misd. 5Y Person VI $10,000 403 Weapons Crimes—In General Possession of regulated firearm after having been convicted of a crime of violence or select drug crimes 1-1609 PS, §5-133(c) Felony 15Y MM* = 5Y1 Person V 404 Weapons Crimes—In General Possession of regulated firearm by person younger than 21 years old 1-5285 PS, §5-133(d)PS, §5-144(penalty) Misd. 5Y Person VI $10,000 404-1 Weapons Crimes—In General Possession of ammunition by a restricted person or after having been convicted of a crime of violence or select drug crimes 1-1285 PS, §5-133.1 Misd. 1Y Person VII $1,000 405 Weapons Crimes—In General Sell, rent, or transfer regulated firearm to restricted person (younger than 21 years old, convicted of a disqualifying crime, fugitive, habitual drunkard, etc.) 1-1105 PS, §5-134(b)PS, §5-144(penalty) Misd. 5Y Person VI $10,000 406 Weapons Crimes—In GeneralSell, rent, or transfer regulated firearm ammo to a person younger than 21 years old; or firearm other than regulated firearm, firearm ammo, mace, or another deadly weapon to a minor 1-52701-5280 PS, §5-134(d)(1) Misd. 1Y Person VII $1,000 407 Weapons Crimes—In GeneralSell, rent, or transfer a regulated firearm before the expiration of 7 days—dealer 1-5230 PS, §5-123PS, §5-144(penalty) Misd. 5Y Person VI $10,000 408 Weapons Crimes—In GeneralSell, rent, transfer, or purchase a regulated firearm before the expiration of 7 days—person 1-5240 PS, §5-124 PS, §5-144 (penalty) Misd. 5Y Person VI $10,000 409 Weapons Crimes—In GeneralSell, rent, or transfer a regulated firearm to an applicant whose application is placed on hold 1-5250 PS, §5-125 PS, §5-144(penalty) Misd. 5Y Person VI $10,000 410 Weapons Crimes—In GeneralPossess, sell, transfer, or otherwise dispose of stolen regulated firearm 1-2220 PS, §5-138 Felony 5Y Person VI $10,000 411 Weapons Crimes—In General Transport regulated firearm into State for purpose of unlawfully selling or trafficking 1-2221 PS, §5-140 Felony 10Y Person IV $25,000 412 Weapons Crimes—In General Straw purchase of regulated firearm 1-5220 PS, §5-136(b) PS, §5-144 (penalty) Misd. 5Y Person V $10,000 413 Weapons Crimes—In General Straw purchase of regulated firearm for minor or person prohibited by law from possessing a regulated firearm 1-5290 PS, §5-141 Misd. 10Y Person IV $25,000 414 Weapons Crimes—In General Multiple purchase of regulated firearms in 30-day period 1-1104 PS, §5-128PS, §5-129 Misd. 3Y Person VI $5,000 415 Weapons Crimes—In General Sell, rent, or transfer regulated firearms without license 2-5210 PS, §5-106 PS, §5-144 (penalty) Misd. 5Y Person VI $10,000 415-1 Weapons Crimes—In General Illegal sale, rental, transfer, purchase, possession, or receipt of regulated firearm 1-0642 PS, §5-144 Misd. 5Y Person VI $10,000 416 Weapons Crimes—In General Give false information in application for firearm or dealer's license 1-52102-0642 PS, §5-139 Misd. 3Y Person VI $5,000 416-1 Weapons Crimes—In General Failure by licensed firearms dealer to comply with record-keeping and reporting requirements, subsequent PS, §5-145 Misd. 3Y Person VI $10,000 417 Weapons Crimes—In General Sell, barter, display, or offer to sell or barter switchblade knife/shooting knife 1-5214 CR, §4-105(a) Misd. 12M Person VII $50-$500 418 Weapons Crimes—In General Disarm law officer 1-1460 CR, §4-103(b) Felony 10Y Person IV $10,000 419 Weapons Crimes—In General Wear bulletproof armor in the commission of a crime of violence or a drug trafficking crime 1-1450 CR, §4-106 Misd. 5Y Person V $5,000 419-1 Weapons Crimes—In General Use, possess, or purchase bulletproof body armor after being convicted of a crime of violence or a drug trafficking crime 1-1449 CR, §4-107 Misd. 5Y Person V $5,000 420 Weapons Crimes—In General Obliterate, remove, change, or alter manufacturer's identification mark or number on firearm 1-1612 PS, §5-142 PS, §5-144 (penalty) Misd. 5Y Person VI $10,000 421 Workers’ Compensation, Crimes Involving Affect or attempt to affect payment of compensation, fees, or expenses under Labor and Employment Article, Title 9, by means of a fraudulent representation, $100,000 or greater 1-0937 LE, §9-1106CR, §7-104(g)(1)(iii)(penalty) Felony 20Y Property III $25,000</text> <text>1 At the time of the offense, if more than 5 years has elapsed since the person completed serving the sentence for the most recent conviction of a crime of violence or select drug crimes (including all imprisonment, mandatory supervision, probation, and parole), the imposition of the mandatory minimum sentence is within the discretion of the court.</text> <text>MM* = Non-suspendable mandatory minimum penalty</text> <text>♦ Defined as a violent crime in Correctional Services Article, §7-101, Annotated Code of Maryland. At the time of imposition of a sentence of incarceration for these offenses, Criminal Procedure Article, §6-217, Annotated Code of Maryland indicates the Court shall state in open court the minimum time the defendant must serve before becoming eligible for parole.</text> <text>♦♦ Defined as a crime of violence only under certain circumstances specified in Criminal Law Article, §14-101, Annotated Code of Maryland.</text> <text>General Rules:</text> <paragraph num="(a)"> <text>If a Maryland offense has not been assigned a seriousness category and the offense has a maximum penalty of 1 year or less, the offense shall be assigned the lowest seriousness category (VII).</text> </paragraph> <paragraph num="(b)"> <text>If a Maryland offense has not been assigned a seriousness category and the offense has a maximum penalty greater than 1 year, the individual completing the worksheet shall use the closest analogous offense and the sentencing judge and parties shall be notified.</text> </paragraph> <paragraph num="(c)"> <text>For Prior Record calculations involving an out of jurisdiction adjudication, the individual completing the worksheet shall match the offense as closely as possible to the closest analogous Maryland offense. If no Maryland analogous offense exists, the individual completing the worksheet shall count the offense in the lowest seriousness category (VII), and shall inform the judge and parties. If the out of jurisdiction adjudication is based on an act that is not a criminal violation in Maryland (e.g., cannabis possession), then the out of jurisdiction adjudication shall be excluded from the prior adult criminal record. If there is a question as to the analogous guidelines offense for an out-of-State adjudication, that question should be brought to the attention of the judge at sentencing.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Criminal Procedure Article, §6-211, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 1, 2001 (28:8 Md. R. 763)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective December 24, 2001 (28:25 Md. R. 2193); October 23, 2006 (33:21 Md. R. 1678); November 1, 2009 (36:21 Md. R. 1593); December 1, 2014 (41:22 Md. R. 1319); November 1, 2013 (40:21 Md. R. 1780); November 1, 2016 (43:21 Md. R. 1169); November 4, 2019 (46:22 Md. R. 978); April 1, 2020 (47:6 Md. R. 342); July 1, 2020 (47:11 Md. R. 560)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C, P amended effective November 1, 2024 (51:21 Md. R. 927)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C, S amended effective November 2, 2020 (47:22 Md. R. 936)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01D, F, H amended effective November 15, 2021 (48:23 Md. R. 982)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective December 24, 2001 (28:25 Md. R. 2193); July 7, 2003 (30:13 Md. R. 854); March 28, 2005 (32:6 Md. R. 636); November 24, 2005 (32:23 Md. R. 1828); February 27, 2006 (33:4 Md. R. 353); April 10, 2006 (33:7 Md. R. 674); August 14, 2006 (33:16 Md. R. 1365); October 23, 2006 (33:21 Md. R. 1678); February 1, 2007 (34:2 Md. R. 138); January 1, 2008 (34:24 Md. R. 2159); July 1, 2008 (35:13 Md. R 1181); December 1, 2008 (35:22 Md. R. 1958); April 1, 2009 (36:6 Md. R. 492); November 1, 2009 (36:21 Md. R. 1593); May 1, 2010 (37:7 Md. R. 575); November 1, 2010 (37:21 Md. R. 1437); June 1, 2011 (38:9 Md. R. 553); November 1, 2011 (38:22 Md. R. 1347); March 1, 2012 (39:3 Md. R. 259); November 1, 2012 (39:20 Md. R. 1307); April 1, 2013 (40:6 Md. R. 475); November 1, 2013 (40:21 Md. R. 1780); April 1, 2014 (41:6 Md. R. 380); December 1, 2014 (41:22 Md. R. 1319); June 1, 2015 (42:10 Md. R. 685); February 1, 2016 (43:1 Md. R. 14); November 1, 2016 (43:21 Md. R. 1169); October 1, 2017 (44:18 Md. R. 866); November 6, 2017 (44:22 Md. R. 1038); April 1, 2018 (45:5 Md. R. 288); July 1, 2018 (45:11 Md. R. 578); November 5, 2018 (45:22 Md. R. 1027); November 4, 2019 (46:22 Md. R. 978); April 1, 2020 (47:6 Md. R. 342); June 1, 2020 (47:11 Md. R. 560); July 1, 2020 (47:11 Md. R. 560); November 2, 2020 (47:22 Md. R. 936); November 15, 2021 (48:23 Md. R. 982); February 1, 2022 (49:1 Md. R. 13); October 1, 2022 (49:18 Md. R. 819); November 14, 2022 (49:23 Md. R. 997); April 1, 2023 (50:5 Md. R. 182); July 1, 2023 (50:12 Md. R.476); November 13, 2023 (50:22 Md. R. 977); June 10, 2024 (51:11 Md. R. 580); November 1, 2024 (51:21 Md. R. 927); July 1, 2025 (52:10 Md. R. 438); October 27, 2025 (52:21 Md. R. 1025) ; January 01, 2026 (52:25 Md. R. 1269)</annotation> </annotations> </chapter> </subtitle> <subtitle num="23" heading="Alcohol, Tobacco, and Cannabis Commission"> <chapter num="01" heading="Alcoholic Beverages"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Alcohol and Tobacco Tax and Trade Bureau” means the Tax and Trade Bureau of the United States Department of the Treasury.</text> </paragraph> <paragraph num="(2)"> <text>Alcoholic Beverage.</text> <paragraph num="(a)"> <text>“Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that:</text> <paragraph num="(i)"> <text>Contains at least one-half of 1 percent of alcohol by volume; and</text> </paragraph> <paragraph num="(ii)"> <text>Is suitable for beverage purposes.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Alcoholic beverage” includes alcohol, brandy, whiskey, rum, gin, cordial, beer, and wine.</text> </paragraph> <paragraph num="(c)"> <text>“Alcoholic beverage” does not include a confectionery food product that contains up to 5 percent of alcohol by volume and is regulated by the Maryland Department of Health under Health-General Article, §21-209, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Board of license commissioners”, “local licensing board”, or “liquor control board” means a board of license commissioners or another governmental unit of a jurisdiction that issues alcoholic beverages licenses.</text> </paragraph> <paragraph num="(4)"> <text>“Commission” means the Alcohol, Tobacco, and Cannabis Commission.</text> </paragraph> <paragraph num="(5)"> <text>“Comptroller” means the Comptroller of Maryland or the Comptroller’s designee.</text> </paragraph> <paragraph num="(6)"> <text>“County” means a county of the State of Maryland or Baltimore City.</text> </paragraph> <paragraph num="(7)"> <text>“Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee.</text> </paragraph> <paragraph num="(8)"> <text>“License” means an alcoholic beverages license issued or a permit granted under Alcoholic Beverages Article, Annotated Code of Maryland</text> </paragraph> <paragraph num="(9)"> <text>“License holder” means a holder of an alcoholic beverages license, including:</text> <paragraph num="(a)"> <text>A county liquor control board and a county dispensary; and</text> </paragraph> <paragraph num="(b)"> <text>For the delivery and billing purposes of Alcoholic Beverages Article, §2-213 and Title 2, Subtitle 3, Annotated Code of Maryland, a corporation on behalf of which an individual has obtained a license.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Sale” means whenever an alcoholic beverage is offered, given, paid for, or bartered for between one or more parties.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Retail Licensees — Handling of Alcoholic Beverages and Records."> <paragraph num="A."> <text>Alcoholic Beverages — Tax Payment.</text> <paragraph num="(1)"> <text>General. Properly licensed wholesalers and nonresident winery permit holders are a licensed retail dealer's source of supply for alcoholic beverages. A licensed retail dealer may not have in possession, or permit to be kept upon the licensed premises, any alcoholic beverages which have not been purchased from a licensed wholesaler or nonresident winery permit holder unless otherwise acquired under specific authority of Alcoholic Beverages Article or Tax-General Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Licensed retail dealers with proper invoices and adequate records covering their inventory of beer, wine, and distilled spirits may presume that the Maryland alcoholic beverage tax has been paid, if acquired in accordance with the provisions of §A(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Records. Records are required to be kept covering the acquisition of all alcoholic beverages received and returned and all payments and credits applicable to them. Licensed retail dealers shall sign a delivery receipt for all alcoholic beverages received. All books, vouchers, invoices, delivery tickets, and other papers shall be kept and maintained upon the licensed premises in a permanent, neat, and accessible manner available for inspection by authorized employees of the Comptroller or Executive Director during all regular business hours. A complete record shall be kept concerning all transactions in warehouse receipts and any alcoholic beverages placed in and received from public storage.</text> </paragraph> <paragraph num="C."> <text>Decanters. Wine and liquor used by on sale licensed retail dealers in serving drinks shall be the wine and liquor received in sealed containers from licensed Maryland wholesalers, licensed manufacturers, or nonresident winery permit holders and shall be poured from those containers in the preparation of drinks on order for immediate consumption.</text> </paragraph> <paragraph num="D."> <text>Sale.</text> <paragraph num="(1)"> <text>Alcoholic beverage sales to consumers may not be solicited or consummated away from the licensed retail dealer's premises. A sale or delivery of alcoholic beverages may not be made for resale or to license holders, except to the holder of a Special and Temporary Class C license or as authorized by Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>Alcoholic beverages offered, given, or sold by an unlicensed vendor to a consumer in conjunction with, or as a part of, a service or product paid for by the consumer is a sale requiring a license under Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Delivery. Licensed retailers are authorized to deliver alcoholic beverages off premises only:</text> <paragraph num="(1)"> <text>With written approval of the board of license commissioners;</text> </paragraph> <paragraph num="(2)"> <text>Within their respective county or city; and</text> </paragraph> <paragraph num="(3)"> <text>To individuals 21 years old or older.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Wine and Distilled Spirits Credit Control."> <paragraph num="A."> <text>Late Payments.</text> <paragraph num="(1)"> <text>An invoice issued by licensed wholesalers, licensed manufacturers, or nonresident winery permit holders shall:</text> <paragraph num="(a)"> <text>Accompany each delivery of wine and distilled spirits to licensed retailers;</text> </paragraph> <paragraph num="(b)"> <text>Be delivered to licensed retailers on the invoice date, or at the latest, on the next delivery date to the area in which the licensed retailer is located; and</text> </paragraph> <paragraph num="(c)"> <text>Be collected for between the date of the invoice and the applicable due date as scheduled by the Executive Director, unless collected at the time of delivery to the licensed retailer.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>All remittances for invoices shall be deposited by the licensed wholesaler, licensed manufacturer, or nonresident winery permit holder not later than the next business day.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director shall issue a release annually to all licensed wholesalers, licensed manufacturers, and nonresident winery permit holders containing the list deadline:</text> <paragraph num="(a)"> <text>Purchase dates; and</text> </paragraph> <paragraph num="(b)"> <text>Due dates for payments.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder shall report:</text> <paragraph num="(a)"> <text>To the Executive Director those licensed retailers who do not pay an indebtedness for wine or distilled spirits on or before the established due date in the manner the Executive Director requires; and</text> </paragraph> <paragraph num="(b)"> <text>To the licensed retailer simultaneously with the report filed with the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Executive Director shall issue a list to licensed wholesalers, licensed manufacturers, and nonresident winery permit holders which shall:</text> <paragraph num="(a)"> <text>Contain the names and addresses of licensed retailers who have been reported to the Executive Director under §A(4) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Be issued 2 business days after the due date established by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The Executive Director is authorized to issue supplementary lists when deemed necessary.</text> </paragraph> <paragraph num="(7)"> <text>A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder may not sell to any licensed retailer whose name appears on a current or supplementary list issued by the Executive Director, except on a C.O.D. basis.</text> </paragraph> <paragraph num="(8)"> <text>A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder shall file a clearance report with the Executive Director on the day the indebtedness is paid in full by the licensed retailer.</text> </paragraph> <paragraph num="(9)"> <text>A clearance report is not eligible for consideration in the preparation of a subsequent credit control list unless the remittance covering the licensed retailer's indebtedness has been received by the licensed wholesaler, licensed manufacturer, or nonresident winery permit holder by the closing time of the due date. These reports shall be transmitted promptly to the Executive Director.</text> </paragraph> <paragraph num="(10)"> <text>The Executive Director shall remove from the credit control list those licensed retailers reported by a licensed wholesaler, licensed manufacturer, or nonresident winery permit holder in cases when the postmark on the envelope that accompanies the remittance is dated at least 2 days before the applicable due date.</text> </paragraph> <paragraph num="(11)"> <text>Postdated checks, notes, and other instruments of indebtedness do not constitute payment unless actually convertible into cash not later than the applicable due date or the date received in cases where the check is dated no later than the due date and was mailed in an envelope postmarked not less than 2 days before the applicable due date.</text> </paragraph> <paragraph num="(12)"> <text>Immediate action shall be taken and followed through to effect the conversion into cash of a returned check given by a licensed retail dealer in payment of a C.O.D. shipment when the licensed retail dealer's name appears on a current list or supplemental list, in order to avoid extension of undue credit.</text> </paragraph> <paragraph num="(13)"> <text>Pickup of Checks.</text> <paragraph num="(a)"> <text>Representatives of the licensed wholesaler may not pick up payments from licensed retailers for invoices due for the current list.</text> </paragraph> <paragraph num="(b)"> <text>Representatives of licensed wholesalers may pick up payments from licensed retailers who are currently on the over-30-day credit control list issued by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>Duplicate Checks.</text> <paragraph num="(a)"> <text>A licensed wholesaler and a nonresident winery permit holder may accept a duplicate check from a licensed retailer if an affidavit in a manner and form approved by the Executive Director and signed by the licensed retailer accompanies the duplicate check.</text> </paragraph> <paragraph num="(b)"> <text>The Executive Director may limit the number of duplicate checks allowed in a calendar year for the purpose of placing or removing a licensed retail account on the over-30-day credit control list.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>A licensed retailer shall be reported to the Executive Director for late payment when the payment is received after 5 p.m. on the due date by the licensed wholesaler, except when a good postmark accompanies the payment pursuant to §A(8) of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Returned Checks.</text> <paragraph num="(1)"> <text>A check received by a licensed manufacturer, licensed wholesaler, or nonresident winery permit holder which is returned by the bank unpaid is not considered remittance or payment. The amount of the check immediately shall be charged back to the account of the licensed retail dealer who was credited with it.</text> </paragraph> <paragraph num="(2)"> <text>A licensed manufacturer, licensed wholesaler, or nonresident winery permit holder receiving a check from a licensed retail dealer returned by the bank unpaid, which has or may have the effect of excluding that licensed retail dealer's name from the next list, or has or may have the effect of removing a licensed retail dealer from the current list, or was in payment of a C.O.D. shipment while that licensed retail dealer's name appeared on a current list, shall immediately make a report of the check to the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>Licensed manufacturers, licensed wholesalers, or nonresident winery permit holders may not accept other than cash in payment of a reported indebtedness or for a C.O.D. shipment from a licensed retail dealer who has within a period of 6 months given either:</text> <paragraph num="(a)"> <text>A total of two or more unpaid checks to one or more licensed manufacturers, licensed wholesalers, or nonresident winery permit holders in different list periods; or</text> </paragraph> <paragraph num="(b)"> <text>Two or more unpaid checks to one licensed manufacturer, licensed wholesaler, or nonresident winery permit holder during one or more list periods, which:</text> <paragraph num="(i)"> <text>Has or may have the effect of removing the licensed retail dealer from the current list,</text> </paragraph> <paragraph num="(ii)"> <text>Has or may have the effect of excluding the licensed retail dealer's name from the next list,</text> </paragraph> <paragraph num="(iii)"> <text>Was in payment of a C.O.D. shipment while the licensed retail dealer's name appeared on a current list.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>General Provisions.</text> <paragraph num="(1)"> <text>Information on each periodic list and supplements to it will remain in effect until the next list is issued.</text> </paragraph> <paragraph num="(2)"> <text>Failure to file correct reports to the Executive Director as provided in this regulation shall constitute a violation of Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director may also change or extend the due date with notice, under extenuating circumstances.</text> </paragraph> <paragraph num="(4)"> <text>Reports shall be made to the Executive Director in a manner provided or approved by the Executive Director.</text> </paragraph> <paragraph num="(5)"> <text>Cash as used in this regulation means U.S. Government coins and paper money, bank cashier checks, certified checks, postal and express money orders, checks of disinterested persons, and travelers' checks.</text> </paragraph> <paragraph num="(6)"> <text>In order to avoid influence over a licensed retail dealer, licensed manufacturers, licensed wholesalers, and nonresident winery permit holders are required to take definite action toward collection of accounts in arrears in excess of 90 days.</text> </paragraph> <paragraph num="(7)"> <text>Sales on a consignment or approval basis are not permitted.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Standards of Fill."> <paragraph num="A."> <text>The standard of fill for containers of wine or distilled spirits shall be identical with those of the Alcohol and Tobacco Tax and Trade Bureau.</text> </paragraph> <paragraph num="B."> <text>Beer may not be sold or delivered to a licensed wholesaler or licensed retail dealer for consumption in this State in container sizes of less than 6.33 ounces.</text> </paragraph> <paragraph num="C."> <text>Before a label may be sold and distributed in Maryland, the label shall be approved by the Alcohol and Tobacco Tax and Trade Bureau.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Uniform Newspaper and Magazine Advertising of Wines and Distilled Spirits."> <paragraph num="A."> <text>Application. A person engaged in business as a producer, manufacturer, bottler, importer, wholesaler, or retail dealer of distilled spirits or wines, directly or indirectly, or through an affiliate, may not publish or disseminate or cause to be published or disseminated in any newspaper, magazine, or similar publication any advertisement for distilled spirits or wines, unless the advertisement is in conformity with this regulation. These provisions may not apply to the publisher of any newspaper, magazine, or similar publication unless the publisher is engaged in business as a producer, manufacturer, bottler, importer, wholesaler, or retail dealer of distilled spirits or wines, directly or indirectly, or through an affiliate.</text> </paragraph> <paragraph num="B."> <text>For the purpose of this regulation, “advertisement” includes any advertisement of distilled spirits or wines through the medium of newspapers, magazines, or similar publications, except that the term may not include:</text> <paragraph num="(1)"> <text>Any label affixed to any container of distilled spirits or wines, or any individual covering, carton, or other wrapper of the container;</text> </paragraph> <paragraph num="(2)"> <text>Any editorial or other reading matter in any periodical, publication, or newspaper for the preparation of publication of which no money or other valuable consideration is paid or promised, directly or indirectly, by any person subject to this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>General Requirements and Restrictions in the Advertising of Distilled Spirits and Wines.</text> <paragraph num="(1)"> <text>Mandatory Statements.</text> <paragraph num="(a)"> <text>Responsible Advertiser. The advertisement shall state the name and address of the producer, manufacturer, bottler, importer, wholesaler, or retail dealer responsible for its publication. The street name and number may be omitted in the address.</text> </paragraph> <paragraph num="(b)"> <text>Class, Type, and Distinctive Designation. The advertisement shall contain a conspicuous statement of the class and type, or other designation of the product, corresponding with the complete designation which appears on the brand label of the product as required by federal regulations.</text> </paragraph> <paragraph num="(c)"> <text>Alcohol Content. The alcohol content shall be stated in the manner and form in which it appears on the labels of distilled spirits advertised.</text> </paragraph> <paragraph num="(d)"> <text>Percentage of Neutral Spirits and Name of Commodity. In the case of distilled spirits (other than cordials, liqueurs, and specialties) produced by blending or rectification, if neutral spirits have been used in the production of it, there shall be stated in the advertisement the percentage of neutral spirits so used and the name of the commodity from which the neutral spirits have been distilled in substantially the manner and form in which these statements appear on the labels of the distilled spirits advertised. In the case of neutral spirits or of gin produced by a process of continuous distillation, there shall be stated in the advertisement the name of the commodity from which the neutral spirits or gin has been distilled substantially in the manner and form in which this statement appears on the labels of the distilled spirits advertised.</text> </paragraph> <paragraph num="(e)"> <text>“Line” or “Brand” Advertisements. Where an advertisement does not mention a specific product but merely refers to a class of distilled spirits (such as “whiskey”) and the advertiser markets more than one brand of distilled spirits of that class, or where the advertisement refers to several classes of distilled spirits (such as “whiskey”, “brandy”, “rum”, “gin”, “liqueur”, etc.) marketed under a single brand, the only mandatory information prescribed by this subsection applicable to the advertisement would be the name and address of the responsible advertiser.</text> </paragraph> <paragraph num="(f)"> <text>Retail Dealers. Advertisements by retail dealers which merely refer to the availability of distilled spirits or wines in those establishments but which otherwise make no reference to a specific brand of distilled spirits or wines shall be subject only to the “Prohibited Statements” provisions of §C(3).</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Lettering; Conspicuousness of Mandatory Statements. Statements required by this regulation to be stated in any written, printed, or graphic advertisement shall appear in lettering or type of a size, kind, and color sufficient to render them both conspicuous and readily legible. In particular:</text> <paragraph num="(a)"> <text>Required information shall be stated against a contrasting background and in type or lettering which is at least the equivalent of eight-point type;</text> </paragraph> <paragraph num="(b)"> <text>Required information shall be so stated as to appear to be a part of the advertisement and may not be separated in any manner from the remainder of the advertisement;</text> </paragraph> <paragraph num="(c)"> <text>When an advertisement relates to more than one product, the required information shall appear in such manner as to clearly indicate the particular products to which it is applicable;</text> </paragraph> <paragraph num="(d)"> <text>Required information may not be buried or concealed in unrequired descriptive matter or decorative designs.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Prohibited Statements and Representations.</text> <paragraph num="(a)"> <text>Restrictions. An advertisement may not contain:</text> <paragraph num="(i)"> <text>Any statement that is false or misleading.</text> </paragraph> <paragraph num="(ii)"> <text>Any statement that is disparaging of a competitor's products.</text> </paragraph> <paragraph num="(iii)"> <text>Any statement, design, device, or representation which is obscene or indecent.</text> </paragraph> <paragraph num="(iv)"> <text>Any statement, design, device, or representation of, or relating to, analyses, standards, or tests, irrespective of falsity, which is likely to mislead the consumer.</text> </paragraph> <paragraph num="(v)"> <text>Any statement, design, device, or representation of, or relating to, any guaranty, irrespective of falsity, which is likely to mislead the consumer. Nothing in this section shall prohibit the use of any enforceable guaranty in substantially the following form: "We will refund the purchase price to the purchaser if he is in any manner dissatisfied with the contents of this package ---------- Blank to be filled in with the name of the person making guarantee.</text> </paragraph> <paragraph num="(vi)"> <text>Any statement that the product is produced, blended, made, bottled, packed, or sold under, or in accordance with, any authorization, law, or regulation of any municipality, county, or State, federal, or foreign government unless the statement is required or specifically authorized by the laws or regulations of that government. If a municipal, county, State, or federal permit number is stated, the permit number may not be accompanied by any additional statement relating to it.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Statements Inconsistent with Labeling. The advertisement may not contain any statement concerning a brand or lot of distilled spirits or wines that is inconsistent with any statement on the labeling of it.</text> </paragraph> <paragraph num="(c)"> <text>Curative and Therapeutic Effects. The advertisement may not contain any statement, design, or device representing that the use of any distilled spirits or wines has curative or therapeutic effects, if the statement is untrue in any particular, or tends to create a misleading impression. Examples of these statements are:</text> <paragraph num="(i)"> <text>" ---------- is good for you";</text> </paragraph> <paragraph num="(ii)"> <text>“Conducive to well-being”.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Place of Origin. The advertisement may not represent that the distilled spirits or wines were manufactured in, or imported from, a place or country other than that of their actual origin, or were produced or processed by one who was not in fact the actual producer or processor.</text> </paragraph> <paragraph num="(e)"> <text>Flags, Seals, Coats of Arms, Crests, and Other Insignia. An advertisement may not contain any statement, design, device, or pictorial representation of, or relating to, or capable of being construed as relating to the armed forces of the United States, or of the American flag, any State flag, or of any emblem, seal, insignia, or decoration associated with these flags or the armed forces of the United States. An advertisement may not contain any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia, likely to lead the consumer to believe falsely that the product has been endorsed, made, used by, produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom that flag, seal, coat of arms, crest, or insignia is associated.</text> </paragraph> <paragraph num="(f)"> <text>Examples of prohibited statements are:</text> <paragraph num="(i)"> <text>Reproduction of medals or facsimiles of awards, when no medals or awards have been given or when the medals or awards were not given on a competitive or comparative basis. For example, “Genuine Sherry is made only in Spain”.</text> </paragraph> <paragraph num="(ii)"> <text>“Contains no neutral spirits or alcohol” or “This rum will not turn dark in the bottle” or “All good wines are bottled at the winery”.</text> </paragraph> <paragraph num="(iii)"> <text>“Analyzed by the Laboratory and found to be pure free from deleterious ingredients”, “Tested and approved”, or “Signed by The Research Institute”.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Other Prohibited Statements.</text> <paragraph num="(a)"> <text>Restrictions. An advertisement for distilled spirits may not contain the words “bond”, “bonded”, “bottled in bond”, “aged in bond”, or phrases containing these or synonymous terms, unless those words or phrases appear upon the labels of the distilled spirits advertised, and are stated in the advertisement in the manner and form in which they appear upon the label.</text> </paragraph> <paragraph num="(b)"> <text>Statements of Age. An advertisement for distilled spirits may not contain any statement, design, or device directly or by implication concerning age or maturity of any brand or lot of distilled spirits unless a statement of age appears on the labels of the advertised product. When this statement, design, or device concerning age or maturity is contained in any advertisement, it shall include (in direct conjunction with it and with substantially equal conspicuousness) all parts of the statement concerning age and percentages, if any, which appear on the label. However, an advertisement for any whiskey or brandy, which does not bear a statement of age on the label, or an advertisement for rum which is 4 years old or older, may contain general inconspicuous age, maturity, or other similar representations, such as “Aged in wood”, and “Mellowed in fine oak casks.”</text> </paragraph> <paragraph num="(c)"> <text>Restrictions. An advertisement for wine may not contain:</text> <paragraph num="(i)"> <text>Any statement of bonded winecellar and bonded winery numbers unless stated in direct conjunction with the name and address of the person operating that winery or storeroom. Statement of bonded winecellar and bonded winery numbers may be made in the following form: “Bonded Winecellar No.--”, “Bonded Winery No.--”, “B.W.C. No.--”, “B.W. No.--”. An additional reference to that statement may not be made, or may any use be made of that statement that may convey the impression that the wine has been made or matured under U.S. Government or any State Government supervision or in accordance with U.S. Government or any State Government specifications or standards.</text> </paragraph> <paragraph num="(ii)"> <text>Any statement, design, device, or representation which relates to alcoholic content or which tends to create the impression that a wine is “unfortified” or has been “fortified”, or has intoxicating qualities, or contains distilled spirits (except for a reference to distilled spirits in a statement of composition when the statement is required by this regulation to appear as a part of the designation of the product).</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Statement of Age. A statement of age or representation relative to age (including words or devices in any brand name or mark) may not be made, except that:</text> <paragraph num="(i)"> <text>In the case of vintage wine, the year of vintage may be stated if it appears on the label;</text> </paragraph> <paragraph num="(ii)"> <text>Truthful references of a general and informative nature relating to methods of production involving storage or aging, such as “This wine has been mellowed in oak casks”, “Stored in small barrels”, or “Matured at regulated temperatures in our cellars” may be made.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Statement of Bottling Dates. The statement of any bottling date may not be deemed to be a representation relative to age, if the statement appears without undue emphasis in the following form: “Bottled in--” (inserting the year in which the wine was bottled).</text> </paragraph> <paragraph num="(f)"> <text>Statement of Miscellaneous Dates. No date, except as provided in C(4)(b) and C(4)(c) with respect to statement of vintage year and bottling date, shall be stated unless, in addition to it, and in direct conjunction with it, in the same size and kind of printing there shall be stated an explanation of the significance of the date. If any date refers to the date of establishment of any business, the date shall be stated without undue emphasis and in direct conjunction with the name of the person to whom it refers.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Sale and Delivery for Export."> <text>A licensee may not sell any alcoholic beverages for export to any person, firm, or corporation unless the person, firm, or corporation is authorized to receive the alcoholic beverages under the laws of the jurisdiction of the ultimate destination.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Solicitor's Permit."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Adult” means any person who has reached the age of majority.</text> </paragraph> <paragraph num="(2)"> <text>“Representative” means any person employed by or who represents any licensed manufacturer, nonresident dealer, or nonresident winery who contacts Maryland licensed wholesalers or licensed retail dealers for the purpose of selling or offering for sale alcoholic beverages.</text> </paragraph> <paragraph num="(3)"> <text>“Salesperson” means any employee of a licensed wholesaler, who sells or attempts to sell alcoholic beverages directly or indirectly to any licensed retail dealer for the account of licensed wholesalers.</text> </paragraph> <paragraph num="(4)"> <text>“Solicitor” means any person employed as a representative or salesperson who contacts a licensed wholesaler or licensed retail dealer within this State for the purpose of selling, promoting, or offering for sale alcoholic beverages.</text> </paragraph> <paragraph num="(5)"> <text>“Solicitor independent broker” means any person employed by or who represents within this State any licensed manufacturer, nonresident dealer, nonresident winery, or licensed wholesaler for the purpose of selling, promoting, or offering for sale alcoholic beverages by contacting:</text> <paragraph num="(a)"> <text>Consumers at a special event for which a temporary or permanent retail license is issued; or</text> </paragraph> <paragraph num="(b)"> <text>Consumers at an on-premises promotion as defined in COMAR 14.23.04.01.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Solicitor trainee” means any person employed by a licensed manufacturer or licensed wholesaler within this State, or by the holder of a nonresident dealer permit or holder of a nonresident winery permit outside this State, for the purpose of training that individual as a solicitor.</text> </paragraph> </paragraph> <paragraph num="B."> <text>General Procedures.</text> <paragraph num="(1)"> <text>A person may not act as a salesperson for a Maryland licensed wholesaler, as a representative for a manufacturer, nonresident dealer, or nonresident winery, or as a solicitor independent broker, unless the person has first applied for and received a solicitor's permit from the Executive Director, except as provided in §B(2) of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A “solicitor trainee” may not be permitted to sell, promote, or offer for sale alcoholic beverages except when accompanied by an individual holder of a valid solicitor's permit representing the same licensed wholesaler, licensed manufacturer, nonresident dealer, or nonresident winery. The training period may not exceed 30 days. After the 30-day training period, the person shall comply with the provisions of §B(1) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Any adult person, except the holder of a retail license or employees or agents of a licensed retail dealer, may make application to the Executive Director for a solicitor's permit, on forms and in the manner the Executive Director requires. The application shall set forth the name and address of the person, firm, or corporation who employs the applicant or whom the applicant represents, and also the name and address of the applicant. The applicant may not be employed by or represent any person, firm, or corporation whose name does not appear on the application.</text> </paragraph> <paragraph num="(4)"> <text>Solicitors' permits shall be kept in possession at all times while engaged in the business of selling or offering for sale alcoholic beverages, and shall be exhibited upon demand by any licensee or authorized employee of the Executive Director.</text> </paragraph> <paragraph num="(5)"> <text>Except for a holder of a solicitor's permit which specifically designates the holder as a solicitor independent broker, holders of a solicitor's permit may not contact consumers for the purpose of selling or offering for sale alcoholic beverages. If the person holding the permit is employed as a representative, the person may not be permitted to sell, promote, or offer for sale alcoholic beverages to licensed retail dealers, except for the account of a licensed wholesaler, who is a distributor for the products of the employer of the permittee.</text> </paragraph> <paragraph num="(6)"> <text>The holder of a solicitor's permit shall notify the Executive Director of any change of address within 10 days. Failure to do so may subject the solicitor's permit to suspension or revocation by the Executive Director.</text> </paragraph> <paragraph num="(7)"> <text>A solicitor shall notify immediately the Executive Director of any change of employment or representation status and shall surrender the solicitor's permit within 5 days for cancellation or amendment. Failure to surrender the permit within the 5 days may make that person ineligible for any other permit for a period of up to 3 years. It shall also be the duty of the employer or principal whose name is specified on the solicitor's application to notify the Executive Director within 5 days of the termination of the employment.</text> </paragraph> <paragraph num="(8)"> <text>Correction for change of address, employment, or representation status, or to replace lost or destroyed permits, may be made during the permit year.</text> </paragraph> <paragraph num="(9)"> <text>If the holder of a solicitor's permit violates the provisions of Alcoholic Beverages Article, Annotated Code of Maryland, or any regulation promulgated under it, the Executive Director may suspend or revoke the permit, and, in addition, may suspend or revoke the license or permit of the employer or principal of the permittee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Wine and Distilled Spirits Distributorship Appointments."> <paragraph num="A."> <text>Definition. “Supplier” means a licensed manufacturer, nonresident dealer, or wholesaler who sells a brand of wine or distilled spirits to a licensed wholesaler for resale to licensed retailers in Maryland.</text> </paragraph> <paragraph num="B."> <text>A supplier who desires to change the licensed wholesaler it has selected or franchised to distribute a brand of wine or distilled spirits in the State shall provide at least 30 days notice of this intention by registered mail to the licensed wholesaler and the Executive Director.</text> </paragraph> <paragraph num="C."> <text>A licensed wholesaler who desires to discontinue the sale of a brand of wine or distilled spirits shall provide at least 30 days notice of this intention by registered mail to the supplier from whom the product was purchased and to the Executive Director.</text> </paragraph> <paragraph num="D."> <text>If there is evidence that a violation of the law has occurred or that the distribution of a brand or brands of wine or distilled spirits will be adversely affected if the 30-day notice period is followed, the Executive Director may consider any substantial proof that is submitted in writing, and, if circumstances warrant, cause a reduction of this 30-day notice period.</text> </paragraph> <paragraph num="E."> <text>Any brand of wine or distilled spirits affected by the procedure set forth in this regulation which is in the outgoing wholesaler's inventory on or before the conclusion of this notice period shall be purchased and paid for by the supplier or incoming wholesaler at the laid-in cost of the outgoing wholesaler before the incoming wholesaler is allowed to distribute the product in the Maryland market. If a supplier, other than the current brand owner or authorized agent, acquires a brand and wants to designate a wholesaler other than the existing wholesaler, the supplier may not file until the supplier or incoming wholesaler has purchased the inventory of the outgoing wholesaler at the laid-in cost of the outgoing wholesaler.</text> </paragraph> <paragraph num="F."> <text>A supplier may not select, designate, appoint, or franchise more than one licensed wholesaler to sell or distribute a brand of wine or distilled spirits in Maryland for a period of time any longer than the 30-day notice period mentioned above.</text> </paragraph> <paragraph num="G."> <text>This regulation does not apply to a county dispensary acting as a wholesaler.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Samples of Alcoholic Beverages."> <paragraph num="A."> <text>Except as provided in §E(6) of this regulation, samples of alcoholic beverages provided under this regulation shall be tax paid at the same rate and in the same manner as required by the Tax-General Article, Title 5, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Permitted Samples.</text> <paragraph num="(1)"> <text>A licensed wholesaler may furnish samples or draw from sample accounts for the following purposes:</text> <paragraph num="(a)"> <text>To provide a sample of an alcoholic beverage to a licensed retailer;</text> </paragraph> <paragraph num="(b)"> <text>To donate alcoholic beverages to a bona fide charitable organization, nonprofit organization, or alcoholic beverage trade association;</text> </paragraph> <paragraph num="(c)"> <text>To provide sample alcoholic beverages to bona fide alcoholic beverage experts; and</text> </paragraph> <paragraph num="(d)"> <text>To provide alcoholic beverages to officers, officials, and employees of licensed wholesalers for personal and business use.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A supplier may furnish to a licensed wholesaler up to one case of an alcoholic beverage that is not a product available in the State for evaluation purposes and not for distribution or sampling to licensed retailers.</text> </paragraph> <paragraph num="(3)"> <text>A nonresident winery permit holder may furnish samples or draw from sample accounts to provide a sample of an alcoholic beverage to a licensed retailer.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Samples to Licensed Retailers.</text> <paragraph num="(1)"> <text>A sample of an alcoholic beverage not stocked or sampled by a licensed retailer during the immediately preceding 12 months may be furnished by a wholesaler representative, supplier representative, or nonresident winery representative when:</text> <paragraph num="(a)"> <text>The sample is not in excess of one 200-milliliter container; or</text> </paragraph> <paragraph num="(b)"> <text>If the alcoholic beverage is not available in a 200-milliliter container or smaller, then the sample is in one container of the next larger size.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler, supplier representative, or nonresident winery representative shall sign out all samples from the licensed wholesaler's inventory or nonresident winery permit holder's inventory in a manner approved by the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>A representative of the licensed retailer shall sign a receipt for each sample provided.</text> </paragraph> <paragraph num="(4)"> <text>A licensed wholesaler, supplier representative, or nonresident winery representative shall account for all samples withdrawn from the licensed wholesaler's inventory or nonresident winery permit holder's inventory within 30 days of sign out by returning to the licensed wholesaler or nonresident winery permit holder:</text> <paragraph num="(a)"> <text>Completed retailer receipts; or</text> </paragraph> <paragraph num="(b)"> <text>Unused samples.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A licensed wholesaler, supplier, or nonresident winery permit holder who does not comply with the provisions of this section may be prohibited from drawing future samples for distribution under this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Samples to Bona Fide Charitable Organizations, Nonprofit Organizations, or Alcoholic Beverage Trade Associations.</text> <paragraph num="(1)"> <text>A licensed wholesaler may donate sample alcoholic beverages for use at a bona fide event or function if a temporary or permanent retail license has not been issued or is not required for the event or function.</text> </paragraph> <paragraph num="(2)"> <text>Alcoholic beverages supplied may not exceed what is reasonably expected to be used for the specific event or function.</text> </paragraph> <paragraph num="(3)"> <text>An officer or official of the charitable organization, nonprofit organization, or alcoholic beverage trade association shall submit a written request to the licensed wholesaler for the product setting forth the particulars of the event and certifying compliance with §D(1) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>A representative of the charitable organization, nonprofit organization, or alcoholic beverage trade association shall sign a receipt for all sample alcoholic beverages received.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Samples to Alcoholic Beverage Experts.</text> <paragraph num="(1)"> <text>A licensed wholesaler may provide samples to unlicensed individuals who are recognized for their contributions as alcoholic beverage writers in trade publications, newspapers, magazines, and other publications.</text> </paragraph> <paragraph num="(2)"> <text>Before an individual may qualify as an expert under this section, the individual shall submit credentials to, and be approved by, the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>Samples provided by a licensed wholesaler to an expert are for the express purposes of evaluation and analysis and are not for general distribution or consumption. Any samples received and not used for this purpose shall be destroyed.</text> </paragraph> <paragraph num="(4)"> <text>A licensed wholesaler may directly provide samples to experts under the following conditions:</text> <paragraph num="(a)"> <text>The expert signs a receipt for the product; and</text> </paragraph> <paragraph num="(b)"> <text>Not more than three bottles of each brand is provided.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An expert may pick up samples at the premises of the licensed wholesaler, or the licensed wholesaler may deliver them to another location, including a licensed retail premises, for subsequent pickup if proper records are maintained.</text> </paragraph> <paragraph num="(6)"> <text>Instead of receiving tax paid samples through a licensed wholesaler, an alcoholic beverage expert may receive tax-free products from legitimate out-of-State sources if the alcoholic beverage expert has applied for, and received from the Executive Director, a non-beverage permit.</text> </paragraph> <paragraph num="(7)"> <text>Samples provided under this section need not originate from a licensed nonresident dealer.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Samples to Officers, Officials, and Employees.</text> <paragraph num="(1)"> <text>An individual wholesale licensee may authorize bona fide company officers, officials, and employees to draw samples for personal and business use and not for sale.</text> </paragraph> <paragraph num="(2)"> <text>The Executive Director may limit the number of samples drawn under this section if the samples are believed to be excessive or improperly used.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Executive Director may require a written request for samples of beer, wine, or distilled spirits before delivery under this regulation.</text> </paragraph> <paragraph num="H."> <text>Records and Reports.</text> <paragraph num="(1)"> <text>A summary of samples of beer, wine, and distilled spirits distributed during the previous month shall be filed on forms provided by the Comptroller and submitted with the monthly alcoholic beverage tax return to the Comptroller with a copy of the Executive Director.</text> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler or nonresident winery permit holder shall maintain accurate records to support monthly sample reports which shall be available for inspection.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Sales by Holders of Class E Water Vessel Licenses."> <paragraph num="A."> <text>Unless prohibited by local law, the holder of a Class E Beer, Wine and Liquor Water Vessel license may sell and serve alcoholic beverages for on-vessel consumption:</text> <paragraph num="(1)"> <text>Only to paying passengers who are a part of a bona fide regularly scheduled or chartered tour; and</text> </paragraph> <paragraph num="(2)"> <text>While the vessel is:</text> <paragraph num="(a)"> <text>Made fast to a wharf, pier, piling, etc.; or</text> </paragraph> <paragraph num="(b)"> <text>Underway.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A Class E Water Vessel licensee may not sell or serve any alcoholic beverages to the public at large or to any person who is not a bona fide paying passenger.</text> </paragraph> <paragraph num="C."> <text>Nothing in this regulation shall prevent a local Board of License Commissioners from issuing a temporary or permanent license to a qualifying applicant for use on the vessel while the vessel is made fast to any wharf, pier, piling, etc., in the jurisdiction of the local licensing authority. However, the Statewide Class E License may not be used and shall be relinquished during the term any local license is in effect.</text> </paragraph> <paragraph num="D."> <text>For the purpose of this regulation, the term “paying passengers” means:</text> <paragraph num="(1)"> <text>Those persons who directly or indirectly pay a fee for boarding a regularly scheduled or chartered tour on a vessel; and</text> </paragraph> <paragraph num="(2)"> <text>Guests of any person described in §D(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Consumer Orders of Alcoholic Beverages."> <paragraph num="A."> <text>Before an unlicensed individual or entity, other than a licensed retailer, engages in the business of taking orders for alcoholic beverages from Maryland consumers for ultimate sale and delivery by a licensed retail dealer, the individual or entity shall receive an authorization letter from the Executive Director.</text> </paragraph> <paragraph num="B."> <text>In order to receive authorization, an applicant shall submit a detailed plan to the Executive Director:</text> <paragraph num="(1)"> <text>Giving the names of all licensees the applicant is representing directly or indirectly; and</text> </paragraph> <paragraph num="(2)"> <text>Agreeing to comply with all of the laws and regulations pertaining to alcoholic beverages, and any stipulations or restrictions that may be made a part of the authorization.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An authorization given is valid indefinitely or until revoked or modified by the Executive Director.</text> </paragraph> <paragraph num="D."> <text>Illegal or improper activities engaged in by an individual or entity receiving orders from consumers, with or without a letter of authorization, may subject a licensee represented by the individual or entity as an agent to administrative action.</text> </paragraph> <paragraph num="E."> <text>Alcoholic beverages sold and delivered as a result of a consumer order placed with an individual or entity shall be made through a supplier to a wholesaler to a retail dealer, all of whom shall hold the requisite license or permit.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Wholesaler Credit Sales of Beer to Worcester County Retailers."> <paragraph num="A."> <text>Beer Credit Sales.</text> <paragraph num="(1)"> <text>A licensed wholesaler may sell beer on credit to retailers in Worcester County if the:</text> <paragraph num="(a)"> <text>Licensed retailer has held an alcoholic beverage retail license in Worcester County for a minimum of 2 consecutive years before the sale and delivery; and</text> </paragraph> <paragraph num="(b)"> <text>Licensed wholesaler complies with the provisions of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler who sells and delivers beer on credit to a retailer in Worcester County shall be paid in full, including any interest charges, for the outstanding invoice not later than the 10th calendar day after the date of delivery.</text> </paragraph> <paragraph num="(3)"> <text>A licensed wholesaler who has not received payment in accordance with §A(2) of this regulation shall:</text> <paragraph num="(a)"> <text>Immediately discontinue beer sales, credit or otherwise, to that licensed retailer; and</text> </paragraph> <paragraph num="(b)"> <text>Notify the Executive Director in writing of the delinquency as soon as possible but not later than 12 noon on the next business day.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Notification.</text> <paragraph num="(1)"> <text>Notification of a delinquency under §A(3)(b) of this regulation may be in any form but shall contain at least the following information:</text> <paragraph num="(a)"> <text>Name of the licensed wholesaler filing the report;</text> </paragraph> <paragraph num="(b)"> <text>Name and trade name of the licensed retailer;</text> </paragraph> <paragraph num="(c)"> <text>Full address of the licensed retailer;</text> </paragraph> <paragraph num="(d)"> <text>Date and number of the original invoice; and</text> </paragraph> <paragraph num="(e)"> <text>Amount of delinquency.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Executive Director shall provide all other wholesalers of beer notice in writing of the delinquency report received. The notice shall provide an effective date when all licensed wholesalers are prohibited from making any sale or delivery of beer to that account.</text> </paragraph> <paragraph num="(3)"> <text>A licensed wholesaler who has previously reported a delinquency shall notify the Executive Director upon receipt of full payment. The notification time frames are the same as with the original notification. Upon notification from the Executive Director that an account has been cleared, all licensed wholesalers, including the licensed wholesaler who filed the original delinquent report, may resume credit sales and deliveries to that account. Credit sales may be made at the discretion of the licensed wholesaler.</text> </paragraph> <paragraph num="(4)"> <text>If a licensed wholesaler becomes aware that a licensed retailer's check has been returned by the bank unpaid, whether or not the check was issued as a payment at the time of delivery or on the licensed retailer's 10-day credit account, and the 10-day period specified in §A(2) of this regulation has expired, the licensed wholesaler shall consider this a nonpayment and immediately report this information to the Executive Director. A licensed wholesaler may elect to redeposit a returned check if it is returned within 10 days of the original invoice date. If a check is returned unpaid a second time, the licensed wholesaler shall immediately file a report with the Executive Director. Notification shall include a statement that the report was based on a returned check.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Beer Credit Prohibition. In accordance with Alcoholic Beverages Article, §33-504(b)(3), Annotated Code of Maryland, a licensed retailer who has been reported on three separate occasions within a single calendar year is prohibited from obtaining beer on credit for a period of 2 years from the date of the third report. For the purpose of this regulation, a specific beer purchase transaction between a licensed wholesaler and a licensed retailer constitutes an occasion. The Executive Director shall notify all licensed wholesalers of any retailers who meet this criterion.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Family Beer and Wine Facility Permit."> <paragraph num="A."> <text>Production.</text> <paragraph num="(1)"> <text>The gallonage limitation for a consumer to brew beer or ferment wine shall be in accordance with 27 CFR 24.75 and 25.205.</text> </paragraph> <paragraph num="(2)"> <text>Beer or wine made by a consumer under contract with the holder of a family beer and wine facility permit shall be for home consumption and the personal use of the consumer.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Sampling.</text> <paragraph num="(1)"> <text>The holder of a family beer and wine facility permit is authorized to manufacture beer and wine for the purpose of providing samples on the licensed premises to consumers 21 years old or older who have signed a nonrefundable contract to manufacture beer or wine on the licensed premises.</text> </paragraph> <paragraph num="(2)"> <text>The amount of samples provided to individuals shall be limited to the amount specified in Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Records.</text> <paragraph num="(1)"> <text>The holder of a family beer and wine facility permit shall maintain on the licensed premises a log book of all beer or wine produced for sampling or equipment testing purposes, and produced by individuals under contract with the permittee.</text> </paragraph> <paragraph num="(2)"> <text>Before entering into a contract with an individual, the permittee shall have the individual sign an affidavit, under penalties of perjury, that all beer or wine produced will be for personal use and home consumption only, and will not be for sale to other persons.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Sales. The holder of a family beer and wine facility permit may not offer for sale any alcoholic beverages.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Statewide Caterer's License."> <paragraph num="A."> <text>Records. The holder of a Statewide caterer's license shall maintain the following:</text> <paragraph num="(1)"> <text>Records pertaining to all purchases and sales of alcoholic beverages;</text> </paragraph> <paragraph num="(2)"> <text>Copies of executed catering contracts with persons or entities for events at which alcoholic beverages are provided; and</text> </paragraph> <paragraph num="(3)"> <text>Original copies of catering certificates required under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Catering Certificates.</text> <paragraph num="(1)"> <text>The holder of a Statewide caterer's license shall prepare a three-part certificate on forms provided or approved by the Executive Director for each event where alcoholic beverages are provided and served by the caterer. This form shall include:</text> <paragraph num="(a)"> <text>The name and license number of the Statewide caterer;</text> </paragraph> <paragraph num="(b)"> <text>The name of the person or entity who has contracted for the catered event;</text> </paragraph> <paragraph num="(c)"> <text>The address where the catered event will be conducted;</text> </paragraph> <paragraph num="(d)"> <text>The date or dates of the catered event; and</text> </paragraph> <paragraph num="(e)"> <text>Other information as may be required by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Copies of Certificates.</text> <paragraph num="(a)"> <text>The original certificate shall be maintained on the licensed premises of the Statewide caterer.</text> </paragraph> <paragraph num="(b)"> <text>The second copy shall be conspicuously posted for the duration of the event on the premises where the event is held.</text> </paragraph> <paragraph num="(c)"> <text>The third copy shall be mailed or delivered to the local board of license commissioners in the jurisdiction where the catered event is conducted not later than 5 days preceding the catered event.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Boards of License Commissioners.</text> <paragraph num="(1)"> <text>The local board of license commissioners has concurrent jurisdiction with the Executive Director to monitor catered events as authorized by Alcoholic Beverages Article, §2-506, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>If a nonprofit organization or club is providing its own alcoholic beverages at a catered event, and a license is required due to the direct or indirect sale of alcoholic beverages, then the nonprofit organization or club is responsible for:</text> <paragraph num="(a)"> <text>Obtaining a temporary alcoholic beverage license from the local board of license commissioners; and</text> </paragraph> <paragraph num="(b)"> <text>All alcoholic beverage activities at the catered event.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the alcoholic beverages at an event are being provided and served by the holder of a Statewide caterer's license, but there is a direct or indirect sale of alcoholic beverages by the nonprofit organization or club, then the local board of license commissioners may require the nonprofit organization or club to obtain a temporary license in addition to the license of the Statewide caterer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Alcohol Awareness Program and Training."> <paragraph num="A."> <text>Alcohol Awareness Program Provider Requirements. A holder of an alcohol awareness program permit shall:</text> <paragraph num="(1)"> <text>Maintain a current alcohol awareness program permit as required under Alcoholic Beverages Article, §2-158, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Maintain each alcohol awareness program in conformance with Alcoholic Beverages Article, §4-505, Annotated Code of Maryland, as certified by the Executive Director;</text> </paragraph> <paragraph num="(3)"> <text>Notify the Executive Director, in writing, of any changes to the program, at least 30 days before implementation, for the Executive Director’s approval;</text> </paragraph> <paragraph num="(4)"> <text>Upon approval by the Executive Director under §A(3) of this regulation, notify each alcohol awareness instructor and provide revised program material;</text> </paragraph> <paragraph num="(5)"> <text>Notify the Executive Director, in writing, of discontinuance of the program with notice sent simultaneously to each alcohol awareness instructor;</text> </paragraph> <paragraph num="(6)"> <text>Submit authorized alcohol awareness instructor permit applications to the Executive Director for approval;</text> </paragraph> <paragraph num="(7)"> <text>Provide, at a minimum, 3 hours of alcohol awareness instructional classroom or electronic training of the program approved by the Executive Director;</text> </paragraph> <paragraph num="(8)"> <text>Provide a program testing component with a uniform passing score and uniform objectives, which have been preapproved by the Executive Director;</text> </paragraph> <paragraph num="(9)"> <text>Unless a delay is caused by a student, issue certificates to students who have successfully completed alcohol awareness training based on lists provided by an alcohol awareness instructor within 30 days of receipt of the notice, which certificates shall include the:</text> <paragraph num="(a)"> <text>Program administrator's signature;</text> </paragraph> <paragraph num="(b)"> <text>Program name;</text> </paragraph> <paragraph num="(c)"> <text>Instructor's name;</text> </paragraph> <paragraph num="(d)"> <text>Student's name;</text> </paragraph> <paragraph num="(e)"> <text>Issuance date; and</text> </paragraph> <paragraph num="(f)"> <text>4 year validation period;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Notify, in writing, the local alcoholic beverage licensing board in accordance with Alcoholic Beverages Article, §4-505(f)(2), Annotated Code of Maryland, of individuals who have successfully completed the alcohol awareness program, within 5 days after a certificate of completion is sent to the student as required in §A(9) of this regulation; and</text> </paragraph> <paragraph num="(11)"> <text>Maintain records for a period of 5 years from the date the certificate was issued, reflecting:</text> <paragraph num="(a)"> <text>The student's name;</text> </paragraph> <paragraph num="(b)"> <text>The student's address;</text> </paragraph> <paragraph num="(c)"> <text>The instructor's name;</text> </paragraph> <paragraph num="(d)"> <text>The permit number;</text> </paragraph> <paragraph num="(e)"> <text>The certification date; and</text> </paragraph> <paragraph num="(f)"> <text>If known:</text> <paragraph num="(i)"> <text>The local licensing board; and</text> </paragraph> <paragraph num="(ii)"> <text>The licensed retail establishment's name and address.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Upon approval of an alcohol awareness instructor permit application, the Executive Director shall forward the alcohol awareness instructor permit to the program administrator for distribution to the authorized instructors.</text> </paragraph> <paragraph num="C."> <text>Alcohol Awareness Instructor Requirements. A holder of an alcohol awareness instructor permit shall:</text> <paragraph num="(1)"> <text>Maintain a current alcohol awareness instructor's permit as required by Alcoholic Beverages Article, §2-158, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Apply for an alcohol awareness instructor permit through the authorizing alcohol awareness program administrator;</text> </paragraph> <paragraph num="(3)"> <text>Provide alcohol awareness training that covers the program as certified by the Executive Director, including the:</text> <paragraph num="(a)"> <text>Course content;</text> </paragraph> <paragraph num="(b)"> <text>Classroom or electronic hours; and</text> </paragraph> <paragraph num="(c)"> <text>Testing component;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Provide training to persons of an alcohol awareness training program as certified by the Executive Director and authorized by the alcohol awareness training program provider;</text> </paragraph> <paragraph num="(5)"> <text>Conduct the testing component in the presence of the student;</text> </paragraph> <paragraph num="(6)"> <text>Provide within 10 days of completion of the class, a written list to the alcohol awareness program provider reflecting the:</text> <paragraph num="(a)"> <text>Student's name;</text> </paragraph> <paragraph num="(b)"> <text>Student's address;</text> </paragraph> <paragraph num="(c)"> <text>Dates of classroom or electronic training; and</text> </paragraph> <paragraph num="(d)"> <text>Licensed retail establishment's name and address, if known; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Maintain records of all alcohol awareness training classes and certifications for a period of 5 years.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Before an alcohol awareness instructor administers the test under §C(5) of this regulation, a student shall satisfactorily prove the student's identity to the instructor by means of a government issued photo identification.</text> </paragraph> <paragraph num="E."> <text>Type of Program Presentations. Programs may be presented in a classroom, individual, or electronic format. Testing shall be provided by the instructor face-to-face with the student or through an electronic platform that is certified by the Executive Director, as required under §C(5) of this regulation.</text> </paragraph> <paragraph num="F."> <text>Responsibility. An alcohol awareness program provider shall have primary responsibility for the conduct and performance of each holder of an alcohol awareness instructor permit who provides instructions for the respective provider's alcohol awareness program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Come to Rest."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Come to rest” means that the alcoholic beverages are physically unloaded from the transporter, truck, or other common carrier onto the floor, loading dock, or other part of the wholesaler's licensed premises.</text> </paragraph> <paragraph num="(2)"> <text>“Licensed location” means the physical address of the licensed premises stated on the application.</text> </paragraph> <paragraph num="(3)"> <text>Except as otherwise specified in Alcoholic Beverages Article, Annotated Code of Maryland, “licensed premises” means the physical location for which the license is issued, including any buildings or grounds identified and made part of the premises for purposes of the license application, and including additional licensed locations.</text> </paragraph> <paragraph num="(4)"> <text>“Warehouseman” means a person who is an employee of the wholesaler and listed on the regular salary list or payroll of the wholesaler.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Application Requirement. The Licensed Location shall be the same as that stated on the application for the Basic Permit under the Federal Alcohol Administration Act as required by the Alcohol and Tobacco Tax and Trade Bureau of the Department of Treasury.</text> </paragraph> <paragraph num="C."> <text>Except for deliveries to the holder of a Class E, F, or G license, deliveries made under an Individual Storage Permit do not meet the come to rest requirements under this regulation.</text> </paragraph> <paragraph num="D."> <text>Come to Rest Compliance Requirement. The person driving the delivery vehicle and delivering the alcoholic beverage shall record the delivery location, date, and time and have it verified, by signature, upon delivery by the warehouseman. The warehouseman shall record the loading location, date, and time the alcoholic beverages are placed in a vehicle for delivery to a retailer and also shall record the identification information of the delivery vehicle. The driver of the retail delivery vehicle shall verify, by signature, the information recorded by the warehouseman upon loading of the alcoholic beverages.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Nonresident Dealer Permit and Resident Dealer Permit Invoices."> <paragraph num="A."> <text>The holder of a nonresident dealer permit or resident dealer permit shall:</text> <paragraph num="(1)"> <text>Obtain a separate permit for each location under which alcoholic beverages are invoiced to Maryland wholesalers or retailers; and</text> </paragraph> <paragraph num="(2)"> <text>Include on each invoice the business name as stated on the permit application.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Alcoholic beverages shipped to a Maryland wholesaler by the holder of a nonresident dealer permit or resident dealer permit may originate from a location other than the location on the permit as long as the invoice includes the permit name and address.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Public Storage or Transportation Permit."> <paragraph num="A."> <text>A public storage permit authorizes the holder to operate a warehouse for the storage of alcoholic beverages of licensees or authorized permit holders.</text> </paragraph> <paragraph num="B."> <text>A public transportation permit authorizes the holder to transport alcoholic beverages into, within, or out of this State for licensees or authorized permit holders.</text> </paragraph> <paragraph num="C."> <text>A Public Transportation Permit may be applied for by:</text> <paragraph num="(1)"> <text>A person engaged in the business of transporting alcoholic beverages for licensees into, within, and out of this State; or</text> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler in order to transport alcoholic beverages to retailers for another licensed wholesaler when there is a written delivery agreement between the wholesalers stating that there will be:</text> <paragraph num="(a)"> <text>No warehousing of the alcoholic beverages being transported;</text> </paragraph> <paragraph num="(b)"> <text>No unreasonable delay in transporting the alcoholic beverages;</text> </paragraph> <paragraph num="(c)"> <text>Segregation of the alcoholic beverages from the alcoholic beverages being transported under the transporter's own wholesaler license;</text> </paragraph> <paragraph num="(d)"> <text>A separate invoice for the alcoholic beverages being transported under the public transportation permit; and</text> </paragraph> <paragraph num="(e)"> <text>Delivery of the alcoholic beverages without performance of any other service, such as solicitation, shelf management, product rotation, or any other acts that under Alcoholic Beverages Article, Annotated Code of Maryland, and the regulations may be legally performed by a licensed manufacturer, wholesaler, or permit holder.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>A written delivery agreement that stipulates that the sale and delivery of alcoholic beverages shall be from the licensed premises of a wholesaler meets the requirements of §C(2) of this regulation.</text> </paragraph> <paragraph num="E."> <text>When transporting alcoholic beverages under a public transportation permit, the holder shall possess the following:</text> <paragraph num="(1)"> <text>A valid public transportation permit; and</text> </paragraph> <paragraph num="(2)"> <text>A valid vehicle identification card for each vehicle, issued by the Executive Director pursuant to Alcoholic Beverages Article, §§2-218 or 2-119, Annotated Code of Maryland, which card shall include the vehicle's make, model, vehicle identification number, state of registration, and tag number.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Before accepting delivery, a licensed wholesaler shall verify that the transporter delivering the alcoholic beverages has in its possession the documentation required under §E of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Brand Size, Special Pack, Gift Packaging, and Labeling."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Depletion allowance” means an allowance offered by a supplier which is:</text> <paragraph num="(a)"> <text>For a given brand and size;</text> </paragraph> <paragraph num="(b)"> <text>For a specific duration;</text> </paragraph> <paragraph num="(c)"> <text>For a given amount per case;</text> </paragraph> <paragraph num="(d)"> <text>Based upon sales from existing wholesaler inventories; and</text> </paragraph> <paragraph num="(e)"> <text>Not conditioned upon purchases by a wholesaler.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Private label” means any label that is owned by a licensed retail dealer, or is bottled and labeled exclusively for sale to a licensed retail dealer.</text> </paragraph> <paragraph num="(3)"> <text>“Restricted or confined label” means any label of wine or distilled spirits, domestic or imported, other than private labels and those labels available for sale to licensed retail dealers generally.</text> </paragraph> <paragraph num="(4)"> <text>“Self-imports” means any alcoholic beverages which are purchased and imported by a licensed wholesaler when the alcoholic beverages are invoiced by the foreign supplier direct to the Maryland licensed wholesaler.</text> </paragraph> <paragraph num="(5)"> <text>“Special pack” or “gift pack” means a carton or package which:</text> <paragraph num="(a)"> <text>Contains:</text> <paragraph num="(i)"> <text>More than one brand of wine or distilled spirits, or</text> </paragraph> <paragraph num="(ii)"> <text>One brand of wine or distilled spirits and one nonalcoholic item; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Is intended for ultimate sale to the consumer.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Wholesaler” means a person who purchases from a nonresident dealer, or self-imports from a foreign source, any alcoholic beverages for sale to other licensed wholesalers or licensed retail dealers, and includes a county liquor control board and a county wholesale dispensary.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Special Pack or Gift Pack Requirements.</text> <paragraph num="(1)"> <text>Size of Containers. Only one size of an alcoholic beverage container shall be represented within a special pack.</text> </paragraph> <paragraph num="(2)"> <text>Containers in Carton. The total number of containers in a carton shall be in conformance with the provisions of §C of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Nonalcoholic Items. Nonalcoholic items shall be restricted to those items which are physically packaged with the special pack and which are intended for ultimate purchase by the consumer. Signs, placards, devices, and graphic displays bearing advertising or other forms of advertising may not be included in special packs.</text> </paragraph> <paragraph num="(4)"> <text>Consumer Oriented. A special pack shall be:</text> <paragraph num="(a)"> <text>Entirely consumer oriented; and</text> </paragraph> <paragraph num="(b)"> <text>Configured and packaged to show that it is intended for ultimate sale to the consumer.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Handling and Package Costs. The cost of special packaging materials and additional labor costs to assemble the special pack may be added to the price of the special pack if it is reported on a special pack price analysis.</text> </paragraph> <paragraph num="(6)"> <text>Brand Identity. Each special pack shall be considered a distinct brand. Each special pack shall be assigned a unique UNIMERC brand code number as described in §B of this regulation.</text> </paragraph> <paragraph num="(7)"> <text>Component Pricing. The cost of the special pack is not dependent on the price of any component alcoholic beverage also filed in regular case lots. However, special pack pricing may not be used to circumvent the prohibition on quantity discounts or be tantamount to providing free goods directly to the licensed retailer.</text> </paragraph> <paragraph num="(8)"> <text>Approval Process.</text> <paragraph num="(a)"> <text>Suppliers and wholesalers shall provide written communication to the Executive Director at least 14 days prior to its distribution, to include the type of alcoholic beverages, quantity amounts, size of containers, and any non-alcoholic items that are included in the special pack.</text> </paragraph> <paragraph num="(b)"> <text>The Executive Director reserves the right to request more detailed information, including physical inspection or photograph, if a particular problem or question arises with regard to a specific filing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Containers in Carton.</text> <paragraph num="(1)"> <text>Packages are to be distributed as follows:</text> <paragraph num="(a)"> <text>Multiples of 12;</text> </paragraph> <paragraph num="(b)"> <text>Half quantities;</text> </paragraph> <paragraph num="(c)"> <text>Four 5 liters;</text> </paragraph> <paragraph num="(d)"> <text>Four 4 liters;</text> </paragraph> <paragraph num="(e)"> <text>Four 3 liters;</text> </paragraph> <paragraph num="(f)"> <text>Six 3 liters;</text> </paragraph> <paragraph num="(g)"> <text>Six 1¾ liters;</text> </paragraph> <paragraph num="(h)"> <text>Eight or 6 1½ liter containers, but not more than one configuration per brand in any 12 consecutive months;</text> </paragraph> <paragraph num="(i)"> <text>15, 12, or 9 1-liter containers, but not more than one configuration per brand in any 12 consecutive months;</text> </paragraph> <paragraph num="(j)"> <text>15 or 12 750-milliliter containers, but not more than one configuration per brand in any 12 consecutive months; or</text> </paragraph> <paragraph num="(k)"> <text>Any legal size packaged and sold as a single container.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>When containers hold less than 12.8 ounces or 378.7 milliliters, the quantity of containers may not be restricted to multiples of 12 but shall be in accordance with the prevailing practice in effect as to size and as to the number of containers in a carton.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Labeling.</text> <paragraph num="(1)"> <text>A label that is sold to more than one licensed retail dealer in Maryland may not qualify as a private label, and shall be made available for sale to licensed retail dealers generally.</text> </paragraph> <paragraph num="(2)"> <text>Restricted or confined labels are prohibited for sale to licensed retail dealers.</text> </paragraph> <paragraph num="(3)"> <text>Terms or conditions of sale, including delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering the sale.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages Article, §§1-101, 1-302, 1-311, 1-312, 1-319, 1-321, 2-124, 2-126, 2-138, 2-216, 2-310, 2-315, 2-402, 2-501, 4-505, 6-202,6-328, and 33-504, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 26, 2022 (49:26 Md. R. 1080)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19B amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> </annotations> </chapter> <chapter num="02" heading="Maryland Cigarette Sales Below Cost Act"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Alcohol and Tobacco Tax and Trade Bureau” means the Tax and Trade Bureau of the United States Department of the Treasury.</text> </paragraph> <paragraph num="(2)"> <text>“Cigarette” means any size or shaped roll for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other material except tobacco.</text> </paragraph> <paragraph num="(3)"> <text>“Commission” means the Alcohol, Tobacco, and Cannabis Commission.</text> </paragraph> <paragraph num="(4)"> <text>“Comptroller” means the Comptroller of Maryland or the Comptroller’s designee.</text> </paragraph> <paragraph num="(5)"> <text>“County” means a county of the State of Maryland or Baltimore City.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee.</text> </paragraph> <paragraph num="(7)"> <text>“Retailer” means any person engaged in the business of making retail sales of cigarettes within the State at a store, stand, booth, or concession, through vending machines, or otherwise, and only applies to the retail sales of cigarettes portion of the person’s business.</text> </paragraph> <paragraph num="(8)"> <text>“Sell” includes advertise, offer to sell, or offer for sale.</text> </paragraph> <paragraph num="(9)"> <text>Wholesaler.</text> <paragraph num="(a)"> <text>“Wholesaler” means a person who purchases cigarettes directly from a manufacturer and only applies to the wholesale sales of cigarettes portion of the person’s business.</text> </paragraph> <paragraph num="(b)"> <text>“Wholesaler” includes a person, who, as a sub-wholesaler:</text> <paragraph num="(i)"> <text>Purchases cigarettes from another wholesaler solely for the purpose of bona fide resale to retailers other than those directly or indirectly owned, affiliated, or controlled by the wholesaler; and</text> </paragraph> <paragraph num="(ii)"> <text>Services the retailers by maintaining an established place of business for the sale of cigarettes, including warehouse facilities, adequate inventory, proper accounting records, and necessary equipment and vehicles for the storage and distribution of cigarettes.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Transportation Costs Calculated as Part of the Basic Cost of Cigarettes."> <paragraph num="A."> <text>Transportation cost is the expense to ship or deliver cigarettes from a premise other than the retail license location to the retailer's location for final sale.</text> </paragraph> <paragraph num="B."> <text>The transportation cost shall be calculated as part of the “basic cost of cigarettes” to the retailer, as provided in Commercial Law Article, § 11-501(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>Section B of this regulation applies when a retailer receives wholesale discounts as provided in the Commercial Law Article, § 11-503(b).</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Notice That Wholesaler is Unlicensed."> <text>A licensee who purchases cigarettes at wholesale for the purpose of resale in Maryland at wholesale or retail as defined in the Maryland Cigarette Sales Below Cost Act, from a person not having a license as provided in Business Regulation Article, §16-210, Annotated Code of Maryland shall be deemed not to have had notice and knowledge the wholesaler was unlicensed, if:</text> <paragraph num="A."> <text>The licensee making the purchase had no actual notice or knowledge that the wholesaler was not licensed;</text> </paragraph> <paragraph num="B."> <text>The licensee making the purchase demanded and received from the unlicensed wholesaler an invoice with each purchase stating affirmatively that the wholesaler was currently licensed; and</text> </paragraph> <paragraph num="C."> <text>The invoice shows the identification number of the license issued by the Executive Director.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Applications for Cigarette Licenses."> <paragraph num="A."> <text>Applications for a retailer's cigarette license or licenses shall show the name and address of the place where cigarettes are sold.</text> </paragraph> <paragraph num="B."> <text>Applications for more than one cigarette license shall be accompanied by a list of locations stating names and addresses where cigarettes are sold.</text> </paragraph> <paragraph num="C."> <text>Applications by vending machine operators as defined in Commercial Law Article, §11-501(k), for a vending machine operator's cigarette license shall be accompanied by a list showing:</text> <paragraph num="(1)"> <text>Names and addresses where cigarette vending machines are located;</text> </paragraph> <paragraph num="(2)"> <text>The number of machines at each location; and</text> </paragraph> <paragraph num="(3)"> <text>The address of the established place of business maintained by the applicant for the purchase of cigarettes, including but not limited to, the maintenance of warehousing facilities for the storage and distribution of cigarettes.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Applications for Cigarette Licenses."> <paragraph num="A."> <text>Holders of any cigarette license shall keep and maintain available for inspection during business hours, for a period of 2 years, the following:</text> <paragraph num="(1)"> <text>All invoices and bills of lading;</text> </paragraph> <paragraph num="(2)"> <text>All records covering all purchases and sales of cigarettes; and</text> </paragraph> <paragraph num="(3)"> <text>All records of merchandise sold in connection with cigarettes.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The records in §A of this regulation shall be maintained and available for inspection at the license location.</text> </paragraph> <paragraph num="C."> <text>Wholesale Sale of Cigarettes.</text> <paragraph num="(1)"> <text>Each sale of cigarettes shall be accompanied by an invoice showing the following:</text> <paragraph num="(a)"> <text>The date, name, and address of the seller;</text> </paragraph> <paragraph num="(b)"> <text>The name and address of the buyer;</text> </paragraph> <paragraph num="(c)"> <text>The quantity and brands sold;</text> </paragraph> <paragraph num="(d)"> <text>The price charged for each of the brands of cigarettes covered by the invoices;</text> </paragraph> <paragraph num="(e)"> <text>The license number of the cigarette license of the seller; and</text> </paragraph> <paragraph num="(f)"> <text>The method of delivery (whether delivered by the seller to the buyer's place of business or picked up by the buyer).</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Licensed wholesalers shall maintain a record of the current retailer's cigarette license numbers of all persons to whom they sell cigarettes at wholesale.</text> </paragraph> <paragraph num="(3)"> <text>All cash sales made under the provisions of Commercial Law Article, §11-503(a), shall indicate cash sale on the invoice.</text> </paragraph> <paragraph num="(4)"> <text>A sale shall be presumed to have been made on other than a cash basis unless otherwise indicated.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Cigarette Vending Machine Requirements.</text> <paragraph num="(1)"> <text>A licensee who sells cigarettes at retail through a vending machine shall display on each machine:</text> <paragraph num="(a)"> <text>A label that indicates the licensee's name, address, and telephone number; and</text> </paragraph> <paragraph num="(b)"> <text>The label provided by the Comptroller that states the:</text> <paragraph num="(i)"> <text>Age requirement for the purchase of cigarettes, and</text> </paragraph> <paragraph num="(ii)"> <text>Penalty as provided by Criminal Law Article, §10-107, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Operators of cigarette vending machines not covered in §D(1)(a) shall display the retailer's cigarette license on the machines they operate.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Other holders of retailer's cigarette licenses shall visibly display the license on the premises where cigarettes are sold.</text> </paragraph> <paragraph num="F."> <text>A person selling cigarettes both at wholesale and at retail as provided in Commercial Law Article, §11-501 (m)(3), shall purchase both a wholesaler's cigarette license and a retailer's cigarette license or retailer's cigarette licenses.</text> </paragraph> <paragraph num="G."> <text>The licensee described in §F shall maintain the following records:</text> <paragraph num="(1)"> <text>All purchases in which the licensee received discounts ordinarily allowed to wholesalers by other wholesalers; and</text> </paragraph> <paragraph num="(2)"> <text>Records reflecting which of the licensee's sales were wholesale sales.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A vending machine operator holding a cigarette license shall notify the Comptroller within 10 days of the following:</text> <paragraph num="(1)"> <text>Discontinuance of a location; or</text> </paragraph> <paragraph num="(2)"> <text>Addition of a new location.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Cost to Wholesaler" Eliminated From Certain Purchases."> <text>A person who is a seller at both retail and wholesale as provided in Commercial Law Article, §11-501(m)(3), may:</text> <paragraph num="A."> <text>Purchase cigarettes from another wholesaler eliminating the “cost to the wholesaler” from the price paid for the cigarettes, as provided in Commercial Law Article, §11-503(c), only on those cigarettes purchased that are sold at wholesale; and</text> </paragraph> <paragraph num="B."> <text>Not purchase cigarettes pursuant to the provisions of Commercial Law Article, §11-503(c), which are sold at retail by the seller who is authorized to sell at both retail and wholesale.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Sales by Manufacturers' Representatives."> <text>A manufacturer's representative who sells cigarettes to a retailer may do so only:</text> <paragraph num="A."> <text>As the duly authorized representative of a licensed wholesaler; and</text> </paragraph> <paragraph num="B."> <text>On behalf of that wholesaler.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Wholesaler's Cost of Doing Business."> <paragraph num="A."> <text>Cost of Doing Business.</text> <paragraph num="(1)"> <text>The cost of doing business is presumed to be 5 percent of the basic cost of cigarettes to the wholesaler.</text> </paragraph> <paragraph num="(2)"> <text>Unless approved for a lower cost of doing business or meeting legal competition, as provided by this regulation, a wholesaler may not sell cigarettes to a retailer at less than a 5 percent markup.</text> </paragraph> <paragraph num="(3)"> <text>“Cost of doing business” means the wholesaler's cost of doing business in cigarettes as evidenced by the accounting standards and methods regularly employed by the wholesaler in determining costs for purposes of federal income tax reporting for the total operation of the wholesaler's establishment.</text> </paragraph> <paragraph num="(4)"> <text>The cost of doing business in cigarettes shall include, without limitation, allocations for:</text> <paragraph num="(a)"> <text>Labor, including salaries of executives and officers;</text> </paragraph> <paragraph num="(b)"> <text>Rent;</text> </paragraph> <paragraph num="(c)"> <text>Depreciation;</text> </paragraph> <paragraph num="(d)"> <text>Selling costs;</text> </paragraph> <paragraph num="(e)"> <text>Maintenance of equipment;</text> </paragraph> <paragraph num="(f)"> <text>Delivery costs;</text> </paragraph> <paragraph num="(g)"> <text>Interest payable;</text> </paragraph> <paragraph num="(h)"> <text>All types of licenses, taxes, insurance, and advertising; and</text> </paragraph> <paragraph num="(i)"> <text>All other direct and indirect costs.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The cost of doing business shall be expressed as a percentage and applied to the basic cost of cigarettes.</text> </paragraph> <paragraph num="(6)"> <text>A wholesaler who wishes to use the actual cost of doing business to the wholesaler pursuant to §A(3)(4) of this regulation rather that the presumptive cost of doing business to the wholesaler pursuant to §A(1)(2) of this regulation shall first establish satisfactory proof of a lesser cost of doing business.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When to File Application. A wholesaler who wishes to be approved for a lower cost of doing business shall submit an application to the Executive Director:</text> <paragraph num="(1)"> <text>If not currently approved for a lesser cost, at least 60 days before the desired effective date;</text> </paragraph> <paragraph num="(2)"> <text>If currently approved, not later than April 1 annually to be effective with the license year beginning May 1; and</text> </paragraph> <paragraph num="(3)"> <text>At other times as may be requested by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Application to Contain Certain Information.</text> <paragraph num="(1)"> <text>An application for permission to sell at less than 5 percent markup shall contain:</text> <paragraph num="(a)"> <text>A summary of total income and expenses associated with the licensee's entire business, and a summary of total income and expenses associated with cigarettes on a form to be provided by the Comptroller, and using the information set forth in the most recently filed federal income tax return;</text> </paragraph> <paragraph num="(b)"> <text>A certification statement signed by the owner, partner, or responsible corporate officer indicating that the summary of income and expenses as contained on the form required by §C(1)(a) of this regulation is true and accurate;</text> </paragraph> <paragraph num="(c)"> <text>A statement signed by a certified public accountant indicating the CPA has reviewed the information provided and that it reasonable reflects the information shown in all material respects;</text> </paragraph> <paragraph num="(d)"> <text>A copy of the most recently filed federal income tax return form with all associated schedules and attachments;</text> </paragraph> <paragraph num="(e)"> <text>A copy of any filing by the licensee seeking approval from the revenue authority of Delaware, Pennsylvania, New Jersey, or New York for a lower cost of doing business during the 12 months immediately preceding the application;</text> </paragraph> <paragraph num="(f)"> <text>A release executed by the owner, partner, or responsible corporate officer authorizing the Comptroller to obtain copies of any documents or data in the possession of any federal, state, or local agency concerning the applicant's request to sell cigarettes at a lower cost of doing business; and</text> </paragraph> <paragraph num="(g)"> <text>Any other information requested by the Executive Director as may be necessary to review the application.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the wholesaler regularly engages the services of an independent accounting firm, the statement provided under §C(1)(c) of this regulation shall be signed by a CPA associated with that firm.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Review and Determination. The Executive Director shall review and evaluate the information provided by the wholesaler and shall determine he allowable markup. The Executive Director shall notify the wholesaler of the final action on the application, and the specified percentage cost of doing business approved shall remain in effect until the next application and approval or until withdrawn by the Executive Director. If a person with permission to sell at less than a 5 percent markup fails to submit a new application by April 1, then the permission previously given shall be automatically withdrawn on May 1 of the same year.</text> </paragraph> <paragraph num="E."> <text>Meeting Lawful Competition. In order to meet lawful competition, any wholesaler may sell to any customer, or offer to sell to any potential customer, at the lowest markup approved for any wholesaler in the State. The Executive Director shall maintain a current list of the lowest currently approved markup which shall be released to wholesalers upon request.</text> </paragraph> <paragraph num="F."> <text>Remedy. Notwithstanding approval by the Executive Director of a lower cost of doing business, an affected party who claims to be injured may pursue remedies in a court of competent jurisdiction as provided by Commercial Law Article, §11-508, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Business Regulation Article, §§16-205(a) and 16-209(b); Commercial Law Article, §§11-501(e)(1)(ii), 11-502(a)(5), and 11-507; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Transferred from COMAR 03.02.03 to COMAR 14.23.02 effective December 26, 2022 (49:26 Md. R. 1080)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> </annotations> </chapter> <chapter num="03" heading="Beer Franchises and Local Alcoholic Beverage Reporting"> <regulation prefix="Regulation" num=".01" heading="Beer Franchises."> <paragraph num="A."> <text>A beer franchise filing is required to be filed with the Executive Director on the form prescribed by the Executive Director. A beer franchise form shall be filed periodically by:</text> <paragraph num="(1)"> <text>A beer nonresident dealer who sells beer to a Maryland wholesaler or county dispensary for distribution in the State;</text> </paragraph> <paragraph num="(2)"> <text>A Maryland brewery or microbrewery who sells beer to a Maryland wholesaler for distribution in the State; or</text> </paragraph> <paragraph num="(3)"> <text>A Maryland beer wholesaler who self-imports beer for sale in Maryland or subdistributes beer to another Maryland beer wholesaler for sale in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When a franchise status changes, a person required to file a beer franchise form under §A of this regulation shall report the change promptly to the Executive Director by filing a replacement beer franchise form or submitting an explanatory letter, or both.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Reports of Boards of License Commissioners and County Dispensaries."> <paragraph num="A."> <text>Report of Retail License Activity.</text> <paragraph num="(1)"> <text>Each retail alcoholic beverages license-issuing authority shall file on a monthly basis a report with the Executive Director, on forms provided or approved by the Executive Director, listing all retail alcoholic beverages license activity, including issuances, cancellations, transfers, revocations, etc., for the report month. Each issuing authority shall file the monthly report with the Executive Director by the 15th of the month following the report month. Reports are due even if there is no activity.</text> </paragraph> <paragraph num="(2)"> <text>Each alcoholic beverages license-issuing authority shall file annually a complete report of all retail alcoholic beverages licenses renewed for the year on forms provided or approved by the Executive Director. This annual report shall be filed by the 15th of the month following the month the licenses are renewed.</text> </paragraph> <paragraph num="(3)"> <text>Reports filed by the alcoholic beverages license-issuing authority shall include the names of licensees, entity name and trade name, address, and any other information the Executive Director may require. The Executive Director may adopt a Statewide control number to be used by the alcoholic beverages license-issuing authority when filing reports.</text> </paragraph> <paragraph num="(4)"> <text>Each alcoholic beverages license-issuing authority shall file annually a complete report of all revenue derived for the year preceding from retail alcoholic beverages licenses, on forms provided or approved by the Executive Director. This annual report shall be filed by August 15 annually.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Report of Dispensary Activities. Each county dispensary shall file annually a complete report summarizing all dispensary activities for the year on forms provided or approved by the Executive Director. This report shall be filed by August 15 annually and shall include gross profits, expenses, net profits of the dispensary, and any other information relating to the sale of alcoholic beverages that the Executive Director may require.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages Article, §§1-311, 5-103, and 5-104; Tax-General Article, §2-103; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 26, 2022 (49:26 Md. R. 1080)</annotation> </annotations> </chapter> <chapter num="04" heading="Alcoholic Beverage Trade Practices"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following words have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Advertising sign” means a printed board, poster, placard, or similar material provided by a supplier or licensed wholesaler to promote a particular alcoholic beverage product or supplier.</text> </paragraph> <paragraph num="(2)"> <text>“Alcoholic beverage list” means a list or other advertising piece which is provided to a specific licensed retailer or group of licensed retailers and includes:</text> <paragraph num="(a)"> <text>Captain's books, table tents, and similar items; and</text> </paragraph> <paragraph num="(b)"> <text>A list for wine, spirits, and beer.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Brand Identifiable Advertising Material.</text> <paragraph num="(a)"> <text>“Brand identifiable advertising material” means a distinctive or generic name, trademark, logo, or symbol, identifying the product of a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery.</text> </paragraph> <paragraph num="(b)"> <text>“Brand identifiable advertising material” includes proprietary or contracted logos and symbols.</text> </paragraph> <paragraph num="(c)"> <text>“Brand identifiable advertising material” does not include logos, symbols, or other depictions that are not brand related.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Brand owner” means a person or entity, including but not limited to a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery, who has:</text> <paragraph num="(a)"> <text>Documented title for a specific brand of alcoholic beverages; and</text> </paragraph> <paragraph num="(b)"> <text>If applicable, obtained label approval from the Alcohol and Tobacco Tax and Trade Bureau.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Bureau” means the Alcohol and Tobacco Tax Bureau of the Comptroller of the Treasury.</text> </paragraph> <paragraph num="(6)"> <text>“Charity or nonprofit group” means an organization which qualifies for an exemption from federal income taxes under Internal Revenue laws and regulations.</text> </paragraph> <paragraph num="(7)"> <text>“Commission” means the Alcohol, Tobacco, and Cannabis Commission.</text> </paragraph> <paragraph num="(8)"> <text>“Comptroller” means the Comptroller of Maryland or the Comptroller’s designee.</text> </paragraph> <paragraph num="(9)"> <text>“Consumer” means an individual of legal age who buys, possesses, keeps, or transports lawfully acquired alcoholic beverages for personal use only and not for sale.</text> </paragraph> <paragraph num="(10)"> <text>“Contest” means a competition which is rated or scored by independent judges to determine a winner and when the winner is chosen by some skill, ability, or knowledge.</text> </paragraph> <paragraph num="(11)"> <text>“Coupon” means:</text> <paragraph num="(a)"> <text>A rebate offer by which a consumer, upon purchase of an alcoholic beverage product, is reimbursed monetarily by the supplier or independent clearinghouse representing the supplier; or</text> </paragraph> <paragraph num="(b)"> <text>An offer by which a consumer, with or without consideration, may obtain merchandise, other than alcoholic beverage products, through a supplier or independent clearinghouse.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee.</text> </paragraph> <paragraph num="(13)"> <text>“General advertising” means a printed, spoken, or visual public announcement paid for by a supplier or wholesaler to promote a particular alcoholic beverage product or supplier and does not identify or benefit a particular retailer or group of retailers.</text> </paragraph> <paragraph num="(14)"> <text>Licensed Retailer.</text> <paragraph num="(a)"> <text>“Licensed retailer” means the alcoholic beverage premises as described by the alcoholic beverage retail license as issued by the respective county or city license issuing authority.</text> </paragraph> <paragraph num="(b)"> <text>For the purpose of an arena class alcoholic beverage license, each separate vendor or business entity handling alcoholic beverages is considered a separate licensed retailer.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Nonresident dealer” means a person or entity that holds a nonresident dealer permit issued pursuant to Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(16)"> <text>“On-premises advertising” means point-of-sale material in the form of a sign, placard, display, or other item provided by a supplier or licensed wholesaler placed on a licensed retailer's premises and intended to promote a particular product or supplier of alcoholic beverages.</text> </paragraph> <paragraph num="(17)"> <text>“On-premises promotion” means an activity:</text> <paragraph num="(a)"> <text>Intended to promote a brand owner or brand owner's product which is sponsored by a supplier, licensed wholesaler or retailer, or a nonlicensee, including but not limited to a charity, radio station, or third-party promotional agency; and</text> </paragraph> <paragraph num="(b)"> <text>Held on the premises of an alcoholic beverage licensed retailer.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>Personalized Material.</text> <paragraph num="(a)"> <text>“Personalized material” means any advertising sign, wording, or information which is unique to a retailer or group of retailers.</text> </paragraph> <paragraph num="(b)"> <text>“Personalized material” includes but is not limited to:</text> <paragraph num="(i)"> <text>The name of the retailer;</text> </paragraph> <paragraph num="(ii)"> <text>Product size, packaging, or pricing;</text> </paragraph> <paragraph num="(iii)"> <text>Menus; or</text> </paragraph> <paragraph num="(iv)"> <text>Information promoting a retailer's event or activity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(19)"> <text>“Representative” means an individual who is employed by or acts as an agent of a brand owner, nonresident dealer permittee, supplier, or licensed wholesaler and includes the holder of a solicitor's permit.</text> </paragraph> <paragraph num="(20)"> <text>“Retailer” means a person or entity that holds an alcoholic beverage retail license pursuant to Alcoholic Beverage Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(21)"> <text>Supplier.</text> <paragraph num="(a)"> <text>“Supplier” means a person or entity that sells alcoholic beverages to a licensed wholesaler in Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Supplier” includes a brand owner, nonresident dealer permittee, agent of the brand owner or nonresident dealer permittee, and the holder of a Maryland manufacturer's license.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Sweepstakes” means a drawing where the winner is chosen by lottery, matching game pieces, or a game of chance, or similar type of event which does not require any skill, ability, or knowledge in order to be selected.</text> </paragraph> <paragraph num="(23)"> <text>“Third party” means an independent advertising or promotional agency, or any other person who is contracted by a supplier or a licensed wholesaler to conduct promotional activities on the premises of an alcoholic beverage licensed retailer.</text> </paragraph> <paragraph num="(24)"> <text>Wholesaler.</text> <paragraph num="(a)"> <text>“Wholesaler” means a person or entity that holds an alcoholic beverage wholesale license pursuant to Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Wholesaler” includes a nonresident winery permit holder.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="General Provisions."> <paragraph num="A."> <text>A representative may not engage in an activity that is impermissible on the part of the brand owner, nonresident dealer, supplier, or licensed wholesaler. If the representative is found to be acting contrary to this chapter, the representative's license or permit may be subject to suspension or revocation, and the license or permit of the representative's employer may be subject to suspension or revocation.</text> </paragraph> <paragraph num="B."> <text>Trade practice restrictions upon a brand owner, supplier, or licensed wholesaler, which apply to alcoholic beverage products, advertising, or promotions, apply equally to nonalcoholic products if the activity or service could be construed as providing something of value to a licensed retailer or as relieving the licensed retailer of an ordinary business expense.</text> </paragraph> <paragraph num="C."> <text>If a licensee or permittee is deemed to be acting contrary to one or more specific provisions of this chapter, in whole or in part, in addition to other available administrative remedies, including suspension or revocation of a license or permit, the licensee's or permittee's authority to engage in that particular trade practice activity may be temporarily or permanently terminated, without affecting the other aspects of the licensee's or permittee's operation or authority.</text> </paragraph> <paragraph num="D."> <text>This chapter is applicable to all alcoholic beverage trade practice regulations. If there is a specific conflict with previously issued administrative notices or bulletins, these regulations prevail. Otherwise, any prior notice or bulletin on the subject of trade practices remains in effect.</text> </paragraph> <paragraph num="E."> <text>If a general statement conflicts with an exception or qualification applicable to persons or sets of circumstances, the regulation as stated in the exceptions or qualifications prevails over the general provisions insofar as there is any conflict or inconsistency between the two.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Coupons."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>A coupon may only be provided to the consumer:</text> <paragraph num="(a)"> <text>At the point of purchase;</text> </paragraph> <paragraph num="(b)"> <text>Through direct mail;</text> </paragraph> <paragraph num="(c)"> <text>Through the print media; or</text> </paragraph> <paragraph num="(d)"> <text>Via a portable data file that is accessible from the Internet.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler and retailer and their employees and immediate families may not participate in supplier-sponsored coupon promotions.</text> </paragraph> <paragraph num="(3)"> <text>A licensed wholesaler and retailer may provide application forms and coupon books to be displayed on retail premises.</text> </paragraph> <paragraph num="(4)"> <text>A licensed retailer may promote supplier-sponsored coupons in its advertising.</text> </paragraph> <paragraph num="(5)"> <text>A coupon offer shall have a definite expiration date printed on the coupon certificate.</text> </paragraph> <paragraph num="(6)"> <text>Multiple coupon offers are permitted.</text> </paragraph> <paragraph num="(7)"> <text>Coupons shall have wording stating that only individuals 21 years old or older may redeem coupons.</text> </paragraph> <paragraph num="(8)"> <text>Redemption shall require a proof of purchase.</text> </paragraph> <paragraph num="(9)"> <text>A monetary coupon offer may not exceed the supplier-to-wholesaler price during the period the coupon offer is in effect.</text> </paragraph> <paragraph num="(10)"> <text>A coupon offer shall be submitted to the Executive Director upon request.</text> </paragraph> <paragraph num="(11)"> <text>A coupon offer which the supplier considers questionable shall be submitted to the Executive Director for review before its use in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Supplier Coupon Records.</text> <paragraph num="(1)"> <text>Records Availability.</text> <paragraph num="(a)"> <text>A supplier who maintains an office in Maryland shall maintain records available for inspection by the Executive Director.</text> </paragraph> <paragraph num="(b)"> <text>A supplier located out-of-State shall make records available to the Executive Director upon request within 48 hours.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Record Requirements.</text> <paragraph num="(a)"> <text>Documentation shall include:</text> <paragraph num="(i)"> <text>The method used to distribute the coupon offer;</text> </paragraph> <paragraph num="(ii)"> <text>The mailing list used to issue the coupon offer;</text> </paragraph> <paragraph num="(iii)"> <text>The date the coupon went into effect; and</text> </paragraph> <paragraph num="(iv)"> <text>The date the coupon expires.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Records shall be preserved for 2 years after the date the coupon expires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Records Designation. A supplier shall:</text> <paragraph num="(a)"> <text>Designate in writing where the records will be maintained;</text> </paragraph> <paragraph num="(b)"> <text>Designate in writing the person responsible for maintaining the records; and</text> </paragraph> <paragraph num="(c)"> <text>Inform the Executive Director when the location or person responsible for the records changes.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Alcoholic Beverage Lists."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>Except as provided in this regulation, a supplier, licensed wholesaler, or person connected with a supplier or licensed wholesaler may not furnish, procure, or otherwise prepare an alcoholic beverage list for a licensed retailer.</text> </paragraph> <paragraph num="(2)"> <text>A licensed retailer may prepare and provide the retailer's own alcoholic beverage list if there is not an exclusive arrangement with consideration given by a supplier or licensed wholesaler to the licensed retailer.</text> </paragraph> <paragraph num="(3)"> <text>A supplier may procure alcoholic beverage lists for a licensed retailer. The supplier shall charge the licensed retailer fair market value or higher.</text> </paragraph> <paragraph num="(4)"> <text>A list sold to a licensed retailer is not limited on the quantity and type of products listed.</text> </paragraph> <paragraph num="(5)"> <text>A licensed retailer and licensed wholesaler shall maintain documentation on their respective premises for a period of 2 years for lists sold to a licensed retailer.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Table Tents. Alcoholic Beverages table tents may be personalized if the personalized portion is not more than 1/2 of the overall table tent.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Tastings."> <paragraph num="A."> <text>Except as provided in this chapter or Alcoholic Beverages Article, Annotated Code of Maryland, a supplier or licensed wholesaler may not sponsor or participate in an alcoholic beverage tasting on licensed retail premises.</text> </paragraph> <paragraph num="B."> <text>An alcoholic beverage tasting may be given by a supplier or licensed wholesaler only to bona fide members and guests of a:</text> <paragraph num="(1)"> <text>Charitable organization;</text> </paragraph> <paragraph num="(2)"> <text>Nonprofit group or association;</text> </paragraph> <paragraph num="(3)"> <text>Trade association; or</text> </paragraph> <paragraph num="(4)"> <text>Group of retailers by invitation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An alcoholic beverage tasting may be held only:</text> <paragraph num="(1)"> <text>On the licensed premises of a licensed wholesaler or supplier;</text> </paragraph> <paragraph num="(2)"> <text>On nonlicensed premises; or</text> </paragraph> <paragraph num="(3)"> <text>In a private room, not open to the public, which is located on licensed retail premises.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Alcoholic beverages provided for a tasting shall be obtained through the licensed wholesaler's sample account and shown on the wholesaler's monthly tax return if held on:</text> <paragraph num="(1)"> <text>The premises of a licensed wholesaler or supplier; or</text> </paragraph> <paragraph num="(2)"> <text>Nonlicensed premises.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A tasting may be held on licensed retail premises only if:</text> <paragraph num="(1)"> <text>The product is provided by the licensed retailer;</text> </paragraph> <paragraph num="(2)"> <text>Representatives of wine and distilled spirits suppliers or licensed wholesalers have a valid solicitor's permit for:</text> <paragraph num="(a)"> <text>Guest speakers,</text> </paragraph> <paragraph num="(b)"> <text>Experts, or</text> </paragraph> <paragraph num="(c)"> <text>Anyone operating under contractual or other agreements with the supplier or licensed wholesaler; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Details on the proposed tasting are submitted to the Executive Director as provided by Regulation .12 of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>“Winemaker” dinners or similar dinners including beer or distilled spirits are permitted on a limited basis when held on licensed retailer's premises and involving participation of a brand owner's, supplier's, or licensed wholesaler's representative pursuant to Regulation .10 of this chapter.</text> </paragraph> <paragraph num="G."> <text>Consumer Tastings. A consumer tasting may be held:</text> <paragraph num="(1)"> <text>For the purpose of market survey or analysis:</text> <paragraph num="(a)"> <text>On nonlicensed premises,</text> </paragraph> <paragraph num="(b)"> <text>By an independent research agency, and</text> </paragraph> <paragraph num="(c)"> <text>If the Executive Director has advance notice and has given approval 14 days before conducting the survey;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>By a supplier or licensed wholesaler for nonalcoholic beverage products on licensed retail premises, if the tasting is:</text> <paragraph num="(a)"> <text>Spontaneous, and</text> </paragraph> <paragraph num="(b)"> <text>Not announced in advance to the licensed retailer or public at large.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Tastings sponsored by a supplier or licensed wholesaler may not be designed or used as an inducement to a licensed retailer.</text> </paragraph> <paragraph num="I."> <text>A supplier and licensed wholesaler who conduct tastings shall retain a file available for inspection on each event for 2 years. The file shall contain:</text> <paragraph num="(1)"> <text>Full particulars of each tasting; and</text> </paragraph> <paragraph num="(2)"> <text>A list of all persons who attended.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Relationships with Consumers."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>A consumer's source of supply is a licensed retailer.</text> </paragraph> <paragraph num="(2)"> <text>A representative or agent of a supplier or licensed wholesaler may provide to consumers in trivial quantities:</text> <paragraph num="(a)"> <text>Nominal advertising items such as matches, pencils, buttons, can openers, recipes, pamphlets, and similar items; and</text> </paragraph> <paragraph num="(b)"> <text>Nonapparel items as part of a nonstructured promotional campaign during a spontaneous and isolated visit to licensed retail premises.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensed wholesaler or supplier may furnish samples for use by any bona fide religious, fraternal, civic, veterans, hospital, or charitable organization if it is a nonprofit organization which does not hold an alcoholic beverage retail license.</text> </paragraph> <paragraph num="(4)"> <text>A supplier or licensed wholesaler representative may have contact with consumers as permitted by Regulation .12 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Solicitation of Consumers.</text> <paragraph num="(1)"> <text>Only an employee of a licensed retailer may directly solicit an order for alcoholic beverages from a consumer.</text> </paragraph> <paragraph num="(2)"> <text>A promotion or contact for an order that entails personal solicitation of a consumer away from licensed retailer's premises is prohibited.</text> </paragraph> <paragraph num="(3)"> <text>A supplier or licensed wholesaler representative may have casual conversations with consumers away from the licensed retail premises concerning the merits of products if the conversations or discussions are not for the purpose of selling or offering for sale alcoholic beverages to the consumers.</text> </paragraph> <paragraph num="(4)"> <text>A solicitor or salesperson may buy a consumer a drink at licensed, on-sale retail premises if:</text> <paragraph num="(a)"> <text>The action is spontaneous and without prior notice to either the licensed retailer or consumer;</text> </paragraph> <paragraph num="(b)"> <text>The alcoholic beverages are purchased from the licensed retailer at full price; and</text> </paragraph> <paragraph num="(c)"> <text>The licensee or competitor licensee is not at the premises conducting a pre-announced or pre-planned promotional activity at the time of the visit (see Regulation .12B(6) of this chapter).</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A supplier or licensed wholesaler may have mailings of advertising materials to consumers as permitted by this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Third Parties and Charitable Groups."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>A third party, acting on behalf of a licensed supplier or licensed wholesaler, may not engage in a promotional activity that would not be approved if it were submitted by the licensed supplier or wholesaler.</text> </paragraph> <paragraph num="(2)"> <text>A supplier, licensed wholesaler, or third party may not use a charitable or nonprofit organization, a person or entity affiliated with or related to a licensee, or another third party, as a surrogate to circumvent the alcoholic beverage statutes or regulations.</text> </paragraph> <paragraph num="(3)"> <text>A charitable group may engage in independent fund-raising activities on licensed retail premises.</text> </paragraph> <paragraph num="(4)"> <text>A charitable group may receive a legitimate, non-product donation from a supplier or licensed wholesaler when the charitable group does not possess a retail license.</text> </paragraph> <paragraph num="(5)"> <text>A representative of a third party who engages in an approved alcoholic beverage promotional activity on behalf of a supplier or licensed wholesaler shall obtain a Maryland solicitor's permit in accordance with COMAR 14.23.01.07.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Requests for Approval.</text> <paragraph num="(1)"> <text>Information pertaining to promotional activities involving the direct or indirect involvement of a supplier or licensed wholesaler shall be submitted in accordance with Regulation .12 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>When a third party is used to submit a proposal on behalf of the licensee, the proposal shall be accompanied by a letter signed by the licensee or, in the case of a corporation, by a corporate officer of the licensee indicating the licensee's:</text> <paragraph num="(a)"> <text>Designation of the relationship of the third party; and</text> </paragraph> <paragraph num="(b)"> <text>Acceptance of full responsibility for all activities of the third party while acting on behalf of the licensee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Sweepstakes and Contests."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>Proposals for conducting a sweepstakes or contest in the State shall be submitted to the Executive Director in time to be approved 14 days before the start of the contest or sweepstakes.</text> </paragraph> <paragraph num="(2)"> <text>A supplier or licensed wholesaler may sponsor a sweepstakes or contest in accordance with this chapter.</text> </paragraph> <paragraph num="(3)"> <text>A third-party promotional agency may sponsor a sweepstakes or contest if it complies with Regulation .07 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>A sweepstakes or contest may be advertised on radio, in newspapers, or in magazines if the licensed retailers are only referred to in general and not by name.</text> </paragraph> <paragraph num="(5)"> <text>A sweepstakes or contest held by a supplier or licensed wholesaler is not limited to a specific licensed retailer or group of licensed retailers.</text> </paragraph> <paragraph num="(6)"> <text>Instant winner vouchers shall be randomly placed in alcohol product packages if the licensed retailer has no knowledge of the placement and a record is kept of all parties who redeem a voucher.</text> </paragraph> <paragraph num="(7)"> <text>A licensed retailer may not participate in a sweepstakes or contest sponsored by a supplier or licensed wholesaler, or a third party representing a supplier or licensed wholesaler, except to display point-of-sale materials and provide entry blanks.</text> </paragraph> <paragraph num="(8)"> <text>A means of entry may be provided on neck hangers, or on or in caps, cap liners, corks, containers, label cartons, cases, or other material obtained by purchasing alcoholic beverages, if an alternative means of entry that does not require a purchase of alcoholic beverages is provided.</text> </paragraph> </paragraph> <paragraph num="B."> <text>General Sweepstakes and Contest Rules.</text> <paragraph num="(1)"> <text>Sweepstakes and contest participants shall be of legal drinking age.</text> </paragraph> <paragraph num="(2)"> <text>A supplier, licensed wholesaler or retailer, or their families or employees are not eligible to participate or receive prizes.</text> </paragraph> <paragraph num="(3)"> <text>A purchase of alcoholic beverages is not required to enter a sweepstakes or contest.</text> </paragraph> <paragraph num="(4)"> <text>Contest rules shall state:</text> <paragraph num="(a)"> <text>The beginning date and deadline for entry;</text> </paragraph> <paragraph num="(b)"> <text>Prizes;</text> </paragraph> <paragraph num="(c)"> <text>Chances of winning;</text> </paragraph> <paragraph num="(d)"> <text>How winners are chosen; and</text> </paragraph> <paragraph num="(e)"> <text>Any other general rules.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="General Advertising."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>Advertising when paid for by the supplier or licensed wholesaler may not identify a particular licensed retailer, the retailer's employees, or the retailer's licensed premises.</text> </paragraph> <paragraph num="(2)"> <text>A licensed retailer or group of licensed retailers may not benefit, directly or indirectly, more than licensed retailers in general for advertisements when they are paid for by the supplier or licensed wholesaler.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Cost of Advertising.</text> <paragraph num="(1)"> <text>A licensed wholesaler or retailer may not participate, directly or indirectly, in the cost of promoting or advertising wine or distilled spirit products unless the licensed wholesaler or retailer is the brand owner.</text> </paragraph> <paragraph num="(2)"> <text>A supplier or brand owner may not undertake any plan or design which directly or indirectly results in the purchase of wine or distilled spirits advertising materials, supplies, or services by a licensed wholesaler or retailer.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Advertising Categories.</text> <paragraph num="(1)"> <text>Radio and Television Advertising.</text> <paragraph num="(a)"> <text>Advertising of alcoholic beverages on radio or television is permitted if the advertising meets the requirements of the Alcohol and Tobacco Tax and Trade Bureau and the Federal Communications Commission.</text> </paragraph> <paragraph num="(b)"> <text>A supplier, nonresident dealer permittee, and licensed wholesaler may not directly or indirectly provide, pay, or credit a licensed retailer with radio or television advertisements.</text> </paragraph> <paragraph num="(c)"> <text>A licensed retailer may not use advertising credits or “free spots” that have been accrued by a supplier or licensed wholesaler based upon other contractual agreements.</text> </paragraph> <paragraph num="(d)"> <text>A licensed retailer shall pay for radio and television advertising for the purpose of promoting the licensee's general business, location, or any special promotions independently conducted by the licensed retailer.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Print Advertising.</text> <paragraph num="(a)"> <text>General newspaper, magazine, and periodical advertisements of alcoholic beverages are permissible if they comply with the provisions of COMAR 14.23.01.05.</text> </paragraph> <paragraph num="(b)"> <text>Restrictions on advertising related to radio and television as stated in this regulation also apply to print advertising.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Billboards.</text> <paragraph num="(a)"> <text>A supplier or licensed beer wholesaler may advertise on a billboard when the advertising is brand-identifiable and of benefit only to licensed retailers in general.</text> </paragraph> <paragraph num="(b)"> <text>A licensed retailer may advertise on billboards if the cost is paid by the licensed retailer and the advertising does not promote a particular wine or distilled spirit product.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Giant Inflatable Balloons, Bottles, Cans, and Mobile Displays.</text> <paragraph num="(a)"> <text>A display may be used in parades and other functions if it is not brought to permanent rest in front of a licensed retailer's premises.</text> </paragraph> <paragraph num="(b)"> <text>A display is permitted on or near licensed retail premises if it is intended to promote an authorized event being held or sponsored by a supplier, licensed wholesaler, nonprofit organization, or trade association, and is not intended to promote a particular licensed retailer.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="On-Premises Advertising."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>A neon or other sign, poster, placard, device, or graphic display bearing advertising matter, or any other form of advertising, for use in windows or elsewhere on the licensed premises, may be given by a supplier or licensed wholesaler to licensed retailer if:</text> <paragraph num="(a)"> <text>The utilitarian value is secondary and only incidental to the value as an advertisement;</text> </paragraph> <paragraph num="(b)"> <text>The total value of any single advertising item furnished for use in a licensed retail establishment at any time does not exceed $150 except, however, that a malt beverage sign manufactured by a beer wholesaler and provided to a retailer may not exceed $50; and</text> </paragraph> <paragraph num="(c)"> <text>The cost of installation of an item does not exceed that which is usual and customary in that particular locality.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Generally, the total cost of advertising items for products produced by a given brand owner on the premises of a given licensed retailer may not exceed $600 by a brand owner of wine or distilled spirits.</text> </paragraph> <paragraph num="(3)"> <text>Advertising or promotional materials, such as paper cups, matches, brochures, leaflets, circulars, napkins, placemats, calendars, or similar items, may be furnished to licensed retailers if the:</text> <paragraph num="(a)"> <text>Advertising is general in nature;</text> </paragraph> <paragraph num="(b)"> <text>Advertising does not identify a particular licensed retailer or licensed premises;</text> </paragraph> <paragraph num="(c)"> <text>Promotional item is provided in trivial quantities; and</text> </paragraph> <paragraph num="(d)"> <text>Promotional item does not relieve the licensed retailer of an ordinary business expense.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Advertising items, displays, and other promotional materials for nonalcoholic beverage products shall meet the same criteria and be subject to the same limitations as alcohol products if provided by a supplier or licensed wholesaler. To do otherwise could be construed as providing the licensed retailer with something of value contrary to applicable provisions of Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>An alcoholic beverage advertising sign, display, or item on a licensed retailer's premises is subject to confiscation if it is contrary to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland, or any regulation under this subtitle.</text> </paragraph> <paragraph num="(6)"> <text>Advertising items may be furnished to licensed retailers in connection with a bona fide promotion as permitted by this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Distilled Spirits and Wine Advertising.</text> <paragraph num="(1)"> <text>An advertisement may not be personalized for a particular licensed retailer or a licensee's retail promotion.</text> </paragraph> <paragraph num="(2)"> <text>Advertising material for an activity common to all licensed retailers that is mass produced and contains prominent and permanent material is permissible if:</text> <paragraph num="(a)"> <text>A licensed retailer is not identified; and</text> </paragraph> <paragraph num="(b)"> <text>The utilitarian value is secondary and only incidental to the value as an advertisement.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Beer Advertising.</text> <paragraph num="(1)"> <text>A manufacturer, malt beverage supplier, nonresident dealer permittee, or a licensed wholesaler may not provide newspaper, radio, or television advertisement to a licensed retailer directly or indirectly.</text> </paragraph> <paragraph num="(2)"> <text>A sign, display, or other form of advertising shall contain brand identifiable advertising material that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item.</text> </paragraph> <paragraph num="(3)"> <text>An advertising sign, poster, or point-of-sale material may contain personalized material for a particular licensed retailer if the personalized material is not more than 50 percent of the total dimension of the sign, poster, placard, or other material.</text> </paragraph> <paragraph num="(4)"> <text>An advertising sign, poster, or other point-of-sale material which contains personalized material shall contain brand identification which is equal to or greater than the personalized portion of the advertising sign, but in no case shall brand identification constitute less than 1/3 of the total area of the advertising sign.</text> </paragraph> <paragraph num="(5)"> <text>If an advertising sign, poster, or other point-of-sale material has no personalized material, the limits and restrictions set forth in §C(3) and (4) of this regulation do not apply.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Retailer and Consumer Advertising Specialties.</text> <paragraph num="(1)"> <text>Nonpersonalized items, such as trays, coasters, mats, paper napkins, cups, and similar items that advertise a supplier's brand, are permitted to be given to a licensed retailer in trivial quantities.</text> </paragraph> <paragraph num="(2)"> <text>Specialty items may not be provided with a licensed retailer's name or logo placed on the item.</text> </paragraph> <paragraph num="(3)"> <text>Retailer advertising specialties do not relieve the licensed retailer of an ordinary business expense.</text> </paragraph> <paragraph num="(4)"> <text>Nonpersonalized items in excess of trivial quantities shall be sold to the licensed retailer at fair market value or higher if documentation of the sale is maintained.</text> </paragraph> <paragraph num="(5)"> <text>Hats, towels, t-shirts, glassware, and similar items that have manufacturer or supplier advertising shall be sold to licensed retailers at fair market value.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Product Displays.</text> <paragraph num="(1)"> <text>A product display includes wine racks, bins, barrels, casks, shelving, and similar items, the primary function of which is to hold, shelve, or display product.</text> </paragraph> <paragraph num="(2)"> <text>A product display may not exceed the dollar limitations as described in Alcoholic Beverages Article, §§2-216 and 2-315, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>A display may not contain merchandise contained in a consumer offer program.</text> </paragraph> <paragraph num="(4)"> <text>A representative of licensed wine and liquor suppliers or wholesalers may not build displays on a licensed retailer's floor in excess of 15 cases. A display may be built anywhere on the licensed premises but may not be built onto a part of the existing shelving system at the retailer's establishment. A wine and liquor salesperson or merchandiser, or both, may build displays in excess of 15 cases but must make the appropriate charge back to the supplier. A beer salesperson may build displays and is not limited as to quantity if the advertising value of the display exceeds any secondary service provided to the licensed retailer.</text> </paragraph> <paragraph num="(5)"> <text>A supplier and wholesaler representative may not use a licensed retailer's fixtures or equipment to build or maintain displays.</text> </paragraph> <paragraph num="(6)"> <text>Except as provided in §E(10) of this regulation, when a display has been built, a salesperson or merchandiser may not rebuild the display, and a licensed retailer may not require a salesperson or merchandiser to move the display from one area of the licensed premises to another.</text> </paragraph> <paragraph num="(7)"> <text>A salesperson or merchandiser may not use licensed retailer-supplied equipment, supplies, computers, etc. to make or prepare product or other signs at a licensed retail establishment. It is permissible for a supplier or wholesaler representative to place “bottle neckers” on their products if no licensed retailer-supplied equipment or materials are used.</text> </paragraph> <paragraph num="(8)"> <text>An advertising item permitted by this regulation used in the display shall have brand identification that is conspicuous and permanent.</text> </paragraph> <paragraph num="(9)"> <text>An advertising item with a utilitarian value shall be altered or disabled in a manner as to render it not usable for its normal purpose.</text> </paragraph> <paragraph num="(10)"> <text>When a beer or malt beverage product display has been built, a salesperson, merchandiser, or driver may replenish or rebuild the display for purposes of product rotation at the time of a regularly scheduled delivery, merchandisers call, or sales call, subject to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Umbrellas.</text> <paragraph num="(1)"> <text>A brand owner may furnish for display and use by a licensed retailer up to a total of 12 umbrellas advertising alcoholic beverages or nonalcoholic beer products, if:</text> <paragraph num="(a)"> <text>The total cost of umbrellas does not exceed $600; and</text> </paragraph> <paragraph num="(b)"> <text>No single brand is represented by more than six umbrellas.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Umbrellas permitted under this section shall be displayed on the licensed retailer's premises.</text> </paragraph> <paragraph num="(3)"> <text>Umbrellas removed from the licensed retailer's premises may be returned to the brand owner.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Approvals of On-Premises Advertising.</text> <paragraph num="(1)"> <text>It is not necessary to submit to the Executive Director for approval point-of-sale advertising items that are used consistent with this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The burden of proof that all on-premises advertising items meet the requirements of this chapter rests with the supplier or nonresident dealer permit holders.</text> </paragraph> <paragraph num="(3)"> <text>A supplier shall submit for approval to the Executive Director advertising items of a questionable nature to assure they are operating within the provisions of this chapter.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Approval of Advertising and Promotional Contracts.</text> <paragraph num="(1)"> <text>Before an alcoholic beverages supplier or malt beverage wholesaler enters into a contract for advertising and promotional services that will occur on the premises of a retail licensee in exchange for a sponsorship fee or other consideration, a copy of the contract, with supporting documentation, shall be submitted to the Executive Director for review.</text> </paragraph> <paragraph num="(2)"> <text>A supplier or wholesaler shall receive approval from the Executive Director prior to entering into a contract under §A(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Services to Retailers."> <paragraph num="A."> <text>In General.</text> <paragraph num="(1)"> <text>Except as provided in COMAR 14.23.01 or this chapter, a brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide something of value to a licensed retailer as prohibited by provisions of Alcoholic Beverages Article, Annotated Code of Maryland</text> </paragraph> <paragraph num="(2)"> <text>A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide a service or item of utilitarian value which would relieve a licensed retailer of an ordinary business expense.</text> </paragraph> <paragraph num="(3)"> <text>A supplier or licensed wholesaler may not move, stock, rotate, dust, or otherwise alter or disturb a competitor's products on a licensed retailer's premises.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Shelf Management.</text> <paragraph num="(1)"> <text>A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may discuss in general and specific terms with a licensed retailer shelf-management concepts and programs which benefit the licensed retailer in marketing all of the licensed retailer's alcoholic beverage products.</text> </paragraph> <paragraph num="(2)"> <text>A supplier or licensed wholesaler may provide, publish, and generally make available data on market sales and analysis.</text> </paragraph> <paragraph num="(3)"> <text>A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may provide and suggest shelf-management plans or schematics which are personalized for a specific licensed retailer or group of licensed retailers.</text> </paragraph> <paragraph num="(4)"> <text>Implementation of a suggested shelf-management plan shall be done solely by the licensed retailer.</text> </paragraph> <paragraph num="(5)"> <text>A supplier or licensed wholesaler representative may not participate in stocking or rearranging shelves in connection with a shelf-management plan.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Shelf Stocking and Product Rotation.</text> <paragraph num="(1)"> <text>A supplier or licensed wholesaler may not stock shelves, price items, or arrange any products including its own, for a licensed retailer except as provided in this chapter.</text> </paragraph> <paragraph num="(2)"> <text>A supplier or licensed wholesaler may rotate products, when rotation is performed to ensure product freshness and to take advantage of limited shelf life products.</text> </paragraph> <paragraph num="(3)"> <text>Limited rotation does not include any of the following activities:</text> <paragraph num="(a)"> <text>Opening of cases;</text> </paragraph> <paragraph num="(b)"> <text>Placement of individual bottles on shelves or in coolers;</text> </paragraph> <paragraph num="(c)"> <text>Movement of products from one shelf location to another location;</text> </paragraph> <paragraph num="(d)"> <text>Rearrangement of alcoholic beverages in a storage or sales area in less than case lots; or</text> </paragraph> <paragraph num="(e)"> <text>Shelf management.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Beer, malt beverage products, wine coolers, and spirit coolers differ somewhat from other alcoholic beverages due to limited shelf life. A driver or salesperson may rotate a licensed wholesaler's own product that is meant to be accessible by the consumer so that the current delivery is placed in the position of being “first in, first out”.</text> </paragraph> <paragraph num="(5)"> <text>A supplier or licensed wholesaler that distributes nonalcoholic beverage products, for example, sodas, teas, bottled water, juices, and other items, may stock shelves at a retail licensed premises with those products. This shelf stocking of nonalcoholic beverage products may not include nonalcohol beer or nonalcohol wine products.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A supplier or licensed wholesaler may dust alcoholic beverage products, but the dusting may not be used as a subterfuge for shelf stocking or impermissible rotation.</text> </paragraph> <paragraph num="E."> <text>A supplier or licensed wholesaler may not enter into an agreement, financial or otherwise, with a licensed retailer to assure a certain allocation or positioning of shelf space, including a slotting allowance, for the licensed wholesaler's or supplier's product.</text> </paragraph> <paragraph num="F."> <text>A supplier or licensed wholesaler representative may set up advertising displays on a licensed retailer's premises consistent with the provision of Regulation .10 of this chapter.</text> </paragraph> <paragraph num="G."> <text>Draft Equipment.</text> <paragraph num="(1)"> <text>A licensed wholesaler may furnish at no charge to a licensed retailer minimum services to beer or wine draft systems, such as cleaning lines and minor repairs and parts such as washers, nuts, or clamps, and may provide the necessary equipment to take beer from the keg to the stanchion station if the parts and equipment are minimal in cost.</text> </paragraph> <paragraph num="(2)"> <text>A licensed wholesaler may provide items such as:</text> <paragraph num="(a)"> <text>Nitrogen, CO2, spigots, faucets, coil cooler boxes, drip trays, and similar items for beer draft systems at cost or above; and</text> </paragraph> <paragraph num="(b)"> <text>Nitrogen, pumps, mounts, gauges, regulators, standards, and similar items for wine draft systems at cost or above.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensed wholesaler may not give any refrigeration or draft equipment to a licensed retailer. A licensed wholesaler may rent or lease refrigeration or draft equipment to a licensed retailer at fair market value or higher.</text> </paragraph> <paragraph num="(4)"> <text>A licensed wholesaler may perform the labor service part of draft system installation or alterations and may repair equipment such as refrigerators or compressors if the licensed wholesaler charges at least fair market value, or higher, for labor and parts.</text> </paragraph> <paragraph num="(5)"> <text>A licensed wholesaler representative may be present at a special event where alcoholic beverages are dispensed from rented refrigerated trucks, but may not dispense or provide other assistance before, during, or after the event except to:</text> <paragraph num="(a)"> <text>Ensure protection of the licensed wholesaler's equipment; and</text> </paragraph> <paragraph num="(b)"> <text>Set up tapes and train licensed retailer's representatives in their use.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Inventories and Deliveries.</text> <paragraph num="(1)"> <text>A salesperson may take inventory of the salesperson's company's products for purposes of recommending a purchase order. Orders may not be taken for products not in the licensed wholesaler's inventory.</text> </paragraph> <paragraph num="(2)"> <text>A salesperson may not place a licensed retailer's inventory in or on a licensed retailer's computer or other records of the licensed retailer, and a salesperson may not develop a customized product or price list for a particular licensed retailer or group of licensed retailers but may provide a generic diskette which shall be made available to any licensed retailer who requests a generic diskette.</text> </paragraph> <paragraph num="(3)"> <text>Locations of Deliveries.</text> <paragraph num="(a)"> <text>Except as provided in §H(3)(b) and (c) of this regulation, deliveries of alcoholic beverages shall be made to a central point at a licensed retailer's establishment whether the central point is in the sales area or a particular area designated for storage.</text> </paragraph> <paragraph num="(b)"> <text>Deliveries of beer and malt beverage products may be made to multiple locations within the licensed retail establishment.</text> </paragraph> <paragraph num="(c)"> <text>Deliveries of alcoholic beverage products may be made to multiple locations within the arena and stadium licensed premises.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Deliveries shall be made on the invoice date or the next delivery date to that area. If the delivery is not made, the order shall be canceled and a new order prepared with the appropriate price and conditions of sale for the date of the most recent order.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="On-Premises Promotions."> <paragraph num="A."> <text>Description.</text> <paragraph num="(1)"> <text>An on-premises promotion is an activity to promote a brand owner's product that includes:</text> <paragraph num="(a)"> <text>Brand owner promotions;</text> </paragraph> <paragraph num="(b)"> <text>Charity promotions;</text> </paragraph> <paragraph num="(c)"> <text>Radio station promotions; or</text> </paragraph> <paragraph num="(d)"> <text>Licensed retailer promotions.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An on-premises promotion includes tastings:</text> <paragraph num="(a)"> <text>That are open to the public and held in conjunction with a reception or dinner; and</text> </paragraph> <paragraph num="(b)"> <text>At which a representative of a supplier or licensed wholesaler:</text> <paragraph num="(i)"> <text>Is present;</text> </paragraph> <paragraph num="(ii)"> <text>Discusses the characteristics and merits of a particular brand or type of alcoholic beverage;</text> </paragraph> <paragraph num="(iii)"> <text>Interacts with the attendees; and</text> </paragraph> <paragraph num="(iv)"> <text>May pour the representative's own products.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Brand Owner Promotional Activities.</text> <paragraph num="(1)"> <text>A brand owner or supplier, third party, or wholesaler acting as a brand owner's agent may sponsor, organize, or participate in up to 24 promotional activities in a calendar year on behalf of the same licensed retailer. The limit is per brand owner or supplier and not per brand.</text> </paragraph> <paragraph num="(2)"> <text>An event conducted by or on behalf of a licensed off-premises retailer at a licensed on-premises retail account may not be construed as one of the licensed on-premises retailer's promotions if the licensed on-premises retailer's sole involvement is to cater the event and provide the alcoholic beverages. In these instances, it shall be considered one of the events allotted to the licensed off-premises retailer.</text> </paragraph> <paragraph num="(3)"> <text>A brand owner may provide brand identifiable prizes or give-away items to be used at approved on-premises promotions if:</text> <paragraph num="(a)"> <text>The total number of cumulative items or prizes for any given promotion does not exceed 50 percent of the maximum capacity of the licensed retailer's premises as determined by the Fire Marshal;</text> </paragraph> <paragraph num="(b)"> <text>The unit cost of any one item or prize does not exceed $10;</text> </paragraph> <paragraph num="(c)"> <text>A brand owner or agent does not expend more than $150 in incidental expenses for any given promotion;</text> </paragraph> <paragraph num="(d)"> <text>All prizes and other incidentals not used in connection with an approved promotional event are removed from the retail licensed premises at the conclusion of the event; and</text> </paragraph> <paragraph num="(e)"> <text>Documentation on the expenses is maintained for each event and is available for inspection.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A brand owner, supplier, or licensed wholesaler may not provide alcoholic beverage products at no cost to a licensed retailer. All products shall be provided and paid for through the normal distribution channels.</text> </paragraph> <paragraph num="(5)"> <text>A representative of a brand owner, supplier, or licensed wholesaler may attend and participate in an approved on-premises promotional activity and may spend up to $200 for the purchase of alcoholic beverage products at a licensed retail establishment at the regular price charged by the licensed retailer, including a reasonable and customary tip directed to service staff who are not owners, officers, partners, or named as license holders of the retailer.</text> </paragraph> <paragraph num="(6)"> <text>In addition to pre-planned and pre-announced promotions that are permitted, a supplier or licensed wholesaler may make short, spontaneous, and unannounced visits to a licensed retailer's premises for the purpose of promoting a brand owner's product. Brand identifiable items or prizes provided during these visits shall be of nominal value and distributed in trivial quantities. See Regulation .06B(4) of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Charity Promotions.</text> <paragraph num="(1)"> <text>A charity or nonprofit group which holds a temporary alcoholic beverage license is considered a licensed retailer and is generally subject to all the restrictions and responsibilities of any other licensed retailer regarding trade practices.</text> </paragraph> <paragraph num="(2)"> <text>A charity group which does not hold a retail license may receive legitimate donations from suppliers or licensed wholesalers when engaging in legitimate fund raising or other activities.</text> </paragraph> <paragraph num="(3)"> <text>Holders of a charity wine auction permit may receive alcohol from other sources as provided in Alcoholic Beverages Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Radio Station Promotions.</text> <paragraph num="(1)"> <text>Radio stations are considered third parties and are subject to Regulation .07 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>When acting as a third-party agent for a supplier or licensed wholesaler, radio stations may not engage in any promotion on a licensed retailer's premises on behalf of a supplier or licensed wholesaler unless the supplier or licensed wholesaler is authorized by the Executive Director to conduct the promotion.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Retail Promotions.</text> <paragraph num="(1)"> <text>A licensed retailer may sponsor promotional activities on the retailer's own premises.</text> </paragraph> <paragraph num="(2)"> <text>All expenses related to the promotion which include, but are not limited to, prizes, entertainment, support materials, staff, media advertising, and alcoholic beverages, shall be paid by the licensed retailer.</text> </paragraph> <paragraph num="(3)"> <text>Except as otherwise permitted in this chapter, a supplier or licensed wholesaler may not participate at a licensed retailer-sponsored promotion.</text> </paragraph> <paragraph num="(4)"> <text>Supplier and licensed wholesaler personnel may be on the premises of a licensed retailer-sponsored promotion for observation purposes only.</text> </paragraph> <paragraph num="(5)"> <text>A licensed retailer may not participate in the cost of advertising or promoting a wine or distilled spirits product.</text> </paragraph> <paragraph num="(6)"> <text>A licensed retailer may use advertising items including “bar kits” which are purchased from a brand owner or licensed wholesaler as authorized by Regulation .10 of this chapter.</text> </paragraph> <paragraph num="(7)"> <text>A supplier or licensed wholesaler may rent to a licensed retailer promotional materials approved by the Executive Director to be used at a licensed retailer-sponsored event if:</text> <paragraph num="(a)"> <text>The daily cost of the rental is at least 5 percent of the original value of the materials;</text> </paragraph> <paragraph num="(b)"> <text>A minimum daily charge is $20; and</text> </paragraph> <paragraph num="(c)"> <text>Both parties to the rental agreement maintain documentation which is available for review by the Executive Director.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Approvals.</text> <paragraph num="(1)"> <text>A person or entity who engages in on-premises promotional activities as authorized by §B of this regulation shall file a report on forms provided by the Executive Director.</text> </paragraph> <paragraph num="(2)"> <text>A wholesaler or third party may file a promotional activity form on behalf of a brand owner only if they have written authorization to act as a representative of the brand owner and the authorization is provided to the Executive Director.</text> </paragraph> <paragraph num="(3)"> <text>The report filed with the Executive Director shall list all proposed events and shall be filed not later than the 20th day of the month preceding the month in which the proposed event will be conducted.</text> </paragraph> <paragraph num="(4)"> <text>Regular monthly reports are not acknowledged by the Executive Director.</text> </paragraph> <paragraph num="(5)"> <text>A brand owner or supplier, as well as any wholesaler or third party acting as an agent of the brand owner, is responsible for complying with all provisions of this chapter including limitations on the number of events conducted.</text> </paragraph> <paragraph num="(6)"> <text>Amended Report. An amended report:</text> <paragraph num="(a)"> <text>May be accepted up to 5 days before the planned promotional activity if unusual circumstances warrant; and</text> </paragraph> <paragraph num="(b)"> <text>Shall be approved by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>If an accurate and timely report is not submitted:</text> <paragraph num="(a)"> <text>Each promotion shall be submitted to the Executive Director for approval; and</text> </paragraph> <paragraph num="(b)"> <text>An acknowledgment must be received from the Executive Director before conducting the event.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Alcoholic Beverages Article, §§1-201, 1-302, 1-311, 1-312, 1-313, 1-318, 1-319, 1-401, 1-408, 1-409, 2-214, 2-216, 2-217, 2-218, 2-313, 2-315, 2-316, 2-317, 3-501, 3-507, 6-202, 6-311, 6-319, 6-327, and 6-328, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Transferred from COMAR 03.02.05 to COMAR 14.23.04 effective December 26, 2022 (49:26 Md. R. 1080)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10A, F amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective April 13, 2026 (53:7 Md. R. 328)</annotation> </annotations> </chapter> <chapter num="05" heading="Fire Safety Performance Standard for Cigarettes"> <regulation prefix="Regulation" num=".01" heading="Certification by the Executive Director."> <paragraph num="A."> <text>Each written certification submitted to the Executive Director by a manufacturer as required under Business Regulation Article, §16-603(a), Annotated Code of Maryland, shall be submitted under oath in the same manner as prescribed in Business Regulation Article, §1-201(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>When a certification submitted under Business Regulation Article, §16-603, Annotated Code of Maryland, is approved, the Executive Director shall send written notification of such approval to the manufacturer, including the effective date of the certification and the date upon which such certification shall expire.</text> </paragraph> <paragraph num="C."> <text>Each certification submitted pursuant to Business Regulation Article, §16-602, Annotated Code of Maryland, shall state the date on which the cigarette or cigarettes listed therein were tested, provided that no such date of testing shall predate the date of submission of the certification by more than 36 months.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Certification to Distributors."> <paragraph num="A."> <text>If a wholesaler consents, a manufacturer may provide to a wholesaler the copies of the illustration required under Business Regulation Article, §16-605(a), Annotated Code of Maryland, in an electronic format.</text> </paragraph> <paragraph num="B."> <text>If a retailer, subwholesaler, or vending machine operator consents, a wholesaler may provide the copies of the illustration required under Business Regulation Article, §16-605(b), Annotated Code of Maryland, in an electronic format.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Fire Safety Cigarette Certification List."> <paragraph num="A."> <text>The Executive Director shall prepare a Fire Safety Cigarette Certification List which list shall identify each cigarette:</text> <paragraph num="(1)"> <text>Whose certification has been approved by the Executive Director as meeting the performance standard under Business Regulation Article, §16-602, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>That is a style of a brand family of a tobacco product manufacturer certified by the Attorney General.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Fire Safety Cigarette Certification List may be updated by the Executive Director four times a year on the first day of each quarter of the calendar year.</text> </paragraph> <paragraph num="C."> <text>A cigarette shall be removed from the Fire Safety Cigarette Certification List if it:</text> <paragraph num="(1)"> <text>Is a style of a brand family of a tobacco product manufacturer that has not been certified by the Attorney General;</text> </paragraph> <paragraph num="(2)"> <text>Fails to be recertified in accordance with Business Regulation Article, §16-603(d), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>May not be sold in the State, because it does not comply with federal law or regulations.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Cigarette Removal from Certification List and Hearings.</text> <paragraph num="(1)"> <text>If a cigarette is removed from the Fire Safety Cigarette Certification List by the Executive Director, prompt written notification shall be sent to the manufacturer setting forth the reasons for such action. A manufacturer may request a hearing before the Executive Director within 30 days of receipt of the written notification.</text> </paragraph> <paragraph num="(2)"> <text>If a hearing is requested as provided in §D(1) of this regulation, the Executive Director shall give notice and hold the hearing in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>A cigarette removed from the list is considered to be a noncomplying cigarette subject to the provisions of Business Regulation Article, §16-606, Annotated Code of Maryland, if:</text> <paragraph num="(a)"> <text>The manufacturer has not requested a hearing as provided in §D(1) of this regulation; or</text> </paragraph> <paragraph num="(b)"> <text>A hearing has been held as provided in §D(2) of this regulation, and a final decision by the Comptroller orders that the cigarette be removed from the list.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Manufacturer Record Requirements."> <text>Each manufacturer shall maintain copies of all tests conducted on all cigarettes for a period of 36 months and shall make copies of such reports available to the Executive Director upon written request.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Enforcement."> <paragraph num="A."> <text>Cigarettes seized under Business Regulation Article, §16-610(a), Annotated Code of Maryland, are considered to be noncompliant with the provisions of Business Regulation Article, §16-602, Annotated Code of Maryland, and the retailer, subwholesaler, vending machine operator, or wholesaler in possession of the cigarettes at the time they are seized shall be subject to penalties as provided in Business Regulation Article, §16-608, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>A police officer or other authorized personnel may inspect the premises and records of a retailer, subwholesaler, vending machine operator, or wholesaler to determine whether cigarettes in their possession are in violation of Business Regulation Article, Title 16, Subtitle 6, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>In addition to a police officer, inspectors employed by the Executive Director, or other persons designated by the Executive Director as authorized under Alcoholic Beverages Article, §1-321, Annotated Code of Maryland, shall be authorized personnel that may act in accordance with the provisions of Business Regulation Article, §16-610, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Business Regulation Article, §16-607(1), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Transferred from COMAR 03.02.06 to COMAR 14.23.05 effective December 26, 2022 (49:26 Md. R. 1080)</annotation> </annotations> </chapter> </subtitle> <subtitle num="24" heading="Office of Planning"> <chapter num="01" heading="Guidelines for Implementation of the Maryland Environmental Policy Act"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: July 3, 1974</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.00.01 to 16.01.01</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective November 30, 1987 (14:24 Md. R. 2556)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.01.01 to COMAR 14.24.01 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.01 to COMAR 34.01.02 in March, 2009</annotation> </annotations> </chapter> <chapter num="02" heading="State Depository of Plans"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: December 30, 1977 (4:27 Md. R. 2108)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.00.05 to 16.01.02)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective November 30, 1987 (14:24 Md. R. 2557)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.01.02 to COMAR 14.24.02 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.02 to COMAR 34.01.03 in March, 2009</annotation> </annotations> </chapter> <chapter num="03" heading="Petitions for Adoption of Regulations; Petitions for Declaratory Rulings"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: September 8, 1978 (5:18 Md. R. 1388)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.00.06 to 16.01.03)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective November 30, 1987 (14:24 Md. R. 2557)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective November 30, 1987 (14:24 Md. R. 2557)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.01.03 to COMAR 14.24.03 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.03 to COMAR 34.01.01 in March, 2009</annotation> </annotations> </chapter> <chapter num="04" heading="State Clearinghouse Procedures for Intergovernmental Review of Federal and State Programs"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 Procedures for Reporting Federal Assistance Applications and Awards adopted effective December 30, 1977 (4:27 Md. R. 2108)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.01.01 to 16.02.01)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 27, 1986 (13:2 Md. R. 139)</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective December 14, 1987 (14:25 Md. R. 2663)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 Procedures for the Maryland Intergovernmental Review and Coordination Process adopted effective September 26, 1983 (10:19 Md. R. 1692)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B and Appendix A amended effective December 5, 1983 (10:24 Md. R. 2190)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.02.03 Procedures for the Maryland Intergovernmental Review and Coordination Process to COMAR 16.02.01 Procedures for Intergovernmental Review of Federal and State Programs, and revised effective November 30, 1987 (14:24 Md. R. 2557)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.02.01 to COMAR 14.24.04 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.04 to COMAR 34.02.01 in March, 2009</annotation> </annotations> </chapter> <chapter num="05" heading="State Clearinghouse Procedures for the Reporting and Processing of Excess and Substantial Changes in State-Owned Real Property and Requests for the Granting of Rights-of-Way and Easements Across State-Owned Real Property"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: May 12, 1976 (3:10 Md. R. 530)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.00.04 to 16.02.02)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.02.02 to COMAR 14.24.05 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.05 to COMAR 34.02.02 in March, 2009</annotation> </annotations> </chapter> <chapter num="06" heading="Standards for Intervention in Land Use Proceedings"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: October 15, 1975 (2:23 Md. R. 1416)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.00.03 to 16.03.01)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 26, 1980 (7:26 Md. R. 2425) Regulation .02 amended effective November 30, 1987 (14:24 Md. R. 2557) Regulation .03A amended and .03C repealed effective November 30, 1987 (14:24 Md. R. 2558)</annotation> <annotation type="History" subtype="Administrative History">Regulations .05C, .06, .07 amended effective November 30, 1987 (14:24 Md. R. 2558)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.03.01 to COMAR 14.24.06 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.06 to COMAR 34.03.03 in March, 2009</annotation> </annotations> </chapter> <chapter num="07" heading="Guidelines for the Designation of Areas of Critical State Concern"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: December 11, 1974 (1:5 Md. R. 242)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 7, 1976 (3:1 Md. R. 41)</annotation> <annotation type="History" subtype="Administrative History">Regulations .03 and .11 amended effective June 30, 1978 (5:13 Md. R. 1065)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective September 26, 1980 (7:21 Md. R. 1991); adopted permanently effective November 28, 1980 (7:24 Md. R. 2263)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective May 8, 1978 (5:10 Md. R. 776); adopted permanently effective June 30, 1978 (5:13 Md. R. 1065) Previous Regulation .05 repealed as an emergency provision effective May 8, 1978 (5:10 Md. R. 776); Regulations .02 and .05 repealed effective June 30, 1978 (5:13 Md. R. 1065) (Previous Regulations .03, .04, .06--.14 renumbered as Regulations .02, .03, .04--.12, respectively)</annotation> <annotation type="History" subtype="Administrative History">(Chapter recodified from COMAR 16.00.02 to 16.04.01)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01--.11 repealed and Regulation .12 recodified to Regulation .01 effective November 30, 1987 (14:24 Md. R. 2558)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 16.04.01 to COMAR 14.24.07 in July, 1989</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.07 to COMAR 34.03.02 in March, 2009</annotation> </annotations> </chapter> <chapter num="08" heading="Guidelines for the Certification of County Agricultural Land Preservation Programs"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted as an emergency provision effective September 18, 1990 (17:20 Md. R. 2421); emergency status expired February 1, 1991</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 adopted permanently effective March 4, 1991 (18:4 Md. R. 449)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 repealed effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.08 to COMAR 34.03.03 in March, 2009</annotation> </annotations> </chapter> <chapter num="09" heading="Use of State Museum Property"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: June 2, 2008 (35:11 Md. R. 1042)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 14.24.09 to COMAR 34.04.08</annotation> </annotations> </chapter> </subtitle> <subtitle num="25" heading="Maryland Stadium Authority"> <chapter num="01" heading="General"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Maryland Stadium Authority, an independent unit of the Executive Branch of State Government.</text> </paragraph> <paragraph num="(2)"> <text>Authority Facility.</text> <paragraph num="(a)"> <text>"Authority facility" means:</text> <paragraph num="(i)"> <text>The Camden Yards Sports Complex, including Oriole Park at Camden Yards and the Ravens' Stadium;</text> </paragraph> <paragraph num="(ii)"> <text>Offices, restaurants, stores, museums, parking facilities, and other facilities located on the Camden Yards Sports Complex; and</text> </paragraph> <paragraph num="(iii)"> <text>Facilities located on other Authority property.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>"Authority facility" includes the grounds and walkways surrounding the facilities listed in §B(2)(a) of this regulation and adjacent parking lots or garages owned or controlled by the Authority.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Camden Station” means the building known as Camden Station located within the Camden Yards Sports Complex, but does not include the grounds and walkways surrounding it.</text> </paragraph> <paragraph num="(4)"> <text>“Demonstration” means a person or gathering of persons at an Authority facility for the purpose of expressing an opinion to observers through use of their speech, signs, or express conduct, excluding any expression or conduct prohibited under COMAR 14.25.02.</text> </paragraph> <paragraph num="(5)"> <text>“Director of Facilities Management” means the director of a particular Authority facility.</text> </paragraph> <paragraph num="(6)"> <text>“Director of Security Management” means the director of security management for the Authority.</text> </paragraph> <paragraph num="(7)"> <text>“Distribution of literature” means the distribution of flyers, leaflets, brochures, pamphlets, books, or any other printed or written material.</text> </paragraph> <paragraph num="(8)"> <text>“Emergency” means, as reasonably determined by the Authority or by authorized police or fire officials, an actual or imminent fire, flood, riot, weather, outages of power or public services, terrorism, public disturbance, or other catastrophe that will or is likely to:</text> <paragraph num="(a)"> <text>Endanger the health, safety, or welfare of persons at an Authority facility;</text> </paragraph> <paragraph num="(b)"> <text>Threaten the destruction, loss, or damage to public or private property located at an Authority facility; or</text> </paragraph> <paragraph num="(c)"> <text>Disturb the normal and peaceful conduct of business, sports, or other activities at an Authority facility.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Eutaw Way” means the pedestrian area known as Eutaw Way between the playing field and seating bowl of Oriole Park at Camden Yards to the west, the Warehouse to the east, Gate A of Oriole Park to the south, and Gate H of Oriole Park to the north.</text> </paragraph> <paragraph num="(10)"> <text>“Event” means any game, concert, ceremony, banquet, party, or other activity or event at an Authority facility.</text> </paragraph> <paragraph num="(11)"> <text>“Executive Director” means the Executive Director of the Authority.</text> </paragraph> <paragraph num="(12)"> <text>“Free speech activities” include a demonstration, distribution of literature, collection of petition signatures, and other activities protected by the First and Fourteenth Amendments to the Constitution of the United States and Articles 10, 13, and 40 of the Declaration of Rights within the Maryland Constitution, provided, however, that such activities do not include any activity prohibited under COMAR 14.25.02.</text> </paragraph> <paragraph num="(13)"> <text>“Performing Arts Center” means the France-Merrick Performing Arts Center, including the Hippodrome Theatre at the France-Merrick Performing Arts Center.</text> </paragraph> <paragraph num="(14)"> <text>“Plazas” means and includes the plazas surrounding Oriole Park at Camden Yards and the Ravens’ Stadium, including the breezeway underneath the Warehouse, but does not include the sidewalks directly adjacent to public streets.</text> </paragraph> <paragraph num="(15)"> <text>“Smoking” means the burning of a lighted cigarette, cigar, pipe, or any other matter or substance that contains tobacco.</text> </paragraph> <paragraph num="(16)"> <text>“Spine” means the pedestrian walkway that provides a connection between Lee Street at its north end and Hamburg Street at its south end and which lies between the parking lots that are designated as Lot B and Lot C.</text> </paragraph> <paragraph num="(17)"> <text>“Stadium structures” means and includes the facades, fences, and admission gates that comprise the outer perimeter of the baseball stadium and the football stadium at the Camden Yards Sports Complex.</text> </paragraph> <paragraph num="(18)"> <text>“Tailgating” means the preparing, cooking, serving, or consuming of food or beverages before, during, or after an event on an Authority-owned or operated parking lot or open space.</text> </paragraph> <paragraph num="(19)"> <text>“Warehouse” means the building known as the Warehouse at Camden Yards within the Camden Yards Sports Complex, but does not include the grounds and walkways surrounding it or the open breezeway underneath it.</text> </paragraph> <paragraph num="(20)"> <text>“Working days” means Monday through Friday excepting all legal holidays and all other days on which the Executive Branch of State Government is generally closed.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-604, 10-613(a)(4) and (10), and 10-616(b); Financial Institutions Article, §13-708; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective July 27, 1998 (25:15 Md. R. 1194)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective March 4, 2013 (40:4 Md. R. 347); January 5, 2015 (41:26 Md. R. 1570)</annotation> </annotations> </chapter> <chapter num="02" heading="Prohibited Activities"> <regulation prefix="Regulation" num=".01" heading="Disturbing the Public Peace and Disorderly Conduct."> <paragraph num="A."> <text>The following conduct is prohibited at any Authority facility:</text> <paragraph num="(1)"> <text>The use of language meant to incite immediate violence or an immediate breach of the peace;</text> </paragraph> <paragraph num="(2)"> <text>The description or depiction of erotic or pornographic images or conduct; or</text> </paragraph> <paragraph num="(3)"> <text>Lewd or indecent exposure.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual at an Authority facility may not:</text> <paragraph num="(1)"> <text>Willfully act in a disorderly manner that disturbs the peace of others;</text> </paragraph> <paragraph num="(2)"> <text>Engage in, instigate, or encourage the continuation or escalation of a fight or other physical violence; or</text> </paragraph> <paragraph num="(3)"> <text>In any way endanger the life, person, property, health, or safety of others by words, actions, or attempts made directly or by aiding or abetting others to do so.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Commercial Activity."> <text>Commercial activity at an Authority facility, including the display of commercial advertising, and the sale of food, beverages, novelties, or tickets, is prohibited, except when conducted by Authority tenants and their employees, licensees, agents, and assignees who have received authorization by the Authority within their leased or assigned areas, or as otherwise authorized by the Authority. This includes the distribution of flyers containing commercial advertising. Flyers may not be placed on vehicles situated on parking lots or garages owned or controlled by the Authority.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Solicitation."> <text>Solicitation for the immediate receipt of money or contributions, commercial solicitation, and the collection of private debts at an Authority facility is prohibited. This prohibition does not apply to tenants or their employees, licensees, agents, delegates, and assignees who have received authorization by the Authority within their leased or assigned areas, or as otherwise authorized by the Authority.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Obstruction of Traffic."> <paragraph num="A."> <text>Conduct which obstructs sidewalks, walkways, entrances, corridors, stairways, or parking lots, or which otherwise obstructs or hinders normal pedestrian or vehicular traffic and business, is prohibited. In general, a single person engaged in free speech activities does not impermissibly obstruct a sidewalk, unless that person intentionally moves to obstruct or hinder pedestrians or vehicles attempting to pass by such person.</text> </paragraph> <paragraph num="B."> <text>Sidewalks and other walkways located on Authority property are for use by pedestrian traffic only, and the use of bicycles, roller skates, roller blades, skateboards, motorcycles, or any other form of transportation (other than a wheelchair or other transportation reasonably necessary for a person’s mobility) on those sidewalks is prohibited at all times. On event dates, the use of bicycles, roller skates, roller blades, and skateboards is prohibited on parking lots owned or controlled by the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Tailgating."> <text>Tailgating may only take place at:</text> <paragraph num="A."> <text>Those times specifically authorized by the Authority during, before, or after events at Authority facilities, with the approval of the Baltimore Orioles, the Baltimore Ravens, or other team or licensee of the Authority facility where an event is being held; and</text> </paragraph> <paragraph num="B."> <text>Locations designated by the Authority within the parking lots owned or controlled by the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Weapons."> <text>The possession, carrying, or transporting, either openly with the intent to injure a person in an unlawful manner, or concealed, or the use or discharge of, a weapon at an Authority facility is prohibited, including those weapons described in Criminal Law Article, §§4-101 and 4-201, Annotated Code of Maryland, except for official purposes and by authorized personnel. An individual carrying a weapon shall notify the Director of Security for the Authority before entering an Authority facility.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Controlled or Dangerous Substances."> <text>The possession, use, or distribution of a controlled or dangerous substance, or prescription drugs, except those prescribed by a physician and permitted by law, is prohibited.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Disobeying Authorities and Signs; Entrances and Exits."> <text>An individual may not:</text> <paragraph num="A."> <text>Disobey an order of a police officer acting within the scope of the officer's employment;</text> </paragraph> <paragraph num="B."> <text>Disobey, disregard, or fail to comply with any rule or regulation, warning, prohibition, instruction, or direction, whether posted or displayed by sign, notice, bulletin, card, or poster, or when notified or informed as to its existence by a police officer; or</text> </paragraph> <paragraph num="C."> <text>Enter or leave an Authority facility, including any parking lot or garage owned or operated by the Authority, at points not designated as proper entrances or exits.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Open Containers."> <text>The possession, in an open container, or the drinking of any alcoholic beverage at an Authority facility is prohibited, except for the following:</text> <paragraph num="A."> <text>Alcoholic beverages consumed by tenants and their employees, licensees, agents, and assignees within their leased areas who have received authorization by the Authority;</text> </paragraph> <paragraph num="B."> <text>Alcoholic beverages sold by the Authority's designated concessionaire or the tenants' designated concessionaire in accordance with their lease; and</text> </paragraph> <paragraph num="C."> <text>Alcoholic beverages consumed on parking lots owned or controlled by the Authority on those dates and times and at those locations designated by the Authority for tailgating.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Intoxication."> <text>An individual intoxicated by alcoholic beverages or controlled dangerous substances and endangering the safety of that individual or other individuals or property, or disturbing tenants, patrons, or the normal course of Authority business, is not permitted at an Authority facility, and that individual may not operate a vehicle on Authority property.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Animals."> <paragraph num="A."> <text>Except as otherwise specifically permitted by this regulation, a person may not bring any animal onto or into an Authority facility.</text> </paragraph> <paragraph num="B."> <text>As used in this regulation, the term “service animal” means and includes:</text> <paragraph num="(1)"> <text>A service animal as defined under the Americans with Disabilities Act of 1990 and regulations promulgated thereunder;</text> </paragraph> <paragraph num="(2)"> <text>Pursuant to 28 CFR §35.136(i), a miniature horse used by an individual with a disability if the miniature horse has been individually trained to do work or perform tasks for the benefit of the individual with a disability, is housebroken, and is under the sufficient control of its handler;</text> </paragraph> <paragraph num="(3)"> <text>A service animal as defined in Human Services Article, §7-701, Annotated Code of Maryland, and regulations promulgated thereunder.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Service Animals.</text> <paragraph num="(1)"> <text>Individuals with disabilities and the parents of a minor child with a disability are permitted to bring a service animal onto or into an Authority facility.</text> </paragraph> <paragraph num="(2)"> <text>Service animal trainers, as defined in Human Services Article, §7-701, Annotated Code of Maryland, and regulations promulgated thereunder, are permitted to bring an animal being trained or raised as a service animal onto or into an Authority facility, provided, however, that an animal being trained as a service animal and accompanied by a service animal trainer may be excluded from an Authority facility if admitting the animal would create a clear danger of a disturbance or physical harm to any individual at the Authority facility.</text> </paragraph> <paragraph num="(3)"> <text>No person hosting an event at an Authority facility may require the purchase of a separate ticket or charge any additional amount for the admission of a service animal or an animal being trained or raised as a service animal.</text> </paragraph> <paragraph num="(4)"> <text>An individual with a disability or a parent of a minor child with a disability who is accompanied by a service animal may be liable for any damages to the Authority facility caused by the service animal to the extent permitted under Human Services Article, §7-705, Annotated Code of Maryland. The service animal trainer organization that certifies the service animal may be liable for any personal injuries or damages to the premises or facilities caused by the service animal to the extent permitted under Human Services Article, §7-705, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>Nothing in this regulation shall be construed as requiring the Authority to make any physical modification to an Authority facility in order to admit a person accompanied by a service animal or animal being trained or raised as a service animal.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Animals used for governmental security and law enforcement purposes shall be permitted onto and into an Authority facility.</text> </paragraph> <paragraph num="E."> <text>Other animals may be brought onto or into an Authority facility if specifically authorized by the Executive Director, the Director of Security Management, or the Director of Facilities Management for such Authority facility.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Sleeping."> <text>Use of an Authority facility for sleeping or other purposes instead of one's home, a hotel, motel, or other public facility is prohibited.</text> </regulation> <regulation prefix="Regulation" num=".13" heading="Bicycles."> <paragraph num="A."> <text>Bicycles are parked on Authority property at the owner's risk.</text> </paragraph> <paragraph num="B."> <text>Bicycles shall be parked in designated bicycle parking areas. Bicycle racks are provided.</text> </paragraph> <paragraph num="C."> <text>Bicycles chained to any pole or fixed structure other than a bicycle rack or left unattended at a location other than the designated bicycle racks may be removed by the Authority at the owner’s risk. The Authority may treat any bicycle left chained to any pole or fixed structure other than a bicycle rack or left unattended at a location other than the designated bicycle racks as suspicious and may remove, dispose of, or destroy any such bicycle without liability to the owner thereof.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Open Fires."> <text>Open fires of any kind are not permitted on Authority property, except for fires contained in a customary cooking device on those dates and times and at those locations designated by the Authority for tailgating.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Refusal to Leave Authority Property Upon Request."> <text>Authority property is subject to Criminal Law Article, §6-409, Annotated Code of Maryland. An individual refusing or failing to leave Authority property upon proper request to do so by an authorized agent of the Authority is guilty of a misdemeanor, and upon conviction may be fined not more than $1,000 or imprisoned for not more than 6 months, or both.</text> </regulation> <regulation prefix="Regulation" num=".16" heading="Damage to Property; Responsibility for Damage."> <paragraph num="A."> <text>An individual may not climb, cut, injure, mutilate, set fire to, deface, displace, remove, or destroy any wall, fence, shelter, seat, statue, or other structure at any Authority facility.</text> </paragraph> <paragraph num="B."> <text>An individual may not cut, destroy, break, prune, set fire to, mutilate, injure, disturb, sever from the ground, or remove any growing thing, including any plant, flower, flower bed, shrub, tree, grass, or any branch, stem, fruit, or leaf.</text> </paragraph> <paragraph num="C."> <text>An individual who injures Authority property in any manner whatsoever is:</text> <paragraph num="(1)"> <text>Responsible for the injury or damage; and</text> </paragraph> <paragraph num="(2)"> <text>Liable for the cost to have the property restored to its original condition.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Games."> <text>Except for the Authority, its tenants, and licensees, an individual may not throw, cast, catch, kick, play with, or strike any game ball whatsoever or engage in any sport, game, or competition at any Authority facility or on parking lots owned or controlled by the Authority.</text> </regulation> <regulation prefix="Regulation" num=".18" heading="Trespassing on the Playing Field and Interference with Events or Contests."> <paragraph num="A."> <text>This regulation is in addition to, and not in lieu of, Regulation .15 of this chapter.</text> </paragraph> <paragraph num="B."> <text>In accordance with Criminal Law Article §6-402, Annotated Code of Maryland, at locations which are reasonably visible to persons within the Stadium Structures, the Authority shall place signs that conspicuously prohibit trespass upon the playing field of such Authority facility. Except for the Authority, its authorized tenants, and the Authority’s and such tenants’ licensees, an individual may not trespass upon the playing field at any Authority facility at any time. In accordance with Criminal Law Article, §6-402, Annotated Code of Maryland, a person who violates this regulation is guilty of a misdemeanor and on conviction is subject to:</text> <paragraph num="(1)"> <text>For a first violation, imprisonment not exceeding 90 days or a fine not exceeding $500 or both;</text> </paragraph> <paragraph num="(2)"> <text>For a second violation occurring within 2 years after the first violation, imprisonment not exceeding 6 months or a fine not exceeding $1,000 or both; and</text> </paragraph> <paragraph num="(3)"> <text>For each subsequent violation occurring within 2 years after the preceding violation, imprisonment not exceeding 1 year or a fine not exceeding $2,500 or both.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual may not loiter, project objects onto the playing field or seating area, or act in such a manner as to interfere with the players of athletic events or contests in any Authority facility.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Smoking in Stadiums."> <text>Smoking is prohibited by any person located in any of the following areas:</text> <paragraph num="A."> <text>In any spaces within the Stadium structures, whether such spaces are covered or uncovered, walled or exposed, or open or closed to public access; and</text> </paragraph> <paragraph num="B."> <text>Within 25 feet of any entry, outdoor air intake, or operable window of the Stadium Structures at the Camden Yards Sports Complex.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-604, 10-613(a)(4) and (10), and 10-616(b); Financial Institutions Article, §13-708; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 27, 1998 (25:15 Md. R. 1194)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 repealed and new Regulation .11 adopted effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13B, C amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 amended effective January 5, 2015 (41:26 Md. R. 1570)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 adopted effective March 4, 2013 (40:4 Md. R. 347)</annotation> </annotations> </chapter> <chapter num="03" heading="Free Speech Activities"> <regulation prefix="Regulation" num=".01" heading="Intent."> <paragraph num="A."> <text>The regulations in this chapter regulate claims of right founded on federal and State law. These regulations do not themselves create, expressly or implied, any rights, privileges, or immunities of speech.</text> </paragraph> <paragraph num="B."> <text>The regulations in this chapter are necessary in order to:</text> <paragraph num="(1)"> <text>Ensure that those seeking to exercise their freedom of expression can communicate safely with visitors to Authority facilities;</text> </paragraph> <paragraph num="(2)"> <text>Preserve the aesthetic and recreational atmosphere of Authority facilities; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure the safe, free, and orderly flow of pedestrians and vehicles at Authority facilities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Free Speech Activities Generally."> <paragraph num="A."> <text>Basic Rule.</text> <paragraph num="(1)"> <text>An individual desiring to engage in free speech activities at Authority facilities may do so in proper accordance with these regulations and if the activities do not:</text> <paragraph num="(a)"> <text>Constitute commercial activities;</text> </paragraph> <paragraph num="(b)"> <text>Constitute solicitation for the immediate receipt of money or contributions; or</text> </paragraph> <paragraph num="(c)"> <text>Result in interference with the safety of the public or the operation of Authority facilities, disrupt events at an Authority facility, or impede the flow of either vehicular or pedestrian traffic.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In general, a single person engaged in free speech activities does not impermissibly obstruct a sidewalk, unless that person intentionally moves to obstruct or hinder pedestrians or vehicles attempting to pass by such person.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as otherwise provided in this regulation, the use of musical or other noise-producing instruments, microphones or comparable voice-projecting devices are prohibited at an Authority facility. Subject to applicable noise-control ordinances, a person within the Camden Yards Sports Complex may use a battery-operated handheld megaphone if and when the person is located on a public sidewalk south of Lee Street and north of Hamburg Street (which does not include the Spine).</text> </paragraph> <paragraph num="C."> <text>Except for the Authority, its authorized tenants, and such tenants’ licensees, no person or persons may place or erect any table, display (other than hand-carried signs and placards otherwise permitted), or other stationary object at any location within an Authority facility (including the Plazas and sidewalks). Any person who places or erects a table, display, or other stationary object on Authority property and fails or refuses to remove it upon proper request to do so by an authorized agent of the Authority shall be considered trespassing in violation of COMAR 14.25.02.15. The Authority may treat any table, display, or other stationary object left unattended at an Authority facility as suspicious and may remove, dispose of, or destroy it without liability to the owner thereof.</text> </paragraph> <paragraph num="D."> <text>An individual or group engaging in free speech activities may not engage in any activities prohibited under COMAR 14.25.02.</text> </paragraph> <paragraph num="E."> <text>All free speech activities shall be conducted in a peaceful and orderly manner. A person or group of persons participating in any free speech activities may not:</text> <paragraph num="(1)"> <text>Willfully impede or physically grasp at any other persons using or transiting the Authority facility or viewing the memorials in any of the Plazas;</text> </paragraph> <paragraph num="(2)"> <text>Attach any objects to any other person’s clothing without that person’s consent;</text> </paragraph> <paragraph num="(3)"> <text>Engage in aggressive solicitation (as defined by the Baltimore City Code) or unlawful harassment;</text> </paragraph> <paragraph num="(4)"> <text>Engage in disorderly conduct;</text> </paragraph> <paragraph num="(5)"> <text>Unless true, represent or imply that the person or group represents, is affiliated with, or is in any way endorsed by the State of Maryland, the Authority, the Baltimore Orioles, the Baltimore Ravens, or any other tenant of an Authority facility;</text> </paragraph> <paragraph num="(6)"> <text>Unreasonably disturb tenants or the public in the course of normal business activities, sporting events, entertainment events, or viewing any of the memorials on any of the Plazas.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Any person, organization, or other legal entity engaging in any free speech activities at an Authority facility shall be responsible for any damages to any property directly caused by that person’s, organization’s, or other legal entity’s actions, including, but not limited to, reimbursement of all cleaning and repair costs incurred by the Authority.</text> </paragraph> <paragraph num="G."> <text>A person, organization, or other legal entity engaging in any free speech activities at an Authority facility may not leave unattended any pamphlets, handbills, leaflets, signs, placards, posters, collection boxes or containers, or any other materials. The Authority may treat any materials left unattended anywhere at an Authority facility as suspicious and may remove, dispose of, or destroy any such materials without any liability to the owner thereof.</text> </paragraph> <paragraph num="H."> <text>Any person, organization, or other legal entity engaging in any free speech activities at an Authority facility shall abide by the terms of this chapter, any permit issued pursuant to this chapter, and local, state, and federal law.</text> </paragraph> <paragraph num="I."> <text>Placards and Signs.</text> <paragraph num="(1)"> <text>A person at an Authority facility may not carry any placard or sign that:</text> <paragraph num="(a)"> <text>Has a height exceeding 36 inches or a width exceeding 24 inches;</text> </paragraph> <paragraph num="(b)"> <text>Uses words or images meant to incite immediate violence or an immediate breach of the peace;</text> </paragraph> <paragraph num="(c)"> <text>Uses words or images that describe or depict any erotic or pornographic conduct.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Only hand-carried signs and placards are permitted at an Authority facility. No sign or placard may be appended to, hung on, or rested upon any walkway, structure, or other part of an Authority facility. No sign or placard may be placed on or attached to any post or pole in any part of an Authority facility.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Areas of Authority Facilities Available for Free Speech Activities."> <paragraph num="A."> <text>No part of Camden Station, the Warehouse, any Stadium Structure, the Performing Arts Center, or any parking lot or garage owned or operated by the Authority is a public forum.</text> </paragraph> <paragraph num="B."> <text>Eutaw Way is part of the Stadium Structure of Oriole Park at Camden Yards whenever a ticket is required for public access thereto, whenever Gate A and Gate H are closed, or whenever Eutaw Way is otherwise closed to the general public. Eutaw Way shall be considered a Plaza when open to the general public.</text> </paragraph> <paragraph num="C."> <text>The Spine may not be considered a public forum during any parking lot event or during any event taking place on the Spine itself. At all other times, the Spine shall be considered a Plaza.</text> </paragraph> <paragraph num="D."> <text>Plazas and sidewalks shall be available for free speech activities in accordance with the regulations in this chapter, but subject to the prohibitions in COMAR 14.25.02.</text> </paragraph> <paragraph num="E."> <text>Regardless of whether a permit is required under Regulation .04 of this chapter, the Director of Security Management may require that all free speech activities on any Plaza be limited to areas other than those reasonably designated for ingress, egress, and queuing for ingress, egress, or tickets to a Stadium structure, Camden Station, or the Warehouse.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Permits."> <paragraph num="A."> <text>A group of ten or more persons desiring to engage in free speech activities on one or more of the Plazas shall first obtain a written permit from the Authority for the proposed activity.</text> </paragraph> <paragraph num="B."> <text>Permits shall be issued on a first-come, first-served basis.</text> </paragraph> <paragraph num="C."> <text>The Authority may charge a uniform fee for reviewing a permit application and granting a permit under this section. Upon request by the applicant, the Authority may waive the fee based upon the ability of the applicant to pay the fee.</text> </paragraph> <paragraph num="D."> <text>Permitting Procedures.</text> <paragraph num="(1)"> <text>To obtain a permit, an applicant shall submit a written application to the Authority at least 3 working days before the date requested; provided, however, that if the request arises in response to an event announced less than 5 working days in advance thereof, the written application may be submitted 1 working day prior thereto.</text> </paragraph> <paragraph num="(2)"> <text>The application shall be on a form provided by the Authority. The form shall designate the location where it may be filed in person. The form may also designate alternative methods by which the application may be filed, such as a mailing address, facsimile number, email address, or website.</text> </paragraph> <paragraph num="(3)"> <text>The application for the permit shall include:</text> <paragraph num="(a)"> <text>The full name, mailing address, telephone number, and, if available, email address of the person or organization applying for the permit, and, if a group or organization, the name, address, and telephone number of a designated representative;</text> </paragraph> <paragraph num="(b)"> <text>The full name, mailing address, telephone number, and, if available, email address of the person who will supervise and be responsible for the conduct of the proposed activities;</text> </paragraph> <paragraph num="(c)"> <text>The date and times of the proposed activity;</text> </paragraph> <paragraph num="(d)"> <text>A brief description of the proposed activity, including the method of communication (such as demonstration, distribution of literature, collection of petition signatures, or other activity);</text> </paragraph> <paragraph num="(e)"> <text>The number of persons expected to participate; and</text> </paragraph> <paragraph num="(f)"> <text>The signature of the applicant.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Director of Security Management shall review each application promptly. If the application is incomplete, the Director of Security Management shall make reasonable efforts to inform the applicant. If the application is complete, the Director of Security Management shall forward a copy thereof to the applicable Director of Facilities Management for review and comment.</text> </paragraph> <paragraph num="(5)"> <text>The Director of Security Management shall issue the permit unless the Director of Security Management specifically finds that:</text> <paragraph num="(a)"> <text>The information contained in the permit application is incomplete or contains a material misrepresentation;</text> </paragraph> <paragraph num="(b)"> <text>The proposed activity would substantially interfere with a scheduled event or another free speech activity for which a permit was previously issued;</text> </paragraph> <paragraph num="(c)"> <text>An emergency exists;</text> </paragraph> <paragraph num="(d)"> <text>The proposed activity would materially interfere with vehicular or pedestrian traffic, including viewing of any memorial on the Plazas;</text> </paragraph> <paragraph num="(e)"> <text>The proposed activity would materially interfere with the normal business activities of the Authority or the Authority’s tenants;</text> </paragraph> <paragraph num="(f)"> <text>The proposed activity, on its face, would violate any law, ordinance, or regulation of the federal, State, or Baltimore City governments; or</text> </paragraph> <paragraph num="(g)"> <text>The proposed activity reasonably appears to present a clear and present danger to the public safety, health, welfare, or good order.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The Director of Security Management may revoke a permit at any time if:</text> <paragraph num="(1)"> <text>The actual activity materially differs from the activity proposed in the application and a permit for the actual activity could have been denied;</text> </paragraph> <paragraph num="(2)"> <text>The activities or conduct of the permitted person or of the permitted group or any individual member of the group presents a clear and present danger to the public health, welfare, or public safety;</text> </paragraph> <paragraph num="(3)"> <text>The activities or conduct of the permitted person or of the permitted group or any individual member of the group violates any applicable law or regulation; or</text> </paragraph> <paragraph num="(4)"> <text>An emergency arises.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Appeal of Permit Decisions.</text> <paragraph num="(1)"> <text>Any person whose permit request is denied, whether in full or in part, or revoked may appeal the decision to the Executive Director by delivering a written appeal within 5 working days after the decision by the Director of Security Management. The appeal shall state the reasons why the appellant believes the denial or revocation of the permit was in error. The appeal shall also state a mailing address for the appellant and, if the appellant desires service thereby, a facsimile number, email address, or both.</text> </paragraph> <paragraph num="(2)"> <text>The Executive Director shall review the initial permit decision or revocation in light of the written appeal. Within 7 working days after receipt of such appeal, the Executive Director shall issue a written decision either affirming the denial or revocation or granting the permit as requested.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director’s decision shall be sent via certified mail to the appellant at the address provided in the appeal, with a copy by fax, email, or both, if provided, and shall be effective upon such service.</text> </paragraph> <paragraph num="(4)"> <text>The Executive Director’s decision shall constitute a final decision of the Authority and may be appealed to an appropriate court as provided by law.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Picketing and Demonstrations."> <paragraph num="A."> <text>Picketing and demonstrations anywhere on Authority property shall be authorized by the Executive Director in advance.</text> </paragraph> <paragraph num="B."> <text>Those picketing or demonstrating:</text> <paragraph num="(1)"> <text>May do so only in areas specified by the Executive Director;</text> </paragraph> <paragraph num="(2)"> <text>Shall conduct themselves in a peaceful and orderly manner; and</text> </paragraph> <paragraph num="(3)"> <text>May not obstruct the use of Authority facilities by others or interfere with the normal course of Authority business.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Those under the influence of alcohol or drugs may not picket or demonstrate.</text> </paragraph> <paragraph num="D."> <text>The Director of Facilities Management shall approve signs in advance of a specified picket date. Only hand-carried signs are permitted.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Economic Development Article, §§10-604, 10-613(a)(4) and (10), and 10-616(b);Financial Institutions Article, §13-708; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective January 5, 2015 (41:26 Md. R. 1570)</annotation> </annotations> </chapter> <chapter num="04" heading="Parking"> <regulation prefix="Regulation" num=".01" heading="Public Parking."> <text>Unrestricted public parking is not permitted on Authority property. Parking on Authority property is permitted only in designated parking areas and at designated times. Parking shall be controlled and supervised, and fees shall be collected by the Authority's parking operator.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Parking Permits."> <text>Permits issued by the Authority, its parking operator, or other authorized entity are valid only at the times and in the locations indicated.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Overnight Storage."> <text>A permit or payment of fees does not authorize overnight storage of vehicles. Overnight storage may be permitted with the authorization of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Towing."> <text>Vehicles parked in a manner inconsistent with these regulations are subject to towing at the owner's risk and expense.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-708, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> </annotations> </chapter> <chapter num="05" heading="Open Meetings"> <regulation prefix="Regulation" num=".01" heading="Public Attendance."> <paragraph num="A."> <text>The general public is invited to attend and observe an open session of the Authority.</text> </paragraph> <paragraph num="B."> <text>A member of the public attending an open session may not participate in the session, except when:</text> <paragraph num="(1)"> <text>The Authority expressly invites public testimony, questions, comments, or other forms of public participation; or</text> </paragraph> <paragraph num="(2)"> <text>Public participation is otherwise authorized by law.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Disruptive Conduct."> <paragraph num="A."> <text>An individual attending an open session of the Authority may not engage in any conduct, including visual demonstrations such as waving of placards, signs, or banners, that disrupts the session or that interferes with the right of members of the public to attend and observe the session.</text> </paragraph> <paragraph num="B."> <text>Restoring Order. The presiding officer may:</text> <paragraph num="(1)"> <text>Order an individual who persists in conduct prohibited by §A of this regulation, or who has violated any other regulation concerning the conduct of the open session, to be removed from the session, and may request police assistance to restore order; and</text> </paragraph> <paragraph num="(2)"> <text>Recess the session while order is restored.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Recording, Photographing, and Broadcasting of Open Sessions."> <paragraph num="A."> <text>A member of the public, including a representative of the news media, may:</text> <paragraph num="(1)"> <text>Record discussions of the Authority at an open session using a tape recorder or other recording device if the device does not create an excessive noise that disturbs members of the Authority or other individuals attending the session; and</text> </paragraph> <paragraph num="(2)"> <text>Photograph or videotape the proceedings of the Authority at an open session, using any type of camera, if the camera is operated without excessively bright artificial light or excessive noise that disturbs members of the Authority or other individuals attending the session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A representative of the news media may broadcast or televise the proceedings of the Authority at an open session if the equipment is operated without excessively bright artificial light or excessive noise that disturbs members of the Authority or other individuals attending the session.</text> </paragraph> <paragraph num="C."> <text>The presiding officer may restrict the movement of an individual who is using a recording device, camera, or broadcasting or television equipment if the restriction is necessary to maintain the orderly conduct of the session.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Recordings Not Part of Record."> <text>A recording of an open session made by a member of the public, or a transcript derived from this recording, is not a part of the record of a proceeding of the Authority.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-708, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> </annotations> </chapter> <chapter num="06" heading="Public Information Act Requests"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to the procedures to be followed for requests for the inspection and reproduction of public records under the Public Information Act, State Government Article, §§10-611—10-628, Annotated Code of Maryland, which are maintained by the Maryland Stadium Authority. These procedures are intended to supplement the procedures required by law. If the provisions of this chapter conflict with State Government Article, §§10-611—10-628, Annotated Code of Maryland, the statute controls.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means an individual or governmental unit that requests the inspection and reproduction of a public record.</text> </paragraph> <paragraph num="(2)"> <text>“Custodian” means the official custodian who is an officer or employee of the Authority and who is responsible for keeping the public record.</text> </paragraph> <paragraph num="(3)"> <text>“Public record” means the original or a copy of any documentary material that is made by the Authority or received in connection with the transaction of public business, and is in any form, including:</text> <paragraph num="(a)"> <text>A card;</text> </paragraph> <paragraph num="(b)"> <text>A computerized record;</text> </paragraph> <paragraph num="(c)"> <text>Correspondence;</text> </paragraph> <paragraph num="(d)"> <text>A drawing;</text> </paragraph> <paragraph num="(e)"> <text>Film or microfilm;</text> </paragraph> <paragraph num="(f)"> <text>A form;</text> </paragraph> <paragraph num="(g)"> <text>A map;</text> </paragraph> <paragraph num="(h)"> <text>A photograph or photostat;</text> </paragraph> <paragraph num="(i)"> <text>A recording; or</text> </paragraph> <paragraph num="(j)"> <text>A tape.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Request for Public Record."> <paragraph num="A."> <text>An applicant may request to inspect or copy public records of the Authority.</text> </paragraph> <paragraph num="B."> <text>An applicant shall submit a request to inspect or copy a public record in writing, unless waived by the custodian in the custodian's discretion.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Contents of Request."> <text>A written request shall:</text> <paragraph num="A."> <text>Contain an applicant's name, address, and phone number;</text> </paragraph> <paragraph num="B."> <text>Be signed by the applicant; and</text> </paragraph> <paragraph num="C."> <text>Identify with reasonable specificity the public record requested.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Filing a Request."> <text>A written request shall be addressed to the custodian of the record by using the custodian's name or title. If the custodian is unknown to the applicant, the request may be addressed to the Executive Director of the Authority, and shall include as much identifying information about the request as possible.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Response to Request."> <paragraph num="A."> <text>If the custodian grants a written request for inspection, the custodian shall produce the public record for inspection immediately or within a reasonable period, not to exceed 30 days from the date the custodian receives the request, subject to the requester's payment of any fees required by Regulation .11 of this chapter.</text> </paragraph> <paragraph num="B."> <text>If the custodian denies the written request, the custodian shall do so within 30 days of receipt of the written request. The custodian shall immediately notify the applicant of the denial, and within 10 working days of the denial provide the applicant with a written statement that gives:</text> <paragraph num="(1)"> <text>The reasons for the denial;</text> </paragraph> <paragraph num="(2)"> <text>The legal authority for the denial; and</text> </paragraph> <paragraph num="(3)"> <text>Notice of the remedies available under State Government Article, §§10-611—10-628, Annotated Code of Maryland, for review of denial.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a requested public record is not in the custody or control of the individual to whom written application is made, the individual shall notify the applicant within 10 working days of the receipt. If the individual knows the name of the custodian of the record or the location or the possible location of the record, this information shall also be given to the applicant.</text> </paragraph> <paragraph num="D."> <text>With the consent of the applicant, any time imposed by the regulations may be extended.</text> </paragraph> <paragraph num="E."> <text>The custodian shall deny inspection of a public record as required under State or federal law, the rules adopted by the Court of Appeals, or an order of a court of record.</text> </paragraph> <paragraph num="F."> <text>The custodian may deny inspection of a public record as permitted under State or federal law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Public Records Temporarily Unavailable."> <text>If a requested public record is not immediately available for inspection or copying, the custodian shall notify the applicant and set a date and hour within a reasonable time when the record will be available for inspection or copying.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Public Records Destroyed or Lost."> <text>If a requested public record has been destroyed or lost, the custodian shall notify the applicant in writing and inform the applicant of the reasons why the record cannot be produced.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Review of Denial."> <paragraph num="A."> <text>If a written request is denied by the custodian for a reason other than that the record is temporarily unavailable, the applicant may request an administrative hearing within 10 working days after receipt of the notice of the denial. The hearing request shall be made in writing to the custodian who denies the request.</text> </paragraph> <paragraph num="B."> <text>Hearing Procedures.</text> <paragraph num="(1)"> <text>If an applicant requests a hearing, the hearing shall be conducted by the Executive Director or a designee.</text> </paragraph> <paragraph num="(2)"> <text>A hearing is governed by State Government Article, §§10-201—10-217, Annotated Code of Maryland, and COMAR 08.01.04.</text> </paragraph> <paragraph num="(3)"> <text>After a hearing, the designee shall prepare a decision for the Executive Director.</text> </paragraph> <paragraph num="(4)"> <text>The Executive Director shall issue the final decision of the Authority within 30 days of the receipt of the recommended decision.</text> </paragraph> <paragraph num="(5)"> <text>If a hearing results in a total or partial denial of the written request, the applicant may file an appropriate action in circuit court under State Government Article, §10-623, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If an applicant chooses not to request a hearing under §A of this regulation, the applicant may file an action for judicial review under State Government Article, §10-623, Annotated Code of Maryland. The applicant need not exhaust the administrative remedy in §A of this regulation before filing suit.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Disclosure Against Public Interest."> <text>If the custodian determines that disclosure of any public record that is required to be disclosed under State Government Article, §§10-611—10-628, Annotated Code of Maryland, would cause substantial injury to the public interest, the custodian may temporarily deny the request, and within 10 working days of the denial, petition the appropriate circuit court for an order permitting continued denial or restriction of access. The Authority shall serve a copy of the petition on the applicant as provided for service of process by Courts and Judicial Proceedings Article, §6-301, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Fees."> <paragraph num="A."> <text>Fee Schedule for Certifying and Copying a Record.</text> <paragraph num="(1)"> <text>Photocopies. The charge for each copy of a document is 25 cents per page if the reproduction is made on a photocopying machine within the Authority's offices. If the public records are not susceptible to photocopying, for example, punch cards, magnetic tapes, drawings, maps, blueprints, microfilm, slides, or photographs, the fee for the copies is based on the actual cost of reproduction, as determined by the custodian.</text> </paragraph> <paragraph num="(2)"> <text>Documents More Than 25 Pages. If the public record requested to be reproduced is more than 25 pages, the custodian shall charge a $3.50 per hour photocopying processing fee in addition to the per page fee.</text> </paragraph> <paragraph num="(3)"> <text>Certification of Copies. If an applicant requests that a copy of a public record be certified as a true copy, the custodian shall charge an additional fee of $1 per record.</text> </paragraph> <paragraph num="(4)"> <text>Computer Printouts. If the Authority is required to provide a computer printout, the charge for the printout includes:</text> <paragraph num="(a)"> <text>The computer and peripheral equipment usage;</text> </paragraph> <paragraph num="(b)"> <text>Programming; and</text> </paragraph> <paragraph num="(c)"> <text>Material costs.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Search Fees.</text> <paragraph num="(a)"> <text>Except as provided in §A(5)(b) of this regulation, the custodian may charge reasonable fees for the search and preparation of public records for inspection and copying, in addition to the cost for reproduction.</text> </paragraph> <paragraph num="(b)"> <text>The custodian may not charge search or preparation fees for the first 2 hours of official or employee time that is needed to respond to a request for information.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>If the fees for copies, printouts, photographs, or certified copies of a public record are specifically prescribed by a law other than State Government Article, §§10-601—10-628, Annotated Code of Maryland, or this chapter, the prescribed fee shall be charged by the custodian.</text> </paragraph> <paragraph num="C."> <text>If the custodian is unable to copy a public record on a photocopying machine within the Authority's offices, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Authority. The custodian shall either collect from the applicant the fee to cover the actual cost of reproduction, or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="D."> <text>Before reproducing a public record, the custodian shall estimate the cost of reproduction, including any search fee, and either:</text> <paragraph num="(1)"> <text>Obtain the written agreement of the applicant that the cost shall be paid; or</text> </paragraph> <paragraph num="(2)"> <text>Request prepayment of the estimated fee before reproducing the record.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If an applicant requests that copies be mailed or delivered to the applicant, the cost of postage or delivery shall be charged to the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Waiver or Reduction of Fees."> <paragraph num="A."> <text>The custodian may waive or reduce any fee charged under this chapter if the custodian determines that the:</text> <paragraph num="(1)"> <text>Item requested is promotional in nature or is routinely distributed to the public;</text> </paragraph> <paragraph num="(2)"> <text>Reproduction costs will be nominal; or</text> </paragraph> <paragraph num="(3)"> <text>Applicant has demonstrated to the Authority that it is unable to pay for the costs of reproduction.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The decision of the custodian to waive or reduce a fee is within the sole discretion of the custodian, and the decision is final.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-708; State Government Article, §10-613; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> </annotations> </chapter> <chapter num="07" heading="Promulgation of Regulations and Petition for Declaratory Ruling"> <regulation prefix="Regulation" num=".01" heading="Adoption of Regulations."> <text>New, amended, or repealed regulations shall be proposed and adopted on a regular or emergency basis, as prescribed by the Administrative Procedure Act, State Government Article, Title 10, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Procedures."> <text>After providing notice, the Authority shall afford interested persons an opportunity to submit written data, views, or argument. If the Authority determines a hearing would be desirable with reference to a proposed regulation, it may afford interested parties the opportunity to submit evidence, subject to cross-examination by other interested parties and the Authority, and to make oral argument.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Petition for Adoption of Regulations."> <paragraph num="A."> <text>Who May File. Any interested person may file with the Authority a petition requesting the promulgation, amendment, or repeal of any regulation.</text> </paragraph> <paragraph num="B."> <text>Form. A petition shall be in writing and shall contain the:</text> <paragraph num="(1)"> <text>Name, address, and telephone number of the petitioner; and</text> </paragraph> <paragraph num="(2)"> <text>Proposed regulation changes and a brief statement of reasons for the changes.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Submission, Consideration, and Disposition. A petition shall be filed with the Authority for its consideration and disposition. The Authority shall mail promptly to each person requesting the promulgation, amendment, or repeal of any regulation, a notice of filing indicating the date of receipt of the petition. Within 60 days of the date of receipt, the Authority shall either deny the petition in writing and state the reasons for its denial, or institute appropriate regulations promulgation procedures in accordance with the Administrative Procedure Act, State Government Article, Title 10, Annotated Code of Maryland, and notify the petitioner in writing of this action.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Petition for Declaratory Ruling."> <paragraph num="A."> <text>Who May File. Any interested person may file with the Authority a petition for a declaratory ruling with respect to the applicability of the statutes or any regulation pertaining to the statutes to any person, property, or state of facts.</text> </paragraph> <paragraph num="B."> <text>Form. A petition shall be in writing. It shall contain a detailed statement of the facts underlying the questioned applicability of the regulation or the statutes and shall pose the question of whether or in what manner the stated regulation or the statute applies to the facts contained in the petition. The petition shall also contain the name, address, and the telephone number of the petitioner and a statement by the petitioner, under oath, that the facts set forth in the petition are true to the best of the petitioner's knowledge, information, and belief.</text> </paragraph> <paragraph num="C."> <text>Submission, Consideration, and Disposition. A petition shall be filed with the Authority for its consideration and disposition. The Authority shall mail promptly to each person requesting a declaratory ruling a notice of filing indicating the date of receipt of the petition. The Authority shall consider the petition and may issue the declaratory ruling requested. The Authority shall notify the petitioner in writing within 60 days of the date of receipt of the petition of whatever action it decides to take, and shall state the reasons for its decision.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-708; State Government Article, §§10-123 and 10-304; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 12, 1993 (20:7 Md. R. 642)</annotation> </annotations> </chapter> </subtitle> <subtitle num="26" heading="Maryland Energy Administration"> <chapter num="01" heading="Jane E. Lawton Conservation Program"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter describes the policies and procedures for making loans to and offering credit enhancements that benefit local governments, nonprofits, and eligible businesses from the Jane E. Lawton Conservation Loan Fund.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>To promote energy efficiency, reduce consumption of fossil fuels, and enhance energy-related economic development and stability in the commercial and industrial, nonprofit, and government sectors, the Jane E. Lawton Conservation Loan Program authorizes the Maryland Energy Administration to:</text> <paragraph num="A."> <text>Make low-interest loans to eligible nonprofit organizations, businesses, and local jurisdictions; and</text> </paragraph> <paragraph num="B."> <text>Enhance the credit of financings offered by eligible banks and other financial institutions to benefit eligible nonprofit organizations, businesses, and local jurisdictions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Jane E. Lawton Conservation Loan Program set forth in State Government Article, Title 9, Subtitle 20A, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Administration” means the Maryland Energy Administration.</text> </paragraph> <paragraph num="(3)"> <text>“Borrower” means a local jurisdiction, nonprofit organization, or eligible business that applies and qualifies for a loan under the Program.</text> </paragraph> <paragraph num="(4)"> <text>“County” means any of the 23 counties of the State, and the Mayor and City Council of Baltimore, and any authorized agency or instrumentality of a county or counties.</text> </paragraph> <paragraph num="(5)"> <text>“Credit enhancement” means a financial arrangement designed to improve the accessibility or affordability of a financing.</text> </paragraph> <paragraph num="(6)"> <text>“Director” means the Director of the Administration or the Director's designated representative.</text> </paragraph> <paragraph num="(7)"> <text>Eligible Business.</text> <paragraph num="(a)"> <text>“Eligible business” means a commercial enterprise or business that is in good standing with the State Department of Assessments and Taxation and is:</text> <paragraph num="(i)"> <text>Incorporated in the State; or</text> </paragraph> <paragraph num="(ii)"> <text>Registered to do business in the State.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Eligible business” includes a corporation, association, general partnership, limited partnership, joint general partnership, joint venture, or other form of legal organization.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Energy cost savings” means the actual reduction in operating expenses resulting from the installation, operation, and maintenance of a project financed under the Program.</text> </paragraph> <paragraph num="(9)"> <text>“Fund” means the Jane E. Lawton Conservation Loan Program Fund.</text> </paragraph> <paragraph num="(10)"> <text>“Loan” means an issuance of debt by the Administration to a qualified borrower under the Program.</text> </paragraph> <paragraph num="(11)"> <text>“Local jurisdiction” means any county or municipality of the State and includes the board of education or community college of a county.</text> </paragraph> <paragraph num="(12)"> <text>“Municipality” means any municipal corporation or State-created special taxing district in Maryland subject to the provisions of Article XI-E of the Maryland Constitution, or any authorized agency or instrumentality of the municipality.</text> </paragraph> <paragraph num="(13)"> <text>“Nonprofit organization” means a corporation, foundation, school, hospital, or other legal entity, no part of the net earnings or assets of which inure to the benefit of any private shareholder or individual holding an interest in the entity.</text> </paragraph> <paragraph num="(14)"> <text>“Program” means the Jane E. Lawton Conservation Loan Program.</text> </paragraph> <paragraph num="(15)"> <text>Project.</text> <paragraph num="(a)"> <text>“Project” means one or more improvements or modifications that enhance the energy efficiency and reduce the operating expenses of a structure located in Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Project” does not include improvements or modifications for energy conservation in structures used primarily for religious or fraternal activities.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Eligibility and Requirements for Loans."> <paragraph num="A."> <text>A loan under the Program may be made to:</text> <paragraph num="(1)"> <text>Eligible local jurisdictions;</text> </paragraph> <paragraph num="(2)"> <text>Eligible nonprofit organizations; and</text> </paragraph> <paragraph num="(3)"> <text>Eligible businesses.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A borrower for a loan under the Program shall:</text> <paragraph num="(1)"> <text>Have the legal capacity and all necessary legal authority to incur the obligations of a loan under the Program;</text> </paragraph> <paragraph num="(2)"> <text>Provide a complete application to the Administration before the expiration of any applicable deadlines;</text> </paragraph> <paragraph num="(3)"> <text>If the borrower is a business entity, be in good standing with the State Department of Assessments and Taxation and be:</text> <paragraph num="(a)"> <text>Incorporated in the State; or</text> </paragraph> <paragraph num="(b)"> <text>Registered to do business in the State;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Pay any fees required by the Administration; and</text> </paragraph> <paragraph num="(5)"> <text>Meet any other requirement deemed appropriate by the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Permissible Uses for Loan Funds."> <paragraph num="A."> <text>A loan under the Program may be used to pay for:</text> <paragraph num="(1)"> <text>The costs of implementing projects, including the costs of all necessary:</text> <paragraph num="(a)"> <text>Technical assessments;</text> </paragraph> <paragraph num="(b)"> <text>Studies;</text> </paragraph> <paragraph num="(c)"> <text>Surveys;</text> </paragraph> <paragraph num="(d)"> <text>Plans and specifications; and</text> </paragraph> <paragraph num="(e)"> <text>Start-up, architectural, engineering, and other special services;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The costs of procuring necessary technology, equipment, licenses, or materials; and</text> </paragraph> <paragraph num="(3)"> <text>The costs of construction, rehabilitation, or modification related to a project including the purchase and installation of necessary machinery, equipment, or furnishings.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A loan may be made in conjunction with, or in addition to, financial assistance provided through other State or federal programs.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Minimum Borrower Obligations."> <text>In addition to any other condition or requirement determined to be necessary by the Administration, a borrower shall:</text> <paragraph num="A."> <text>Make a contribution to the project that is of a type and amount acceptable to the Administration;</text> </paragraph> <paragraph num="B."> <text>Document that the anticipated energy savings to the borrower over a defined period after the completion of the project are greater than the total cost of the project to the borrower in a manner that allows the Administration to verify the anticipated energy savings at the time of the application;</text> </paragraph> <paragraph num="C."> <text>Pay an interest rate and any other fees and expenses assessed by the Administration;</text> </paragraph> <paragraph num="D."> <text>Repay the loan and interest in accordance with a schedule set by the Administration;</text> </paragraph> <paragraph num="E."> <text>Execute necessary assurances including a promissory note and other forms of collateral required by the Administration; and</text> </paragraph> <paragraph num="F."> <text>Provide the Administration with a letter of counsel that gives any assurances requested by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Terms and Conditions of Loan."> <paragraph num="A."> <text>The borrower shall make a contribution to the project, acceptable to the Administration, which may take the form of:</text> <paragraph num="(1)"> <text>Cash;</text> </paragraph> <paragraph num="(2)"> <text>Payment of certain predevelopment costs such as preliminary architectural site plans, engineering design studies or feasibility studies, or technical assessments necessary to implement the project;</text> </paragraph> <paragraph num="(3)"> <text>Contribution of in-kind services acceptable to the Administration; or</text> </paragraph> <paragraph num="(4)"> <text>Contribution of equipment, labor, or materials for use in the project.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Security.</text> <paragraph num="(1)"> <text>Security or collateral are required for any loan to a nonprofit organization or eligible business.</text> </paragraph> <paragraph num="(2)"> <text>When security is required, a loan shall be secured by liens on real property, equipment, or other assets purchased with loan proceeds and any other collateral approved by the lender and the Administration which may include, but are not limited to:</text> <paragraph num="(a)"> <text>The personal guarantees of the principals of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Liens on the business assets of the applicant;</text> </paragraph> <paragraph num="(c)"> <text>Guarantees of related entities;</text> </paragraph> <paragraph num="(d)"> <text>Indemnity deeds of trust on real property owned by the principals of the applicant;</text> </paragraph> <paragraph num="(e)"> <text>A cash escrow; or</text> </paragraph> <paragraph num="(f)"> <text>Any other form of security or collateral acceptable to the Administration.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If applicable, the borrower shall make the necessary arrangements and, if necessary, execute a waiver in favor of the Administration with a landlord to facilitate the Administration’s security and collateral.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Repayment.</text> <paragraph num="(1)"> <text>The principal and interest of a loan under the Program shall be repaid:</text> <paragraph num="(a)"> <text>From energy cost savings realized by the energy conservation project, or other revenues specified by the borrower equal or equivalent to energy cost savings; and</text> </paragraph> <paragraph num="(b)"> <text>In accordance with a schedule acceptable to the Administration provided that the date for beginning of the repayment of a loan may not be later than 2 years from closing of the loan.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In calculating the energy cost savings, the Administration, on a case by case basis, may take a number of factors into consideration, including:</text> <paragraph num="(a)"> <text>Actual or anticipated changes to the energy consumption and energy use of a borrower; and</text> </paragraph> <paragraph num="(b)"> <text>Whether these changes will produce monetary or other forms of savings to a borrower.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>At the conclusion of each fiscal year, if the energy cost savings resulting from the project do not equal or exceed the expected repayment schedule for the loan, the Administration may upon the petition of a borrower:</text> <paragraph num="(a)"> <text>Adjust the terms of repayment with the borrower in such a manner as to assure that the annual payment amount does not exceed the actual energy cost savings resulting from the project; and</text> </paragraph> <paragraph num="(b)"> <text>Extend the repayment period for up to 1 additional year beyond the original maturity date, at the discretion of the Program, or a longer period at the discretion of the Director.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Interest Rate. The principal of the loan shall bear interest at a rate determined to be necessary and reasonable for the project, which, at the discretion of the Director, may be as low as zero percent.</text> </paragraph> <paragraph num="E."> <text>In the event of default, the Administration may modify:</text> <paragraph num="(1)"> <text>The rate of interest;</text> </paragraph> <paragraph num="(2)"> <text>The time or amount of payment; or</text> </paragraph> <paragraph num="(3)"> <text>Any other term of the loan in order to ensure repayment and achieve the purposes of the Program.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Template Documents.</text> <paragraph num="(1)"> <text>The Administration shall publish a loan agreement, note, and security agreement on its website no later than 30 days following the start of each fiscal year that will serve as the Program documents for that fiscal year.</text> </paragraph> <paragraph num="(2)"> <text>The Program documents published under §F(1) of this regulation shall conform to the minimum provisions required under §G of this regulation and include any additional provisions deemed appropriate by the Administration.</text> </paragraph> <paragraph num="(3)"> <text>Except as provided in §F(4) of this regulation, the Administration shall utilize the Program documents published under subsection(1) of this section for each loan issued to a borrower under the Program.</text> </paragraph> <paragraph num="(4)"> <text>The Administration may grant a modification or amendment to a Program document published under §F(1) of this regulation only upon a determination by the Administration of good cause, which may include a determination by the Administration that:</text> <paragraph num="(a)"> <text>A provision of a template document is contrary to law; or</text> </paragraph> <paragraph num="(b)"> <text>A modification or amendment is necessary to facilitate the issuance of a loan to an applicant that is otherwise eligible for a loan under the Program.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Document Requirements.</text> <paragraph num="(1)"> <text>A loan agreement issued under the Program shall, at a minimum, include:</text> <paragraph num="(a)"> <text>A definition of terms;</text> </paragraph> <paragraph num="(b)"> <text>Interest rates, fees, and other expenses to be paid by the borrower;</text> </paragraph> <paragraph num="(c)"> <text>A disbursement schedule consistent with the schedule proposed by the borrower in its application;</text> </paragraph> <paragraph num="(d)"> <text>Conditions precedent and other terms that affect the disbursement and availability and funds;</text> </paragraph> <paragraph num="(e)"> <text>Applicable representations, warranties, and covenants;</text> </paragraph> <paragraph num="(f)"> <text>Indemnification of the Administration and its employees;</text> </paragraph> <paragraph num="(g)"> <text>A requirement to hold the Administration and its employees harmless;</text> </paragraph> <paragraph num="(h)"> <text>Default events;</text> </paragraph> <paragraph num="(i)"> <text>Contact information;</text> </paragraph> <paragraph num="(j)"> <text>A statement of governing law;</text> </paragraph> <paragraph num="(k)"> <text>Terms related to confession of judgment; and</text> </paragraph> <paragraph num="(l)"> <text>Collection procedures.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A security agreement issued under the Program shall, at a minimum, include:</text> <paragraph num="(a)"> <text>A description of collateral;</text> </paragraph> <paragraph num="(b)"> <text>Applicable representations, warranties, and covenants; and</text> </paragraph> <paragraph num="(c)"> <text>Default events.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A note issued under the Program shall, at a minimum, include:</text> <paragraph num="(a)"> <text>A definition of terms;</text> </paragraph> <paragraph num="(b)"> <text>Interest rates, fees, and other expenses to be paid by the borrower;</text> </paragraph> <paragraph num="(c)"> <text>Applicable representations, warranties, and covenants;</text> </paragraph> <paragraph num="(d)"> <text>Indemnification of the Administration and its employees;</text> </paragraph> <paragraph num="(e)"> <text>A requirement to hold the Administration and its employees harmless;</text> </paragraph> <paragraph num="(f)"> <text>Default events;</text> </paragraph> <paragraph num="(g)"> <text>A statement of governing law;</text> </paragraph> <paragraph num="(h)"> <text>Terms related to confession of judgment;</text> </paragraph> <paragraph num="(i)"> <text>Collection procedures; and</text> </paragraph> <paragraph num="(j)"> <text>A requirement for notarization.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Insurance.</text> <paragraph num="(1)"> <text>The Administration may require a borrower to maintain insurance as described in this section.</text> </paragraph> <paragraph num="(2)"> <text>Multi-Peril Insurance. Multi-peril insurance provides fire and extended coverage insurance on the project both during and upon completion of construction, rehabilitation, or modification of a project. The insurance coverage shall include the endorsements that the Administration may require, including:</text> <paragraph num="(a)"> <text>Collapse;</text> </paragraph> <paragraph num="(b)"> <text>Explosion;</text> </paragraph> <paragraph num="(c)"> <text>Loss of rents; and</text> </paragraph> <paragraph num="(d)"> <text>Vandalism.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Liability Insurance. Comprehensive general liability insurance shall be maintained with the endorsements that the Administration may require both during and after construction, rehabilitation, or modification of a project.</text> </paragraph> <paragraph num="(4)"> <text>Flood Insurance. If the project is located on real property which is in the 100-year flood plain, as designated by the U.S. Department of Housing and Urban Development, the project shall be covered by a flood plain insurance policy. Before closing of a loan for a project, permits shall be secured from the Maryland Department of Natural Resources and the political subdivision in which the project is located.</text> </paragraph> <paragraph num="(5)"> <text>Contractor's Insurance. If a project involves construction, rehabilitation, or modification of a structure or improvements of any kind, the general contractor shall provide insurance coverage for comprehensive public liability, property damage, and Workers' Compensation in the form and amounts required by the Administration.</text> </paragraph> <paragraph num="(6)"> <text>Other Insurance. The borrower shall provide at closing of the loan other insurance the Administration may require, including:</text> <paragraph num="(a)"> <text>Builder's risk;</text> </paragraph> <paragraph num="(b)"> <text>Boiler insurance;</text> </paragraph> <paragraph num="(c)"> <text>Comprehensive automobile liability; and</text> </paragraph> <paragraph num="(d)"> <text>Broad form Workers' Compensation.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Terms and Conditions. Insurance coverage shall meet the following minimum requirements plus any additional requirements which may be set by the Administration:</text> <paragraph num="(a)"> <text>Insurance shall be provided by:</text> <paragraph num="(i)"> <text>Companies or other legal entities that are authorized to transact business in the State, and which are reputable and financially sound, as determined by the Administration; or</text> </paragraph> <paragraph num="(ii)"> <text>In the case of local jurisdictions, self-insurance programs that are acceptable to the Administration;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>To the extent applicable, insurance shall be in force upon the closing of the loan;</text> </paragraph> <paragraph num="(c)"> <text>To the extent applicable, an insurance policy shall contain a standard lender endorsement attached to or printed in the policy naming the Administration as mortgagee;</text> </paragraph> <paragraph num="(d)"> <text>To the extent required by the Administration, the insurance policy shall name the Administration as loss payee and additional insured;</text> </paragraph> <paragraph num="(e)"> <text>Insurance shall provide for notification to the Administration before termination; and</text> </paragraph> <paragraph num="(f)"> <text>Insurance shall contain terms and coverage satisfactory to the Administration.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>Disbursement. Loan proceeds shall be disbursed directly to the borrower upon the terms and conditions set forth in the loan documents.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Evaluation Criteria."> <text>The Administration may take the following factors into consideration in prioritizing loans for any fiscal year:</text> <paragraph num="A."> <text>Type of applicant with local governments, including schools, and nonprofits receiving special priority;</text> </paragraph> <paragraph num="B."> <text>Amount of projected electricity saved, fossil fuels displaced, or renewable energy generated;</text> </paragraph> <paragraph num="C."> <text>The extent to which the loan would leverage other energy investment dollars, including funds from the applicant or other private, local government, or federal financing;</text> </paragraph> <paragraph num="D."> <text>Risk profile of loan, including the length of the payback period, the applicant's ability to repay or provide security or collateral, or both, as required by the Administration;</text> </paragraph> <paragraph num="E."> <text>The availability of insurance;</text> </paragraph> <paragraph num="F."> <text>How the loan interacts with the applicant's broader energy conservation strategy; and</text> </paragraph> <paragraph num="G."> <text>Project readiness.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Application Process."> <paragraph num="A."> <text>Application for a Loan.</text> <paragraph num="(1)"> <text>An application for a loan shall be:</text> <paragraph num="(a)"> <text>Made upon standard forms required by and submitted to the Administration; and</text> </paragraph> <paragraph num="(b)"> <text>Submitted only by an eligible borrower in accordance with a schedule developed and publicized by the Administration.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the borrower is a:</text> <paragraph num="(a)"> <text>Local jurisdiction, the application shall be signed by the local jurisdiction's chief elected officer or, if none, by the governing body to the local jurisdiction;</text> </paragraph> <paragraph num="(b)"> <text>Public school, the application shall be approved by the board of education of the county in which the project is located and signed by the superintendent of public schools for the county;</text> </paragraph> <paragraph num="(c)"> <text>Institution of higher learning, the application shall be signed by the president of the institution or other authorized official;</text> </paragraph> <paragraph num="(d)"> <text>Business entity, the application shall be signed and verified:</text> <paragraph num="(i)"> <text>If a corporation, by an officer of the corporation;</text> </paragraph> <paragraph num="(ii)"> <text>If another form of business entity, by a person or official with authority to bind the entity to the commitments required; or</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Nonprofit organization, the application shall be signed by the executive director, president, chairman of the board, or other authorized official.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An application for a loan shall be submitted to the Administration and shall contain:</text> <paragraph num="(a)"> <text>Sufficient information and documentation to determine:</text> <paragraph num="(i)"> <text>The eligibility of a project in accordance with the criteria set forth in Regulations .04 and .06 of this chapter;</text> </paragraph> <paragraph num="(ii)"> <text>Whether the terms and requirements of the loan as set forth in Regulation .07 of this chapter can be met; and</text> </paragraph> <paragraph num="(iii)"> <text>For a business or nonprofit organization, sufficient information to allow the Administration to make a determination about the creditworthiness of the borrower and the risk profile of the loan; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The following additional information:</text> <paragraph num="(i)"> <text>Identification of the business, structure or structures, or equipment which will be the subject of a project, including, as applicable, a brief description of the existing condition of the structure or equipment evidencing a need for the project;</text> </paragraph> <paragraph num="(ii)"> <text>The cost of a proposed project and the amount of dollars committed from private and public resources;</text> </paragraph> <paragraph num="(iii)"> <text>A project budget identifying all sources and uses of project funds;</text> </paragraph> <paragraph num="(iv)"> <text>Proposed terms of the loan, including interest rates and repayment schedules;</text> </paragraph> <paragraph num="(v)"> <text>The type of security, if any, to be provided by the borrower;</text> </paragraph> <paragraph num="(vi)"> <text>A description of type, amount, and source of the contribution to be made by the borrower;</text> </paragraph> <paragraph num="(vii)"> <text>As determined by the Administration, the projected energy cost savings to be achieved in dollars, units of fuel, kilowatt-hours, or British thermal units, and the engineering calculations to support these savings estimates; and</text> </paragraph> <paragraph num="(viii)"> <text>The anticipated environmental benefits in the form of reduced emissions or pollution attributable to the proposed project.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Approval Process.</text> <paragraph num="(1)"> <text>Upon receipt of all the information required by the Program for an eligible project, the Program shall undertake an analysis of each application based on the criteria specified in Regulation .08 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>Upon completion of its analysis, the Program shall make recommendations to the Director, including any recommended terms and conditions for a project. After receipt of a recommendation from the program, the Director may approve or disapprove the loan and the terms of the loan.</text> </paragraph> <paragraph num="(3)"> <text>If the Director approves an application for a loan on the terms recommended by the Program, or other terms that the Director considers proper, the Director shall execute a determination that the loan is authorized by the Act as codified in State Government Article, §§9-20A-01—9-20A-09, Annotated Code of Maryland. The execution of a determination of this type by the Director shall constitute an approval of a loan and authorize issuance of a commitment letter obligating the Administration to provide the loan and setting forth the amount of the loan and the terms and conditions under which it will be made.</text> </paragraph> <paragraph num="(4)"> <text>The Director may delegate the responsibilities described in §B(2) and (3) of this regulation, including approval of loans under the Program.</text> </paragraph> <paragraph num="(5)"> <text>If the Program determines not to recommend approval of an application for an eligible project, the Program shall issue a written notice of rejection.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Fees and Charges."> <paragraph num="A."> <text>The Administration may charge an application and an administrative fee to cover the costs of making, servicing, or settling a loan.</text> </paragraph> <paragraph num="B."> <text>A borrower may withdraw an application at any time before an award of a loan by written notice to the Administration. The borrower may be required to bear any costs incurred by the Administration for items other than Administration processing, including a nonusage fee.</text> </paragraph> <paragraph num="C."> <text>The Administration may return the application and administrative fees paid upon the withdrawal of an application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Closing."> <paragraph num="A."> <text>Time. The closing of an award of a loan shall be scheduled at a time acceptable to the Administration and the Office of the Attorney General.</text> </paragraph> <paragraph num="B."> <text>Place. The closing shall be at the Administration's offices unless otherwise agreed to by the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Program Administration."> <paragraph num="A."> <text>The Director may delegate to any other official or employee of the Administration or the Program the authority to approve loans and credit enhancements under the Program, or to execute or approve any loan documents or other documents governing a loan or credit enhancement, including a commitment.</text> </paragraph> <paragraph num="B."> <text>The Administration may enter into contracts with third parties to make, service, or settle loans under the Program.</text> </paragraph> <paragraph num="C."> <text>The Administration shall reserve 20 percent of the annual amount of funds available under the Program for loans to nonprofit organizations. If sufficient applications for the reserved funds have not been received from nonprofit organizations, those funds may be made available to other loans or credit enhancements under the Program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Books and Records."> <paragraph num="A."> <text>Borrowers, recipients of credit enhancements, contractors, and subcontractors shall maintain books, accounts, and records, and shall file with the Administration financial and other reports, that the Administration may from time to time require.</text> </paragraph> <paragraph num="B."> <text>The books, accounts, and records referenced in §A of this regulation, as well as the administrative personnel, whether full-time or part-time, shall be available for inspection by representatives of the Administration or other agencies of the State during reasonable working hours.</text> </paragraph> <paragraph num="C."> <text>Books, accounts, and records of contractors and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between the contractor and the borrower.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Nondiscrimination."> <paragraph num="A."> <text>A borrower or recipient or beneficiary of a credit enhancement may not discriminate against an individual on the basis of race, color, religion, national origin, sex, marital status, physical or mental handicap, or age in any aspect of the program.</text> </paragraph> <paragraph num="B."> <text>A borrower or recipient or beneficiary of a credit enhancement shall comply with all applicable federal, State, and local laws and Administration policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices including:</text> <paragraph num="(1)"> <text>Titles VI and VII of the Civil Rights Act of 1964, as amended;</text> </paragraph> <paragraph num="(2)"> <text>Title VIII of the Civil Rights Act of 1968, as amended; and</text> </paragraph> <paragraph num="(3)"> <text>The Governor's Code of Fair Practices, as amended.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Administration and other parties.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Drug-Free and Alcohol-Free Policy."> <text>As a condition of receipt of a loan from the Program, the Administration may require the borrower or recipient or beneficiary of a credit enhancement to adopt and administer a program to promote a drug-free and alcohol-free workplace in accordance with Executive Order 01.01.1989.18.</text> </regulation> <regulation prefix="Regulation" num=".16" heading="Waiver."> <text>The Director may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act as codified in State Government Article, §§9-20A-01—9-20A-09, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".17" heading="False Statements or Report."> <paragraph num="A."> <text>A person may not knowingly make or cause to be made any false statement or report in any document required to be furnished to the Administration by any agreement relating to a loan or credit enhancement.</text> </paragraph> <paragraph num="B."> <text>A person applying for a loan or credit enhancement under the Program may not knowingly make or cause to be made any false statement or report for the purpose of influencing the action of the Administration on an application for a loan or credit enhancement or for the purpose of influencing the action of the Administration affecting a loan or credit enhancement already provided.</text> </paragraph> <paragraph num="C."> <text>A person who violates §A or B of this regulation is guilty of a misdemeanor, and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year, or both.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Credit Enhancements."> <paragraph num="A."> <text>Subject to the requirements of this regulation, the Administration may authorize a credit enhancement to carry out the purpose of the Program under State Government Article, §9-20A-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Administration may authorize a credit enhancement under the Program to a bank or other financial institution to facilitate financing of at least one project of an:</text> <paragraph num="(1)"> <text>Eligible local jurisdiction;</text> </paragraph> <paragraph num="(2)"> <text>Eligible nonprofit organization; or</text> </paragraph> <paragraph num="(3)"> <text>Eligible business.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A bank or other financial institution offering a financing enhanced by a credit enhancement under the Program shall:</text> <paragraph num="(1)"> <text>Be in good standing with the State Department of Assessments and Taxation and:</text> <paragraph num="(a)"> <text>Incorporated in the State; or</text> </paragraph> <paragraph num="(b)"> <text>Registered to do business in the State;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Have the legal capacity and all necessary legal authority to incur the obligations associated with the credit enhancement under the Program;</text> </paragraph> <paragraph num="(3)"> <text>Provide a complete application to the Administration before the expiration of any applicable deadline;</text> </paragraph> <paragraph num="(4)"> <text>Satisfy all financial requirements established by the Administration;</text> </paragraph> <paragraph num="(5)"> <text>At the discretion of the Administration, pay a reasonable fee to the Administration for the administration of the credit enhancement; and</text> </paragraph> <paragraph num="(6)"> <text>Meet any additional requirement deemed appropriate by the Administration.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A beneficiary of a credit enhancement under the Program shall:</text> <paragraph num="(1)"> <text>Have the legal capacity and all necessary legal authority to incur the obligations associated with the credit enhancement under the Program;</text> </paragraph> <paragraph num="(2)"> <text>Satisfy all financial and credit-related requirements established by the Administration; and</text> </paragraph> <paragraph num="(3)"> <text>Meet any additional requirement deemed appropriate by the Administration.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Application and Review Process.</text> <paragraph num="(1)"> <text>An eligible local jurisdiction, nonprofit organization, or business may apply to the Administration under the Program to receive a credit enhancement for a financing offered by a bank or other financial institution.</text> </paragraph> <paragraph num="(2)"> <text>A bank or other financial institution may apply to the Administration to receive a credit enhancement to benefit an eligible local jurisdiction, nonprofit organization, or business.</text> </paragraph> <paragraph num="(3)"> <text>An application for a credit enhancement shall be:</text> <paragraph num="(a)"> <text>Made upon standard forms required by and submitted to the Administration; and</text> </paragraph> <paragraph num="(b)"> <text>Submitted to the Administration in accordance with a schedule developed and publicized by the Administration.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the beneficiary of the credit enhancement is:</text> <paragraph num="(a)"> <text>A local jurisdiction, the application shall be signed by the local jurisdiction’s chief elected officer or, if none, by the governing body to the local jurisdiction;</text> </paragraph> <paragraph num="(b)"> <text>A public school, the application shall be approved by the board of education of the county in which the project is located and signed by the superintendent of public schools for the county;</text> </paragraph> <paragraph num="(c)"> <text>An institution of higher learning, the application shall be signed by the president of the institution or other authorized official;</text> </paragraph> <paragraph num="(d)"> <text>A business entity, the application shall be signed and verified:</text> <paragraph num="(i)"> <text>If a corporation, by an officer of the corporation; or</text> </paragraph> <paragraph num="(ii)"> <text>If another form of business entity, by a person or official with authority to bind the entity to the commitments required; or</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>A nonprofit organization, the application shall be signed by the executive director, president, chairman of the board, or other authorized official.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An application for a credit enhancement shall contain:</text> <paragraph num="(a)"> <text>Sufficient information and documentation to determine:</text> <paragraph num="(i)"> <text>Whether the terms and requirements of the credit enhancement as determined by the Administration can be met; and</text> </paragraph> <paragraph num="(ii)"> <text>For a business or nonprofit organization, sufficient information to allow the Administration to make a determination about the creditworthiness of the borrower and the risk profile of the credit enhancement; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The following additional information:</text> <paragraph num="(i)"> <text>Identification of the business, structure or structures, or equipment which will be the subject of a project, including, as applicable, a brief description of the existing condition of the structure or equipment evidencing a need for the project;</text> </paragraph> <paragraph num="(ii)"> <text>The cost of a proposed project and the amount of dollars committed from private and public resources;</text> </paragraph> <paragraph num="(iii)"> <text>A project budget identifying all sources and uses of project funds;</text> </paragraph> <paragraph num="(iv)"> <text>Proposed terms of the credit enhancement, including interest rates and repayment schedules;</text> </paragraph> <paragraph num="(v)"> <text>The type of security, if any, to be provided by the beneficiary of the credit enhancement;</text> </paragraph> <paragraph num="(vi)"> <text>A description of type, amount, and source of the contribution to be made by the beneficiary of the credit enhancement;</text> </paragraph> <paragraph num="(vii)"> <text>As determined by the Administration, the projected energy cost savings to be achieved in dollars, units of fuel, kilowatt-hours, or British thermal units, and the engineering calculations to support these savings estimates; and</text> </paragraph> <paragraph num="(viii)"> <text>The anticipated environmental benefits in the form of reduced emissions or pollution attributable to the proposed project.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>After receipt of an application for a credit enhancement, the Administration may consider whether to offer a credit enhancement under the Program using the following factors:</text> <paragraph num="(a)"> <text>Satisfaction of the requirements under §E(3) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Estimated energy savings;</text> </paragraph> <paragraph num="(c)"> <text>Leverage;</text> </paragraph> <paragraph num="(d)"> <text>Risk to the Administration of pecuniary loss;</text> </paragraph> <paragraph num="(e)"> <text>The extent to which the credit enhancement helps achieve the purpose of the Program under State Government Article, §9-20A-03, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(f)"> <text>Additional factors deemed appropriate by the Administration related to the:</text> <paragraph num="(i)"> <text>Type of credit enhancement proposed;</text> </paragraph> <paragraph num="(ii)"> <text>Project;</text> </paragraph> <paragraph num="(iii)"> <text>Bank or financial institution; and</text> </paragraph> <paragraph num="(iv)"> <text>Beneficiary of the credit enhancement.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-20A-04 and 9-20A-09, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 24, 1993 (20:10 Md. R. 853)</annotation> <annotation type="History" subtype="Administrative History">(Promulgated as COMAR 14.22.01; recodified to COMAR 14.26.01)</annotation> <annotation type="History" subtype="Administrative History">Chapter, Community Energy Loan Program, repealed effective March 9, 2009 (36:5 Md. R. 424)</annotation> <annotation type="History" subtype="Administrative History">Chapter, Jane E. Lawton Conservation Program, adopted effective March 9, 2009 (36:5 Md. R. 424)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13A amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .13A amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14A, B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); amended permanently effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14A, B amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17A, B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .17A, B amended effective September 29, 2014 (41:19 Md. R. 1082)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 adopted as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 adopted effective September 29, 2014 (41:19 Md. R. 1082)</annotation> </annotations> </chapter> <chapter num="02" heading="Maryland Strategic Energy Investment Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>These regulations establish procedures for the administration of a grant under the Strategic Energy Investment Program, established under State Government Article, §9-20B-02, Annotated Code of Maryland, and utilizing funds appropriated from the Strategic Energy Investment Fund under State Government Article, §9-20B-05, Annotated Code of Maryland, where no other law or regulation controls.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administration” means the Maryland Energy Administration.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” means a person or entity that applies for a grant from the Administration.</text> </paragraph> <paragraph num="(3)"> <text>“Application” means a request to receive a grant from the Administration.</text> </paragraph> <paragraph num="(4)"> <text>“Competitive funding opportunity” means a funding opportunity for which the Administration considers all complete applications submitted and selects those applications that best meet the criteria in the relevant FOA as determined by the Administration.</text> </paragraph> <paragraph num="(5)"> <text>“Complete application” means a timely application that includes all the information required by the FOA.</text> </paragraph> <paragraph num="(6)"> <text>“Evaluation criteria” means factors identified in the FOA that the Administration uses to determine which applications submitted in response to a FOA best meet the Administration’s specified purpose.</text> </paragraph> <paragraph num="(7)"> <text>“Fund availability” means the presence of monies that the Administration is authorized to expend for a particular purpose, such as the discretionary offering of grants.</text> </paragraph> <paragraph num="(8)"> <text>“Funding opportunity announcement” or “FOA” means a notice to the public of a grant funding opportunity available for a specific period and purpose that includes the conditions, criteria, and guidelines developed by the Administration.</text> </paragraph> <paragraph num="(9)"> <text>Grant.</text> <paragraph num="(a)"> <text>“Grant” means the bestowing of a power, money, privilege, property, or other item of value that may be conditional, although without other consideration, by the Administration upon another party.</text> </paragraph> <paragraph num="(b)"> <text>Grant includes a rebate, technical assistance, and the provision of a portion or all a grantee’s matching or cost sharing for a federal grant.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Grant agreement” means a written agreement between the Administration and a grantee with respect to a grant.</text> </paragraph> <paragraph num="(11)"> <text>“Noncompetitive funding opportunity” means a funding opportunity for which the Administration considers complete applications on a first-come, first-served basis.</text> </paragraph> <paragraph num="(12)"> <text>Person.</text> <paragraph num="(a)"> <text>“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity.</text> </paragraph> <paragraph num="(b)"> <text>“Person” includes a not-for-profit corporation, partnership, business trust, statutory trust, limited liability company, firm, or association that is in good standing with the State.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Project.</text> <paragraph num="(a)"> <text>“Project” means an activity or undertaking that is consistent with the requirements of a FOA.</text> </paragraph> <paragraph num="(b)"> <text>“Project” includes all activities and requirements specified in the FOA or grant agreement.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Rebate” is a noncompetitive funding opportunity for a project that is complete at the time the application is submitted to the Administration.</text> </paragraph> <paragraph num="(15)"> <text>“State” means the State of Maryland.</text> </paragraph> <paragraph num="(16)"> <text>State Agency.</text> <paragraph num="(a)"> <text>“State agency” means any administration, agency, association, authority, board, bureau, college, commission, committee, council, foundation, fund, department, institute, institution, public corporation, service, trust, university, or other unit of the Executive Branch of the State government and includes any subunit within any of these units.</text> </paragraph> <paragraph num="(b)"> <text>“State agency” does not include a bicounty or multicounty government agency or political subdivision of the State, including a county, municipality, special tax district, sanitary district, drainage district, soil conservation district, water supply district, or any entity organized under the general corporation laws of the State.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Strategic Energy Investment Fund” or “SEIF” has the meaning stated in State Government Article, §9-20B-05, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(18)"> <text>“Strategic Energy Investment Program” means the program established and described in State Government Article, Title 9, Subtitle 20B, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Authority of Administration."> <text>The Administration may:</text> <paragraph num="A."> <text>Develop a FOA;</text> </paragraph> <paragraph num="B."> <text>Establish an application process, requirements, and criteria for each FOA;</text> </paragraph> <paragraph num="C."> <text>Receive and evaluate a grant application;</text> </paragraph> <paragraph num="D."> <text>Offer a grant;</text> </paragraph> <paragraph num="E."> <text>Receive and evaluate requests for cost sharing or matching to be used in a proposal for a federal grant;</text> </paragraph> <paragraph num="F."> <text>Offer a grant for all or a portion of a grantee’s cost sharing or matching for a federal grant;</text> </paragraph> <paragraph num="G."> <text>Terminate a grant; or</text> </paragraph> <paragraph num="H."> <text>Require repayment of a grant for noncompliance.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Funding Opportunity Announcement."> <paragraph num="A."> <text>The Administration shall publish on its website a FOA for each grant offered by the Administration.</text> </paragraph> <paragraph num="B."> <text>Each initial FOA shall include an application period of at least 30 calendar days.</text> </paragraph> <paragraph num="C."> <text>Each FOA shall explain each of the following when applicable:</text> <paragraph num="(1)"> <text>Name and purpose;</text> </paragraph> <paragraph num="(2)"> <text>Duration and schedule;</text> </paragraph> <paragraph num="(3)"> <text>Requirements;</text> </paragraph> <paragraph num="(4)"> <text>Deadlines;</text> </paragraph> <paragraph num="(5)"> <text>Anticipated funding amount at the time the FOA is published;</text> </paragraph> <paragraph num="(6)"> <text>Designation as a competitive or a noncompetitive grant;</text> </paragraph> <paragraph num="(7)"> <text>Evaluation criteria;</text> </paragraph> <paragraph num="(8)"> <text>Method for determining a grant amount under the FOA and whether an amount other than the requested amount may be offered;</text> </paragraph> <paragraph num="(9)"> <text>The required form and manner in which to submit a complete application;</text> </paragraph> <paragraph num="(10)"> <text>Limitations on the offer of a grant, including the amount for an individual grant or the number of grants an applicant may receive;</text> </paragraph> <paragraph num="(11)"> <text>Evaluation process; and</text> </paragraph> <paragraph num="(12)"> <text>Other information the Administration determines is appropriate.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may modify a FOA by publishing a notice of the modified provision on its website no less than 10 business days prior to the application deadline and effective date of the modified provision.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Funding Opportunity Application and Review."> <paragraph num="A."> <text>The Administration shall review each complete application received using any method described in the FOA.</text> </paragraph> <paragraph num="B."> <text>After review of a complete application, the Administration may take any of the following actions:</text> <paragraph num="(1)"> <text>Offer a grant;</text> </paragraph> <paragraph num="(2)"> <text>Offer a partial grant;</text> </paragraph> <paragraph num="(3)"> <text>Hold the application for further consideration during the same fiscal year;</text> </paragraph> <paragraph num="(4)"> <text>Hold the application for further consideration in a succeeding fiscal year; or</text> </paragraph> <paragraph num="(5)"> <text>Reject the application.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Administration may reject an application if:</text> <paragraph num="(1)"> <text>The application is not a complete application;</text> </paragraph> <paragraph num="(2)"> <text>The application is inconsistent with law;</text> </paragraph> <paragraph num="(3)"> <text>For a competitive funding opportunity, the Administration has not selected the application for a grant;</text> </paragraph> <paragraph num="(4)"> <text>The Administration determines that sufficient funding is not available; or</text> </paragraph> <paragraph num="(5)"> <text>The Director of the Administration determines that offering a grant is not in the best interest of the State.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration shall provide written notice of the action taken under §B of this regulation within 30 days, and, if the application is rejected, the basis for the action taken under §C of this regulation.</text> </paragraph> <paragraph num="E."> <text>For reconsideration of an action by the Administration under §B or C of this regulation, the applicant shall submit a written request to the Administration within 14 business days of receiving the written notice under §D of this regulation.</text> </paragraph> <paragraph num="F."> <text>The written decision by the Director, or the Director’s designee, on the request for reconsideration shall be the final decision of the Administration.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Grant Evaluation."> <text>The Administration may offer a grant for the value it determines is appropriate after considering any requirements and evaluation criteria specified in the FOA, fund availability, or any other factor the Administration determines appropriate.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Grant to Provide a Cost Sharing or Matching for a Federal Grant."> <paragraph num="A."> <text>The Administration may offer an applicant all or part of the applicant’s cost sharing or matching for a federal grant if:</text> <paragraph num="(1)"> <text>The project is within the scope of this chapter as specified in Regulation .01;</text> </paragraph> <paragraph num="(2)"> <text>The project directly benefits the State; and</text> </paragraph> <paragraph num="(3)"> <text>The applicant complies with all the requirements for the federal grant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration shall cancel a grant offer made pursuant to §A of this regulation if the applicant does not receive the federal grant.</text> </paragraph> <paragraph num="C."> <text>The Administration may offer a grant to an applicant that submits an unsolicited request for cost sharing or matching for a federal grant consistent with this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Grant Agreements."> <paragraph num="A."> <text>To be eligible to receive a grant from the Administration, the applicant shall execute a grant agreement provided by the Administration prior to any distribution of funds.</text> </paragraph> <paragraph num="B."> <text>A grant agreement shall, if applicable:</text> <paragraph num="(1)"> <text>Identify each party and any authorized representative;</text> </paragraph> <paragraph num="(2)"> <text>Describe the project;</text> </paragraph> <paragraph num="(3)"> <text>Specify the value of the grant;</text> </paragraph> <paragraph num="(4)"> <text>Specify terms of the grant agreement;</text> </paragraph> <paragraph num="(5)"> <text>Set forth each requirement for receiving a grant, including any reporting, invoicing, or project compliance verification requirements;</text> </paragraph> <paragraph num="(6)"> <text>Specify each condition under which noncompliance may require repayment of a grant;</text> </paragraph> <paragraph num="(7)"> <text>Require certification of the applicant’s good standing with the State;</text> </paragraph> <paragraph num="(8)"> <text>Provide the Administration or its designee the right to access the project site for verification or any other relevant purpose;</text> </paragraph> <paragraph num="(9)"> <text>Provide the right of the Administration to utilize project information for any relevant purpose; and</text> </paragraph> <paragraph num="(10)"> <text>Include any other applicable provision required in a State financial agreement.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A grant agreement may contain any additional provision deemed appropriate by the Administration.</text> </paragraph> <paragraph num="D."> <text>For a rebate, a grant application that meets the requirements set forth in §B of this regulation may serve as the grant agreement.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Applicant Responsibilities."> <paragraph num="A."> <text>An applicant shall timely provide any information concerning an application, request, or proposal as requested by the Administration.</text> </paragraph> <paragraph num="B."> <text>A person that provides a statement or report in any document required to be furnished to the Administration by any agreement relating to a grant, loan, or other financial assistance is subject to the provisions of State Government Article, §9–20B–11, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Inter-Agency Agreements."> <paragraph num="A."> <text>A State agency other than the Administration may submit a funding request to the Administration for a project, activity, or investment designed to advance a purpose of the Strategic Energy Investment Program and intended for implementation in a subsequent fiscal year.</text> </paragraph> <paragraph num="B."> <text>To request funding from the SEIF, a State agency shall submit a written proposal to the Administration, including the following:</text> <paragraph num="(1)"> <text>A description of the project, activity, or investment;</text> </paragraph> <paragraph num="(2)"> <text>The requested amount of funding in the relevant fiscal year to implement the project, activity, or investment;</text> </paragraph> <paragraph num="(3)"> <text>A description of how the proposed project, activity, or investment is consistent with the Strategic Energy Investment Program and will further State policy goals;</text> </paragraph> <paragraph num="(4)"> <text>A description of anticipated impacts, how they advance the State’s policy goals, and how the impacts are measured and verified;</text> </paragraph> <paragraph num="(5)"> <text>An implementation timeline for the project, activity, or investment; and</text> </paragraph> <paragraph num="(6)"> <text>Any other information the Administration requests for the purpose of evaluating the proposal.</text> </paragraph> </paragraph> <paragraph num="C."> <text>In response to such a request from a State agency, the Administration may:</text> <paragraph num="(1)"> <text>Review the funding request to determine whether it is consistent with the Strategic Energy Investment Program, the requirements of any existing FOA, or State policy;</text> </paragraph> <paragraph num="(2)"> <text>Consider the funding request in the context of any existing or anticipated FOA, fund availability, forecasted revenue, and fund balances; or</text> </paragraph> <paragraph num="(3)"> <text>Make recommendations for inclusion of the funding request in the State’s operating budget for a new energy-related project, activity, or investment found to be consistent with State Government Article, Title 9, Subtitle 20B, Annotated Code of Maryland, as well as broader State policy goals.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Each State agency that receives funding from the SEIF under this regulation shall:</text> <paragraph num="(1)"> <text>Utilize funding from the SEIF in a manner consistent with a memorandum of understanding executed between the State agency and the Administration; and</text> </paragraph> <paragraph num="(2)"> <text>Comply with all reporting requirements as determined by the Administration.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Unavailability of Funds."> <text>Notwithstanding any applicable law or regulation, the Administration may suspend or cancel any FOA, grant, or agreement due to unavailability of funds.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Waiver."> <text>The Director may waive or modify a provision of this chapter that is inconsistent with the Strategic Energy Investment Program or other law or regulation.</text> </regulation> <annotations> <annotation type="Authority">State Government Article, §§9-20B-01and 9-20B-12, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 3, 2003 (30:4 Md. R. 318)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective August 29, 2005 (32:17 Md. R. 1440)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective February 12, 2007 (34:3 Md. R. 300)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective February 12, 2007 (34:3 Md. R. 300)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective February 12, 2007 (34:3 Md. R. 300)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective October 20, 2011 (38:24 Md. R. 1496); emergency status expired December 31, 2011</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 under Green Building Tax Credit Program repealed and new Regulations .01—.12 under Maryland Strategic Energy Investment Program adopted effective July 1, 2024 (51:7 Md. R. 333)</annotation> </annotations> </chapter> <chapter num="03" heading="Maryland Efficiency Standards"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter:</text> <paragraph num="A."> <text>Implements the Maryland Efficiency Standards Act by establishing minimum efficiency standards for certain new products sold or installed in the State; and;</text> </paragraph> <paragraph num="B."> <text>Establishes testing, certification, inspection, and enforcement procedures for ensuring compliance with established standards.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Incorporation by Reference."> <text>In this chapter, the following documents are incorporated by reference:</text> <paragraph num="A."> <text>42 U.S.C. §6294a;</text> </paragraph> <paragraph num="B."> <text>42 U.S.C. §6294b;</text> </paragraph> <paragraph num="C."> <text>10 CFR Part 430, Subpart B, Appendix S; and</text> </paragraph> <paragraph num="D."> <text>10 CFR Part 430, Subpart C.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Maryland Efficiency Standards Act.</text> </paragraph> <paragraph num="(2)"> <text>“Administration” means the Maryland Energy Administration.</text> </paragraph> <paragraph num="(3)"> <text>“Air purifier” means an air cleaner subject to 10 CFR Part 430, Subpart C.</text> </paragraph> <paragraph num="(4)"> <text>“Commercial dishwasher” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Commercial steam cooker” or “compartment steamer” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Covered product” means an item listed in Regulation .04 of this chapter.</text> </paragraph> <paragraph num="(7)"> <text>“ENERGY STAR” means the U.S. Environmental Protection Agency program established under 42 U.S.C. §6294a.</text> </paragraph> <paragraph num="(8)"> <text>“Faucet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Person” has the meaning stated in State Government Article, §1-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Portable electric spa” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Public lavatory faucet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Replacement aerator” means an aerator that is:</text> <paragraph num="(a)"> <text>Designed as a replacement part for a faucet; and</text> </paragraph> <paragraph num="(b)"> <text>Packaged and sold separately from a faucet to which it is designed to attach.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>Residential Ventilating Fan.</text> <paragraph num="(a)"> <text>“Residential ventilating fan” means a fan designed to:</text> <paragraph num="(i)"> <text>Be ceiling mounted, wall mounted, or remotely mounted; and</text> </paragraph> <paragraph num="(ii)"> <text>Move air from inside a building to the outdoors.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Residential ventilating fan” includes fans commonly used in a bathroom or utility room to expel odors or fumes.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Retailer” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“Showerhead has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(16)"> <text>“Spray sprinkler body” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(17)"> <text>“Urinal” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(18)"> <text>“Water closet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(19)"> <text>“Water cooler” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(20)"> <text>“WaterSense” means the U.S. Environmental Protection Agency program established under 42 U.S.C. §6294b.</text> </paragraph> <paragraph num="(21)"> <text>“Widely available in Maryland” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Scope of Application of Standards."> <paragraph num="A."> <text>This chapter applies to the testing, certification, and enforcement of efficiency standards for the following types of new products sold, offered for sale, or installed in the State:</text> <paragraph num="(1)"> <text>Portable electric spas;</text> </paragraph> <paragraph num="(2)"> <text>Air purifiers;</text> </paragraph> <paragraph num="(3)"> <text>Commercial dishwashers;</text> </paragraph> <paragraph num="(4)"> <text>Commercial steam cookers;</text> </paragraph> <paragraph num="(5)"> <text>Faucets;</text> </paragraph> <paragraph num="(6)"> <text>Residential ventilating fans;</text> </paragraph> <paragraph num="(7)"> <text>Showerheads;</text> </paragraph> <paragraph num="(8)"> <text>Spray sprinkler bodies;</text> </paragraph> <paragraph num="(9)"> <text>Urinals;</text> </paragraph> <paragraph num="(10)"> <text>Water closets; and</text> </paragraph> <paragraph num="(11)"> <text>Water coolers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to:</text> <paragraph num="(1)"> <text>New products manufactured in the State and sold outside the State;</text> </paragraph> <paragraph num="(2)"> <text>New products manufactured outside the State and sold at wholesale inside the State for final retail sale and installation outside the State;</text> </paragraph> <paragraph num="(3)"> <text>Products installed in mobile manufactured homes at the time of construction;</text> </paragraph> <paragraph num="(4)"> <text>Products designed expressly for installation and use in recreational vehicles or marine vessels; or</text> </paragraph> <paragraph num="(5)"> <text>Products to be sold at retail that are in stock at the retail establishment before the effective date of any efficiency standard regulation for that item.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Minimum Efficiency Standards."> <paragraph num="A."> <text>On or after the date specified in Regulation .06 of this chapter, a person may not sell or install for profit a covered product that does not meet or exceed the corresponding minimum efficiency standards listed in this regulation.</text> </paragraph> <paragraph num="B."> <text>Air purifiers shall comply with federal standards for air cleaners under 10 CFR Part 430, Subpart C.</text> </paragraph> <paragraph num="C."> <text>Commercial dishwashers shall meet the applicable qualification criteria specified in the ENERGY STAR program requirements product specification for commercial dishwashers.</text> </paragraph> <paragraph num="D."> <text>Commercial steam cookers shall meet the requirements specified in the ENERGY STAR program requirements product specification for commercial steam cookers.</text> </paragraph> <paragraph num="E."> <text>Faucets shall meet the following standards when tested in accordance with 10 CFR Part 430, Subpart B, Appendix S, compliance with which shall be verified by using the uniform test method for measuring the water consumption of faucets and showerheads:</text> <paragraph num="(1)"> <text>Private lavatory faucets and replacement aerators may not exceed a maximum flow rate of 1.5 gallons per minute at 60 pounds per square inch;</text> </paragraph> <paragraph num="(2)"> <text>Residential kitchen faucets and replacement aerators may not exceed a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch, with optional temporary flow of 2.2 gallons per minute, provided the faucet defaults to a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch after each use; and</text> </paragraph> <paragraph num="(3)"> <text>Public lavatory faucets and replacement aerators may not exceed a maximum flow rate of 0.5 gallons per minute at 60 pounds per square inch.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Portable electric spas shall meet the requirements of the ANSI/APSP/ICC 14-2019.</text> </paragraph> <paragraph num="G."> <text>Residential ventilating fans shall meet the following requirements when tested in accordance with the Home Ventilation Institute’s airflow test procedure stated in Home Ventilation Institute Publication 916:</text> <paragraph num="(1)"> <text>In–line residential ventilating fans shall be equipped with a fan motor with an efficiency of at least 2.8 cubic feet per minute per watt; and</text> </paragraph> <paragraph num="(2)"> <text>Non–in–line residential ventilating fans shall be equipped with a fan motor with an efficiency of at least 1.4 cubic feet per minute per watt for airflows less than 90 cubic feet per minute and at least 2.8 cubic feet per minute per watt for airflows greater than or equal to 90 cubic feet per minute.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Showerheads may not exceed a maximum flow rate of 2.0 gallons per minute at 80 pounds per square inch when tested in accordance with 10 CFR Part 430, Subpart B, Appendix S, compliance with which shall be verified by using the uniform test method for measuring the water consumption of faucets and showerheads.</text> </paragraph> <paragraph num="I."> <text>Spray sprinkler bodies that are not specifically excluded from the scope of the WaterSense specification for spray sprinkler bodies shall include an integral pressure regulator and meet the water efficiency, performance criteria, and other requirements specified in the WaterSense specification for spray sprinkler bodies.</text> </paragraph> <paragraph num="J."> <text>Urinals shall have a maximum flush volume of 0.5 gallons per flush when tested in accordance with 10 CFR Part 430, Subpart B, Appendix T, compliance with which shall be verified by using the uniform test method for measuring the water consumption of water closets and urinals.</text> </paragraph> <paragraph num="K."> <text>Water closets shall meet the following standards when tested in accordance with 10 CFR Part 430, Subpart B, Appendix T, compliance with which shall be verified by using the uniform test method for measuring the water consumption of water closets and urinals:</text> <paragraph num="(1)"> <text>Subject to §K(2) of this regulation, water closets shall have a maximum flush volume of 1.28 gallons per flush; and</text> </paragraph> <paragraph num="(2)"> <text>Dual–flush tank–type water closets shall have a maximum dual–flush effective volume of 1.28 gallons per flush.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Water coolers included in the scope of the ENERGY STAR program’s water coolers specification shall have an on mode with no water draw energy consumption that is less than or equal to the following values as measured in accordance with the on mode with no water draw test mode specified in the water coolers specification:</text> <paragraph num="(1)"> <text>0.16 kilowatt–hours per day for cold only units and cook and cold units;</text> </paragraph> <paragraph num="(2)"> <text>0.87 kilowatt–hours per day for storage type hot and cold units; and</text> </paragraph> <paragraph num="(3)"> <text>0.18 kilowatt–hours per day for on-demand hot and cold units.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Effective Dates for Minimum Efficiency Standards."> <paragraph num="A."> <text>The effective date for efficiency standards for covered products sold or offered for sale in the State is January 1, 2024.</text> </paragraph> <paragraph num="B."> <text>A covered product that does not meet or exceed the corresponding minimum efficiency standards listed in this regulation may not be installed for profit after January 1, 2025.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Petition for Delayed Implementation."> <paragraph num="A."> <text>A Maryland business or consumer may file a request with the Administration to delay the effective date of any standard adopted under this chapter if products conforming to a standard will not be widely available in Maryland by the effective date specified in Regulation .06 of this chapter.</text> </paragraph> <paragraph num="B."> <text>The Administration may limit a delay to identifiable subcategories of any category of covered products.</text> </paragraph> <paragraph num="C."> <text>The request shall:</text> <paragraph num="(1)"> <text>Be in writing; and</text> </paragraph> <paragraph num="(2)"> <text>State the length of the delayed implementation being requested and the reasons for the proposed delay, including any information the person filing the request relied upon to conclude that the product would not be widely available by the effective date.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon receipt of a request, the Administration shall issue a public notice of the proposed delay and solicit comment. The Administration may determine the most effective means to issue the notice and receive comment.</text> </paragraph> <paragraph num="E."> <text>If, after public notice and comment, the Administration determines that the product conforming to the standard will not be widely available in Maryland, the Administration shall issue notice of the delay for implementing the standard in the Maryland Register and any other means the Administration determines is appropriate for the product being subjected to the delay. The Administration may not delay the implementation of any standard by more than 1 year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Testing Procedures."> <text>A covered product shall be tested in accordance with the requirements of Regulation .05 of this chapter.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Manufacturers' Certification of New Products."> <paragraph num="A."> <text>A covered product may not be sold in the State on or after its respective minimum efficiency standard effective date unless:</text> <paragraph num="(1)"> <text>The Administration has accepted a certification provided by the manufacturer of the covered product demonstrating the covered product meets or exceeds its respective minimum efficiency standard under Regulation .05 of this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>Efficiency of a covered product can be verified by an alternative method, including via the:</text> <paragraph num="(a)"> <text>California Energy Commission Modernized Appliance Efficiency Database System;</text> </paragraph> <paragraph num="(b)"> <text>Northeast Energy Efficiency Partnerships State Appliance Standards Database;</text> </paragraph> <paragraph num="(c)"> <text>Federal ENERGY STAR program;</text> </paragraph> <paragraph num="(d)"> <text>Federal WaterSense Program; or</text> </paragraph> <paragraph num="(e)"> <text>Use of another official state database or other nationally recognized database.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The certification required under §A(1) of this regulation shall be filed with the Administration stating that each covered product that is sold or offered for sale in Maryland complies with the requirements of the Efficiency Standards Act.</text> </paragraph> <paragraph num="C."> <text>The certification required under §A(1) of this regulation shall:</text> <paragraph num="(1)"> <text>Be in a format and in categories specified and made publicly available by the Administration;</text> </paragraph> <paragraph num="(2)"> <text>Verify that each product has been tested in accordance with all applicable requirements and specify the standard by which the product has been tested;</text> </paragraph> <paragraph num="(3)"> <text>Contain the name, address, telephone number, website address, and email address of the laboratory or other institution where the testing was performed;</text> </paragraph> <paragraph num="(4)"> <text>Contain the name, address, telephone number, and email address of the individual to contact concerning the statement; and</text> </paragraph> <paragraph num="(5)"> <text>Meet all other applicable requirements.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may establish, modify, and enforce schedules for the submittal of statements for the orderly processing of submittals.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Product Verification Testing by the Administration."> <paragraph num="A."> <text>To ensure compliance with adopted standards, the Administration may test a covered product to verify compliance with its applicable minimum efficiency standard.</text> </paragraph> <paragraph num="B."> <text>If a covered product tested is found to be out of compliance with its applicable minimum efficiency standards, the Administration shall:</text> <paragraph num="(1)"> <text>Charge the manufacturer of the product for the cost of product purchase and testing; and</text> </paragraph> <paragraph num="(2)"> <text>Make information available to the public on products found to be out of compliance with the standards by appropriate means.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Labeling."> <paragraph num="A."> <text>Once a manufacturer has certified a new product as outlined in Regulation .09 of this chapter, a manufacturer may mark, label, or tag the product or packaging as meeting the relevant minimum efficiency level outlined in Regulation .04 of this chapter.</text> </paragraph> <paragraph num="B."> <text>The mark, label, or tag shall consist of the letter “M” within a circle no less than 3/8 inch in diameter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Inspection and Enforcement."> <paragraph num="A."> <text>The Administration may make periodic inspections of distributors and retailers of new products listed in Regulation .04 of this chapter in order to determine compliance with the provisions of this chapter.</text> </paragraph> <paragraph num="B."> <text>Before any inspection, the Administration shall give prior notice to the distributor or retailer.</text> </paragraph> <paragraph num="C."> <text>Inspections shall take place during normal business hours unless the distributor or retailer agrees upon a different time.</text> </paragraph> <paragraph num="D."> <text>The Administration may set up a process for receiving complaints concerning potential violations of Regulation .05 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Fines for Noncompliance."> <paragraph num="A."> <text>The Administration may investigate complaints received concerning potential violations of Regulation .05 of this chapter and shall report the results of an investigation to the Attorney General.</text> </paragraph> <paragraph num="B."> <text>A manufacturer, distributor, or retailer of new products listed in Regulation .04 of this chapter that violates any provision of Regulation .05 of this chapter shall be issued a warning by the Administration for a first violation.</text> </paragraph> <paragraph num="C."> <text>Repeat violators are subject to a civil penalty of not more than $250.</text> </paragraph> <paragraph num="D."> <text>Each violation of Regulation .05 of this chapter constitutes a separate offense and each day that a violation continues constitutes a separate offense.</text> </paragraph> <paragraph num="E."> <text>Penalties assessed under this regulation are in addition to costs assessed under Regulation .10B(1) of this chapter.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §9-2006, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 22, 2004 (31:23 Md. R. 1655)</annotation> <annotation type="History" subtype="Administrative History">Regulations 01—.13 repealed and new Regulations .01—.13 adopted effective June 19, 2006 (33:12 Md. R. 998)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 repealed and new Regulation .02 adopted effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12D adopted effective January 1, 2025 (Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13A amended effective January 1, 2025 (Md. R. 964)</annotation> </annotations> </chapter> <chapter num="04" heading="Clean Energy Grant Program"> <annotations> <annotation type="Authority">State Government Article, §9-20B-01 et seq., Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective January 1, 2005 (31:23 Md. R. 1649); adopted permanently effective January 6, 2005 (31:26 Md. R. 1865)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008</annotation> <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective May 18, 2012 (39:12 Md. R. 743); emergency provision expired November 13, 2012</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed and new Regulations .01—.11 adopted as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 under Solar Energy Grant Program repealed and new Regulations .01— .13 under Clean Energy Grant Program adopted as an emergency provision effective October 11, 2013 (40:22 Md. R. 1871); adopted permanently effective February 3, 2014 (41:2 Md. R. 92)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 repealed effective April 15, 2024 (51:7 Md. R. 333)</annotation> </annotations> </chapter> <chapter num="05" heading="Geothermal Heat Pump Grant Program" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: February 26, 2007 (34:4 Md. R. 402)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 under COMAR 14.26.05 Geothermal Heat Pump Grant Program repealed and Regulations .01—.11 under COMAR 14.26.06 Maryland Clean Energy Incentive Tax Credit Program recodified to be COMAR 14.26.05 as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 under COMAR 14.26.05 Geothermal Heat Pump Grant Program repealed as an emergency provision effective October 11, 2013 (40:22 Md. R. 1871); repealed permanently effective February 3, 2014 (41:2 Md. R. 92)</annotation> </annotations> </chapter> <chapter num="06" heading="Maryland Clean Energy Incentive Tax Credit Program"> <annotations> <annotation type="Authority">Tax-General Article, §10-720, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 26, 2007 (34:4 Md. R. 402)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 under COMAR 14.26.06 Maryland Clean Energy Incentive Tax Credit Program recodified to be Regulations .01—.11 under COMAR 14.26.05 Maryland Clean Energy Incentive Tax Credit Program as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.11 repealed effective April 15, 2024 (51:7 Md. R. 333)</annotation> </annotations> </chapter> <chapter num="07" heading="Maryland Energy Storage Systems Income Tax Credit Program"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>These regulations implement Maryland's Income Tax Credit — Energy Storage Systems Act by establishing procedures for persons and businesses to apply for tax credits for purchasing and installing a qualifying energy storage system on eligible property in Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>The Maryland Income Tax Credit — Energy Storage System Act establishes a program to award tax credits to Individuals and Corporations that purchase and install a qualifying energy storage system on eligible property in Maryland. The Program also establishes limits on eligibility and the amount and duration of the credit Program.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administration” means the Maryland Energy Administration.</text> </paragraph> <paragraph num="(2)"> <text>“Capacity factor” means the ratio of actual energy output compared with the maximum possible energy output over a specified period of time.</text> </paragraph> <paragraph num="(3)"> <text>“Commercial property” means nonresidential property with a commercial, industrial, or government use as outlined in the qualifications for the Commercial Clean Energy Grant Program in COMAR 14.26.04.02 and includes multifamily properties.</text> </paragraph> <paragraph num="(4)"> <text>“Corporation” has the meaning stated in Tax-General Article, §10-101(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Energy density” means the amount of energy that can be stored in the given mass of the system.</text> </paragraph> <paragraph num="(6)"> <text>“Energy markets” mean wholesale electricity markets hosted by PJM Interconnection.</text> </paragraph> <paragraph num="(7)"> <text>“Energy storage duration” means duration at rated power.</text> </paragraph> <paragraph num="(8)"> <text>“Energy storage systems income tax credit” means a decrease in income tax liability offered to assist an individual or corporation in installing an energy storage system.</text> </paragraph> <paragraph num="(9)"> <text>“Energy storage system power density” means the rate of energy flux per unit of area of the energy storage system.</text> </paragraph> <paragraph num="(10)"> <text>“Individual” has the meaning stated in Tax-General Article, §10-101(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Installation date” means the date when the energy storage system was installed on the property and operational, not when the final permits were completed.</text> </paragraph> <paragraph num="(12)"> <text>Residential Property.</text> <paragraph num="(a)"> <text>“Residential property” means property, including a single-family home and an individual unit of a multifamily property or mixed use facility, that has the purpose of serving as a primary residence, as outlined in COMAR 14.26.04.02</text> </paragraph> <paragraph num="(b)"> <text>“Residential property” includes a property with a home office.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Qualifying Energy Storage Systems."> <paragraph num="A."> <text>Qualifying energy storage systems may store the following types of energy for use as electrical energy at a later date or in a process that offsets electricity use at peak times:</text> <paragraph num="(1)"> <text>Electrical energy;</text> </paragraph> <paragraph num="(2)"> <text>Mechanical energy;</text> </paragraph> <paragraph num="(3)"> <text>Chemical energy; or</text> </paragraph> <paragraph num="(4)"> <text>Thermal energy.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Qualifying energy storage systems shall maintain certain safety criteria, namely:</text> <paragraph num="(1)"> <text>Use equipment certified by a nationally recognized testing laboratory (NRTL);</text> </paragraph> <paragraph num="(2)"> <text>Be installed by a licensed electrician, for electrical systems; and</text> </paragraph> <paragraph num="(3)"> <text>Be in compliance with all applicable building and fire codes.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Qualifying energy storage systems shall also meet the following:</text> <paragraph num="(1)"> <text>Be installed in Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Abide by Maryland regulations regarding interconnection with the electric utility and grid, if applicable.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Administration may adjust energy storage system qualifications across program years.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Qualifying Program Participant."> <paragraph num="A."> <text>Qualifying energy storage program participants may include:</text> <paragraph num="(1)"> <text>Residential taxpayers who purchase and install an energy storage system for a residential property which they own; or</text> </paragraph> <paragraph num="(2)"> <text>Commercial taxpayers who purchase and install an energy storage system for a commercial property which they own.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Taxpayers that have already claimed an energy storage systems income tax credit as part of this program are ineligible for additional energy storage systems income tax credits for the same taxable year.</text> </paragraph> <paragraph num="C."> <text>Addresses where energy storage systems income tax credits have already been claimed, including multifamily properties, are ineligible for additional energy storage income tax credits from this program.</text> </paragraph> <paragraph num="D."> <text>An energy storage systems income tax credit cannot be claimed for an electric vehicle.</text> </paragraph> <paragraph num="E."> <text>The Administration may adjust program participant qualifications across program years.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Amount of Tax Credit."> <text>An individual or corporation that receives a credit certificate from the Administration may claim a credit against the individual’s or corporation’s State income tax for a specified taxable year in an amount that may not exceed the lessor of:</text> <paragraph num="A."> <text>For a qualifying energy storage system installed:</text> <paragraph num="(1)"> <text>On a residential property, $5,000;</text> </paragraph> <paragraph num="(2)"> <text>On a commercial property, $75,000; or</text> </paragraph> <paragraph num="(3)"> <text>30 percent of the total installed costs of the qualifying energy storage system.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration may bifurcate the annual program budget to allow for a funding allocation for both residential and commercial participants.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Application Process for a Credit Certification."> <paragraph num="A."> <text>An individual or corporation interested in qualifying for a credit certification may be asked to provide some or all, at the sole discretion of the Administration, of the following information to the Administration:</text> <paragraph num="(1)"> <text>Name, address, email address, and phone number of the applicant's authorized representative;</text> </paragraph> <paragraph num="(2)"> <text>Estimated gross income of property owner for a residential participant, or gross revenue for a commercial participant;</text> </paragraph> <paragraph num="(3)"> <text>Estimated tax liability;</text> </paragraph> <paragraph num="(4)"> <text>Property physical address and proof of ownership of property;</text> </paragraph> <paragraph num="(5)"> <text>Description of the qualifying energy storage system being proposed for use at the facility and an explanation of how it offsets electricity when discharging;</text> </paragraph> <paragraph num="(6)"> <text>Name and contact information of the developer/installer;</text> </paragraph> <paragraph num="(7)"> <text>Whether or not the energy storage system will participate in wholesale energy markets;</text> </paragraph> <paragraph num="(8)"> <text>Anticipated cost of the qualifying energy storage system;</text> </paragraph> <paragraph num="(9)"> <text>Expected life of the qualifying energy storage system;</text> </paragraph> <paragraph num="(10)"> <text>Anticipated in-service date for the qualifying energy storage system;</text> </paragraph> <paragraph num="(11)"> <text>Anticipated capacity factor of the qualifying energy storage system;</text> </paragraph> <paragraph num="(12)"> <text>Energy storage duration;</text> </paragraph> <paragraph num="(13)"> <text>Energy density;</text> </paragraph> <paragraph num="(14)"> <text>Energy storage system power density;</text> </paragraph> <paragraph num="(15)"> <text>Documentation verifying that the energy storage system has been installed and is operational, which includes copies of local electrical permits, inspection approvals, equipment certified by a nationally recognized testing laboratory, the results of any performance testing, and any other applicable documentation; and</text> </paragraph> <paragraph num="(16)"> <text>Any other information the Administration considers necessary to process the application.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Administration shall issue credit certificates on a first-come, first-served basis once it has determined the application is complete and verifies the information provided by the applicant.</text> </paragraph> <paragraph num="C."> <text>The Administration may bifurcate the application process as necessary into more than one step.</text> </paragraph> <paragraph num="D."> <text>The Administration may not issue a credit certification of more than $75,000 for a commercial property or $5,000 for a residential property, and the Administration may not issue a total amount of credits totaling more than $750,000 in any taxable year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Unused Credit."> <text>If the credit allowed under this chapter in any taxable year exceeds the State income tax otherwise payable by the individual or corporation for that taxable year, any unused credit may not be claimed for another taxable year.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Program Termination."> <text>The Administration may not issue a certificate for a qualifying energy storage system installed after December 31, 2022.</text> </regulation> <annotations> <annotation type="Authority">Tax-General Article, §10-719, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 10, 2018 (45:18 Md. R. 834)</annotation> </annotations> </chapter> </subtitle> <subtitle num="27" heading="Maryland Environmental Service"> <chapter num="01" heading="Designation of Service Regions" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: May 15, 1981 (8:10 Md. R. 876)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from 08.17.01 effective July, 1993</annotation> <annotation type="History" subtype="Administrative History">Chapter repealed effective November 14, 2011 (38:23 Md. R. 1422)</annotation> </annotations> </chapter> <chapter num="02" heading="Human Resources System"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>These regulations apply to an individual who:</text> <paragraph num="(1)"> <text>Is hired by the Service after June 30, 1993;</text> </paragraph> <paragraph num="(2)"> <text>Was employed by the Service before July 1, 1993, but who is not a member of the State Personnel Management System; and</text> </paragraph> <paragraph num="(3)"> <text>Transfers from the State Personnel Management System to the human resources system established by Natural Resources Article, §3-103.1, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>These regulations shall apply to the Executive Director, but not to any other member of the Board of Directors.</text> </paragraph> <paragraph num="C."> <text>Regulations .05, .06, .10—.13, .15A—F, .16, .17, .21, .25, and .27 of this chapter do not apply to temporary employees of the Service.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means an individual who submits a request to be considered for employment by the Service after the Service announces that it is seeking applicants.</text> </paragraph> <paragraph num="(2)"> <text>“Board” means the Board of Directors of the Service.</text> </paragraph> <paragraph num="(3)"> <text>“Classification” means the descriptive title assigned to a single position or group of positions that are similar in duties, responsibilities, and minimum qualifications, and have the same pay grade.</text> </paragraph> <paragraph num="(4)"> <text>“Demotion” means a change from one position to another position which has a lower maximum pay grade or reduced duties and responsibilities.</text> </paragraph> <paragraph num="(5)"> <text>“Director” means the Executive Director of the Maryland Environmental Service.</text> </paragraph> <paragraph num="(6)"> <text>Employee.</text> <paragraph num="(a)"> <text>“Employee” means an individual who is hired or who transfers to a position under the regulations, policies, and procedures of the Service's human resources system.</text> </paragraph> <paragraph num="(b)"> <text>“Employee” includes a contractual employee, a senior management employee, and a temporary employee.</text> </paragraph> <paragraph num="(c)"> <text>“Employee” does not include an inmate or patient in a State institution who is employed by the Service.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Human resources system” means the Service's personnel system established by this chapter.</text> </paragraph> <paragraph num="(8)"> <text>“Leave” means official absence from Service duties and responsibilities.</text> </paragraph> <paragraph num="(9)"> <text>“Overtime” means work in excess of 40 hours per week.</text> </paragraph> <paragraph num="(10)"> <text>“Performance appraisal” means an evaluation of an employee's work performance based on predefined duties and responsibilities as described in job descriptions and performance planning documents.</text> </paragraph> <paragraph num="(11)"> <text>“Physical and mental qualification standards” means job-related physical and mental criteria necessary to perform the essential functions of a specific position.</text> </paragraph> <paragraph num="(12)"> <text>“Position” means a set of duties and responsibilities which are or could be performed by a single individual. A position may be either filled or vacant, full-time or part-time.</text> </paragraph> <paragraph num="(13)"> <text>“Probation” means a trial work period.</text> </paragraph> <paragraph num="(14)"> <text>“Promotion” means a change from one position to another position which has a higher maximum pay grade and increased duties and responsibilities.</text> </paragraph> <paragraph num="(15)"> <text>“Service” means the Maryland Environmental Service.</text> </paragraph> <paragraph num="(16)"> <text>“Supervisor” means an employee who is authorized to direct or manage another employee's duties, responsibilities, and access to benefits.</text> </paragraph> <paragraph num="(17)"> <text>Temporary Employee.</text> <paragraph num="(a)"> <text>“Temporary employee” means an individual hired by the Service for a period not to exceed 6 months.</text> </paragraph> <paragraph num="(b)"> <text>“Temporary employee” includes a student employee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Equal Employment Opportunity."> <paragraph num="A."> <text>The Service shall have a comprehensive equal employment opportunity/affirmative action program covering all elements of the Service's human resource policies and management practices.</text> </paragraph> <paragraph num="B."> <text>The Service shall implement this chapter in a manner that does not discriminate on the basis of:</text> <paragraph num="(1)"> <text>Race;</text> </paragraph> <paragraph num="(2)"> <text>Color;</text> </paragraph> <paragraph num="(3)"> <text>Age;</text> </paragraph> <paragraph num="(4)"> <text>Creed;</text> </paragraph> <paragraph num="(5)"> <text>Sex;</text> </paragraph> <paragraph num="(6)"> <text>National origin;</text> </paragraph> <paragraph num="(7)"> <text>Religious affiliation, belief, or opinion;</text> </paragraph> <paragraph num="(8)"> <text>Marital status;</text> </paragraph> <paragraph num="(9)"> <text>Physical or mental disability;</text> </paragraph> <paragraph num="(10)"> <text>Sexual orientation;</text> </paragraph> <paragraph num="(11)"> <text>Ancestry;</text> </paragraph> <paragraph num="(12)"> <text>Gender identity; or</text> </paragraph> <paragraph num="(13)"> <text>Other factors not related to work performance or job qualifications.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Organization of Human Resources System."> <paragraph num="A."> <text>The Service shall have a human resources system. The Human Resources Division of the Service shall administer and manage the human resources system. The Human Resources Division shall maintain records that:</text> <paragraph num="(1)"> <text>Document any action affecting the status of an employee; and</text> </paragraph> <paragraph num="(2)"> <text>Are required to be maintained by law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Board may adopt policies and procedures for administering the human resources system and shall maintain records of the policies and procedures.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Qualifications and Examinations."> <paragraph num="A."> <text>The Service shall establish minimum qualifications and selection criteria for an employment position.</text> </paragraph> <paragraph num="B."> <text>Examinations. The Service may require an applicant for employment to participate in an examination of the applicant's job-related qualifications.</text> </paragraph> <paragraph num="C."> <text>Returning Veterans and Reservists. The Service shall employ returning veterans and reservists in accordance with the provisions of State Personnel and Pensions Article, Title 2, Subtitle 7, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Hiring Employees."> <paragraph num="A."> <text>Selection Criteria.</text> <paragraph num="(1)"> <text>The Service shall select for employment the applicant who best meets the selection criteria established by the Service.</text> </paragraph> <paragraph num="(2)"> <text>The Service may hire an individual who does not meet the Service's minimum qualifications or the selection criteria if the:</text> <paragraph num="(a)"> <text>Service determines that the individual is more qualified for the employment position than another applicant; or</text> </paragraph> <paragraph num="(b)"> <text>Individual is currently employed at a project or facility for which the Service assumes operation or management.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Physical and Mental Examinations.</text> <paragraph num="(1)"> <text>An applicant who is selected for employment shall undergo a physical and mental examination. The Service may not require an applicant to undergo a physical and mental examination before being offered employment by the Service. Any offer of employment is contingent upon the applicant meeting the physical and mental qualification standards for the position for which the Service makes the offer of employment.</text> </paragraph> <paragraph num="(2)"> <text>Physical and mental qualification standards shall be job-related and consistent with business necessity. The Service shall provide reasonable accommodations to an applicant who does not meet the physical or mental qualification standards, unless the accommodation would impose an undue hardship upon the Service.</text> </paragraph> <paragraph num="(3)"> <text>The Service may revoke an offer of employment to an applicant who:</text> <paragraph num="(a)"> <text>Does not meet either the physical or mental qualification standards for the employment position; and</text> </paragraph> <paragraph num="(b)"> <text>Cannot be reasonably accommodated by the Service without undue hardship upon the Service.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Probation."> <paragraph num="A."> <text>An employee of the Service shall serve a probationary period of 6 months from the date the employee is hired.</text> </paragraph> <paragraph num="B."> <text>An employee's probation may be extended for an additional period not to exceed 3 months. The maximum period of probation including extension may not exceed 9 months.</text> </paragraph> <paragraph num="C."> <text>Termination of Probationary Employees.</text> <paragraph num="(1)"> <text>The Service may terminate a new employee on probation without cause.</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §C(3) of this regulation, the Service shall notify the employee at least 2 weeks before the effective date of the termination.</text> </paragraph> <paragraph num="(3)"> <text>The Service may terminate a new employee on probation without 2 weeks notice if the:</text> <paragraph num="(a)"> <text>Service determines that the employee misrepresented any information on the employee's employment application; or</text> </paragraph> <paragraph num="(b)"> <text>Termination is due to a breach of discipline or gross incompetence.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Compensation of Employees."> <paragraph num="A."> <text>Salaries and Wages.</text> <paragraph num="(1)"> <text>The Service shall compensate an employee according to:</text> <paragraph num="(a)"> <text>The Service's budget; and</text> </paragraph> <paragraph num="(b)"> <text>A salary structure that is developed by the Director and approved by the Board.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The salary structure in §A(1)(b) of this regulation shall list the complete salary range of classes of positions and may include a pay plan and salary rules.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Incentive Pay. The Director, with the approval of the Board, may establish an incentive pay plan. The Board shall approve all disbursement of incentive pay and shall determine the eligibility of Service employees to participate in an incentive pay plan.</text> </paragraph> <paragraph num="C."> <text>Salary Structure. The Service shall conduct salary reviews periodically and may recommend that the Board adjust the Service salary structure based on these reviews.</text> </paragraph> <paragraph num="D."> <text>Merit Increase Adjustment. Merit increases for individual employees shall be made on the basis of the annual performance appraisal and under guidelines approved by the Board.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Overtime."> <paragraph num="A."> <text>The Director, or the Director's designee, may require an employee to work a period of time in excess of the employee's standard workweek or workday, dependent upon workload demands.</text> </paragraph> <paragraph num="B."> <text>The Service shall pay preapproved overtime to employees who are nonexempt under the Fair Labor Standards Act in accordance with the Fair Labor Standards Act, 29 U.S.C. §201 and the provisions of State Personnel and Pensions Article, Title 8, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Benefits."> <text>The Board shall establish a benefits plan, which includes reasonable eligibility criteria, for employees. The benefits plan shall be consistent with State Personnel and Pensions Article, §2-511, Annotated Code of Maryland, which allows employees to participate in the State Employee and Retiree Health and Welfare Benefits Program.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Annual Leave."> <paragraph num="A."> <text>Amount of Leave Earned.</text> <paragraph num="(1)"> <text>From the 1st through the 6th month of employment, an employee may not earn annual leave. Upon completion of the 6th month of service, the Service shall credit an employee with annual leave for the first 6 months on the basis of 1 hour of leave for each 26 hours worked.</text> </paragraph> <paragraph num="(2)"> <text>From the beginning of the 1st year of employment through the completion of the 5th year of employment, an employee shall earn annual leave at the rate of 1 hour of leave for each 26 hours worked. An employee who has been employed less than 5 years by the Service may not earn more than 80 hours of annual leave in a calendar year.</text> </paragraph> <paragraph num="(3)"> <text>From the beginning of the 6th year of service through the completion of the 10th year of employment, an employee shall earn annual leave at the rate of 11/2 hours of leave for each 26 hours worked. An employee who has been employed less than 10 years by the Service may not earn more than 120 hours of annual leave in a calendar year.</text> </paragraph> <paragraph num="(4)"> <text>From the beginning of the 11th year of service through the completion of the 20th year of service, an employee shall earn annual leave at the rate of 2 hours of leave for each 26 hours worked. An employee who has been employed less than 20 years by the Service may not earn more than 160 hours of annual leave in a calendar year.</text> </paragraph> <paragraph num="(5)"> <text>From the beginning of the 21st year of service and after that, an employee shall earn annual leave at a rate of 21/2 hours of leave for each 26 hours worked. An employee who has been employed more than 21 years by the Service may not earn more than 200 hours of annual leave a year.</text> </paragraph> <paragraph num="(6)"> <text>Under this regulation, the amount of hours an employee has worked includes any hours the employee is on paid leave. An employee may not earn annual leave for hours worked in excess of the employee's standard workweek.</text> </paragraph> <paragraph num="(7)"> <text>Under this regulation, an employee's years of employment include all time the employee has been employed by the Service, regardless of any break in employment with the Service.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Accumulated Annual Leave.</text> <paragraph num="(1)"> <text>An employee may accumulate unused annual leave and may carry over from one calendar year to the next year up to 75 days or 600 hours of that unused annual leave. Any accumulated and unused annual leave in excess of 75 days or 600 hours, whichever is greater, shall be forfeited at the beginning of the first full pay period of the next calendar year.</text> </paragraph> <paragraph num="(2)"> <text>For a part-time employee, annual leave may be accumulated to a maximum determined on the basis of the percentage of 600 hours of annual leave equal to the percentage of employment, and carried into a new calendar year.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Use of Annual Leave. If an employee has sufficient annual leave, then the employee shall make a reasonable effort to use a minimum of 80 hours of annual leave in a calendar year. An employee shall obtain the approval of the employee's supervisor before using annual leave.</text> </paragraph> <paragraph num="D."> <text>The Board may establish the amount of annual leave for which designated classes of employees may be eligible to receive. The amount of annual leave may not be less than the amount of annual leave authorized by §A of this regulation. The Board shall determine the circumstances under which the designated classes of employees may utilize annual leave.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Sick Leave."> <paragraph num="A."> <text>Amount of Leave Earned.</text> <paragraph num="(1)"> <text>Starting with the first month of service an employee shall earn 1 hour of sick leave for every 37.14 hours worked. An employee may not earn more than 7 days of sick leave in a calendar year.</text> </paragraph> <paragraph num="(2)"> <text>An employee may not earn sick leave upon hours worked in excess of the employee's standard workweek.</text> </paragraph> <paragraph num="(3)"> <text>Under this regulation the amount of hours an employee has worked shall include any hours the employee is on paid leave.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Director, with the approval of the Board, may establish an incentive program for employees. The incentive program may include provisions for the Service to reimburse an employee for unused sick leave if the employee's accumulated sick leave is reduced by an amount equal to the reimbursement.</text> </paragraph> <paragraph num="C."> <text>Advanced Sick Leave.</text> <paragraph num="(1)"> <text>The Service may advance up to 15 days of sick leave to an employee in any calendar year for a serious disability, ailment, or illness if no other leave with pay is credited to the employee.</text> </paragraph> <paragraph num="(2)"> <text>The use of advanced sick leave by an employee constitutes a debt for which payment is enforceable upon the employee's return to work, and continues to be enforceable on the employee's termination of employment with the Service.</text> </paragraph> <paragraph num="(3)"> <text>An employee shall repay to the Service advanced sick leave:</text> <paragraph num="(a)"> <text>In cash;</text> </paragraph> <paragraph num="(b)"> <text>By applying credited annual leave, personal leave, or sick leave of the employee to the amount of advanced leave owed; or</text> </paragraph> <paragraph num="(c)"> <text>By reducing the amount of sick leave earned and credited to the employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Use of Sick Leave. An employee may use sick leave for the following purposes only:</text> <paragraph num="(1)"> <text>Disability or illness of the employee;</text> </paragraph> <paragraph num="(2)"> <text>A documented medical appointment for the employee;</text> </paragraph> <paragraph num="(3)"> <text>Illness of a member of the employee's immediate family;</text> </paragraph> <paragraph num="(4)"> <text>A medical appointment for a member of the employee's immediate family;</text> </paragraph> <paragraph num="(5)"> <text>Bereavement leave as described in §I of this regulation; or</text> </paragraph> <paragraph num="(6)"> <text>Birth or adoption of employee’s child as describe in §J of this regulation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Sick leave may be accumulated without limitation. Unless otherwise provided by law, sick leave shall be forfeited upon termination of an employee's employment.</text> </paragraph> <paragraph num="F."> <text>Attendance Control — Occurrences.</text> <paragraph num="(1)"> <text>If an employee uses sick leave on 3 or more consecutive days, the employee shall submit to the Service an original health care provider's certificate which authenticates the period of illness and includes a prognosis regarding the employee's ability to return to work. The employee shall ensure that the certificate is signed personally by a licensed or certified medical provider or practitioner.</text> </paragraph> <paragraph num="(2)"> <text>In order to prevent abuse of sick leave and to ensure medical attention for an employee, the Service may require an employee to submit a certificate which authenticates a period of illness of 1 day or more and which is signed in accordance with §F(1) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>When an illness of 1 day or more occurs during a period of annual leave or personal leave, the Service shall grant sick leave for the period of illness if the employee submits a certificate to the Service which authenticates the period of illness and which is signed in accordance with §E(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Attendance Control — Medical Examinations.</text> <paragraph num="(1)"> <text>If an employee is absent from employment due to medical reasons, the Director, or the Director's designee, may require the employee to be medically examined to determine if the employee has:</text> <paragraph num="(a)"> <text>An illness which requires the employee to utilize an excessive amount of sick leave; or</text> </paragraph> <paragraph num="(b)"> <text>A disability which prevents the employee from the proper performance of the employee's duties.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A medical practitioner licensed by the State shall conduct the examination at the Service's expense.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Service shall provide unpaid leave in accordance with the Family and Medical Leave Act of 1993 and Regulation .16 of this chapter.</text> </paragraph> <paragraph num="I."> <text>Bereavement Leave.</text> <paragraph num="(1)"> <text>Death of Immediate Family Member.</text> <paragraph num="(a)"> <text>An employee may use up to 3 working days of sick leave in the event of the death of one of the following members of the employee's family:</text> <paragraph num="(i)"> <text>Spouse;</text> </paragraph> <paragraph num="(ii)"> <text>Child or stepchild of the employee;</text> </paragraph> <paragraph num="(iii)"> <text>Parent of the employee or the employee's spouse or an individual who took the place of a parent;</text> </paragraph> <paragraph num="(iv)"> <text>Sibling of the employee or the employee's spouse;</text> </paragraph> <paragraph num="(v)"> <text>Other relative living as a member of the employee's household.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If travel requiring staying away from home overnight is involved, the employee may use up to 5 working days of sick leave.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Death of Other Family Members.</text> <paragraph num="(a)"> <text>An employee may use 1 working day of sick leave in the event of the death of one of the following relatives of the employee:</text> <paragraph num="(i)"> <text>Grandparent or grandchild of the employee or the employee's spouse;</text> </paragraph> <paragraph num="(ii)"> <text>Aunt or uncle of the employee or the employee's spouse;</text> </paragraph> <paragraph num="(iii)"> <text>Niece or nephew of the employee or the employee's spouse;</text> </paragraph> <paragraph num="(iv)"> <text>Brother-in-law or sister-in-law of the employee or the employee's spouse;</text> </paragraph> <paragraph num="(v)"> <text>Son-in-law or daughter-in-law of the employee or the employee's spouse;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Director may authorize additional use of sick leave if travel away from home overnight is involved.</text> </paragraph> </paragraph> </paragraph> <paragraph num="J."> <text>Birth or Adoption of Employee’s Child. An employee who is primarily responsible for the care and nurturing of a child, with the approval of the Director or designee, may use accrued sick leave to care for the child during the period immediately following:</text> <paragraph num="(1)"> <text>The birth of the employee’s child; or</text> </paragraph> <paragraph num="(2)"> <text>The placement of the child with the employee for adoption.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Compensatory Leave."> <paragraph num="A."> <text>An executive, administrative, or professional employee, whose classification is not on the list of employees approved by the Board as eligible to receive cash overtime payments, may earn compensatory time for work performed:</text> <paragraph num="(1)"> <text>At least 1 hour beyond the employee's standard work day; and</text> </paragraph> <paragraph num="(2)"> <text>For more than 1 hour in a day that is outside the employee's standard workweek, for example, on a holiday or a weekend.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Total compensatory time earned for the day is equal to the first hour plus any time worked after the first hour.</text> </paragraph> <paragraph num="C."> <text>An employee may not carry into a new fiscal year more than 120 hours of unused compensatory time. If, on June 30, an employee has more than 120 hours of unused accumulated compensatory time, then, on July 1, the Service shall reduce the employee's accumulated unused compensatory leave balance to 120 hours.</text> </paragraph> <paragraph num="D."> <text>A part-time employee may not carry into a new fiscal year more than the number of unused compensatory leave hours which equals the funded percentage of the employee's position multiplied by 120 hours. For example, if a part-time employee works a 60 percent schedule, then the employee may not carry into the new fiscal year more than 72 unused compensatory leave hours (0.60 x 120). If, on June 30 of a year, a part-time employee has more than the permitted carryover amount of accumulated compensatory leave, then, on July 1, the Service shall reduce the employee's accumulated unused compensatory leave to the permitted carryover amount.</text> </paragraph> <paragraph num="E."> <text>An employee's supervisor shall approve compensatory time earned by the employee. Use of compensatory leave is subject to supervisory approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Accident Leave."> <paragraph num="A."> <text>Amount of Paid Accident Leave. The Service may grant up to 24 hours of paid accident leave to an employee beginning on the first day, or any portion thereof, of absence from work because of an accidental personal injury sustained by the employee in the actual performance of the employee’s job duties, and which is determined to be compensable according to the Maryland Workers’ Compensation Law, Labor and Employment Article, Title 9, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Advanced Accident Leave. The Service may grant additional advance accident leave, of up to 6 months, to an employee while the employee is awaiting a compensable injury decision from the Service’s Workers’ Compensation insurer or a compensable disability decision from the Service’s disability insurer.</text> </paragraph> <paragraph num="C."> <text>Use of Accident Leave.</text> <paragraph num="(1)"> <text>The Service shall inform an injured employee or someone on the employee's behalf of the employee's right to file a claim for compensation with the Workers' Compensation Commission.</text> </paragraph> <paragraph num="(2)"> <text>If the Workers' Compensation Commission order determines that an employee's injury is not compensable, or in the absence of a Workers' Compensation Commission order, if the Service's Workers' Compensation insurer makes a determination of noncompensability, the Service shall amend the employee's accident leave to leave with pay, or, if the employee does not have leave with pay credited, to leave of absence without pay. The employee shall reimburse the Service for any accident leave received which is not chargeable to leave with pay.</text> </paragraph> <paragraph num="(3)"> <text>An employee’s accident leave ends upon the earliest of:</text> <paragraph num="(a)"> <text>A physician certifying in writing that the employee is capable of performing the physical tasks required of the employee’s position;</text> </paragraph> <paragraph num="(b)"> <text>First receipt by the employee of any compensation from either the Service’s Workers’ Compensation or disability insurer; or</text> </paragraph> <paragraph num="(c)"> <text>The end of 6 months or any extension of advance accident leave granted by the Service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Accident Leave Pay.</text> <paragraph num="(1)"> <text>The Service shall pay an employee on accident leave or advanced accident leave at a rate which equals 66.666 percent of the employee's base wage rate.</text> </paragraph> <paragraph num="(2)"> <text>An employee is not entitled to receive both accident leave pay and compensation from either the Service's Workers' Compensation or disability insurer. If an employee on accident leave is also compensated by the Service's Workers' Compensation or disability insurer, then the use of accident leave by the employee constitutes a debt for which payment is enforceable upon the employee's return to work, and which continues to be enforceable upon the employee's termination of employment with the Service.</text> </paragraph> <paragraph num="(3)"> <text>An employee obligated to repay to the Service accident leave under §D(2) of this regulation shall repay advanced accident leave:</text> <paragraph num="(a)"> <text>In cash;</text> </paragraph> <paragraph num="(b)"> <text>By applying credited annual leave, personal leave, or sick leave to the amount of accident leave owed; or</text> </paragraph> <paragraph num="(c)"> <text>By permitting the Service to deduct the amount from a benefit payment made to the employee from the Service's Workers' Compensation or disability insurer.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Other Paid Leave."> <paragraph num="A."> <text>Holiday Leave.</text> <paragraph num="(1)"> <text>The holidays of the Service are:</text> <paragraph num="(a)"> <text>New Year's Day—January 1;</text> </paragraph> <paragraph num="(b)"> <text>Martin Luther King Jr.'s Birthday—Third Monday in January;</text> </paragraph> <paragraph num="(c)"> <text>George Washington's Birthday—Third Monday in February;</text> </paragraph> <paragraph num="(d)"> <text>Memorial Day—Last Monday in May;</text> </paragraph> <paragraph num="(e)"> <text>Independence Day—July 4;</text> </paragraph> <paragraph num="(f)"> <text>Labor Day—First Monday in September;</text> </paragraph> <paragraph num="(g)"> <text>Veteran's Day—November 11;</text> </paragraph> <paragraph num="(h)"> <text>Thanksgiving Day—Fourth Thursday in November; and</text> </paragraph> <paragraph num="(i)"> <text>Christmas Day—December 25.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a holiday falls on a Sunday, the Monday immediately following is considered and treated as a holiday. If a holiday falls on a Saturday, the Friday immediately preceding the holiday is considered and treated as the holiday.</text> </paragraph> <paragraph num="(3)"> <text>Use of Holiday Leave.</text> <paragraph num="(a)"> <text>Except for an employee subject to §A(3)(b) or (4) of this regulation, the Service shall grant an employee paid holiday leave on the holidays listed in §A(1) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>An employee who works at a facility which renders a service that is provided continuously on a 7-day-a-week basis:</text> <paragraph num="(i)"> <text>Shall be scheduled for an alternative day of paid leave if the employee is required to work on a holiday; and</text> </paragraph> <paragraph num="(ii)"> <text>May not carry into a new fiscal year more than 40 hours of unused holiday leave.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>If, on June 30, an employee has more than 40 hours of unused holiday leave, then, on July 1, the beginning of the new fiscal year, the Service shall reduce the employee's accumulated holiday leave balance to 40 hours.</text> </paragraph> <paragraph num="(5)"> <text>Part-Time Employees.</text> <paragraph num="(a)"> <text>A part-time employee is entitled to prorated holiday leave based on:</text> <paragraph num="(i)"> <text>A percentage of the total leave hours resulting from the number of holidays listed in §A(1) of this regulation; and</text> </paragraph> <paragraph num="(ii)"> <text>The funded percentage of the part-time position.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The Service may grant holiday leave to a part-time employee on the dates listed in §A(1) of this regulation, and the Service may assign holidays to ensure that the holidays taken by the part-time employee do not exceed or are not fewer than the funded percentage of the part-time position.</text> </paragraph> <paragraph num="(c)"> <text>A part-time employee may not carry into a new fiscal year more than the number of holiday leave hours which equals the funded percentage of the employee's position multiplied by 40 hours. For example, if a part-time employee works a 60 percent schedule, then the employee may not carry into the new fiscal year more than 24 holiday leave hours (0.60 x 40). If, on June 30 of a year, a part-time employee has more than the permitted carryover amount of accumulated unused holiday leave, then, on July 1, the Service shall reduce the employee's accumulated unused holiday leave to the permitted carryover amount.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Repealed.</text> </paragraph> <paragraph num="C."> <text>Personal Leave.</text> <paragraph num="(1)"> <text>A full-time employee who is employed with the Service on January 1, or who is hired by the Service in the months of January through June, is credited with 4 days of personal leave at the beginning of the first full pay period of the calendar year.</text> </paragraph> <paragraph num="(2)"> <text>A full-time employee who is hired by the Service in the months of July or August is entitled to 2 days of personal leave in the calendar year that the employee is hired.</text> </paragraph> <paragraph num="(3)"> <text>A full-time employee who is hired by the Service in the months of September or October is entitled to 1 day of personal leave in the calendar year that the employee is hired.</text> </paragraph> <paragraph num="(4)"> <text>A full-time employee who is hired by the Service in the months of November or December is not entitled to any personal leave in the calendar year that the employee is hired.</text> </paragraph> <paragraph num="(5)"> <text>At the beginning of the first full pay period of a calendar year, a part-time employee is credited with the percentage of 4 days of personal leave equal to the percentage the part-time position is funded. The limitations on personal leave set forth in §C(1)—(4) of this regulation apply to a part-time employee during the calendar year in which a part-time employee is hired.</text> </paragraph> <paragraph num="(6)"> <text>An employee may not accumulate unused personal leave and shall forfeit any unused personal leave at the beginning of the first full pay period of the calendar year and at termination of employment.</text> </paragraph> <paragraph num="(7)"> <text>Except in the case of an emergency, an employee shall obtain permission from the employee's supervisor before using personal leave.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Jury Service Leave. An employee who serves as a member of a jury of a court is permitted to be absent from assigned duties without loss of pay. If, after reporting for jury duty, it is determined that the employee's services are not required and the employee is dismissed from jury duty for the day, then, if time reasonably permits, the employee shall report for work. An employee who is called for jury service shall immediately notify the employee's supervisor. When the public interest requires that the employee not be absent from assigned duties, the supervisor may request the appropriate judge to excuse the employee.</text> </paragraph> <paragraph num="E."> <text>Legal Action Leave. An employee who is summoned under a subpoena to appear in a court action by a party other than the Service, before a grand jury, before an administrative agency, or for a deposition, and is neither a party to the action nor a paid witness, may be absent from assigned duties without loss of pay for not more than 1 day. The employee's absence over 1 day may not be paid by the Service unless the employee uses other authorized leave.</text> </paragraph> <paragraph num="F."> <text>Time Off for Religious Observances. In accordance with State Personnel and Pensions Article, Title 9, Subtitle 8, Annotated Code of Maryland, and COMAR 17.04.11.16, the Service shall permit an employee to be absent in order for the employee to participate in religious observances. The Board may adopt written policies that provide for exceptions for the efficient operation of the Service.</text> </paragraph> <paragraph num="G."> <text>Military. An employee who is a member of the organized militia or the Army, Navy, Air Force, or Marine Reserve shall be entitled to a leave of absence for military training for a period of not more than 15 days annually without loss of pay or charge against any leave.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Family Leave."> <text>Family and medical leave may be used in accordance with the provisions of the Family and Medical Leave Act of 1993, as amended, the implementing federal regulations, and the policies and guidelines adopted by the Service.</text> </regulation> <regulation prefix="Regulation" num=".17" heading="Leave Without Pay."> <text>The Service may grant leave without pay to an employee if the:</text> <paragraph num="A."> <text>Employee has no credited paid leave; and</text> </paragraph> <paragraph num="B."> <text>The Service determines that the employee's use of leave without pay will not unreasonably disrupt the Service's activities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Performance Appraisal."> <paragraph num="A."> <text>The Service shall establish an employee performance appraisal process. The employee performance appraisal process may include:</text> <paragraph num="(1)"> <text>Employee performance planning;</text> </paragraph> <paragraph num="(2)"> <text>Interaction between an employee and the employee's supervisor; and</text> </paragraph> <paragraph num="(3)"> <text>Review of an employee's performance.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An employee's supervisor shall conduct a performance appraisal of the employee at least once a year. The supervisor shall evaluate the employee on the basis of the employee's performance during the preceding calendar year.</text> </paragraph> <paragraph num="C."> <text>The employee performance appraisal process shall:</text> <paragraph num="(1)"> <text>Provide a standard method for evaluating employees;</text> </paragraph> <paragraph num="(2)"> <text>Specify performance criteria for types of employment positions;</text> </paragraph> <paragraph num="(3)"> <text>Be related to the Service's annual planning process;</text> </paragraph> <paragraph num="(4)"> <text>Provide at least two types of supervisory review;</text> </paragraph> <paragraph num="(5)"> <text>Allow an employee the opportunity for input in the performance appraisal process; and</text> </paragraph> <paragraph num="(6)"> <text>Allow an employee to request training or other developmental assistance to improve performance for the next evaluation period.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Position Evaluation."> <paragraph num="A."> <text>The Service shall periodically evaluate each employment position. The evaluation may:</text> <paragraph num="(1)"> <text>Document differences among positions;</text> </paragraph> <paragraph num="(2)"> <text>Establish a relative value for the position; and</text> </paragraph> <paragraph num="(3)"> <text>Compare the compensation level of the employment position with the compensation level of a similar employment position in a similar labor market.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A job evaluation shall include analysis of the following criteria:</text> <paragraph num="(1)"> <text>Organizational impact;</text> </paragraph> <paragraph num="(2)"> <text>Supervision exercised;</text> </paragraph> <paragraph num="(3)"> <text>Internal and external contacts;</text> </paragraph> <paragraph num="(4)"> <text>Working conditions; and</text> </paragraph> <paragraph num="(5)"> <text>Work requirements.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Service may use a position evaluation to assign a salary grade to an employment position.</text> </paragraph> <paragraph num="D."> <text>If the Service reduces the salary grade of an employment position to a lower grade in the salary structure, the Service shall provide an incumbent employee in the employment position with a written explanation for the reduction.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Disciplinary Action."> <paragraph num="A."> <text>The Service may take disciplinary action for cause against an employee.</text> </paragraph> <paragraph num="B."> <text>The Board shall adopt a disciplinary policy. The disciplinary policy may provide for a:</text> <paragraph num="(1)"> <text>Warning to an employee;</text> </paragraph> <paragraph num="(2)"> <text>Suspension with or without pay;</text> </paragraph> <paragraph num="(3)"> <text>Demotion; and</text> </paragraph> <paragraph num="(4)"> <text>Termination of employment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Service may terminate for cause an employee's employment with the Service. The Service may not terminate an employee for cause unless the Service first:</text> <paragraph num="(1)"> <text>Notifies the employee in writing of the reasons for the Service's termination; and</text> </paragraph> <paragraph num="(2)"> <text>Provides the employee a reasonable opportunity to respond to the Service's written reasons.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Service may terminate an employee in accordance with the terms and conditions of the employee's employment contract.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Employee Grievances."> <paragraph num="A."> <text>This regulation does not apply to the following:</text> <paragraph num="(1)"> <text>Assistant attorneys general and all other attorneys on the staff of the Attorney General assigned to the Service, including the counsel to the Service;</text> </paragraph> <paragraph num="(2)"> <text>Individuals who are subject to collective bargaining agreements which include other grievance procedures; and</text> </paragraph> <paragraph num="(3)"> <text>Senior management employees of the Service who report directly to the Director.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In this regulation, a grievance is a cause of complaint not otherwise provided for by law, regulation, or policy, arising between an employee and the Service over the interpretation and application of Service's regulations, rules, or policies.</text> </paragraph> <paragraph num="C."> <text>Grievance Policy.</text> <paragraph num="(1)"> <text>The Board shall adopt a grievance policy.</text> </paragraph> <paragraph num="(2)"> <text>The grievance policy:</text> <paragraph num="(a)"> <text>Shall provide for a multi-step process for resolving an employee's grievance;</text> </paragraph> <paragraph num="(b)"> <text>Shall include the opportunity for the employee to submit a written appeal to the Office of Administrative Hearings in accordance with the policy; and</text> </paragraph> <paragraph num="(c)"> <text>Shall provide that grievance hearings and related activities be conducted during regular working hours, without loss of pay to the aggrieved employee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>An employee may present a grievance free from interference, coercion, restraint, discrimination, or reprisal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Promotion."> <text>The Service may promote an employee from one employment position to another. A promotion is not effective until approved by the Director.</text> </regulation> <regulation prefix="Regulation" num=".23" heading="Transfer."> <paragraph num="A."> <text>An employee may request a transfer to a different Service program or geographic area. The Service shall consider the employee's request in filling a position vacancy in the Service program or geographic area for which the employee has requested a transfer.</text> </paragraph> <paragraph num="B."> <text>The Service may require an employee to accept a transfer only in order to:</text> <paragraph num="(1)"> <text>Meet a specific business need;</text> </paragraph> <paragraph num="(2)"> <text>Accomplish a bona fide organizational goal;</text> </paragraph> <paragraph num="(3)"> <text>Provide reasonable accommodation; or</text> </paragraph> <paragraph num="(4)"> <text>Improve operational efficiency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Layoffs."> <text>The Board shall develop fair and equitable procedures for the layoff of employees.</text> </regulation> <regulation prefix="Regulation" num=".25" heading="Training."> <paragraph num="A."> <text>Financial Assistance. The Service may offer financial assistance to an employee for the cost of completing:</text> <paragraph num="(1)"> <text>An advanced education program at a preauthorized, accredited undergraduate or graduate institution;</text> </paragraph> <paragraph num="(2)"> <text>Employee job training or development courses; or</text> </paragraph> <paragraph num="(3)"> <text>A high school equivalency program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Procedure.</text> <paragraph num="(1)"> <text>An employee requesting financial assistance for expenses authorized in §A of this regulation shall:</text> <paragraph num="(a)"> <text>Make a formal request to the Human Resources Division in advance of registration;</text> </paragraph> <paragraph num="(b)"> <text>Provide justification that the courses are relevant to Service needs; and</text> </paragraph> <paragraph num="(c)"> <text>Obtain the approval of the employee's group managing director and the Chief of the Human Resources Division.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Service may grant an employee financial assistance up to 100 percent of tuition costs, registration fees, lab fees, and required books, not exceeding the annual dollar limit allowed by the Internal Revenue Service.</text> </paragraph> <paragraph num="(3)"> <text>The employee shall secure a passing grade of “C” or better for undergraduate college credit courses and a “B” or better for graduate college credit courses. If a letter grade is not awarded, proof of successful completion of the course or certification shall be provided.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An employee who terminates employment with the Service, for any reason, within 1 year of completion of a course for which the Service has provided financial assistance, may be required to reimburse the Service for the entire cost of the assistance provided for a course in which the employee was enrolled during the year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="Employee Organizations."> <paragraph num="A."> <text>The Service shall permit continuation of the rights of an employee organization in existence on July 1, 1993, to represent Service employees and to collect dues through a check-off system.</text> </paragraph> <paragraph num="B."> <text>The Director may allow an employee who belongs to an employee organization to use administrative leave to attend approved organization activities up to 5 days per year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Transfers to Service Human Resources System."> <paragraph num="A."> <text>The Service shall permit an employee who is in the State Personnel Management System to transfer to the Service human resources system without a reduction in the employee's current rate of pay.</text> </paragraph> <paragraph num="B."> <text>Accumulated Leave.</text> <paragraph num="(1)"> <text>The Service shall:</text> <paragraph num="(a)"> <text>Permit an employee who is in the State Personnel Management System and who transfers to the Service human resources system to retain some or all of the employee's accumulated annual leave, sick leave, personal leave, or compensatory leave that is unused as of the date the employee transfers to the Service human resources system; or</text> </paragraph> <paragraph num="(b)"> <text>Fairly compensate the employee for the value of the annual leave, sick leave, personal leave, or compensatory leave which the employee may not retain.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Service shall determine the amount of compensation due an employee under §B(1)(b) of this regulation by multiplying the number of accumulated, unused annual leave, sick leave, personal leave, and compensatory leave days, as converted from hours, by a sum equal to 1/10 of the employee's final biweekly salary as a member of the State Personnel Management System.</text> </paragraph> <paragraph num="(3)"> <text>Leave that is retained by an employee who transfers from the State Personnel Management System to the Service human resources system expires in the same manner as leave expires in COMAR 17.04.11.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-103.1 and 3-127, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 1, 1995 (21:25 Md. R. 2107)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B amended as an emergency provision effective December 31, 1998 (26:2 Md. R. 103); emergency status expired April 30, 1999; amended permanently effective May 3, 1999 (26:9 Md. R. 730)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended as an emergency provision effective December 31, 1999 (27:3 Md. R. 325); emergency status expired April 30, 2000</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective May 13, 2002 (29:9 Md. R. 746)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective February 26, 1996 (23:4 Md. R. 274)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15C amended as an emergency provision effective December 31, 1998 (26:2 Md. R. 103); emergency status expired April 30, 1999; amended permanently effective May 3, 1999 (26:9 Md. R. 730)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective May 26, 2003 (30:10 Md. R. 668)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective July 1, 2021 (48:15 Md. R. 592); amended permanently effective September 6, 2021 (48:18 Md. R. 693)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended as an emergency provision effective July 1, 2021 (48:15 Md. R. 592); amended permanently effective September 6, 2021 (48:18 Md. R. 693)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective October 9, 2006 (33:20 Md. R. 1617)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D adopted effective October 27, 2003 (30:21 Md. R. 1530)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12D amended effective November 14, 2011 (38:23 Md. R. 1422)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12F amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12J adopted effective November 14, 2011 (38:23 Md. R. 1422)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective February 23, 2009 (36:4 Md. R. 354)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15A amended effective February 23, 2009 (36:4 Md. R. 354)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15A, C amended as an emergency provision effective January 1, 2004 (30:22 Md. R. 1575); amended permanently effective February 2, 2004 (31:2 Md. R. 85)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15B repealed effective August 17, 2015 (42:16 Md. R. 1055)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective November 14, 2011 (38:23 Md. R. 1422)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25 repealed and new Regulation .25 adopted effective January 31, 2005 (32:2 Md. R. 147)</annotation> <annotation type="History" subtype="Administrative History">Regulation .25B amended as an emergency provision effective July 1, 2021 (48:15 Md. R. 592); amended permanently effective September 6, 2021 (48:18 Md. R. 693)</annotation> </annotations> </chapter> <chapter num="03" heading="Procurement"> <regulation prefix="Regulation" num=".01" heading="Policy."> <text>It is the policy of the Maryland Environmental Service to procure supplies, services, and construction in a cost-effective manner consistent with the best interests of the Service, its clients, its vendors, and the general public.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>This chapter does not apply to the following:</text> <paragraph num="(1)"> <text>Reimbursement contracts for which user eligibility and cost are set by law or by rules and regulations;</text> </paragraph> <paragraph num="(2)"> <text>Collective bargaining agreements with employee organizations (labor contracts);</text> </paragraph> <paragraph num="(3)"> <text>Acquisition of real property or a permanent or temporary interest in real property;</text> </paragraph> <paragraph num="(4)"> <text>Contracts with a State agency or a municipality;</text> </paragraph> <paragraph num="(5)"> <text>Disposal of real or personal property;</text> </paragraph> <paragraph num="(6)"> <text>Procurement for purposes of direct resale or remanufacture and subsequent resale;</text> </paragraph> <paragraph num="(7)"> <text>Agreements creating employee-employer relationships;</text> </paragraph> <paragraph num="(8)"> <text>A procurement on behalf of a municipality or a client of the Service if the:</text> <paragraph num="(a)"> <text>Service estimates that the procurement will exceed $25,000,</text> </paragraph> <paragraph num="(b)"> <text>Governing body of the municipality or the client requests the Service to waive its procedures, and</text> </paragraph> <paragraph num="(c)"> <text>Board formally assents to waive its procedures; or</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>A contract with or by a corporation established under Natural Resources Article, §3-104(y), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as provided in Regulation .02A of this chapter, this chapter applies to each expenditure of the Service for the acquisition of services, supplies, construction, or professional services.</text> </paragraph> <paragraph num="C."> <text>Exemptions.</text> <paragraph num="(1)"> <text>The Service is generally exempt from State Finance and Procurement Article, Division II, Annotated Code of Maryland, and the regulations adopted under Division II.</text> </paragraph> <paragraph num="(2)"> <text>The Service is not exempt from State Finance and Procurement Article, Title 14, Subtitles 3 and 5, and Titles 16 and 17, Annotated Code of Maryland, or the regulations adopted under those statutes.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Award” means the decision by the Service to execute a contract.</text> </paragraph> <paragraph num="(2)"> <text>“Bid” means a statement of price, terms of sale, and description of supplies, services, or construction offered by a bidder in response to an invitation for bids.</text> </paragraph> <paragraph num="(3)"> <text>“Bidder” means a person who submits a bid to the Service.</text> </paragraph> <paragraph num="(4)"> <text>“Board” means the Board of Directors of the Service.</text> </paragraph> <paragraph num="(5)"> <text>“Construction” means the process of building, altering, repairing, improving, or demolishing any structure, building, or other improvement to real property.</text> </paragraph> <paragraph num="(6)"> <text>“Day” means a calendar day.</text> </paragraph> <paragraph num="(7)"> <text>“Determination” means a written procurement decision made by an official or employee of the Service which is based upon written findings.</text> </paragraph> <paragraph num="(8)"> <text>“Director” means the Executive Director of the Maryland Environmental Service.</text> </paragraph> <paragraph num="(9)"> <text>“Emergency” means a sudden and unexpected occurrence or condition which management of the Service could not reasonably foresee and which requires an action to avoid or to mitigate damage to the environment or to health, safety, or welfare.</text> </paragraph> <paragraph num="(10)"> <text>“Invitation for bids” means a document used for soliciting bids.</text> </paragraph> <paragraph num="(11)"> <text>“Municipality” has the meaning stated in Natural Resources Article, §3-101(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(12)"> <text>“Person” has the meaning stated in Natural Resources Article, §3-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Procurement” includes all functions that pertain to the process of buying, purchasing, or otherwise obtaining supplies, services, or construction, or leasing personal property as lessee.</text> </paragraph> <paragraph num="(14)"> <text>“Procurement officer” means a person authorized by the Director to administer contracts, or to make written determinations and findings with respect to contracts.</text> </paragraph> <paragraph num="(15)"> <text>“Professional services” means services provided by attorneys, engineers, architects, financial advisors, physicians, consultants, land surveyors, appraisers, and accountants.</text> </paragraph> <paragraph num="(16)"> <text>Proposal.</text> <paragraph num="(a)"> <text>“Proposal” means the response by an offeror to a request for proposals to obtain supplies, services, or construction.</text> </paragraph> <paragraph num="(b)"> <text>“Proposal” may include, without limitation, an offeror's price, a description of technical expertise, work experience, and other information requested in the solicitation.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Request for proposals” means a document used for soliciting proposals from offerors.</text> </paragraph> <paragraph num="(18)"> <text>“Respondent” means a bidder or an offeror.</text> </paragraph> <paragraph num="(19)"> <text>“Responsible” means a person who has the capability in all respects to dutifully perform fully the contract requirements, and the integrity and reliability that ensures good faith performance.</text> </paragraph> <paragraph num="(20)"> <text>“Responsive” means a bid or offer submitted in response to a solicitation that conforms in all material respects to the requirements contained in the solicitation.</text> </paragraph> <paragraph num="(21)"> <text>“Services” means the rendering of time, effort, or work, rather than the furnishing of a specific physical product other than reports incidental to the required performance.</text> </paragraph> <paragraph num="(22)"> <text>“Sole source procurement” means a procurement for a requirement that is available from only a single vendor.</text> </paragraph> <paragraph num="(23)"> <text>“Solicitation” means an invitation for bids, a request for proposals, or any other method or instrument used to communicate to potential bidders or offerors the Service's procurement needs.</text> </paragraph> <paragraph num="(24)"> <text>“Service” means the Maryland Environmental Service.</text> </paragraph> <paragraph num="(25)"> <text>“Supplies” means items of purchase which may include office goods, printing, building materials, equipment, parts, motor vehicles, tools, and equipment leases.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Contract Authority."> <paragraph num="A."> <text>Contract Approval.</text> <paragraph num="(1)"> <text>The Director shall approve contracts of the Service.</text> </paragraph> <paragraph num="(2)"> <text>The Director may delegate authority to approve a contract of the Service to a Service employee.</text> </paragraph> <paragraph num="(3)"> <text>A contract is approved if:</text> <paragraph num="(a)"> <text>The Director signs the contract or otherwise expresses the Director's approval of the contract in writing;</text> </paragraph> <paragraph num="(b)"> <text>An employee of the Service described in §A(2) of this regulation signs the contract or otherwise expresses that employee's approval in writing; or</text> </paragraph> <paragraph num="(c)"> <text>The Board approves the contract as provided in §C of this regulation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A Service employee who has not been delegated approval authority by the Director may not approve a contract. Except as provided in this regulation, a contract is not enforceable against the Service if the contract has not been approved by the Director or a Service employee who has been delegated approval authority by the Director.</text> </paragraph> <paragraph num="(5)"> <text>Except as provided in Regulation .06D(1) of this chapter:</text> <paragraph num="(a)"> <text>The procurement contracts of the Service shall be in writing; and</text> </paragraph> <paragraph num="(b)"> <text>An oral contract purporting to bind the Service is not enforceable against the Service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Director shall report to the Board any contract awarded by the Service that is in an amount exceeding $25,000.</text> </paragraph> <paragraph num="C."> <text>Procurement Approval.</text> <paragraph num="(1)"> <text>If the Service estimates that a procurement will result in the award of a contract that exceeds $200,000, the Service may obtain the approval of the Board for contract award before distributing a solicitation notice for the procurement.</text> </paragraph> <paragraph num="(2)"> <text>The Service shall obtain the approval of the Board before awarding a contract for more than $200,000 if the:</text> <paragraph num="(a)"> <text>Procurement was not approved as provided in §C(1) of this regulation; or</text> </paragraph> <paragraph num="(b)"> <text>Amount of the contract award exceeds the Service's estimate of the procurement by an amount specified by the Board.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Determinations."> <text>Determinations required by these regulations shall be in writing, signed by the procurement officer, and retained by the Service for not less than 3 years from the date of the determination.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Source Selection."> <paragraph num="A."> <text>The Service may use the following procurement methods:</text> <paragraph num="(1)"> <text>Competitive sealed bidding;</text> </paragraph> <paragraph num="(2)"> <text>Competitive proposals;</text> </paragraph> <paragraph num="(3)"> <text>Negotiated award after unsatisfactory competitive sealed bidding;</text> </paragraph> <paragraph num="(4)"> <text>Intergovernmental cooperative purchasing;</text> </paragraph> <paragraph num="(5)"> <text>Sole source procurement; and</text> </paragraph> <paragraph num="(6)"> <text>Emergency source selection.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prequalification.</text> <paragraph num="(1)"> <text>The Service may require that respondents be prequalified before receipt of bids or proposals.</text> </paragraph> <paragraph num="(2)"> <text>If the Service determines that respondents shall be prequalified, then the Service shall establish reasonable prequalification criteria. The criteria shall be clearly set forth in a request for qualifications.</text> </paragraph> <paragraph num="(3)"> <text>The Service may require that architectural or engineering respondents submit U.S. Government Standard Form 330, Architect/Engineer and Related Services Questionnaire (SF-330), in order to be prequalified.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Solicitation.</text> <paragraph num="(1)"> <text>The Service shall distribute solicitation notices in a reasonable manner sufficient to provide general notice to potential respondents. The Service shall issue solicitation notices in a reasonable time in advance of the date responses are due. The Service may charge reasonable fees for the solicitation documents.</text> </paragraph> <paragraph num="(2)"> <text>For a procurement estimated to exceed $25,000, the Service shall publish notice of the solicitation in an appropriate publication at least 10 days before the date bids or proposals are due.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Small Procurement.</text> <paragraph num="(1)"> <text>For a procurement estimated to be equal to or less than $5,000, the Service may solicit any number of bids or offers orally, and the Service may enter into either written or oral contracts.</text> </paragraph> <paragraph num="(2)"> <text>For a procurement estimated to exceed $5,000 and be less than or equal to $15,000, the Service shall, when practical, obtain two or more verbal bids or offers.</text> </paragraph> <paragraph num="(3)"> <text>For a procurement estimated to exceed $15,000 and be less than or equal to $25,000, the Service shall, when practical, obtain two or more written bids or offers.</text> </paragraph> <paragraph num="(4)"> <text>In determining whether it is practical to obtain multiple bids or offers the Service may consider factors such as availability of vendors, dollar value of the procurement, cost of administering the procurement, and time available to make the procurement including delivery time.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procurement by Competitive Sealed Bidding."> <paragraph num="A."> <text>Applicability. This regulation applies to any procurement of the Service except as provided in Regulations .06D and .08 — .11 of this chapter.</text> </paragraph> <paragraph num="B."> <text>Invitations for Bids. The Service shall initiate a procurement by competitive sealed bidding by issuing an invitation for bids. The invitation for bids shall include a written bid form based on the specifications, a statement that the bidder agrees to all terms and conditions, provisions and addenda, if any, to the invitation for bids, the time and place of bid opening, and such other information as the Service reasonably considers necessary. The Service may require bidders to submit samples or descriptive literature.</text> </paragraph> <paragraph num="C."> <text>Prebid Conferences. The Service may conduct prebid conferences, and may require that attendance by bidders be mandatory.</text> </paragraph> <paragraph num="D."> <text>Bid Modifications. A bidder may modify or withdraw a bid before bid opening by submitting written notice to the Service. The Service shall return bid security to a bidder if the bidder withdraws its bid in accordance with this regulation.</text> </paragraph> <paragraph num="E."> <text>Late Bids, Late Withdrawals, Late Modifications.</text> <paragraph num="(1)"> <text>The Service may not consider a bid, bid withdrawal, or bid modification received after the bid opening time and date, except that the Service may consider a late bid, late withdrawal, or late modification if the delay was substantially caused by the Service. The bidder is solely responsible for timely receipt of its bid.</text> </paragraph> <paragraph num="(2)"> <text>A late modification of a successful bid that makes the terms more favorable to the Service may be considered and accepted by the Service at any time before contract award.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Receipt and Opening of Bids.</text> <paragraph num="(1)"> <text>The Service shall store bids in a secure location before bid opening.</text> </paragraph> <paragraph num="(2)"> <text>The Service may not disclose the identity of any bidder before bid opening.</text> </paragraph> <paragraph num="(3)"> <text>An employee of the Service shall open bids publicly, read aloud the bids, and record the bids at the date, time, and place set for bid opening in the bid notice. Opened bids shall be available for public inspection to the extent required by General Provisions, Title 4, Subtitle 2, Annotated Code of Maryland. Proprietary information shall be examined by the procurement officer to determine validity of nondisclosure. The Service may not disclose proprietary information submitted by a bidder, except as required by law. Prices, makes, models, catalog numbers, delivery, and payment terms shall be made available for public inspection.</text> </paragraph> <paragraph num="(4)"> <text>After bids have been opened, the Service shall prepare a bid tabulation.</text> </paragraph> <paragraph num="(5)"> <text>A bidder shall acknowledge receipt of bid addenda.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Bid Mistakes.</text> <paragraph num="(1)"> <text>The procurement officer may waive technicalities or minor irregularities in a bid.</text> </paragraph> <paragraph num="(2)"> <text>Before award, a successful bidder may be permitted to withdraw its bid if the bidder presents clear and convincing evidence to the procurement officer that an error has been made, or if an error is obvious from the face of the bid documents.</text> </paragraph> <paragraph num="(3)"> <text>If an error and the intended correction of a bid are evident on the face of the bid documents, the bid shall be corrected and may not be withdrawn.</text> </paragraph> <paragraph num="(4)"> <text>After contract award, a mistake in a bid may only be corrected if the Service determines that it would be unconscionable not to permit correction. The Service may not allow any change in price.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Bid Evaluation and Award. The contract shall be awarded to the responsible bidder submitting the most favorable responsive bid.</text> </paragraph> <paragraph num="I."> <text>Tie Bids. If responsive tie bids are received from two or more responsible bidders, the Service shall award the contract in the same manner as provided in COMAR 21.05.02.14.</text> </paragraph> <paragraph num="J."> <text>Conditional Bids. The Service shall reject as nonresponsive any conditional bid.</text> </paragraph> <paragraph num="K."> <text>Procurement by Negotiated Award After Unsatisfactory Competitive Sealed Bidding.</text> <paragraph num="(1)"> <text>The Service may conduct discussion with bidders if, after bids have been opened:</text> <paragraph num="(a)"> <text>All bids are rejected pursuant to Regulation .12 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>All bids submitted result in bid prices in excess of funds available; or</text> </paragraph> <paragraph num="(c)"> <text>The procurement officer determines that all prices received are unreasonable as to one or more of the Service's requirements and:</text> <paragraph num="(i)"> <text>There are no funds available to permit an award to the responsible bidder submitting the most favorable bid, or</text> </paragraph> <paragraph num="(ii)"> <text>A delay resulting from a resolicitation under revised specifications or quantities under competitive sealed bidding would be disadvantageous or not otherwise in the best interest of the Service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Service may request bidders to submit revised bids. The Service may conduct discussions with bidders after revised bids have been submitted if the procurement officer determines that there is a compelling need for further discussions. If there is more than one bidder, then any discussions concerning revised specifications or quantities shall be conducted with all responsible bidders.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Procurement by Competitive Sealed Proposals."> <paragraph num="A."> <text>Conditions for Use.</text> <paragraph num="(1)"> <text>Competitive sealed proposals is the preferred method for the procurement of professional services.</text> </paragraph> <paragraph num="(2)"> <text>For any other use of competitive sealed proposals as a procurement method, the procurement officer shall make a determination that:</text> <paragraph num="(a)"> <text>Specifications cannot be prepared to support an award on price alone; or</text> </paragraph> <paragraph num="(b)"> <text>Competitive sealed bidding is not practicable, or is not advantageous to the Service.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Request For Proposals.</text> <paragraph num="(1)"> <text>A request for proposals shall include:</text> <paragraph num="(a)"> <text>The date, time, and place for submission of proposals;</text> </paragraph> <paragraph num="(b)"> <text>The proposal requirements, including price proposals;</text> </paragraph> <paragraph num="(c)"> <text>The evaluation factors and relative importance of each; and</text> </paragraph> <paragraph num="(d)"> <text>A statement of work or scope of services required by the Service.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A request for proposals may include other information the Service reasonably determines is necessary.</text> </paragraph> <paragraph num="(3)"> <text>The Service may conduct preproposal conferences, and may require that attendance by offerors be mandatory.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Receipt of Proposals.</text> <paragraph num="(1)"> <text>A proposal, withdrawal, or modification received after the established due date and time at the place designated for receipt of proposals is late and may only be considered in accordance with Regulation .07E of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The Service may not open proposals publicly. The Service may not disclose the contents of a proposal to any person other than a person responsible for evaluating or reviewing the proposal before contract award. Proprietary information shall be examined by the procurement officer to determine validity of nondisclosure. The Service may not disclose proprietary information submitted by an offeror, except as required by law.</text> </paragraph> <paragraph num="(3)"> <text>An offeror shall acknowledge receipt of addenda in its proposal.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Proposal Evaluation.</text> <paragraph num="(1)"> <text>The Service shall evaluate proposals using the evaluation factors set forth in the request for proposals.</text> </paragraph> <paragraph num="(2)"> <text>Technical and price proposals shall be evaluated independently of one another.</text> </paragraph> <paragraph num="(3)"> <text>The Service may establish a technical evaluation committee to evaluate proposals and make a recommendation of contract award to the Service. The technical evaluation committee may include members who are not employees of the Service.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Discussions.</text> <paragraph num="(1)"> <text>The Service may conduct discussions with qualified offerors. A qualified offeror is an offeror that submits a proposal that is determined by the procurement officer to be reasonably susceptible of being selected for contract award.</text> </paragraph> <paragraph num="(2)"> <text>Discussions are held to:</text> <paragraph num="(a)"> <text>Ensure full understanding of the Service's requirements and of the offeror's proposal and ability to perform;</text> </paragraph> <paragraph num="(b)"> <text>Obtain the best price for the Service; and</text> </paragraph> <paragraph num="(c)"> <text>Facilitate arrival at a contract that is most advantageous to the Service, taking into consideration price and other relevant evaluation factors set forth in the request for proposals.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Service shall treat qualified offerors fairly and equally with respect to any opportunity for discussions, negotiations, and clarification of proposals.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Best and Final Offers. The procurement officer may permit qualified offerors to revise their initial proposals by submitting best and final offers. The Service may require more than one series of submissions of best and final offers and discussions. If more than one submission of best and final offers is requested, an offeror's immediate previous offer shall be construed as its best and final offer unless the offeror submits a timely notice of withdrawal or another best and final offer.</text> </paragraph> <paragraph num="G."> <text>Contract Award. Upon completion of all discussions and negotiations, the procurement officer shall make a determination recommending award of the contract to the responsible offeror whose proposal is determined to be the most advantageous to the Service. The procurement officer shall promptly notify all offerors of the recommended contract award.</text> </paragraph> <paragraph num="H."> <text>Debriefing of Unsuccessful Offerors.</text> <paragraph num="(1)"> <text>When a contract is to be awarded on some basis other than price alone, an unsuccessful offeror may be debriefed upon the offeror's written request submitted to the procurement officer within 10 days after the offeror has knowledge that the contract is to be awarded to another offeror. Debriefings shall be conducted by a procurement official familiar with the rationale for the selection decision and contract award.</text> </paragraph> <paragraph num="(2)"> <text>Debriefing shall:</text> <paragraph num="(a)"> <text>Be limited to discussion of the unsuccessful offeror's proposal and may not include any discussion of a competing offeror's proposal;</text> </paragraph> <paragraph num="(b)"> <text>Be factual and consistent with the evaluation of the unsuccessful offeror's proposal; and</text> </paragraph> <paragraph num="(c)"> <text>Provide information on areas in which the unsuccessful offeror's technical proposal was considered weak or deficient.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Debriefing may not include discussion or dissemination of the thoughts, notes, or rankings of individual members of an evaluation committee, but may include a summary of the procurement officer's rationale for the selection decision and recommended contract award.</text> </paragraph> <paragraph num="(4)"> <text>A summary of the debriefing shall be made a part of the contract file.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Sole Source Procurement."> <paragraph num="A."> <text>Conditions for Use.</text> <paragraph num="(1)"> <text>Sole source procurement is not permissible unless a requirement is available from only a single vendor.</text> </paragraph> <paragraph num="(2)"> <text>The determination as to whether a procurement shall be made as a sole source shall be made by the procurement officer, and approved by the Director. The determination and the basis for it shall be in writing. The Service may not award a contract to a sole source before the Director's approval.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidential Services. The Service may enter into a sole source contract to retain the confidential services of a contractor:</text> <paragraph num="(1)"> <text>To advise the Service in connection with threatened or pending litigation; or</text> </paragraph> <paragraph num="(2)"> <text>For appraisal of real property contemplated for acquisition by the Service.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Emergency Procurement."> <paragraph num="A."> <text>Application. The procurement officer, with the prior approval of the Director, may award an emergency contract by other than competitive sealed bidding or competitive sealed proposals under Regulation .07 or .08, respectively, of this chapter.</text> </paragraph> <paragraph num="B."> <text>Scope. An emergency procurement is limited to the procurement of those items necessary to avoid or to mitigate damage to the environment or to health, safety, or welfare.</text> </paragraph> <paragraph num="C."> <text>Competition. The Service shall reasonably attempt to obtain such competition as is consistent with meeting the time requirements of the emergency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Contract Award."> <paragraph num="A."> <text>The procurement officer shall determine whether a respondent is responsible.</text> </paragraph> <paragraph num="B."> <text>The procurement officer may find that a respondent is not a responsible bidder or offeror for:</text> <paragraph num="(1)"> <text>Unreasonable failure to supply information promptly in connection with a determination of responsibility under this chapter; or</text> </paragraph> <paragraph num="(2)"> <text>Any other reason indicating that the respondent does not have the:</text> <paragraph num="(a)"> <text>Capability in all respects to perform fully the contract requirement, or</text> </paragraph> <paragraph num="(b)"> <text>Integrity and reliability that will ensure good faith performance.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The procurement officer shall determine whether a bid or offer is responsive. A responsive bid or offer contains a definite unqualified offer to perform in accordance with the terms of the solicitation.</text> </paragraph> <paragraph num="D."> <text>Publication of Award. The Service shall publish notice of award of a procurement in eMaryland Marketplace if the Service has previously published notice of solicitation for the same procurement in eMaryland Marketplace, as set forth in Regulation.06C(2) of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Cancellation or Rejection of Solicitations."> <paragraph num="A."> <text>The Service may cancel a solicitation in whole or in part before opening of bids or proposals when, in the determination of the procurement officer, cancellation is in the best interest of the Service. Bids or proposals shall be returned to the bidders or offerors together with a notice of cancellation.</text> </paragraph> <paragraph num="B."> <text>After opening of bids or proposals, the Service may reject all proposals or bids in whole or in part when, in the determination of the procurement officer, rejection is in the best interest of the agency. Notice of rejection of all bids or proposals shall be sent to all vendors that submitted bids or proposals.</text> </paragraph> <paragraph num="C."> <text>Determination of the reasons for cancellation or rejection shall be made part of the procurement file.</text> </paragraph> <paragraph num="D."> <text>The Service may reject a bid or proposal in whole or in part when it is in the Service's reasonable best interest to do so. Reasons may include, but are not limited to, the following:</text> <paragraph num="(1)"> <text>The respondent that submitted the bid or proposal is not responsible;</text> </paragraph> <paragraph num="(2)"> <text>The bid or offer is not responsive or the offer is not reasonably susceptible of being selected for award;</text> </paragraph> <paragraph num="(3)"> <text>The price is not reasonable; or</text> </paragraph> <paragraph num="(4)"> <text>The respondent is debarred or otherwise ineligible for award and the period of debarment or ineligibility has not expired.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Opened bids or proposals shall be retained in the procurement file. Unopened bids or proposals shall be returned to the respondent, or otherwise disposed of by the Service.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Disputes."> <text>Disputes arising in the performance of contracts which are not resolved by agreement of the parties shall be decided in writing by an authorized representative of the Director. The decision of the Director's authorized representative is final and conclusive unless, within 10 calendar days of receipt of its copy of the decision, the contractor delivers a written appeal to the Director. In connection with an appeal, the contractor shall be afforded an opportunity to be heard and to offer binding evidence in support of its position. The decision by the Director is binding upon the contractor, and the contractor shall abide by the decision.</text> </regulation> <annotations> <annotation type="Authority">Natural Resources Article, §§3-103 and 3-127, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 19, 1994 (21:25 Md. R. 2108)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02C amended effective March 12, 2018 (45:5 Md. R. 288)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended as an emergency provision effective July 1, 2021 (48:15 Md. R. 592); amended permanently effective September 6, 2021 (48:18 Md. R. 693)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective August 14, 1995 (22:16 Md. R. 1222)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective June 1, 1998 (25:11 Md. R. 822)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended as an emergency provision effective July 1, 2021 (48:15 Md. R. 592); amended permanently effective September 6, 2021 (48:18 Md. R. 693)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective July 17, 2006 (33:14 Md. R. 1162)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D amended effective July 5, 2004 (31:13 Md. R. 995); August 17, 2015 (42:16 Md. R. 1056)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07F amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07K amended effective July 17, 2006 (33:14 Md. R. 1162)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11D adopted effective November 14, 2011 (38:23 Md. R. 1422)</annotation> </annotations> </chapter> <chapter num="04" heading="Public Information Act Requests"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes procedures for submitting requests to the Maryland Environmental Service for the inspection or copying of public records under General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Director” means the Director of the Maryland Environmental Service or the Director's designee.</text> </paragraph> <paragraph num="(4)"> <text>“Official custodian” means the Secretary of the Maryland Environmental Service or the Secretary's designee.</text> </paragraph> <paragraph num="(5)"> <text>“Person in interest” has the meaning stated in General Provisions Article, §4-101(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Public Information Act” means General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Public Information Act Representative” means the person designated by the Service to receive Public Information Act requests and is named on the Service’s website.</text> </paragraph> <paragraph num="(8)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Service” means the Maryland Environmental Service.</text> </paragraph> <paragraph num="(10)"> <text>“Working day” means each day between the hours of 9 a.m. and 4 p.m. except Saturdays, Sundays, and holidays.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Requests for Records."> <paragraph num="A."> <text>A person may request to inspect or copy a public record that is in the custody of the Service and which, under the provisions of the Public Information Act, the Service is required to make available to the public.</text> </paragraph> <paragraph num="B."> <text>A request for public records shall:</text> <paragraph num="(1)"> <text>Be made in writing;</text> </paragraph> <paragraph num="(2)"> <text>Be addressed to the Public Information Act Representative or Official Custodian;</text> </paragraph> <paragraph num="(3)"> <text>Contain the applicant's name, address, and phone number; and</text> </paragraph> <paragraph num="(4)"> <text>Reasonably identify by brief description the specific public record sought.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Response to Request."> <paragraph num="A."> <text>Responses to a request under the Maryland Public Information Act shall be made in accordance with General Provisions Article, §§4-201—4-302, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The custodian shall deny inspection of a public record in accordance with General Provisions Article, §§4-301—4-302, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Notification of Person in Interest."> <text>The custodian, unless otherwise prohibited by law, may notify a person in interest before disclosing the public record. If the custodian denies inspection in accordance with Regulation .04B of this chapter, the custodian may consider the views of the person in interest before granting or denying the request to inspect the public record.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Review of Denial."> <paragraph num="A."> <text>Review of the denial may be submitted to the Office of the Public Access Ombudsman in accordance with General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Disputes concerning fees charged by the Service under Regulation .08 of this chapter may be submitted to the Public Information Act Compliance Board in accordance with General Provisions Article, §4-1A-05, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>An applicant may obtain judicial review in accordance with General Provisions Article, §4-362, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Disclosure Against Public Interest."> <text>If the official custodian believes that inspection of a public record will cause substantial injury to the public interest, the official custodian may deny the Request in accordance with General Provisions Article, §4-343, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Fees."> <paragraph num="A."> <text>Fee Schedule.</text> <paragraph num="(1)"> <text>The Service may charge reasonable fees for services provided under this chapter, as determined from time to time by a resolution of the Service's Board of Directors. As of April 1, 1996, the fees to be charged under this chapter are listed in this section.</text> </paragraph> <paragraph num="(2)"> <text>Copies. The fee for each copy is 25 cents per page for every page in excess of 25 pages if reproduction can be made by a photocopying machine within the Service's headquarters. There is no charge for copying the first 25 total pages. When the public record is not amenable to photocopying (for example, punch cards, magnetic tapes, large documents, and microfilm), the fee for reproducing the public record shall be based on the actual cost of reproduction. If the public records total more than 25 pages, the Service shall charge the applicant for the actual cost of labor expenses incurred by the Service for each employee photocopying the public records, including overhead costs at the Service's standard overhead rate.</text> </paragraph> <paragraph num="(3)"> <text>Certification of Copies. The Service shall charge a fee of $5 for each public record certified as a true copy, plus 50 cents per page.</text> </paragraph> <paragraph num="(4)"> <text>Search, Review, and Record Preparation Fees. The Service shall charge the applicant for the actual cost of labor expenses, including overhead costs at the Service’s standard overhead rate, incurred by the Service for searching or preparing public records for inspection or copying, including staff and attorney review time. The Service may not charge for any labor expenses for the first 2 hours of official or employee time needed to respond to a request for public records or to search or prepare the public records.</text> </paragraph> <paragraph num="(5)"> <text>Exception to Fee. The Service may not charge a fee under this regulation if the total amount of the fee due under the request is $10 or less.</text> </paragraph> <paragraph num="(6)"> <text>Returned Check Fee. The Service may charge a fee of not less than $25 for a dishonored check returned to the Service.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notwithstanding §A of this regulation, if the fees for copies, printouts, photographs, or certified copies of a public record are specifically prescribed by law other than the Public Information Act or this regulation, the specific fee contained in the law shall determine the amount charged for that record.</text> </paragraph> <paragraph num="C."> <text>If the custodian is unable to copy a public record within the Service, the custodian shall make arrangements for the reproduction of the public record at public or private facilities outside the Service. The custodian shall either collect from the applicant a fee which is sufficient to pay the actual cost of reproduction or direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> <paragraph num="D."> <text>Before searching, assembling, and copying a public record, the custodian shall estimate the cost of copying and obtain the agreement of the applicant that the cost for search, preparation, review, and assembly shall be paid. The custodian may demand prepayment of an estimated fee before copying a public record. If the custodian requires prepayment, then the time limitations in this chapter may not begin until the applicant makes full payment.</text> </paragraph> <paragraph num="E."> <text>If the applicant requests that copies be mailed or delivered to the applicant, the Director may charge the applicant for the cost of postage or delivery to the applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Waiver or Reduction of Fees."> <text>The Official Custodian may waive or reduce any fee charged under this chapter in accordance with General Provisions Article, §4-206(e), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="Time and Location of Inspection."> <text>An applicant may inspect a public record, which the custodian has determined the applicant is entitled to inspect, during a working day. Unless the applicant and the custodian otherwise agree, the public record shall be inspected at the Service's headquarters.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §4-201; Natural Resources Article, §3-127; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 4, 1996 (23:22 Md. R. 1497)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A, D amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 8, 2018 (45:20 Md. R. 919)</annotation> </annotations> </chapter> </subtitle> <subtitle num="28" heading="Canal Place Preservation and Development Authority"> <chapter num="01" heading="Open Meetings"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter contains procedures regarding the conduct of persons attending open meetings, and the recording and broadcasting of open meetings.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Open session” means any meeting of the Authority required to be open to the public by State Government Article, §§10-501—10-512, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public Attendance."> <paragraph num="A."> <text>At any open session of the Authority, the general public is invited to attend and observe.</text> </paragraph> <paragraph num="B."> <text>Except in instances when the Authority expressly invites public testimony, questions, comments, or other forms of public participation, or when public participation is otherwise authorized by law, a member of the public attending an open session may not participate in the session.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Disruptive Conduct."> <paragraph num="A."> <text>An individual attending an open session of the Authority may not engage in any conduct, including visual demonstrations such as the waving of placards, signs, or banners, that disrupts the session or that interferes with the right of members of the public to attend and observe the session.</text> </paragraph> <paragraph num="B."> <text>The presiding officer may:</text> <paragraph num="(1)"> <text>Order an individual who engages in conduct prohibited by §A of this regulation or who violates any other regulation concerning the conduct of the open session to be removed from the session;</text> </paragraph> <paragraph num="(2)"> <text>Request police or other assistance to restore order; and</text> </paragraph> <paragraph num="(3)"> <text>Recess the session while order is restored.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Recording, Photographing, and Broadcasting of Open Sessions."> <paragraph num="A."> <text>A member of the public, including any representative of the news media, may record discussions of the Authority at an open session by means of a tape recorder or other recording device if the device does not create noise that disturbs members of the Authority or others attending the sessions.</text> </paragraph> <paragraph num="B."> <text>A member of the public, including any representative of the news media, may photograph or videotape the proceedings of the Authority at an open session if the camera:</text> <paragraph num="(1)"> <text>Is operated without excessively bright artificial light that disturbs members of the Authority or others attending the session; and</text> </paragraph> <paragraph num="(2)"> <text>Does not create noise that disturbs members of the Authority or others attending the session.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A representative of the news media may broadcast or televise the proceedings of the Authority at an open session if the equipment used:</text> <paragraph num="(1)"> <text>Is operated without excessively bright artificial light that disturbs members of the Authority or others attending the session; and</text> </paragraph> <paragraph num="(2)"> <text>Does not create noise that disturbs members of the Authority or others attending the session.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The presiding officer may restrict the movement of an individual who is using a recording device, camera, or broadcasting or televising equipment if the presiding officer considers this restriction necessary to maintain the orderly conduct of the session.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recordings Not Part of Record."> <text>A recording of an open session made by a member of the public, or any transcript derived from the recording, is not considered a part of the record of any proceeding of the Authority.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-1008(4); State Government Article, §10-507; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1963)</annotation> </annotations> </chapter> <chapter num="02" heading="Public Information Requests" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1963)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.14 repealed effective November 6, 2017 (44:22 Md. R. 1038)</annotation> </annotations> </chapter> <chapter num="03" heading="Petition for Adoption of Regulations"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations are promulgated pursuant to State Government Article, §10-122, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Canal Place Preservation and Development Authority for the adoption of regulations.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Executive Director” means the Executive Director of the Canal Place Preservation and Development Authority or the Executive Director's designee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May File."> <text>Any interested person may file a petition with the Executive Director requesting the promulgation, amendment, or repeal of a regulation.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Form."> <text>The petition shall:</text> <paragraph num="A."> <text>Be in writing;</text> </paragraph> <paragraph num="B."> <text>Contain a clear and concise statement of the regulation, amendment, or repeal which is sought;</text> </paragraph> <paragraph num="C."> <text>Contain a statement of reasons in support of the proposed regulation change; and</text> </paragraph> <paragraph num="D."> <text>Contain the name, address, and telephone number of the petitioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Petition Filed."> <text>The petition shall be filed with the Executive Director for the Executive Director's consideration and disposition. The time period for response to a petition begins when the petition is received by the Executive Director.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Disposition."> <text>Within 60 days after receipt of the petition, the Executive Director shall either deny the petition in writing, stating the reasons for the denial, or initiate the procedures for adoption of the regulation as submitted or with appropriate modifications as determined by the Executive Director to be in the best interest of the Authority.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Agency File."> <text>The Authority shall maintain a file of all petitions submitted and the responses. This file shall be available for public inspection to the extent permitted by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-1008(4); State Government Article, §10-122; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1964)</annotation> </annotations> </chapter> <chapter num="04" heading="Petition for Declaratory Rulings"> <regulation prefix="Regulation" num=".01" heading="General."> <text>These regulations are promulgated under State Government Article, §10-304, Annotated Code of Maryland, for the purpose of establishing procedures by which the public may petition the Canal Place Preservation and Development Authority for a declaratory ruling.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Executive Director” means the Executive Director of the Canal Place Preservation and Development Authority or the Executive Director's designee.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May File."> <text>Any interested person may file a petition for declaratory ruling with respect to the manner in which the Authority would apply a regulation or order of the Authority, or a statute that the Authority enforces, to a person or property on the facts set forth in the petition.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Where to File."> <text>A petition shall be filed with the Executive Director for the Executive Director's consideration and disposition.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Form."> <text>The petition shall:</text> <paragraph num="A."> <text>Be in writing;</text> </paragraph> <paragraph num="B."> <text>Contain a detailed statement of the facts on which the petition is based;</text> </paragraph> <paragraph num="C."> <text>Fully set forth the regulations or statutes involved;</text> </paragraph> <paragraph num="D."> <text>Pose the question of whether, and in what manner, the regulations or statutes apply to the petitioner under the facts contained in the petition;</text> </paragraph> <paragraph num="E."> <text>Contain the name, address, and telephone number of the petitioner; and</text> </paragraph> <paragraph num="F."> <text>Contain a statement by the petitioner, under oath, that the facts contained in the petition are true.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Consideration and Disposition."> <text>The Executive Director shall consider the petition and may issue the declaratory ruling requested. The Executive Director may require argument on the petition. A declaratory ruling is binding upon the Authority and the petitioner, to the extent permitted by law, on the facts alleged. Any declaratory ruling issued shall be in writing and shall state the reasons for the decision. A copy of the declaratory ruling shall be delivered to the petitioner.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Authority File."> <text>The Authority shall maintain a file of all petitions submitted and declaratory rulings issued. This file shall be available for public inspection to the extent permitted by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-1008(4); State Government Article, §10-304; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1964)</annotation> </annotations> </chapter> <chapter num="07" heading="State Economic Growth, Resource Protection, and Planning Policy Project Review"> <annotations> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1964)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed effective November 6, 2017 (44:22 Md. R. 1038)</annotation> </annotations> </chapter> <chapter num="08" heading="Procurement"> <regulation prefix="Regulation" num=".01" heading="Policy."> <text>It is the policy of the Canal Place Preservation and Development Authority to procure supplies, services, and construction in a cost-effective manner consistent with the best interests of the Authority, its vendors, and the general public.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope and General Provisions."> <paragraph num="A."> <text>This chapter does not apply to:</text> <paragraph num="(1)"> <text>Reimbursement contracts for which user eligibility and cost are set by law or by rules and regulations;</text> </paragraph> <paragraph num="(2)"> <text>Collective bargaining agreements with employee organizations (labor contracts);</text> </paragraph> <paragraph num="(3)"> <text>Acquisition of real property or a permanent or temporary interest in real property;</text> </paragraph> <paragraph num="(4)"> <text>Procurements with an agency or unit of the federal government, a State agency or unit, an agency or unit of a local jurisdiction, or an agency or unit of the government of another state;</text> </paragraph> <paragraph num="(5)"> <text>Disposal of real or personal property;</text> </paragraph> <paragraph num="(6)"> <text>Procurement for purposes of direct resale or remanufacture and subsequent resale;</text> </paragraph> <paragraph num="(7)"> <text>Agreements creating employee-employer relationships;</text> </paragraph> <paragraph num="(8)"> <text>An agreement entered into by the Authority to lease real property as lessor; or</text> </paragraph> <paragraph num="(9)"> <text>A procurement made on behalf of a local jurisdiction if the:</text> <paragraph num="(a)"> <text>Authority estimates that the procurement will exceed $35,000;</text> </paragraph> <paragraph num="(b)"> <text>Governing body of the local jurisdiction requests the Authority to waive its procedures; and</text> </paragraph> <paragraph num="(c)"> <text>Authority formally assents to waive the Authority's procedures.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Except as provided in §A of this regulation, this chapter applies to each expenditure of the Authority for the acquisition of supplies, services, or construction.</text> </paragraph> <paragraph num="C."> <text>Exemptions.</text> <paragraph num="(1)"> <text>The Authority is generally exempt from the provisions of, and the regulation adopted under, State Finance and Procurement Article, Division II, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The Authority is not exempt from the Minority Business Participation provisions of State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, or the regulations adopted under those provisions.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Authority to Act.</text> <paragraph num="(1)"> <text>Unless otherwise specified in the regulations of this chapter, the Membership of the Authority, the Executive Director, or the Executive Director’s designee may undertake any action, determination, decision, or other exercise of authority that is directed, permitted, or contemplated by the regulations of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The Executive Director may delegate to an employee of the Authority any authority that the regulations of this chapter grant to the Executive Director.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Procurement Records.</text> <paragraph num="(1)"> <text>The Authority shall maintain a record for each procurement that includes all solicitations, bids or proposals, determinations, contracts, debriefing records, and other materials pertinent to the procurement.</text> </paragraph> <paragraph num="(2)"> <text>The Authority’s record of a procurement shall be available for public inspection as provided for and limited by the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>The Authority may not disclose proprietary information submitted to the Authority in response to a solicitation, except as required by law.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>"Authority" means the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(2)"> <text>“Award” means the decision by the Authority to execute a procurement contract.</text> </paragraph> <paragraph num="(3)"> <text>“Bid” means a statement of price, terms of sale, and description of supplies, services, or construction offered by a bidder in response to an invitation for bids.</text> </paragraph> <paragraph num="(4)"> <text>“Bidder” means a person who submits a bid to the Authority.</text> </paragraph> <paragraph num="(5)"> <text>“Construction” means the process of building, altering, repairing, improving, or demolishing any structure, building, or other improvement to real property.</text> </paragraph> <paragraph num="(6)"> <text>“County” means any one of the 23 counties of the State and the Mayor and City Council of Baltimore, and any of its agencies or instrumentalities.</text> </paragraph> <paragraph num="(7)"> <text>“Day” means a calendar day.</text> </paragraph> <paragraph num="(8)"> <text>“Determination” means a written procurement decision made by the Authority.</text> </paragraph> <paragraph num="(9)"> <text>“Executive Director” means the Executive Director of the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(10)"> <text>“Invitation for bids” means a document used to solicit bids.</text> </paragraph> <paragraph num="(11)"> <text>“Local jurisdiction” means a county or municipality.</text> </paragraph> <paragraph num="(12)"> <text>“Membership of the Authority” means the Membership of the Canal Place Preservation and Development Authority, as composed in accordance with Financial Institutions Article, §13-1005(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Municipality” means a municipal corporation in the State subject to the provisions of Article XI-E of the Maryland Constitution, and any of its agencies or instrumentalities.</text> </paragraph> <paragraph num="(14)"> <text>“Offeror” means a person who submits a proposal to the Authority.</text> </paragraph> <paragraph num="(15)"> <text>“Person” means an individual, receiver, trustee, guardian, personal representative, corporation, partnership, association, unit of government, or any other entity.</text> </paragraph> <paragraph num="(16)"> <text>“Procurement” includes all functions that pertain to the process of purchasing or otherwise obtaining supplies, services, or construction.</text> </paragraph> <paragraph num="(17)"> <text>Proposal.</text> <paragraph num="(a)"> <text>“Proposal” means the response by an offeror to a request for proposals.</text> </paragraph> <paragraph num="(b)"> <text>“Proposal” may include, without limitation, an offeror's price, a description of technical expertise or work experience, and other information requested in the solicitation.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Request for proposals” means a document used to solicit proposals.</text> </paragraph> <paragraph num="(19)"> <text>“Responsible” means capable in all respects of dutifully performing all requirements contained in a solicitation and having the integrity and reliability to assure good faith performance of the procurement contract.</text> </paragraph> <paragraph num="(20)"> <text>“Responsive” means conforming in all material respects to the requirements contained in a solicitation.</text> </paragraph> <paragraph num="(21)"> <text>“Services” means the rendering of time, effort, or work, rather than the furnishing of a specific physical product other than reports incidental to the required performance, such as professional services provided by architects, engineers, land surveyors, appraisers, accountants, financial advisors, attorneys, or other professional consultants.</text> </paragraph> <paragraph num="(22)"> <text>“Solicitation” means an invitation for bids, a request for proposals, or any other method or instrument used to communicate to potential bidders or offerors a procurement need of the Authority.</text> </paragraph> <paragraph num="(23)"> <text>“Supplies” means tangible personal property, printing, or insurance, and related services.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Contract Approval Authority."> <paragraph num="A."> <text>Contract Approval. The authority to approve a procurement contract for the Authority, subject to the requirement of §B of this regulation, rests with:</text> <paragraph num="(1)"> <text>The Executive Director for a procurement contract that is less than or equal to $50,000; and</text> </paragraph> <paragraph num="(2)"> <text>The Membership of the Authority for a procurement contract that exceeds $50,000.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Authority estimates that a solicitation will result in the award of a procurement contract that exceeds $50,000, the Membership of the Authority shall approve the solicitation for the procurement before issuance of the solicitation.</text> </paragraph> <paragraph num="C."> <text>A procurement contract is not effective or enforceable against the Authority unless the procurement contract is:</text> <paragraph num="(1)"> <text>Approved as authorized under §A of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>In writing, except as provided in Regulation .06F of this chapter regarding small procurements; and</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director signs the procurement contract or otherwise expresses in writing the Authority’s approval of the procurement contract.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Executive Director shall report to the Membership of the Authority on any procurement contract approved by the Executive Director as authorized under §A(1) of this regulation that is in an amount exceeding $25,000.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Determinations."> <text>A determination required by this chapter shall be in writing and shall be retained by the Authority for not less than 3 years from the date of the determination.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Methods of Procurement, Source Selection, and Solicitation."> <paragraph num="A."> <text>Authorized Methods of Procurement. All procurement contracts entered into by the Authority shall be awarded by one of the following procurement methods:</text> <paragraph num="(1)"> <text>Competitive sealed bidding in accordance with Regulation .07 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Competitive sealed proposals in accordance with Regulation .08 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Negotiated award after unsatisfactory competitive sealed bidding in accordance with Regulation .07I of this chapter;</text> </paragraph> <paragraph num="(4)"> <text>Sole source procurement in accordance with Regulation .09 of this chapter;</text> </paragraph> <paragraph num="(5)"> <text>Small procurement in accordance with §F of this regulation; or</text> </paragraph> <paragraph num="(6)"> <text>Emergency procurement in accordance with Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Source Selection.</text> <paragraph num="(1)"> <text>The Authority may use small procurement for a procurement estimated by the Authority to be less than or equal to $25,000.</text> </paragraph> <paragraph num="(2)"> <text>Competitive sealed bidding shall be the preferred method for any procurement estimated by the Authority to exceed $25,000.</text> </paragraph> <paragraph num="(3)"> <text>For a procurement estimated by the Authority to exceed $25,000, the Authority may use:</text> <paragraph num="(a)"> <text>Competitive sealed proposals if the Authority determines that:</text> <paragraph num="(i)"> <text>The procurement does not permit an award based solely on most favorable bid price or most favorable evaluated bid price;</text> </paragraph> <paragraph num="(ii)"> <text>Competitive sealed bidding is not practicable; or</text> </paragraph> <paragraph num="(iii)"> <text>Competitive sealed bidding is not advantageous to the Authority;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Negotiated award after unsatisfactory competitive sealed bidding as authorized under Regulation .07I of this chapter;</text> </paragraph> <paragraph num="(c)"> <text>Sole source selection as authorized under Regulation .09 of this chapter; or</text> </paragraph> <paragraph num="(d)"> <text>Emergency procurement as authorized under Regulation .10 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Prequalification.</text> <paragraph num="(1)"> <text>The Authority may require that bidders or offerors be prequalified before submitting bids or proposals.</text> </paragraph> <paragraph num="(2)"> <text>If the Authority determines that bidders or offerors shall be prequalified, then the Authority shall establish reasonable prequalification criteria, which shall be clearly set forth in a request for qualifications.</text> </paragraph> <paragraph num="(3)"> <text>The Authority may require that architectural or engineering bidders or offerors submit U.S. Government Standard Form 254, Architect/Engineer and Related Services Questionnaire (SF-254), in order to be prequalified.</text> </paragraph> </paragraph> <paragraph num="D."> <text>List of Potential Bidders or Offerors. The Authority is not required to maintain a list of potential bidders or offerors.</text> </paragraph> <paragraph num="E."> <text>Notice of Solicitation.</text> <paragraph num="(1)"> <text>For a procurement estimated by the Authority to exceed $50,000, the Authority shall publish a notice of solicitation:</text> <paragraph num="(a)"> <text>At least 10 days before the due date identified in the solicitation for receipt of bids or proposals;</text> </paragraph> <paragraph num="(b)"> <text>On the Authority’s website; and</text> </paragraph> <paragraph num="(c)"> <text>In an appropriate publication.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a procurement estimated by the Authority to exceed $25,000, but to be less than or equal to $50,000, the Authority shall publish a notice of solicitation:</text> <paragraph num="(a)"> <text>At least 10 days before the due date identified in the solicitation for receipt of bids or proposals;</text> </paragraph> <paragraph num="(b)"> <text>On the Authority’s website; and</text> </paragraph> <paragraph num="(c)"> <text>If determined necessary by the Authority, by any other reasonable method taking into consideration the nature of the procurement.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a procurement estimated by the Authority to exceed $10,000, but to be less than or equal to $25,000, the Authority shall issue a notice of solicitation:</text> <paragraph num="(a)"> <text>In a manner reasonably sufficient to provide general notice to potential bidders or offerors; and</text> </paragraph> <paragraph num="(b)"> <text>Reasonably in advance of the due date identified in the solicitation for responses to the solicitation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Small Procurement.</text> <paragraph num="(1)"> <text>For a procurement estimated by the Authority to be equal to or less than $10,000, the Authority may:</text> <paragraph num="(a)"> <text>Solicit oral bids from any number of bidders; and</text> </paragraph> <paragraph num="(b)"> <text>Enter into either a written or an oral procurement contract.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a procurement estimated by the Authority to exceed $10,000, but to be less than or equal to $25,000, the Authority shall:</text> <paragraph num="(a)"> <text>Solicit bids as required by §E(3) of this regulation; and</text> </paragraph> <paragraph num="(b)"> <text>Enter into a written procurement contract.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Procurement by Competitive Sealed Bidding."> <paragraph num="A."> <text>Invitations for Bids. The Authority shall initiate a procurement by competitive sealed bidding by issuing an invitation for bids that includes:</text> <paragraph num="(1)"> <text>The procurement specifications;</text> </paragraph> <paragraph num="(2)"> <text>A bid form;</text> </paragraph> <paragraph num="(3)"> <text>A statement to be executed by the bidder that the bidder agrees to all terms, conditions, and provisions of, and any amendments to, the invitation for bids;</text> </paragraph> <paragraph num="(4)"> <text>Instructions on bid submission requirements, including the due date and address for bid submission;</text> </paragraph> <paragraph num="(5)"> <text>The time and place of bid opening; and</text> </paragraph> <paragraph num="(6)"> <text>Any other instructions or information requirements as the Authority considers necessary.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Prebid Conferences. The Authority may conduct prebid conferences and require the attendance of bidders.</text> </paragraph> <paragraph num="C."> <text>Amendments to Initiations for Bids.</text> <paragraph num="(1)"> <text>The Authority may amend an invitation for bids by:</text> <paragraph num="(a)"> <text>Publishing the amendment in the same manner that the Authority published the invitation for bids; and</text> </paragraph> <paragraph num="(b)"> <text>Delivering the amendment to all prospective bidders known by the Authority to have either received the invitation for bids or expressed an interest in the invitation for bids.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A prospective bidder who receives delivery of an amendment from the Authority shall acknowledge receipt of the amendment.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Bid Modifications and Withdrawal.</text> <paragraph num="(1)"> <text>A bidder may modify or withdraw a bid before bid opening by submitting written notice of modification or withdrawal to the Authority.</text> </paragraph> <paragraph num="(2)"> <text>The Authority shall return any bid security to a bidder if the bidder withdraws the bidder’s bid in accordance with this section.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Late Bids, Late Withdrawals, Late Modifications.</text> <paragraph num="(1)"> <text>The Authority may not consider a bid, bid withdrawal, or bid modification, received by the Authority after bid opening, except that the Authority may consider a late bid, late withdrawal, or late modification, if the delay was substantially caused by the Authority.</text> </paragraph> <paragraph num="(2)"> <text>A late modification of a successful bid that makes the terms more favorable to the Authority may be considered and accepted by the Authority at any time before contract award.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Receipt and Opening of Bids.</text> <paragraph num="(1)"> <text>The Authority shall store bids and any bid modifications in a secure location before bid opening.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may not disclose the identity of any bidder before bid opening.</text> </paragraph> <paragraph num="(3)"> <text>Bid opening shall occur at the date, time, and place identified in the invitation for bids.</text> </paragraph> <paragraph num="(4)"> <text>At bid opening, an employee of the Authority shall open bids publicly, read the bids aloud, record the bids, and prepare a bid tabulation.</text> </paragraph> <paragraph num="(5)"> <text>The Authority shall reject as nonresponsive any conditional bid.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Bid Mistakes.</text> <paragraph num="(1)"> <text>The Authority may waive minor or technical irregularities in a bid if waiver is in the Authority’s best interests.</text> </paragraph> <paragraph num="(2)"> <text>Before award, a successful bidder may be permitted to withdraw its bid if the bidder presents clear and convincing evidence to the Authority that:</text> <paragraph num="(a)"> <text>An error has been made in the bid; and</text> </paragraph> <paragraph num="(b)"> <text>The error is such that, had the error not been made, the bid as submitted would not have included the bid price or other material term.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If an error, and the intended correction of the error, are evident on the face of the bid documents, the bid shall be corrected and may not be withdrawn.</text> </paragraph> <paragraph num="(4)"> <text>After award:</text> <paragraph num="(a)"> <text>A mistake in a bid may only be corrected if the Authority determines that it would be unconscionable not to permit correction; and</text> </paragraph> <paragraph num="(b)"> <text>The Authority may not allow any change in price.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Bid Evaluation and Award.</text> <paragraph num="(1)"> <text>The Authority shall award the procurement contract to the responsible bidder who submits the most favorable bid price or most favorable evaluated bid price.</text> </paragraph> <paragraph num="(2)"> <text>If responsive tie bids are received from two or more responsible bidders, the Authority shall award the procurement contract in the same manner as provided in COMAR 21.05.02.14.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Procurement by Negotiated Award After Unsatisfactory Competitive Sealed Bidding.</text> <paragraph num="(1)"> <text>The Authority may conduct discussions with bidders if, after bids have been opened:</text> <paragraph num="(a)"> <text>All bids are rejected under Regulation .12 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>All bids included a bid price in excess of funds available; or</text> </paragraph> <paragraph num="(c)"> <text>The Authority determines that all bid prices received are unreasonable as to one or more of the Authority’s requirements and:</text> <paragraph num="(i)"> <text>There are no funds available to permit an award to the responsible bidder submitting the most favorable bid; or</text> </paragraph> <paragraph num="(ii)"> <text>A delay resulting from a resolicitation of specifications or quantities under competitive sealed bidding would be disadvantageous to, or not otherwise in the best interests of, the Authority.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>If any of the circumstances in §I(1) of this regulation occurs, the Authority may:</text> <paragraph num="(a)"> <text>Request that the bidders submit revised bids; and</text> </paragraph> <paragraph num="(b)"> <text>Conduct discussions with bidders after revised bids have been submitted if the Authority determines that it is in the best interest of the Authority to do so.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any discussions conducted under this section concerning revised specifications or quantities shall be conducted with all responsible bidders.</text> </paragraph> <paragraph num="(4)"> <text>The Authority shall award the procurement contract under this section to the responsible bidder who offered the most favorable bid price or most favorable evaluated bid price.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Procurement by Competitive Sealed Proposals."> <paragraph num="A."> <text>Request for Proposals. The Authority shall initiate a procurement by competitive sealed proposals by issuing a request for proposals that includes:</text> <paragraph num="(1)"> <text>Information concerning proposal submission requirements, including the date, time, and place for submission of proposals;</text> </paragraph> <paragraph num="(2)"> <text>Evaluation factors and the relative importance of each;</text> </paragraph> <paragraph num="(3)"> <text>A statement of the required scope of work or scope of services and performance schedule; and</text> </paragraph> <paragraph num="(4)"> <text>Such other information or requirements as the Authority may determine necessary.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Preproposal Conferences. The Authority may conduct preproposal conferences and require the attendance by offerors.</text> </paragraph> <paragraph num="C."> <text>Amendments to Requests for Proposals.</text> <paragraph num="(1)"> <text>The Authority may amend a request for proposals by:</text> <paragraph num="(a)"> <text>Publishing the amendment in the same manner that the Authority published the request for proposals; and</text> </paragraph> <paragraph num="(b)"> <text>Delivering the amendment to all prospective offerors known by the Authority to have either received the request for proposals or expressed an interest in the request for proposals.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A prospective offeror who receives delivery of an amendment from the Authority shall acknowledge receipt of the amendment.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Proposal Modification and Withdrawal. An offeror may modify or withdraw a proposal before proposals are due by submitting written notice of modification or withdrawal to the Authority.</text> </paragraph> <paragraph num="E."> <text>Receipt and Opening of Proposals.</text> <paragraph num="(1)"> <text>Proposals and modifications of proposals received by the Authority shall be held in a secure place until proposals are due.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may open proposals at any time after proposals are due.</text> </paragraph> <paragraph num="(3)"> <text>The Authority may not:</text> <paragraph num="(a)"> <text>Open proposals publicly; or</text> </paragraph> <paragraph num="(b)"> <text>Disclose the contents of a proposal to any person other than a person responsible for evaluating or reviewing the proposal before procurement contract award.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A proposal, withdrawal of proposal, or modification of proposal, received after proposals are due, is late and may only be considered as provided for bids under Regulation .07E of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Proposal Evaluation.</text> <paragraph num="(1)"> <text>The Authority shall evaluate proposals:</text> <paragraph num="(a)"> <text>Using the evaluation factors set forth in the request for proposals; and</text> </paragraph> <paragraph num="(b)"> <text>For a determination of which proposal is most advantageous to the Authority.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Technical proposals and price proposals shall be evaluated independently.</text> </paragraph> <paragraph num="(3)"> <text>The Authority may establish a technical evaluation committee to evaluate proposals and make a recommendation of contract award to the Authority. The technical evaluation committee may include members who are not employees of the Authority.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Discussions.</text> <paragraph num="(1)"> <text>As used in this section and in §E of this regulation, a “qualified offeror” is an offeror who submits a proposal in response to a request for proposals that the Authority determines is reasonably susceptible of being selected for award of the procurement contract.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may conduct discussions with a qualified offeror to:</text> <paragraph num="(a)"> <text>Assure that the offeror has full understanding of the Authority’s requirements;</text> </paragraph> <paragraph num="(b)"> <text>Assure that the Authority had full understanding of the offeror’s proposal and ability to perform;</text> </paragraph> <paragraph num="(c)"> <text>Negotiate the best price or other contract terms for the Authority; or</text> </paragraph> <paragraph num="(d)"> <text>Facilitate a procurement contract that is most advantageous to the Authority, taking into consideration price and other relevant evaluation factors set forth in the request for proposals.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Authority shall treat qualified offerors fairly and equally with respect to opportunity for discussions.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Best and Final Offers.</text> <paragraph num="(1)"> <text>The Authority may request that each qualified offeror submit a best and final offer if the Authority determines that it is in the Authority’s best interest to do so.</text> </paragraph> <paragraph num="(2)"> <text>The Authority may:</text> <paragraph num="(a)"> <text>Require more than one series of submissions of best and final offers; and</text> </paragraph> <paragraph num="(b)"> <text>Engage in discussions on a best and final offer in accordance with §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Authority requests more than one submission of best and final offers and an offeror does not submit an offer in response to a request, the offeror’s immediate previous offer shall be considered by the Authority as the offeror’s best and final offer unless the offeror submits a timely notice of withdrawal of that immediate previous offer.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Procurement Contract Award. After completing all discussions and evaluations, the the Authority shall:</text> <paragraph num="(1)"> <text>Determine which proposal is most advantageous to the Authority;</text> </paragraph> <paragraph num="(2)"> <text>Award the procurement contract based on the determination; and</text> </paragraph> <paragraph num="(3)"> <text>After award, promptly notify all unsuccessful offerors.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Debriefing of Unsuccessful Offerors.</text> <paragraph num="(1)"> <text>If a procurement contract is awarded on some basis other than price alone, an unsuccessful offeror may, within 10 days of the unsuccessful offeror’s receipt of notification of the award, submit to the Authority a written request for a debriefing from the Authority.</text> </paragraph> <paragraph num="(2)"> <text>A debriefing shall:</text> <paragraph num="(a)"> <text>Be conducted by an employee of the Authority who is familiar with the Authority’s evaluation and determination on the procurement;</text> </paragraph> <paragraph num="(b)"> <text>Be limited to discussion of the unsuccessful offeror’s proposal and the Authority’s evaluation of the proposal;</text> </paragraph> <paragraph num="(c)"> <text>Be factual and consistent with the evaluation of the unsuccessful offeror’s proposal; and</text> </paragraph> <paragraph num="(d)"> <text>Provide information on areas in which the Authority considered the unsuccessful offeror’s technical proposal to be weak, deficient, or less competitive.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A debriefing may not include:</text> <paragraph num="(a)"> <text>Discussion of a competing offeror’s proposal; or</text> </paragraph> <paragraph num="(b)"> <text>Discussion or dissemination of the thoughts, notes, or rankings of individual members of an evaluation committee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Sole Source Procurement."> <paragraph num="A."> <text>Applicability. The Authority may award a procurement contract to a sole source without competition:</text> <paragraph num="(1)"> <text>When a requirement is available from only a single source or vendor; or</text> </paragraph> <paragraph num="(2)"> <text>To retain confidential services:</text> <paragraph num="(a)"> <text>To advise the Authority in connection with threatened or pending litigation; or</text> </paragraph> <paragraph num="(b)"> <text>For the appraisal of real property contemplated for acquisition by the Authority.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Determination. A determination to make a procurement by sole source without competition shall be made by the Executive Director based on a finding that a sole source procurement is in the Authority’s best interest.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Emergency Procurement."> <paragraph num="A."> <text>Applicability. The Authority may award a contract by emergency procurement when:</text> <paragraph num="(1)"> <text>There occurs a sudden and unexpected event or condition that the Authority did not reasonably foresee; and</text> </paragraph> <paragraph num="(2)"> <text>Due to the constraints of time, procurement by other than competitive sealed bidding or competitive sealed proposals is necessary to avoid or mitigate damage to the environment or to public health, safety, or welfare.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Determination. The determination to make an emergency procurement shall be made by the Executive Director.</text> </paragraph> <paragraph num="C."> <text>Contract Award. When making an award by emergency procurement, the Authority shall:</text> <paragraph num="(1)"> <text>Reasonably attempt to obtain competitive bids or proposals consistent with meeting the time requirements of the emergency; and</text> </paragraph> <paragraph num="(2)"> <text>Make the award that is most advantageous to the Authority considering the circumstances of the emergency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Contract Award and Formation."> <paragraph num="A."> <text>The Authority shall award a procurement contract only to an offeror or bidder who is responsible and responsive, as determined by the Executive Director.</text> </paragraph> <paragraph num="B."> <text>The Executive Director may determine that a bidder or offeror is not responsible if the Executive Director finds that the bidder or offeror:</text> <paragraph num="(1)"> <text>Unreasonably failed to promptly supply information requested by the Authority in connection with a determination of responsibility; or</text> </paragraph> <paragraph num="(2)"> <text>Does not have the:</text> <paragraph num="(a)"> <text>Capability in all respects to perform fully the procurement contract requirements; or</text> </paragraph> <paragraph num="(b)"> <text>Integrity and reliability that will ensure good faith performance.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A procurement contract shall be:</text> <paragraph num="(1)"> <text>In a form acceptable to the Authority; and</text> </paragraph> <paragraph num="(2)"> <text>Approved for legal sufficiency by an assistant attorney general of the State.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For a procurement contract that exceeds $10,000, the contract shall contain the provisions required by COMAR 21.07.01—21.07.03, as may be amended or deleted by the Authority as it considers necessary to further the business of the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Cancellation of Solicitations and Rejection of Bids and Proposals."> <paragraph num="A."> <text>The Authority may cancel a solicitation in whole or in part before opening of bids or proposals when, in the determination of the Executive Director, cancellation is in the best interests of the Authority. Bids or proposals shall be returned to the bidders or offerors together with a notice of cancellation.</text> </paragraph> <paragraph num="B."> <text>After opening of bids or proposals, the Authority may reject all bids or proposals when, in the determination of the Executive Director, rejection is in the best interests of the Authority. Notice of rejection of all bids or proposals shall be sent to all vendors who submitted bids or proposals.</text> </paragraph> <paragraph num="C."> <text>The Authority may reject a bid or proposal in whole or in part when it is in the Authority’s best interest to do so and for reasons that may include, but are not limited to, a determination that:</text> <paragraph num="(1)"> <text>The bidder or offeror is not responsible;</text> </paragraph> <paragraph num="(2)"> <text>The bid or proposal is not responsive;</text> </paragraph> <paragraph num="(3)"> <text>The proposal is not reasonably susceptible to being selected for award;</text> </paragraph> <paragraph num="(4)"> <text>A bid or proposal price or other term is not reasonable; or</text> </paragraph> <paragraph num="(5)"> <text>The bidder or offeror is debarred or otherwise ineligible for award and the period of debarment or ineligibility has not expired.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Disputes."> <text>A dispute that arises in the performance of a procurement contract which is not resolved by agreement of the parties shall be decided in writing by the Executive Director. The decision of the Executive Director is final and conclusive unless, within 10 calendar days of receipt of a copy of the decision, the contractor delivers a written appeal to the Executive Director. In connection with an appeal, the contractor shall be given an opportunity to be heard and to offer evidence in support of the contractor’s position. The decision by the Executive Director binds the contractor, and the contractor shall abide by the decision.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Minority Business Enterprise Policies."> <text>The Authority shall comply with the provisions of State Finance and Procurement Article, Title 14, Subtitle 3, Annotated Code of Maryland, and regulations adopted under those provisions.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §13-1008(4), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 18, 1995 (22:25 Md. R. 1964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective June 15, 2009 (36:12 Md. R. 838)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B, C amended effective June 15, 2009 (36:12 Md. R. 838)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D amended effective June 15, 2009 (36:12 Md. R. 838)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06E amended effective February 28, 2005 (32:4 Md. R. 411); June 15, 2009 (36:12 Md. R. 838)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective October 23, 2017 (44:21 Md. R. 984)</annotation> </annotations> </chapter> <chapter num="09" heading="Parking of Vehicles on Canal Place Preservation and Development Authority Property"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter:</text> <paragraph num="A."> <text>Governs the parking of motor vehicles on Canal Place Preservation and Development Authority property, the towing and impoundment of motor vehicles improperly parked or abandoned on Authority property, and the sale and final disposition by the Authority of impounded or removed motor vehicles; and</text> </paragraph> <paragraph num="B."> <text>Establishes qualifications for designated parking control officers, including prerequisites of character, training, experience, education, and standards for the performance of duties.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Intent."> <paragraph num="A."> <text>This chapter is intended to enable the Authority to regulate and control the parking of motor vehicles upon Authority property.</text> </paragraph> <paragraph num="B."> <text>Motor vehicles improperly parked and abandoned upon Authority property:</text> <paragraph num="(1)"> <text>Constitute a public nuisance contrary to the general health, safety, and welfare of the public;</text> </paragraph> <paragraph num="(2)"> <text>Deny Canal Place patrons the right to fully use and enjoy the services and benefits offered and made available to the general public by the Authority; and</text> </paragraph> <paragraph num="(3)"> <text>Deny Authority employees the ability to:</text> <paragraph num="(a)"> <text>Preserve and maintain the orderly control and use of Authority facilities, and</text> </paragraph> <paragraph num="(b)"> <text>Prevent congestion and traffic hazards resulting from unauthorized use of Authority property by motor vehicle operators.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Incorporation by Reference."> <text>Transportation Article, Title 26, Subtitle 3, Annotated Code of Maryland, is incorporated by reference.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Application."> <text>This chapter applies to all motor vehicles on Authority property.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Abandoned” means a motor vehicle that:</text> <paragraph num="(a)"> <text>Is inoperable and left unattended on Authority property for more than 48 hours;</text> </paragraph> <paragraph num="(b)"> <text>Has remained illegally on Authority property for more than 48 hours; or</text> </paragraph> <paragraph num="(c)"> <text>Has remained on Authority property for more than 48 hours, and is:</text> <paragraph num="(i)"> <text>Not displaying currently valid registration plates, or</text> </paragraph> <paragraph num="(ii)"> <text>Displaying registration plates of another vehicle.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>"Authority" means the Canal Place Preservation and Development Authority.</text> </paragraph> <paragraph num="(3)"> <text>"Authority property" means all property owned or under the control of the Authority.</text> </paragraph> <paragraph num="(4)"> <text>“Authorized” means acting under a written permit, contract, or other evidence of right issued by the Authority.</text> </paragraph> <paragraph num="(5)"> <text>“Bus” means a motor vehicle that is:</text> <paragraph num="(a)"> <text>Designed to carry more than 10 passengers;</text> </paragraph> <paragraph num="(b)"> <text>Used to carry people; and</text> </paragraph> <paragraph num="(c)"> <text>Operated by public or private carrier.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Canal Place patron” means an individual on Authority property for the purpose of authorized use of Authority property, including:</text> <paragraph num="(a)"> <text>Authority employees and agents;</text> </paragraph> <paragraph num="(b)"> <text>Tenants and their employees and agents; and</text> </paragraph> <paragraph num="(c)"> <text>Members of the general public.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Director” means the Executive Director of the Authority.</text> </paragraph> <paragraph num="(8)"> <text>“Disabled parking areas” means those designated parking areas on Authority property upon which Canal Place patrons may park motor vehicles bearing either:</text> <paragraph num="(a)"> <text>A valid handicapped license plate; or</text> </paragraph> <paragraph num="(b)"> <text>Other valid evidence that the user of the motor vehicle is handicapped as provided under Maryland law.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Law enforcement officer” means:</text> <paragraph num="(a)"> <text>A member of the:</text> <paragraph num="(i)"> <text>Maryland State Police, or</text> </paragraph> <paragraph num="(ii)"> <text>City of Cumberland Police; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>An officer designated as a parking control officer.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Motor Vehicle.</text> <paragraph num="(a)"> <text>“Motor vehicle” means a device in, upon, or by which an individual or property may be propelled, moved, or drawn upon land.</text> </paragraph> <paragraph num="(b)"> <text>“Motor vehicle” includes a vehicle towed by another motor vehicle, except:</text> <paragraph num="(i)"> <text>A device moved by human or animal power; and</text> </paragraph> <paragraph num="(ii)"> <text>Aircraft and devices moved exclusively upon stationary rails or tracks.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Motor vehicle operator” means an individual who is in actual physical control of a motor vehicle.</text> </paragraph> <paragraph num="(12)"> <text>Motor Vehicle Owner or Owner.</text> <paragraph num="(a)"> <text>“Motor vehicle owner” means a person who holds the legal title to a motor vehicle.</text> </paragraph> <paragraph num="(b)"> <text>“Motor vehicle owner” or “owner” includes a secured party indicated on the motor vehicle title.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Parking” means the standing or parking of a motor vehicle, attended or unattended, upon Authority property.</text> </paragraph> <paragraph num="(14)"> <text>“Parking control officer” means an Authority employee, or security personnel under contract with the Authority, authorized by the Director to issue a citation under this chapter.</text> </paragraph> <paragraph num="(15)"> <text>“Parking lot” means an area designated for parking on Authority property, including public, employee, and tenant areas.</text> </paragraph> <paragraph num="(16)"> <text>Person.</text> <paragraph num="(a)"> <text>“Person” means an individual, firm, partnership, corporation, company, association, or joint stock association.</text> </paragraph> <paragraph num="(b)"> <text>“Person” includes a trustee, receiver, assignee, or other representative of them.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“State” means the State of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="General Parking Regulations."> <paragraph num="A."> <text>The control of all motor vehicle parking on Authority property is governed by this chapter.</text> </paragraph> <paragraph num="B."> <text>Unless otherwise authorized, an individual may not park a motor vehicle on Authority property unless that individual:</text> <paragraph num="(1)"> <text>Is a Canal Place patron;</text> </paragraph> <paragraph num="(2)"> <text>Intends to pick up or discharge a Canal Place patron; or</text> </paragraph> <paragraph num="(3)"> <text>Is on Authority property for purposes directly related to the business of the Authority.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A person may not abandon a motor vehicle on Authority property.</text> </paragraph> <paragraph num="D."> <text>An individual may not park a motor vehicle on Authority property, except:</text> <paragraph num="(1)"> <text>In specifically posted and designated areas; and</text> </paragraph> <paragraph num="(2)"> <text>During the hours of Authority operations.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An individual may not park a motor vehicle on Authority property which interferes with or prevents the passage or movement of buses, emergency vehicles, or other motor vehicles.</text> </paragraph> <paragraph num="F."> <text>An individual may not drive a motor vehicle on Authority property without a valid driver's license issued by the:</text> <paragraph num="(1)"> <text>State; or</text> </paragraph> <paragraph num="(2)"> <text>Jurisdiction where the individual resides, if other than Maryland.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The responsibility for finding a legal parking space rests with the motor vehicle operator.</text> </paragraph> <paragraph num="H."> <text>An individual may not park a motor vehicle upon Authority property within 15 feet of:</text> <paragraph num="(1)"> <text>A fire hydrant; or</text> </paragraph> <paragraph num="(2)"> <text>Other fire control apparatus.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Unless otherwise authorized, an individual may not stop a motor vehicle upon Authority property:</text> <paragraph num="(1)"> <text>To load or unload the motor vehicle in violation of a posted fire or traffic sign or regulation; or</text> </paragraph> <paragraph num="(2)"> <text>In a manner which obstructs the movement of vehicular or pedestrian traffic.</text> </paragraph> </paragraph> <paragraph num="J."> <text>A motor vehicle operator:</text> <paragraph num="(1)"> <text>Shall park in one marked space only within:</text> <paragraph num="(a)"> <text>A designated parking area, and</text> </paragraph> <paragraph num="(b)"> <text>The marked space;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Shall leave clear access to adjacent spaces; and</text> </paragraph> <paragraph num="(3)"> <text>May not:</text> <paragraph num="(a)"> <text>Block driving lanes or roads, or</text> </paragraph> <paragraph num="(b)"> <text>Create a hazard to other motor vehicle operators.</text> </paragraph> </paragraph> </paragraph> <paragraph num="K."> <text>An individual may not park a motor vehicle in a marked pedestrian crosswalk.</text> </paragraph> <paragraph num="L."> <text>An individual may not park a motor vehicle on Authority property to wash, clean, polish, repair, maintain, or overhaul the motor vehicle, except for repairs necessary to remove the motor vehicle from Authority property.</text> </paragraph> <paragraph num="M."> <text>Parking in designated disabled parking areas is restricted to Canal Place patrons whose motor vehicles bear either:</text> <paragraph num="(1)"> <text>A valid handicapped license plate; or</text> </paragraph> <paragraph num="(2)"> <text>Other valid evidence that the user of the motor vehicle is handicapped as provided under Maryland law.</text> </paragraph> </paragraph> <paragraph num="N."> <text>An individual may not park in areas adjacent to yellow painted curbs or in any other posted restricted areas.</text> </paragraph> <paragraph num="O."> <text>A motor vehicle that is parked or placed on Authority property in such a manner as to be presumed abandoned, or that creates a nuisance or hazard, or that interferes with Authority operations or emergencies, may be towed or removed to a location chosen by the Authority or the Authority's designee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Taxicabs."> <paragraph num="A."> <text>An individual operating a taxicab on Authority property may not stop or park the taxicab to block or interfere with the free passage of pedestrians or vehicular traffic on or about Authority property.</text> </paragraph> <paragraph num="B."> <text>Taxicabs shall stand only in areas on Authority property posted for taxicabs.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Motor Vehicles Prohibited by Type, Weight, or Size."> <text>Except for individuals having business directly related to the Authority, or unless otherwise authorized, an individual may not park the following vehicles upon Authority property:</text> <paragraph num="A."> <text>A trailer or towed vehicle;</text> </paragraph> <paragraph num="B."> <text>A truck having a manufacturer's rated carrying capacity greater than 1 ton;</text> </paragraph> <paragraph num="C."> <text>A vehicle with a gross weight greater than 8,000 pounds;</text> </paragraph> <paragraph num="D."> <text>A vehicle having an overall length more than 20 feet including any load on it;</text> </paragraph> <paragraph num="E."> <text>A vehicle wider than 8 feet; or</text> </paragraph> <paragraph num="F."> <text>A bus.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Towing, Impoundment, and Sale."> <paragraph num="A."> <text>The State Police, the City of Cumberland police or their agents, or Authority parking control officers or agents, may take into custody an abandoned motor vehicle, or a vehicle parked in violation of this chapter, which is parked so as to constitute a nuisance or hazard to public safety, impede or obstruct the normal movement of vehicular or pedestrian traffic on Authority property, or deny Canal Place patrons full use and enjoyment of Canal Place property. For this purpose, the State Police, the City of Cumberland police, or Authority parking control officers or agents may use their own personnel, equipment, or facilities, for removing, preserving, and storing the vehicles. The Authority or its agents are not liable for any losses or damages resulting from these actions to the extent provided under Courts and Judicial Proceedings Article, §§5-301—5-304 and 5-522, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>As soon as reasonably possible and within 7 days after the State Police or the City of Cumberland police or their agents take a vehicle into custody under this regulation, the State Police or the City of Cumberland police or their agents shall send a notice, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to:</text> <paragraph num="(1)"> <text>The last known registered owner of the vehicle; and</text> </paragraph> <paragraph num="(2)"> <text>Each secured party, as shown on the records of the Maryland Motor Vehicle Administration.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The notice shall:</text> <paragraph num="(1)"> <text>State that the vehicle has been taken into custody;</text> </paragraph> <paragraph num="(2)"> <text>Give the name, address, and telephone number of the individual providing the notice;</text> </paragraph> <paragraph num="(3)"> <text>Describe the motor vehicle, including year, model, and vehicle identification number;</text> </paragraph> <paragraph num="(4)"> <text>Give the location of the facility where the vehicle is held;</text> </paragraph> <paragraph num="(5)"> <text>State the authority and reason for the removal, towing, or storage of the motor vehicle;</text> </paragraph> <paragraph num="(6)"> <text>Inform the motor vehicle owner and secured parties of the owner's or secured parties' rights to reclaim the vehicle on payment of all towing, preservation, and storage charges resulting from taking or placing the vehicle in custody, upon:</text> <paragraph num="(a)"> <text>Presentation of proof of identity and ownership or security interest, and</text> </paragraph> <paragraph num="(b)"> <text>Signing a receipt for the motor vehicle; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Be sent by certified mail, return receipt requested.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Authority or its agent may seek to recover costs of impoundment or storage, and removal under this regulation. If the Authority seeks to apply the provisions of this regulation, the notice required by §B of this regulation shall also state that the failure of the motor vehicle owner or secured party to exercise the right to reclaim the vehicle may cause continuing liability of the owner for reasonable costs of impoundment and storage.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Exceptions."> <text>This chapter does not apply to:</text> <paragraph num="A."> <text>Motor vehicles of the Authority, its employees, contractors or subcontractors; or</text> </paragraph> <paragraph num="B."> <text>Police or emergency vehicles.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Administration and Penalties."> <paragraph num="A."> <text>The issuance of citations under this chapter shall comply with the requirements of Transportation Article, Title 26, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Citations issued under this chapter shall contain sufficient information to enable the individual receiving a citation or citations to:</text> <paragraph num="(1)"> <text>Pay for the parking violation; or</text> </paragraph> <paragraph num="(2)"> <text>Stand trial.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Penalties for parking violations are as provided by ordinance of the City of Cumberland for similar parking violations. A schedule of penalties shall be posted in prominent view of authorized visitors and tenants of Authority property. Penalties for uncontested parking violations may be paid directly to the Director or the Director's designee, at the Authority's principal office.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Parking Control Officer Qualifications and Training."> <paragraph num="A."> <text>Character.</text> <paragraph num="(1)"> <text>A parking control officer:</text> <paragraph num="(a)"> <text>Shall successfully pass a preemployment background investigation; and</text> </paragraph> <paragraph num="(b)"> <text>May not have been convicted of a felony.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A parking control officer who fails to maintain a good character shall be relieved immediately of the authority to issue citations under this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Experience and Education. A parking control officer shall:</text> <paragraph num="(1)"> <text>Have a minimum of 1 year of experience as a security officer or in a closely related field; and</text> </paragraph> <paragraph num="(2)"> <text>Possess a high school diploma or a State equivalence certificate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Training.</text> <paragraph num="(1)"> <text>An individual designated as a parking control officer shall be trained in:</text> <paragraph num="(a)"> <text>All authority regulations relating to parking control;</text> </paragraph> <paragraph num="(b)"> <text>The preparation of citations;</text> </paragraph> <paragraph num="(c)"> <text>The areas of customer service, conflict resolution, Authority property operations, and organization; and</text> </paragraph> <paragraph num="(d)"> <text>Courtroom procedures, including courtroom demeanor and case presentation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The training of a parking control officer shall consist of a minimum of 12 hours covering the subject areas in §C(1) of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Performance Standards for Parking Control Officers."> <text>A parking control officer shall:</text> <paragraph num="A."> <text>Act in a manner to bring credit both to the position of parking control officer and the Authority;</text> </paragraph> <paragraph num="B."> <text>Act in a reasonable manner so as to avoid any confrontation which may:</text> <paragraph num="(1)"> <text>Lead to personal injury, or</text> </paragraph> <paragraph num="(2)"> <text>Result in embarrassment to the Authority;</text> </paragraph> </paragraph> <paragraph num="C."> <text>Keep abreast of changes in the law, regulations, and policies which impact on the parking control officer's duties;</text> </paragraph> <paragraph num="D."> <text>Safeguard, maintain, and clean the equipment, uniforms, and accessories which are issued to the parking control officer;</text> </paragraph> <paragraph num="E."> <text>Be considered in a sensitive classification subject to the substance abuse policy of the Authority; and</text> </paragraph> <paragraph num="F."> <text>Observe all State laws, personnel policies, and regulations applicable to the conduct of Authority employees.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1008(4) and 13-1008.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 17, 1999 (26:10 Md. R. 799)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective January 20, 2003 (30:1 Md. R. 27)</annotation> </annotations> </chapter> </subtitle> <subtitle num="29" heading="Maryland Heritage Areas Authority"> <chapter num="01" heading="Designation of Recognized Heritage Areas"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>Financial Institutions Article, Title 13, Subtitle 11, Annotated Code of Maryland, establishes the Maryland Heritage Areas Authority and the Maryland System of Heritage Areas.</text> </paragraph> <paragraph num="B."> <text>The Maryland Heritage Areas Authority is an independent unit in the Executive Branch of State Government that operates within the Maryland Department of Planning and is authorized to consider proposals submitted by local jurisdictions for designation of a heritage area as a recognized heritage area.</text> </paragraph> <paragraph num="C."> <text>Once a heritage area is designated by the Authority as a recognized heritage area, grant funds are available through the Authority for the development of a management plan for the heritage area. A management plan for a heritage area must be approved by the Authority before the Authority can designate the heritage area as a certified heritage area under COMAR 14.29.02.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Certified heritage area” means a recognized heritage area that has been designated as a certified heritage area by the Authority in accordance with the Act and COMAR 14.29.02</text> </paragraph> <paragraph num="(4)"> <text>“Geographic information system file” means an electronic data file that captures, stores, and displays various types of spatial and attribute data on a map.</text> </paragraph> <paragraph num="(5)"> <text>“Heritage area” means a contiguous or noncontiguous developed geographic area of public and private uses that:</text> <paragraph num="(a)"> <text>Can range in size from as small as a portion of a county or municipal corporation to as large as a regional area;</text> </paragraph> <paragraph num="(b)"> <text>Has a coherent and cohesive special character;</text> </paragraph> <paragraph num="(c)"> <text>Is distinguished by a concentration of natural, recreational, cultural, and historic resources of Statewide significance that have played a vital role in the historic life and development of the area and contribute to the public through interpretive, educational, and recreational uses; and</text> </paragraph> <paragraph num="(d)"> <text>May include traditional parks and historic places or properties.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Heritage area management entity” means either a nonprofit organization or an agency of either State or local government that is or will be responsible for coordinating development of a management plan for a recognized heritage area or is responsible for implementing the management plan for a certified heritage area.</text> </paragraph> <paragraph num="(7)"> <text>“Local jurisdiction” means any of the 23 counties of the State, the City of Baltimore, any municipal corporation in the State that is subject to the provisions of Article XI-E of the Maryland Constitution, or any of their duly authorized agencies or instrumentalities.</text> </paragraph> <paragraph num="(8)"> <text>“Management plan” means a document prepared and approved in accordance with the Act and COMAR 14.29.02, that includes a comprehensive strategy expressed in words, maps, illustrations, or other media for planning, implementing, and achieving the goals and objectives of a heritage area.</text> </paragraph> <paragraph num="(9)"> <text>“Recognized heritage area” means a heritage area designated by the Authority as a recognized heritage area in accordance with this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Proposals for Designation of Recognized Heritage Areas."> <paragraph num="A."> <text>A local jurisdiction with land area located within the geographic boundaries of a heritage area may submit to the Authority a proposal for designation of the heritage area as a recognized heritage area, and if the land area of the heritage area is located within more than one local jurisdiction the proposal shall be jointly submitted by each of the local jurisdictions.</text> </paragraph> <paragraph num="B."> <text>A proposal for designation of a recognized heritage area shall:</text> <paragraph num="(1)"> <text>Include a geographic information system file that identifies the boundaries for the heritage area;</text> </paragraph> <paragraph num="(2)"> <text>Include a resolution, ordinance, or other appropriate authorization issued by the governing body of each local jurisdiction with land area located within the boundaries of the heritage area establishing that the local jurisdiction has approved the proposal;</text> </paragraph> <paragraph num="(3)"> <text>Identify the heritage area management entity;</text> </paragraph> <paragraph num="(4)"> <text>Identify and describe the natural, recreational, cultural, and historic resources that contribute to the special cohesive character of the heritage area;</text> </paragraph> <paragraph num="(5)"> <text>Identify, as located within the heritage area, any:</text> <paragraph num="(a)"> <text>Historic districts either listed, or determined by the Director of the Maryland Historical Trust to be eligible for listing, in the Maryland Register of Historic Properties; or</text> </paragraph> <paragraph num="(b)"> <text>Natural or recreational resources determined by the Secretary of Natural Resources to be of Statewide significance;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Specify the general goals and objectives for preservation, development, and management of the heritage area;</text> </paragraph> <paragraph num="(7)"> <text>Identify the types of public and private uses within the heritage area that will be intended or designed to advance the goals and objectives of the heritage area;</text> </paragraph> <paragraph num="(8)"> <text>Describe the strategies for encouraging and accommodating visitation to, and the compatible economic development of, the heritage area;</text> </paragraph> <paragraph num="(9)"> <text>Provide an economic overview of both the short-term and long-term costs and benefits related to development of the heritage area;</text> </paragraph> <paragraph num="(10)"> <text>Describe the methods and means to be instituted by the local jurisdictions to assure the long-term preservation and protection of the heritage area’s resources, including zoning, subdivision, and other growth management controls;</text> </paragraph> <paragraph num="(11)"> <text>To the extent that any of the following State agencies have programs or plans that may be affected by, or may be able to coordinate on, the designation of the heritage area as a recognized heritage area, identify to what extent such agencies were consulted during development of the proposal:</text> <paragraph num="(a)"> <text>Department of Housing and Community Development regarding housing and neighborhood revitalization;</text> </paragraph> <paragraph num="(b)"> <text>Maryland Department of Planning regarding land use planning, historic preservation, museum programs, and management of cultural and historic resources;</text> </paragraph> <paragraph num="(c)"> <text>Department of Commerce regarding tourism, economic development, and job creation;</text> </paragraph> <paragraph num="(d)"> <text>Department of Natural Resources regarding outdoor recreation and the management of natural resources and State greenways;</text> </paragraph> <paragraph num="(e)"> <text>Department of Agriculture regarding agricultural activities;</text> </paragraph> <paragraph num="(f)"> <text>Maryland Higher Education Commission and the State Department of Education regarding educational resources and education of the public about the heritage areas;</text> </paragraph> <paragraph num="(g)"> <text>Department of Transportation regarding access to and transportation within the heritage area, including on the State scenic byways program and programs for special signage; and</text> </paragraph> <paragraph num="(h)"> <text>Department of General Services regarding the management, maintenance, and disposition of State property; and</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>Include any additional information as may be requested by the Authority either prior or subsequent to submission of the proposal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Proposals."> <paragraph num="A."> <text>The Authority shall review a proposal submitted under Regulation .03 of this chapter for designation of a heritage area as a recognized heritage area.</text> </paragraph> <paragraph num="B."> <text>The Authority may designate a heritage area as a recognized heritage area only if the Authority finds that:</text> <paragraph num="(1)"> <text>The proposal for designation includes all information and requirements of Regulation .03B of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>The area proposed for designation satisfies the definition of a heritage area set forth in Regulation .02B(5) of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>The area includes at least one or more:</text> <paragraph num="(a)"> <text>Historic districts either listed, or determined by the Director of the Maryland Historical Trust to be eligible for listing, in the Maryland Register of Historic Properties; or</text> </paragraph> <paragraph num="(b)"> <text>Natural or recreational resources determined by the Secretary of Natural Resources to be of Statewide significance; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Public assistance for the heritage area is reasonably expected to produce:</text> <paragraph num="(a)"> <text>Additional private investments;</text> </paragraph> <paragraph num="(b)"> <text>Job creation; and</text> </paragraph> <paragraph num="(c)"> <text>Tourism revenues.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Authority shall disapprove a proposal for designation of a heritage area as a recognized heritage area if the proposal does not satisfy the criteria in §B of this regulation.</text> </paragraph> <paragraph num="D."> <text>If a proposal for designation of a heritage area as a recognized heritage area satisfies the criteria in §B of this regulation, the Authority may:</text> <paragraph num="(1)"> <text>Approve the proposal, which shall constitute designation of the heritage area as a recognized heritage area; or</text> </paragraph> <paragraph num="(2)"> <text>Approve the proposal subject to one or more modifications as determined necessary by the Authority, which shall constitute designation of the heritage area as a recognized heritage area, as modified by the Authority.</text> </paragraph> </paragraph> <paragraph num="E."> <text>In determining whether to approval or disapprove a proposal under this regulation, the Authority may consider as factors:</text> <paragraph num="(1)"> <text>The number of certified heritage areas in existence at the time of the determination; and</text> </paragraph> <paragraph num="(2)"> <text>Financial resources available or anticipated to be available.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Upon reaching a determination under either §C or D of this regulation, the Authority shall promptly send written notice of the determination to each local jurisdiction that submitted the proposal and to the heritage area management entity identified in the proposal.</text> </paragraph> <paragraph num="G."> <text>The boundaries of a recognized heritage area approved under this regulation shall be:</text> <paragraph num="(1)"> <text>The boundaries of the heritage area as identified in the geographic information system file submitted with the proposal for designation as a recognized heritage area, as approved or approved with modifications by the Authority;</text> </paragraph> <paragraph num="(2)"> <text>Posted on the website of the Maryland Historical Trust in the form of a Uniform Resource Locator (URL) to the geographic information system file; and</text> </paragraph> <paragraph num="(3)"> <text>Published in the Maryland Register by the Authority in the form of a Uniform Resource Locator (URL) to the geographic information system file.</text> </paragraph> </paragraph> <paragraph num="H."> <text>A local jurisdiction within, or the heritage area management entity for, a recognized heritage area may apply for a grant from the Authority under COMAR 14.29.03 to assist with the development of a management plan for the heritage area.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Amendments to Recognized Heritage Area Boundaries."> <paragraph num="A."> <text>The Authority shall consider a proposal to amend the boundaries of the recognized heritage area if the proposal:</text> <paragraph num="(1)"> <text>Is submitted by the heritage area management entity;</text> </paragraph> <paragraph num="(2)"> <text>Is approved by resolution, ordinance, or other appropriate authorization issued by the governing body of each local jurisdiction with land area located either within the portion of a recognized heritage area to be removed or within the area proposed to be added to the recognized heritage area;</text> </paragraph> <paragraph num="(3)"> <text>Includes a geographic information system file that identifies the boundaries of the area proposed to be removed or added; and</text> </paragraph> <paragraph num="(4)"> <text>Contains information or explanation as to why an area proposed to be added, viewed in relation to the recognized heritage area, satisfies the criteria for designation in Regulation .04B of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When considering a proposal submitted under Regulation .05A of this chapter, the Authority shall:</text> <paragraph num="(1)"> <text>Approve, approve with modification, or disapprove the proposal;</text> </paragraph> <paragraph num="(2)"> <text>Send written notice of the action taken on the proposal to the heritage area management entity and all the local jurisdictions that approved of the proposal; and</text> </paragraph> <paragraph num="(3)"> <text>If it approves the proposal or approves the proposal with modification:</text> <paragraph num="(a)"> <text>Publish in the Maryland Register a Uniform Resource Locator (URL) to a geographic information system file for the revised boundaries; and</text> </paragraph> <paragraph num="(b)"> <text>Post on the website of the Maryland Historical Trust a Uniform Resource Locator (URL) to a geographic information system file for the revised boundaries.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Program Administration."> <paragraph num="A."> <text>The Authority may adopt written policies or guidelines related to or governing the criteria for and administration of the procedures for designating recognized heritage areas and shall post any such adopted policies or guidelines on the website hosted by the Maryland Historical Trust.</text> </paragraph> <paragraph num="B."> <text>A determination of the Authority made under Regulations .04 or .05 of this chapter is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Waiver."> <text>The Authority may waive or vary a provision of this chapter if the waiver or variance is consistent with the Act and, as determined by the Authority, application of the provision in a specific instance or case, or in an emergency situation, would be inequitable or contrary to the purposes of the Act.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="False Statements."> <text>A person who knowingly makes or causes to be made a false statement submitted or made to the Authority in connection with a proposal for designation of a heritage area as a recognized heritage area is subject to any penalties authorized by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6) and 13-1110, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 13, 1997 (24:14 Md. R. 1014)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 repealed and new Regulations .01—.08 adopted effective November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> <chapter num="02" heading="Adoption of Management Plans and Designation of Certified Heritage Areas"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>Financial Institutions Article, Title 13, Subtitle 11, Annotated Code of Maryland, establishes the Maryland Heritage Areas Authority and the Maryland System of Heritage Areas.</text> </paragraph> <paragraph num="B."> <text>The Maryland Heritage Areas Authority is an independent unit in the Executive Branch of State Government that operates within the Maryland Department of Planning and is authorized to consider proposals submitted by local jurisdictions for designation of a recognized heritage area as a certified heritage area.</text> </paragraph> <paragraph num="C."> <text>Once a recognized heritage area is designated by the Authority as a certified heritage area, certain entities located within the heritage area may apply for and receive grants and loans as provided by Financial Institutions Article, §13-1113, Annotated Code of Maryland, and COMAR 14.29.04 and 14.29.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Certified heritage area” means a recognized heritage area that has been designated as a certified heritage area by the Authority in accordance with the Act and this chapter.</text> </paragraph> <paragraph num="(4)"> <text>“Fund” means the Maryland Heritage Areas Authority Financing Fund established by the Act.</text> </paragraph> <paragraph num="(5)"> <text>“Geographic information system file” means an electronic data file that captures, stores, and displays various types of spatial and attribute data on a map.</text> </paragraph> <paragraph num="(6)"> <text>“Heritage area” means a contiguous or noncontiguous developed geographic area of public and private uses that:</text> <paragraph num="(a)"> <text>Can range in size from as small as a portion of a county or municipal corporation to as large as a regional area;</text> </paragraph> <paragraph num="(b)"> <text>Has a coherent and cohesive special character;</text> </paragraph> <paragraph num="(c)"> <text>Is distinguished by a concentration of natural, recreational, cultural, and historic resources of Statewide significance that have played a vital role in the historic life and development of the area and contribute to the public through interpretive, educational, and recreational uses; and</text> </paragraph> <paragraph num="(d)"> <text>May include traditional parks and historic places or properties.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Heritage area management entity” means a nonprofit organization or agency of either State or local government that is or will be responsible for coordinating development of a management plan for a recognized heritage area or is responsible for implementing the management plan for a certified heritage area.</text> </paragraph> <paragraph num="(8)"> <text>“Local jurisdiction” means any of the 23 counties of the State, the City of Baltimore, any municipal corporation in the State that is subject to the provisions of Article XI-E of the Maryland Constitution, or any of their duly authorized agencies or instrumentalities.</text> </paragraph> <paragraph num="(9)"> <text>Local Plan.</text> <paragraph num="(a)"> <text>“Local plan” means the policies, statements, goals, and plans for private and public land use, transportation, and community facilities, documented in texts and maps and established as the guide for future development within a jurisdiction or area.</text> </paragraph> <paragraph num="(b)"> <text>“Local plan” includes a general plan, master plan, comprehensive plan, community plan, sector plan, or similar plan adopted by a local jurisdiction in accordance with the Land Use Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Management plan” means a document prepared and approved in accordance with the Act and this chapter, that includes a comprehensive strategy expressed in words, maps, illustrations, or other media for planning, implementing, and achieving the goals and objectives of the heritage area.</text> </paragraph> <paragraph num="(11)"> <text>“Recognized heritage area” means a heritage area designated by the Authority as a recognized heritage area in accordance with COMAR 14.29.01.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Proposals for Designation of Certified Heritage Areas."> <paragraph num="A."> <text>A local jurisdiction with land area located within the geographic boundaries of a recognized heritage area may submit to the Authority a proposal for designation of the recognized heritage area as a certified heritage area, and if land area of the recognized heritage area is located within more than one local jurisdiction the proposal shall be jointly submitted by each of the local jurisdictions.</text> </paragraph> <paragraph num="B."> <text>Before submitting to the Authority a proposal for designation of a certified heritage area, the governing body of each local jurisdiction with land area located within the boundaries of the proposed certified heritage area must, by resolution, ordinance, or other appropriate authorization:</text> <paragraph num="(1)"> <text>Approve submission of the proposal to the Authority; and</text> </paragraph> <paragraph num="(2)"> <text>Preliminarily approve adoption of an amendment to the jurisdiction’s local plan that incorporates the management plan for the heritage area.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A proposal for designation of a certified heritage area shall be submitted to the Authority within 45 days after the last local jurisdictions’ approvals under Regulation .03B of this chapter are completed.</text> </paragraph> <paragraph num="D."> <text>A proposal for designation of a certified heritage area shall include:</text> <paragraph num="(1)"> <text>An adopted resolution, ordinance, or other appropriate authorization issued by the governing body of each local jurisdiction with land area located within the boundaries of the proposed certified heritage area that amends the local plan of the local jurisdiction to incorporate the proposed management plan into the local plan;</text> </paragraph> <paragraph num="(2)"> <text>A proposed management plan for the heritage area that:</text> <paragraph num="(a)"> <text>Was developed in cooperation and consultation with the Authority and relevant private interests;</text> </paragraph> <paragraph num="(b)"> <text>Contains a geographic information system file that identifies the boundaries for the proposed certified heritage area;</text> </paragraph> <paragraph num="(c)"> <text>Identifies the heritage area management entity and describes:</text> <paragraph num="(i)"> <text>Its organizational structure;</text> </paragraph> <paragraph num="(ii)"> <text>Its relations with agencies of State and local government; and</text> </paragraph> <paragraph num="(iii)"> <text>The specific performance criteria and methods for data collection and analysis that the heritage area management entity will use to measure success in achieving the goals and objectives of the management plan;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Identifies the land use recommendations for all land areas within the proposed certified heritage area as detailed in the corresponding local plan;</text> </paragraph> <paragraph num="(e)"> <text>Identifies the types of public and private uses that will be encouraged and promoted within the proposed certified heritage area;</text> </paragraph> <paragraph num="(f)"> <text>Identifies the local zoning for all land areas located within the proposed certified heritage area, which shall specify potential intensity of uses and identify those zones that are most appropriately devoted to, respectively, public uses and private uses;</text> </paragraph> <paragraph num="(g)"> <text>Identifies property, if any, to be acquired, in whole or in part, for the benefit of the proposed certified heritage area by a local jurisdiction or other entity authorized by a local jurisdiction;</text> </paragraph> <paragraph num="(h)"> <text>Describes those educational, interpretive, and recreational programs and projects planned to be undertaken within the proposed certified heritage area;</text> </paragraph> <paragraph num="(i)"> <text>Describes plans for encouraging and accommodating visitation to, and compatible economic development of, the proposed certified heritage area;</text> </paragraph> <paragraph num="(j)"> <text>Includes an economic assessment of both the short-term and long-term costs and benefits related to implementation of the management plan, including identification of anticipated sources of funding for implementation of the management plan;</text> </paragraph> <paragraph num="(k)"> <text>Contains an inventory and evaluation of the significant natural, recreational, cultural, and historic resources located within the proposed certified heritage area;</text> </paragraph> <paragraph num="(l)"> <text>Describes the plans and the means and methods for preserving and protecting the natural, recreational, cultural, and historic resources located within the proposed certified heritage area, including identification and summary of any existing or proposed local law or ordinance that:</text> <paragraph num="(i)"> <text>Designates or operates to protect cultural or historic properties or natural areas; and</text> </paragraph> <paragraph num="(ii)"> <text>Assures that future local actions and development will be consistent with the goals and objectives of preserving the natural, recreational, cultural, and historic resources of the proposed certified heritage area;</text> </paragraph> </paragraph> <paragraph num="(m)"> <text>If the management plan proposes enactment of local law or ordinance to provide for one or more historic preservation commissions that would govern historic sites, structures, or districts located within the proposed certified heritage area, verifies that the provisions of the proposed enactment or enactments will:</text> <paragraph num="(i)"> <text>Be consistent with Land Use Article, Title 8, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(ii)"> <text>Provide that members of the historic preservation commission will have minimum professional requirements established by the United States Department of the Interior under Part 61, Title 36, Code of Federal Regulations, for certifying local governments; and</text> </paragraph> <paragraph num="(iii)"> <text>Provide that the historic preservation commission must review and approve the plans of any project that the local jurisdiction conducts, assists, licenses, or permits, if the project may affect a property located within the proposed certified heritage area that is either designated as historic by the local jurisdiction or is listed or eligible for listing in the Maryland Register of Historic Properties;</text> </paragraph> </paragraph> <paragraph num="(n)"> <text>Includes a schedule for the planning, development, and management of the proposed certified heritage area; and</text> </paragraph> <paragraph num="(o)"> <text>Demonstrates that the capabilities and capacities exist within the proposed certified heritage area, by or through either the heritage area management entity or local government agencies, to implement and manage the proposed certified heritage area, including the capability and capacity to:</text> <paragraph num="(i)"> <text>Accept and disburse funds;</text> </paragraph> <paragraph num="(ii)"> <text>Acquire, improve, and dispose of property;</text> </paragraph> <paragraph num="(iii)"> <text>Manage, operate, and maintain appropriate public facilities; and</text> </paragraph> <paragraph num="(iv)"> <text>Adopt and enforce land use and preservations standards and controls necessary to protect the significance natural, recreational, cultural, and historic resources located within the proposed certified heritage area; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any additional information as may be requested by the Authority either prior or subsequent to submission of the proposal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Proposals and Designation."> <paragraph num="A."> <text>Within 90 days of receiving a proposal under Regulation .03 of this chapter, the Authority shall:</text> <paragraph num="(1)"> <text>Hold at least one public hearing concerning the proposed management plan within the proposed certified heritage; and</text> </paragraph> <paragraph num="(2)"> <text>Approve, approve with conditions, or disapprove the proposed management plan.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Authority shall disapprove a proposed management plan for a proposed certified heritage area if the Authority determines that:</text> <paragraph num="(1)"> <text>The management plan does not adequately carry out the purposes of the Act; or</text> </paragraph> <paragraph num="(2)"> <text>The proposal does not include all information required under, or meet all requirements of, Regulation .03D of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Authority determines that a proposed management plan for a proposed certified heritage area includes all information required under, and meets all requirements of, Regulation .03D of this chapter, the Authority may:</text> <paragraph num="(1)"> <text>Approve the proposed management plan; or</text> </paragraph> <paragraph num="(2)"> <text>Approve the proposed management plan subject to one or more modifications as determined necessary by the Authority.</text> </paragraph> </paragraph> <paragraph num="D."> <text>In determining whether to approval or disapprove a proposal under this regulation, the Authority may consider as factors:</text> <paragraph num="(1)"> <text>The number of certified heritage areas in existence at the time of the determination; and</text> </paragraph> <paragraph num="(2)"> <text>Financial resources available or anticipated to be available.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Upon reaching a determination under either §B or C of this regulation, the Authority shall promptly send written notice to the heritage area management entity and each local jurisdiction that submitted the proposed management plan:</text> <paragraph num="(1)"> <text>Of the Authority’s determination; and</text> </paragraph> <paragraph num="(2)"> <text>If the Authority disapproved the plan, of the reasons for disapproval and recommendations on how the plan might be revised to make it approvable.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Subject to §G of this regulation, an approval or an approval with modifications by the Authority of a proposed management plan shall constitute designation of the proposed certified heritage area as a certified heritage area.</text> </paragraph> <paragraph num="G."> <text>During any one State fiscal year, the Authority may designate not more than two recognized heritage areas as certified heritage areas.</text> </paragraph> <paragraph num="H."> <text>The boundaries of a certified heritage area shall be:</text> <paragraph num="(1)"> <text>The boundaries of the proposed certified heritage area as identified in the geographic information system file submitted with the proposal for designation as a certified heritage area, as approved or approved with modifications by the Authority;</text> </paragraph> <paragraph num="(2)"> <text>Published in the Maryland Register by the Authority in the form of a Uniform Resource Locator (URL) to the geographic information system file; and</text> </paragraph> <paragraph num="(3)"> <text>Posted on the website of the Maryland Historical Trust in the form of a Uniform Resource Locator (URL) to the geographic information system file, a copy of which shall be sent electronically to the office of the county clerk of the county or counties in which the certified heritage area is located.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Revisions to Management Plans and Certified Heritage Area Boundaries."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Administrative revision” means a revision of or change to an approved management plan for a certified heritage area that relates to the administration of the heritage area by the heritage area management entity and does not revise or change the management plan’s themes, areas of focus, goals and objectives, or other programmatic components.</text> </paragraph> <paragraph num="(b)"> <text>“Programmatic revision” means a revision of or change to an approved management plan for a certified heritage area that revises or changes the management plan’s themes, areas of focus, goals and objectives, or other programmatic components.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Administrative Revisions to Approved Management Plans.</text> <paragraph num="(1)"> <text>A heritage area management entity for a certified heritage area may propose an administrative revision to the approved management plan for the heritage area by:</text> <paragraph num="(a)"> <text>Submitting the proposal to the Authority in writing; and</text> </paragraph> <paragraph num="(b)"> <text>Providing a copy of the proposal to each local jurisdiction located within the heritage area.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 90 days of receiving a proposal made under this section, the Authority shall:</text> <paragraph num="(a)"> <text>Complete its review of the proposal;</text> </paragraph> <paragraph num="(b)"> <text>Determine whether the proposal would adequately carry out the purposes of the Act;</text> </paragraph> <paragraph num="(c)"> <text>Approve, approve with modification, or disapprove the proposal; and</text> </paragraph> <paragraph num="(d)"> <text>Send written notice to the heritage area management entity of the action taken by the Authority on the proposal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Programmatic Revisions to Approved Management Plans; Certain Expansions of Certified Heritage Area Boundaries.</text> <paragraph num="(1)"> <text>A heritage area management entity for a certified heritage area may submit a proposal to:</text> <paragraph num="(a)"> <text>Make a programmatic revision to the approved management plan for a certified heritage area; or</text> </paragraph> <paragraph num="(b)"> <text>Amend or revise the boundaries of a certified heritage area to include property not contemplated in the approved management plan for inclusion in the certified heritage area.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a proposal submitted under §C(1) of this regulation, the proposal shall:</text> <paragraph num="(a)"> <text>Be approved by the heritage area management entity;</text> </paragraph> <paragraph num="(b)"> <text>Be approved by resolution, ordinance, or other appropriate authorization issued by the governing body of:</text> <paragraph num="(i)"> <text>For a revision to a management plan under §C(1)(a) of this regulation, each local jurisdiction with land area located within the certified heritage area; or</text> </paragraph> <paragraph num="(ii)"> <text>For an amendment or revision to a heritage area boundary under §C(1)(b) of this regulation, each local jurisdiction with land area located within the property proposed to be added to the certified heritage area;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For a proposed boundary amendment, include a geographic information system file of the revised boundary; and</text> </paragraph> <paragraph num="(d)"> <text>Be jointly submitted in writing to the Authority by the heritage are management entity and each local jurisdiction from which approval is required under §C(2)(b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Within 90 days of receiving a proposal under this section, the Authority shall:</text> <paragraph num="(a)"> <text>Hold at least one public hearing in the certified heritage area concerning the proposal;</text> </paragraph> <paragraph num="(b)"> <text>Determine whether the proposal would adequately carry out the purposes of the Act;</text> </paragraph> <paragraph num="(c)"> <text>Approve, approve with modification, or disapprove the proposal; and</text> </paragraph> <paragraph num="(d)"> <text>Send written notice to the heritage area management entity and each local jurisdiction with land area located within the certified heritage area of the action taken by the Authority on the proposal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Other Boundary Amendments.</text> <paragraph num="(1)"> <text>A proposal to amend or revise the boundary of a certified heritage area to either remove property from the heritage area or to add or include within the heritage area property that the approved management plan contemplates for inclusion shall be:</text> <paragraph num="(a)"> <text>Approved by the heritage area management entity;</text> </paragraph> <paragraph num="(b)"> <text>Approved by resolution, ordinance, or other appropriate authorization issued by the governing body of each local jurisdictions with land area located within the property proposed to be added to or removed from the certified heritage area; and</text> </paragraph> <paragraph num="(c)"> <text>Jointly submitted in writing to the Authority by the heritage area management entity and each such local jurisdiction, which submission shall include a geographic information system file of the revised boundary.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 90 days of receiving a proposal made under this section, the Authority shall:</text> <paragraph num="(a)"> <text>Determine whether the proposal would adequately carry out the purposes of the Act;</text> </paragraph> <paragraph num="(b)"> <text>Approve, approve with modifications, or disapprove the proposal; and</text> </paragraph> <paragraph num="(c)"> <text>Send written notice to the heritage area management entity and each local jurisdiction with land area located within the property proposed to be added to or removed from the certified heritage area of the action taken by the Authority on the proposal.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Effective Date of Revisions.</text> <paragraph num="(1)"> <text>A revision to an approved management plan approved by the Authority under either §B or C of this regulation is effective upon approval of the revision by the Authority.</text> </paragraph> <paragraph num="(2)"> <text>A boundary amendment or revision approved by the Authority under either §C or D this regulation is effective upon publication by the Authority in the Maryland Register of the Uniform Resource Locator (URL) to a geographic information system file for the revised boundary.</text> </paragraph> <paragraph num="(3)"> <text>A boundary amendment or revision approved by the Authority under this regulation shall be posted on the website of the Maryland Historical Trust in the form of a Uniform Resource Locator (URL) to the geographic information system file, a copy of which shall be sent electronically to the office of the county clerk of the county or counties in which the certified heritage area is located.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Changes to Certified Heritage Area Designations."> <paragraph num="A."> <text>The Authority may take action specified in §C of this regulation if the Authority finds that a local jurisdiction with land area located within a certified heritage area has:</text> <paragraph num="(1)"> <text>Either acted or failed to act in a manner that has had a substantial adverse impact upon a significant natural, recreational, cultural, or historic resource located within the heritage area; or</text> </paragraph> <paragraph num="(2)"> <text>Failed to effectively implement its role under the management plan.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before taking action under §C of this regulation, the Authority shall:</text> <paragraph num="(1)"> <text>Provide written notice to the local jurisdiction that:</text> <paragraph num="(a)"> <text>Includes the Authority’s findings under §A of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Informs the local jurisdiction of the actions the Authority might take under §C of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Includes corrective instructions, recommendations, or suggestions as appropriate; and</text> </paragraph> <paragraph num="(d)"> <text>Is sent by copy to the heritage area management entity and each other local jurisdiction with land area located within the certified heritage area;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provide the local jurisdiction 60 days to respond in writing to the Authority’s notice; and</text> </paragraph> <paragraph num="(3)"> <text>Either uphold, modify, or rescind the findings.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon a finding against a local jurisdiction under §A of this regulation that the Authority either upholds or modifies under §B of this regulation, the Authority may:</text> <paragraph num="(1)"> <text>Remove from the certified heritage area the land area of the local jurisdiction that is the subject of the finding; or</text> </paragraph> <paragraph num="(2)"> <text>After holding a public hearing in the certified heritage area, withdraw the Authority’s approval of the management plan for the certified heritage area.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If, under §C(1) of this regulation, the Authority removes a local jurisdiction from a certified heritage area, the Authority shall:</text> <paragraph num="(1)"> <text>Provide written notice of the removal to the heritage area management entity and each local jurisdiction with land area located within the heritage area; and</text> </paragraph> <paragraph num="(2)"> <text>Direct the remaining local jurisdictions in the certified heritage area to amend the management plan in accordance with Regulation .05D of this chapter to reflect the revised boundaries of the certified heritage area resulting from the removal.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If, under §C(2) of this regulation, the Authority withdraws approval of a management plan for a certified heritage area:</text> <paragraph num="(1)"> <text>The heritage area will no longer be designated as a certified heritage area;</text> </paragraph> <paragraph num="(2)"> <text>The heritage area will return to being designated as a recognized heritage area; and</text> </paragraph> <paragraph num="(3)"> <text>The Authority shall:</text> <paragraph num="(a)"> <text>Report the withdrawal of its approval of the management plan to the Governor and the General Assembly and include in the report a statement of the reasons for withdrawal; and</text> </paragraph> <paragraph num="(b)"> <text>Provide written notice of the withdrawal of approval to the heritage area management entity and each local jurisdiction with land area located within the heritage area.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Removal of a Heritage Area Management Entity."> <paragraph num="A."> <text>The Authority may remove an entity from its role as the heritage area management entity for a certified heritage area if the Authority finds that the entity has:</text> <paragraph num="(1)"> <text>Either acted or failed to act in a manner that has had a substantial adverse impact upon a significant natural, recreational, cultural, or historic resource located within the heritage area;</text> </paragraph> <paragraph num="(2)"> <text>Failed to effectively implement the management plan for the heritage area; or</text> </paragraph> <paragraph num="(3)"> <text>In any way misused, mismanaged, or misappropriated funds received from the Authority.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Before taking action under §A of this regulation, the Authority shall:</text> <paragraph num="(1)"> <text>Provided written notice to the heritage area management entity and to each local jurisdiction with land area located within the certified heritage area that:</text> <paragraph num="(a)"> <text>Includes the Authority’s findings under §A of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Informs of the actions the Authority might take under §A of this regulation; and</text> </paragraph> <paragraph num="(c)"> <text>Includes corrective instructions, recommendations, or suggestions as appropriate;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Provide the heritage area management entity 60 days to respond in writing to the Authority’s notice; and</text> </paragraph> <paragraph num="(3)"> <text>Either uphold, modify, or rescind the findings.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If, under §A of this regulation, the Authority removes an entity from its role as the heritage area management entity for a certified heritage area, the Authority shall:</text> <paragraph num="(1)"> <text>Provide written notice to the entity and each local jurisdiction with land area located within the certified heritage area of the removal; and</text> </paragraph> <paragraph num="(2)"> <text>Discontinue for all purposes under this subtitle the Authority’s recognition of the entity as the heritage area management entity for the certified heritage area.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Within 90 days of receiving notice of a removal under §C(1) of this regulation or of a disapproval under §E(2) of this regulation, the local jurisdictions with land area located within the certified heritage area shall:</text> <paragraph num="(1)"> <text>Agree upon a new entity to serve as the heritage area management entity; and</text> </paragraph> <paragraph num="(2)"> <text>Send to the Authority:</text> <paragraph num="(a)"> <text>The identity of the new entity and its organizational structure;</text> </paragraph> <paragraph num="(b)"> <text>Information sufficient for the Authority to assess the capability and capacity of the new entity to serve as the heritage area management entity, including its relations with agencies of State and local government; and</text> </paragraph> <paragraph num="(c)"> <text>A resolution, ordinance, or other appropriate authorization issued by the governing body of each local jurisdiction establishing the local jurisdiction’s support for the new entity to serve as the heritage area management entity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Within 90 days of receiving the information required under §D(2) of this regulation, the Authority shall:</text> <paragraph num="(1)"> <text>Either approve or disapprove of the new entity as the heritage area management entity; and</text> </paragraph> <paragraph num="(2)"> <text>Provide written notice to the local jurisdictions of the Authority’s approval or disapproval.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Authority may withdraw its approval of a management plan for a certified heritage area as provided for in Regulation .06 of this chapter if:</text> <paragraph num="(1)"> <text>Upon removal by the Authority of a heritage area management entity, the local jurisdictions with land area located within a certified heritage area fail to comply with §D of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>The Authority disapproves of a new entity under §E of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Program Administration."> <paragraph num="A."> <text>The Authority may adopt written policies or guidelines related to or governing the criteria for and administration of the procedures for designating certified heritage areas and shall post any such adopted policies or guidelines on the website hosted by the Maryland Historical Trust.</text> </paragraph> <paragraph num="B."> <text>A determination of the Authority made under Regulations .04, .05, .06, or .07 of this chapter is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Waiver."> <text>The Authority may waive or vary a provision of this chapter if the waiver or variance is consistent with the Act and, as determined by the Authority, application of the provision in a specific instance or case, or in an emergency situation, would be inequitable or contrary to the purposes of the Act.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="False Statements."> <text>A person who knowingly makes or causes to be made a false statement submitted or made to the Authority in connection with a proposal for designation of a certified heritage area is subject to any penalties authorized by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6) and (12), 13-1111, and 13-1113, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 20, 1997 (24:21 Md. R. 1452)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective December 25, 2000 (27:25 Md. R.2283); August 18, 2003 (30:16 Md. R. 1076)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective December 25, 2000 (27:25 Md. R. 2283); June 10, 2002 (29:11 Md. R. 890); August 18, 2003 (30:16 Md. R. 1076); April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective September 7, 1998 (25:18 Md. R. 1437); December 25, 2000 (27:25 Md. R. 2283)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective September 7, 1998 (25:18 Md. R. 1437); December 25, 2000 (27:25 Md. R. 2283)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A amended effective September 7, 1998 (25:18 Md. R. 1437); December 25, 2000 (27:25 Md. R. 2283)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended effective December 25, 2000 (27:25 Md. R. 2283)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 repealed and new Regulations .01—.10 adopted effective November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> <chapter num="03" heading="Maryland Heritage Areas Grant Program"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>This chapter sets forth the policies, procedures, and authorizations for administering the Maryland Heritage Areas Grant Program, established within the Maryland Heritage Areas Authority, which provides grants from the Maryland Heritage Areas Authority Financing Fund.</text> </paragraph> <paragraph num="B."> <text>The objective of the Grant Program is to provide a source of funding, including grants to local jurisdictions and other appropriate entities, to develop management plans for recognized heritage areas, assist the operations of heritage area management entities, and undertake capital and non-capital projects that will assist and encourage preservation, tourism, and other economic development within certified heritage areas.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Capital project” means a project to acquire, develop, preserve, rehabilitate, or restore either real property or tangible personal property that has a useful life of at least 15 years.</text> </paragraph> <paragraph num="(4)"> <text>“Certified heritage area” means a recognized heritage area that has been designated a certified heritage area in accordance with the Act and Chapter .02 of this subtitle.</text> </paragraph> <paragraph num="(5)"> <text>“Fund” means the Maryland Heritage Areas Authority Financing Fund established by the Act.</text> </paragraph> <paragraph num="(6)"> <text>“Grant” means an award of financial assistance from the Fund.</text> </paragraph> <paragraph num="(7)"> <text>“Grant Program” means the Maryland Heritage Areas Grant Program of the Authority established by this chapter as authorized under the Act.</text> </paragraph> <paragraph num="(8)"> <text>“Grantee” means the recipient of a grant.</text> </paragraph> <paragraph num="(9)"> <text>“Heritage area” means a contiguous or noncontiguous developed geographic area of public and private uses that:</text> <paragraph num="(a)"> <text>Can range in size from as small as a portion of a county or municipal corporation or as large as a regional area;</text> </paragraph> <paragraph num="(b)"> <text>Has a coherent and cohesive special character;</text> </paragraph> <paragraph num="(c)"> <text>Is distinguished by a concentration of natural, recreational, cultural, and historic resources of Statewide significance that have played a vital role in the historic life and development of the area and contribute to the public through interpretive, educational, and recreational uses; and</text> </paragraph> <paragraph num="(d)"> <text>May include traditional parks and historic places or property.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Heritage area management entity” means a nonprofit organization or agency of either State or local government that is or will be responsible for coordinating development of a management plan for a recognized heritage area or is responsible for implementing the management plan for a certified heritage area.</text> </paragraph> <paragraph num="(11)"> <text>“Local jurisdiction” means any of the 23 counties of the State, the City of Baltimore, any municipal corporation in the State that is subject to the provisions of Article XI-E of the Maryland Constitution, or any of their duly authorized agencies or instrumentalities.</text> </paragraph> <paragraph num="(12)"> <text>“Management plan” means a document prepared and approved in accordance with the Act and COMAR 14.29.02, that includes a comprehensive strategy expressed in words, maps, illustrations, or other media for planning, implementing, and achieving the goals and objectives for the heritage area.</text> </paragraph> <paragraph num="(13)"> <text>“Noncapital project” means a project that is not a capital project and involves:</text> <paragraph num="(a)"> <text>The development or presentation of interpretive exhibits, materials, or other products intended to further the educational or recreational objectives of a certified heritage area; or</text> </paragraph> <paragraph num="(b)"> <text>Planning, design, interpretation, marketing, or programming activities intended to encourage revitalization of, or reinvestment in, a certified heritage area or its resources.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Nonprofit organization” means a corporation, foundation, governmental entity, or other legal entity, no part of the net earnings of which inures to the benefit of a private shareholder or individual holding an interest in the entity.</text> </paragraph> <paragraph num="(15)"> <text>“Recognized heritage area” means a heritage area designated a recognized heritage area in accordance with the Act and COMAR 14.29.01.</text> </paragraph> <paragraph num="(16)"> <text>“Trust” means the Maryland Historical Trust established under State Finance and Procurement Article, §5A-310, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligible Grantees and Eligible Activities."> <paragraph num="A."> <text>An entity is eligible for a grant under the Grant Program if:</text> <paragraph num="(1)"> <text>The entity is a:</text> <paragraph num="(a)"> <text>Local jurisdiction;</text> </paragraph> <paragraph num="(b)"> <text>Agency or unit of Maryland State Government;</text> </paragraph> <paragraph num="(c)"> <text>Agency or unit of the federal government; or</text> </paragraph> <paragraph num="(d)"> <text>Nonprofit organization that:</text> <paragraph num="(i)"> <text>Is in good standing and qualified to do business in Maryland; and</text> </paragraph> <paragraph num="(ii)"> <text>Has the legal capacity and all necessary legal authority to be obligated by the grant; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a grant for a noncapital project or a capital project, the entity is authorized to apply for the grant by the heritage area management entity for the certified heritage area that will benefit from the grant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Authority may provide a grant to an entity eligible under §A of this regulation if the grant is for purposes of funding:</text> <paragraph num="(1)"> <text>Development of a management plan;</text> </paragraph> <paragraph num="(2)"> <text>The operations and management of a heritage area management entity;</text> </paragraph> <paragraph num="(3)"> <text>A noncapital project that:</text> <paragraph num="(a)"> <text>Will be undertaken within a certified heritage area; and</text> </paragraph> <paragraph num="(b)"> <text>Will further or complete an activity that is:</text> <paragraph num="(i)"> <text>Identified in the management plan for the certified heritage area; or</text> </paragraph> <paragraph num="(ii)"> <text>Consistent with goals, objectives, strategies, or actions outlined in the management plan or other planning document applicable to or utilized by the certified heritage area;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Marketing of a heritage area by either:</text> <paragraph num="(a)"> <text>The heritage area management entity; or</text> </paragraph> <paragraph num="(b)"> <text>The tourism office or agency for a local jurisdiction located within the heritage area;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A block grant to a heritage area management entity that the entity will exclusively use to fund subgrants for noncapital projects in accordance with policies implemented by the Authority;</text> </paragraph> <paragraph num="(6)"> <text>A capital project that:</text> <paragraph num="(a)"> <text>Will be undertaken within a certified heritage area; and</text> </paragraph> <paragraph num="(b)"> <text>Will further or complete an activity that is:</text> <paragraph num="(i)"> <text>Identified in the management plan for the certified heritage area; or</text> </paragraph> <paragraph num="(ii)"> <text>Consistent with goals, objectives, strategies, or actions outlined in the management plan or other planning document applicable to or utilized by the certified heritage area; or</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>Other activities as may be approved by the Authority.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Grant Application Procedures."> <paragraph num="A."> <text>For any year during which money is available in the Fund to make grants from the Grant Program, the Authority shall:</text> <paragraph num="(1)"> <text>Establish grant application procedures;</text> </paragraph> <paragraph num="(2)"> <text>Establish selection criteria that the Authority will utilize when awarding grants;</text> </paragraph> <paragraph num="(3)"> <text>Establish grant application deadlines;</text> </paragraph> <paragraph num="(4)"> <text>Establish minimum and maximum amounts for awards of individual grants; and</text> </paragraph> <paragraph num="(5)"> <text>Publish on the Trust’s website the grant application procedures, selection criteria, grant application deadline, and minimum and maximum award amounts.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An application for a grant shall be made on forms prescribed by the Authority and posted on the Trust’s website.</text> </paragraph> <paragraph num="C."> <text>A grant application shall include information and documentation that:</text> <paragraph num="(1)"> <text>Establishes that the applicant is an eligible grantee as provided in Regulation .03A of this chapter evidenced by copies of the applicant’s organizational documents, including as applicable its articles of incorporation and bylaws, its articles of organization and operating agreement, its certificate of limited partnership and limited partnership agreement, or its partnership or joint venture agreement;</text> </paragraph> <paragraph num="(2)"> <text>Describes in detail the proposed activity;</text> </paragraph> <paragraph num="(3)"> <text>Identifies the estimated or actual cost of the proposed activity evidenced by contractor bids, proposals, or other good faith estimates;</text> </paragraph> <paragraph num="(4)"> <text>Identifies in a proposed budget all proposed sources and uses of funding for the activity;</text> </paragraph> <paragraph num="(5)"> <text>Establishes the applicant’s capability and readiness to initiate and undertake the activity and to complete the activity within an established time frame;</text> </paragraph> <paragraph num="(6)"> <text>Establishes the applicant’s financial capacity to pay for costs of the proposed activity that will not be funded by the grant;</text> </paragraph> <paragraph num="(7)"> <text>Identifies the sources, forms, and amounts for the matching contribution required under Regulation .06B of this chapter;</text> </paragraph> <paragraph num="(8)"> <text>Details the applicant’s administrative capabilities, including the applicant’s capacity to manage the proposed activity; and</text> </paragraph> <paragraph num="(9)"> <text>May otherwise be required by the Authority as specified in the grant application form.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Grant Application Review and Approval."> <paragraph num="A."> <text>For each grant application submitted prior to the grant application deadline established by the Authority under Regulation .04A of this chapter, Authority staff shall review the application and determine if:</text> <paragraph num="(1)"> <text>The applicant is an eligible grantee under Regulation .03A of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>The activity for which the applicant seeks grant funding is an eligible activity under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>For each application that Authority staff determined under §A of this regulation that either the grantee or the project is ineligible for a grant, the Authority shall promptly send written notice of such determination to the grant applicant.</text> </paragraph> <paragraph num="C."> <text>For each grant application that Authority staff determines under §A of this regulation is eligible for a grant, staff shall:</text> <paragraph num="(1)"> <text>Evaluate and rank the application competitively with all other eligible applications in accordance with the selection criteria established by the Authority under Regulation .04A of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Make a funding recommendation based upon the evaluation and ranking; and</text> </paragraph> <paragraph num="(3)"> <text>Forward the funding recommendation to the Authority.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After receipt of Authority staff’s recommendations made under §C of this regulation, the Authority shall:</text> <paragraph num="(1)"> <text>Review and consider staff’s recommendations;</text> </paragraph> <paragraph num="(2)"> <text>Approve or disapprove each grant application; and</text> </paragraph> <paragraph num="(3)"> <text>For each grant application approved, authorize an amount of funding for the grant:</text> <paragraph num="(a)"> <text>That is within the limitations established under Regulation .06 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Which may be an amount less than the amount requested by the applicant.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Authority staff shall promptly notify each grant applicant of the action taken by the Authority under §D of this regulation.</text> </paragraph> <paragraph num="F."> <text>A decision by the Authority made under this regulation on an application for a grant is final and is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Grant Limitations, Terms, and Conditions."> <paragraph num="A."> <text>Limitations. The amount of a grant may not:</text> <paragraph num="(1)"> <text>Exceed 50 percent of the total cost of the proposed activity, as evidenced by contractor bids, proposals, or other good faith estimates or budgets provided by the applicant; or</text> </paragraph> <paragraph num="(2)"> <text>Fall outside the minimum or maximum grant amounts established by the Authority.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Matching Requirements. A grantee shall make a matching contribution to an activity funded by a grant:</text> <paragraph num="(1)"> <text>In an amount not less than the amount of the grant;</text> </paragraph> <paragraph num="(2)"> <text>That consists of either cash, an equivalent dollar value of in-kind contributions, or a combination thereof; and</text> </paragraph> <paragraph num="(3)"> <text>That is from sources and is in substance, form, and amount acceptable to the Authority.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Grant Agreement.</text> <paragraph num="(1)"> <text>No funds shall be disbursed from the Fund to a grantee unless the grantee has first executed a grant agreement in form and substance acceptable to the Authority.</text> </paragraph> <paragraph num="(2)"> <text>A grant agreement shall establish all terms and conditions of the grant, including:</text> <paragraph num="(a)"> <text>The amount of the grant;</text> </paragraph> <paragraph num="(b)"> <text>The matching contribution requirements;</text> </paragraph> <paragraph num="(c)"> <text>A scope of work for the activity funded by the grant;</text> </paragraph> <paragraph num="(d)"> <text>A budget for the activity funded by the grant;</text> </paragraph> <paragraph num="(e)"> <text>A grant disbursement schedule;</text> </paragraph> <paragraph num="(f)"> <text>Special conditions on grant disbursement as may be required by the Authority;</text> </paragraph> <paragraph num="(g)"> <text>A project timeline and deadlines for expenditures of grant funds;</text> </paragraph> <paragraph num="(h)"> <text>Insurance requirements, as may be applicable;</text> </paragraph> <paragraph num="(i)"> <text>Historic preservation requirements, as may be applicable;</text> </paragraph> <paragraph num="(j)"> <text>Reporting requirements;</text> </paragraph> <paragraph num="(k)"> <text>Defaults and remedies; and</text> </paragraph> <paragraph num="(l)"> <text>Other terms and conditions as may be required by the Authority.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For a capital project funded by a grant that will affect property that is listed or eligible for listing on the Maryland Register of Historic Properties, the grant agreement shall provide that:</text> <paragraph num="(a)"> <text>The plans and specifications for the project must be reviewed and approved by the Trust prior to the grantee undertaking any work specified in the grant agreement;</text> </paragraph> <paragraph num="(b)"> <text>All aspects of the project must conform to historic preservation standards established or applied by the Trust, including, but not limited to, the Secretary of the Interior’s Standards for Treatment of Historic Properties;</text> </paragraph> <paragraph num="(c)"> <text>The grantee must permit staff from the Trust to inspect ongoing construction to ensure that the grantee is undertaking the project in conformance with the applicable historic preservations standards and requirements; and</text> </paragraph> <paragraph num="(d)"> <text>If required by the Trust, the grantee shall:</text> <paragraph num="(i)"> <text>Convey or cause to be conveyed to the Trust for recording in the applicable land records a deed of easement, in form, substance, and duration satisfactory to the Director of the Trust, for preservation of the historic real property and the improvements and the settings thereon affected by the project; or</text> </paragraph> <paragraph num="(ii)"> <text>Enter into an agreement with the Trust, or cause an agreement with the Trust, that obligates preservation and maintenance of the historic property affected by the project, in form, substance, and duration satisfactory to the Director of the Trust.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Grant Administration."> <paragraph num="A."> <text>Books, Accounts, and Records.</text> <paragraph num="(1)"> <text>A grantee shall maintain those books, accounts, and records related to a grant or an activity funded by a grant that the Authority from time to time may require, and shall cause the grantee’s contractors and subcontractors to do the same.</text> </paragraph> <paragraph num="(2)"> <text>A grantee shall file with the Authority financial and other reports as the Authority may from time to time require.</text> </paragraph> <paragraph num="(3)"> <text>Books, accounts, and records required to be maintain under this section shall be:</text> <paragraph num="(a)"> <text>Open for inspection by representatives of the Authority or the State during reasonable working hours, before, during, or after the period of time during which the grant proceeds are expended; and</text> </paragraph> <paragraph num="(b)"> <text>Maintained and made available for inspection for 3 years after either the date of grantee’s final expenditure of grant proceeds or the termination of the contractual relationship between the Authority and the grantee, whichever is later.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A grantee shall, upon request of the Authority or the State, make the grantee’s administrative offices and personnel, whether full-time, part-time, consultants, or volunteers, available to discuss or address matters concerning administration of a grant or of an activity funded by a grant.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Inspections. The Authority may conduct periodic inspections during the undertaking of an activity funded by a grant to assure that the activity is progressing in accordance with all terms and conditions of the grant agreement or other requirements of the Authority.</text> </paragraph> <paragraph num="C."> <text>Reports. A grantee shall submit a final report, and interim reports as may be required by the Authority, that documents progress and evaluates effectiveness of the activity funded by a grant.</text> </paragraph> <paragraph num="D."> <text>Nondiscrimination.</text> <paragraph num="(1)"> <text>A grantee may not discriminate on the basis of age (except with respect to residents in elderly projects), race, color, religion, national origin, sex, marital status, or physical or mental handicap in any aspect of an activity financed or assisted under the Grant Program or in any aspect of employment by either a grantee or a contractor for the activity.</text> </paragraph> <paragraph num="(2)"> <text>A grantee shall comply with all applicable federal, State, and local laws, and Authority policies and programs, regarding discrimination and equal opportunity in employment, housing, and credit practices, including:</text> <paragraph num="(a)"> <text>Titles VI and VII of the Civil Rights Act of 1964, as amended;</text> </paragraph> <paragraph num="(b)"> <text>Title VIII of the Civil Rights Act of 1968, as amended;</text> </paragraph> <paragraph num="(c)"> <text>The Governor's Code of Fair Practices, as amended; and</text> </paragraph> <paragraph num="(d)"> <text>The Authority’s Minority Business Enterprise Program, as amended, if the grantee does not have a minority business participation program which is acceptable to the Authority.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Grant Program Administration."> <paragraph num="A."> <text>Except for waivers under Regulation .09 of this chapter, any action or decision required or permitted to be taken or made by the Authority under this chapter may be taken or made by the Authority’s designee.</text> </paragraph> <paragraph num="B."> <text>The Authority may terminate a grant or refuse to make additional disbursements under a grant agreement if the Authority finds that the grantee is not in compliance with a requirement of the Grant Program or a term of the grant agreement.</text> </paragraph> <paragraph num="C."> <text>The Authority may adopt written policies or guidelines related to administration of the Grant Program and shall post any such adopted policies or guidelines on the Trust’s website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Waiver."> <text>The Authority may waive or vary a provision of this chapter if the waiver or variance is consistent with the Act and, as determined by the Authority, application of the provision in a specific instance or case, or in an emergency situation, would be inequitable or contrary to the purposes of the Act.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="False Statements."> <text>A person who knowingly makes or causes to be made a false statement submitted or made to the Authority in connection with an application for a grant or affecting an existing grant is subject to any penalties authorized by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6) and (12), 13-1111(b), 13-1113, and 13-1114, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 25, 2000 (27:25 Md. R. 2283)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05G amended effective October 24, 2005 (32:21 Md. R. 1709)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 25, 2004 (31:21 Md. R. 1545)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 repealed and new Regulation .06 adopted effective February 12, 2018 (45:3 Md. R. 157)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.10 repealed and new Regulations .01—.10 adopted effective November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> <chapter num="04" heading="Maryland Heritage Areas Loan Program"> <regulation prefix="Regulation" num=".01" heading="General."> <paragraph num="A."> <text>This chapter sets forth the policies, procedures, and authorizations for administering the Maryland Heritage Areas Loan Program, established within the Maryland Heritage Area Authority, which provides loans from the Maryland Heritage Areas Authority Financing Fund.</text> </paragraph> <paragraph num="B."> <text>The objective of the Loan Program is to provide a source of funding, including loans to local jurisdictions or other appropriate entities, to undertake projects that will assist and encourage preservation, tourism, and other economic development within certified heritage areas.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(3)"> <text>“Borrower” means the recipient of a loan.</text> </paragraph> <paragraph num="(4)"> <text>“Business entity” means a corporation, limited liability company, association, partnership, joint venture, or other legally organized entity.</text> </paragraph> <paragraph num="(5)"> <text>“Capital project” means a project to acquire, develop, preserve, rehabilitate, or restore either real property or tangible personal property that has a useful life of at least 15 years.</text> </paragraph> <paragraph num="(6)"> <text>“Certified heritage area” means a recognized heritage area that has been designated a certified heritage area in accordance with the Act and COMAR 14.29.02.</text> </paragraph> <paragraph num="(7)"> <text>“Fund” means the Maryland Heritage Areas Authority Financing Fund established by the Act.</text> </paragraph> <paragraph num="(8)"> <text>“Heritage area” means a contiguous or noncontiguous developed geographic area of public and private uses that:</text> <paragraph num="(a)"> <text>Can range in size from as small as a portion of a county or municipal corporation to as large as a regional area;</text> </paragraph> <paragraph num="(b)"> <text>Has a coherent and cohesive special character;</text> </paragraph> <paragraph num="(c)"> <text>Is distinguished by a concentration of natural, recreational, cultural, and historic resources of Statewide significance that have played a vital role in the historic life and development of the area and contribute to the public through interpretive, educational, and recreational uses; and</text> </paragraph> <paragraph num="(d)"> <text>May include traditional parks and historic places or property.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Heritage area management entity” means a nonprofit organization or agency of either State or local government that is or will be responsible for coordinating development of a management plan for a recognized heritage area or is responsible for implementing the management plan for a certified heritage area.</text> </paragraph> <paragraph num="(10)"> <text>“Local jurisdiction” means any of the 23 counties of the State, the City of Baltimore, any municipal corporation in the State that is subject to the provisions of Article XI-E of the Maryland Constitution, or any of their duly authorized agencies or instrumentalities.</text> </paragraph> <paragraph num="(11)"> <text>“Loan” means a loan made from the Fund.</text> </paragraph> <paragraph num="(12)"> <text>“Loan documents” means the promissory note, loan agreement, security instruments and other documents between a borrower and the Authority which evidence the terms and conditions of a loan.</text> </paragraph> <paragraph num="(13)"> <text>“Loan Program” means the Maryland Heritage Areas Loan Program of the Authority established by this chapter as authorized under the Act.</text> </paragraph> <paragraph num="(14)"> <text>“Management plan” means a document prepared and approved in accordance with the Act and COMAR 14.29.02, that includes a comprehensive strategy expressed in words, maps, illustrations, or other media for planning, implementing, and achieving the goals and objectives for the heritage area.</text> </paragraph> <paragraph num="(15)"> <text>“Nonprofit organization” means a corporation, foundation, governmental entity, or other legal entity, no part of the net earnings of which inure to the benefit of a private shareholder or individual holding an interest in the entity.</text> </paragraph> <paragraph num="(16)"> <text>“Trust” means the Maryland Historical Trust established under State Finance and Procurement Article, §5A-310, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligible Borrowers and Eligible Activities."> <paragraph num="A."> <text>An entity is eligible to receive a loan under the Program if the entity:</text> <paragraph num="(1)"> <text>Is a:</text> <paragraph num="(a)"> <text>Local jurisdiction;</text> </paragraph> <paragraph num="(b)"> <text>Nonprofit organization or a business entity that:</text> <paragraph num="(i)"> <text>Is in good standing and qualified to do business in Maryland; and</text> </paragraph> <paragraph num="(ii)"> <text>Has the legal capacity and all necessary legal authority to be obligated by the loan; or</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>An individual who has the legal capacity and all necessary legal authority to be obligated by the loan; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Is authorized to apply for the loan by the heritage area management entity for the certified heritage area that will benefit from the loan.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Authority may provide a loan to an entity eligible under §A of this regulation if the loan is for purposes of funding:</text> <paragraph num="(1)"> <text>An activity that will:</text> <paragraph num="(a)"> <text>Be undertaken within a certified heritage area; and</text> </paragraph> <paragraph num="(b)"> <text>Further or complete an activity identified in the management plan for the certified heritage area; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Is:</text> <paragraph num="(a)"> <text>A capital project;</text> </paragraph> <paragraph num="(b)"> <text>The purchase of capital equipment, furnishings, or inventory; or</text> </paragraph> <paragraph num="(c)"> <text>Working capital to be used in conjunction with a capital project.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>For an activity that involves improvement to leasehold property, the remaining term of the lease at the time the loan is made must not be less than the term of the loan.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Loan Application Procedures."> <paragraph num="A."> <text>An entity eligible to receive a loan under Regulation .03A of this chapter may apply to the Authority for a loan to fund an activity eligible under Regulation .03B of this chapter.</text> </paragraph> <paragraph num="B."> <text>For reasons or circumstances determined appropriate or necessary by the Authority, the Authority may at its discretion:</text> <paragraph num="(1)"> <text>Establish deadlines for acceptance of loan applications;</text> </paragraph> <paragraph num="(2)"> <text>Refuse to accept loan applications; and</text> </paragraph> <paragraph num="(3)"> <text>For a loan application accepted by the Authority:</text> <paragraph num="(a)"> <text>Hold the Authority’s consideration of the application in abeyance; or</text> </paragraph> <paragraph num="(b)"> <text>Decide not to consider the loan application.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Application. A loan application shall:</text> <paragraph num="(1)"> <text>Be made on forms prescribed by the Authority;</text> </paragraph> <paragraph num="(2)"> <text>Establish that the applicant is an eligible borrower as provided in Regulation .03A of this chapter evidenced by copies of its organizational documents, including as applicable its articles of incorporation and bylaws, its articles of organization and operating agreement, its certificate of limited partnership and limited partnership agreement, or its partnership or joint venture agreement, and evidence of being in good standing and qualified to do business in the State;</text> </paragraph> <paragraph num="(3)"> <text>Describe in detail the proposed activity;</text> </paragraph> <paragraph num="(4)"> <text>Identify the estimated or actual cost of the proposed activity evidenced by contractor bids, proposals, or other good faith estimates;</text> </paragraph> <paragraph num="(5)"> <text>Identify in a proposed budget all proposed sources and uses of funding for the activity;</text> </paragraph> <paragraph num="(6)"> <text>Establish the applicant’s capability and readiness to initiate and undertake the activity and to complete the activity within an established time frame;</text> </paragraph> <paragraph num="(7)"> <text>Identify the property that will benefit from or be assisted by the loan;</text> </paragraph> <paragraph num="(8)"> <text>Identify the ownership of the property and any lessees of the property;</text> </paragraph> <paragraph num="(9)"> <text>Include information sufficient for the Authority to evaluate:</text> <paragraph num="(a)"> <text>The activity’s consistency with the goals of the management plan;</text> </paragraph> <paragraph num="(b)"> <text>The historical or cultural significance of the property;</text> </paragraph> <paragraph num="(c)"> <text>The current and proposed conditions and uses of the property;</text> </paragraph> <paragraph num="(d)"> <text>The extent to which the activity will impact use of the property;</text> </paragraph> <paragraph num="(e)"> <text>The applicant’s ability to repay the loan, including identification of sources of revenue that will be used to repay the loan;</text> </paragraph> <paragraph num="(f)"> <text>If the activity involves a leasehold property, that the activity is authorized under the lease and the remaining lease term is equal to the proposed term of the loan; and</text> </paragraph> <paragraph num="(g)"> <text>If the activity involves acquisition of property, that the applicant has the authority to purchase the property under a valid purchase option agreement, purchase and sale agreement, or other evidence satisfactory to the Authority; and</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Include other information as may be required by the Authority.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Application Fee. The Authority may require a loan applicant to pay an application fee to cover some portion of the cost of processing the application and the loan.</text> </paragraph> <paragraph num="E."> <text>Loan Application Review and Processing.</text> <paragraph num="(1)"> <text>After receipt of an application for a loan that the Authority has accepted and will consider for potential funding, staff of the Authority:</text> <paragraph num="(a)"> <text>Will conduct an initial assessment for the completeness of the information required under §C of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>May conduct an inspection of the property for any assessment purpose related to the review and processing of the application; and</text> </paragraph> <paragraph num="(c)"> <text>Shall notify the applicant in writing of any missing information required under §C of this regulation or of other requirements that the applicant must satisfy in order for the application to be complete.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Authority shall not consider for approval a loan application for which the applicant has not satisfied all requirements.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Withdrawal of Application.</text> <paragraph num="(1)"> <text>An applicant may withdraw an application for a loan at any time before closing of the loan by sending written notice to the Authority.</text> </paragraph> <paragraph num="(2)"> <text>An applicant who withdraws an application shall be responsible for all costs, other than the Authority’s internal processing costs, incurred by the Authority to process the application, including, but not limited to, costs to obtain credit reports or appraisals.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Loan Application Evaluation and Approval."> <paragraph num="A."> <text>The Authority shall review and evaluate a completed loan application accepted under Regulation .04 of this chapter in accordance with selection criteria established by the Authority, which criteria may include:</text> <paragraph num="(1)"> <text>The viability of the activity for which the loan is sought;</text> </paragraph> <paragraph num="(2)"> <text>The applicant’s readiness to commence the activity and complete it within an established time frame;</text> </paragraph> <paragraph num="(3)"> <text>The level of urgency of the applicant’s need for a loan to complete the activity;</text> </paragraph> <paragraph num="(4)"> <text>The activity’s consistency with the goals of the management plan;</text> </paragraph> <paragraph num="(5)"> <text>The extent to which the activity will have a positive impact on the certified heritage area;</text> </paragraph> <paragraph num="(6)"> <text>The extent to which the activity, once completed, might serve as a model for other projects within certified heritage areas;</text> </paragraph> <paragraph num="(7)"> <text>The applicant’s administrative capability, including the applicant’s capacity to manage the activity;</text> </paragraph> <paragraph num="(8)"> <text>The applicant’s ability to repay the loan;</text> </paragraph> <paragraph num="(9)"> <text>The availability of private or non-State funds for the activity; and</text> </paragraph> <paragraph num="(10)"> <text>Such additional criteria as the Authority considers appropriate.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Following review and evaluation under §A of this regulation, the Authority shall:</text> <paragraph num="(1)"> <text>Either approve, approve with modification, or disapprove the loan;</text> </paragraph> <paragraph num="(2)"> <text>If approved, determine a level of funding for the loan, which may be in an amount less than the amount applied for by the applicant; and</text> </paragraph> <paragraph num="(3)"> <text>Notify the applicant in writing of the action taken by the Authority on the application.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For a loan approved under §B of this regulation, the Authority may issue to the applicant a commitment letter for the loan that sets forth:</text> <paragraph num="(1)"> <text>The amount of the loan;</text> </paragraph> <paragraph num="(2)"> <text>Terms and conditions under which the loan will be made, which shall at a minimum include the terms and conditions set forth in Regulation .06 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>A time limit within which execution of loan documents shall occur before the Authority will withdraw its commitment, which time limit the Authority may extend at its sole discretion.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A decision of the Authority to approve or disapprove a loan is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="E."> <text>Loan closing shall be scheduled at a time and place acceptable to the applicant, Authority staff, and the Office of the Attorney General.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Loan Terms and Conditions."> <paragraph num="A."> <text>General Requirements. A loan shall, as necessary and required by the Authority, include terms and conditions consistent with this section.</text> <paragraph num="(1)"> <text>Maximum Loan Amount. A loan may be in an amount not to exceed an 80 percent loan to value ratio based on the appraised value of the property assisted by the loan, or other property offered as collateral for the loan, less any preexisting indebtedness secured by a lien on the assisted property or the collateral property.</text> </paragraph> <paragraph num="(2)"> <text>Interest Rate. The rate of interest charged by the Authority against the loan:</text> <paragraph num="(a)"> <text>Shall be, as established from time to time by the Authority, consistent with applicable federal regulations governing State borrowing; and</text> </paragraph> <paragraph num="(b)"> <text>May be either lower or higher than rates charged for other loans made by the Authority.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Insurance. The borrower shall cause the property assisted by the loan or securing the loan to be insured against loss or damage by fire and other hazards, casualties, and contingencies as may be required from time to time by the Authority in amounts satisfactory to the Authority, as described in §B of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Term. The loan shall have a term established by the Authority that is based upon the use and amount of the loan.</text> </paragraph> <paragraph num="(5)"> <text>Repayment.</text> <paragraph num="(a)"> <text>Except as otherwise provided in §A(5)(b) of this regulation, a single monthly payment shall be charged, which shall be applied first to late charges, then the Authority’s enforcement and collection expenses, if applicable, then to interest, and then to principal, in that order.</text> </paragraph> <paragraph num="(b)"> <text>At the discretion of the Authority, repayments of either principal or interest, or of both principal and interest, may be deferred, subject to the following additional requirements:</text> <paragraph num="(i)"> <text>The loan term may provide for deferred payments of either principal or interest, or of both principal and interest.</text> </paragraph> <paragraph num="(ii)"> <text>The deferred terms shall provide for repayment of deferred amounts at the loan maturity date, any earlier date established by the Authority, or upon any sale or other transfer of the property securing the loan.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The Authority may charge interest on deferred interest payments.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Late Charge. Late charges may be imposed by the Authority, as permitted by law.</text> </paragraph> <paragraph num="(7)"> <text>Security. The loan shall be secured, at the discretion of the Authority, by collateral acceptable to the Authority, which may include:</text> <paragraph num="(a)"> <text>Cash escrow;</text> </paragraph> <paragraph num="(b)"> <text>A letter of credit;</text> </paragraph> <paragraph num="(c)"> <text>A pledge of depository accounts;</text> </paragraph> <paragraph num="(d)"> <text>A pledge of accounts receivable;</text> </paragraph> <paragraph num="(e)"> <text>An assignment of income;</text> </paragraph> <paragraph num="(f)"> <text>A security interest in machinery and equipment;</text> </paragraph> <paragraph num="(g)"> <text>A mortgage or deed of trust on the real property assisted by the loan;</text> </paragraph> <paragraph num="(h)"> <text>A mortgage or deed of trust on other real property satisfactory to the Authority;</text> </paragraph> <paragraph num="(i)"> <text>Guarantees of repayment from guarantors acceptable to the Authority; or</text> </paragraph> <paragraph num="(j)"> <text>Any other form of security or collateral acceptable to the Authority.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Plans and Specifications. The plans and specifications for a capital project funded by a loan shall be subject to prior review and approval by Authority staff and shall conform to applicable acquisition, construction, rehabilitation, and restoration requirements established or applied by the Authority.</text> </paragraph> <paragraph num="(9)"> <text>Disbursement. Disbursement of loan funds shall be made as the activity progresses based upon requests for disbursement submitted by the borrower in a form satisfactory to the Authority.</text> </paragraph> <paragraph num="(10)"> <text>Modification of Loan. In order to facilitate the successful completion or operation of an activity funded by a loan, the Authority may modify:</text> <paragraph num="(a)"> <text>The rate of interest on the loan;</text> </paragraph> <paragraph num="(b)"> <text>The time or amount of payment of principal or interest, or both principal and interest;</text> </paragraph> <paragraph num="(c)"> <text>The maturity date of the loan; or</text> </paragraph> <paragraph num="(d)"> <text>Any other term of a loan.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Loan Default. In the event of default under the loan documents, the Authority may:</text> <paragraph num="(a)"> <text>Modify the rate of interest;</text> </paragraph> <paragraph num="(b)"> <text>Modify the time or amount of payment of principal, interest, or both principal and interest;</text> </paragraph> <paragraph num="(c)"> <text>Modify the maturity date of the loan;</text> </paragraph> <paragraph num="(d)"> <text>Modify the loan in any other manner that promotes repayment of the loan and achieves the purposes of the Loan Program; and</text> </paragraph> <paragraph num="(e)"> <text>Exercise all remedies provided by law and at equity, or available pursuant to the loan documents, including acceleration of payment of the entire principal and interest due on the loan, foreclosure, receivership, attachment, and repossession of property and collateral securing the loan.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>If the Authority obtains title to property by taking action under §A(11)(e) of this regulation, the Authority shall obtain approval from the Board of Public Works prior to further conveyance of title to the property.</text> </paragraph> <paragraph num="(13)"> <text>Prepayment Penalty. The Authority may not charge a prepayment penalty.</text> </paragraph> <paragraph num="(14)"> <text>Historic Property. If an activity funded by a loan will impact property that is listed or eligible for listing on the Maryland Register of Historic Properties, the loan agreement shall provide that:</text> <paragraph num="(a)"> <text>The plans and specifications for the project must be reviewed and approved by the Trust prior to the borrower undertaking any work on the property;</text> </paragraph> <paragraph num="(b)"> <text>All aspects of the project must conform to historic preservation standards established or applied by the Trust, including, but not limited to, the Secretary of the Interior’s Standards for Treatment of Historic Properties;</text> </paragraph> <paragraph num="(c)"> <text>The borrower must permit staff from the Trust to inspect ongoing construction to ensure that the borrower is undertaking the project in conformance with the applicable historic preservations standards and requirements; and</text> </paragraph> <paragraph num="(d)"> <text>If required by the Trust, the borrower shall:</text> <paragraph num="(i)"> <text>Convey or cause to be conveyed to the Trust for recording in the applicable land records a deed of easement, in form, substance, and duration satisfactory to the Director of the Trust, for preservation of the historic real property and the improvements and the settings thereon affected by the project; or</text> </paragraph> <paragraph num="(ii)"> <text>Enter into a preservation agreement with the Trust, or cause an agreement with the Trust, that obligates preservation and maintenance of the historic property affected by the project, in form, substance, and duration satisfactory to the Director.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(15)"> <text>Other Requirements. The Authority may establish other terms and conditions in the loan documents as considered reasonable and necessary by the Authority.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Real Property Requirements. The following requirements apply when a loan is secured by real property.</text> <paragraph num="(1)"> <text>Mortgage or Deed of Trust.</text> <paragraph num="(a)"> <text>A mortgage or deed of trust on real property securing the loan shall be recorded in the land records of the local jurisdiction in which the real property is situated.</text> </paragraph> <paragraph num="(b)"> <text>The mortgage or deed of trust may be subordinate to other recorded mortgage liens, at the Authority’s discretion, provided that the Authority and the other mortgagee or mortgagees give any required consents and the loan to value ratio of the property being subordinated complies with the requirements of §B(4)(b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Property, Liability, and Other Insurance.</text> <paragraph num="(a)"> <text>The borrower shall provide evidence that the borrower, the property owner if borrower is not the property owner, and contractors, have obtained and will continue to maintain the following insurance coverages, as applicable:</text> <paragraph num="(i)"> <text>Owner’s commercial general liability;</text> </paragraph> <paragraph num="(ii)"> <text>Owner’s property or hazard on the property securing the loan, in an amount not less than the loan plus all other debt secured by a lien on the property;</text> </paragraph> <paragraph num="(iii)"> <text>Builder’s risk during construction only;</text> </paragraph> <paragraph num="(iv)"> <text>Contractor’s general liability; and</text> </paragraph> <paragraph num="(v)"> <text>Flood insurance, if required by the Authority.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>All insurance required under this section shall:</text> <paragraph num="(i)"> <text>Be written by a company registered with the Maryland Insurance Administration, or a company approved by the Authority in the event the property securing the loan or insurance company are located out-of-State;</text> </paragraph> <paragraph num="(ii)"> <text>Be in force at or before the time of loan closing;</text> </paragraph> <paragraph num="(iii)"> <text>Not be terminable without prior notification to the Authority; and</text> </paragraph> <paragraph num="(iv)"> <text>Contain such other terms and coverage satisfactory to the Authority.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Owner’s commercial general liability insurance shall:</text> <paragraph num="(i)"> <text>Name the Authority as an additional insured; and</text> </paragraph> <paragraph num="(ii)"> <text>Remain in force until full repayment of the loan.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Contractor’s general liability insurance shall:</text> <paragraph num="(i)"> <text>Name the Authority as an additional insured; and</text> </paragraph> <paragraph num="(ii)"> <text>Remain in place through completion of the project, or such later date as the Authority may require.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Owner’s property or hazard insurance and builder’s risk insurance shall:</text> <paragraph num="(i)"> <text>Name the Authority as an additional insured, loss payee, and mortgagee; and</text> </paragraph> <paragraph num="(ii)"> <text>Remain in force until full repayment of the loan.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Title Insurance.</text> <paragraph num="(a)"> <text>For loans in amounts of $15,000 or greater, the Authority may require the borrower to provide a standard American Land Title Association Loan Policy — 2006, as amended, which policy shall:</text> <paragraph num="(i)"> <text>Be issued by a title insurance company acceptable to the Authority;</text> </paragraph> <paragraph num="(ii)"> <text>Be issued in an amount not less than the maximum principal amount of the loan;</text> </paragraph> <paragraph num="(iii)"> <text>Insure the Authority as additional insured, mortgagee, and loss payee;</text> </paragraph> <paragraph num="(iv)"> <text>Evidence that fee simple interest in the real property securing the loan is, as of the date of closing, vested in the borrower;</text> </paragraph> <paragraph num="(v)"> <text>Contain only exceptions and encumbrances approved by the Authority; and</text> </paragraph> <paragraph num="(vi)"> <text>Not include exceptions for survey matters, general or blanket exceptions, materialman’s liens or for taxes or assessments that are due and payable as of the date of closing.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For loans in amounts up to $15,000, the Authority may require the borrower to provide an attorney’s certificate of title or other evidence of title acceptable to the Authority, which;</text> <paragraph num="(i)"> <text>Establishes that fee simple interest in the real property securing the loan is, as of the date of closing, vested in the borrower;</text> </paragraph> <paragraph num="(ii)"> <text>May contain only exceptions and encumbrances approved by the Authority; and</text> </paragraph> <paragraph num="(iii)"> <text>May not include exceptions for survey matters, general or blanket exceptions or materialman’s liens or for taxes or assessments that are due and payable as of the date of closing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Appraisals. The Authority may require:</text> <paragraph num="(a)"> <text>An appraisal of the real property assisted by the loan that establishes the property’s value after completion of the project; or</text> </paragraph> <paragraph num="(b)"> <text>An appraisal of other real property that secures the loan that established that the property has sufficient value, taking into account all senior debt secured by a lien on the property, to secure the loan at an 80 percent loan to value ratio.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Loan Administration."> <paragraph num="A."> <text>Books and Records.</text> <paragraph num="(1)"> <text>A borrower shall maintain the books, accounts, and records related to a loan or the activity funded by a loan that the Authority from time to time may require, and shall cause the borrower’s contractors and subcontractors to do the same.</text> </paragraph> <paragraph num="(2)"> <text>A borrower shall file with the Authority financial and other reports as the Authority may from time to time require.</text> </paragraph> <paragraph num="(3)"> <text>Books, accounts, and records required to be maintained under this section shall be:</text> <paragraph num="(a)"> <text>Open for inspection by representatives of the Authority or the State during reasonable working hours before, during, or after repayment of the loan; and</text> </paragraph> <paragraph num="(b)"> <text>Maintained and made available for inspection for up to 3 years after either the date of the borrower’s repayment of the loan or the termination of the contractual relationship between the Authority and the borrower, whichever is later.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A borrower shall, upon request of the Authority or the State, make the borrower’s administrative offices and personnel, whether full-time, part-time, consultants, or volunteers, available to discuss or address matters concerning administration of the loan or of the activity funded by a loan.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Inspections. The Authority may conduct periodic inspections during the undertaking of an activity funded by a loan to assure that the activity is progressing in accordance with all terms and conditions of the loan documents or other requirements of the Authority.</text> </paragraph> <paragraph num="C."> <text>Reports. A borrower shall submit a final report, and interim reports as may be required by the Authority, that document progress and evaluate effectiveness of the activity funded by a loan.</text> </paragraph> <paragraph num="D."> <text>Nondiscrimination.</text> <paragraph num="(1)"> <text>A borrower may not discriminate on the basis of age (except with respect to residents in elderly projects), race, color, religion, national origin, sex, sexual orientation, marital status, or physical or mental handicap in any aspect of the project financed under the Program, or in any aspect of employment by any borrower, or contractor for any project financed under the Program.</text> </paragraph> <paragraph num="(2)"> <text>A borrower shall comply with all applicable federal, State, and local laws and Authority policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices including:</text> <paragraph num="(a)"> <text>Titles VI and VII of the Civil Rights Act of 1964, as amended;</text> </paragraph> <paragraph num="(b)"> <text>Title VIII of the Civil Rights Act of 1968, as amended;</text> </paragraph> <paragraph num="(c)"> <text>The Governor’s Code of Fair Practices, as amended; and</text> </paragraph> <paragraph num="(d)"> <text>The Authority's Minority Business Enterprise Program, as amended, if the borrower does not have a minority business participation program which is acceptable to the Authority.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Loan Program Administration."> <paragraph num="A."> <text>Except for waivers under Regulation .09 of this chapter, any action or decision required or permitted to be taken or made by the Authority under this chapter may be taken or made by the Authority’s designee.</text> </paragraph> <paragraph num="B."> <text>The Authority may terminate a loan or refuse to make additional disbursements of a loan if the Authority finds that the borrower is not in compliance with a requirement of the Loan Program or any term of the loan documents.</text> </paragraph> <paragraph num="C."> <text>The Authority may adopt written policies or guidelines related to administration of the Loan Program and shall post any such adopted policies or guidelines on the Trust’s website.</text> </paragraph> <paragraph num="D."> <text>The Authority may enter into agreements for loan servicing or other services useful to the operation of the Loan Program on terms acceptable to the Authority.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Waiver."> <text>The Authority may waive or vary a provision of this chapter if the waiver or variance is consistent with the Act and, as determined by the Authority, application of the provision in a specific instance or case, or in an emergency situation, would be inequitable or contrary to the purposes of the Act.</text> </regulation> <regulation prefix="Regulation" num=".10" heading="False Statements."> <text>A person who knowingly makes or causes to be made a false statement submitted or made to the Authority in connection with an application for a loan or affecting an existing loan is subject to any penalties authorized by law.</text> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6) and (12), 13-1113 and 13-1114, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 13, 2003 (30:20 Md. R. 1448)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective April 24, 2017 (44:8 Md. R. 406)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 repealed and new Regulations .01—.10 adopted effective November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> <chapter num="05" heading="Procedures for Reviewing Complaints"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes procedures for submission to the Maryland Heritage Areas Authority, and review by the Authority, of complaints made by local governments or heritage area management entities related to activities undertaken by agencies of State Government that might have an adverse effect on a heritage area resource.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Administrator” means the Administrator of the Authority.</text> </paragraph> <paragraph num="(3)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(4)"> <text>“Certified heritage area” means a recognized heritage area that has been designated a certified heritage area in accordance with the Act and COMAR 14.29.02.</text> </paragraph> <paragraph num="(5)"> <text>“Heritage area management entity” means a nonprofit organization or agency of either State or local government that may be responsible for coordinating development of a management plan for a heritage area or is responsible for implementing the management plan for a heritage area.</text> </paragraph> <paragraph num="(6)"> <text>“Local jurisdiction” means any of the 23 counties of the State, the City of Baltimore, any municipal corporation in the State that is subject to the provisions of Article XI-E of the Maryland Constitution, or any of their duly authorized agencies or instrumentalities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Submission of Complaints."> <paragraph num="A."> <text>A local jurisdiction or a heritage area management entity may submit to the Authority a complaint concerning activities undertaken by an agency or unit of State Government if the undertaking has an adverse effect, or has the potential to have an adverse effect, upon a natural, recreational, cultural, or historic resource located within a certified heritage area that is located within the local jurisdiction or for which heritage area management entity is responsible.</text> </paragraph> <paragraph num="B."> <text>A complaint shall:</text> <paragraph num="(1)"> <text>Be in writing;</text> </paragraph> <paragraph num="(2)"> <text>Be submitted to the Administrator;</text> </paragraph> <paragraph num="(3)"> <text>Identify the certified heritage area;</text> </paragraph> <paragraph num="(4)"> <text>Identify the agency or unit of State Government that is undertaking or has undertaken the activity and the nature of the activity;</text> </paragraph> <paragraph num="(5)"> <text>Identify the heritage area resource that is subject to the adverse effect;</text> </paragraph> <paragraph num="(6)"> <text>Describe the adverse effect; and</text> </paragraph> <paragraph num="(7)"> <text>Identify any law, rule, or regulation that the agency or unit of State Government may be in violation of in undertaking the activity.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Complaints."> <paragraph num="A."> <text>Upon receiving a complaint under Regulation .03 of this chapter, the Administrator shall:</text> <paragraph num="(1)"> <text>Review the complaint;</text> </paragraph> <paragraph num="(2)"> <text>Conduct an investigation into the allegations contained in the complaint to the extent and in a manner determined appropriate, necessary, and warranted by the Administrator;</text> </paragraph> <paragraph num="(3)"> <text>As may be appropriate and relevant, consider:</text> <paragraph num="(a)"> <text>The relative value and significance to the certified heritage area of the resource that the complaint alleges is or will be adversely affected; and</text> </paragraph> <paragraph num="(b)"> <text>Any impacts that the activity has had or may have upon properties listed, or eligible for listing, in the Maryland Register of Historic Properties; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Refer to the Authority for its review and consideration the complaint and the results of the Administrator’s investigation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If, after review and consideration under §A of this regulation, the Authority finds that the activity complained of is having, or may have, an adverse effect upon a natural, recreational, cultural, or historic resource located within a certified heritage area, the Administrator shall:</text> <paragraph num="(1)"> <text>Inform the agency or unit of State Government of the findings; and</text> </paragraph> <paragraph num="(2)"> <text>To the extent justified, practicable, and warranted by the circumstances, consult and work cooperatively with the unit or agency and the complainant, as may be appropriate, to identify alternatives for the activity or methods to mitigate the adverse effect.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Review of a complaint under this regulation does not constitute a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6), 13-1108(4)(i), and 13-1124, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: December 11, 2003 (30:24 Md. R. 1745)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.13 repealed and new Regulations .01—.04 adopted effective November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> <chapter num="06" heading="Procedures for Resolving Disputes"> <regulation prefix="Regulation" num=".01" heading="General."> <text>This chapter establishes procedures for the review and resolution of disputes that arise in connection with exercise by the Maryland Heritage Areas Authority of its authority under Financial Institutions Article, Title 13, Subtitle 11, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means Financial Institutions Article, §§13-1101—13-1124, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Administrator” means the Administrator of the Authority.</text> </paragraph> <paragraph num="(3)"> <text>“Authority” means the Maryland Heritage Areas Authority established by the Act.</text> </paragraph> <paragraph num="(4)"> <text>“Certified heritage area” means a recognized heritage area that has been designated a certified heritage area in accordance with the Act and COMAR 14.29.02.</text> </paragraph> <paragraph num="(5)"> <text>Decision of the Authority.</text> <paragraph num="(a)"> <text>“Decision of the Authority” means a decision, action, or exercise of statutory authority by the Authority and includes an exercise of authority by the Authority that is permitted, required, or contemplated under the Act.</text> </paragraph> <paragraph num="(b)"> <text>“Decision of the Authority” does not include a determination by the Authority:</text> <paragraph num="(i)"> <text>Under the Act or COMAR 14.29.01 regarding designation or an application for designation of a heritage area as a recognized heritage area;</text> </paragraph> <paragraph num="(ii)"> <text>Under the Act or COMAR 14.29.02 regarding review and approval of a management plan or designation or an application for designation of a recognized heritage area as a certified heritage area;</text> </paragraph> <paragraph num="(iii)"> <text>Under the Act or COMAR 14.29.03 related to review and approval of grant applications;</text> </paragraph> <paragraph num="(iv)"> <text>Under the Act or COMAR 14.29.04 related to review and approval of loan applications; or</text> </paragraph> <paragraph num="(v)"> <text>Related to enforcement of the terms of a grant, loan, or other financing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Petition” means a petition filed under Regulation .03 of this chapter concerning a decision of the Authority.</text> </paragraph> <paragraph num="(7)"> <text>“Petitioner” means a person or entity that files a petition under Regulation .03 of this chapter concerning a decision of the Authority.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Petition for Dispute Resolution."> <paragraph num="A."> <text>A person or entity that disputes a decision of the Authority and is aggrieved by the decision may file a petition with the Authority that seeks to have the Authority resolve the dispute.</text> </paragraph> <paragraph num="B."> <text>A petition submitted under this regulation shall:</text> <paragraph num="(1)"> <text>Be in writing;</text> </paragraph> <paragraph num="(2)"> <text>Be submitted to the Administrator;</text> </paragraph> <paragraph num="(3)"> <text>Identify the decision of the Authority that the petitioner disputes;</text> </paragraph> <paragraph num="(4)"> <text>Explain how the petitioner is aggrieved by the decision; and</text> </paragraph> <paragraph num="(5)"> <text>Identify any law, rule, or regulation that the petitioner contends is or was violated by the decision of the Authority.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Review of Petitions."> <paragraph num="A."> <text>Upon receiving a petition, the Administrator shall:</text> <paragraph num="(1)"> <text>Review the petition;</text> </paragraph> <paragraph num="(2)"> <text>Review the decision of the Authority that the petitioner disputes; and</text> </paragraph> <paragraph num="(3)"> <text>Refer to the Authority for its consideration the petition and the results of the Administrator’s review.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Within 90 days of receipt by the Administrator of a petition, the Authority shall consider the petition at meeting of the Authority during which the Authority shall:</text> <paragraph num="(1)"> <text>Review the petition;</text> </paragraph> <paragraph num="(2)"> <text>Consider the results of the Administrator’s review of the petition;</text> </paragraph> <paragraph num="(3)"> <text>Provide the petitioner an opportunity to address the Authority and present to the Authority any additional information or evidence that is relevant to the petition; and</text> </paragraph> <paragraph num="(4)"> <text>Make a determination to:</text> <paragraph num="(a)"> <text>Alter, amend, or rescind the decision of the Authority; or</text> </paragraph> <paragraph num="(b)"> <text>Deny the petition by affirming the decision of the Authority.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Administrator shall promptly send written notice to the petitioner of the Authority’s determination under §B(4) of this regulation.</text> </paragraph> <paragraph num="D."> <text>The Authority’s minutes for a meeting during which it considers a petition shall include:</text> <paragraph num="(1)"> <text>A summary of all oral statements and discussions concerning the petition;</text> </paragraph> <paragraph num="(2)"> <text>A copy of all documents submitted to, received by, or considered by the Authority on the petition; and</text> </paragraph> <paragraph num="(3)"> <text>The Authority’s determination on the petition.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Appeal."> <paragraph num="A."> <text>A determination made by the Authority under Regulation .04B of this chapter may be appealed by the petitioner to the Office of Administrative Hearings in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>On appeal, a determination made by the Authority under Regulation .04B of this chapter may not be reversed or modified unless the petitioner establishes by a preponderance of the evidence that:</text> <paragraph num="(1)"> <text>The determination was arbitrary, capricious, or contrary to law, rule, or regulation; or</text> </paragraph> <paragraph num="(2)"> <text>The Authority failed to follow its own procedures or this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The decision of the Office of Administrative Hearings on an appeal is the final administrative decision.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Financial Institutions Article, §§13-1107(6), 13-1108(4)(ii), and 13-1124, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 4, 2019 (46:22 Md. R. 978)</annotation> </annotations> </chapter> </subtitle> <subtitle num="30" heading="Public Employee Relations Board"> <chapter num="01" heading="Definitions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Board” means the Maryland Public Employee Relations Board (PERB) established by State Government Article, §22–301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Business day” means Monday through Friday, excluding State holidays and any other day the State is closed for business.</text> </paragraph> <paragraph num="(3)"> <text>“Chair” means the chair referenced in State Government Article, §22–302(a)(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Deputy Director” means any appropriate Deputy Director identified in State Government Article, §22-305, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Election period” means the period from the date an election petition is filed to the date employees can begin voting.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the individual appointed by PERB under State Government Article, §22–304, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Negotiability dispute” means a dispute arising in good faith during the course of collective bargaining as to whether a specific issue is subject to collective bargaining.</text> </paragraph> <paragraph num="(8)"> <text>“Presiding hearing officer” means the individual or body designated to preside over any hearing conducted under this subtitle.</text> </paragraph> <paragraph num="(9)"> <text>“State” means the State of Maryland.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); amended permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 25, 2004 (31:21 Md. R. 1545); October 22, 2007 (34:21 Md. R. 1917); July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 under State Higher Education Labor Relations Board, Definitions repealed and new Regulation .01 under Public Employee Relations Board, Definitions adopted effective May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="02" heading="Board Policy"> <regulation prefix="Regulation" num=".01" heading="Voluntary Settlements; Adjustments."> <paragraph num="A."> <text>It is Board policy to encourage the voluntary efforts of the parties to settle or adjust disputes.</text> </paragraph> <paragraph num="B."> <text>Such efforts at resolution and any settlements or adjustments reached shall be consistent with the provisions, purposes, and policies of Education Article, Titles 6 and 16, Personnel and Pensions Article, Title 3, and State Government Article, Title 22, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective December 23, 2002 (30:13 Md. R. 852); revised permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 repealed and new Regulation .02 adopted effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 adopted effective December 22, 2003 (30:25 Md. R. 1850)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 under State Higher Education Labor Relations Board, General repealed and new Regulation .01 under Public Employee Relations Board, Board Policy adopted effective May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="03" heading="General Course and Method of Operation"> <regulation prefix="Regulation" num=".01" heading="Receipt and Review."> <paragraph num="A."> <text>The Board may assign the Executive Director to process and assign petitions and charges filed with the Board.</text> </paragraph> <paragraph num="B."> <text>The Executive Director shall first screen the petition or charge to ensure that the Board has jurisdiction to hear the case.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Dismissal for Lack of Jurisdiction."> <paragraph num="A."> <text>Subject to the Board’s approval, the Executive Director may dismiss the case for lack of jurisdiction.</text> </paragraph> <paragraph num="B."> <text>In the case of dismissal for lack of jurisdiction, the complainant shall be notified, in writing, of the Board action as well as the reason or reasons for the dismissal.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 under State Higher Education Labor Relations Board, Executive Director repealed and new Regulations .01 and .02 under Public Employee Relations Board, General Course and Method of Operation adopted effective May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="04" heading="Filing"> <regulation prefix="Regulation" num=".01" heading="When Filed."> <text>A document is filed with the Board when it is received by the Executive Director or the Executive Director’s designee via mail, email, or personal delivery.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Address and Contact Information."> <paragraph num="A."> <text>All filings and other communications with the Board shall be addressed to the Maryland Public Employee Relations Board.</text> </paragraph> <paragraph num="B."> <text>Means of contacting the Board can be found on its website.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended effective December 22, 2003 (30:25 Md. R. 1850)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 adopted as an emergency provision effective December 23, 2002 (30:13 Md. R. 852); adopted permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 adopted as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); adopted permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 adopted effective December 22, 2003 (30:25 Md. R. 1850)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 under State Higher Education Labor Relations Board, Petitions repealed and new Regulations .01 and .02 under Public Employee Relations Board, Filing adopted effective May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="05" heading="Computation of Time Periods"> <regulation prefix="Regulation" num=".01" heading="Time Periods."> <text>In this subtitle, time periods refer to calendar days unless otherwise indicated.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Service."> <paragraph num="A."> <text>For purposes of service of any document filed before the Board, absent any evidence to the contrary, it is presumed that any document served by U.S. mail was received by the addressee 3 business days after the date the document was mailed.</text> </paragraph> <paragraph num="B."> <text>A 3-day period shall be added to any time period in which service was affected by mail.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Beginning and Ending of Time Periods."> <paragraph num="A."> <text>A time period is computed beginning with the day after the act or event which initiates the period and concludes with the last day of the period.</text> </paragraph> <paragraph num="B."> <text>A time period which would otherwise end on a weekend, State holiday, or day the State is closed for business instead ends on the following business day.</text> </paragraph> <paragraph num="C."> <text>For time periods of fewer than 10 days, weekend days, State holidays, and days the State is closed for business do not count in computing the time period.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Extension of Time Periods."> <text>The Board or the Executive Director may extend a time period not prescribed by statute. This may happen:</text> <paragraph num="A."> <text>Before the initial time period ends, without motion or notice, if good cause for the extension is shown; and</text> </paragraph> <paragraph num="B."> <text>After the initial time period ends, upon written motion filed with the Executive Director, if the failure to act was the result of excusable neglect or good cause.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D adopted as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); adopted permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 adopted as an emergency provision effective September 30, 2002 (30:13 Md. R. 852); adopted permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective March 13, 2006 (33:5 Md. R. 522)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03E adopted effective February 11, 2008 (35:3 Md. R. 289)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09-1 adopted effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09-1 repealed and new Regulation .09-1 adopted effective February 11, 2008 (35:3 Md. R. 289)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17A amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.17 under State Higher Education Labor Relations Board, Elections repealed and new Regulations .01—.04 under Public Employee Relations Board, Computation of Time Periods adopted effective May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="06" heading="Requests for and Inspection of Board Documents"> <regulation prefix="Regulation" num=".01" heading="General Rules."> <paragraph num="A."> <text>The public may inspect the rules, decisions, and public records of the Board upon written request filed within a reasonable time period in advance of inspection.</text> </paragraph> <paragraph num="B."> <text>A prescribed format for requests for inspection may not be required.</text> </paragraph> <paragraph num="C."> <text>Written requests shall be submitted to the Board at its official address.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Requests for Board Documents."> <paragraph num="A."> <text>A person may request in writing copies of the Board’s reports, decisions, orders, and certifications.</text> </paragraph> <paragraph num="B."> <text>A request for public records of PERB shall be provided at cost.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 under State Higher Education Labor Relations Board, Denial or Revocation of Certification repealed and new Regulations .01 and..02 under Public Employee Relations Board, Requests for and Inspection of Board Documents adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="07" heading="Petition for Adoption of Regulation"> <regulation prefix="Regulation" num=".01" heading="Request for New Regulation."> <paragraph num="A."> <text>An interested person may submit to the Board a petition for consideration of the adoption of a regulation.</text> </paragraph> <paragraph num="B."> <text>Within 60 days after the petition is submitted, the Board shall:</text> <paragraph num="(1)"> <text>In writing, deny the petition and state the reasons for the denial; or</text> </paragraph> <paragraph num="(2)"> <text>Initiate the procedures for consideration of the regulation.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted effective May 27, 2002 (29:10 Md. R. 826)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted effective May 27, 2002 (29:10 Md. R. 826)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 22, 2007 (34:21 Md. R. 1917); February 11, 2008 (35:3 Md. R. 289)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted effective April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended as an emergency provision effective March 3, 2003 (30:13 Md. R. 852); amended permanently effective September 29, 2003 (30:19 Md. R. 1335)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective November 29, 2010 (37:24 Md. R. 1659); July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective March 13, 2006 (33:5 Md. R. 522)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 under State Higher Education Labor Relations Board, Unfair Labor Practices repealed and new Regulation .01 under Public Employee Relations Board, Petition for Adoption of Regulation adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="08" heading="Procedures Applicable to All Proceedings"> <regulation prefix="Regulation" num=".01" heading="When a Hearing May Be Held."> <text>The Board or its delegee shall hold a hearing when:</text> <paragraph num="A."> <text>The Board finds there is a dispute of a material fact or facts and probable cause that an unfair labor practice has been committed;</text> </paragraph> <paragraph num="B."> <text>The Board finds that there is a dispute over the appropriateness of a bargaining unit; or</text> </paragraph> <paragraph num="C."> <text>There is a request to deny or revoke certification of an exclusive representative for willfully failing to comply with the State Government Article, Title 22, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Representation Hearings."> <text>The Board or its delegee may hold a hearing in representation proceedings other than bargaining unit disputes:</text> <paragraph num="A."> <text>To establish procedures for resolving disputes about negotiability; or</text> </paragraph> <paragraph num="B."> <text>In impasse proceedings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Informal Resolution with Parties."> <paragraph num="A."> <text>Parties on their own may voluntarily settle any matter.</text> </paragraph> <paragraph num="B."> <text>A Deputy Director may assist the parties with the settlement of an unfair labor practice case.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Terms of Settlement."> <text>Terms of any voluntarily approved settlement shall be approved by the Board.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Withdrawal of Charge."> <text>A party may withdraw a charge prior to the issuance of a complaint by providing notice to the appropriate Deputy Director.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Expedited Proceedings at the Board’s Discretion."> <paragraph num="A."> <text>If the Board after review and discussion of all the materials in a case determines that there are no material facts in dispute, the Board may choose to expedite review of the case and decide it without a hearing.</text> </paragraph> <paragraph num="B."> <text>If the Board chooses expedited review, the Chair shall inform the parties that the case will be decided without a hearing, unless the parties show that there are material facts in dispute or offer another compelling reason or reasons.</text> </paragraph> <paragraph num="C."> <text>In expedited review, the Board shall establish deadlines for the parties to submit a joint statement of material facts, any facts that a party contends are in dispute, and briefs with arguments and precedents in support of their position.</text> </paragraph> <paragraph num="D."> <text>The Board shall decide the case based on the submissions of the parties.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Notice of Hearing."> <paragraph num="A."> <text>Service by Mail. Written notice of a Board or delegated hearing shall be delivered by the Board to all parties by mail or email.</text> </paragraph> <paragraph num="B."> <text>Contents. For Board hearings, the notice shall include:</text> <paragraph num="(1)"> <text>A statement of the date, time, place, nature, and method, whether in-person, by mail, or by electronic means, of the hearing;</text> </paragraph> <paragraph num="(2)"> <text>A statement of the legal authority and jurisdiction under which the hearing is to be held;</text> </paragraph> <paragraph num="(3)"> <text>A reference to the particular sections of the statutes and regulations involved;</text> </paragraph> <paragraph num="(4)"> <text>A copy of the document or documents that prompted the hearing; and</text> </paragraph> <paragraph num="(5)"> <text>Any other information required by State Government Article, §10-208, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For hearings conducted by the Office of Administrative Hearings, notice shall comply with the requirements of COMAR 28.02.01.05.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Determination of Presiding Hearing Officer."> <paragraph num="A."> <text>In hearings conducted by the Board, the Chair shall preside for purposes of administering the hearing pursuant to this chapter.</text> </paragraph> <paragraph num="B."> <text>The Chair may designate a Board member to preside in the Chair’s absence.</text> </paragraph> <paragraph num="C."> <text>The presiding hearing officer shall fix the time, place, and method for all hearings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Representation."> <paragraph num="A."> <text>Except as otherwise provided by law, a party with standing to participate in a proceeding before the Board may appear and represent themselves or be represented by an attorney licensed to practice law in Maryland.</text> </paragraph> <paragraph num="B."> <text>In the event that an out-of-State attorney seeks to represent a party before the Board, the attorney shall apply for admission under Business Occupations and Professions Article, §10-215, Annotated Code of Maryland, and Rules Governing Admission to the Bar of Maryland, Rule 19-217.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Prehearing Submissions and Conference."> <paragraph num="A."> <text>In hearings conducted by the Board, any party and any interested employee organization may submit to the presiding hearing officer prior to the hearing any motions, pleadings, or briefs for consideration.</text> </paragraph> <paragraph num="B."> <text>Documents submitted under §A of this regulation shall be submitted at least 10 days prior to the hearing.</text> </paragraph> <paragraph num="C."> <text>The presiding hearing officer may order a prehearing conference for any administrative purpose the presiding hearing officer considers necessary for the appropriate and orderly conduct of a pending matter.</text> </paragraph> <paragraph num="D."> <text>The parties shall cooperate in good faith with the presiding hearing officer in the appropriate and orderly conduct of any pending matter.</text> </paragraph> <paragraph num="E."> <text>The presiding hearing officer may order, with the consent of all parties, a prehearing conference for the purpose of seeking the voluntary resolution of a pending matter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Subpoenas."> <paragraph num="A."> <text>Issuance of Subpoenas.</text> <paragraph num="(1)"> <text>The Board, the Executive Director, or the Office of Administrative Hearings, as appropriate, may issue subpoenas requiring the attendance and testimony of witnesses and production of documents or tangible items at any hearing.</text> </paragraph> <paragraph num="(2)"> <text>Subpoenas issued by the Office of Administrative Hearings shall be issued in accordance with COMAR 28.02.01.14.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Request for Subpoenas.</text> <paragraph num="(1)"> <text>A request for issuance of a subpoena shall:</text> <paragraph num="(a)"> <text>Be made in writing to the Board, Executive Director, or Office of Administrative Hearings, as appropriate;</text> </paragraph> <paragraph num="(b)"> <text>State:</text> <paragraph num="(i)"> <text>The name and address of the individual to be subpoenaed;</text> </paragraph> <paragraph num="(ii)"> <text>If production of documents or tangible items is sought, a particular description of the documents or tangible items sought; and</text> </paragraph> <paragraph num="(iii)"> <text>The name, address, email address, if any, and telephone number of the party requesting the subpoena; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Be sent by personal delivery, certified mail, or email to each party.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>To the extent practicable, a request for subpoena shall be filed with the Board, Executive Director, or Office of Administrative Hearings, as appropriate, at least 7 days before:</text> <paragraph num="(a)"> <text>A prehearing conference, if one has been scheduled; or</text> </paragraph> <paragraph num="(b)"> <text>The hearing, if no prehearing conference has been scheduled.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Service of Subpoenas. A subpoena may be served by personal service, by certified mail or by email.</text> </paragraph> <paragraph num="D."> <text>If the subpoena is served by an individual other than the Office of Administrative Hearings, a certificate of service attesting to the method of service and date of service shall be filed with the Board, Executive Director, or Office of Administrative Hearings, as appropriate.</text> </paragraph> <paragraph num="E."> <text>Objections to Subpoenas. A party or an individual who has been served a subpoena may object to the subpoena by filing a motion to modify or quash the subpoena within 7 days of service of the subpoena or by the date of the hearing, whichever is earlier.</text> </paragraph> <paragraph num="F."> <text>Enforcement of Subpoenas.</text> <paragraph num="(1)"> <text>If a person fails to comply with a properly served subpoena, the Board shall issue an order requiring compliance with the subpoena.</text> </paragraph> <paragraph num="(2)"> <text>The Board or the Office of Administrative Hearings as appropriate may apply to the appropriate circuit court for an order to show cause why an individual should not be sanctioned for refusal to comply with a subpoena.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Continuance."> <paragraph num="A."> <text>Application. A party may request a continuance for good cause upon written application to the presiding hearing officer before commencement of the hearing or other proceeding, or by oral application to the presiding hearing officer during the hearing and shall give simultaneous notice of the request to all parties.</text> </paragraph> <paragraph num="B."> <text>Order. Board hearings or proceedings on any matter may be continued by order of the presiding hearing officer with the reasons or other conditions stated in the order, with notice to all parties.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Failure to Attend Hearing or Proceeding and Default."> <paragraph num="A."> <text>If, after receiving notice, a party fails to attend a prehearing conference, hearing, or other scheduled proceeding, the Board or delegee, as appropriate, may impose sanctions, which may include a final default decision and order, against the defaulting party.</text> </paragraph> <paragraph num="B."> <text>Within 7 days after service of a default decision and order, the party may file a written motion:</text> <paragraph num="(1)"> <text>Requesting that the default decision and order be vacated or modified; and</text> </paragraph> <paragraph num="(2)"> <text>Stating the grounds for the request.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the Board or delegee, as appropriate, finds that there is a substantial and sufficient basis for an actual controversy on the merits and that there is good cause to excuse the default, the Board or its delegee, as appropriate, may vacate the default decision and order.</text> </paragraph> <paragraph num="D."> <text>A final default decision and order is the final administrative action.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Consolidation."> <text>Upon application of a party or upon its own motion, the Board may consolidate for hearing any cases that involve common questions of law or fact.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Stipulations and Affidavits."> <paragraph num="A."> <text>Stipulations.</text> <paragraph num="(1)"> <text>The parties, by stipulation, may agree to any substantive or procedural matter.</text> </paragraph> <paragraph num="(2)"> <text>A stipulation may be filed in writing or entered on the record at the hearing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Affidavits. A party, the Board or any Board staff, or the presiding hearing officer, because a witness is unavailable for another appropriate reason, may admit an affidavit as evidence. All affidavit testimony shall be under oath or affirmation and subject to the penalties of perjury.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Motions."> <paragraph num="A."> <text>Process.</text> <paragraph num="(1)"> <text>Unless otherwise provided by this subtitle, a party:</text> <paragraph num="(a)"> <text>May move for appropriate relief before or during a hearing, including, if appropriate, for summary decision by the Board; and</text> </paragraph> <paragraph num="(b)"> <text>Shall submit all motions in writing in accordance with §A(2) of this regulation, or orally at a hearing.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A written motion shall:</text> <paragraph num="(a)"> <text>Be filed not later than 5 days before the date of a prehearing conference, if any, or 7 days before the date of the hearing;</text> </paragraph> <paragraph num="(b)"> <text>State concisely the question to be determined;</text> </paragraph> <paragraph num="(c)"> <text>Be accompanied by all supporting documentation;</text> </paragraph> <paragraph num="(d)"> <text>Be accompanied by a memorandum of points and authorities; and</text> </paragraph> <paragraph num="(e)"> <text>Be served on each party.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A response to a written motion shall be filed on the earlier of:</text> <paragraph num="(a)"> <text>5 days after service of the motion; or</text> </paragraph> <paragraph num="(b)"> <text>The date of the hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Amendments.</text> <paragraph num="(1)"> <text>A charge, motion, or response may be amended for good cause shown, but not ex parte, upon motion at any time before the start of the hearing.</text> </paragraph> <paragraph num="(2)"> <text>Form. Motions to amend shall be in writing filed with the presiding hearing officer, and the moving party shall serve a copy upon all parties by regular mail or email.</text> </paragraph> <paragraph num="(3)"> <text>The Board, the Executive Director, or the administrative law judge, as appropriate, may schedule a hearing to consider a written motion.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Rulings.</text> <paragraph num="(1)"> <text>The Board may rule on a motion for summary decision prior to, during, or after hearing. The Board may grant such a motion if it finds that:</text> <paragraph num="(a)"> <text>There is no genuine issue as to any material fact; and</text> </paragraph> <paragraph num="(b)"> <text>The moving party is entitled to prevail as a matter of law.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board or administrative law judge may reserve ruling on a motion until during or after a hearing. The presiding hearing officer may issue a written ruling or orally state the ruling on the record.</text> </paragraph> <paragraph num="(3)"> <text>If the Board decides that a ruling on a motion shall be reserved until after the hearing, the Board shall issue the ruling in writing and may include the ruling in the final decision.</text> </paragraph> <paragraph num="(4)"> <text>The filing or pendency of a motion does not alter or extend any time limit otherwise established by this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Conduct of Hearings."> <paragraph num="A."> <text>On a genuine issue in a contested case, each party is entitled to:</text> <paragraph num="(1)"> <text>Call witnesses;</text> </paragraph> <paragraph num="(2)"> <text>Offer evidence, including rebuttal evidence;</text> </paragraph> <paragraph num="(3)"> <text>Cross-examine opposing witnesses; and</text> </paragraph> <paragraph num="(4)"> <text>Make opening and closing statements.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Virtual Hearings.</text> <paragraph num="(1)"> <text>The Board or the administrative law judge, as appropriate, may conduct all or part of the hearing by video conferencing or other electronic means.</text> </paragraph> <paragraph num="(2)"> <text>All substantive and procedural rights apply to video or other electronic hearings, subject only to the limitations of the physical arrangement.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Quorum.</text> <paragraph num="(1)"> <text>A quorum of the Board shall attend all hearings conducted by the Board.</text> </paragraph> <paragraph num="(2)"> <text>If reasonably practicable, the attending Board members shall be the Chair, and at least one of the Members from the list submitted by exclusive representatives, and at least one of the Members from the list submitted by public employers.</text> </paragraph> <paragraph num="(3)"> <text>If all parties consent, it is permissible for a variation from the composition of Board members described in §C(2) to attend the hearing.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Evidence."> <paragraph num="A."> <text>Evidence shall be admitted in accordance with this chapter and State Government Article, §10-213, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The rules of evidence observed by courts do not apply to hearings under this subtitle.</text> </paragraph> <paragraph num="C."> <text>The presiding hearing officer shall admit evidence, including reliable hearsay evidence, if it is the kind upon which reasonable persons are accustomed to relying in administrative proceedings.</text> </paragraph> <paragraph num="D."> <text>Irrelevant or unduly repetitive evidence may be excluded.</text> </paragraph> <paragraph num="E."> <text>The presiding hearing officer shall observe the rules of privilege recognized by law.</text> </paragraph> <paragraph num="F."> <text>All testimony at a hearing shall be under oath or affirmation and subject to the penalties of perjury.</text> </paragraph> <paragraph num="G."> <text>The presiding hearing officer may admit as evidence all or part of the information described under COMAR 28.02.01.21.</text> </paragraph> <paragraph num="H."> <text>Sequestration of Witnesses.</text> <paragraph num="(1)"> <text>Upon request by a party, or on their own behalf, the presiding hearing officer may sequester witnesses from the hearing room.</text> </paragraph> <paragraph num="(2)"> <text>The presiding hearing officer shall order the witnesses, parties, attorneys, and all others present in the hearing room not to disclose to any witness sequestered under this section the nature, substance, or purpose of testimony, exhibits, or other evidence introduced during the witness’s absence.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Expert Testimony."> <text>Expert testimony may be accepted by the presiding hearing officer if the testimony, as proffered, would aid in an understanding of the case.</text> </regulation> <regulation prefix="Regulation" num=".20" heading="Appointment of Interpreter."> <paragraph num="A."> <text>If a party or witness cannot readily hear, speak, or understand the spoken or written English language, on motion timely submitted, the Board, the Executive Director, or the presiding hearing officer, as appropriate, shall appoint a qualified interpreter to provide assistance during the hearing.</text> </paragraph> <paragraph num="B."> <text>An interpreter shall take an oath or affirmation that the interpreter will accurately translate.</text> </paragraph> <paragraph num="C."> <text>The party requesting the interpreter shall bear the cost of the interpreter, unless the party or witness is hearing-impaired.</text> </paragraph> <paragraph num="D."> <text>Waiver of Cost of the Interpreter.</text> <paragraph num="(1)"> <text>A party who by reason of indigence is unable to pay the cost of the interpreter may file a request for waiver of that cost with the presiding hearing officer. The waiver request shall be accompanied by an affidavit verifying the facts set forth in the request and the applicant’s inability to pay.</text> </paragraph> <paragraph num="(2)"> <text>If the presiding hearing officer is satisfied that the applicant is unable by reason of indigence to pay the cost of the interpreter, the presiding hearing officer may waive the payment of cost, with the cost paid by the Board.</text> </paragraph> <paragraph num="(3)"> <text>A waiver of the cost of an interpreter shall be available only to an individual applicant and not to a group or other entity.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Burdens of Going Forward and Persuasion."> <paragraph num="A."> <text>In any proceeding under this chapter, the petitioner, moving party, or appellant bears the burden of going forward to establish a prima facie case as to the existence of grounds for its action.</text> </paragraph> <paragraph num="B."> <text>The Board or the presiding hearing officer, as appropriate, shall find against a party with the burden of:</text> <paragraph num="(1)"> <text>Going forward, if that party has not presented sufficient evidence to establish a prima facie case for the party’s claim or defense; or</text> </paragraph> <paragraph num="(2)"> <text>Persuasion, if that party has not presented evidence sufficient to establish the correctness of the party’s claim or defense by a preponderance of the evidence.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Ex Parte Communications."> <paragraph num="A."> <text>A party or a party’s representative may not communicate ex parte with members of the Board, the Executive Director, an administrative law judge, or any of their staff who have participated in the contested case regarding the merits of any issue in the hearing.</text> </paragraph> <paragraph num="B."> <text>Actions taken by the Board, Board staff, or an administrative law judge following an ex parte communication are governed by State Government Article, §10-219, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Transcripts; Costs."> <paragraph num="A."> <text>The Board shall provide a court reporter and transcription services for the hearing, with the cost, including a copy of the transcript being provided to the Board, to be split by the parties.</text> </paragraph> <paragraph num="B."> <text>Waiver of Transcription Costs.</text> <paragraph num="(1)"> <text>A party who by reason of indigence is unable to pay the cost of transcription may file a request for waiver of the costs with the presiding hearing officer.</text> </paragraph> <paragraph num="(2)"> <text>The request of waiver shall be accompanied by an affidavit verifying the facts set forth in the request and the applicant’s inability to pay.</text> </paragraph> <paragraph num="(3)"> <text>If the presiding hearing officer is satisfied that the party is unable by reason of indigence to pay the cost of transcription, the presiding hearing officer may waive the payment of cost, and that party’s cost shall be paid by the Board.</text> </paragraph> <paragraph num="(4)"> <text>A waiver of transcription costs shall be available only to an individual applicant and not to a group or other entity.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Briefs and Oral Arguments."> <paragraph num="A."> <text>Oral Arguments. At the discretion of the presiding hearing officer, oral arguments may be presented by the parties with time limits determined by the presiding hearing officer.</text> </paragraph> <paragraph num="B."> <text>Briefs. Briefs may be filed in the order and within the time and any page limits set by the presiding hearing officer.</text> </paragraph> <paragraph num="C."> <text>All briefs shall be served on all parties in the proceeding by mail, email, or personal delivery.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".25" heading="Board Decision."> <paragraph num="A."> <text>The Board, as soon as reasonably practicable after the conclusion of the hearing, and in accordance with any timelines prescribed by statute, shall issue a written decision.</text> </paragraph> <paragraph num="B."> <text>The decision of the Board is the final administrative decision for purposes of judicial review. Unless the matter is remanded for further proceedings, or a motion for reconsideration is filed, the date of the written decision of the Board is the date of the final decision of the agency for purposes of judicial review.</text> </paragraph> <paragraph num="C."> <text>A final decision shall:</text> <paragraph num="(1)"> <text>Be in writing;</text> </paragraph> <paragraph num="(2)"> <text>Be served on all parties by mail or email; and</text> </paragraph> <paragraph num="(3)"> <text>Contain:</text> <paragraph num="(a)"> <text>Findings of fact and conclusions of law, separately stated;</text> </paragraph> <paragraph num="(b)"> <text>An order; and</text> </paragraph> <paragraph num="(c)"> <text>A statement of the available procedures and time limitations for review.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Reconsideration. In the event of fraud, mistake, or irregularity, a final decision may be reconsidered and corrected at any time.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="Judicial Review."> <paragraph num="A."> <text>A party who is aggrieved by a final decision is entitled to judicial review in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Board may request to intervene as a party to the judicial proceeding.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 adopted effective April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 adopted effective May 27, 2002 (29:10 Md. R. 826)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted effective April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 under State Higher Education Labor Relations Board, Permissible Labor-Related Activities repealed and new Regulations .01—.26 under Public Employee Relations Board, Procedures Applicable to All Proceedings adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="09" heading="Unfair Labor Practice Proceedings"> <regulation prefix="Regulation" num=".01" heading="Charge."> <paragraph num="A."> <text>Party. A party alleging an unfair labor practice may request relief from the Board by filing a charge with the Executive Director.</text> </paragraph> <paragraph num="B."> <text>Form. A charge shall be in writing and signed on a form provided by the Board according to this subtitle.</text> </paragraph> <paragraph num="C."> <text>Timeliness. The charge shall be filed with the Board within 6 months from the later of the alleged violation or following the time that a reasonable person would, upon exercising due diligence, have discovered the occurrence of the alleged violation.</text> </paragraph> <paragraph num="D."> <text>A charge shall:</text> <paragraph num="(1)"> <text>Accurately describe the issues;</text> </paragraph> <paragraph num="(2)"> <text>Provide a clear and concise statement of the facts constituting the alleged unfair labor practice, including the names of the individuals involved in the alleged act, the dates and places of the alleged occurrence, and the specific unfair labor practice under this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Contain the name, mailing address, email address if any, and telephone number of the complainant, and the same information, if known, about any other party named, including the name and title of the complainant’s representative, if any, and the representative of any other named party; and</text> </paragraph> <paragraph num="(4)"> <text>Include a declaration that the complainant swears and affirms, under the penalties of perjury and upon knowledge, information, and belief, that the allegations are true and correct.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The charging party shall serve the charge on all other parties by personal delivery, mail or email, and provide a certificate of service to the Executive Director by mail or email.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Investigation."> <paragraph num="A."> <text>After a charge is properly filed with the Board, the Executive Director shall, as soon as reasonably practicable, email or mail a copy of the charge to all parties along with a letter explaining the next steps of the process.</text> </paragraph> <paragraph num="B."> <text>A Deputy Director shall commence investigation of a charge as soon as reasonably practicable after it is filed, and notify the Executive Director and the Board if the Deputy Director finds:</text> <paragraph num="(1)"> <text>The charge is untimely filed;</text> </paragraph> <paragraph num="(2)"> <text>The charge fails to state an actionable claim under State Government Article, Title 22, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(3)"> <text>The Board holds no jurisdiction over the claims presented in the charge.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the charge alleges an unfair labor practice “resulting from a party’s conduct in collective bargaining” and alleges it has affected bargaining, the following actions are required:</text> <paragraph num="(1)"> <text>A Deputy Director shall notify the charged party that it must file a response to the charge with the Board within 10 days of the date of the letter issued by a Deputy Director under §A of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>The charged party’s response shall include a specific admission or denial of each allegation of the complaint. Admissions or denials may be made to all or part of an allegation but shall fairly address the allegations. If appropriate, the answer may include any defense.</text> </paragraph> <paragraph num="(3)"> <text>If, upon proper service of the complaint, the respondent fails to file a response, the failure may be considered by the Board to be an admission of the material facts alleged in the complaint.</text> </paragraph> <paragraph num="(4)"> <text>The Deputy Director shall investigate the allegations, the defenses, and all relevant facts.</text> </paragraph> <paragraph num="(5)"> <text>Within 20 days of the filing of the charge, the Deputy Director shall seek informal resolution of the charge with the parties.</text> </paragraph> <paragraph num="(6)"> <text>Within 20 days of the filing of the charge, the Deputy Director shall submit to the Board a written report. The report shall set forth the Deputy Director’s recommendations to the Board as to whether, based on the totality of the factual circumstances ascertained during the investigation, probable cause exists to believe that the alleged unfair labor practice has occurred.</text> </paragraph> <paragraph num="(7)"> <text>After receiving the Deputy Director’s report, and within 30 days of receiving a properly filed charge, the Board shall decide whether to issue a complaint or dismiss the charge. The Board may also seek informal resolution of the charge by stipulation, agreed settlement, consent order, or by any other method agreed upon by the parties.</text> </paragraph> <paragraph num="(8)"> <text>The Board shall issue its decision within 90 days of the filing of the charge.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For all charges of unfair labor practices not covered by §C of this regulation, the following actions are required:</text> <paragraph num="(1)"> <text>A Deputy Director shall notify the charged party that it must file with the Board a response to the charge within 20 days of the date the processing letter was sent. Upon application and good cause shown, the Executive Director may extend the time to answer to a specific time and date.</text> </paragraph> <paragraph num="(2)"> <text>The Deputy Director shall investigate the allegations, defenses, and all relevant facts.</text> </paragraph> <paragraph num="(3)"> <text>The Deputy Director shall, prior to submitting a recommendation to the Board, seek informal resolution of the charge with the parties.</text> </paragraph> <paragraph num="(4)"> <text>The Deputy Director shall provide to the Board a case file of all relevant information gathered in the investigation, including the charge, any responses, any requested exhibits, and a written report. The report shall set forth the Deputy Director’s recommendations to the Board as to whether, based on the totality of the factual circumstances ascertained during the investigation, probable cause exists to believe that the alleged unfair labor practice has occurred.</text> </paragraph> <paragraph num="(5)"> <text>After receiving the Deputy Director’s report, the Board shall decide whether to issue a complaint or dismiss the charge. The Board may also seek informal resolution of the dispute by stipulation, agreed settlement, consent order, or any other method agreed upon by the parties.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The Board may establish appropriate internal procedures, as considered necessary, to further implement this chapter.</text> </paragraph> <paragraph num="F."> <text>If the Board finds that probable cause exists to support an unfair labor practice, the Board shall take the actions required by the State Government Article, §22-307, Annotated Code of Maryland, including issuing a complaint. Not less than 15 days after issuing a complaint, the Board shall issue a Notice of Hearing before the Board or the Office of Administrative Hearings.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A, B amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, D amended effective October 25, 2004 (31:21 Md. R. 1545); July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E adopted effective March 13, 2006 (33:5 Md. R. 522)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 adopted effective February 23, 2009 (36:4 Md. R. 355)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 under State Higher Education Labor Relations Board, Collective Bargaining repealed and new Regulations .01 and .02 under Public Employee Relations Board, Unfair Labor Practice Proceedings adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="10" heading="Representation Elections"> <regulation prefix="Regulation" num=".01" heading="Filing a Petition."> <text>A representation petition may be filed by:</text> <paragraph num="A."> <text>An employee organization seeking certification as an exclusive representative; or</text> </paragraph> <paragraph num="B."> <text>An employee, a group of employees, or an employee organization seeking a new election to determine an exclusive representative.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="When to File the Petition."> <text>A petition may be filed at any time, provided that no election may be held for a bargaining unit within 12 months following the final date of a previous election conducted for that unit.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="How to File a Petition."> <text>An original and any amended petition shall be filed with the Executive Director. The petitioner shall make and maintain a copy of the petition or amended petition.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Eligible Voters."> <text>Employees eligible to vote are those employees who:</text> <paragraph num="A."> <text>Are employed on the date of the last payroll period before the petition for the election is filed; and</text> </paragraph> <paragraph num="B."> <text>Are still employed at the end of the election period.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Petition."> <paragraph num="A."> <text>An initial petition for a representation election, and any other petitions for an employee organization to be included on the ballot in that election, shall meet the showing of interest requirements set forth in State Government Article, §§22-402 and 22-405, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Every petition shall be in writing and shall contain:</text> <paragraph num="(1)"> <text>The name, address, telephone number, and email address of the petitioner’s representative;</text> </paragraph> <paragraph num="(2)"> <text>The purpose for the petition;</text> </paragraph> <paragraph num="(3)"> <text>The bargaining unit involved in the petition;</text> </paragraph> <paragraph num="(4)"> <text>A copy of the most current or recent collective bargaining agreement, if any;</text> </paragraph> <paragraph num="(5)"> <text>A declaration by the petitioner or the petitioner’s representative under the penalties of perjury that the contents of the petition are true and correct to the best of the declarant’s information and belief; and</text> </paragraph> <paragraph num="(6)"> <text>Any other facts relevant to the petition.</text> </paragraph> </paragraph> <paragraph num="C."> <text>In addition to the items required by §B of this regulation, an election petition shall contain or be accompanied by:</text> <paragraph num="(1)"> <text>The name of the employee organization as it will appear on the ballot;</text> </paragraph> <paragraph num="(2)"> <text>Showing of interest forms signed by the percentage of eligible employees in the appropriate bargaining unit required by State Government Article, §§22-402 and 22-405, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>A copy of the employee organization’s governing documents that:</text> <paragraph num="(a)"> <text>Give individual members the right to participate in the activities of the organization;</text> </paragraph> <paragraph num="(b)"> <text>Require periodic elections by secret ballot that are conducted with recognized safeguards to ensure the equal rights of all members to nominate, seek office, and vote in the elections; and</text> </paragraph> <paragraph num="(c)"> <text>Direct full and accurate accounting of all income and expenses using standard accounting methods; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A certification that the organization accepts members without regard to any characteristic listed in State Government Article, §22-201(d), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When filing the petition, the petitioner shall also request a preferred method of voting, that is, on-site, by mail, or by electronic means.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Showing of Interest Forms."> <paragraph num="A."> <text>The employer shall provide to the Board and the petitioner within 2 days of the filing of a petition an alphabetical list of public employees in the bargaining unit requested by the petitioner with the information required by State Government Article, §22-402(f)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Executive Director shall determine the adequacy of the showing of interest based on the number of eligible employees in the proposed unit by comparing the showing of interest forms with the list provided by the employer.</text> </paragraph> <paragraph num="C."> <text>Content of Form.</text> <paragraph num="(1)"> <text>Each showing of interest form shall be an original separate document for each eligible employee in the appropriate bargaining unit who supports representation by the petitioner organization.</text> </paragraph> <paragraph num="(2)"> <text>A signed union authorization card or union membership card including the name of the petitioner is a valid showing of interest form.</text> </paragraph> <paragraph num="(3)"> <text>Forms other than union authorization cards or union membership cards shall contain:</text> <paragraph num="(a)"> <text>A handwritten or electronic signature of the employee;</text> </paragraph> <paragraph num="(b)"> <text>The date the form was signed; and</text> </paragraph> <paragraph num="(c)"> <text>A statement that the employee who signed the form desires to be represented by the petitioner for the purposes of collective bargaining.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>All signatures used for the showing of interest, including those on authorization or membership cards, shall be collected no more than 18 months prior to the filing of the petition.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Evaluation of Showing of Interest Forms."> <paragraph num="A."> <text>Review by Executive Director.</text> <paragraph num="(1)"> <text>Each name on the showing of interest forms shall be compared with the names on the employer list.</text> </paragraph> <paragraph num="(2)"> <text>Each valid showing of interest form shall be marked in the upper right hand corner in a suitable fashion to show it has been accepted.</text> </paragraph> <paragraph num="(3)"> <text>Each invalid showing of interest form shall be marked as:</text> <paragraph num="(a)"> <text>“NOL” if the name is not on the employer list;</text> </paragraph> <paragraph num="(b)"> <text>“Excluded” or with an abbreviation thereof if named by the employer as an excluded employee; or</text> </paragraph> <paragraph num="(c)"> <text>“Invalid” or with an abbreviation thereof if determined invalid by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Forms marked “excluded” or with an abbreviation shall indicate the employer’s stated reason for exclusion as follows:</text> <paragraph num="(a)"> <text>Managerial employee;</text> </paragraph> <paragraph num="(b)"> <text>Confidential employee;</text> </paragraph> <paragraph num="(c)"> <text>When excluded from the definition of public employee, a supervisory employee; or</text> </paragraph> <paragraph num="(d)"> <text>Other stated reason for exclusion.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Forms marked “invalid” shall show the reason for invalidity as follows:</text> <paragraph num="(a)"> <text>Illegible;</text> </paragraph> <paragraph num="(b)"> <text>A duplicate showing of interest form for the same petitioner;</text> </paragraph> <paragraph num="(c)"> <text>Fraudulent; or</text> </paragraph> <paragraph num="(d)"> <text>Other stated reason for invalidity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>If an employee files one showing of interest form for more than one exclusive representative, one form for each exclusive representative shall be valid if the showing of interest form otherwise complies with this subtitle.</text> </paragraph> <paragraph num="C."> <text>The number of accepted showing of interest forms shall be tabulated.</text> </paragraph> <paragraph num="D."> <text>If the Executive Director determines the showing of interest is not adequate, the Executive Director shall allow the petitioner a minimum of an additional 30 days to submit additional showing of interest forms after the petitioner is notified of the determination.</text> </paragraph> <paragraph num="E."> <text>Showing of interest forms are confidential and may not be released unless a petition is declared invalid. If a petition is declared invalid, the marked showing of interest forms shall be returned to the petitioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Petitioned-for Bargaining Unit."> <paragraph num="A."> <text>Scope of Board Authority over Bargaining Units.</text> <paragraph num="(1)"> <text>The Board or its delegee shall decide if the bargaining unit identified in the petition is appropriate.</text> </paragraph> <paragraph num="(2)"> <text>The Board may not modify any bargaining unit defined prior to June 30, 2023.</text> </paragraph> <paragraph num="(3)"> <text>The Board may not modify any bargaining unit covered by a collective bargaining agreement in effect on June 30, 2023.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If there is no dispute about the appropriateness of the petitioned for bargaining unit, the Board or its delegee shall, either along with other orders about the election or separately, order the petitioned-for unit as appropriate for the election, or certify the petitioner as the unit’s representative pursuant to COMAR 14.30.08.09, and for bargaining.</text> </paragraph> <paragraph num="C."> <text>If the appropriateness of the petitioned-for bargaining unit is disputed, the Board shall:</text> <paragraph num="(1)"> <text>Conduct a hearing; and</text> </paragraph> <paragraph num="(2)"> <text>Determine the appropriate bargaining unit and issue an order defining the unit accordingly.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the bargaining unit determined appropriate by the Board differs from the petitioned-for bargaining unit, the Board or its delegee may:</text> <paragraph num="(1)"> <text>Dismiss the petition;</text> </paragraph> <paragraph num="(2)"> <text>Direct an election in the appropriate bargaining unit if at least 30 percent of the employees counted towards the showing of interest are employed in the appropriate bargaining unit; or</text> </paragraph> <paragraph num="(3)"> <text>Certify the petitioner as the representative of the unit without an election pursuant to Regulation .09 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Certification Without Election."> <paragraph num="A."> <text>At the time of the showing of interest, the Board shall certify the employee organization as the exclusive representative without an election if:</text> <paragraph num="(1)"> <text>A petition for an exclusive representative has been filed for a bargaining unit;</text> </paragraph> <paragraph num="(2)"> <text>The Board finds that a majority of the employees in the bargaining unit have signed valid authorizations designating the employee organization as their exclusive representative; and</text> </paragraph> <paragraph num="(3)"> <text>No other employee organization is currently certified or recognized as the exclusive representative of the bargaining unit.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the Board certifies an employee organization as an exclusive representative under §A of this regulation, the Executive Director shall notify all parties of this certification.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Posting of Petitions."> <paragraph num="A."> <text>As soon as practicable, but not later than 5 business days after a determination that a lawful election shall be conducted, the Executive Director shall post a copy of the petition on the bulletin board outside the Board’s office, and on the Board’s website, showing the date of posting.</text> </paragraph> <paragraph num="B."> <text>A posted election petition shall remain posted until the requested election is completed or until, for any reason, the petition is dismissed.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Method of Voting."> <paragraph num="A."> <text>The available methods of voting are in-person, by mail or by electronic means.</text> </paragraph> <paragraph num="B."> <text>No matter which method is used, voting shall be by secret ballot.</text> </paragraph> <paragraph num="C."> <text>The voting method preferred by the petitioner, if any, shall be used, unless another employee organization that will be on the ballot requests a different method.</text> </paragraph> <paragraph num="D."> <text>If there is a dispute between two or more employee organizations on the voting method, the Board shall designate the method of voting.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Time Period for Voting."> <paragraph num="A."> <text>Eligible voters shall be given at least 10 days to vote with the final day for voting within 90 days of the date the Board received the election petition.</text> </paragraph> <paragraph num="B."> <text>For on-site voting, each of the 10 days for voting shall be a working day for employees.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Preparation for Election."> <paragraph num="A."> <text>The Executive Director, or designee, shall consult with the public employer and the petitioners about the 10-day time period for election voting. The Executive Director or designee may require the parties to attend a preelection conference in person or virtually.</text> </paragraph> <paragraph num="B."> <text>Whether by consultation or preelection conference, or both, the Executive Director or designee shall gather information on relevant election factors to determine the:</text> <paragraph num="(1)"> <text>Tentative dates of election;</text> </paragraph> <paragraph num="(2)"> <text>Times of election on each date;</text> </paragraph> <paragraph num="(3)"> <text>Place of election;</text> </paragraph> <paragraph num="(4)"> <text>Identity of eligible voters; and</text> </paragraph> <paragraph num="(5)"> <text>Method of voting.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Notice of Election."> <paragraph num="A."> <text>Within 30 days of the filing of a valid petition of election, the Executive Director shall send a notice of election indicating that a valid petition has been filed and that an election will be conducted to:</text> <paragraph num="(1)"> <text>The petitioner;</text> </paragraph> <paragraph num="(2)"> <text>All interested employee organizations that qualified for the ballot; and</text> </paragraph> <paragraph num="(3)"> <text>The employer.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The notice of election shall provide a sample ballot and identify:</text> <paragraph num="(1)"> <text>The employer;</text> </paragraph> <paragraph num="(2)"> <text>The bargaining unit;</text> </paragraph> <paragraph num="(3)"> <text>Choices presented to the voter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The notice of an on-site election shall include:</text> <paragraph num="(1)"> <text>The 10 days for voting;</text> </paragraph> <paragraph num="(2)"> <text>The location of polling places; and</text> </paragraph> <paragraph num="(3)"> <text>The hours the polls will be open.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The notice of a mail ballot election shall include:</text> <paragraph num="(1)"> <text>The date the ballots will be mailed or distributed to the voters, provided that the ballots will be mailed approximately 2 business days before the time period for voting;</text> </paragraph> <paragraph num="(2)"> <text>The 14-day time period in which mail ballots may be postmarked for return to the Executive Director, provided that the final day of the period is not later than 90 days after the election petition is filed; and</text> </paragraph> <paragraph num="(3)"> <text>The date and time the ballots will be counted;</text> </paragraph> <paragraph num="(4)"> <text>The place and time of ballot counting; and</text> </paragraph> <paragraph num="(5)"> <text>Further information that the Executive Director considers appropriate.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The notice of an electronic voting election shall include:</text> <paragraph num="(1)"> <text>The 10 days for voting; and</text> </paragraph> <paragraph num="(2)"> <text>The name of the vendor who will communicate with the voter about how to vote.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Posting Notice of Election.</text> <paragraph num="(1)"> <text>A copy of the notice of election and the sample ballot shall be posted at the Board’s office at least 21 days before the election.</text> </paragraph> <paragraph num="(2)"> <text>A copy of the notice of election and the sample ballot shall be posted by the employer at all work locations where notices are customarily posted for the benefit of employees in the bargaining unit. The employer shall post the notice of election and sample ballot for at least 21 days before the election or distribution of mail ballots, or for at least 14 days if the time before the election or ballot distribution is shorter, and post them through the end of the election.</text> </paragraph> <paragraph num="(3)"> <text>Posting requirements may be modified by mutual written agreement of all parties filed with and approved by the Executive Director.</text> </paragraph> <paragraph num="(4)"> <text>Notwithstanding §F(2) of this regulation, the Executive Director may tailor posting requirements to provide adequate notice to employees.</text> </paragraph> <paragraph num="(5)"> <text>The employer shall take reasonable precautions to ensure that notices of election and sample ballots are not altered, covered, defaced, or removed before the completion of the election. If a notice is so affected, the employer shall replace the notice of election and sample ballots with a new notice.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Withdrawal from Election."> <paragraph num="A."> <text>Prior to Notice of Election: When a withdrawal request is received prior to the sending of the notice of election, the Board or its delegee shall grant the request without prejudice to the subsequent filing of a new petition by the petitioner.</text> </paragraph> <paragraph num="B."> <text>After sending of the Notice of Election. When a withdrawal request is received after the notice of election was sent, the Board shall grant the request, but may bar that party from refiling a petition for a period of 6 months from the grant of withdrawal.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Ballots."> <paragraph num="A."> <text>The Executive Director shall prepare and distribute official ballots.</text> </paragraph> <paragraph num="B."> <text>Ballots shall contain the name of each candidate for representative along with a final choice of “no exclusive representative”.</text> </paragraph> <paragraph num="C."> <text>The order of candidates on the ballots shall be determined by drawing lots under the administration of the Executive Director.</text> </paragraph> <paragraph num="D."> <text>Eligible candidates in a runoff election shall be listed as they appeared on the initial ballot.</text> </paragraph> <paragraph num="E."> <text>The format of the ballot shall to the extent possible be the same for mail and electronic voting elections as for on-site elections.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Voter List."> <paragraph num="A."> <text>No later than 10 days prior to the start of voting, the employer shall provide an up-to-date and accurate voter list to the Executive Director.</text> </paragraph> <paragraph num="B."> <text>The voter list shall contain the following information for each employee in the unit eligible to vote:</text> <paragraph num="(1)"> <text>Full name;</text> </paragraph> <paragraph num="(2)"> <text>Job title;</text> </paragraph> <paragraph num="(3)"> <text>Worksite address; and</text> </paragraph> <paragraph num="(4)"> <text>Email address, if any.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Executive Director shall promptly provide the voter list to the petitioner and all other employee organizations included in the election.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Conduct of Elections."> <paragraph num="A."> <text>The anonymity of ballots shall be maintained to the greatest extent possible.</text> </paragraph> <paragraph num="B."> <text>On-Site Elections.</text> <paragraph num="(1)"> <text>Voting shall be scheduled during workdays whenever possible and polling places and voting times shall permit reasonable access by voters. Public employers shall grant reasonable release time to employees so that the employees can vote during their workday or shift.</text> </paragraph> <paragraph num="(2)"> <text>The Executive Director shall oversee the election. At the discretion of the Executive Director, the election may be overseen by an election judge who shall be a board member or other designated individual who is selected based upon qualifications and integrity.</text> </paragraph> <paragraph num="(3)"> <text>The Executive Director or election judge shall be solely responsible for:</text> <paragraph num="(a)"> <text>The conduct of the election;</text> </paragraph> <paragraph num="(b)"> <text>The regulation of the polling site and immediate environs, including the designation of the boundaries of the polling areas;</text> </paragraph> <paragraph num="(c)"> <text>The maintenance of voting materials, including ballots;</text> </paragraph> <paragraph num="(d)"> <text>The counting of ballots and recording of the results; and</text> </paragraph> <paragraph num="(e)"> <text>The certification of the accuracy of the ballot count.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>There shall be no electioneering of any kind within the marked and designated polling areas. In addition, no voter shall be subjected to intimidation, duress, or coercion during an election. The Board may set aside an election outcome favorable to a party who substantially and materially violates this provision, and order remedies for the violation, which might include a new election.</text> </paragraph> <paragraph num="(5)"> <text>If there is more than one polling place, the Executive Director or election judge shall sequester ballots from each location until counted. Sequestered ballots shall be sealed in an envelope or other appropriate container and delivered to the counting location.</text> </paragraph> <paragraph num="(6)"> <text>Election Observers. Each employee organization participating in an on-site election may be represented by one observer who has no supervisory power over employees who are voting per bargaining unit, at each polling place, to observe:</text> <paragraph num="(a)"> <text>The voting activities; and</text> </paragraph> <paragraph num="(b)"> <text>The counting of the ballots and the certification of the accuracy of the ballot count.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The public employer may designate one observer who is not a supervisor of any of the employees who are eligible to vote in the election, per bargaining unit, at each polling place, to observe:</text> <paragraph num="(a)"> <text>The voting activities; and</text> </paragraph> <paragraph num="(b)"> <text>The counting of the ballots and the certification of the accuracy of the ballot count.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>The participating unions and the public employer shall provide the Executive Director, at least 3 days before the start of the election, with the names of their designated observers and no more than two alternate observers for each one, unless otherwise agreed to by the parties and the Executive Director, who may observe in place of, but not in addition to, a designated observer.</text> </paragraph> <paragraph num="(9)"> <text>The final certification of the accuracy of the ballot count shall be by the Executive Director.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Mail Ballot Elections.</text> <paragraph num="(1)"> <text>On the scheduled date for mailing ballots, the Executive Director shall mail to each eligible voter:</text> <paragraph num="(a)"> <text>An official ballot;</text> </paragraph> <paragraph num="(b)"> <text>A “Secret Ballot Envelope”;</text> </paragraph> <paragraph num="(c)"> <text>A “Mail Ballot Envelope”; and</text> </paragraph> <paragraph num="(d)"> <text>Voting instructions.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The voting instructions shall instruct the voter to return the ballot to the Board in the two envelopes as follows:</text> <paragraph num="(a)"> <text>The voted ballot shall be placed in the smaller envelope marked “Secret Ballot Envelope”, which contains the name of the bargaining unit and any additional instructions required by the Executive Director;</text> </paragraph> <paragraph num="(b)"> <text>The smaller envelope shall then be placed in the larger “Mail Ballot Envelope”; and</text> </paragraph> <paragraph num="(c)"> <text>The “Mail Ballot Envelope” is then to be mailed or delivered to the Executive Director.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The “Mail Ballot Envelope” shall be:</text> <paragraph num="(a)"> <text>Preaddressed; and</text> </paragraph> <paragraph num="(b)"> <text>Postage prepaid.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The “Mail Ballot Envelope” shall contain a space to identify:</text> <paragraph num="(a)"> <text>The voter by name;</text> </paragraph> <paragraph num="(b)"> <text>The employer;</text> </paragraph> <paragraph num="(c)"> <text>The bargaining unit;</text> </paragraph> <paragraph num="(d)"> <text>The voter’s signature; and</text> </paragraph> <paragraph num="(e)"> <text>Other information that the Executive Director may require.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>A ballot shall be voided if the voter fails to provide or destroys any required identity information on the “Mail Ballot Envelope”.</text> </paragraph> <paragraph num="(6)"> <text>Each “Mail Ballot Envelope” shall be authenticated against the list of eligible voters when the ballots are counted.</text> </paragraph> <paragraph num="(7)"> <text>“Secret Ballot Envelopes” shall be removed from authenticated “Mail Ballot Envelopes” and deposited in a suitable container with other “Secret Ballot Envelopes” to preserve anonymity.</text> </paragraph> <paragraph num="(8)"> <text>Each party to a mail ballot election may be represented by one representative to observe the counting of the ballots and the certification of the accuracy of the ballot count. The Executive Director shall arrange for the opportunity for this observation.</text> </paragraph> <paragraph num="(9)"> <text>After all the authenticated “Secret Ballot Envelopes” are collected, the ballots shall be removed and counted at random and recorded in the presence of election observers, if any.</text> </paragraph> <paragraph num="(10)"> <text>All challenges to mail ballots due to the identity or eligibility of the voter shall be raised before the removal of the “Secret Ballot Envelope” from the “Mail Ballot Envelope”.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Electronic Voting.</text> <paragraph num="(1)"> <text>The Board shall designate the vendor who will administer the electronic voting. The parties shall split the costs of the vendor.</text> </paragraph> <paragraph num="(2)"> <text>Any challenges to a voter’s eligibility to vote shall be resolved before the employee votes.</text> </paragraph> <paragraph num="(3)"> <text>After eligibility is resolved, the Board shall ensure that a list of voters is produced, and the Board shall provide that list to the vendor and all parties.</text> </paragraph> <paragraph num="(4)"> <text>Log-in credentials for voting shall be randomly assigned to each voter so that nobody other than the voter can access each log-in credential.</text> </paragraph> <paragraph num="(5)"> <text>One observer from each party may observe how credentials are prepared and watch the tabulation.</text> </paragraph> <paragraph num="(6)"> <text>The electronic voting system cannot link a voter to their vote, once cast, and nobody is permitted to attempt to use the system to make such a link.</text> </paragraph> <paragraph num="(7)"> <text>The vendor shall retain the voting system and digital records until the election is complete.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Challenged Ballots."> <paragraph num="A."> <text>A voter may be challenged for cause by a designated observer described in Regulation .18 of this chapter.</text> </paragraph> <paragraph num="B."> <text>If a voter is challenged for cause, the challenged voter may vote and shall then place the ballot in an envelope marked only “Secret Ballot”.</text> </paragraph> <paragraph num="C."> <text>The “Secret Ballot Envelope” shall next be sealed in a separate envelope marked “Challenged Ballot Envelope”, which identifies on the outside:</text> <paragraph num="(1)"> <text>The identity of the challenged voter;</text> </paragraph> <paragraph num="(2)"> <text>The name of the person making the challenge; and</text> </paragraph> <paragraph num="(3)"> <text>The reason for the challenge.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The challenged voter shall then report to the Board representative at the election, who shall allow the challenged voter to place the “Challenged Ballot Envelope” into the container with the regularly cast ballots.</text> </paragraph> <paragraph num="E."> <text>If a mail ballot election, the Board representative shall write on the outer envelope the cause of the challenge and set the challenged ballot aside.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Void Ballots."> <paragraph num="A."> <text>The Executive Director or the election judge shall determine a ballot void if:</text> <paragraph num="(1)"> <text>The ballot does not reveal the intent of the voter due to:</text> <paragraph num="(a)"> <text>Mutilation;</text> </paragraph> <paragraph num="(b)"> <text>Soiling; or</text> </paragraph> <paragraph num="(c)"> <text>Any other reason;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In the case of a mail ballot, for the reasons in §A(1) of this regulation or if it is returned without all required voter identification.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A void ballot may not be considered in the tally.</text> </paragraph> <paragraph num="C."> <text>The Executive Director or the Executive Director’s designee shall liberally view ballots in favor of validity by focusing on the objective of determining the intent of the voter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Tally of Ballots."> <paragraph num="A."> <text>Ballots shall be counted at a place and time prescribed by the Executive Director, or the Executive Director’s designee, and shall be open to public viewing.</text> </paragraph> <paragraph num="B."> <text>The Executive Director, or the Executive Director’s designee, shall undertake the counting of the ballots. One observer from the public employer and one observer from each party to the election may observe this ballot counting. All observers shall observe the counting in the same way, either all in-person or all virtually.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Election Result."> <paragraph num="A."> <text>The Executive Director shall, after the tally of ballots is completed, report to the parties within 5 days:</text> <paragraph num="(1)"> <text>The choice earning a majority of votes cast, if any choice on the ballot received such a majority; or</text> </paragraph> <paragraph num="(2)"> <text>If none of the choices on the ballot receive a majority of the valid votes cast in an election, that the Board will conduct a runoff election between the choices that received the two highest number of votes in the election.</text> </paragraph> </paragraph> <paragraph num="B."> <text>When providing either one of these reports, the Executive Director shall also provide to the parties the official tally of ballots. The Executive Director shall maintain proof that the official tally was shared with the parties, and produce the tally upon request by any party.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Post-Election Procedures."> <paragraph num="A."> <text>Challenged Ballots. When there are sufficient unresolved challenges to affect the election results, within 10 days after the Executive Director sends the election result, the party or parties making the challenges shall file with the Board a statement of reasons for each challenge and any supporting evidence.</text> </paragraph> <paragraph num="B."> <text>Objections. Any objection to the election shall:</text> <paragraph num="(1)"> <text>Be filed with the Board, and served on all other parties, within 10 days of the Executive Director sending the election result, even when challenged ballots are sufficient in number to determine the outcome of the election; and</text> </paragraph> <paragraph num="(2)"> <text>Include a specific statement of the reasons for each objection, including describing how the election outcome was allegedly prejudiced, and also provide any supporting evidence.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the challenged ballots are sufficient in number to affect the results of the election or if objections are filed, the Executive Director, or another person designated by the Board, shall conduct an investigation and make a report and recommendation of findings to the Board on the merits of the objections filed or the validity of any determinative challenges.</text> </paragraph> <paragraph num="D."> <text>Hearings. If the Board has reason to believe that the allegations or challenges may be valid, the Board shall order a hearing, if necessary, and make a determination on the findings made in the Executive Director’s or the Board designee’s report. The procedures of COMAR 14.30.08 shall apply to any hearing ordered.</text> </paragraph> <paragraph num="E."> <text>Final Board Action. After consideration of the findings made by the Executive Director or designee, and any hearing held, the Board shall certify the results of the election, as appropriate, issuing a certification of representative, overturning the results of the election, ordering a new election, or dismissing the petition or petitions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Runoff Election."> <paragraph num="A."> <text>If none of the choices on the ballot receive a majority of the valid votes cast in an election, the Executive Director shall conduct a runoff election between the two choices that received the two largest numbers of votes in the initial election.</text> </paragraph> <paragraph num="B."> <text>A runoff election shall be held at least 10 days, and not later than 30 days, after the Board resolves all relevant and properly filed objections or challenges to ballots.</text> </paragraph> <paragraph num="C."> <text>Only employees who were eligible to vote in the initial election and who remain in the bargaining unit on the dates of the runoff election are eligible to vote in the runoff election.</text> </paragraph> <paragraph num="D."> <text>The order of appearance of the choices on a runoff ballot shall be the same as on the initial ballot.</text> </paragraph> <paragraph num="E."> <text>The provisions of COMAR 14.30.10.18—.23 apply to the runoff election.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); adopted permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 adopted effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 under State Higher Education Labor Relations Board, Impasse Procedures repealed and new Regulations .01—.24 under Public Employee Relations Board, Representation Elections adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="11" heading="Hearings"> <regulation prefix="Regulation" num=".01" heading="Filing Petitions."> <text>A petition for an election to determine whether an exclusive representative should no longer represent a unit, known as a “decertification petition” and a “decertification election” may be filed only by an employee in that unit who is currently so represented. An employer may not initiate or assist an employee or group of employees in the filing of a decertification petition.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="When to File the Petition."> <paragraph num="A."> <text>A decertification petition may not be filed for a bargaining unit within 2 years following the final date of a previous election conducted for that bargaining unit.</text> </paragraph> <paragraph num="B."> <text>If an agreement between the public employer and incumbent employee organization is in effect, a valid decertification petition may be filed and an election held only if the petition is filed not more than 120 days nor less than 90 days prior to expiration of the agreement.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Showing of Interest."> <text>For a decertification petition and election, a showing of interest form is valid if the signatures were collected within the 9-month period immediately preceding the date on which the petition for election is filed.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Decertification Petition Proceeding — Participants."> <paragraph num="A."> <text>If there is no intervening employee organization in a decertification petition proceeding, an election to decertify an incumbent certified employee organization may not be held if the incumbent provides the Board with a written disclaimer of any representation interest in the unit in response to the Notice of Election.</text> </paragraph> <paragraph num="B."> <text>If there is an intervenor, an election shall be held if the intervening employee organization proffers a 30 percent showing of interest in a reasonable period of time prior to the date originally scheduled for the election.</text> </paragraph> <paragraph num="C."> <text>If there is no intervening employee organization, an election will not be conducted if the petitioner provides the Board with a written request to withdraw the petition.</text> </paragraph> <paragraph num="D."> <text>If there is an intervenor, an election will be conducted if the intervening employee organization proffers a 30 percent showing of interest in a reasonable period of time prior to the date originally scheduled for the election.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Method of Voting; Certain Applicable Regulations."> <paragraph num="A."> <text>The Board shall designate the method of voting based on the request of one or more employee organizations on the ballot.</text> </paragraph> <paragraph num="B."> <text>If there is a dispute between two or more employee organizations on the ballot over the method of voting, the Board shall designate the method of voting.</text> </paragraph> <paragraph num="C."> <text>Except for the provisions in this chapter, the Board shall abide, the Board shall abide by COMAR 14.30.10 in processing decertification petitions and elections.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 1, 2002 (29:6 Md. R. 568)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective December 22, 2003 (30:25 Md. R. 1851)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); amended permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 repealed and new Regulation .08 adopted effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .22 amended effective October 22, 2007 (34:21 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23A amended as an emergency provision effective December 23, 2002 (30:13 Md. R. 851); amended permanently effective September 29, 2003 (30:19 Md. R. 1334)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23A amended effective December 22, 2003 (30:25 Md. R. 1851)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23B-1 adopted effective September 29, 2003 (30:19 Md. R. 1335)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 11, 2022 (49:14 Md. R. 704)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.27 under State Higher Education Labor Relations Board, Hearings repealed and new Regulations .01—.05 under Public Employee Relations Board, Decertification Elections adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="12" heading="Petitions for Unit Clarification"> <regulation prefix="Regulation" num=".01" heading="Petition."> <paragraph num="A."> <text>A unit clarification petition alleges that an employee organization is currently recognized by the public employer as the representative of employees in the unit, but the petitioner seeks clarification of the placement of certain employees or job classifications in that unit.</text> </paragraph> <paragraph num="B."> <text>A unit clarification petition may be filed by the public employer or recognized employee organization.</text> </paragraph> <paragraph num="C."> <text>Content.</text> <paragraph num="(1)"> <text>A unit clarification petition seeks the Board to determine whether particular employees shall be included in or excluded from an existing unit.</text> </paragraph> <paragraph num="(2)"> <text>A unit clarification petition shall contain a description of the proposed clarification and a statement of the reasons.</text> </paragraph> <paragraph num="(3)"> <text>A certified employee organization shall also submit a copy of the certification for the unit if available.</text> </paragraph> <paragraph num="(4)"> <text>All parties shall submit copies of any presently existing or recently expired contracts covering any of the employees at issue.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Examples of common reasons for unit clarification petitions include:</text> <paragraph num="(1)"> <text>Changes in the employer’s operations and the parties are unable to agree whether or not the affected employees shall be included in or excluded from the recognized unit;</text> </paragraph> <paragraph num="(2)"> <text>To resolve eligibility or inclusion issues that were deferred in the preelection process and thus not agreed to by the parties or determined by the Board, Executive Director, or other designee; and</text> </paragraph> <paragraph num="(3)"> <text>To determine the status of individuals who voted subject to challenge in an election but whose ballots were not determinative.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Board Actions Regarding Bargaining Units."> <text>The Board may not clarify:</text> <paragraph num="A."> <text>Any bargaining unit defined prior to June 30, 2023; or</text> </paragraph> <paragraph num="B."> <text>Any bargaining unit covered by a collective bargaining agreement in effect on June 30, 2023.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Investigation."> <paragraph num="A."> <text>Review of Petition.</text> <paragraph num="(1)"> <text>On receipt of the unit clarification petition, the Executive Director or designee shall advise the parties that the determination may be based on the investigation, without the need for a hearing.</text> </paragraph> <paragraph num="(2)"> <text>The Executive Director or designee shall review the petition and any supporting materials and related cases. The Executive Director or designee shall ensure that there are no fatal defects on the face of the petition and that the requested changes and the reasons are sufficiently described.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If it appears that a question concerning representation exists, or if for any other reason it appears that the case would ultimately be dismissed, the Executive Director or designee shall advise the petitioner and a withdrawal request shall be solicited. If a withdrawal is not received, the Board shall issue a decision and order dismissing the petition.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Hearing."> <paragraph num="A."> <text>While investigating, the Executive Director or designee shall decide whether a hearing is necessary to decide issues presented by the unit clarification petition. The Executive Director or designee may make a determination based on the investigation, without a hearing. If a hearing is found necessary, the Executive Director or designee shall make a recommendation to the Board.</text> </paragraph> <paragraph num="B."> <text>If the Board chooses a hearing for the unit clarification petition, the Board shall also assign a presiding officer for the hearing. The presiding officer and parties shall abide by the applicable hearing and post-hearing procedures set forth in this chapter for a unit clarification petition hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Determination."> <paragraph num="A."> <text>If no hearing is conducted, the Executive Director or other designee shall prepare a written recommendation to the Board of the appropriate course of action to resolve the issues presented by the petition.</text> </paragraph> <paragraph num="B."> <text>If a hearing is conducted, the presiding officer shall prepare a written recommendation to the Board of the appropriate course of action to resolve the issues presented by the petition.</text> </paragraph> <paragraph num="C."> <text>Based on the recommendation the Board receives, the Board shall prepare a decision and order that clarifies the bargaining unit or dismisses the petition.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 22, 2010 (37:6 Md. R. 480)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 under State Higher Education Labor Relations Board, Procedures Governing Employee Information repealed and new Regulations .01—.05 under Public Employee Relations Board, Petitions for Unit Clarification adopted effective May 13, 2024 (51:9 Md. R. 414)</annotation> </annotations> </chapter> <chapter num="13" heading="Collective Bargaining"> <regulation prefix="Regulation" num=".01" heading="Negotiations."> <paragraph num="A."> <text>The designated representatives of the employer and of the exclusive representative shall:</text> <paragraph num="(1)"> <text>Identify the participants for negotiations;</text> </paragraph> <paragraph num="(2)"> <text>Establish the amount of release time for negotiating;</text> </paragraph> <paragraph num="(3)"> <text>Set a tentative schedule and agenda for negotiations;</text> </paragraph> <paragraph num="(4)"> <text>Establish any other matter deemed pertinent and necessary before beginning any other negotiation activities;</text> </paragraph> <paragraph num="(5)"> <text>Meet at reasonable times and locations agreeable to all parties; and</text> </paragraph> <paragraph num="(6)"> <text>Negotiate a written agreement by collective bargaining in good faith.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Negotiations shall address:</text> <paragraph num="(1)"> <text>Wages;</text> </paragraph> <paragraph num="(2)"> <text>Hours of work;</text> </paragraph> <paragraph num="(3)"> <text>Other terms and conditions of employment; and</text> </paragraph> <paragraph num="(4)"> <text>Any matter required by applicable law.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A party to collective bargaining negotiations may not be compelled to:</text> <paragraph num="(1)"> <text>Agree to a proposal; or</text> </paragraph> <paragraph num="(2)"> <text>Make a concession.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An employer may not be required to negotiate over any matter that is inconsistent with applicable law, but an employer may reach agreement regarding any such matter if it is understood that the agreement with respect to the matter cannot become effective unless the applicable law is amended by the General Assembly.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §§22-306(e)—22-205(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2024 (51:9 Md. R. 441)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective July 21, 2025 (52:14 Md. R. 713)</annotation> </annotations> </chapter> <chapter num="14" heading="Impasse Procedures for Collective Bargaining"> <regulation prefix="Regulation" num=".01" heading="State Government Employees."> <paragraph num="A."> <text>Offer of or Request for Mediation. The Board may, on its own initiative, offer mediation to the parties. Either party may also request that the Board appoint a mediator. Acceptance of an offer of mediation or agreement to participate in mediation is voluntary. If either party declines mediation after it has been requested by a party or offered by the Board, that party shall decline the mediation services in writing with a brief statement of the reason for declining to participate in mediation.</text> </paragraph> <paragraph num="B."> <text>An original and one copy of the request for mediation shall be filed with the Board and served on the other party.</text> </paragraph> <paragraph num="C."> <text>Mediation for State government employees is a consensual process by which the parties are assisted by a mediator in voluntarily arriving at an agreement and under which neither party is nor can be compelled to make a concession or enter into an agreement.</text> </paragraph> <paragraph num="D."> <text>Appointment of Mediator. Upon receipt of a request for mediation, the Board may, with the consent of both parties and after consultation with the parties, appoint an impartial and disinterested individual as mediator, including a Member of the Board, or may request mediation by Federal Mediation and Conciliation Service.</text> </paragraph> <paragraph num="E."> <text>Confidential Nature of Mediation.</text> <paragraph num="(1)"> <text>Any information, either written or oral, disclosed by the parties to the mediator in the performance of mediation duties may not be discussed by the mediator voluntarily or by compulsion unless approved by the parties involved.</text> </paragraph> <paragraph num="(2)"> <text>The mediator may not disclose any information with regard to any mediation conducted on behalf of any party to any cause pending in a proceeding before a court, Board, or investigatory body. The mediator shall respectfully decline, by reason of this regulation, to divulge any information disclosed by a party in the performance of the mediator’s duties.</text> </paragraph> <paragraph num="(3)"> <text>The request for mediation and the parties’ responses are confidential and may not be disclosed by any party.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Public School Certificated and Non-Certificated Employees: Impasses in Negotiations over Collective Bargaining Agreements."> <paragraph num="A."> <text>Requests for Determination that an Impasse in Negotiations Has Been Reached.</text> <paragraph num="(1)"> <text>A party requesting a determination that an impasse in negotiations has been reached may request relief from the Board by completing and filing the appropriate form.</text> </paragraph> <paragraph num="(2)"> <text>In response to a filing of the appropriate form, the Board shall, after internal deliberations and investigation, issue either:</text> <paragraph num="(a)"> <text>The notice of determination that an impasse in negotiations has been reached; or</text> </paragraph> <paragraph num="(b)"> <text>The notice of determination that an impasse in negotiations has not been reached.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Determination of Impasse in Negotiations.</text> <paragraph num="(1)"> <text>If the Board determines that an impasse is reached in negotiations between a public-school employer and an employee organization that is designated as an exclusive negotiating agent, the Board shall within 10 calendar days:</text> <paragraph num="(a)"> <text>Request last and best offers from the public-school employer and the employee organization, which may not include items or topics not previously raised in the bargaining process. The last and best offers shall list separately every term or condition of employment in dispute and the demand of the party making the last and best offer; and</text> </paragraph> <paragraph num="(b)"> <text>Order the public-school employer and the employee organization to commence mediation within 14 days after the Board’s determination that an impasse has been reached.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Within 5 calendar days after an order to mediate, the parties shall select a mediator by:</text> <paragraph num="(a)"> <text>Agreement; or</text> </paragraph> <paragraph num="(b)"> <text>Alternate striking from a list of seven neutral parties furnished by the Federal Mediation and Conciliation Service or the American Arbitration Association.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Further proceedings for resolving the impasse shall be conducted as set forth in Education Article, §6-406(e)(4)—(14), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public School Certificated and Non-Certificated Employees: Impasses in Negotiations over New Employee Processing."> <paragraph num="A."> <text>If any negotiations over new employee processing have not been resolved within 45 days after the first meeting of the public school employer and the exclusive representative on this matter, or within 60 days after an initial request to negotiate, whichever occurs first, either party may request that the Board declare an impasse.</text> </paragraph> <paragraph num="B."> <text>The regulations governing impasses in negotiations over collective bargaining agreements shall also apply to impasses in negotiations over new employee processing.</text> </paragraph> <paragraph num="C."> <text>In resolving impasses in negotiations over new employee processing, the mediator or Board shall consider the factors identified in Education Article, §6-405(a)(2)(iii), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="State Higher Education Employees."> <paragraph num="A."> <text>Notice of Impasse — Contents. If it appears that an impasse has been reached during collective bargaining negotiations and the parties do not have a ground rule or other agreement providing for the resolution of the impasse, the Executive Director may be notified in writing by one or both of the parties. The notice of impasse shall include the following:</text> <paragraph num="(1)"> <text>The names of the chief negotiators for each party;</text> </paragraph> <paragraph num="(2)"> <text>The expiration date of the existing collective bargaining agreement, if any;</text> </paragraph> <paragraph num="(3)"> <text>A description of the unit affected by the impasse, including the approximate number of employees in the unit;</text> </paragraph> <paragraph num="(4)"> <text>The date when negotiations commenced and the date of the last meeting; and</text> </paragraph> <paragraph num="(5)"> <text>The matters at impasse and any other relevant facts, including a list of specific labor organization or employer demands or both, upon which impasse has been reached.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Voluntary Impasse Assistance.</text> <paragraph num="(1)"> <text>Upon receipt of a notice of impasse, the Executive Director or designee shall initiate an informal inquiry.</text> </paragraph> <paragraph num="(2)"> <text>Unless jointly filed, the Executive Director or designee shall verify with the other party that the parties are at impasse.</text> </paragraph> <paragraph num="(3)"> <text>Upon confirmation or receipt of a joint notice of impasse, the parties may voluntarily agree to mediate the impasse and select a mediator. If the parties are unable to mutually agree on the selection of a mediator, the Chair or Executive Director shall advise the parties of third-party mediation options, which may include a member of the Board, or may request mediation by a third-party mediation service.</text> </paragraph> <paragraph num="(4)"> <text>The parties shall bear any cost associated with the use of third-party mediation services.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Mediator’s Report. If, upon exhaustion of mediation efforts, the dispute remains unresolved, upon agreement of both parties, the mediator may file a fact finding and objective status report with the Board outlining the matters that were resolved and those that remain outstanding.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Community College Faculty: Impasses in Negotiations for Collective Bargaining Agreements."> <paragraph num="A."> <text>Mediation.</text> <paragraph num="(1)"> <text>If a party determines that an impasse exists, that party may request the assistance of the Board in mediation or engage another mediator mutually agreed to by the parties.</text> </paragraph> <paragraph num="(2)"> <text>If a party requests mediation assistance from the Board, an original and one copy of the request for mediation shall be filed with the Board and served on the other party.</text> </paragraph> <paragraph num="(3)"> <text>Mediation for community college faculty is a consensual process by which the parties are assisted by a mediator in voluntarily arriving at an agreement and under which neither party is nor can be compelled to make a concession or enter into an agreement.</text> </paragraph> <paragraph num="(4)"> <text>Appointment of Mediator. Upon receipt of a request for mediation, the Board may, with the consent of both parties and after consultation with the parties, appoint an impartial and disinterested individual as mediator, which may be a member of the board, or may request mediation by the Federal Mediation and Conciliation Service.</text> </paragraph> <paragraph num="(5)"> <text>Confidential Nature of Mediation.</text> <paragraph num="(a)"> <text>Any information, either written or oral, disclosed by the parties to the mediator in the performance of mediation duties may not be discussed by the mediator voluntarily or by compulsion unless approved by the parties involved.</text> </paragraph> <paragraph num="(b)"> <text>The mediator may not disclose any information with regard to any mediation conducted on behalf of any party to any cause pending in a proceeding before a court, Board, or investigatory body. The mediator shall respectfully decline, by reason of this regulation, to divulge any information disclosed by a party in the performance of the mediator’s duties.</text> </paragraph> <paragraph num="(c)"> <text>The request for mediation and the parties’ responses are confidential and may not be disclosed by any party.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Fact-Finding Instead of Mediation.</text> <paragraph num="(1)"> <text>If the parties do not mutually agree to mediation, then either party may petition the Board to initiate fact-finding. A petitioning party shall inform the Board of any notification deadlines to which it is subject.</text> </paragraph> <paragraph num="(2)"> <text>The Board shall, based on the status of bargaining and the budget schedule of the public employer, determine whether an impasse exists, and if the Board finds an impasse it shall notify the parties that fact-finding is to be initiated.</text> </paragraph> <paragraph num="(3)"> <text>A public employer and the exclusive representative may select their own fact finder.</text> </paragraph> <paragraph num="(4)"> <text>If the parties have not selected their own fact finder within 5 days of any required notification, or within 20 days of petitioning the Board for fact-finding, whichever is sooner, the Board shall submit to the parties the names of five qualified individuals.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Each party alternately shall strike two names from the list with the remaining individual being the fact finder.</text> </paragraph> <paragraph num="D."> <text>Fact-finding shall be conducted as set forth in Education Article, §16-707(b)—(e), Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> <chapter num="15" heading="Negotiability Disputes"> <regulation prefix="Regulation" num=".01" heading="Petition."> <paragraph num="A."> <text>If a negotiability dispute arises between the employer and the exclusive representative, either party may petition the Board for expedited resolution of the dispute.</text> </paragraph> <paragraph num="B."> <text>The petition shall set forth the material facts of the dispute and the precise question of negotiability submitted for resolution and include certificate of service upon the other party.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Expedited Resolution."> <paragraph num="A."> <text>The petition filed pursuant to Regulation .01 of this chapter shall be given priority by the Board.</text> </paragraph> <paragraph num="B."> <text>As deemed appropriate by the Board, the petition may be set for informal resolution, hearing, or oral argument, or decided upon submission of briefs.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Government Article, §22-306(e), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 13, 2024 (51:9 Md. R. 441)</annotation> </annotations> </chapter> </subtitle> <subtitle num="31" heading="Office for Children"> <chapter num="01" heading="Local Care Teams and State Coordinating Council"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of this chapter is to:</text> <paragraph num="A."> <text>Define the roles and responsibilities of the State Coordinating Council and the local care teams in fostering the development of resources necessary to serve children with intensive needs in the State of Maryland;</text> </paragraph> <paragraph num="B."> <text>Promote interagency coordination in the provision of such services; and</text> </paragraph> <paragraph num="C."> <text>Ensure that State funds for the out-of-State placement of children with intensive needs are allocated in accordance with relevant State and federal laws.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Appropriate service or placement” means a service, placement, or plan of care provided in accordance with the requirements of applicable federal and State laws, including:</text> <paragraph num="(a)"> <text>20 U.S.C. §1400 et seq.;</text> </paragraph> <paragraph num="(b)"> <text>42 U.S.C. §§620 and 670 et seq.;</text> </paragraph> <paragraph num="(c)"> <text>The Child Abuse Prevention and Treatment Act, 42 U.S.C. §5102 et seq.;</text> </paragraph> <paragraph num="(d)"> <text>The Adoptions and Safe Families Act of 1997 (P. L. 105-89);</text> </paragraph> <paragraph num="(e)"> <text>Courts and Judicial Proceedings Article, §3-820, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(f)"> <text>COMAR 13A.05.01 and 13A.05.02;</text> </paragraph> <paragraph num="(g)"> <text>Health-General Article, Title 15, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(h)"> <text>Applicable regulations in COMAR 10.09; and</text> </paragraph> <paragraph num="(i)"> <text>The reauthorization of the Elementary and Secondary Schools Act of 2001, P.L. 107—110 (January 8, 2002).</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Child in Need of Out-of-State Placement.</text> <paragraph num="(a)"> <text>“Child in need of out-of-State placement” means a child who is recommended for or placed in an out-of-home placement outside of the State by a public agency.</text> </paragraph> <paragraph num="(b)"> <text>“Child in need of out-of-State placement” does not include a child:</text> <paragraph num="(i)"> <text>Placed in foster care, as defined in Family Law Article, §5-501, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>Who is in a hospital for 30 continuous days or less.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Child with intensive needs” means a child who has behavioral, educational, developmental, or mental health needs that cannot be met through available public agency resources because:</text> <paragraph num="(a)"> <text>The child’s needs exceed the resources of a single public agency; or</text> </paragraph> <paragraph num="(b)"> <text>There is no legally mandated funding source to meet the child’s needs; or</text> </paragraph> <paragraph num="(c)"> <text>A child is in need of out-of-State placement.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Children’s Cabinet” means those agencies directed by Executive Order:</text> <paragraph num="(a)"> <text>To examine Maryland’s system of services to children and their families; and</text> </paragraph> <paragraph num="(b)"> <text>To facilitate ongoing improvements to this service delivery system.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Cost sheet” means a document which details the cost of needed services.</text> </paragraph> <paragraph num="(6)"> <text>“Family” means an eligible child’s natural, adoptive, or foster parents, and includes:</text> <paragraph num="(a)"> <text>A guardian;</text> </paragraph> <paragraph num="(b)"> <text>A person acting as parent of a child; and</text> </paragraph> <paragraph num="(c)"> <text>A relative or stepparent with whom a child lives.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Funding agency” means the State or local agency designated by State or federal law as responsible for funding or cofunding educational, residential, or treatment services identified in a child’s plan of care.</text> </paragraph> <paragraph num="(8)"> <text>“Funding letter” means a document generated by the Governor’s Office for Children detailing the cost of educational, residential, or treatment services and the designated funding agencies.</text> </paragraph> <paragraph num="(9)"> <text>“Hospital” has the meaning stated in Health-General Article, §19-301, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Local agency” means the local school system, the local management board, and any local or regional departments, divisions, or offices of the State agencies identified in §B(19) of this regulation.</text> </paragraph> <paragraph num="(11)"> <text>“Local Care Team (LCT)” means the interagency body established in each local subdivision in the State for the purpose of providing a forum for interagency discussions and problem solving and offering referrals and information for families of children with intensive needs.</text> </paragraph> <paragraph num="(12)"> <text>“Local Management Board (LMB)” means the interagency body established by each local jurisdiction in the State for the purpose of overseeing and ensuring the implementation of a local interagency delivery system for children, youth, and families in that jurisdiction.</text> </paragraph> <paragraph num="(13)"> <text>“Notification” means the submission of completed documents as determined and required by the State Coordinating Council.</text> </paragraph> <paragraph num="(14)"> <text>“Out-of-State placement” means the placement of a child with intensive needs in a residential facility outside of the State for which State funding is sought, including:</text> <paragraph num="(a)"> <text>Alternative living units;</text> </paragraph> <paragraph num="(b)"> <text>Group homes;</text> </paragraph> <paragraph num="(c)"> <text>Hospitals;</text> </paragraph> <paragraph num="(d)"> <text>Residential facilities for children with disabilities;</text> </paragraph> <paragraph num="(e)"> <text>Residential treatment centers;</text> </paragraph> <paragraph num="(f)"> <text>Wilderness programs; and</text> </paragraph> <paragraph num="(g)"> <text>Other out-of-home settings as needed or appropriate to meet the intensive needs of a child.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Parent advocate” means an individual who is trained by and actively participates in a parents’ support or advocacy organization whose purpose is to support families of children with intensive needs.</text> </paragraph> <paragraph num="(16)"> <text>“Parent or guardian” means the parent, guardian, or person with legal authority to make decisions regarding the placement or other services provided by public agencies to a child with intensive needs..</text> </paragraph> <paragraph num="(17)"> <text>“Plan of care” means the plan developed for the out-of-home placement of a child with intensive needs consistent with:</text> <paragraph num="(a)"> <text>The child’s individualized education program, if the child is a student with disabilities;</text> </paragraph> <paragraph num="(b)"> <text>Any court-ordered services;</text> </paragraph> <paragraph num="(c)"> <text>Services covered and authorized under the Maryland Medical Assistance Program if the child is eligible for medical assistance under Health-General Article, Title 15, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(d)"> <text>Any other service or program mandated by federal or State law with respect to the individual child.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Review” means the SCC discussion of aggregated data compiled by GOC from the notifications submitted by the State placing agencies.</text> </paragraph> <paragraph num="(19)"> <text>“State agency” means the:</text> <paragraph num="(a)"> <text>Maryland Department of Health;</text> </paragraph> <paragraph num="(b)"> <text>Department of Human Services;</text> </paragraph> <paragraph num="(c)"> <text>Department of Juvenile Services;</text> </paragraph> <paragraph num="(d)"> <text>Governor’s Office for Children; and</text> </paragraph> <paragraph num="(e)"> <text>Maryland State Department of Education.</text> </paragraph> </paragraph> <paragraph num="(20)"> <text>“State Coordinating Council (SCC)” means the State interagency body established as a committee of the Children’s Cabinet and which is responsible for:</text> <paragraph num="(a)"> <text>Reviewing and tracking the types, costs, and effectiveness of services required to meet the needs of children who are recommended for out-of-State placements;</text> </paragraph> <paragraph num="(b)"> <text>Coordinating the monitoring of out-of-State placement services to children with intensive needs; and</text> </paragraph> <paragraph num="(c)"> <text>Performing additional functions in accordance with the directives of the Children’s Cabinet.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Membership and Organization of the SCC and the LCT."> <paragraph num="A."> <text>SCC Membership and Organization.</text> <paragraph num="(1)"> <text>The members of the SCC are the following State officials, or their designees:</text> <paragraph num="(a)"> <text>The Secretary of the Maryland Department of Health;</text> </paragraph> <paragraph num="(b)"> <text>The Secretary of the Department of Human Services;</text> </paragraph> <paragraph num="(c)"> <text>The Secretary of the Department of Juvenile Services;</text> </paragraph> <paragraph num="(d)"> <text>The Executive Director of the Governor’s Office for Children; and</text> </paragraph> <paragraph num="(e)"> <text>The State Superintendent of Schools.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Secretary of Budget and Management, or a designee, shall serve as a non-voting, ex officio member of the SCC.</text> </paragraph> <paragraph num="(3)"> <text>The Secretary of the Department of Disabilities, or a designee, shall serve as a non-voting, ex officio member of the SCC.</text> </paragraph> <paragraph num="(4)"> <text>The Children’s Cabinet shall designate up to 3 individuals to serve on the SCC on a rotating basis to represent:</text> <paragraph num="(a)"> <text>Family members or family advocates; and</text> </paragraph> <paragraph num="(b)"> <text>Youth or youth advocates.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The Governor’s Office for Children shall provide staff support for the SCC.</text> </paragraph> <paragraph num="(6)"> <text>The SCC shall be chaired by a voting member as follows:</text> <paragraph num="(a)"> <text>The chairman shall serve a term of 12 months; and</text> </paragraph> <paragraph num="(b)"> <text>The chairmanship shall rotate among all voting members.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The SCC shall establish and develop procedures to:</text> <paragraph num="(a)"> <text>Review notifications for state funding for the out-of-State placement of individual children with intensive needs;</text> </paragraph> <paragraph num="(b)"> <text>Make recommendations regarding the review of such notifications to the SCC; and</text> </paragraph> <paragraph num="(c)"> <text>Perform other functions as identified by the Children’s Cabinet or the SCC.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>LCT Membership and Organization.</text> <paragraph num="(1)"> <text>Each LCT shall consist of at least one designee of each of the following bodies:</text> <paragraph num="(a)"> <text>The Alcohol and Drug Administration;</text> </paragraph> <paragraph num="(b)"> <text>The Department of Juvenile Services;</text> </paragraph> <paragraph num="(c)"> <text>The Developmental Disabilities Administration;</text> </paragraph> <paragraph num="(d)"> <text>The local school system;</text> </paragraph> <paragraph num="(e)"> <text>The Mental Hygiene Administration or the local core service agency;</text> </paragraph> <paragraph num="(f)"> <text>The local department of social services;</text> </paragraph> <paragraph num="(g)"> <text>The local health department; and</text> </paragraph> <paragraph num="(h)"> <text>The local management board.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The LCT membership shall include a parent of a child with intensive needs from the community, or parent advocate, or both, appointed by the chairman of the LCT in consultation with the local child advocacy community.</text> </paragraph> <paragraph num="(3)"> <text>The LCT membership shall include a non-voting representative of the local office of the Division of Rehabilitative Services to represent individuals who are 16 years old and older.</text> </paragraph> <paragraph num="(4)"> <text>Although each LCT member agency may designate staff to represent it on the LCT, all designees shall possess authority to the extent permitted by federal and State law to commit the resources of the agency that they represent.</text> </paragraph> <paragraph num="(5)"> <text>For all matters decided by a vote of the LCT:</text> <paragraph num="(a)"> <text>Each member agency listed in §B(1) of this regulation has a single vote; and</text> </paragraph> <paragraph num="(b)"> <text>The parent and parent advocate member represented on the LCT each have a single vote.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The LCT shall select its chair by:</text> <paragraph num="(a)"> <text>Rotating the chairmanship among the members of the agencies represented on the LCT; or</text> </paragraph> <paragraph num="(b)"> <text>Appointing the LMB’s designee to the LCT as its chair.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Each LCT:</text> <paragraph num="(a)"> <text>Shall determine which of its members will have responsibility for its administrative functions; and</text> </paragraph> <paragraph num="(b)"> <text>If 2 or more members will share the responsibility, shall determine the rotation of the administrative functions.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Role and Responsibilities of the SCC."> <paragraph num="A."> <text>General Responsibilities. The SCC shall encourage the implementation of the State’s policies to:</text> <paragraph num="(1)"> <text>Promote the development of a continuum of quality educational, treatment, and residential services in Maryland which will enable children with intensive needs to be served in the least restrictive setting appropriate to their individual needs; and</text> </paragraph> <paragraph num="(2)"> <text>Identify any additional treatment, educational, and residential resources, opportunities, or supports which may provide children with appropriate services in the least restrictive environment.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Oversight of Resources for Children with Intensive Needs. The SCC shall oversee the resources available to serve children with intensive needs through the following activities:</text> <paragraph num="(1)"> <text>Establishment, support, and maintenance of a data tracking protocol to support agency accountability and State level service planning capability;</text> </paragraph> <paragraph num="(2)"> <text>Maintenance of a list of all residential facilities for children with intensive needs, which are approved or licensed by State agencies;</text> </paragraph> <paragraph num="(3)"> <text>Coordination of the monitoring of out-of-State facilities for compliance with applicable laws, regulations, and standards;</text> </paragraph> <paragraph num="(4)"> <text>Recommendations to State and local agencies regarding the use of existing community-based services and the development of new and enhanced community-based programs to serve children with intensive needs;</text> </paragraph> <paragraph num="(5)"> <text>Reviewing notifications for State funding of the individual placement of a child in need of out-of-State placement;</text> </paragraph> <paragraph num="(6)"> <text>Tracking the types, costs, and effectiveness of services required to meet the needs of children who are placed in an out-of-State facility; and</text> </paragraph> <paragraph num="(7)"> <text>Providing training and technical assistance to local agency and community partners.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="LCC Policies and Procedures."> <paragraph num="A."> <text>Each LCT shall develop policies and procedures to govern the:</text> <paragraph num="(1)"> <text>Conduct of regular meetings of the LCT; and</text> </paragraph> <paragraph num="(2)"> <text>Discussion of any requests for assistance by member agencies of individual children with intensive needs, including procedures for:</text> <paragraph num="(a)"> <text>Timely discussion of all requests for assistance;</text> </paragraph> <paragraph num="(b)"> <text>Expedited discussion of any request for assistance designated as an emergency matter by the referring agency; and</text> </paragraph> <paragraph num="(c)"> <text>Assurances of parental participation, or documentation of the LCT’s diligent efforts to assure parental participation, in the discussion of a child’s care.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The LCT shall meet a minimum of four times per calendar year for the purposes stated in Human Services Article, §8-407, Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The Executive Director of the Governor’s Office for Children may grant waivers to the number of meetings required under §B of this regulation if:</text> <paragraph num="(1)"> <text>The LCT requests a waiver in writing prior to January 1 of the applicable calendar year;</text> </paragraph> <paragraph num="(2)"> <text>The LCT explains the reason for the waiver request;</text> </paragraph> <paragraph num="(3)"> <text>The request does not violate any applicable statute, law, regulation, ordinance, or bylaw; and</text> </paragraph> <paragraph num="(4)"> <text>The request is reasonable under the circumstances.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Waivers under this chapter may be granted for a 1-year period, are renewable, and are subject to reconsideration at any time.</text> </paragraph> <paragraph num="E."> <text>The denial of a waiver may not be appealed.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Notification of Out-of-State Placement."> <paragraph num="A."> <text>The placing agency shall submit a notification of State funding for the costs, or a portion of the costs, of the placement, as provided by applicable State laws.</text> </paragraph> <paragraph num="B."> <text>Prior to notification of out-of-State placement to the SCC, the placing agency shall notify all appropriate local agencies, the local school system and family members of the placement decision and expected admission date.</text> </paragraph> <paragraph num="C."> <text>Prior to notification of out-of-State placement to the SCC, the placing agency shall ensure that funding discussions have included input from all appropriate local agencies, the local school system and family members.</text> </paragraph> <paragraph num="D."> <text>The notification shall be on a form specified by the SCC and shall include the following:</text> <paragraph num="(1)"> <text>Information deemed necessary by the SCC to identify the child, the child’s intensive needs, and the nature and costs of the recommended placement;</text> </paragraph> <paragraph num="(2)"> <text>Documentation of the placing agency’s efforts to serve the child in the least restrictive environment appropriate to the child’s needs, including:</text> <paragraph num="(a)"> <text>A description of efforts to identify appropriate community-based services to meet the child’s needs;</text> </paragraph> <paragraph num="(b)"> <text>Reasons why community-based options were considered inadequate to meet the child’s needs or were otherwise rejected;</text> </paragraph> <paragraph num="(c)"> <text>A description of additional supports and services which would be required to provide appropriate services in an in-State facility, a community-based program, or the child’s home;</text> </paragraph> <paragraph num="(d)"> <text>The lack of availability of appropriate in-State facilities and services to meet the needs of the child; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A plan for the child’s return from the out-of-State placement, including:</text> <paragraph num="(a)"> <text>Time frame for the child’s return;</text> </paragraph> <paragraph num="(b)"> <text>Description of services and resources needed to facilitate the child’s return; and</text> </paragraph> <paragraph num="(c)"> <text>As appropriate, identification of a strategy for developing resources needed to facilitate the child’s return which are not currently available in the community.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Exception Criteria for Out-of-State Placements.</text> <paragraph num="(1)"> <text>The SCC may review a notification from a placing agency for State funding of an out-of-State placement under one of the following exception criteria:</text> <paragraph num="(a)"> <text>The out-of-State placement is closer to the child’s home than any alternative in-State placement;</text> </paragraph> <paragraph num="(b)"> <text>The plan for the child’s permanent placement includes residence with a caregiver in proximity to the proposed out-of-State placement;</text> </paragraph> <paragraph num="(c)"> <text>The individualized needs of the child cannot be met through available, appropriate in-State resources at a total cost less than or equal to 100 percent of the average cost per placement for all appropriate out-of-State programs for which application would be made for the child;</text> </paragraph> <paragraph num="(d)"> <text>The child is currently in detention, shelter care, or committed to the Department of Juvenile Services pending placement under a court order;</text> </paragraph> <paragraph num="(e)"> <text>Compliance with the federal Individuals with Disabilities Education Act requires out-of-State placement; or</text> </paragraph> <paragraph num="(f)"> <text>The child is hospitalized in an acute care psychiatric hospital under the following circumstances:</text> <paragraph num="(i)"> <text>The child is committed to the Department of Juvenile Services, a local department of social services, or a division of the Maryland Department of Health;</text> </paragraph> <paragraph num="(ii)"> <text>The child’s treatment team has determined that the child is ready for discharge.</text> </paragraph> <paragraph num="(iii)"> <text>The only available, appropriate placement is out-of-State.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The referring agency shall indicate which of the above exceptions is applicable with regard to the placement of the child for whom it has made notification to the SCC.</text> </paragraph> <paragraph num="(3)"> <text>The SCC will meet at least 6 times a year to conduct business meetings and provide trainings and technical assistance.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Parental Participation."> <paragraph num="A."> <text>Attendance at LCT.</text> <paragraph num="(1)"> <text>A child’s parents and the child’s legal counsel shall be invited to attend a meeting of the LCT or any portion of the meeting during which the child’s care is discussed.</text> </paragraph> <paragraph num="(2)"> <text>The child’s parents and legal counsel may present information to the meeting participants regarding their position as to the child’s needs and care.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notices to Parents.</text> <paragraph num="(1)"> <text>At least 10 calendar days before a meeting at which a child’s care is to be discussed, the parents and the child’s advocate or counsel shall receive a written invitation to the meeting, including the:</text> <paragraph num="(a)"> <text>Date, time, and location of the meeting;</text> </paragraph> <paragraph num="(b)"> <text>Intent to discuss the child’s care at the meeting; and</text> </paragraph> <paragraph num="(c)"> <text>Child’s right to be represented by an advocate or counsel.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="SCC Coordination of Monitoring of Out-of-State Residential Services."> <paragraph num="A."> <text>The SCC shall develop and implement a process to coordinate the monitoring of out-of-State facilities where Maryland children are being served at State expense.</text> </paragraph> <paragraph num="B."> <text>The SCC shall review any monitoring reports of site visits of out-of-State facilities that have been conducted by placing agency monitoring teams.</text> </paragraph> <paragraph num="C."> <text>Based upon the findings of a placing agency monitoring team, the SCC shall consult with the monitoring team to determine whether remedial actions are necessary.</text> </paragraph> <paragraph num="D."> <text>Each SCC member shall notify appropriate agency staff of any reports of monitoring of out-of-State residential services.</text> </paragraph> <paragraph num="E."> <text>The SCC shall review licensing and monitoring reports from each state in which a facility under contract with a placing agency is located.</text> </paragraph> <paragraph num="F."> <text>The Department of Human Services, Department of Juvenile Services, Department of Education, and Maryland Department of Health will share official monitoring reports with the SCC within 2 weeks of report being finally approved by the relevant agency head or designee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Amendments."> <text>Before being submitted for publication, any proposed amendments to this chapter shall be reviewed and approved by the Office for Children and the Children’s Cabinet.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §§8-103—8-303 and 8-401—8-417; Health-General Article, §§2-102, 2-104, 2-105, 4-305—4-307, 7-1007, 10-204, 10-712, 10-1203, and 15-102.1; Human Services Article, §§2-202, 2-203, 2-209, 4-204, 4-205, 4-207, 9-202, 9-204, and 9-221; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 3, 2001 (28:17 Md. R. 1552)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective April 12, 2004 (31:7 Md. R. 581)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.01 revised and recodified to COMAR 14.31.01 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 28, 2005 (32:23 Md. R. 1828)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 and .06—.14, Local and State Coordinating Councils, repealed and new Regulations .01—.04 and .06—.09, Local Care Teams and State Coordinating Council, adopted effective March 31, 2014 (41:6 Md. R. 381)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 repealed and new Regulation .05 adopted effective October 13, 2014 (41:20 Md. R. 1113)</annotation> </annotations> </chapter> <chapter num="02" heading="Interagency Coordination"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of these regulations is to establish a single point of entry for the licensing of residential child care programs with the Department of Human Services, the Department of Juvenile Services, and the Maryland Department of Health, and to coordinate the licensing process for residential child care facilities and the approval of education programs in such facilities with the Department of Human Services, the Department of Juvenile Services, the Maryland Department of Health, and the Department of Education.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>These regulations apply to the licensing of the residential child care programs licensed by the Department of Human Services, the Department of Juvenile Services, or the Maryland Department of Health.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agencies” means the Department of Human Services, the Department of Juvenile Services, the Maryland Department of Health, and the Department of Education.</text> </paragraph> <paragraph num="(2)"> <text>“Care” means food, clothing, education, shelter, social or health services, or any combination of these rendered in a residential setting.</text> </paragraph> <paragraph num="(3)"> <text>“Child” means an individual younger than 21 years old, unless otherwise provided by State law.</text> </paragraph> <paragraph num="(4)"> <text>“Children's Cabinet” means those agencies directed by Executive Order:</text> <paragraph num="(a)"> <text>To examine Maryland's system of services to children and their families; and</text> </paragraph> <paragraph num="(b)"> <text>To facilitate ongoing improvements to this service delivery system.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Expansion request” means the materials required by the Office, from an established provider who wishes to expand a residential child care program to an additional location.</text> </paragraph> <paragraph num="(6)"> <text>“Facility” means the physical premises where a residential child care program is operated.</text> </paragraph> <paragraph num="(7)"> <text>“Licensing” means the process undertaken by an agency to issue, suspend, or deny a license.</text> </paragraph> <paragraph num="(8)"> <text>“Monitoring” means the process of assessing continuing compliance with agency licensing requirements and applicable statutes and regulations.</text> </paragraph> <paragraph num="(9)"> <text>“Office” means the Governor's Office for Children.</text> </paragraph> <paragraph num="(10)"> <text>“Program administrator” means the individual designated by the licensee's governing body as having day-to-day responsibility for the administration and operation of a program, including ensuring the care, treatment, safety, and protection of the children residing in the program.</text> </paragraph> <paragraph num="(11)"> <text>“Proposal” means the materials required by the Office from a potential new provider or an established provider to develop a new residential child care facility or program.</text> </paragraph> <paragraph num="(12)"> <text>“Provider” means the operator of a program.</text> </paragraph> <paragraph num="(13)"> <text>“Residential child care program” means a program of care provided in a residential setting by a provider on a 24-hour basis for longer than 24 hours to a child or children unless otherwise provided by State law.</text> </paragraph> <paragraph num="(14)"> <text>“Sanctions” means all or any part of the penalties agencies impose on facilities or providers for failure to comply with the applicable licensing laws and regulations.</text> </paragraph> <paragraph num="(15)"> <text>“Single point of entry review panel” means an interagency panel convened as needed at the request of the Office for Children to review proposals and expansion requests.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Single Point of Entry."> <paragraph num="A."> <text>The Office shall serve as a single point of entry for a:</text> <paragraph num="(1)"> <text>Prospective provider that wishes to establish a residential child care program; and</text> </paragraph> <paragraph num="(2)"> <text>Current provider that wishes to expand an existing residential child care program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Duties of the Single Point of Entry. As the single point of entry, the Office shall:</text> <paragraph num="(1)"> <text>Provide information to persons interested in operating a residential child care program on the process for the licensing, rate setting, contracting, and purchase of beds;</text> </paragraph> <paragraph num="(2)"> <text>Accept proposals from persons interested in developing a residential child care program;</text> </paragraph> <paragraph num="(3)"> <text>Serve as the point of registration for established providers interested in expanding their residential child care programs;</text> </paragraph> <paragraph num="(4)"> <text>Coordinate the review of proposals and requests for registration among the agencies; and</text> </paragraph> <paragraph num="(5)"> <text>Designate a licensing agency to process each completed proposal or request for registration received by the Office.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Related Duties. The Office shall disseminate the following information regarding the monitoring of residential child care programs from agencies that license or contract with such programs to other agencies that may place or otherwise serve a child in that program:</text> <paragraph num="(1)"> <text>Agency program monitoring schedules; and</text> </paragraph> <paragraph num="(2)"> <text>Sanctions or corrective actions imposed on a residential child care program by an agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Filing Requirements for Providers."> <paragraph num="A."> <text>Providers shall file with the Office:</text> <paragraph num="(1)"> <text>A proposal, if the provider wishes to establish a new residential child care program; or</text> </paragraph> <paragraph num="(2)"> <text>An expansion request, if the provider wishes to expand a current residential child care program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Required Content of a Proposal. To be assigned to a licensing agency, a proposal shall include:</text> <paragraph num="(1)"> <text>Face sheet, in accordance with the format prescribed by the Office;</text> </paragraph> <paragraph num="(2)"> <text>Table of contents;</text> </paragraph> <paragraph num="(3)"> <text>Statement of purpose for the program, which includes the organization's mission;</text> </paragraph> <paragraph num="(4)"> <text>Identification and description of the qualifications of the program administrator;</text> </paragraph> <paragraph num="(5)"> <text>Organizational capability, including:</text> <paragraph num="(a)"> <text>Experience in serving children and youth;</text> </paragraph> <paragraph num="(b)"> <text>Experience in serving special populations in residential programs;</text> </paragraph> <paragraph num="(c)"> <text>Experience in the operation of residential programs for children and youth; and</text> </paragraph> <paragraph num="(d)"> <text>Identity and qualifications of the board of directors;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Program needs assessment, including:</text> <paragraph num="(a)"> <text>Needs assessment methodology;</text> </paragraph> <paragraph num="(b)"> <text>Results of needs assessment;</text> </paragraph> <paragraph num="(c)"> <text>Need for type of program or facility proposed; and</text> </paragraph> <paragraph num="(d)"> <text>Criteria for selecting program location;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Program description, including:</text> <paragraph num="(a)"> <text>Population served;</text> </paragraph> <paragraph num="(b)"> <text>Residential plan;</text> </paragraph> <paragraph num="(c)"> <text>Program activities, including:</text> <paragraph num="(i)"> <text>Recreation;</text> </paragraph> <paragraph num="(ii)"> <text>Tutoring; and</text> </paragraph> <paragraph num="(iii)"> <text>After-school activities;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Therapeutic services;</text> </paragraph> <paragraph num="(e)"> <text>Family involvement strategies;</text> </paragraph> <paragraph num="(f)"> <text>Model schedule for residents;</text> </paragraph> <paragraph num="(g)"> <text>Program services for summer and holiday periods; and</text> </paragraph> <paragraph num="(h)"> <text>Other program elements;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Management plans, including:</text> <paragraph num="(a)"> <text>Financial management plan;</text> </paragraph> <paragraph num="(b)"> <text>Marketing plan;</text> </paragraph> <paragraph num="(c)"> <text>Community relations plan;</text> </paragraph> <paragraph num="(d)"> <text>Quality control plan; and</text> </paragraph> <paragraph num="(e)"> <text>Outcome-based self-evaluation plan;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Staffing plan, including:</text> <paragraph num="(a)"> <text>Staffing requirements;</text> </paragraph> <paragraph num="(b)"> <text>Staff qualifications;</text> </paragraph> <paragraph num="(c)"> <text>Staff recruitment; and</text> </paragraph> <paragraph num="(d)"> <text>Training;</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Education plan, including:</text> <paragraph num="(a)"> <text>Documentation of collaboration with the local school system in the enrollment and education of resident children;</text> </paragraph> <paragraph num="(b)"> <text>The extent of participation in the child's educational activities; and</text> </paragraph> <paragraph num="(c)"> <text>Notice of the provider's intent, if any, to operate an educational program within the residential program's facilities; and</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Health care plan, including:</text> <paragraph num="(a)"> <text>Residents' access to health care;</text> </paragraph> <paragraph num="(b)"> <text>Supervision of residents' health care needs;</text> </paragraph> <paragraph num="(c)"> <text>Medical emergencies;</text> </paragraph> <paragraph num="(d)"> <text>Mental health services for residents; and</text> </paragraph> <paragraph num="(e)"> <text>Resident nutrition.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Required Content of an Expansion Request. To be assigned to a licensing agency, an expansion request shall include:</text> <paragraph num="(1)"> <text>Face sheet;</text> </paragraph> <paragraph num="(2)"> <text>Copy of the program's current license;</text> </paragraph> <paragraph num="(3)"> <text>Description of the specific program expansion requested; and</text> </paragraph> <paragraph num="(4)"> <text>Description of changes, if any, to the licensee's current program that would result from the requested expansion.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Office shall provide detailed instructions regarding the submission of proposals and requests for registration, including:</text> <paragraph num="(1)"> <text>Format of proposals and requests for registration;</text> </paragraph> <paragraph num="(2)"> <text>Filing procedures; and</text> </paragraph> <paragraph num="(3)"> <text>Specific elements to be addressed in each content area.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Single Point of Entry Review."> <paragraph num="A."> <text>Preliminary Review by the Office. Within 90 days of the receipt of a proposal or expansion request, the Office shall conduct a preliminary review to determine if the proposal is adequate to refer to a licensing agency, based upon the following criteria:</text> <paragraph num="(1)"> <text>Completeness of the proposal or expansion request;</text> </paragraph> <paragraph num="(2)"> <text>Adequacy of the proposal or expansion request in meeting the content requirements of Regulation .05B and C of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>Any prior denial of licensure, sanction taken, or corrective action required by an agency of the program or the program's parent corporation; and</text> </paragraph> <paragraph num="(4)"> <text>Community, county, or regional resource development needs as specified by either the Children's Cabinet or an agency.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Based upon a preliminary review, the Office shall:</text> <paragraph num="(1)"> <text>Certify that a program has filed a completed proposal or expansion request in conformance with single point of entry requirements;</text> </paragraph> <paragraph num="(2)"> <text>Require that a program administrator appear before a single point of entry review panel to address any inadequacies identified in the preliminary review and answer any other questions which the panel may have regarding the proposal; or</text> </paragraph> <paragraph num="(3)"> <text>Return the proposal or expansion request with instructions for possible resubmission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Single Point of Entry Review Panel.</text> <paragraph num="(1)"> <text>A single point of entry review panel shall be convened at the request of the Office to review a proposal that has been resubmitted to address inadequacies identified by the Office in its preliminary review.</text> </paragraph> <paragraph num="(2)"> <text>The single point of entry review panel shall comprise:</text> <paragraph num="(a)"> <text>A representative of the Office; and</text> </paragraph> <paragraph num="(b)"> <text>Two representatives designated from the agencies that place children in residential child care facilities or the Department of Education.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The program administrator shall represent a program before the panel.</text> </paragraph> <paragraph num="(4)"> <text>At least 10 days before an interview with the panel, the Office shall provide the program with a written list of proposal or expansion request inadequacies or other questions that the panel may ask the program administrator to address.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Single Point of Entry Review Panel Recommendations. Within 30 days of an interview with a program administrator, the panel shall:</text> <paragraph num="(1)"> <text>If the panel determines that the program has met single point of entry requirements, recommend that the program be referred to a licensing agency with certification that it has filed a completed proposal or expansion request; or</text> </paragraph> <paragraph num="(2)"> <text>If the panel determines that the program has not met single point of entry requirements:</text> <paragraph num="(a)"> <text>Return the proposal or request for registration to the program or facility with instructions for possible resubmission; or</text> </paragraph> <paragraph num="(b)"> <text>For a resubmission, recommend that the proposal or expansion request be referred to a licensing agency without certification that the program has met single point of entry requirements.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Submission of Additional Information. If a provider fails to resubmit an application under §B(3) or D(2)(a) of this regulation within 60 days of the Office's request for additional information, the Office shall consider the provider's proposal or expansion request to have been withdrawn and shall close the provider's file.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Designation of Licensing Agency."> <paragraph num="A."> <text>The Office shall designate a licensing agency from among the agencies authorized by State law and regulations to license residential child care facilities for each proposal or expansion request that is:</text> <paragraph num="(1)"> <text>Certified as meeting single point of entry requirements; or</text> </paragraph> <paragraph num="(2)"> <text>Recommended by a review panel for referral without certification to a licensing agency.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Office shall indicate to the licensing agency whether it has certified that the proposal or expansion request has met single point of entry requirements.</text> </paragraph> <paragraph num="C."> <text>The Office shall select the licensing agency based upon:</text> <paragraph num="(1)"> <text>The type of program or facility being proposed;</text> </paragraph> <paragraph num="(2)"> <text>State law and regulations governing agency responsibility for specific populations of children;</text> </paragraph> <paragraph num="(3)"> <text>Existing relationships between an agency and a provider; and</text> </paragraph> <paragraph num="(4)"> <text>Any standards established by the Children's Cabinet.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Multiple Programs or Facilities.</text> <paragraph num="(1)"> <text>A provider may operate multiple programs or facilities licensed by different agencies.</text> </paragraph> <paragraph num="(2)"> <text>An individual program or facility may not be licensed by more than one agency.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Educational Programs in Residential Child Care Facilities. The Office shall refer residential child care programs and facilities that plan to operate an educational program to the Department of Education for processing pursuant to COMAR 13A.09.10.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Functions of Licensing Agency."> <paragraph num="A."> <text>Licensing. The licensing agency designated under Regulation .07 of this chapter shall:</text> <paragraph num="(1)"> <text>Consider the relevant experiences and actions of other agencies with programs or facilities operated by the provider's parent corporation, including:</text> <paragraph num="(a)"> <text>Denial of licensure;</text> </paragraph> <paragraph num="(b)"> <text>Sanctions, including suspension or revocation of licensure; and</text> </paragraph> <paragraph num="(c)"> <text>Corrective action requirements;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Issue a written licensing report;</text> </paragraph> <paragraph num="(3)"> <text>Submit the licensing report to the provider and the Office;</text> </paragraph> <paragraph num="(4)"> <text>Do one of the following:</text> <paragraph num="(a)"> <text>Issue or deny the license for the program in accordance with the regulations of the licensing agency; or</text> </paragraph> <paragraph num="(b)"> <text>Deny a license or suspend consideration of a licensing application based upon an action under §A(1) of this regulation;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Notify the provider of an action under §A(4) of this regulation within 60 days after the date of receipt of the completed application in accordance with the regulations of the licensing agency; and</text> </paragraph> <paragraph num="(6)"> <text>Notify the provider of the right to and method of requesting a hearing if the license is denied.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Monitoring. In consultation with an agency utilizing the program or facility, the licensing agency designated under Regulation .07 of this chapter shall:</text> <paragraph num="(1)"> <text>Monitor the facility at least annually;</text> </paragraph> <paragraph num="(2)"> <text>Notify the Office of its program monitoring schedule;</text> </paragraph> <paragraph num="(3)"> <text>Recommend to the Secretary of the licensing agency sanctions to be imposed upon the program if the program is not in compliance with licensing law and regulations applicable to the program;</text> </paragraph> <paragraph num="(4)"> <text>Inform the Office of any sanctions or corrective actions imposed on a provider; and</text> </paragraph> <paragraph num="(5)"> <text>Notify the provider in writing of proposed sanctions and the right to request, and method for requesting, a fair hearing regarding the imposition of sanctions.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Appeals."> <text>A provider upon whom a sanction is imposed under Regulation .07 or .08 of this chapter may file an appeal in accordance with the applicable licensing agency's regulations governing administrative appeals taken pursuant to the Administrative Procedure Act, State Government Article, §§10-201 and 10-405, Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§6-101 and 6-104; Article 83C, §§2-102, 2-104, and 2-113; Article 88A, §3; Education Article, §2-206; Health General Article, §§2-102, 2-104, 2-105, 4-305—4-307, 7-1007, 10-204, 10-207, 10-516, 10-712, 10-1203, and 15-102.1; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 6, 1992 (18:26 Md. R. 2829)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed and new Regulations .01—.09 adopted effective December 12, 2002 (29:24 Md. R. 1917)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.02 revised and recodified to COMAR 14.31.02 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 28, 2005 (32:23 Md. R. 1828)</annotation> </annotations> </chapter> <chapter num="03" heading="Interagency Discharge Planning for Hospitalized Children and Adolescents"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>The following regulations govern procedures for the development of interagency plans for the provision of services to hospitalized children.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Case service coordinator” means a State employee, assigned to the Office for Children, who is responsible for tracking the status of hospitalized children and coordinating interagency efforts to secure the timely and appropriate placement of these children.</text> </paragraph> <paragraph num="(2)"> <text>“Departments” means the Maryland Departments of Health, Human Services, Education, and Juvenile Services.</text> </paragraph> <paragraph num="(3)"> <text>“Discharge plan” means the written plan, developed by the hospital treatment team and qualified professionals from the Departments providing services to the child, which describes the services, treatment, and training appropriate for the child outside the hospital setting.</text> </paragraph> <paragraph num="(4)"> <text>“Hospitalized child” means both State-hospitalized children and privately hospitalized children.</text> </paragraph> <paragraph num="(5)"> <text>“Lead agency” means the Department designated by the multi-agency review team to implement the hospitalized child's discharge plan.</text> </paragraph> <paragraph num="(6)"> <text>“Multi-agency review team” means a committee of senior officials from the Departments and the Office for Children.</text> </paragraph> <paragraph num="(7)"> <text>“Private psychiatric hospital” means Brooklane Hospital, Gundry Glass Hospital, Sheppard and Enoch Pratt Hospital, and Taylor Manor Hospital.</text> </paragraph> <paragraph num="(8)"> <text>“Privately hospitalized child” means an individual under 18 years old, committed by juvenile court order to State custody and who is admitted to a private psychiatric hospital.</text> </paragraph> <paragraph num="(9)"> <text>“State-hospitalized child” means an individual 18 years old admitted to the Mental Hygiene Administration's inpatient hospital-level care.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Procedures for Identification and Tracking of Hospitalized Children."> <paragraph num="A."> <text>Each State hospital and each private psychiatric hospital, when possible, shall complete an inpatient tracking form for each hospitalized child and report to a designated Department as follows:</text> <paragraph num="(1)"> <text>Within 24 hours after the first business day following the admission of a hospitalized child, the hospital staff shall complete and transmit the inpatient tracking form to the designated Department; and</text> </paragraph> <paragraph num="(2)"> <text>The hospital staff shall update the inpatient tracking forms every 2 weeks and transmit the forms to the designated Department.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The case service coordinator shall maintain the tracking forms and any data reports generated from the forms. The case service coordinator shall forward data reports generated from the forms to all Departments.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Procedures for Development of Interagency Plans."> <paragraph num="A."> <text>Within 10 working days after a child is hospitalized, the lead agency shall provide case management services to each hospitalized child, in the manner considered appropriate by the lead agency, to assist in securing and maintaining appropriate discharge services and placement.</text> </paragraph> <paragraph num="B."> <text>The hospital treatment team and lead agency shall jointly develop for each hospitalized child a discharge plan that includes recommendations for the services needed to maintain the child outside the inpatient setting and provide appropriate treatment.</text> </paragraph> <paragraph num="C."> <text>The recommendations in the discharge plan may include the following:</text> <paragraph num="(1)"> <text>Therapy;</text> </paragraph> <paragraph num="(2)"> <text>Education;</text> </paragraph> <paragraph num="(3)"> <text>Residential arrangement;</text> </paragraph> <paragraph num="(4)"> <text>Medications and medical needs;</text> </paragraph> <paragraph num="(5)"> <text>Physical needs;</text> </paragraph> <paragraph num="(6)"> <text>Social and recreational needs;</text> </paragraph> <paragraph num="(7)"> <text>Family involvement in therapy; and</text> </paragraph> <paragraph num="(8)"> <text>Family visitation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The case manager from the lead agency shall attend the discharge planning meeting with the hospital treatment team, or be available by telephone to discuss the discharge plan. The lead agency shall be responsible for implementing the discharge plan.</text> </paragraph> <paragraph num="E."> <text>The multi-agency review team shall meet every 2 weeks to review the discharge plan and the tracking forms of each hospitalized child who is ready for discharge or whose tracking forms indicate possible difficulty in obtaining timely and appropriate discharge to assist in resolving problems that might require interagency action or planning.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Transitional Services."> <paragraph num="A."> <text>Transitional services include:</text> <paragraph num="(1)"> <text>Therapeutic;</text> </paragraph> <paragraph num="(2)"> <text>Educational;</text> </paragraph> <paragraph num="(3)"> <text>Interim residential;</text> </paragraph> <paragraph num="(4)"> <text>Social; and</text> </paragraph> <paragraph num="(5)"> <text>Recreational.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The lead agency shall provide transitional services when the treating physician, in consultation with the hospital treatment team and the lead agency, determines that:</text> <paragraph num="(1)"> <text>The hospitalized child is ready for discharge and remains in the hospital; and</text> </paragraph> <paragraph num="(2)"> <text>Transitional services are necessary to prevent specific clinical deterioration of the hospitalized child.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The lead agency, in consultation with the treating physician and the hospital treatment team, other departments, the child, and the child's parents if the parents are available, shall determine the specific transitional services provided to the child.</text> </paragraph> <paragraph num="D."> <text>The lead agency may provide transitional services if:</text> <paragraph num="(1)"> <text>The lead agency determines that transitional services are necessary to assist with a hospitalized child's adjustment to an aftercare placement; and</text> </paragraph> <paragraph num="(2)"> <text>Resources are available.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Article 41, §§6-101 and 6-104; Article 83C, §§2-102, 2-104, and 2-113; Article 88A, §3; Education Article, §§8-301—8-303 and 8-401—8-417; Health-General Article, §§2-102, 2-104, 2-105, 4-305, 4-307, 7-401, 7-1007, 10-204, 10-207, 10-712, 10-1203, and 15-102.1; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 31, 1995 (22:15 Md. R. 1117)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.03 revised and recodified to COMAR 14.31.03 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); recodified permanently effective November 28, 2005 (32:23 Md. R. 1828)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); amended permanently effective November 24, 2005 (32:23 Md. R. 1828)</annotation> </annotations> </chapter> <chapter num="04" heading="Rate Setting for Child Care Providers"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter outlines the requirements for the determination of rates for the following services purchased by the departments for children:</text> <paragraph num="A."> <text>Residential services licensed by:</text> <paragraph num="(1)"> <text>The Department of Human Services;</text> </paragraph> <paragraph num="(2)"> <text>The Department of Juvenile Services;</text> </paragraph> <paragraph num="(3)"> <text>The Maryland Department of Health; or</text> </paragraph> <paragraph num="(4)"> <text>Any State department;</text> </paragraph> </paragraph> <paragraph num="B."> <text>Nonresidential services in programs approved or accredited by the Maryland State Department of Education, under COMAR 13A.09.10, or the Department of Juvenile Services; and</text> </paragraph> <paragraph num="C."> <text>Out-of-State services from providers licensed, accredited, certified, or approved by the providers' respective states and approved for placement by the departments described in Regulation .02B(9) of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Advisory Committee” means the Maryland Interagency Rates Advisory Committee which consists of parents, advocates, and providers appointed by the Children's Cabinet.</text> </paragraph> <paragraph num="(2)"> <text>“Allowable variance” means less than or equal to plus one standard deviation from the mean as determined by the factors and methodology outlined in the Manual defined in §B(11) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>“Child placement agency” means a private agency licensed by the Department of Human Services to receive and place children in foster homes, treatment foster homes, and independent living arrangements.</text> </paragraph> <paragraph num="(4)"> <text>“Children's Cabinet” means those agencies listed under Executive Order 01.01.2024.05C.</text> </paragraph> <paragraph num="(5)"> <text>“Class Guidelines” means the Class Determination Guidelines for Residential Child Care Programs, which are maintained and updated, as necessary, by the Committee.</text> </paragraph> <paragraph num="(6)"> <text>“Committee” means the Maryland Interagency Rates Committee, consisting of an individual or individuals representing:</text> <paragraph num="(a)"> <text>The Maryland Department of Health;</text> </paragraph> <paragraph num="(b)"> <text>The Department of Human Services;</text> </paragraph> <paragraph num="(c)"> <text>The Department of Juvenile Services;</text> </paragraph> <paragraph num="(d)"> <text>The Department of Budget and Management;</text> </paragraph> <paragraph num="(e)"> <text>The Maryland State Department of Education; and</text> </paragraph> <paragraph num="(f)"> <text>The Governor’s Office for Children.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>“Cost Guidelines” means the Cost Guidelines for Child Placement Agencies, Education Programs, and Non-Residential Programs, which are maintained and updated, as necessary, by the Committee.</text> </paragraph> <paragraph num="(8)"> <text>“Days” means calendar days, unless otherwise specified.</text> </paragraph> <paragraph num="(9)"> <text>“Departments” means the:</text> <paragraph num="(a)"> <text>Maryland Department of Health;</text> </paragraph> <paragraph num="(b)"> <text>Department of Human Services;</text> </paragraph> <paragraph num="(c)"> <text>Department of Juvenile Services; and</text> </paragraph> <paragraph num="(d)"> <text>Maryland State Department of Education.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Educational program” means a program approved under COMAR 13A.09.10 as a nonpublic general education school to operate in conjunction with residential or nonresidential child care program licensed or approved by the Department of Health, Department of Human Services, or Department of Juvenile Services.</text> </paragraph> <paragraph num="(11)"> <text>“Manual” means the Rate Setting Methodology Manual for Providers, which is maintained and updated, as necessary, by the Committee.</text> </paragraph> <paragraph num="(12)"> <text>“Nonpreferred provider” means a provider whose rate or rates, when grouped by service type and, when appropriate, capacity, falls or fall outside an allowable variance.</text> </paragraph> <paragraph num="(13)"> <text>“Nonresidential program” means a community nonresidential youth program that serves youth served by the Department of Juvenile Services and is not otherwise licensed or certified by the State.</text> </paragraph> <paragraph num="(14)"> <text>“Preferred provider” means a provider whose rate or rates, when grouped by service type and, when appropriate, capacity, falls or fall within an allowable variance.</text> </paragraph> <paragraph num="(15)"> <text>“Provider” means an entity licensed, approved, accredited, or certified to provide services to children and adolescents within:</text> <paragraph num="(a)"> <text>Maryland under:</text> <paragraph num="(i)"> <text>COMAR 07.05.01;</text> </paragraph> <paragraph num="(ii)"> <text>COMAR 10.21.07;</text> </paragraph> <paragraph num="(iii)"> <text>COMAR 16.06.01; or</text> </paragraph> <paragraph num="(iv)"> <text>COMAR 14.31.05—14.31.07;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maryland or another state under COMAR 13A.09.10; or</text> </paragraph> <paragraph num="(c)"> <text>A state other than Maryland under the applicable laws of that state.</text> </paragraph> </paragraph> <paragraph num="(16)"> <text>“Provider Instructions” means the Interagency Rates Committee Provider Instructions, which are maintained and updated, as necessary, by the Committee.</text> </paragraph> <paragraph num="(17)"> <text>“Rate” means the daily reimbursement for services provided to children in residential child care programs and other specified programs.</text> </paragraph> <paragraph num="(18)"> <text>“Rate Section” means the Rate Section at the Maryland State Department of Education.</text> </paragraph> <paragraph num="(19)"> <text>Residential Child Care Program.</text> <paragraph num="(a)"> <text>“Residential child care program” means an entity that provides for children 24-hours per day within a structured set of services and activities that are designed to achieve specific objectives relative to the needs of the children served and that include the provision of food, clothing, shelter, education, social services, health, mental health, recreation, or any combination of these services and activities.</text> </paragraph> <paragraph num="(b)"> <text>“Residential child care program” includes a program:</text> <paragraph num="(i)"> <text>Licensed by the Department of Health, the Department of Human Services, or the Department of Juvenile Services; and</text> </paragraph> <paragraph num="(ii)"> <text>Subject to the requirements of the Governor’s Office of Children governing operations of residential child care programs.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(20)"> <text>“Unallowable costs” means those expenditures defined by applicable federal regulations and the Cost Guidelines as unreimbursable.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Rate Setting Methodology."> <paragraph num="A."> <text>The Committee shall develop and maintain a rate setting methodology for reimbursing specified providers.</text> </paragraph> <paragraph num="B."> <text>Cost-Based Methodology.</text> <paragraph num="(1)"> <text>Child placement agencies, educational programs, and nonresidential programs shall receive a rate based on a cost-based methodology.</text> </paragraph> <paragraph num="(2)"> <text>The cost-based methodology determines a rate based on an individual provider’s budget, including, but not limited to:</text> <paragraph num="(a)"> <text>Management and general services;</text> </paragraph> <paragraph num="(b)"> <text>Direct services;</text> </paragraph> <paragraph num="(c)"> <text>Education services;</text> </paragraph> <paragraph num="(d)"> <text>Medical services; and</text> </paragraph> <paragraph num="(e)"> <text>Clinical services.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The rate determination shall be calculated using:</text> <paragraph num="(a)"> <text>An individual program budget application;</text> </paragraph> <paragraph num="(b)"> <text>A mean annual rate for a specified program category; and</text> </paragraph> <paragraph num="(c)"> <text>A direct care cost comparison metric.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The cost-based methodology is contained in the Manual and the Cost Guidelines, which are published on the Maryland State Department of Education website.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Class-Based Methodology.</text> <paragraph num="(1)"> <text>Residential child care programs shall receive a rate based on a class-based methodology.</text> </paragraph> <paragraph num="(2)"> <text>The class-based methodology determines a rate based on the level of services provided by the residential child care program.</text> </paragraph> <paragraph num="(3)"> <text>The Committee shall determine the level of services the residential child care program must provide to meet the requirements of each class as defined by the Committee.</text> </paragraph> <paragraph num="(4)"> <text>Each class is assigned a flat rate by the Committee.</text> </paragraph> <paragraph num="(5)"> <text>The class-based methodology is contained in the Manual and the Class Guidelines, which are published on the Maryland State Department of Education website.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Rates Determination Application."> <paragraph num="A."> <text>Renewal Rate Application and Submission.</text> <paragraph num="(1)"> <text>The Rate Section shall distribute the Provider Instructions and applications for determinations of renewal rates to in-State and out-of-State providers whose programs previously received an approved rate from the Committee by December 31 of each year.</text> </paragraph> <paragraph num="(2)"> <text>Except as provided in §A(3) of this regulation, providers shall submit an application to the Rate Section for a renewal rate determination by February 15 of each year in accordance with this chapter.</text> </paragraph> <paragraph num="(3)"> <text>For fiscal year 2025, residential child care programs shall submit an application to the Rate Section by July 31, 2024, for a class-based rate, consistent with the Provider Instructions and Regulation .03C of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>New Rate Application and Submission.</text> <paragraph num="(1)"> <text>On written request by a provider, the Rate Section shall distribute the Provider Instructions and applications for a rate determination for in-State and out-of-State providers whose programs have not previously received an approved rate from the Committee.</text> </paragraph> <paragraph num="(2)"> <text>Providers shall submit to the Rate Section an application for a rate for new programs before anticipated licensure, certification, or approval.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Out-of-State Providers.</text> <paragraph num="(1)"> <text>An out-of-State provider that does not have a rate established in the state in which services are provided may submit an application in accordance with this regulation.</text> </paragraph> <paragraph num="(2)"> <text>A provider that provides services in a licensed out-of-State facility which has a rate established by the authorized rate-setting body of the state in which the facility is located shall submit documentation to the Committee of the rates established by the authorized rate-setting body of their respective state, if applicable, instead of an application.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Conformance with Manual, Cost and Class Guidelines, and Provider Instructions. Provider applications shall conform to the requirements set forth in the Manual, Cost and Class Guidelines, as appropriate, and the Provider Instructions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Rate Determination, Approval, and Notification."> <paragraph num="A."> <text>Use of Guidelines.</text> <paragraph num="(1)"> <text>Rates for child placement agencies, educational programs, and nonresidential programs shall be determined, excluding unallowable costs, consistent with the Cost Guidelines.</text> </paragraph> <paragraph num="(2)"> <text>Rates for residential child care programs shall be determined consistent with the Class Guidelines.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Review of Application. After review of a rate application, the Committee shall take one of the following actions:</text> <paragraph num="(1)"> <text>Approve the rate requested in the application;</text> </paragraph> <paragraph num="(2)"> <text>Return the application to the provider, requesting that additional information or changes to the application be resubmitted within 10 business days; or</text> </paragraph> <paragraph num="(3)"> <text>Deny the rate requested in the application and issue a revised rate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notification of Approved Renewal Rates.</text> <paragraph num="(1)"> <text>Except as otherwise provided in §C(2) of this regulation, the Committee shall notify providers of their approved rates for applications timely submitted that meet the requirements of the Provider Instructions by June 15 of each year.</text> </paragraph> <paragraph num="(2)"> <text>For fiscal year 2025, the Committee shall notify residential child care programs that submit a timely and complete application to the Rate Section, consistent with Regulation .04A(3) of this chapter, by September 15, 2024.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notification of Approved New Rates. The Committee shall review applications, submitted in conformance with the Provider Instructions, and make a rate determination for new programs within 60 days of receipt. Rate determinations are not final until issuance of a license or accreditation.</text> </paragraph> <paragraph num="E."> <text>Effective Dates for Rates.</text> <paragraph num="(1)"> <text>Except as otherwise provided in §E(2) of this regulation, renewal rates shall be in effect at the start of the State fiscal year and remain in effect until the end of that State fiscal year.</text> </paragraph> <paragraph num="(2)"> <text>For fiscal year 2025, rates approved by the Committee for residential child care programs consistent with §C(2) of this regulation shall be in effect October 1, 2024, and remain in effect until June 30, 2025.</text> </paragraph> <paragraph num="(3)"> <text>Rates for new child placement agencies, educational programs, and nonresidentIal programs issued after March 31 of each State fiscal year shall remain in effect until June 30 of the following State fiscal year.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Determination of Preferred Providers.</text> <paragraph num="(1)"> <text>The Committee shall categorize child placement agencies according to service type and, when appropriate, capacity.</text> </paragraph> <paragraph num="(2)"> <text>The Committee shall use the methodology in the Manual to determine approved rates within each category and determine preferred providers.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Committee shall publish, annually, a list of all providers and approved rates and shall issue quarterly supplements with changes and additions. Child placement agencies shall be designated as preferred or nonpreferred in the listings, in accordance with the Committee's determination.</text> </paragraph> <paragraph num="H."> <text>Conformance with Federal Laws. Rates shall be determined in conformance with relevant federal requirements, including Title IV-E of the Social Security Act.</text> </paragraph> <paragraph num="I."> <text>Cost Containment. The Committee may impose cost containment measures to bring the rate structure into conformity with the budget appropriations approved by the General Assembly, and nothing in the Manual, Cost and Class Guidelines, or Provider Instructions shall preclude the implementation of cost containment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Reconsideration of a Committee Determination."> <paragraph num="A."> <text>A provider may request reconsideration of a Committee determination made under Regulation .05 of this chapter.</text> </paragraph> <paragraph num="B."> <text>The Rate Section shall act on behalf of the Committee to receive and process requests for reconsideration.</text> </paragraph> <paragraph num="C."> <text>A provider seeking reconsideration of a determination shall file a written request with the Rate Section. The request is to be filed within 30 days of the provider's receipt of notice of the Committee's determination.</text> </paragraph> <paragraph num="D."> <text>The Rate Section shall review each request for reconsideration to determine if it provides sufficient information to complete analysis of the request.</text> </paragraph> <paragraph num="E."> <text>Each request for reconsideration shall include detailed information regarding:</text> <paragraph num="(1)"> <text>The relief requested; and</text> </paragraph> <paragraph num="(2)"> <text>The basis for the relief.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If a request for reconsideration does not include sufficient information for review, the Rate Section shall provide written notice to the provider listing all information required to complete the review.</text> </paragraph> <paragraph num="G."> <text>If the provider fails to provide the additional required information within 45 days of receipt of the Rate Section notice, the Rate Section shall void the provider's request for reconsideration.</text> </paragraph> <paragraph num="H."> <text>Review by the Committee. Within 30 days of receipt of a complete request for reconsideration from the provider, the Committee shall provide written notification to the provider of its decision to:</text> <paragraph num="(1)"> <text>Grant the request.</text> </paragraph> <paragraph num="(2)"> <text>Grant the request with modification; or</text> </paragraph> <paragraph num="(3)"> <text>Deny the request.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A reconsideration of a determination by the Committee under this chapter is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Appeals."> <paragraph num="A."> <text>Filing of an Appeal.</text> <paragraph num="(1)"> <text>A provider may appeal to the Children's Cabinet the Committee's decision regarding a request for reconsideration made under Regulation .06 of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The provider shall file a written appeal with the Rate Section within 30 days of the provider's receipt of the Committee's decision regarding the request for reconsideration.</text> </paragraph> <paragraph num="(3)"> <text>The appeal shall set forth the specific objections to the Committee's decision regarding the request for reconsideration.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Rate Section Requirements. Upon receipt of an appeal, the Rate Section shall:</text> <paragraph num="(1)"> <text>Forward the appeal to the Children's Cabinet or its designee; and</text> </paragraph> <paragraph num="(2)"> <text>Provide to the Children's Cabinet a copy of the record upon which the Committee's decision regarding the provider's request for reconsideration was based, including:</text> <paragraph num="(a)"> <text>The provider's written request for a reconsideration; and</text> </paragraph> <paragraph num="(b)"> <text>Any supporting documentation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Review by the Children's Cabinet. Within 30 days of receipt of an appeal from the provider, the Children's Cabinet or its designee shall:</text> <paragraph num="(1)"> <text>Review the written appeal and the record provided by the Rate Section;</text> </paragraph> <paragraph num="(2)"> <text>Request additional information, if needed, from the provider or the Rate Section; and</text> </paragraph> <paragraph num="(3)"> <text>Issue a final, binding opinion upholding, modifying, or reversing the rate set by the Committee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An appeal to the Children's Cabinet is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Modification of a Committee Determination."> <paragraph num="A."> <text>Request for Modification. A provider may request a modification of a current Committee determination during the State fiscal year under the following conditions:</text> <paragraph num="(1)"> <text>To address health and safety issues which arise after the annual rate process;</text> </paragraph> <paragraph num="(2)"> <text>To address an emergency situation, such as fire or natural disaster;</text> </paragraph> <paragraph num="(3)"> <text>To address corrective action issues requested by the licensing agency or by a placing agency in conjunction with the licensing agency; or</text> </paragraph> <paragraph num="(4)"> <text>To address a program modification requested by a licensing or placing agency.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Rate Section shall act on behalf of the Committee to receive and process requests for modifications.</text> </paragraph> <paragraph num="C."> <text>A provider seeking modification of a determination shall file a written request with the Rate Section.</text> </paragraph> <paragraph num="D."> <text>The Rate Section shall review each request for modification to determine if it provides sufficient information to complete analysis of the request.</text> </paragraph> <paragraph num="E."> <text>Each request for modification shall include detailed information regarding:</text> <paragraph num="(1)"> <text>The relief requested; and</text> </paragraph> <paragraph num="(2)"> <text>The basis for the relief.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If a request for modification does not include sufficient information for review, the Rate Section shall provide written notice to the provider listing all information required to complete the review.</text> </paragraph> <paragraph num="G."> <text>If the provider fails to provide the additional required information within 45 days of receipt of the Rate Section notice, the Rate Section shall void the provider's request for modification.</text> </paragraph> <paragraph num="H."> <text>Review by the Committee. Within 30 days of receipt of a complete request for modification from the provider, the Committee shall provide written notification to the provider of its decision to:</text> <paragraph num="(1)"> <text>Grant the request;</text> </paragraph> <paragraph num="(2)"> <text>Grant the request with modification; or</text> </paragraph> <paragraph num="(3)"> <text>Deny the request.</text> </paragraph> </paragraph> <paragraph num="I."> <text>A modification of a determination by the Committee under this chapter, or an appeal to the Children's Cabinet, is not a contested case within the meaning of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Interagency Rates Committee Advisory Committee."> <paragraph num="A."> <text>An Advisory Committee to the Interagency Rates Committee, composed of parents, advocates, and providers, shall be appointed by the Children's Cabinet. The Advisory Committee may recommend and review policies and procedures regarding rate setting and provide information regarding the impact of rates on children, facilities, providers, and the business community.</text> </paragraph> <paragraph num="B."> <text>The Advisory Committee shall meet periodically.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Interagency Rates Advisory Committee."> <paragraph num="A."> <text>An advisory committee to the Interagency Rates Committee composed of parents, advocates, and providers shall be appointed by the Children's Cabinet. The Advisory Committee shall recommend and review policies and procedures regarding rate setting and provide information regarding the impact of rates on children, facilities, providers, and the business community.</text> </paragraph> <paragraph num="B."> <text>The Advisory Committee shall meet periodically.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§2-206 and 8-417; Family Law Article, §§5-506, 5-507, and 5-509; Health-General Article, §§2-102, 2-104, 2-105, 7-306.1, 10-516, 10-902, 10-1203, and 15-102.1; Human Services Article, §§2-209 and 9-231; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 29, 1998 (25:13 Md. R. 992)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective February 18, 2002 (29:3 Md. R. 216)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.05 revised and recodified to 14.31.04 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 24, 2005 (32:23 Md. R. 1828)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 1, 2024 (51:10 Md. R. 528)</annotation> </annotations> </chapter> <chapter num="05" heading="Licensing and Monitoring of Residential Child Care Programs"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter sets forth the process in Maryland for licensure of residential child care programs and monitoring of residential child care programs for children and youth, and establishes the procedures which applicants must follow in order to obtain licensure. The licensure and monitoring processes are designed to protect the health, safety, and well being of children placed in residential child care programs.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>This chapter applies to residential child care programs licensed by the Department of Human Services, the Maryland Department of Health, and the Department of Juvenile Services, including the following programs for children:</text> <paragraph num="(1)"> <text>Alternative living units;</text> </paragraph> <paragraph num="(2)"> <text>Emergency shelter placement;</text> </paragraph> <paragraph num="(3)"> <text>Group homes;</text> </paragraph> <paragraph num="(4)"> <text>Mother-infant programs;</text> </paragraph> <paragraph num="(5)"> <text>Nonpublic residential educational facilities;</text> </paragraph> <paragraph num="(6)"> <text>Programs for medically fragile children;</text> </paragraph> <paragraph num="(7)"> <text>Programs for pregnant adolescents;</text> </paragraph> <paragraph num="(8)"> <text>Psychiatric respite care;</text> </paragraph> <paragraph num="(9)"> <text>Residential crisis services;</text> </paragraph> <paragraph num="(10)"> <text>State-operated residential educational facilities;</text> </paragraph> <paragraph num="(11)"> <text>Secure care;</text> </paragraph> <paragraph num="(12)"> <text>Therapeutic group homes; and</text> </paragraph> <paragraph num="(13)"> <text>Wilderness programs.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as set forth in §C of this regulation, a person shall be licensed under this chapter and COMAR 14.31.06 and 14.31.07 before operating a private residential child care program.</text> </paragraph> <paragraph num="C."> <text>This chapter does not apply to the care of children by:</text> <paragraph num="(1)"> <text>A parent or guardian of the child;</text> </paragraph> <paragraph num="(2)"> <text>An individual related to the child by blood or marriage within four degrees of consanguinity or affinity under the civil law rule;</text> </paragraph> <paragraph num="(3)"> <text>An individual who:</text> <paragraph num="(a)"> <text>Exercises temporary care, custody, or control over the child at the request of a parent or guardian of the child; and</text> </paragraph> <paragraph num="(b)"> <text>Who is not otherwise required to be licensed;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An individual with whom the child is placed in individual family care or foster care by a licensed child placement agency, a court of competent jurisdiction, or agency as defined by Regulation .03 of this chapter, and who is otherwise required to be licensed;</text> </paragraph> <paragraph num="(5)"> <text>A youth camp subject to certification by the Maryland Department of Health;</text> </paragraph> <paragraph num="(6)"> <text>A facility subject to the Certificate of Need process under State law;</text> </paragraph> <paragraph num="(7)"> <text>A nonpublic residential school that is not approved to serve students with disabilities under COMAR 13A.05.02.12;</text> </paragraph> <paragraph num="(8)"> <text>A facility listed in Article 83C, §2-117, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(9)"> <text>A residential facility operated by the Department of Juvenile Services.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Special Licensing and Monitoring Requirements.</text> <paragraph num="(1)"> <text>Special licensing and monitoring requirements which differ from or supplement the requirements of this chapter are applicable to the following:</text> <paragraph num="(a)"> <text>Nonpublic residential educational facilities;</text> </paragraph> <paragraph num="(b)"> <text>Secure care programs;</text> </paragraph> <paragraph num="(c)"> <text>Wilderness programs;</text> </paragraph> <paragraph num="(d)"> <text>Programs for medically fragile children;</text> </paragraph> <paragraph num="(e)"> <text>Programs for children with developmental disabilities;</text> </paragraph> <paragraph num="(f)"> <text>Shelter care programs;</text> </paragraph> <paragraph num="(g)"> <text>Programs for pregnant adolescents; and</text> </paragraph> <paragraph num="(h)"> <text>Mother-infant programs.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Special licensing and monitoring requirements for the programs listed in §D(1) of this regulation appear in COMAR 14.31.07.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agency” means the Maryland Department of Health, the Department of Human Services, or the Department of Juvenile Services.</text> </paragraph> <paragraph num="(2)"> <text>“Alternative living unit” means a residence owned, leased, or operated by a licensee that:</text> <paragraph num="(a)"> <text>Provides residential services for children who, because of a developmental disability, require specialized living arrangements;</text> </paragraph> <paragraph num="(b)"> <text>Admits not more than three children; and</text> </paragraph> <paragraph num="(c)"> <text>Provides 24 hours of supervision per unit, per day.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Applicant” means a person who seeks a license.</text> </paragraph> <paragraph num="(4)"> <text>“Aversive technique” means the use of painful or noxious stimuli to the body, which is intrusive to the individual's physical, mental, or emotional well being, to terminate challenging or maladaptive behavior.</text> </paragraph> <paragraph num="(5)"> <text>“Behavior plan” means a plan designed to modify a child's behavior through the use of clinically accepted techniques.</text> </paragraph> <paragraph num="(6)"> <text>“Child” means an individual younger than 21 years old, unless otherwise defined in the regulations of an agency that serves children in need of placement in a residential child care program.</text> </paragraph> <paragraph num="(7)"> <text>“Children's Cabinet” means those agencies directed by Executive Order:</text> <paragraph num="(a)"> <text>To examine Maryland's system of services to children and their families; and</text> </paragraph> <paragraph num="(b)"> <text>To facilitate ongoing improvements to this delivery system.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Community-based behavioral respite” means relief services provided by a community residential licensee designed to meet the individual behavioral needs of a child with a serious emotional disturbance for not more than 30 days in a community-based setting.</text> </paragraph> <paragraph num="(9)"> <text>“Corrective action plan” means a program's detailed remedy to correct deficiencies in the program's compliance with State licensing regulations and with other legal requirements identified by the licensing agency or other State or federal agency.</text> </paragraph> <paragraph num="(10)"> <text>“Day” means a calendar day.</text> </paragraph> <paragraph num="(11)"> <text>“Developmental disability” means a severe chronic disability of an individual that:</text> <paragraph num="(a)"> <text>Is attributable to a physical or mental impairment, other than the sole diagnosis of mental illness, or to a combination of mental and physical impairments;</text> </paragraph> <paragraph num="(b)"> <text>Is likely to continue indefinitely;</text> </paragraph> <paragraph num="(c)"> <text>Is manifested before the age of 22;</text> </paragraph> <paragraph num="(d)"> <text>Results in an inability to live independently without external support or continuing and regular assistance; and</text> </paragraph> <paragraph num="(e)"> <text>Reflects the need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are individually planned and coordinated for the individual.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Emergency shelter placement” means the immediate placement of a child in a residential child care program because the placing agency or individual satisfactorily documents that it is physically impossible to accomplish a planned placement as required by this chapter and good practice.</text> </paragraph> <paragraph num="(13)"> <text>“Employee” means an individual who works for a licensee for compensation.</text> </paragraph> <paragraph num="(14)"> <text>“Expansion request” means a request for materials required by the Governor's Office for Children under COMAR 14.31.02 of a licensed provider who wishes to expand a residential child care program to an additional location.</text> </paragraph> <paragraph num="(15)"> <text>“Facility” means the physical premises where a residential child care program is operated.</text> </paragraph> <paragraph num="(16)"> <text>“Group home” means a facility owned, leased, or operated by a licensee that provides:</text> <paragraph num="(a)"> <text>Residential services for youths such as care, diagnosis, training, education, and rehabilitation; and</text> </paragraph> <paragraph num="(b)"> <text>A group living experience.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Individualized educational program” means a plan for special education and related services designed to provide a free appropriate public education to a student with disabilities under 28 U.S.C. §1401 et seq. and COMAR 13A.05.01.</text> </paragraph> <paragraph num="(18)"> <text>“Interagency Rates Committee” means the Maryland Interagency Rates Advisory Committee constituted under COMAR 14.31.04 to establish State reimbursement rates for services to children in residential child care programs and other programs.</text> </paragraph> <paragraph num="(19)"> <text>“License” means the approval granted by a licensing agency to operate a private residential child care program.</text> </paragraph> <paragraph num="(20)"> <text>Licensee.</text> <paragraph num="(a)"> <text>“Licensee” means a corporation that has been granted a license to operate a residential child care program.</text> </paragraph> <paragraph num="(b)"> <text>“Licensee”, unless the context indicates otherwise, includes the corporation's:</text> <paragraph num="(i)"> <text>Board of directors;</text> </paragraph> <paragraph num="(ii)"> <text>Officers;</text> </paragraph> <paragraph num="(iii)"> <text>Employees;</text> </paragraph> <paragraph num="(iv)"> <text>Agents;</text> </paragraph> <paragraph num="(v)"> <text>Assigns; and</text> </paragraph> <paragraph num="(vi)"> <text>Volunteers.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(21)"> <text>“Licensing agency” means the agency designated by the Governor's Office for Children to be responsible for licensing a private residential child care program.</text> </paragraph> <paragraph num="(22)"> <text>“Management of disruptive behavior” means an agency-approved curriculum for managing challenging or aggressive behavior.</text> </paragraph> <paragraph num="(23)"> <text>“Mechanical support” means a mechanical device used to support an individual's proper body position, balance, or alignment.</text> </paragraph> <paragraph num="(24)"> <text>“Medically fragile child” means a child who is dependent upon any combination of the following:</text> <paragraph num="(a)"> <text>Mechanical ventilation for at least part of each day;</text> </paragraph> <paragraph num="(b)"> <text>Intravenous administration of nutritional substances or drugs;</text> </paragraph> <paragraph num="(c)"> <text>Other device-based respiratory or nutritional support on a daily basis, including tracheotomy tube care, suctioning, or oxygen support;</text> </paragraph> <paragraph num="(d)"> <text>Other medical devices that compensate for vital body functions; including:</text> <paragraph num="(i)"> <text>Apnea or cardiorespiratory monitors;</text> </paragraph> <paragraph num="(ii)"> <text>Renal dialysis; or</text> </paragraph> <paragraph num="(iii)"> <text>Other mechanical devices; or</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Substantial nursing care in connection with disabilities.</text> </paragraph> </paragraph> <paragraph num="(25)"> <text>“Monitoring” means the evaluation of a program's compliance with regulations.</text> </paragraph> <paragraph num="(26)"> <text>“Mother infant programs” are residential child care programs that provide special services and residential care to children who are mothers and their infants.</text> </paragraph> <paragraph num="(27)"> <text>“Nonpublic residential educational facility” means the residential facility of a nonpublic school program approved under COMAR 13A.05.02.12 for the placement of students with disabilities.</text> </paragraph> <paragraph num="(28)"> <text>Parent.</text> <paragraph num="(a)"> <text>“Parent” means a child's biological or adoptive parent.</text> </paragraph> <paragraph num="(b)"> <text>“Parent”, unless otherwise indicated, includes a child's guardian, or custodian or parent surrogate appointed under the Individuals with Disabilities Education Act.</text> </paragraph> </paragraph> <paragraph num="(29)"> <text>" Physical plant" means the building or buildings in which a private residential child care program or state-operated program is operated.</text> </paragraph> <paragraph num="(30)"> <text>“Placing agency” means the agency, individual, or entity that places a child in a private residential child care program or State-operated program.</text> </paragraph> <paragraph num="(31)"> <text>“Program for pregnant adolescents” means a residential program that provides comprehensive prenatal care, dental care, delivery services, pediatric services, and day care arrangements for pregnant minors.</text> </paragraph> <paragraph num="(32)"> <text>Program.</text> <paragraph num="(a)"> <text>“Program” means a private residential child care program.</text> </paragraph> <paragraph num="(b)"> <text>“Program”, unless otherwise indicated, includes the physical plant.</text> </paragraph> </paragraph> <paragraph num="(33)"> <text>“Psychiatric respite” means residential programs on hospital grounds in which children discharged from inpatient psychiatric hospitalizations receive transition services in anticipation of placement in a residential treatment or community-based setting.</text> </paragraph> <paragraph num="(34)"> <text>“Quality assurance plan” means a plan submitted to the licensing agency by the licensee or applicant that documents the means by which achievement of goals and objectives established by the licensee will be measured.</text> </paragraph> <paragraph num="(35)"> <text>Residential Child Care Program.</text> <paragraph num="(a)"> <text>“Residential child care program” means an entity that provides care for children 24-hours-per-day within a structured set of services and activities that are designed to achieve specific objectives relative to the needs of the children served, including the provision of:</text> <paragraph num="(i)"> <text>Food;</text> </paragraph> <paragraph num="(ii)"> <text>Clothing;</text> </paragraph> <paragraph num="(iii)"> <text>Shelter;</text> </paragraph> <paragraph num="(iv)"> <text>Education;</text> </paragraph> <paragraph num="(v)"> <text>Social services;</text> </paragraph> <paragraph num="(vi)"> <text>Health;</text> </paragraph> <paragraph num="(vii)"> <text>Mental health;</text> </paragraph> <paragraph num="(viii)"> <text>Recreation; or</text> </paragraph> <paragraph num="(ix)"> <text>Any combination of these services and activities.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Residential child care program” includes residential services for children in:</text> <paragraph num="(i)"> <text>Residential facilities for children with developmental disabilities;</text> </paragraph> <paragraph num="(ii)"> <text>Child care homes;</text> </paragraph> <paragraph num="(iii)"> <text>Child care institutions;</text> </paragraph> <paragraph num="(iv)"> <text>Therapeutic group homes; and</text> </paragraph> <paragraph num="(v)"> <text>Group homes.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(36)"> <text>“Residential crisis services” means intensive mental health and support services that are:</text> <paragraph num="(a)"> <text>Provided to a child with mental illness who is expecting, or is at risk of, a psychiatric crisis that would impair the child's ability to function in the community;</text> </paragraph> <paragraph num="(b)"> <text>Designed to prevent a psychiatric inpatient admission of the child, provide an alternative to the psychiatric inpatient admission, or shorten the length of an inpatient stay; and</text> </paragraph> <paragraph num="(c)"> <text>Provided on a short-term basis in a community-based setting for not more than 30 days.</text> </paragraph> </paragraph> <paragraph num="(37)"> <text>“Secure care program” means a program that employs locked doors or other physical means to prevent egress by alleged or adjudicated delinquent children.</text> </paragraph> <paragraph num="(38)"> <text>“Shelter care” means care in:</text> <paragraph num="(a)"> <text>A shelter care program licensed solely for the temporary care of children for not more than 60 days; or</text> </paragraph> <paragraph num="(b)"> <text>A self-contained structured shelter care program licensed by the Department of Juvenile Services for the temporary care of children for not more than 90 days.</text> </paragraph> </paragraph> <paragraph num="(39)"> <text>“State-operated residential educational facility” means the Maryland School for the Deaf and the Maryland School for the Blind.</text> </paragraph> <paragraph num="(40)"> <text>“Submit” means to deliver a document:</text> <paragraph num="(a)"> <text>In a manner that ensures its receipt by the party to whom it is addressed; and</text> </paragraph> <paragraph num="(b)"> <text>Which is considered complete only upon actual receipt by that party.</text> </paragraph> </paragraph> <paragraph num="(41)"> <text>“Teen mother program” means a licensed residential program that provides care and services for children who are mothers with an infant.</text> </paragraph> <paragraph num="(42)"> <text>“Therapeutic group home” means a small private group home that provides residential child care as well as access to a range of diagnostic and therapeutic mental health services for children and adolescents who have mental disorders.</text> </paragraph> <paragraph num="(43)"> <text>“Treatment foster care” means a 24-hour substitute care program operated by a licensed child placement agency or local department of social services for children with a serious emotional, behavioral, medical, or psychological condition.</text> </paragraph> <paragraph num="(44)"> <text>“Variance” means an alternative to a specific licensing regulation.</text> </paragraph> <paragraph num="(45)"> <text>“Volunteer” means an individual who provides services without compensation at a residential child care program.</text> </paragraph> <paragraph num="(46)"> <text>“Waiver” means the setting aside of a specific licensing regulation.</text> </paragraph> <paragraph num="(47)"> <text>“Wilderness program” means a program:</text> <paragraph num="(a)"> <text>In which facilities and activities are related to nature as much as possible in a site that is left essentially in its natural state; and</text> </paragraph> <paragraph num="(b)"> <text>Where living and program quarters and activities are integrated into the natural environment.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Organization and Administration."> <paragraph num="A."> <text>Incorporation.</text> <paragraph num="(1)"> <text>Each applicant and licensee shall be incorporated and maintain their corporate status.</text> </paragraph> <paragraph num="(2)"> <text>The applicant shall submit to the licensing agency:</text> <paragraph num="(a)"> <text>A certified copy of the articles of incorporation and by-laws, before licensure and upon request of the licensing agency; and</text> </paragraph> <paragraph num="(b)"> <text>At least 45 days before the proposed implementation date, any changes in the:</text> <paragraph num="(i)"> <text>Corporate name;</text> </paragraph> <paragraph num="(ii)"> <text>Articles of incorporation; or</text> </paragraph> <paragraph num="(iii)"> <text>By-laws.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Before it submits an application for licensure to the licensing agency, an out-of-State applicant shall register and qualify with the Department of Assessments and Taxation to do business in Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Financial Operation. The applicant shall:</text> <paragraph num="(1)"> <text>Upon initial application, provide written documentation that the organization:</text> <paragraph num="(a)"> <text>Is solvent; and</text> </paragraph> <paragraph num="(b)"> <text>Has access to the financial resources to operate for at least 6 months;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Base the financial operation of the program on an annual budget that reflects anticipated expenditures and sources of income;</text> </paragraph> <paragraph num="(3)"> <text>Have a sound plan of financing to provide sufficient funds to operate the program;</text> </paragraph> <paragraph num="(4)"> <text>Maintain insurance in the following categories:</text> <paragraph num="(a)"> <text>Fire;</text> </paragraph> <paragraph num="(b)"> <text>Casualty;</text> </paragraph> <paragraph num="(c)"> <text>Professional liability;</text> </paragraph> <paragraph num="(d)"> <text>General liability; and</text> </paragraph> <paragraph num="(e)"> <text>Directors' and officers' liability;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Comply with the legal requirements for unemployment compensation and workers' compensation;</text> </paragraph> <paragraph num="(6)"> <text>Submit to the licensing agency an annual audit by an independent certified public accountant who is not:</text> <paragraph num="(a)"> <text>An employee or officer of the corporation;</text> </paragraph> <paragraph num="(b)"> <text>A member of the board of directors; or</text> </paragraph> <paragraph num="(c)"> <text>Related to an employee, officer, or director;</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Provide the licensing agency access to financial records or financial statements, upon request;</text> </paragraph> <paragraph num="(8)"> <text>Notify the licensing agency of any filing of bankruptcy, and keep the licensing agency informed of any legal actions resulting from the bankruptcy filing; and</text> </paragraph> <paragraph num="(9)"> <text>Notify the licensing agency of any legal action related to the licensee's residential child care programs that is filed against the licensee, and the outcome of the legal action.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Licensing Process."> <paragraph num="A."> <text>Initial Inquiries.</text> <paragraph num="(1)"> <text>An applicant initially shall direct inquiries for obtaining a license to the Governor's Office for Children in accordance with COMAR 14.31.02.</text> </paragraph> <paragraph num="(2)"> <text>Based upon a completed proposal submitted by the applicant in accordance with COMAR 14.31.02, the Governor's Office for Children shall designate a licensing agency.</text> </paragraph> <paragraph num="(3)"> <text>The licensing agency shall send an application to the applicant upon referral from the Governor's Office for Children.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Application Process.</text> <paragraph num="(1)"> <text>An applicant shall submit a completed application within 6 months of receipt of the application from the licensing agency.</text> </paragraph> <paragraph num="(2)"> <text>Within 60 days after receipt of a complete application, authorized staff individuals at the licensing agency shall:</text> <paragraph num="(a)"> <text>Evaluate the application, including consideration of the factors listed in COMAR 14.31.02.08A;</text> </paragraph> <paragraph num="(b)"> <text>Inspect the proposed physical plant; and</text> </paragraph> <paragraph num="(c)"> <text>Propose to issue or deny the license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Valid License. Unless revoked or suspended, a license is valid for a period of 2 years.</text> </paragraph> <paragraph num="D."> <text>Separate License. A license is valid only for the program and the physical plant specified in the license application. A licensee shall obtain a separate license for each physical plant where a program is located.</text> </paragraph> <paragraph num="E."> <text>False Information. A licensing agency may deny a new license or a renewed license if the applicant or licensee knowingly provides false information to the licensing agency or the Interagency Rates Committee.</text> </paragraph> <paragraph num="F."> <text>Expansion.</text> <paragraph num="(1)"> <text>A licensee may not expand the number of beds for which it is licensed, unless the licensee:</text> <paragraph num="(a)"> <text>Has been serving children in the program without suspension or revocation and has not been subject to a corrective action plan regarding matters concerning the health and safety of children for at least 1 year; and</text> </paragraph> <paragraph num="(b)"> <text>Has written permission from its licensing agency.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensee who does not meet the conditions of §F(1)(a) and (b) of this regulation shall seek a waiver under Regulation .11 of this chapter to expand a program.</text> </paragraph> </paragraph> <paragraph num="G."> <text>A licensee may operate more than one program in the same facility if the programs are:</text> <paragraph num="(1)"> <text>Individually licensed, and the licenses for each program specifically allow for the licensure of the other program in the same facility; and</text> </paragraph> <paragraph num="(2)"> <text>Operated as discrete programs with clear separation of the children in each program.</text> </paragraph> </paragraph> <paragraph num="H."> <text>License Renewal.</text> <paragraph num="(1)"> <text>A licensee seeking renewal of its license shall submit to the licensing agency a license renewal application 120 days before its license expires.</text> </paragraph> <paragraph num="(2)"> <text>The licensing agency shall propose to grant or deny a completed renewal application within 60 days of its determination that the application is complete.</text> </paragraph> <paragraph num="(3)"> <text>If the licensing agency is unable to redetermine the licensee's eligibility before the license expires, the licensing agency shall extend the license expiration date until the renewal application process is completed in accordance with the requirements of State Government Article, §10-226, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>If the licensing agency renews a license to the licensee, the licensee shall return the expired license to the licensing agency.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Program Closure. When a licensee closes its program, the license is invalid. Before the licensee closes its program, the licensee shall:</text> <paragraph num="(1)"> <text>Inform the licensing agency and any agency that has placed children in the program at least 30 days in advance of the closing;</text> </paragraph> <paragraph num="(2)"> <text>Submit a written plan for the removal of children from the program to the licensing agency for approval;</text> </paragraph> <paragraph num="(3)"> <text>Implement the plan for the removal of children subject to the oversight of the licensing agency; and</text> </paragraph> <paragraph num="(4)"> <text>Return the license to the licensing agency on the day the program closes.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Proposed License Denial. If the licensing agency proposes to deny an application for a license or renewal of a license under §E of this regulation, the licensing agency shall give written notice to the applicant or the licensee of the proposed denial that includes:</text> <paragraph num="(1)"> <text>The facts that warrant the proposed denial of the license or renewal of the license;</text> </paragraph> <paragraph num="(2)"> <text>Citation to the regulations upon which the proposed denial is based; and</text> </paragraph> <paragraph num="(3)"> <text>Notification that, before the denial of the license or renewal of the license, the applicant or licensee may request a hearing under the provisions of Regulation .10 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Monitoring and Evaluation of Programs."> <paragraph num="A."> <text>Monitoring Activities.</text> <paragraph num="(1)"> <text>For monitoring purposes, the licensing agency may require the licensee to make its records, personnel, residents, and facilities available on an announced or unannounced basis:</text> <paragraph num="(a)"> <text>At any time, if the agency's visit concerns a matter regarding the health, safety, or proper care of the program's residents; or</text> </paragraph> <paragraph num="(b)"> <text>At a reasonable time during the program's business hours, if the visit concerns other matters.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Monitoring activities may include:</text> <paragraph num="(a)"> <text>Reviews of financial, personnel, and child records;</text> </paragraph> <paragraph num="(b)"> <text>Interviews with staff individuals;</text> </paragraph> <paragraph num="(c)"> <text>Interviews with children in care;</text> </paragraph> <paragraph num="(d)"> <text>Site inspections of the physical plant;</text> </paragraph> <paragraph num="(e)"> <text>On-site observations of the agency's program operations; and</text> </paragraph> <paragraph num="(f)"> <text>Any other information gathering pertinent to State law or this chapter.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The licensing agency shall monitor each program to evaluate its facilities, policies, and operations:</text> <paragraph num="(a)"> <text>Before the issuance or renewal of a license;</text> </paragraph> <paragraph num="(b)"> <text>At the time of the mid-license period report; and</text> </paragraph> <paragraph num="(c)"> <text>Before the suspension or revocation of a license.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Response to Complaints.</text> <paragraph num="(1)"> <text>The licensing agency shall initiate a response to complaints from any source about the licensee within 24 hours.</text> </paragraph> <paragraph num="(2)"> <text>In responding to a complaint, the licensing agency may require the licensee to:</text> <paragraph num="(a)"> <text>Make the program available for agency inspection as provided in §A of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Provide a written response to the complaint from the licensee; or</text> </paragraph> <paragraph num="(c)"> <text>Complete any additional appropriate procedure deemed necessary by the agency to ensure the safety and welfare of the program's residents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Mid-License Period Evaluation. The licensing agency shall complete a mid-license period evaluation of each program as follows:</text> <paragraph num="(1)"> <text>The licensing agency shall send notification to the licensee 60 days before the end of the first year of the license period that:</text> <paragraph num="(a)"> <text>The program shall submit to the licensing agency a mid-license period report on or before the anniversary of the license issuance date;</text> </paragraph> <paragraph num="(b)"> <text>The mid-license period report shall include:</text> <paragraph num="(i)"> <text>A list of governing board members and officers;</text> </paragraph> <paragraph num="(ii)"> <text>The program's audit or audit review for the current year;</text> </paragraph> <paragraph num="(iii)"> <text>An operations budget for the current year; and</text> </paragraph> <paragraph num="(iv)"> <text>The licensee's current quality assurance plan; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensing agency shall conduct a mid-license period review, including:</text> <paragraph num="(a)"> <text>Review of board minutes, personnel records, and children's records; and</text> </paragraph> <paragraph num="(b)"> <text>On-site inspection of the program.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Child Safety Concerns. If, at any time during the course of monitoring a program, the licensing agency's monitor has reason to believe that a child residing in a program has been subject to abuse or neglect, the monitor shall report that concern in accordance with Family Law Article, §§5-704 and 5-705, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Interagency Monitoring of Residential Child Care Programs."> <paragraph num="A."> <text>A licensing or placing agency may request that a program be monitored by an interagency team if:</text> <paragraph num="(1)"> <text>Children placed by multiple agencies may be affected by suspected deficiencies in the program's compliance with State licensing or other legal requirements; or</text> </paragraph> <paragraph num="(2)"> <text>The expertise of another agency is required to adequately assess a program's compliance or remedy noncompliance with particular State licensing regulations or other legal requirements.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A request to constitute an interagency team shall be made to the Children's Cabinet, or its designee, in writing or in an oral presentation at an official meeting of the Children's Cabinet or its designee.</text> </paragraph> <paragraph num="C."> <text>Upon receipt of a request, the Children's Cabinet or its designee shall:</text> <paragraph num="(1)"> <text>Decide whether to authorize formation of an interagency monitoring team;</text> </paragraph> <paragraph num="(2)"> <text>Identify the agencies to be represented on the team; and</text> </paragraph> <paragraph num="(3)"> <text>Specify the scope of the interagency monitoring initiative.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The interagency monitoring team shall submit a copy of its findings and recommendations for corrective action to the Children's Cabinet or its designee for final approval.</text> </paragraph> <paragraph num="E."> <text>This regulation does not limit agencies from informally collaborating in the monitoring of a program upon mutual agreement.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Corrective Actions."> <paragraph num="A."> <text>If the licensing agency determines through its monitoring and evaluation activities that a program is deficient in meeting the licensing requirements of this chapter, COMAR 14.31.06, or COMAR 14.31.07, and the licensing agency chooses to require a corrective action plan, it shall:</text> <paragraph num="(1)"> <text>Determine whether it is necessary during the pendency of the corrective action process to:</text> <paragraph num="(a)"> <text>Remove children currently placed in the facility; or</text> </paragraph> <paragraph num="(b)"> <text>Place a moratorium on future placements to the program;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Evaluate and, if acceptable, approve the corrective action plan;</text> </paragraph> <paragraph num="(3)"> <text>Determine appropriate timelines for the completion of corrective actions;</text> </paragraph> <paragraph num="(4)"> <text>Conduct periodic monitoring of any program for which it required a corrective action plan:</text> <paragraph num="(a)"> <text>To assess the program's progress toward remedying the deficiencies; and</text> </paragraph> <paragraph num="(b)"> <text>To evaluate the program's viability as it is affected by the licensing agency's action.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Upon determining that corrective actions are required to remedy deficiencies, the licensing agency shall give written notice to the program including:</text> <paragraph num="(1)"> <text>A description of the regulation violated or other program violation;</text> </paragraph> <paragraph num="(2)"> <text>A description of any sanctions to be imposed; and</text> </paragraph> <paragraph num="(3)"> <text>The requirements for the licensee's submission of a plan of correction to the licensing agency.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Corrective Action Plans.</text> <paragraph num="(1)"> <text>Within 10 days of receipt of a deficiency notice under §B of this regulation, the licensee shall submit a corrective action plan to the licensing agency for approval.</text> </paragraph> <paragraph num="(2)"> <text>The licensing agency shall review the corrective action plan by the effective date of the sanction indicated in the deficiency notice and inform the licensee whether the plan of correction has been accepted.</text> </paragraph> <paragraph num="(3)"> <text>If the licensee fails to submit an acceptable corrective action plan within the agency's timelines, the licensing agency may:</text> <paragraph num="(a)"> <text>Impose additional corrective action measures under this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Provide additional time for the licensee to submit a revised corrective action plan; or</text> </paragraph> <paragraph num="(c)"> <text>Impose sanctions under Regulation .09 of this chapter.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Corrective Action Outcomes.</text> <paragraph num="(1)"> <text>If the licensing agency, at any time during the corrective action period, determines that the licensee has failed to fulfill the corrective action plan requirements or makes insufficient progress towards remedying deficiencies, the licensing agency may:</text> <paragraph num="(a)"> <text>Require the removal of currently placed children from the program;</text> </paragraph> <paragraph num="(b)"> <text>Place a moratorium on future placements at the program; or</text> </paragraph> <paragraph num="(c)"> <text>For good cause, grant an extension of time for completion of a corrective action plan.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the licensing agency determines, at the end of the prescribed corrective action period, that the licensee has failed to remedy deficiencies adequately, the agency shall impose sanctions under Regulation .09 of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Services to Children at Programs with Corrective Action Plans.</text> <paragraph num="(1)"> <text>The placing agency shall identify an expedited, interim placement for a child who must be removed from a program due to deficiencies.</text> </paragraph> <paragraph num="(2)"> <text>If the licensing agency determines that children may no longer be placed in a program with uncorrected deficiencies, the licensing agency may grant a waiver for the placement of an individual child, or group of children, in the program based on the following considerations:</text> <paragraph num="(a)"> <text>The seriousness of the deficiency and its implications for the child's health, safety, and welfare;</text> </paragraph> <paragraph num="(b)"> <text>Applicable legal requirements including:</text> <paragraph num="(i)"> <text>The child's individualized education program, if the child is a student with disabilities;</text> </paragraph> <paragraph num="(ii)"> <text>Any court order regarding the child's placement; and</text> </paragraph> <paragraph num="(iii)"> <text>Any other legal requirements that may govern in the child's placement;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The medical recommendations of the child's treating physician;</text> </paragraph> <paragraph num="(d)"> <text>The availability of alternative placements; and</text> </paragraph> <paragraph num="(e)"> <text>The ability of the program to ensure safe and appropriate services for each child for whom the waiver is sought.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Sanctions."> <paragraph num="A."> <text>Causes for Sanctions.</text> <paragraph num="(1)"> <text>The licensing agency may impose sanctions on a program, regardless of whether a corrective action plan is required in accordance with Regulation .08A of this chapter, for violations of the regulations of this chapter, COMAR 14.31.06 or 14.31.07, or any combination of these.</text> </paragraph> <paragraph num="(2)"> <text>Sanctions may also be imposed for:</text> <paragraph num="(a)"> <text>Misrepresentations of fact to the licensing agency, a placing agency, the Office for Children, or the Interagency Rates Committee;</text> </paragraph> <paragraph num="(b)"> <text>Submission of false financial information to the licensing agency, the Office for Children, or the Interagency Rates Committee;</text> </paragraph> <paragraph num="(c)"> <text>Failure to cooperate with the monitoring activities of the licensing agency or placing agencies under Regulation .06 of this chapter;</text> </paragraph> <paragraph num="(d)"> <text>Failure to prepare or implement an adequate corrective plan under Regulation .08 of this chapter when found to be in noncompliance with the licensing standards of COMAR 14.31.06; or</text> </paragraph> <paragraph num="(e)"> <text>Violations of other federal or State laws or regulations that jeopardize the safety or welfare of the program's residents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Types of Sanctions.</text> <paragraph num="(1)"> <text>Sanctions may include the suspension, revocation, and limitation of the program's license.</text> </paragraph> <paragraph num="(2)"> <text>Limitations on a license may include restrictions on the:</text> <paragraph num="(a)"> <text>Number of children served by the program;</text> </paragraph> <paragraph num="(b)"> <text>Diagnostic and other characteristics of the population served by the program; and</text> </paragraph> <paragraph num="(c)"> <text>Elements of the program's services for which corrective action is deemed necessary by the licensing agency.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Revocation.</text> <paragraph num="(1)"> <text>Except as set forth in §D of this regulation, the licensing agency shall give the licensee notice of the intended revocation at least 20 days before a license is revoked.</text> </paragraph> <paragraph num="(2)"> <text>The licensing agency shall include in the notice:</text> <paragraph num="(a)"> <text>A statement of the regulation violated and the nature of the violation;</text> </paragraph> <paragraph num="(b)"> <text>The effective date of the revocation; and</text> </paragraph> <paragraph num="(c)"> <text>A statement describing the licensee's right under Regulation .10 of this chapter to a hearing before the revocation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless the licensee files an appeal of the revocation under Regulation .10 of this chapter, the licensing agency shall:</text> <paragraph num="(a)"> <text>Notify the placing agency of the revocation at least 20 days before the intended revocation; and</text> </paragraph> <paragraph num="(b)"> <text>Advise the placing agency to remove the children by the revocation date.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Unless the licensee files an appeal under Regulation .10 of this chapter, the licensee shall relinquish care of the children in the program to the placing agency by the revocation date.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Other Sanctions.</text> <paragraph num="(1)"> <text>The licensing agency may suspend or limit a license for a violation of these regulations, which the licensing agency determines can be corrected within the period of suspension or limitation.</text> </paragraph> <paragraph num="(2)"> <text>Except as set forth in §E of this regulation, the licensing agency shall give the licensee notice of the intended action at least 20 days before a license is suspended or limited.</text> </paragraph> <paragraph num="(3)"> <text>The licensing agency shall include in the notice:</text> <paragraph num="(a)"> <text>A statement of the regulation violated and the nature of the violation;</text> </paragraph> <paragraph num="(b)"> <text>For proposed license suspensions:</text> <paragraph num="(i)"> <text>The length of the suspension; and</text> </paragraph> <paragraph num="(ii)"> <text>The effective date of the suspension;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>For proposed license limitation:</text> <paragraph num="(i)"> <text>The nature of the limitation on the program's license;</text> </paragraph> <paragraph num="(ii)"> <text>The duration of the limitation; and</text> </paragraph> <paragraph num="(iii)"> <text>The effective date of the limitation;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Information about the licensee's responsibility to submit to the licensing agency a corrective action plan; and</text> </paragraph> <paragraph num="(e)"> <text>A statement describing the licensee's right under Regulation .10 of this chapter to a hearing before the imposition of the suspension or limitation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Unless the licensee files an appeal of the suspension or license limitation under Regulation .10 of this chapter, the licensing agency shall:</text> <paragraph num="(a)"> <text>Notify the placing agency of the intended suspension or limitation at least 20 days before a license is suspended or limited; and</text> </paragraph> <paragraph num="(b)"> <text>Advise the placing agency to remove the children by the effective date.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Unless the licensee files an appeal under Regulation .10 of this chapter, the licensee shall:</text> <paragraph num="(a)"> <text>By the suspension date, relinquish care of the children in the program to the placing agency; or</text> </paragraph> <paragraph num="(b)"> <text>By the license limitation date, modify the program's operations in accordance with the license limitation, including relinquishment of the care of children to the placing agency as necessary.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Emergency Action.</text> <paragraph num="(1)"> <text>Notwithstanding any other requirement of these regulations, if the licensing agency determines that action is necessary to protect the health, safety, or welfare of the children or the general public, the licensing agency, without prior notice, may suspend, revoke, or limit a license pursuant to State Government Article, §10-226(c)(2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>If the licensing agency takes an emergency action, the licensing agency shall deliver to the licensee a notice that includes:</text> <paragraph num="(a)"> <text>A statement of the specific regulation violated and the nature of the violation;</text> </paragraph> <paragraph num="(b)"> <text>A description of the action being taken by the licensing agency;</text> </paragraph> <paragraph num="(c)"> <text>For emergency suspensions, information about the licensee's responsibility to submit to the licensing agency a plan of correction; and</text> </paragraph> <paragraph num="(d)"> <text>A statement describing the licensee's right under Regulation .10 of this chapter to a hearing after the emergency action.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The licensing agency shall notify the placing agency of the emergency action and advise the placing agency to remove the children immediately.</text> </paragraph> <paragraph num="(4)"> <text>The licensee shall relinquish care of the children in the program to the placing agency.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Court Action. If the licensee does not relinquish care of the children as set forth under §§B—E of this regulation, the licensing agency shall take appropriate court action to enjoin the licensee from further caring for the children, including, if applicable, requesting that criminal action be taken pursuant to State law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Hearings."> <paragraph num="A."> <text>Right to Hearing. An applicant or licensee has a right to a hearing under the contested case provisions of the Maryland Administrative Procedure Act when:</text> <paragraph num="(1)"> <text>A licensing agency proposes to deny an application for a license;</text> </paragraph> <paragraph num="(2)"> <text>A licensing agency proposes to deny an application for renewal of a license;</text> </paragraph> <paragraph num="(3)"> <text>A licensing agency intends to impose sanctions or to suspend or revoke the license; or</text> </paragraph> <paragraph num="(4)"> <text>The licensee is subject to emergency action.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Request. A request for hearing under this regulation shall be submitted to the secretary of the licensing agency within 10 days after notice of the action about which the hearing is requested.</text> </paragraph> <paragraph num="C."> <text>Notification. The licensing agency shall notify the placing agency of the final decision of the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Injunctions."> <paragraph num="A."> <text>The licensing agency may seek to enjoin an institution, agency, society, individual, or set of individuals from operating a private residential child care program without a license or in violation of a term or condition of a license.</text> </paragraph> <paragraph num="B."> <text>The licensing agency shall file the request for an injunction in the circuit court in the jurisdiction in which the program is located or has an established place of business.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Variance and Waiver."> <paragraph num="A."> <text>Request for Variance.</text> <paragraph num="(1)"> <text>An applicant or licensee may submit to the licensing agency a written request for a variance.</text> </paragraph> <paragraph num="(2)"> <text>An applicant or licensee shall demonstrate that the variance will:</text> <paragraph num="(a)"> <text>Meet or produce the intended effect of each regulation for which the variance is requested; and</text> </paragraph> <paragraph num="(b)"> <text>Maintain the health, safety, and well-being of the children in the program at or above the level required by the regulation for which the variance is requested.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Licensing Agency Action on Request for Variance.</text> <paragraph num="(1)"> <text>The licensing agency shall act on a request for variance and notify the applicant or licensee of its decision within 30 days of receipt of the request, except for good cause.</text> </paragraph> <paragraph num="(2)"> <text>The licensing agency may grant the request for a variance if:</text> <paragraph num="(a)"> <text>The applicant or licensee submitted the request in accordance with the provisions of §A of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>The applicant or licensee has complied with all other licensing regulations; and</text> </paragraph> <paragraph num="(c)"> <text>The licensing agency determines that the requested variance will meet the requirements of §A(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless otherwise specified in the licensing agency's decision, a variance remains in effect for the term of the license.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Request for Waiver.</text> <paragraph num="(1)"> <text>An applicant or licensee may submit to the licensing agency a written request for a waiver.</text> </paragraph> <paragraph num="(2)"> <text>The applicant or licensee shall include in the request specific facts upon which the waiver is requested and shall demonstrate that:</text> <paragraph num="(a)"> <text>The waiver is necessary to meet the requirements of State or federal law; or</text> </paragraph> <paragraph num="(b)"> <text>It would be unduly burdensome and inequitable for the applicant or licensee to comply with the provisions of the regulation for which the waiver is requested; and</text> </paragraph> <paragraph num="(c)"> <text>Under the waiver, the program will maintain the health, safety, and well-being of the children in the program at or above the level required by the regulation for which the waiver is sought.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Licensing Agency Action on Request for Waiver.</text> <paragraph num="(1)"> <text>The licensing agency shall act on a request for a waiver and notify the applicant or licensee of its decision within 30 days of receipt of the request, except for good cause.</text> </paragraph> <paragraph num="(2)"> <text>The licensing agency may grant the request for a waiver if:</text> <paragraph num="(a)"> <text>The applicant or licensee submitted the request in accordance with the provisions of §C of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>The waiver is consistent with State law;</text> </paragraph> <paragraph num="(c)"> <text>The health, safety, and well-being of the children in the program is not jeopardized by the granting of the waiver; and</text> </paragraph> <paragraph num="(d)"> <text>The licensing agency determines that the requested waiver meets the requirements of §C(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless otherwise specified in the licensing agency's decision, a waiver remains in effect for the term of the license.</text> </paragraph> <paragraph num="(4)"> <text>Appeals. An applicant or licensee aggrieved by the decision of the licensing agency on a request for a variance or waiver may appeal the decision under Regulation .10 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Amendments to Regulations."> <text>This chapter may not be amended unless the amendment is approved by the Office for Children, the Secretary of Health, the Secretary of Human Services, the Secretary of Juvenile Services, and the State Superintendent of Schools.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §§8-301—8-303 and 8-401—8-417; Family Law Article, §§5-506, 5-508—5-510;Health-General Article, §§2-104, 7-904, 8-404, 10-922, and 10-924; Health Occupations Article, §20-302;Human Services Article, §§2-209, 2-212, 9-203, 9-204, 9-221, 9-231, 9-234, and 9-235; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 22, 2004 (31:23 Md. R. 1651)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.06 revised and recodified to COMAR 14.31.05 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 24, 2005 (32:23 Md. R. 1828)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A, B amended effective August 4, 2014 (41:15 Md. R. 892)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective August 4, 2014 (41:15 Md. R. 892)</annotation> </annotations> </chapter> <chapter num="06" heading="Standards for Residential Child Care Programs"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter articulates the standards that must be met and maintained by residential child care programs for children and youth. These requirements are designed to protect the health, safety, and well being of children placed in residential child care programs.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>This chapter applies to residential child care programs licensed by the Department of Human Services (DHS), Maryland Department of Health (MDH), and Department of Juvenile Services (DJS), including the following residential programs for children:</text> <paragraph num="(1)"> <text>Alternative living units;</text> </paragraph> <paragraph num="(2)"> <text>Group homes;</text> </paragraph> <paragraph num="(3)"> <text>Nonpublic residential educational facilities;</text> </paragraph> <paragraph num="(4)"> <text>MDH/Community Mental Health Programs/Residential Crisis Services;</text> </paragraph> <paragraph num="(5)"> <text>State-operated residential educational facilities; and</text> </paragraph> <paragraph num="(6)"> <text>Therapeutic group homes.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Except as set forth in §C of this regulation, a person or entity shall be licensed under these regulations before operating a nonpublic residential child care program.</text> </paragraph> <paragraph num="C."> <text>This chapter does not apply to the care of children by:</text> <paragraph num="(1)"> <text>A parent or guardian of the child;</text> </paragraph> <paragraph num="(2)"> <text>An individual related to the child by blood or marriage within five degrees of consanguinity or affinity under the civil law rule.</text> </paragraph> <paragraph num="(3)"> <text>An individual who exercises temporary care, custody, or control over the child at the request of a parent or guardian of the child and who is not otherwise required to be licensed;</text> </paragraph> <paragraph num="(4)"> <text>An individual with whom the child is placed in individual family care or foster care by a licensed child placement agency, a court of competent jurisdiction, or agency as defined by Regulation .03 of this chapter, and who is otherwise required to be licensed;</text> </paragraph> <paragraph num="(5)"> <text>A youth camp subject to certification by the Maryland Department of Health;</text> </paragraph> <paragraph num="(6)"> <text>A facility subject to the certificate of need process under State law;</text> </paragraph> <paragraph num="(7)"> <text>A nonpublic residential school that is not approved to serve students with disabilities under COMAR 13A.05.02.12;</text> </paragraph> <paragraph num="(8)"> <text>A facility listed in Human Services Article, §9-226, Annotated Code of Maryland, or a residential facility operated by the Department of Juvenile Services; or</text> </paragraph> <paragraph num="(9)"> <text>A homeless shelter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Special Licensing and Monitoring Requirements.</text> <paragraph num="(1)"> <text>Special licensing and monitoring requirements that differ from or supplement the requirements of this chapter are applicable to the following:</text> <paragraph num="(a)"> <text>State-operated residential educational facilities;</text> </paragraph> <paragraph num="(b)"> <text>Secure care programs;</text> </paragraph> <paragraph num="(c)"> <text>Wilderness programs;</text> </paragraph> <paragraph num="(d)"> <text>Programs for medically fragile children;</text> </paragraph> <paragraph num="(e)"> <text>Programs for children with developmental disabilities;</text> </paragraph> <paragraph num="(f)"> <text>Shelter care programs;</text> </paragraph> <paragraph num="(g)"> <text>Programs for adolescent girls who are pregnant;</text> </paragraph> <paragraph num="(h)"> <text>Mother-baby programs;</text> </paragraph> <paragraph num="(i)"> <text>Therapeutic group homes;</text> </paragraph> <paragraph num="(j)"> <text>MDH Community Mental Health Programs/Residential Crisis Services; and</text> </paragraph> <paragraph num="(k)"> <text>MDH Community Mental Health Programs/Residential Respite Care Services.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Special licensing and monitoring requirements for the programs listed in §D(1) of this regulation appear in COMAR 14.31.07.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the definitions in COMAR 14.31.05 apply, and the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administration” means the licensing agency.</text> </paragraph> <paragraph num="(2)"> <text>“Behavior intervention plan” means a plan that is based on the functional behavioral assessment, designed to address challenging behaviors through the use of positive behavioral interventions, strategies, and supports, developed by a human services professional as defined in §B( 21) of this regulation, who has training and expertise in conducting a behavior functional assessment.</text> </paragraph> <paragraph num="(3)"> <text>“Behavioral consultation” means on-site observation, assessment, and evaluation of the child within the context of the child’s existing program. Behavioral consultation may include:</text> <paragraph num="(a)"> <text>Recommendations regarding structure of the program;</text> </paragraph> <paragraph num="(b)"> <text>Appropriate activities and services; or</text> </paragraph> <paragraph num="(c)"> <text>Consultation with human services professionals.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Behavioral health” means treatment of mental illness, emotional disorders, drug abuse, or alcohol abuse.</text> </paragraph> <paragraph num="(5)"> <text>“Behavioral respite” means relief services provided by a community-based residential program that meets a child’s behavioral needs.</text> </paragraph> <paragraph num="(6)"> <text>“Board” means the board of directors of a residential child care program responsible for the planning and oversight of the operation of the residential child care program.</text> </paragraph> <paragraph num="(7)"> <text>“Certified residential child and youth care practitioner” means an individual who is certified by the Maryland State Board for the Certification of Residential Child Care Program Professionals as defined in COMAR 10.57.01.02B(7).</text> </paragraph> <paragraph num="(8)"> <text>“Challenging behavior” means those behaviors exhibited by a child which are harmful, destructive, or socially unacceptable and necessitate being addressed in the child’s individual plan of care and behavior intervention plan.</text> </paragraph> <paragraph num="(9)"> <text>“Chemical restraint” means the use of medication that is not the current treatment for a child’s condition to control behavior or restrict the child’s movement.</text> </paragraph> <paragraph num="(10)"> <text>“Chief administrator” means the individual, regardless of title, who is appointed by the Board as having responsibility for the overall administration of the organization.</text> </paragraph> <paragraph num="(11)"> <text>“Chief financial officer” means the program executive with the primary responsibility for overseeing the financial activities of the program including financial planning, budget preparation, monitoring cash-flow, record keeping, and reporting to the Board.</text> </paragraph> <paragraph num="(12)"> <text>“Children's Cabinet” means those agencies directed by Executive Order 01.01.2006.03:</text> <paragraph num="(a)"> <text>To examine Maryland's system of services to children and their families; and</text> </paragraph> <paragraph num="(b)"> <text>To facilitate ongoing improvements to this service delivery system.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Contractual and temporary staff” in this chapter are those human services professionals and direct care staff who work at the residential child care program on a contractual or temporary basis or who are placed by a staffing organization with whom the licensee has a contract to perform those duties specified in the job description.</text> </paragraph> <paragraph num="(14)"> <text>“Cordless window covering” has the meaning stated in Family Law Article, §5-505, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“Custodial agency” means the agency having primary legal responsibility, which may result from an order of shelter, commitment, limited guardianship, full guardianship, or voluntary placement, time limited, for the child in placement, and may include a child with disabilities.</text> </paragraph> <paragraph num="(16)"> <text>Direct Care Staff.</text> <paragraph num="(a)"> <text>“Direct care staff” means staff assigned to perform direct responsibilities related to activities of daily living, self-help and socialization skills.</text> </paragraph> <paragraph num="(b)"> <text>“Direct care staff” does not include human services professionals, except when a human services professional is specifically assigned to perform the duties of direct care staff as specified in Regulation .06B(1) of this chapter.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Emergency placement” means residential services provided to a child who requires immediate placement in a residential child care program because the child is:</text> <paragraph num="(a)"> <text>Abandoned;</text> </paragraph> <paragraph num="(b)"> <text>At risk of serious immediate danger; or</text> </paragraph> <paragraph num="(c)"> <text>At risk for long-term, out-of-home placement without use of placement as a short-term intervention.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Family” has the meaning stated in Human Services Article, §8-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(19)"> <text>“Functional behavior assessment” means the systematic process of gathering information to guide the development of an effective and efficient behavior intervention plan for the problem behavior.</text> </paragraph> <paragraph num="(20)"> <text>“Group home” means a residential child care program, including:</text> <paragraph num="(a)"> <text>Shelter care, including:</text> <paragraph num="(i)"> <text>Emergency; or</text> </paragraph> <paragraph num="(ii)"> <text>Structured;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Mother-baby programs;</text> </paragraph> <paragraph num="(c)"> <text>Programs for adolescent girls who are pregnant;</text> </paragraph> <paragraph num="(d)"> <text>Psychiatric respite care;</text> </paragraph> <paragraph num="(e)"> <text>Secure care;</text> </paragraph> <paragraph num="(f)"> <text>Programs for children who are medically fragile;</text> </paragraph> <paragraph num="(g)"> <text>Programs for children with developmental disabilities;</text> </paragraph> <paragraph num="(h)"> <text>Residential crisis services;</text> </paragraph> <paragraph num="(i)"> <text>Residential respite care services;</text> </paragraph> <paragraph num="(j)"> <text>Wilderness programs; and</text> </paragraph> <paragraph num="(k)"> <text>Diagnostic evaluation treatment programs.</text> </paragraph> </paragraph> <paragraph num="(21)"> <text>“Human services professional” means:</text> <paragraph num="(a)"> <text>A social worker licensed under Health Occupations Article, Title 19, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>A psychologist licensed under Health Occupations Article, Title 18, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>A professional counselor certified under Health Occupations Article, Title 17, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(d)"> <text>A nurse licensed under Health Occupations Article, Title 8, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(e)"> <text>A psychiatrist licensed under Health Occupations Article, Title 14, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(f)"> <text>A guidance counselor certified under COMAR 13A.12.03.02 or a school psychologist certified under COMAR 13A.12.03.10;</text> </paragraph> <paragraph num="(g)"> <text>A certified counselor meeting the requirements under COMAR 10.58.07 to practice alcohol or drug counseling; or</text> </paragraph> <paragraph num="(h)"> <text>For programs serving children with developmental disabilities, an individual with a bachelor’s degree in a human services field who has a minimum of 1 year of full-time experience working directly with persons with developmental disabilities.</text> </paragraph> </paragraph> <paragraph num="(22)"> <text>“Individual plan of care” means an individualized written plan as detailed in Regulation .17C of this chapter.</text> </paragraph> <paragraph num="(23)"> <text>“Licensee” has the meaning stated in COMAR 14.31.05.03B(20).</text> </paragraph> <paragraph num="(24)"> <text>“Mechanical restraint” means any mechanical device that restricts the free movement of an individual.</text> </paragraph> <paragraph num="(25)"> <text>“Medication management” means the facilitation of the safe and effective use of prescription and over-the-counter medications. The management of medications encompasses the way medications are procured, delivered, prescribed, self-administered or staff-administered, documented, and monitored.</text> </paragraph> <paragraph num="(26)"> <text>“Office” means the Governor’s Office for Children.</text> </paragraph> <paragraph num="(27)"> <text>“Permanency plan” means a design for services articulated by the placing agency that specifies:</text> <paragraph num="(a)"> <text>Where and with whom a child shall live; and</text> </paragraph> <paragraph num="(b)"> <text>The proposed legal relationship between the child and the child's permanent caretaker.</text> </paragraph> </paragraph> <paragraph num="(28)"> <text>“Physical restraint” means the use of physical force, without the use of any device or material, to restrict the free movement of all or a portion of a child's body, not including:</text> <paragraph num="(a)"> <text>Briefly holding a child in order to calm or comfort the child;</text> </paragraph> <paragraph num="(b)"> <text>Holding the child by the hand or arm to escort the child safely from one area to another;</text> </paragraph> <paragraph num="(c)"> <text>Moving a disruptive child who is unwilling to leave the area when other methods such as counseling have been unsuccessful; or</text> </paragraph> <paragraph num="(d)"> <text>Breaking up a fight.</text> </paragraph> </paragraph> <paragraph num="(29)"> <text>“Policy” means a set of basic principles adopted by the Board used to enforce procedures and which are in accordance with the requirements for residential child care programs under this chapter.</text> </paragraph> <paragraph num="(30)"> <text>“Positive behavioral interventions, strategies, and supports” means a therapeutic intervention that uses a broad range of systemic and individualized strategies for enhancing positive social and emotional results while preventing or reducing challenging behaviors.</text> </paragraph> <paragraph num="(31)"> <text>“Procedure” means a detailed explanation of how policies will be implemented.</text> </paragraph> <paragraph num="(32)"> <text>“Program administrator” means the individual, regardless of title, certified under Health Occupations Article, Title 20, Annotated Code of Maryland, who is designated by the Board as having the day-to-day responsibility for the overall administration and operation of a program and for assuring the care, treatment, safety, and protection of children.</text> </paragraph> <paragraph num="(33)"> <text>“Prone restraint” means a specific type of restraint in which a child is placed face down on the floor or another surface and physical pressure is applied to the child’s body to keep the child in the prone position. Use of prone restraint is prohibited in Maryland.</text> </paragraph> <paragraph num="(34)"> <text>Protective or Stabilizing Device.</text> <paragraph num="(a)"> <text>“Protective or stabilizing device” means any device or material attached or adjacent to the child’s body for the purpose of enhancing functional skills, preventing unintentional harm to self or others, or ensuring safe positioning of an individual.</text> </paragraph> <paragraph num="(b)"> <text>“Protective or stabilizing device” is limited to:</text> <paragraph num="(i)"> <text>Adaptive equipment prescribed by a health professional, if used for the purpose for which the device is intended by the manufacturer;</text> </paragraph> <paragraph num="(ii)"> <text>Seat belts; or</text> </paragraph> <paragraph num="(iii)"> <text>Other safety equipment to secure children during transportation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(35)"> <text>“Residential child and youth care practitioner (RCYCP)” has the meaning stated in Health Occupations Article, Title 20, Annotated Code of Maryland. An RCYCP is direct care staff as defined in COMAR 14.31.06.04B(15).</text> </paragraph> <paragraph num="(36)"> <text>“Restraint” means a technique that is implemented to impede a child’s physical mobility or limit free access to the environment, including chemical, mechanical or physical restraints.</text> </paragraph> <paragraph num="(37)"> <text>“Seclusion” means the confinement of a child alone in a room from which the child is physically prevented from leaving. Use of seclusion is prohibited in residential child care programs in Maryland.</text> </paragraph> <paragraph num="(38)"> <text>“Self-administration of medication” has the meaning stated for “self-administer” in Education Article, §7-421(a)(4), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(39)"> <text>Severe Injury.</text> <paragraph num="(a)"> <text>“Severe injury” means a medical emergency that requires immediate assessment and intervention by a somatic health care provider.</text> </paragraph> <paragraph num="(b)"> <text>“Severe injury” includes, but is not limited to, fractures, dislocations, third-degree burns (destruction of tissue), electric shock, loss or tearing of body parts, all eye emergencies, ingestion of toxic substance or sharp or dangerous objects, and any injury with loss of consciousness or head injuries.</text> </paragraph> </paragraph> <paragraph num="(40)"> <text>“Somatic health care” means medical care that addresses an individual’s physical health care needs.</text> </paragraph> <paragraph num="(41)"> <text>“Structural barrier” means any inanimate object.</text> </paragraph> <paragraph num="(42)"> <text>“Time-out” means the removal of a child to a supervised area, which is unlocked and free of structural barriers that prevent egress for a limited period of time during which the child has an opportunity to regain self-control and is not participating in program activities.</text> </paragraph> <paragraph num="(43)"> <text>“Trauma-informed care” means a person-centered approach which includes assessment, prevention of re-traumatization, and development and implementation of a safe environment plan. It is a system that reduces the risk of exposure, is strengths-based and resilience-focused, promotes respect, and supports cultural and developmental factors.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Governance."> <paragraph num="A."> <text>Legal Status. The licensee shall be incorporated under applicable law and maintain documents which identify its incorporation and administrative structure and staffing, including lines of authority.</text> </paragraph> <paragraph num="B."> <text>Governance. The corporation shall have by-laws which describe the Board’s legal responsibility for and authority over the policies, finances, and all related activities for implementing the program in accordance with Human Services Article, §8-806. The Board shall:</text> <paragraph num="(1)"> <text>Ensure that the corporation does not discriminate on the basis of:</text> <paragraph num="(a)"> <text>Race;</text> </paragraph> <paragraph num="(b)"> <text>Color;</text> </paragraph> <paragraph num="(c)"> <text>National origin;</text> </paragraph> <paragraph num="(d)"> <text>Religion;</text> </paragraph> <paragraph num="(e)"> <text>Creed;</text> </paragraph> <paragraph num="(f)"> <text>Age;</text> </paragraph> <paragraph num="(g)"> <text>Sex;</text> </paragraph> <paragraph num="(h)"> <text>Sexual orientation;</text> </paragraph> <paragraph num="(i)"> <text>Marital status;</text> </paragraph> <paragraph num="(j)"> <text>Ancestry; or</text> </paragraph> <paragraph num="(k)"> <text>Physical or mental disability;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Screen and select the organization’s chief administrator in accordance with corporate policy;</text> </paragraph> <paragraph num="(3)"> <text>Define in writing the role of the chief administrator;</text> </paragraph> <paragraph num="(4)"> <text>Require the chief administrator, or appropriate designee authorized to act in the chief administrator's absence, to be accessible at all times to the agency staff and representatives of the Administration;</text> </paragraph> <paragraph num="(5)"> <text>Conduct an annual written evaluation of the chief administrator;</text> </paragraph> <paragraph num="(6)"> <text>Ensure that the program is housed, maintained, staffed, equipped, and funded to operate the programs effectively and solvently;</text> </paragraph> <paragraph num="(7)"> <text>Consult with the Administration and receive its approval before making a substantive change to the service program plan described in the current license application;</text> </paragraph> <paragraph num="(8)"> <text>Notify the Administration of any change of:</text> <paragraph num="(a)"> <text>The chief administrator within 48 hours; and</text> </paragraph> <paragraph num="(b)"> <text>Address or phone number of the program office at least 14 days before the change;</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>At least every 2 years, in consultation with the chief administrator, formulate, review, and revise as necessary the program’s written materials concerning:</text> <paragraph num="(a)"> <text>Current program and service policy, including short-term and long-term goals;</text> </paragraph> <paragraph num="(b)"> <text>Personnel practices and job descriptions;</text> </paragraph> <paragraph num="(c)"> <text>Fiscal management policy;</text> </paragraph> <paragraph num="(d)"> <text>The program evaluation report; and</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>Be responsible for:</text> <paragraph num="(a)"> <text>The fiscal soundness of the program operation and undertake the review and approval of the:</text> <paragraph num="(i)"> <text>Program’s annual budget;</text> </paragraph> <paragraph num="(ii)"> <text>Periodic accounting report; and</text> </paragraph> <paragraph num="(iii)"> <text>Annual audit or audit review completed by an independent certified public accountant; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maintaining the licensee’s continual compliance with the:</text> <paragraph num="(i)"> <text>Provisions of the corporation's charter;</text> </paragraph> <paragraph num="(ii)"> <text>Terms of all leases, contracts, or legal agreements to which the licensee is a party; and</text> </paragraph> <paragraph num="(iii)"> <text>Relevant federal, State, and local laws and regulations governing the operation of the licensee.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Advisory Board.</text> <paragraph num="(1)"> <text>If a licensee is an out-of-State corporation, it shall have an advisory board consisting of at least 3 Maryland residents, at least one of whom shall be a member of the board of directors.</text> </paragraph> <paragraph num="(2)"> <text>The advisory board shall:</text> <paragraph num="(a)"> <text>Meet at least quarterly;</text> </paragraph> <paragraph num="(b)"> <text>Provide input to the licensee regarding the operation of the program and compliance with these regulations;</text> </paragraph> <paragraph num="(c)"> <text>Assist the licensee with its relations with the surrounding community;</text> </paragraph> <paragraph num="(d)"> <text>Meet the requirements of §D(2) and (3) of this regulation; and</text> </paragraph> <paragraph num="(e)"> <text>Perform such other duties as the licensee shall request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Composition and Organization of the Board.</text> <paragraph num="(1)"> <text>The Board shall:</text> <paragraph num="(a)"> <text>Be structured with a president or chair elected from the Board membership who presides at meetings to enable the Board to discharge its responsibilities;</text> </paragraph> <paragraph num="(b)"> <text>Adopt bylaws for its operation;</text> </paragraph> <paragraph num="(c)"> <text>Maintain written minutes of and records of attendance at all its meetings;</text> </paragraph> <paragraph num="(d)"> <text>Ensure that a quorum of its members meet at least quarterly;</text> </paragraph> <paragraph num="(e)"> <text>Include at least five members:</text> <paragraph num="(i)"> <text>At least one of whom is a Maryland resident;</text> </paragraph> <paragraph num="(ii)"> <text>At least one of whom shall have demonstrated experience in or knowledge of the human services field; and</text> </paragraph> <paragraph num="(iii)"> <text>At least one of whom shall have demonstrated knowledge in the field of accounting, business, or financial management;</text> </paragraph> </paragraph> <paragraph num="(f)"> <text>Maintain a list of its membership with each member's:</text> <paragraph num="(i)"> <text>Phone number;</text> </paragraph> <paragraph num="(ii)"> <text>Address; and</text> </paragraph> <paragraph num="(iii)"> <text>Term of membership; and</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Have a plan for periodic change of the Board's composition.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An individual who has been convicted of, or who has entered a plea of guilty or nolo contendere to, a charge of child abuse or neglect or contributing to the delinquency of a minor may not be or become a member of the Board or of an advisory board of the corporation or program.</text> </paragraph> <paragraph num="(3)"> <text>An employee of the corporation or program or an immediate family member of an employee of the corporation or the program may not be a voting member of the Board.</text> </paragraph> <paragraph num="(4)"> <text>An individual who is compensated for providing goods or services to the corporation or program may not be a member of the Board.</text> </paragraph> <paragraph num="(5)"> <text>No member of the Board may be a staff person employed by:</text> <paragraph num="(a)"> <text>The Governor’s Office for Children;</text> </paragraph> <paragraph num="(b)"> <text>A licensing agency;</text> </paragraph> <paragraph num="(c)"> <text>Local departments of social services;</text> </paragraph> <paragraph num="(d)"> <text>A placement agency;</text> </paragraph> <paragraph num="(e)"> <text>The State Department of Education; or</text> </paragraph> <paragraph num="(f)"> <text>Any governmental organization which regulates or purchases from the program.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Each member of the Board shall complete a training course on the duties and responsibilities of Board members that is offered by the State or approved by the Office within 3 months of appointment to the Board.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Chief Financial Officer.</text> <paragraph num="(1)"> <text>The Board shall have a chief financial officer for the corporation.</text> </paragraph> <paragraph num="(2)"> <text>The chief financial officer shall provide a report at least quarterly to the Board on the financial condition of the corporation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Personnel Administration."> <paragraph num="A."> <text>Personnel Policies.</text> <paragraph num="(1)"> <text>The board of directors shall:</text> <paragraph num="(a)"> <text>Adopt and adhere to written personnel policies; and</text> </paragraph> <paragraph num="(b)"> <text>Review the policies at least every 2 years.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The written policies shall include the following provisions:</text> <paragraph num="(a)"> <text>Annual performance evaluation;</text> </paragraph> <paragraph num="(b)"> <text>Communicable diseases;</text> </paragraph> <paragraph num="(c)"> <text>Confidentiality of records;</text> </paragraph> <paragraph num="(d)"> <text>Description of job responsibilities;</text> </paragraph> <paragraph num="(e)"> <text>Drug and alcohol free workplace;</text> </paragraph> <paragraph num="(f)"> <text>Employee discipline, suspension, and dismissal;</text> </paragraph> <paragraph num="(g)"> <text>Employee supervision;</text> </paragraph> <paragraph num="(h)"> <text>Grievance procedures for employees;</text> </paragraph> <paragraph num="(i)"> <text>Hiring and recruitment of qualified staff;</text> </paragraph> <paragraph num="(j)"> <text>Hours of work;</text> </paragraph> <paragraph num="(k)"> <text>Organizational chart;</text> </paragraph> <paragraph num="(l)"> <text>Orientation and on-going training requirements;</text> </paragraph> <paragraph num="(m)"> <text>Salary and benefits package;</text> </paragraph> <paragraph num="(n)"> <text>Vacation and other leave allowances;</text> </paragraph> <paragraph num="(o)"> <text>A prohibition against the employment of any person whose physical or emotional health, notwithstanding any accommodations required by law, would impair that person's ability to protect the health, welfare, and safety of the program's residents; and</text> </paragraph> <paragraph num="(p)"> <text>A prohibition against employment discrimination based on race, color, national origin, religion, creed, age, sex, sexual orientation, marital status, ancestry, or physical or mental disability.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The licensee shall document that all employees have received a copy of the program's personnel policies.</text> </paragraph> <paragraph num="(4)"> <text>A licensee may not appoint as an employee, a member of the board of directors, or a volunteer with unsupervised access to children any individual who:</text> <paragraph num="(a)"> <text>Refuses to submit to:</text> <paragraph num="(i)"> <text>A criminal background check in accordance with State law, including Family Law Article, §§5-560—5-568, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>A Child Protective Services clearance;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Has an indicated child abuse or neglect finding; or</text> </paragraph> <paragraph num="(c)"> <text>Has a conviction for:</text> <paragraph num="(i)"> <text>Child abuse or neglect;</text> </paragraph> <paragraph num="(ii)"> <text>Spousal abuse;</text> </paragraph> <paragraph num="(iii)"> <text>Rape;</text> </paragraph> <paragraph num="(iv)"> <text>Sexual assault;</text> </paragraph> <paragraph num="(v)"> <text>Homicide; or</text> </paragraph> <paragraph num="(vi)"> <text>Any crime against children;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Has a conviction within 5 years of applying for a job with the program for assault or a drug-related offense; or</text> </paragraph> <paragraph num="(e)"> <text>Has conviction within 5 years for a violation of the Courts and Judicial Proceedings Article, §3-838 or 3-8A-30, Annotated Code of Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The licensee shall refrain from hiring practices that may result in conflicts of interest, including the concurrent employment of staff persons employed by:</text> <paragraph num="(1)"> <text>A licensing agency;</text> </paragraph> <paragraph num="(2)"> <text>Local departments of social services;</text> </paragraph> <paragraph num="(3)"> <text>A placing agency; or</text> </paragraph> <paragraph num="(4)"> <text>The State Department of Education.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The licensee shall establish and post a code of conduct that:</text> <paragraph num="(1)"> <text>Bans sexual harassment or other discrimination against staff and residents; and</text> </paragraph> <paragraph num="(2)"> <text>Requires that staff conduct themselves in a manner appropriate to serve the needs of program residents.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The licensee shall:</text> <paragraph num="(1)"> <text>Have written job descriptions for all positions;</text> </paragraph> <paragraph num="(2)"> <text>Document that all employees meet or exceed the minimum qualifications for their positions;</text> </paragraph> <paragraph num="(3)"> <text>Assure that all employees have effective communication skills appropriate to their positions;</text> </paragraph> <paragraph num="(4)"> <text>Maintain adequate staff coverage at all times based on the time of day, the size and nature of the program, and layout of the physical plant;</text> </paragraph> <paragraph num="(5)"> <text>Ensure that, when the program administrator is unavailable, that the program administrator appoints a qualified staff member to whom on-site authority is delegated;</text> </paragraph> <paragraph num="(6)"> <text>Have sufficient staff to carry out the licensee's administrative, business, clerical, dietary, housekeeping, maintenance, secretarial, and supervisory functions; and</text> </paragraph> <paragraph num="(7)"> <text>Ensure that requests for a criminal background check in accordance with COMAR 12.15.02 and Child Protective Services clearances have been submitted for each prospective employee before the employee begins work at the program.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Personnel Record. The licensee shall:</text> <paragraph num="(1)"> <text>Maintain for each staff member a personnel record that contains:</text> <paragraph num="(a)"> <text>An employment application or resume showing qualifications and experience;</text> </paragraph> <paragraph num="(b)"> <text>At least three references documented either by letter or notation of verbal contact indicating:</text> <paragraph num="(i)"> <text>The date the contact was made;</text> </paragraph> <paragraph num="(ii)"> <text>The individual making the contact;</text> </paragraph> <paragraph num="(iii)"> <text>The individual contacted; and</text> </paragraph> <paragraph num="(iv)"> <text>The reference content;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A written statement of medical examination by a licensed physician, made at the time of the staff member's employment, certifying that the physician has examined the staff member and found nothing in the individual's general, physical, or emotional condition that would endanger the health and well being of children;</text> </paragraph> <paragraph num="(d)"> <text>A screening for tuberculosis every 2 years administered by the Mantoux method or current Centers for Disease Control and Prevention standard with an analysis of results or, for those staff members whose results were positive, an annual medical certification that the staff member presents no symptoms of active tuberculosis;</text> </paragraph> <paragraph num="(e)"> <text>Documentation of a criminal background check request made in accordance with State law, including COMAR 12.15.02, and a copy of the initial outcome and any periodic updates;</text> </paragraph> <paragraph num="(f)"> <text>Documentation of a request for Child Protective Services check and a copy of the outcome;</text> </paragraph> <paragraph num="(g)"> <text>A completed federal “Employment Eligibility Verification” form (I-9);</text> </paragraph> <paragraph num="(h)"> <text>A copy of current applicable professional credentials;</text> </paragraph> <paragraph num="(i)"> <text>A copy of current cardiopulmonary resuscitation certification for all child care staff;</text> </paragraph> <paragraph num="(j)"> <text>Annual performance evaluations;</text> </paragraph> <paragraph num="(k)"> <text>Documentation of personnel actions, such as disciplinary and commendation reports relating to the individual's employment with the program;</text> </paragraph> <paragraph num="(l)"> <text>For a staff member who drives a motor vehicle to transport children:</text> <paragraph num="(i)"> <text>A copy of the staff member's current driver's license; and</text> </paragraph> <paragraph num="(ii)"> <text>An official copy of the staff member's driving record updated every 2 years;</text> </paragraph> </paragraph> <paragraph num="(m)"> <text>Documentation that the staff member has received and read the policies described in Regulations .14 and .15 of this chapter related to the reporting of suspected child abuse and neglect and discipline and control of children; and</text> </paragraph> <paragraph num="(n)"> <text>Documentation that the staff member has received the employee training required under §F of this regulation;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Grant a staff member reasonable access to the staff member's own personnel record; and</text> </paragraph> <paragraph num="(3)"> <text>Maintain the personnel file of each employee for a period of 5 years after the employee leaves the employment of the licensee.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Training of Child Care Workers.</text> <paragraph num="(1)"> <text>Each employee who provides direct care to children shall receive a minimum of 40 hours of initial and annual training.</text> </paragraph> <paragraph num="(2)"> <text>The program administrator shall designate an employee to accompany new direct care employees on initial tours of duty until the employee's supervisor determines that the new employee:</text> <paragraph num="(a)"> <text>Is able to effectively safeguard the health and safety of the children; and</text> </paragraph> <paragraph num="(b)"> <text>Has completed the requirements of §F(3)(a)—(f) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The training of employees who may provide direct care to children shall include:</text> <paragraph num="(a)"> <text>Emergency preparedness and general safety practices;</text> </paragraph> <paragraph num="(b)"> <text>Cardiopulmonary resuscitation leading to certification;</text> </paragraph> <paragraph num="(c)"> <text>Annual first-aid training either through completion of:</text> <paragraph num="(i)"> <text>American Red Cross standard first-aid course which is valid for the period of time recognized by the American Red Cross; or</text> </paragraph> <paragraph num="(ii)"> <text>First-aid training by a certified or otherwise qualified instructor;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Child abuse and neglect identification and reporting, including training in accordance with any curriculum provided by the licensing agency regarding specific aspects of child abuse and neglect prevention and reporting in residential programs;</text> </paragraph> <paragraph num="(e)"> <text>Suicide risk assessment and prevention;</text> </paragraph> <paragraph num="(f)"> <text>Approved forms of discipline and behavior management techniques including crisis management and the use of isolation and restraints;</text> </paragraph> <paragraph num="(g)"> <text>Medication management;</text> </paragraph> <paragraph num="(h)"> <text>Infection control and Maryland Occupational Safety and Health Bloodborne Pathogen Standards;</text> </paragraph> <paragraph num="(i)"> <text>Parenting issues, collaboration with families, and supporting children and families in making choices;</text> </paragraph> <paragraph num="(j)"> <text>Psychosocial and emotional needs of the children, family relationships, and the impact of separation;</text> </paragraph> <paragraph num="(k)"> <text>Special needs of the population served;</text> </paragraph> <paragraph num="(l)"> <text>Child development;</text> </paragraph> <paragraph num="(m)"> <text>The role of the child care employee;</text> </paragraph> <paragraph num="(n)"> <text>Food preparation, food service, and nutrition, if the employee is involved in preparing meals for residents; and</text> </paragraph> <paragraph num="(o)"> <text>Communication skills.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Staff training shall utilize any relevant curriculum approved by the licensing agency.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Employee Evaluation. The licensee shall:</text> <paragraph num="(1)"> <text>Evaluate each employee at least once a year; and</text> </paragraph> <paragraph num="(2)"> <text>Document each evaluation with the signature and date of the signature of the employee and the employee's immediate supervisor.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Staffing Plan. The licensee shall:</text> <paragraph num="(1)"> <text>Analyze:</text> <paragraph num="(a)"> <text>The number of children the licensee intends to serve;</text> </paragraph> <paragraph num="(b)"> <text>The needs of each of the children to be served; and</text> </paragraph> <paragraph num="(c)"> <text>The needs of the program based on the size and layout of the physical plant;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Develop and implement a staffing plan that:</text> <paragraph num="(a)"> <text>Addresses the health and safety needs of each child;</text> </paragraph> <paragraph num="(b)"> <text>Provides each child with the services identified in the child's individual service plan;</text> </paragraph> <paragraph num="(c)"> <text>Provides for the treatment, recreation, education, and social development of children in placement; and</text> </paragraph> <paragraph num="(d)"> <text>Addresses the management of staffing needs, including:</text> <paragraph num="(i)"> <text>Maximum work hours;</text> </paragraph> <paragraph num="(ii)"> <text>Deployment of personnel; and</text> </paragraph> <paragraph num="(iii)"> <text>Emergency staffing.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Employee Duties and Qualifications."> <paragraph num="A."> <text>Program Administrator.</text> <paragraph num="(1)"> <text>The Board shall employ a certified program administrator responsible for:</text> <paragraph num="(a)"> <text>Overall administration of the program;</text> </paragraph> <paragraph num="(b)"> <text>Implementation of all policies;</text> </paragraph> <paragraph num="(c)"> <text>Maintenance of the physical plant; and</text> </paragraph> <paragraph num="(d)"> <text>Fiscal accountability.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The program administrator shall be certified as required by Health Occupations Article, Title 20, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>The Board may appoint a noncertified individual to serve in the capacity of acting program administrator in accordance with Health Occupations Article, Title 20, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Direct Care Staff.</text> <paragraph num="(1)"> <text>The licensee shall employ direct child care staff to:</text> <paragraph num="(a)"> <text>Assist the children in meeting the goals and objectives of their individual plans of care;</text> </paragraph> <paragraph num="(b)"> <text>Guide and supervise the children in accordance with the Residents’ Bill of Rights in Human Services Article, §8-707, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Manage the children’s behavior;</text> </paragraph> <paragraph num="(d)"> <text>Promote the physical and emotional well-being of the children; and</text> </paragraph> <paragraph num="(e)"> <text>Facilitate the attainment of independent living skills based on the needs of the child.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Direct care staff shall be 21 years old or older and have a high school diploma or its equivalent.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Human Service Professionals. The licensee shall employ human service professionals appropriate to the needs of the child and the nature of the program to perform functions in accordance with Regulation .17 of this chapter, including:</text> <paragraph num="(1)"> <text>Developing, reviewing, and signing each individual plan of care;</text> </paragraph> <paragraph num="(2)"> <text>Consulting with and training employees regarding implementation of each individual plan of care;</text> </paragraph> <paragraph num="(3)"> <text>Developing, reviewing, and signing each individual plan of care and discharge plan;</text> </paragraph> <paragraph num="(4)"> <text>Participating in the admission process;</text> </paragraph> <paragraph num="(5)"> <text>Providing counseling services to the children directly or through community resources; and</text> </paragraph> <paragraph num="(6)"> <text>Serving as a liaison to the children’s parents or legal guardian, schools, juvenile court, and other social and community services.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Other Professional Service Providers. The licensee shall:</text> <paragraph num="(1)"> <text>Obtain any other professional services, including consultation required for the implementation of individual plans of care, that are not available from its employees;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that the professionals are qualified, certified, or licensed appropriately for the nature of the service; and</text> </paragraph> <paragraph num="(3)"> <text>Obtain the signature of the professional in agreement to comply with the licensee’s confidentiality policy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Volunteers or Student Interns. If volunteers or student interns are used, the licensee shall:</text> <paragraph num="(1)"> <text>Adhere to a written plan for the participation of volunteers or student interns;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that volunteers and student interns who have direct contact with the children and who perform the duties of an RCYCP:</text> <paragraph num="(a)"> <text>Are supervised and evaluated by appropriate staff;</text> </paragraph> <paragraph num="(b)"> <text>Are not used to replace a required staff position;</text> </paragraph> <paragraph num="(c)"> <text>Have references verified by the licensee;</text> </paragraph> <paragraph num="(d)"> <text>Are oriented and trained in:</text> <paragraph num="(i)"> <text>The philosophy of the program;</text> </paragraph> <paragraph num="(ii)"> <text>The needs and rights of the children; and</text> </paragraph> <paragraph num="(iii)"> <text>The methods of meeting those needs;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>As appropriate, are aware of or have input into the children’s individual plans of care;</text> </paragraph> <paragraph num="(f)"> <text>Annually are screened for tuberculosis by the Mantoux method or the current Centers for Disease Control and Prevention standard and analysis of results or, for a volunteer or student intern whose screening results were positive, provide an annual medical certification that the individual presents no symptoms of active tuberculosis;</text> </paragraph> <paragraph num="(g)"> <text>Are not permitted to have unsupervised access to children until the licensee has:</text> <paragraph num="(i)"> <text>Received the results of a criminal background check;</text> </paragraph> <paragraph num="(ii)"> <text>Received the results of a child protective services check;</text> </paragraph> <paragraph num="(iii)"> <text>Resubmitted an application for a child protective services check every 2 years from the date of commencement of the provisions of services; and</text> </paragraph> <paragraph num="(iv)"> <text>Completed the training required in Regulation .05E of this chapter; and</text> </paragraph> </paragraph> <paragraph num="(h)"> <text>Provide the licensee a copy of applicable professional credentials.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Physical Plant."> <paragraph num="A."> <text>General Requirements. The licensee shall:</text> <paragraph num="(1)"> <text>Comply with federal, State, and local building, fire, and health codes and laws, and all applicable local zoning laws;</text> </paragraph> <paragraph num="(2)"> <text>Use a physical plant that is constructed and equipped in a manner consistent with the needs of the children, staff, and visitors and that is constructed and maintained reasonably to protect and to ensure the safety of all staff and residents;</text> </paragraph> <paragraph num="(3)"> <text>Ensure compliance by submitting annually to the licensing agency:</text> <paragraph num="(a)"> <text>Reports of all annual fire and health inspections conducted by the local jurisdiction; or</text> </paragraph> <paragraph num="(b)"> <text>If the local jurisdiction does not conduct annual fire or health inspections annually, written documentation shall be obtained annually from the appropriate public agencies that inspections are not required;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Maintain evidence and provide documentation upon request that the physical plant had been tested for and found to be free of hazards from lead paint, asbestos, and radon;</text> </paragraph> <paragraph num="(5)"> <text>Ensure that all facilities maintain at least one working fire extinguisher;</text> </paragraph> <paragraph num="(6)"> <text>If there is evidence of insect or rodent infestation provide documentation of:</text> <paragraph num="(a)"> <text>An inspection; and</text> </paragraph> <paragraph num="(b)"> <text>Insect or rodent treatment, if necessary; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Install telephone service and equipment that is:</text> <paragraph num="(a)"> <text>Not solely provided through the use of cellular phone service;</text> </paragraph> <paragraph num="(b)"> <text>Accessible and usable by staff and residents;</text> </paragraph> <paragraph num="(c)"> <text>In all buildings used by the children.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>License. The licensee shall prominently display the authentic current residential child care program license on site:</text> <paragraph num="(1)"> <text>In the building bearing the address listed on the license;</text> </paragraph> <paragraph num="(2)"> <text>In an area of the building open and easily accessible to visitors; and</text> </paragraph> <paragraph num="(3)"> <text>In accordance with the requirements of the licensing agency.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Building, Grounds, and Equipment. The licensee shall:</text> <paragraph num="(1)"> <text>Maintain all structures and grounds free from health and safety hazards;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that all outside and kitchen trash containers are covered;</text> </paragraph> <paragraph num="(3)"> <text>Remove all trash at least once a week or more frequently as needed;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that all infectious waste is stored in biohazard waste containers and removed on a regular basis; and</text> </paragraph> <paragraph num="(5)"> <text>Locate, install, and safely maintain appropriate playground or other recreational equipment.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Counseling and Administrative Space. The licensee shall maintain a designated space separate from the children’s living area:</text> <paragraph num="(1)"> <text>For private discussions and counseling; and</text> </paragraph> <paragraph num="(2)"> <text>For administrative purposes.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Living Areas. The licensee shall ensure that each building that houses children:</text> <paragraph num="(1)"> <text>Has adequate space for informal and recreational use by the children;</text> </paragraph> <paragraph num="(2)"> <text>Is not used as a primary residence for any individual other than children placed in the program;</text> </paragraph> <paragraph num="(3)"> <text>Is a smoke and pollutant free environment;</text> </paragraph> <paragraph num="(4)"> <text>Has walls that are:</text> <paragraph num="(a)"> <text>Regularly cleaned and painted; and</text> </paragraph> <paragraph num="(b)"> <text>Kept free of perforations, cracks, or punctures; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Is maintained in a clean and orderly manner.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Sleeping Accommodations.</text> <paragraph num="(1)"> <text>The licensee shall ensure that bedrooms occupied by ambulatory children measure at least:</text> <paragraph num="(a)"> <text>80 square feet of usable floor space in single occupancy bedrooms; or</text> </paragraph> <paragraph num="(b)"> <text>60 square feet of usable floor space per child in multiple occupancy bedrooms.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee shall ensure that bedrooms occupied by non-ambulatory children measure at least:</text> <paragraph num="(a)"> <text>120 square feet of usable floor space in single occupancy bedrooms; or</text> </paragraph> <paragraph num="(b)"> <text>100 square feet of usable floor space per child with at least 3 feet between beds in multiple occupancy bedrooms.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A licensee shall:</text> <paragraph num="(a)"> <text>Supply individual beds that are:</text> <paragraph num="(i)"> <text>Adequate in size to accommodate the height and weight of the child; and</text> </paragraph> <paragraph num="(ii)"> <text>Solidly constructed and consisting of a clean, comfortable, nontoxic, and fire-retardant mattress capable of being disinfected;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Maintain separate sleeping rooms for boys and girls who are 2 years old or older;</text> </paragraph> <paragraph num="(c)"> <text>Allow no more than four children to sleep in a bedroom;</text> </paragraph> <paragraph num="(d)"> <text>Ensure that the mattress of any bed in use is far enough away from the ceiling to allow the occupant to sit up in bed;</text> </paragraph> <paragraph num="(e)"> <text>Change all bed linens at least once a week and whenever soiled;</text> </paragraph> <paragraph num="(f)"> <text>Provide waterproof mattress protection for children who are enuretic;</text> </paragraph> <paragraph num="(g)"> <text>Disinfect mattresses after use by another child;</text> </paragraph> <paragraph num="(h)"> <text>Provide the children with a personal bureau or locker for clothing and personal belongings and a designated space for hanging clothing;</text> </paragraph> <paragraph num="(i)"> <text>Allow the children to have some discretion in the decoration of sleeping areas;</text> </paragraph> <paragraph num="(j)"> <text>Assure that all living areas are kept orderly and clean; and</text> </paragraph> <paragraph num="(k)"> <text>Provide a source of natural lighting.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>For children who sleep in beds, the licensee shall:</text> <paragraph num="(a)"> <text>Provide a pillow, two sheets, and sufficient covering for comfort;</text> </paragraph> <paragraph num="(b)"> <text>Prohibit the use of cots, bunk beds, loft beds, or sleep sofas as beds; and</text> </paragraph> <paragraph num="(c)"> <text>Ensure that only the child assigned to a bed sleeps in it.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>For infants and other children who require a crib, the licensee shall:</text> <paragraph num="(a)"> <text>Shall provide an age appropriate sized crib for each infant or child in care;</text> </paragraph> <paragraph num="(b)"> <text>May not allow an infant to sleep in a playpen or on a mat at any time; and</text> </paragraph> <paragraph num="(c)"> <text>Shall ensure that:</text> <paragraph num="(i)"> <text>Only the infant assigned to a crib sleeps in it;</text> </paragraph> <paragraph num="(ii)"> <text>All cribs and playpens meet industry standards;</text> </paragraph> <paragraph num="(iii)"> <text>Mattresses used in cribs and playpens fit snugly;</text> </paragraph> <paragraph num="(iv)"> <text>Each infant has sheets, blankets, and other coverings for the infant's exclusive use;</text> </paragraph> <paragraph num="(v)"> <text>Wet, soiled or damaged sheets, mattresses, blankets, or other coverings are immediately replaced;</text> </paragraph> <paragraph num="(vi)"> <text>All sheets and blankets are laundered at least once a week, or, if soiled, are laundered before next use; and</text> </paragraph> <paragraph num="(vii)"> <text>Cribs and playpens are free of hazards.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Bathrooms. The licensee shall:</text> <paragraph num="(1)"> <text>Keep bathrooms in good operating order and maintain sanitary conditions;</text> </paragraph> <paragraph num="(2)"> <text>For every five children, provide at least:</text> <paragraph num="(a)"> <text>One sink with hot and cold water;</text> </paragraph> <paragraph num="(b)"> <text>One bath or shower with hot and cold water; and</text> </paragraph> <paragraph num="(c)"> <text>One flush toilet;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Unless the children require assistance, provide toilets and baths or showers that allow for individual privacy;</text> </paragraph> <paragraph num="(4)"> <text>Equip tubs and showers with slip-proof surfaces;</text> </paragraph> <paragraph num="(5)"> <text>Secure mirrors to the walls at heights appropriate for use by the children; and</text> </paragraph> <paragraph num="(6)"> <text>Unless otherwise specified in the child’s individual plan of care, make available 24 hours a day, without children needing to request them, personal hygiene supplies, including but not limited to, toilet paper, soap, shampoo, toothbrushes, towels and washcloths; and</text> </paragraph> <paragraph num="(7)"> <text>Equip bathrooms with adaptive equipment based on the needs of the children served.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Kitchens and Dining Areas. The licensee shall:</text> <paragraph num="(1)"> <text>Have equipment and space for meal preparation, storage, serving, eating, and clean-up of meals;</text> </paragraph> <paragraph num="(2)"> <text>Maintain all equipment in clean, safe working order, and ensure that equipment meets all applicable health and safety standards;</text> </paragraph> <paragraph num="(3)"> <text>Unless the licensee documents that disposable dinnerware is necessary to protect the health or safety of the children, refrain from using disposable dinnerware on a daily basis;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that all dishes, cups, and glasses used by the children are:</text> <paragraph num="(a)"> <text>Free from chips, cracks, or other defects; and</text> </paragraph> <paragraph num="(b)"> <text>Properly cleaned between each meal; and</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Unless otherwise specified in the child’s individual plan of care, ensure that children have access to unlocked food storage areas containing approved between-meal snacks.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Furnishings. The licensee shall supply clean, comfortable furniture in good repair.</text> </paragraph> <paragraph num="J."> <text>Doorways, Windows, and Window Coverings. The licensee shall supply:</text> <paragraph num="(1)"> <text>Doors that can be opened from the inside and the outside for all bedrooms and bathrooms;</text> </paragraph> <paragraph num="(2)"> <text>Screens that are in good repair and removable in emergencies on all exterior windows that can be opened and exterior doors that may be left open;</text> </paragraph> <paragraph num="(3)"> <text>Window coverings that will ensure privacy;</text> </paragraph> <paragraph num="(4)"> <text>All window coverings, which shall have no draw cord capable of forming a loop greater than 7.25 inches;</text> </paragraph> <paragraph num="(5)"> <text>All new and replacement window coverings, which shall be cordless window coverings; and</text> </paragraph> <paragraph num="(6)"> <text>For each door or window in high-risk areas, such as recreation rooms and stairwells, shatter-resistant material or safety glass.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Electrical Systems. The licensee shall ensure that the physical plant has:</text> <paragraph num="(1)"> <text>Electrical equipment, wiring, switches, sockets, and outlets which are maintained in compliance with local and State building codes;</text> </paragraph> <paragraph num="(2)"> <text>Sufficient illumination in rooms, corridors, and stairwells to permit safe usage; and</text> </paragraph> <paragraph num="(3)"> <text>Lighting of exterior areas during the night.</text> </paragraph> </paragraph> <paragraph num="L."> <text>Climate Control. The licensee shall:</text> <paragraph num="(1)"> <text>Provide heating and cooling systems which meet all applicable codes;</text> </paragraph> <paragraph num="(2)"> <text>Ensure heating systems that exceed 120°F that are accessible to residents are equipped with protective materials to prevent residents from coming in contact with the heat source;</text> </paragraph> <paragraph num="(3)"> <text>Maintain an air temperature of at least 68°F in the living areas and sleeping quarters of the physical plant; and</text> </paragraph> <paragraph num="(4)"> <text>Prohibit the use of kerosene or open coil heaters.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Ventilation. In accordance with all local building codes, the licensee shall supply ventilation for each room used by the children through:</text> <paragraph num="(1)"> <text>A window that can be opened;</text> </paragraph> <paragraph num="(2)"> <text>An exhaust fan; or</text> </paragraph> <paragraph num="(3)"> <text>An air conditioning system.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Water. The licensee shall:</text> <paragraph num="(1)"> <text>Provide a continuous supply of potable hot and cold running water;</text> </paragraph> <paragraph num="(2)"> <text>Equip the physical plant with a sanitary potable water distribution system;</text> </paragraph> <paragraph num="(3)"> <text>Ensure that hot water accessible to the children is regulated to a temperature of 110°F or lower; and</text> </paragraph> <paragraph num="(4)"> <text>If water from any source other than a public water supply is used:</text> <paragraph num="(a)"> <text>Annually obtain a water test conducted by the appropriate State or local authority in accordance with State or local law; and</text> </paragraph> <paragraph num="(b)"> <text>Keep on file the most recent test report.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Emergencies and General Safety."> <paragraph num="A."> <text>Emergencies.</text> <paragraph num="(1)"> <text>The licensee shall:</text> <paragraph num="(a)"> <text>Hold emergency drills:</text> <paragraph num="(i)"> <text>At least monthly;</text> </paragraph> <paragraph num="(ii)"> <text>On each shift, at least quarterly;</text> </paragraph> <paragraph num="(iii)"> <text>At unexpected times and under varying conditions; and</text> </paragraph> <paragraph num="(iv)"> <text>Maintain documentation of drills for 3 years;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Post adjacent to all telephones a list of emergency telephone numbers for:</text> <paragraph num="(i)"> <text>Ambulance;</text> </paragraph> <paragraph num="(ii)"> <text>Fire;</text> </paragraph> <paragraph num="(iii)"> <text>Police;</text> </paragraph> <paragraph num="(iv)"> <text>Poison control; and</text> </paragraph> <paragraph num="(v)"> <text>Program administrator;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Post accessible copies of the evacuation procedure in conspicuous places on each floor of the physical plant; and</text> </paragraph> <paragraph num="(d)"> <text>Keep exits free of obstruction or impediments to immediate use.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee shall develop an emergency plan for foreseeable emergencies and disasters that shall include:</text> <paragraph num="(a)"> <text>Procedures that will be followed before, during, and after an emergency to address the following:</text> <paragraph num="(i)"> <text>Ensuring that documentation regarding children and staff contains current health, contact persons, and other important information that is immediately accessible in the event of an evacuation;</text> </paragraph> <paragraph num="(ii)"> <text>Establishing a communication protocol among all appropriate parties that includes redundant communication means; and</text> </paragraph> <paragraph num="(iii)"> <text>The notification to parent or legal guardian, licensing agency, and placing agency regarding the action that will be taken concerning the safety and well-being of the children served;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The evacuation, transportation, and 72-hour shelter-in-place of children and staff served;</text> </paragraph> <paragraph num="(c)"> <text>The staff coverage, organization, and assignment of responsibilities that include:</text> <paragraph num="(i)"> <text>Staff coverage needs for ongoing shelter-in-place or evacuations;</text> </paragraph> <paragraph num="(ii)"> <text>Identification of staff members available to report for or remain at work for extended periods; and</text> </paragraph> <paragraph num="(iii)"> <text>Establishment of staff notification and recall contingency plans and procedures;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The continuity of services, including:</text> <paragraph num="(i)"> <text>Operations, planning, and financial and logistical arrangements;</text> </paragraph> <paragraph num="(ii)"> <text>Procurement of essential goods, equipment, and services to sustain operations for at least 72 hours;</text> </paragraph> <paragraph num="(iii)"> <text>Relocation to alternate facilities or other locations; and</text> </paragraph> <paragraph num="(iv)"> <text>Reasonable efforts to continue care;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Provisions to ensure that the facility’s emergency and disaster plans are shared with local emergency management organizations;</text> </paragraph> <paragraph num="(f)"> <text>An executive summary of the evacuation procedures that shall be provided, on request, to the family member of a child; and</text> </paragraph> <paragraph num="(g)"> <text>Provisions to ensure that all staff and volunteers are aware of the procedures required by this chapter and that all staff and volunteers implement each procedure as adopted.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>General Safety. The licensee shall:</text> <paragraph num="(1)"> <text>Maintain a written active safety plan;</text> </paragraph> <paragraph num="(2)"> <text>Document accidents;</text> </paragraph> <paragraph num="(3)"> <text>Maintain first-aid kits appropriate in size and content to the nature of the program;</text> </paragraph> <paragraph num="(4)"> <text>Prohibit firearms and chemical weapons on the grounds of or within the physical plant;</text> </paragraph> <paragraph num="(5)"> <text>Maintain poisonous, toxic, or flammable materials in accordance with appropriate health code standards;</text> </paragraph> <paragraph num="(6)"> <text>Except under the supervision of staff for use during celebrations, prohibit the use of candles;</text> </paragraph> <paragraph num="(7)"> <text>Maintain in safe and good repair power-driven equipment;</text> </paragraph> <paragraph num="(8)"> <text>Ensure that power-driven equipment is used by children only under the direct supervision of an employee and in accordance with State law; and</text> </paragraph> <paragraph num="(9)"> <text>Ensure that, if animals are kept on the grounds or in the facility:</text> <paragraph num="(a)"> <text>The animals are, consistent with the local ordinance or State law:</text> <paragraph num="(i)"> <text>Licensed or registered;</text> </paragraph> <paragraph num="(ii)"> <text>Vaccinated; and</text> </paragraph> <paragraph num="(iii)"> <text>Leashed when outdoors;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Children are, when age appropriate, educated regarding the care and grooming of the animal;</text> </paragraph> <paragraph num="(c)"> <text>Children allergic to the animal are not placed with the licensee;</text> </paragraph> <paragraph num="(d)"> <text>A responsible adult is always present when an animal is near an infant; and</text> </paragraph> <paragraph num="(e)"> <text>An animal suspected of becoming dangerous is removed from the grounds and facility.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Toys and Equipment. The licensee shall ensure that all toys and equipment used by children are:</text> <paragraph num="(1)"> <text>Sturdy;</text> </paragraph> <paragraph num="(2)"> <text>Of safe construction;</text> </paragraph> <paragraph num="(3)"> <text>Nontoxic;</text> </paragraph> <paragraph num="(4)"> <text>If used by children younger than 3 years old, large enough so they cannot be swallowed by a child;</text> </paragraph> <paragraph num="(5)"> <text>Clean; and</text> </paragraph> <paragraph num="(6)"> <text>In compliance with the standards of the Consumer Product Safety Commission.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Transportation. A licensee shall:</text> <paragraph num="(1)"> <text>Supply transportation necessary to implement the children's individual service plans, including:</text> <paragraph num="(a)"> <text>The provision of any necessary specialized transportation to accommodate a child who uses medical equipment; and</text> </paragraph> <paragraph num="(b)"> <text>The capacity to transport children in case of an emergency;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Enhance the safety of children during transportation by ensuring:</text> <paragraph num="(a)"> <text>The development and enforcement of appropriate written safety rules for transporting children;</text> </paragraph> <paragraph num="(b)"> <text>Proper registration and maintenance in a safe condition and in conformity with all applicable laws any motor vehicle used for the transportation of children;</text> </paragraph> <paragraph num="(c)"> <text>Retention of maintenance and repair records on all licensee-owned or leased motor vehicles used for the transportation of the children;</text> </paragraph> <paragraph num="(d)"> <text>The availability of a first-aid kit in all vehicles used to transport children; and</text> </paragraph> <paragraph num="(e)"> <text>Compliance with federal and State laws on child restraint;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Ensure that an individual who operates a licensee-owned or leased motor vehicle to transport the children is properly licensed to operate that class of vehicle;</text> </paragraph> <paragraph num="(4)"> <text>Ensure that the number of individuals in a motor vehicle used to transport the children does not exceed the vehicle's industry-rated capacity;</text> </paragraph> <paragraph num="(5)"> <text>Assure that any motor vehicle, whether owned by the licensee or a licensee's employee, which is used to transport children is properly insured for that purpose;</text> </paragraph> <paragraph num="(6)"> <text>Meet any special medical needs that a child may have during transportation, including:</text> <paragraph num="(a)"> <text>Advising the motor vehicle's operator if a child's health needs may cause difficulties during transportation, such as seizures, tendency towards motion sickness, or a disability; and</text> </paragraph> <paragraph num="(b)"> <text>For non-ambulatory children in all motor vehicles except automobiles:</text> <paragraph num="(i)"> <text>Using a ramp device or a hydraulic lift, if a ramp device is also available in case of emergency, to permit entry and exit of the children; and</text> </paragraph> <paragraph num="(ii)"> <text>Securing wheelchairs to the floor and arranging them with adequate aisle space and access to the exit door; and</text> </paragraph> </paragraph> </paragraph> <paragraph num="(7)"> <text>Curtail the use of 15-passenger vans for the transportation of children as follows:</text> <paragraph num="(a)"> <text>Licensee may not acquire or otherwise put into service a 15-passenger van for the transportation of children; and</text> </paragraph> <paragraph num="(b)"> <text>After January 1, 2006, a licensee may not transport children for any purpose in a 15-passenger van.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Swimming Pools, Hot Tubs, and Spas.</text> <paragraph num="(1)"> <text>If an in-ground swimming pool is located on the grounds of a licensee:</text> <paragraph num="(a)"> <text>The pool shall be maintained in a safe and sanitary condition;</text> </paragraph> <paragraph num="(b)"> <text>If a child younger than 8 years old is placed with the licensee, the pool area shall be completely enclosed by a fence that is:</text> <paragraph num="(i)"> <text>At least 4 feet high; and</text> </paragraph> <paragraph num="(ii)"> <text>Constructed of wood, concrete, brick, or chain metal; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>When the pool is not in use:</text> <paragraph num="(i)"> <text>The pool area shall be protected from access by a locked gate; and</text> </paragraph> <paragraph num="(ii)"> <text>The pool shall be completely covered in a manner to prevent access by a child.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee shall ensure that an above-ground swimming pool located on the licensee's grounds:</text> <paragraph num="(a)"> <text>Is maintained in a safe and sanitary condition;</text> </paragraph> <paragraph num="(b)"> <text>Is 4 feet above ground at all points; and</text> </paragraph> <paragraph num="(c)"> <text>When not in use, has:</text> <paragraph num="(i)"> <text>A secured cover which prevents access by children, or retractable or removable ladders locked or stored away from the pool;</text> </paragraph> <paragraph num="(ii)"> <text>Locked doors and gates that access the pool; and</text> </paragraph> <paragraph num="(iii)"> <text>No climbable objects on the pool's exterior.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The licensee shall allow children to swim:</text> <paragraph num="(a)"> <text>Only in approved areas; and</text> </paragraph> <paragraph num="(b)"> <text>Under the supervision of sufficient individuals who:</text> <paragraph num="(i)"> <text>Are trained in first aid, water safety, and cardiopulmonary resuscitation; and</text> </paragraph> <paragraph num="(ii)"> <text>Have current senior lifesaving certificates from the American Red Cross or its equivalent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Hot tubs and spas are prohibited on the grounds of a licensee's facility.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Any applicable State, federal, or local requirement shall control in the event of any conflict by any requirement in this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="General Program Requirements."> <paragraph num="A."> <text>Community Integration. The licensee shall:</text> <paragraph num="(1)"> <text>Develop and institute a plan to integrate the program into the life of the community, ensuring that children have opportunities to participate in community activities to a degree consistent with their needs and limitations;</text> </paragraph> <paragraph num="(2)"> <text>Ensure that community residents have reasonable access to the program administrator to address concerns about the program staff and residents;</text> </paragraph> <paragraph num="(3)"> <text>Appoint at least one resident of the community to be a member of the Board; and</text> </paragraph> <paragraph num="(4)"> <text>Develop and implement a procedure for the resolution of complaints from the community.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Communications with Family and Others. The licensee shall:</text> <paragraph num="(1)"> <text>Before or upon placement, give the child’s parent or legal guardian, the placing agency, and the child, a program handbook that is in a format that is understandable and comprehensive, and includes:</text> <paragraph num="(a)"> <text>The mission of the program and its admission and discharge policy;</text> </paragraph> <paragraph num="(b)"> <text>Normal daily routines;</text> </paragraph> <paragraph num="(c)"> <text>Treatment strategies and disciplinary philosophy;</text> </paragraph> <paragraph num="(d)"> <text>Visiting hours and other procedures related to communication with the child;</text> </paragraph> <paragraph num="(e)"> <text>A procedure through which the child or parent may register grievances regarding the child's care;</text> </paragraph> <paragraph num="(f)"> <text>The program’s policies with respect to accessing health care and the exercise of religion or a life philosophy; and</text> </paragraph> <paragraph num="(g)"> <text>The telephone number of the appropriate staff on duty who may be contacted;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Implement a written policy regarding communication which includes visitation, correspondence, reports, and telephone contact between the child and others;</text> </paragraph> <paragraph num="(3)"> <text>Consult with the placing agency to ascertain the child’s status with respect to family member contact and encourage family participation in the plan of care;</text> </paragraph> <paragraph num="(4)"> <text>Consistent with the child's individual plan of care, maintain conditions of reasonable privacy for the child’s visits and telephone contacts;</text> </paragraph> <paragraph num="(5)"> <text>Have flexible visiting hours for visitors who are unable to visit at the regular times;</text> </paragraph> <paragraph num="(6)"> <text>Unless inconsistent with the child’s individual plan of care, permit the child to receive and send mail;</text> </paragraph> <paragraph num="(7)"> <text>Establish and implement written procedures for all overnight visits away from the program which address:</text> <paragraph num="(a)"> <text>Documentation of permission from the placing agency, parent, or guardian;</text> </paragraph> <paragraph num="(b)"> <text>Determination of the duration of the visit; and</text> </paragraph> <paragraph num="(c)"> <text>Documentation of the:</text> <paragraph num="(i)"> <text>Name and address of the individual responsible for the child while absent from the program;</text> </paragraph> <paragraph num="(ii)"> <text>Child's location while absent from the program; and</text> </paragraph> <paragraph num="(iii)"> <text>Time of the child's departure from and return to the program;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>Prohibit restrictions on a child’s access to the child’s attorney; and</text> </paragraph> <paragraph num="(9)"> <text>When a child’s communication with an individual outside the program is curtailed or terminated:</text> <paragraph num="(a)"> <text>Inform the child and, unless unsafe for the child, the individual affected by the restriction; and</text> </paragraph> <paragraph num="(b)"> <text>Include a written statement of the reasons for the restriction in the child's case file.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Normal Daily Routines. The licensee shall:</text> <paragraph num="(1)"> <text>Have a written plan of normal daily routines which shall be made available to the children and employees; and</text> </paragraph> <paragraph num="(2)"> <text>Unless inappropriate, permit the children to participate in planning normal daily routines.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Public Relations.</text> <paragraph num="(1)"> <text>Before using a child's picture or other uniquely identifying information for the purpose of public relations in any form, the licensee shall obtain the written consent of:</text> <paragraph num="(a)"> <text>The child, if appropriate;</text> </paragraph> <paragraph num="(b)"> <text>The child's parent or legal guardian; and</text> </paragraph> <paragraph num="(c)"> <text>If required, the juvenile court.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee may not use a child, a child’s picture, or other uniquely identifying information in any way that would likely be harmful or cause embarrassment to the child or the child’s family.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Child Grievance Procedure.</text> <paragraph num="(1)"> <text>The licensee shall establish and follow a written grievance procedure that:</text> <paragraph num="(a)"> <text>Includes:</text> <paragraph num="(i)"> <text>Each step in the process;</text> </paragraph> <paragraph num="(ii)"> <text>Specific timelines; and</text> </paragraph> <paragraph num="(iii)"> <text>Identification of the person who should receive the grievance;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Requires documentation of receipt of the procedure in the child's individual case record; and</text> </paragraph> <paragraph num="(c)"> <text>Documents all grievances and communicates corrective actions to the:</text> <paragraph num="(i)"> <text>Licensing agency; and</text> </paragraph> <paragraph num="(ii)"> <text>The child and the child’s parents or legal guardian, as appropriate.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee shall provide the child and the child’s parents or legal guardian unimpeded access to a description of how to file a grievance, including:</text> <paragraph num="(a)"> <text>Any formal grievance forms or other requirements for the format and content of the complaint;</text> </paragraph> <paragraph num="(b)"> <text>Guidance for obtaining staff and other assistance in completing and filing a grievance; and</text> </paragraph> <paragraph num="(c)"> <text>Instructions regarding the identity, address, and telephone number of the individuals designated to receive and act upon grievances.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The licensee shall post the name and telephone number of the licensing agency and child protective services contact persons near every telephone that is accessible to staff and residents.</text> </paragraph> <paragraph num="(4)"> <text>The licensee shall ensure that there is no retaliation against a child or a child’s family for filing a grievance.</text> </paragraph> <paragraph num="(5)"> <text>The grievance procedure shall be approved by the licensing agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Basic Life Needs."> <paragraph num="A."> <text>General. The licensee shall have a structured plan of care designed to meet the children's physical needs and well-being.</text> </paragraph> <paragraph num="B."> <text>Food and Nutrition. The licensee shall:</text> <paragraph num="(1)"> <text>Serve food that meets or exceeds the children's recommended dietary allowances as established by the Food and Nutrition Board of the National Academy of Sciences;</text> </paragraph> <paragraph num="(2)"> <text>Maintain at least a 72-hour supply of food in accordance with the planned menu;</text> </paragraph> <paragraph num="(3)"> <text>Maintain nonperishable food items in the event of an emergency, in accordance with the licensee’s emergency preparedness plan;</text> </paragraph> <paragraph num="(4)"> <text>Provide each child three meals each day, which are approved by a registered dietician and offer nutritious between-meal snacks, with not more than 14 hours between dinner and breakfast the following day;</text> </paragraph> <paragraph num="(5)"> <text>Offer approved supplementary or modified nutritionally sufficient diets for religious, cultural, life philosophy, or health reasons, as appropriate;</text> </paragraph> <paragraph num="(6)"> <text>Prohibit forced feeding of or withholding of food from a child as a form of discipline;</text> </paragraph> <paragraph num="(7)"> <text>Ensure that if employees are served food from the facility, it shall be the same food as that served to the children;</text> </paragraph> <paragraph num="(8)"> <text>Observe the applicable requirements of the Maryland Department of Health and local health departments; and</text> </paragraph> <paragraph num="(9)"> <text>Design menus that:</text> <paragraph num="(a)"> <text>Are kept on file for 12 months;</text> </paragraph> <paragraph num="(b)"> <text>Are approved at least annually by an individual licensed by the State to practice dietetics;</text> </paragraph> <paragraph num="(c)"> <text>Are planned at least a week in advance;</text> </paragraph> <paragraph num="(d)"> <text>Document the actual foods served, including comparable substitutions; and</text> </paragraph> <paragraph num="(e)"> <text>Document any between-meal snacks provided.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Children’s Personal Funds. The licensee shall:</text> <paragraph num="(1)"> <text>Have and observe a written policy concerning a child’s personal funds which addresses:</text> <paragraph num="(a)"> <text>The child's access to the child's personal funds;</text> </paragraph> <paragraph num="(b)"> <text>Accrual of interest into the child's account from an interest bearing account;</text> </paragraph> <paragraph num="(c)"> <text>Accounting for the child's funds on request; and</text> </paragraph> <paragraph num="(d)"> <text>The limit, if any, placed on the personal funds a child may bring into and hold while in the program;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Make an inventory of the child's personal funds and other belongings upon admission, and update the inventory as needed;</text> </paragraph> <paragraph num="(3)"> <text>Treat money earned by a child or received by the child as a gift or as an allowance as the child's personal property;</text> </paragraph> <paragraph num="(4)"> <text>Account for and maintain a child's personal funds separate from program funds;</text> </paragraph> <paragraph num="(5)"> <text>Transfer a child’s personal funds to the child within 5 business days of discharge from the program;</text> </paragraph> <paragraph num="(6)"> <text>As applicable, deduct reasonable sums from a child's allowance as restitution for damage done, if the practice is consistent with the licensee’s program and written restitution policy; and</text> </paragraph> <paragraph num="(7)"> <text>Ensure that restitution shall be paid from the child’s personal funds in accordance with the child’s court order.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Clothing. The licensee shall:</text> <paragraph num="(1)"> <text>Ensure that the children have an adequate supply of clean, comfortable, well-fitting clothes, and shoes for indoor and outdoor wear;</text> </paragraph> <paragraph num="(2)"> <text>Treat a child's clothing as the child's personal property;</text> </paragraph> <paragraph num="(3)"> <text>Allow a child to be involved, as appropriate, in the selection, care, and maintenance of the child's clothing;</text> </paragraph> <paragraph num="(4)"> <text>Use donated clothing only if suitable and in good condition; and</text> </paragraph> <paragraph num="(5)"> <text>Transfer a child's clothing to the child upon discharge.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Other Personal Belongings.</text> <paragraph num="(1)"> <text>The licensee shall have a policy regarding personal belongings that will:</text> <paragraph num="(a)"> <text>Allow a child to possess appropriate personal belongings;</text> </paragraph> <paragraph num="(b)"> <text>Make reasonable provisions for the protection of a child's personal belongings; and</text> </paragraph> <paragraph num="(c)"> <text>Transfer to a child the child's personal belongings upon discharge.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee may limit the size, value, or type of personal belongings that a child may bring to the program.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Personal Hygiene. The licensee shall:</text> <paragraph num="(1)"> <text>Instruct the children in good habits of personal care, hygiene, and grooming; and</text> </paragraph> <paragraph num="(2)"> <text>Provide each child with culture-specific and gender-specific hygiene products, including, but not limited to:</text> <paragraph num="(a)"> <text>A toothbrush and toothpaste;</text> </paragraph> <paragraph num="(b)"> <text>Mouthwash and dental floss;</text> </paragraph> <paragraph num="(c)"> <text>A comb and brush;</text> </paragraph> <paragraph num="(d)"> <text>Clean towels and washcloths;</text> </paragraph> <paragraph num="(e)"> <text>Soap;</text> </paragraph> <paragraph num="(f)"> <text>Shampoo and conditioner;</text> </paragraph> <paragraph num="(g)"> <text>Body lotion or moisturizer;</text> </paragraph> <paragraph num="(h)"> <text>Deodorant; and</text> </paragraph> <paragraph num="(i)"> <text>Feminine hygiene products.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Sleep. The licensee shall:</text> <paragraph num="(1)"> <text>Establish and follow routines for waking the children and putting them to bed; and</text> </paragraph> <paragraph num="(2)"> <text>Provide children the opportunity each night for at least 8 hours of uninterrupted sleep, except in the event of an emergency or drill.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Children's Rights."> <paragraph num="A."> <text>General. The licensee shall provide services designed to meet the children's needs for guidance, learning, and personal development.</text> </paragraph> <paragraph num="B."> <text>Each child shall be treated in compliance with a “Residents’ Bill of Rights,” as set forth in Human Services Article, §8-707, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Children's Services."> <paragraph num="A."> <text>Education.</text> <paragraph num="(1)"> <text>Each licensee shall collaborate with the placing agency and document efforts to:</text> <paragraph num="(a)"> <text>Ensure that each child of mandatory school age who has not earned a high school diploma or certificate of completion under COMAR 13A.03.02.02 is receiving an appropriate elementary or secondary school education;</text> </paragraph> <paragraph num="(b)"> <text>If the child is a student with disabilities, cooperate with the team constituted under COMAR 13A.05.01 as appropriate to ensure that the child receives special education and related services as provided for in the child's individualized education program; and</text> </paragraph> <paragraph num="(c)"> <text>Ensure that each child above the mandatory school age who has not received a secondary school diploma or certificate of completion under COMAR 13A.03.02.02 participates in:</text> <paragraph num="(i)"> <text>A secondary school education program;</text> </paragraph> <paragraph num="(ii)"> <text>A tutoring program to prepare the child to take the General Educational Development Test under COMAR 13A.03.03; or</text> </paragraph> <paragraph num="(iii)"> <text>Developmentally appropriate vocational skills training.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The placing agency and licensee shall work cooperatively with the local school system to:</text> <paragraph num="(a)"> <text>Facilitate the child’s enrollment in school within the local school system within 3 school days of placement at the facility, and if not feasible, document in writing all attempts and rationale for the delay;</text> </paragraph> <paragraph num="(b)"> <text>Ensure that the child attends the local school whenever feasible and appropriate consistent with Education Article, §4-122(a)(4), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Participate as appropriate in the child's educational activities.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If a licensee determines that there is a need to establish educational services in its facility, the licensee shall:</text> <paragraph num="(a)"> <text>Obtain a certificate of approval in accordance with COMAR 13A.09.10, if the licensee intends to establish a nonpublic educational program or GED program; or</text> </paragraph> <paragraph num="(b)"> <text>Establish a tutoring program for children who are concurrently enrolled in a public or nonpublic educational program.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Each licensee shall notify the placing agency and the licensing agency when a child is suspended from school for more than 3 days.</text> </paragraph> <paragraph num="(5)"> <text>Each licensee shall immediately notify the placing agency and the licensing agency when a child is expelled from school.</text> </paragraph> <paragraph num="(6)"> <text>Each licensee shall develop an individualized daily program plan for a child who has been suspended or expelled from school.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Recreation and Leisure. The licensee shall develop a written plan that:</text> <paragraph num="(1)"> <text>Provides the children with a range of indoor and outdoor recreation and leisure activities both in the program and in the community; and</text> </paragraph> <paragraph num="(2)"> <text>Bases recreation and leisure activities on a child’s needs and interests and the group composition.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Life Skills Training. The licensee shall provide each child with life skills training appropriate to the age and capability of the child in areas including:</text> <paragraph num="(1)"> <text>Accessing community resources and services;</text> </paragraph> <paragraph num="(2)"> <text>Conflict resolution;</text> </paragraph> <paragraph num="(3)"> <text>Dating, marriage, and family planning;</text> </paragraph> <paragraph num="(4)"> <text>Decision making;</text> </paragraph> <paragraph num="(5)"> <text>Money management;</text> </paragraph> <paragraph num="(6)"> <text>Nutrition;</text> </paragraph> <paragraph num="(7)"> <text>Personal hygiene and grooming;</text> </paragraph> <paragraph num="(8)"> <text>Personal relationships;</text> </paragraph> <paragraph num="(9)"> <text>Personal safety; and</text> </paragraph> <paragraph num="(10)"> <text>Time management.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Work Experience. The licensee:</text> <paragraph num="(1)"> <text>Shall train a child in work readiness according to the child's age and capability;</text> </paragraph> <paragraph num="(2)"> <text>Shall develop appropriate work experiences for a child that:</text> <paragraph num="(a)"> <text>Do not interfere with a child's time for school, study periods, sleep, community activities, or family visits;</text> </paragraph> <paragraph num="(b)"> <text>Comply with federal and State law on labor and employment and child labor; and</text> </paragraph> <paragraph num="(c)"> <text>Do not use a minor as a substitute for child care staff;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Shall change the child’s routine duties often to provide a variety of experience; and</text> </paragraph> <paragraph num="(4)"> <text>For a child who legally is not attending school, shall document informing the child of opportunities of or assistance to the child in the attainment of gainful employment or facilitation of the participation of the child in a vocational academic program geared to the acquisition of suitable employment or necessary life skills.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Health Care."> <paragraph num="A."> <text>General Health Services. The licensee shall:</text> <paragraph num="(1)"> <text>Establish and implement a written plan for the provision of preventive, routine, and emergency medical, dental, optical, and mental health care for the children;</text> </paragraph> <paragraph num="(2)"> <text>Establish and implement a written policy for documenting and addressing health complaints; and</text> </paragraph> <paragraph num="(3)"> <text>Obtain written authorization from a parent, legal guardian, or other authorized individual for emergency and non-emergency medical, dental, optical, or mental health care.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Medication Administration Policy.</text> <paragraph num="(1)"> <text>The licensee shall observe written policies for the management and administration of medications to children.</text> </paragraph> <paragraph num="(2)"> <text>The policy shall comply with all relevant State statutes and regulations.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Medication Management.</text> <paragraph num="(1)"> <text>The licensee shall maintain medications as follows:</text> <paragraph num="(a)"> <text>The licensee shall store medications in a locked drawer, cabinet, or container intended for medication storage, or, if a refrigerator is required, in a locked container in the refrigerator;</text> </paragraph> <paragraph num="(b)"> <text>The licensee shall store all Schedule I and Schedule II controlled substances, as defined in Criminal Law Article, Title 5, Annotated Code of Maryland, under two consecutive locks; and</text> </paragraph> <paragraph num="(c)"> <text>The licensee shall discard outdated or discontinued prescription and over-the-counter medications in a manner that prohibits misuse.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a newly admitted child, the licensee shall:</text> <paragraph num="(a)"> <text>Continue any current medications that the child is receiving at the time of admission to the program; and</text> </paragraph> <paragraph num="(b)"> <text>Within 3 days of admission, consult with the licensee’s medical care provider, psychiatrist, or the child’s primary care physician concerning the continuation of a current medication.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For each child in the program who receives medications, the licensee shall:</text> <paragraph num="(a)"> <text>As medically indicated, obtain from the child’s medical care provider a review of the child’s medications and documentation of the reasons for continuing, discontinuing, or changing medication, depending on the child’s medical needs; and</text> </paragraph> <paragraph num="(b)"> <text>Document all medication taken, including the:</text> <paragraph num="(i)"> <text>Name of the child;</text> </paragraph> <paragraph num="(ii)"> <text>Name of the medication;</text> </paragraph> <paragraph num="(iii)"> <text>Frequency and dosage of the medication;</text> </paragraph> <paragraph num="(iv)"> <text>Date, time, and type of administration of the medication; and</text> </paragraph> <paragraph num="(v)"> <text>Name and signature of the employee who administered the medication or supervised its self-administration;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Notify the prescribing physician in any case of a medication error or drug reaction; and</text> </paragraph> <paragraph num="(d)"> <text>Coordinate with the pharmacy and the child’s parents or legal guardian to provide information about appropriate administration of medications during the child’s home visits.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The licensee shall include the training provided under Regulation .05E(4)(g) of this chapter to all direct care staff regarding:</text> <paragraph num="(a)"> <text>The therapeutic benefits and side effects of medications used by children in the program; and</text> </paragraph> <paragraph num="(b)"> <text>Medication administration, in accordance with the requirements of §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The licensee shall prohibit the use of medication for the purpose of group control, experimentation, or research.</text> </paragraph> <paragraph num="(6)"> <text>The licensee shall coordinate with the child's health care provider and the placing agency at the time of the child's discharge to ensure continuity in the administration of medications to the child.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Somatic Health Care. The licensee shall:</text> <paragraph num="(1)"> <text>Establish and implement written policies and procedures for the provision of somatic health care services;</text> </paragraph> <paragraph num="(2)"> <text>Provide the children with access to somatic health care through a physician licensed to practice medicine in the State or, under the supervision of a licensed physician, a nurse practitioner or physician’s assistant appropriately certified or licensed to practice in the State;</text> </paragraph> <paragraph num="(3)"> <text>Arrange for access to prompt diagnosis and treatment of acute illnesses;</text> </paragraph> <paragraph num="(4)"> <text>Arrange for access to continuing care for chronic illnesses;</text> </paragraph> <paragraph num="(5)"> <text>Arrange for hospitalization for a child when deemed necessary by the licensee’s somatic health care provider; and</text> </paragraph> <paragraph num="(6)"> <text>As authorized by State and federal law, make available to the child, the child's parent or legal guardian, and the placing agency a copy or summary of the child's health record</text> </paragraph> </paragraph> <paragraph num="E."> <text>Dental Care. The licensee shall:</text> <paragraph num="(1)"> <text>Provide the children with access to dental care through a dentist licensed to practice dentistry in the State;</text> </paragraph> <paragraph num="(2)"> <text>Unless a child has been examined and treated as necessary during the 6 months before the child’s admission to the program, have each child examined by a dentist within 30 days after admission;</text> </paragraph> <paragraph num="(3)"> <text>Have each child examined by a dentist at least every 12 months or more frequently as prescribed by the dentist; and</text> </paragraph> <paragraph num="(4)"> <text>Arrange for access to prompt treatment of acute dental needs.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Vision and Audiological Care. The licensee shall provide the child with access to vision and audiological care as authorized by the child’s primary care physician through an appropriate professional licensed to practice in the State.</text> </paragraph> <paragraph num="G."> <text>Immunization. The licensee shall:</text> <paragraph num="(1)"> <text>Within 30 days after admission and subject to the provisions of State law, provide for the immunization of any child who has not been immunized in accordance with the immunization schedules of the American Academy of Pediatrics; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain a record of immunizations in the child's individual case record.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Physical Examination. The licensee shall secure a physical examination for each child, with a copy of the documentation of the examination:</text> <paragraph num="(1)"> <text>Within 30 days of admission or earlier if indicated by the child’s health status, unless a child has been examined and treated as necessary during the 12 months before the child’s admission to the program; and</text> </paragraph> <paragraph num="(2)"> <text>After the examination conducted under §H(1) of this regulation, according to a schedule established by the child's medical care provider, the American Academy of Pediatrics, or the Early and Periodic Screening, Diagnosis, and Treatment schedule.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Emergency Health Services. The licensee shall establish and implement written policies and procedures for emergency medical, dental, or mental health needs requiring emergency hospital treatment, including:</text> <paragraph num="(1)"> <text>Communication of the need for immediate assistance;</text> </paragraph> <paragraph num="(2)"> <text>Transportation of the child;</text> </paragraph> <paragraph num="(3)"> <text>Notification to the licensing agency, the placing agency, and, unless inconsistent with the child’s individual plan of care, the child’s parent or legal guardian; and</text> </paragraph> <paragraph num="(4)"> <text>Supervision of the child and the children remaining at the program.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Communicable Diseases. The licensee shall:</text> <paragraph num="(1)"> <text>Establish and implement a policy for managing communicable diseases, including isolation when necessary;</text> </paragraph> <paragraph num="(2)"> <text>Establish and implement a policy that requires staff to exercise standard precautions with respect to communicable diseases and infection control; and</text> </paragraph> <paragraph num="(3)"> <text>Comply with Maryland Occupational Safety and Health Bloodborne Pathogen Standards and the Centers for Disease Control and Prevention's guidelines for the prevention of communicable diseases and other health emergencies.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Suicide Prevention. The licensee shall establish and follow procedures for suicide prevention and intervention.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Child Abuse and Neglect."> <paragraph num="A."> <text>Written Policy. The licensee shall establish and implement a written policy that sets out, in compliance with State law and regulations:</text> <paragraph num="(1)"> <text>The definitions of child abuse and neglect;</text> </paragraph> <paragraph num="(2)"> <text>The procedures to be followed if the licensee has reason to believe that a child has been subjected to abuse or neglect; and</text> </paragraph> <paragraph num="(3)"> <text>The penalties that the program may impose for failure to comply with the policy.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Reporting Requirements.</text> <paragraph num="(1)"> <text>An individual who notifies the local department of social services or appropriate law enforcement agency under this regulation also shall report and give all information required by State law to:</text> <paragraph num="(a)"> <text>The program administrator; or</text> </paragraph> <paragraph num="(b)"> <text>If the program administrator is the individual alleged to be responsible for the abuse or neglect, a specified officer of the licensee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee may not prevent an individual from making a report of abuse or neglect or take disciplinary action against an individual for making in good faith a report of abuse or neglect.</text> </paragraph> <paragraph num="(3)"> <text>The licensee shall cooperate in the conduct of any investigation or proceeding brought as result of a report of abuse or neglect by:</text> <paragraph num="(a)"> <text>Allowing employees to participate in the investigation and to provide testimony without loss of leave, pay, or other benefits; and</text> </paragraph> <paragraph num="(b)"> <text>Disciplining employees who fail or refuse to report abuse or neglect when required to do so or do not cooperate in the investigation or provide testimony when requested.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Within 48 hours after a licensee files a report of child abuse or neglect with the local department of social services or the appropriate law enforcement agency, or within 48 hours after it becomes known to the licensee that the report has been filed, the licensee shall:</text> <paragraph num="(a)"> <text>Submit a written report to the licensing agency informing it of the activity; and</text> </paragraph> <paragraph num="(b)"> <text>Unless inconsistent with the child’s individual plan of care, inform the child’s parent or legal guardian of the allegation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Within 10 days after a local department of social services makes a finding regarding a report that a child may have been subjected to abuse or neglect by an individual associated with the licensee, the licensee shall submit to the licensing agency a written final report indicating any necessary corrective action that the licensee will undertake and put into effect not more than 30 days after the final report.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Employee's Signature. The licensee shall ensure that as a condition of employment, all employees read and sign a statement acknowledging receipt of the policy established under §A of this regulation.</text> </paragraph> <paragraph num="D."> <text>Administrative Leave. Upon being notified of or making a report alleging that an employee has subjected a child to abuse or neglect, the licensee shall immediately place the employee on administrative leave and remove the employee from access to the children. This regulation does not prohibit a licensee from suspending without pay or discharging an employee alleged to have subjected a child to abuse or neglect.</text> </paragraph> <paragraph num="E."> <text>Multidisciplinary Consultation. When the local department of social services asks the program administrator to participate on a multidisciplinary case consultation team to investigate a report of child abuse or neglect and to help formulate a corrective action plan, the program administrator or designee shall participate on the team.</text> </paragraph> <paragraph num="F."> <text>Posting Telephone Numbers. The licensee shall post conspicuously the telephone number supplied by the local department of social services for reporting child abuse or neglect.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Behavioral Interventions, Strategies, and Supports."> <paragraph num="A."> <text>General Policies.</text> <paragraph num="(1)"> <text>The licensee shall establish and follow written policies and procedures that:</text> <paragraph num="(a)"> <text>Are communicated to the child, the child’s parent or legal guardian, program personnel, licensing agency, and the placing agency;</text> </paragraph> <paragraph num="(b)"> <text>Incorporate the principles of positive behavioral interventions, strategies and supports, and trauma-informed care into all prevention and intervention strategies;</text> </paragraph> <paragraph num="(c)"> <text>Specify the approved procedures for the administration of prevention and intervention strategies and supports;</text> </paragraph> <paragraph num="(d)"> <text>Identify the program personnel authorized to administer each form of prevention and intervention strategies and supports;</text> </paragraph> <paragraph num="(e)"> <text>Include the procedures for training program personnel in the use and administration of each form of prevention and intervention strategies and supports that incorporate the principles listed in §A(1)(b) of this regulation; and</text> </paragraph> <paragraph num="(f)"> <text>Annually review the forms of prevention and intervention strategies and supports.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensee may not use the following as disciplinary measures:</text> <paragraph num="(a)"> <text>Physical, mental, and verbal abuse, or corporal punishment;</text> </paragraph> <paragraph num="(b)"> <text>Assignment of physically strenuous exercise or work;</text> </paragraph> <paragraph num="(c)"> <text>The withholding of:</text> <paragraph num="(i)"> <text>Food;</text> </paragraph> <paragraph num="(ii)"> <text>Water;</text> </paragraph> <paragraph num="(iii)"> <text>Sleep;</text> </paragraph> <paragraph num="(iv)"> <text>Mail;</text> </paragraph> <paragraph num="(v)"> <text>Family visits; or</text> </paragraph> <paragraph num="(vi)"> <text>Program participation other than recreation or leisure activities;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Forced feeding of a child;</text> </paragraph> <paragraph num="(e)"> <text>Chemical restraints, unless in compliance with State law and ordered by a physician;</text> </paragraph> <paragraph num="(f)"> <text>Mechanical restraints, except as permitted by other applicable State regulations or ordered by a court of competent jurisdiction; or</text> </paragraph> <paragraph num="(g)"> <text>Physical restraint, except when failure to do so would result in harm to others or to the child.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A program may not delegate behavioral interventions, strategies, and supports of a child to another child or group of children.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Interventions Strategies.</text> <paragraph num="(1)"> <text>General Program Requirements. Program staff shall be encouraged to use an array of prevention and intervention strategies to increase adaptive behaviors or decrease targeted behaviors, as specified in the behavior intervention plan, that incorporate the following principles:</text> <paragraph num="(a)"> <text>Positive behavioral intervention strategies and supports;</text> </paragraph> <paragraph num="(b)"> <text>Trauma-informed care; and</text> </paragraph> <paragraph num="(c)"> <text>Individualized behavioral assessments and planning in accordance with COMAR 14.31.06.17.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Program staff may use restraint only:</text> <paragraph num="(a)"> <text>After less restrictive or alternative approaches have been considered and:</text> <paragraph num="(i)"> <text>Attempted; or</text> </paragraph> <paragraph num="(ii)"> <text>Determined to be inappropriate;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>In a humane, safe, and effective manner;</text> </paragraph> <paragraph num="(c)"> <text>Without intent to harm or cause discomfort;</text> </paragraph> <paragraph num="(d)"> <text>When consistent with documented medical or psychological limitations and the child’s individual plan of care; and</text> </paragraph> <paragraph num="(e)"> <text>If the staff member performing the restraint has current certification in the use of restraint via the training program used by the licensee that has been approved by the State.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Nothing in this chapter shall limit the responsibilities of law enforcement, judicial authorities, or security personnel.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Safe Environment Plan.</text> <paragraph num="(1)"> <text>General. The program shall develop a safe environment plan during intake and admission. The safe environment plan shall be reviewed and updated in conjunction with the child’s individual plan of care, or more frequently, as appropriate. The program shall partner with the child, the child’s parent or legal guardian, as applicable, and the custodial agency to develop a plan to create and maintain a nonviolent and healing environment and to prevent the use of restraint. The safe environment plan shall be easily accessible to program personnel at all times.</text> </paragraph> <paragraph num="(2)"> <text>Unless otherwise documented in a plan, the safe environment plan shall include the following:</text> <paragraph num="(a)"> <text>Physical space that the program shall provide to make the child feel safe, comforted, and in control of the child’s behavior;</text> </paragraph> <paragraph num="(b)"> <text>The triggers and situations that increase stress or fear and may cause the child to lose control of his or her behavior and how the child’s loss of control of his or her behavior is manifested;</text> </paragraph> <paragraph num="(c)"> <text>The methods for calming or soothing that the child prefers and has found to be successful;</text> </paragraph> <paragraph num="(d)"> <text>The child’s preferences regarding positive, nonphysical interventions, strategies, and supports if the child’s level of agitation increases;</text> </paragraph> <paragraph num="(e)"> <text>The medication that is appropriate clinically and agreed to and prescribed by the child’s treating physician that the child may choose to take voluntarily, if the child’s level of agitation increases despite the use of the alternative interventions identified in the safe environment plan;</text> </paragraph> <paragraph num="(f)"> <text>Any medical information that can affect the safety of a restrictive intervention;</text> </paragraph> <paragraph num="(g)"> <text>Any trauma history that the child has experienced;</text> </paragraph> <paragraph num="(h)"> <text>Any preferences or contraindications to the debriefing process; and</text> </paragraph> <paragraph num="(i)"> <text>The time frame in which law enforcement will be notified in the event of a child being absent without leave, not to exceed time limits as specified in COMAR 14.31.06.16.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The program shall ensure that all program personnel working directly with the child:</text> <paragraph num="(a)"> <text>Are fully briefed on each child’s safe environment plan; and</text> </paragraph> <paragraph num="(b)"> <text>Honor the child’s requests and preferences identified in the plan, unless clinically contraindicated in a particular situation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The treatment team shall:</text> <paragraph num="(a)"> <text>Review the safe environment plan with the child following any post-restraint debriefing, and at other times consistent with the program’s policy, make any necessary changes identified by the child, staff, or both as appropriate; and</text> </paragraph> <paragraph num="(b)"> <text>Ensure that staff, the child’s parent or legal guardian, and the custodial agency are informed of any subsequent modifications made to safe environment and individual plan of care.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Use of Time Out.</text> <paragraph num="(1)"> <text>Program personnel may use time-out to address a child’s behavior if:</text> <paragraph num="(a)"> <text>The safe environment plan supports time-out;</text> </paragraph> <paragraph num="(b)"> <text>The child requests time-out;</text> </paragraph> <paragraph num="(c)"> <text>The child’s behavior unreasonably interferes with the program activities; or</text> </paragraph> <paragraph num="(d)"> <text>The child’s behavior constitutes an emergency, and time-out is necessary to protect a child or other person from imminent, serious, physical harm after other less intrusive interventions have failed or been determined to be inappropriate.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A setting used for time out shall:</text> <paragraph num="(a)"> <text>Provide program personnel with the ability to see the child at all times;</text> </paragraph> <paragraph num="(b)"> <text>Provide adequate lighting, ventilation, and furnishings; and</text> </paragraph> <paragraph num="(c)"> <text>Be unlocked and free of structural barriers to prevent egress.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Program personnel shall supervise a child placed in time-out and provide a child in time-out with:</text> <paragraph num="(a)"> <text>An explanation of the behavior that resulted in the use of time-out; and</text> </paragraph> <paragraph num="(b)"> <text>Explanation and instruction on the behavioral expectations when the child returns to the milieu.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Each period of time-out shall be appropriate to the developmental level of the child and the degree of severity of the behavior, and may not exceed 30 minutes.</text> </paragraph> <paragraph num="(5)"> <text>A child’s parent or legal guardian, the custodial agency, and program personnel may at any time request a meeting to address the use of time-out and to:</text> <paragraph num="(a)"> <text>Conduct a functional behavioral assessment; and</text> </paragraph> <paragraph num="(b)"> <text>Develop, review, or revise a child’s plan of care.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Restraint.</text> <paragraph num="(1)"> <text>Physical Restraint.</text> <paragraph num="(a)"> <text>The use of physical restraint must be in accordance with the approved behavior management system used by the licensee.</text> </paragraph> <paragraph num="(b)"> <text>The use of prone restraint is prohibited in residential child care facilities.</text> </paragraph> <paragraph num="(c)"> <text>The use of physical restraint is prohibited in residential child care facilities unless:</text> <paragraph num="(i)"> <text>The parent or legal guardian of a child has been notified before admission that the use of physical restraint may be necessary; and</text> </paragraph> <paragraph num="(ii)"> <text>There is an emergency situation and physical restraint is necessary to protect a child or other individuals from imminent, serious, physical harm after other less intrusive, nonphysical interventions have failed or been determined inappropriate.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Physical restraint may be applied only by program personnel who have successfully completed State-approved training in the appropriate use of physical restraint consistent with §G of this regulation.</text> </paragraph> <paragraph num="(e)"> <text>In applying physical restraint, program personnel may only use the least amount of force necessary to protect a child or other person from imminent, serious physical harm.</text> </paragraph> <paragraph num="(f)"> <text>A physical restraint:</text> <paragraph num="(i)"> <text>Shall be removed as soon as the resident is calm; and</text> </paragraph> <paragraph num="(ii)"> <text>May not last longer than 30 minutes per occurrence or longer than the approved behavior management system used by the licensee.</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Trained staff shall constantly monitor the use of restraint for the following:</text> <paragraph num="(i)"> <text>Proper technique;</text> </paragraph> <paragraph num="(ii)"> <text>Level of consciousness of the youth being restrained;</text> </paragraph> <paragraph num="(iii)"> <text>Breathing; and</text> </paragraph> <paragraph num="(iv)"> <text>Other safety factors.</text> </paragraph> </paragraph> <paragraph num="(h)"> <text>The program administrator or designee shall be contacted immediately after the initiation of the restraint.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Mechanical Restraint.</text> <paragraph num="(a)"> <text>The use of mechanical restraint is prohibited in residential child care facilities, except as permitted in COMAR 14.31.07.08.</text> </paragraph> <paragraph num="(b)"> <text>Program personnel are not prohibited from using a protective or stabilizing device prescribed by a health care professional.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The use of seclusion is prohibited in Maryland residential child care facilities.</text> </paragraph> <paragraph num="(4)"> <text>Referral to Team.</text> <paragraph num="(a)"> <text>If restraint is used, and the child’s behavior intervention plan does not include the use of restraint, the team specified in Regulation .17A of this chapter shall meet within 5 business days of the incident to consider:</text> <paragraph num="(i)"> <text>The review of the safe environment plan;</text> </paragraph> <paragraph num="(ii)"> <text>The need for a functional behavioral assessment;</text> </paragraph> <paragraph num="(iii)"> <text>Reviewing or developing appropriate behavioral interventions; and</text> </paragraph> <paragraph num="(iv)"> <text>Revising or implementing a behavior intervention plan.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If a child’s behavior intervention plan includes the use of restraint, it shall specify how often the team shall meet to review or revise, as appropriate, the child’s behavior intervention plan.</text> </paragraph> <paragraph num="(c)"> <text>When a team meets to review or revise a child’s behavior intervention plan, the team shall consider:</text> <paragraph num="(i)"> <text>Existing health, physical, psychological, and psychosocial information;</text> </paragraph> <paragraph num="(ii)"> <text>Information provided by the parent or legal guardian and the custodial agency; and</text> </paragraph> <paragraph num="(iii)"> <text>Observations by program personnel and related service providers.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>The program shall provide the parent or legal guardian, the child, the custodial agency, and the child’s attorney with written notice when a team proposes or refuses to initiate or change the child’s behavior intervention plan to include the use of restraint.</text> </paragraph> <paragraph num="(e)"> <text>A parent or legal guardian or child may request an appeal through the program's grievance process in accordance with Regulation .09E of this chapter if the parent or legal guardian or child disagrees with the team’s decision to propose, or refuse to initiate, or change the child’s behavior intervention plan to use restraint.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Documentation Requirements for the Use of Restraint. Documentation of events surrounding the utilization of restraint in the child’s record shall include, but not be limited to:</text> <paragraph num="(a)"> <text>Type of restraint used;</text> </paragraph> <paragraph num="(b)"> <text>Rationale for the restraint and expected outcome of the intervention;</text> </paragraph> <paragraph num="(c)"> <text>The safe environment plan or other less restrictive interventions, de-escalation techniques, or all of these utilized prior to the implementation of restraint and the child’s response to each;</text> </paragraph> <paragraph num="(d)"> <text>The child’s response during and after the implementation of the restraint;</text> </paragraph> <paragraph num="(e)"> <text>The length of time in restraint;</text> </paragraph> <paragraph num="(f)"> <text>Description of the specific precipitating factors leading to the restraint, including:</text> <paragraph num="(i)"> <text>Description of observable behavioral, emotional, and physical characteristics of the child involved;</text> </paragraph> <paragraph num="(ii)"> <text>Degree of restriction or loss of privileges;</text> </paragraph> <paragraph num="(iii)"> <text>Any event, situation, or condition immediately preceding the behavior that prompted the use of restraint; and</text> </paragraph> <paragraph num="(iv)"> <text>The behavior that prompted the use of a restraint;</text> </paragraph> </paragraph> <paragraph num="(g)"> <text>Specific location where the restraint occurred, and general activity occurring within the environment before the incident;</text> </paragraph> <paragraph num="(h)"> <text>Staffing level, types of program personnel (male, female, unlicensed, licensed);</text> </paragraph> <paragraph num="(i)"> <text>Unit capacity and unit population;</text> </paragraph> <paragraph num="(j)"> <text>The names of the program personnel who observed the behavior that prompted the use of restraint;</text> </paragraph> <paragraph num="(k)"> <text>The names and signatures of the program personnel implementing, observing, and monitoring the use of restraint;</text> </paragraph> <paragraph num="(l)"> <text>A description of the restraint event, including:</text> <paragraph num="(i)"> <text>The child’s behavior and reaction during the restraint; and</text> </paragraph> <paragraph num="(ii)"> <text>The name and signature of the administrator informed of the use of restraint;</text> </paragraph> </paragraph> <paragraph num="(m)"> <text>Physical condition, including any observable or reportable injuries of the child during and after the restraint, including:</text> <paragraph num="(i)"> <text>Description of any injuries sustained;</text> </paragraph> <paragraph num="(ii)"> <text>On-site first aid intervention; and</text> </paragraph> <paragraph num="(iii)"> <text>Off-site medical treatment;</text> </paragraph> </paragraph> <paragraph num="(n)"> <text>Medication, as identified in the child’s safe environment plan, administered before, during, or after the restraint;</text> </paragraph> <paragraph num="(o)"> <text>Date and time of the restraint; and</text> </paragraph> <paragraph num="(p)"> <text>Notification:</text> <paragraph num="(i)"> <text>To the program administrator or designee;</text> </paragraph> <paragraph num="(ii)"> <text>To the parent or legal guardian;</text> </paragraph> <paragraph num="(iii)"> <text>To the placement agency; and</text> </paragraph> <paragraph num="(iv)"> <text>To the licensing agency in writing, the information described in Regulation .18D of this chapter.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Debriefing.</text> <paragraph num="(1)"> <text>Staff.</text> <paragraph num="(a)"> <text>Within 24 hours of the incident, program personnel involved in the incident and the clinical coordinator, supervisor, or designee shall discuss and document the management of the incident by addressing the following:</text> <paragraph num="(i)"> <text>The precipitating factors of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>Program personnel response to the incident;</text> </paragraph> <paragraph num="(iii)"> <text>De-escalation techniques or less restrictive interventions attempted, or both, and the child’s response to each;</text> </paragraph> <paragraph num="(iv)"> <text>Timeliness of program personnel intervention;</text> </paragraph> <paragraph num="(v)"> <text>Program personnel's ability to function as a team and improvements that could be made;</text> </paragraph> <paragraph num="(vi)"> <text>Adequacy of program personnel response and need for additional staff;</text> </paragraph> <paragraph num="(vii)"> <text>Aspects of the incident that should be the focus for discussion for the team; and</text> </paragraph> <paragraph num="(viii)"> <text>Other interventions that could have been used to prevent the restraint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Child.</text> <paragraph num="(a)"> <text>Within 24 hours of the incident, unless contraindicated by the safe environment plan, the child involved in the incident and the program administrator or designee shall discuss and document the management of the incident by addressing the following:</text> <paragraph num="(i)"> <text>The precipitating factors of the incident;</text> </paragraph> <paragraph num="(ii)"> <text>Program personnel response to the incident;</text> </paragraph> <paragraph num="(iii)"> <text>De-escalation techniques or less restrictive interventions attempted, or both, and the child’s response to each;</text> </paragraph> <paragraph num="(iv)"> <text>Timeliness of program personnel intervention;</text> </paragraph> <paragraph num="(v)"> <text>Program personnel's ability to function as a team, and improvements that could be made;</text> </paragraph> <paragraph num="(vi)"> <text>Adequacy of program personnel response, and need for additional staff;</text> </paragraph> <paragraph num="(vii)"> <text>Aspects of the incident that should be the focus for discussion for the team; and</text> </paragraph> <paragraph num="(viii)"> <text>Other interventions that could have been used to prevent the restraint.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If the child declines to participate in the debriefing:</text> <paragraph num="(i)"> <text>Program personnel shall document efforts to conduct the debriefing, efforts to engage the child in the process, and the reasons the child declined to participate; and</text> </paragraph> <paragraph num="(ii)"> <text>Negative consequences may not be imposed upon the child for nonparticipation.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Administrative Procedures.</text> <paragraph num="(1)"> <text>Each residential child care facility shall develop policies and procedures to address:</text> <paragraph num="(a)"> <text>A continuum of prevention and intervention strategies that incorporate the principles of positive behavioral interventions, strategies and supports, and trauma-informed care;</text> </paragraph> <paragraph num="(b)"> <text>The prevention of self-injurious behaviors;</text> </paragraph> <paragraph num="(c)"> <text>Methods for identifying and defusing potentially dangerous behavior;</text> </paragraph> <paragraph num="(d)"> <text>The use and documentation of time-out consistent with Regulation .15D of this chapter; and</text> </paragraph> <paragraph num="(e)"> <text>The use of restraint consistent with Regulation .15E of this chapter.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Quality Assurance. Each residential child care facility shall develop a quality assurance process to:</text> <paragraph num="(a)"> <text>Ensure that each child’s needs are addressed;</text> </paragraph> <paragraph num="(b)"> <text>Monitor and address the incident management findings, frequency, and types of restraints utilized;</text> </paragraph> <paragraph num="(c)"> <text>Implement measures to reduce the use of restraint; and</text> </paragraph> <paragraph num="(d)"> <text>Annually review policies and procedures, and provide them to program personnel and the parent or legal guardian.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Training.</text> <paragraph num="(a)"> <text>Each residential child care facility shall provide training to program personnel on this chapter and the appropriate implementation of policies and procedures developed in accordance with §A of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>The program personnel shall receive training on current professionally accepted practices and standards from a vendor whose training program has been approved by the State and which includes all of the following:</text> <paragraph num="(i)"> <text>Positive behavioral intervention strategies and supports;</text> </paragraph> <paragraph num="(ii)"> <text>Trauma-informed care; and</text> </paragraph> <paragraph num="(iii)"> <text>Restraint.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Training shall be required:</text> <paragraph num="(i)"> <text>Before program personnel may work with children independently; and</text> </paragraph> <paragraph num="(ii)"> <text>At least annually.</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Each residential child care facility shall identify program personnel authorized to serve as a program wide resource to:</text> <paragraph num="(i)"> <text>Assist with training on de-escalation techniques; and</text> </paragraph> <paragraph num="(ii)"> <text>Ensure proper administration of time out and restraint.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Monitoring and Compliance.</text> <paragraph num="(a)"> <text>Each residential child care facility shall develop policies and procedures on:</text> <paragraph num="(i)"> <text>Monitoring the use of time out and restraint; and</text> </paragraph> <paragraph num="(ii)"> <text>Receiving and investigating complaints regarding time out and restraint practices.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The residential child care facility shall report the use of restraint to:</text> <paragraph num="(i)"> <text>The parent or legal guardian within 24 hours of the incident unless otherwise specified in the safe environment plan by the parent or legal guardian;</text> </paragraph> <paragraph num="(ii)"> <text>The placement agency;</text> </paragraph> <paragraph num="(iii)"> <text>The licensing agency in writing, information described in Regulation .18D of this chapter; and</text> </paragraph> <paragraph num="(iv)"> <text>Child Protective Services, as required by Regulation .14 of this chapter.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The licensing agency may monitor and request any information regarding any matter related to time-out or restraint implemented by a residential child care facility.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Absence Without Leave."> <paragraph num="A."> <text>Written Policy. The licensee shall have and follow a written policy to govern its actions when a child is discovered to be absent without leave.</text> </paragraph> <paragraph num="B."> <text>Child’s Return. Unless otherwise specified in the child’s individual plan of care, if the child has not returned to the program within 1 hour of the program discovering that the child is missing or unaccounted for, the licensee shall notify:</text> <paragraph num="(1)"> <text>The local law enforcement authority;</text> </paragraph> <paragraph num="(2)"> <text>The placing agency;</text> </paragraph> <paragraph num="(3)"> <text>The licensing agency; and</text> </paragraph> <paragraph num="(4)"> <text>The child’s parent or legal guardian, unless inconsistent with the child’s individual plan of care.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notification. When a child who was missing or unaccounted for returns to the program, the licensee shall immediately notify:</text> <paragraph num="(1)"> <text>The local law enforcement authority;</text> </paragraph> <paragraph num="(2)"> <text>The child’s parent or legal guardian;</text> </paragraph> <paragraph num="(3)"> <text>The placing agency; and</text> </paragraph> <paragraph num="(4)"> <text>The licensing agency.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Admission, Individual Plan of Care, Behavior Intervention Plan, and Discharge."> <paragraph num="A."> <text>General Requirements.</text> <paragraph num="(1)"> <text>The licensee shall have and follow written policies regarding:</text> <paragraph num="(a)"> <text>Admission;</text> </paragraph> <paragraph num="(b)"> <text>Individual plan of care;</text> </paragraph> <paragraph num="(c)"> <text>Behavior intervention plan;</text> </paragraph> <paragraph num="(d)"> <text>Behavior support services; and</text> </paragraph> <paragraph num="(e)"> <text>Discharge.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee shall form a team comprised of at least the following individuals to participate in the:</text> <paragraph num="(a)"> <text>Admission process:</text> <paragraph num="(i)"> <text>A representative designated by the placing agency;</text> </paragraph> <paragraph num="(ii)"> <text>Program staff responsible for the care and supervision of the child;</text> </paragraph> <paragraph num="(iii)"> <text>Unless clearly inappropriate, the child; and</text> </paragraph> <paragraph num="(iv)"> <text>If appropriate, the child’s parent or legal guardian; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Development of the individual plan of care and the discharge plan:</text> <paragraph num="(i)"> <text>A representative designated by the placing agency;</text> </paragraph> <paragraph num="(ii)"> <text>A human service professional from the program considering the admission;</text> </paragraph> <paragraph num="(iii)"> <text>Program staff responsible for the care and supervision of the child;</text> </paragraph> <paragraph num="(iv)"> <text>The child’s parent or legal guardian, if consistent with the child’s permanency plan; and</text> </paragraph> <paragraph num="(v)"> <text>Unless clearly inappropriate, the child.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Each team shall:</text> <paragraph num="(a)"> <text>Document those present and participating; and</text> </paragraph> <paragraph num="(b)"> <text>Indicate in the individual case record the reason, if known, why an invited individual did not attend.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Admission.</text> <paragraph num="(1)"> <text>The licensee shall include in its admission policy a:</text> <paragraph num="(a)"> <text>Statement of nondiscrimination consistent with Title VII of the Civil Rights Act and State Government Article, Title 20, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Provision for an assessment to determine the child’s needs and the licensee’s ability to meet them; and</text> </paragraph> <paragraph num="(c)"> <text>Method for notifying, when appropriate, a child’s parent or legal guardian if the child is self-admitted.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The licensee may not admit a child referred by an out-of-State placing agency without documentation that the agency has initiated actions to abide by any applicable interstate compact.</text> </paragraph> <paragraph num="(3)"> <text>The licensee may not admit into care:</text> <paragraph num="(a)"> <text>More children than the number specified in its license;</text> </paragraph> <paragraph num="(b)"> <text>Children outside of the age range specified in the license; or</text> </paragraph> <paragraph num="(c)"> <text>Children not of the gender specified in the license.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>In order to admit a child whose characteristics and needs do not fit the profile approved by the licensing agency, the licensee shall document that it has:</text> <paragraph num="(a)"> <text>Obtained oral permission from the licensing agency before the child's admission; and</text> </paragraph> <paragraph num="(b)"> <text>Requested written documentation of the licensing agency’s permission within 5 days of the child’s placement, which describes:</text> <paragraph num="(i)"> <text>The reasons for the placement; and</text> </paragraph> <paragraph num="(ii)"> <text>How the program will ensure adequate and appropriate care for the child.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>Except for emergency placements, the licensee shall admit a child only upon receipt of at least:</text> <paragraph num="(a)"> <text>A social history or predisposition report, to include any history of abuse or neglect;</text> </paragraph> <paragraph num="(b)"> <text>A health history that is not older than 6 months, including, if applicable, a list of currently prescribed medications;</text> </paragraph> <paragraph num="(c)"> <text>A mental health screening report that:</text> <paragraph num="(i)"> <text>Includes screening for the child's risk of suicide; and</text> </paragraph> <paragraph num="(ii)"> <text>Was completed in less than 72 hours before the child's placement;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>An educational history;</text> </paragraph> <paragraph num="(e)"> <text>Medical insurance documentation;</text> </paragraph> <paragraph num="(f)"> <text>If required by federal or State law, any psychological, psychiatric, or developmental assessment that is not older than 12 months;</text> </paragraph> <paragraph num="(g)"> <text>Emergency telephone numbers to contact the child’s parent or legal guardian;</text> </paragraph> <paragraph num="(h)"> <text>If applicable, a document that specifies a guardian or custodian of the child other than the biological parent;</text> </paragraph> <paragraph num="(i)"> <text>The child's permanency plan;</text> </paragraph> <paragraph num="(j)"> <text>Authorizations necessary for providing care, including:</text> <paragraph num="(i)"> <text>Medical, dental, and behavioral health authorizations for routine and emergency care;</text> </paragraph> <paragraph num="(ii)"> <text>Any applicable court order or master's recommendation; and</text> </paragraph> <paragraph num="(iii)"> <text>Applicable non-court order for shelter care.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(6)"> <text>For emergency placements, the licensee and the placing agency shall ensure that the licensee receives the documents specified in §§A, B, and C of this regulation within 24 hours of the child's placement.</text> </paragraph> <paragraph num="(7)"> <text>If it has the discretion to refuse to admit a child referred by the placing agency, the licensee shall process each referral promptly and submit to the placing agency its decision on the referral within 10 days after receipt.</text> </paragraph> <paragraph num="(8)"> <text>The licensee shall:</text> <paragraph num="(a)"> <text>Examine each child upon admission;</text> </paragraph> <paragraph num="(b)"> <text>Document in the child's individual case record any illness, fever, rash, bruise, or injury; and</text> </paragraph> <paragraph num="(c)"> <text>Take appropriate action as necessary.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>Within 3 days after admission, the licensee shall include in a child’s individual case record:</text> <paragraph num="(a)"> <text>A preliminary, individualized assessment of the child’s needs performed by a human service professional;</text> </paragraph> <paragraph num="(b)"> <text>A safe environment plan; and</text> </paragraph> <paragraph num="(c)"> <text>Any document listed in §B(4) of this regulation not received before the child’s placement.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Individual Plan of Care. The licensee shall require the team convened pursuant to §A(2)(b) of this regulation:</text> <paragraph num="(1)"> <text>To develop for each child, within 30 days after admission, an individual plan of care that includes:</text> <paragraph num="(a)"> <text>An evaluation that meets the requirements of the Early and Periodic Screening, Diagnosis and Treatment program;</text> </paragraph> <paragraph num="(b)"> <text>If appropriate, a behavior intervention plan as defined in §D of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Measurable objectives with time frames leading to the achievement of goals;</text> </paragraph> <paragraph num="(d)"> <text>Implementation dates and strategies;</text> </paragraph> <paragraph num="(e)"> <text>Individuals responsible for providing the supports, services, implementation, and monitoring of the plan;</text> </paragraph> <paragraph num="(f)"> <text>Documentation indicating whether or not the child and parent or legal guardian agree with the plan;</text> </paragraph> <paragraph num="(g)"> <text>Education, including special education and related services to implement the individualized education program of a student as required under the Individuals With Disabilities Education Act;</text> </paragraph> <paragraph num="(h)"> <text>Family relationship;</text> </paragraph> <paragraph num="(i)"> <text>Health care;</text> </paragraph> <paragraph num="(j)"> <text>Life skills development;</text> </paragraph> <paragraph num="(k)"> <text>Personal, emotional, and social development;</text> </paragraph> <paragraph num="(l)"> <text>Recreation plan;</text> </paragraph> <paragraph num="(m)"> <text>Vocational training;</text> </paragraph> <paragraph num="(n)"> <text>The placing agency’s permanency plan; and</text> </paragraph> <paragraph num="(o)"> <text>Other areas as appropriate; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>To execute the:</text> <paragraph num="(a)"> <text>Review and update of every child’s individual plan of care at least every 90 days;</text> </paragraph> <paragraph num="(b)"> <text>Modification of the individual plan of care as required by the child’s needs, interests, and circumstances; and</text> </paragraph> <paragraph num="(c)"> <text>Documentation of monthly progress toward achievement of goals and estimated length of stay.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Behavior Plan.</text> <paragraph num="(1)"> <text>The licensee shall have a comprehensive written policy that identifies the process by which a behavior intervention plan is determined to be appropriate.</text> </paragraph> <paragraph num="(2)"> <text>The licensee shall ensure that a behavior intervention plan is developed for each child for whom it is appropriate that includes:</text> <paragraph num="(a)"> <text>An assessment of each challenging behavior as identified in the individual plan of care;</text> </paragraph> <paragraph num="(b)"> <text>A description of the function of current behaviors including their frequency and severity;</text> </paragraph> <paragraph num="(c)"> <text>The behavioral objectives for the child including:</text> <paragraph num="(i)"> <text>Criteria for determining achievement of the objectives established;</text> </paragraph> <paragraph num="(ii)"> <text>A description of the adaptive skills to be learned by a child that serve as alternatives to behaviors that present a danger to self or serious bodily harm to others;</text> </paragraph> <paragraph num="(iii)"> <text>A description of the adaptive skills to be learned by a child that serve as functional alternatives to the challenging behavior or behaviors to be decreased;</text> </paragraph> <paragraph num="(iv)"> <text>Identification of the individual or individuals responsible for monitoring the behavior intervention plan;</text> </paragraph> <paragraph num="(v)"> <text>The data to be collected to assess progress towards meeting the behavior intervention plan’s objectives;</text> </paragraph> <paragraph num="(vi)"> <text>Documentation for the use of physical restraint, the reason for its use, and the length of time used; and</text> </paragraph> <paragraph num="(vii)"> <text>For licensees of the Maryland Department of Health, documentation for the use of mechanical restraint, the reason for its use, and the length of time used;</text> </paragraph> </paragraph> <paragraph num="(d)"> <text>Take into account the medical condition of the child; and</text> </paragraph> <paragraph num="(e)"> <text>Describe the treatment techniques and when the techniques are to be used.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Before implementation, the licensee shall ensure that each behavior intervention plan that includes the use of restraints includes the written informed consent of:</text> <paragraph num="(a)"> <text>The child, when appropriate;</text> </paragraph> <paragraph num="(b)"> <text>The child’s parent or legal guardian, when appropriate; and</text> </paragraph> <paragraph num="(c)"> <text>The placing agency’s designee.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the program is licensed to serve children with developmental disabilities, each behavior intervention plan that includes the use of restraints shall be approved by the standing committee established under COMAR 14.31.07.08 before the plan’s implementation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Behavior Support Services.</text> <paragraph num="(1)"> <text>A licensee who contracts for behavior support services as determined by the behavior intervention plan shall ensure that its contractor:</text> <paragraph num="(a)"> <text>Meets the requirements of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Is knowledgeable about the licensing agency's service delivery system.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Behavior support services may include:</text> <paragraph num="(a)"> <text>Behavioral consultation;</text> </paragraph> <paragraph num="(b)"> <text>Temporary augmentation of staff;</text> </paragraph> <paragraph num="(c)"> <text>Behavioral training; and</text> </paragraph> <paragraph num="(d)"> <text>Behavioral respite services.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In addition to the training requirements in COMAR 10.22.02.10—.11 for licensees of the Maryland Department of Health and the training and requirements of this chapter, the licensee shall ensure that staff who provide behavior support services, before being assigned independent duties, receive training in the:</text> <paragraph num="(a)"> <text>Principles of behavioral change; and</text> </paragraph> <paragraph num="(b)"> <text>Use of a specific behavior management technique as outlined in the child’s behavior intervention plan.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Discharge.</text> <paragraph num="(1)"> <text>For planned discharges, the licensee shall:</text> <paragraph num="(a)"> <text>Except for emergency shelter placement, and at least 30 days before a planned discharge, prepare a discharge plan which includes:</text> <paragraph num="(i)"> <text>The name, address, telephone number, and relationship of the individual with whom the child will be residing upon discharge;</text> </paragraph> <paragraph num="(ii)"> <text>A statement of unmet identified and continuing needs including but not limited to behavioral and somatic health, education, family and peer relationships, employment, behavior, medications, and recommendation for follow-up treatment; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Within 30 calendar days after discharge, submit to the placing agency a discharge summary which includes:</text> <paragraph num="(i)"> <text>A final summary of the child’s performance in the program;</text> </paragraph> <paragraph num="(ii)"> <text>A summary of the child’s health, dental, optical, and behavioral health records; and</text> </paragraph> <paragraph num="(iii)"> <text>A summary of services provided to the child, including behavioral and somatic health, education, family and peer relationships, employment, behavior, medications, and recommendation for follow-up treatment.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>For unplanned discharges, the licensee shall:</text> <paragraph num="(a)"> <text>Provide at least 72 hours’ notice to the placing agency unless there is imminent risk of harm to self or others;</text> </paragraph> <paragraph num="(b)"> <text>At the time of discharge, provide to the placement agency a discharge plan which includes:</text> <paragraph num="(i)"> <text>Specific details of the reason for discharge; and</text> </paragraph> <paragraph num="(ii)"> <text>A statement of unmet and continuing needs; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Within 30 calendar days after discharge, submit to the placing agency a discharge summary which includes:</text> <paragraph num="(i)"> <text>A final summary of the child’s performance in the program;</text> </paragraph> <paragraph num="(ii)"> <text>A final summary of the child’s medical, dental, optical, and behavioral health records; and</text> </paragraph> <paragraph num="(iii)"> <text>A summary of services provided to the child.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Reports and Records."> <paragraph num="A."> <text>General Requirements. The licensee shall:</text> <paragraph num="(1)"> <text>Submit reports and maintain records as directed by the licensing and contracting agencies in order to ensure compliance with these regulations and other federal and State laws; and</text> </paragraph> <paragraph num="(2)"> <text>Comply with requirements for incident reporting as specified by the licensing and contracting agencies.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Confidentiality of Records. The licensee shall:</text> <paragraph num="(1)"> <text>Have and follow written procedures for the maintenance and security of individual case records and health records in accordance with State and federal law, which include:</text> <paragraph num="(a)"> <text>The identity of the staff persons responsible for the custody and maintenance of the records;</text> </paragraph> <paragraph num="(b)"> <text>A prohibition on the release of records except in accordance with law or contractual obligation; and</text> </paragraph> <paragraph num="(c)"> <text>A notice that employees may not disclose or knowingly permit the disclosure of any information concerning the child or the child’s family to any unauthorized person;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Destroy records, in accordance with timelines established by State and federal law, in a manner that will preserve their confidentiality; and</text> </paragraph> <paragraph num="(3)"> <text>Ensure that if the program’s parent corporation dissolves, its individual case records concerning children served by the program are given to the placing agency.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Record Maintenance. The licensee shall:</text> <paragraph num="(1)"> <text>Maintain a register of the children currently in the program which includes the child's:</text> <paragraph num="(a)"> <text>Name;</text> </paragraph> <paragraph num="(b)"> <text>Sex;</text> </paragraph> <paragraph num="(c)"> <text>Date of birth;</text> </paragraph> <paragraph num="(d)"> <text>Placing agency; and</text> </paragraph> <paragraph num="(e)"> <text>Dates of admission and anticipated discharge;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Retain for the later of 5 years after discharge of a child, or 3 years after the child becomes 18 years old, individual case records;</text> </paragraph> <paragraph num="(3)"> <text>Retain financial records for at least 6 years from the date of their creation or after any contract with the State terminates; and</text> </paragraph> <paragraph num="(4)"> <text>Protect all documents against fire damage, theft, and unauthorized disclosure.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Program Planning, Evaluation, and Quality Improvement."> <paragraph num="A."> <text>Program Planning and Evaluation. The licensee shall have a formal process for program planning and evaluation which includes at least:</text> <paragraph num="(1)"> <text>A clearly stated written mission for the program approved by the board of directors;</text> </paragraph> <paragraph num="(2)"> <text>A set of measurable goals and objectives which is based upon the mission, program, population served, and State-mandated outcome measures;</text> </paragraph> <paragraph num="(3)"> <text>A periodic review of achievement of goals and objectives; and</text> </paragraph> <paragraph num="(4)"> <text>A correction plan approved by the Board for unmet goals.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Program Quality Improvement. The licensee shall:</text> <paragraph num="(1)"> <text>Develop and implement an ongoing quality improvement plan; and</text> </paragraph> <paragraph num="(2)"> <text>Annually review and evaluate the quality and effectiveness of the services provided.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§8-301—8-303 and 8-401—8-417; Family Law Article, §§5-506, 5-508—5-510;Health-General Article, §§2-104, 7-904, 8-404, 10-922, and 10-924; Health Occupations Article, §20-302;Human Services Article, §§2-209, 2-212, 9-203, 9-204, 9-221, 9-231, 9-234, and 9-235; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 22, 2004 (31:23 Md. R. 1651)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.07 revised and recodified to COMAR 14.31.06 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 24, 2005 (32:23 Md. R. 1828)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective May 19, 2008 (35:10 Md. R. 973); June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective May 19, 2008 (35:10 Md. R. 973); June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05E amended effective April 13, 2015 (42:7 Md. R. 571)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A amended effective May 19, 2008 (35:10 Md. R. 973)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09A amended effective May 19, 2008 (35:10 Md. R. 973)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 repealed and new Regulation .15 adopted effective May 19, 2008 (35:10 Md. R. 973)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17 amended effective August 4, 2014 (41:15 Md. R. 892)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18 amended effective June 10, 2013 (40:11 Md. R. 975); August 4, 2014 (41:15 Md. R. 892)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18A amended effective May 19, 2008 (35:10 Md. R. 973)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended effective June 10, 2013 (40:11 Md. R. 975)</annotation> </annotations> </chapter> <chapter num="07" heading="Specialized Licensing Standards"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of this chapter is to establish specialized licensing and monitoring standards that supplement or alter the core licensing standards of COMAR 14.31.05 and 14.31.06 for particular types of residential child care programs.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>This chapter contains specialized licensing standards for the following types of residential child care programs:</text> <paragraph num="A."> <text>State-operated residential educational facilities;</text> </paragraph> <paragraph num="B."> <text>Secure care programs;</text> </paragraph> <paragraph num="C."> <text>Wilderness programs;</text> </paragraph> <paragraph num="D."> <text>Programs for medically fragile children;</text> </paragraph> <paragraph num="E."> <text>Programs for children with developmental disabilities;</text> </paragraph> <paragraph num="F."> <text>Shelter care programs;</text> </paragraph> <paragraph num="G."> <text>Programs for pregnant adolescents;</text> </paragraph> <paragraph num="H."> <text>Mother-infant programs;</text> </paragraph> <paragraph num="I."> <text>Therapeutic group homes;</text> </paragraph> <paragraph num="J."> <text>Community mental health programs providing residential crisis services; and</text> </paragraph> <paragraph num="K."> <text>Community mental health programs providing respite care services.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the definitions in COMAR 14.31.05 and 14.31.06 apply, and the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Developmental Disabilities Administration” means the Developmental Disabilities Administration of the Maryland Department of Health.</text> </paragraph> <paragraph num="(2)"> <text>“Infant” means a child younger than 24 months old.</text> </paragraph> <paragraph num="(3)"> <text>“Locked door isolation” means the involuntary restriction of a child from others for a period of time to a designated area from which the child may not leave, for the purpose of providing the child with an opportunity to gain behavioral control.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="State-Operated Residential Educational Facilities."> <paragraph num="A."> <text>Scope. This regulation applies only to the Maryland School for the Deaf and the Maryland School for the Blind.</text> </paragraph> <paragraph num="B."> <text>Applicable Core Regulations. The standards for residential child care programs established in COMAR 14.31.05 apply to residential educational facilities only to the extent that they are specifically referenced in §§D—F of this regulation.</text> </paragraph> <paragraph num="C."> <text>Licensing and Monitoring.</text> <paragraph num="(1)"> <text>Licensing Agency.</text> <paragraph num="(a)"> <text>The Department of Human Services is the licensing agency for residential education facilities.</text> </paragraph> <paragraph num="(b)"> <text>A residential educational facility may request a variance or waiver of the provisions listed in this subsection by filing a request for variance or waiver under COMAR 14.31.05.13.</text> </paragraph> <paragraph num="(c)"> <text>Residential educational facilities shall be monitored and evaluated as provided in COMAR 14.31.05.07 —.09 only with respect to the standards set out in §§D—F of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The governance and operation of residential educational facilities shall otherwise be regulated under the provisions of Education Article, §8-301 et seq., Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Licensing Standards. Employees of residential education facilities who provide supervision for children when the children are not attending school shall provide the licensee with documentation of:</text> <paragraph num="(1)"> <text>An annual screening for tuberculosis administered by the Mantoux method or current Centers for Disease Control and Prevention standard with an analysis of results or, for those staff members whose results were positive, an annual medication certification that the staff member presents no symptoms of active tuberculosis;</text> </paragraph> <paragraph num="(2)"> <text>A copy of current cardiopulmonary resuscitation certification;</text> </paragraph> <paragraph num="(3)"> <text>A written statement of medical examination by a licensed physician, made at the time of the staff member's employment, certifying that the physician has examined the staff member and found nothing in the individual's general, physical, or emotional condition which would endanger the health and well-being of children;</text> </paragraph> <paragraph num="(4)"> <text>Request for criminal background check and copy of outcome upon receipt; and</text> </paragraph> <paragraph num="(5)"> <text>Protective services clearance from the appropriate department of social services.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Licensee Documentation. The licensee shall provide the licensing agency annually with documentation of:</text> <paragraph num="(1)"> <text>On-site fire inspections by the local fire department;</text> </paragraph> <paragraph num="(2)"> <text>On-site health inspections by the local health department; and</text> </paragraph> <paragraph num="(3)"> <text>Weekly menus approved by an individual licensed by the State to practice dietetics.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Child Abuse and Neglect Reporting. The licensee shall provide the licensing agency with:</text> <paragraph num="(1)"> <text>A written procedure for reporting child abuse or neglect;</text> </paragraph> <paragraph num="(2)"> <text>A verbal report of any suspected child abuse or neglect within 1 hour of the suspected abuse or neglect;</text> </paragraph> <paragraph num="(3)"> <text>A written report within 24 hours of the suspected abuse or neglect; and</text> </paragraph> <paragraph num="(4)"> <text>A written incident report within 24 hours of any incident which threatens the life, health, or general well being of a child in care.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Secure Care Programs."> <paragraph num="A."> <text>Licensing Requirements. In addition to the requirements set out in this regulation, a licensee that provides secure care shall also meet the requirements of COMAR 14.31.05 and 14.31.06.</text> </paragraph> <paragraph num="B."> <text>Security. In order to have a license as a secure care program, a licensee shall:</text> <paragraph num="(1)"> <text>Be licensed by the Department of Juvenile Services;</text> </paragraph> <paragraph num="(2)"> <text>Identify in its application for licensure the specific security measures to be used by the program and demonstrate that the measures are necessary in order to provide care for the children to be served by the applicant;</text> </paragraph> <paragraph num="(3)"> <text>Structure the physical plant so that it has:</text> <paragraph num="(a)"> <text>A 24-hour control center for monitoring and coordinating its security, safety, and communication systems;</text> </paragraph> <paragraph num="(b)"> <text>A perimeter that can retain the children within it and prevent unauthorized access into it; and</text> </paragraph> <paragraph num="(c)"> <text>Doors that open out from any room used by children;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Assign and deploy staff so that the children are visually supervised and staff are able to respond immediately to emergencies;</text> </paragraph> <paragraph num="(5)"> <text>Open mail addressed to a child in front of the child to check for contraband;</text> </paragraph> <paragraph num="(6)"> <text>Inspect:</text> <paragraph num="(a)"> <text>On a weekly basis:</text> <paragraph num="(i)"> <text>The operation of all security devices; and</text> </paragraph> <paragraph num="(ii)"> <text>For the presence of contraband; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>On a daily basis, all areas occupied by the children; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>Document all inspections and immediately correct all problems or defects found during the inspections.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Restraints. The licensee:</text> <paragraph num="(1)"> <text>May use restraints on children only in conformity with this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Shall have and follow a written policy on the use of restraints that:</text> <paragraph num="(a)"> <text>Identifies the type of restraints used by the licensee;</text> </paragraph> <paragraph num="(b)"> <text>Specifies the criteria for the use of each type of restraint and that the staff authorizes approval and use of each type; and</text> </paragraph> <paragraph num="(c)"> <text>Establishes procedures for the:</text> <paragraph num="(i)"> <text>Monitoring and supervision of children in restraints;</text> </paragraph> <paragraph num="(ii)"> <text>Immediate review of the use of restraints; and</text> </paragraph> <paragraph num="(iii)"> <text>Documentation of each use of restraints;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>Shall prohibit the use of restraint in any manner that causes the child physical pain or undue anxiety; and</text> </paragraph> <paragraph num="(4)"> <text>Shall train staff upon employment and annually after that in the proper use of restraint.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Locked-Door Isolation.</text> <paragraph num="(1)"> <text>A licensee may place a child in locked-door isolation only if:</text> <paragraph num="(a)"> <text>Locked-door isolation is clearly necessary to prevent imminent physical harm to the child or other individuals; and</text> </paragraph> <paragraph num="(b)"> <text>Less restrictive methods of behavior control have failed or cannot reasonably be implemented.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A licensee shall have and follow written procedures for the use of locked-door isolation that identify the staff authorized to approve the use of locked-door isolation.</text> </paragraph> <paragraph num="(3)"> <text>A licensee shall ensure that a child placed in locked-door isolation:</text> <paragraph num="(a)"> <text>Does not possess belts, matches, weapons, or other objects or materials that might be used to inflict self-injury;</text> </paragraph> <paragraph num="(b)"> <text>Does not present imminent danger to self or others;</text> </paragraph> <paragraph num="(c)"> <text>Is offered 1 hour of large muscle activity every 24 hours that takes place out-of-room and, weather permitting, out-of-doors;</text> </paragraph> <paragraph num="(d)"> <text>Has all reasonable personal physical needs met;</text> </paragraph> <paragraph num="(e)"> <text>Receives all scheduled meals and snacks on time; and</text> </paragraph> <paragraph num="(f)"> <text>Is granted prompt access to bathroom facilities.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Staff shall monitor a child in locked-door isolation by:</text> <paragraph num="(a)"> <text>Maintaining auditory contact with the child at all times;</text> </paragraph> <paragraph num="(b)"> <text>Making visual contact with the child every 10 minutes; and</text> </paragraph> <paragraph num="(c)"> <text>Recording each contact with the child in a permanently bound logbook.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The licensee shall ensure that a room used for locked-door isolation is designed and constructed to safeguard the health, safety, and well-being of children.</text> </paragraph> <paragraph num="(6)"> <text>The room used for locked door isolation shall have:</text> <paragraph num="(a)"> <text>An area of at least 60 square feet;</text> </paragraph> <paragraph num="(b)"> <text>A tamper-proof ceiling light fixture with a minimum of a 75-watt bulb;</text> </paragraph> <paragraph num="(c)"> <text>A door with a window that is impact-resistant, shatterproof, and mounted to allow inspection of the entire room;</text> </paragraph> <paragraph num="(d)"> <text>Adequate ventilation; and</text> </paragraph> <paragraph num="(e)"> <text>Equipment and fixtures that are designed and maintained in a manner to prevent their use in an attempted suicide.</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>In order for a child to be held in locked-door isolation for longer than 30 minutes during a 12-hour period, the program administrator shall:</text> <paragraph num="(a)"> <text>Approve the locked-door isolation every 2 hours;</text> </paragraph> <paragraph num="(b)"> <text>Obtain for the child every 2 hours an examination by a physician or nurse;</text> </paragraph> <paragraph num="(c)"> <text>Notify the placing agency and the child's parent if the locked-door isolation continues for more than 8 hours; and</text> </paragraph> <paragraph num="(d)"> <text>Remove a child from locked-door isolation after 72 hours.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Wilderness Programs."> <paragraph num="A."> <text>Additional Requirements.</text> <paragraph num="(1)"> <text>In addition to the requirements set forth in COMAR 14.31.05 and 14.31.06, a licensee shall ensure that a wilderness program also meets the requirements of this regulation.</text> </paragraph> <paragraph num="(2)"> <text>With the exception of §§B and C of this regulation, the requirements of COMAR 14.31.06.07 are not applicable to wilderness programs.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Living Environment. The living environment, including all sleeping and food preparation, and personal hygiene facilities, of a wilderness program shall:</text> <paragraph num="(1)"> <text>Be well drained and free from depressions in which water may stagnate;</text> </paragraph> <paragraph num="(2)"> <text>Be free from noxious plants and uncontrolled weeds or brush; and</text> </paragraph> <paragraph num="(3)"> <text>Have an approved sanitary landfill or similar disposal facility for solid wastes that is not subject to inundation by flooding.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The licensee shall ensure that every wilderness site has available an adequate supply of potable water.</text> </paragraph> <paragraph num="D."> <text>Food Preparation and Storage.</text> <paragraph num="(1)"> <text>If food is prepared at a central dining building, the licensee shall meet the requirements set out in COMAR 14.31.06.07 for kitchens.</text> </paragraph> <paragraph num="(2)"> <text>If food is prepared away from a central dining building, the licensee shall:</text> <paragraph num="(a)"> <text>Store food in a manner that deters spoilage and contamination;</text> </paragraph> <paragraph num="(b)"> <text>Ensure that perishable food stored in ice chests is:</text> <paragraph num="(i)"> <text>Maintained at a refrigerated temperature; and</text> </paragraph> <paragraph num="(ii)"> <text>Is not stored in an ice chest for more than 24 hours;</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>Ensure that all surfaces that come in contact with food are clean and, when preparing meat products and other foods, not sources of cross contamination; and</text> </paragraph> <paragraph num="(d)"> <text>Clean thoroughly and store all dishes, cooking, and eating utensils in a manner to avoid contamination.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>Toilet and Personal Hygiene Facilities.</text> <paragraph num="(1)"> <text>If a water supply is not available, the licensee shall provide sanitary type privies, or portable toilets, that meet local or State health department standards.</text> </paragraph> <paragraph num="(2)"> <text>The licensee shall maintain all toilet and personal hygiene areas in a sanitary manner to eliminate health or pollution hazards.</text> </paragraph> <paragraph num="(3)"> <text>The licensee shall locate privies at least 150 feet from a stream, lake, or well and at least 75 feet from a sleeping area.</text> </paragraph> <paragraph num="(4)"> <text>At sites not equipped with a permanent toilet facility, the licensee shall provide at least one privy or portable toilet for every 15 people.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Heating. The licensee shall install and ventilate heating stoves that use combustible fuel in a manner that prevents fire hazards and dangerous concentrations of gases.</text> </paragraph> <paragraph num="G."> <text>Sleeping Areas. The licensee shall use:</text> <paragraph num="(1)"> <text>Bedding that is adequate for protection and comfort in cold weather;</text> </paragraph> <paragraph num="(2)"> <text>Sleeping bags that are fiber-filled, fire retardant, and rated for 0°F;</text> </paragraph> <paragraph num="(3)"> <text>Mattresses and pillows that meet federal regulations; and</text> </paragraph> <paragraph num="(4)"> <text>Screening or mosquito nets in the children's personal sleeping areas.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Clothing. The licensee shall provide each child with an adequate supply of clean clothing, suitable for outdoor living and appropriate for weather conditions, and sturdy, water resistant outdoor shoes or boots.</text> </paragraph> <paragraph num="I."> <text>Fire Safety. The licensee shall equip each wilderness site with a fire extinguisher located not more than 75 feet from each combustible fuel heating device or campfire.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Programs for Medically Fragile Children."> <paragraph num="A."> <text>Additional Requirements. In addition to the requirements set out in COMAR 14.31.05 and 14.31.06, a program for medically fragile children also shall meet the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>Staff. The licensee shall:</text> <paragraph num="(1)"> <text>Ensure that a health care professional licensed to practice in the State trains child care staff, based on the individual needs of each child; and</text> </paragraph> <paragraph num="(2)"> <text>Obtain consultation services from a pediatric medical specialist for input on the placement of and ongoing care decisions regarding the children.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Physical Plant.</text> <paragraph num="(1)"> <text>If specialized equipment is necessary for a child, the licensee shall provide adequate square footage space in excess of the minimum standards otherwise required by COMAR 14.31.06.</text> </paragraph> <paragraph num="(2)"> <text>The licensee shall equip the physical plant with sufficient electrical service and outlets for assistive technology or special equipment.</text> </paragraph> <paragraph num="(3)"> <text>The licensee shall maintain a back-up generator for electrical outages and, if necessary, provide for emergency sources of heat.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Emergency Medical Plan. The licensee shall ensure that each child's individual service plan includes a child-specific emergency protocol that is immediately accessible to employees.</text> </paragraph> <paragraph num="E."> <text>Emergency Management Plan. As part of its emergency management plan, the licensee shall notify public utilities of the existence of the program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Programs for Children With Developmental Disabilities."> <paragraph num="A."> <text>Additional Requirements. In addition to the requirements set out in COMAR 14.31.05 and 14.31.06, a program for children with developmental disabilities also shall meet the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>Quality Assurance. The licensee shall conform to the quality assurance standards established in COMAR 10.22.02.14.</text> </paragraph> <paragraph num="C."> <text>Standing Committee. The licensee shall establish a standing committee or committees to:</text> <paragraph num="(1)"> <text>Perform the quality assurance functions set forth in COMAR 14.31.05;</text> </paragraph> <paragraph num="(2)"> <text>Review the licensee's protocol for identifying, reporting, documenting, investigating, and reviewing of incidents to ensure compliance with the licensing agency's procedures;</text> </paragraph> <paragraph num="(3)"> <text>Monitor implementation of the licensee's protocol identified in §C(2) of this regulation, including a review of all incidents in an effort to identify deficient practices and recommend necessary corrective action;</text> </paragraph> <paragraph num="(4)"> <text>Approve all behavior plans that use restrictive techniques to ensure that the behavior plan complies with the requirements of COMAR 10.22.10, 10.22.04.03A, and 14.31.05.15;</text> </paragraph> <paragraph num="(5)"> <text>Review, approve, and establish the time frame for the restriction of a right if it is not related to a challenging behavior, in accordance with COMAR 10.22.04.03A, or other requirements appropriate to the licensing agency;</text> </paragraph> <paragraph num="(6)"> <text>Review the licensee's policies and procedures and practices to ensure that they adequately protect the legal and human rights of each child served by the licensee; and</text> </paragraph> <paragraph num="(7)"> <text>Unless otherwise provided for, be organized to perform the functions set forth in §A of this regulation for one or more licensees.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Standing Committee Composition.</text> <paragraph num="(1)"> <text>For programs licensed by the Maryland Department of Health, the committee or committees shall include an equal number of licensee staff, and child proponents or members of the community who are not employed by the licensee. For a committee member who is remunerated only to serve as a member of the committee, that member is not counted as staff or as a member of the community.</text> </paragraph> <paragraph num="(2)"> <text>For programs serving children with developmental disabilities licensed by other licensing agencies, the committee shall be established in accord with the licensing agency's policy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Consultation. The committee or committees may consult with a licensed health professional such as a social worker, psychologist, physician, physician's assistant, nurse practitioner, or board-certified clinical pharmacist, as needed.</text> </paragraph> <paragraph num="F."> <text>Conflict of Interest. A committee member may not participate in the decision making process of any:</text> <paragraph num="(1)"> <text>Incident in which the committee member was involved; or</text> </paragraph> <paragraph num="(2)"> <text>Behavior plan that the committee member has developed.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Meetings. The committee or committees shall meet as needed to perform the functions identified in §E of this regulation, with at least a majority of members present.</text> </paragraph> <paragraph num="H."> <text>Confidentiality. The committee or committees shall ensure confidentiality of information regarding the child in accordance with Health-General Article, §7-1010, Annotated Code of Maryland, and COMAR 14.31.06.18.</text> </paragraph> <paragraph num="I."> <text>Use of Restraints. For licensees of the Maryland Department of Health, appropriate methods of preventing or managing challenging behaviors may include the use of mechanical restraints.</text> </paragraph> <paragraph num="J."> <text>Change in Licensure Status.</text> <paragraph num="(1)"> <text>A licensee may voluntarily surrender its license in accordance with COMAR 10.22.02.02F.</text> </paragraph> <paragraph num="(2)"> <text>A licensee wishing to open, close, or relocate a site shall meet the requirements of COMAR 14.31.05.05.</text> </paragraph> <paragraph num="(3)"> <text>If a licensee is required to open, close, or relocate a site due to an emergency and the notice requirements set forth in COMAR 14.31.05.09E cannot be met, the licensee shall notify the regional director who shall notify the licensing agency to ensure compliance with all relevant regulations.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Policies and Procedures. A licensee shall develop and adopt written policies and procedures in addition to those policies and procedures required in COMAR 14.31.06 to ensure:</text> <paragraph num="(1)"> <text>The fundamental rights of residents in accordance with Health-General Article, §7-1002, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Confidentiality for each individual in accordance with Health-General Article, §7-1010, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>The implementation of a grievance process with safeguards that protect against retaliatory actions for the filing of any grievance;</text> </paragraph> <paragraph num="(4)"> <text>The reporting and investigation of all incidents, including those involving life-threatening conditions, in accordance with the Developmental Disabilities Administration's procedures on reportable incidents;</text> </paragraph> <paragraph num="(5)"> <text>The administration of medications in accordance with the practices established by the curriculum of the Developmental Disabilities Administration on medication training;</text> </paragraph> <paragraph num="(6)"> <text>Compliance with COMAR 10.27.11;</text> </paragraph> <paragraph num="(7)"> <text>Assurance that, before a child is to be required to pay for property damage caused by the individual's actions, the child's individual plan shows evidence that:</text> <paragraph num="(a)"> <text>The child has a history of destructive behavior that has been documented in the child's behavior plan;</text> </paragraph> <paragraph num="(b)"> <text>The child has a behavior plan that addresses the destructive behavior;</text> </paragraph> <paragraph num="(c)"> <text>The child's family has the ability to pay for damages;</text> </paragraph> <paragraph num="(d)"> <text>The licensee's standing committee has reviewed and approved the damage payment; and</text> </paragraph> <paragraph num="(e)"> <text>The licensee has reported this approval to the regional director of the Developmental Disabilities Administration;</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Compliance with Health-General Article, §5-605, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(9)"> <text>The absence of a financial or personal conflict of interest for members of the governing body, staff, care providers, volunteers, and standing committee members in their work with the program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Shelter Care Programs."> <paragraph num="A."> <text>In addition to the requirements set out in COMAR 14.31.05 and 14.31.06, a licensee shall ensure a program that provides shelter care also meets the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>Requirements for Non-Agency Placements.</text> <paragraph num="(1)"> <text>If a person or entity other than an agency places a child in shelter care, the licensee shall seek authorization for the placement by:</text> <paragraph num="(a)"> <text>Moving, within 24 hours after admission, to acquire legal custody of the child; or</text> </paragraph> <paragraph num="(b)"> <text>Requesting the consent of the child's parent for the placement and for any routine or emergency medical, dental, or mental health care.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the licensee is unable to obtain consent, the licensee shall document the efforts made to obtain consent and the reasons for the failure.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The licensee shall ensure that a child newly admitted to shelter care receives timely health care, including:</text> <paragraph num="(1)"> <text>Within 24 hours of admission, an initial health screening by a medical care provider;</text> </paragraph> <paragraph num="(2)"> <text>Immediate treatment of any communicable disease or serious injury; and</text> </paragraph> <paragraph num="(3)"> <text>Within 30 days of admission, a comprehensive medical examination.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The licensee shall ensure the provision of appropriate educational services for all children placed in the facility in accordance with the requirements of COMAR 14.31.06.12A.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Pregnant Adolescents."> <paragraph num="A."> <text>In addition to the requirements set out in COMAR 14.31.05 and 14.31.06, a licensee shall ensure a program caring for pregnant adolescents also meets the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>A program caring for pregnant adolescents shall ensure that:</text> <paragraph num="(1)"> <text>All pregnant adolescents receive comprehensive prenatal care, including:</text> <paragraph num="(a)"> <text>A medical care program outlined by a licensed medical professional; and</text> </paragraph> <paragraph num="(b)"> <text>Participation in a child birth class provided by a qualified and competent childbirth educator.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Arrangements for the delivery of the child are made:</text> <paragraph num="(a)"> <text>By the end of the second trimester;</text> </paragraph> <paragraph num="(b)"> <text>In situations when the adolescent is already pregnant beyond the second trimester, upon admission to the facility; or</text> </paragraph> <paragraph num="(c)"> <text>Within 15 consecutive calendar days of the adolescent's admission to the facility.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Delivery arrangements are clearly recorded in the adolescent's medical record to which appropriate employees have access in an emergency;</text> </paragraph> <paragraph num="(4)"> <text>Pregnant adolescents receive a dental examination within 3 consecutive calendar months of admission, and that needed dental care is provided;</text> </paragraph> <paragraph num="(5)"> <text>Identification of pediatric services is provided at least 3 months before anticipated delivery; and</text> </paragraph> <paragraph num="(6)"> <text>Day care arrangements in an approved day care home or center are made.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Mother-Infant Programs."> <paragraph num="A."> <text>In addition to the requirements set out in COMAR 14.31.05 and 14.31.06, a licensee shall ensure a program that provides mother-infant services also meets the requirements of this regulation.</text> </paragraph> <paragraph num="B."> <text>A licensee may provide care and service for children who are mothers with an infant if:</text> <paragraph num="(1)"> <text>The licensing agency approves the program in writing;</text> </paragraph> <paragraph num="(2)"> <text>The licensee ensures that adolescents follow the advice of a licensed physician regarding the health care of the adolescent's child;</text> </paragraph> <paragraph num="(3)"> <text>The licensee provides the mother with:</text> <paragraph num="(a)"> <text>Sanitary space, a table, and plumbing necessary to change diapers;</text> </paragraph> <paragraph num="(b)"> <text>Competent instruction in the care and nurturing of infants;</text> </paragraph> <paragraph num="(c)"> <text>Limits on her social activities to ensure that she is responsible for her infant;</text> </paragraph> <paragraph num="(d)"> <text>Opportunity, encouragement, and structure for the completion of her education;</text> </paragraph> <paragraph num="(e)"> <text>Encouragement to develop her capacity for and understanding of her independence;</text> </paragraph> <paragraph num="(f)"> <text>Assurance that any child care center or home where the infant may be placed during daytime hours is licensed under State law;</text> </paragraph> <paragraph num="(g)"> <text>Professional guidance, training, and counseling in human sexuality; and</text> </paragraph> <paragraph num="(h)"> <text>A bed in a room separate from where the infant sleeps after the infant is 6 months old;</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The licensee assures that the infant is provided with:</text> <paragraph num="(a)"> <text>Protection from harm;</text> </paragraph> <paragraph num="(b)"> <text>Access to health care;</text> </paragraph> <paragraph num="(c)"> <text>Proper food and nutrition;</text> </paragraph> <paragraph num="(d)"> <text>Physical warmth and nurture;</text> </paragraph> <paragraph num="(e)"> <text>Protection from disease;</text> </paragraph> <paragraph num="(f)"> <text>Physical comfort;</text> </paragraph> <paragraph num="(g)"> <text>Proper sleeping environment in an appropriate crib;</text> </paragraph> <paragraph num="(h)"> <text>Appropriate feeding schedule;</text> </paragraph> <paragraph num="(i)"> <text>Regularly changed diapers in a sanitary environment;</text> </paragraph> <paragraph num="(j)"> <text>When the infant is 6 months old, a crib in a room separate from where the mother sleeps;</text> </paragraph> <paragraph num="(k)"> <text>Pediatric care in accordance with Early and Periodic Screening, Diagnosis, and Treatment schedules; and</text> </paragraph> <paragraph num="(l)"> <text>Required immunizations;</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The licensee ensures that direct care workers in this program:</text> <paragraph num="(a)"> <text>Receive 10 hours of training specific to infant care before assuming duties in a mother-infant program as part of the training requirements of COMAR 14.31.06; and</text> </paragraph> <paragraph num="(b)"> <text>Annually receive 15 hours of training specific to the mother-infant program as part of the training requirements of COMAR 14.31.06; and</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The program provides the licensing agency with a written policy regarding the care of an adolescent's child by another adolescent in residence in which the following conditions are met:</text> <paragraph num="(a)"> <text>The adolescent assumes care of no more than one other child in addition to her own at any time;</text> </paragraph> <paragraph num="(b)"> <text>The adolescents discuss the expectations of the caregiver, including:</text> <paragraph num="(i)"> <text>Duration of child care;</text> </paragraph> <paragraph num="(ii)"> <text>The child's nutritional and toileting needs; and</text> </paragraph> <paragraph num="(iii)"> <text>Any arrangements for compensation or exchange of baby-sitting; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>The arrangement is reviewed and approved by the program administrator or the program administrator's designee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Therapeutic Group Homes."> <paragraph num="A."> <text>A therapeutic group home shall meet the requirements of COMAR 14.31.05 and 14.31.06, with the following exceptions:</text> <paragraph num="(1)"> <text>COMAR 14.31.06.17B;</text> </paragraph> <paragraph num="(2)"> <text>COMAR 14.31.06.17C; and</text> </paragraph> <paragraph num="(3)"> <text>COMAR 14.31.06.17D.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A therapeutic group home shall also meet the requirements of the following regulations found in COMAR 10.21.07:</text> <paragraph num="(1)"> <text>COMAR 10.21.07.02;</text> </paragraph> <paragraph num="(2)"> <text>COMAR 10.21.07.03B;</text> </paragraph> <paragraph num="(3)"> <text>COMAR 10.21.07.05B;</text> </paragraph> <paragraph num="(4)"> <text>COMAR 10.21.07.05C;</text> </paragraph> <paragraph num="(5)"> <text>COMAR 10.21.07.06B;</text> </paragraph> <paragraph num="(6)"> <text>COMAR 10.21.07.07;</text> </paragraph> <paragraph num="(7)"> <text>COMAR 10.21.07.08A(1);</text> </paragraph> <paragraph num="(8)"> <text>COMAR 10.21.07.08C;</text> </paragraph> <paragraph num="(9)"> <text>COMAR 10.21.07.09;</text> </paragraph> <paragraph num="(10)"> <text>COMAR 10.21.07.10C;</text> </paragraph> <paragraph num="(11)"> <text>COMAR 10.21.07.11;</text> </paragraph> <paragraph num="(12)"> <text>COMAR 10.21.07.12;</text> </paragraph> <paragraph num="(13)"> <text>COMAR 10.21.07.13B;</text> </paragraph> <paragraph num="(14)"> <text>COMAR 10.21.07.14; and</text> </paragraph> <paragraph num="(15)"> <text>COMAR 10.21.07.17B.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Community Mental Health Programs Providing Residential Crisis Services."> <text>In addition to the requirements of COMAR 14.31.05 and 14.31.06, a community mental health program providing residential crisis services shall meet the requirements of COMAR 10.21.26.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Community Mental Health Programs Providing Respite Care Services."> <text>In addition to the requirements of COMAR 14.31.05 and 14.31.06, a community mental health program providing respite care services shall meet the requirements of COMAR 10.21.27.</text> </regulation> <annotations> <annotation type="Authority">Article 41, §§6-101 and 6-104; Article 83C, §§2-102, 2-104, 2-113, 2-120, and 2-123—2-125; Education Article, §§8-301—8-303; Family Law Article, §§5-506, 5-508, 5-509, 5-509.1, and 5-510; Health-General Article, §§2-104, 7-904, 8-404, 10-922, and 10-924; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 22, 2004 (31:23 Md. R. 1651)</annotation> <annotation type="History" subtype="Administrative History">COMAR 01.04.08 revised and recodified to COMAR 14.31.07 as an emergency provision effective June 30, 2005 (32:15 Md. R. 1314); revised and recodified permanently effective November 28, 2005 (32:23 Md. R. 1828)</annotation> </annotations> </chapter> <chapter num="08" heading="Eligibility and Prioritization for Services for Interagency Funds" reason="Repealed"> <annotations> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 adopted as an emergency provision effective September 17, 2007 (34:21 Md. R. 1911); adopted permanently effective October 8, 2007 (34:20 Md. R. 1741)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.09 repealed effective March 31, 2014 (41:6 Md. R. 381)</annotation> </annotations> </chapter> <chapter num="09" heading="Statement of Need"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of this chapter is to establish a process for developing and issuing a statement of need for residential child care programs licensed by the Department of Human Services or the Department of Juvenile Services.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>This chapter applies to the development and issuance of a statement of need for residential child care programs to be licensed by the Department of Human Services or the Department of Juvenile Services. This chapter also applies to the relocation of an existing or previously licensed residential child care program to another site and the expansion or increase in the number of placements of an existing residential child care program.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Agencies” means the Department of Human Services and the Department of Juvenile Services.</text> </paragraph> <paragraph num="(2)"> <text>“Expansion request” means the materials required by the Office submitted by a licensed provider that seeks to add additional beds to an existing facility, to expand the physical site or to duplicate a residential child care program in a new location.</text> </paragraph> <paragraph num="(3)"> <text>“Facility” means the physical premises where a residential child care program that is licensed by the Department of Human Services or the Department of Juvenile Services is operated.</text> </paragraph> <paragraph num="(4)"> <text>“Licensing” means the process undertaken by the Agencies to issue, suspend, revoke, or deny a license.</text> </paragraph> <paragraph num="(5)"> <text>“Office” means the Governor's Office for Children.</text> </paragraph> <paragraph num="(6)"> <text>“Proposal” means the materials required by the Office, submitted by a potential new provider or an established provider, to develop a new residential child care facility or program, or an expansion request.</text> </paragraph> <paragraph num="(7)"> <text>“Provider” means the operator of a residential child care program.</text> </paragraph> <paragraph num="(8)"> <text>“Residential child care program” means a program of care provided in a residential setting by a provider on a 24-hour basis, for longer than 24 hours, to a child or children, unless otherwise provided by State law. A residential child care program does not include any program licensed by Maryland Department of Health.</text> </paragraph> <paragraph num="(9)"> <text>“Statement of need” means an official certification of public need in a county or region issued by one of the Agencies for the location and/or establishment of a residential child care program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Statement of Need."> <paragraph num="A."> <text>A Statement of Need shall be issued by the Department of Human Services or the Department of Juvenile Services before:</text> <paragraph num="(1)"> <text>A prospective licensee may submit to the Office a proposal for a residential child care program in accordance with COMAR 14.31.02;</text> </paragraph> <paragraph num="(2)"> <text>An existing or previously licensed residential child care program is relocated to another site;</text> </paragraph> <paragraph num="(3)"> <text>The physical site of a residential child care program is expanded; or</text> </paragraph> <paragraph num="(4)"> <text>The number of placements in a residential child care program is increased.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In developing a statement of need, the Agencies shall:</text> <paragraph num="(1)"> <text>Consider needs identified in the State Resource Plan and the Interagency Strategic Plan;</text> </paragraph> <paragraph num="(2)"> <text>Consider the specialized mental, physical, and behavioral health and development needs of children in the county or region affected by the statement of need; and</text> </paragraph> <paragraph num="(3)"> <text>Give notice and an opportunity to comment on the proposed statement of need to stakeholders in the counties or regions affected by the statement of need, including:</text> <paragraph num="(a)"> <text>State and local child-serving agencies;</text> </paragraph> <paragraph num="(b)"> <text>Providers of residential and community-based services for children; and</text> </paragraph> <paragraph num="(c)"> <text>Children, parents, foster parents, and other guardians.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>When the need for a residential child care program is identified, the Agencies shall publish a notice of a statement of need in the Maryland Register.</text> </paragraph> <paragraph num="D."> <text>The statement of need shall include:</text> <paragraph num="(1)"> <text>Identification of the geographic area or areas of need, including the primary region or regions of residence of the children who will be placed in the facility;</text> </paragraph> <paragraph num="(2)"> <text>Identification of population to be served, including specialized mental, physical, behavioral health, and developmental needs of the children affected by the statement of need;</text> </paragraph> <paragraph num="(3)"> <text>Description of services that will be provided;</text> </paragraph> <paragraph num="(4)"> <text>Description of the current availability of the proposed services in the region or regions;</text> </paragraph> <paragraph num="(5)"> <text>Description of the actual or projected number of children who need the proposed services from the region or regions;</text> </paragraph> <paragraph num="(6)"> <text>Number of beds required;</text> </paragraph> <paragraph num="(7)"> <text>Description of the methodology used as the basis for the agency's calculations set forth in a manner that permits independent verification if requested;</text> </paragraph> <paragraph num="(8)"> <text>Date by which proposals must be submitted;</text> </paragraph> <paragraph num="(9)"> <text>Date by which beds must be available; and</text> </paragraph> <paragraph num="(10)"> <text>Selection criteria.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Proposals for a residential child care program must be submitted to the Office in accordance with COMAR 14.31.02 only in response to a published statement of need.</text> </paragraph> <paragraph num="F."> <text>The Agencies may not grant a license for a residential child care program unless a statement of need has been issued.</text> </paragraph> <paragraph num="G."> <text>The Agencies may not delegate their authority to issue a statement of need.</text> </paragraph> <paragraph num="H."> <text>The Agencies shall perform the licensure for a residential child care program in accordance with the applicable provisions of COMAR 14.31.05.</text> </paragraph> <paragraph num="I."> <text>The Agencies shall perform an evaluation of responses to requests for proposals, and selection of a contractor in accordance with the applicable provisions of COMAR 21.05.03 and other applicable statutes and regulations.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Disputes."> <paragraph num="A."> <text>When the licensing agency rejects a proposal submitted in response to a request for proposals issued in conjunction with a statement of need under this regulation, a provider has a right to protest the rejection to the licensing agency procurement officer under the protest provisions of COMAR 21.10.02.</text> </paragraph> <paragraph num="B."> <text>A provider has a right to a hearing under the licensing provisions of COMAR 14.31.05.10 when the licensing agency denies an application for a license under this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Human Services Article, §§2-209, 8-703.1, and 9-204, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 26, 2010 (37:15 Md. R. 1000)</annotation> </annotations> </chapter> </subtitle> <subtitle num="32" heading="State Labor Relations Board"> <chapter num="01" heading="General Provisions"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205 and 3-206, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.01 to 14.32.01 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04B amended effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective February 23, 2009 (36:4 Md. R. 355)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="02" heading="General Practice and Hearing Procedures"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205 and 3-206, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.02 to 14.32.02 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.22 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="03" heading="Bargaining Unit and Bargaining Representative Determination"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205 and 3-206, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.03 to 14.32.03 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Regulation .03F amended effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03G adopted effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="04" heading="Elections"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205 and 3-206, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.04 to 14.32.04 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.06 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="05" heading="Unfair Labor Practice Complaint Process"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205, 3-206, and 3-306, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.05 to 14.32.05 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 28, 2008 (35:15 Md. R. 1350)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective November 1, 2010 (37:22 Md. R. 1554)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.05 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="06" heading="Collective Bargaining, Negotiations, and Negotiability Disputes"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-206, 3-208, and 3-501, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.06 to 14.32.06 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective February 23, 2009 (36:4 Md. R. 355)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="07" heading="Mediation Procedures"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-206 and 3-208, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: February 13, 2006 (33:3 Md. R. 241)</annotation> <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 17.07.07 to 14.32.07 effective November 1, 2007</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="08" heading="Procedures Governing Employee Information"> <annotations> <annotation type="Authority">State Personnel and Pensions Article, §§3-205, 3-206, and 3-208, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 16, 2009 (36:23 Md. R. 1817)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> </subtitle> <subtitle num="33" heading="Department of Information Technology"> <chapter num="01" heading="Definitions and General Provisions"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This subtitle does not apply to changes relating to or the purchase, lease, or rental of information technology by:</text> <paragraph num="(1)"> <text>Public institutions of higher education solely for academic or research purposes;</text> </paragraph> <paragraph num="(2)"> <text>The Maryland Port Administration;</text> </paragraph> <paragraph num="(3)"> <text>The University System of Maryland;</text> </paragraph> <paragraph num="(4)"> <text>St. Mary's College of Maryland; or</text> </paragraph> <paragraph num="(5)"> <text>Morgan State University.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notwithstanding any other provision of law, except as provided in State Finance and Procurement Article, §3A-302(b), Annotated Code of Maryland, this subtitle applies to all units of the Executive Branch of State Government including public institutions of higher education other than Morgan State University, the University System of Maryland, and St. Mary's College of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Accessible” means:</text> <paragraph num="(a)"> <text>Easy to get to;</text> </paragraph> <paragraph num="(b)"> <text>Approachable; or</text> </paragraph> <paragraph num="(c)"> <text>Available.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Agency” means each unit of State government to which this subtitle is applicable in accordance with State Finance and Procurement Article, §3A-302, Annotated Code of Maryland, and Regulation .01 of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>“Application” means software designed to perform, or to help the user to perform, a specific task or tasks.</text> </paragraph> <paragraph num="(4)"> <text>“Assistive technology (AT)” means any item, piece of equipment, or product system, whether acquired commercially, modified, or customized, that is used to increase, maintain, or improve functional capabilities of individuals with disabilities.</text> </paragraph> <paragraph num="(5)"> <text>“Audio description”, “video description”, or “descriptive narration” means narration added to a soundtrack, usually during existing pauses in dialogue, to:</text> <paragraph num="(a)"> <text>Describe important visual details that cannot be understood from the main soundtrack alone;</text> </paragraph> <paragraph num="(b)"> <text>Inform individuals who are blind or who have low vision about visual content essential for comprehension;</text> </paragraph> <paragraph num="(c)"> <text>Provide information about actions, characters, scene changes, on-screen text, and other visual content; and</text> </paragraph> <paragraph num="(d)"> <text>Supplement the regular audio track of a program.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Authoring tool” means any software, or collection of software components, that can be used by authors, alone or collaboratively, to create or modify content for use by others, including other authors.</text> </paragraph> <paragraph num="(7)"> <text>Closed Functionality.</text> <paragraph num="(a)"> <text>“Closed functionality” means characteristics that limit functionality or prevent a user from attaching or installing assistive technology.</text> </paragraph> <paragraph num="(b)"> <text>“Closed functionality” includes self-service machines, information kiosks, set-top boxes, fax machines, calculators, and computers that are locked down so that users may not adjust settings due to a policy such as desktop core configuration.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Content” means electronic information and data, as well as the encoding that defines its structure, presentation, and interactions.</text> </paragraph> <paragraph num="(9)"> <text>“Department” means the Department of Information Technology.</text> </paragraph> <paragraph num="(10)"> <text>Document.</text> <paragraph num="(a)"> <text>“Document” means a logically distinct assembly of content (such as a file, set of files, or streamed media) that: Functions as a single entity rather than a collection; is not part of software; and does not include its own software to retrieve and present content for users.</text> </paragraph> <paragraph num="(b)"> <text>“Document” includes, but is not limited to, letters, email messages, spreadsheets, presentations, podcasts, images, and movies.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>Equivalent.</text> <paragraph num="(a)"> <text>“Equivalent” means fulfilling essentially the same function or purpose upon presentation to a user.</text> </paragraph> <paragraph num="(b)"> <text>“Equivalent” fulfills essentially the same function for a person with a disability utilizing reasonable accommodations to the extent possible, given the nature of the disability and the state of technology, as the primary content does for the person without a disability.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Existing ICT” means ICT that was procured, maintained, or used on or before January 18, 2018.</text> </paragraph> <paragraph num="(13)"> <text>“Hardware” means a tangible device, equipment, or a physical component of nonvisual ICT, such as telephones, computers, multifunction copy machines, and keyboards.</text> </paragraph> <paragraph num="(14)"> <text>“Information technology” has the meaning set forth in 40 U.S.C. 11101(6).</text> </paragraph> <paragraph num="(15)"> <text>Information and Communication Technology (ICT).</text> <paragraph num="(a)"> <text>“Information and communication technology (ICT)” means information technology and other equipment, systems, technologies, or processes for which the principal function is the creation, manipulation, storage, display, receipt, or transmission of electronic data and information, as well as any associated content.</text> </paragraph> <paragraph num="(b)"> <text>“Information and communication technology (ICT)” includes, but is not limited to:</text> <paragraph num="(i)"> <text>Computers and peripheral equipment;</text> </paragraph> <paragraph num="(ii)"> <text>Information kiosks and transaction machines;</text> </paragraph> <paragraph num="(iii)"> <text>Telecommunications equipment;</text> </paragraph> <paragraph num="(iv)"> <text>Customer premises equipment;</text> </paragraph> <paragraph num="(v)"> <text>Multifunction office machines;</text> </paragraph> <paragraph num="(vi)"> <text>Software;</text> </paragraph> <paragraph num="(vii)"> <text>Applications;</text> </paragraph> <paragraph num="(viii)"> <text>Websites;</text> </paragraph> <paragraph num="(ix)"> <text>Videos; and</text> </paragraph> <paragraph num="(x)"> <text>Electronic documents.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(16)"> <text>Keyboard.</text> <paragraph num="(a)"> <text>“Keyboard” means a set of systematically arranged alphanumeric keys or a control that generates alphanumeric input by which a machine or device is operated.</text> </paragraph> <paragraph num="(b)"> <text>“Keyboard” includes tactilely discernible keys used in conjunction with the alphanumeric keys if their function maps to keys on the keyboard interfaces.</text> </paragraph> </paragraph> <paragraph num="(17)"> <text>“Label” means text, or a component with a text alternative, that is presented to a user to identify content. A label is presented to all users, whereas a name may be hidden and only exposed by assistive technology. In many cases, the name and the label are the same.</text> </paragraph> <paragraph num="(18)"> <text>“Name” means text by which software can identify a component to the user. A name may be hidden and only exposed by assistive technology, whereas a label is presented to all users. In many cases, the label and the name are the same. Name is unrelated to the name attribute in HTML.</text> </paragraph> <paragraph num="(19)"> <text>“Nonweb software” means software that is not:</text> <paragraph num="(a)"> <text>A webpage;</text> </paragraph> <paragraph num="(b)"> <text>Embedded in a webpage; and</text> </paragraph> <paragraph num="(c)"> <text>Used in the rendering or functioning of webpages.</text> </paragraph> </paragraph> <paragraph num="(20)"> <text>“Nonvisual access” means the ability, through keyboard control, synthesized speech, braille, or other methods not requiring sight, to receive, use, and manipulate information, and operate controls necessary to access information technology.</text> </paragraph> <paragraph num="(21)"> <text>“Operable part” means the hardware-based user controls for activating, deactivating, or adjusting ICT.</text> </paragraph> <paragraph num="(22)"> <text>“Platform accessibility services” means the services provided by a platform enabling interoperability with assistive technology, including application programming interfaces (API) and the document object model (DOM).</text> </paragraph> <paragraph num="(23)"> <text>Platform Software.</text> <paragraph num="(a)"> <text>“Platform Software” means software that:</text> <paragraph num="(i)"> <text>Interacts with hardware or provides services for other software;</text> </paragraph> <paragraph num="(ii)"> <text>May run or host other software;</text> </paragraph> <paragraph num="(iii)"> <text>May isolate the other software from underlying software or hardware layers; and</text> </paragraph> <paragraph num="(iv)"> <text>May have both platform and nonplatform aspects.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Platform software” includes:</text> <paragraph num="(i)"> <text>Desktop operating systems;</text> </paragraph> <paragraph num="(ii)"> <text>Embedded operating systems, including mobile systems;</text> </paragraph> <paragraph num="(iii)"> <text>Web browsers;</text> </paragraph> <paragraph num="(iv)"> <text>Plug-ins to web browsers that render a particular media or format; and</text> </paragraph> <paragraph num="(v)"> <text>Sets of components that allow other applications to execute, such as applications which support macros or scripting.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(24)"> <text>“Programmatically determinable” means the ability to be determined by software from author-supplied data that is provided in a way that different user agents, including assistive technologies, can extract and present the information to users in different modalities.</text> </paragraph> <paragraph num="(25)"> <text>“Public facing” means the content made available by an agency to members of the general public, including, but not limited to, an agency web site, blog post, or social media page.</text> </paragraph> <paragraph num="(26)"> <text>“Software” means programs, procedures, rules, and related data and documentation that direct the use and operation of ICT and instruct it to perform a given task or function, including, but not limited to, applications, non-web software, and platform software.</text> </paragraph> <paragraph num="(27)"> <text>Software Tool.</text> <paragraph num="(a)"> <text>“Software tool” means software:</text> <paragraph num="(i)"> <text>For which the primary function is the development of other software;</text> </paragraph> <paragraph num="(ii)"> <text>That usually comes in the form of an integrated development environment (IDE); and</text> </paragraph> <paragraph num="(iii)"> <text>Is a suite of related products and utilities.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Software tool” includes Microsoft® Visual Studio®, Apple® Xcode®, and Eclipse Foundation Eclipse®.</text> </paragraph> </paragraph> <paragraph num="(28)"> <text>“Telecommunications” means the signal transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.</text> </paragraph> <paragraph num="(29)"> <text>“Terminal” means a device or software with which the end user directly interacts and that provides the user interface, including software that provides the user interface on more than one device such as a telephone and a server.</text> </paragraph> <paragraph num="(30)"> <text>"Text" means a sequence of characters that can be programmatically determined and that expresses something in human language.</text> </paragraph> <paragraph num="(31)"> <text>“Voice over Internet protocol (VoIP)” means technology that provides real-time voice communications and requires a broadband connection from the user's location and customer premises equipment compatible with Internet protocol.</text> </paragraph> <paragraph num="(32)"> <text>“Webpage” means a nonembedded resource obtained from a single universal resource identifier (URI) using hypertext transfer protocol (HTTP), plus any other resources that are provided for the rendering, retrieval, and presentation of content.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">State Finance and Procurement Article, §§3A-302, 3A-303, 3A-311, and 3A-312, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 1, 2005 (31:25 Md. R. 1791)</annotation> <annotation type="History" subtype="Administrative History">Recodified from COMAR 17.06.01 to 14.33.01 effective September 26, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective April 5, 2010 (37:7 Md. R. 575)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective April 5, 2010 (37:7 Md. R. 575); March 7, 2022 (49:5 Md. R. 366)</annotation> </annotations> </chapter> <chapter num="02" heading="Information and Communication Technology Nonvisual Access Standards"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <paragraph num="A."> <text>The purpose of this chapter is to implement State Finance and Procurement Article, §§3A-303(a)(5), 3A-311, and 3A-312, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>This chapter sets forth uniform nonvisual access standards to be used in the procurement of information and communication technology (ICT) and the provision of ICT services by or on behalf of agencies.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>This chapter applies to the procurement of ICT and the provision of ICT services by or on behalf of agencies, except if:</text> <paragraph num="(1)"> <text>The ICT is not available with nonvisual access because the essential elements of the information technology are visual and a nonvisual equivalent cannot be developed; or</text> </paragraph> <paragraph num="(2)"> <text>The cost of modifying the ICT for compatibility with software and hardware for nonvisual access would increase the price of the procurement by more than 15 percent.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to ICT that is acquired and used by a contractor:</text> <paragraph num="(1)"> <text>Incidental to performing under a contract with the State or any agency; and</text> </paragraph> <paragraph num="(2)"> <text>To the extent that the ICT is not transferred to the State or any agency as part of the contractor's obligations to perform or incorporated into the deliverables provided to the State or any agency under the contract.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The ICT products or ICT services a contractor develops, procures, maintains, or uses that are not specified as part of a contract with the State or any agency are not required to comply with this chapter.</text> </paragraph> <paragraph num="D."> <text>Except as otherwise required to comply with other law, this chapter may not be construed to require the installation of accessibility-related software or an assistive technology device at a workstation of a State employee who is not an individual with a disability.</text> </paragraph> <paragraph num="E."> <text>Except as otherwise required to comply with the requirements of other law, this chapter may not be construed to require agencies:</text> <paragraph num="(1)"> <text>To provide access to the public to information at a location other than where the ICT is ordinarily provided to the public; or</text> </paragraph> <paragraph num="(2)"> <text>To purchase products for access and use by individuals with disabilities at a location other than where the ICT is ordinarily provided to the public.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Section E of this regulation may not be construed to relieve any unit of State government of its obligation to provide information or data under any other requirements of the law.</text> </paragraph> <paragraph num="G."> <text>Except as provided by §§A—F of this regulation, ICT and ICT services procured, used, maintained, developed, and provided by or on behalf of agencies shall be nonvisually accessible in accordance with the standards promulgated in this chapter.</text> </paragraph> <paragraph num="H."> <text>Agencies shall procure ICT and services that comply with the provisions in this chapter when such ICT and ICT services are available in the commercial marketplace or developed in response to a State government solicitation.</text> </paragraph> <paragraph num="I."> <text>Best Meets. If ICT conforming to one or more provisions in this chapter is not commercially available, the agency shall procure the ICT that best meets the agency's business needs, consistent with this chapter.</text> </paragraph> <paragraph num="J."> <text>Best Meets Required Documentation. The responsible agency official shall document in writing:</text> <paragraph num="(1)"> <text>The nonavailability of conforming ICT, including a description of market research performed and which provisions cannot be met; and</text> </paragraph> <paragraph num="(2)"> <text>The basis for determining that the ICT to be procured best meets the agency's business needs, consistent with this chapter.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Best Meets Alternative Means. If ICT that fully conforms to the provisions of this chapter is not commercially available, the agency shall provide individuals with visual disabilities access to and use of information and data by an alternative means that meets identified needs.</text> </paragraph> <paragraph num="L."> <text>This chapter may not be construed to prohibit the use of designs or technologies as alternatives to those prescribed in this chapter if they result in substantially equivalent or greater access for people with visual disabilities.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Functional Performance Criteria."> <paragraph num="A."> <text>Functional performance criteria shall apply to Regulations .04—.06 of this chapter.</text> </paragraph> <paragraph num="B."> <text>ICT shall be considered nonvisually accessible if the ICT meets the following requirements:</text> <paragraph num="(1)"> <text>Without Vision. If a visual mode of operation is provided, ICT shall provide at least one mode of operation that does not require user vision.</text> </paragraph> <paragraph num="(2)"> <text>With Limited Vision. If a visual mode of operation is provided, ICT shall provide at least one mode of operation that enables users to make use of limited vision.</text> </paragraph> <paragraph num="(3)"> <text>Without Perception of Color. If a visual mode of operation is provided, ICT shall provide at least one nonvisual mode of operation that does not require user perception of color.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Hardware."> <paragraph num="A."> <text>Scope. The requirements of this regulation shall apply to ICT that is hardware if required by Regulation .02 of this chapter and if otherwise referenced in this chapter.</text> </paragraph> <paragraph num="B."> <text>Closed Functionality.</text> <paragraph num="(1)"> <text>ICT with closed functionality shall be operable without requiring the user to attach or install assistive technology other than personal headsets or other audio couplers.</text> </paragraph> <paragraph num="(2)"> <text>Speech-Output Enabled Exceptions. The following are exceptions to §B(3) of this regulation:</text> <paragraph num="(a)"> <text>Speech output shall not be required if ICT display screens only provide status indicators and those indicators conform to §H of this regulation in lieu of subsection §B(3) of this regulation.</text> </paragraph> <paragraph num="(b)"> <text>If speech cannot be supported due to constraints in available memory or processor capability, ICT shall be permitted to conform to §H of this regulation.</text> </paragraph> <paragraph num="(c)"> <text>Audible tones shall be permitted instead of speech output if the content of user input is not displayed as entered for security purposes, including, but not limited to, asterisks representing personal identification numbers.</text> </paragraph> <paragraph num="(d)"> <text>Speech output shall not be required for the:</text> <paragraph num="(i)"> <text>Machine location;</text> </paragraph> <paragraph num="(ii)"> <text>Date and time of transaction;</text> </paragraph> <paragraph num="(iii)"> <text>Customer account number; and</text> </paragraph> <paragraph num="(iv)"> <text>Machine identifier or label.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Speech output shall not be required for advertisements and other similar information unless they convey information that can be used for the transaction being conducted.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Speech-Output Enabled.</text> <paragraph num="(a)"> <text>ICT with a display screen shall be speech-output enabled for full and independent use by individuals with vision impairments.</text> </paragraph> <paragraph num="(b)"> <text>Information Displayed On-Screen. Speech output shall be provided for all information displayed on-screen.</text> </paragraph> <paragraph num="(c)"> <text>Transactional Outputs. If transactional outputs are provided, the speech output shall audibly provide all information necessary to verify a transaction.</text> </paragraph> <paragraph num="(d)"> <text>Speech Delivery Type and Coordination.</text> <paragraph num="(i)"> <text>Speech output shall be delivered through a mechanism that is readily available to all users, including, but not limited to, an industry standard connector or a telephone handset.</text> </paragraph> <paragraph num="(ii)"> <text>Speech shall be recorded or digitized human or synthesized.</text> </paragraph> <paragraph num="(iii)"> <text>Speech output shall be coordinated with information displayed on the screen.</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>User Control. The requirements for user control are as follows:</text> <paragraph num="(i)"> <text>Speech output for any single function shall be automatically interrupted when a transaction is selected.</text> </paragraph> <paragraph num="(ii)"> <text>Speech output shall be capable of being repeated and paused.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>Braille Instructions Exception. Section B(5) of this regulation does not apply to devices for personal use.</text> </paragraph> <paragraph num="(5)"> <text>Braille Instructions. The Braille Instructions are as follows:</text> <paragraph num="(a)"> <text>If speech output is required by §B(3) of this regulation, braille instructions for initiating the speech mode of operation shall be provided.</text> </paragraph> <paragraph num="(b)"> <text>Braille shall be contracted and shall conform to 36 CFR §1191.D.703.3.1. which is incorporated by reference herein.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Volume.</text> <paragraph num="(1)"> <text>ICT that delivers sound, including speech output required by §B(3) of this regulation shall provide volume control and output amplification conforming to this section.</text> </paragraph> <paragraph num="(2)"> <text>Private Listening. The volume requirements for private listening are as follows:</text> <paragraph num="(a)"> <text>If ICT provides private listening, it shall provide a mode of operation for controlling the volume.</text> </paragraph> <paragraph num="(b)"> <text>If ICT delivers output by an audio transducer typically held up to the ear, a means for effective magnetic wireless coupling to hearing technologies shall be provided.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Nonprivate Listening. The volume requirements for nonprivate listening are as follows:</text> <paragraph num="(a)"> <text>If ICT provides nonprivate listening, incremental volume control shall be provided with output amplification up to a level of at least 65 dB.</text> </paragraph> <paragraph num="(b)"> <text>A function shall be provided to automatically reset the volume to the default level after every use.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Characters on Display Screens.</text> <paragraph num="(a)"> <text>At least one mode of characters displayed on the screen shall be in a sans serif font.</text> </paragraph> <paragraph num="(b)"> <text>If ICT does not provide a screen enlargement feature, characters shall be 3/16 inch (4.8 mm) high, at a minimum, based on the uppercase letter “I”.</text> </paragraph> <paragraph num="(c)"> <text>Characters shall contrast with their background with either light characters on a dark background or dark characters on a light background.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Biometrics.</text> <paragraph num="(1)"> <text>Exception. If at least two biometric options that use different biological characteristics are provided, ICT shall be permitted to use biometrics as the only means for user identification or control.</text> </paragraph> <paragraph num="(2)"> <text>If provided, biometrics shall not be the only means for user identification or control.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Preservation of Information Provided for Accessibility. ICT that transmits or converts information or communication shall not remove nonproprietary information provided for accessibility or shall restore it upon delivery.</text> </paragraph> <paragraph num="F."> <text>Privacy. The privacy requirements are as follows:</text> <paragraph num="(1)"> <text>The same degree of privacy of input and output shall be provided to all individuals.</text> </paragraph> <paragraph num="(2)"> <text>When speech output required by §B(3) of this regulation is enabled, the screen shall not blank automatically.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Standard Connections. If data connections used for input and output are provided, at least one of each type of connection shall conform to industry standard nonproprietary formats.</text> </paragraph> <paragraph num="H."> <text>Operable Parts. The operable parts requirements are as follows:</text> <paragraph num="(1)"> <text>If provided, operable parts used in the normal operation of ICT shall conform to this section.</text> </paragraph> <paragraph num="(2)"> <text>Contrast. If provided, keys and controls shall contrast visually from background surfaces. Characters and symbols shall contrast visually from background surfaces with either light characters or symbols on a dark background or dark characters or symbols on a light background.</text> </paragraph> <paragraph num="(3)"> <text>Input Controls Exceptions. Devices for personal use with input controls that are audibly discernable without activation and operable by touch shall not be required to conform to §H(4) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Input Controls. At least one input control conforming to this section shall be provided for each function.</text> </paragraph> <paragraph num="(5)"> <text>Tactilely Discernible. Input controls shall be operable by touch and tactilely discernible without activation.</text> </paragraph> <paragraph num="(6)"> <text>Alphabetic Keys. If provided, individual alphabetic keys shall be arranged in a QWERTY-based keyboard layout, and the “F” and “J” keys shall be tactilely distinct from the other keys.</text> </paragraph> <paragraph num="(7)"> <text>Numeric Keys.</text> <paragraph num="(a)"> <text>If provided, numeric keys shall be arranged in a 12-key ascending or descending keypad layout.</text> </paragraph> <paragraph num="(b)"> <text>The number five key shall be tactilely distinct from the other keys.</text> </paragraph> <paragraph num="(c)"> <text>If the ICT provides an alphabetic overlay on numeric keys, the relationships between letters and digits shall conform to 36 CFR §1194.C.407.3.3, which is incorporated by reference.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>Key Repeat. If a keyboard with key repeat is provided, the delay before the key repeat feature is activated shall be fixed at, or adjustable to, 2 seconds minimum.</text> </paragraph> <paragraph num="(9)"> <text>Timed Response. If a timed response is required, the user shall be alerted visually, as well as by touch or sound, and shall be given the opportunity to indicate that more time is needed.</text> </paragraph> <paragraph num="(10)"> <text>Tickets, Fare Cards, and Keycards. If tickets, fare cards, or keycards are provided, they shall have an orientation that is tactilely discernible if orientation is important to further use of the ticket, fare card, or keycard.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Display Screens.</text> <paragraph num="(1)"> <text>If provided, display screens shall conform to this regulation.</text> </paragraph> <paragraph num="(2)"> <text>Visibility. If stationary ICT provides one or more display screens, at least one of each type of display screen shall be visible from a point located 40 inches (1015 mm) above the floor space where the display screen is viewed.</text> </paragraph> <paragraph num="(3)"> <text>Flashing Exception. Flashes that do not exceed the general flash and red flash thresholds as defined in The Web Content Accessibility Guidelines (WCAG) 2.1 Level AAA (June 5,2018), as incorporated by reference under COMAR 13A.06.05.02, are not required to conform to §I(4) of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>Flashing. If ICT emits lights in flashes, there shall be no more than three flashes in any 1-second period.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Status Indicators. If provided, status indicators shall be discernible visually and by touch or sound.</text> </paragraph> <paragraph num="K."> <text>Color Coding. If provided, color coding shall not be used as the only means of conveying information, indicating an action, prompting a response, or distinguishing a visual element.</text> </paragraph> <paragraph num="L."> <text>Caller ID. If provided, caller identification and similar telecommunications functions shall be visible and audible.</text> </paragraph> <paragraph num="M."> <text>Closed Caption Processing Technologies.</text> <paragraph num="(1)"> <text>If ICT displays or processes video with synchronized audio, ICT shall provide closed caption processing technology that conforms to this section.</text> </paragraph> <paragraph num="(2)"> <text>Decoding and Display of Closed Captions. Players and displays shall decode closed caption data and support display of captions.</text> </paragraph> <paragraph num="(3)"> <text>Pass-Through of Closed Caption Data. Cabling and ancillary equipment shall pass through caption data.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Audio Description Processing Technologies.</text> <paragraph num="(1)"> <text>If ICT displays or processes video with synchronized audio, ICT shall provide audio description processing technology conforming to this section.</text> </paragraph> <paragraph num="(2)"> <text>Digital Television Tuners. Digital television tuners shall be considered nonvisually accessible if the ICT provides audio description processing that conforms to the requirements of 36 CFR §1194.C.414.1.1, which is incorporated by reference.</text> </paragraph> <paragraph num="(3)"> <text>Other ICT. ICT other than digital television tuners shall provide audio description processing.</text> </paragraph> </paragraph> <paragraph num="O."> <text>User Controls for Captions and Audio Descriptions.</text> <paragraph num="(1)"> <text>If ICT displays video with synchronized audio, ICT shall provide user controls for closed captions and audio descriptions conforming to this section.</text> </paragraph> <paragraph num="(2)"> <text>Exception. Devices for personal use shall not be required to conform to this section, provided that captions and audio descriptions can be enabled through systemwide platform settings.</text> </paragraph> <paragraph num="(3)"> <text>Caption Controls. If ICT provides operable parts for volume control, ICT shall also provide operable parts for caption selection.</text> </paragraph> <paragraph num="(4)"> <text>Audio Description Controls. If ICT provides operable parts for program selection, ICT shall also provide operable parts for the selection of audio description.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Software."> <text>Software ICT shall be considered nonvisually accessible if the software ICT meets the requirements of 36 CFR §1194.C.5, which is incorporated by reference.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Support Documentation and Services."> <paragraph num="A."> <text>Scope. The technical requirements of this regulation shall apply to ICT support documentation and services if required by this chapter.</text> </paragraph> <paragraph num="B."> <text>Support Documentation.</text> <paragraph num="(1)"> <text>General documentation that supports the use of ICT shall conform to this section.</text> </paragraph> <paragraph num="(2)"> <text>Accessibility and Compatibility Features. Documentation shall list and explain how to use the nonvisual accessibility and compatibility features required by Regulations .04 and .05 of this chapter. Documentation shall include accessibility features that are built in and accessibility features that provide compatibility with assistive technology.</text> </paragraph> <paragraph num="(3)"> <text>Electronic Support Documentation. Documentation in electronic format, including web-based self-service support shall be considered nonvisually accessible if the ICT meets the requirements of 36 CFR §1194.C.602.3, which is incorporated by reference.</text> </paragraph> <paragraph num="(4)"> <text>Alternate Formats for Nonelectronic Support Documentation. If support documentation is only provided in nonelectronic formats, alternate formats usable by individuals with visual disabilities shall be provided upon request.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Services.</text> <paragraph num="(1)"> <text>Nonvisual ICT support services, including, but not limited to, help desks, call centers, training services, and automated self-service technical support, shall conform to this section.</text> </paragraph> <paragraph num="(2)"> <text>Information on Accessibility and Compatibility Features. Nonvisual ICT support services shall include information on the accessibility and compatibility features required by this chapter.</text> </paragraph> <paragraph num="(3)"> <text>Accommodation of Communication Needs. Support services shall be provided directly to the user or through a referral to a point of contact. Such ICT support services shall accommodate the communication needs of individuals with visual disabilities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Compliance Certification."> <text>Each agency shall certify in the Agency Information Technology Master Plan submission to the Department of Information Technology, in a form prescribed by the Department, that the ICT procured and services provided by or on behalf of the unit comply with the requirements in this chapter.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Self-Contained, Closed Products."> <paragraph num="A."> <text>Self-contained products shall be usable by people with visual disabilities without requiring an end-user to attach assistive technology to the product.</text> </paragraph> <paragraph num="B."> <text>If a product utilizes touch screens or contact-sensitive controls, an input method shall be provided that complies with Regulation .06D(1) and (2) of this chapter.</text> </paragraph> <paragraph num="C."> <text>If an ocular form of user identification or control is used, an alternative form of identification or activation which does not require the user to possess a particular ocular characteristic shall also be provided.</text> </paragraph> <paragraph num="D."> <text>If a product provides auditory output, the audio signal shall be provided at a standard signal level through an industry standard connector that allows for private listening using a headset or personal speakers. The product shall provide the ability to interrupt, pause, and restart the audio at any time.</text> </paragraph> <paragraph num="E."> <text>When products deliver voice output in a public area, incremental volume control shall be provided with output amplification up to a level of at least 65 decibels. Where the ambient noise level of the environment is above 45 decibels, a volume gain of at least 20 decibels above the ambient level shall be user selectable. A function shall be provided to automatically reset the volume to the default level after every use.</text> </paragraph> <paragraph num="F."> <text>Color-coding may not be used as the only means of conveying information, indicating an action, prompting a response, or distinguishing a visual element.</text> </paragraph> <paragraph num="G."> <text>If a product permits a user to adjust color and contrast settings, a range of color selections capable of producing a variety of contrast levels shall be provided.</text> </paragraph> <paragraph num="H."> <text>Products shall be designed to avoid causing the screen to flicker with a frequency greater than 2 hertz and lower than 55 hertz.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Desktop and Portable Computers."> <paragraph num="A."> <text>All mechanically operated controls and keys shall comply with Regulation .06D(1) and (2) of this chapter.</text> </paragraph> <paragraph num="B."> <text>If a product utilizes touch screens or touch-operated controls, an input method shall be provided that complies with Regulation .06D(1) and (2) of this chapter.</text> </paragraph> <paragraph num="C."> <text>When an ocular form of user identification or control is used, an alternative form of identification or activation, which does not require the user to possess particular ocular characteristics, shall also be provided.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Functional Performance Criteria."> <paragraph num="A."> <text>At least one mode of operation and information retrieval that does not require user vision shall be provided, or support for assistive technology used by people who are blind or visually impaired shall be provided.</text> </paragraph> <paragraph num="B."> <text>At least one mode of operation and information retrieval that does not require visual acuity greater than 20/70 shall be provided in audio and enlarged print output working together or independently, or support for assistive technology used by people who are visually impaired shall be provided.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Information, Documentation, and Support."> <paragraph num="A."> <text>Product support documentation provided to end-users shall be made available in nonvisually accessible alternate formats upon request, at no additional charge.</text> </paragraph> <paragraph num="B."> <text>End-users shall have access to a description of the accessibility and compatibility features of products in nonvisually accessible alternate formats or alternate methods upon request, at no additional charge.</text> </paragraph> <paragraph num="C."> <text>Support services for products shall accommodate the communication needs of end-users with visual disabilities.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">State Finance and Procurement Article, §§3A-303(a)(5), 3A-311, and 3A-312, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 1, 2005 (31:25 Md. R. 1791)</annotation> <annotation type="History" subtype="Administrative History">Recodified from COMAR 17.06.02 to 14.33.02, effective September 26, 2008</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective March 7, 2022 (49:5 Md. R. 366)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective April 5, 2010 (37:7 Md. R. 575)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective March 7, 2022 (49:5 Md. R. 366)</annotation> <annotation type="History" subtype="Administrative History">Regulations .03—.11 repealed effective March 7, 2022 (49:5 Md. R. 366)</annotation> <annotation type="History" subtype="Administrative History">Regulations .03—.06 adopted effective March 7, 2022 (49:5 Md. R. 366)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective April 5, 2010 (37:7 Md. R. 575)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended and recodified to be Regulation .07 effective March 7, 2022 (49:5 Md. R. 366)</annotation> </annotations> </chapter> </subtitle> <subtitle num="34" heading="Public School Labor Relations Board"> <chapter num="01" heading="Recognition of Employee Organizations"> <annotations> <annotation type="Authority">Education Article, §§6-405, 6-505, and 6-506, and Title 6, Subtitle 8, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective November 15, 2011 (38:26 Md. R. 1693); adopted permanently effective March 19, 2012 (39:5 Md. R. 384)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="02" heading="Negotiability Dispute"> <annotations> <annotation type="Authority">Education Article, §§2-205(e), 6-408(c), 6-510(c), and 6-806, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted as an emergency provision effective November 15, 2011 (38:26 Md. R. 1693); adopted permanently effective March 19, 2012 (39:5 Md. R. 384)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised and Chapter 14.34.02, General Provisions, amended to be Chapter 14.34.02, Negotiability Dispute, effective March 30, 2015 (42:6 Md. R. 513)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="03" heading="Impasse Determination"> <annotations> <annotation type="Authority">Education Article, §§2-205(e), 6-408(e), 6-510(e), and 6-806, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 30, 2015 (42:6 Md. R. 513</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="04" heading="Charge of Statutory Violation"> <annotations> <annotation type="Authority">Education Article, §§2-205(e), 6-401—6-411, 6-501—6-514, 6-806, and 6-807, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 30, 2015 (42:6 Md. R. 513)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A, B amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06A, B amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective August 8, 2022 (49:16 Md. R. 758)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.17 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="05" heading="Public Information Act Requests"> <annotations> <annotation type="Authority">Education Article, §6-806; General Provisions Article, §§4-401—4-601; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 30, 2015 (42:6 Md. R. 514)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.12 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> <chapter num="06" heading="Attendance, Recording, Photographing, and Broadcasting of Open Sessions"> <annotations> <annotation type="Authority">Education Article, §6-806; General Provisions Article, §3-303; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 30, 2015 (42:6 Md. R. 514)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.04 repealed effective May 27, 2024 (51:10 Md. R. 529)</annotation> </annotations> </chapter> </subtitle> <subtitle num="35" heading="Maryland Health Benefit Exchange"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Compliance with Federal Law."> <text>The Maryland Health Benefit Exchange shall comply with all provisions of the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119 (2010), and all associated guidance and regulations hereto and hereafter issued.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Advance payments of the premium tax credit” means payment of the federal tax credits authorized by 26 U.S.C. §36B and its implementing regulations, which are provided on an advance basis to an eligible individual enrolled in a qualified health plan through the Exchange under §1412 of the Affordable Care Act.</text> </paragraph> <paragraph num="(2)"> <text>“Advanced Premium Tax Credit (APTC)” has the meaning stated in 45 CFR §155.20.</text> </paragraph> <paragraph num="(3)"> <text>“Affordable Care Act (ACA)” means the Patient Protection and Affordable Care Act of 2010 (Pub. L. 111-148), as amended, including by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152), and the regulations issued under it.</text> </paragraph> <paragraph num="(4)"> <text>“Authorized carrier” means a carrier that the Exchange certifies is authorized to offer a qualified plan in the Exchange under COMAR 14.35.15.</text> </paragraph> <paragraph num="(5)"> <text>“Board” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Bronze coverage level” means the level of coverage described under §1302(d)(1)(A) of the ACA.</text> </paragraph> <paragraph num="(7)"> <text>“CARES” means the case management data system that tracks eligibility for Medicaid and other social services.</text> </paragraph> <paragraph num="(8)"> <text>“Carrier” has the meaning set forth in Insurance Article §31-101(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Catastrophic plan” means a qualified health plan described in §1302(e) of the ACA.</text> </paragraph> <paragraph num="(10)"> <text>“Certification standard” means a process, procedure, requirement, or condition of participation in the Exchange under COMAR 14.35.15 or COMAR 14.35.16.</text> </paragraph> <paragraph num="(11)"> <text>“Commissioner” means the Maryland Insurance Commissioner.</text> </paragraph> <paragraph num="(12)"> <text>Cost Sharing.</text> <paragraph num="(a)"> <text>“Cost sharing” means any expenditure required by or on behalf of an enrollee with respect to covered benefits.</text> </paragraph> <paragraph num="(b)"> <text>“Cost sharing” includes deductibles, coinsurance, copayments, or similar charges.</text> </paragraph> <paragraph num="(c)"> <text>“Cost sharing” does not include premiums, balance billing amounts for non-network providers, and spending for non-covered services.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Cost-sharing reductions (CSR)” means reductions in cost sharing for an eligible individual enrolled in a silver level plan through the Exchange or for an individual who is an Indian enrolled in a QHP through the Exchange.</text> </paragraph> <paragraph num="(14)"> <text>“Coverage” means insurance through which benefits are provided.</text> </paragraph> <paragraph num="(15)"> <text>“Department” means the Maryland Department of Health.</text> </paragraph> <paragraph num="(16)"> <text>“Dependent” has the meaning stated in 26 CFR §54.9801-2 with respect to eligibility for coverage under an individual or SHOP QHP because of a relationship to a qualified individual or enrollee.</text> </paragraph> <paragraph num="(17)"> <text>“Eligibility determination” means a decision by the Exchange about an applicant’s eligibility to enroll in a QHP or insurance affordability program or terminate a qualified individual’s enrollment in a QHP or insurance affordability program.</text> </paragraph> <paragraph num="(18)"> <text>“Enrollee” means a qualified individual, or qualified employee, who is enrolled in a qualified plan through the Individual or SHOP Exchange.</text> </paragraph> <paragraph num="(19)"> <text>“Enrollment” means the qualified individual’s coverage in a qualified plan, catastrophic plan, or insurance affordability program through the Exchange.</text> </paragraph> <paragraph num="(20)"> <text>“Exchange” has the meaning stated in Insurance Article §31-101(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(21)"> <text>“Exchange annual training” means the yearly training administered to certified navigators, licensed navigators, application counselors, and authorized producers by the Exchange as part of its training program.</text> </paragraph> <paragraph num="(22)"> <text>“Gold coverage level” means the level of coverage described under §1302(d)(1)(C) of the ACA.</text> </paragraph> <paragraph num="(23)"> <text>“Grace period” means the period of time during which a carrier is prohibited from terminating an enrollee’s enrollment in a qualified plan, as specified in:</text> <paragraph num="(a)"> <text>Insurance Article, §15-1315(c)—(e), Annotated Code of Maryland, if the enrollee is receiving advanced premium tax credits;</text> </paragraph> <paragraph num="(b)"> <text>Insurance Article, §15-209, Annotated Code of Maryland, for insurers due to non-payment of premium;</text> </paragraph> <paragraph num="(c)"> <text>COMAR 31.10.25.04C, for non-profit health service plans;</text> </paragraph> <paragraph num="(d)"> <text>COMAR 31.12.07.05D, for HMOs;</text> </paragraph> <paragraph num="(e)"> <text>COMAR 31.12.04.05A, for dental plan organizations;</text> </paragraph> <paragraph num="(f)"> <text>COMAR 31.11.10.04I for insurers and non-profit health service plans offering small employer coverage in health benefit plans; or</text> </paragraph> <paragraph num="(g)"> <text>COMAR 31.12.07.04I, for HMOs offering small employer coverage in health benefit plans.</text> </paragraph> </paragraph> <paragraph num="(24)"> <text>“Health benefit plan” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(25)"> <text>“HHS” means the federal Department of Health and Human Services.</text> </paragraph> <paragraph num="(26)"> <text>“Individual Exchange” has the meaning stated in Insurance Article §31-101(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(27)"> <text>“Individual Exchange Navigator” has the meaning stated in Insurance Article §31-101(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(28)"> <text>“Individual Exchange Navigator Certification” has the meaning stated in Insurance Article §31-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(29)"> <text>“Individual Exchange Navigator Entity” has the meaning stated in Insurance Article §31-101(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(30)"> <text>“Insurance producer” has the meaning stated in Insurance Article §1-101(u), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(31)"> <text>“Insurance producer authorization” has the meaning stated in Insurance Article §31-101(m), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(32)"> <text>“JAIL MATCH” means the data system containing information about incarcerated individuals within the State.</text> </paragraph> <paragraph num="(33)"> <text>“Limited cost sharing plan variation” means the cost-sharing reduction variation of a QHP described in 45 CFR §156.420(b)(2).</text> </paragraph> <paragraph num="(34)"> <text>“Managed care program” has the meaning stated in COMAR 10.09.62.01B(100).</text> </paragraph> <paragraph num="(35)"> <text>“Maryland Children’s Health Program (MCHP)” has the meaning stated in COMAR 10.09.43.02B.</text> </paragraph> <paragraph num="(36)"> <text>“Maryland Insurance Administration” means the insurance administration for the State established under Insurance Article, §2-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(37)"> <text>“Medicaid” has the meaning stated in COMAR 10.09.24.02B(32).</text> </paragraph> <paragraph num="(38)"> <text>“Minimum essential coverage (MEC)” has the meaning stated in 26 USC §5000A(f) and the corresponding regulation under 26 CFR §1.5000A-2(a).</text> </paragraph> <paragraph num="(39)"> <text>“Navigator entity” means Individual Exchange Navigator Entity.</text> </paragraph> <paragraph num="(40)"> <text>“Open enrollment period” means the annual period during which a qualified individual may enroll in coverage through the Exchange, including the initial open enrollment period as stated in 45 CFR §155.20.</text> </paragraph> <paragraph num="(41)"> <text>“Plain language” has the meaning stated in §1311(e)(3)(b) of the Affordable Care Act.</text> </paragraph> <paragraph num="(42)"> <text>“Plan variation” means a zero cost sharing plan variation, a limited cost sharing plan variation, or a silver plan variation.</text> </paragraph> <paragraph num="(43)"> <text>“Platinum coverage level” means the level of coverage described under §1302(d)(1)(D) of the ACA.</text> </paragraph> <paragraph num="(44)"> <text>“Product” has the meaning stated in 45 CFR §154.102.</text> </paragraph> <paragraph num="(45)"> <text>“Provider network” has the same meaning as “provider panel” as stated in COMAR 31.10.35.03B(7).</text> </paragraph> <paragraph num="(46)"> <text>“Qualified dental plan (QDP)” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(47)"> <text>“Qualified employee” means an employee who has been determined eligible to enroll in a qualified plan through the SHOP Exchange.</text> </paragraph> <paragraph num="(48)"> <text>“Qualified health plan (QHP)” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(49)"> <text>“Qualified individual” has the meaning stated in Insurance Article, §31-101(s), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(50)"> <text>“Qualified plan” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(51)"> <text>“SHOP Exchange” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(52)"> <text>“Silver coverage level” means the level of coverage described under §1302(d)(1)(B) of the ACA.</text> </paragraph> <paragraph num="(53)"> <text>“Silver plan variation” means any of the cost-sharing reduction plan variations of the standard silver QHP under 45 CFR §156.420(a).</text> </paragraph> <paragraph num="(54)"> <text>“Single, streamlined application form” means the eligibility application for Medicaid, MCHP, qualified health plan, stand-alone dental plan, APTC, or CSR through the Exchange.</text> </paragraph> <paragraph num="(55)"> <text>“Special enrollment period” means the period during which a qualified individual, dependent, or enrollee, who experiences certain qualifying events may enroll in, or change enrollment in, a QHP through the Exchange outside of the annual open enrollment periods.</text> </paragraph> <paragraph num="(56)"> <text>“Stand-alone dental plan (SADP)” means a qualified dental plan that meets the requirements under 45 CFR §155.1065(a).</text> </paragraph> <paragraph num="(57)"> <text>“Zero cost sharing plan variation” means the cost-sharing reduction plan variation of a QHP under 45 CFR §156.420(b)(1).</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §31-106(c)(1)(iv), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective March 11, 2019 (46:5 Md. R. 306)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective August 5, 2024 (51:15 Md. R. 710)</annotation> </annotations> </chapter> <chapter num="02" heading="Individual Exchange Navigator Certification and Training Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the qualifications, training, and certification standards for an individual who applies to receive an Individual Exchange navigator certification and is required under Insurance Article, §31-113(h)(1), Annotated Code of Maryland to hold an Individual Exchange navigator certification to provide the services listed under Insurance Article, §31-113(d)(1), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Eligibility Requirements."> <text>To qualify for an Individual Exchange navigator certification, an applicant shall:</text> <paragraph num="A."> <text>Be of good character and trustworthy;</text> </paragraph> <paragraph num="B."> <text>Be at least 18 years old;</text> </paragraph> <paragraph num="C."> <text>Successfully complete and comply with any ongoing requirements of the training program set forth under regulation .04 of this chapter; and</text> </paragraph> <paragraph num="D."> <text>Comply with any applicable requirements of Maryland Department of Health.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Application Procedures."> <paragraph num="A."> <text>In order to obtain an Individual Exchange navigator certification, the applicant shall submit to the Exchange:</text> <paragraph num="(1)"> <text>An application on the form provided by the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>An attestation that the applicant will notify the Exchange of any changes to information that the applicant provides or to which the applicant attests on the application form within 30 days of such change;</text> </paragraph> <paragraph num="(3)"> <text>An application fee if permitted by law and in the manner specified by the Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Evidence of the written consent required under COMAR 31.03.12, if applicable; and</text> </paragraph> <paragraph num="(5)"> <text>Evidence that the applicant has successfully completed the Individual Exchange navigator certification training program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Exchange may not consider an application to be complete until it has received all required materials.</text> </paragraph> <paragraph num="C."> <text>If the application is not completed with all required materials within 45 days after the Exchange receives the signed application form, the Exchange may consider the application withdrawn.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Training Standards."> <paragraph num="A."> <text>Scope of Training. The training shall include information on:</text> <paragraph num="(1)"> <text>Commercial health insurance;</text> </paragraph> <paragraph num="(2)"> <text>The Medicaid and MCHP programs;</text> </paragraph> <paragraph num="(3)"> <text>Eligibility, enrollment, renewal and disenrollment;</text> </paragraph> <paragraph num="(4)"> <text>Advanced premium tax credits;</text> </paragraph> <paragraph num="(5)"> <text>Consumer assistance and protection;</text> </paragraph> <paragraph num="(6)"> <text>Quality assurance standards; and</text> </paragraph> <paragraph num="(7)"> <text>Ethics.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Conduct.</text> <paragraph num="(1)"> <text>The Exchange shall conduct training in geographically diverse locations across the State.</text> </paragraph> <paragraph num="(2)"> <text>The training shall be conducted in examination facilities equipped to provide access in accordance with the Americans with Disabilities Act of 1990 as amended under 42 USC §12101, et seq.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Type of Training. The training shall be administered in-person and online.</text> </paragraph> <paragraph num="D."> <text>Examination.</text> <paragraph num="(1)"> <text>The training shall include a final examination.</text> </paragraph> <paragraph num="(2)"> <text>The examination shall be multiple choice.</text> </paragraph> <paragraph num="(3)"> <text>The examination shall be scored and reported in accordance with a passing score established by the Exchange.</text> </paragraph> <paragraph num="(4)"> <text>Applicants must successfully pass the examination within 45 calendar days of completing the training described under §A of this regulation.</text> </paragraph> <paragraph num="(5)"> <text>Applicants are allowed three attempts to pass the examination in a 12-month period.</text> </paragraph> <paragraph num="(6)"> <text>If the applicant does not pass the examination on the third attempt, they must wait 12 months before they are eligible to train and test again.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Training Frequency. The Exchange shall conduct trainings:</text> <paragraph num="(1)"> <text>At least monthly during all months; and</text> </paragraph> <paragraph num="(2)"> <text>At least weekly for the 3 months immediately preceding the open enrollment period.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Assessment. The Exchange, in consultation with the Maryland Department of Health and with the approval of the Commissioner, shall review, and as appropriate update, the content of the training on a schedule established by the Exchange.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106 and 31-113, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> </annotations> </chapter> <chapter num="03" heading="Individual Exchange Navigator Certification — Renewal, Reinstatement, Deactivation, and Suspension or Revocation of Certification"> <regulation prefix="Regulation" num=".01" heading="Term."> <text>An Individual Exchange navigator certification expires 2 years after the date it is issued unless it is renewed.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Renewal."> <paragraph num="A."> <text>Notice.</text> <paragraph num="(1)"> <text>At least 60 days before the expiration of an Individual Exchange navigator certification, the Exchange shall notify the Individual Exchange navigator, either directly at the address, including email address, on file with the Exchange, or by contacting the navigator entity by whom the Individual Exchange navigator is employed or engaged, of the expiration date of an Individual Exchange navigator certification.</text> </paragraph> <paragraph num="(2)"> <text>The notification shall include:</text> <paragraph num="(a)"> <text>A renewal application;</text> </paragraph> <paragraph num="(b)"> <text>The date by which the Exchange must receive the renewal application for the renewal to be issued before the certification expires; and</text> </paragraph> <paragraph num="(c)"> <text>The amount of the renewal fee, if any.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility for Renewal. An Individual Exchange navigator certification may be renewed for an additional 2-year term if the holder:</text> <paragraph num="(1)"> <text>Is otherwise entitled to receive Individual Exchange navigator certification, in accordance with the eligibility requirements set forth in COMAR 14.35.02.02;</text> </paragraph> <paragraph num="(2)"> <text>Files a renewal application on the form provided by the Exchange either by mail or electronically before expiration of the certification;</text> </paragraph> <paragraph num="(3)"> <text>Pays to the Exchange a renewal fee if permitted by law and in the manner specified by the Exchange; and</text> </paragraph> <paragraph num="(4)"> <text>Has completed the Exchange annual training and the continuing education requirements under §C of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Continuing Education. A certified Individual Exchange navigator shall complete at least 16 hours of Exchange-approved continuing education per renewal term.</text> </paragraph> <paragraph num="D."> <text>Annual Training.</text> <paragraph num="(1)"> <text>The Exchange shall:</text> <paragraph num="(a)"> <text>Schedule the Continuing Education Training on an annual basis; and</text> </paragraph> <paragraph num="(b)"> <text>Notify certified Individual Exchange navigators of the annual training.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A certified Individual Exchange navigator shall complete the annual training, including any examination, within 60 days before the open enrollment period during each year of the certification term, including any renewal term.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Reinstatement."> <text>In order to obtain a reinstatement of an Individual Exchange navigator certification, the applicant shall submit to the Exchange an application as required under COMAR 14.35.02.03.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Inactive Certification."> <paragraph num="A."> <text>An Individual Exchange navigator shall provide evidence satisfactory to the Exchange of employment or engagement by a navigator entity before the navigator may become certified.</text> </paragraph> <paragraph num="B."> <text>The Exchange may deactivate an individual’s Individual Exchange navigator certification whenever the:</text> <paragraph num="(1)"> <text>Individual fails to complete the annual training;</text> </paragraph> <paragraph num="(2)"> <text>Individual has not provided evidence satisfactory to the Exchange of employment or engagement by a navigator entity, as set forth under §A of this regulation; or</text> </paragraph> <paragraph num="(3)"> <text>The Exchange is informed, either by the individual or a navigator entity, that the individual is not employed or engaged by the navigator entity.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If certification is deactivated due to reasons listed under §B(2) or (3) of this regulation, the Exchange may waive the fees listed under Regulation .02B(3) of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Suspension or Revocation."> <text>The Commissioner may suspend or revoke an Individual Exchange navigator certification for the reasons listed under Insurance Article, §31-113(l)(1), Annotated Code of Maryland.</text> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106 and 31-113, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A, D amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> </annotations> </chapter> <chapter num="04" heading="Insurance Producer Authorization to Sell Qualified Plans in the SHOP Exchange and Individual Exchange"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the qualifications, training, and authorization standards for an individual who applies to receive a Small Business Health Options (SHOP) insurance producer authorization or an Individual Exchange insurance producer authorization and is required under Insurance Article, §§31-112(g)(2) and 31-113(n)(2), Annotated Code of Maryland, to hold such an authorization to sell qualified plans within the SHOP Exchange or Individual Exchange.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Eligibility Requirements."> <text>To be eligible to apply for initial insurance producer authorization, an applicant shall:</text> <paragraph num="A."> <text>Be licensed by the Maryland Insurance Commissioner as an insurance producer authorized to sell health insurance; and</text> </paragraph> <paragraph num="B."> <text>Successfully complete and comply with any ongoing requirements of the training programs set forth under Regulation .04 of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Application Procedures."> <paragraph num="A."> <text>In order to obtain a SHOP Exchange insurance producer authorization or Individual Exchange insurance producer authorization, the applicant shall submit to the Exchange:</text> <paragraph num="(1)"> <text>An application on the form provided by the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>An attestation that the applicant will notify the Exchange of any changes to information the applicant provides or to which the applicant attests on the application form within 30 days of such change;</text> </paragraph> <paragraph num="(3)"> <text>An application fee if permitted by law and in the manner specified by the Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Evidence that the applicant is licensed by the Maryland Insurance Commissioner as an insurance producer authorized to sell health insurance;</text> </paragraph> <paragraph num="(5)"> <text>Evidence of the written consent required under COMAR 31.03.12, if applicable; and</text> </paragraph> <paragraph num="(6)"> <text>Evidence that the applicant has successfully completed the:</text> <paragraph num="(a)"> <text>SHOP Exchange insurance producer authorization training if the applicant is applying for a SHOP Exchange insurance producer authorization; or</text> </paragraph> <paragraph num="(b)"> <text>Individual Exchange Producer Authorization training if the applicant is applying for an Individual Exchange insurance producer authorization.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Exchange may not consider an application to be complete until it has received all required materials.</text> </paragraph> <paragraph num="C."> <text>If the application is not completed with all required materials within 45 days after the Exchange receives the signed application form, the Exchange may consider the application withdrawn.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Training."> <paragraph num="A."> <text>An applicant for the SHOP Exchange insurance producer authorization shall complete the Exchange-approved SHOP insurance producer authorization training.</text> </paragraph> <paragraph num="B."> <text>An applicant for the Individual Exchange insurance producer authorization shall complete the Commissioner-approved Individual Exchange insurance producer authorization training.</text> </paragraph> <paragraph num="C."> <text>The Exchange shall review, and as appropriate update, the content of the SHOP insurance producer authorization training program on a schedule established by the Exchange.</text> </paragraph> <paragraph num="D."> <text>The Exchange, with the approval of the Commissioner, shall review, and as appropriate update, the content of the Individual Exchange insurance producer authorization training program at least every 2 years.</text> </paragraph> <paragraph num="E."> <text>An applicant for Individual Exchange or SHOP insurance producer authorization shall meet the examination requirements specified under COMAR 14.35.02.04D.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106, 31-112(f), (g), and (h), and 31-113(m), (n), and (o), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04E adopted effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="05" heading="Insurance Producer Authorization — Renewal, Reinstatement, and Suspension or Revocation of Authorization"> <regulation prefix="Regulation" num=".01" heading="Term."> <text>An insurance producer authorization expires 2 years after the date it is issued unless it is renewed.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Renewal."> <paragraph num="A."> <text>Notice.</text> <paragraph num="(1)"> <text>At least 60 days before the expiration of an insurance producer authorization, the Exchange shall notify the authorized insurance producer of the expiration of the authorization.</text> </paragraph> <paragraph num="(2)"> <text>The notification shall include:</text> <paragraph num="(a)"> <text>A renewal application;</text> </paragraph> <paragraph num="(b)"> <text>The date by which the Exchange must receive the renewal application for the renewal to be issued before the authorization expires; and</text> </paragraph> <paragraph num="(c)"> <text>The amount of the renewal fee, if any.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility for Renewal. An insurance producer authorization may be renewed for an additional 2-year term if the holder:</text> <paragraph num="(1)"> <text>Is otherwise entitled to receive insurance producer authorization, in accordance with the eligibility requirements set forth in COMAR 14.35.04.02;</text> </paragraph> <paragraph num="(2)"> <text>Files a renewal application on the form provided by the Exchange before the expiration of the authorization;</text> </paragraph> <paragraph num="(3)"> <text>Pays to the Exchange a renewal fee if permitted by law and in the manner specified by the Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Completes the annual training requirements set forth in COMAR 14.35.04.04; and</text> </paragraph> <paragraph num="(5)"> <text>Is not denied by the Exchange for reasons set forth under §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Exchange Annual Training.</text> <paragraph num="(1)"> <text>The Exchange shall:</text> <paragraph num="(a)"> <text>Schedule the Exchange Annual Training; and</text> </paragraph> <paragraph num="(b)"> <text>Notify authorized insurance producers of the annual training.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Authorized insurance producers shall complete the annual training, including any examination, within 60 days before the open enrollment period.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Timely Receipt of Application:</text> <paragraph num="(1)"> <text>Before the date of expiration of the authorization, a holder of an insurance producer authorization shall complete and return to the Exchange a renewal application and a renewal fee according to the renewal instructions.</text> </paragraph> <paragraph num="(2)"> <text>A holder of an expired insurance producer authorization may not sell qualified plans in the SHOP Exchange or Individual Exchange.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Denial.</text> <paragraph num="(1)"> <text>The Exchange may deny a renewal application if the insurance producer has:</text> <paragraph num="(a)"> <text>Committed any act described in Insurance Article, §31-113(l)(1), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(b)"> <text>Had any professional license or certification suspended or revoked for a fraudulent or dishonest practice.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Denial of a renewal application is subject to the contested case hearing provisions of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Reinstatement."> <paragraph num="A."> <text>For up to 1 year after the expiration date, an individual whose insurance producer authorization has expired may apply to reinstate the expired authorization by:</text> <paragraph num="(1)"> <text>Filing a reinstatement application, either by mail or electronically, on the form approved by the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>Paying to the Exchange the renewal fee if permitted by law and in the manner specified by the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>Paying to the Exchange a reinstatement fee if permitted by law and in the manner specified by the Exchange; and</text> </paragraph> <paragraph num="(4)"> <text>Submitting evidence to the Exchange that the individual has successfully completed the Exchange annual training and the continuing education requirements under Regulation .02C of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An individual who does not file for reinstatement within 1 year after the expiration date of the insurance producer authorization shall apply for an authorization under the application procedures set forth in COMAR 14.35.04.03.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Suspension or Revocation."> <paragraph num="A."> <text>The Exchange may suspend or revoke an insurance producer authorization for a licensed producer authorized to sell qualified plans in the SHOP Exchange as set forth under Insurance Article, §31-112(f)(3)(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The Exchange may suspend or revoke an insurance producer authorization for a licensed producer authorized to sell qualified plans in the Individual Exchange as set forth under Insurance Article, §31-113(m)(3)(i), Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106, 31-112(f), (g), and (h), and 31-113(m), (n), and (o), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02E adopted effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="06" heading="Exchange Consumer Services Center"> <regulation prefix="Regulation" num=".01" heading="Exchange Call Center."> <text>The Exchange shall:</text> <paragraph num="A."> <text>Maintain a consumer services call center at least during normal business hours;</text> </paragraph> <paragraph num="B."> <text>Operate its consumer services call center as a triage device to handle or properly refer consumers' questions or complaints; and</text> </paragraph> <paragraph num="C."> <text>Provide a consumer with information about how to use the consumer services call center to obtain information and assistance when appropriate.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §31-106(c)(1)(iv), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> </annotations> </chapter> <chapter num="07" heading="Eligibility Standards for Enrollment in a Qualified Health Plan, Eligibility Standards for APTC and CSR, and Eligibility Standards for Enrollment in a Catastrophic Qualified Health Plan in the Individual Exchange"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the eligibility standards for enrollment in a qualified health plan and qualified health plans with advance payments of the premium tax credit and cost-sharing reductions in the Individual Exchange. This chapter does not address the verification of eligibility or redeterminations of eligibility for enrollment in the Individual Exchange or eligibility for enrollment in the SHOP Exchange. This chapter does not address eligibility and enrollment in qualified dental plans or qualified vision plans.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means an individual who submits an application through the Individual Exchange for the individual and the individual’s tax household, and is seeking eligibility for:</text> <paragraph num="(a)"> <text>Enrollment in a QHP through the Individual Exchange; or</text> </paragraph> <paragraph num="(b)"> <text>Enrollment in an insurance affordability program through the Individual Exchange.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. 99-272).</text> </paragraph> <paragraph num="(3)"> <text>“CSR plan for up to 150 percent FPL” means a QHP available through the Individual Exchange with an actuarial value of 94 percent plus or minus the de minimis variation for a silver plan variation.</text> </paragraph> <paragraph num="(4)"> <text>“CSR plan for 151—200 percent FPL” means a QHP available through the Individual Exchange with an actuarial value of 87 percent plus or minus the de minimis variation for a silver plan variation.</text> </paragraph> <paragraph num="(5)"> <text>“CSR plan for 201—250 percent FPL” means a QHP available through the Individual Exchange with an actuarial value of 73 percent plus or minus the de minimis variation for a silver plan variation.</text> </paragraph> <paragraph num="(6)"> <text>“Dependent,” for the purposes of Regulations .12—.19 of this chapter, has the meaning stated in 26 CFR §54.9801-2 with respect to eligibility for coverage under an individual QHP because of a relationship to a qualified individual or enrollee.</text> </paragraph> <paragraph num="(7)"> <text>“Employer group health insurance coverage” means health coverage offered by an employer to an employee and the employee’s dependents, if eligible, under:</text> <paragraph num="(a)"> <text>Government health coverage, such as the Federal Employees Health Benefit program;</text> </paragraph> <paragraph num="(b)"> <text>Health coverage offered in the small or large group market by an employer within a state; or</text> </paragraph> <paragraph num="(c)"> <text>Grandfathered health coverage offered by an employer in a group market.</text> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Federal poverty level (FPL)” means the most recently published federal poverty level guidelines, updated periodically in the Federal Register by the Secretary of HHS as set forth in 42 U.S.C. §9902(2), as of the first day of the open enrollment period for QHPs offered through the Individual Exchange for a calendar year.</text> </paragraph> <paragraph num="(9)"> <text>Household income” has the meaning stated in §36B(d)(2) of the Internal Revenue Code.</text> </paragraph> <paragraph num="(10)"> <text>“Indian” means an individual who is a member of an Indian tribe, band, nation, or other organized group or community, including any Alaska Native village, or regional or village corporation as defined in or established under the Alaska Native Claims Settlement Act (85 Stat. 688), which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.</text> </paragraph> <paragraph num="(11)"> <text>“Institution” means:</text> <paragraph num="(a)"> <text>A medical institution under COMAR 10.09.24.02—.37; or</text> </paragraph> <paragraph num="(b)"> <text>A public institution under COMAR 10.09.24.02—.46.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Insurance affordability program” means a program that is one of the following:</text> <paragraph num="(a)"> <text>The Maryland State Medicaid Program;</text> </paragraph> <paragraph num="(b)"> <text>The Maryland Children’s Health Insurance Program (CHIP), including the Maryland Children’s Health Program (MCHP) Premium;</text> </paragraph> <paragraph num="(c)"> <text>A program that makes available to qualified individuals coverage in a QHP through the Individual Exchange with APTC credit under §1.36B(2)(c) of the Internal Revenue Code;</text> </paragraph> <paragraph num="(d)"> <text>A program that makes available coverage in a QHP through the Individual Exchange with CSR under §1402 of the ACA; and</text> </paragraph> <paragraph num="(e)"> <text>The State-Based Young Adult Health Insurance Subsidies Program established under Insurance Article, §31-122, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(13)"> <text>“Non-applicant” means an individual who is not seeking eligibility for enrollment in a QHP or an insurance affordability program through the Individual Exchange.</text> </paragraph> <paragraph num="(14)"> <text>“Qualifying eligible employer-sponsored plan” means a health benefit plan that meets the requirements set forth in 26 CFR §1.36B-2(c)(2)(i).</text> </paragraph> <paragraph num="(15)"> <text>“Rescission” means a cancellation or discontinuance of coverage that has retroactive effect.</text> </paragraph> <paragraph num="(16)"> <text>“Tax filer” means an individual or married couple who indicates that the tax filer expects:</text> <paragraph num="(a)"> <text>To file an income tax return for the benefit year, as set forth in 26 U.S.C. §§6011, 6012, and implementing regulations;</text> </paragraph> <paragraph num="(b)"> <text>If married, as set forth in 26 CFR §1.7703-1, to file a joint tax return for the benefit year, except if the spouse is a victim of domestic violence or spousal abandonment;</text> </paragraph> <paragraph num="(c)"> <text>To not be claimed as a tax dependent by any other taxpayer for the benefit year; and</text> </paragraph> <paragraph num="(d)"> <text>To claim a personal exemption deduction set forth in §151 of the Internal Revenue Code on the tax filer’s return for one or more applicants, even if the tax filer is not an applicant.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Applying for Coverage Through the Individual Exchange."> <paragraph num="A."> <text>Individuals may apply to enroll in a QHP or an insurance affordability program through the Individual Exchange using the single, streamlined application form approved by the Individual Exchange.</text> </paragraph> <paragraph num="B."> <text>An individual may submit the application:</text> <paragraph num="(1)"> <text>By telephone;</text> </paragraph> <paragraph num="(2)"> <text>On the Individual Exchange’s internet website;</text> </paragraph> <paragraph num="(3)"> <text>Using in-person assistance, including with the provision of reasonable accommodations; or</text> </paragraph> <paragraph num="(4)"> <text>By mail.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An applicant shall provide the following information on the application:</text> <paragraph num="(1)"> <text>The applicant’s and applicable dependents’ Social Security numbers, provided that the applicant and applicable dependents have Social Security numbers;</text> </paragraph> <paragraph num="(2)"> <text>An authorization for the Exchange to verify attested information through electronic means;</text> </paragraph> <paragraph num="(3)"> <text>An election indicating whether the applicant is seeking an eligibility determination for enrollment in a QHP or insurance affordability program;</text> </paragraph> <paragraph num="(4)"> <text>If the applicant is applying for enrollment in a QHP, sufficient information to determine eligibility for enrollment in a QHP;</text> </paragraph> <paragraph num="(5)"> <text>If the applicant is applying for enrollment in an insurance affordability program, sufficient information to determine eligibility for enrollment in such insurance affordability program;</text> </paragraph> <paragraph num="(6)"> <text>If the applicant is applying for enrollment in an insurance affordability program as defined in Regulation .02B and the applicant files for an income tax return as a married couple, the applicant shall complete an attestation that the applicant intends to file a joint income tax return for the benefit year in which the individual is seeking coverage, except:</text> <paragraph num="(a)"> <text>If a spouse is the victim of domestic violence or spousal abandonment, the attestation may provide that the applicant intends to file a single income tax return for the benefit year in which the individual is seeking coverage; or</text> </paragraph> <paragraph num="(b)"> <text>If the individual in a married couple qualifies to file as head of household, the attestation may provide that the applicant intends to file a single income tax return as head of household for the benefit year in which the individual is seeking coverage; and</text> </paragraph> </paragraph> <paragraph num="(7)"> <text>The applicant’s signature, including either an electronic or telephonic signature, under penalties of perjury.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Non-applicant.</text> <paragraph num="(1)"> <text>A non-applicant who applies for insurance affordability programs on behalf of a member in the non-applicant’s tax filing household shall provide the following information on the application:</text> <paragraph num="(a)"> <text>The non-applicant’s name; and</text> </paragraph> <paragraph num="(b)"> <text>The non-applicant’s Social Security number, if the applicant attests that the tax filer:</text> <paragraph num="(i)"> <text>Has a Social Security number; and</text> </paragraph> <paragraph num="(ii)"> <text>Filed a tax return for the year for which tax data would be used to verify the applicant’s household income and family size.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A non-applicant is required to provide the following information on the application if the only members of the individual’s household seeking coverage are younger than 18 years old and are not emancipated minors:</text> <paragraph num="(a)"> <text>The non-applicant’s name; and</text> </paragraph> <paragraph num="(b)"> <text>The non-applicant’s address.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Non-applicants are not required to provide information about the non-applicant’s citizenship, status as a national, or immigration status.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An individual who applies for an insurance affordability program shall receive an eligibility determination for all of the insurance affordability programs.</text> </paragraph> <paragraph num="F."> <text>An individual may submit an application to the Individual Exchange and receive an eligibility determination at any time during the year.</text> </paragraph> <paragraph num="G."> <text>Incomplete Applications.</text> <paragraph num="(1)"> <text>If an individual submits an incomplete application, the Individual Exchange shall send the individual a notice under Regulation .04D of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The individual shall have 90 days to complete the application and receive an eligibility determination from the date the notice is sent to the individual under Regulation .04D of this chapter.</text> </paragraph> <paragraph num="(3)"> <text>If an individual does not complete and submit an application within the 90 days under §G(2) of this regulation, the Individual Exchange shall close the application and the individual shall begin a new application.</text> </paragraph> </paragraph> <paragraph num="H."> <text>An individual shall complete and submit an application to enroll in coverage through the Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Notice Requirements."> <paragraph num="A."> <text>The Individual Exchange shall provide timely written notice to an applicant of any eligibility determination made under this chapter as set forth in 45 CFR §155.230 and a notification of the right to request a fair hearing as set forth in COMAR 14.35.11.04.</text> </paragraph> <paragraph num="B."> <text>If an employee enrolls in a QHP with APTC or CSR, the Individual Exchange shall notify the employee’s employer at the employer’s address provided by the employee to the Individual Exchange that the employee has been determined eligible for APTC or CSR.</text> </paragraph> <paragraph num="C."> <text>The notice under §B of this regulation shall:</text> <paragraph num="(1)"> <text>Identify the employee by including:</text> <paragraph num="(a)"> <text>The employee’s name;</text> </paragraph> <paragraph num="(b)"> <text>The employee’s date of birth;</text> </paragraph> <paragraph num="(c)"> <text>The last four digits of the employee’s Social Security number, if available; and</text> </paragraph> <paragraph num="(d)"> <text>The employee’s Individual Exchange identification number;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Indicate that the employee has been determined eligible for APTC or CSR and has enrolled in a QHP;</text> </paragraph> <paragraph num="(3)"> <text>Indicate that if the employer has 50 or more full-time employees, the employer may be liable for the shared responsibility payment assessment set forth in §4980H of the Internal Revenue Code; and</text> </paragraph> <paragraph num="(4)"> <text>Notify the employer of the employer’s right to appeal the determination to HHS.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Exchange shall send a notice to an applicant who submits an application containing insufficient information for the Exchange to conduct an eligibility determination, which shall:</text> <paragraph num="(1)"> <text>Indicate that the information necessary to complete an eligibility determination is missing;</text> </paragraph> <paragraph num="(2)"> <text>Specify the missing information;</text> </paragraph> <paragraph num="(3)"> <text>Provide instructions on how to provide the missing information to the Individual Exchange; and</text> </paragraph> <paragraph num="(4)"> <text>Specify that the applicant shall have 90 days to provide the missing information to the Individual Exchange beginning by the date of the notice.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the applicant or enrollee has designated an authorized representative under Regulation .20 of this chapter, the Individual Exchange shall provide:</text> <paragraph num="(1)"> <text>Information regarding the powers and duties of authorized representatives to both the applicant or enrollee and to the authorized representative; and</text> </paragraph> <paragraph num="(2)"> <text>Notices to the applicant or enrollee and to the authorized representative.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Individual Exchange shall provide written notice electronically to the individual if:</text> <paragraph num="(1)"> <text>The individual elects to receive notices electronically;</text> </paragraph> <paragraph num="(2)"> <text>The individual is mailed confirmation of the individual’s election to receive notices electronically;</text> </paragraph> <paragraph num="(3)"> <text>The individual is informed of the right to change the election;</text> </paragraph> <paragraph num="(4)"> <text>The Individual Exchange posts notices in the individual’s online Individual Exchange account within 1 business day of generation of the electronic notice; and</text> </paragraph> <paragraph num="(5)"> <text>Within 1 business day of generating the electronic notice, the Individual Exchange alerts the individual, via email to the individual’s verified email address, to the existence of the electronic notice in the individual’s online Individual Exchange account.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If the electronic communication under §F(5) of this regulation fails to be sent to the individual, the Individual Exchange shall mail a written notice of the failed electronic communication to the individual’s mailing address.</text> </paragraph> <paragraph num="H."> <text>An individual may request a written copy of any electronic notice the individual receives from the Individual Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Eligibility Requirements for Enrollment in a Qualified Health Plan Through the Individual Exchange."> <paragraph num="A."> <text>An applicant shall be determined eligible for enrollment in a QHP through the Individual Exchange if the applicant is:</text> <paragraph num="(1)"> <text>A citizen or national of the United States, a non-citizen who is lawfully present in the United States, and reasonably expected to be a citizen, national, or a non-citizen who is lawfully present for the entire period for which enrollment is sought;</text> </paragraph> <paragraph num="(2)"> <text>A resident of the Individual Exchange service area; and</text> </paragraph> <paragraph num="(3)"> <text>Not incarcerated, other than incarceration pending the disposition of charges.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility under this regulation is contingent upon verification of the applicant’s attestation that the applicant meets the criteria stated in §A(1) of this regulation, or upon receipt of the applicant’s attestation that the applicant meets the criteria stated in §A(2) and (3) of this regulation.</text> </paragraph> <paragraph num="C."> <text>For the purpose of determining eligibility for enrollment in a QHP under §A(1) of this regulation, “lawfully present” means a non-citizen individual as defined in 45 CFR §152.2.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="General Eligibility Requirements — Citizenship and Immigration Status."> <text>For the purpose of determining eligibility for enrollment in a QHP under Regulation .05A(1) and (2) of this chapter, an individual shall be considered a citizen or national of the United States if the individual is:</text> <paragraph num="A."> <text>A citizen of the United States, including:</text> <paragraph num="(1)"> <text>An individual who was born in:</text> <paragraph num="(a)"> <text>One of the 50 states;</text> </paragraph> <paragraph num="(b)"> <text>The District of Columbia;</text> </paragraph> <paragraph num="(c)"> <text>Puerto Rico;</text> </paragraph> <paragraph num="(d)"> <text>Guam;</text> </paragraph> <paragraph num="(e)"> <text>The Northern Mariana Islands; or</text> </paragraph> <paragraph num="(f)"> <text>The U.S. Virgin Islands; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A child born outside of the United States if:</text> <paragraph num="(a)"> <text>The federal requirements, including the requirements in the Child Citizenship Act of 2000 (Public Law 106-395), are met for the child to automatically acquire United States citizenship upon the child's lawful admission to the United States for permanent residence;</text> </paragraph> <paragraph num="(b)"> <text>At least one of the child's natural or adoptive parents or stepparents is a United States citizen by birth or naturalization;</text> </paragraph> <paragraph num="(c)"> <text>The child is younger than 18 years old;</text> </paragraph> <paragraph num="(d)"> <text>The child resides in the United States in the legal and physical custody of the citizen or naturalized parent; and</text> </paragraph> <paragraph num="(e)"> <text>The child is a lawful permanent resident of the United States;</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A naturalized United States citizen; or</text> </paragraph> <paragraph num="C."> <text>A national from American Samoa or Swain's Island.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="General Eligibility Requirements — Residency in Individual Exchange Service Area."> <paragraph num="A."> <text>For the purpose of determining eligibility for enrollment in a QHP under Regulation .05(A)(2) of this chapter, an individual shall be considered a resident of the Exchange service area if:</text> <paragraph num="(1)"> <text>An individual is 21 years old or older, is not living in an institution, is capable of indicating intent, and is not receiving an optional State supplementary payment and the individual lives in the Individual Exchange service area, including without a fixed address; or</text> </paragraph> <paragraph num="(2)"> <text>An individual is younger than 21 years old, is not living in an institution, is not eligible for Medicaid based on receipt of assistance under Title IV-E of the Social Security Act, is not emancipated, is not receiving an optional State supplementary payment, and the individual either:</text> <paragraph num="(a)"> <text>Resides in the Exchange service area, including without a fixed address; or</text> </paragraph> <paragraph num="(b)"> <text>Resides with a parent or caretaker who resides in the service area of the Individual Exchange under §A(1) of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>For individuals not described in §A of this regulation, an individual shall be considered a resident of the Individual Exchange service area if the individual meets the State residency requirements set forth in COMAR 10.09.24.05-3.</text> </paragraph> <paragraph num="C."> <text>If members of the tax household are not residents of the same Individual Exchange service area, the tax household may indicate any Individual Exchange service area for which one of the tax filers meets the regulation as the tax household’s residency.</text> </paragraph> <paragraph num="D."> <text>If both spouses in a tax household enroll in a QHP through the same Individual Exchange, a tax dependent may only enroll in a QHP through the Individual Exchange, or through a different health benefit exchange for which the dependent meets the residency standard.</text> </paragraph> <paragraph num="E."> <text>The Individual Exchange may not deny or terminate an individual's eligibility for enrollment in a QHP through the Individual Exchange if the individual meets the residency standard under this regulation but for a temporary absence from the service area of the Individual Exchange and the individual intends to return when the purpose of the absence has been accomplished.</text> </paragraph> <paragraph num="F."> <text>The service area of the Individual Exchange is Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Eligibility Requirements for Advance Payments of the Premium Tax Credit."> <paragraph num="A."> <text>A tax filer shall be determined eligible for APTC if:</text> <paragraph num="(1)"> <text>The tax filer attests to a household income, as defined in 26 CFR §1.36B-1(e), greater than or equal to 100 percent but not more than 400 percent of the FPL for the benefit year for which coverage is requested; and</text> </paragraph> <paragraph num="(2)"> <text>One or more applicants for whom the tax filer attests to claiming a personal exemption deduction on the applicant’s federal tax return for the benefit year:</text> <paragraph num="(a)"> <text>Meet the requirements for eligibility for enrollment in a QHP through the Individual Exchange, as specified in Regulation .05 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Are not eligible for minimum essential coverage, with the exception of coverage in the individual market as set forth in 26 CFR §1.36B-2(a)(2) and (c).</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>A non-citizen tax filer who is lawfully present and ineligible for Medicaid or MCHP by reason of immigration status, and is not otherwise eligible for APTC, shall be eligible for APTC if:</text> <paragraph num="(1)"> <text>The tax filer meets the requirements specified in §A(2) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The tax filer attests to household income of less than 100 percent of the FPL for the benefit year for which coverage is requested; and</text> </paragraph> <paragraph num="(3)"> <text>One or more applicants for whom the tax filer attests to claiming a personal exemption deduction on the tax filer’s return for the benefit year is a non-citizen who is lawfully present and ineligible for Medicaid or MCHP by reason of immigration status.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A tax filer is eligible for APTC for another qualified individual only if one or more qualified individuals, for whom the tax filer attests that the tax filer expects to claim a personal exemption deduction for the benefit year, including the tax filer and the tax filer’s spouse, is enrolled in a QHP that is not a catastrophic plan through the Individual Exchange.</text> </paragraph> <paragraph num="D."> <text>If one or more APTC amounts are to be made on behalf of a tax filer, or two tax filers covered by the same plan or plans, and individuals in the tax filers’ tax households are enrolled in more than one QHP, or stand-alone dental plan, then the APTC amounts shall be allocated as follows:</text> <paragraph num="(1)"> <text>That portion of the APTC that is less than or equal to the aggregate adjusted monthly premiums, as set forth in 26 CFR §1.36B-3(e), and that is properly allocated to essential health benefits shall be allocated among the QHPs according to the premium level appropriate for each individual’s age-rating band premium; and</text> </paragraph> <paragraph num="(2)"> <text>Any remaining APTC may be allocated to the essential health benefit portion of any stand-alone dental plans.</text> </paragraph> </paragraph> <paragraph num="E."> <text>For 2024 and prior years, a tax filer may not be eligible for APTC if:</text> <paragraph num="(1)"> <text>HHS notifies the Individual Exchange that APTC was made on behalf of the tax filer, or either spouse if the tax filer is a married couple, for a year for which tax data would be utilized for verification of household income and family size set forth in 45 CFR §155.320(c)(1)(i); and</text> </paragraph> <paragraph num="(2)"> <text>The tax filer or spouse did not file a federal income tax return and reconcile the APTC received for that year, or previous years.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Beginning 2025, a tax filer may not be eligible for APTC if:</text> <paragraph num="(1)"> <text>HHS notifies the Individual Exchange that APTC was made on behalf of the tax filer, or either spouse if the tax filer is a married couple, for 2 consecutive years for which tax data would be utilized for verification of household income and family size as set forth in 45 CFR §155.320(c)(1)(i); and</text> </paragraph> <paragraph num="(2)"> <text>The tax filer or spouse did not file a federal income tax return and reconcile the APTC received for that year and for the previous year.</text> </paragraph> </paragraph> <paragraph num="G."> <text>APTC shall be calculated in accordance 26 CFR §1.36B-3.</text> </paragraph> <paragraph num="H."> <text>To receive the APTC, the tax filer shall attest that:</text> <paragraph num="(1)"> <text>No other tax filer will claim the tax filer as a tax dependent for the benefit year; and</text> </paragraph> <paragraph num="(2)"> <text>The tax filer will claim a personal exemption deduction on the income tax return for the applicants identified as members of the tax filer’s family, including the tax filer, who:</text> <paragraph num="(a)"> <text>Meet the requirements for eligibility for enrollment in a QHP through the Individual Exchange, under Regulation .05 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>Are not eligible for minimum essential coverage elsewhere.</text> </paragraph> </paragraph> </paragraph> <paragraph num="I."> <text>An enrollee may accept less than the full amount of the APTC for which the enrollee is determined eligible.</text> </paragraph> <paragraph num="J."> <text>Effective Dates for Changes in Eligibility for APTC for Enrollees.</text> <paragraph num="(1)"> <text>Except as otherwise specified under this regulation, changes in eligibility for APTC determined by the Individual Exchange are effective the first day of the month following the date on which the determination is made.</text> </paragraph> <paragraph num="(2)"> <text>When an enrollee is determined newly eligible for Medicaid or MCHP, the enrollee shall be ineligible for APTC beginning the first of the month after the enrollee is determined newly eligible for Medicaid or MCHP.</text> </paragraph> <paragraph num="(3)"> <text>When an applicant or enrollee is eligible for a special enrollment period under Regulations .12—.19 of this chapter, the applicant or enrollee shall be in accordance with the applicable effective date specified for each special enrollment period under Regulations .12—.19 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>When an enrollee’s enrollment is terminated by the enrollee as set forth in 45 CFR §155.430(b)(1) or terminated by the Exchange under 45 CFR §155.430(b)(2)(i)—(vii), the applicant or enrollee shall be in accordance with the applicable effective date of the termination set forth in 45 CFR §155.430(d).</text> </paragraph> </paragraph> <paragraph num="K."> <text>Eligibility under this regulation is contingent upon verification of the applicant’s attestation that the applicant meets the criteria stated in this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Eligibility Requirements for Cost — Sharing Reductions."> <paragraph num="A."> <text>An applicant shall be determined eligible for cost-sharing reductions if the applicant:</text> <paragraph num="(1)"> <text>Meets the requirements for eligibility for enrollment in a QHP through the Exchange under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Meets the requirements for APTC under Regulation .08 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>Except as provided under §E of this regulation, attests to household income that does not exceed 250 percent of the FPL for the benefit year for which coverage is requested.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant is eligible for:</text> <paragraph num="(1)"> <text>A CSR plan for up to 150 percent FPL for an individual who attests to household income greater than or equal to 100 percent of the FPL and less than or equal to 150 percent of the FPL for the benefit year for which coverage is requested, or, for an individual who is eligible for advance payments of the premium tax credit under Regulation .07B of this chapter, a household income less than 100 percent of the FPL for the benefit year for which coverage is requested;</text> </paragraph> <paragraph num="(2)"> <text>A CSR plan for 151—200 percent FPL for an individual who attests to household income greater than 150 percent of the FPL and less than or equal to 200 percent of the FPL for the benefit year for which coverage is requested;</text> </paragraph> <paragraph num="(3)"> <text>A CSR plan for 201—250 percent FPL for an individual who attests to household income greater than 200 percent of the FPL and less than or equal to 250 percent of the FPL for the benefit year for which coverage is requested; or</text> </paragraph> <paragraph num="(4)"> <text>Except as provided under §E of this regulation, any coverage level for an individual who attests to household income greater than 250 percent for the FPL for the benefit year for which coverage is requested.</text> </paragraph> </paragraph> <paragraph num="C."> <text>To the extent that an enrollment in a QHP under a single policy covers two or more individuals who, if the individuals were to enroll in separate individual policies, would be eligible for different CSR plan variations, the individuals under the policy are collectively eligible only for the category of eligibility listed below for which all the individuals covered by the policy would be eligible:</text> <paragraph num="(1)"> <text>Individuals not eligible for changes to cost sharing;</text> </paragraph> <paragraph num="(2)"> <text>Individuals described in §E(2) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>Individuals described in §B(3) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>Individuals described in §B(2) of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>Individuals described in §B(1) of this regulation; and</text> </paragraph> <paragraph num="(6)"> <text>Individuals described in §E(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Except as set forth in §E of this regulation, to receive cost-sharing reductions, an applicant shall enroll in a silver-plan variation of a QHP.</text> </paragraph> <paragraph num="E."> <text>Special Cost-Sharing Rules for Indians.</text> <paragraph num="(1)"> <text>An applicant who is an Indian is eligible for the zero cost sharing plan variation of a QHP if the applicant:</text> <paragraph num="(a)"> <text>Meets the requirements for eligibility for enrollment in a QHP through the Individual Exchange pursuant to Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Meets the requirements for APTC pursuant to Regulation .08 of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>Attests to household income, set forth in 26 CFR §1.36B-1(e) that does not exceed 300 percent of the FPL for the benefit year for which coverage is requested.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An applicant who is an Indian and is enrolled in a QHP shall owe no cost-sharing under the plan for items or services furnished directly by the Indian Health Service, an Indian Tribe, Tribal Organization, or Urban Indian Organization or through referral under contract health services.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Changes in enrollment in a plan with a CSR under this regulation are effective based on the effective dates under Regulation .08I of this chapter.</text> </paragraph> <paragraph num="G."> <text>Eligibility under this regulation is contingent upon verification of the applicant’s attestation that the applicant meets the criteria stated in this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Eligibility Requirements for Enrollment in a Catastrophic Plan."> <paragraph num="A."> <text>An applicant shall be determined eligible for enrollment through the Individual Exchange in a catastrophic plan if the applicant has met the requirements for eligibility for enrollment in a QHP through the Individual Exchange under Regulation .05 of this chapter and either:</text> <paragraph num="(1)"> <text>Is younger than 30 years old before the beginning of the plan year; or</text> </paragraph> <paragraph num="(2)"> <text>Has a certification in effect for any plan year that the applicant is exempt from the requirement to maintain minimum essential coverage set forth in §5000A of the Internal Revenue Code by reason of:</text> <paragraph num="(a)"> <text>Section 5000A(e)(1) of the Internal Revenue Code, regarding individuals without affordable coverage; or</text> </paragraph> <paragraph num="(b)"> <text>Section 5000A(e)(5) of the Internal Revenue Code, regarding individuals with hardships.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The certification described in §A(2) of this regulation may be provided by the U.S. Department of Health and Human Services or the Individual Exchange.</text> </paragraph> <paragraph num="C."> <text>Changes in enrollment in a catastrophic plan under this regulation are effective based on the effective dates under Regulation .08I of this chapter.</text> </paragraph> <paragraph num="D."> <text>Eligibility under this regulation is contingent upon verification of the applicant’s attestation that the applicant meets the criteria stated in this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Enrollment in a QHP or Insurance Affordability Program Through the Individual Exchange."> <paragraph num="A."> <text>A qualified individual may enroll in a QHP or an insurance affordability program under Regulation .02B(12)(c) and .02B(12)(d) of this chapter, through the Individual Exchange only during:</text> <paragraph num="(1)"> <text>The annual open enrollment period of the Individual Exchange, or</text> </paragraph> <paragraph num="(2)"> <text>A special enrollment period for which the Individual Exchange has determined that the qualified individual is eligible.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The annual open enrollment period for the Individual Exchange shall be:</text> <paragraph num="(1)"> <text>For the benefit year beginning on January 1, 2019, November 1, 2018 through December 15, 2018;</text> </paragraph> <paragraph num="(2)"> <text>For the benefit years beginning on January 1, 2020 and on January 1, 2021, November 1 through December 15 of the calendar year preceding the benefit year; and</text> </paragraph> <paragraph num="(3)"> <text>For the benefit years beginning on January 1, 2022 and after, November 1 of the calendar year preceding the benefit year through January 15 of the benefit year.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Individual Exchange may modify or extend the annual open enrollment period each year with the approval of the Board of Trustees and consistent with 45 CFR §155.410.</text> </paragraph> <paragraph num="D."> <text>Coverage selected during an open enrollment period shall:</text> <paragraph num="(1)"> <text>For the benefit year beginning on January 1, 2019, be effective on:</text> <paragraph num="(a)"> <text>January 1, 2019, for QHP selections received by the Individual Exchange on or before December 15, 2018; and</text> </paragraph> <paragraph num="(b)"> <text>January 1, 2019, or later as determined by the Board of Trustees, for QHP selections received by the Individual Exchange on or after December 16, 2018 and on or before December 31, 2018 if the Board of Trustees modifies or extends the annual open enrollment period under Regulation .11C of this chapter; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For the benefit year beginning on January 1, 2020 and after, be effective on:</text> <paragraph num="(a)"> <text>January 1 for QHP selections received by the Individual Exchange on or before December 15 of the calendar year preceding the benefit year;</text> </paragraph> <paragraph num="(b)"> <text>January 1 or later, for QHP selections received by the Individual Exchange on or after December 16 and on or before December 31 of the calendar year preceding the benefit year if the Board of Trustees modifies or extends the annual open enrollment period under Regulation .11C of this chapter; and</text> </paragraph> <paragraph num="(c)"> <text>February 1 for QHP selections received by the Individual Exchange on or after January 1 or before January 15 of the benefit year.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>If an individual enrolls in a QHP, the Individual Exchange shall promptly and without undue delay transmit to the carrier of the QHP the information necessary to enable the QHP’s carrier to enroll the qualified individual in the QHP selected by the qualified individual, including:</text> <paragraph num="(1)"> <text>The qualified individual’s selected QHP;</text> </paragraph> <paragraph num="(2)"> <text>The qualified individual’s eligibility or change in eligibility for APTC or a CSR plan, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>Whether the carrier should apply, remove, or change the total amount of the qualified individual’s APTC, if applicable;</text> </paragraph> <paragraph num="(4)"> <text>The dollar amount of the APTC, if any;</text> </paragraph> <paragraph num="(5)"> <text>The advance payment amount of the CSR plan, if any; and</text> </paragraph> <paragraph num="(6)"> <text>The effective date of the QHP enrollment.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Payment of First Month’s Premium.</text> <paragraph num="(1)"> <text>A qualified individual shall pay the first month's premium to the carrier of the QHP to effectuate enrollment in the QHP when the individual has:</text> <paragraph num="(a)"> <text>Enrolled in a QHP after coverage from a previous enrollment in a QHP the individual had was terminated;</text> </paragraph> <paragraph num="(b)"> <text>Enrolled for the first time in a QHP in the Individual Exchange; or</text> </paragraph> <paragraph num="(c)"> <text>Enrolled in a QHP offered by a different carrier of the same holding company in the Individual Exchange.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The first month’s premium payment to effectuate prospective coverage for QHP selections made during an annual open enrollment period or during a special enrollment period under Regulations .13E(4), .18D(1)—(2) and .19I of this chapter shall be due on a uniformly applied date specified by the authorized carrier of the QHP that is no earlier than the coverage effective date but no later than 30 calendar days from the coverage effective date.</text> </paragraph> <paragraph num="(3)"> <text>The first month’s premium payment to effectuate prospective coverage for QHP selections made during a special enrollment period under Regulations .12F, .13E(1) and (3), .14F, .15G, .16F, .17F, .18D(3), and .19A of this chapter shall be due on a date specified by the authorized carrier of the QHP and uniformly applied that is no earlier than the coverage effective date or no later than 30 calendar days from the date the carrier receives the enrollment transaction from the Exchange or the coverage effective date, whichever is later.</text> </paragraph> <paragraph num="(4)"> <text>Payment to effectuate retroactive coverage shall include the premium due for all months of retroactive coverage and shall also include the full premium amount of the first prospective month of coverage.</text> </paragraph> <paragraph num="(5)"> <text>Payment to effectuate retroactive coverage for QHP selections made during a special enrollment period shall be due on a uniformly applied date specified by the authorized carrier that is no earlier than the coverage effective date and no later than 30 calendar days from the date the carrier receives the enrollment transaction from the Individual Exchange or the coverage effective date, whichever is later.</text> </paragraph> <paragraph num="(6)"> <text>Effective January 1, 2020, payment to effectuate retroactive coverage for QHP selections made during a special enrollment period under Regulations .13E(2), .14F, .15G, .16F, and .17F of this chapter shall be due on the first day of the first full prospective coverage month.</text> </paragraph> <paragraph num="(7)"> <text>An authorized carrier may choose to extend the premium due date under §F of this regulation if the carrier does so in a uniform and consistent manner for all similarly situated applicants.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Premium Payment Threshold Policy.</text> <paragraph num="(1)"> <text>An authorized carrier may establish a premium payment threshold policy.</text> </paragraph> <paragraph num="(2)"> <text>Under the premium payment threshold policy the authorized carrier may consider the individual or enrollee to have paid all amounts due if the enrollee pays an amount sufficient of the total premium owed equal to or greater than a level determined by the carrier.</text> </paragraph> <paragraph num="(3)"> <text>If an authorized carrier establishes a premium payment threshold policy, the authorized carrier shall:</text> <paragraph num="(a)"> <text>Determine a premium payment level that is reasonable; and</text> </paragraph> <paragraph num="(b)"> <text>Apply the premium payment level and the premium payment threshold policy in a uniform manner to all qualified individuals and enrollees.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a qualified individual satisfies the authorized carrier’s premium payment threshold policy, the authorized carrier shall effectuate an enrollment based on payment of the initial premium payment under §F of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>If an enrollee satisfies the authorized carrier’s premium payment threshold policy, the authorized carrier may not:</text> <paragraph num="(a)"> <text>Trigger a grace period for non-payment of premium set forth in:</text> <paragraph num="(i)"> <text>Insurance Article, §15-1315(c)—(e), Annotated Code of Maryland, if the enrollee is receiving APTC; or</text> </paragraph> <paragraph num="(ii)"> <text>Insurance Article, §15-209, Annotated Code of Maryland (for insurers), COMAR 31.10.25.04C (for nonprofit health services plans), or COMAR 31.12.07.05D (for HMOs) if the enrollee is not receiving APTC; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Terminate the enrollment for non-payment of premium under 45 CFR §155.430(b)(2)(ii).</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>An authorized carrier shall accept and process an enrollment for a qualified individual that does not include a Social Security number.</text> </paragraph> <paragraph num="I."> <text>The Individual Exchange shall maintain records of all enrollments through the Individual Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Special Enrollment Periods — Loss of Minimum Essential Coverage or Termination of Other Specified Coverage Through the Individual Exchange."> <paragraph num="A."> <text>A qualified individual and, when specified in this regulation, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent are eligible for a special enrollment period for loss of minimum essential coverage or other specified coverage if:</text> <paragraph num="(1)"> <text>The qualified individual or the qualified individual’s dependent loses minimum essential coverage;</text> </paragraph> <paragraph num="(2)"> <text>A qualified individual or a qualified individual’s dependent was enrolled in coverage through a non-calendar year group health plan, individual health insurance coverage, or qualified small employer health reimbursement arrangement (as defined in §9831(d)(2) of the Internal Revenue Code) and the policy or plan year ends in the middle of the calendar year, even if the qualified individual or the qualified individual’s dependent has the option to renew the coverage;</text> </paragraph> <paragraph num="(3)"> <text>A qualified individual or the qualified individual’s dependent loses pregnancy-related coverage described in COMAR 10.09.24.03A(2) and 45 CFR §155.420(d)(1)(iii) or loses access to health care services through coverage provided to a pregnant women’s unborn child based on the definition of a child in 42 CFR §457.10; or</text> </paragraph> <paragraph num="(4)"> <text>A qualified individual or the qualified individual’s dependent loses the medically needy coverage under COMAR 10.09.24.03E.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A qualified individual and, when specified in this regulation, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent are eligible for a special enrollment period for loss of minimum essential coverage or other specified coverage under circumstances including, but not limited to:</text> <paragraph num="(1)"> <text>The qualified individual or the qualified individual’s dependent loses eligibility for qualifying eligible employer-sponsored minimum coverage that is not COBRA continuation coverage for reasons including:</text> <paragraph num="(a)"> <text>Legal separation;</text> </paragraph> <paragraph num="(b)"> <text>Divorce;</text> </paragraph> <paragraph num="(c)"> <text>Cessation of dependent status;</text> </paragraph> <paragraph num="(d)"> <text>Death of an employee;</text> </paragraph> <paragraph num="(e)"> <text>Termination of employment;</text> </paragraph> <paragraph num="(f)"> <text>Reduction in the number of hours of employment;</text> </paragraph> <paragraph num="(g)"> <text>The individual’s coverage does not provide benefits to individuals who no longer reside, live, or work in a service area and the individual no longer resides, lives, or works in the service area;</text> </paragraph> <paragraph num="(h)"> <text>The individual incurs a claim that would meet or exceed a lifetime limit on all benefits;</text> </paragraph> <paragraph num="(i)"> <text>The individual’s plan no longer offers any benefits to the class of similarly situated individuals that includes the individual;</text> </paragraph> <paragraph num="(j)"> <text>The employer terminates employer contributions to the individual’s coverage; or</text> </paragraph> <paragraph num="(k)"> <text>The qualified individual or qualified individual’s dependent, who is enrolled in an employer-sponsored plan, is determined newly eligible for APTC because the employer-sponsored plan is no longer considered minimum essential coverage set forth in 26 CFR §1.36B-2(c)(3), including as a result of the qualified individual’s employer discontinuing or changing available coverage within the next 60 days, if the qualified individual or qualified individual’s dependent is permitted by the employer and applicable federal laws to terminate enrollment in the employer-sponsored plan;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A qualified individual or the qualified individual’s dependent loses eligibility for employer-sponsored coverage that is COBRA continuation coverage or continuation coverage under State law because:</text> <paragraph num="(a)"> <text>The individual exhausted COBRA continuation coverage or continuation coverage under State law;</text> </paragraph> <paragraph num="(b)"> <text>The individual’s employer was paying all or part of the premiums and completely ceased contributions to the individual or dependent’s coverage; or</text> </paragraph> <paragraph num="(c)"> <text>A governmental entity was subsidizing coverage and completely ceased contributions to the individual or dependent’s coverage; or</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An enrollee or an enrollee’s dependent loses coverage in a QHP because the QHP is decertified.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Loss of minimum essential coverage does not include termination or loss due to:</text> <paragraph num="(1)"> <text>Failure to pay premiums on a timely basis, including failure to pay COBRA premiums prior to expiration of COBRA coverage;</text> </paragraph> <paragraph num="(2)"> <text>A change in eligibility status under 45 CFR §155.315(f)(5) because the individual does not meet the requirement specified under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>An authorized carrier’s valid rescission of coverage;</text> </paragraph> <paragraph num="(4)"> <text>A loss in coverage from a short-term limited duration insurance plan as stated in Insurance Article, §15-1301(s), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(5)"> <text>A loss in coverage from an association health plan as stated in Insurance Article, §15-1301(c), Annotated Code of Maryland that does not meet the definition for minimum essential coverage as stated in Insurance Article, §15-1301(p), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The date of loss of minimum essential coverage or other coverage is the date the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent:</text> <paragraph num="(1)"> <text>Loses eligibility for minimum essential coverage under the previous plan; or</text> </paragraph> <paragraph num="(2)"> <text>The coverage under §A(1)—(4) of this regulation terminates.</text> </paragraph> </paragraph> <paragraph num="E."> <text>To be eligible for a special enrollment period under this regulation, a qualified individual, an enrollee, a qualified individual’s dependent or an enrollee’s dependent shall:</text> <paragraph num="(1)"> <text>Report the loss of minimum essential coverage or the termination of coverage under §A(1)—(4) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Select a QHP:</text> <paragraph num="(a)"> <text>Up to 60 days before or within 120 days after the loss of minimum essential coverage through the Maryland State Medicaid Program or the Maryland Children’s Health Insurance Program (CHIP), including the Maryland Children’s Health Program (MCHP) Premium, on August 1, 2024, and beyond; or</text> </paragraph> <paragraph num="(b)"> <text>Up to 60 days before or within 60 days after the loss of any other form of minimum essential coverage or the termination of coverage; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Provide attestation or documentary evidence from an employer, carrier, legal/court proceeding, public health coverage program, death certificate, or the qualified individual that, together, indicates the date of coverage loss and the qualified individuals losing coverage.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Enrollment in a QHP selected by a qualified individual, an enrollee, or a qualified individual’s dependent during a special enrollment period for loss of minimum essential coverage or termination of coverage under §A(1)—(4) of this regulation shall be effective on:</text> <paragraph num="(1)"> <text>The first day of the month following the loss of minimum essential coverage or termination of coverage if the Individual Exchange receives the QHP selection before the loss of minimum essential coverage or the coverage terminates;</text> </paragraph> <paragraph num="(2)"> <text>The first day of the month after the Individual Exchange receives the QHP selection if the Individual Exchange receives the QHP selection after the loss of minimum essential coverage or the coverage terminates; or</text> </paragraph> <paragraph num="(3)"> <text>Notwithstanding §F(1) and (2), at the option of the consumer, the first day of the month in which the triggering event occurs if the loss of minimum essential coverage occurs mid-month and the plan selection is made on or before the last day of the month preceding the triggering event.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The eligibility for the special enrollment period under §A(4) of this regulation shall only be available once per calendar year for the qualified individual and the qualified individual’s dependent.</text> </paragraph> <paragraph num="H."> <text>Notwithstanding the standards outlined in this regulation and in Regulations .13—.19 of this chapter, if a qualified individual is eligible for advance payments of the premium tax credit or cost-sharing reductions, the advance payment of the premium tax credit or the cost-sharing reduction shall be effective on the qualified individual’s enrollment date.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Special Enrollment Periods — Change in Family Status Through the Individual Exchange."> <paragraph num="A."> <text>A qualified individual, an enrollee, a qualified individual’s dependent, and an enrollee’s dependent are eligible for a special enrollment period for change in family status if the qualified individual or enrollee gains a dependent or becomes a dependent through:</text> <paragraph num="(1)"> <text>Marriage;</text> </paragraph> <paragraph num="(2)"> <text>Birth;</text> </paragraph> <paragraph num="(3)"> <text>Adoption;</text> </paragraph> <paragraph num="(4)"> <text>Placement for adoption;</text> </paragraph> <paragraph num="(5)"> <text>Placement in foster care;</text> </paragraph> <paragraph num="(6)"> <text>A child support order; or</text> </paragraph> <paragraph num="(7)"> <text>Other court order.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An enrollee is eligible for a special enrollment period for change in family status if the enrollee loses a dependent or is no longer considered a dependent through:</text> <paragraph num="(1)"> <text>Divorce;</text> </paragraph> <paragraph num="(2)"> <text>Legal separation; or</text> </paragraph> <paragraph num="(3)"> <text>Death.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Family status changes shall be determined in accordance with the law of the state where the change in family status occurred.</text> </paragraph> <paragraph num="D."> <text>If eligible for a special enrollment period under this regulation, a qualified individual, an enrollee, a qualified individual’s dependent or an enrollee’s dependent shall select a QHP within 60 days of the change in family status under §§A and B of this regulation.</text> </paragraph> <paragraph num="E."> <text>Enrollment in a QHP selected by a qualified individual, an enrollee, the qualified individual’s dependent, or the enrollee’s dependent during a special enrollment period under this regulation shall be effective:</text> <paragraph num="(1)"> <text>For marriages, the first day of the month following the date that the Individual Exchange receives the QHP selection;</text> </paragraph> <paragraph num="(2)"> <text>For birth, adoption, placement for adoption, placement in foster care, or court order, on a date chosen by the qualified individual or enrollee that is either:</text> <paragraph num="(a)"> <text>The date of birth, adoption, placement for adoption, placement in foster care, or effective date of court order; or</text> </paragraph> <paragraph num="(b)"> <text>The first day of the month following the date that the Individual Exchange receives the QHP selection;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>In the case of death, the first day of the month following the date that the Individual Exchange receives the QHP selection; and</text> </paragraph> <paragraph num="(4)"> <text>For divorces or legal separation:</text> <paragraph num="(a)"> <text>Before January 1, 2025:</text> <paragraph num="(i)"> <text>The first date of the following month for QHP selections received by the Individual Exchange between the first and the 15th day of the month; or</text> </paragraph> <paragraph num="(ii)"> <text>The first day of the next following month for QHP selections received by the Individual Exchange between the 16th and the last day of a month; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>On or after January 1, 2025, the first day of the month following the date that the Individual Exchange receives the QHP selection.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Special Enrollment Period — Error, Misrepresentation, or Inaction through the Individual Exchange."> <paragraph num="A."> <text>Prior to January 1, 2020, a qualified individual or a qualified individual’s dependent shall be eligible for the special enrollment period set forth in 45 CFR §155.420(c)(3) if the triggering event set forth in 45 CFR §155.420(d)(4) occurs.</text> </paragraph> <paragraph num="B."> <text>Effective January 1, 2020, as evaluated and determined by the Individual Exchange, a qualified individual or qualified individual’s dependent is eligible for a special enrollment period when the individual or dependent’s enrollment or non-enrollment in a QHP is:</text> <paragraph num="(1)"> <text>Unintentional, inadvertent, or erroneous; and</text> </paragraph> <paragraph num="(2)"> <text>The result of the error, misrepresentation, or inaction of an officer, employee, or agent of the Individual Exchange its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Effective January 1, 2020, a qualified individual or a qualified individual’s dependent shall notify the Individual Exchange of the alleged error, misrepresentation, or inaction by the later of:</text> <paragraph num="(1)"> <text>30 days of the alleged error, misrepresentation, or inaction; or</text> </paragraph> <paragraph num="(2)"> <text>30 days from when the qualified individual reasonably should have known about the alleged error, misrepresentation, or inaction.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notification to the Individual Exchange under §C of this regulation shall be satisfied if the qualified individual or qualified individual’s dependent provides notice:</text> <paragraph num="(1)"> <text>To an Individual Exchange-certified navigator, an Individual Exchange-authorized broker or an Individual Exchange-certified consolidated service center representative; and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Effective January 1, 2020, the length of the special enrollment period shall be 60 days from the date that the Individual Exchange notifies the qualified individual or qualified individual’s dependent of their eligibility for a special enrollment period under this regulation.</text> </paragraph> <paragraph num="F."> <text>The effective date of coverage for a qualified individual or the qualified individual’s dependent who is determined eligible for a special enrollment period under this regulation and selects a QHP during the special enrollment period under §E of this regulation:</text> <paragraph num="(1)"> <text>Shall be a date determined by the Individual Exchange as appropriate based on the circumstances of the error, misrepresentative, or inaction;</text> </paragraph> <paragraph num="(2)"> <text>Shall be no earlier than the date the qualified individual’s or qualified individual’s dependent’s coverage would have begun or continued but for the error, misrepresentation, or inaction; and</text> </paragraph> <paragraph num="(3)"> <text>May be retroactive or prospective depending on the nature of the error, misrepresentation, or inaction.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Plan Display Errors.</text> <paragraph num="(1)"> <text>A qualified individual, an enrollee, or their dependent is eligible for a special enrollment period if their decision to purchase a QHP through the Exchange was influenced by a material error related to plan benefits, cost sharing, service area, or premium.</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding §§C and D of this regulation, the burden of proof for an error under this section may not fall on the qualified individual or qualified individual’s dependent.</text> </paragraph> <paragraph num="(3)"> <text>The length of the special enrollment period under this section shall adhere to the guidance in §E of this regulation.</text> </paragraph> <paragraph num="(4)"> <text>The effective date of coverage under this section shall adhere to the guidance in §F of this regulation.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Special Enrollment Period — Misconduct Through the Individual Exchange."> <paragraph num="A."> <text>Prior to January 1, 2020, a qualified individual or qualified individual’s dependent is eligible for a special enrollment period set forth in 45 CFR §155.420(c)(3) if the triggering event set forth in 45 CFR §155.420(d)(4) occurs.</text> </paragraph> <paragraph num="B."> <text>Effective January 1, 2020, a qualified individual or qualified individual’s dependent is eligible for a special enrollment period if:</text> <paragraph num="(1)"> <text>The Individual Exchange determines, in collaboration and coordination with the Maryland Insurance Administration that, as a result of misconduct on the part of the Individual Exchange, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities, the qualified individual or qualified individual’s dependent:</text> <paragraph num="(a)"> <text>Was not enrolled in a QHP;</text> </paragraph> <paragraph num="(b)"> <text>Was not enrolled in the QHP selected by the qualified individual, enrollee, or dependent; or</text> </paragraph> <paragraph num="(c)"> <text>Is eligible for, but is not receiving APTC or CSR; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The qualified individual or qualified individual’s dependent notifies the Individual Exchange or the Maryland Insurance Administration of the alleged misconduct by the later of:</text> <paragraph num="(a)"> <text>30 days of the misconduct; or</text> </paragraph> <paragraph num="(b)"> <text>30 days of when the qualified individual reasonably should have known about the misconduct.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Misconduct under this regulation means the failure of an officer, employee, or agent of the Individual Exchange, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities to comply with applicable standards set forth in COMAR 14.35 or other applicable State or federal laws as determined by the Individual Exchange, or the Maryland Insurance Administration.</text> </paragraph> <paragraph num="D."> <text>Notification to the Individual Exchange under §B(2) of this regulation shall be satisfied if the qualified individual or qualified individual’s dependent provides notice:</text> <paragraph num="(1)"> <text>To an Individual Exchange-certified navigator, an Individual Exchange-authorized broker, or an Individual Exchange-certified consolidated service center representative, and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Notification to the Maryland Insurance Administration under §B(2) of this regulation shall be satisfied if the qualified individual or the qualified individual’s dependent files a complaint with the Maryland Insurance Administration.</text> </paragraph> <paragraph num="F."> <text>Effective January 1, 2020, the length of the special enrollment period shall be 30 days from the date that the Individual Exchange notifies the qualified individual or the qualified individual’s dependent that the qualified individual or the qualified individual’s dependent is eligible for a special enrollment period under this regulation.</text> </paragraph> <paragraph num="G."> <text>The effective date of coverage for a qualified individual or the qualified individual’s dependent who is determined eligible for a special enrollment period under this regulation and selects a QHP during the special enrollment period under §F of this regulation.:</text> <paragraph num="(1)"> <text>Shall be determined by the Individual Exchange as appropriate based on the circumstances of the misconduct;</text> </paragraph> <paragraph num="(2)"> <text>Shall be no earlier than the date the qualified individual or dependent’s coverage would have begun or continued, but for the misconduct; and</text> </paragraph> <paragraph num="(3)"> <text>May be retroactive or prospective depending on the nature of the misconduct.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Individual Exchange’s determination that an individual is eligible for a special enrollment period under this regulation may be made prior to the completion of the Maryland Insurance Administration’s review of the alleged misconduct.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Special Enrollment Period — Violation of Material Provision Through the Individual Exchange."> <paragraph num="A."> <text>Prior to January 1, 2020, an enrollee or an enrollee’s dependent shall be eligible for a special enrollment period set forth in 45 CFR §155.420(c)(3) if the triggering event set forth in 45 CFR §155.420(d)(5) occurs.</text> </paragraph> <paragraph num="B."> <text>Effective January 1, 2020, an enrollee or an enrollee’s dependent is eligible for a special enrollment period if the enrollee or the enrollee’s dependent:</text> <paragraph num="(1)"> <text>Demonstrates, as determined by the Individual Exchange in collaboration and coordination with the Maryland Insurance Administration, that the carrier of the QHP in which the enrollee or dependent is enrolled substantially violated a material provision of its contract in relation to the enrollee or the enrollee’s dependent; and</text> </paragraph> <paragraph num="(2)"> <text>Notifies the Exchange or the Maryland Insurance Administration of the alleged violation by the later of:</text> <paragraph num="(a)"> <text>30 days of the violation; or</text> </paragraph> <paragraph num="(b)"> <text>30 days of when the enrollee or dependent reasonably should have known about the violation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notification to the Individual Exchange under §B(2) of this regulation shall be satisfied if the enrollee or the enrollee’s dependent provides notice:</text> <paragraph num="(1)"> <text>To an Individual Exchange-certified navigator, an Individual Exchange-authorized broker, or an Individual Exchange-certified consolidated service center representative; and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notification to the Maryland Insurance Administration under §B(2) of this regulation shall be satisfied if the enrollee or enrollee’s dependent files a complaint with the Maryland Insurance Administration.</text> </paragraph> <paragraph num="E."> <text>Effective January 1, 2020, the length of the special enrollment period shall be 30 days from the date that the Individual Exchange notifies the enrollee or the enrollee’s dependent that the enrollee or enrollee’s dependent is eligible for a special enrollment period under this regulation.</text> </paragraph> <paragraph num="F."> <text>The effective date of coverage for an enrollee or an enrollee’s dependent who is determined eligible for a special enrollment period under this regulation and selects a QHP during the special enrollment period under §E of this regulation:</text> <paragraph num="(1)"> <text>Shall be a date determined by the Individual Exchange as appropriate based on the circumstances of the material violation;</text> </paragraph> <paragraph num="(2)"> <text>Shall be no earlier than the date the enrollee or enrollee’s dependent’s coverage would have begun or continued, but for the material violation; and</text> </paragraph> <paragraph num="(3)"> <text>May be retroactive or prospective depending on the nature of the material violation.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Individual Exchange’s determination that an individual is eligible for a special enrollment period under this regulation may be made prior to the completion of the Maryland Insurance Administration’s review of the alleged violation of a material provision of the contract in relation to the enrollee or the enrollee’s dependent.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="Special Enrollment Period — Exceptional Circumstances Through the Individual Exchange."> <paragraph num="A."> <text>Prior to January 1, 2020, an individual, an enrollee or an enrollee’s dependent is eligible for a special enrollment period set forth in 45 CFR §155.420(c)(3) if the triggering event set forth in 45 CFR §155.420(d)(9) occurs.</text> </paragraph> <paragraph num="B."> <text>Effective January 1, 2020, a qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent is eligible for a special enrollment period if:</text> <paragraph num="(1)"> <text>The Individual Exchange determines that, at the time of the qualified individual’s, enrollee’s, qualified individual’s dependent’s, or enrollee’s dependent’s application for coverage, the individual experienced exceptional circumstances that prevented the qualified individual, enrollee, qualified individual’s dependent or the enrollee’s dependent from enrolling during open enrollment or a special enrollment period, if the individual was determined eligible for the special enrollment period by the Individual Exchange; and</text> </paragraph> <paragraph num="(2)"> <text>The qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent notifies the Exchange within 30 calendar days of the exceptional circumstances.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Exchange, at its discretion, may waive the 30-calendar-day reporting requirement under §B(2) of this regulation if the exceptional circumstance prevented the qualified individual from providing notice.</text> </paragraph> <paragraph num="D."> <text>Exceptional circumstances may include, but are not limited to:</text> <paragraph num="(1)"> <text>A serious medical condition, such as an unexpected hospitalization or temporary cognitive disability;</text> </paragraph> <paragraph num="(2)"> <text>Domestic abuse or violence;</text> </paragraph> <paragraph num="(3)"> <text>Spousal abandonment;</text> </paragraph> <paragraph num="(4)"> <text>A natural disaster, such as an earthquake, a massive flooding, or a hurricane;</text> </paragraph> <paragraph num="(5)"> <text>A significant life event resulting in lack of access to the qualified individual’s or enrollee’s Individual Exchange application or account and the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent has experienced a change in situation or status that now requires that the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent obtain minimum essential coverage; or</text> </paragraph> <paragraph num="(6)"> <text>Policy action that would result in a premium change of prospective coverage that would adversely impact the qualified individual and the qualified individual did not receive reasonable notice to act upon the material change.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Notification to the Individual Exchange under §B(2) of this regulation shall be satisfied if the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent provides notice:</text> <paragraph num="(1)"> <text>To an Individual Exchange-certified navigator, an Individual Exchange-authorized broker, or an Individual Exchange-certified consolidated service center representative; and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under Regulation .03B of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The effective date of coverage for a qualified individual, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent who is determined eligible for a special enrollment period under this regulation and selects a QHP during the special enrollment period under §B of this regulation:</text> <paragraph num="(1)"> <text>Shall be a date determined by the Individual Exchange as appropriate based on the circumstances of the qualified individual’s, the enrollee’s, the qualified individual’s dependent’s, or the enrollee’s dependent’s exceptional circumstances;</text> </paragraph> <paragraph num="(2)"> <text>Shall be no earlier than the date the qualified individual’s, the enrollee’s, the qualified individual’s dependent’s, or the enrollee’s dependent’s coverage would have begun or continued, but for the exceptional circumstances; and</text> </paragraph> <paragraph num="(3)"> <text>May be retroactive or prospective dependent on the nature of the exceptional circumstance.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Special Enrollment Period — Permanent Move."> <paragraph num="A."> <text>A qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent is eligible for a special enrollment period if the qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent:</text> <paragraph num="(1)"> <text>Gains access to a new QHP as a result of a permanent move;</text> </paragraph> <paragraph num="(2)"> <text>Was enrolled in minimum essential coverage for one or more days in the 60 days prior to the move, unless the qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent:</text> <paragraph num="(a)"> <text>Lived in a foreign country or a United States territory for 1 or more days during the 60 days preceding the date of the move;</text> </paragraph> <paragraph num="(b)"> <text>Is moving from a state that did not expand Medicaid or MCHP eligibility set forth in §2001 of the ACA and the individual was not eligible for APTC or CSR in the individual’s previous state of residence because the individual’s household income was below 100 percent of the FPL; or</text> </paragraph> <paragraph num="(c)"> <text>Is leaving incarceration, except if the individual was incarcerated pending disposition; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Notifies the Individual Exchange within 60 days from the date of the permanent move that the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent has gained access to a new QHP as a result of that move.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A permanent move does not include:</text> <paragraph num="(1)"> <text>A short-term or temporary move where the qualified individual, the enrollee, the qualified individual’s dependent, or the enrollee’s dependent does not intend to remain in the individual’s new location; or</text> </paragraph> <paragraph num="(2)"> <text>A move solely for the purpose of obtaining medical treatment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent may select a qualified health plan within 60 days of the date of the permanent move if the individual is otherwise eligible for the special enrollment period.</text> </paragraph> <paragraph num="D."> <text>The effective date of coverage for a qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent who is determined eligible for the special enrollment period under this regulation and selects enrollment in a QHP during the special enrollment period under §C of this regulation shall be:</text> <paragraph num="(1)"> <text>Before January 1, 2025:</text> <paragraph num="(a)"> <text>The first day of the following month for QHP selections received by the Individual Exchange on or before the date of the permanent move;</text> </paragraph> <paragraph num="(b)"> <text>The first day of the following month for QHP selections received by the Individual Exchange after the date of the permanent move between the first and 15th day of a month; or</text> </paragraph> <paragraph num="(c)"> <text>The first day of the second following month for QHP selections received by the Individual Exchange after the date of the permanent move between the 16th and the last day of a month; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>On or after January 1, 2025, the first day of the month following the date that the Individual Exchange receives the QHP selection.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Special Enrollment Period — Other."> <paragraph num="A."> <text>An enrollee or an enrollee’s dependent enrolled in the same plan is eligible for a special enrollment period if the enrollee or enrollee’s dependent:</text> <paragraph num="(1)"> <text>Is determined newly eligible or ineligible for APTC; or</text> </paragraph> <paragraph num="(2)"> <text>Has a change in eligibility for cost-sharing reductions.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A qualified individual or a qualified individual’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent:</text> <paragraph num="(1)"> <text>Experiences a decrease in household income;</text> </paragraph> <paragraph num="(2)"> <text>Is newly determined eligible by the Individual Exchange for APTC; and</text> </paragraph> <paragraph num="(3)"> <text>Had minimum essential coverage as described in 26 CFR §1.5000A-1(b) for one or more days during the 60 days preceding the date of the financial change.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A qualified individual, a qualified individual’s dependent, or an enrollee’s dependent is eligible for a special enrollment period through the Maryland Easy Enrollment Health Insurance Program as codified in Md. Code, Ins. §31.202 if they indicate on a state tax return that they:</text> <paragraph num="(1)"> <text>Attest to not having health care coverage; and</text> </paragraph> <paragraph num="(2)"> <text>Authorize the Comptroller of Maryland to share information from the qualified individual’s tax return with the Maryland Health Benefit Exchange.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A qualified individual or qualified individual’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent is confirmed to be pregnant by a health care practitioner.</text> </paragraph> <paragraph num="E."> <text>A qualified individual who is an Indian, or becomes a dependent of an Indian, may enroll in a QHP or change from one QHP to another, no more than once per month.</text> </paragraph> <paragraph num="F."> <text>A qualified individual or a qualified individual’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent who was not previously a U.S. citizen, a U.S. national, or lawfully present in the U.S. becomes a U.S citizen, a U.S. national, or lawfully present in the U.S.</text> </paragraph> <paragraph num="G."> <text>A qualified individual or a qualified individual’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent who was previously incarcerated becomes newly eligible for a QHP due to satisfying the requirements under 45 CFR §155.305(a)(2).</text> </paragraph> <paragraph num="H."> <text>A qualified individual or qualified individual’s dependent is eligible for a special enrollment period if the qualified individual receives a certificate of exemption under Regulation .20 of this chapter for a hardship based on the eligibility standards set forth in 45 CFR §155.605(d)(i)(iii) for a month or months during the coverage year, and based on the circumstances of the hardship attested to, the qualified individual is no longer eligible for a hardship exemption within a coverage year but outside of an open enrollment period.</text> </paragraph> <paragraph num="I."> <text>A qualified individual or a qualified individual’s dependent is eligible for a special enrollment period if a qualified individual with a certificate of exemption under Regulation .20 of this chapter for a hardship based on the eligibility standards for an exemption, as set forth in 45 CFR §155.620(b), the change resulting from a redetermination is implemented, and the qualified individual or the qualified individual’s dependent is no longer eligible for an exemption.</text> </paragraph> <paragraph num="J."> <text>Individual Coverage Health Reimbursement Arrangements and Qualified Small Employer Health Reimbursement Arrangements.</text> <paragraph num="(1)"> <text>A qualified individual, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent is eligible for a special enrollment period if they newly gain access to an individual coverage health reimbursement arrangement (HRA) (as defined in 45 CFR §146.123(b)) or are newly provided a qualified small employer health reimbursement arrangement (QSEHRA) (as defined in §9831(d)(2) of the Internal Revenue Code).</text> </paragraph> <paragraph num="(2)"> <text>The triggering event is the first day on which coverage for the qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent under the individual coverage HRA can take effect, or the first day on which coverage under the QSEHRA takes effect.</text> </paragraph> <paragraph num="(3)"> <text>A qualified individual, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent qualifies for this special enrollment period regardless of whether they were previously offered or enrolled in an individual coverage HRA or previously provided a QSEHRA, if the qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent is not enrolled in the individual coverage HRA or covered by the QSEHRA on the day immediately prior to the triggering event.</text> </paragraph> </paragraph> <paragraph num="K."> <text>A qualified individual or qualified individual’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent:</text> <paragraph num="(1)"> <text>Applies for coverage on the Exchange during the annual open enrollment period or due to a qualifying event;</text> </paragraph> <paragraph num="(2)"> <text>Is assessed by the Exchange as potentially eligible for Medicaid or MCHP; and</text> </paragraph> <paragraph num="(3)"> <text>Is determined ineligible for Medicaid or MCHP by the Department either after open enrollment has ended or more than 60 days after the qualifying event.</text> </paragraph> </paragraph> <paragraph num="L."> <text>A qualified individual, an enrollee, a qualified individual’s dependent or an enrollee’s dependent is eligible for a special enrollment period if the qualified individual or qualified individual’s dependent experiences a change or triggering event not included in this regulation under 45 CFR §155.420.</text> </paragraph> <paragraph num="M."> <text>A qualified individual, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent is eligible to enroll during any month of the year if:</text> <paragraph num="(1)"> <text>They are eligible for APTC; and</text> </paragraph> <paragraph num="(2)"> <text>Their household income does not exceed 150 percent of the federal poverty line.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Eligibility Windows.</text> <paragraph num="(1)"> <text>A qualified individual, an enrollee, a qualified individual’s dependent, or an enrollee’s dependent shall notify the Individual Exchange of the change in circumstances and select a QHP within the following time frames:</text> <paragraph num="(a)"> <text>For §§A, B, F, and K of this regulation, 60 days after the date of the event that triggers the special enrollment period;</text> </paragraph> <paragraph num="(b)"> <text>For §§E and G—I of this regulation, 60 days before or after the date of the event that triggers the special enrollment period;</text> </paragraph> <paragraph num="(c)"> <text>For §C of this regulation (Maryland Easy Enrollment Health Insurance Program), 35 days after the date specified on the SEP notification letter sent to the qualified individual;</text> </paragraph> <paragraph num="(d)"> <text>For §D of this regulation (pregnancy), 90 days after the date of confirmation of pregnancy by a health care practitioner; and</text> </paragraph> <paragraph num="(e)"> <text>For §J of this regulation, 60 days before the triggering event, unless the HRA or QSEHRA was not required to provide the notice setting forth its terms to such individual or enrollee at least 90 days before the beginning of the plan year, as specified in 45 CFR §146.123(c)(6), 26 CFR §54.9802–4(c)(6), and 29 CFR §2590.702–2(c)(6) or §9831(d)(4) of the Internal Revenue Code, as applicable, in which case the qualified individual, enrollee, or dependent of the individual or enrollee has 60 days before or after the triggering event to select a QHP.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If a qualified individual, an enrollee, a qualified individual’s dependent or an enrollee’s dependent did not receive timely notice of an event that triggers eligibility for a special enrollment period under this chapter, and otherwise was reasonably unaware that a triggering event described in this chapter occurred, the Exchange shall allow the qualified individual, enrollee, or, when applicable, their dependent to select a new plan within 60 days of the date that they knew, or reasonably should have known, of the occurrence of the triggering event.</text> </paragraph> </paragraph> <paragraph num="O."> <text>Enrollment in a QHP selected by a qualified individual, an enrollee, the qualified individual’s dependent, or the enrollee’s dependent during a special enrollment period under this regulation shall be effective:</text> <paragraph num="(1)"> <text>For the special enrollment period under §A of this regulation (newly eligible or ineligible for APTC), §E of this regulation (qualified individual or dependent is an Indian) and §F of this regulation (changes in citizenship status):</text> <paragraph num="(a)"> <text>Before January 1, 2025:</text> <paragraph num="(i)"> <text>The first day of the month after the Individual Exchange receives the QHP selection when the plan has been selected between the first and the 15th of the month; or</text> </paragraph> <paragraph num="(ii)"> <text>The first day of the following month after the Individual Exchange receives the QHP selection when the plan has been selected between the 16th and the last day of the month; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>On or after January 1, 2025, the first day of the month following the date that the Individual Exchange receives the QHP selection.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For the special enrollment period under §D of this regulation (pregnancy):</text> <paragraph num="(a)"> <text>The first day of the month in which pregnancy is confirmed, including retroactive coverage dates; or</text> </paragraph> <paragraph num="(b)"> <text>The first day of the month in which the QHP selection is received by the Individual Exchange;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For the special enrollment period under §G of this regulation (previously incarcerated) and §J of this regulation (newly eligible for an individual coverage HRA or a QSEHRA):</text> <paragraph num="(a)"> <text>Before January 1, 2025:</text> <paragraph num="(i)"> <text>The first day of the month following the triggering event for QHP selections received by the Individual Exchange before the release date or before the triggering event; or</text> </paragraph> <paragraph num="(ii)"> <text>The first day of the following month for QHP selections received by the Individual Exchange after the release date or the triggering event; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>On or after January 1, 2025:</text> <paragraph num="(i)"> <text>The first day of the month following the date that the Individual Exchange receives the QHP selection; or</text> </paragraph> <paragraph num="(ii)"> <text>On the date of the triggering event, if the triggering event is on the first day of a month;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>For the special enrollment period under §K of this regulation (Medicaid or MCHP ineligibility determination), an appropriate date determined by the Exchange based on the circumstances of the special enrollment period; and</text> </paragraph> <paragraph num="(5)"> <text>For special enrollment periods under §B, §C (Maryland Easy Enrollment Health Insurance Program), §L (change or triggering event not included in this regulation under 45 CFR §155.420), and §M (eligible for APTC and household income does not exceed 150 percent of the federal poverty line), the first day of the month following the date that the Individual Exchange receives the QHP selection.</text> </paragraph> </paragraph> <paragraph num="P."> <text>Notwithstanding §O, in the case of untimely notice of a triggering event as described in §N(2) of this regulation, a qualified individual, enrollee, qualified individual’s dependent, or enrollee’s dependent shall have the option of the earliest effective date that would have been available based on the applicable triggering event under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Exemptions."> <paragraph num="A."> <text>As set forth in 45 CFR §155.625(b), the Individual Exchange has delegated administration of all exemption determinations for Maryland residents to HHS.</text> </paragraph> <paragraph num="B."> <text>An applicant shall follow:</text> <paragraph num="(1)"> <text>The procedures specified by HHS to apply for an exemption set forth in 45 CFR Part 155, Subpart G; and</text> </paragraph> <paragraph num="(2)"> <text>The procedures specified by the Internal Revenue Service to apply for an exemption under 26 CFR §1.5000A-3.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Individual Exchange may administer exemption determinations for Maryland residents.</text> </paragraph> <paragraph num="D."> <text>If §C becomes effective, applicants shall follow the procedures specified by the Individual Exchange to apply for an exemption set forth in 26 CFR §1.5000A-3 and 45 CFR Part 155, Subpart G.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="Authorized Representative."> <text>An applicant or enrollee in the Individual Exchange may designate an individual or an organization to act as the applicant or enrollee’s representative as set forth in COMAR 14.35.11.14.</text> </regulation> <regulation prefix="Regulation" num=".22" heading="Medicaid to Private Plan Enrollment Program."> <paragraph num="A."> <text>To the extent permissible by federal law, the Exchange shall enroll an individual into a QHP if the individual was enrolled in Medicaid or MCHP through the Exchange and loses Medicaid or MCHP eligibility after:</text> <paragraph num="(1)"> <text>A redetermination based on a change in circumstances reported after April 15, 2023, pursuant to which the individual is determined eligible for a QHP but does not enroll in a QHP following receipt of the QHP eligibility determination; or</text> </paragraph> <paragraph num="(2)"> <text>A renewal conducted between April 15, 2023, and April 30, 2024, provided the Exchange verifies that the individual’s most recent attested income exceeds the Medicaid-eligible amount as described in Health-General Article, §15-103(a)(2), Annotated Code of Maryland, and the individual meets eligibility requirements under this chapter to enroll in a QHP.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Exchange shall select a plan for an individual described in §A(1) of this regulation on a date no earlier than the seventh day after the date of the QHP eligibility determination.</text> </paragraph> <paragraph num="C."> <text>To the extent permissible by federal law, the Exchange shall select a plan for an individual described in §A(2) of this regulation on a date no earlier than the day immediately following the day that the individual’s Medicaid coverage terminates.</text> </paragraph> <paragraph num="D."> <text>The QHP into which the Exchange enrolls an individual shall be determined by the Exchange using the following guidance:</text> <paragraph num="(1)"> <text>For an individual who has tax household members who are already enrolled in a QHP, the Exchange shall enroll the individual into the household QHP.</text> </paragraph> <paragraph num="(2)"> <text>For an individual who is eligible for a CSR plan for up to 150 percent FPL or a CSR plan for 151—200 percent FPL and does not have tax household members already enrolled in a QHP, the Exchange shall enroll the individual in:</text> <paragraph num="(a)"> <text>The lowest-cost Silver plan in the individual's region, if the individual’s former managed care organization does not have an affiliate offering QHPs in that region; or</text> </paragraph> <paragraph num="(b)"> <text>The lowest-cost Silver plan offered by an affiliate of the individual’s former managed care organization, if an affiliate offers a QHP in the individual’s region.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For an individual who is not eligible for a CSR plan for up to 150 percent FPL or a CSR plan for 151—200 percent FPL and does not have tax household members already enrolled in a QHP, the Exchange shall enroll the individual in a plan based on the following guidance:</text> <paragraph num="(a)"> <text>If an affiliate of the individual’s former managed care organization offers QHPs in the individual’s region, the Exchange shall enroll the individual in the lower-cost option of either:</text> <paragraph num="(i)"> <text>The lowest-cost Gold plan offered by the managed care organization affiliate; or</text> </paragraph> <paragraph num="(ii)"> <text>The lowest-cost Silver plan offered by the managed care organization affiliate.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>If an affiliate of the individual’s former managed care organization does not offer QHPs in the individual’s region, the Exchange shall enroll the individual in the lower-cost option of either:</text> <paragraph num="(i)"> <text>The lowest-cost Gold plan in the region; or</text> </paragraph> <paragraph num="(ii)"> <text>The lowest-cost Silver plan in the region.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>For plans selected for an individual under §A(1) of this regulation, enrollment shall be effective on:</text> <paragraph num="(1)"> <text>The first day of the month following the date of QHP selection pursuant to §B of this regulation, if the selected plan has a premium greater than zero dollars; or</text> </paragraph> <paragraph num="(2)"> <text>The first day of the month following the individual’s confirmation of enrollment, if the selected plan has a premium of zero dollars.</text> </paragraph> </paragraph> <paragraph num="F."> <text>To the extent permissible by federal law, for plans selected for an individual under §A(2) of this regulation, enrollment shall be effective on:</text> <paragraph num="(1)"> <text>The first day of the month following the date of QHP selection pursuant to §C of this regulation, if the selected plan has a premium greater than zero dollars; or</text> </paragraph> <paragraph num="(2)"> <text>The first day of the month following the individual’s confirmation of enrollment, if the selected plan has a premium of zero dollars.</text> </paragraph> </paragraph> <paragraph num="G."> <text>References to “cost” under this regulation mean premium cost to the consumer after APTCs and State-based subsidies are applied.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="QHP Re-Enrollments—In General."> <paragraph num="A."> <text>The Exchange shall redetermine the eligibility of a qualified individual on an annual basis as specified in 45 CFR §155.335.</text> </paragraph> <paragraph num="B."> <text>The Exchange shall provide a qualified individual with an annual redetermination notice as specified in 45 CFR §155.335(c) that adheres to the timing specified in 45 CFR §155.335(d).</text> </paragraph> <paragraph num="C."> <text>If an enrollee remains eligible for enrollment in a QHP through the Exchange upon annual redetermination, the Exchange shall re-enroll the enrollee according to 45 CFR §155.335(j), except as provided for in §E of this regulation.</text> </paragraph> <paragraph num="D."> <text>Consumers eligible for re-enrollment may:</text> <paragraph num="(1)"> <text>Change their plan during open enrollment;</text> </paragraph> <paragraph num="(2)"> <text>If ineligible for automatic re-enrollment, manually re-enroll coverage by:</text> <paragraph num="(a)"> <text>Re-enrolling online through the Maryland Health Connection Consumer Portal;</text> </paragraph> <paragraph num="(b)"> <text>Re-enrolling with the assistance of an Individual Exchange Navigator, certified application counselor, or insurance producer; or</text> </paragraph> <paragraph num="(c)"> <text>Calling the MHC call center; or</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Decline re-enrollment.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Re-Enrollment into Higher Value Plans.</text> <paragraph num="(1)"> <text>Unless the enrollee terminates coverage, including termination of coverage in connection with voluntarily selecting a different QHP in accordance with 45 CFR §155.430, the exchange shall follow the procedure detailed in §E(2) of this regulation to re-enroll an enrollee into a plan other than the enrollee's original plan or plan identified by the carrier pursuant to §F of this regulation if the enrollee:</text> <paragraph num="(a)"> <text>Remains eligible for enrollment in a QHP through the Exchange upon annual redetermination;</text> </paragraph> <paragraph num="(b)"> <text>Is determined, upon annual redetermination, eligible for cost-sharing reductions in accordance with 45 CFR §155.305(g);</text> </paragraph> <paragraph num="(c)"> <text>Is currently enrolled in a bronze level QHP that is not a high deductible health plan compatible with a health savings account as defined in 26 U.S.C. §223; and</text> </paragraph> <paragraph num="(d)"> <text>Would be re-enrolled in a bronze level QHP that is not a high deductible health plan compatible with a health savings account as defined in 26 U.S.C. §223 under §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Exchange shall re-enroll enrollees that meet the criteria of §E(1) of this regulation in the QHP:</text> <paragraph num="(a)"> <text>With the highest actuarial value available;</text> </paragraph> <paragraph num="(b)"> <text>Within the same product;</text> </paragraph> <paragraph num="(c)"> <text>With the same provider network; and</text> </paragraph> <paragraph num="(d)"> <text>Which, compared to the original bronze level QHP into which the Exchange would otherwise re-enroll the enrollee under §B of this regulation, and after the application of advance payment of the premium tax credit and young adult subsidy under COMAR 14.35.19, has a premium that is:</text> <paragraph num="(i)"> <text>Lower; or</text> </paragraph> <paragraph num="(ii)"> <text>Equivalent.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>For QHPs that carriers plan to discontinue, enrollees in those QHPs shall be re-enrolled into QHPs determined by carrier-submitted plan re-enrollment templates according to COMAR 14.35.15.05O.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §31-106(c)(1)(iv), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: April 15, 2013 (40:7 Md. R. 612)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 repealed and new Regulations .01—.21 adopted effective March 11, 2019 (46:5 Md. R. 307)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08E amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11B, D amended effective June 13, 2022 (49:12 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11F amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective June 13, 2022 (49:12 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12E amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12E, F amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13B, E amended effective June 13, 2022 (49:12 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13E amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14E amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14G adopted effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18A, D amended effective June 13, 2022 (49:12 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18D amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 amended effective June 13, 2022 (49:12 Md. R. 642)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19M, O amended effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .19 N amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .22 adopted as an emergency provision effective May 10, 2023 (50:11 Md. R. 444); adopted permanently effective October 16, 2023 (50:20 Md. R. 889)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23 adopted effective August 5, 2024 (51:15 Md. R. 710)</annotation> </annotations> </chapter> <chapter num="08" heading="Captive Producer Training and Authorization Standards"> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv) and 31-113(p), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C repealed effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 — .06 repealed effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="09" heading="Consolidated Service Center Employee Training and Permit Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the qualifications, training, and permit standards for an individual who applies to receive a Consolidated Service Center enrollment permit for the Individual Exchange and is required under Insurance Article, §31-113.1(c), Annotated Code of Maryland, to hold an Individual Exchange enrollment permit.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administration” means Maryland Insurance Administration.</text> </paragraph> <paragraph num="(2)"> <text>“Commissioner” means the Maryland Insurance Commissioner.</text> </paragraph> <paragraph num="(3)"> <text>“Consolidated Service Center” or “CSC” has the meaning stated in Insurance Article, §31-101(c-2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Department” means the Maryland Department of Health.</text> </paragraph> <paragraph num="(5)"> <text>“Exchange” has the meaning stated in Insurance Article, §31-101(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Individual Exchange” has the meaning stated in Insurance Article, §31-101(h), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility Requirements."> <text>To qualify for an Individual Exchange CSC enrollment permit, an applicant shall meet the requirements set forth under Insurance Article, §31-113.1(c)(3), Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Application Procedures."> <paragraph num="A."> <text>In order to obtain an Individual Exchange CSC enrollment permit, the applicant shall submit to the Exchange all required materials set forth under COMAR 14.35.02.03A.</text> </paragraph> <paragraph num="B."> <text>The Exchange may not consider an application to be complete until it has received all required materials.</text> </paragraph> <paragraph num="C."> <text>If the application is not completed with all required materials within 45 days after the Exchange receives the signed application form, the Exchange may consider the application withdrawn.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Training Requirements."> <text>In order to obtain an Individual Exchange CSC enrollment permit, an individual shall:</text> <paragraph num="A."> <text>Complete the training program specified under Insurance Article, §31-113(k), Annotated Code of Maryland, and COMAR 14.35.02.04A; and</text> </paragraph> <paragraph num="B."> <text>Successfully pass the examination specified under COMAR 14.35.02.04D.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="General Permit Requirements."> <paragraph num="A."> <text>Term. An Individual Exchange CSC enrollment permit expires 2 years after the date it is issued unless it is renewed.</text> </paragraph> <paragraph num="B."> <text>Renewal. A CSC employee holding an Individual Exchange CSC enrollment permit shall apply for renewal of the permit in accordance with the requirements set forth under COMAR 14.35.03.02.</text> </paragraph> <paragraph num="C."> <text>Suspension or Revocation.</text> <paragraph num="(1)"> <text>The Commissioner may suspend or revoke an Individual Exchange CSC enrollment permit for the reasons listed under Insurance Article, §31-113(l)(1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>An Individual Exchange CSC enrollment permit is no longer valid upon an individual’s voluntary or involuntary termination from employment or engagement by the Consolidated Services Center.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv) and 31-113.1, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06C repealed effective June 15, 2020 (47:12 Md. R. 597)</annotation> </annotations> </chapter> <chapter num="10" heading="Appeals from Determinations Regarding Producer Authorization or Individual Exchange Navigator Certification"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to contested case hearings delegated by the Board to the Office in accordance with State Government Article, §10- 205(a)(1)(ii), Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Except as explicitly stated in this chapter, COMAR 28.02.01 governs the conduct of a hearing before the Office of Administrative Hearings.</text> </paragraph> <paragraph num="C."> <text>Determinations entitled to contested case appeals. This chapter applies only to the appeal of an Exchange determination regarding:</text> <paragraph num="(1)"> <text>Suspension of SHOP Exchange producer authorization;</text> </paragraph> <paragraph num="(2)"> <text>Revocation of SHOP Exchange producer authorization;</text> </paragraph> <paragraph num="(3)"> <text>Renewal of SHOP Exchange producer authorization;</text> </paragraph> <paragraph num="(4)"> <text>Suspension of Individual Exchange producer authorization;</text> </paragraph> <paragraph num="(5)"> <text>Revocation of Individual Exchange producer authorization;</text> </paragraph> <paragraph num="(6)"> <text>Renewal of Individual Exchange producer authorization; and</text> </paragraph> <paragraph num="(7)"> <text>Denial of Individual Exchange initial navigator certification.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administrative law judge” has the meaning set forth under COMAR 28.02.01.02B(1).</text> </paragraph> <paragraph num="(2)"> <text>“Board means the Maryland Health Benefit Exchange Board of Trustees.</text> </paragraph> <paragraph num="(3)"> <text>Contested Case.</text> <paragraph num="(a)"> <text>Contested case” has the meaning stated in State Government Article, §10-202(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Contested case” includes a proceeding:</text> <paragraph num="(i)"> <text>Arising out of a determination made by the Board;</text> </paragraph> <paragraph num="(ii)"> <text>Regarding an authorization, certification, or permit issued by the Exchange; or</text> </paragraph> <paragraph num="(iii)"> <text>Arising out of any act of or failure to act by the Board, involving an authorization or a certification issued by the Exchange, that aggrieves a person.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Contested case” does not include any other quasi-legislative hearing.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Determination.</text> <paragraph num="(a)"> <text>“Determination” means a decision by the Board that requires the Board to provide the opportunity for a hearing to a person aggrieved by the decision.</text> </paragraph> <paragraph num="(b)"> <text>“Determination” includes:</text> <paragraph num="(i)"> <text>A decision as to whether a person against whom an administrative complaint has been received violated a law, regulation, or order; and</text> </paragraph> <paragraph num="(ii)"> <text>An order issued pursuant to the Board’s authority.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Exchange” means the Maryland Health Benefit Exchange.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the Executive Director of the Maryland Health Benefit Exchange, appointed pursuant to Insurance Article, §31-105, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Hearing officer” means the Board or the Board’s authorized designee.</text> </paragraph> <paragraph num="(8)"> <text>“Maryland Health Benefit Exchange” has the meaning set forth under Insurance Article, §31-101(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Office” means the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(10)"> <text>“Person” has the meaning set forth under COMAR 28.02.01.02B(12).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Request for Hearing — In General."> <paragraph num="A."> <text>Scope. This regulation applies to all requests for a hearing permitted under Regulation .01C of this chapter.</text> </paragraph> <paragraph num="B."> <text>A person aggrieved may request a hearing by submitting a written statement to the Office, signed by the requesting person and containing the following information:</text> <paragraph num="(1)"> <text>The action or nonaction of the Exchange causing the person requesting the hearing to be aggrieved;</text> </paragraph> <paragraph num="(2)"> <text>The facts related to the incident or incidents about which the person requests the Exchange to act or not to act; and</text> </paragraph> <paragraph num="(3)"> <text>The ultimate relief requested.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Request to Be Received Within 30 Calendar Days.</text> <paragraph num="(1)"> <text>The request shall be received by the Office within 30 days of the date of the letter notifying the party of the Exchange’s action, intention to act, or failure to act.</text> </paragraph> <paragraph num="(2)"> <text>In calculating the 30-day period, the date of the letter notifying the party of the Exchange’s action, intention to act, or failure to act is not included.</text> </paragraph> <paragraph num="(3)"> <text>The end of a day is considered to be 11:59 p.m. Eastern Time.</text> </paragraph> <paragraph num="(4)"> <text>The last day of the 30-day period is included unless it is a Saturday, Sunday, legal holiday, or day that the Office of Administrative Hearings is closed for a part of the day.</text> </paragraph> <paragraph num="(5)"> <text>If the last day of the 30-day period is a Saturday, Sunday, legal holiday, or a day that the Office of Administrative Hearings is closed for a part of the day, the 30-day period runs until the end of the next day which is not a Saturday, Sunday, legal holiday, or day that the Office of Administrative Hearings is closed for a part of the day.</text> </paragraph> <paragraph num="(6)"> <text>Intermediate Saturdays, Sundays, legal holidays, and days that the Office of Administrative Hearings is closed for a part of the day shall be counted toward the 30-day period.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Upon receipt of a proper request, the Office shall grant a hearing unless, in viewing the facts set forth by the person making the request, in the light most favorable to that person, the Office determines that:</text> <paragraph num="(1)"> <text>The Office has no authority to take action;</text> </paragraph> <paragraph num="(2)"> <text>The request does not contain the information required by these regulations;</text> </paragraph> <paragraph num="(3)"> <text>The request is untimely; or</text> </paragraph> <paragraph num="(4)"> <text>The request is moot.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Delegation of Authority."> <paragraph num="A."> <text>Scope. This regulation applies to all requests for a hearing permitted under Regulation .01C of this chapter.</text> </paragraph> <paragraph num="B."> <text>In accordance with State Government Article, §10-205(a)(1)(ii), Annotated Code of Maryland, the Board delegates to the Office the authority to:</text> <paragraph num="(1)"> <text>Conduct a contested case hearing; and</text> </paragraph> <paragraph num="(2)"> <text>Issue:</text> <paragraph num="(a)"> <text>Final findings of fact and conclusions of law; and</text> </paragraph> <paragraph num="(b)"> <text>A proposed order.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The Board may revoke all or part of a delegation of authority to preside over a hearing if:</text> <paragraph num="(1)"> <text>The case:</text> <paragraph num="(a)"> <text>Involves novel or unanticipated factual or legal issues;</text> </paragraph> <paragraph num="(b)"> <text>Has significant social, fiscal, or legal issues;</text> </paragraph> <paragraph num="(c)"> <text>Involves policy issues; or</text> </paragraph> <paragraph num="(d)"> <text>Requires further investigation; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Board determines that revocation of all or part of the delegation of authority is otherwise in the public interest.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Procedure for Revocation.</text> <paragraph num="(1)"> <text>The Board shall provide written notice of a revocation of hearing authority to all parties and the entity conducting the contested case hearing under State Government Article, §10-205(a)(1)(ii), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The written notice shall contain a brief statement of the reason for the revocation.</text> </paragraph> <paragraph num="(3)"> <text>Delegation of authority to hear a contested case may be revoked at any time before the earlier of the:</text> <paragraph num="(a)"> <text>Issuance of a ruling by the entity delegated authority to conduct a contested case hearing under §A of this regulation on a substantive issue; or</text> </paragraph> <paragraph num="(b)"> <text>Taking of oral testimony from the first witness.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The Board shall specify whether all or part of the delegation to hear a contested case has been revoked.</text> </paragraph> <paragraph num="(5)"> <text>If only part of the delegation has been revoked, the Board shall specify in the written notice of revocation the portions of the contested case for which the delegation has been revoked.</text> </paragraph> <paragraph num="(6)"> <text>On revocation of the delegation, the Board shall:</text> <paragraph num="(a)"> <text>Cause further investigation;</text> </paragraph> <paragraph num="(b)"> <text>Set the contested case for a hearing with the Board or the Board's designee acting as the hearing officer as permitted under State Government Article, §10-205(a)(1)(ii), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>Dismiss the contested case.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Service of Notices, Decisions, Orders, and Other Documents."> <paragraph num="A."> <text>The Office shall provide notice of a hearing, decisions, orders and other documents issued by the Office pursuant to State Government Article, §§10-208 and 10-209, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>A hearing may be rescheduled if there is satisfactory showing that the notice was sent not less than 30 calendar days before the hearing, or upon agreement of all parties.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Default Orders."> <paragraph num="A."> <text>With respect to hearings conducted on behalf of the Exchange, a hearing officer may issue a proposed default order against a party other than the Exchange that, after receiving proper notice, fails to appear at a hearing if:</text> <paragraph num="(1)"> <text>Notice is issued by the Office, and the party failing to appear is the person against whom the notice was issued; or</text> </paragraph> <paragraph num="(2)"> <text>In any other contested case hearing, the party failing to appear is the person that requested the hearing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In a hearing arising out of a notice or determination issued by the Exchange, the proposed default order shall:</text> <paragraph num="(1)"> <text>State the facts supporting the finding of proper notice to the person against whom the notice or determination was issued;</text> </paragraph> <paragraph num="(2)"> <text>Adopt the facts and violations of law as alleged by the Exchange in its notice or determination as if by admission of the person against whom the charging document, order or notice was issued; and</text> </paragraph> <paragraph num="(3)"> <text>Adopt the sanction requested by the Exchange at the hearing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The hearing officer shall serve the proposed default order directly on the parties by certified mail.</text> </paragraph> <paragraph num="D."> <text>Within 15 calendar days after service of a proposed default order, the party in default may submit to the Board a written motion:</text> <paragraph num="(1)"> <text>Requesting that the proposed default order be vacated or modified; and</text> </paragraph> <paragraph num="(2)"> <text>Stating the grounds for the request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the Board finds that there is:</text> <paragraph num="(1)"> <text>Good cause to excuse the default, the Board may:</text> <paragraph num="(a)"> <text>Vacate or modify the default order; and</text> </paragraph> <paragraph num="(b)"> <text>Schedule the case for further appropriate proceedings; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No good cause to excuse the default, the Board shall:</text> <paragraph num="(a)"> <text>Deny the motion; and</text> </paragraph> <paragraph num="(b)"> <text>Affirm the proposed default order as the final order.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Administrative Decisions."> <paragraph num="A."> <text>Contents. The hearing officer shall submit to the Board a decision that contains:</text> <paragraph num="(1)"> <text>Final findings of fact and conclusions of law; and</text> </paragraph> <paragraph num="(2)"> <text>A proposed order.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Effect of Regulations, Bulletins, and Preexisting Policies. In making a decision, the Office is bound by any regulation, bulletin, final order, or settled and preexisting policy of the Board to the same extent that the Board is or would have been bound if the Board were hearing the case.</text> </paragraph> <paragraph num="C."> <text>Distribution of Decision. The Office shall send its decision directly to the parties and the Board.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Exceptions."> <paragraph num="A."> <text>On receipt of a decision that contains proposed findings of fact, proposed conclusions of law, or a proposed order, the parties affected have:</text> <paragraph num="(1)"> <text>20 calendar days after receipt to request to present argument, file exceptions to the proposed order with the Board, or both of these; or</text> </paragraph> <paragraph num="(2)"> <text>10 calendar days to:</text> <paragraph num="(a)"> <text>File a written request for a transcript, at the party’s own expense, with the Board in order to file exceptions; or</text> </paragraph> <paragraph num="(b)"> <text>File with the Board a copy of that party's written request to its stenographer, at the party’s own expense, for the party's preparation of a transcript based on its own record of the testimony in order to file exceptions.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Receipt under §A of this regulation is presumed to occur 3 calendar days after the mailing of the proposed order.</text> </paragraph> <paragraph num="C."> <text>Filing Exceptions After Receipt of Transcript.</text> <paragraph num="(1)"> <text>If a party requests a transcript under §A(2) of this regulation, the party shall have 30 calendar days after the filing of the transcript to file a request to present argument, exceptions, or both of these with the Board.</text> </paragraph> <paragraph num="(2)"> <text>Unless extended by order of the Board, the party requesting the transcript shall file the transcript with the Board within 60 calendar days after the date on which the transcript was requested.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Exceptions shall be in writing unless specified otherwise by the Board.</text> </paragraph> <paragraph num="E."> <text>If a party elects not to offer argument or file exceptions, another party may not raise the defense of failure to exhaust this administrative remedy on appeal to circuit court.</text> </paragraph> <paragraph num="F."> <text>If a party requests the opportunity to offer argument, the Board shall grant the request and allow the party to present argument to a majority of the Board.</text> </paragraph> <paragraph num="G."> <text>The record before the Board for the exceptions shall consist of:</text> <paragraph num="(1)"> <text>The Office’s findings and conclusions, including the findings of fact, conclusions of law, and proposed order;</text> </paragraph> <paragraph num="(2)"> <text>Any exceptions filed by a party;</text> </paragraph> <paragraph num="(3)"> <text>Any response to exceptions filed by a party;</text> </paragraph> <paragraph num="(4)"> <text>Any evidence submitted by a party;</text> </paragraph> <paragraph num="(5)"> <text>Notice to the parties of the hearing;</text> </paragraph> <paragraph num="(6)"> <text>Any documentary evidence admitted into evidence by the Office; and</text> </paragraph> <paragraph num="(7)"> <text>The transcript of the hearing before the Office, if requested and filed by one of the parties or the Board.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Transcripts.</text> <paragraph num="(1)"> <text>A party who desires to have the transcript made part of the record shall, at the party's own expense, file three copies of the transcript, or its relevant portions, with the Board on receipt of the transcript.</text> </paragraph> <paragraph num="(2)"> <text>If a transcript has already been prepared, the Board shall make the transcript part of the record in the contested case.</text> </paragraph> <paragraph num="(3)"> <text>If a transcript is prepared based on the Office’s record of the testimony and a transcript is prepared based on a party's own record of the testimony, the transcript based on the Office’s record of the testimony is:</text> <paragraph num="(a)"> <text>The official transcript; and</text> </paragraph> <paragraph num="(b)"> <text>Controlling in the event of any conflict between the two transcripts.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the transcript is not filed or otherwise made part of the record in the contested case, parties may not refer in their exceptions to any testimony before the Office not incorporated into the Office’s findings and conclusions.</text> </paragraph> <paragraph num="(5)"> <text>If all parties agree that the questions presented for review to the final decision maker can be determined without an examination of the entire transcript, the parties may file a statement showing how the questions arose and setting forth the facts or allegations that are essential to a determination of those issues.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Final Order Following Proposed Decision."> <paragraph num="A."> <text>Issuance. After consideration of the Office’s proposed order, and any exceptions filed by the parties, the Board shall issue a final order or a remand order.</text> </paragraph> <paragraph num="B."> <text>Effect of Proposed Order. In reviewing the Office’s proposed order, the Board is:</text> <paragraph num="(1)"> <text>Bound by the findings of fact that are supported by competent, material, and substantial evidence; and</text> </paragraph> <paragraph num="(2)"> <text>Not bound by any legal analysis, conclusions of law, or proposed order.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Types of Action by the Board. The Board may affirm, reverse, or modify the findings of fact that are supported by competent, material, and substantial evidence, conclusions of law, or proposed order, or remand the case to the Office for further proceedings by setting forth, with particularity, the basis for the Board’s reversal, modification, or remand.</text> </paragraph> <paragraph num="D."> <text>Procedure When Case Remanded. If the Board remands the case for further proceedings, the Board may:</text> <paragraph num="(1)"> <text>Refer the case back to the Office; or</text> </paragraph> <paragraph num="(2)"> <text>Retain the case to be heard by the Board.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Rehearing. The Board may, on the Board's own motion, hold a rehearing.</text> </paragraph> <paragraph num="F."> <text>Service of Order. The Board shall serve a copy of the final order or remand order on the parties, the parties' attorneys of record, and the entity by first-class mail.</text> </paragraph> <paragraph num="G."> <text>Effect of Summary Affirmance.</text> <paragraph num="(1)"> <text>If the Board issues a final order that summarily affirms the proposed order of the Office without discussing the facts and legal issues and without expressly adopting the Office’s legal analysis and conclusions of law, neither the final order nor the proposed order is precedent within the rule of stare decisis.</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding §G(1) of this regulation, a final order of the Board that summarily affirms the proposed order of the Office without discussing the facts and legal issues and without expressly adopting the Office’s legal analysis and [proposed] conclusions of law may be cited and relied on in a proceeding before the Board, the Office, or a court:</text> <paragraph num="(a)"> <text>When relevant under the doctrine of the law of the case, res judicata, or collateral estoppel; or</text> </paragraph> <paragraph num="(b)"> <text>In any subsequent disciplinary proceeding involving a party to the final order.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If a party appeals from a final order of the Board that summarily affirms the proposed order of the Office, in addition to filing the final order of the Board with the court in which the appeal is pending, the Board also shall file a copy of the proposed order of the Office.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Decisions."> <text>The Board shall sign the final order, and the order is effective when issued unless a different date is specified in the decision. A copy of the final order shall be filed with the Exchange and served on all parties to the hearing.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Mistake or Error in the Final Order."> <text>The Board may correct an order if, upon review, the final order was issued as a result of fraud, mistake, or inadvertence or contains a clerical error.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Judicial Review."> <text>A party adversely affected by a final decision of the Board, or the entity delegated authority to make the final decision, may obtain judicial review of the decision as provided by law.</text> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv), 31-112, and 31-113; State Government Article, Title 10, Subtitle 2; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective July 10, 2023 (50:13 Md. R. 513)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01C amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="11" heading="Fair Hearings of Individual Exchange Eligibility Determinations"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter applies to eligibility determinations and redeterminations for enrollment in qualified health plans, advance payments of the premium tax credit, cost-sharing reductions, and State-based subsidies offered through the Individual Exchange, as well as for MAGI-based eligibility determinations and redeterminations for the Maryland State Medicaid program and the Maryland Children’s Health Insurance Program.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Administrative law judge” means an individual appointed by the Chief Administrative Law Judge under State Government Article, §9-1604, Annotated Code of Maryland, or designated by the Chief Administrative Law Judge under State Government Article, §9-1607, Annotated Code of Maryland, to adjudicate contested cases at the Maryland Office of Administrative Hearings.</text> </paragraph> <paragraph num="(2)"> <text>“Affordable Care Act” means the Patient Protection and Affordable Care Act of 2010 (Pub.L. 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Pub.L. 111-152), as amended by the Three Percent Withholding Repeal and Job Creation Act (Pub.L. 112-56).</text> </paragraph> <paragraph num="(3)"> <text>“Appellant” means any individual who requests a fair hearing for the reasons specified in Regulation .03 of this chapter or that individual’s authorized representative, whether regarding an initial determination or a redetermination.</text> </paragraph> <paragraph num="(4)"> <text>“Authorized representative” has the same meaning as in Regulation .14 of this chapter.</text> </paragraph> <paragraph num="(5)"> <text>“Catastrophic plan” means a plan established under §1302(e) of the Affordable Care Act.</text> </paragraph> <paragraph num="(6)"> <text>“Consolidated Services Center” means the call center operated by the Maryland Health Benefit Exchange to assist consumers who apply for, or participate in, a qualified health plan or the insurance affordability programs offered through the Maryland Health Connection.</text> </paragraph> <paragraph num="(7)"> <text>“Delegate agency” means the Department of Human Services and its affiliate local departments which, under contractual agreements with the Department, determine initial and continuing eligibility in the Program.</text> </paragraph> <paragraph num="(8)"> <text>“Department” means the Maryland Department of Health, the single State agency which, pursuant to Title XIX of the Social Security Act, implements fair hearing requirements for Program applicants and recipients.</text> </paragraph> <paragraph num="(9)"> <text>“Individual Exchange” has the meaning stated in Insurance Article, §31-101(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Insurance affordability program” means a program that is one of the following:</text> <paragraph num="(a)"> <text>The Maryland State Medicaid program;</text> </paragraph> <paragraph num="(b)"> <text>The Maryland Children’s Health Insurance Program (CHIP), including the program known as Maryland Children’s Health Program (MCHP) Premium;</text> </paragraph> <paragraph num="(c)"> <text>A State basic health program established under §1331 of the Affordable Care Act;</text> </paragraph> <paragraph num="(d)"> <text>A program that makes available to eligible individuals coverage in a qualified health plan through the Maryland Health Benefit Exchange with advance payments of the premium tax credit established under §36B of the Internal Revenue Code;</text> </paragraph> <paragraph num="(e)"> <text>A program that makes available to eligible individuals coverage in a qualified health plan through the Maryland Health Benefit Exchange with cost-sharing reductions established under §1402 of the Affordable Care Act; or</text> </paragraph> <paragraph num="(f)"> <text>The State-Based Young Adult Health Insurance Subsidies Program established under Insurance Article, §31-122, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“MAGI” means modified adjusted gross income, as calculated for purposes of determining or redetermining eligibility for insurance affordability programs under the Affordable Care Act, as defined in 26 CFR §1.36B-1(e)(2).</text> </paragraph> <paragraph num="(12)"> <text>“Maryland Health Benefit Exchange” or “Exchange” means the unit of State government that determines initial and continuing eligibility for the MAGI-based insurance affordability programs, including, by delegation, certain eligibility in the Program.</text> </paragraph> <paragraph num="(13)"> <text>“Maryland Health Connection” means the electronic eligibility system maintained by the Maryland Health Benefit Exchange.</text> </paragraph> <paragraph num="(14)"> <text>“Program” means the Department’s Medical Assistance Program.</text> </paragraph> <paragraph num="(15)"> <text>Qualified Health Plan.</text> <paragraph num="(a)"> <text>“Qualified health plan” means a health benefit plan that has been certified by the Maryland Health Benefit Exchange to meet the criteria for certification described in §1311(c) of the Affordable Care Act and Insurance Article, §31-115, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Qualified health plan” includes a catastrophic plan.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Opportunity for a Fair Hearing."> <paragraph num="A."> <text>An opportunity for a fair hearing shall be granted if an applicant claims that:</text> <paragraph num="(1)"> <text>The determination or redetermination received from the Exchange of the applicant’s eligibility for enrollment in a qualified health plan is incorrect;</text> </paragraph> <paragraph num="(2)"> <text>The determination or redetermination received from the Exchange of the applicant’s eligibility for an insurance affordability program is incorrect; or</text> </paragraph> <paragraph num="(3)"> <text>The determination or redetermination received from the Exchange of the applicant’s eligibility for enrollment in a qualified health plan or an insurance affordability program is untimely as set forth in applicable law.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The administrative law judge need not grant a fair hearing if the sole issue is a federal or State law requiring an automatic change adversely affecting some or all applicants.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Notification of Right to Request a Fair Hearing."> <paragraph num="A."> <text>The Exchange shall notify an individual and the individual’s authorized representative, if previously designated by the individual or recognized as valid by the Exchange, in writing:</text> <paragraph num="(1)"> <text>Of the right to obtain a fair hearing;</text> </paragraph> <paragraph num="(2)"> <text>Of the method to obtain the hearing;</text> </paragraph> <paragraph num="(3)"> <text>That the individual may represent the individual or use an authorized representative at a fair hearing;</text> </paragraph> <paragraph num="(4)"> <text>Of the circumstances under which the individual’s eligibility may be maintained or reinstated pending an appeal decision; and</text> </paragraph> <paragraph num="(5)"> <text>That an appeal decision for one household member may result in a change in eligibility for other household members, and that such a change will be handled as a redetermination of eligibility for other household members.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The notification specified in §A of this regulation shall:</text> <paragraph num="(1)"> <text>Be provided by the Exchange when:</text> <paragraph num="(a)"> <text>The individual applies for enrollment in a qualified health plan and, if applicable, for an insurance affordability program; or</text> </paragraph> <paragraph num="(b)"> <text>Any Exchange action affects the individual’s claim to enrollment in a qualified health plan, or to eligibility for, or the amount of, an insurance affordability program.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Include a statement of the action the Exchange intends to take;</text> </paragraph> <paragraph num="(3)"> <text>Include the reasons for the intended action;</text> </paragraph> <paragraph num="(4)"> <text>Include the specific regulations that support, or the change in federal or State law that requires, the action;</text> </paragraph> <paragraph num="(5)"> <text>To the extent required by law for Program benefits, include an explanation of the individual’s right to request a fair hearing, including that expenses incurred in connection with a fair hearing, such as transportation and baby-sitting costs, but not including attorney’s fees, shall be paid by the Department when incurred by the appellant and may be paid by the Department when incurred by the appellant’s witnesses;</text> </paragraph> <paragraph num="(6)"> <text>Include information about fair hearings;</text> </paragraph> <paragraph num="(7)"> <text>Include an explanation of the circumstances under which Program benefits are continued if a fair hearing is requested as provided in Regulation .05 of this chapter;</text> </paragraph> <paragraph num="(8)"> <text>Identify who may act as an authorized representative of the appellant in the fair hearing process, explain how an applicant may designate an authorized representative, and provide information about designation procedures under Regulation .14 of this chapter;</text> </paragraph> <paragraph num="(9)"> <text>Specify that the appellant or the appellant’s authorized representative may examine the appellant’s records upon reasonable notice to the Exchange; and</text> </paragraph> <paragraph num="(10)"> <text>For termination of Program benefits, be mailed at least 10 days before the date of action except as specified under COMAR 10.01.04.03C.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The notice specified in §A of this regulation shall be mailed in accordance with 45 CFR §155.310(g) if the action is a determination or redetermination regarding eligibility for enrollment in a qualified health plan or eligibility for an insurance affordability program described in Regulation .02B(10)(d) or (e) of this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Request for Fair Hearing."> <paragraph num="A."> <text>Statement of Request.</text> <paragraph num="(1)"> <text>Any individual, either personally or through an authorized representative, may request a fair hearing by giving a clear statement, oral, electronic, or written, that the individual desires an opportunity to present for review any matter which is the proper subject of a fair hearing as provided in Regulation .03 of this chapter. The request shall be made by:</text> <paragraph num="(a)"> <text>Contacting the Exchange in writing, by mail, telephone, email, or fax;</text> </paragraph> <paragraph num="(b)"> <text>Contacting the Consolidated Services Center maintained by the Exchange by mail, telephone, or fax;</text> </paragraph> <paragraph num="(c)"> <text>Contacting the delegate agency in person or by mail, telephone, or fax;</text> </paragraph> <paragraph num="(d)"> <text>Contacting the Department’s Office of Health Services in person or by mail, telephone, or fax; or</text> </paragraph> <paragraph num="(e)"> <text>Contacting the Office of Administrative Hearings in person, or by mail or fax.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Program’s Office of Health Services, the Exchange, the Consolidated Services Center, or the delegate agency that is contacted by an appellant or the appellant’s authorized representative about requesting a hearing shall assist the appellant or the appellant’s authorized representative in preparing the request.</text> </paragraph> <paragraph num="(3)"> <text>The Program’s Office of Health Services, the Exchange, the Consolidated Services Center, or the delegate agency that receives or prepares a written statement on behalf of the appellant or the appellant’s authorized representative requesting an appeal shall:</text> <paragraph num="(a)"> <text>Immediately forward an applicant’s statement to the Office of Administrative Hearings;</text> </paragraph> <paragraph num="(b)"> <text>Indicate whether the appeal is for a determination or redetermination of eligibility to enroll in a qualified health plan or eligibility for an insurance affordability program, if known; and</text> </paragraph> <paragraph num="(c)"> <text>Note in its correspondence with the Office of Administrative Hearings if the appeal:</text> <paragraph num="(i)"> <text>Concerns an immediate need for health services where the appellant’s life, health, or ability to attain, maintain, or regain maximum function would be jeopardized by the standard appeal process; and</text> </paragraph> <paragraph num="(ii)"> <text>To the extent required by applicable law, must be heard and decided within 3 working days after the Office of Administrative Hearings receives the fair hearing request.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a request for a hearing is made by someone other than the applicant, the Office of Administrative Hearings shall:</text> <paragraph num="(a)"> <text>Treat the appeal as timely noted if it complies with §D of this regulation, provided documentation pursuant to §A(4)(b) is provided on or before the hearing date, except that no documentation shall be required for representation pursuant to §A(4)(c) of this regulation;</text> </paragraph> <paragraph num="(b)"> <text>Accept appropriate documentation, up to and including the date of the fair hearing, demonstrating that the representative is authorized; and</text> </paragraph> <paragraph num="(c)"> <text>Accept the representation of any member of the bar of Maryland that the individual appellant is the member’s client without further documentation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Acknowledgement. The Office of Administrative Hearings shall:</text> <paragraph num="(1)"> <text>Send timely acknowledgement to the appellant, and the appellant’s authorized representative, if applicable, of the receipt of the fair hearing request;</text> </paragraph> <paragraph num="(2)"> <text>Give advance notice in writing of the date, time, and place of the fair hearing;</text> </paragraph> <paragraph num="(3)"> <text>Provide the appellant with the information specified in Regulation .04A(4) of this chapter; and</text> </paragraph> <paragraph num="(4)"> <text>Provide an explanation that any advance payments of the premium tax credit paid on behalf of the appellant pending appeal are subject to reconciliation pursuant to 26 CFR §1.36B-4.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Postponements.</text> <paragraph num="(1)"> <text>If any party notifies the Office of Administrative Hearings that either the time or place designated by the Office of Administrative Hearings is not convenient to the party, and requests a different time or place for the fair hearing, the administrative law judge shall designate another time or place convenient to the parties if the administrative law judge deems that the party has sufficient reason for requesting the change.</text> </paragraph> <paragraph num="(2)"> <text>If the appellant is employed during the periods when fair hearings are normally held, the administrative law judge shall attempt to schedule the hearing so that the appellant will not be required to miss employment.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Timeliness of Appeal. A request for a fair hearing may not be granted unless the request pursuant to §A of this regulation is filed within 90 days of the receipt of the notification specified in Regulation .04A of this chapter, in one of the following methods:</text> <paragraph num="(1)"> <text>Postmarked, delivered in person, or faxed to the Office of Administrative Hearings;</text> </paragraph> <paragraph num="(2)"> <text>Postmarked, emailed, telephoned, or faxed to the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>Postmarked, telephoned, or faxed to the Consolidated Services Center;</text> </paragraph> <paragraph num="(4)"> <text>Postmarked, delivered in person, telephoned, or faxed to the delegate agency; or</text> </paragraph> <paragraph num="(5)"> <text>Postmarked, delivered in person, telephoned, or faxed to the Department’s Office of Health Services.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Dismissal.</text> <paragraph num="(1)"> <text>The Exchange or the Office of Administrative Hearings may dismiss a request for a fair hearing when the appeal has been:</text> <paragraph num="(a)"> <text>Withdrawn in writing, either electronically or in hard copy; or</text> </paragraph> <paragraph num="(b)"> <text>Abandoned.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An appellant shall be deemed to have abandoned the appellant’s request for a fair hearing if the appellant fails to appear for the fair hearing on the established date without good cause as determined by the administrative law judge.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Program’s Response. In responding to timely filed requests for a fair hearing, the Office of Administrative Hearings:</text> <paragraph num="(1)"> <text>May respond to a series of individual requests for hearing by conducting a single group hearing;</text> </paragraph> <paragraph num="(2)"> <text>May consolidate hearings only in cases in which the sole issue involved is one of federal or State law or policy; and</text> </paragraph> <paragraph num="(3)"> <text>Shall permit each applicant to present the appellant’s own case or be represented by the appellant’s authorized representative.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Prehearing Procedures."> <paragraph num="A."> <text>A hearing summary shall be prepared containing pertinent information detailing the specific action that is the basis for the appeal. The summary shall be forwarded to the appellant or the appellant’s authorized representative and to the Office of Administrative Hearings at least 6 days before the hearing date.</text> </paragraph> <paragraph num="B."> <text>The appellant and the Exchange may request the names of all witnesses that the other party intends to call at the fair hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Hearing Procedures."> <paragraph num="A."> <text>The appellant and the Exchange shall have the opportunity to:</text> <paragraph num="(1)"> <text>Present witnesses;</text> </paragraph> <paragraph num="(2)"> <text>Present documentary evidence;</text> </paragraph> <paragraph num="(3)"> <text>Present oral and written argument without undue interference;</text> </paragraph> <paragraph num="(4)"> <text>Establish all facts and circumstances the administrative law judge judges to be relevant; and</text> </paragraph> <paragraph num="(5)"> <text>Question or refute any testimony or evidence, including an opportunity to confront and cross-examine all witnesses the administrative law judge judges to be adverse.</text> </paragraph> </paragraph> <paragraph num="B."> <text>All parties that wish to call a witness at the hearing shall subpoena the witness in accordance with Office of Administrative Hearings procedures in COMAR 28.02.01.14. The appellant or authorized representative may subpoena any employee of the Exchange whose action is being contested by the appellant or whose testimony may be relevant to the issues under consideration as determined by the administrative law judge.</text> </paragraph> <paragraph num="C."> <text>Right to Review Record.</text> <paragraph num="(1)"> <text>If the Exchange introduces as evidence documents from the case record, special investigation file, or other sources, the appellant shall have the opportunity to examine the:</text> <paragraph num="(a)"> <text>Persons who prepared the documents; and</text> </paragraph> <paragraph num="(b)"> <text>Case record or special investigation file for the purpose of discovering information favorable to the appellant’s case.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Exchange shall have access to relevant portions of the appellant’s medical record in accordance with Health-General Article, 4-305, Annotated Code of Maryland, to the extent required by law.</text> </paragraph> </paragraph> <paragraph num="D."> <text>To the extent required by law, when a hearing involves a medical issue, such as a diagnosis, an examining physician’s report, or a medical review team’s decision, an additional medical assessment of the appellant’s condition shall be obtained and made part of the record if the administrative law judge considers it necessary. Any additional medical assessment shall be made by a person other than the person who made the original medical assessment and shall be obtained at the Exchange’s expense.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="The Record."> <paragraph num="A."> <text>A verbatim recording of the fair hearing shall be made. Nonrecorded or confidential information, which the appellant does not have an opportunity to hear or see, may not be made a part of the hearing record. One transcribed copy of the recording shall be supplied to the appellant at no cost if the appellant takes a further appeal.</text> </paragraph> <paragraph num="B."> <text>The following shall constitute the exclusive record of the hearing:</text> <paragraph num="(1)"> <text>The transcript or recording of testimony and exhibits, or an official report containing the substance of what happened at the hearing;</text> </paragraph> <paragraph num="(2)"> <text>All papers and requests, including those maintained electronically, filed in the proceeding; and</text> </paragraph> <paragraph num="(3)"> <text>The administrative law judge’s decision.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The recording of testimony shall remain in the custody of the Office of Administrative Hearings for a period not to exceed 2 years, or until all litigation involving the decision is terminated. All other components of the record shall remain in the custody of the Exchange for a period not to exceed 2 years, or until all litigation involving the decision is terminated.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Findings, Timing of Decision, and Effect of Decision."> <paragraph num="A."> <text>Findings.</text> <paragraph num="(1)"> <text>The administrative law judge shall:</text> <paragraph num="(a)"> <text>Prepare a written summary of findings and conclusions based exclusively on the record; and</text> </paragraph> <paragraph num="(b)"> <text>Make a decision based on his findings and conclusions.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The summary of findings and conclusions shall:</text> <paragraph num="(a)"> <text>State the evidence, policies, regulations, or laws upon which the administrative law judge’s decision is based; and</text> </paragraph> <paragraph num="(b)"> <text>Provide written notice to the appellant that, if they are not satisfied with the decision, they may seek additional appeals as specified in §C of this regulation.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Timing of Hearing Decision.</text> <paragraph num="(1)"> <text>The administrative law judge shall forward to the appellant, and to appellant’s authorized representative, if applicable, a copy of the findings, conclusions, and decision within 90 days from the date the appellant or appellant’s representative filed a request for a fair hearing pursuant to Regulation .05A of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>If the date of the fair hearing is postponed at the appellant’s request, the length of the postponement may not be counted as part of any of the time period specified in §B(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Appeal Rights.</text> <paragraph num="(1)"> <text>Any party may seek judicial review as provided in State Government Article, §10-222, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>An administrative law judge’s decision:</text> <paragraph num="(a)"> <text>Related to Program benefits:</text> <paragraph num="(i)"> <text>Shall be implemented immediately, if adverse to the appellant.</text> </paragraph> <paragraph num="(ii)"> <text>If favorable to the appellant, shall be implemented retroactively to the date the incorrect action was taken; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Related to eligibility for enrollment in a qualified health plan, advance payments of the premium tax credit, cost-sharing reductions, or State-based subsidies shall be implemented in accordance with 45 CFR §155.545(c)(1).</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>To the extent an administrative law judge’s decision upholds the determination or redetermination of the Exchange with respect to an applicant for eligibility for enrollment in a qualified health plan or for an insurance affordability program described in Regulation .02B(10)(d) or (e), the applicant may appeal to the United States Department of Health and Human Services pursuant to 45 CFR §155.520(c).</text> </paragraph> </paragraph> <paragraph num="D."> <text>Effect of Decision.</text> <paragraph num="(1)"> <text>When the decision requires action by the Department, the Exchange shall notify the Department.</text> </paragraph> <paragraph num="(2)"> <text>When the decision is favorable to the appellant, or when the Exchange grants the appellant the relief the appellant requests before the decision, the Exchange, where applicable, shall authorize corrected payments or relief retroactive to the date the incorrect action was taken and redetermine eligibility for household members whose eligibility may be affected by the appeals decision.</text> </paragraph> <paragraph num="(3)"> <text>Any payment or action by the Exchange under §D(2) of this regulation may not constitute a waiver of the Exchange’s sovereign immunity from suit.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Confidentiality."> <paragraph num="A."> <text>If the appellant waives in writing his privilege of confidentiality as to the fair hearing, the administrative law judge shall permit members of the public to attend the hearing.</text> </paragraph> <paragraph num="B."> <text>The administrative law judge may cause the removal of any member of the public whose conduct impedes the orderly progress of the hearing, or recess the hearing until it may proceed in orderly fashion.</text> </paragraph> <paragraph num="C."> <text>The administrative law judge may exclude from the hearing individuals who have not given the Exchange advance notice of their intention to attend if the size of the hearing room is too small to accommodate them.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Program Benefits During Appeals Process."> <paragraph num="A."> <text>Benefits Pending Outcome of the Hearing.</text> <paragraph num="(1)"> <text>The Program may terminate or reduce services effective as of the date specified in the notice if the Program timely mails the notice as required under Regulation .04 of this chapter and:</text> <paragraph num="(a)"> <text>The appellant or the appellant’s authorized representative does not timely request a hearing in accordance with Regulation .05 of this chapter; or</text> </paragraph> <paragraph num="(b)"> <text>The appellant or the appellant’s authorized representative withdraws in writing or abandons a request for a fair hearing.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Except as provided in §A(3) of this regulation, the Program may not terminate or reduce services until a decision is rendered after the hearing if:</text> <paragraph num="(a)"> <text>The Program timely mails the notice as required under Regulation .04 of this chapter; and</text> </paragraph> <paragraph num="(b)"> <text>The appellant requests a hearing before the date of the action.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Program may terminate or reduce services before an administrative law judge renders a decision after a hearing if:</text> <paragraph num="(a)"> <text>The administrative law judge determines at the hearing that the sole issue is one of federal or State law or policy, or the request for a fair hearing is withdrawn in writing or abandoned; and</text> </paragraph> <paragraph num="(b)"> <text>The Program includes in the notification required by Regulation .04 of this chapter that services are to be terminated or reduced pending the hearing decision.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Reinstating Benefits.</text> <paragraph num="(1)"> <text>If the Program terminates or reduces services pursuant to §A of this regulation, the Program may reinstate services if a Program recipient requests a hearing not more than 10 days after the date of action.</text> </paragraph> <paragraph num="(2)"> <text>The reinstated services shall continue until a hearing decision, unless, at the hearing, the administrative law judge determines that the sole issue is one of federal or State law or policy.</text> </paragraph> <paragraph num="(3)"> <text>The Program shall reinstate and continue services until a decision is rendered after a hearing if:</text> <paragraph num="(a)"> <text>Action is taken without the advance notice being given to the recipient as required by Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>The recipient requests a hearing within 10 days of the mailing of the notice of action; and</text> </paragraph> <paragraph num="(c)"> <text>The Program determines that the action resulted from other than the application of federal or State law or policy.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a recipient’s whereabouts are unknown, as indicated by the return of unforwardable Program mail directed to the recipient, any discontinued services shall be reinstated if the recipient’s whereabouts become known during the time the recipient is eligible for services.</text> </paragraph> <paragraph num="(5)"> <text>The administrative law judge may provide for an additional period during which time the request for a fair hearing will result in reinstatement of a recipient’s assistance to be continued until the hearing decision.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Eligibility for Enrollment in a Qualified Health Plan, for Advance Payments of Premium Tax Credit, for Cost-Sharing Reductions, and for the State-Based Young Adult Health Insurance Subsidies Program Pending Appeal."> <paragraph num="A."> <text>Eligibility for Enrollment in a Qualified Health Plan.</text> <paragraph num="(1)"> <text>If, upon initial determination, an applicant has been determined to be ineligible to enroll in a qualified health plan, the applicant may not enroll in a qualified health plan pending the outcome of the appeal.</text> </paragraph> <paragraph num="(2)"> <text>Except where the applicant does not appeal a redetermination of eligibility within 90 days of such redetermination, an applicant enrolled in a qualified health plan who, upon redetermination, is found ineligible to remain enrolled in the qualified health plan may remain enrolled in the qualified health plan pending the outcome of the appeal.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility for Advance Payments of the Premium Tax Credit, Cost-Sharing Reduction, and/or the State-Based Young Adult Health Insurance Subsidies Program.</text> <paragraph num="(1)"> <text>Except where the applicant does not appeal an initial determination of eligibility within 90 days of such determination, an applicant who, upon initial determination, has been determined to be eligible to enroll in a qualified health plan may enroll in a qualified health plan within 90 days of the determination of eligibility for a qualified health plan notwithstanding ineligibility for or the amount of Advance Payments of the Premium Tax Credit, Cost-Sharing Reduction, or State-based subsidy for which the applicant was determined to be eligible.</text> </paragraph> <paragraph num="(2)"> <text>Pending the outcome of the appeal, the applicant under §B(1) of this regulation will receive only the amount of the advance payments of the premium tax credit, cost-sharing reduction, and/or State-based subsidy if any, for which applicant was determined to be eligible upon initial determination.</text> </paragraph> <paragraph num="(3)"> <text>Except where the applicant does not appeal a redetermination of eligibility within 90 days of such redetermination, an applicant who is receiving advance payments of the premium tax credit and/or cost-sharing reduction and is found to be ineligible for, or subject to a reduced amount of, advance payments of the premium tax credit and/or cost-sharing reduction during a redetermination may elect to continue to receive the advance payments of the premium tax credit and/or cost-sharing reduction that the applicant had been receiving immediately prior to the redetermination pending the outcome of the appeals process, provided that the applicant attests to understanding that by continuing to receive the advance payments of the premium tax credit the applicant may incur a liability to the Internal Revenue Service pursuant to 26 U.S.C. §36B.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Applicability of Regulations."> <text>If a conflict exists between this chapter and the Rules of Procedure of the Office of Administrative Hearings in COMAR 28.02.01, this chapter shall govern.</text> </regulation> <regulation prefix="Regulation" num=".14" heading="Authorized Representatives."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Authorized representative” means an individual or organization acting responsibly on behalf of the applicant in accordance with this regulation, in assisting with an applicant’s application, renewal of eligibility, appeals, and other ongoing communications with the Exchange.</text> </paragraph> <paragraph num="(2)"> <text>“Signature” includes electronic, including telephonically recorded, signatures and handwritten signatures transmitted by facsimile or other electronic transmissions.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Designating an Authorized Representative.</text> <paragraph num="(1)"> <text>An applicant may designate any individual or organization to serve as authorized representative.</text> </paragraph> <paragraph num="(2)"> <text>An authorized representative may be designated either:</text> <paragraph num="(a)"> <text>In writing, including the applicant’s signature; or</text> </paragraph> <paragraph num="(b)"> <text>By providing proof of legal authority to act on behalf of an applicant.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Legal authority includes, but is not limited to the:</text> <paragraph num="(a)"> <text>Applicant’s parent, if the applicant is a minor;</text> </paragraph> <paragraph num="(b)"> <text>Applicant’s legal guardian, if one has been appointed, or a person who has in good faith filed an application to be appointed the applicant’s legal guardian but who has not yet been appointed the applicant’s legal guardian;</text> </paragraph> <paragraph num="(c)"> <text>Applicant’s healthcare surrogate as defined in Health-General Article, §5-605, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(d)"> <text>Personal representative of applicant’s estate, or a person who has in good faith filed an application to be appointed the personal representative of the applicant’s estate but who has not yet been appointed the personal representative of the applicant’s estate;</text> </paragraph> <paragraph num="(e)"> <text>Individual appointed to make legal or medical decisions on behalf of the applicant pursuant to a validly executed power of attorney; or</text> </paragraph> <paragraph num="(f)"> <text>Attorney or paralegal retained by the applicant.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>For individuals who lack the capacity to designate an authorized representative and for whom no other individual or organization has the legal authority to act under §B(2) of this regulation, an authorized representative can be any individual or organization acting responsibly on behalf of the applicant who:</text> <paragraph num="(a)"> <text>In good faith, is acting in the best interest of the applicant; and</text> </paragraph> <paragraph num="(b)"> <text>Declares the applicant lacks legal capacity, and for organizations, declares that its directors, employees, officers or employers, if any, do not have a direct financial interest in the outcome of the fair hearing.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>For individuals who lack the capacity to designate an authorized representative, for whom no other individual or organization has the legal authority to act under §B(2) of this regulation, and on behalf of whom no individual or organization covered by §B(4) of this regulation is willing and able to act, an authorized representative can be any individual or organization with a direct financial interest in the outcome of the hearing or whose employer has a direct financial interest in the outcome of the hearing who:</text> <paragraph num="(a)"> <text>In good faith is acting in the best interest of the applicant;</text> </paragraph> <paragraph num="(b)"> <text>Declares that the applicant lacks legal capacity; and</text> </paragraph> <paragraph num="(c)"> <text>Declares that to the best of the authorized representative’s belief, no other individual or organization is willing and able to act on the applicant’s behalf.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Time for Authorization. Designation of an authorized representative, or the declarations by an individual or organization required under §B(4) or (5) of this regulation to become an authorized representative, can take place at any time, including, but not limited to, the time of application, upon redetermination, upon filing an appeal, and at the appeal hearing.</text> </paragraph> <paragraph num="D."> <text>Duration of Representation. The power to act as an authorized representative is valid until the applicant modifies the authorization or notifies the Exchange that the representative is no longer authorized to act on his or her behalf, there is a change in the legal authority upon which the individual or organization’s authority was based, or the authorized representative informs the Exchange, as required by 45 CFR §155.227(d)(2), that the representative no longer has legal authority to act on behalf of the applicant. Such notice shall be in writing and shall include the applicant’s signature or the authorized representative’s signature, as appropriate.</text> </paragraph> <paragraph num="E."> <text>Powers of Authorized Representative. Authorized representatives may be authorized to perform all, or fewer than all, of the following:</text> <paragraph num="(1)"> <text>Sign an application on the applicant’s behalf;</text> </paragraph> <paragraph num="(2)"> <text>Complete and submit an update or a renewal form or respond to a request for redetermination;</text> </paragraph> <paragraph num="(3)"> <text>Receive copies of the applicant’s notice and other communications from the Exchange; and</text> </paragraph> <paragraph num="(4)"> <text>Act on behalf of the applicant in all matters with the Exchange including appeals.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Obligations of Authorized Representative. An authorized representative:</text> <paragraph num="(1)"> <text>Is responsible for fulfilling all the responsibilities encompassed within the scope of the authorized representation as described in §E of this regulation to the same extent as the individual the representative represents;</text> </paragraph> <paragraph num="(2)"> <text>Shall agree to maintain, or be legally bound to maintain, the confidentiality of any information regarding the applicant provided by the Exchange.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Authorized Representatives Through an Organization. A provider, staff member, or volunteer of an organization shall sign an agreement to adhere to the federal regulations governing authorized representatives as laid out in 42 CFR §435.923 or 45 CFR §155.227, as applicable, as well as relevant State and federal laws concerning conflicts of interest and confidentiality of information.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv) and 31-108(b)(1), (10), and (17), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 726)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09C amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective November 29, 2021 (48:24 Md. R. 1025)</annotation> </annotations> </chapter> <chapter num="12" heading="Application Counselor Sponsoring Entity Designation Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>In General. This chapter applies to any community-based organization, health care provider, unit of State or local government, or other entity seeking designation as an application counselor sponsoring entity by the Maryland Health Benefit Exchange.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means a community-based organization, health care provider, unit of State or local government, or other entity applying for designation as an application counselor sponsoring entity.</text> </paragraph> <paragraph num="(2)"> <text>“Application counselor sponsoring entity” or “sponsoring entity” has the meaning set forth in Insurance Article, §31-101(a-2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Certified application counselor” has the meaning set forth in Insurance Article, §31-101(a-1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Commissioner” means the Maryland Insurance Commissioner.</text> </paragraph> <paragraph num="(5)"> <text>“Consolidated Services Center” has the meaning set forth in Insurance Article, §31-101(c-2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Individual Exchange” or “Exchange” has the meaning set forth in Insurance Article, §31-101(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Individual Exchange connector entity” has the meaning set forth in Insurance Article, §31-101(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Individual Exchange navigator” has the meaning set forth in Insurance Article, §31-101(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Maryland Health Benefit Exchange” has the meaning set forth in Insurance Article, §31-101(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility Requirements."> <text>To be eligible for designation as an application counselor sponsoring entity, an applicant shall:</text> <paragraph num="A."> <text>Complete and submit to the Maryland Health Benefit Exchange the application counselor sponsoring entity application set forth under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="B."> <text>Agree to comply with the requirements set forth in the application counselor sponsoring entity application, including the requirements for oversight of its certified application counselors;</text> </paragraph> <paragraph num="C."> <text>Comply with any applicable requirements of the Maryland Department of Health and the Commissioner; and</text> </paragraph> <paragraph num="D."> <text>Enter into a formal written agreement with all employed or engaged certified application counselors whereby certified application counselors agree to comply with the provisions of the application counselor training and certification standards under COMAR 14.35.13 and 45 CFR §155.225.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Scope of Authority."> <paragraph num="A."> <text>A designated application counselor sponsoring entity may employ or engage certified application counselors to:</text> <paragraph num="(1)"> <text>Provide information to consumers about the full range of qualified health plan and qualified dental plan options and insurance affordability programs, including advance premium tax credits and cost-sharing subsidies, the Maryland Medical Assistance Program, and the Maryland Children’s Health Program, for which they are eligible;</text> </paragraph> <paragraph num="(2)"> <text>Assist consumers with the application process for determining eligibility for insurance affordability programs, including advance premium tax credits and cost-sharing subsidies, the Maryland Medical Assistance Program, and the Maryland Children’s Health Program;</text> </paragraph> <paragraph num="(3)"> <text>Facilitate plan selection and enrollment of eligible individuals in qualified health plans, qualified dental plans, and access to advance premium tax credit and other cost-sharing subsidies; and</text> </paragraph> <paragraph num="(4)"> <text>Provide to consumers uniform, factual, and unbiased information approved by the Maryland Medical Assistance Program about all participating managed care organizations, including report cards, lists of enhanced benefits and covered services, and participating providers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A designated application counselor sponsoring entity may not permit certified application counselors to:</text> <paragraph num="(1)"> <text>Enroll Maryland Medical Assistance Program/Maryland Children’s Health Program eligible individuals into managed care organizations; or</text> </paragraph> <paragraph num="(2)"> <text>Express a personal or professional assessment about which Maryland Medical Assistance Program/Maryland Children’s Health Program managed care organization may be most appropriate for an eligible individual, may not make a managed care organization selection on the applicant’s behalf, and may not otherwise counsel an applicant about the selection of a managed care organization.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If a Maryland Medical Assistance Program/Maryland Children’s Health Program eligible consumer seeks further counseling or additional assistance in choosing a managed care organization, a designated application counselor sponsoring entity shall instruct the certified application counselor to refer the consumer to the Consolidated Services Center or to a local agency caseworker.</text> </paragraph> <paragraph num="D."> <text>An Individual Exchange connector entity may also be a designated application counselor sponsoring entity only under the following conditions:</text> <paragraph num="(1)"> <text>No agent, employee, or volunteer of the Individual Exchange connector entity may hold more than a single certification as either an Individual Exchange navigator or a certified application counselor;</text> </paragraph> <paragraph num="(2)"> <text>All Individual Exchange connector entity grant funds must be wholly segregated from certified application counselor program funding, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>No certified application counselor may be compensated in whole or in part from Individual Exchange connector entity grant funding, and no Individual Exchange navigator may be compensated in whole or in part from application counselor program funding, if applicable; and</text> </paragraph> <paragraph num="(4)"> <text>All utilities, computer systems, and other components of operations which are utilized jointly by both the Individual Exchange connector and application counselor programs, including executive and administrative staff, shall be cost allocated as directed by the Maryland Health Benefit Exchange and Maryland Department of Health in relation to the percentage of consumers served by the entity who are determined eligible for Maryland Medical Assistance Program/Maryland Children’s Health Program, advance premium tax credits, or cost-sharing subsidies, and who are enrolled in qualified health plans and managed care organizations.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Application Procedures."> <paragraph num="A."> <text>In order to obtain an application counselor sponsoring entity designation, the applicant shall submit to the Maryland Health Benefit Exchange:</text> <paragraph num="(1)"> <text>An application on the form approved by the Maryland Health Benefit Exchange in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(2)"> <text>An attestation that the applicant will notify the Maryland Health Benefit Exchange of any changes in information the applicant provides or to which the applicant attests on the application form within 30 days of such change;</text> </paragraph> <paragraph num="(3)"> <text>An attestation that the applicant will not impose a fee on individuals for services provided by certified application counselors employed or engaged by the applicant;</text> </paragraph> <paragraph num="(4)"> <text>An attestation that the applicant will disclose to the Maryland Health Benefit Exchange and to individuals to whom certified application counselors employed or engaged by the applicant provide services any relationships it has with a carrier, an insurance producer, or a third-party administrator or a managed care organization that participates in the Maryland Medical Assistance Program/Maryland Children’s Health Program;</text> </paragraph> <paragraph num="(5)"> <text>An attestation that the applicant will act in the best interest of the individuals for whom the certified application counselors employed or engaged by the applicant are authorized to provided services;</text> </paragraph> <paragraph num="(6)"> <text>An attestation that the applicant will not receive compensation from a carrier, insurance producer, managed care organization, or a third-party administrator for application counselor services provided by certified application counselors employed or engaged by the applicant;</text> </paragraph> <paragraph num="(7)"> <text>An attestation that the applicant will compensate employed or engaged certified application counselors in the manner approved by the Maryland Health Benefit Exchange working in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(8)"> <text>An attestation that the applicant will not directly or through employed or engaged certified application counselors provide monetary or other financial incentives to individuals to apply for health insurance coverage through Maryland Health Connection;</text> </paragraph> <paragraph num="(9)"> <text>An attestation that the applicant will not receive compensation from the Maryland Health Benefit Exchange for certified application counselor services;</text> </paragraph> <paragraph num="(10)"> <text>An attestation that the applicant will monitor the performance of its certified application counselors in accordance with the requirements set forth by the Maryland Health Benefit Exchange;</text> </paragraph> <paragraph num="(11)"> <text>An attestation that the applicant will enforce the required agreement set forth under Regulation .03D of this chapter;</text> </paragraph> <paragraph num="(12)"> <text>An attestation that the applicant will oversee employed or engaged certified application counselors pursuant to the oversight plan approved by the Maryland Health Benefit Exchange, in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(13)"> <text>An attestation that the applicant will comply with all applicable federal and State privacy and security standards, and will ensure that its certified application counselors also comply with these standards;</text> </paragraph> <paragraph num="(14)"> <text>An attestation that the applicant will operate within its scope of authority and ensure that it and its certified application counselors comply with the requirements set forth under Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(15)"> <text>An attestation that the applicant will comply with any applicable requirements of the Maryland Department of Health and the Commissioner; and</text> </paragraph> <paragraph num="(16)"> <text>An application fee to the extent permitted by law and in the manner specified by the Maryland Health Benefit Exchange, if applicable.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Maryland Health Benefit Exchange may not consider an application to be complete until it has received all required materials.</text> </paragraph> <paragraph num="C."> <text>If the application is not completed with all required materials within 45 days after the Maryland Health Benefit Exchange receives the signed application form, the Maryland Health Benefit Exchange may consider the application withdrawn.</text> </paragraph> <paragraph num="D."> <text>The Maryland Health Benefit Exchange shall approve or deny an application within 45 days after its completion and receipt of all required materials.</text> </paragraph> <paragraph num="E."> <text>Approval of an application will be contingent on the applicant’s execution of a designation agreement, in the form presented by the Maryland Health Benefit Exchange working in consultation with the Commissioner and the Maryland Department of Health.</text> </paragraph> <paragraph num="F."> <text>The Maryland Health Benefit Exchange may exercise its discretion in approving an application and designating an entity as an application counselor sponsoring entity, taking into consideration:</text> <paragraph num="(1)"> <text>The applicant’s ability to satisfy the requirements set forth in the application; and</text> </paragraph> <paragraph num="(2)"> <text>The resources, oversight capacity, and needs of the Maryland Health Benefit Exchange, the Connector Program, the Maryland Insurance Administration, the Maryland Department of Health, and other outreach and enrollment efforts.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Designation Term and Renewal."> <paragraph num="A."> <text>Term. An application counselor sponsoring entity designation expires 2 years after the date it is issued unless it is renewed or revoked prior to that time.</text> </paragraph> <paragraph num="B."> <text>Renewal.</text> <paragraph num="(1)"> <text>Notice.</text> <paragraph num="(a)"> <text>At least 60 days before the expiration of an application counselor sponsoring entity designation, the Maryland Health Benefit Exchange shall notify the application counselor sponsoring entity directly at the entity’s address on file, including email address, with the Maryland Health Benefit Exchange, of the expiration date of an application counselor sponsoring entity designation.</text> </paragraph> <paragraph num="(b)"> <text>The notification shall include:</text> <paragraph num="(i)"> <text>A renewal application;</text> </paragraph> <paragraph num="(ii)"> <text>The date by which the Maryland Health Benefit Exchange must receive the renewal application for the renewal to be issued before the designation expires; and</text> </paragraph> <paragraph num="(iii)"> <text>The amount of any renewal fee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Eligibility for Renewal. An application counselor sponsoring entity designation may be renewed for an additional 2-year term if the holder:</text> <paragraph num="(a)"> <text>Is otherwise entitled to receive application counselor sponsoring entity designation, in accordance with the eligibility requirements set forth under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(b)"> <text>Files a timely renewal application on the form approved by the Maryland Health Benefit Exchange, either by mail or electronically; and</text> </paragraph> <paragraph num="(c)"> <text>Pays to the Maryland Health Benefit Exchange a renewal fee to the extent permitted by law and in the manner specified by the Maryland Health Benefit Exchange.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Revocation of Designation."> <text>The Maryland Health Benefit Exchange, in consultation with the Commissioner and Maryland Department of Health, shall revoke an application counselor sponsoring entity designation for any failure to act in accordance with the application counselor sponsoring entity attestations set forth under Regulation .05A of this chapter pursuant to the procedures for withdrawal or revocation set forth under the agreement between the Maryland Health Benefit Exchange and the application counselor sponsoring entity.</text> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106 and 31-113(r), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 726)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective June 15, 2020 (47:12 Md. R. 597)</annotation> </annotations> </chapter> <chapter num="13" heading="Application Counselor Training and Certification Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the qualifications, training, and certification standards for an agent, employee, or volunteer of an application counselor sponsoring entity who applies to receive an application counselor certification and is required under Insurance Article, §31-113(r)(1)(ii), Annotated Code of Maryland, to hold an application counselor certification to provide the services set forth below.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Applicant” means a community-based organization, health care provider, unit of State or local government, or other entity applying for designation as an application counselor sponsoring entity.</text> </paragraph> <paragraph num="(2)"> <text>“Application counselor sponsoring entity” or “sponsoring entity” has the meaning set forth in Insurance Article, §31-101(a-2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Certified application counselor” has the meaning set forth in Insurance Article, §31-101(a-1), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Commissioner” means the Maryland Insurance Commissioner.</text> </paragraph> <paragraph num="(5)"> <text>“Consolidated Services Center” has the meaning set forth in Insurance Article, §31-101(c-2), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Individual Exchange connector entity” has the meaning set forth in Insurance Article, §31-101(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Individual Exchange navigator” has the meaning set forth in Insurance Article, §31-101(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Insurance affordability programs” has the meaning set forth in 42 CFR §435.4.</text> </paragraph> <paragraph num="(9)"> <text>“Maryland Health Benefit Exchange” has the meaning set forth in Insurance Article, §31-101(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility Requirements."> <text>To qualify for an application counselor certification, an applicant shall:</text> <paragraph num="A."> <text>Be of good character and trustworthy;</text> </paragraph> <paragraph num="B."> <text>Be at least 18 years old;</text> </paragraph> <paragraph num="C."> <text>Be an agent, employee, or volunteer of an application counselor sponsoring entity;</text> </paragraph> <paragraph num="D."> <text>Not be an Individual Exchange navigator;</text> </paragraph> <paragraph num="E."> <text>Enter into a formal written agreement with an application counselor sponsoring entity agreeing to comply with the provisions of this chapter and 45 CFR §155.225;</text> </paragraph> <paragraph num="F."> <text>Successfully complete and comply with any ongoing requirements of the training program set forth under Regulation .06 of this chapter;</text> </paragraph> <paragraph num="G."> <text>Complete and submit to the Maryland Health Benefit Exchange an application counselor application set forth under Regulation .05 of this chapter;</text> </paragraph> <paragraph num="H."> <text>Agree to comply with the requirements set forth in the application counselor application; and</text> </paragraph> <paragraph num="I."> <text>Comply with any applicable requirements of the Maryland Department of Health and the Commissioner.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Scope of Authority."> <paragraph num="A."> <text>A certified application counselor may:</text> <paragraph num="(1)"> <text>Provide information to consumers about the full range of qualified health plan and qualified dental plan options and insurance affordability programs, including advance premium tax credits and cost-sharing subsidies, the Maryland Medical Assistance Program, and the Maryland Children’s Health Program, for which they are eligible;</text> </paragraph> <paragraph num="(2)"> <text>Assist consumers with the application process for determining eligibility for insurance affordability programs, including advance premium tax credits and cost-sharing subsidies, the Maryland Medical Assistance Program, and the Maryland Children’s Health Program;</text> </paragraph> <paragraph num="(3)"> <text>Facilitate plan selection and enrollment of eligible individuals in qualified health plans, qualified dental plans, and access to advance premium tax credit and other cost-sharing subsidies; and</text> </paragraph> <paragraph num="(4)"> <text>Provide to consumers uniform, factual, and unbiased information approved by the Maryland Medical Assistance Program about all participating managed care organizations, including report cards, lists of enhanced benefits and covered services, and participating providers.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A certified application counselor may not express a personal or professional assessment about which Maryland Medical Assistance Program/Maryland Children’s Health Program managed care organization may be most appropriate for an eligible individual, may not make a managed care organization selection on the applicant’s behalf, and may not otherwise counsel an applicant about the selection of a managed care organization.</text> </paragraph> <paragraph num="C."> <text>If a Maryland Medical Assistance Program/Maryland Children’s Health Program eligible consumer seeks further counseling or additional assistance in choosing a managed care organization, a certified application counselor shall refer the consumer to the Consolidated Services Center or a local agency caseworker.</text> </paragraph> <paragraph num="D."> <text>A certified application counselor may not concurrently hold an Individual Exchange navigator certification.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Application Procedures."> <paragraph num="A."> <text>In order to obtain an application counselor certification, the applicant shall submit to the Maryland Health Benefit Exchange:</text> <paragraph num="(1)"> <text>An application, on the form approved by the Maryland Health Benefit Exchange in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(2)"> <text>An attestation that the applicant will notify the Maryland Health Benefit Exchange of any changes to information that the applicant provides or to which the applicant attests on the application form within 30 days of such change;</text> </paragraph> <paragraph num="(3)"> <text>An attestation that the applicant will not impose a fee on individuals to whom the applicant provides services;</text> </paragraph> <paragraph num="(4)"> <text>An attestation that the applicant will disclose to the Maryland Health Benefit Exchange, the application counselor sponsoring entity, and individuals to whom the applicant provides services any relationships the applicant has with a carrier, an insurance producer, a third-party administrator, or a managed care organization that participates in the Maryland Medical Assistance Program/Maryland Children’s Health Program, as well as other potential conflicts of interest;</text> </paragraph> <paragraph num="(5)"> <text>An attestation that the applicant will act in the best interest of the individuals for whom the applicant is authorized to provide services;</text> </paragraph> <paragraph num="(6)"> <text>An attestation that the applicant will not receive compensation from a carrier, insurance producer, managed care organization or third-party administrator for application counselor services;</text> </paragraph> <paragraph num="(7)"> <text>An attestation that the applicant will not receive compensation from the Maryland Health Benefit Exchange;</text> </paragraph> <paragraph num="(8)"> <text>An attestation that the applicant will accept compensation for application counselor-related duties only from its application counselor sponsoring entity, as approved by the Maryland Health Benefit Exchange in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(9)"> <text>An attestation that the applicant will not provide monetary or other financial incentives to individuals to apply for health insurance coverage through Maryland Health Connection;</text> </paragraph> <paragraph num="(10)"> <text>An attestation that the applicant will comply with the oversight plan adopted by its application counselor sponsoring entity approved by the Maryland Health Benefit Exchange, in consultation with the Commissioner and the Maryland Department of Health;</text> </paragraph> <paragraph num="(11)"> <text>An attestation that the applicant will comply with all State requirements, restrictions, and conflict of interest rules applicable to Individual Exchange navigators;</text> </paragraph> <paragraph num="(12)"> <text>An attestation that the applicant will comply with the required agreement set forth under Regulation .03A(5) of this chapter;</text> </paragraph> <paragraph num="(13)"> <text>An attestation that the applicant will comply with all applicable federal and State privacy and security standards;</text> </paragraph> <paragraph num="(14)"> <text>An attestation that the applicant will operate within the applicant’s scope of authority and ensure that he or she complies with the requirements set forth under Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(15)"> <text>An attestation that the applicant will comply with any applicable requirements of the Maryland Department of Health and the Commissioner;</text> </paragraph> <paragraph num="(16)"> <text>An application fee if permitted by law and in the manner specified by the Maryland Health Benefit Exchange; and</text> </paragraph> <paragraph num="(17)"> <text>Evidence that the applicant has successfully completed the Maryland Health Benefit Exchange application counselor certification training program specified under COMAR 14.35.02.04A and passed the examination specified under COMAR 14.35.02.04D.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Exchange may not consider an application to be complete until it has received all required materials.</text> </paragraph> <paragraph num="C."> <text>If the application is not completed with all required materials within 45 days after the Maryland Health Benefit Exchange receives the signed application form, the Maryland Health Benefit Exchange will reject the application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Training Requirements."> <text>In order to obtain application counselor certification, an individual shall meet the training and examination requirements specified under COMAR 14.35.02.04.</text> </regulation> <regulation prefix="Regulation" num=".07" heading="Term."> <text>An application counselor certification expires 2 years after the date it is issued unless it is renewed.</text> </regulation> <regulation prefix="Regulation" num=".08" heading="Renewal."> <paragraph num="A."> <text>Notice.</text> <paragraph num="(1)"> <text>At least 60 days before the expiration of an application counselor certification, the Maryland Health Benefit Exchange shall notify the application counselor using the address on file, including email address, with the Maryland Health Benefit Exchange, of the expiration date of an application counselor certification.</text> </paragraph> <paragraph num="(2)"> <text>The notification shall include:</text> <paragraph num="(a)"> <text>A renewal application;</text> </paragraph> <paragraph num="(b)"> <text>The date by which the Maryland Health Benefit Exchange must receive the renewal application for the renewal to be issued before the certification expires; and</text> </paragraph> <paragraph num="(c)"> <text>The amount of any renewal fee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility for Renewal. An application counselor certification may be renewed for an additional 2-year term if the holder:</text> <paragraph num="(1)"> <text>Is otherwise entitled to receive application counselor certification, in accordance with the eligibility requirements set forth under Regulation .03 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Files a timely renewal application on the form approved by the Maryland Health Benefit Exchange, either by mail or electronically;</text> </paragraph> <paragraph num="(3)"> <text>Pays to the Maryland Health Benefit Exchange a renewal fee to the extent permitted by law and in the manner specified by the Maryland Health Benefit Exchange; and</text> </paragraph> <paragraph num="(4)"> <text>Has completed the education requirements set forth under COMAR 14.35.03.02B(4), 14.35.03.02C, and 14.35.03.02D, where determined to be applicable by the Maryland Health Benefit Exchange.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Suspension or Revocation."> <paragraph num="A."> <text>The Commissioner may suspend or revoke an application counselor certification for any reason set forth under Insurance Article, §31-113(l)(1), Annotated Code of Maryland, made applicable to application counselors pursuant to Insurance Article, §31-113(r), Annotated Code of Maryland, or for any reason set forth under 45 CFR §155.225.</text> </paragraph> <paragraph num="B."> <text>An application counselor’s certification is automatically suspended if his or her application counselor sponsoring entity’s designation expires or is withdrawn by the Maryland Health Benefit Exchange.</text> </paragraph> <paragraph num="C."> <text>An application counselor’s certification that has been suspended under §B of this regulation may be reinstated if the application counselor becomes an agent, employee, or volunteer of another application counselor sponsoring entity with a valid designation and executes the agreement required under Regulation .03A(5) of this chapter.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106 and 31-113(r), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 726)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective June 15, 2020 (47:12 Md. R. 597)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> </annotations> </chapter> <chapter num="14" heading="Termination, Cancellation, and Rescission of Qualified Health Plan"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter describes the events that may result in the termination, cancellation, or rescission of the enrollment of an individual enrolled in a QHP through the Individual Exchange.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Cancellation” means an action that ends a qualified individual's enrollment through the Exchange on the date such enrollment became effective resulting in enrollment through the Exchange never having been effective.</text> </paragraph> <paragraph num="(2)"> <text>“Product” has the meaning stated in Insurance Article, §15-1309(a)(3)(i), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Reinstatement” means a correction of an erroneous termination or cancellation action that results in restoration of an enrollment with no break in coverage.</text> </paragraph> <paragraph num="(4)"> <text>“Same QHP policy” means that one enrollee is enrolled under the same QHP contract as another enrollee.</text> </paragraph> <paragraph num="(5)"> <text>“Termination” means an action taken after a coverage effective date that ends an enrollee's enrollment through the Exchange for a date after the original coverage effective date resulting in a period during which the individual was enrolled in coverage through the Exchange.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Terminations in General."> <paragraph num="A."> <text>An enrollee who is the contract holder of a QHP who terminates enrollment in a QHP also terminates the enrollment of the other enrollees in the household.</text> </paragraph> <paragraph num="B."> <text>Each enrollee, who is not the contract holder, may terminate enrollment in a QHP without affecting the enrollment status of the enrollee’s household or each individual member of the enrollee’s household other than the enrollee.</text> </paragraph> <paragraph num="C."> <text>A carrier shall process a request from the contract holder of a QHP to terminate coverage under Regulation .04 of this chapter for all enrollees promptly and without undue delay.</text> </paragraph> <paragraph num="D."> <text>A carrier shall process the Exchange’s termination determination under Regulation .06 of this chapter promptly and without undue delay.</text> </paragraph> <paragraph num="E."> <text>A carrier shall maintain records of termination of enrollment in a QHP in the format specified by the Exchange in an electronic data interchange format for a period of 10 years.</text> </paragraph> <paragraph num="F."> <text>A carrier shall make reasonable accommodations for all individuals with disabilities (as defined by the Americans with Disabilities Act), including head-of-household and non-head-of-household enrollees, before terminating the individual's enrollment.</text> </paragraph> <paragraph num="G."> <text>A carrier shall send an electronic transaction to the Exchange documenting, or acknowledging, each termination of coverage carried out under this chapter, promptly and without undue delay.</text> </paragraph> <paragraph num="H."> <text>In cases of retroactive termination dates, the carrier shall accept the Exchange’s adjusted calculations of APTC, and premiums and changes to the plan variation of the QHP.</text> </paragraph> <paragraph num="I."> <text>A carrier shall confirm the termination of an enrollee’s coverage with a notice provided to the contract holder indicating the enrollees affected by the termination and the effective date of the termination.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Enrollee-Initiated Terminations — In General."> <paragraph num="A."> <text>An enrollee may terminate the enrollee’s coverage in a QHP at any time within a month for a termination effective at the end of the month.</text> </paragraph> <paragraph num="B."> <text>An enrollee may request a termination of the enrollee’s coverage in a QHP by providing notice to the Exchange or the enrollee’s QHP carrier as follows:</text> <paragraph num="(1)"> <text>Enrollees seeking to terminate coverage for an enrollee or enrollees on a QHP shall provide notice to the Exchange; and</text> </paragraph> <paragraph num="(2)"> <text>Enrollees seeking to terminate coverage for the enrollee’s household may notify either the Exchange or the QHP carrier.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Date of Terminations. If the enrollee provides notice to the Exchange or the carrier on any day within the month, the date of termination is the end of the month.</text> </paragraph> <paragraph num="D."> <text>If an enrollee terminates coverage in one QHP because the enrollee elects enrollment in a different QHP, coverage in the original qualified health plan ends at midnight the day before the effective date of coverage in the enrollee’s new QHP.</text> </paragraph> <paragraph num="E."> <text>Death.</text> <paragraph num="(1)"> <text>In the case of a termination due to death, the last day of enrollment in a QHP through the Exchange is the date of death.</text> </paragraph> <paragraph num="(2)"> <text>Any applicable premium refund, or premium due, shall be processed by the deceased enrollee's QHP in accordance with State law.</text> </paragraph> <paragraph num="(3)"> <text>Notice of the enrollee’s death may be provided to the Exchange or the deceased enrollee’s QHP by:</text> <paragraph num="(a)"> <text>The policyholder under COMAR 31.10.01.02B(7), or subscriber under COMAR 31.12.02.02B(11), of the deceased enrollee’s QHP;</text> </paragraph> <paragraph num="(b)"> <text>An enrollee who is 18 years or older and enrolled in the same QHP policy of the deceased enrollee; or</text> </paragraph> <paragraph num="(c)"> <text>The authorized representative of an enrollee under COMAR 14.35.11.14.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Retroactive Terminations.</text> <paragraph num="(1)"> <text>An enrollee may retroactively terminate or cancel the enrollee's coverage or enrollment in a QHP when the enrollee:</text> <paragraph num="(a)"> <text>Demonstrates to the Exchange that the enrollee enrolled in Medicare Part A or B coverage with a retroactive effective date; and</text> </paragraph> <paragraph num="(b)"> <text>Requests retroactive termination of QHP coverage within 60 days of the enrollment.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The effective date of the retroactive termination must be no earlier than the later of the day before the first day of coverage under Medicare Part A or B, and the day that is 6 months before the retroactive termination in QHP coverage is requested.</text> </paragraph> <paragraph num="(3)"> <text>A retroactive termination date as described in this section is not available for enrollments in stand-alone dental plans.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Enrollee-Initiated Terminations — Due to Error, Misconduct, or Enrollment without Knowledge or Consent."> <paragraph num="A."> <text>An enrollee may retroactively terminate the enrollee’s coverage when:</text> <paragraph num="(1)"> <text>The enrollee attempted to terminate the enrollee’s coverage and the enrollee experienced a technical error that did not allow the enrollee to terminate the enrollee’s coverage;</text> </paragraph> <paragraph num="(2)"> <text>The enrollee’s enrollment in a QHP through the Exchange was unintentional, inadvertent, or erroneous and was the result of the error or misconduct of an officer, employee, or agent of the Exchange, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities; or</text> </paragraph> <paragraph num="(3)"> <text>The enrollee was enrolled in a QHP without the enrollee’s knowledge or consent by any third party, including third parties who have no connection with the Exchange.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Misconduct under §A(2) of this regulation means the failure of an officer, employee, or agent of the Exchange, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities to comply with applicable standards under COMAR 14.35.14 or other applicable State or federal laws as determined by the Exchange.</text> </paragraph> <paragraph num="C."> <text>Except as specified in §D of this regulation, the enrollee shall request termination under §A of this regulation by notifying the Exchange of the request:</text> <paragraph num="(1)"> <text>Within 60 days of discovering the technical error under §A(1) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Within 60 days of discovering the unintentional, inadvertent, or erroneous enrollment under §A(2) of this regulation; or</text> </paragraph> <paragraph num="(3)"> <text>Within 60 days of discovering the enrollment under §A(3) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If the enrollee discovers an enrollment under §A of this regulation in the previous calendar year, the enrollee shall request termination under §A of this regulation by notifying the Exchange of the request by the end of March the calendar year immediately following the calendar year with the enrollment under §A of this regulation.</text> </paragraph> <paragraph num="E."> <text>Notification to the Exchange under §§C and D of this regulation shall be satisfied if the enrollee provides notice:</text> <paragraph num="(1)"> <text>To an Exchange-certified navigator, an Exchange-authorized broker, or an Exchange-certified consolidated service center representative; and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under COMAR 14.35.07.03B.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The effective date of the termination under §A of this regulation shall be:</text> <paragraph num="(1)"> <text>For a retroactive termination under §A(1) of this regulation, no later than the end of the month when the enrollee contacted the Exchange to request termination of the enrollee’s enrollment through the Exchange; and</text> </paragraph> <paragraph num="(2)"> <text>For a retroactive termination under §A(2) or (3) of this regulation:</text> <paragraph num="(a)"> <text>The original coverage effective date; or</text> </paragraph> <paragraph num="(b)"> <text>A later date, as determined appropriate by the Exchange, based on the circumstances of the termination.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Termination by the Exchange."> <paragraph num="A."> <text>A carrier shall terminate an enrollee’s coverage in a qualified health plan upon receiving an electronic data transaction from the Exchange directing that the enrollee’s coverage be terminated.</text> </paragraph> <paragraph num="B."> <text>The Exchange shall direct the carrier to terminate an enrollee’s enrollment in a QHP if:</text> <paragraph num="(1)"> <text>The enrollee is no longer eligible for coverage in a QHP through the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>The enrollee requests termination under Regulations .04 and .05 of this chapter;</text> </paragraph> <paragraph num="(3)"> <text>The enrollee’s coverage is rescinded under 45 CFR §147.128;</text> </paragraph> <paragraph num="(4)"> <text>The QHP terminates or is decertified under 45 CFR §155.1080;</text> </paragraph> <paragraph num="(5)"> <text>The Exchange determines that:</text> <paragraph num="(a)"> <text>An enrollee was enrolled in a QHP without the enrollee’s knowledge or consent by a third party, including by a third party with no connection with the Exchange; and</text> </paragraph> <paragraph num="(b)"> <text>Where possible, the Exchange has provided reasonable notice to the enrollee of the Exchange’s determination;</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>The enrollee changes from one QHP to another QHP during an annual open enrollment period under COMAR 14.35.07.11A(1) or a special enrollment period under COMAR 14.35.07.12—.19; and</text> </paragraph> <paragraph num="(7)"> <text>The enrollee moves outside of the service area under 45 CFR §155.430(b)(2)(vii) in reference to 45 CFR §147.106(b)(5).</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the enrollee becomes eligible for other minimum essential coverage but does not request termination in accordance with Regulation .04 of this chapter at the time of plan renewal, the enrollee may choose to remain enrolled in a QHP without the provision of financial assistance through APTC or CSR payments.</text> </paragraph> <paragraph num="D."> <text>If the enrollee does not choose to remain enrolled in the QHP through the Exchange when the enrollee becomes eligible for other minimum essential health coverage under §C of this regulation, the Exchange shall initiate termination of the enrollee’s coverage upon completion of the redetermination process specified in 45 CFR §155.330.</text> </paragraph> <paragraph num="E."> <text>Upon termination by the Exchange, the last day of coverage by a QHP is:</text> <paragraph num="(1)"> <text>The last day of the enrollee’s eligibility, if the Exchange determines an enrollee to be no longer eligible for coverage in a QHP through the Individual Exchange;</text> </paragraph> <paragraph num="(2)"> <text>The last day of the coverage month in which coverage is rescinded, if the enrollee’s coverage is rescinded in accordance with 45 CFR §147.128;</text> </paragraph> <paragraph num="(3)"> <text>The last day of the coverage month in which the QHP is terminated or decertified, if the QHP terminates or, as described in 45 CFR §155.1080, is decertified;</text> </paragraph> <paragraph num="(4)"> <text>The last day of the coverage month in which the enrollee is determined newly eligible for enrollment in Medicaid or MCHP, if the enrollee chooses to terminate the QHP;</text> </paragraph> <paragraph num="(5)"> <text>The day before the first day of enrollment in the new QHP if an enrollee terminates coverage in a previous QHP and selects a new QHP during an annual open enrollment period under COMAR 14.35.07.11A(1) or a special enrollment period under COMAR 14.35.07.12—.19;</text> </paragraph> <paragraph num="(6)"> <text>The original coverage effective date for a cancellation under §B(5) of this regulation;</text> </paragraph> <paragraph num="(7)"> <text>The date of death, if the enrollee is terminated because of the enrollee’s death; or</text> </paragraph> <paragraph num="(8)"> <text>The day before the change in the enrollee’s circumstance if the enrollee is terminated because of a circumstance where the enrollee could not have prevented the disruption of the QHP enrollment.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For an enrollee’s dependent turning age 26, the carrier may not terminate coverage of the dependent before the end of the coverage year in which the dependent reaches age 26.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Termination by Carrier."> <paragraph num="A."> <text>A carrier may only terminate an individual’s coverage in a QHP before receiving an instruction from the Exchange to terminate coverage:</text> <paragraph num="(1)"> <text>If the enrollee requests termination of the enrollee’s enrollment to the carrier, and the termination follows the procedures in Regulation .04 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>If the enrollee’s coverage is rescinded under 45 CFR §147.128;</text> </paragraph> <paragraph num="(3)"> <text>If the carrier is decertified by the Exchange under COMAR 14.35.16.11;</text> </paragraph> <paragraph num="(4)"> <text>If the carrier ceases to offer the QHP that an enrollee is enrolled in through the Exchange under 45 CFR §147.106(b)(4) and the carrier follows the requirements under 45 CFR §147.106(c);</text> </paragraph> <paragraph num="(5)"> <text>If the carrier ceases to offer any QHPs through the Exchange under 45 CFR §147.106(b)(4) and the carrier follows the requirements under 45 CFR §147.106(d);</text> </paragraph> <paragraph num="(6)"> <text>If the enrollee has performed an act or practice that constitutes fraud or intentional misrepresentation of material fact in connection with the coverage under 45 CFR §147.106(b)(2); or</text> </paragraph> <paragraph num="(7)"> <text>For nonpayment of premiums as specified in §B of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Termination for Nonpayment.</text> <paragraph num="(1)"> <text>A carrier may terminate coverage for nonpayment of premium if the enrollee has not made applicable premium payments and at the time the enrollee first fails to pay premiums:</text> <paragraph num="(a)"> <text>The enrollee is receiving APTC, and the 3-month grace period under Insurance Article, §15-1315(c)—(e), Annotated Code of Maryland, has been exhausted; or</text> </paragraph> <paragraph num="(b)"> <text>The enrollee is not receiving APTC and all other applicable grace periods under State law have been exhausted.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A carrier may not terminate coverage for failure to make a premium payment if:</text> <paragraph num="(a)"> <text>Through a renewal of the plan under 45 CFR §155.335, the enrollee maintains coverage in the same QHP or same product that is a uniform modification of coverage under Insurance Article, §15-1309(a)(4), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(b)"> <text>The applicable grace period has not been exhausted under:</text> <paragraph num="(i)"> <text>Insurance Article, §15-1315(c)—(e), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(ii)"> <text>Another applicable grace period under State law if the enrollee is not receiving APTC.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>The last day of coverage is:</text> <paragraph num="(a)"> <text>The last day of the first month of the 3-month grace period when terminating an individual after exhaustion of the 3-month grace period for individuals receiving APTC; and</text> </paragraph> <paragraph num="(b)"> <text>31 days after the missed premium payment was due when terminating an individual after the exhaustion of any other applicable grace period.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Notice of Non-Payment of Premiums. If an enrollee is delinquent on premium payment, the carrier shall provide the enrollee with notice of such payment delinquency. A carrier shall provide such notices promptly and without undue delay, within 10 business days of the date the issuer should have discovered the delinquency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Cancellation."> <paragraph num="A."> <text>An individual’s enrollment in a QHP may be canceled only if:</text> <paragraph num="(1)"> <text>The enrollee requests voluntary cancellation of the enrollee’s enrollment to the Exchange or the carrier under §C of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>The enrollee’s coverage is rescinded under 45 CFR §147.128; or</text> </paragraph> <paragraph num="(3)"> <text>The enrollee does not provide the first month’s premium required to effectuate an enrollment by the due dates set forth at COMAR 14.35.07.11F.</text> </paragraph> </paragraph> <paragraph num="B."> <text>To request cancellation of the individual’s enrollment under §A of this regulation, the individual shall notify the Exchange or the carrier of the request to cancel before or on the last day of the month prior to the date the coverage begins.</text> </paragraph> <paragraph num="C."> <text>An enrollee may retroactively cancel the enrollee’s coverage if:</text> <paragraph num="(1)"> <text>The enrollee attempted to cancel the enrollee’s coverage and the enrollee experienced a technical error that did not allow the enrollee to cancel the enrollee’s coverage;</text> </paragraph> <paragraph num="(2)"> <text>The enrollee’s enrollment in a QHP through the Exchange was unintentional, inadvertent, or erroneous and was the result of the error or misconduct of an officer, employee, or agent of the Exchange, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities; or</text> </paragraph> <paragraph num="(3)"> <text>The enrollee was enrolled in a QHP without the enrollee’s knowledge or consent by any third party, including third parties who have no connection with the Exchange.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Misconduct under §C(2) of this regulation means the failure of an officer, employee, or agent of the Exchange or HHS, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities to comply with applicable standards under COMAR 14.35.14 or other applicable State or federal laws as determined by the Exchange.</text> </paragraph> <paragraph num="E."> <text>Except as specified in §F of this regulation, the enrollee shall request cancellation under §C of this regulation by notifying the Exchange of the request:</text> <paragraph num="(1)"> <text>Within 60 days after the enrollee discovered the technical error under §C(1) of this regulation;</text> </paragraph> <paragraph num="(2)"> <text>Within 60 days of discovering the unintentional, inadvertent, or erroneous enrollment under §C(2) of this regulation; or</text> </paragraph> <paragraph num="(3)"> <text>Within 60 days of discovering of the enrollment under §C(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>If the enrollee discovers an enrollment under §C of this regulation in the previous calendar year, the enrollee shall request termination under §C of this regulation by notifying the Exchange of the request by the end of March in the calendar year immediately following the calendar year with the enrollment under §C of this regulation.</text> </paragraph> <paragraph num="G."> <text>Notification to the Exchange under §§E and F of this regulation shall be satisfied if the enrollee provides notice:</text> <paragraph num="(1)"> <text>To an Exchange-certified navigator, an Exchange-authorized broker or an Exchange-certified consolidated service center representative; and</text> </paragraph> <paragraph num="(2)"> <text>Using any of the methods of communication listed under COMAR 14.35.07.03B.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The effective date of the cancellation under §C of this regulation shall be:</text> <paragraph num="(1)"> <text>For a retroactive cancellation under §C(1) or (2) of this regulation:</text> <paragraph num="(a)"> <text>The day before the original coverage effective date; or</text> </paragraph> <paragraph num="(b)"> <text>A later date, as determined appropriate by the Exchange, based on the circumstances of the cancellation; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>For a retroactive cancellation under §C(3) of this regulation, the day before the original coverage effective date.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Reinstatement."> <paragraph num="A."> <text>An individual’s enrollment shall be reinstated:</text> <paragraph num="(1)"> <text>If applicable, under QHP provisions required by COMAR 31.10.25.04;</text> </paragraph> <paragraph num="(2)"> <text>If the Exchange determines an error was made by the Exchange that led to an improper termination or cancellation;</text> </paragraph> <paragraph num="(3)"> <text>If the carrier determines an error was made by the carrier that led to an improper termination or cancellation; or</text> </paragraph> <paragraph num="(4)"> <text>If the Exchange is ordered to reinstate the enrollee by the Maryland Insurance Administration, Office of Administrative Hearings, or a State or federal court.</text> </paragraph> </paragraph> <paragraph num="B."> <text>If the carrier erroneously terminates or cancels an enrollee’s coverage, including if the coverage was terminated or canceled for non-payment of premiums, a carrier shall process a reinstatement transaction from the Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Sanctions."> <text>A carrier that fails to follow the requirements of this chapter may:</text> <paragraph num="A."> <text>Be denied certification as an authorized carrier;</text> </paragraph> <paragraph num="B."> <text>Be denied certification for a QHP offered for sale by the carrier on the Individual Exchange;</text> </paragraph> <paragraph num="C."> <text>Have the carrier’s certification suspended or revoked;</text> </paragraph> <paragraph num="D."> <text>Have the certification for a QHP offered for sale by the carrier on the Exchange suspended or revoked; or</text> </paragraph> <paragraph num="E."> <text>Be subject to other penalties under Insurance Article, §31-115(k), Annotated Code of Maryland, and COMAR 14.35.16.11.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv) and 31-108(b)(1) and (6), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 8, 2015 (42:11 Md. R. 726)</annotation> <annotation type="History" subtype="Administrative History">Regulations .01—.07 repealed and new Regulations .01—.10 adopted effective March 11, 2019 (46:5 Md. R. 308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F adopted effective February 17, 2025 (52:3 Md. R. 160)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F adopted effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07C adopted effective February 19, 2024 (51:3 Md. R.154)</annotation> </annotations> </chapter> <chapter num="15" heading="Carrier Certification Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter describes the standards a carrier shall meet to be certified as a carrier authorized to participate on the Maryland Health Benefit Exchange under Insurance Article, §31-115(b)(5), Annotated Code of Maryland, in the Individual and SHOP Exchanges. This chapter does not apply to certification of Individual or SHOP Exchange qualified plans.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Active carrier business agreement” means the most recent version of the carrier business agreement provided by the Exchange, signed by the Exchange and the carrier, and on file with the Exchange.</text> </paragraph> <paragraph num="(2)"> <text>“Active non-exchange entity agreement” means the most recent version of the non-exchange entity agreement provided by the Exchange, signed by the Exchange and the carrier, and on file with the Exchange.</text> </paragraph> <paragraph num="(3)"> <text>“Authorized carrier” means a carrier that holds a current certification of authorization issued by the Exchange as set forth in Regulation .03 of this chapter.</text> </paragraph> <paragraph num="(4)"> <text>“Carrier business agreement” means the agreement between the Exchange and the carrier that contains terms and conditions governing compliance with the Annotated Code of Maryland, Exchange policies, and State and federal regulations.</text> </paragraph> <paragraph num="(5)"> <text>“Carrier reference manual” means the document developed by the Exchange that provides business rules and operational instructions to authorized carriers participating on the Exchange.</text> </paragraph> <paragraph num="(6)"> <text>“Health maintenance organization (HMO)” has the meaning stated in Health-General Article, §19-701(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Member” means a qualified individual or qualified employee enrolled in a QHP with a particular authorized carrier through the Exchange.</text> </paragraph> <paragraph num="(8)"> <text>Member Level Report.</text> <paragraph num="(a)"> <text>“Member level report” means a report of the carrier's QHP member enrollment files with the Exchange at a specified time.</text> </paragraph> <paragraph num="(b)"> <text>“Member level report” includes:</text> <paragraph num="(i)"> <text>Information demonstrating the member enrolled through the Exchange;</text> </paragraph> <paragraph num="(ii)"> <text>The coverage effective date;</text> </paragraph> <paragraph num="(iii)"> <text>The coverage termination date, if applicable;</text> </paragraph> <paragraph num="(iv)"> <text>The termination reason, if applicable;</text> </paragraph> <paragraph num="(v)"> <text>The premium amount; and</text> </paragraph> <paragraph num="(vi)"> <text>The amount of advanced premium tax credits, if applicable.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Metal level” means a QHP at the bronze, silver, gold, or platinum coverage level.</text> </paragraph> <paragraph num="(10)"> <text>“Non-exchange entity agreement” means the agreement between the Exchange and the carrier that contains privacy and security provisions.</text> </paragraph> <paragraph num="(11)"> <text>“SERFF binder” means the portfolio of information that State laws and regulations require carriers to submit to the Exchange through SERFF.</text> </paragraph> <paragraph num="(12)"> <text>“System companion guide” means the document developed by the Exchange that provides instructions to authorized carriers to process enrollment information through electronic data transactions between the Exchange and the carrier.</text> </paragraph> <paragraph num="(13)"> <text>“System for Electronic Rate and Form Filing (SERFF)” means the online system the Exchange and the Administration use to accept, review, and approve carrier product and rate filings.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Carrier Conditions for Participation and Certification — Generally."> <paragraph num="A."> <text>In order to participate in the Exchanges, carriers must hold a current certificate of authorization issued by the Exchange.</text> </paragraph> <paragraph num="B."> <text>To receive a certificate of authorization from the Exchange, carriers shall:</text> <paragraph num="(1)"> <text>Possess a certificate of authority to:</text> <paragraph num="(a)"> <text>Act as an insurer and engage in the business of health insurance under Insurance Article, Title 4, Subtitle 1, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Operate a health maintenance organization under Health-General Article, §19-707, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(c)"> <text>Operate as a dental plan organization under Insurance Article, Title 14, Subtitle 4, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(d)"> <text>Operate as a nonprofit health service plan under Insurance Article, §14-108, Annotated Code of Maryland;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If offering health plans, demonstrate evidence that the carrier:</text> <paragraph num="(a)"> <text>Is accredited by the National Committee for Quality Assurance (NCQA) or the Utilization Review Accreditation Commission (URAC); and</text> </paragraph> <paragraph num="(b)"> <text>Meets data sharing requirements with the Exchange under the federal accreditation standard at 45 CFR §156.275(c)(5);</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Have a current active carrier business agreement in place, in the form designated by the Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Have a current active non-Exchange entity agreement in place, in the form designated by the Exchange; and</text> </paragraph> <paragraph num="(5)"> <text>By submitting its application, agree that it will:</text> <paragraph num="(a)"> <text>Retain records related to participation in the Exchange for a period of 10 years after participation in the Exchange has ceased; and</text> </paragraph> <paragraph num="(b)"> <text>Allow reasonable inspection by the Exchange and, to the extent required by law, other governmental entities including HHS.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The carrier shall remain an authorized carrier until:</text> <paragraph num="(1)"> <text>The certificate of authorization expires;</text> </paragraph> <paragraph num="(2)"> <text>The Exchange suspends or revokes the authorized carrier’s certification;</text> </paragraph> <paragraph num="(3)"> <text>The authorized carrier discontinues offering health benefit plans in the Exchange under Insurance Article, §§15-1212 and 15-1308, Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(4)"> <text>The authorized carrier loses its certificate of authority to act as a carrier in the State of Maryland.</text> </paragraph> </paragraph> <paragraph num="D."> <text>When an authorized carrier that offers one or more qualified plans in the Exchange merges into or is acquired by another entity and the merger or acquisition is approved by the Commissioner, the authorized carrier shall:</text> <paragraph num="(1)"> <text>Notify the Exchange of the change in a manner to be specified by the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>Provide the legal name and Taxpayer Identification Number of the new entity and the effective date of the change at least 30 days prior to the effective date of the merger or acquisition;</text> </paragraph> <paragraph num="(3)"> <text>Be deemed to adhere to the requirements of this chapter for the remainder of the affected benefit year; and</text> </paragraph> <paragraph num="(4)"> <text>Complete any required modifications to interfaces with the Exchange without undue delay such that operations with the Exchange are not affected or interrupted.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Application for Authorization."> <paragraph num="A."> <text>Carriers shall submit an application to the Exchange each year, in the form specified by the Exchange, no later than the first business day of July of the year before the certification is effective.</text> </paragraph> <paragraph num="B."> <text>An application will not be deemed complete until a carrier submits all of the required application elements under §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>The Exchange, within 45 days of receipt of a completed application, shall notify a carrier of the decision to approve or deny the application.</text> </paragraph> <paragraph num="D."> <text>If the Exchange does not provide a carrier notice of a decision to approve or deny a carrier’s application within 45 days of application submission, then the carrier may appeal to MHBE Board of Trustees through a written letter to request an expedited decision within 14 days of the appeal.</text> </paragraph> <paragraph num="E."> <text>An application subject to an expedited decision under §D of this regulation shall be deemed denied by the Exchange if the appeal is not ruled upon by the Board within 14 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Conditions for Participation—Authorized Carrier Conduct."> <paragraph num="A."> <text>An authorized carrier may not discriminate on the basis of race, color, national origin, disability, age, sex, gender identity, or sexual orientation in the administration of a qualified plan.</text> </paragraph> <paragraph num="B."> <text>An authorized carrier shall offer insurance producer compensation for qualified plans offered through the Exchange equal to insurance producer compensation for qualified plans offered outside of the Exchange.</text> </paragraph> <paragraph num="C."> <text>An authorized carrier shall comply with any applicable State laws and regulations regarding marketing by carriers, including:</text> <paragraph num="(1)"> <text>Any fair marketing standards developed jointly by the Exchange and the Commissioner under Insurance Article, §31-115(k)(2)(x), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Insurance Article, §§27-202—27-205, Annotated Code of Maryland, for insurers, nonprofit health service plans, and dental plan organizations; and</text> </paragraph> <paragraph num="(3)"> <text>Health-General Article, §19-729, Annotated Code of Maryland, for health maintenance organizations.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An authorized carrier and its officials, employees, agents, and representatives:</text> <paragraph num="(1)"> <text>Shall comply with any applicable State laws and regulations regarding marketing by carriers;</text> </paragraph> <paragraph num="(2)"> <text>Shall offer plans and plan variations with marketing names that include correct information, without omission of material fact, and do not include content that is misleading; and</text> </paragraph> <paragraph num="(3)"> <text>May not employ marketing practices or benefit designs that will have the effect of discouraging the enrollment of individuals with significant health needs in qualified plans.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An authorized carrier shall allow all qualified individuals and qualified employees to enroll in qualified health plans during open enrollment periods designated by the Exchange for the Individual Exchange or the employer for the SHOP Exchange.</text> </paragraph> <paragraph num="F."> <text>An authorized carrier shall allow qualified individuals and qualified employees determined eligible for special enrollment periods by the Exchange to enroll in qualified health plans outside the open enrollment periods.</text> </paragraph> <paragraph num="G."> <text>An authorized carrier shall implement the effective dates of coverage for the Individual Exchange established by the Exchange in accordance with COMAR 14.35.07 and COMAR 14.35.14.14 as specified in enrollment information received from the Exchange.</text> </paragraph> <paragraph num="H."> <text>An authorized carrier shall terminate an enrollee’s coverage in the Individual Exchange only in those circumstances permitted by COMAR 14.35.14.</text> </paragraph> <paragraph num="I."> <text>An authorized carrier shall process and acknowledge enrollment and eligibility information transmitted from the Exchange in accordance with Exchange standards detailed in the System Companion Guide.</text> </paragraph> <paragraph num="J."> <text>An authorized carrier shall reconcile enrollment and eligibility information with the Exchange no less than once a month and upon request of the Exchange in a form and manner designated by the Exchange and detailed in the system companion guide.</text> </paragraph> <paragraph num="K."> <text>An authorized carrier shall provide a member level report to the Exchange no less than once per month, upon request of the Exchange, and in a form and manner designated by the Exchange and detailed in the system companion guide.</text> </paragraph> <paragraph num="L."> <text>An authorized carrier shall notify the Exchange 60 days in advance of a carrier system or data change that may affect the transmission or receipt of data from the Exchange to the carrier.</text> </paragraph> <paragraph num="M."> <text>If an applicant initiates enrollment directly with the authorized carrier for enrollment through the Individual Exchange, the authorized carrier shall direct the individual to file an application through the Individual Exchange.</text> </paragraph> <paragraph num="N."> <text>An authorized carrier shall accept and process an enrollment for a qualified individual or qualified employee that does not include a Social Security number.</text> </paragraph> <paragraph num="O."> <text>Designation of Plans for Re-Enrollment.</text> <paragraph num="(1)"> <text>If a carrier terminates a plan in accordance with 45 CFR 147.106(c), the carrier shall submit to the Exchange a template that designates a plan that is an appropriate substitute for the plan that will no longer be available in the next plan year.</text> </paragraph> <paragraph num="(2)"> <text>The substitute plan designated by the carrier shall be determined in accordance with COMAR 14.35.07.23C.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Conditions for Participation — Individual Exchange Premium Payment."> <paragraph num="A."> <text>An authorized carrier shall follow the premium payment procedures and deadlines under COMAR 14.35.07.11F.</text> </paragraph> <paragraph num="B."> <text>An authorized carrier may establish a premium payment threshold policy under COMAR 14.35.07.11G.</text> </paragraph> <paragraph num="C."> <text>An authorized carrier may not use a payment made to effectuate coverage under COMAR 14.35.07.11F(1) to pay outstanding balances attributed to previously terminated coverage of the qualified individual.</text> </paragraph> <paragraph num="D."> <text>An authorized carrier in the Individual Exchange shall calculate that the premium for coverage lasting less than 1 month equals the product of:</text> <paragraph num="(1)"> <text>The premium for 1 month of coverage divided by the number of days in the month; and</text> </paragraph> <paragraph num="(2)"> <text>The number of days for which coverage is being provided in the month.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An authorized carrier shall accept premium and cost-sharing payments from the following third-party entities:</text> <paragraph num="(1)"> <text>Ryan White HIV/AIDS Program under Title XXVI of the Public Health Service Act;</text> </paragraph> <paragraph num="(2)"> <text>Indian tribes, tribal organizations, or urban Indian organizations; and</text> </paragraph> <paragraph num="(3)"> <text>State and federal government programs.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Establishment of Standard Policies for Termination of QHPs Due to Non-payment of Premiums.</text> <paragraph num="(1)"> <text>An authorized carrier shall establish a standard policy for termination of enrollment of enrollees through the Exchange due to non-payment of premiums under COMAR 14.35.14.06B.</text> </paragraph> <paragraph num="(2)"> <text>The authorized carrier’s standard policy shall:</text> <paragraph num="(a)"> <text>Include the grace period for enrollees receiving Advanced Premium Tax Credits set forth in Insurance Article, §15-1315(c)—(e), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Include the grace period for enrollees not receiving an Advanced Premium Tax Credit set forth in Insurance Article, §15-209, Annotated Code of Maryland, COMAR 31.10.25.04C, and COMAR 31.12.07.05D;</text> </paragraph> <paragraph num="(c)"> <text>Be applied uniformly to enrollees in similar circumstances;</text> </paragraph> <paragraph num="(d)"> <text>Specify whether the authorized carrier has a premium payment threshold policy under COMAR 14.35.07.11G; and</text> </paragraph> <paragraph num="(e)"> <text>If the carrier has a premium payment threshold policy, specify the authorized carrier’s premium payment threshold policy.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Location of Premium Payment Information.</text> <paragraph num="(1)"> <text>An authorized carrier shall make information available to enrollees through an Internet link that is displayed prominently in the enrollee’s authorized carrier’s monthly premium payment billing notice.</text> </paragraph> <paragraph num="(2)"> <text>This information shall be available on:</text> <paragraph num="(a)"> <text>The authorized carrier’s enrollee website;</text> </paragraph> <paragraph num="(b)"> <text>The authorized carrier’s enrollee Internet portal; and</text> </paragraph> <paragraph num="(c)"> <text>Upon request by an enrollee.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Conditions for Participation — Individual Exchange Carrier Notice Requirements."> <paragraph num="A."> <text>An authorized carrier shall provide enrollees newly effectuating coverage an enrollment information package that is written in plain language and in a manner that is accessible to individuals living with disabilities and individuals who have limited English proficiency.</text> </paragraph> <paragraph num="B."> <text>If an enrollee is delinquent on premium payment, the carrier shall provide the enrollee with notice of such payment delinquency.</text> </paragraph> <paragraph num="C."> <text>If an authorized carrier terminates an enrollee's coverage or enrollment in a qualified plan through the Exchange in accordance with COMAR 14.35.14 and 45 CFR §155.430(b)(2)(i), (ii), or (iii), the authorized carrier shall, promptly and without undue delay provide the enrollee with a notice of termination that includes:</text> <paragraph num="(1)"> <text>The termination effective date; and</text> </paragraph> <paragraph num="(2)"> <text>The reason for termination.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An authorized carrier shall follow all other carrier notice requirements under Insurance Article, Titles 15 and 31, Annotated Code of Maryland, pertaining to the individual and small group Exchanges, and 45 CFR Parts 147, 154, 155, and 156.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Requirements for Qualified Plans."> <paragraph num="A."> <text>The authorized carrier shall offer in the Exchange only plans that the Exchange certifies as qualified plans under COMAR 14.35.16.</text> </paragraph> <paragraph num="B."> <text>The authorized carrier shall ensure that each of its plans comply with the plan certification requirements in COMAR 14.35.16 on an ongoing basis.</text> </paragraph> <paragraph num="C."> <text>An authorized carrier shall offer no more than:</text> <paragraph num="(1)"> <text>Four benefit designs per metal level in the Individual Exchange and four benefit designs per metal level in the SHOP Exchange in plan year 2024 and prior plan years; and</text> </paragraph> <paragraph num="(2)"> <text>Three benefit designs per metal level in the Individual Exchange and four benefit designs per metal level in the SHOP Exchange beginning in plan year 2025.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An authorized carrier offering stand-alone dental plans shall offer no more than one benefit design at the same actuarial value per network type.</text> </paragraph> <paragraph num="E."> <text>As set forth in Insurance Article, §31-115(b)(5), Annotated Code of Maryland, the authorized carrier:</text> <paragraph num="(1)"> <text>Shall offer in each Exchange, the Individual and the SHOP, in which the authorized carrier participates, at least one qualified health plan:</text> <paragraph num="(a)"> <text>At a bronze coverage level;</text> </paragraph> <paragraph num="(b)"> <text>At a silver coverage level; and</text> </paragraph> <paragraph num="(c)"> <text>At a gold coverage level;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If the authorized carrier participates in the Individual Exchange and offers any health benefit plan in the individual market outside the Exchange, shall offer at least one qualified health plan at the silver level and one at the gold level in the individual market outside the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>Shall charge the same premium rate for the same qualified health plan regardless of whether the qualified health plan is offered through the Exchange, through an insurance producer outside the Exchange, or directly from a carrier;</text> </paragraph> <paragraph num="(4)"> <text>May not vary rates for a SHOP qualified employer during the employer's plan year; and</text> </paragraph> <paragraph num="(5)"> <text>Shall comply with the prohibition on cancellation fees and penalties for termination of coverage, as set forth in the Insurance Article, §31-108(d), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Network Adequacy."> <text>For each qualified plan that the authorized carrier seeks to offer for sale through the Individual Exchange or the SHOP Exchange, the authorized carrier shall:</text> <paragraph num="A."> <text>Follow the Maryland Insurance Administration network adequacy and network reporting regulations set forth under COMAR 31.10.44 or COMAR 31.10.45;</text> </paragraph> <paragraph num="B."> <text>Complete an attestation in the carrier application under Regulation .04 of this chapter indicating carrier compliance with COMAR 31.10.44 or COMAR 31.10.45; and</text> </paragraph> <paragraph num="C."> <text>Submit a document providing consumers with information on the carrier’s network that is suitable for publishing in qualified plan shopping in the Individual Exchange in a form and manner detailed by the Individual Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Waiver Authority."> <paragraph num="A."> <text>The Exchange, with the approval of the Exchange Board of Trustees, and for reasons solely within the discretion of the Exchange, may grant a waiver to a specific provision of the application for certification, with or without conditions.</text> </paragraph> <paragraph num="B."> <text>A waiver may only be granted to the extent it does not conflict with the provisions of Insurance Article, Annotated Code of Maryland, or applicable federal and State law.</text> </paragraph> <paragraph num="C."> <text>A carrier may submit a request for a waiver on a form developed by the Exchange.</text> </paragraph> <paragraph num="D."> <text>Carriers who are newly seeking accreditation from outside entities and have not yet received such accreditation by the Exchange’s application deadline should use the waiver process to seek waiver or modification of this condition.</text> </paragraph> <paragraph num="E."> <text>The request shall state:</text> <paragraph num="(1)"> <text>The provision from which a waiver is sought;</text> </paragraph> <paragraph num="(2)"> <text>The reason the carrier is unable to comply with the provision; and</text> </paragraph> <paragraph num="(3)"> <text>The reason that compliance with the provision will impose a substantial hardship.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The Exchange may grant a waiver if:</text> <paragraph num="(1)"> <text>The Exchange determines that compliance with the provision from which the waiver is sought cannot be accomplished without substantial hardship;</text> </paragraph> <paragraph num="(2)"> <text>The waiver will not conflict with applicable State and federal law; and</text> </paragraph> <paragraph num="(3)"> <text>The waiver is in the best interests of the State.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Final Written Decisions on Requests for Waivers.</text> <paragraph num="(1)"> <text>The Exchange shall issue a final written decision on a request for a waiver that is submitted under §A of this regulation within 45 days from receipt of the request and all supporting information for the waiver by the Exchange.</text> </paragraph> <paragraph num="(2)"> <text>If the Exchange grants a waiver, the decision shall include:</text> <paragraph num="(a)"> <text>The duration of the waiver; and</text> </paragraph> <paragraph num="(b)"> <text>Any conditions imposed by the Exchange.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A request for a waiver may be denied if:</text> <paragraph num="(a)"> <text>The Exchange determines that the conditions of §D of this regulation are not satisfied;</text> </paragraph> <paragraph num="(b)"> <text>A waiver is not in the best interests of the State; or</text> </paragraph> <paragraph num="(c)"> <text>The waiver will conflict with applicable State or federal laws.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A denial may not be appealed.</text> </paragraph> <paragraph num="(5)"> <text>The Exchange shall notify the carrier of the decision by mail or electronically.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Exchange may revoke a waiver if it appears that the reasons for granting the waiver have ceased to exist.</text> </paragraph> <paragraph num="I."> <text>The Exchange’s decision and the request for waiver shall be subject to public disclosure.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Authorization Renewals."> <paragraph num="A."> <text>The Exchange shall review the performance of authorized carriers on an annual basis.</text> </paragraph> <paragraph num="B."> <text>Authorized carriers shall submit information in a form and manner required by the Exchange about Exchange-specific complaints and grievances, upon request.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-108, §31-106(c)(1)(iv), 31-115, and 31-116, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 11, 2019 (46:5 Md. R. 308)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05A amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05O adopted effective August 5, 2024 (51:15 Md. R. 710)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06F amended effective February 19, 2024 (51:3 Md. R.154)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08C amended effective February 19, 2024 (51:3 Md. R.154)</annotation> </annotations> </chapter> <chapter num="16" heading="Plan Certification Standards"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter describes the standards a qualified health plan shall meet in order to be certified as a QHP by the Maryland Health Benefit Exchange under Insurance Article, §31-115, Annotated Code of Maryland. This chapter addresses standards for QHP certification for both the Individual and SHOP Exchanges, unless otherwise noted. Standards for carrier certification for the Exchange are addressed in COMAR 14.35.15. This chapter does not address plan certification standards for QDPs or QVPs.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>Annual Letter to Issuers.</text> <paragraph num="(a)"> <text>“Annual Letter to Issuers” means a written communication, issued by the Exchange, which should be interpreted in the same manner as the Annual Letter to Issuers that is distributed by the federally facilitated Exchange.</text> </paragraph> <paragraph num="(b)"> <text>“Annual Letter to Issuers” includes instruction on how issuers shall meet compliance with QHP certification standards, establishes timelines on implementation, details Exchange expectations of issuer compliance with such certification standards, and alerts issuers of policy developments.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>“Essential community provider” means:</text> <paragraph num="(a)"> <text>An essential community provider as defined in 45 CFR §156.235(c);</text> </paragraph> <paragraph num="(b)"> <text>A local health department;</text> </paragraph> <paragraph num="(c)"> <text>An outpatient mental health center, as described in COMAR 10.21.20, or a substance use disorder treatment provider, as described in COMAR 10.09.80.03B(1) and (3), that is licensed or approved by the State Department of Health and Mental Hygiene as a program or facility; or</text> </paragraph> <paragraph num="(d)"> <text>A school-based health center.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Similarly situated” means alike in all relevant ways.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Qualified Health Plan Certification — In General."> <paragraph num="A."> <text>An authorized carrier shall apply for a certificate of authorization for each health benefit plan the carrier intends to offer on the Exchange.</text> </paragraph> <paragraph num="B."> <text>The authorized carrier shall no longer offer a QHP on the Exchange, if:</text> <paragraph num="(1)"> <text>The plan’s certification of authorization expires;</text> </paragraph> <paragraph num="(2)"> <text>The plan is decertified by the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>The carrier elects to withdraw from the market with the Exchange, under 45 CFR §156.290; or</text> </paragraph> <paragraph num="(4)"> <text>The carrier elects not to offer or renew the QHP on the Exchange in accordance with Insurance Article, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>With respect to per-member premium rating for family coverage offered through a QHP on the Exchange, a carrier shall cap the premium rating for non-spousal dependents at three non-spousal dependents under the age of 21 for all plans authorized for sale under this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Qualified Health Plan Certification — Application."> <paragraph num="A."> <text>Each authorized carrier shall annually submit an application, in a form specified by the Annual Letter to Issuers, for each health benefit plan intended to be certified as a QHP to be offered on the Exchange.</text> </paragraph> <paragraph num="B."> <text>A carrier shall submit a completed application, including all required information and submissions under this regulation, to the Exchange.</text> </paragraph> <paragraph num="C."> <text>The Exchange shall notify a carrier of the application status within 45 days of receipt of a completed application.</text> </paragraph> <paragraph num="D."> <text>If an application is determined incomplete, the Exchange shall notify a carrier of the application status within 45 days of the initial submission.</text> </paragraph> <paragraph num="E."> <text>Information Submission.</text> <paragraph num="(1)"> <text>An authorized carrier shall submit an initial submission containing the information required under §§E and F of this regulation and Regulations .04—.10 of this chapter as part of the application under §B of this regulation and detailed through the Annual Letter to Issuers.</text> </paragraph> <paragraph num="(2)"> <text>If requested by the Exchange, an authorized carrier shall submit a supplement to its initial submission under §E(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="F."> <text>In accordance with Insurance Article, §31-115(g)(2), Annotated Code of Maryland, upon request, an authorized carrier shall provide in its application a description of the health benefit plan, in plain language and in a form specified by the Annual Letter to Issuer, that includes:</text> <paragraph num="(1)"> <text>Claims payment policies and practices;</text> </paragraph> <paragraph num="(2)"> <text>Data on enrollment, disenrollment, number of claims denied (including in whole and in part), and rating practices, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>Information on cost sharing and payments with respect to any out-of-network coverage; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information as determined appropriate by the Exchange.</text> </paragraph> </paragraph> <paragraph num="G."> <text>An authorized carrier shall provide in its application, in a form specified in the Annual Letter to Issuers, the following information about the health benefit plan:</text> <paragraph num="(1)"> <text>Plan, benefit, and cost sharing;</text> </paragraph> <paragraph num="(2)"> <text>Plan information for the renewal of QHP enrollment;</text> </paragraph> <paragraph num="(3)"> <text>Unified rate review template;</text> </paragraph> <paragraph num="(4)"> <text>Prescription drug cost sharing and formulary;</text> </paragraph> <paragraph num="(5)"> <text>Provider network;</text> </paragraph> <paragraph num="(6)"> <text>Service area, including justifications for partial county service areas;</text> </paragraph> <paragraph num="(7)"> <text>Rate and premiums;</text> </paragraph> <paragraph num="(8)"> <text>Actuarial information required to be submitted to the Exchange under 45 CFR §155.1030(b);</text> </paragraph> <paragraph num="(9)"> <text>Provider directory data as specified in Regulation .07 of this chapter;</text> </paragraph> <paragraph num="(10)"> <text>Summaries of benefits and coverage, under 45 CFR §147.200, for each cost-sharing reduction variation;</text> </paragraph> <paragraph num="(11)"> <text>Essential community providers contracted to participate within the health benefit plan’s provider network; and</text> </paragraph> <paragraph num="(12)"> <text>Any other information the carrier would like to provide to the Exchange to supplement the application.</text> </paragraph> </paragraph> <paragraph num="H."> <text>An authorized carrier shall comply with the rate and form review procedures, including review of compliance with essential health benefits requirements, established by the Commissioner.</text> </paragraph> <paragraph num="I."> <text>Data and information submitted to the Exchange may be provided to the Commissioner, if requested, for consideration in the Commissioner’s annual QHP rate and form review process.</text> </paragraph> <paragraph num="J."> <text>The authorized carrier shall provide to the Exchange the rate justification forms filed with the Commissioner for each QHP certification application the authorized carrier submits to the Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Qualified Health Plan Certification — Plan Service Areas."> <paragraph num="A."> <text>As part of a QHP certification application, an authorized carrier shall submit:</text> <paragraph num="(1)"> <text>A description of the boundaries of the service area of any health benefit plan that is smaller than the State of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>For any service area smaller than the State of Maryland, an explanation of the reason for the smaller service area, including a justification that the boundaries are not designed to discriminate against individuals excluded from the health benefit plan’s service area.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Carriers submitting a justification under §A(2) of this regulation are not required to submit a justification in subsequent years, after the initial justification submission, if there has been no change in the carrier’s health benefit plan service areas.</text> </paragraph> <paragraph num="C."> <text>After the initial data submission under Regulation .04E of this chapter, a change to a health benefit plan’s service area shall be made only by petition to the Exchange and:</text> <paragraph num="(1)"> <text>Because the carrier cannot secure enough providers; or</text> </paragraph> <paragraph num="(2)"> <text>Because of an Exchange request to serve an unmet need.</text> </paragraph> </paragraph> <paragraph num="D."> <text>After the final data submission under Regulation .04E of this chapter, a change to the health benefit plan’s service area shall be permitted only if the change is an expansion of the health benefit plan’s service area.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Qualified Health Plan Certification — Provider Directories Specific to Individual Exchange."> <paragraph num="A."> <text>An authorized carrier shall submit to the Individual Exchange the health benefit plan’s provider directory information for each QHP’s network.</text> </paragraph> <paragraph num="B."> <text>Provider directory data shall include the requirements specified in Insurance Article, §15-112(n)(3), Annotated Code of Maryland, as well as be current, accurate, and complete.</text> </paragraph> <paragraph num="C."> <text>Provider directory data may include:</text> <paragraph num="(1)"> <text>Program and community health center names;</text> </paragraph> <paragraph num="(2)"> <text>Providers’ affiliations with certain facilities, programs, and centers; and</text> </paragraph> <paragraph num="(3)"> <text>Any other information that may assist consumers in searching for specific programs or centers by name.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Updated provider directory data requested in §B of this regulation shall be submitted in the format required by the Individual Exchange at least once every 15 calendar days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Qualified Health Plan Certification — Essential Community Providers."> <paragraph num="A."> <text>For each health benefit plan that a carrier seeks to offer through the Exchange, the carrier shall make all good faith efforts to contract with at least 35 percent of available essential community providers in the plan’s service area as part of each plan’s provider network, except as specified in §C of this regulation.</text> </paragraph> <paragraph num="B."> <text>Additional Essential Community Providers.</text> <paragraph num="(1)"> <text>Included with its application for certification and in the form provided by the Exchange, the carrier may write in additional essential community providers that are not included in the definition for essential community provider under Regulation .02B of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>If available, the carrier shall include the following information when writing in additional essential community health providers:</text> <paragraph num="(a)"> <text>The provider’s zip code reflecting a provider location within a low-income zip code or Health Professional Shortage Areas included on the “Low-Income and Health Professional Shortage Area Zip Code Listing” from CMS;</text> </paragraph> <paragraph num="(b)"> <text>The provider’s service street address, which may not be a Post Office Box number; and</text> </paragraph> <paragraph num="(c)"> <text>The National Provider Identifier (NPI) number, if the provider has such a number, or an alternate identification, such as a Tax Identification Number, if the provider does not have such a number.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The authorized carrier shall provide information under this section as part of the application submitted under Regulation .04 of this chapter.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Carriers Who Are Unable to Meet Contracting Requirements.</text> <paragraph num="(1)"> <text>If the authorized carrier cannot meet the standard under this section, the authorized carrier may satisfy this requirement under the alternative standard.</text> </paragraph> <paragraph num="(2)"> <text>To meet the alternative standard, the authorized carrier shall provide a narrative explanation of the authorized carrier’s justification that the carrier includes access to sufficient essential community providers within the health benefit plan’s network.</text> </paragraph> <paragraph num="(3)"> <text>The narrative explanation shall describe the extent to which the authorized carrier’s provider sites are accessible to, and have services that meet the needs of, specific underserved populations, including:</text> <paragraph num="(a)"> <text>Individuals with HIV/AIDS, including those with co-morbid behavioral health conditions;</text> </paragraph> <paragraph num="(b)"> <text>American Indians and Alaska Natives;</text> </paragraph> <paragraph num="(c)"> <text>Low-income and underserved individuals seeking women’s health and reproductive health services; and</text> </paragraph> <paragraph num="(d)"> <text>Other specific populations served by essential community providers in the plan’s service area.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The narrative explanation shall demonstrate that low-income members receive appropriate access to care and satisfactory service, including performance on provider quality and patient satisfaction metrics, as specified in the Annual Letter to Issuers.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For each health benefit plan that a carrier seeks to offer through the Exchange, the carrier shall make all good faith efforts to contract with at least one available essential community provider of each essential community provider type, under §E of this regulation, in each county, or partial county, of the plan’s service area as part of each plan’s provider network.</text> </paragraph> <paragraph num="E."> <text>Authorized carriers shall offer the same provider contract terms in good faith to the following essential community providers that a willing, similarly situated, non-essential community provider would accept or has accepted from the authorized carrier to the following provider types:</text> <paragraph num="(1)"> <text>All available Indian Health Care Providers in the plan’s service area;</text> </paragraph> <paragraph num="(2)"> <text>Willing local health departments under Insurance Article, §15-112(b)(3)(iii), Annotated Code of Maryland, in the plan’s service area; and</text> </paragraph> <paragraph num="(3)"> <text>For each county in the plan’s service area, at least one provider from the following provider types, if such a provider is available and provides the medical or dental services, as applicable to plan type:</text> <paragraph num="(a)"> <text>A health care provider defined in §340B(a)(4) of the Public Health Services Act;</text> </paragraph> <paragraph num="(b)"> <text>An outpatient mental health center as described in COMAR 10.21.20;</text> </paragraph> <paragraph num="(c)"> <text>A substance use disorder treatment provider as described at COMAR 10.09.80.03B(1) and (3);</text> </paragraph> <paragraph num="(d)"> <text>A school based-health center;</text> </paragraph> <paragraph num="(e)"> <text>A health care provider described in §1927(c)(1)(D)(i)(IV) of the Social Security Act; and</text> </paragraph> <paragraph num="(f)"> <text>A State-owned, government-owned, or not-for-profit family planning services site that does not receive federal funding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>An authorized carrier shall submit verification of essential community provider contract offers to the Exchange upon request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Qualified Health Plan Certification — Network Adequacy."> <paragraph num="A."> <text>Each health benefit plan shall meet the network adequacy standards stated in 45 CFR §156.230, Insurance Article, §15-112, Annotated Code of Maryland, and COMAR 31.10.44.</text> </paragraph> <paragraph num="B."> <text>Each health benefit plan shall meet the provider panel sufficiency requirements under COMAR 31.10.34.04A.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Qualified Health Plan Certification — Covered Prescription Drugs and Formularies."> <paragraph num="A."> <text>An authorized carrier’s application under Regulation .04A of this chapter shall identify drugs covered under the health benefit plan’s medical benefit.</text> </paragraph> <paragraph num="B."> <text>Drug Formulary List Location.</text> <paragraph num="(1)"> <text>An authorized carrier shall provide the Internet address for the drug formulary for each health plan with the application submitted for the health benefit plan to the Exchange under Regulation .04A of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The Internet address required under §B(1) of this regulation shall link directly to the health benefit plan’s list of covered drugs without further navigation.</text> </paragraph> <paragraph num="(3)"> <text>The health benefit plan’s list of covered drugs shall:</text> <paragraph num="(a)"> <text>Include plain language drug category information for each drug category;</text> </paragraph> <paragraph num="(b)"> <text>Include information on utilization management tools such as prior authorization, step therapy, quantity limitations, and generic substitutions; and</text> </paragraph> <paragraph num="(c)"> <text>Be up to date, accurate, and complete.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An authorized carrier may classify a covered drug as a preventative drug covered at zero cost and shall identify any drugs so covered in its formulary.</text> </paragraph> <paragraph num="D."> <text>Drug Exception Process.</text> <paragraph num="(1)"> <text>An authorized carrier shall establish a drug exception process by which an enrollee can request access to a drug not on the plan’s formulary list in standard situations, as required by Insurance Article, §15-831(c), Annotated Code of Maryland, and 45 CFR §156.122(c).</text> </paragraph> <paragraph num="(2)"> <text>A carrier shall notify the enrollee of its coverage decision no later than 72 hours after receipt of the request for exception.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A carrier shall follow the external review process established by the Administration for advice from an independent review organization for denied requests as described in COMAR 31.10.19.</text> </paragraph> <paragraph num="F."> <text>A carrier shall establish a process for the emergency review of denials that is compliant with State and federal statute and regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Qualified Health Plan Certification — Waiver Authority."> <text>The Exchange, with the approval of the Board, may grant a waiver to a specific provision of this chapter, with or without conditions, under the procedure in COMAR 14.35.15.10.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Qualified Health Plan Denial, Suspension, and Revocation of Certification and Other Remedies."> <paragraph num="A."> <text>If the Exchange determines that a carrier has failed to comply with this chapter, Insurance Article, Title 31, Annotated Code of Maryland, or any other federal or State laws or regulations applicable to carrier offerings in the Exchange that are not otherwise specified in Insurance Article, §31-115(k), Annotated Code of Maryland, the Exchange may initiate one or more of the following actions against the carrier:</text> <paragraph num="(1)"> <text>Deny certification for participation in the Exchange;</text> </paragraph> <paragraph num="(2)"> <text>Suspend the carrier’s certification for participation in the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>Revoke the carrier’s certification for participation in the Exchange; or</text> </paragraph> <paragraph num="(4)"> <text>Another remedy defined under §D of this regulation.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Subject to the contested case hearing provisions of State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and the limitations stated in Insurance Article, §31-115(k), Annotated Code of Maryland, the Exchange may deny certification to a health benefit plan, or suspend or revoke the certification of a qualified health plan, based on a finding that the health benefit plan or qualified health plan does not satisfy requirements or has otherwise violated standards for certification that are established under this regulation and interim policies adopted by the Exchange, and not otherwise under the regulatory and enforcement authority of the Commissioner, including requirements and standards related, but not limited, to:</text> <paragraph num="(1)"> <text>Enrollment;</text> </paragraph> <paragraph num="(2)"> <text>Essential community providers;</text> </paragraph> <paragraph num="(3)"> <text>Complaints and grievances involving the Individual Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Network adequacy;</text> </paragraph> <paragraph num="(5)"> <text>Quality;</text> </paragraph> <paragraph num="(6)"> <text>Transparency;</text> </paragraph> <paragraph num="(7)"> <text>Race, ethnicity, language, interpreter need, and cultural competency (RELICC);</text> </paragraph> <paragraph num="(8)"> <text>Plan service area, including demographics;</text> </paragraph> <paragraph num="(9)"> <text>Accreditation;</text> </paragraph> <paragraph num="(10)"> <text>Authorization of the plan’s sponsoring carrier; and</text> </paragraph> <paragraph num="(11)"> <text>Fair marketing standards developed jointly by the Individual Exchange and the Commissioner.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Instead of or in addition to denying, suspending, or revoking plan certification, the Exchange may impose other remedies or take other actions, and to the extent not otherwise under the regulatory and enforcement authority of the Commissioner, including:</text> <paragraph num="(1)"> <text>Requiring a corrective action to remedy a violation of or failure to comply with standards for certification; and</text> </paragraph> <paragraph num="(2)"> <text>Imposing a penalty not exceeding $5,000 for each violation of or failure to comply with standards for certification.</text> </paragraph> </paragraph> <paragraph num="D."> <text>In determining the amount of a penalty under §C of this regulation, the Exchange shall consider:</text> <paragraph num="(1)"> <text>The type, severity, and duration of the violation;</text> </paragraph> <paragraph num="(2)"> <text>Whether the plan or carrier knew or should have known of the violation;</text> </paragraph> <paragraph num="(3)"> <text>The extent to which the plan or carrier has a history of violations; and</text> </paragraph> <paragraph num="(4)"> <text>Whether the plan or carrier corrected the violation as soon as they knew or should have known of the violation.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The penalties available to the Exchange under this regulation shall be in addition to any criminal or civil penalties imposed for fraud or other violation under any other State or federal law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Qualified Health Plan Certification — On-going Compliance with Qualified Health Plan Certification Standards."> <paragraph num="A."> <text>The Exchange may conduct compliance reviews of a QHP during the plan benefit year.</text> </paragraph> <paragraph num="B."> <text>The Exchange may require an authorized carrier to develop, submit for approval, and follow, as amended by the Exchange, a corrective action plan for compliance issues noted by the Exchange during its compliance review of a QHP.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-108, 31-115, and 31-116, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 11, 2019 (46:5 Md. R. 309)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07A amended effective February 19, 2024 (51:3 Md. R.154)</annotation> </annotations> </chapter> <chapter num="17" heading="State Reinsurance Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the structure, implementation, and eligibility standards for the State Reinsurance Program, as required under Insurance Article, §31-117, Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Affordable Care Act (ACA)” means the Patient Protection and Affordable Care Act of 2010 (Pub. L. 111-148), as amended, including by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152), and the regulations issued under it.</text> </paragraph> <paragraph num="(2)"> <text>“Annual Letter to Issuers” means a written communication, issued by the Individual and SHOP Exchange, that:</text> <paragraph num="(a)"> <text>Provides guidance on how the Exchange will interpret laws and regulations, issues reminders regarding requirements of and compliance with relevant laws and regulations, and provides notification of policy developments; and</text> </paragraph> <paragraph num="(b)"> <text>Instructs issuers on how to meet compliance with QHP certification standards, establishes timelines on implementation, and details Exchange expectations of issuer compliance with such certification standards.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Attachment point” means the threshold dollar amount for claims costs incurred by a health insurance carrier for an enrolled individual’s covered benefits in a benefit year, after which threshold the claims costs for such benefits are eligible for reinsurance payments.</text> </paragraph> <paragraph num="(4)"> <text>“Benefit year” means a calendar year for which a health plan provides coverage for health benefits.</text> </paragraph> <paragraph num="(5)"> <text>“Board” has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Carrier business agreement” means the annual agreement between the Exchange and the carrier that contains terms and conditions governing compliance with the Annotated Code of Maryland, and State and federal regulations.</text> </paragraph> <paragraph num="(7)"> <text>“Carrier Reference Manual” means the document developed by the Exchange that provides business rules and operational instructions to authorized carriers participating on the Individual and SHOP Exchange.</text> </paragraph> <paragraph num="(8)"> <text>“Carrier-specific adjustment factors” means a set of coefficients that modify payments under the State Reinsurance Program and that replicate the modified payments that would occur by applying the Dampening Factor to the Federal Risk Adjustment Program.</text> </paragraph> <paragraph num="(9)"> <text>“Claims-to-premium ratio” means the resulting ratio produced by dividing total claims incurred (less State Reinsurance Program payments, federal risk adjustment payments, and federal high risk pool reinsurance payments) by the premium amount collected for a reinsurance-eligible plan.</text> </paragraph> <paragraph num="(10)"> <text>“Coinsurance rate” means the rate at which the applicable reinsurance entity will reimburse the health insurance issuer for claims costs incurred for an enrolled individual’s covered benefits in a benefit year after the attachment point and before the reinsurance cap.</text> </paragraph> <paragraph num="(11)"> <text>“Dampening factor” means a coefficient that modifies payments under the State Reinsurance Program to account for RA/RI program interaction to the extent that the claims-to-premium ratio between payers and receivers under the risk adjustment is normalized.</text> </paragraph> <paragraph num="(12)"> <text>“Individual Exchange” has the meaning stated in Insurance Article, §31-101(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>Payment Parameters.</text> <paragraph num="(a)"> <text>“Payment parameters” means the attachment point, coinsurance rate, and reinsurance cap for reinsurance payments.</text> </paragraph> <paragraph num="(b)"> <text>“Payment parameters” includes a dampening factor, if determined appropriate by the Board.</text> </paragraph> </paragraph> <paragraph num="(14)"> <text>“Qualified health plan (QHP)" has the meaning stated in Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“RA/RI program interaction” refers to payments received by a carrier for the enrolled population whose risk and claims experience would be eligible for payments under both the Federal Risk Adjustment Program and the State Reinsurance Program, such that the resulting full payment would result in a normalized claims-to-premium ratio, for the enrolled population identified in this definition, that is less than one.</text> </paragraph> <paragraph num="(16)"> <text>“Reinsurance cap” means the threshold dollar amount for total claims costs paid by a health insurance issuer for an enrolled individual’s covered benefits, after which, the claims costs for such benefits are no longer eligible for reinsurance payments.</text> </paragraph> <paragraph num="(17)"> <text>“Reinsurance-eligible plan” means any health benefit plan offered in the individual market, except for the limitations and exceptions provided in Regulation .03 of this chapter.</text> </paragraph> <paragraph num="(18)"> <text>“Risk adjustment covered plan” means, for the purpose of the risk adjustment program, any health insurance coverage offered in the individual or small group market with the exception of grandfathered health plans, group health insurance coverage described in 45 CFR §146.145(c), individual health insurance coverage described in 45 CFR §148.220, and any plan determined not to be a risk adjustment covered plan in the applicable federally certified risk adjustment methodology.</text> </paragraph> <paragraph num="(19)"> <text>“Section 1332 State Innovation Waiver” means the waiver for state innovation filed by the State of Maryland, pursuant to 42 U.S. Code §18052.</text> </paragraph> <paragraph num="(20)"> <text>“State Reinsurance Program” means the market stabilization program identified in Insurance Article, §31-117, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility for Receipt of Reinsurance Payments."> <paragraph num="A."> <text>Except as provided in §B of this regulation, a qualified health plan is eligible to receive reinsurance payments from the State Reinsurance Program, provided that the qualified health plan is offered by a carrier that:</text> <paragraph num="(1)"> <text>Is authorized to offer individual non-Medigap health benefit plans in Maryland;</text> </paragraph> <paragraph num="(2)"> <text>Complies with the assessment under Insurance Article, §6-102.1, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(3)"> <text>Meets all obligations set forth in the Carrier Business Agreement.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The following health benefit plans are not eligible to receive reinsurance payments:</text> <paragraph num="(1)"> <text>Grandfathered health benefit plans as defined in §1251 of the Affordable Care Act;</text> </paragraph> <paragraph num="(2)"> <text>Health benefit plans that are not required to submit reinsurance contributions under Insurance Article, §6-102.1, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>Group health insurance plans, including but not limited to those identified in Insurance Article, §15-1202, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(4)"> <text>Short-term, limited duration insurance plans, including but not limited to those identified in Insurance Article, §15-1301, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(5)"> <text>Association health plans, including but not limited to those offered by associations identified in Insurance Article, §15-1301, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Carrier State Reinsurance Program Accountability Report. For each year a carrier which offers a reinsurance-eligible plan participates in the State Reinsurance Program, the carrier shall submit to the Board a report on a date no later than that provided in the Annual Letter to Issuers, to be made publically available on the Individual Exchange website upon review of the Board, detailing carrier action to manage the costs and utilization of enrollees whose claims are reimbursable under the State Reinsurance Program. At minimum, the report shall include information related to the following:</text> <paragraph num="(1)"> <text>The initiatives and programs the carrier administers to manage cost and utilization of enrollees whose claims are reimbursable under the State Reinsurance Program in a narrative summary format;</text> </paragraph> <paragraph num="(2)"> <text>The total population of enrollees whose claims are reimbursable under the State Reinsurance Program, the allocation of these enrollees across each of the initiatives and programs identified in §C(1) of this regulation, and the allocation of these enrollees who do not participate in the initiatives and programs identified in §C(1) of this regulation;</text> </paragraph> <paragraph num="(3)"> <text>The effectiveness of the initiatives and programs identified in §C(1) of this regulation as measured by the estimated reduction of claims and utilization by the enrollees identified in §C(1) of this regulation;</text> </paragraph> <paragraph num="(4)"> <text>The actions the carrier will take to improve on the effectiveness estimates identified in §C(3) of this regulation;</text> </paragraph> <paragraph num="(5)"> <text>The estimated savings to the State Reinsurance Program based upon the effectiveness identified in §C(3) of this regulation;</text> </paragraph> <paragraph num="(6)"> <text>The estimated rate impact of the initiatives and programs identified in §C(1) of this regulation;</text> </paragraph> <paragraph num="(7)"> <text>The methodology utilized to determine which programs to include in §C(1) of this regulation, estimated effectives in §C(3) of this regulation, and estimated savings to the State Reinsurance Program in §C(5) of this regulation; and</text> </paragraph> <paragraph num="(8)"> <text>Population health initiatives and outcomes for Individual Exchange enrollment.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Calculation of Reinsurance Payments Under the State Reinsurance Program."> <paragraph num="A."> <text>A carrier of a reinsurance-eligible plan, as provided for in Regulation .03 of this chapter, becomes eligible for reinsurance payments from the State Reinsurance Program when its claims costs for individual enrollees’ covered benefits in a benefit year exceed the attachment point established under the process identified in §B of this regulation.</text> </paragraph> <paragraph num="B."> <text>Each year the Board shall set the payment parameters for the State Reinsurance Program by determining the following factors:</text> <paragraph num="(1)"> <text>An attachment point;</text> </paragraph> <paragraph num="(2)"> <text>A coinsurance rate;</text> </paragraph> <paragraph num="(3)"> <text>A reinsurance cap; and</text> </paragraph> <paragraph num="(4)"> <text>A market-level dampening factor provided by the Commissioner, if determined necessary by the Board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For each benefit year after 2019, the Board shall set the estimated payment parameters for the State Reinsurance Program on or before April 1 of the calendar year proceeding the applicable plan year.</text> </paragraph> <paragraph num="D."> <text>For each benefit year after 2019, the Board shall set the final payment parameters for the State Reinsurance Program before December 31 of the calendar year proceeding the applicable plan year.</text> </paragraph> <paragraph num="E."> <text>The Exchange shall calculate each reinsurance payment made from the State Reinsurance Program as the product of the coinsurance rate multiplied by the carrier’s claims costs for an individual enrollee’s covered benefits that the carrier incurs in the applicable benefit year between the attachment point and reinsurance cap. The Exchange shall apply the carrier-specific adjustment factor provided in §B(4) of this regulation to the product calculated above to determine the adjusted reinsurance payment.</text> </paragraph> <paragraph num="F."> <text>If the Individual Exchange determines that all reinsurance payments requested under the State Reinsurance Program by reinsurance-eligible plans in the State for a benefit year will not be equal to the amount of funding allocated to the State Reinsurance Program, the Individual Exchange shall determine a uniform pro rata adjustment to be applied to all such requests for reinsurance payments in the State.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Data Collection and Maintenance for Reinsurance Payments."> <paragraph num="A."> <text>The carriers of reinsurance-eligible plans shall submit to the Exchange data required to determine reinsurance payments as described in Regulation .06 of this chapter, or shall provide access to such data, according to the data requirements specified by the Exchange in the Annual Letter to Issuers.</text> </paragraph> <paragraph num="B."> <text>The Individual Exchange shall establish a process through which an issuer of a reinsurance-eligible plan that does not generate individual enrollee claims in the normal course of business may use estimated claims costs to make a request for payment, or to submit data to be considered for reinsurance payments, in accordance with the requirements of Regulation .09 of this chapter. The State shall ensure that such requests for reinsurance payment, or a subset of such requests, are subject to validation.</text> </paragraph> <paragraph num="C."> <text>The Individual Exchange shall maintain documents and records relating to the State Reinsurance Program, whether paper, electronic, or in other media, for each benefit year for at least 10 years. The documents and records shall be sufficient to enable the evaluation of the State Reinsurance Program’s compliance with federal standards.</text> </paragraph> <paragraph num="D."> <text>The Individual Exchange shall ensure that the collection of personally identifiable information is limited to information reasonably necessary for use in the calculation of reinsurance payments. Any use and disclosure of personally identifiable information shall be limited to those purposes for which the personally identifiable information was collected, including for purposes of data validation.</text> </paragraph> <paragraph num="E."> <text>The Individual Exchange shall maintain standards that provide administrative, physical, and technical safeguards for the personally identifiable information consistent with applicable State and federal standards.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Disbursement of Reinsurance Payments."> <paragraph num="A."> <text>The Individual Exchange shall make reinsurance payments to the carrier of a reinsurance-eligible plan after it receives a valid claim for payment from that carrier in accordance with the processes established in Regulation .07 of this chapter.</text> </paragraph> <paragraph num="B."> <text>For each applicable benefit year, the Individual Exchange shall:</text> <paragraph num="(1)"> <text>Notify carriers annually of reinsurance payments under the State Reinsurance Program payment parameters to be made for the applicable benefit year no later than September 30 of the year following the applicable benefit year; and</text> </paragraph> <paragraph num="(2)"> <text>Provide to each issuer of a reinsurance-eligible plan the calculation of total reinsurance payment requests made under the State Reinsurance Program payment parameters.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Request for Reinsurance Payment."> <paragraph num="A."> <text>A carrier may make a request for payment when a carrier’s claims costs for an enrollee of a reinsurance-eligible plan has met the criteria for reinsurance payment set forth by the Board for the applicable benefit year.</text> </paragraph> <paragraph num="B."> <text>A carrier of a reinsurance-eligible plan shall make requests for payment in accordance with the requirements of the Annual Letter to Issuers for the applicable benefit year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Document Retention and Audits."> <paragraph num="A."> <text>A carrier of a reinsurance-eligible plan shall maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the requests for reinsurance payments made pursuant to Regulation .07 of this chapter for a period of at least 10 years and shall make those documents and records available upon request by the Board or the Individual Exchange or its designee to any such entity for purposes of verification, investigation, audit, or other review of reinsurance payment requests.</text> </paragraph> <paragraph num="B."> <text>The Individual Exchange may audit a carrier of a reinsurance-eligible plan to assess its compliance with the requirements of this chapter. The issuer shall ensure that its relevant contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results in a finding of material weakness or significant deficiency with respect to compliance with any requirement of these regulations, the carrier shall complete all of the following:</text> <paragraph num="(1)"> <text>Within 30 calendar days of the issuance of the final audit report, provide a written corrective action plan to the Exchange for approval;</text> </paragraph> <paragraph num="(2)"> <text>Implement the corrective action plan; and</text> </paragraph> <paragraph num="(3)"> <text>Provide to the Exchange written documentation of the corrective actions once taken.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="State Reinsurance Program Surplus."> <text>For the Benefit Year 2019 and after, the Individual Exchange shall reserve any surplus, after all reinsurance payments have been remitted, for claims in future years of the State Reinsurance Program.</text> </regulation> <annotations> <annotation type="Authority">Insurance Article, §31-117(f), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 11, 2019 (46:5 Md. R. 309)</annotation> </annotations> </chapter> <chapter num="18" heading="Small Business Health Options Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the requirements for the Small Business Health Options Program. This chapter does not address the individual exchange or qualified dental plans or qualified vision plans.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Common law employee” has the meaning stated in 20 CFR §404.1007.</text> </paragraph> <paragraph num="(2)"> <text>“Date of enrollment’’ means the date of enrollment of an individual covered under a group health plan or, if earlier, the first day of the waiting period for such enrollment.</text> </paragraph> <paragraph num="(3)"> <text>“Employer group health insurance coverage” means health coverage offered by an employer to an employee and the employee’s dependents, if eligible, under:</text> <paragraph num="(a)"> <text>Government health coverage, such as the Federal Employees Health Benefit program;</text> </paragraph> <paragraph num="(b)"> <text>Health coverage offered in the small or large group market by an employer within a state; or</text> </paragraph> <paragraph num="(c)"> <text>Grandfathered health coverage offered by an employer in a group market.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>“Full-time employee” means a common law employee working on average, at least 30 hours per week.</text> </paragraph> <paragraph num="(5)"> <text>“Independent contractor” means a 1099 employee working 30 or more hours per week.</text> </paragraph> <paragraph num="(6)"> <text>“Member” means any person enrolled in a health benefit plan.</text> </paragraph> <paragraph num="(7)"> <text>“Part-time employee” means a common law employee working fewer than 30 hours per week, or seasonal worker working more than 120 days per year.</text> </paragraph> <paragraph num="(8)"> <text>“Participation rate” means the percentage of eligible employees electing to participate in a health benefit plan out of all eligible employees.</text> </paragraph> <paragraph num="(9)"> <text>“Participation requirement” means a policy provision, or a carrier’s underwriting guideline if there is no such provision, which requires that a group attain a certain participation rate in order for a carrier to accept the group for enrollment in the plan.</text> </paragraph> <paragraph num="(10)"> <text>“Qualified employee’’ means an employee who:</text> <paragraph num="(a)"> <text>Works on a full-time basis with a normal work week of thirty or more hours, but does not include an employee who works on a temporary or substitute basis; and</text> </paragraph> <paragraph num="(b)"> <text>Is hired to work for a period of not less than 5 months.</text> </paragraph> </paragraph> <paragraph num="(11)"> <text>“Qualified employer” means a small employer that elects to make its full-time employees and, at the option of the employer, some or all of its part-time employees eligible for one or more qualified health plans offered through the SHOP Exchange, provided that the employer:</text> <paragraph num="(a)"> <text>Has its principal place of business in the State and elects to provide coverage through the SHOP Exchange to all of its eligible employees, wherever employed; or</text> </paragraph> <paragraph num="(b)"> <text>Elects to provide coverage through the SHOP Exchange to all of its eligible employees who are principally employed in the State.</text> </paragraph> </paragraph> <paragraph num="(12)"> <text>“Rescission” means a cancellation or discontinuance of coverage that has retroactive effect.</text> </paragraph> <paragraph num="(13)"> <text>“Waiting period” means the period of time that must pass before coverage for a qualified employee who is otherwise eligible to enroll under the terms of a small group health plan can become effective.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility for SHOP Exchange."> <paragraph num="A."> <text>Nondiscrimination. No policy shall exclude a qualified employee or dependent on the basis of age, sex, sexual orientation, gender identity, occupation, actual or expected health condition, claims experience, duration of coverage, or medical condition.</text> </paragraph> <paragraph num="B."> <text>SHOP Exchange Employer Eligibility.</text> <paragraph num="(1)"> <text>An employer is eligible to purchase insurance on the SHOP Exchange if it meets the following requirements as established by Insurance Article, §31-101(aa), Annotated Code of Maryland:</text> <paragraph num="(a)"> <text>Has, on average, 50 or fewer employees during the preceding calendar year;</text> </paragraph> <paragraph num="(b)"> <text>Has at least one full-time employee who is not the spouse or other dependent of the owner;</text> </paragraph> <paragraph num="(c)"> <text>Has its principal place of business in Maryland;</text> </paragraph> <paragraph num="(d)"> <text>Elects to offer, at a minimum, all full-time employees coverage in a qualified health plan through the SHOP Exchange; and</text> </paragraph> <paragraph num="(e)"> <text>Either:</text> <paragraph num="(i)"> <text>Elects to provide coverage through the SHOP to all eligible employees, wherever employed; or</text> </paragraph> <paragraph num="(ii)"> <text>Elects to provide coverage through the SHOP to all of its eligible employees who are principally employed in Maryland.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>For the purpose of determining the number of qualified employees, a business shall be considered to be one qualified small business or group if:</text> <paragraph num="(a)"> <text>It is eligible to file a combined tax return for purpose of State taxation; or</text> </paragraph> <paragraph num="(b)"> <text>It comprises two or more companies that are part of the same parent-subsidiary controlled group, as defined by 26 CFR §1.1563-1(a)(2).</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>New Employers. An employer that was not in existence for the entirety of the preceding calendar year shall have eligibility determined as established by Insurance Article, §31-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="D."> <text>Eligibility Application. All qualified small businesses shall submit an eligibility application in accordance with relevant provisions of 45 CFR §155.716.</text> </paragraph> <paragraph num="E."> <text>Duration of Eligibility. A determination of an employer’s eligibility to participate in SHOP remains valid until the employer makes a change that could end its eligibility under 45 CFR §155.710(b), or until the employer withdraws from participation in the SHOP.</text> </paragraph> <paragraph num="F."> <text>Eligible Employee.</text> <paragraph num="(1)"> <text>Full-time common law employees are eligible for SHOP participation.</text> </paragraph> <paragraph num="(2)"> <text>An employer who elects to cover part-time and seasonal employees working more than 120 days per year shall calculate full-time equivalency of the employee’s hours by:</text> <paragraph num="(a)"> <text>Calculating the total number of hours worked by all part-time and seasonal employees per month; and</text> </paragraph> <paragraph num="(b)"> <text>Dividing the total number of hours worked by 120.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Groups with Non-Common Law Employees. The following groups are eligible for SHOP participation if at least one common law full-time employee is also employed and elects to enroll in SHOP coverage:</text> <paragraph num="(1)"> <text>A corporate partner;</text> </paragraph> <paragraph num="(2)"> <text>An S corporation shareholder with more than 2 percent ownership;</text> </paragraph> <paragraph num="(3)"> <text>A business that employs contractual 1099 employees; and</text> </paragraph> <paragraph num="(4)"> <text>A sole proprietor.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Household Employers. A household employer is eligible for SHOP participation, under the following conditions:</text> <paragraph num="(1)"> <text>Relevant eligibility requirements pursuant to this regulation are met; and</text> </paragraph> <paragraph num="(2)"> <text>The employer has filed, or will file for the subsequent tax year, an appropriate Schedule H (Form 1040) or Form 941 demonstrating that a household employee is employed, and all appropriate taxes have been paid or withheld.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Minimum Participation. A qualified employer shall meet the following minimum participation requirements:</text> <paragraph num="(1)"> <text>At least 60 percent minimum participation is required for qualified employers; and</text> </paragraph> <paragraph num="(2)"> <text>Minimum participation is determined prior to initial plan enrollment, and annually prior to plan renewal.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Participation Determination. In applying a minimum participation requirement to determine whether the applicable percentage of participation is met, a carrier may not consider as eligible employees:</text> <paragraph num="(1)"> <text>Employees who are enrolled in coverage through another group health plan, governmental coverage (such as Medicare, Medicaid, or TRICARE), coverage sold through the individual market, or other minimum essential coverage; or</text> </paragraph> <paragraph num="(2)"> <text>Employees who are under the age of 26 years who are covered under their parent’s health benefit plan.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Waiver of Minimum Participation Period. Small employers that cannot comply with minimum participation requirements may apply for coverage during the period that begins on November 15 and extends through December 15 of any year.</text> </paragraph> <paragraph num="L."> <text>Determination Outcomes.</text> <paragraph num="(1)"> <text>A group shall be enrolled once it has been determined that the group satisfied the minimum participation requirement.</text> </paragraph> <paragraph num="(2)"> <text>If a group becomes enrolled as the result of an error in computing participation level, enrollment shall continue until the end of the month following the month in which a termination notice is sent.</text> </paragraph> <paragraph num="(3)"> <text>The determination of an employer’s eligibility to participate in the SHOP remains valid until the employer makes a change that ends or alters its eligibility, or the employer withdraws from participation in the SHOP.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Eligibility Redetermination.</text> <paragraph num="(1)"> <text>The SHOP Exchange may request new eligibility applications from employers in order to conduct eligibility redetermination.</text> </paragraph> <paragraph num="(2)"> <text>Requests shall be made by the SHOP Exchange no later than 60 prior to the employer’s renewal date.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Eligibility Adjustment Period. When information submitted on the SHOP single employer application is inconsistent with information collected from third-party data sources through the verification process or otherwise received by the SHOP Exchange, the SHOP Exchange shall:</text> <paragraph num="(1)"> <text>Make a reasonable effort to identify and address any causes of typographical errors or clerical errors;</text> </paragraph> <paragraph num="(2)"> <text>Notify the employer of the inconsistency;</text> </paragraph> <paragraph num="(3)"> <text>Provide the employer with a period of 30 days from the date the notice is sent, to present satisfactory documentary evidence to support the employer’s application, or resolved the inconsistency; and</text> </paragraph> <paragraph num="(4)"> <text>If after the 30-day period described in §N(3) of this regulation the SHOP Exchange has not received satisfactory documentary evidence:</text> <paragraph num="(a)"> <text>Notify the employer of its denial or termination of eligibility and of the employer’s right to appeal such determination; and</text> </paragraph> <paragraph num="(b)"> <text>If the employer was enrolled pending the confirmation or verification of eligibility information, discontinue the employer’s participation in the SHOP at the end of the month following the month in which the ineligibility notice is sent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="O."> <text>Employer Eligibility Appeal.</text> <paragraph num="(1)"> <text>An employer has the right to appeal:</text> <paragraph num="(a)"> <text>A notice of denial or termination of eligibility; and</text> </paragraph> <paragraph num="(b)"> <text>A failure by the SHOP Exchange to provide a timely eligibility determination or a timely notice of an eligibility determination.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>All appeals shall be requested within 90 days from the date of the notice of denial or termination of eligibility.</text> </paragraph> <paragraph num="(3)"> <text>The SHOP Exchange shall provide a written notice of the right to appeal a denial of eligibility which includes:</text> <paragraph num="(a)"> <text>The reason for the denial or termination of eligibility, including a citation to the applicable regulations; and</text> </paragraph> <paragraph num="(b)"> <text>The procedure by which the employer may request an appeal of the denial or termination of eligibility.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The SHOP Exchange shall issue written notice of the appeal decision to the employer within 90 days of the date the appeal request is received.</text> </paragraph> <paragraph num="(5)"> <text>If an employer is found eligible following the appeal decision, then, at the employer’s option, the effective date of coverage or enrollment through the SHOP Exchange under the decision is:</text> <paragraph num="(a)"> <text>Retroactive to the effective date of coverage or enrollment through the SHOP Exchange that the employer would have had if the employer had been correctly determined eligible; or</text> </paragraph> <paragraph num="(b)"> <text>Prospective to the first day of the month following the date of the notice of the appeal decision.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>If the employer is found ineligible under the appeal decision, then the appeal decision is effective as of the date of the notice of the appeal decision.</text> </paragraph> </paragraph> <paragraph num="P."> <text>Safe Harbor. The SHOP Exchange and participating carriers shall treat a qualified small business which ceases to be eligible solely by reason of an increase in the number of employees, as an eligible small business until it otherwise fails to meet the eligibility criteria of this section, or it elects to terminate coverage for qualified employees through the SHOP Exchange.</text> </paragraph> <paragraph num="Q."> <text>Reporting. Employers shall submit a new application within 30 days of any change made to the business structure that could alter its SHOP Exchange eligibility.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Enrollment."> <paragraph num="A."> <text>Rolling Enrollment Period. A qualified employer may purchase coverage for its small group at any point during the year.</text> </paragraph> <paragraph num="B."> <text>Length of Plan Year. The employer’s plan year shall consist of the 12-month period beginning with the qualified employer’s effective date of coverage.</text> </paragraph> <paragraph num="C."> <text>Effective Coverage Dates.</text> <paragraph num="(1)"> <text>The effective date of coverage is:</text> <paragraph num="(a)"> <text>No later than the first day of the following month for a group enrollment received on the first through the fifteenth day of any month; or</text> </paragraph> <paragraph num="(b)"> <text>No later than the first day of the second following month for a group enrollment received on the sixteenth though the last day of any month.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A qualified employer may opt for a later effective date within a quarter for which small group market rates are available.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Newly Hired Employees.</text> <paragraph num="(1)"> <text>The effective date of coverage for a qualified health plan selection received by the SHOP from a newly qualified employee is the first day of the month following the end of the waiting period.</text> </paragraph> <paragraph num="(2)"> <text>If the newly qualified employee makes a plan selection on the first day of the month and any applicable waiting period has ended by that date, coverage shall be effective on that date.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Annual Open Enrollment Period Standards. A carrier shall establish an open enrollment period that meets the requirements established under Insurance Article, §§15-1208.1 and 15-1208.2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="F."> <text>Eligibility Requirement Waiver Period. If a small group health plan cannot comply with group participation rules for the offering of health insurance coverage, a carrier may restrict the availability of such coverage to an annual enrollment period that begins November 15 and extends through December 15 of each calendar year.</text> </paragraph> <paragraph num="G."> <text>Special Enrollment Periods. Special enrollment periods shall be established in accordance with the requirements of Insurance Article, §§15-1208.1 and 15-1208.2, Annotated Code of Maryland.</text> </paragraph> <paragraph num="H."> <text>Waiting Period.</text> <paragraph num="(1)"> <text>A small employer may implement a waiting period of no more than 60 days for any qualified employee.</text> </paragraph> <paragraph num="(2)"> <text>Coverage will be effective the first of the month following the end of the waiting period.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Payment of First Month’s Premium.</text> <paragraph num="(1)"> <text>A small employer shall pay the first month’s premium to the carrier of the qualified health plan to effectuate enrollment when the small employer has:</text> <paragraph num="(a)"> <text>Enrolled in a qualified health plan after coverage from a previous enrollment in a qualified health plan the individual had was terminated;</text> </paragraph> <paragraph num="(b)"> <text>Enrolled for the first time in a qualified health plan in the SHOP Exchange; or</text> </paragraph> <paragraph num="(c)"> <text>Enrolled in a qualified health plan offered by a different carrier of the same holding company in the SHOP Exchange.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The first month’s premium payment to effectuate prospective coverage for qualified health plan selections made during an annual open enrollment period or during a special enrollment period shall be due from the employer on a uniformly applied date specified by the authorized carrier of the qualified health plan that is no earlier than the coverage effective date but no later than 30 calendar days from the coverage effective date.</text> </paragraph> <paragraph num="(3)"> <text>The first month’s premium payment to effectuate prospective coverage for qualified health plan selections made during a special enrollment period under §G of this regulation shall be due from the employer on a uniformly applied date specified by the authorized carrier of the qualified health plan that is no earlier than the coverage effective date but no later than 30 calendar days from the date the carrier receives the enrollment transaction from the SHOP.</text> </paragraph> <paragraph num="(4)"> <text>Payment to effectuate retroactive coverage shall include the premium due from the employer for all months of retroactive coverage and the full premium amount of the first prospective month of coverage.</text> </paragraph> <paragraph num="(5)"> <text>Payment to effectuate retroactive coverage for qualified health plan selections made during a special enrollment period shall be due on a uniformly applied date specified by the authorized carrier that is no earlier than the coverage effective date and no later than 30 calendar days from the date the carrier receives the enrollment transaction from the SHOP Exchange or the coverage effective date, whichever is later.</text> </paragraph> <paragraph num="(6)"> <text>An authorized carrier may choose to extend the premium due date if the carrier does so in a uniform and consistent manner for all similarly situated applicants.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Group Installation.</text> <paragraph num="(1)"> <text>A carrier shall install groups upon enrollment.</text> </paragraph> <paragraph num="(2)"> <text>Employee choice groups shall be effective on the date the group first effectuated coverage.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Renewal. A health insurance issuer offering SHOP coverage shall renew or continue in force the coverage in the manner prescribed under Insurance Article, §15-1212, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Termination, Cancellation, and Renewal of Qualified Health Plan."> <paragraph num="A."> <text>Termination.</text> <paragraph num="(1)"> <text>A qualified employer who participates in the SHOP and who terminates SHOP coverage terminates the enrollment of the employees enrolled in plans under the SHOP.</text> </paragraph> <paragraph num="(2)"> <text>An employee who is the certificate holder of a qualified health plan purchased through the SHOP, who terminates enrollment in a qualified health plan also terminates the enrollment of the other enrollees in the employee’s household.</text> </paragraph> <paragraph num="(3)"> <text>Each enrollee who is not the certificate holder may terminate enrollment in a qualified health plan without affecting the enrollment status of the employee’s household or each individual member of the employee’s household other than the enrollee.</text> </paragraph> <paragraph num="(4)"> <text>A carrier shall process the SHOP Exchange’s termination determination promptly and without undue delay.</text> </paragraph> <paragraph num="(5)"> <text>A carrier shall maintain records of termination of enrollment in a qualified health plan in the format specified by the SHOP Exchange in an electronic data interchange format for a period of 10 years.</text> </paragraph> <paragraph num="(6)"> <text>A carrier shall make reasonable accommodations for all individuals with disabilities (as defined by the Americans with Disabilities Act), including head-of-household and non-head-of-household enrollees, before terminating the individual’s enrollment.</text> </paragraph> <paragraph num="(7)"> <text>A carrier shall send an electronic transaction to the SHOP Exchange documenting, or acknowledging, each termination of coverage carried out under this chapter, promptly and without undue delay.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Termination by the SHOP Exchange.</text> <paragraph num="(1)"> <text>Termination Due to Failure to Pay.</text> <paragraph num="(a)"> <text>If payment for a group is not received by the end of the grace period stated in the group contract, the SHOP Exchange may terminate the group’s coverage.</text> </paragraph> <paragraph num="(b)"> <text>The last day of coverage shall be the last day of the grace period stated in the group contract or first day of the coverage month.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Termination Due to Error, Misconduct, Fraud, or Misrepresentation of a Group. Coverage may be retroactively terminated if:</text> <paragraph num="(a)"> <text>The enrollment in a qualified health plan through the SHOP Exchange was unintentional, inadvertent, or erroneous and was the result of the error or misconduct of an officer, employee, or agent of the SHOP Exchange, its instrumentalities, or a non-Exchange entity providing enrollment assistance or conducting enrollment activities;</text> </paragraph> <paragraph num="(b)"> <text>The employee or group was enrolled in a qualified health plan without the employee or group’s knowledge or consent by any third party, including third parties who have no connection with the SHOP Exchange; or</text> </paragraph> <paragraph num="(c)"> <text>The eligibility determination was made based on information regarding the group that is false or misrepresentative of the actual composition of the group.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Notification of Termination.</text> <paragraph num="(a)"> <text>If any employee’s coverage or enrollment through the SHOP is terminated due to nonpayment of premiums or due to a loss of the employee’s eligibility to participate in the SHOP, including the coverage of an employee who loses eligibility because a qualified employer has lost its eligibility, the SHOP shall notify the employee of the termination.</text> </paragraph> <paragraph num="(b)"> <text>Such notice of termination shall include the termination effective date and reason for termination, and shall be sent within 3 business days if an electronic notice is sent, and within 5 days if a mailed hard copy notice is sent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Renewal, Nonrenewal, and Cancellation. Renewal, nonrenewal, and cancellation shall be conducted in accordance with the requirements of Insurance Article, §15-1212, Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Coverage Models."> <paragraph num="A."> <text>Employer Choice Model Requirements. A qualified employer may elect to make available to qualified employees a choice of qualified health plans offered through the SHOP Exchange by:</text> <paragraph num="(1)"> <text>A single issuer across all available coverage levels; or</text> </paragraph> <paragraph num="(2)"> <text>One or more qualified health plans offered by a single issuer.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Employee Choice Model Requirements. A qualified employer may select two consecutive metal levels of coverage, and employees may choose any SHOP plan across all the insurance companies that offer plans at those metal levels.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Employer Contribution."> <paragraph num="A."> <text>An employer is not required to contribute to the qualified health plan premiums of its employees.</text> </paragraph> <paragraph num="B."> <text>If an employer chooses to contribute to the qualified health plan premiums of its employees, the employer shall:</text> <paragraph num="(1)"> <text>Select a reference plan on which the contributions will be based;?and</text> </paragraph> <paragraph num="(2)"> <text>Make a contribution that is:</text> <paragraph num="(a)"> <text>A fixed percentage of the premium of the reference plan, based on the coverage level selected by the qualified employee and the qualified employee’s job classification; or</text> </paragraph> <paragraph num="(b)"> <text>A dollar amount that ensures that all of the qualified employer’s employees with the same coverage level and job classification would pay the same amount if they purchased the reference plan.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>A reference plan selected under this regulation:</text> <paragraph num="(1)"> <text>If under the employer choice model established under Regulation .06A of this chapter, shall be a qualified plan that is:</text> <paragraph num="(a)"> <text>Offered by the carrier or insurance holding company system selected by the qualified employer; and</text> </paragraph> <paragraph num="(b)"> <text>Among the qualified plans of the carrier or insurance holding company system selected by the qualified employer; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>If under the employee choice model established under Regulation .06B of this chapter, shall be a qualified plan offered by any carrier at the metal level selected by the qualified employer.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Premium Rating."> <paragraph num="A."> <text>Premium Rating.</text> <paragraph num="(1)"> <text>The total premium charged to a small group shall be developed using a per-member rating method.</text> </paragraph> <paragraph num="(2)"> <text>For each covered employee and their covered dependents, the premium shall be determined as follows:</text> <paragraph num="(a)"> <text>For each adult age 21 and over, multiply the base rate by the applicable age and geographic area factors; and</text> </paragraph> <paragraph num="(b)"> <text>For each covered child age 0—20, multiply the base rate of the oldest three children by the applicable age and geographic area factors.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Composite Billing.</text> <paragraph num="(1)"> <text>Composite billing is available only under the employer choice model set forth in Regulation .06A of this chapter.</text> </paragraph> <paragraph num="(2)"> <text>The SHOP Exchange will determine premiums under composite billing based on instructions issued by the Commissioner.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv), 31-108(b)(13), and 31-111, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 4, 2019 (46:22 Md. R. 978)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03I amended effective November 11, 2024 (51:22 Md. R. 964)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04H amended effective November 11, 2024 (51:22 Md. R. 964)</annotation> </annotations> </chapter> <chapter num="19" heading="State-Based Young Adult Health Insurance Subsidies Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets forth the structure, implementation, and eligibility standards for the State-Based Young Adult Health Insurance Subsidies Program, as required under Insurance Article, §31-117 Annotated Code of Maryland.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Enrollee” means a qualified individual who is enrolled in a qualified health plan through the Individual Exchange.</text> </paragraph> <paragraph num="(2)"> <text>“Essential health benefit” has the meaning set forth in Insurance Article, §31-116(a), Annotated Code of Maryland, and 42 U.S.C. §18022(b).</text> </paragraph> <paragraph num="(3)"> <text>“Federal poverty level (FPL)” means the most recently published federal poverty level guidelines, updated periodically in the Federal Register by the Secretary of HHS as set forth in 42 U.S.C. §9902(2), as of the first day of the open enrollment period for QHPs offered through the Individual Exchange for a calendar year.</text> </paragraph> <paragraph num="(4)"> <text>“Program” means the State-Based Young Adult Health Insurance Subsidies Program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility Requirements for Subsidies Through the Program."> <paragraph num="A."> <text>An enrollee is eligible to receive subsidies from the Program during a month if:</text> <paragraph num="(1)"> <text>The enrollee is a member of a tax filer’s tax household and the tax filer has met the eligibility requirements for APTC in accordance with the requirements in COMAR 14.35.07.08A—C, E, and G;</text> </paragraph> <paragraph num="(2)"> <text>The enrollee is a member of a tax filer’s tax household and the tax filer attests to a household income, as defined in 26 CFR §1.36B-1(e), greater than or equal to 138 percent but not more than 400 percent of the FPL for the benefit year for which coverage is requested;</text> </paragraph> <paragraph num="(3)"> <text>The enrollee is at least 18 years old; and</text> </paragraph> <paragraph num="(4)"> <text>The enrollee is under the age of 35 years.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Eligibility under this regulation is contingent upon verification of the enrollee’s attestation that the enrollee meets the criteria in §A of this regulation.</text> </paragraph> <paragraph num="C."> <text>The enrollee’s age as of the effective date of coverage shall be used in determining the enrollee’s eligibility to receive subsidies from the Program.</text> </paragraph> <paragraph num="D."> <text>In any calendar year of the program:</text> <paragraph num="(1)"> <text>The Board may limit the availability of subsidies, regardless of eligibility, if the costs of the program are projected to exceed the budgeted allowance for that calendar year;</text> </paragraph> <paragraph num="(2)"> <text>The limit described in §D(1) of this regulation may take the form of:</text> <paragraph num="(a)"> <text>A limit on the number of enrollees eligible for the subsidy;</text> </paragraph> <paragraph num="(b)"> <text>A limit on increases in subsidies during a plan year for enrollees after enrollment; or</text> </paragraph> <paragraph num="(c)"> <text>Any other limit or combination of limits as the Board deems appropriate;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any limit on the availability of subsidies for enrollees in the program shall be applied uniformly to all enrollees after the effective date of the Board’s decision; and</text> </paragraph> <paragraph num="(4)"> <text>The Exchange shall monitor the data outlined in Regulation .05 of this chapter to determine, in consultation with the Maryland Insurance Administration, the recommended limits to the Program.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Effective Dates for Changes in Subsidy Eligibility.</text> <paragraph num="(1)"> <text>Except as otherwise specified under this regulation, changes in eligibility for subsidies determined by the Individual Exchange are effective the first day of the month following the date on which the determination is made.</text> </paragraph> <paragraph num="(2)"> <text>When an applicant is determined newly eligible for Medicaid or MCHP, the applicant shall be ineligible for subsidies beginning the first of the month after the enrollee is determined newly eligible for Medicaid or MCHP.</text> </paragraph> <paragraph num="(3)"> <text>When an applicant is eligible for a special enrollment period under COMAR 14.35.07.12—.19, the applicant or enrollee shall be in accordance with the applicable effective date specified for each special enrollment period under COMAR 14.35.07.12—.19.</text> </paragraph> <paragraph num="(4)"> <text>When an enrollee’s enrollment is terminated by the enrollee as set forth in 45 CFR §155.430(b)(1) or terminated by the Exchange under 45 CFR §155.430(b)(2)(i)—(vii) the applicant or enrollee shall be in accordance with the applicable effective date of the termination set forth in 45 CFR §155.430(d).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Calculation of Subsidies Under the Program."> <paragraph num="A."> <text>The subsidy may not exceed the enrolle’s premium amount.</text> </paragraph> <paragraph num="B."> <text>The subsidy shall be calculated for eligible enrollees in a tax household and applied to the premium for each eligible enrollee.</text> </paragraph> <paragraph num="C."> <text>The subsidy shall be applied to the premium balance remaining after application of the Advance Premium Tax Credit.</text> </paragraph> <paragraph num="D."> <text>Basis of Calculation.</text> <paragraph num="(1)"> <text>For enrollees with a greater than 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall be calculated based on, and applied only to, the portion of premium allocated to essential health benefits.</text> </paragraph> <paragraph num="(2)"> <text>For enrollees with a 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall also be applied to nonessential health benefits so that the enrollee’s total premium responsibility is equal to $0.</text> </paragraph> </paragraph> <paragraph num="E."> <text>For each benefit year after 2022, the Board shall set the payment parameters for the Program before December 31 of the calendar year preceding the applicable plan year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Exchange Data Collection, Reporting, and Maintenance."> <paragraph num="A."> <text>The Exchange shall track data on the Program including:</text> <paragraph num="(1)"> <text>On a monthly basis, or more frequently as required to appropriately monitor enrollment and spending under the program, the average number of young adults receiving subsidies under the Program;</text> </paragraph> <paragraph num="(2)"> <text>On a monthly basis, or more frequently as required to appropriately monitor enrollment and spending under the program, the average subsidy amount received by young adults under the Program; and</text> </paragraph> <paragraph num="(3)"> <text>The impact the Program has on rates in the individual insurance market.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Information tracked in §A of this regulation shall be posted monthly on the website of the Individual Exchange and included in the Annual Report required under Insurance Article, §31–119(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The Individual Exchange shall maintain documents and records relating to the Program, whether paper, electronic, or in other media, for each benefit year for at least 10 years.</text> </paragraph> <paragraph num="D."> <text>The Individual Exchange shall ensure that the collection of personally identifiable information is limited to information reasonably necessary for use in the calculation of subsidies. Any use and disclosure of personally identifiable information shall be limited to those purposes for which the personally identifiable information was collected, including for purposes of data validation.</text> </paragraph> <paragraph num="E."> <text>The Individual Exchange shall maintain standards that provide administrative, physical, and technical safeguards for the personally identifiable information consistent with applicable State and federal standards.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Disbursement of Subsidies."> <paragraph num="A."> <text>The Individual Exchange shall transmit subsidies directly to the carrier with whom the recipient is enrolled, to be applied to the recipient’s premium.</text> </paragraph> <paragraph num="B."> <text>A carrier that receives notice from the Individual Exchange that an individual enrolled in the carrier’s QHP is eligible for subsidies shall:</text> <paragraph num="(1)"> <text>Reduce the portion of the premium charged to or for the individual for the applicable month or months by the amount of the subsidy;</text> </paragraph> <paragraph num="(2)"> <text>Notify the Exchange of the reduction in the portion of the premium charged to the individual in accordance with 45 CFR §156.265(g); and</text> </paragraph> <paragraph num="(3)"> <text>Include with each billing statement, as applicable, to or for the individual the amount of the subsidy for the applicable month or months, and the remaining premium owed.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Refunds.</text> <paragraph num="(1)"> <text>If a carrier discovers that it did not reduce the portion of the premium charged to or for an enrollee for the applicable month or months by the amount of the subsidy in accordance with §B(1) of this regulation, the carrier shall notify the enrollee of the improper reduction within 45 calendar days of the carrier’s discovery of the improper reduction and refund any excess premium paid by or for the enrollee.</text> </paragraph> <paragraph num="(2)"> <text>Unless a refund is requested by or for the enrollee, the carrier shall, within 45 calendar days of discovery of the error, apply the excess premium paid by or for the enrollee to the enrollee’s portion of the premium or refund the amount directly.</text> </paragraph> <paragraph num="(3)"> <text>If any excess premium remains after application of premium as described in §C(2) of this regulation:</text> <paragraph num="(a)"> <text>The carrier shall apply the excess premium to the enrollee’s portion of the premium for each subsequent month for the remainder of the period of enrollment or benefit year until the excess is fully applied or refund the remaining amount directly; and</text> </paragraph> <paragraph num="(b)"> <text>At the end of the period of enrollment or benefit year, the carrier shall refund any excess premium within 45 calendar days of the end of the period of enrollment or benefit year, whichever comes first.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a refund is requested by or for the enrollee, the refund shall be provided within 45 calendar days of the date of the request.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A carrier may not refuse to commence coverage under a policy or terminate coverage on account of any delay in payment of a subsidy on behalf of an enrollee if the carrier has been notified by the Exchange that the carrier will receive such advance payment.</text> </paragraph> <paragraph num="E."> <text>Carriers shall participate in the payment and reconciliation process established by the Individual Exchange to ensure that appropriate payments are received by the carriers and that excess payments are returned by the carriers to the Individual Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Document Retention and Audits."> <paragraph num="A."> <text>Carriers shall maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the disbursement of subsidies made pursuant to Regulations .03 and .06 of this chapter for a period of at least 10 years and shall make those documents and records available upon request by the Board or its designee to any such entity for purposes of verification, investigation, audit, or other review of subsidy disbursement.</text> </paragraph> <paragraph num="B."> <text>The Individual Exchange or its designee may audit a carrier offering subsidies through the program to assess its compliance with the requirements of this chapter. The carrier shall ensure that its relevant contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results in a finding of material weakness or significant deficiency with respect to compliance with any requirement of these regulations, the carrier shall complete all of the following:</text> <paragraph num="(1)"> <text>Within 30 calendar days of the issuance of the final audit report, provide a written corrective action plan to the Individual Exchange for approval;</text> </paragraph> <paragraph num="(2)"> <text>Implement the corrective action plan; and</text> </paragraph> <paragraph num="(3)"> <text>Provide to the Individual Exchange written documentation of the corrective actions once taken.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article, §31-106(c)(1)(iv), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 29, 2021 (48:24 Md. R. 1025)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03D amended effective October 16, 2023 (50:20 Md. R. 889)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04D amended effective December 26, 2022 (49:26 Md. R. 1080)</annotation> </annotations> </chapter> <chapter num="20" heading="Hearings by the Board of Trustees"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>In General. This chapter applies to hearings conducted by the Board of Trustees of the Maryland Health Benefit Exchange.</text> </paragraph> <paragraph num="B."> <text>Determinations Entitled to Hearings. This chapter applies only to the appeal of an Exchange determination regarding:</text> <paragraph num="(1)"> <text>The amount of State-based subsidy paid by the Exchange to carriers pursuant to COMAR 14.35.19;</text> </paragraph> <paragraph num="(2)"> <text>Contested cases under COMAR 14.35.10 in which the Board has revoked delegation authority;</text> </paragraph> <paragraph num="(3)"> <text>Rehearings held pursuant to COMAR 14.35.10.11E; and</text> </paragraph> <paragraph num="(4)"> <text>Any other matter in which the Board has the authority to conduct hearings, and the Board has determined that a hearing is necessary.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Board” means the Maryland Health Benefit Exchange Board of Trustees.</text> </paragraph> <paragraph num="(2)"> <text>“Board Secretary” means the Secretary for the Board of Trustees.</text> </paragraph> <paragraph num="(3)"> <text>Contested Case.</text> <paragraph num="(a)"> <text>“Contested case” has the meaning stated in State Government Article, §10-202(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>“Contested case” includes a proceeding:</text> <paragraph num="(i)"> <text>Arising out of a determination made by the Exchange;</text> </paragraph> <paragraph num="(ii)"> <text>Regarding an authorization, certification, or permit issued by the Exchange; or</text> </paragraph> <paragraph num="(iii)"> <text>Arising out of any act of or failure to act by the Exchange, involving an authorization or a certification issued by the Exchange, that aggrieves a person.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>“Contested case” does not include any other quasi-legislative hearing.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Determination.</text> <paragraph num="(a)"> <text>“Determination” means a decision by the Exchange that requires the Board to provide the opportunity for a hearing to a person aggrieved by the decision.</text> </paragraph> <paragraph num="(b)"> <text>“Determination” includes:</text> <paragraph num="(i)"> <text>A decision as to whether a person against whom an administrative complaint has been received violated a law, regulation, or order; and</text> </paragraph> <paragraph num="(ii)"> <text>An order issued pursuant to the Board's authority.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(5)"> <text>“Exchange” means the Maryland Health Benefit Exchange.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the Executive Director of the Maryland Health Benefit Exchange, appointed pursuant to Insurance Article, §31-105, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Maryland Health Benefit Exchange” has the meaning set forth under Insurance Article, §31-101(e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Office” means the Office of Administrative Hearings.</text> </paragraph> <paragraph num="(9)"> <text>“Person” has the meaning set forth under COMAR 28.02.01.02B(12).</text> </paragraph> <paragraph num="(10)"> <text>“Presiding officer” means the Board member selected by the board to conduct, manage, and oversee the hearing and the administrative matters of an appeal on behalf of the Board of Trustees of the Maryland Health Benefit Exchange.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Request for Hearing—In General."> <paragraph num="A."> <text>Scope. This regulation applies to all requests for a hearing permitted under Regulation .01B of this chapter.</text> </paragraph> <paragraph num="B."> <text>Except as provided in §D of this regulation, a person aggrieved may request a hearing by submitting a written statement to the Board Chair, signed by the requesting person and containing the following information:</text> <paragraph num="(1)"> <text>The action or nonaction of the Exchange causing the person requesting the hearing to be aggrieved;</text> </paragraph> <paragraph num="(2)"> <text>The facts related to the incident or incidents about which the person requests the Board to act or not to act; and</text> </paragraph> <paragraph num="(3)"> <text>The ultimate relief requested.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Hearing Requests—Timing.</text> <paragraph num="(1)"> <text>Except as provided in §D of this regulation, a request for a hearing shall be received by the Board within 30 calendar days of the date of the letter notifying the party of the Exchange’s action, intention to act, or failure to act.</text> </paragraph> <paragraph num="(2)"> <text>In calculating the 30-day period, the date of the letter notifying the party of the Exchange's action, intention to act, or failure to act is not included.</text> </paragraph> <paragraph num="(3)"> <text>The end of a day is considered to be 11:59 p.m. Eastern Time.</text> </paragraph> <paragraph num="(4)"> <text>The last day of the 30-day period is included unless it is a Saturday, Sunday, legal holiday, or day that the Maryland Health Benefit Exchange is closed for a part of the day.</text> </paragraph> <paragraph num="(5)"> <text>If the last day of the 30-day period is a Saturday, Sunday, legal holiday, or a day that the Maryland Health Benefit Exchange is closed for a part of the day, the 30-day period runs until the end of the next day which is not a Saturday, Sunday, legal holiday, or day that the Maryland Health Benefit Exchange is closed for a part of the day.</text> </paragraph> <paragraph num="(6)"> <text>Intermediate Saturdays, Sundays, legal holidays, and days that the Maryland Health Benefit Exchange is closed for a part of the day shall be counted toward the 30-day period.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Request for Hearing—Appeals of Procurement Bid Protests.</text> <paragraph num="(1)"> <text>A person aggrieved may request a hearing under this subparagraph by submitting a written statement to the Board Chair postmarked within 10 calendar days after issuance of the decision resolving the protest, and containing the following information:</text> <paragraph num="(a)"> <text>Each ground on which the protestor claims that the protest was resolved in error; and</text> </paragraph> <paragraph num="(b)"> <text>A copy of the initial protest and the decision of the Executive Director or designated procurement officer resolving the protest</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Ten copies of all required materials shall be submitted.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Except as provided in §F of this regulation, upon receipt of a proper request, the Board shall grant a hearing unless, in viewing the facts set forth by the person making the request, in the light most favorable to that person, the Board determines that:</text> <paragraph num="(1)"> <text>The Board has no authority to take action;</text> </paragraph> <paragraph num="(2)"> <text>The request does not contain the information required by this chapter;</text> </paragraph> <paragraph num="(3)"> <text>The request is untimely; or</text> </paragraph> <paragraph num="(4)"> <text>The request is moot.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For appeals of procurement bid protests, instead of granting a hearing, the Board may:</text> <paragraph num="(1)"> <text>Resolve the appeal without granting a hearing;</text> </paragraph> <paragraph num="(2)"> <text>Elect to refer the matter for a hearing and recommended decision to a single member of the Board; or</text> </paragraph> <paragraph num="(3)"> <text>Elect to refer the matter for a hearing and recommended decision to a panel consisting of two or more members of the Board.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Service of Notices, Decisions, Orders, and Other Documents."> <paragraph num="A."> <text>The Board Secretary shall provide notice of a hearing pursuant to State Government Article, §10-209, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The notice shall state:</text> <paragraph num="(1)"> <text>The date, time, place, and nature of the hearing;</text> </paragraph> <paragraph num="(2)"> <text>The right to call witnesses and submit documents or other evidence under State Government Article, §10-213(f), Annotated Code of Maryland;</text> </paragraph> <paragraph num="(3)"> <text>Any applicable right to request subpoenas for witnesses and evidence and specify the costs, if any, associated with such a request;</text> </paragraph> <paragraph num="(4)"> <text>That a copy of the hearing procedure is available on request and specify the costs associated with such a request;</text> </paragraph> <paragraph num="(5)"> <text>Any right or restriction pertaining to representation;</text> </paragraph> <paragraph num="(6)"> <text>That failure to appear for the scheduled hearing may result in an adverse action against the party; and</text> </paragraph> <paragraph num="(7)"> <text>That, unless otherwise prohibited by law, the parties may agree to the evidence and waive their right to appear at the hearing.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notices, decisions, orders, and other documents issued by the Board may be served on a person by:</text> <paragraph num="(1)"> <text>Personal delivery to the person;</text> </paragraph> <paragraph num="(2)"> <text>Mailing a copy of the document, first class, postage prepaid, to the person's address of record on file with the Exchange;</text> </paragraph> <paragraph num="(3)"> <text>Mailing a copy of the document, first class, postage prepaid, to the person's last known address if different from the person's address of record on file with the Exchange;</text> </paragraph> <paragraph num="(4)"> <text>Mailing a copy of the document by certified mail to the person's address of record on file with the Exchange or last known address; or</text> </paragraph> <paragraph num="(5)"> <text>Delivering or mailing a copy of the document, first class, postage prepaid, to the person's attorney, if the person is represented by counsel.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Notice of a hearing is sufficient if the initial notice of a hearing is sent by regular mail to a party at the party's business and resident addresses, as applicable, on file with the Exchange.</text> </paragraph> <paragraph num="E."> <text>A hearing may be rescheduled if there is satisfactory showing that the notice was sent not less than 30 calendar days before the hearing, or upon agreement of all parties.</text> </paragraph> <paragraph num="F."> <text>The Board shall maintain a record stating:</text> <paragraph num="(1)"> <text>To whom the initial notice was sent;</text> </paragraph> <paragraph num="(2)"> <text>The address to which the initial notice was sent;</text> </paragraph> <paragraph num="(3)"> <text>The date the initial notice was sent;</text> </paragraph> <paragraph num="(4)"> <text>The manner of service; and</text> </paragraph> <paragraph num="(5)"> <text>The name of the person who sent the initial notice.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Discovery."> <paragraph num="A."> <text>By written request served on other parties and filed with the presiding officer not later than 30 calendar days before the scheduled hearing, a party may require any other party to produce, within 15 calendar days, for inspection or copying, any file, memorandum, correspondence, document, object, or tangible item:</text> <paragraph num="(1)"> <text>Relevant to the subject matter of the case; and</text> </paragraph> <paragraph num="(2)"> <text>Not privileged.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unless provided by agreement of the parties, no other discovery procedure is allowed.</text> </paragraph> <paragraph num="C."> <text>Copies.</text> <paragraph num="(1)"> <text>Copies of requested documents and records shall be made at the expense of the party making the request.</text> </paragraph> <paragraph num="(2)"> <text>The charge for copies of requested documents and records may be waived by the custodian of the documents in accordance with State Government Article, §10-621(e), Annotated Code of Maryland, or other applicable law.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Objection to Production.</text> <paragraph num="(1)"> <text>A party may object to the production of a file, memorandum, correspondence, document, object, or tangible item by filing a motion to quash discovery or for other relief.</text> </paragraph> <paragraph num="(2)"> <text>The presiding officer, for cause shown, may issue any order that justice requires to protect the party from annoyance, embarrassment, oppression, or undue burden or expense.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A party who has responded to a request for production and who obtains or discovers, before the hearing, additional files, memoranda, correspondence, documents, objects, or tangible things that are relevant to the request for production shall supplement the response to the request promptly.</text> </paragraph> <paragraph num="F."> <text>If a party fails to comply with a request for production, the presiding officer, either on the presiding officer's own motion or by motion of the party requesting the production, may issue an order:</text> <paragraph num="(1)"> <text>Refusing to allow the party to support or oppose designated claims or defenses;</text> </paragraph> <paragraph num="(2)"> <text>Prohibiting the party from introducing designated matters into evidence;</text> </paragraph> <paragraph num="(3)"> <text>Striking any allegations or charges made by the party failing to produce;</text> </paragraph> <paragraph num="(4)"> <text>Staying further proceedings until the discovery is provided; or</text> </paragraph> <paragraph num="(5)"> <text>Dismissing the action or any part of it.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Subpoenas."> <paragraph num="A."> <text>On request of a party, the presiding officer may issue subpoenas requiring the attendance and testimony of witnesses and the production, at the hearing, of any tangible items in the possession or under the control of a witness.</text> </paragraph> <paragraph num="B."> <text>Subpoena Requests.</text> <paragraph num="(1)"> <text>A request for a subpoena shall:</text> <paragraph num="(a)"> <text>Be made, in writing, to the Board Chair; and</text> </paragraph> <paragraph num="(b)"> <text>Specify the:</text> <paragraph num="(i)"> <text>Name and full address of the person to be subpoenaed; and</text> </paragraph> <paragraph num="(ii)"> <text>Name, full address, and telephone number of the party requesting the subpoena.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>A subpoena that requests the production of tangible items, books, papers, or other documents shall describe those items with particularity.</text> </paragraph> <paragraph num="(3)"> <text>A subpoena request need not be served on all parties.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Service of Subpoenas.</text> <paragraph num="(1)"> <text>Except as provided in §C(2) of this regulation, subpoenas shall be served by hand delivery by an individual 18 years old or older who is not a party to the proceeding. For subpoenas requested 15 calendar days or less before the scheduled hearing, the requester shall provide service.</text> </paragraph> <paragraph num="(2)"> <text>In a case where the individual to be served resides outside Maryland, the subpoena may be served by certified mail.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Return of service shall be made by:</text> <paragraph num="(1)"> <text>Affidavit, if hand delivered; or</text> </paragraph> <paragraph num="(2)"> <text>Return receipt, if mailed.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A person may object to a subpoena by filing a motion to quash or for other relief.</text> </paragraph> <paragraph num="F."> <text>If a request for a subpoena was filed less than 15 calendar days before the hearing date, the presiding officer may refuse to postpone the hearing based on the party's inability to serve the subpoena.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Conduct of Hearing—In General."> <paragraph num="A."> <text>A hearing conducted under this chapter shall be audio recorded and presided over by a quorum of the Board.</text> </paragraph> <paragraph num="B."> <text>The presiding officer will determine whether a hearing will be open to the public, unless otherwise required by law.</text> </paragraph> <paragraph num="C."> <text>Parties to Proceeding.</text> <paragraph num="(1)"> <text>The necessary parties to a contested case proceeding or other matter for which a hearing is being held are:</text> <paragraph num="(a)"> <text>The Exchange; and</text> </paragraph> <paragraph num="(b)"> <text>A person who requests a hearing due to being aggrieved by:</text> <paragraph num="(i)"> <text>A determination made by the Exchange; or</text> </paragraph> <paragraph num="(ii)"> <text>Any other act of or failure to act by the Exchange, involving an authorization or a certification issued by the Exchange.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Not later than 15 calendar days before the earlier of the prehearing conference or the hearing date, a person who is not a necessary party under §C(1) of this regulation may seek to become a party by intervention by filing a motion to intervene, which shall state:</text> <paragraph num="(a)"> <text>The basis for considering intervention to be timely; and</text> </paragraph> <paragraph num="(b)"> <text>How the financial interests of the person will be directly and immediately affected by an order of the Board resulting from the hearing.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>The presiding officer shall conduct the hearing and may allow the case to proceed in a manner necessary to ensure the fair resolution of the issues, including, but not limited to, placing reasonable limitations on the number of witnesses a party may call and the exclusion of evidence which is repetitive, irrelevant, immaterial, or otherwise not probative. The Maryland Rules of Civil Procedure may be used as a guide for resolving procedural issues regarding the conduct of the hearing.</text> </paragraph> <paragraph num="E."> <text>The presiding officer shall rule on all procedural matters, including motions, objections, and offers of proof.</text> </paragraph> <paragraph num="F."> <text>The Board may designate an attorney to represent the Exchange. Once the hearing is closed by the presiding officer, the individual presenting the case on behalf of the Exchange may not have a further role in the decision process of the Exchange.</text> </paragraph> <paragraph num="G."> <text>Motion for Summary Decision.</text> <paragraph num="(1)"> <text>A party may move for summary decision at any time on any appropriate issue in the case.</text> </paragraph> <paragraph num="(2)"> <text>The Board may grant a final summary decision if the Board finds that:</text> <paragraph num="(a)"> <text>There is no genuine issue of material fact; and</text> </paragraph> <paragraph num="(b)"> <text>A party is entitled to prevail as a matter of law.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Motion to Dismiss. Upon motion, the Board may issue a final decision dismissing an initial pleading which fails to state a claim for which relief may be granted.</text> </paragraph> <paragraph num="I."> <text>Motion for Judgment.</text> <paragraph num="(1)"> <text>A party may move for judgment on any or all of the issues in any action at the close of the evidence offered by an opposing party. The moving party shall state all reasons why the motion should be granted. No objection to the motion for judgment shall be necessary. A party does not waive the right to make the motion by introducing evidence during the presentation of any opposing party's case.</text> </paragraph> <paragraph num="(2)"> <text>When a party moves for judgment at the close of the evidence offered by an opposing party, the Board may:</text> <paragraph num="(a)"> <text>Proceed to determine the facts and to render judgment against an opposing party; or</text> </paragraph> <paragraph num="(b)"> <text>Decline to render judgment until the close of all evidence.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A party who moves for judgment at the close of the evidence offered by an opposing party may offer evidence if the motion is not granted, without having reserved the right to do so and to the same extent as if the motion had not been made. In so doing, the party withdraws the motion.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Postponements."> <paragraph num="A."> <text>At the discretion of the presiding officer, a hearing may be postponed if a written request for postponement is filed with the presiding officer not later than 15 calendar days before the date of the hearing.</text> </paragraph> <paragraph num="B."> <text>A hearing may not be postponed, except for good cause, when the request for postponement is filed within 15 calendar days of the date of the hearing.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Default Orders."> <paragraph num="A."> <text>The presiding officer may issue a default order against a party other than the Exchange that, after receiving proper notice, fails to appear at a hearing if:</text> <paragraph num="(1)"> <text>Notice is issued by the Board, and the party failing to appear is the person against whom the notice was issued; or</text> </paragraph> <paragraph num="(2)"> <text>In any other contested case hearing, the party failing to appear is the person that requested the hearing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>In a hearing arising out of a notice or determination issued by the Exchange, the default order shall:</text> <paragraph num="(1)"> <text>State the facts supporting the finding of proper notice to the person against whom the notice or determination was issued;</text> </paragraph> <paragraph num="(2)"> <text>Adopt the facts and violations of law as alleged by the Exchange in its notice or determination as if by admission of the person against whom the charging document, order, or notice was issued; and</text> </paragraph> <paragraph num="(3)"> <text>Adopt the sanction requested by the Exchange.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The Board Secretary shall serve the default order directly on the parties by certified mail.</text> </paragraph> <paragraph num="D."> <text>Within 15 calendar days after service of a default order, the party in default may submit to the Board a written motion:</text> <paragraph num="(1)"> <text>Requesting that the default order be vacated or modified; and</text> </paragraph> <paragraph num="(2)"> <text>Stating the grounds for the request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If the presiding officer finds that there is:</text> <paragraph num="(1)"> <text>Good cause to excuse the default, the presiding officer may:</text> <paragraph num="(a)"> <text>Vacate or modify the default order; and</text> </paragraph> <paragraph num="(b)"> <text>Schedule the case for further appropriate proceedings; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>No good cause to excuse the default, the presiding officer shall:</text> <paragraph num="(a)"> <text>Deny the motion; and</text> </paragraph> <paragraph num="(b)"> <text>Affirm the default order as the final order.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Decisions."> <paragraph num="A."> <text>The presiding officer shall:</text> <paragraph num="(1)"> <text>Sign the final order following a hearing; and</text> </paragraph> <paragraph num="(2)"> <text>File a copy of the final order with the Exchange and serve a copy on all parties to the hearing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The final order is effective when issued, unless a different date is specified in the decision.</text> </paragraph> <paragraph num="C."> <text>The decision of the Board is the final administrative decision of the case.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Mistake or Error in the Final Order."> <text>The Board may correct an order if, upon review, the final order was issued as a result of fraud, mistake, or inadvertence or contains a clerical error.</text> </regulation> <regulation prefix="Regulation" num=".12" heading="Judicial Review."> <text>A party adversely affected by a final decision of the Board may obtain judicial review of the decision as provided by law.</text> </regulation> <annotations> <annotation type="Authority">Insurance Article, §§31-106(c)(1)(iv), 31-112, and 31-113; State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: October 16, 2023 (50:20 Md. R. 889)</annotation> </annotations> </chapter> <chapter num="21" heading="State-Based Health Insurance Subsidies Program"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter sets forth the structure, implementation, and eligibility standards for the State-Based Health Insurance Subsidies Program, as required under Insurance Article, §31-117, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>If the advance premium tax credits under 26 U.S.C. §36B(b)(3)(A)(iii) are extended for calendar years 2026 and 2027, the subsidy under this chapter shall be abrogated and of no further force and effect.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Enrollee” means a qualified individual who is enrolled in a qualified health plan through the Individual Exchange.</text> </paragraph> <paragraph num="(2)"> <text>“Essential health benefit” has the meaning set forth in Insurance Article, §31-116(a), Annotated Code of Maryland, and 42 U.S.C. §18022(b).</text> </paragraph> <paragraph num="(3)"> <text>“Federal poverty level (FPL)” means the most recently published federal poverty level guidelines, updated periodically in the Federal Register by the Secretary of HHS as set forth in 42 U.S.C. §9902(2), as of the first day of the open enrollment period for qualified health plans (QHPs) offered through the Individual Exchange for a calendar year.</text> </paragraph> <paragraph num="(4)"> <text>“Program” means the State-Based Health Insurance Subsidies Program.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Eligibility Requirements for Subsidies Through the Program."> <paragraph num="A."> <text>An enrollee is eligible to receive subsidies from the Program during a month if:</text> <paragraph num="(1)"> <text>The enrollee is a member of a tax filer’s tax household and the tax filer has met the eligibility requirements for APTC in accordance with the requirements in COMAR 14.35.07.08A(2), B— C, E, F and H; and</text> </paragraph> <paragraph num="(2)"> <text>The enrollee experiences an increase in the applicable percentages established under 26 U.S.C. §36B(B)(3)(A)(iii) for premiums based on household income in calendar years 2026 and 2027, as compared to the applicable percentages in place for calendar year 2025.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The subsidy shall be automatically applied to eligible enrollees’ premiums.</text> </paragraph> <paragraph num="C."> <text>In any calendar year of the program:</text> <paragraph num="(1)"> <text>The Board may limit the availability of subsidies, regardless of eligibility, if the costs of the program are projected to exceed the budgeted allowance for that calendar year;</text> </paragraph> <paragraph num="(2)"> <text>The limit described in §C(1) of this regulation may take the form of:</text> <paragraph num="(a)"> <text>A limit on the number of enrollees eligible for the subsidy;</text> </paragraph> <paragraph num="(b)"> <text>A limit on increases in subsidies during a plan year for enrollees after enrollment; or</text> </paragraph> <paragraph num="(c)"> <text>Any other limit or combination of limits as the Board deems appropriate;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Any limit on the availability of subsidies for enrollees in the program shall be applied uniformly to all enrollees after the effective date of the Board’s decision; and</text> </paragraph> <paragraph num="(4)"> <text>The Exchange shall monitor the data outlined in Regulation .05 of this chapter to determine, in consultation with the Maryland Insurance Administration, the recommended limits to the Program.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Effective Dates for Changes in Subsidy Eligibility.</text> <paragraph num="(1)"> <text>Except as otherwise specified under this regulation, changes in eligibility for subsidies determined by the Individual Exchange are effective the first day of the month following the date on which the determination is made.</text> </paragraph> <paragraph num="(2)"> <text>When an applicant is determined newly eligible for Medicaid or MCHP, the applicant shall be ineligible for subsidies beginning the first of the month after the enrollee is determined newly eligible for Medicaid or MCHP.</text> </paragraph> <paragraph num="(3)"> <text>When an applicant is eligible for a special enrollment period under COMAR 14.35.07.12—.19, the applicant or enrollee shall be determined eligible for subsidies as of the applicable effective date specified for each special enrollment period under COMAR 14.35.07.12—.19.</text> </paragraph> <paragraph num="(4)"> <text>When an enrollee’s enrollment is terminated by the enrollee as set forth in 45 CFR §155.430(b)(1) or terminated by the Exchange under 45 CFR §155.430(b)(2)(i)—(vii) the subsidy shall be terminated in accordance with the applicable effective date of the termination set forth in 45 CFR §155.430(d).</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Calculation of Subsidies Under the Program."> <paragraph num="A."> <text>The subsidy may not exceed the enrollee’s premium amount.</text> </paragraph> <paragraph num="B."> <text>The subsidy shall be applied to the premium balance remaining after application of the Advance Premium Tax Credit.</text> </paragraph> <paragraph num="C."> <text>Basis of Calculation.</text> <paragraph num="(1)"> <text>For enrollees with a greater than 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall be calculated based on, and applied only to, the portion of premium allocated to essential health benefits.</text> </paragraph> <paragraph num="(2)"> <text>For enrollees with a 0 percent premium contribution based on the payment parameters set by the Board, the subsidy shall also be applied to nonessential health benefits so that the enrollee’s total premium responsibility is equal to $0.</text> </paragraph> </paragraph> <paragraph num="D."> <text>For plan years 2026 and 2027, the Board shall set the payment parameters for each plan year of the Program before December 31 preceding the applicable plan year.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Exchange Data Collection, Reporting, and Maintenance."> <paragraph num="A."> <text>The Exchange shall track data on the Program including:</text> <paragraph num="(1)"> <text>On a monthly basis, or more frequently as required to appropriately monitor enrollment and spending under the program, the average number of enrollees receiving subsidies under the Program;</text> </paragraph> <paragraph num="(2)"> <text>On a monthly basis, or more frequently as required to appropriately monitor enrollment and spending under the program, the average subsidy amount received by enrollees under the Program; and</text> </paragraph> <paragraph num="(3)"> <text>The impact the Program has on rates in the individual insurance market.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Information tracked in §A(1) and (2) of this regulation shall be posted on the website of the Individual Exchange and included in the Annual Report required under Insurance Article, §31-119(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The Individual Exchange shall maintain documents and records relating to the Program, whether paper, electronic, or in other media, for each benefit year for at least 10 years.</text> </paragraph> <paragraph num="D."> <text>The Individual Exchange shall ensure that the collection of personally identifiable information is limited to information reasonably necessary for use in the calculation of subsidies. Any use and disclosure of personally identifiable information shall be limited to those purposes for which the personally identifiable information was collected, including for purposes of data validation.</text> </paragraph> <paragraph num="E."> <text>The Individual Exchange shall maintain standards that provide administrative, physical, and technical safeguards for the personally identifiable information consistent with applicable State and federal standards.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Disbursement of Subsidies."> <paragraph num="A."> <text>The Individual Exchange shall transmit subsidies directly to the carrier with whom the recipient is enrolled, to be applied to the recipient’s premium.</text> </paragraph> <paragraph num="B."> <text>A carrier that receives notice from the Individual Exchange that an individual enrolled in the carrier’s QHP is eligible for subsidies shall:</text> <paragraph num="(1)"> <text>Reduce the portion of the premium charged to or for the individual for the applicable month or months by the amount of the subsidy;</text> </paragraph> <paragraph num="(2)"> <text>Notify the Exchange of the reduction in the portion of the premium charged to the individual in accordance with 45 CFR §156.265(g); and</text> </paragraph> <paragraph num="(3)"> <text>Include with each billing statement, as applicable, to or for the individual the amount of the subsidy for the applicable month or months, and the remaining premium owed.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Failure to Timely Report Effectuations.</text> <paragraph num="(1)"> <text>The Individual Exchange requires carriers to send 834 effectuation files to the Individual Exchange in a timely manner, and not more than 90 days after receiving an 834 enrollment file for a recipient.</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding §A of this regulation, if a carrier sends an 834 effectuation file to the Individual Exchange more than 90 days after the coverage start date on the 834 enrollment file sent by the Individual Exchange to the carrier, the Individual Exchange will transmit subsidies to a carrier for a maximum of 3 months retroactively, including the month in which the effectuation file is transmitted to the Individual Exchange as one of the 3 retroactive months.</text> </paragraph> <paragraph num="(3)"> <text>An individual enrolled in a carrier’s QHP shall be held harmless for any portion of premium not transmitted to the carrier under § C(2) of this regulation.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Refunds.</text> <paragraph num="(1)"> <text>If a carrier discovers that it did not reduce the portion of the premium charged to or for an enrollee for the applicable month or months by the amount of the subsidy in accordance with §B(1) of this regulation, the carrier shall notify the enrollee of the improper reduction within 45 calendar days of the carrier’s discovery of the improper reduction and refund any excess premium paid by or for the enrollee.</text> </paragraph> <paragraph num="(2)"> <text>Unless a refund is requested by or for the enrollee, the carrier shall, within 45 calendar days of discovery of the error, either apply the excess premium paid by or for the enrollee to the enrollee’s portion of the premium or refund the amount directly.</text> </paragraph> <paragraph num="(3)"> <text>If any excess premium remains after application of premium as described in §C(2) of this regulation:</text> <paragraph num="(a)"> <text>The carrier shall apply the excess premium to the enrollee’s portion of the premium for each subsequent month for the remainder of the period of enrollment or benefit year until the excess is fully applied or refund the remaining amount directly; and</text> </paragraph> <paragraph num="(b)"> <text>At the end of the period of enrollment or benefit year, the carrier shall refund any excess premium within 45 calendar days of the end of the period of enrollment or benefit year, whichever comes first.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If a refund is requested by or for the enrollee, the refund shall be provided within 45 calendar days of the date of the request.</text> </paragraph> </paragraph> <paragraph num="E."> <text>A carrier may not refuse to commence coverage under a policy or terminate coverage on account of any delay of advance payment of a subsidy on behalf of an enrollee if the carrier has been notified by the Exchange that the carrier will receive such advance payment.</text> </paragraph> <paragraph num="F."> <text>Carriers shall participate in the payment and reconciliation process established by the Individual Exchange to ensure that appropriate payments are received by the carriers and that excess payments are returned by the carriers to the Individual Exchange.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Document Retention and Audits."> <paragraph num="A."> <text>Carriers shall maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the disbursement of subsidies made pursuant to Regulations .03 and .06 of this chapter for a period of at least 10 years and shall timely make those documents and records available upon request by the Board or its designee to any such entity for purposes of verification, investigation, audit, or other review of subsidy disbursement.</text> </paragraph> <paragraph num="B."> <text>Audits.</text> <paragraph num="(1)"> <text>The Individual Exchange may require a carrier offering subsidies through the program to participate in an audit to assess its compliance with the requirements of this chapter. For any audit under this section, the Individual Exchange shall determine whether the audit shall be conducted by:</text> <paragraph num="(a)"> <text>The Individual Exchange,</text> </paragraph> <paragraph num="(b)"> <text>A designee of the Individual Exchange; or</text> </paragraph> <paragraph num="(c)"> <text>An independent, third-party auditor compensated by the carrier.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Timeliness of Audit Reports.</text> <paragraph num="(a)"> <text>If the audit is conducted by an independent, third-party auditor as specified in §B(1)(c) of this regulation, the carrier must obtain the results no later than 6 months after an audit is requested by the Individual Exchange.</text> </paragraph> <paragraph num="(b)"> <text>If the audit is conducted by an independent, third-party auditor as specified in §B(1)(c) of this regulation, the carrier shall send the audit report to the Individual Exchange within 15 days of receipt of the audit report by the carrier.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The carrier shall ensure that its relevant contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results in a finding of material weakness or significant deficiency with respect to compliance with any requirement of these regulations, the carrier shall complete all of the following:</text> <paragraph num="(a)"> <text>Within 30 calendar days of the issuance of the final audit report, provide a written corrective action plan to the Individual Exchange for approval;</text> </paragraph> <paragraph num="(b)"> <text>Implement the corrective action plan; and</text> </paragraph> <paragraph num="(c)"> <text>Provide to the Individual Exchange written documentation of the corrective actions once taken.</text> </paragraph> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Insurance Article §31-106(c)(1)(iv); Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .01 — .07 adopted as an emergency provision effective July 11, 2025 (52:16 Md. R. 845); adopted permanently effective October 13, 2025 (52:20 Md. R. 1003)</annotation> </annotations> </chapter> </subtitle> <subtitle num="36" heading="Maryland Longitudinal Data System Center"> <chapter num="01" heading="Inspection and Copying of Public Records"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter sets forth procedures for the disclosure, inspection, or copying of public records maintained by the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="B."> <text>This chapter does not apply to aggregate data requests. The procedures for aggregate data requests by the public from data maintained by the Maryland Longitudinal Data System Center are set forth in COMAR 14.36.04.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Policy."> <paragraph num="A."> <text>It is the policy of the Maryland Longitudinal Data System Center to facilitate public access to the Center’s public records when access is authorized by law.</text> </paragraph> <paragraph num="B."> <text>The Center’s policy is to make all public records easily accessible on the agency’s website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Center” means the Maryland Longitudinal Data System Center, its advisory boards, its committees, any other public bodies under the authority and acting on behalf of the Maryland Longitudinal Data System Center, and any employees, agents, or contractors acting on behalf of the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(4)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Data partner” means a State agency, an industry certifier, or other entity that originally collects student and workforce data and provides that data to the Center under Education Article, §27-707, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the Executive Director of the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(7)"> <text>“Governing Board” has the meaning stated in Education Article, §24-701, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Person in interest” means:</text> <paragraph num="(a)"> <text>A person or governmental unit that is the subject of a public record;</text> </paragraph> <paragraph num="(b)"> <text>An authorized designee of the person or governmental unit that is the subject of a public record; or</text> </paragraph> <paragraph num="(c)"> <text>If the person has a legal disability, a parent or legal representative of the person that is the subject of a public record.</text> </paragraph> </paragraph> <paragraph num="(10)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Working day” means a day other than Saturday, Sunday, or a State holiday or service reduction day.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Official Custodian."> <paragraph num="A."> <text>The Executive Director shall designate an official custodian of public records for the Center.</text> </paragraph> <paragraph num="B."> <text>The website for the Center shall provide the name and contact information for the custodian of public records.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Who May Request Public Records."> <text>Any person may request to inspect or copy public records of the Center.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Necessity for Written Request."> <paragraph num="A."> <text>Inspection.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this chapter, the custodian shall make public records of the Center available for inspection by an applicant without demanding a written request.</text> </paragraph> <paragraph num="(2)"> <text>The custodian shall require a written request if the custodian reasonably believes that:</text> <paragraph num="(a)"> <text>The Act or any other law may prohibit the disclosure of the public record to the applicant; or</text> </paragraph> <paragraph num="(b)"> <text>A written request will materially assist the Center in responding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Copies. If the applicant requests a copy of any public record of the Center, the custodian may require a written request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Contents of Written Request."> <text>A written request shall:</text> <paragraph num="A."> <text>Contain the applicant’s name and address;</text> </paragraph> <paragraph num="B."> <text>Be signed by the applicant; and</text> </paragraph> <paragraph num="C."> <text>Reasonably identify, by brief description, the public record sought.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Addressee."> <text>A request to inspect or copy a public record shall be addressed to the custodian of the record. If the custodian is unknown, the request may be addressed to the Executive Director.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Response to Request."> <paragraph num="A."> <text>If the custodian decides to grant a request for inspection, the custodian shall produce the public record for inspection, without unreasonable delay, as follows:</text> <paragraph num="(1)"> <text>Immediately for records designated by the Center for inspection, as set forth in §B of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>If additional time is needed to retrieve the public record and conduct any necessary review, within a reasonable time period, not to exceed 30 days after the date of the request.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The custodian shall designate the following public records for immediate inspection:</text> <paragraph num="(1)"> <text>Bylaws of the Governing Board;</text> </paragraph> <paragraph num="(2)"> <text>Minutes of the Governing Board; and</text> </paragraph> <paragraph num="(3)"> <text>Data sharing agreements entered into by the Center and data partners.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the custodian decides to deny a request for inspection, the custodian shall:</text> <paragraph num="(1)"> <text>Do so within 30 days after the request; and</text> </paragraph> <paragraph num="(2)"> <text>Immediately notify the applicant of the denial.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a request is denied, the custodian shall provide the applicant, at the time of the denial or within 10 working days, a written statement that gives:</text> <paragraph num="(1)"> <text>The reason for the denial;</text> </paragraph> <paragraph num="(2)"> <text>The legal authority for the denial; and</text> </paragraph> <paragraph num="(3)"> <text>Notice of the remedies available for review of the denial.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a requested public record is not in the custody or control of the custodian to whom application is made, the custodian shall, within 10 working days after receipt of the request, notify the applicant:</text> <paragraph num="(1)"> <text>That the custodian does not have custody or control of the requested public record; and</text> </paragraph> <paragraph num="(2)"> <text>If the custodian knows:</text> <paragraph num="(a)"> <text>The name of the custodian of the public record; and</text> </paragraph> <paragraph num="(b)"> <text>The location or possible location of the public record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>With the consent of the applicant, any time limit imposed by §§A—C of this regulation may be extended for an additional period of up to 30 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Notice to Person Possibly Affected by Disclosure."> <paragraph num="A."> <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Center to any person who, in the judgment of the custodian, could be adversely affected by disclosure of the public record.</text> </paragraph> <paragraph num="B."> <text>The custodian may consider the views of the possibly affected person before deciding whether to disclose the public record to an applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Public Record Temporarily Unavailable."> <text>If a requested public record of the Center is not immediately available for inspection or copying, the custodian shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not immediately available; and</text> </paragraph> <paragraph num="B."> <text>Schedule a date within a reasonable time for inspection or copying.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Public Record Destroyed or Lost."> <text>If the custodian knows that a requested public record of the Center has been destroyed or lost, the custodian shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not available; and</text> </paragraph> <paragraph num="B."> <text>Explain the reasons why the public record cannot be produced.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Review of Denial."> <paragraph num="A."> <text>If the custodian denies a request to inspect or copy a public record of the Center, the applicant may file an action for judicial enforcement under General Provisions Article, §4-362, Annotated Code of Maryland, without pursuing the remedies set forth in §§B and C of this regulation.</text> </paragraph> <paragraph num="B."> <text>If the custodian charges a fee of more than $350 under Regulation .15 of this chapter, the applicant may, within 90 days after the date the fee is imposed, file a written complaint with the State Public Information Act Compliance Board under General Provisions Article, §4-1A-05(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The applicant and the custodian each may contact the Public Access Ombudsman to resolve, under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, a dispute relating to requests for public records.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>Denial Pending Court Order.</text> <paragraph num="(1)"> <text>If, in the opinion of the custodian, disclosure of a public record of the Center otherwise subject to disclosure under the Act would do substantial injury to the public interest, the custodian may temporarily deny the request to obtain a court order allowing nondisclosure.</text> </paragraph> <paragraph num="(2)"> <text>A temporary denial shall be in writing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Circuit Court Review.</text> <paragraph num="(1)"> <text>Within 10 working days after the denial, the custodian shall apply to the appropriate circuit court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of the custodian’s complaint, on behalf of the Center, shall be served on the applicant in the manner provided for service of process under the Maryland Rules.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Fees."> <paragraph num="A."> <text>Except as provided in §§B and C of this regulation, the fee schedule for responding to requests of public records of the Center is as follows:</text> <paragraph num="(1)"> <text>For each copy made by a photocopying machine within the Center, 25 cents per page;</text> </paragraph> <paragraph num="(2)"> <text>For each copy made other than by a photocopying machine within the Center, the actual cost of reproduction;</text> </paragraph> <paragraph num="(3)"> <text>For certification as a true copy of a public record, an additional fee of $1 per page or, if appropriate, per item; and</text> </paragraph> <paragraph num="(4)"> <text>For electronic records provided in an electronic format, no fee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Minimum Fee. A charge may not be made if the total fee is $1 or less.</text> </paragraph> <paragraph num="C."> <text>If the fee for copies or certified copies of any public record of the Center is specifically set by a law other than the Act or this regulation, the custodian shall charge the prescribed fee.</text> </paragraph> <paragraph num="D."> <text>If the custodian cannot copy a public record within the Center, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Center. The custodian shall:</text> <paragraph num="(1)"> <text>Collect from the applicant a fee to cover the actual cost of reproduction; or</text> </paragraph> <paragraph num="(2)"> <text>Direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Before copying a public record of the Center, the custodian shall estimate the cost of reproduction and either:</text> <paragraph num="(1)"> <text>Obtain the agreement of the applicant to pay the cost; or</text> </paragraph> <paragraph num="(2)"> <text>Require prepayment of the cost.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Except as provided in §G of this regulation the custodian may charge a reasonable fee for time that an official or employee of the Center spends to:</text> <paragraph num="(1)"> <text>Search for requested public records; or</text> </paragraph> <paragraph num="(2)"> <text>Prepare public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The custodian may not charge a search or preparation fee for the first 2 hours that an official or employee of the Center spends to respond to a request for public records.</text> </paragraph> <paragraph num="H."> <text>The Center may charge a reasonable hourly fee based upon the actual cost to the Center for staff services for additional time required to search for or prepare public records for inspection or copying.</text> </paragraph> <paragraph num="I."> <text>Waiver or Reduction of Fee.</text> <paragraph num="(1)"> <text>The custodian may waive or reduce any fee under this regulation if:</text> <paragraph num="(a)"> <text>The applicant requests a waiver; and</text> </paragraph> <paragraph num="(b)"> <text>The custodian determines that the waiver or reduction is in the public interest.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In making a decision under this section, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text> </paragraph> </paragraph> <paragraph num="J."> <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or to a third party, the custodian may charge the applicant for the actual cost of postage or delivery, and the cost of any electronic media used to provide the copies.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Time and Place of Inspection."> <paragraph num="A."> <text>An applicant may inspect any public record of the Center that the applicant is entitled to inspect, by appointment, during the normal working hours of the Center.</text> </paragraph> <paragraph num="B."> <text>The inspection shall occur where the public record is located, unless the custodian, after taking into account the applicant’s expressed wish, determines that another place is more suitable and convenient.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§24-703 and 24-706; General Provisions Article, Title 4; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 19, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective February 26, 2018 (45:4 Md. R. 207); October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective February 26, 2018 (45:4 Md. R. 207)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13A amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15A amended October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16A amended October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> <chapter num="02" heading="Corrections of Public Record"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets out procedures under which a person in interest may request the correction or amendment of public records of the Maryland Longitudinal Data System Center.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(2)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Person in interest” has the meaning stated in General Provisions Article, §4-101(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(g), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May Request."> <text>A person in interest may request that the Center correct or amend any public record that:</text> <paragraph num="A."> <text>The Center created and maintains; and</text> </paragraph> <paragraph num="B."> <text>The person in interest is authorized to inspect.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Contents of Request."> <paragraph num="A."> <text>A person in interest shall make a request to correct or amend a public record in writing.</text> </paragraph> <paragraph num="B."> <text>The request shall:</text> <paragraph num="(1)"> <text>Identify the public record to be corrected or amended;</text> </paragraph> <paragraph num="(2)"> <text>State the precise correction or amendment requested;</text> </paragraph> <paragraph num="(3)"> <text>State the reason for the correction or amendment; and</text> </paragraph> <paragraph num="(4)"> <text>Include a statement that, to the best of the requester’s belief, the public record is inaccurate or incomplete.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Addressee."> <text>A request to correct or amend a public record shall be addressed to the custodian of the record. If the custodian is unknown, the request shall be addressed to the [Executive Director] official custodian.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Return of Nonconforming Request."> <paragraph num="A."> <text>The custodian shall accept a request to correct or amend a public record when it is received if it reasonably complies with Regulations .04 and .05 of this chapter.</text> </paragraph> <paragraph num="B."> <text>If the request does not reasonably comply with Regulations .04 and .05 of this chapter, the custodian shall return the request to the requestor with:</text> <paragraph num="(1)"> <text>An explanation of the reason for the return; and</text> </paragraph> <paragraph num="(2)"> <text>A statement that, on receipt of a request that reasonably complies with Regulations .04 and .05 of this chapter, the request will be accepted.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Response to Request."> <text>Within 30 days after the custodian receives a request for correction or amendment that reasonably complies with Regulations .04 and .05 of this chapter, the custodian shall:</text> <paragraph num="A."> <text>Make the requested correction or amendment, and inform the requester in writing of the action; or</text> </paragraph> <paragraph num="B."> <text>Inform the requester in writing that the custodian will not:</text> <paragraph num="(1)"> <text>Make the requested correction or amendment, and the reason for the refusal; or</text> </paragraph> <paragraph num="(2)"> <text>Act on the request because:</text> <paragraph num="(a)"> <text>The requester is not a person in interest;</text> </paragraph> <paragraph num="(b)"> <text>The requester is not authorized to inspect the record; or</text> </paragraph> <paragraph num="(c)"> <text>Of any other reason authorized by law.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Response to Refusal of Request — Statement of Disagreement."> <text>If the custodian refuses to make a requested correction or amendment, a person in interest may file with the Center a concise statement of the reasons for:</text> <paragraph num="A."> <text>The requested correction or amendment; and</text> </paragraph> <paragraph num="B."> <text>The person’s disagreement with the refusal of the custodian to make the correction or amendment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Requirements for Statement of Disagreement."> <text>The statement submitted under Regulation .08 of this chapter:</text> <paragraph num="A."> <text>Shall be submitted electronically or by mail on single-sided 8-1/2 x 11 inch paper; and</text> </paragraph> <paragraph num="B."> <text>May not exceed 2,000 words.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Disclosure of Statement of Disagreement."> <text>If a requester files a statement of disagreement concerning a public record under Regulations .08 and .09 of this chapter, the custodian shall provide a copy of the statement whenever the custodian discloses the public record to a third party.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Administrative Review."> <paragraph num="A."> <text>A person may request administrative review under this regulation if the custodian:</text> <paragraph num="(1)"> <text>Has refused the person’s request to correct or amend a public record under Regulation .07 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Has rejected the person’s statement of disagreement under Regulation .08 of this chapter; or</text> </paragraph> <paragraph num="(3)"> <text>Has not provided a statement of disagreement to a third party under Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A request for review shall be filed with the official custodian of the Center within 30 days after the requester is advised of the custodian’s action.</text> </paragraph> <paragraph num="C."> <text>The review proceedings shall be conducted in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §24-706; General Provisions Article, §4-502; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 19, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11A, B amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> <chapter num="03" heading="Meetings."> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(2)"> <text>“Governing Board” has the meaning stated in Education Article, §24-701, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Open session” means a meeting of the Governing Board that is required to be open to the public pursuant to the Open Meetings Act, State Government Article, Title 10, Subtitle 5, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Public Attendance."> <paragraph num="A."> <text>The general public is invited to attend and observe any open sessions of the Governing Board.</text> </paragraph> <paragraph num="B."> <text>Meetings shall be held in a manner or location that is reasonably accessible to individuals who would like to attend and observe an open session of the Governing Board.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public Participation Limited."> <text>A member of the public attending an open session may not participate in the session unless:</text> <paragraph num="A."> <text>The Governing Board expressly invites public testimony, questions, comments, or other forms of public participation;</text> </paragraph> <paragraph num="B."> <text>The person is entitled by law to participate; or</text> </paragraph> <paragraph num="C."> <text>As provided by the bylaws of the Governing Board, the individual has received prior approval from the chairman of the Governing Board to participate, subject to a time limit set by the chairman.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Disruptive Conduct."> <paragraph num="A."> <text>An individual attending an open session may not engage in any conduct, including but not limited to visual demonstrations such as the display of placards, signs, or banners, that disrupts the session or interferes with the right of members of the public to attend and observe the session.</text> </paragraph> <paragraph num="B."> <text>Authority of the chair of the Governing Board.</text> <paragraph num="(1)"> <text>The chair of the Governing Board may order an individual who violates §A of this regulation, or who violates any other regulation or resolution concerning the conduct of the open session, to be removed from the session, and may request police assistance to restore order.</text> </paragraph> <paragraph num="(2)"> <text>The chair of the Governing Board may recess the session while order is restored.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual who is asked to leave the session in accordance with these regulations and who refuses to do so may be subject to arrest as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Recording, Photographing, and Broadcasting of Open Sessions."> <paragraph num="A."> <text>A member of the public, including a representative of the news media, may:</text> <paragraph num="(1)"> <text>Record the discussions at an open session using a tape recorder or other recording device if the device used does not create excessive noise that disturbs the open session or other individuals attending the session; or</text> </paragraph> <paragraph num="(2)"> <text>Photograph or videotape the proceedings of an open session using any type of camera if the camera is operated without excessively bright artificial light or excessive noise that disturbs the open session or other individuals attending the session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A representative of the news media may broadcast or televise the open session if the equipment used is operated without excessively bright artificial light or excessive noise that disturbs the open session or other individuals attending the session.</text> </paragraph> <paragraph num="C."> <text>The chair of the Governing Board may restrict the movement of an individual who is using a recording device, a camera, or broadcasting or televising equipment if the restriction is necessary to maintain the orderly conduct of the open session.</text> </paragraph> <paragraph num="D."> <text>A member of the public who intends to record the discussions at an open session is requested to provide notice to the Executive Director of the Center in advance of the meeting advising of the intention to record the proceedings and specifying the type of equipment to be used to record the proceedings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recordings Not Part of Record."> <text>A recording of an open session made by a member of the public including a representative of the news media or any transcript derived from a recording is not a part of the record of the open session.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §24-706; State Government Article, Title 10, Subtitle 5; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 19, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> <chapter num="04" heading="Data Requests"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>Generally.</text> <paragraph num="(1)"> <text>This chapter governs data requests received by the Maryland Longitudinal Data System Center under Education Article, §24-703(f)(6) and (7), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>All other public information requests shall be processed in accordance with General Provisions Article, Title 4, Annotated Code of Maryland, and COMAR 14.36.01.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Maryland Longitudinal Data System Center was created to provide analytical information to policy makers, researchers, parents, and students to guide education and workforce policy decisions and programs.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(2)"> <text>“Data partner” means a State agency, an industry certifier, or other entity that originally collects student and workforce data and provides that data to the Center under Education Article, §24-707, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>Data Request.</text> <paragraph num="(a)"> <text>“Data request” means a request for an aggregate data set created by linking two or more data tables.</text> </paragraph> <paragraph num="(b)"> <text>“Data request” does not include a request that requires:</text> <paragraph num="(i)"> <text>Analysis or the application of advanced statistical methods; or</text> </paragraph> <paragraph num="(ii)"> <text>Creation of constructed variables.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Applications — General."> <paragraph num="A."> <text>Application Form. The application shall be made in writing, in the form required by the Executive Director of the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="B."> <text>The application form shall be made available to the public on the Center website.</text> </paragraph> <paragraph num="C."> <text>Options. The application form shall require at a minimum:</text> <paragraph num="(1)"> <text>The name, phone number, and email address for the requestor; and</text> </paragraph> <paragraph num="(2)"> <text>The data request.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Time for Applying, Responding."> <paragraph num="A."> <text>An application for a data request from the Center may be made at any time by any member of the public, or any State agency.</text> </paragraph> <paragraph num="B."> <text>The Executive Director of the Center, or staff member delegated by the Executive Director, shall provide the applicant with an acknowledgement of the receipt of the data request within 10 business days of receiving the application, and shall advise the applicant of the estimated time for completion of fulfillment of the data request and the estimated costs associated therewith within 30 days of receipt of the application.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Fees."> <text>The Executive Director shall assess fees for data requests in accordance with COMAR 14.36.01.15.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Individual Records."> <paragraph num="A."> <text>The Center receives data from data partners in accordance with its mandated responsibilities as set forth in Education Article, §24-701, et seq., Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>Individual Student Records.</text> <paragraph num="(1)"> <text>The Center shall maintain education records that are incorporated into the Maryland Longitudinal Data System consistent with the protections established by the Family Educational Rights and Privacy Act, 20 U.S.C. §1232g, as amended, and its accompanying regulations, located at 34 CFR §99, as amended, which are incorporated by reference.</text> </paragraph> <paragraph num="(2)"> <text>As set forth in Education Article, §24-703(f)(3)—(4) and (h)(3), Annotated Code of Maryland, the Center shall:</text> <paragraph num="(a)"> <text>Only use de-identified aggregate data in its research and reporting; and</text> </paragraph> <paragraph num="(b)"> <text>Suppress data that may be identifiable based on the size or uniqueness of the population under consideration.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Center shall restrict direct access to the data in the Maryland Longitudinal Data System to authorized staff of the Center as set forth in Education Article, §24-703(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>The Center shall direct requests for access to individual student records to the agency supplying the records to the Center for consideration under the Maryland Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland, and any and all applicable State and federal statutes and regulations.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Individual Workforce Records.</text> <paragraph num="(1)"> <text>The Center recognizes that workforce records incorporated into the Maryland Longitudinal Data System are protected under Labor and Employment Article, §8-625, Annotated Code of Maryland, and 20 CFR Part 603, which are incorporated by reference, and other State and federal privacy laws.</text> </paragraph> <paragraph num="(2)"> <text>The Center shall ensure that workforce data is de-identified by removing or not disclosing any and all information that:</text> <paragraph num="(a)"> <text>Reveals the name, address, social security number, or any other identifying particular of an individual or employer; or</text> </paragraph> <paragraph num="(b)"> <text>Could foreseeably be combined with other publicly available information to reveal such particulars.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The Center shall use only de-identified aggregate data in its research and reporting as set forth in Education Article, §24-703(f)(3) and (g)(3), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>The Center shall restrict direct access to the data in the Maryland Longitudinal Data System to authorized staff of the Center as set forth in Education Article, §24-703(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>Requests for access to individual workforce records shall be directed to the Maryland Department of Labor for that agency’s consideration under the Maryland Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland, and any and all applicable State and federal statutes and regulations.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Center shall fulfill data requests made pursuant to Education Article, §24-703(f)(6) and (7), Annotated Code of Maryland:</text> <paragraph num="(1)"> <text>Using de-identified aggregate data only, as set forth in Education Article, §24-703(g)(2) and (3), Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>In compliance with:</text> <paragraph num="(a)"> <text>The privacy and confidentiality provisions of the Family Educational Rights and Privacy Act, 20 U.S.C. §1232g, as amended, and its accompanying regulations, located at 34 CFR §99, as amended;</text> </paragraph> <paragraph num="(b)"> <text>The Federal-State Unemployment Compensation Program (UC), 20 CFR part 603, and Labor and Employment Article, §8-625, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(c)"> <text>Any other applicable State or federal data privacy or confidentiality provisions.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The Center shall deny a data request if the data provided may be identifiable based on the size or uniqueness of the population under consideration, as required under Education Article, §24-703(a)(4), and Labor and Employment Article, §8-625, Annotated Code of Maryland, and 20 CFR Part 603.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Requests for Nonlongitudinal Data Sets."> <paragraph num="A."> <text>For purposes of this regulation, a data set is non-longitudinal if it contains data provided by only one of the following agencies that contribute data to the Center:</text> <paragraph num="(1)"> <text>Maryland State Department of Education;</text> </paragraph> <paragraph num="(2)"> <text>Maryland Department of Labor; or</text> </paragraph> <paragraph num="(3)"> <text>Maryland Higher Education Commission.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Center shall deny a request for a nonlongitudinal data set and refer the requestor to the appropriate agency.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§24-701, 24-703, and 24-706;General Provisions Article, Title 4; Labor and Employment Article, §8-625; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: January 19, 2015 (42:1 Md. R. 18)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective February 26, 2018 (45:4 Md. R. 207)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03C amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> <chapter num="05" heading="Data Collection"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Longitudinal Data System Center.</text> </paragraph> <paragraph num="(2)"> <text>“Data” means student and workforce data as defined under Education Article, §24-701, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Data partner” means a State agency, an industry certifier, or other entity that originally collects student and workforce data and provides that data to the Center under Education Article, §24-707, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Governing Board” has the meaning stated in Education Article, §24-701, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Data Inventory."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Except as provided in §A(2) of this regulation, the Center may not collect, use, or warehouse data that is not listed in a data inventory approved by the Governing Board.</text> </paragraph> <paragraph num="(2)"> <text>The Center may temporarily collect limited data elements from a data partner for the purpose of determining if identify resolution is possible.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Data Inventory Requirements. The data inventory shall specify:</text> <paragraph num="(1)"> <text>Each data element collected and warehoused in the system;</text> </paragraph> <paragraph num="(2)"> <text>The data partner; and</text> </paragraph> <paragraph num="(3)"> <text>The date range for the data.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Required Review. The Governing Board shall review and approve the data inventory:</text> <paragraph num="(1)"> <text>Each December prior to the submission of the annual report required under Education Article, §24-705, Annotated Code of Maryland; and</text> </paragraph> <paragraph num="(2)"> <text>Each time the Center proposes adding or removing a data element.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Center shall annually report any data element that has been removed upon determination that it is no longer necessary to carry out the mission of the Center.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Data Collection Schedule."> <text>The Governing Board shall approve a data collection schedule that establishes deadlines for each data partner to transfer its data to the Center.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Data Transmission."> <text>The Center shall establish a data transmission method that each data partner shall follow when transferring data to the Center.</text> </regulation> <regulation prefix="Regulation" num=".05" heading="Data Source."> <paragraph num="A."> <text>State Data.</text> <paragraph num="(1)"> <text>As provided in Education Article, §24-707(a), Annotated Code of Maryland, the Center may collect student and workforce data directly from local education agencies, community colleges, public senior higher education institutions, or State agencies.</text> </paragraph> <paragraph num="(2)"> <text>The Center shall collect student and workforce data from a State agency if the State agency is already collecting that data or agrees to collect the data on behalf of the Center.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Private Secondary School Data.</text> <paragraph num="(1)"> <text>As provided in Education Article, §24-707(b), Annotated Code of Maryland, a private secondary school may transfer student and workforce data to the Center.</text> </paragraph> <paragraph num="(2)"> <text>If such data is transferred, the Center may designate the Maryland State Department of Education as its agent for collecting data from the private secondary schools.</text> </paragraph> </paragraph> <paragraph num="C."> <text>For-Profit and Private Nonprofit Institutions of Higher Education Data.</text> <paragraph num="(1)"> <text>As provided in Education Article, §24-707(c), Annotated Code of Maryland, certain for-profit and private nonprofit institutions of higher education are required to transfer student-level data to the Center.</text> </paragraph> <paragraph num="(2)"> <text>The Center may designate the Maryland Higher Education Commission as its agent for collecting data from the for-profit and private nonprofit institutions of higher education.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Other Data Sources. The Center may collect and incorporate data from an entity other than a State or local agency, if the data collected by that entity:</text> <paragraph num="(1)"> <text>Is permissible student data or workforce data;</text> </paragraph> <paragraph num="(2)"> <text>Is determined to be accurate and reliable; and</text> </paragraph> <paragraph num="(3)"> <text>Is approved for inclusion by the Governing Board.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Medical and Health Records—Prohibited."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>For purposes of this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Medical and Health Records.</text> <paragraph num="(a)"> <text>“Medical and health records” means records created by a health care provider for the purpose of providing care and treatment to an individual.</text> </paragraph> <paragraph num="(b)"> <text>“Medical and health records” does not include information about a student that is:</text> <paragraph num="(i)"> <text>Collected by a data partner that provides data to the MLDS under this subtitle; and</text> </paragraph> <paragraph num="(ii)"> <text>Used solely to determine eligibility for or to administer educational services and programs to students.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Prohibition.</text> <paragraph num="(1)"> <text>Under Education Article, §24-701(l)(3), Annotated Code of Maryland, medical and health records are not student data.</text> </paragraph> <paragraph num="(2)"> <text>The Center may not collect medical and health records.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§24-706 and 24-707, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 6, 2015 (42:13 Md. R. 796)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 adopted effective October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> <chapter num="06" heading="Center Staff"> <regulation prefix="Regulation" num=".01" heading="Authorized Staff."> <paragraph num="A."> <text>Scope. Education Article, §24-703(h), Annotated Code of Maryland, restricts access to data in the Maryland Longitudinal Data System to authorized staff of the Center. This regulation sets out a procedure for authorizing Center staff.</text> </paragraph> <paragraph num="B."> <text>General. Authorized staff of the Center shall include:</text> <paragraph num="(1)"> <text>State employees of the Center; and</text> </paragraph> <paragraph num="(2)"> <text>Individuals authorized by the Executive Director pursuant to §C of this regulation.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Authorization by Executive Director.</text> <paragraph num="(1)"> <text>Limitations.</text> <paragraph num="(a)"> <text>The Executive Director may only authorize individuals to serve as staff of the Center who are necessary to carry out the mission of the Center.</text> </paragraph> <paragraph num="(b)"> <text>Center staff shall be restricted in number for the purpose of maintaining control over access to the Maryland Longitudinal Data System in strict compliance with State and federal privacy laws.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The Executive Director may designate the following individuals as authorized staff of the Center:</text> <paragraph num="(a)"> <text>Researchers, including:</text> <paragraph num="(i)"> <text>Faculty staff, and graduate students, from a public senior higher education institution who are identified by the Director of the Research Services Branch to provide research and analysis as part of the Research Services Branch of the Center; and</text> </paragraph> <paragraph num="(ii)"> <text>Additional researchers who, pursuant to the MLDS Center’s Project Approval and Management Procedures, have applied for and received approval to conduct a project using MLDS data consistent with Education Article, §24-703(f)(4) and (5), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Information technology experts and technicians necessary to:</text> <paragraph num="(i)"> <text>Install, maintain, and repair data center equipment;</text> </paragraph> <paragraph num="(ii)"> <text>Provide assistance in maintaining system security; or</text> </paragraph> <paragraph num="(iii)"> <text>Provide system development support; and</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>A State agency employee or contractor as needed to provide information technology expertise to assist with data sharing or system administration.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Background Investigations."> <paragraph num="A."> <text>All staff of the Center shall have a State and federal criminal history background check within 5 business days of starting as staff of the Center.</text> </paragraph> <paragraph num="B."> <text>An individual is not eligible to have access to the longitudinal data system until the individual has completed and passed the criminal history background investigation.</text> </paragraph> <paragraph num="C."> <text>An individual is deemed to have an unsatisfactory criminal history background investigation if the individual:</text> <paragraph num="(1)"> <text>Has been convicted of a felony of any nature; or</text> </paragraph> <paragraph num="(2)"> <text>Within the last 10 years, has been convicted of a crime that qualifies as an infamous crime under Maryland law.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Security Requirements."> <paragraph num="A."> <text>General. The Center’s Executive Director shall require all authorized staff of the Center to:</text> <paragraph num="(1)"> <text>Comply with the rules of security behavior that are provided to staff;</text> </paragraph> <paragraph num="(2)"> <text>Receive and review the MLDS Center’s Data Security and Safeguarding Plan, data sharing agreements, the Maryland Department of Labor—Confidentiality Certification Form, and other documents required by the Executive Director; and</text> </paragraph> <paragraph num="(3)"> <text>Periodically take security and privacy training classes.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Required Compliance. The Executive Director shall remove a staff member’s system access if the staff member fails to remain in compliance with the requirements in §A of this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§24-703(h) and 24-706, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: July 6, 2015 (42:13 Md. R. 796)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A, C amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03A amended effective October 14, 2024 (51:20 Md. R. 899)</annotation> </annotations> </chapter> </subtitle> <subtitle num="37" heading="Office of the Public Ombudsman"> <chapter num="01" heading="General Provisions"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Dispute” means a point of contention between an applicant and a custodian arising from a request for public records under the Act, including those matters stated in General Provisions Article, §4-1B-04(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Exemption” means a denial of inspection of a public record or part of a public record pursuant to General Provisions Article, Title 4, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Final determination” means the written document issued by the Public Access Ombudsman pursuant to General Provisions Article, §4-1B-04(b), Annotated Code of Maryland, stating that a specific dispute has been resolved or partially resolved or not resolved, or other disposition as provided in Regulations .06, .07, and .09 of this chapter.</text> </paragraph> <paragraph num="(7)"> <text>“Identifying information” means any information that identifies a party or other person.</text> </paragraph> <paragraph num="(8)"> <text>“Mediation” has the meaning stated in Courts and Judicial Proceedings Article, §3-1801(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(9)"> <text>“Mediation communication” has the meaning stated in Courts and Judicial Proceedings Article, §3-1801(c), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Mediation Confidentiality Act” means the Maryland Mediation Confidentiality Act, Courts and Judicial Proceedings Article, Title 3, Subtitle 18, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Mediation information” means all information made and received as part of the Ombudsman’s mediation process and the decision to participate in mediation, including documentary materials and mediation communications.</text> </paragraph> <paragraph num="(12)"> <text>“Mediator” has the meaning stated in Courts and Judicial Proceedings Article, §3-1801(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(13)"> <text>“Office” means the Office of the Public Access Ombudsman.</text> </paragraph> <paragraph num="(14)"> <text>“Ombudsman” means the person appointed to the position of the Public Access Ombudsman pursuant to General Provisions Article, §4-1B-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(15)"> <text>“Party” means a participant or potential participant in the Ombudsman’s mediation process, including an applicant and a custodian.</text> </paragraph> <paragraph num="(16)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(17)"> <text>“Sociological information” means any of the following information concerning a person that may be contained in a record of the Ombudsman:</text> <paragraph num="(a)"> <text>Social security number;</text> </paragraph> <paragraph num="(b)"> <text>Driver’s license number;</text> </paragraph> <paragraph num="(c)"> <text>Personal mailing address;</text> </paragraph> <paragraph num="(d)"> <text>Personal phone number;</text> </paragraph> <paragraph num="(e)"> <text>Personal email address; and</text> </paragraph> <paragraph num="(f)"> <text>Date of birth.</text> </paragraph> </paragraph> <paragraph num="(18)"> <text>“Standards of Conduct for Mediators” means the Maryland Standards of Conduct for Mediators, Arbitrators and Other ADR Practitioners adopted by the Maryland Judiciary’s Mediation and Conflict Resolution Office.</text> </paragraph> <paragraph num="(19)"> <text>“Written guidance” means nonbinding guidance that advises parties on the interpretation of the Act and the application of the Act to specific facts.</text> </paragraph> <paragraph num="(20)"> <text>“Written mediation agreement” means a written agreement between the Ombudsman and the parties to a mediation that provides the specific terms under which that particular mediation will proceed.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Objective."> <text>The objective of the Office of the Public Access Ombudsman is to make reasonable attempts, including mediation, to resolve disputes between applicants and custodians relating to requests for public records under the Act.</text> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 17, 2019 (46:12 Md. R. 547)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="02" heading="Process"> <regulation prefix="Regulation" num=".01" heading="Requesting Dispute Resolution."> <paragraph num="A."> <text>A party may request the Office’s assistance in resolving a dispute by contacting the Office via telephone, mail, email, or website submission.</text> </paragraph> <paragraph num="B."> <text>If possible, an applicant or custodian shall complete the form entitled Request for Mediation Assistance available on the Office website.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Documents."> <paragraph num="A."> <text>An applicant or custodian requesting dispute resolution through the Office shall provide the Office with:</text> <paragraph num="(1)"> <text>A copy of the applicant’s written request for public records;</text> </paragraph> <paragraph num="(2)"> <text>The custodian’s 10-day letter, if applicable;</text> </paragraph> <paragraph num="(3)"> <text>The custodian’s final response, if any; and</text> </paragraph> <paragraph num="(4)"> <text>A brief description of the dispute.</text> </paragraph> </paragraph> <paragraph num="B."> <text>An applicant or custodian may provide the Office with:</text> <paragraph num="(1)"> <text>Any records produced to the applicant by the custodian; and</text> </paragraph> <paragraph num="(2)"> <text>Any relevant correspondence between the applicant and custodian.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon the Office’s request, an applicant or custodian may provide the Office with any other documents that the Ombudsman believes may facilitate the mediation process.</text> </paragraph> <paragraph num="D."> <text>Upon receipt of all necessary information and documents, and subject to Regulation .05 of this chapter, the Office shall open a file as soon as practicable.</text> </paragraph> <paragraph num="E."> <text>The failure of an applicant or custodian who is requesting dispute resolution to provide the Office with the documents identified in §A of this regulation may result in the Office declining to open a file.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Written Mediation Agreement."> <text>The Ombudsman may request that the parties enter into a written mediation agreement if, in the Ombudsman’s discretion, such agreement would facilitate the mediation process.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Timing."> <paragraph num="A."> <text>Ordinarily, the Ombudsman will handle matters in the order in which a request for dispute resolution is received and the file is opened.</text> </paragraph> <paragraph num="B."> <text>The Ombudsman has discretion to handle a matter out of order if there is a compelling reason to do so.</text> </paragraph> <paragraph num="C."> <text>Time for Mediation.</text> <paragraph num="(1)"> <text>The Ombudsman has up to 90 days from the date a file is opened with the Office in which to attempt to resolve a dispute and bring a matter to closure.</text> </paragraph> <paragraph num="(2)"> <text>The 90-day deadline may be extended if:</text> <paragraph num="(a)"> <text>An extension is needed and desirable in light of the progress that has already been made to resolve the dispute;</text> </paragraph> <paragraph num="(b)"> <text>An extension is likely to result in the ultimate resolution of the dispute; and</text> </paragraph> <paragraph num="(c)"> <text>The applicant, the custodian, and the Ombudsman agree to the extension and the extension is confirmed in writing.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Repetitive Requests for Dispute Resolution."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Repetitive request for dispute resolution” means a request:</text> <paragraph num="(i)"> <text>For the Ombudsman’s assistance to resolve a dispute;</text> </paragraph> <paragraph num="(ii)"> <text>That relates to a PIA request that in substance has been the subject of mediation between the same parties through the Office in the past; and</text> </paragraph> <paragraph num="(iii)"> <text>For which the dispute is substantially the same.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Significantly changed circumstances” means:</text> <paragraph num="(i)"> <text>A change in the law, subsequent to mediation, that may affect the outcome of the mediation; or</text> </paragraph> <paragraph num="(ii)"> <text>A change in the custodian or applicant’s position regarding the dispute.</text> </paragraph> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The Ombudsman has discretion to decline to mediate repetitive requests for dispute resolution, absent significantly changed circumstances.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Process Voluntary — Declining and Withdrawing Requests."> <paragraph num="A."> <text>The Ombudsman’s mediation process is voluntary for each party.</text> </paragraph> <paragraph num="B."> <text>If the applicant or custodian that is the subject of the request for dispute resolution declines to mediate the dispute, the Ombudsman shall, as soon as practicable, issue a final determination as provided in Regulation .11 of this chapter stating that the dispute was not resolved and indicating that mediation was declined.</text> </paragraph> <paragraph num="C."> <text>Withdrawing a Request for Dispute Resolution.</text> <paragraph num="(1)"> <text>A party requesting dispute resolution through the Ombudsman may withdraw the request.</text> </paragraph> <paragraph num="(2)"> <text>If a request for dispute resolution is withdrawn after the Office has opened a file, then the Ombudsman shall issue a final determination as provided in Regulation .11 of this chapter stating that the request for dispute resolution was withdrawn.</text> </paragraph> <paragraph num="(3)"> <text>Renewing a Request for Dispute Resolution.</text> <paragraph num="(a)"> <text>A party that has withdrawn a request for dispute resolution through the Ombudsman may renew the request one time.</text> </paragraph> <paragraph num="(b)"> <text>If a party renews the request for dispute resolution and withdraws that request again, the Ombudsman may decline to mediate a second or subsequent renewed request for dispute resolution.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Conduct of Ombudsman."> <paragraph num="A."> <text>The Ombudsman shall read and, consistent with State law, shall abide by the Standards of Conduct for Mediators during the mediation process.</text> </paragraph> <paragraph num="B."> <text>The Ombudsman shall remain neutral, impartial, and independent during the mediation process.</text> </paragraph> <paragraph num="C."> <text>Conflicts of Interest.</text> <paragraph num="(1)"> <text>The Ombudsman shall disclose to the parties all actual and potential conflicts of interest reasonably known to the Ombudsman.</text> </paragraph> <paragraph num="(2)"> <text>Notwithstanding an actual or potential conflict of interest, the Ombudsman may proceed to attempt to resolve a dispute if:</text> <paragraph num="(a)"> <text>The Ombudsman is able to conduct the mediation in a neutral, impartial, and independent manner; and</text> </paragraph> <paragraph num="(b)"> <text>The applicant and custodian have consented to proceed in writing.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the Ombudsman is unable to proceed in a neutral, impartial, and independent manner, or if the parties have not consented to proceed in light of an actual or potential conflict, then the Ombudsman shall:</text> <paragraph num="(a)"> <text>Withdraw from that mediation; and</text> </paragraph> <paragraph num="(b)"> <text>Issue a final determination as provided in Regulation .11 of this chapter stating that the dispute was not resolved through the Ombudsman due to conflict.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If the Ombudsman withdraws from a mediation due to conflict, the Ombudsman may suggest to the parties an alternative dispute resolution resource.</text> </paragraph> </paragraph> <paragraph num="D."> <text>In addition to or in lieu of mediation, the Ombudsman may engage in other reasonable efforts to resolve or prevent a dispute or potential dispute, such as by answering questions about the Act, by providing trainings on the Act, and by engaging in preliminary conversations with an applicant or custodian about the subject of a dispute or potential dispute.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Conduct of Parties."> <paragraph num="A."> <text>The Ombudsman may establish written standards of conduct with which the parties will be expected to comply during the mediation process.</text> </paragraph> <paragraph num="B."> <text>The Ombudsman shall disclose all written standards of conduct to the parties at the outset of the mediation.</text> </paragraph> <paragraph num="C."> <text>A party’s failure to abide by a written standard of conduct may result in termination of the mediation process.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Termination of Mediation."> <paragraph num="A."> <text>The Ombudsman may terminate the mediation process at any time if the Ombudsman determines that mediation will not reasonably lead to resolution of the dispute.</text> </paragraph> <paragraph num="B."> <text>In making the decision whether to terminate a mediation, the Ombudsman may consider, among other factors:</text> <paragraph num="(1)"> <text>The duration of the mediation process;</text> </paragraph> <paragraph num="(2)"> <text>The parties’ efforts to resolve the dispute;</text> </paragraph> <paragraph num="(3)"> <text>The Ombudsman’s efforts to resolve the dispute;</text> </paragraph> <paragraph num="(4)"> <text>The likelihood that the parties will change their positions;</text> </paragraph> <paragraph num="(5)"> <text>A party’s failure to abide by the written standards of conduct;</text> </paragraph> <paragraph num="(6)"> <text>A party’s failure to abide by the party’s confidentiality obligations; and</text> </paragraph> <paragraph num="(7)"> <text>A party’s use of the mediation process for purposes of delay or harassment.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Upon termination of a mediation, the Ombudsman shall issue a final determination as provided in Regulation .11 of this chapter and, without disclosing confidential mediation communications, indicate the reason why mediation was terminated.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Identification of New Dispute."> <text>If, during the course of attempting to resolve a dispute, a new and distinct dispute related to the same PIA request arises, a new file may be opened pursuant to Regulations .01 and .02 of this chapter.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Final Determination."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“Not resolved” means that the parties were unable to reach a mutually agreeable resolution of a dispute.</text> </paragraph> <paragraph num="(b)"> <text>“Partially resolved” means that the parties have reached a mutually agreeable resolution as to one or more, but not all, segregable sub-issues within a dispute.</text> </paragraph> <paragraph num="(c)"> <text>“Resolved” means that the parties have reached a mutually agreeable resolution of a dispute.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>At the conclusion of a mediation, the Ombudsman shall issue a written final determination stating that the dispute has been resolved, partially resolved, or not resolved.</text> </paragraph> <paragraph num="C."> <text>The written final determination shall include:</text> <paragraph num="(1)"> <text>The name of the applicant, the name of the custodian, and the Office file number;</text> </paragraph> <paragraph num="(2)"> <text>A brief summary of the matter, including:</text> <paragraph num="(a)"> <text>The date of the PIA request;</text> </paragraph> <paragraph num="(b)"> <text>A description of the records sought;</text> </paragraph> <paragraph num="(c)"> <text>The date of the custodian’s response, if any; and</text> </paragraph> <paragraph num="(d)"> <text>A summary of the custodian’s response, if any;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A brief description of the dispute for which dispute resolution was sought;</text> </paragraph> <paragraph num="(4)"> <text>The date and length of an extension, if one was granted; and</text> </paragraph> <paragraph num="(5)"> <text>Notice of PIA Compliance Board procedures and contact information.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The Ombudsman shall send the final determination to the relevant applicant and custodian.</text> </paragraph> <paragraph num="E."> <text>Board.</text> <paragraph num="(1)"> <text>The Ombudsman does not automatically provide the final determination to the Board.</text> </paragraph> <paragraph num="(2)"> <text>If a complaint is filed with the Board, the Ombudsman may provide the final determination to the Board upon the Board’s request.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 17, 2019 (46:12 Md. R. 547)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulations .03—.06 repealed and new Regulations .03—.11 adopted effective September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="03" heading="Confidentiality of Mediation Information"> <regulation prefix="Regulation" num=".01" heading="General Confidentiality Provisions."> <paragraph num="A."> <text>Except as provided in Regulation 02 of this chapter, the Ombudsman shall maintain the confidentiality of all mediation information in accordance with the Act, the Standards of Conduct for Mediators, and the Mediation Confidentiality Act.</text> </paragraph> <paragraph num="B."> <text>The Ombudsman may not disclose or be compelled to disclose mediation information in any judicial, administrative, or other proceeding, in accordance with the Act and with the Mediation Confidentiality Act.</text> </paragraph> <paragraph num="C."> <text>A party may not disclose or be compelled to disclose mediation information in any judicial, administrative, or other proceeding, in accordance with the Mediation Confidentiality Act.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Exceptions to Confidentiality of Mediation Information."> <paragraph num="A."> <text>The Ombudsman may disclose mediation information, including mediation communications, in the following situations:</text> <paragraph num="(1)"> <text>With Office staff, including an Assistant Attorney General who represents the Office, the Administrative Officer, or any other person working under the direction of the Ombudsman, to carry out the duties of the Office; and</text> </paragraph> <paragraph num="(2)"> <text>To third parties, if the parties to the mediation have consented to the disclosure.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Ombudsman may transfer basic information about a dispute, including the identity of the applicant and custodian and the nature of the dispute, to the Board if appropriate steps have been taken to protect the confidentiality of mediation communications.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 17, 2019 (46:12 Md. R. 547)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01D repealed effective September 18, 2023 (50:18 Md. R. 800)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="04" heading="Disputed Public Records"> <regulation prefix="Regulation" num=".01" heading="Ombudsman’s Review of Disputed Public Records."> <paragraph num="A."> <text>When the dispute involves a custodian’s application of an exemption to a public record or part of a public record, the Ombudsman may request the custodian to submit the disputed public record or part of a public record to the Ombudsman for review.</text> </paragraph> <paragraph num="B."> <text>A custodian may not be compelled to disclose to the Ombudsman a public record or part of a public record in the custodian’s custody.</text> </paragraph> <paragraph num="C."> <text>A custodian’s voluntary submission of a public record or part of a public record for review under this chapter may not be construed as a waiver of:</text> <paragraph num="(1)"> <text>Any privilege held by the custodian; or</text> </paragraph> <paragraph num="(2)"> <text>Any assertion of confidentiality under the Act.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Confidentiality of Disputed Public Records."> <paragraph num="A."> <text>The Ombudsman shall strictly maintain the confidentiality of any public record or part of a public record submitted for review under this chapter, and may not disclose any such public record or part of a public record to another party without the written permission of the custodian.</text> </paragraph> <paragraph num="B."> <text>The Ombudsman shall take reasonable steps to segregate confidential records in such a way that their confidence is maintained.</text> </paragraph> <paragraph num="C."> <text>Upon the conclusion of a mediation involving the Ombudsman’s review of disputed public records, the Ombudsman shall return or destroy the disputed public records.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 17, 2019 (46:12 Md. R. 547)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> <chapter num="05" heading="Written Guidance"> <regulation prefix="Regulation" num=".01" heading="Ombudsman May Provide."> <paragraph num="A."> <text>The Ombudsman may provide written guidance to parties in furtherance of the mediation process.</text> </paragraph> <paragraph num="B."> <text>Written guidance may not disclose information that any party claims is confidential.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Ombudsman May Publish."> <paragraph num="A."> <text>In the Ombudsman’s sole discretion, and to the extent that the Ombudsman believes publication will promote understanding of the Act, the Ombudsman may publish written guidance.</text> </paragraph> <paragraph num="B."> <text>Before publishing written guidance, the Ombudsman shall remove all identifying information.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">General Provisions Article, §§4-1B-01—4-1B-04, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: June 17, 2019 (46:12 Md. R. 547)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 18, 2023 (50:18 Md. R. 800)</annotation> </annotations> </chapter> </subtitle> <subtitle num="38" heading="Maryland State Library"> <chapter num="01" heading="Programs for Library Media Services"> <regulation prefix="Regulation" num=".01" heading="Librarians in County Public Libraries."> <paragraph num="A."> <text>Each librarian employed by a county public library in Maryland shall hold a professional certificate issued by the State Superintendent.</text> </paragraph> <paragraph num="B."> <text>There shall be Professional Public Librarian Certification and Public Library Director Certification.</text> <paragraph num="(1)"> <text>Professional Public Librarian Certification.</text> <paragraph num="(a)"> <text>An applicant for Public Librarian Certification shall have a master's degree from a library school accredited by the American Library Association.</text> </paragraph> <paragraph num="(b)"> <text>This certificate shall be valid for 5 years and shall be renewed by the State Superintendent for an additional 5 years if the certificate holder has completed 6 semester hours or their equivalent in an accredited institution or in an in-service program in one of the following areas:</text> <paragraph num="(i)"> <text>Management and supervision;</text> </paragraph> <paragraph num="(ii)"> <text>Information technology;</text> </paragraph> <paragraph num="(iii)"> <text>Reference or technical services; or</text> </paragraph> <paragraph num="(iv)"> <text>Other subjects that are relevant to the professional assignment of the librarian.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>Professional Library Director Certification.</text> <paragraph num="(a)"> <text>An applicant for Professional Library Director Certification shall have:</text> <paragraph num="(i)"> <text>A master's degree from a library school accredited by the American Library Association; and</text> </paragraph> <paragraph num="(ii)"> <text>5 years of experience as a professional librarian with at least 2 years of experience in an administrative or supervisory capacity.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>This certificate shall be valid for 5 years and may be renewed by the State Superintendent for an additional 5 years if the certificate holder has completed 6 semester hours or their equivalent in an accredited institution or in an in-service program in the areas of library management or administration, and other subjects that are relevant to the professional assignment of a Professional Library Director.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An in-service program that forms the basis for credit under this regulation shall meet the standards for approval promulgated by the Maryland State Library Agency.</text> </paragraph> <paragraph num="D."> <text>Conditional Degree Certificate. The State Superintendent may issue a Conditional Degree Certificate at the request of a county public library if the State Superintendent determines that an applicant's preparation or experience, or both, are adequate to justify issuance of a conditional certificate. A conditional certificate:</text> <paragraph num="(1)"> <text>Shall be valid for 2 years from the date of its issuance; and</text> </paragraph> <paragraph num="(2)"> <text>May not be renewed.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Certificates shall be issued by the State Superintendent upon a written application supported by official transcripts of the applicant's record and other documentation that may be required by the State Department of Education.</text> </paragraph> <paragraph num="F."> <text>An application shall contain payment for processing in accordance with the fee schedule that is established by the State Department of Education.</text> </paragraph> <paragraph num="G."> <text>The requirements for certification under these regulations are for the purposes of State certification. A county public library may, as a condition for employment, establish additional requirements.</text> </paragraph> <paragraph num="H."> <text>An application for renewal of a certificate under these regulations shall be made in writing to the State Superintendent not later than 90 days before the expiration date of the certificate. If the certificate has expired, a holder of a former certificate shall meet the certification requirements of the State Board that are in effect at the time of the application for the new certificate.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Public Library Associate."> <paragraph num="A."> <text>Definition. The public library associate provides support services requiring rudimentary knowledge of library service, the library collections, and the policies and regulations governing the library.</text> </paragraph> <paragraph num="B."> <text>Job Responsibilities.</text> <paragraph num="(1)"> <text>The library associate works under the direction of an experienced professional librarian.</text> </paragraph> <paragraph num="(2)"> <text>Examples of appropriate job responsibilities are:</text> <paragraph num="(a)"> <text>Assisting library patrons in locating information through the library;</text> </paragraph> <paragraph num="(b)"> <text>Providing information to the public on library services, policies, and procedures;</text> </paragraph> <paragraph num="(c)"> <text>Collecting, recording, and compiling information and statistics;</text> </paragraph> <paragraph num="(d)"> <text>Assisting in the preparation and presentation of library programs;</text> </paragraph> <paragraph num="(e)"> <text>Operating a small library branch or service outlet;</text> </paragraph> <paragraph num="(f)"> <text>Assisting in the review and selection of library materials;</text> </paragraph> <paragraph num="(g)"> <text>Checking and transcribing bibliographic and cataloging information as required; and</text> </paragraph> <paragraph num="(h)"> <text>Assisting in the development and maintenance of information technology.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Education and Training.</text> <paragraph num="(1)"> <text>To be appointed to a public library associate position, an applicant shall have:</text> <paragraph num="(a)"> <text>A bachelor's degree from an accredited institution; and</text> </paragraph> <paragraph num="(b)"> <text>Completed a minimum of 90 clock hours of approved in-service training or 9 hours of formal academic course work in library science.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>An appointee with only a bachelor's degree shall have 2 years from the date of appointment to complete the training requirements in §C(1)(b) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Upon completion of the training requirements in §C(1) and (2) of this regulation, Library Associates shall complete 6 semester hours or their equivalent in an accredited institution or in an in-service program in subjects that are relevant to the assignment of a Library Associate every 5 years.</text> </paragraph> </paragraph> <paragraph num="D."> <text>An in-service program that forms the basis for credit under this regulation shall meet the standards for approval promulgated by the Maryland State Library Agency.</text> </paragraph> <paragraph num="E."> <text>Requirements and Responsibilities of Public Library Administrators and Boards of Trustees. Public libraries shall:</text> <paragraph num="(1)"> <text>File with the State Department of Education a letter of assurance of compliance with these regulations; and</text> </paragraph> <paragraph num="(2)"> <text>Maintain personnel records on each library associate to include:</text> <paragraph num="(a)"> <text>Job description;</text> </paragraph> <paragraph num="(b)"> <text>Formal education;</text> </paragraph> <paragraph num="(c)"> <text>Experience;</text> </paragraph> <paragraph num="(d)"> <text>In-service training; and</text> </paragraph> <paragraph num="(e)"> <text>Academic courses completed.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Requirements and Responsibilities of the Maryland State Library Agency. The State Library:</text> <paragraph num="(1)"> <text>May perform periodic review and evaluation of the library associate personnel records in each public library system and report to the State Librarian on compliance with these requirements;</text> </paragraph> <paragraph num="(2)"> <text>Shall develop or assist libraries in the development of in-service education and staff development programs appropriate for the training of library associates;</text> </paragraph> <paragraph num="(3)"> <text>Shall publish criteria for the approval of in-service training and the awarding of library associate credits; and</text> </paragraph> <paragraph num="(4)"> <text>Shall approve in-service training for the awarding of library associate credits.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Library Programs Involving Federal Funds."> <text>The regulations for the acceptance and administration of federal funds for the further development of public library and cooperative library services as provided in Public Law 104-208, as amended, shall be those set forth in the State Plan for the administration of the Library Services and Technology Act.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Special Library Services."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“LBPD” means the Maryland Library for the Blind and Print Disabled.</text> </paragraph> <paragraph num="(b)"> <text>“MSL” means the Maryland State Library Agency.</text> </paragraph> <paragraph num="(c)"> <text>“NLS” means the National Library Service for the Blind and Print Disabled of the Library of Congress.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Responsibilities of MSL and LBPD.</text> <paragraph num="(1)"> <text>MSL shall provide specialized library services to the blind and print disabled individuals in this State through the LBPD.</text> </paragraph> <paragraph num="(2)"> <text>LBPD shall:</text> <paragraph num="(a)"> <text>Serve as the primary source of books, periodicals, and other information in formats such as Braille, large print, recorded books and digital material;</text> </paragraph> <paragraph num="(b)"> <text>Provide reading material, information, programming, and instruction, in cooperation with local organizations and agencies, to eligible citizens; and</text> </paragraph> <paragraph num="(c)"> <text>Coordinate library services to the blind and print disabled with those of public libraries and other educational institutions so as to provide an effective Statewide program.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Population Served. The population served by LBPD includes all Maryland citizens who are unable to read standard-sized print due to conditions including blindness, low vision, learning disorders, or physical conditions.</text> </paragraph> <paragraph num="D."> <text>Services Provided.</text> <paragraph num="(1)"> <text>LBPD shall provide reading material, information, programming, and instruction, in cooperation with local organizations and agencies, to eligible citizens.</text> </paragraph> <paragraph num="(2)"> <text>LBPD is responsible for the Maryland Accessible Textbook Program under Education Article, §§11-901—11-906, Annotated Code of Maryland. The Program coordinates the Statewide availability of textbooks and supplementary materials in electronic format to eligible blind or print disabled students who are enrolled in institutions of higher education and institutions of postsecondary education in the State. The population served includes students with print disabilities attending postsecondary educational institutions in the State.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Funding for Expenses.</text> <paragraph num="(1)"> <text>MSL shall receive and utilize the resources of federal agencies, including the National Library Service for the Blind and Print Disabled of the Library of Congress, in accordance with the policies governing these resources.</text> </paragraph> <paragraph num="(2)"> <text>LBPD shall receive funding from the State as outlined in Education Article, §23-205(e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Free Public Library Services."> <paragraph num="A."> <text>The board of public library trustees for each county, including Washington County and Baltimore City, shall develop and submit to the Maryland State Library Agency a statement of its policies relating to the provision of free library services to the public. Each statement shall state the board's policies with respect to:</text> <paragraph num="(1)"> <text>Limits to be placed on the amount of free services, such as limits on the number of books or other materials borrowed at one time, or time limits on borrowing;</text> </paragraph> <paragraph num="(2)"> <text>Online database searches, including a statement of:</text> <paragraph num="(a)"> <text>Reasonable time limitations on Internet or database searches; and</text> </paragraph> <paragraph num="(b)"> <text>Charges to users for additional online searches;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Charges for utilities or conveniences available to library users, such as copying machines, printers, fax machines, or other equipment.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The Maryland State Library Agency shall report to the Maryland State Library Board any statements submitted pursuant to this regulation which are not in compliance with State laws and regulations regarding free library services.</text> </paragraph> <paragraph num="C."> <text>“Free library services” is defined to include the use of all library materials and services available for reference/information and for circulation to library users regardless of format, including printed materials, media, computer software, Internet, online databases, or other forms of electronic storage of information.</text> </paragraph> <paragraph num="D."> <text>A public library may not charge usage fees for circulation or use of any materials, excluding late return and excess use charges authorized in this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Audits of County Public Libraries."> <paragraph num="A."> <text>Audit Required. Each board of library trustees for a county public library shall have an audit made of its financial statements for each fiscal year.</text> </paragraph> <paragraph num="B."> <text>Qualifications and Approval of Auditor. The auditor shall meet the qualifications in COMAR 13A.02.07.04B. The director of the county public library shall submit to the State Librarian for approval, by May 1 of the fiscal year to be audited, the name of the auditor.</text> </paragraph> <paragraph num="C."> <text>Audit Standards and Report. The auditor shall conduct the audit in accordance with the standards in COMAR 13A.02.07.04D and the audit reporting package shall include the information in COMAR 13A.02.07.04E.</text> </paragraph> <paragraph num="D."> <text>Submission of Report. The director of the county public library shall submit a copy of the audit reporting package to the State Librarian and appropriate county governing body by November 1 after the close of the fiscal year, except that a county having a population of more than 500,000 and having a county library agency as provided by Education Article, §23-401(b), Annotated Code of Maryland, shall submit the audit report by January 1 after the close of the fiscal year.</text> </paragraph> <paragraph num="E."> <text>Audits of Federal Awards. Each county public library that expends $500,000 or more in federal awards in any fiscal year shall have an audit made in accordance with COMAR 13A.02.07.05.</text> </paragraph> <paragraph num="F."> <text>Additional Provisions. The provisions of COMAR 13A.02.07.06—.10 shall apply to audits conducted under this regulation.</text> </paragraph> <paragraph num="G."> <text>Exemptions. This regulation does not apply to county public libraries which:</text> <paragraph num="(1)"> <text>Do not receive, account for, control, and supervise the spending of any public funds for the library;</text> </paragraph> <paragraph num="(2)"> <text>Do not prepare separate financial statements; and</text> </paragraph> <paragraph num="(3)"> <text>Are audited as a part of the county government.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="County Library Capital Project Grants Program."> <paragraph num="A."> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“LLA” means local library agency or county library system.</text> </paragraph> <paragraph num="(2)"> <text>“MSL” means the Maryland State Library Agency.</text> </paragraph> <paragraph num="(3)"> <text>“Project completion” means:</text> <paragraph num="(a)"> <text>Construction work has been completed in accordance with the contract documents;</text> </paragraph> <paragraph num="(b)"> <text>The project architect has issued a certificate of completion;</text> </paragraph> <paragraph num="(c)"> <text>The contractor has submitted the application for final payment; and</text> </paragraph> <paragraph num="(d)"> <text>The building has been accepted by the LLA.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Responsibilities of MSL. MSL shall:</text> <paragraph num="(1)"> <text>Develop and administer a grant program for county library capital projects to provide a uniform and objective analysis of proposed capital projects and support projects that address the library needs in the State;</text> </paragraph> <paragraph num="(2)"> <text>Evaluate and prioritize grant requests to provide a uniform and objective analysis of proposed capital projects, including the review of each applicant's library facilities master plan;</text> </paragraph> <paragraph num="(3)"> <text>Review proposed county library construction grants and issue approvals that are specific to a definite project with a prescribed scope and cost; and</text> </paragraph> <paragraph num="(4)"> <text>Use the following criteria to evaluate capital project requests:</text> <paragraph num="(a)"> <text>The public necessity and urgency of a project;</text> </paragraph> <paragraph num="(b)"> <text>The need for additional sources of funding for a project;</text> </paragraph> <paragraph num="(c)"> <text>The estimated cost and timeliness of executing a project;</text> </paragraph> <paragraph num="(d)"> <text>The viability of matching funds for a project;</text> </paragraph> <paragraph num="(e)"> <text>Geographic diversity; and</text> </paragraph> <paragraph num="(f)"> <text>Other factors that may give priority to a project.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Library Facilities Master Plan.</text> <paragraph num="(1)"> <text>By July 1 of each year, as a condition of receiving State project approval, each LLA shall submit to MSL or its designee:</text> <paragraph num="(a)"> <text>Countywide library plan, which includes:</text> <paragraph num="(i)"> <text>A mission statement;</text> </paragraph> <paragraph num="(ii)"> <text>A needs statement; and</text> </paragraph> <paragraph num="(iii)"> <text>Multiyear goals and objectives; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Library facilities master plan, which includes:</text> <paragraph num="(i)"> <text>A description of the capital project approved by the applicant's governing body;</text> </paragraph> <paragraph num="(ii)"> <text>An updated and detailed capital improvement program for the following fiscal year; and</text> </paragraph> <paragraph num="(iii)"> <text>A library capital improvement program for the following 5 years.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>The annual and subsequent 5-year capital improvement program shall be consistent with the current library facilities master plan of record.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Capital Improvement Projects Grants Program.</text> <paragraph num="(1)"> <text>By July 15 of each year, an LLA may submit up to 3 applications to MSL to receive grants for capital projects for the next fiscal year.</text> </paragraph> <paragraph num="(2)"> <text>An application shall include:</text> <paragraph num="(a)"> <text>A description of the scope and purpose of the project;</text> </paragraph> <paragraph num="(b)"> <text>A building plan that includes the estimated total cost of the project, including matching funds; and</text> </paragraph> <paragraph num="(c)"> <text>Any other information required by MSL.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>On or before October 1 of each year, MSL shall make a recommendation to the State Library Board regarding LLA capital project grants for the following fiscal year that:</text> <paragraph num="(a)"> <text>Identifies capital projects for funding approval; and</text> </paragraph> <paragraph num="(b)"> <text>Recommends a maximum State construction allocation for each project.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>On or before November 1 of each year, on approval of the State Library Board, MSL shall forward the list of approved LLA capital projects to the Department of Budget and Management.</text> </paragraph> <paragraph num="(5)"> <text>By December 1 of each year, each local library board shall submit documentation that:</text> <paragraph num="(a)"> <text>The local government has approved the LLA request for State funds and agreed to provide the required matching funds; and</text> </paragraph> <paragraph num="(b)"> <text>The requested State funding will be expended within the fiscal year following the fiscal year in which the funds are requested.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Amendments to the State capital improvement program that a local library board considers necessary to submit during the course of the year shall be reviewed and approved by MSL and the State Library Board before an amendment may be implemented.</text> </paragraph> <paragraph num="(7)"> <text>State and Local Cost Share Formula.</text> <paragraph num="(a)"> <text>The State share percentage for a county library capital project approved under this section shall be calculated by dividing the State share of the minimum program for a county calculated under Education Article, §23-505(b), Annotated Code of Maryland, by the library program amount for a county calculated under Education Article, §23-503(b), Annotated Code of Maryland, and multiplying this quotient by 1.25.</text> </paragraph> <paragraph num="(b)"> <text>The minimum State share of a county library capital project is 50 percent and the maximum State share of a county library capital project is 90 percent of the project expenses that are approved by MSL pursuant to this regulation and Education Article, §23-502, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(c)"> <text>Grants under this program may not be for an amount less than $20,000.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Planning and Design of Capital Projects.</text> <paragraph num="(1)"> <text>Land or buildings for a capital project shall be acquired by the board of library trustees or, in Montgomery County, the Department of Public Library Services.</text> </paragraph> <paragraph num="(2)"> <text>Architects and Engineers.</text> <paragraph num="(a)"> <text>The plans, specifications, and related documents for each construction project shall be developed under the supervision and responsibility of a licensed architect or engineer.</text> </paragraph> <paragraph num="(b)"> <text>The LLA shall select the architect or engineer.</text> </paragraph> <paragraph num="(c)"> <text>The LLA shall notify MSL of the architect or engineer selected.</text> </paragraph> </paragraph> </paragraph> <paragraph num="G."> <text>Grant Close-Out.</text> <paragraph num="(1)"> <text>Within 180 days after project completion, the LLA shall submit a close-out summary to MSL using a form provided by MSL.</text> </paragraph> <paragraph num="(2)"> <text>MSL may conduct financial and procedural compliance audits.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Rescinding Funding Approval.</text> <paragraph num="(1)"> <text>If, within 2 years after funding is made available for a project, no part of the project is under contract, MSL may determine the project to be abandoned and rescind the funding approval.</text> </paragraph> <paragraph num="(2)"> <text>When MSL rescinds funding approval, MSL shall transfer the allocation to the Statewide Contingency Account for the fiscal year in which the project was approved for funding.</text> </paragraph> <paragraph num="(3)"> <text>Funds transferred to the Statewide Contingency Account may be used for any project approved in a future LLA capital improvement program.</text> </paragraph> <paragraph num="(4)"> <text>After a project approval is rescinded, to be considered for reinstatement, the project shall be submitted as a new project request in a succeeding fiscal year's annual LLA capital improvement program.</text> </paragraph> <paragraph num="(5)"> <text>MSL may approve a request to extend the allowable time for placing a project under contract if the extension is justified by unusual circumstances.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§23-105(c), 23-106, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date:</annotation> <annotation type="History" subtype="Administrative History">Regulations .02—.08 recodified from Chapter 13A.05.04, Programs for Library Media Services to be new Regulations .01—.07 under new Chapter 14.38.01, Programs for Library Media Services, effective August 26, 2019 (46:17 Md. R. 727)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective April 15, 2024 (51:7 Md. R. 333)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 repealed and new Regulation .04 adopted effective January 14, 2021 (48:1 Md. R. 10)</annotation> </annotations> </chapter> <chapter num="02" heading="Freedom to Read Act"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of this chapter is to establish as a matter of policy and priority that:</text> <paragraph num="A."> <text>Library materials, services, and resources exist and should be provided for the interest, information, and enlightenment of all persons the library serves;</text> </paragraph> <paragraph num="B."> <text>A library should not exclude material from its catalog because of the origin, background, or views of a person who created the material; and</text> </paragraph> <paragraph num="C."> <text>A library should not prohibit or remove material from its catalog because of partisan, ideological, or religious disapproval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined:</text> <paragraph num="(1)"> <text>“County” means any county of the State and Baltimore City.</text> </paragraph> <paragraph num="(2)"> <text>Library.</text> <paragraph num="(a)"> <text>“Library” includes:</text> <paragraph num="(i)"> <text>The State Library Resource Center;</text> </paragraph> <paragraph num="(ii)"> <text>A Regional Resource Center;</text> </paragraph> <paragraph num="(iii)"> <text>A correctional facility library;</text> </paragraph> <paragraph num="(iv)"> <text>A county library system and the Enoch Pratt Free Library in Baltimore;</text> </paragraph> <paragraph num="(v)"> <text>The Maryland State Library for the Blind and Print Disabled;</text> </paragraph> <paragraph num="(vi)"> <text>The Maryland Deaf Culture Digital Library; and</text> </paragraph> <paragraph num="(vii)"> <text>A metropolitan cooperative service program.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Library” does not include a school library media program established by a local school system.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Objection” means a formal challenge submitted to a library for the purpose of removing, reconsidering, or restricting the presence of materials in a library collection.</text> </paragraph> <paragraph num="(4)"> <text>“School library media program” means a library in a school in the public elementary and secondary education system of this State.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Library Policies and Procedures."> <paragraph num="A."> <text>Each library shall adopt and follow a written policy for operation of the library that is consistent with the State standards for libraries set forth in Regulation .01 of this chapter.</text> </paragraph> <paragraph num="B."> <text>Each policy adopted pursuant to §A of this regulation shall include:</text> <paragraph num="(1)"> <text>An acknowledgement that all Marylanders have the freedom to read;</text> </paragraph> <paragraph num="(2)"> <text>An affirmation that it is the responsibility of the library to provide adequate library services to satisfy the diverse needs of their users;</text> </paragraph> <paragraph num="(3)"> <text>A policy and procedures for librarians and library staff to identify materials that meet users’ needs;</text> </paragraph> <paragraph num="(4)"> <text>A requirement that librarians and library staff curate and develop collections that provide access to the widest possible array of books and other materials that support learning; and</text> </paragraph> <paragraph num="(5)"> <text>A materials reconsideration policy and procedures.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A materials reconsideration policy and procedures shall:</text> <paragraph num="(1)"> <text>Establish a uniform process to submit an objection to materials in the library;</text> </paragraph> <paragraph num="(2)"> <text>Require material under review due to an objection to remain available for use by the public and library staff until the review process has concluded; and</text> </paragraph> <paragraph num="(3)"> <text>Establish a reasonable timeline to conduct and conclude the review process in a timely manner.</text> </paragraph> </paragraph> <paragraph num="D."> <text>A library board of trustees or other governing body of a library may not dismiss, suspend, discipline, demote, reassign, transfer, or otherwise retaliate against an employee for performing their job duties consistent with the library’s written policy adopted under §A of this regulation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="State Funding."> <paragraph num="A."> <text>The State Library Board shall ensure that each library that receives State funding is operated in a manner consistent with the State standards for libraries set forth in Regulation .01 of this chapter.</text> </paragraph> <paragraph num="B."> <text>Receipt of State funding by a public library is contingent upon the library board of trustees or other governing body for the library adopting a written policy that is consistent with the State standards for libraries and conducting the operation of the library in a manner consistent with the written policy.</text> </paragraph> <paragraph num="C."> <text>If the State Library Board certifies that a library has failed to meet the State standards for libraries, the State Library Board shall notify the Comptroller to withhold all State funds from that library.</text> </paragraph> <paragraph num="D."> <text>The Comptroller shall continue to withhold funds until the State Library Board certifies that the library has adopted a written policy consistent with the State standards for libraries.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§4-142, 23-101, 23-102.1, 23-105-106, 23-202-202.1, 23-205, 23-406, 23-503 and 23-506-507, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 3, 2025</annotation> </annotations> </chapter> </subtitle> <subtitle num="39" heading="Interagency Commission on School Construction"> <chapter num="01" heading="Terminology"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this subtitle, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Alternative education” means a public elementary or secondary school or program that addresses the needs of students that typically cannot be met in a regular school program and is designed to meet the needs of students with academic difficulties and/or discipline problems, and temporarily provide students with specialized instructional and/or behavioral supports for a specified time period before returning to their home school.</text> </paragraph> <paragraph num="(2)"> <text>“Best value” means the expected outcome of a procurement that provides the greatest overall benefit in response to the requirement with consideration given to the quantities involved, the time required for delivery, the purpose for which required, the competency and responsibility of the bidder, the ability of the bidder to perform satisfactory service, the plan for utilization of minority contractors, and the price offered by the bidder.</text> </paragraph> <paragraph num="(3)"> <text>“Bid” means a statement of price, terms of sale, schedule, and description of the supplies, services, construction, or construction-related services offered by a bidder in response to an invitation for bids.</text> </paragraph> <paragraph num="(4)"> <text>“Capital maintenance” means projects that involve the major repair, alteration, and replacement of building systems, equipment, finishes, and components, including their removal and disposal, and are sometimes referred to as “systemic renovation” projects.</text> </paragraph> <paragraph num="(5)"> <text>Competitive Negotiation.</text> <paragraph num="(a)"> <text>“Competitive negotiation” means a method of source selection that permits offerors to:</text> <paragraph num="(i)"> <text>Demonstrate creativity, experience, and knowledge; and</text> </paragraph> <paragraph num="(ii)"> <text>Submit proposals that vary widely in scope, cost, and other factors.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Competitive negotiation” allows negotiating between the LEA and the qualified offerors with the objective that the final proposal should be the most advantageous to the LEA.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>“Competitive sealed bidding” means a process of procurement in which bidders provide fixed prices in response to a scope of work established by the LEA that is defined in advance.</text> </paragraph> <paragraph num="(7)"> <text>Construction.</text> <paragraph num="(a)"> <text>“Construction” means the process of building, altering, repairing, improving, or demolishing any structure, building, or other improvement to real property.</text> </paragraph> <paragraph num="(b)"> <text>“Construction” includes any major work necessary to repair, replace, prevent damage to, or sustain existing components of an improvement to real property.</text> </paragraph> <paragraph num="(c)"> <text>“Construction” does not include:</text> <paragraph num="(i)"> <text>The maintenance or routine operation of an existing improvement to real property; or</text> </paragraph> <paragraph num="(ii)"> <text>Activities related to an energy performance contract.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(8)"> <text>“Construction management agency (CMA)” means a project delivery method in which the LEA:</text> <paragraph num="(a)"> <text>Directly contracts with trade contractors; and</text> </paragraph> <paragraph num="(b)"> <text>Performs one of the following:</text> <paragraph num="(i)"> <text>Engages a construction manager as its agent to manage the project; or</text> </paragraph> <paragraph num="(ii)"> <text>Acts as the construction manager.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Construction management at-risk (CMR)” means a project delivery method in which the LEA engages a construction manager to contract directly with trade contractors and provide a guaranteed maximum price for project procurement and construction.</text> </paragraph> <paragraph num="(10)"> <text>“Constructor” means the builder of a facility.</text> </paragraph> <paragraph num="(11)"> <text>“Cooperative-use space” means areas in a school that serve as shared or co-located spaces in which both the LEA and non-LEA organizations deliver programs and/or services.</text> </paragraph> <paragraph num="(12)"> <text>“County” includes Baltimore City.</text> </paragraph> <paragraph num="(13)"> <text>“Day” means calendar day unless otherwise designated.</text> </paragraph> <paragraph num="(14)"> <text>Design-Build.</text> <paragraph num="(a)"> <text>“Design-build” means a project delivery method in which a single entity is contractually responsible for both design and construction of a project.</text> </paragraph> <paragraph num="(b)"> <text>“Design-build” may include finance-design-build and other contracts that include services in addition to design and construction.</text> </paragraph> </paragraph> <paragraph num="(15)"> <text>“Donation” means a contribution of cash or gift in kind from a private entity to a public school system or a local government, with no consideration required of the recipient.</text> </paragraph> <paragraph num="(16)"> <text>“eMaryland Marketplace” means the State electronic procurement system.</text> </paragraph> <paragraph num="(17)"> <text>“Forward-funded project” means a school construction project that the State has approved for planning and for which the LEA has paid some portion of the State share with local funds.</text> </paragraph> <paragraph num="(18)"> <text>“Free and reduced-price meal percentage” means the number of students eligible in the previous year for free and reduced-price meals, divided by the full-time equivalent enrollment from the previous year.</text> </paragraph> <paragraph num="(19)"> <text>“Funding approval” means pending the availability of funds, the State commits to fund, in the next fiscal year, the entire or a portion of the State share of eligible costs for a school construction project.</text> </paragraph> <paragraph num="(20)"> <text>“Furniture, Fixtures, and Equipment (FF&E)” means a category of items such as chairs, desks, movable equipment, and fixed components that are required for the delivery of education within a school facility and are normally not included in the construction contract.</text> </paragraph> <paragraph num="(21)"> <text>“Gift in kind” means a contribution of materials, labor, services, equipment, or land from a private entity to a public school system or a local government, with no consideration required of the recipient.</text> </paragraph> <paragraph num="(22)"> <text>“Guaranteed maximum price (GMP)” means an arrangement between the LEA and the construction manager at risk in which the total amount payable to the construction manager at risk for the project is restricted to a preagreed maximum and includes the cost of construction and construction management services that is generally determined before the design and construction documents are complete.</text> </paragraph> <paragraph num="(23)"> <text>“High performance school” means a school building that satisfies the definition of a high performance building under State Finance and Procurement Article, §3-602.1, Annotated Code of Maryland, and is:</text> <paragraph num="(a)"> <text>A school building that meets or exceeds the current version of the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) for schools green building rating system silver rating;</text> </paragraph> <paragraph num="(b)"> <text>A school building that achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretary of Budget and Management and the Secretary of General Services; or</text> </paragraph> <paragraph num="(c)"> <text>A school building that complies with a nationally recognized and accepted green building code, guideline, or standard reviewed and recommended by the Maryland Green Building Council and approved by the Secretary of Budget and Management and the Secretary of General Services.</text> </paragraph> </paragraph> <paragraph num="(24)"> <text>“IAC” means the Interagency Commission on School Construction.</text> </paragraph> <paragraph num="(25)"> <text>“IAC” or its designee means a member of the IAC or a staff member, respectively, of the Maryland State Department of Education, the Department of General Services, or the Maryland Department of Planning who has been specifically designated to act in the place of the IAC member, or the Executive Director of the Public School Construction Program.</text> </paragraph> <paragraph num="(26)"> <text>“Invitation for bids (IFB)” means the document used for soliciting bids under procurement by competitive sealed bidding.</text> </paragraph> <paragraph num="(27)"> <text>“Job order contracting (JOC)” means a project delivery method in which the LEA selects a contractor through a competitive procurement process based on a multiplier or coefficient that:</text> <paragraph num="(a)"> <text>Reflects the bidder's determination of the actual cost to perform the work plus overhead and profit; and</text> </paragraph> <paragraph num="(b)"> <text>Is applied to a fixed-price list of construction items and activities.</text> </paragraph> </paragraph> <paragraph num="(28)"> <text>“LEA” means the local education agency or its designee.</text> </paragraph> <paragraph num="(29)"> <text>“Local board” means the board of education of a county and includes the Baltimore City Board of School Commissioners</text> </paragraph> <paragraph num="(30)"> <text>“Locally funded project” means a school construction project that has been designed, built, or occupied prior to the State approval of planning.</text> </paragraph> <paragraph num="(31)"> <text>“Maintenance” means routine, preventative, or corrective activities that are performed to a facility to:</text> <paragraph num="(a)"> <text>Continue operations or upkeep;</text> </paragraph> <paragraph num="(b)"> <text>Prevent deterioration; or</text> </paragraph> <paragraph num="(c)"> <text>Correct a deficiency.</text> </paragraph> </paragraph> <paragraph num="(32)"> <text>Minority Business Enterprise (MBE).</text> <paragraph num="(a)"> <text>“Minority business enterprise” means a legal entity, other than a joint venture, organized to engage in commercial transactions, that is:</text> <paragraph num="(i)"> <text>At least 51 percent owned and controlled by one or more individuals who are socially and economically disadvantaged;</text> </paragraph> <paragraph num="(ii)"> <text>Managed by, and whose daily business operations are controlled by, one or more of the socially and economically disadvantaged individuals who own it; and</text> </paragraph> <paragraph num="(iii)"> <text>Certified as a Minority Business Enterprise by the Maryland Department of Transportation.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Minority business enterprise (MBE)” includes a not-for-profit entity organized to promote the interests of physically or mentally disabled individuals.</text> </paragraph> </paragraph> <paragraph num="(33)"> <text>“Multistep sealed bidding” means a multiphase process in which bidders submit a technical offer (statement of qualifications) and a second phase in which those bidders who are determined qualified during the first phase may have price bids considered.</text> </paragraph> <paragraph num="(34)"> <text>“Offeror” means an entity that responds to a request for proposals.</text> </paragraph> <paragraph num="(35)"> <text>“Planning approval” means, pending the availability of funds, the State commits to fund the State share of eligible costs for a school construction project in some future fiscal years.</text> </paragraph> <paragraph num="(36)"> <text>“Prevailing wage rate” means the hourly rate of wages paid in the locality as determined by the State Commissioner of Labor and Industry under State Finance and Procurement Article, §17-208, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(37)"> <text>“Priority funding” area means an area designated by a county or a municipal corporation in accordance with State Finance and Procurement Article, §§5-7B-02 and 5-7B-03, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(38)"> <text>“Proposal” means the response by an offeror to a request for proposals.</text> </paragraph> <paragraph num="(39)"> <text>“Quality based selection” means a method of source selection based on a combination of qualification and cost factors.</text> </paragraph> <paragraph num="(40)"> <text>“Renewal” means a capital improvement project for an existing school that, on completion, results in a like-new operational condition for the school as defined by the Commission.</text> </paragraph> <paragraph num="(41)"> <text>“Renovation” means a construction project to upgrade an existing building and site, or a portion of a building and site, to improve a school facility’s educational, building performance, and/or aesthetic qualities but which does not achieve a renewal or like-new condition.</text> </paragraph> <paragraph num="(42)"> <text>“Responsible” means an entity that has:</text> <paragraph num="(a)"> <text>The capability in all respects to perform fully the contract requirements; and</text> </paragraph> <paragraph num="(b)"> <text>The integrity and reliability that shall assure good faith performance.</text> </paragraph> </paragraph> <paragraph num="(43)"> <text>“Responsive” means a bid submitted in response to an invitation for bids that conforms in all material respects to the requirements contained in the invitation for bids.</text> </paragraph> <paragraph num="(44)"> <text>Request for Proposals.</text> <paragraph num="(a)"> <text>“Request for proposals” means any documents used for soliciting proposals from offerors.</text> </paragraph> <paragraph num="(b)"> <text>“Request for proposals” may request the offeror's price and terms for the proposed contract, a description of technical expertise, work experience, and any other information.</text> </paragraph> </paragraph> <paragraph num="(45)"> <text>“Request for qualifications” means any documents used to solicit statements of qualifications including experience, references, team composition, financial stability and condition, and availability of equipment from bidders.</text> </paragraph> <paragraph num="(46)"> <text>“Solicited” means an invitation for bid, request for proposals, request for qualifications, or other formal notification to the public of the owner's interest in receiving prices, other information, or both, for a proposed public school construction project or related services, which contains all relevant information to allow members of the public to submit responsive and responsible bids, offers, or proposals.</text> </paragraph> <paragraph num="(47)"> <text>“Special education classroom” means a classroom that is used primarily for students who are instructed for more than 60 percent of the day outside of regular classrooms.</text> </paragraph> <paragraph num="(48)"> <text>“State” means the government of the State of Maryland.</text> </paragraph> <paragraph num="(49)"> <text>“Trade contract” means a contract for specialized construction work including, but not limited to, electrical, plumbing, and carpentry.</text> </paragraph> <paragraph num="(50)"> <text>“Trade package” means solicitation documents for a trade contract.</text> </paragraph> <paragraph num="(51)"> <text>“Unsolicited proposal” means a written proposal for an original or innovative idea that is submitted on the initiative of the offeror for the purpose of obtaining a contract with the LEA.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§4-126, 5-112, and 5-301—5-321, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 21, 2007 (34:10 Md. R. 891)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.01 recodified to be COMAR 14.39.01 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective November 4, 2019 (46:22 Md. R. 979); June 28, 2021 (48:13 Md. R. 509); July 7, 2025 (52:13 Md. R. 656)</annotation> </annotations> </chapter> <chapter num="02" heading="Administration of the Public School Construction Program"> <regulation prefix="Regulation" num=".01" heading="Incorporation by Reference."> <text>The Interagency Commission on School Construction Gross Area Baseline Per Student Square Footage Allowances (September 14, 2023) is incorporated by reference.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Facility Database."> <text>The LEA shall update the IAC facility inventory when a State-funded project is substantially complete.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Local Educational Facilities Master Plan."> <paragraph num="A."> <text>A local educational facilities master plan is a written plan that includes:</text> <paragraph num="(1)"> <text>Educational goals, standards, and guidelines;</text> </paragraph> <paragraph num="(2)"> <text>Community analysis, concluding that the plan conforms to the adopted county and municipal comprehensive plan and growth management strategies;</text> </paragraph> <paragraph num="(3)"> <text>An inventory and evaluation of existing school buildings;</text> </paragraph> <paragraph num="(4)"> <text>Current and projected enrollment data;</text> </paragraph> <paragraph num="(5)"> <text>Analysis of future school facility needs;</text> </paragraph> <paragraph num="(6)"> <text>Policies for co-location, shared use, and shared cost of existing and planned school facilities;</text> </paragraph> <paragraph num="(7)"> <text>Policies to address school capacity needs in planned growth areas or to address adequate public facilities ordinance requirements; and</text> </paragraph> <paragraph num="(8)"> <text>Policies addressing current and planned transportation for students, administrators, and teachers per school.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Annually by the date the IAC specifies, each LEA shall submit to the IAC an educational facilities master plan that its local board has approved.</text> </paragraph> <paragraph num="C."> <text>The IAC or its designee shall:</text> <paragraph num="(1)"> <text>Review each local educational facilities master plan; and</text> </paragraph> <paragraph num="(2)"> <text>Notify the LEA in writing of objections or exceptions to the plan.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The local educational facilities master plan together with any LEA amendments and IAC or its designee comments is the plan of record.</text> </paragraph> <paragraph num="E."> <text>The IAC may disapprove any school construction project that is not consistent with the plan of record.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Capital Improvement Program."> <paragraph num="A."> <text>Local Submissions.</text> <paragraph num="(1)"> <text>Annually by the date the IAC specifies, each LEA with approval from its local board shall submit to the IAC a local capital improvement program for the next fiscal year that identifies and prioritizes:</text> <paragraph num="(a)"> <text>New construction projects, including replacement schools and additions, renewal projects, renovation projects, and capital maintenance projects, that are proposed for local planning approval;</text> </paragraph> <paragraph num="(b)"> <text>New construction projects, including replacement schools and additions, renewal projects, and renovation projects, that are proposed for project development and design funding;</text> </paragraph> <paragraph num="(c)"> <text>New construction projects, including replacement schools and additions, renewal projects, renovation projects, capital maintenance projects, and relocatable facilities that are proposed for funding approval; and</text> </paragraph> <paragraph num="(d)"> <text>New construction projects, including replacement schools and additions, renewal projects, and renovation projects, that the LEA has locally funded and for which the LEA seeks planning approval and funding approval.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Annually by the date the IAC specifies, each LEA with approval from its local board shall submit to the IAC a local capital improvement program which shall be:</text> <paragraph num="(a)"> <text>Consistent with the educational facilities master plan of record; and</text> </paragraph> <paragraph num="(b)"> <text>Approved by the county governing body.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>IAC Review.</text> <paragraph num="(1)"> <text>Project Development and Design Funding Approval. The IAC or its designee shall evaluate the merits of project development and design funding requests contained in the local capital improvement programs using the following factors as applicable and rank the requests on a Statewide basis using the following factors:</text> <paragraph num="(a)"> <text>State educational priorities;</text> </paragraph> <paragraph num="(b)"> <text>Enrollment projections, that is, the extent to which 7-year enrollment projections exceed the State-rated capacity for the applicable schools;</text> </paragraph> <paragraph num="(c)"> <text>Average year of completed construction of the building;</text> </paragraph> <paragraph num="(d)"> <text>The rehabilitation of existing schools to ensure that facilities in established neighborhoods are of equal quality to new schools, including location of a new school or a replacement school that adds capacity within a priority funding area;</text> </paragraph> <paragraph num="(e)"> <text>The number of students who receive special education services, who are eligible for free and reduced price meals, or who are English-language learners;</text> </paragraph> <paragraph num="(f)"> <text>Analysis of the feasibility studies required for projects in which an LEA seeks to abandon an existing school building or demolish more than 50 percent of the gross square footage;</text> </paragraph> <paragraph num="(g)"> <text>Documentation for renovation projects for which the State has provided funding for projects within the past 15 years;</text> </paragraph> <paragraph num="(h)"> <text>Adequacy of maintenance programs;</text> </paragraph> <paragraph num="(i)"> <text>Justification for the transfer of a school building in the same geographic area by a local board to the county government because the property was determined no longer needed for school purposes;</text> </paragraph> <paragraph num="(j)"> <text>Progress on previously approved projects;</text> </paragraph> <paragraph num="(k)"> <text>Evidence of high performance school design;</text> </paragraph> <paragraph num="(l)"> <text>For locally funded projects for which State planning and funding approval is sought, application of the State's Minority Business Enterprise Program and prevailing wage rates;</text> </paragraph> <paragraph num="(m)"> <text>Statewide needs measured against the potential for future capacity for State funding; and</text> </paragraph> <paragraph num="(n)"> <text>Other factors considered appropriate.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Local Planning Approval. The IAC or its designee shall evaluate the merits of local planning approval requests contained in the local capital improvement programs using the factors in §B(1) of this regulation as applicable and rank the requests on a Statewide basis using the factors in §B(1)(a)—(e) of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>Funding Approval. The IAC shall evaluate funding approval requests contained in the local capital improvement programs using the following factors when applicable:</text> <paragraph num="(a)"> <text>Status of planning approval.</text> </paragraph> <paragraph num="(b)"> <text>Enrollment projections, that is, the extent to which 7-year enrollment projections exceed the State-rated capacity for the applicable schools;</text> </paragraph> <paragraph num="(c)"> <text>Adequacy of maintenance programs;</text> </paragraph> <paragraph num="(d)"> <text>Adequacy of project description;</text> </paragraph> <paragraph num="(e)"> <text>Adequacy of project cost estimate;</text> </paragraph> <paragraph num="(f)"> <text>Progress on project design and anticipated bid date;</text> </paragraph> <paragraph num="(g)"> <text>The rehabilitation of existing schools to ensure that facilities in established neighborhoods are of equal quality to new schools;</text> </paragraph> <paragraph num="(h)"> <text>Location of a new school or a replacement school that adds capacity within a priority funding area;</text> </paragraph> <paragraph num="(i)"> <text>Statewide needs measured against the capacity for State funding;</text> </paragraph> <paragraph num="(j)"> <text>For relocatable facilities, the review criteria in Regulation .16 of this chapter;</text> </paragraph> <paragraph num="(k)"> <text>Progress on previously approved projects;</text> </paragraph> <paragraph num="(l)"> <text>Evidence of high performance school design;</text> </paragraph> <paragraph num="(m)"> <text>For locally funded projects for which State planning and funding approval is sought, application of the State's Minority Business Enterprise Program and prevailing wage rates;</text> </paragraph> <paragraph num="(n)"> <text>Recurring or unresolved audit exceptions; and</text> </paragraph> <paragraph num="(o)"> <text>Other factors considered appropriate.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>After initial review of the local capital improvement programs, the IAC shall:</text> <paragraph num="(a)"> <text>Notify the LEAs of preliminary recommendations; and</text> </paragraph> <paragraph num="(b)"> <text>Allow LEA representatives to present information pertaining to projects that were not recommended for approval by IAC staff for inclusion in the State capital improvement program.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Priority Funding Area Review.</text> <paragraph num="(1)"> <text>Except as provided in §C(3) of this regulation, when an LEA proposes to build a new school or to increase the State-rated capacity of a replacement school outside of a priority funding area, the LEA shall request a waiver in accordance with Regulation .29 of this chapter for approval of planning and funding.</text> </paragraph> <paragraph num="(2)"> <text>Unless a waiver is granted under Regulation .30 of this chapter, a new school or a replacement school that adds capacity proposed for planning and funding approval shall be in a priority funding area.</text> </paragraph> <paragraph num="(3)"> <text>The following school construction projects are not subject to the requirement of §C(1) of this regulation:</text> <paragraph num="(a)"> <text>A locally funded project that was funded by an LEA prior to or in Fiscal Year 2012;</text> </paragraph> <paragraph num="(b)"> <text>A public school construction project that was approved for planning in an annual capital improvement program prior to or in Fiscal Year 2012;</text> </paragraph> <paragraph num="(c)"> <text>A replacement school on the same site when there is no increase of capacity; or</text> </paragraph> <paragraph num="(d)"> <text>A renewal, renovation, addition, or capital maintenance renovation project.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Preliminary State Capital Improvement Program.</text> <paragraph num="(1)"> <text>By December 31 annually, the IAC shall approve a preliminary State capital improvement program for the following fiscal year that:</text> <paragraph num="(a)"> <text>Identifies new construction projects, including replacement schools and additions, renewal projects, renovation projects, capital maintenance renovation projects, and relocatable facilities recommended for local planning approval, project development and design funding approval, or funding approval;</text> </paragraph> <paragraph num="(b)"> <text>Identifies a maximum State construction allocation for each project; and</text> </paragraph> <paragraph num="(c)"> <text>Totals 75 percent of the preliminary school construction allocation, as determined under State Finance and Procurement Article, §8-113, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A capital maintenance project solicited before IAC approval is eligible for State funding if it has design development and construction document approvals by the IAC and was deemed eligible but deferred due to fiscal constraints in a prior year CIP.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Interim State Capital Improvement Program.</text> <paragraph num="(1)"> <text>Before March 1 of each year, the IAC shall submit to the presiding officers and the budget committees of the General Assembly and the Department of Legislative Services an interim State capital improvement program that totals 90 percent of the anticipated final capital budget by proposing:</text> <paragraph num="(a)"> <text>New construction projects, including replacement schools and additions;</text> </paragraph> <paragraph num="(b)"> <text>Renewal projects;</text> </paragraph> <paragraph num="(c)"> <text>Renovation projects;</text> </paragraph> <paragraph num="(d)"> <text>Capital maintenance projects;</text> </paragraph> <paragraph num="(e)"> <text>Relocatable facilities; and</text> </paragraph> <paragraph num="(f)"> <text>A maximum State construction allocation for each project.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The IAC shall take into account:</text> <paragraph num="(a)"> <text>The preliminary State capital improvement program;</text> </paragraph> <paragraph num="(b)"> <text>Additional information the LEAs provide;</text> </paragraph> <paragraph num="(c)"> <text>The anticipated final capital budget for public school construction;</text> </paragraph> <paragraph num="(d)"> <text>Funds added from the Statewide contingency account; and</text> </paragraph> <paragraph num="(e)"> <text>Other information the IAC considers appropriate.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A capital maintenance project solicited before IAC approval is eligible for State funding if it has design development and construction document approvals by the IAC and was deemed eligible but deferred due to fiscal constraints in a prior CIP year.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Final State Capital Improvement Program IAC Approval.</text> <paragraph num="(1)"> <text>After May 1 and before June 1, provided that the capital budget is approved during the regular General Assembly Session, the IAC shall approve a final State capital improvement program that identifies new construction projects, including replacement schools and additions, renewal projects, renovation projects, capital maintenance projects, and relocatable facilities recommended for planning approval or funding approval and that identifies a maximum State construction allocation for each project.</text> </paragraph> <paragraph num="(2)"> <text>The approval shall take into account:</text> <paragraph num="(a)"> <text>The preliminary State capital improvement program;</text> </paragraph> <paragraph num="(b)"> <text>Additional information the LEAs provide;</text> </paragraph> <paragraph num="(c)"> <text>The final capital budget for public school construction;</text> </paragraph> <paragraph num="(d)"> <text>Funds added from the Statewide contingency account;</text> </paragraph> <paragraph num="(e)"> <text>Requirements in the capital budget bill; and</text> </paragraph> <paragraph num="(f)"> <text>Other information the IAC considers appropriate.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A systemic renovation project solicited before IAC approval is eligible for State funding if it has design development and construction document approvals by the IAC and was deemed eligible but deferred due to fiscal constraints in a prior year CIP.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Revisions. After IAC approval of the final State capital improvement program, the program may be revised only upon IAC review and approval.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="State-Rated Capacity."> <paragraph num="A."> <text>Definition. In this regulation, State-rated capacity means the number of students that the IAC or its designee determines that an individual school has the physical capacity to enroll.</text> </paragraph> <paragraph num="B."> <text>Elementary Schools.</text> <paragraph num="(1)"> <text>For the purposes of determining State-rated capacity, elementary schools are schools enrolling students in one or more grades from prekindergarten through grade 6, but no grades higher than grade 6.</text> </paragraph> <paragraph num="(2)"> <text>An elementary-school classroom is a space in which the majority of the school day is spent in instruction of the core curriculum.</text> </paragraph> <paragraph num="(3)"> <text>Elementary school students who circulate through the school to different classrooms for their core curriculum, rather than spending the majority of the school day in a single classroom and leaving the classroom only for special courses (art, music, physical education, and similar), should be considered middle school students for the purposes of calculating State-rated capacity.</text> </paragraph> <paragraph num="(4)"> <text>For the purposes of measuring utilization of facilities and allocating State capital dollars for projects in a manner most equitable to the local school systems of the State, the IAC shall count capacity of elementary school classrooms as follows:</text> <paragraph num="(a)"> <text>Prekindergarten classroom — 20;</text> </paragraph> <paragraph num="(b)"> <text>Kindergarten classroom — 22;</text> </paragraph> <paragraph num="(c)"> <text>Grades 1 through 5 classroom — 23;</text> </paragraph> <paragraph num="(d)"> <text>Grade 6 classroom:</text> <paragraph num="(i)"> <text>If located in an elementary school—23; or</text> </paragraph> <paragraph num="(ii)"> <text>If located in an elementary/middle school, or a secondary school—25;</text> </paragraph> </paragraph> <paragraph num="(e)"> <text>Special education classroom—10; and</text> </paragraph> <paragraph num="(f)"> <text>Alternative education classroom—10.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>State rated capacity for an individual elementary school is calculated according to the following formula:</text> <paragraph num="(a)"> <text>Multiply the number of classrooms in each grade by the approved capacity for that grade; and</text> </paragraph> <paragraph num="(b)"> <text>Then add the resulting products.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Open-space classroom capacity is calculated according to the following formula:</text> <paragraph num="(a)"> <text>Divide the open space area by a square foot number the IAC determines;</text> </paragraph> <paragraph num="(b)"> <text>Next, round the quotient to the nearest whole number; and</text> </paragraph> <paragraph num="(c)"> <text>Then, multiply the rounded quotient by the State-approved capacity for the elementary grade.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Secondary Schools.</text> <paragraph num="(1)"> <text>For purposes of determining State-rated capacity, secondary schools are schools enrolling students in one or more grades from 6 through 12.</text> </paragraph> <paragraph num="(2)"> <text>Classrooms.</text> <paragraph num="(a)"> <text>A secondary-school classroom is a space in which any scheduled instruction takes place.</text> </paragraph> <paragraph num="(b)"> <text>Secondary-school classrooms include but are not limited to laboratories, career technology rooms, music rooms, art rooms, consumer science rooms, gymnasiums, and auxiliary physical education classrooms. One physical education classroom up to 2,500 net square feet which contains specialized equipment hat cannot be stored or relocated may be excluded in facilities functioning as a high school serving grades 9—12, or a middle high school serving grades 6—12, upon application to and approval of the IAC or its designee.</text> </paragraph> <paragraph num="(c)"> <text>Auxiliary gymnasiums up to 6,000 net square feet count as one teaching station. A gymnasium over 6,000 net square feet and up to 13,000 net square feet counts as two classrooms. A gymnasium exceeding 13,000 net square feet counts as three classrooms.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>For the purposes of measuring utilization of facilities and allocating State capital dollars for projects in a manner most equitable to the local school systems of the State, the IAC shall count capacity of secondary school classrooms as follows:</text> <paragraph num="(a)"> <text>Grades 6 through 12 classroom—25;</text> </paragraph> <paragraph num="(b)"> <text>Special education classroom—10; and</text> </paragraph> <paragraph num="(c)"> <text>Alternative education classroom—10.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>State-rated capacity for an individual secondary school is calculated according to the following formula:</text> <paragraph num="(a)"> <text>For regular classrooms:</text> <paragraph num="(i)"> <text>Multiply the number of regular classrooms by the approved capacity;</text> </paragraph> <paragraph num="(ii)"> <text>Next, add the resulting products; and</text> </paragraph> <paragraph num="(iii)"> <text>Then, multiply this sum by 85 percent;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>For special education classrooms, multiply the number of special education classrooms by the approved capacity; and</text> </paragraph> <paragraph num="(c)"> <text>Then, add results from §C(4)(a) and (b) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Open-space classroom capacity is calculated according to the following formula:</text> <paragraph num="(a)"> <text>Divide the open space area by a square foot number the IAC determines;</text> </paragraph> <paragraph num="(b)"> <text>Next, round the quotient to the nearest whole number;</text> </paragraph> <paragraph num="(c)"> <text>Then, multiply the rounded quotient by the State-approved capacity for the secondary grade; and</text> </paragraph> <paragraph num="(d)"> <text>Finally, multiply by 85 percent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Career and Technology Programs.</text> <paragraph num="(1)"> <text>Career and technology programs are occupational programs approved by the Maryland State Department of Education.</text> </paragraph> <paragraph num="(2)"> <text>The approved capacity for a career and technology classroom is as the IAC or its designee determines on a case-by-case basis.</text> </paragraph> <paragraph num="(3)"> <text>State-rated capacity for an individual career and technology program is calculated according to the following formula:</text> <paragraph num="(a)"> <text>Multiply the number of classrooms by the approved capacity for that career and technology classroom;</text> </paragraph> <paragraph num="(b)"> <text>Next, add the resulting products; and</text> </paragraph> <paragraph num="(c)"> <text>Then, multiply by 85 percent.</text> </paragraph> </paragraph> </paragraph> <paragraph num="E."> <text>The IAC or its designee shall determine on a case-by-case basis the State-rated capacity for a school that is not defined in §§B, C, and D of this regulation.</text> </paragraph> <paragraph num="F."> <text>Cooperative use space dedicated in a written agreement to use by a non-LEA entity may not be included in the State-rated capacity unless that space is used for LEA educational purposes during the LEA’s standard school operating hours.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="State Cost Share Percentage."> <paragraph num="A."> <text>The State may fund eligible costs of approved public school construction projects according to the State cost share percentage established in this regulation.</text> </paragraph> <paragraph num="B."> <text>Percentages.</text> <paragraph num="(1)"> <text>The minimum State share of public school construction funding for eligible costs of approved projects is 50 percent.</text> </paragraph> <paragraph num="(2)"> <text>Reductions in the cost share may not exceed 5 percent.</text> </paragraph> <paragraph num="(3)"> <text>Reduction in the cost share of 4 percent or more shall be phased in over the 2-year period with a reduction of 2 percentage points in the first year and the remaining 2 or 3 percentage points in the second year.</text> </paragraph> <paragraph num="(4)"> <text>The maximum State share of public school construction funding is 100 percent of eligible costs of approved projects.</text> </paragraph> <paragraph num="(5)"> <text>The State share percentage for the Maryland School for the Blind shall be 93 percent of eligible costs of approved projects.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Revisions to Percentages.</text> <paragraph num="(1)"> <text>By October 2018 and every 2 years thereafter, the IAC shall update, approve, and publish to the IAC’s website the cost share percentage to be applied to projects submitted for approval in the Fiscal Year.</text> </paragraph> <paragraph num="(2)"> <text>The IAC shall use the formula in §D of this regulation to recommend revisions to the State cost share percentage for each county.</text> </paragraph> </paragraph> <paragraph num="D."> <text>LEA State Cost Share. The IAC shall add the following amounts to calculate the recommended revised cost share amounts:</text> <paragraph num="(1)"> <text>The LEA's current State share of the Foundation program divided by the Foundation program of the LEA as defined under Education Article, §5-202, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(2)"> <text>The current amount of State aid provided to the LEA by the guaranteed tax base program as defined under Education Article, §5-210, Annotated Code of Maryland, divided by the Foundation program of the LEA;</text> </paragraph> <paragraph num="(3)"> <text>20 percent of the amount by which the LEA's free and reduced price meal percentage exceeds the Statewide free and reduced price meal percentage in the prior school year;</text> </paragraph> <paragraph num="(4)"> <text>5 percent if the county where the LEA is located is a Tier I county that has an unemployment rate greater than the average rate or number of percentage points identified in Economic Development Article, §1-101, Annotated Code of Maryland, or has met the average rate or number of percentage points identified in Economic Development Article, §1-101, Annotated Code of Maryland, at some time during the preceding 24-month period;</text> </paragraph> <paragraph num="(5)"> <text>5 percent if the county where the LEA is located is a Tier I county that has a median household income level below the level identified in Economic Development Article, §1-101, Annotated Code of Maryland, or has had a median household income level below the level identified in Economic Development Article, §1-101, Annotated Code of Maryland, at some time during the preceding 24-month period;</text> </paragraph> <paragraph num="(6)"> <text>The difference between the percent growth in the LEA's full-time equivalent enrollment, as defined by Education Article, §5-202, Annotated Code of Maryland, from the 6th prior year to the prior year, and the percent growth in the Statewide full-time equivalent enrollment from the 6th prior year to the prior year, provided this calculation results in a positive number; and</text> </paragraph> <paragraph num="(7)"> <text>10 times the amount by which the county's and local board’s total outstanding school construction debt at the end of the 2nd prior fiscal year plus the county's total school construction expenditures from its operating budget from the 4th to the 2nd prior fiscal years exceeds 1 percent of the county wealth, as defined by Education Article, §5-202, Annotated Code of Maryland, for the prior fiscal year.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Project Based Add-Ons to State Cost Share. The IAC shall add the following amounts to an LEA’s State Cost share of a proposed school construction project as applicable:</text> <paragraph num="(1)"> <text>10 percentage points if the proposed school construction project, when the LEA submits the project for approval to the IAC, is at a school with a concentration of poverty level, as defined in Education Article, §5-223, Annotated Code of Maryland, of 80 percent or greater;</text> </paragraph> <paragraph num="(2)"> <text>5 percentage points if the proposed school construction project, when the LEA submits the project for approval to the IAC, is at a school with a concentration of poverty level, as defined in Education Article, §5-223, Annotated Code of Maryland, of less than 80 percent but greater than 55 percent;</text> </paragraph> <paragraph num="(3)"> <text>5 percentage points if the proposed school construction project is at a school that, in the most recent school maintenance effectiveness assessment by the IAC, received an assessment rating of:</text> <paragraph num="(a)"> <text>Good;</text> </paragraph> <paragraph num="(b)"> <text>Superior; or</text> </paragraph> <paragraph num="(c)"> <text>Adequate and the school's most recent school facility assessment average percentage of expected useful lifespan is at least 120 percent; and</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>5 percentage points if the proposed school construction project is a net-zero school.</text> </paragraph> </paragraph> <paragraph num="F."> <text>For FY 2025 and 2026, the State share percentages of public school construction funding for eligible costs of approved projects are as follows:</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Maximum State Construction Allocation."> <paragraph num="A."> <text>The maximum State construction allocation is the maximum amount the State may fund of eligible costs for each public school construction project.</text> </paragraph> <paragraph num="B."> <text>The maximum State construction allocation for each approved public school construction project is set in the State capital improvement program.</text> </paragraph> <paragraph num="C."> <text>The maximum State construction allocation is set at the first year of construction funding approval.</text> </paragraph> <paragraph num="D."> <text>The actual funding is based on the costs of approved contracts and may be less than the maximum State construction allocation.</text> </paragraph> <paragraph num="E."> <text>Gross Area Baselines.</text> <paragraph num="(1)"> <text>The gross area baseline is the product of the approved student enrollment and the baseline gross square footage per student, and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.</text> </paragraph> <paragraph num="(2)"> <text>The approved student enrollment may be reduced only if the sum of available seat count in all adjacent schools is 15 percent or more of the project school’s enrollment.</text> </paragraph> <paragraph num="(3)"> <text>The baseline gross square footage per student is set by the IAC and may be adjusted by the IAC on a case-by-case basis, based upon presented evidence of program need.</text> </paragraph> <paragraph num="(4)"> <text>Gross Area Baseline Concentration of Poverty Add-On. School projects with a concentration of poverty level above 55 percent are eligible for a concentration of poverty square footage add-on, upon submission of a concentration of poverty square footage usage plan, based upon the following:</text> <paragraph num="(a)"> <text>School projects with an eligible enrollment of fewer than 600 students are eligible for a concentration of poverty add-on of up to 1,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 1,500 square feet.</text> </paragraph> <paragraph num="(b)"> <text>School projects with an eligible enrollment between 600 and 900 students are eligible for a concentration of poverty add-on of up to 1,500 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,000 square feet.</text> </paragraph> <paragraph num="(c)"> <text>School projects with an eligible enrollment of more than 900 students are eligible for a concentration of poverty add-on of up to 2,000 square feet plus the concentration of poverty level percentage points above 55 percent multiplied by 60 square feet, up to a maximum of 2,500 square feet.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>Gross Area Baseline English Learner Add-On. School projects with an English learner population above 10 percent are eligible for an English learner square footage add-on, based upon the following:</text> <paragraph num="(a)"> <text>School projects with an eligible enrollment of fewer than 600 students are eligible for an English learner add-on of 500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 1,500 square feet.</text> </paragraph> <paragraph num="(b)"> <text>School projects with an eligible enrollment between 600 and 900 students are eligible for an English learner add-on of 1,000 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,000 square feet.</text> </paragraph> <paragraph num="(c)"> <text>School projects with an eligible enrollment of more than 900 students are eligible for an English learner add-on of 1,500 square feet plus the number of percentage points of the project school populations of English learners above 10 percent, multiplied by 25 square feet, up to a maximum of 2,500 square feet.</text> </paragraph> </paragraph> <paragraph num="(6)"> <text>Gross Area Baseline Career and Technology Education Add-On. School projects approved for Career and Technology Education programs are eligible for a Career and Technology Education square footage add-on based upon the program size. Program sizes shall be regularly reviewed and updated by the IAC and published to the IAC website. Square footage allocations for program sizes are as follows:</text> <paragraph num="(a)"> <text>Extra small Career and Technology Education programs receive an add-on of 500 gross square feet.</text> </paragraph> <paragraph num="(b)"> <text>Small Career and Technology Education programs receive an add-on of 1,000 gross square feet.</text> </paragraph> <paragraph num="(c)"> <text>Medium Career and Technology Education programs receive an add-on of 3,000 gross square feet.</text> </paragraph> <paragraph num="(d)"> <text>Large Career and Technology Education programs receive an add-on of 4,000 gross square feet.</text> </paragraph> <paragraph num="(e)"> <text>Extra large Career and Technology Education programs receive an add-on of 6,000 gross square feet.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>The average Statewide per-square-foot school building cost that applies to each annual capital improvement program:</text> <paragraph num="(1)"> <text>Is established by July of the calendar year in which applications are submitted;</text> </paragraph> <paragraph num="(2)"> <text>Is based on:</text> <paragraph num="(a)"> <text>Bids received for new school construction in the prior year; and</text> </paragraph> <paragraph num="(b)"> <text>Cost information derived from industry sources;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>May be adjusted by the IAC to reflect market conditions before submission of the final State capital improvement program; and</text> </paragraph> <paragraph num="(4)"> <text>Projects that qualify for the Net-zero State Cost Share add-on pursuant to COMAR 14.39.02.06E(4) for which the applicant project receives a State cost share of 96 percent or greater in accordance with COMAR 14.39.02.06F and including the State Cost Share add-ons pursuant to COMAR 14.39.02.06E(1)—(3), may be eligible for an increase to the cost-per-square-foot described in this regulation equal to the value of a 5 percentage point increase in the State Cost Share for the project minus the value of the difference between 100 percent and the applicant project State cost share including add-ons pursuant to COMAR 14.39.02.06E(1)—(3).</text> </paragraph> </paragraph> <paragraph num="G."> <text>New Construction. The maximum State construction allocation for new construction is calculated according to either:</text> <paragraph num="(1)"> <text>The following formula:</text> <paragraph num="(a)"> <text>Multiply the lesser of the gross area baseline or the actual project gross area by the average Statewide per square foot school building cost, which is based on bids received for new school construction in the prior year and cost information derived from industry sources;</text> </paragraph> <paragraph num="(b)"> <text>Next, add site development costs, figured as a percentage of the building cost set forth in §F(1)(a) of this regulation;</text> </paragraph> <paragraph num="(c)"> <text>Finally, multiply by the State cost share percentage; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §G(1) of this regulation.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Renewal.</text> <paragraph num="(1)"> <text>The maximum State construction allocation for projects proposed to renew buildings or portions of buildings, 16 years or older, is calculated according to either:</text> <paragraph num="(a)"> <text>The following formula:</text> <paragraph num="(i)"> <text>Beginning with the oldest portion of the building, and using the gross area baseline as the upper limit, determine the eligible square footage of the renewal categorized according to the age group of the building portion containing the renewal;</text> </paragraph> <paragraph num="(ii)"> <text>Multiply the eligible square footage for each age group by the average Statewide per square-foot building cost, and then multiply each product by the percentage in §H(1)(a)(iii) of this regulation;</text> </paragraph> <paragraph num="(iii)"> <text>Age of building portion containing the renewal as measured from January 1 following the IAC December 31 submission of the preliminary State capital improvement program: 40 years or older—100 percent;31 to 39 years—85 percent; 26 to 30 years—75 percent; 21 to 25 years—65 percent; 16 to 20 years—50 percent; and 0 to 15 years—0 percent.</text> </paragraph> <paragraph num="(iv)"> <text>Add the products calculated in §H(1)(a)(ii) of this regulation;</text> </paragraph> <paragraph num="(v)"> <text>Next, add site development costs, figured as a percentage of total building costs set forth in §H(1)(a)(iv) of this regulation; and</text> </paragraph> <paragraph num="(vi)"> <text>Finally, multiply by the State cost share percentage; or</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>The estimated or actual cost of construction multiplied by the State cost share percentage, not to exceed the amount calculated in §H(1)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Adjustments to the Maximum State Construction Allocation for Renovation Projects. The IAC may:</text> <paragraph num="(a)"> <text>Subtract funding from the maximum State construction allocation that the State has approved for other projects less than 16 years old at that school; and</text> </paragraph> <paragraph num="(b)"> <text>Adjust the maximum State construction allocation for renovation of a building that exceeds the gross area baseline.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The State may not further participate in funding projects in the school within 15 years after the project is placed in service.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Renovation.</text> <paragraph num="(1)"> <text>The estimated cost of construction of a renovation may not exceed the estimated cost of construction for a renewal.</text> </paragraph> <paragraph num="(2)"> <text>The maximum State construction allocation for a renovation is calculated by multiplying the estimated costs of construction, including site work, by the State cost share percentage.</text> </paragraph> <paragraph num="(3)"> <text>At the time of contract award, the actual funding is based on the costs of items eligible for State participation, up to the maximum State construction allocation.</text> </paragraph> <paragraph num="(4)"> <text>Adjustments to Maximum State Construction Allocation for a Renovation.</text> <paragraph num="(a)"> <text>The IAC may subtract from the maximum State construction allocation funding approved for other projects not older than 15 years old at that school.</text> </paragraph> <paragraph num="(b)"> <text>If projects in the school have been funded within the previous 15 years, the LEA shall provide documentation to identify all previously funded scopes of work that may be replaced or upgraded in the renovation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>For a renovation, the new average year of completed construction of the building or portion of the building is determined by the average year of completed construction of the original building, plus the year of completed construction of the renovation, divided by 2.</text> </paragraph> <paragraph num="(6)"> <text>The State may further participate in funding projects in the school within 15 years after the project is placed in service.</text> </paragraph> </paragraph> <paragraph num="J."> <text>Addition. When a project involves an addition only, the IAC at its discretion may calculate the maximum State construction allocation according to either:</text> <paragraph num="(1)"> <text>The following formula:</text> <paragraph num="(a)"> <text>Subtract the existing square footage from the gross area baseline; and</text> </paragraph> <paragraph num="(b)"> <text>Then use the lesser of that amount or the actual area of the addition when calculating the maximum State construction allocation according to §E of this regulation; or</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The estimated or actual cost of construction multiplied by the State cost share percentage.</text> </paragraph> </paragraph> <paragraph num="K."> <text>Addition in Conjunction with Renewal or Renovation. When an addition involves both an addition and a renovation or a renewal, the maximum State construction allocation is established by adding the renewal or renovation maximum State construction allocation calculated according to §G or H of this regulation and the addition (new construction) maximum State construction allocation calculated according to §J of this regulation.</text> </paragraph> <paragraph num="L."> <text>Replacement.</text> <paragraph num="(1)"> <text>An LEA that proposes to abandon a facility or demolish more than 50 percent of the gross square footage of a facility shall submit a feasibility study to the reasonable satisfaction of the IAC.</text> </paragraph> <paragraph num="(2)"> <text>Based on the review of the feasibility study, the IAC may set the maximum State construction allocation for a replacement school based on the cost of renovating an existing school according to §H of this regulation, or the cost of building a new school according to §G of this regulation.</text> </paragraph> <paragraph num="(3)"> <text>If the State approves renovating or renewing an existing school and the LEA builds a replacement school, the IAC may reduce the maximum State construction allocation for that project by 15 percent.</text> </paragraph> <paragraph num="(4)"> <text>The IAC or its designee may waive the requirement for a feasibility study on submission of supporting documentation.</text> </paragraph> </paragraph> <paragraph num="M."> <text>Forward-Funded Project. If the maximum State construction allocation for a forward-funded project is calculated according to the formulas in §G, H, or I of this regulation, the following factors shall be applied:</text> <paragraph num="(1)"> <text>Gross area baseline that applied on the bid-opening date, using the 7-year enrollment projections applied as follows:</text> <paragraph num="(a)"> <text>If the bid opening was between October 1 and March 31, the prior September 30 enrollment is used as the approved student enrollment; and</text> </paragraph> <paragraph num="(b)"> <text>If the bid opening was between April 1 and September 30, the September 30 enrollment at the end of that time frame is used as the approved student enrollment;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Average square foot school building cost published by the IAC or its designee for the July that falls within the calendar year of the bid-opening date;</text> </paragraph> <paragraph num="(3)"> <text>State cost share percentage that applied on the bid-opening date; and</text> </paragraph> <paragraph num="(4)"> <text>For a renovation project, the amount of the awarded scope of work, not to exceed the maximum State construction allocation as developed in §H(1)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="N."> <text>Cooperative Use Space.</text> <paragraph num="(1)"> <text>The maximum State construction allocation for an approved project may include the State's share of eligible costs to construct or renovate up to 3,000 gross square feet of co-located or shared space to support LEA or community initiatives to serve school children and the general community.</text> </paragraph> <paragraph num="(2)"> <text>This cooperative use space is in addition to the size of typical school-function areas provided by the LEA.</text> </paragraph> <paragraph num="(3)"> <text>There shall be a written agreement between the county board and the space occupant that establishes the term and conditions.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Changes to the Maximum State Construction Allocation."> <text>After the IAC sets the maximum State construction allocation in the State capital improvement program:</text> <paragraph num="A."> <text>The IAC may reduce the maximum State construction allocation if a local board changes a board decision which served as justification for setting the approved scope of the project.</text> </paragraph> <paragraph num="B."> <text>The IAC may increase the maximum State construction allocation for a capital maintenance project when:</text> <paragraph num="(1)"> <text>The LEA submits:</text> <paragraph num="(a)"> <text>The final project scope of work; and</text> </paragraph> <paragraph num="(b)"> <text>A cost estimate developed by a design professional licensed in the State of Maryland or the bid tabulation for the project;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The LEA documents that the:</text> <paragraph num="(a)"> <text>LEA has taken reasonable actions to reduce construction costs; and</text> </paragraph> <paragraph num="(b)"> <text>Construction costs have resulted from exceptional circumstances; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The IAC determines that:</text> <paragraph num="(a)"> <text>The requested scope of work is eligible for State funding; and</text> </paragraph> <paragraph num="(b)"> <text>The scope of work and associated costs are reasonable.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>The IAC may increase the maximum State construction allocation for a project other than a capital maintenance project if the LEA documents that the:</text> <paragraph num="(1)"> <text>Project has critical impact on the LEA's budget;</text> </paragraph> <paragraph num="(2)"> <text>LEA has taken reasonable actions to reduce construction costs; and</text> </paragraph> <paragraph num="(3)"> <text>Construction costs that have resulted from exceptional circumstances or circumstances that are different from those that confront most projects in the State or region.</text> </paragraph> </paragraph> <paragraph num="D."> <text>The IAC may increase the maximum State construction allocation for a project that qualifies for the net zero add-on as described in COMAR 14.39.02.06E(4) after the establishment of the maximum State construction allocation upon submission of acceptable documentation to become eligible for the add-on, and only up to the amount that the project would have been eligible for had the net zero add-on been in place at the time of establishment of the maximum State construction allocation.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Project Development and Design Funding Allocation."> <paragraph num="A."> <text>The project development and design funding allocation is the maximum amount the State may fund of eligible project development and design costs for a public school construction project.</text> </paragraph> <paragraph num="B."> <text>The project development and design funding allocation for each approved public school project is set in the State capital improvement program.</text> </paragraph> <paragraph num="C."> <text>The project development and design funding allocation may not exceed 10 percent of a preliminary maximum State construction allocation as set forth in Regulation .06 of this chapter and as calculated in the year of the request for project development and design funding.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Rescinding Planning Approval."> <paragraph num="A."> <text>If, within 2 years after a project is approved for planning, no part of the project is under contract, the IAC may determine the project to be abandoned and rescind the planning approval.</text> </paragraph> <paragraph num="B."> <text>An LEA that seeks reapproval of a project whose planning approval has been rescinded shall submit a new planning request in a future local capital improvement program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Rescinding Funding Approval."> <paragraph num="A."> <text>If, within 2 years after funding is made available for a project, no part of the project is under contract, the IAC shall determine that the project is abandoned and rescind the funding approval.</text> </paragraph> <paragraph num="B."> <text>When the IAC rescinds funding approval, the IAC shall reserve the funding for another eligible project in the county in the current fiscal year or for eligible projects in the county in the next fiscal year.</text> </paragraph> <paragraph num="C."> <text>Funds reserved for a county that have not been used to place a project under contract within 2 years of the date the funds were reserved shall be available for any project approved in a future State capital improvement program.</text> </paragraph> <paragraph num="D."> <text>An LEA that seeks reapproval of a project whose funding approval has been rescinded shall submit a new funding request in a future local capital improvement program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Eligible Expenditures."> <text>The following expenditures may be eligible for State funding:</text> <paragraph num="A."> <text>Planning, including feasibility studies, programs, educational specifications, equipment specifications, and other planning work that occurs prior to the start of design.</text> </paragraph> <paragraph num="B."> <text>Design expenses and other ancillary costs, including architectural and engineering fees, construction management services, geotechnical surveys, and other services necessary to complete the architectural specifications for a school project.</text> </paragraph> <paragraph num="C."> <text>New construction, as follows:</text> <paragraph num="(1)"> <text>Construction of a new school facility, that is, work necessary to construct a new school facility, including building and site development;</text> </paragraph> <paragraph num="(2)"> <text>Additions to an existing facility, that is, work necessary to increase space at an existing school facility, including:</text> <paragraph num="(a)"> <text>Building and site development; and</text> </paragraph> <paragraph num="(b)"> <text>Work to physically integrate the addition into the existing school;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Replacement of a building or building portion, that is, work necessary to reconstruct a school facility that cannot be economically repaired or renovated, including building and site development; and</text> </paragraph> <paragraph num="(4)"> <text>Modular construction, that is, factory-fabricated structures that have the same quality systems and materials as used for permanent school construction and that meet the standards of the COMAR 05.02.04;</text> </paragraph> </paragraph> <paragraph num="D."> <text>Renewal or renovation, that is, the work necessary to restore and modernize an existing school facility or a portion of a facility that is 16 years or older;</text> </paragraph> <paragraph num="E."> <text>Capital maintenance projects as set forth in Regulation .16 of this chapter;</text> </paragraph> <paragraph num="F."> <text>State-owned relocatable facilities as set forth in Regulation .16 of this chapter;</text> </paragraph> <paragraph num="G."> <text>Temporary facilities, including utilities and relocatable facilities, that are necessary on-site during construction of a State-funded project;</text> </paragraph> <paragraph num="H."> <text>Equipment and furnishings as defined by the IAC;</text> </paragraph> <paragraph num="I."> <text>Real time utilities metering measurement and verification equipment as defined by the IAC;</text> </paragraph> <paragraph num="J."> <text>Off-site development costs required by local, State, or federal agencies;</text> </paragraph> <paragraph num="K."> <text>Emergency repairs as set forth in Regulation .17 of this chapter;</text> </paragraph> <paragraph num="L."> <text>E-rate eligible special construction broadband infrastructure projects, including offsite development costs, for E-rate eligible applicants consistent with 47 C.F.R. 54.505, through the State funding of grants to local boards of education.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Ineligible Expenditures."> <text>The following expenditures are ineligible for State funding:</text> <paragraph num="A."> <text>Site acquisition;</text> </paragraph> <paragraph num="B."> <text>Offsite development costs except those listed as eligible in Regulation .10 of this chapter;</text> </paragraph> <paragraph num="C."> <text>Master plans;</text> </paragraph> <paragraph num="D."> <text>Projects proposed in buildings or portions of buildings that have been constructed or renovated within 15 years, except that building or portion of a building in which a renovation was performed is eligible for additional work within 15 years of the date that the renovation construction was completed;</text> </paragraph> <paragraph num="E."> <text>Capital maintenance projects to replace, upgrade, or renovate building systems that have been replaced, upgraded, or renovated within 15 years;</text> </paragraph> <paragraph num="F."> <text>Ancillary construction costs such as:</text> <paragraph num="(1)"> <text>Permits;</text> </paragraph> <paragraph num="(2)"> <text>Bid advertising;</text> </paragraph> <paragraph num="(3)"> <text>Water and sewer connection charges;</text> </paragraph> <paragraph num="(4)"> <text>Models; or</text> </paragraph> <paragraph num="(5)"> <text>Renderings;</text> </paragraph> </paragraph> <paragraph num="G."> <text>Leasing or purchasing school facilities except as provided in COMAR 14.39.05;</text> </paragraph> <paragraph num="H."> <text>Construction inspection services;</text> </paragraph> <paragraph num="I."> <text>Relocation costs for site occupants;</text> </paragraph> <paragraph num="J."> <text>Salaries of local employees;</text> </paragraph> <paragraph num="K."> <text>Construction of administrative or support facilities, including regional or central administrative offices, warehousing, resource, printing, vehicle storage, and maintenance facilities;</text> </paragraph> <paragraph num="L."> <text>Equipment, furnishings, and artwork with a median useful life of less than 15 years as defined by the IAC;</text> </paragraph> <paragraph num="M."> <text>Maintenance; and</text> </paragraph> <paragraph num="N."> <text>Temporary storage.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="School Site Selection."> <paragraph num="A."> <text>An LEA shall submit a proposed site to the Interagency Commission on School Construction for:</text> <paragraph num="(1)"> <text>Acquisition of a new site planned for a new or replacement school that will be requested for Local Planning approval within 3 years;</text> </paragraph> <paragraph num="(2)"> <text>Use of an existing site for a new school or a replacement school that adds capacity; or</text> </paragraph> <paragraph num="(3)"> <text>Redesignation of an existing site for a new school or a replacement school that adds capacity.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Unless a waiver is granted in accordance with Regulation .31 of this chapter, a proposed site for a new school or a replacement school that adds capacity shall be in a priority funding area.</text> </paragraph> <paragraph num="C."> <text>The IAC and State Superintendent of Schools shall approve or disapprove an LEA's school site selection based on:</text> <paragraph num="(1)"> <text>Consistency with the county comprehensive plan;</text> </paragraph> <paragraph num="(2)"> <text>The growth element of applicable municipal comprehensive plans;</text> </paragraph> <paragraph num="(3)"> <text>Available sewer and water service;</text> </paragraph> <paragraph num="(4)"> <text>Transportation options; and</text> </paragraph> <paragraph num="(5)"> <text>The State's economic growth policies to ensure that facilities in established neighborhoods are of equal quality to new schools, including location of a new school or a replacement school that adds capacity within a priority funding area.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Before submitting the request for site approval to the IAC, the LEA shall:</text> <paragraph num="(1)"> <text>Submit the school site selection to the Maryland Department of Planning for State Clearinghouse review; [and]</text> </paragraph> <paragraph num="(2)"> <text>Resolve any issues brought up in the State Clearinghouse Review; and</text> </paragraph> <paragraph num="(3)"> <text>Submit the school site selection to the State Superintendent for approval or disapproval in accordance with Education Article, §2-303(f), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="E."> <text>When submitting the site for IAC approval, the LEA shall include:</text> <paragraph num="(1)"> <text>The local board of education’s approval of the school site acquisition;</text> </paragraph> <paragraph num="(2)"> <text>The State Superintendent’s approval of the school site acquisition; and</text> </paragraph> <paragraph num="(3)"> <text>For a new school or a replacement school that adds capacity located outside of a priority funding area, a request for a waiver in accordance with Regulation .31 of this chapter.</text> </paragraph> </paragraph> <paragraph num="F."> <text>The IAC may recommend including a project for planning approval in the State capital improvement program only if the school site has been approved or re-approved by the IAC and the State Superintendent in the preceding 3 years.</text> </paragraph> <paragraph num="G."> <text>Priority Funding Area Review.</text> <paragraph num="(1)"> <text>Except as provided in §G(2) of this regulation, priority funding area review shall be conducted by the IAC for sites for new schools and replacement schools that add capacity and are proposed outside of priority funding areas, including review of requests for:</text> <paragraph num="(a)"> <text>Acquisition of new sites for new schools or replacement schools that add capacity;</text> </paragraph> <paragraph num="(b)"> <text>Reapproval of existing sites that were initially approved after the effective date of this regulation; or</text> </paragraph> <paragraph num="(c)"> <text>Redesignation of existing sites that were initially approved after the effective date of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The following sites for school construction projects are not subject to priority funding area review:</text> <paragraph num="(a)"> <text>A site for a replacement school when there is no increase of capacity; or</text> </paragraph> <paragraph num="(b)"> <text>A site granted a Priority Funding Area Waiver in accordance with Regulation .31 of this chapter.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="New Construction, Renewal, and Renovation Projects."> <paragraph num="A."> <text>This regulation applies to new construction, renewal, and renovation projects approved in the State capital improvement program.</text> </paragraph> <paragraph num="B."> <text>Architects and Engineers. The LEA shall ensure that:</text> <paragraph num="(1)"> <text>The plans, specifications, and related documents are developed under the supervision and responsibility of an architect or engineer who is licensed to practice in the State, unless waived by the IAC or its designee;</text> </paragraph> <paragraph num="(2)"> <text>Unless waived by the IAC or its designee, the design of site development or structural, mechanical, or electrical systems includes the design services of a professional engineer licensed to practice in the State with experience in civil, structural, mechanical, or electrical engineering;</text> </paragraph> <paragraph num="(3)"> <text>The architect/engineer agreement includes:</text> <paragraph num="(a)"> <text>Cost control provisions;</text> </paragraph> <paragraph num="(b)"> <text>Assurance that the project design is in accordance with the Department of General Services procedure manual for professional services standards for energy conservation, life cycle costs analysis, and roofing; and</text> </paragraph> <paragraph num="(c)"> <text>IAC or its designee review and approval of the schematic, design development, and construction documents as required.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Educational Specifications.</text> <paragraph num="(1)"> <text>Unless an LEA is certified to complete review of educational specifications as provided by Education Article §5-314, Annotated Code of Maryland, the LEA shall submit the projects educational specifications to the IAC for every new construction, renewal, renovation, and renovation addition project approved in the State capital improvement program.</text> </paragraph> <paragraph num="(2)"> <text>The IAC or its designee shall notify the LEA of concerns and recommendations about the educational specifications.</text> </paragraph> <paragraph num="(3)"> <text>The LEA shall resolve the IAC's issues to the reasonable satisfaction of the IAC or its designee.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Feasibility Studies.</text> <paragraph num="(1)"> <text>An LEA that proposes to renew or renovate more than 25 percent of the gross square footage of a facility shall submit a feasibility study.</text> </paragraph> <paragraph num="(2)"> <text>The IAC or its designee shall notify the LEA of concerns and recommendations about the feasibility study.</text> </paragraph> <paragraph num="(3)"> <text>The LEA shall resolve the IAC’s issues to the reasonable satisfaction of the IAC or its designee.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Cost Analysis. An LEA that proposes to renew a facility shall produce evidence that the renewal is more cost effective than a new or replacement school.</text> </paragraph> <paragraph num="F."> <text>Schematic Designs, Design Development Documents, and Construction Documents.</text> <paragraph num="(1)"> <text>Unless the LEA is certified to complete review of schematic design, design development, and construction documents as provided by Education Article §5-314, Annotated Code of Maryland, the LEA shall submit to the IAC or its designee for review and approval of:</text> <paragraph num="(a)"> <text>Schematic designs, before the LEA proceeds to design development documents;</text> </paragraph> <paragraph num="(b)"> <text>Design development documents, before the LEA proceeds to construction documents; and</text> </paragraph> <paragraph num="(c)"> <text>Construction documents, before the LEA issues the solicitation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The LEA shall submit to the IAC or its designee for review and approval information regarding the consistency of the project with the Department of General Services procedure manual for professional services standards for energy conservation, life cycle cost analysis, and roofing.</text> </paragraph> <paragraph num="(3)"> <text>Schematic designs, design development documents, and construction documents must be approved by local boards of education prior to their submission to the IAC.</text> </paragraph> </paragraph> <paragraph num="G."> <text>For new school construction projects that utilize State funding, the LEA shall include waste disposal infrastructure in the design documents submitted to the commission that includes a sink for liquid waste and a place for the disposal of:</text> <paragraph num="(1)"> <text>Trash;</text> </paragraph> <paragraph num="(2)"> <text>Recyclables; and</text> </paragraph> <paragraph num="(3)"> <text>Food scraps.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Pedestrian Safety Plans.</text> <paragraph num="(1)"> <text>Definitions.</text> <paragraph num="(a)"> <text>“High-Density county” refers to one of the following jurisdictions:</text> <paragraph num="(i)"> <text>Anne Arundel County;</text> </paragraph> <paragraph num="(ii)"> <text>Baltimore City;</text> </paragraph> <paragraph num="(iii)"> <text>Baltimore County;</text> </paragraph> <paragraph num="(iv)"> <text>Howard County;</text> </paragraph> <paragraph num="(v)"> <text>Montgomery County; or</text> </paragraph> <paragraph num="(vi)"> <text>Prince George’s County.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>“Low-Density County” means any county in the State of Maryland not listed in §H(1)(a) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>A County Board in a high-density county seeking State funds for a new school, renewal, or addition to an existing school that would increase the capacity of the school by more than 100 students shall submit a pedestrian safety plan to the IAC.</text> </paragraph> <paragraph num="(3)"> <text>A County Board in a low-density county seeking State funds for a project in a city with more than 10,000 residents for a new school, renewal, or addition to an existing school that would increase the capacity by more than 100 students shall submit a pedestrian safety plan to the IAC.</text> </paragraph> <paragraph num="(4)"> <text>A pedestrian safety plan shall:</text> <paragraph num="(a)"> <text>Be developed in collaboration with:</text> <paragraph num="(i)"> <text>The County Department of Transportation or equivalent agency of the jurisdiction of the County Board submitting the plan; and,</text> </paragraph> <paragraph num="(ii)"> <text>The State Highway Administration;</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Be limited to the area surrounding the school for which the County Board will not provide transportation to students;</text> </paragraph> <paragraph num="(c)"> <text>Identify existing and potential safe routes for students to walk or bike to school;</text> </paragraph> <paragraph num="(d)"> <text>Evaluate the infrastructure, including sidewalk infrastructure, along existing and potential pedestrian or cyclist routes to the school to determine whether increased capacity is necessary;</text> </paragraph> <paragraph num="(e)"> <text>Analyze existing and potential school zones, including the need for expanding school zones on State and county roads; and</text> </paragraph> <paragraph num="(f)"> <text>Include documentation of public participation and input related to the pedestrian safety plan, including minutes from a public hearing or meeting and written comments.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The IAC shall approve a pedestrian safety plan if the plan complies with §H(4) of this regulation.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Procurement. The LEA shall procure construction in compliance with COMAR 14.39.03. The IAC may rescind project approval if the procurement does not comply with these requirements.</text> </paragraph> <paragraph num="J."> <text>Construction Inspection. The LEA shall ensure that each construction project is adequately inspected.</text> </paragraph> <paragraph num="K."> <text>Change Orders. The LEA shall maintain contingency funds for change orders. The LEA may issue change orders without prior approval of the IAC or its designees.</text> </paragraph> <paragraph num="L."> <text>State Payments.</text> <paragraph num="(1)"> <text>The LEA shall submit to the IAC requests for payment.</text> </paragraph> <paragraph num="(2)"> <text>The IAC or its designee shall review the request for payment for determination of whether the request constitutes an eligible expense and whether payment is within the maximum State construction allocation.</text> </paragraph> <paragraph num="(3)"> <text>The State may:</text> <paragraph num="(a)"> <text>Make payment directly to the contractor or vendor;</text> </paragraph> <paragraph num="(b)"> <text>Reimburse the LEA if documentation indicates that the contractor or vendor has been paid the amount requested for reimbursement; or</text> </paragraph> <paragraph num="(c)"> <text>Make payment to an entity identified by the LEA.</text> </paragraph> </paragraph> </paragraph> <paragraph num="M."> <text>Project Close-Out. Not later than 180 days after final payment to the contractors, the LEA shall submit to the IAC:</text> <paragraph num="(1)"> <text>A close-out cost summary using a form provided by the IAC; and</text> </paragraph> <paragraph num="(2)"> <text>The following information:</text> <paragraph num="(a)"> <text>Contractor's final requisition including a listing of all approved change orders;</text> </paragraph> <paragraph num="(b)"> <text>The architect's certificate of completion; and</text> </paragraph> <paragraph num="(c)"> <text>The LEA's certificate of acceptance.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Capital Maintenance Projects."> <paragraph num="A."> <text>This regulation applies to capital maintenance projects approved in the State capital improvement program. Capital maintenance projects may also be referred to as “systemic renovation” projects.</text> </paragraph> <paragraph num="B."> <text>A capital maintenance project:</text> <paragraph num="(1)"> <text>Extends for at least 15 years the life of a properly maintained school building or component that is 16 years old or older;</text> </paragraph> <paragraph num="(2)"> <text>Installs, upgrades, replaces, or renovates one of the following building systems or system components:</text> <paragraph num="(a)"> <text>Architectural and structural;</text> </paragraph> <paragraph num="(b)"> <text>Mechanical;</text> </paragraph> <paragraph num="(c)"> <text>Plumbing;</text> </paragraph> <paragraph num="(d)"> <text>Electrical;</text> </paragraph> <paragraph num="(e)"> <text>Fire safety;</text> </paragraph> <paragraph num="(f)"> <text>Communications; and</text> </paragraph> <paragraph num="(g)"> <text>Vertical conveying systems; and</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>May include reasonably related components of other building systems as determined by the IAC or its designee.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Requests.</text> <paragraph num="(1)"> <text>An LEA may submit a request to the IAC to fund a capital maintenance project in the following circumstances:</text> <paragraph num="(a)"> <text>The project has not been released for solicitation; or</text> </paragraph> <paragraph num="(b)"> <text>The project has been released for solicitation after being deemed eligible but deferred due to fiscal constraints by the IAC in a prior fiscal year and has design development and construction document approvals by the IAC.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The request may only be for eligible expenditures in a project for which the total estimated construction cost is:</text> <paragraph num="(a)"> <text>At least $200,000; or</text> </paragraph> <paragraph num="(b)"> <text>Less than $200,000 but more than $100,000 when the LEA does not have any capital maintenance project requests that exceed $200,000 in estimated construction costs.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A county board may bundle, for approval and procurement purposes:</text> <paragraph num="(a)"> <text>Similar capital maintenance projects at different schools; and</text> </paragraph> <paragraph num="(b)"> <text>Interrelated capital maintenance projects at a single school.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>Procedures. The requirements of Regulation .15B, F, and I—M of this chapter and COMAR 14.39.03 apply to capital maintenance projects approved in the State capital improvement program.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".17" heading="State-Owned Relocatable Facilities."> <paragraph num="A."> <text>This regulation applies to State-owned relocatable projects approved in the State capital improvement program.</text> </paragraph> <paragraph num="B."> <text>A relocatable project is one in which the State:</text> <paragraph num="(1)"> <text>Provides a relocatable facility to an LEA, including moving and installing the facility; and</text> </paragraph> <paragraph num="(2)"> <text>Contributes funding only to the initial installation and the final removal of the relocatable facility.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Requests.</text> <paragraph num="(1)"> <text>An LEA may submit a request to the IAC for relocatable facilities in its local capital improvement program.</text> </paragraph> <paragraph num="(2)"> <text>The request may only be to fund installation of relocatables for the relief of overcrowding, special programs, interim classroom facilities while an approved school construction project is constructed, or an emergency.</text> </paragraph> </paragraph> <paragraph num="D."> <text>IAC Review. The IAC shall evaluate relocatable facilities funding requests using the following factors:</text> <paragraph num="(1)"> <text>The proposed use of the facility at a public school;</text> </paragraph> <paragraph num="(2)"> <text>Whether the relocatable facility will be in use for at least 2 years after installation at the requested site; and</text> </paragraph> <paragraph num="(3)"> <text>Whether the relocatable facility can be installed in a manner that will not interfere with work associated with proposed renovations, additions, or new construction.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Procedures. The provisions of Regulation .14B, E(1) and (2)(b), and F—I of this chapter apply to relocatable facility projects approved in the State capital improvement program.</text> </paragraph> <paragraph num="F."> <text>LEA Responsibility After Installation.</text> <paragraph num="(1)"> <text>After installation, the LEA is responsible for obtaining appropriate insurance and maintaining the relocatable facility. These include:</text> <paragraph num="(a)"> <text>Property damage insurance at least in replacement value amount, naming the State and the LEA as payees;</text> </paragraph> <paragraph num="(b)"> <text>Personal liability insurance;</text> </paragraph> <paragraph num="(c)"> <text>Drawings, specifications, operating instructions, warranties, and keys associated with the installation; and</text> </paragraph> <paragraph num="(d)"> <text>A log of completed maintenance.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The LEA shall comply with the Federal Asbestos Hazard Emergency Response Act.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Repairs After Installation.</text> <paragraph num="(1)"> <text>Except as provided in §G(2) of this regulation, the State may contribute funds, up to the State cost share, toward renovation of relocatable facilities.</text> </paragraph> <paragraph num="(2)"> <text>The State may not contribute funds for renovation necessary because of vandalism or lack of proper maintenance.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Surplus Property. The IAC may declare a State-owned relocatable facility to be surplus property.</text> <paragraph num="(1)"> <text>LEAs who request the disposal of a State-owned relocatable facility must have the request approved by the IAC prior to the disposal of the unit.</text> </paragraph> <paragraph num="(2)"> <text>All disposals of State-owned property, including relocatable facilities, are required to follow the Maryland Department of General Services’ disposal procedure.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".18" heading="Emergency Repairs."> <paragraph num="A."> <text>An emergency condition is a condition in a school building or on school grounds that:</text> <paragraph num="(1)"> <text>Presents an immediate health or safety hazard, or a threat of severe damage to the school building or grounds; and</text> </paragraph> <paragraph num="(2)"> <text>Could not have been reasonably foreseen through regular inspections or corrected through a regular preventive maintenance program.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The IAC may fund eligible costs of correcting an emergency condition according to the State cost share percentage established in Regulation .05 of this chapter. Funding for emergency repairs is separate from the State capital improvement program.</text> </paragraph> <paragraph num="C."> <text>Requests.</text> <paragraph num="(1)"> <text>An LEA shall submit a request to the IAC for funds to correct an emergency condition not later than 6 months after project completion.</text> </paragraph> <paragraph num="(2)"> <text>The request may only be for eligible costs that total at least $10,000.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Funding. The IAC may:</text> <paragraph num="(1)"> <text>Provide the funds to the LEA in advance of the project start or after project completion; and</text> </paragraph> <paragraph num="(2)"> <text>Determine whether the emergency repair funds will be deducted from the maximum State construction allocation for future building renewals and renovations based on the nature and cost of the emergency repairs.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".19" heading="Maintenance."> <paragraph num="A."> <text>Comprehensive Maintenance Plan.</text> <paragraph num="(1)"> <text>A comprehensive maintenance plan is a written plan approved by the local board of education that describes a strategy for maintaining public school facilities.</text> </paragraph> <paragraph num="(2)"> <text>Annually, each LEA shall submit to the IAC a comprehensive maintenance plan that is compatible with the local educational facilities master plan and the local capital improvement program.</text> </paragraph> <paragraph num="(3)"> <text>The IAC or its designee shall notify the LEA of concerns and recommendations about the comprehensive maintenance plan.</text> </paragraph> <paragraph num="(4)"> <text>The LEA shall resolve the IAC's issues to the reasonable satisfaction of the IAC or its designee.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The IAC may determine a project is ineligible for planning approval or funding approval for an existing school if:</text> <paragraph num="(1)"> <text>The school is not properly maintained; or</text> </paragraph> <paragraph num="(2)"> <text>The LEA does not have an adequate preventive maintenance program.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Maintenance Surveys.</text> <paragraph num="(1)"> <text>Annual Surveys.</text> <paragraph num="(a)"> <text>The IAC shall annually survey the maintenance conditions at selected schools in each LEA. The survey shall rate:</text> <paragraph num="(i)"> <text>Buildings and site components at the schools surveyed; and</text> </paragraph> <paragraph num="(ii)"> <text>Each school overall.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Within 45 days of receiving notice from the IAC or its designee that a school has been rated less than adequate in any category of building or site component, the LEA shall submit to the IAC a plan of how and when the deficiencies will be corrected.</text> </paragraph> <paragraph num="(c)"> <text>If a condition is identified that presents a hazard to occupants of the building or the threat of serious damage to the building, the LEA shall take immediate corrective action and notify the IAC of the steps it has taken.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Annual Report. The IAC shall annually publish a report summarizing the annual surveys.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".20" heading="Aging Schools Program."> <paragraph num="A."> <text>There is an Aging Schools Program. The Aging Schools Program is separate from the State capital improvement program.</text> </paragraph> <paragraph num="B."> <text>Purpose. An LEA may use Aging Schools Program funds for capital improvements, repairs, and deferred maintenance of school buildings or building components that are 16 years old or older.</text> </paragraph> <paragraph num="C."> <text>Funding.</text> <paragraph num="(1)"> <text>Allocations for each LEA are set forth in Education Article §5-324, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>The State cost share percentage does not apply to projects funded through the Aging Schools Program. The State may fund all eligible costs of an approved Aging Schools Program project. An LEA may provide additional funds to increase the scope of work or cost for an approved project.</text> </paragraph> <paragraph num="(3)"> <text>An LEA may not use Aging Schools Program funds to supplement the State allocation received for any other project.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Requests. An LEA may submit a request to the IAC for allocated funds for an Aging Schools Program project at any time during the fiscal year of the allocation.</text> </paragraph> <paragraph num="E."> <text>IAC Review. The IAC or its designee shall evaluate Aging Schools Program project requests using the following factors:</text> <paragraph num="(1)"> <text>Type of work;</text> </paragraph> <paragraph num="(2)"> <text>Age of the building or building component;</text> </paragraph> <paragraph num="(3)"> <text>State capital improvement program;</text> </paragraph> <paragraph num="(4)"> <text>Local capital improvement program;</text> </paragraph> <paragraph num="(5)"> <text>School's current and projected enrollments; and</text> </paragraph> <paragraph num="(6)"> <text>Maryland Historic Trust review, if applicable.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Procurement. The LEA shall procure construction in compliance with COMAR 14.39.03.</text> </paragraph> <paragraph num="G."> <text>State Payment. The LEA shall submit to the IAC one request for payment per contract. The IAC or its designee shall review the request for payment for determination of whether the request comprises eligible expenditures and whether payment is within the allocation. The State shall pay the LEA through a single reimbursement at project completion.</text> </paragraph> <paragraph num="H."> <text>Ineligible Expenditures. The following expenditures are ineligible for funding under the Aging Schools Program:</text> <paragraph num="(1)"> <text>Expenditures set forth in Regulation .12 of this chapter, except maintenance; and</text> </paragraph> <paragraph num="(2)"> <text>Improvements to or the movement of relocatable facilities.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".21" heading="School Safety Grant Program."> <paragraph num="A."> <text>There is a School Safety Grant Program. The School Safety Grant Program is separate from the State capital improvement program.</text> </paragraph> <paragraph num="B."> <text>Purpose. An LEA may use the School Safety Grant Program to complete eligible school safety and security projects as identified by the IAC in consultation with the Center for School Safety.</text> </paragraph> <paragraph num="C."> <text>LEAs shall follow the Administrative Procedure Guide School Safety Grant Program.</text> </paragraph> <paragraph num="D."> <text>Procurement. The LEA shall procure construction in compliance with COMAR 14.39.03.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".22" heading="Change in School Status."> <paragraph num="A."> <text>An LEA shall report to the IAC changes in:</text> <paragraph num="(1)"> <text>A school name; and</text> </paragraph> <paragraph num="(2)"> <text>Use of a school when the school will be used for educational purposes other than as a school or when a school will be left vacant, as provided in Regulations .23 and .24 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The LEA shall request State approval to:</text> <paragraph num="(1)"> <text>Grant easements or rights-of-way on school property;</text> </paragraph> <paragraph num="(2)"> <text>Lease a portion of a school, as provided in Regulations .23 and .24 of this chapter; and</text> </paragraph> <paragraph num="(3)"> <text>Transfer a school site or a school building when the school is no longer needed for school purposes, as provided in Regulation .24 of this chapter.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".23" heading="Temporary or Partial Change in School Use."> <paragraph num="A."> <text>When an LEA uses more than 10 percent of a school building for educational purposes other than as a school for 5 years or less, the LEA shall notify the IAC of the use, the anticipated time for the use, and the expected date for reactivation as a school.</text> </paragraph> <paragraph num="B."> <text>When an LEA leases more than 10 percent of a school building for 5 years or less:</text> <paragraph num="(1)"> <text>The LEA shall request IAC approval to lease by providing the IAC the information in §A of this regulation and a copy of the proposed lease; and</text> </paragraph> <paragraph num="(2)"> <text>The IAC may require the LEA to:</text> <paragraph num="(a)"> <text>Pay the State a proportional share of the lease proceeds based on the proportion of the State's investment in the school; and</text> </paragraph> <paragraph num="(b)"> <text>Assume the outstanding debt remaining for bonds, the proceeds of which were used to construct or renovate the school.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>When an LEA leaves more than 10 percent of a school building vacant for 5 years or less:</text> <paragraph num="(1)"> <text>The LEA shall report the vacancy to the IAC by providing the information in §A of this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>The IAC may require the LEA to assume the outstanding debt remaining for bonds, the proceeds of which were used to construct or renovate the school.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".24" heading="Non-Public School Use Exceeding 5 Years."> <text>When the LEA uses more than 10 percent of a school building other than as a public school for more than 5 years and the State has debt remaining for bonds, the proceeds of which were used to construct or renovate that school, the IAC may require the LEA to pay a proportion of any lease proceeds and assume the remaining State debt, all calculated as of the date the LEA first began to use the school for purposes other than as a school.</text> </regulation> <regulation prefix="Regulation" num=".25" heading="Local Board Transfer of School Property to County Government."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="(2)"> <text>Terms Defined.</text> <paragraph num="(a)"> <text>“School property” means any land, school site, or school building;</text> </paragraph> <paragraph num="(b)"> <text>” Local board transfer to county government” includes, in the case of Baltimore City, the City's change of the dedicated use of the property.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Local Board Transfer to County Government.</text> <paragraph num="(1)"> <text>If, with the approval of the State Superintendent of Schools, a local board determines that any school property is no longer needed for school purposes, the local board shall transfer the property to the county government.</text> </paragraph> <paragraph num="(2)"> <text>The local board shall submit a request to the IAC for approval to transfer the school property to the county government.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The IAC may approve, disapprove, or conditionally approve the request to transfer the school property to the county government. The IAC may require that the transfer documents specifically incorporate the conditions.</text> </paragraph> <paragraph num="D."> <text>The local board shall affirm in the request that the county concurs with the local board's intention to transfer the property and commits to repayment of outstanding bond debt if repayment is required.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".26" heading="County Government Disposition of School Property."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. “School property” means any land, school site, or school building.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A county government:</text> <paragraph num="(1)"> <text>May use, sell, lease, or otherwise dispose of, except by gift, any former school property in accordance with this regulation; and</text> </paragraph> <paragraph num="(2)"> <text>Is encouraged to use the State Clearinghouse or similar procedures to make government agencies aware of the availability of former school property.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A county government proposing to dispose of former school property shall submit to the IAC a request for approval to dispose. The IAC shall review the request and may approve, disapprove, or conditionally approve the request to dispose of the former school property. The IAC may require that the disposition documents specifically incorporate the conditions.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".27" heading="Assumption of State Debt, Capital Lease Financing Balances, and Disposition Proceeds."> <paragraph num="A."> <text>Pursuant to Education Article, §5-308, Annotated Code of Maryland, the IAC:</text> <paragraph num="(1)"> <text>Shall require reimbursement of debt service from a county for a school property that:</text> <paragraph num="(a)"> <text>Is sold by the county government; or</text> </paragraph> <paragraph num="(b)"> <text>Meets all the following:</text> <paragraph num="(i)"> <text>Was initially constructed or substantially altered by additions, alterations, or renovations, and the cost of the construction at the time of execution exceeded $100,000, and the work was accomplished after February 1, 1971;</text> </paragraph> <paragraph num="(ii)"> <text>Is no longer used for school purposes;</text> </paragraph> <paragraph num="(iii)"> <text>Has had title transferred to county government;</text> </paragraph> <paragraph num="(iv)"> <text>Is being used for local governmental purposes by the State or county, or by any instrumentality of the State or county other than public education; and</text> </paragraph> <paragraph num="(v)"> <text>Has outstanding debt that exceeds $5,000;</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>May require reimbursement of debt service or capital lease financing balances, or both, from a county for a school property that:</text> <paragraph num="(a)"> <text>Has remaining State debt for bonds or capital lease financing balances;</text> </paragraph> <paragraph num="(b)"> <text>Is no longer used for school purposes;</text> </paragraph> <paragraph num="(c)"> <text>Has had title transferred to county government; and</text> </paragraph> <paragraph num="(d)"> <text>Is not being used for local governmental purposes by the State or county, or by any instrumentality of the State or county.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Reimbursement for Transferred School Building.</text> <paragraph num="(1)"> <text>A county government is not required to reimburse the State for outstanding debt service for a school building that is transferred to the county government in accordance with §A of this regulation until 2 years after the school building is transferred.</text> </paragraph> <paragraph num="(2)"> <text>After the 2-year period ends, the county government shall reimburse the State for outstanding debt service for a school building in the amount that the county government would have been required to pay when the school building was transferred to the county.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The IAC may require the county to pay the State a proportional share of the disposition proceeds based on the proportion of the State's investment in the school property.</text> </paragraph> <paragraph num="D."> <text>The IAC may establish any method of payment of the bond debt or the disposition proceeds including a lump sum payment or an assumption or re-assumption of existing bond debt.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".28" heading="Audits."> <paragraph num="A."> <text>The IAC or its designee may conduct financial audits and compliance audits of each LEA that receives State funds.</text> </paragraph> <paragraph num="B."> <text>Audit items may include:</text> <paragraph num="(1)"> <text>Transactions and balances reported on financial reports and close-out forms;</text> </paragraph> <paragraph num="(2)"> <text>LEA internal controls and management authorizations;</text> </paragraph> <paragraph num="(3)"> <text>Items ineligible for State participation; and</text> </paragraph> <paragraph num="(4)"> <text>Compliance with 'IAC regulations and IAC policies and procedures.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The LEA shall reconcile audit exceptions and back charges to the IAC's or its designee's satisfaction.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".29" heading="Reconsideration."> <paragraph num="A."> <text>Reconsideration of Staff Determination.</text> <paragraph num="(1)"> <text>An LEA dissatisfied with a determination made by the IAC’s designee may request the IAC to reconsider the determination.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall submit a written request for reconsideration to the IAC within 45 calendar days of the designee’s decisions.</text> </paragraph> <paragraph num="(3)"> <text>The written request for reconsideration shall include all additional information and documentation the LEA wants the IAC to consider.</text> </paragraph> <paragraph num="(4)"> <text>The IAC’s designee may submit to the IAC additional information and documentation it wants the IAC to consider in support of its determination.</text> </paragraph> <paragraph num="(5)"> <text>The IAC will notify the LEA of its decision.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Reconsideration of IAC Determination.</text> <paragraph num="(1)"> <text>An LEA dissatisfied with a determination made by the IAC, including determination of projects that were not approved by the IAC, may appeal the decision to the IAC in writing.</text> </paragraph> <paragraph num="(2)"> <text>The appeal shall be received by the IAC no later than 45 days following the IAC determination.</text> </paragraph> <paragraph num="(3)"> <text>The written appeal shall contain:</text> <paragraph num="(a)"> <text>The IAC determination from which the appeal is being taken, including funding requests for projects that were not approved by the IAC;</text> </paragraph> <paragraph num="(b)"> <text>Reasons in support of the appeal;</text> </paragraph> <paragraph num="(c)"> <text>A statement of the result sought; and</text> </paragraph> <paragraph num="(d)"> <text>Any supporting documents, exhibits, and affidavits.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Oral Argument.</text> <paragraph num="(a)"> <text>In its written appeal, the LEA may request to present oral argument to the IAC.</text> </paragraph> <paragraph num="(b)"> <text>Oral argument will not be allowed without a written request to the IAC.</text> </paragraph> <paragraph num="(c)"> <text>If oral argument is requested, the IAC shall notify the LEA of the date that the argument will be heard.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The IAC shall issue a decision to the LEA.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The IAC’s decision is a final decision of the agency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".30" heading="Waiver."> <text>The IAC may waive or vary particular provisions of this chapter to the extent that the waiver or variance is not inconsistent with State statutes if:</text> <paragraph num="A."> <text>In the IAC's determination, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of State law; and</text> </paragraph> <paragraph num="B."> <text>The Office of the Attorney General approves the waiver for form and legal sufficiency.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".31" heading="Priority Funding Area Waiver Criteria."> <paragraph num="A."> <text>In accordance with State Finance and Procurement Article, §5-7B-07, Annotated Code of Maryland, it is the policy of the State to ensure sufficient conditions in existing schools as well as new facilities.</text> </paragraph> <paragraph num="B."> <text>Waiver Procedure.</text> <paragraph num="(1)"> <text>An LEA may request a waiver for approval of planning and funding, or of a site, for a new school or a replacement school that adds capacity located outside of a priority funding area.</text> </paragraph> <paragraph num="(2)"> <text>On confirmation by the Maryland Department of Planning that the proposed new school or a replacement school that adds capacity, or the site for same, is outside a priority funding area, the designees shall make a recommendation to the IAC.</text> </paragraph> <paragraph num="(3)"> <text>Based on the recommendation of the IAC designees, the IAC shall consider whether to grant a waiver for approval of planning and funding, or of a site, for a new school or a replacement school that adds capacity outside of a priority funding area.</text> </paragraph> <paragraph num="(4)"> <text>After considering the criteria for a waiver in §B of this regulation, the IAC may:</text> <paragraph num="(a)"> <text>Approve planning and funding, or of a site, for the new school or the replacement school that adds capacity;</text> </paragraph> <paragraph num="(b)"> <text>Approve planning and funding, or of a site, for the new school or the replacement school that adds capacity with conditions; or</text> </paragraph> <paragraph num="(c)"> <text>Deny planning and funding, or of a site, for the new school or the replacement school that adds capacity.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>When considering whether to grant a waiver for a new school or a replacement school that adds capacity outside of a priority funding area, the IAC may consult with the Smart Growth Subcabinet.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The IAC shall consider the following factors when determining whether to grant a waiver to the requirement that a site for a new school or for a replacement school that adds capacity, or a new school or a replacement school that adds capacity that is requested for approval of State planning and funding, be located inside a priority funding area:</text> <paragraph num="(1)"> <text>Evidence of efforts made by the LEA and the local government to secure a site within a priority funding area that is of a size, location, and configuration that can support the proposed educational program and serve an appropriate student body. For each evaluated site, criteria that must be considered include:</text> <paragraph num="(a)"> <text>Costs of each site, including both quantifiable first costs and life cycle costs analysis (LCCA) inclusive of transportation costs, and non-quantifiable costs such as administrative inefficiencies or lost teaching time, in order to demonstrate that sites within the priority funding area are more costly than those outside the priority funding areas; and</text> </paragraph> <paragraph num="(b)"> <text>Benefits of each site, including the impact of the proposed site on community life, walkability of students, access to public transportation, and access of students to educational programs and non-curricular activities;</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Evidence that if a site outside a priority funding area is selected because of inability to locate a site within a priority funding area that is of a size, location, and configuration that can support the proposed educational program and serve an appropriate student body:</text> <paragraph num="(a)"> <text>The new site or new school or replacement school that adds capacity is located as proximate to the priority funding area as possible;</text> </paragraph> <paragraph num="(b)"> <text>The LEA proposes to mitigate potential negative effects of the site on educational delivery and the community; and</text> </paragraph> <paragraph num="(c)"> <text>The local government tools for control of land use, including the comprehensive plan and zoning, restrict the growth of housing development outside of the priority funding area that may result from the new school or replacement school that adds capacity;</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Evidence of efforts made by the LEA and local government to achieve the needed capacity through additions to existing schools inside the priority funding area;</text> </paragraph> <paragraph num="(4)"> <text>The location of the student body that will be served by the new school or replacement school that adds capacity;</text> </paragraph> <paragraph num="(5)"> <text>The potential of the new school or replacement school that adds capacity to be permanently connected to existing or proposed municipal or county water and sewer service that is in the 6-year local government capital improvement program;</text> </paragraph> <paragraph num="(6)"> <text>The effect of the new school or replacement school that adds capacity in relieving an Adequate Public Facilities closure within an existing priority funding area or local growth area;</text> </paragraph> <paragraph num="(7)"> <text>Opportunities for co-location or joint use that the new school or replacement school that adds capacity may make possible;</text> </paragraph> <paragraph num="(8)"> <text>Opportunities for reuse of an existing facility;</text> </paragraph> <paragraph num="(9)"> <text>The increase of capacity for a replacement school is modest;</text> </paragraph> <paragraph num="(10)"> <text>Other factors.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".32" heading="Emergency Management Shelters."> <paragraph num="A."> <text>Definitions.</text> <paragraph num="(1)"> <text>“Emergency management shelter” means temporary operations that meet the base humanitarian needs of the whole community before, during, or after an emergency event.</text> </paragraph> <paragraph num="(2)"> <text>“Fully power” means the capability to provide electrical power to the fixtures, services, appliances, and/or outlets within a specified facility or portion of a facility.</text> </paragraph> <paragraph num="(3)"> <text>“Replacement of the electrical system” means a complete new electrical system is installed in an existing or new facility, including when major components of the pre-existing electrical system are either removed or abandoned in place.</text> </paragraph> <paragraph num="(4)"> <text>“Upgrade of the electrical system” means an existing electrical system of a facility or a major portion of a facility is improved through either:</text> <paragraph num="(a)"> <text>The replacement or upgrade of existing components; or</text> </paragraph> <paragraph num="(b)"> <text>Other improvements that alter the performance characteristics of the electrical system.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Each county board shall determine which public schools within the jurisdiction of the county board should be designated as emergency management shelters.</text> </paragraph> <paragraph num="C."> <text>The county board’s determination is based on consistency with local emergency management plans and criteria and the availability of funding.</text> </paragraph> <paragraph num="D."> <text>For schools that will be used as emergency management shelters based upon the LEA determination, local officials shall consult with the Maryland Department of Emergency Management (MDEM) to determine those areas of the facility that are necessary for public safety when the circumstances require the use of the facility as a public shelter during or after a federal, State, or local declared emergency.</text> </paragraph> <paragraph num="E."> <text>The LEA shall ensure that the areas determined to be emergency management shelters are designed and constructed to be fully powered in the event of an emergency through installation of:</text> <paragraph num="(1)"> <text>A permanent, on-site emergency power source; or</text> </paragraph> <paragraph num="(2)"> <text>Other means to accept temporary emergency power source.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".33" heading="Built to Learn Program."> <paragraph num="A."> <text>There is a Built to Learn Program. The Built to Learn Program is separate from the State Capital Improvement Program. The Built to Learn Program is governed by the memorandum of understanding (MOU), as defined in Economic Development Article, §10-650, Annotated Code of Maryland, established between the IAC and the Maryland Stadium Authority.</text> </paragraph> <paragraph num="B."> <text>Funding allocations for the Built to Learn program are mandated in Economic Development Article, §10–650, Annotated Code of Maryland, and shall be distributed accordingly.</text> </paragraph> <paragraph num="C."> <text>IAC review will consist of planning review, priority funding area review, and available funding allocation review, Built to Learn projects must be brought to the IAC for approval. For each project approved by the IAC, the LEA shall establish an MOU with the Maryland Stadium Authority.</text> </paragraph> <paragraph num="D."> <text>Built to Learn funding may be combined with Capital Improvement Program funding, or funding from other IAC programs. Projects that combine funding must meet the contract award requirements pursuant to COMAR 14.39.02 and 14.39.03.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§2-303, 4-126, 5-112, and 5-303 and 5-308; State Finance and Procurement Article, §5-7B-07; Annotated Code of Maryland;Ch. 32, §5, Acts of 2022</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 21, 2007 (34:10 Md. R. 891)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01-1 adopted effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02A amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective November 2, 2009 (36:22 Md. R. 1725); November 14, 2011 (38:23 Md. R. 1423)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04F adopted effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B amended effective November 14, 2011 (38:23 Md. R. 1423); September 28, 2015 (42:19 Md. R. 1229)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective November 2, 2009 (36:22 Md. R. 1725); February 26, 2018 (45:4 Md. R. 208)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective March 22, 2010 (37:6 Md. R. 480)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06H amended effective September 28, 2015 (42:19 Md. R. 1229)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11 amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11I amended effective August 1, 2016 (43:15 Md. R. 865)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11J adopted effective September 11, 2017 (44:18 Md. R. 866)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12B amended effective September 11, 2017 (44:18 Md. R. 866)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13 amended effective November 14, 2011 (38:23 Md. R. 1423)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13A, B amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15B amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .23D amended effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24E, F repealed effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .24-1 adopted effective November 2, 2009 (36:22 Md. R. 1725)</annotation> <annotation type="History" subtype="Administrative History">Regulation .28 adopted effective November 14, 2011 (38:23 Md. R. 1423)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29 adopted effective November 14, 2011 (38:23 Md. R. 1423)</annotation> <annotation type="History" subtype="Administrative History">Regulation .29 amended effective November 24, 2014 (41:23 Md. R. 1376)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.02 recodified to be COMAR 14.39.02 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective October 5, 2020 (47:20 Md. R. 876)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 5, 2020 (47:20 Md. R. 876)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective June 28, 2021 (48:13 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective October 17, 2022 (49:21 Md. R. 951)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, F amended effective November 13, 2023 (50:22 Md. R. 977)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06 amended effective February 6, 2023 (50:2 Md. R. 51)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective August 5, 2024 (51:15 Md. R. 711)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective July 7, 2025 (52:13 Md. R. 656); May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05F amended effective January 20, 2025 (52:1 Md. R. 19)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08A, C amended effective May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08B, C amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08D adopted effective May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .10A amended effective May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .11A amended effective May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .12 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .13D, E amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .14 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .15 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .16 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .17D, H amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .18D amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .20 amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .32D amended effective July 7, 2025 (52:13 Md. R. 656)</annotation> <annotation type="History" subtype="Administrative History">Regulation .33 adopted effective July 7, 2025 (52:13 Md. R. 656):</annotation> </annotations> </chapter> <chapter num="03" heading="Construction Procurement Methods"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to a public school construction project for building, improvement, supplies, or equipment if it:</text> <paragraph num="(1)"> <text>Exceeds $50,000 and has IAC planning or funding approval; or</text> </paragraph> <paragraph num="(2)"> <text>Requires review by the State Superintendent of Schools under Education Article, §2-303, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to a project in a building that is not used primarily for the instruction of students, including an office building, warehouse, or vehicle maintenance or repair building.</text> </paragraph> <paragraph num="C."> <text>In this chapter, “IAC or its designee” includes “State Superintendent or designee” when State Superintendent approval is required by Education Article, §2-303(f), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Project Procurement Proposal Review Assistance."> <text>The State Superintendent or designee may request assistance from the IAC or its designee when reviewing project procurement proposals.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Methods of Source Selection."> <text>Unless otherwise authorized, school construction procurement contracts shall be awarded by one of the following methods:</text> <paragraph num="A."> <text>Competitive sealed bidding, including competitive multistep sealed bidding;</text> </paragraph> <paragraph num="B."> <text>Quality-based selection;</text> </paragraph> <paragraph num="C."> <text>Competitive negotiation;</text> </paragraph> <paragraph num="D."> <text>Unsolicited proposals;</text> </paragraph> <paragraph num="E."> <text>Intergovernmental cooperative purchasing;</text> </paragraph> <paragraph num="F."> <text>Sole source; or</text> </paragraph> <paragraph num="G."> <text>Negotiated award after unsatisfactory competitive sealed bidding.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Choice of Method."> <paragraph num="A."> <text>Except as this regulation otherwise provides, an LEA shall use competitive sealed bidding.</text> </paragraph> <paragraph num="B."> <text>Quality-Based Selection; Competitive Negotiation; Unsolicited Proposals.</text> <paragraph num="(1)"> <text>An LEA may use quality-based selection or competitive negotiation or accept an unsolicited proposal in order to finance or to speed delivery of, transfer risks of, or otherwise enhance the delivery of public school construction.</text> </paragraph> <paragraph num="(2)"> <text>An LEA intending to use quality-based selection or competitive negotiation or to pursue an unsolicited proposal shall:</text> <paragraph num="(a)"> <text>Present a written determination that the circumstances listed in §B(1) of this regulation exist; and</text> </paragraph> <paragraph num="(b)"> <text>Obtain authorization from the IAC or its designee.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>An LEA may use intergovernmental cooperative purchasing when the circumstances set forth in Regulation .12B of this chapter exist.</text> </paragraph> <paragraph num="D."> <text>Sole Source.</text> <paragraph num="(1)"> <text>If the LEA determines that a competitive source selection method cannot be used because there is only one available source for the subject of the procurement, the LEA may award a contract without competition to the sole source.</text> </paragraph> <paragraph num="(2)"> <text>An LEA intending to use sole source selection shall present a written determination that the circumstances listed in §B(1) of this regulation exist.</text> </paragraph> </paragraph> <paragraph num="E."> <text>An LEA may use negotiated award after unsatisfactory competitive sealed bidding when the circumstances set forth in Regulation .14A of this chapter exist.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Approvals."> <paragraph num="A."> <text>IAC or designee authorization to use quality based selection or competitive negotiation or to pursue an unsolicited proposal is distinct from IAC or designee approval of project planning and funding. If the IAC or designee approves the project for use of a competitive negotiation method but does not approve the project for planning, the project may proceed as a locally funded project.</text> </paragraph> <paragraph num="B."> <text>The LEA shall obtain State approval of each construction contract.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Other Requirements."> <paragraph num="A."> <text>All projects shall comply with State procedures and requirements for educational and design review.</text> </paragraph> <paragraph num="B."> <text>A county board is encouraged, consistent with competitive bidding, to use bulk purchasing, bundling, and intergovernmental purchasing.</text> </paragraph> <paragraph num="C."> <text>Project Delivery Methods. The requirements of COMAR 14.39.04 apply to procurements conducted in accordance with this chapter.</text> </paragraph> <paragraph num="D."> <text>Minority Business Enterprise (MBE). The State’s minority business enterprise program applies to procurements conducted in accordance with this chapter that the State funds in whole or part. Any LEA utilizing State funding for school construction projects shall;</text> <paragraph num="(1)"> <text>Adopt an MBE policy and procedures guiding document;</text> </paragraph> <paragraph num="(2)"> <text>Provide the LEA’s board-adopted MBE policy and any related guiding documents to the IAC annually by a date specified by the IAC; and</text> </paragraph> <paragraph num="(3)"> <text>Certify that all MBE policies are in compliance with the State’s MBE program.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Prevailing Wage. To the extent required by law, the State's prevailing wage requirements apply to procurements conducted in accordance with this chapter that the State funds in whole or part.</text> </paragraph> <paragraph num="F."> <text>Debriefing and Protests.</text> <paragraph num="(1)"> <text>The LEA shall establish procedures by which unsuccessful bidders and offerors may be debriefed upon written request within a reasonable time by a procurement official familiar with the rationale for the selection decision and contract award.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall establish procedures by which an interested party may file a protest relating to the solicitation or award of a procurement contract.</text> </paragraph> </paragraph> <paragraph num="G."> <text>If a single bid or offer is submitted following appropriate notification and solicitation procedures, the LEA may award the contract to the single bidder or offeror if the bid or offer is determined responsible and responsive.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Competitive Sealed Bidding — One Step Sealed Bidding."> <paragraph num="A."> <text>Prequalification. The LEA may establish procedures to ensure that bidders are responsible. The LEA may require a bidder to be prequalified according to LEA procedures before submitting a bid.</text> </paragraph> <paragraph num="B."> <text>Invitation for Bids.</text> <paragraph num="(1)"> <text>The invitation for bids shall be used to initiate a competitive sealed bid procurement.</text> </paragraph> <paragraph num="(2)"> <text>The invitation for bids shall include:</text> <paragraph num="(a)"> <text>Instructions and information concerning bid submission requirements including the date, time, and place for receipt of bids;</text> </paragraph> <paragraph num="(b)"> <text>Whether electronic bids will be accepted;</text> </paragraph> <paragraph num="(c)"> <text>Specifications or drawings or both that clearly and accurately describe the functional characteristics of or the nature of the work to be procured;</text> </paragraph> <paragraph num="(d)"> <text>The delivery or performance schedule;</text> </paragraph> <paragraph num="(e)"> <text>MBE goals, if applicable;</text> </paragraph> <paragraph num="(f)"> <text>Prevailing wage requirements, if applicable;</text> </paragraph> <paragraph num="(g)"> <text>Requirement that bidders acknowledge receipt of each amendment and addendum issued;</text> </paragraph> <paragraph num="(h)"> <text>Requirement for submission of bid bond;</text> </paragraph> <paragraph num="(i)"> <text>Information with respect to prebid conference if a conference is to be held;</text> </paragraph> <paragraph num="(j)"> <text>Requirement for submission of bid affidavit; and</text> </paragraph> <paragraph num="(k)"> <text>Any other information the LEA requires.</text> </paragraph> </paragraph> </paragraph> <paragraph num="C."> <text>Public Notice. The LEA shall publish notice of an invitation for bid at least 14 calendar days before the bid due date in:</text> <paragraph num="(1)"> <text>eMaryland Marketplace;</text> </paragraph> <paragraph num="(2)"> <text>An electronic posting or a physical posting on the LEA's bid board; or</text> </paragraph> <paragraph num="(3)"> <text>A newspaper of general circulation in the LEA's region.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Bid Receipt, Opening, Disclosure.</text> <paragraph num="(1)"> <text>Upon its receipt, each bid shall be stored in a secure place until the time set for bid opening.</text> </paragraph> <paragraph num="(2)"> <text>Bids shall be opened publicly in the presence of at least one LEA employee and read aloud at the time, date, and place designated in the invitation for bids, or are to be made available to the public through a method in accordance with local policy and procurement practice. The name of each bidder, the bid price, and other appropriate information shall be read aloud or otherwise made available. This information shall be recorded at the time of bid opening. The bids shall be tabulated or a bid abstract made.</text> </paragraph> <paragraph num="(3)"> <text>Opened bids shall be available for public inspection at a reasonable time after bid opening and before contract award. Bidders may designate trade secrets, financial data, or other proprietary data as confidential; material so designated shall be readily separable from the bid in order to facilitate public inspection of the nonconfidential portion of the bid. The LEA shall examine the bids to determine the validity of any requests for nondisclosure of trade secrets and other proprietary data identified in writing. All information submitted by bidders is subject to State and local public disclosure laws.</text> </paragraph> </paragraph> <paragraph num="E."> <text>IFB Cancellation; Bid Rejection; Irregularities.</text> <paragraph num="(1)"> <text>Before opening of bids, the LEA may cancel the invitation for bids in whole or in part if the LEA determines that the cancellation is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(2)"> <text>After opening of bids but before award, the LEA may reject all bids in whole or in part if the LEA determines that the rejection is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(3)"> <text>The LEA may reject any bid in whole or in part if it is in the LEA's best interest to do so. Reasons for rejecting a bid may include that the bidder is not responsible, that the bid is not responsive, that the price is unreasonable, or that the bidder is debarred or otherwise ineligible.</text> </paragraph> <paragraph num="(4)"> <text>Irregularities.</text> <paragraph num="(a)"> <text>Minor; Material; Correction.</text> <paragraph num="(i)"> <text>The LEA may permit a bidder to correct a minor irregularity or may waive a minor irregularity. A minor irregularity is one that is merely a matter of form and not of substance or pertains to an immaterial or inconsequential defect or variation in a bid, the correction or waiver of which would not be prejudicial to other bidders.</text> </paragraph> <paragraph num="(ii)"> <text>The LEA may not waive or permit a bidder to correct a defect or variation in a bid that is material as to price, quantity, quality, or delivery.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Up to and including the time for bid opening, a bidder may correct a defect or variation with respect to:</text> <paragraph num="(i)"> <text>Bid bond;</text> </paragraph> <paragraph num="(ii)"> <text>Acknowledgment of addenda; or</text> </paragraph> <paragraph num="(iii)"> <text>MBE submission materials.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>After bid opening, the LEA may not waive or permit a bidder to correct a defect or variation with respect to these requirements unless the defect or variation is determined to be minor and does not affect the competitiveness of the bid.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>Bid Evaluation and Award.</text> <paragraph num="(1)"> <text>The LEA shall award the contract to the responsible bidder who provides the best value and conforms to specifications with consideration given to:</text> <paragraph num="(a)"> <text>The quantities involved;</text> </paragraph> <paragraph num="(b)"> <text>The time required for delivery;</text> </paragraph> <paragraph num="(c)"> <text>The purpose for which required;</text> </paragraph> <paragraph num="(d)"> <text>The competency and responsibility of the bidder;</text> </paragraph> <paragraph num="(e)"> <text>The ability of the bidder to perform satisfactory service;</text> </paragraph> <paragraph num="(f)"> <text>The plan for utilization of minority contractors; and</text> </paragraph> <paragraph num="(g)"> <text>The price offered by the bidder.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The LEA may not evaluate a bid for any criterion that is not disclosed in the invitation for bids.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Single Bidder. If after proper publication of invitation for bid and proper bid opening, the LEA receives one responsive bid, the LEA may:</text> <paragraph num="(1)"> <text>Award the contract to the single responsible bidder; or</text> </paragraph> <paragraph num="(2)"> <text>Reissue the invitation for bid.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Competitive Sealed Bidding — Multistep Sealed Bidding."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Competitive sealed bidding may be conducted through multistep sealed bidding.</text> </paragraph> <paragraph num="(2)"> <text>Multistep sealed bidding is a multiphase process in which bidders submit a technical offer (statement of qualifications) and a second phase in which those bidders who are determined qualified during the first phase may have price bids considered.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Request for Qualifications.</text> <paragraph num="(1)"> <text>The request for qualifications is used to initiate a competitive two-step sealed bid procurement.</text> </paragraph> <paragraph num="(2)"> <text>The request for qualifications shall set forth the factors by which the bidder's qualifications will be evaluated.</text> </paragraph> <paragraph num="(3)"> <text>Evaluation factors shall include:</text> <paragraph num="(a)"> <text>Bidder's understanding of the scope and schedule of the work;</text> </paragraph> <paragraph num="(b)"> <text>Bidder's prior experience with projects of similar size and scope, and if bidder is a joint venture, experience of at least one of the members of the joint venture entity;</text> </paragraph> <paragraph num="(c)"> <text>Bidder's plan for management of the project, and the organizational structure proposed for the project;</text> </paragraph> <paragraph num="(d)"> <text>Experience of bidder's individual staff members with projects of similar size and scope;</text> </paragraph> <paragraph num="(e)"> <text>MBE plan, if applicable; and</text> </paragraph> <paragraph num="(f)"> <text>Other factors that the LEA sets forth.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>The request for qualifications shall set forth the minimum standards that a bidder shall meet to be found qualified.</text> </paragraph> <paragraph num="(5)"> <text>The request for qualifications may include information concerning the project scope, schedule, MBE, and prevailing wage as the LEA considers appropriate.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Public Notice. The LEA shall publish notice of a request for qualification at least 14 calendar days before the technical-offer due date in:</text> <paragraph num="(1)"> <text>eMaryland Marketplace;</text> </paragraph> <paragraph num="(2)"> <text>An electronic posting or a physical posting on the LEA's bid board; or</text> </paragraph> <paragraph num="(3)"> <text>A newspaper of general circulation in the LEA's region.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Qualifications Evaluation.</text> <paragraph num="(1)"> <text>The LEA shall evaluate the bidder's qualifications to determine whether the bidder meets the minimum qualification standards.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall compile a list of bidders that are determined to meet the minimum qualification standards. Only the bidders on that list shall be permitted to submit bids.</text> </paragraph> <paragraph num="(3)"> <text>Interviews may be conducted as a component of the qualifications process.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Invitation For Bids.</text> <paragraph num="(1)"> <text>After preparing the list of qualified bidders, the LEA may issue an invitation for bids to all bidders on that list.</text> </paragraph> <paragraph num="(2)"> <text>The invitation for bids shall include:</text> <paragraph num="(a)"> <text>Instructions and information concerning bid submission requirements including the date, time, and place for receipt of bids;</text> </paragraph> <paragraph num="(b)"> <text>Whether electronic bids will be accepted;</text> </paragraph> <paragraph num="(c)"> <text>Specifications, drawings, or both, that clearly and accurately describe the functional characteristics of or the nature of an item to be procured;</text> </paragraph> <paragraph num="(d)"> <text>The delivery or performance schedule;</text> </paragraph> <paragraph num="(e)"> <text>MBE goals, if applicable;</text> </paragraph> <paragraph num="(f)"> <text>Prevailing wage requirements, if applicable;</text> </paragraph> <paragraph num="(g)"> <text>Requirement that bidders acknowledge receipt of each amendment and addendum issued;</text> </paragraph> <paragraph num="(h)"> <text>Requirement for submission of bid bond;</text> </paragraph> <paragraph num="(i)"> <text>Information with respect to pre-bid conference if a conference is to be held;</text> </paragraph> <paragraph num="(j)"> <text>Requirement for submission of bid affidavit; and</text> </paragraph> <paragraph num="(k)"> <text>Any other information the LEA requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The LEA shall obtain approval from the IAC or its designee before issuing the invitation for bids.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Bid Receipt and Opening; Disclosure.</text> <paragraph num="(1)"> <text>Upon receipt, each bid shall be stored in a secure place until the time set for bid opening.</text> </paragraph> <paragraph num="(2)"> <text>Bids shall be opened publicly in the presence of at least one LEA employee and read aloud at the time, date, and place designated in the invitation for bids. The name of each bidder, the bid price, and other appropriate information shall be read aloud or otherwise made available. This information shall be recorded at the time of bid opening. The bids shall be tabulated or a bid abstract made.</text> </paragraph> <paragraph num="(3)"> <text>Opened bids shall be available for public inspection at a reasonable time after bid opening and before contract award. Bidders may designate trade secrets or other proprietary data as confidential; material so designated shall be readily separable from the bid in order to facilitate public inspection of the nonconfidential portion of the bid. The LEA shall examine the bids to determine the validity of any requests for nondisclosure of trade secrets and other proprietary data identified in writing. All information submitted by bidders is subject to State and local public disclosure laws.</text> </paragraph> </paragraph> <paragraph num="G."> <text>IFB Cancellation; Bid Rejection; Irregularities.</text> <paragraph num="(1)"> <text>Before opening bids, the LEA may cancel the invitation for bids in whole or in part if the LEA determines that the cancellation is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(2)"> <text>After opening of bids but before award, the LEA may reject all bids in whole or in part if the LEA determines that the rejection is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(3)"> <text>The LEA may reject any bid in whole or in part if it is in the LEA's best interest to do so. Reasons for rejecting a bid include that the bidder is not responsible, that the bid is not responsive, that the price is unreasonable, or that the bidder is debarred or otherwise ineligible.</text> </paragraph> <paragraph num="(4)"> <text>Irregularities.</text> <paragraph num="(a)"> <text>Minor; Material; Correction.</text> <paragraph num="(i)"> <text>The LEA may permit a bidder to correct a minor irregularity or may waive a minor irregularity. A minor irregularity is one that is merely a matter of form and not of substance or pertains to an immaterial or inconsequential defect or variation in a bid, the correction or waiver of which would not be prejudicial to other bidders.</text> </paragraph> <paragraph num="(ii)"> <text>The LEA may not waive or permit a bidder to correct a defect or variation in a bid that is material as to price, quantity, quality, or delivery.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Up to and including the time for bid opening, a bidder may correct a defect or variation with respect to:</text> <paragraph num="(i)"> <text>Bid bond;</text> </paragraph> <paragraph num="(ii)"> <text>Acknowledgment of addenda; or</text> </paragraph> <paragraph num="(iii)"> <text>MBE submission materials.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>After bid opening, the LEA may not waive or permit a bidder to correct a defect or variation with respect to these requirements unless the defect or variation is determined to be minor and does not affect the competitiveness of the bid.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Bid Evaluation and Award.</text> <paragraph num="(1)"> <text>The LEA shall award the contract to the lowest responsible and responsive bidder whose bid meets the requirements and evaluation criteria set forth in the invitation for bids and is the most favorable bid.</text> </paragraph> <paragraph num="(2)"> <text>The LEA may not evaluate a bid for any criterion that is not disclosed in the invitation for bids.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Single Bidder. If after proper publication of invitation for bid and proper bid opening, the LEA receives one responsive bid, the LEA may:</text> <paragraph num="(1)"> <text>Award the contract to the single responsible bidder; or</text> </paragraph> <paragraph num="(2)"> <text>Reissue the invitation for bid.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Quality-Based Selection."> <paragraph num="A."> <text>General. Quality-based selection means a method of source selection based on a combination of qualification and cost factors.</text> </paragraph> <paragraph num="B."> <text>Request for Proposals.</text> <paragraph num="(1)"> <text>The request for proposals is used to initiate a quality-based selection procurement.</text> </paragraph> <paragraph num="(2)"> <text>The request for proposals shall include:</text> <paragraph num="(a)"> <text>Instructions and information concerning proposal submission requirements including the date, time, and place for receipt of proposals;</text> </paragraph> <paragraph num="(b)"> <text>Whether electronic proposals will be accepted;</text> </paragraph> <paragraph num="(c)"> <text>Specifications, drawings, or both, that clearly and accurately describe the functional characteristics of or the nature of the work to be procured, delivery or performance schedule, and any special instructions;</text> </paragraph> <paragraph num="(d)"> <text>The evaluation factors and an indication of the relative importance of each evaluation factor including price;</text> </paragraph> <paragraph num="(e)"> <text>MBE goals, if applicable;</text> </paragraph> <paragraph num="(f)"> <text>Prevailing wage requirements, if applicable;</text> </paragraph> <paragraph num="(g)"> <text>Information with respect to preproposal conference if a conference is to be held;</text> </paragraph> <paragraph num="(h)"> <text>Requirement for submission of proposal affidavit;</text> </paragraph> <paragraph num="(i)"> <text>Requirement that offerors acknowledge receipt of each amendment and addendum issued;</text> </paragraph> <paragraph num="(j)"> <text>Requirement for submission of bid bond; and</text> </paragraph> <paragraph num="(k)"> <text>Any other information the LEA requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>LEAs may request that qualification factors in the proposal be submitted separately from price information.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Public Notice. The LEA shall publish notice of a request for proposals at least 14 calendar days before the proposal due date in:</text> <paragraph num="(1)"> <text>eMaryland Marketplace;</text> </paragraph> <paragraph num="(2)"> <text>An electronic posting or a physical posting on the LEA's bid board; or</text> </paragraph> <paragraph num="(3)"> <text>A newspaper of general circulation in the LEA's region.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Proposal Receipt. The LEA shall keep submitted proposals in a secure place until the due date. Proposals may not be opened publicly but shall be opened in the presence of at least two LEA employees.</text> </paragraph> <paragraph num="E."> <text>Proposal Disclosure. Offerors shall indicate clearly the portions of their proposals that they consider confidential information. All information submitted by offerors is subject to State and local public disclosure laws.</text> </paragraph> <paragraph num="F."> <text>Proposal Evaluation.</text> <paragraph num="(1)"> <text>The LEA shall evaluate the proposal based on the evaluation factors set forth in the request for proposals.</text> </paragraph> <paragraph num="(2)"> <text>Evaluation factors shall include:</text> <paragraph num="(a)"> <text>Offeror's understanding of scope of the work;</text> </paragraph> <paragraph num="(b)"> <text>Offeror's prior experience with projects of similar size and scope, and if offeror is a joint venture, experience for at least one of the members of the joint venture entity;</text> </paragraph> <paragraph num="(c)"> <text>Offeror's plan for management of the project and organizational structure proposed for the project;</text> </paragraph> <paragraph num="(d)"> <text>Experience of offeror's individual staff members with projects of similar size and complexity;</text> </paragraph> <paragraph num="(e)"> <text>MBE plan, if applicable;</text> </paragraph> <paragraph num="(f)"> <text>Other qualification factors that the LEA sets forth; and</text> </paragraph> <paragraph num="(g)"> <text>Price.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Interviews may be conducted as a component of the qualification process.</text> </paragraph> </paragraph> <paragraph num="G."> <text>IFB Cancellation; Proposal Rejection; Irregularities.</text> <paragraph num="(1)"> <text>Before opening of proposals, the LEA may cancel the request for proposals in whole or in part if the LEA determines that the cancellation is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(2)"> <text>After opening of proposals but before award, the LEA may reject all proposals in whole or in part if the LEA determines that the rejection is fiscally advantageous or otherwise in its best interest.</text> </paragraph> <paragraph num="(3)"> <text>The LEA may reject any proposal in whole or in part if it is in the LEA's best interest to do so. Reasons for rejecting a proposal include that the offeror is not responsible, that the proposal is not susceptible of award, that the price is unreasonable, or that the offeror is debarred or otherwise ineligible.</text> </paragraph> <paragraph num="(4)"> <text>Irregularities.</text> <paragraph num="(a)"> <text>Minor; Material; Correction.</text> <paragraph num="(i)"> <text>The LEA may permit an offeror to correct a minor irregularity or may waive a minor irregularity. A minor irregularity is one that is merely a matter of form and not of substance or pertains to an immaterial or inconsequential defect or variation in a proposal, the correction or waiver of which would not be prejudicial to other bidders.</text> </paragraph> <paragraph num="(ii)"> <text>The LEA may not waive or permit an offeror to correct a defect or variation in a proposal that is material as to price, quantity, quality, or delivery.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Up to and including the time for proposal opening, an offeror may correct a defect or variation with respect to:</text> <paragraph num="(i)"> <text>Bid bond;</text> </paragraph> <paragraph num="(ii)"> <text>Acknowledgment of addenda; or</text> </paragraph> <paragraph num="(iii)"> <text>MBE submission materials.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>After proposal opening, the LEA may not waive or permit an offeror to correct a defect or variation with respect to these requirements unless the defect or variation is determined to be minor and does not affect the competitiveness of the bid.</text> </paragraph> </paragraph> </paragraph> <paragraph num="H."> <text>Evaluation and Award.</text> <paragraph num="(1)"> <text>The LEA may not evaluate a proposal for any criterion that is not disclosed in the request for proposals.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall award the contract to the offeror whose proposal is, in the LEA's determination, the highest ranked proposal based on the factors contained in the request for proposals including price.</text> </paragraph> </paragraph> <paragraph num="I."> <text>Single Offeror. If after proper publication of request for proposal and proper proposal opening, the LEA receives one responsive offer, the LEA may:</text> <paragraph num="(1)"> <text>Award the contract to the single responsible offeror; or</text> </paragraph> <paragraph num="(2)"> <text>Reissue the request for proposal.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Competitive Negotiation."> <paragraph num="A."> <text>Definition.</text> <paragraph num="(1)"> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="(2)"> <text>Term Defined. Competitive negotiation means a method of source selection that:</text> <paragraph num="(a)"> <text>Permits offerors to demonstrate creativity, experience, and knowledge;</text> </paragraph> <paragraph num="(b)"> <text>Allows offerors to submit proposals that vary widely in scope, cost, and other factors; and</text> </paragraph> <paragraph num="(c)"> <text>Allows negotiating between the LEA and the qualified offerors with the objective that the final proposal be the most advantageous to the LEA.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Request for Proposals.</text> <paragraph num="(1)"> <text>The request for proposals is used to initiate a competitive negotiation procurement.</text> </paragraph> <paragraph num="(2)"> <text>The request for proposals shall include:</text> <paragraph num="(a)"> <text>Instructions and information concerning proposal submission requirements including the date, time and place for receipt of proposals;</text> </paragraph> <paragraph num="(b)"> <text>A statement as to whether electronic proposals will be accepted;</text> </paragraph> <paragraph num="(c)"> <text>At a minimum, a general description of the final product or services the LEA seeks;</text> </paragraph> <paragraph num="(d)"> <text>The evaluation factors and an indication of the relative importance of each evaluation factor, including price;</text> </paragraph> <paragraph num="(e)"> <text>A statement that discussions may be conducted with those responsible offerors that submit proposals judged to be in the competitive range, as previously determined by the LEA;</text> </paragraph> <paragraph num="(f)"> <text>MBE goals, if applicable;</text> </paragraph> <paragraph num="(g)"> <text>Prevailing wage requirements, if applicable;</text> </paragraph> <paragraph num="(h)"> <text>Information with respect to preproposal conference if a conference is to be held;</text> </paragraph> <paragraph num="(i)"> <text>Requirement for submission of a proposal affidavit;</text> </paragraph> <paragraph num="(j)"> <text>Requirement that offerors acknowledge receipt of each amendment and addendum issued;</text> </paragraph> <paragraph num="(k)"> <text>Requirement for bid bond, if applicable; and</text> </paragraph> <paragraph num="(l)"> <text>Any other information the LEA requires.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The LEA shall obtain authorization from the IAC or its designee before issuing the request for proposals.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Public Notice. The LEA shall publish notice of a request for proposals at least 14 calendar days before the proposal due date in:</text> <paragraph num="(1)"> <text>eMaryland Marketplace;</text> </paragraph> <paragraph num="(2)"> <text>An electronic posting or a physical posting on the LEA's bid board; or</text> </paragraph> <paragraph num="(3)"> <text>A newspaper of general circulation in the LEA's region.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Proposal Receipt. The LEA shall keep submitted proposals in a secure place until the due date. Proposals are not required to be opened publicly but shall be opened in the presence of at least two LEA employees.</text> </paragraph> <paragraph num="E."> <text>Proposal Disclosure. Offerors shall indicate clearly the portions of their proposals that they consider confidential information. All information submitted by offerors is subject to State and local public disclosure laws.</text> </paragraph> <paragraph num="F."> <text>Proposal Evaluation.</text> <paragraph num="(1)"> <text>LEAs may interview offerors as part of the evaluation process.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall evaluate the proposals based on the evaluation factors set forth in the request for proposals.</text> </paragraph> <paragraph num="(3)"> <text>The LEA shall evaluate the technical proposals and price proposals independently of each other.</text> </paragraph> <paragraph num="(4)"> <text>Evaluation factors shall include:</text> <paragraph num="(a)"> <text>Offeror's understanding of scope of the work;</text> </paragraph> <paragraph num="(b)"> <text>Advantages of the offeror's proposal to the LEA and to the public in general;</text> </paragraph> <paragraph num="(c)"> <text>Offeror's prior experience with projects of similar size and scope, and if offeror is a joint venture, experience for at least one of the members of the joint venture entity;</text> </paragraph> <paragraph num="(d)"> <text>Offeror's plan for management of the project, and the organizational structure proposed for the project;</text> </paragraph> <paragraph num="(e)"> <text>Experience of offeror's individual staff members with projects of similar size and scope;</text> </paragraph> <paragraph num="(f)"> <text>Financial resources of team and team members;</text> </paragraph> <paragraph num="(g)"> <text>MBE plan, if applicable;</text> </paragraph> <paragraph num="(h)"> <text>Price;</text> </paragraph> <paragraph num="(i)"> <text>If applicable, process by which operation and maintenance of the facility will be transferred to the LEA; and</text> </paragraph> <paragraph num="(j)"> <text>Other factors that the LEA sets forth.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The LEA shall establish a competitive range based on the ratings of each proposal.</text> </paragraph> <paragraph num="(6)"> <text>Price may be a component in the first evaluation phase of the request for proposals, but is not required. The LEA may exclude price as a factor in the first phase of the request for proposals in order to assess the range of conceptual options that are available for a particular project.</text> </paragraph> </paragraph> <paragraph num="G."> <text>Negotiations.</text> <paragraph num="(1)"> <text>The primary objective of negotiations is to obtain the most advantageous contract for the LEA.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall undertake negotiations with each offeror in the competitive range. During negotiations, an offeror may revise its proposal.</text> </paragraph> <paragraph num="(3)"> <text>During negotiations, the LEA may establish a final competitive range. The LEA may limit the number of offerors that are included in the final competitive range.</text> </paragraph> <paragraph num="(4)"> <text>After negotiation, the LEA shall give each offeror in the final competitive range the opportunity for a final proposal revision.</text> </paragraph> </paragraph> <paragraph num="H."> <text>Award.</text> <paragraph num="(1)"> <text>The LEA shall select the offeror whose proposal is, in the LEA's determination, the most advantageous to the LEA.</text> </paragraph> <paragraph num="(2)"> <text>Before seeking approval of the award from the local board of education, the LEA shall:</text> <paragraph num="(a)"> <text>Discuss the project in an open meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Notify the public as to when the proposed contract will be brought before the board of education for approval.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Following approval of the award by the local board of education, the LEA shall prepare and submit to the IAC or its designee a statement that explains why the proposal is the most advantageous. The explanation shall:</text> <paragraph num="(a)"> <text>Describe the proposed scope of work, including alternative financing arrangements, if applicable;</text> </paragraph> <paragraph num="(b)"> <text>Include a cost schedule, indicating the costs associated with various services to be provided by the vendor or phases of the work, and whether those costs are eligible for State reimbursement;</text> </paragraph> <paragraph num="(c)"> <text>Summarize the evaluation system used to select the offeror;</text> </paragraph> <paragraph num="(d)"> <text>Summarize the apparent successful offeror's proposal; and</text> </paragraph> <paragraph num="(e)"> <text>Describe the MBE plan.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Unsolicited Proposals."> <paragraph num="A."> <text>Receipt of Unsolicited Proposals; Competing Proposals.</text> <paragraph num="(1)"> <text>If an LEA receives a proposal other than one submitted in response to a solicitation and it determines that it is interested in pursuing the unsolicited proposal, the LEA shall:</text> <paragraph num="(a)"> <text>Publish notice that it has received an unsolicited proposal;</text> </paragraph> <paragraph num="(b)"> <text>Briefly describe the nature of the proposal;</text> </paragraph> <paragraph num="(c)"> <text>Give any other interested offeror at least 28 days to submit a competing proposal after the public notice is issued; and</text> </paragraph> <paragraph num="(d)"> <text>Inform the IAC or its designee of its intention and provide a description of the proposed method to procure the project.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The unsolicited proposal and any competing proposals shall be in writing and sufficiently detailed to permit the LEA to determine if it is advantageous and should be the basis for a contract award.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Notice. Notices required under this regulation shall be placed in:</text> <paragraph num="(1)"> <text>eMaryland Marketplace;</text> </paragraph> <paragraph num="(2)"> <text>An electronic posting or a physical posting on the LEA's bid board; or</text> </paragraph> <paragraph num="(3)"> <text>A newspaper of general circulation in the LEA's region.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the LEA receives one or more competing proposals, the LEA shall evaluate and negotiate the proposals consistent with Regulations .09F and G of this regulation.</text> </paragraph> <paragraph num="D."> <text>Award.</text> <paragraph num="(1)"> <text>The LEA may award a contract that it determines to be advantageous based on an unsolicited proposal or a competing proposal.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall prepare and submit to the IAC or its designee a statement that explains why the proposal is the most advantageous. The explanation shall:</text> <paragraph num="(a)"> <text>Describe the proposed scope of work or services, including alternative financing if applicable;</text> </paragraph> <paragraph num="(b)"> <text>Include a cost schedule, indicating the costs associated with various services to be provided by the vendor or phases of the work, and whether those costs are eligible for State reimbursement;</text> </paragraph> <paragraph num="(c)"> <text>Summarize the evaluation system used to select the offeror;</text> </paragraph> <paragraph num="(d)"> <text>Summarize the apparent successful offeror's proposal; and</text> </paragraph> <paragraph num="(e)"> <text>Describe the MBE plan, if applicable.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Before seeking approval from the Board of Education, the LEA shall:</text> <paragraph num="(a)"> <text>Discuss the project in an open meeting; and</text> </paragraph> <paragraph num="(b)"> <text>Notify the public as to when the proposed contract will be brought before the Board of Education for approval.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Intergovernmental Cooperative Purchasing."> <paragraph num="A."> <text>General. Intergovernmental cooperative purchasing means a method of source selection that permits an LEA to aggregate with other government entities their common requirements for purposes of maximizing economies of scale when soliciting bids or proposals for goods and commodities or to purchase its requirements from another governmental entity's contract if that contract is an intergovernmental cooperative purchasing agreement.</text> </paragraph> <paragraph num="B."> <text>An LEA may use the intergovernmental cooperative purchasing method if it determines that the method:</text> <paragraph num="(1)"> <text>Will provide cost benefits, promote administrative efficiencies, or promote governmental cooperation; and</text> </paragraph> <paragraph num="(2)"> <text>Is not intended to avoid competition.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Types. An LEA may use the following types of intergovernmental cooperative purchasing method:</text> <paragraph num="(1)"> <text>Pooling, a method that includes the following steps:</text> <paragraph num="(a)"> <text>Each participating governmental entity agrees to procure its respective requirements from the successful bidder or offeror;</text> </paragraph> <paragraph num="(b)"> <text>A lead jurisdiction conducts the procurement on behalf of all participants; and</text> </paragraph> <paragraph num="(c)"> <text>Either a master contract award or awards is made by the lead jurisdiction on behalf of all participants or each participant awards its own contract; and</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Piggybacking, a method wherein an LEA purchases its requirements from another governmental entity's contract if that contract contains an intergovernmental cooperative purchasing clause.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Sole Source."> <paragraph num="A."> <text>Sole source procurement is permissible if a requirement is available from only a single vendor.</text> </paragraph> <paragraph num="B."> <text>Examples of circumstances that might necessitate a sole source procurement are as follows:</text> <paragraph num="(1)"> <text>Only one source exists which meets the requirements;</text> </paragraph> <paragraph num="(2)"> <text>The compatibility of equipment, accessories, or replacement parts is the paramount consideration;</text> </paragraph> <paragraph num="(3)"> <text>A sole vendor's item is needed for trial use or testing; or</text> </paragraph> <paragraph num="(4)"> <text>Public or regulated utility services are to be procured and only one source exists.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The LEA shall submit a written sole source justification to the IAC or its designee.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Negotiated Award After Unsatisfactory Competitive Sealed Bidding."> <paragraph num="A."> <text>General. An LEA may make a negotiated award after unsatisfactory competitive sealed bidding if, after bids have been opened, the LEA:</text> <paragraph num="(1)"> <text>Rejects all bids pursuant to Regulation .07F(2) or .08G(2) of this chapter; and</text> </paragraph> <paragraph num="(2)"> <text>Determines that:</text> <paragraph num="(a)"> <text>Funding does not permit an award to the lowest responsible and responsive bidder;</text> </paragraph> <paragraph num="(b)"> <text>Any delay resulting from a resolicitation with revised specifications under competitive sealed bidding would be fiscally disadvantageous or would not otherwise be in the best interest of the LEA or the State; or</text> </paragraph> <paragraph num="(c)"> <text>Both.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Invitation for Revised Bids. The LEA shall:</text> <paragraph num="(1)"> <text>Issue an invitation for revised bids based on revised specifications to the original bidders as promptly as possible; and</text> </paragraph> <paragraph num="(2)"> <text>Require a prompt response.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Discussion. Discussion may not be conducted with bidders after revised bids have been submitted unless the LEA determines that there is compelling need for further negotiation. Any discussion concerning revised specifications shall be conducted with all responsible bidders in a fair and equal manner.</text> </paragraph> <paragraph num="D."> <text>Award. The LEA shall award the contract to the lowest responsive and responsible bidder whose bid meets the invitation for revised bids.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§4-126, 5-112, and 5-303, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 21, 2007 (34:10 Md. R. 891)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C amended effective November 14, 2011 (38:23 Md. R. 1423)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.03 recodified to be COMAR 14.39.03 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, C amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06D amended effective May 11, 2026 (53:9 Md. R. 414)</annotation> <annotation type="History" subtype="Administrative History">Regulation .07 amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09B amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> </annotations> </chapter> <chapter num="04" heading="Project Delivery Methods"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to a public school construction project for building, improvement, supplies, or equipment if it:</text> <paragraph num="(1)"> <text>Exceeds $50,000 and has IAC planning or funding approval; or</text> </paragraph> <paragraph num="(2)"> <text>Requires review by the State Superintendent of Schools under Education Article, §2-303, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to a project in a building that is not used primarily for the instruction of students, including an office building, warehouse, or vehicle maintenance or repair building.</text> </paragraph> <paragraph num="C."> <text>In this chapter, “IAC or its designee” includes “State Superintendent or designee” if State Superintendent approval is required by Education Article, §2-303(f), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Project Delivery Proposal Review Assistance."> <text>The State Superintendent or designee may request assistance from the IAC or its designee when reviewing project delivery proposals.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Methods of Project Delivery."> <text>For a public school construction project, an LEA may use one of the following methods:</text> <paragraph num="A."> <text>General contracting; or</text> </paragraph> <paragraph num="B."> <text>Alternative project delivery including:</text> <paragraph num="(1)"> <text>Construction management agency;</text> </paragraph> <paragraph num="(2)"> <text>Construction management at risk;</text> </paragraph> <paragraph num="(3)"> <text>Design build; and</text> </paragraph> <paragraph num="(4)"> <text>Job order contracting.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Other Requirements."> <paragraph num="A."> <text>The requirements of COMAR 14.39.03 apply to all projects conducted under this chapter.</text> </paragraph> <paragraph num="B."> <text>All projects regardless of delivery method shall comply with State procedures for project design review.</text> </paragraph> <paragraph num="C."> <text>Regardless of project delivery method, the LEA may not begin construction until the IAC or its designee has authorized the LEA to proceed.</text> </paragraph> <paragraph num="D."> <text>The IAC may specifically designate an individual or group to act on requests, provide the State approvals on behalf of the IAC, or both, as required in this chapter.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Construction Management Agency."> <paragraph num="A."> <text>General. Construction management agency (CMA) means a project delivery method in which the LEA:</text> <paragraph num="(1)"> <text>Directly contracts with trade contractors; and</text> </paragraph> <paragraph num="(2)"> <text>Either:</text> <paragraph num="(a)"> <text>Engages a construction manager as its agent to manage the project; or</text> </paragraph> <paragraph num="(b)"> <text>Acts as the construction manager.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>The LEA shall disclose in the solicitation documents if the project may be converted to the construction management at risk method or other project delivery method.</text> </paragraph> <paragraph num="C."> <text>State Reimbursement.</text> <paragraph num="(1)"> <text>The IAC or its designee shall maintain a list of CMA services that are eligible for State reimbursement.</text> </paragraph> <paragraph num="(2)"> <text>If the LEA intends to seek reimbursement of CMA costs with State funds, the LEA shall:</text> <paragraph num="(a)"> <text>Submit the solicitation documents to the IAC or its designee for review not later than 1 month before the documents are released to offerors; and</text> </paragraph> <paragraph num="(b)"> <text>Identify in the solicitation documents the construction management services that are eligible for State reimbursement.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An LEA intending to seek State reimbursement for construction manager services shall procure a construction manager in accordance with COMAR 14.39.03.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Trade Contracts.</text> <paragraph num="(1)"> <text>Trade contracts may be procured concurrently or over the life of the project.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall submit the bidding schedule for the trade packages with proposed bid dates to the IAC or its designee and provide notice of any changes.</text> </paragraph> <paragraph num="(3)"> <text>The LEA shall procure each trade contract in accordance with COMAR 14.39.03.</text> </paragraph> <paragraph num="(4)"> <text>The LEA shall submit each trade contract to the IAC for approval.</text> </paragraph> <paragraph num="(5)"> <text>If the project is subject to prevailing wage rate requirements, each trade contract within the project is subject to prevailing wage rate requirements.</text> </paragraph> <paragraph num="(6)"> <text>MBE goals shall be based on the total project price, but MBE goals may vary in individual trade contracts if the overall MBE project goal is acknowledged.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Construction Management at Risk."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Construction management at risk means a project delivery method in which the LEA engages a construction manager at risk (CMR) to:</text> <paragraph num="(a)"> <text>Contract directly with trade contractors; and</text> </paragraph> <paragraph num="(b)"> <text>Provide a guaranteed maximum price for project procurement and construction.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The CMR warrants that the work will be completed at or below the guaranteed maximum price with provisions for change order adjustments for work that is outside the agreed-upon work scope.</text> </paragraph> <paragraph num="(3)"> <text>Cost savings resulting from projects completed below the guaranteed maximum price may be shared between the LEA and the CMR.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Guaranteed Maximum Price.</text> <paragraph num="(1)"> <text>Guaranteed maximum price (GMP) means an arrangement between the LEA and the CMR in which the total amount payable to the CMR for the project is restricted to a pre-agreed maximum and includes the cost of construction and construction management services that is generally determined before the design is complete.</text> </paragraph> <paragraph num="(2)"> <text>The LEA and CMR may determine the guaranteed maximum price as follows:</text> <paragraph num="(a)"> <text>In competitive sealed bidding or quality based selection, the guaranteed maximum price is based on construction documents that are sufficiently developed to allow bidders to reasonably estimate and include costs for unspecified items, and includes:</text> <paragraph num="(i)"> <text>Cost of the work;</text> </paragraph> <paragraph num="(ii)"> <text>Construction management fee; and</text> </paragraph> <paragraph num="(iii)"> <text>General conditions; and</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>In competitive negotiation, including projects in which a construction manager has provided pre-GMP services, the LEA may begin negotiations to establish a guaranteed maximum price with the construction manager only after:</text> <paragraph num="(i)"> <text>The LEA has provided public notice of its intent and a request for competing proposals; and</text> </paragraph> <paragraph num="(ii)"> <text>At least 28 days have elapsed for receipt of competing proposals.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(3)"> <text>If the LEA receives competing proposals, the proposals shall be evaluated in accordance with COMAR 14.39.03.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Notice to IAC.</text> <paragraph num="(1)"> <text>Not later than 2 months before the release of solicitation documents to offerors, the LEA shall provide written notice to the IAC or its designee that the CMR method will be used.</text> </paragraph> <paragraph num="(2)"> <text>The LEA shall acknowledge in the notice that the State is not responsible for any project cost overruns.</text> </paragraph> <paragraph num="(3)"> <text>Not later than 1 month before release to offerors, the LEA shall submit the solicitation documents to the IAC or its designee for approval.</text> </paragraph> </paragraph> <paragraph num="D."> <text>State Reimbursement.</text> <paragraph num="(1)"> <text>State funds may be used to reimburse:</text> <paragraph num="(a)"> <text>Allowable pre-GMP costs only if related to the solicitation of trade packages; and</text> </paragraph> <paragraph num="(b)"> <text>Allowable post-GMP costs.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Allowable post-GMP construction management services, as determined by the IAC, shall be included in total construction cost as if the CMR were a general contractor for purposes of determining the maximum State construction allocation, payment of requisitions, and project close out.</text> </paragraph> <paragraph num="(3)"> <text>Total State reimbursement of eligible costs may not exceed the lesser of:</text> <paragraph num="(a)"> <text>The State's share of the guaranteed maximum price based on the cost-share formula; or</text> </paragraph> <paragraph num="(b)"> <text>The maximum State construction allocation.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>If an LEA intends to seek State reimbursement of any of the construction management services, the services shall be procured through one of the procurement methods provided in COMAR 14.39.03.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Trade Contracts.</text> <paragraph num="(1)"> <text>The CMR assumes all risk for cost, schedule, and performance of the trade contracts except for a trade contract that the LEA separately procures.</text> </paragraph> <paragraph num="(2)"> <text>Trade contracts may be procured concurrently or over the life of the project.</text> </paragraph> <paragraph num="(3)"> <text>After the guaranteed maximum price is finalized, any trade contract previously awarded by the LEA may be assigned to the CMR who then assumes all risk for coordination and completion of the trade contracts.</text> </paragraph> <paragraph num="(4)"> <text>Subcontracts solicited by the CMR as components of the final guaranteed maximum price do not require IAC approval.</text> </paragraph> <paragraph num="(5)"> <text>If the LEA intends to award a separate trade contract, the LEA shall submit the trade contract to the IAC for approval notwithstanding the subsequent inclusion of the trade contract in the guaranteed maximum price.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Design-Build."> <paragraph num="A."> <text>General.</text> <paragraph num="(1)"> <text>Design-build means a project delivery method in which a single entity is contractually responsible for both design and construction of a project.</text> </paragraph> <paragraph num="(2)"> <text>The LEA provides sufficient information to the design-build entity to guide it in the design of the project and specifies the reviews and approvals that will be required of the project.</text> </paragraph> <paragraph num="(3)"> <text>The design-build entity is responsible for the following:</text> <paragraph num="(a)"> <text>Quality of the design;</text> </paragraph> <paragraph num="(b)"> <text>Project costs;</text> </paragraph> <paragraph num="(c)"> <text>Construction quality;</text> </paragraph> <paragraph num="(d)"> <text>Adherence to the LEA's schedule for project completion and occupancy; and</text> </paragraph> <paragraph num="(e)"> <text>Other factors the LEA requires.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Design-build may extend beyond the design and construction phases of a project to include:</text> <paragraph num="(a)"> <text>Financing, in which case the method is called finance-design-build; or</text> </paragraph> <paragraph num="(b)"> <text>Provision of furniture and equipment, occupant move-in, or other post-construction tasks, except as limited by §A(5) of this regulation.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>The design-build entity may not perform the routine maintenance and operation of a school building after occupancy.</text> </paragraph> </paragraph> <paragraph num="B."> <text>IAC Approval.</text> <paragraph num="(1)"> <text>If the LEA decides to use the design-build method, the LEA:</text> <paragraph num="(a)"> <text>Shall request approval from the IAC or its designee 2 months prior to the release of the solicitation; and</text> </paragraph> <paragraph num="(b)"> <text>May not proceed with the design-build method until approval is obtained from the IAC or its designee.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The request for approval shall at a minimum include the proposed:</text> <paragraph num="(a)"> <text>Brief description of the scope of work;</text> </paragraph> <paragraph num="(b)"> <text>Project phasing;</text> </paragraph> <paragraph num="(c)"> <text>Schedule for the submission of plans and specifications for review by the IAC or its designee;</text> </paragraph> <paragraph num="(d)"> <text>Solicitation schedule;</text> </paragraph> <paragraph num="(e)"> <text>Procurement method;</text> </paragraph> <paragraph num="(f)"> <text>Financing arrangement, if applicable; and</text> </paragraph> <paragraph num="(g)"> <text>Performance expectations.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>The LEA shall acknowledge in the request for approval that the State is not responsible for any project cost overruns.</text> </paragraph> <paragraph num="(4)"> <text>The LEA shall send the draft design-build solicitation to the IAC or its designee for approval not later than 1 month before it is released to bidders.</text> </paragraph> <paragraph num="(5)"> <text>Authorization by the IAC or its designee to proceed with the design-build method is independent of approvals of project planning and funding. If the IAC or its designee authorizes the use of the design-build method but project planning is not approved, the project may proceed as a locally funded project.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Design-Build Procurement.</text> <paragraph num="(1)"> <text>The LEA may develop a design-build solicitation based on:</text> <paragraph num="(a)"> <text>Performance specification;</text> </paragraph> <paragraph num="(b)"> <text>Performance specification combined with concept or schematic design; or</text> </paragraph> <paragraph num="(c)"> <text>Performance specification combined with the LEA's prototype design.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>The performance specification shall include at a minimum:</text> <paragraph num="(a)"> <text>Educational specifications;</text> </paragraph> <paragraph num="(b)"> <text>Performance characteristics of the school facility;</text> </paragraph> <paragraph num="(c)"> <text>A schedule for completion and occupancy; and</text> </paragraph> <paragraph num="(d)"> <text>General conditions that clearly describe the respective responsibilities of the LEA and the design-build entity.</text> </paragraph> </paragraph> </paragraph> <paragraph num="D."> <text>State Reimbursement.</text> <paragraph num="(1)"> <text>If the LEA intends to seek State reimbursement, the LEA shall distinguish between preconstruction and construction scopes of work to allow the IAC or its designee to determine the costs that are eligible for State reimbursement.</text> </paragraph> <paragraph num="(2)"> <text>The State's maximum participation in the project is calculated when:</text> <paragraph num="(a)"> <text>The construction documents are complete; and</text> </paragraph> <paragraph num="(b)"> <text>The full scope of the project is known including ineligible items.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>Allowable preconstruction services, as determined by the IAC, shall be included in total construction cost.</text> </paragraph> <paragraph num="(4)"> <text>Final adjustment of the State's participation shall be made at project closeout.</text> </paragraph> <paragraph num="(5)"> <text>Total State reimbursement of eligible costs may not exceed the lesser of:</text> <paragraph num="(a)"> <text>The State's share of the guaranteed maximum price based on the cost-share formula; or</text> </paragraph> <paragraph num="(b)"> <text>The maximum State construction allocation.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Job Order Contracting."> <paragraph num="A."> <text>In this regulation, the following term has the meaning indicated.</text> </paragraph> <paragraph num="B."> <text>Term Defined. “Job order contracting (JOC)” means a project delivery method in which the LEA selects a contractor through a competitive procurement process based on a multiplier or coefficient that:</text> <paragraph num="(1)"> <text>Reflects the bidder's determination of the actual cost to perform the work plus overhead and profit; and</text> </paragraph> <paragraph num="(2)"> <text>Is applied to a fixed-price list of construction items and activities.</text> </paragraph> </paragraph> <paragraph num="C."> <text>The fixed prices of the construction items and activities are defined by the LEA or through a standard project cost source.</text> </paragraph> <paragraph num="D."> <text>The schedule of fixed prices may include a construction escalation factor for multiyear contracts.</text> </paragraph> <paragraph num="E."> <text>Procurement and Award.</text> <paragraph num="(1)"> <text>An LEA shall obtain a JOC through a competitive procurement process, whether or not the LEA intends to execute State-funded projects through the JOC.</text> </paragraph> <paragraph num="(2)"> <text>The JOC may include extension clauses, but the State may not participate in a project executed under a JOC that:</text> <paragraph num="(a)"> <text>Has more than three annual extensions; or</text> </paragraph> <paragraph num="(b)"> <text>Has been increased by change order above the maximum combined price indicated in the solicitation, including all potential extensions, except for changes of scope to individual projects already begun before completion of the final annual extension.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>When submitting a contract approval to the IAC, the LEA must acknowledge that the State is not responsible for any project cost overruns.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Approvals. If an LEA intends to execute a State-funded project through a JOC, it:</text> <paragraph num="(1)"> <text>Shall provide the IAC or its designee with a brief description of the anticipated scope of work, the duration of the JOC contract, the number of annual extensions, and the maximum combined cost of the projects to be performed under the JOC;</text> </paragraph> <paragraph num="(2)"> <text>Shall submit the project for design review prior to the start of construction [shall be required] if it would be required for similar project funded through the same State funding program;</text> </paragraph> <paragraph num="(3)"> <text>May reference an earlier approval and the JOC solicitation if approval is requested for a project to be executed through a JOC under which a State-funded project was previously approved, but is not required to resubmit all relevant information;</text> </paragraph> <paragraph num="(4)"> <text>Shall obtain approval of contract award, reimbursement, or both, in the manner and timeframe required for all projects funded under the relevant program;</text> </paragraph> <paragraph num="(5)"> <text>Shall, for design-build JOC projects, clearly indicate on the request for approval of contract award or for reimbursement those portions of the project cost that are associated with preconstruction activities in order to allow the IAC or its designee to determine which costs are eligible for State reimbursement;</text> </paragraph> <paragraph num="(6)"> <text>Shall include in the total construction cost allowable preconstruction services, as determined by the IAC; and</text> </paragraph> <paragraph num="(7)"> <text>Shall acknowledge that final adjustment of the State’s participation will be made at project closeout.</text> </paragraph> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§4-126, 5-112, and 5-303, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 21, 2007 (34:10 Md. R. 891)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.04 recodified to be COMAR 14.39.04 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective June 28, 2021 (48:13 Md. R. 509)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04A amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05 amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .05D, E amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .06B, D amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .08E, F amended effective August 18, 2025 (52:16 Md. R. 848)</annotation> <annotation type="History" subtype="Administrative History">Regulation .09 repealed effective June 28, 2021 (48:13 Md. R. 509)</annotation> </annotations> </chapter> <chapter num="05" heading="Alternative Financing"> <regulation prefix="Regulation" num=".01" heading="Scope."> <paragraph num="A."> <text>This chapter applies to a public school construction project for building, improvement, supplies, or equipment if it:</text> <paragraph num="(1)"> <text>Exceeds $50,000 and has IAC planning or funding approval; or</text> </paragraph> <paragraph num="(2)"> <text>Requires review by the State Superintendent of Schools under Education Article, §2-303, Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="B."> <text>This chapter does not apply to a project in a building that is not used primarily for the instruction of students, including an office building, warehouse, or vehicle maintenance or repair building.</text> </paragraph> <paragraph num="C."> <text>In this chapter, “IAC or its designee” includes “State Superintendent or designee” if State Superintendent approval is required by Education Article, §2-303(f), Annotated Code of Maryland.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Alternative Project Proposal Review Assistance."> <text>The State Superintendent or designee may request assistance from the IAC or its designee when reviewing alternative project financing proposals.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Educational and Design Standards Apply."> <text>All projects financed through alternative methods shall comply with State procedures for project design review.</text> </regulation> <regulation prefix="Regulation" num=".04" heading="Use of Alternative Financing Methods."> <paragraph num="A."> <text>A county or an LEA may use alternative financing methods for public school construction.</text> </paragraph> <paragraph num="B."> <text>An LEA shall obtain the approval of the county governing body to use an alternative financing method.</text> </paragraph> <paragraph num="C."> <text>Alternative financing shall be conducted consistent with Education Article, §4-126, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§4-126, 5-112, and 5-303, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: May 21, 2007 (34:10 Md. R. 891)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective September 28, 2015 (42:19 Md. R. 1229)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.05 recodified to be COMAR 14.39.05 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01A amended effective November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04C adopted effective November 4, 2019 (46:22 Md. R. 979)</annotation> </annotations> </chapter> <chapter num="06" heading="Relocatable Classroom Indoor Environmental Quality Standards"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this regulation, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Locally-constructed relocatable classroom” means a relocatable classroom that is constructed at the school site.</text> </paragraph> <paragraph num="(2)"> <text>“Model Performance Code” means the construction standards stated in COMAR 09.12.50.03:</text> </paragraph> <paragraph num="(3)"> <text>“Pre-manufactured unit” means a relocatable classroom that is constructed off-site and transported to the school site.</text> </paragraph> <paragraph num="(4)"> <text>“Relocatable classroom” means a classroom unit that is capable of being disconnected and transported from one school site and reinstalled at another school site.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Relocatable Classrooms Indoor Environmental Quality Standards."> <paragraph num="A."> <text>All relocatable classrooms used for student instruction at public schools must conform to Indoor Environmental Quality Standards that meet the Maryland Green Building Council International Green Construction Code (IgCC) Supplement, Chapter 8, Section 801 through 806, which is incorporated by reference; and</text> </paragraph> <paragraph num="B."> <text>One of the following:</text> <paragraph num="(1)"> <text>The Model Performance Code for pre-manufactured units; or</text> </paragraph> <paragraph num="(2)"> <text>Local building codes for locally-constructed relocatable classrooms.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Exceptions."> <text>This chapter does not apply to relocatable classrooms constructed before July 1, 2015.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §5-303(b), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 28, 2015 (42:19 Md. R. 1229)</annotation> <annotation type="History" subtype="Administrative History">COMAR 23.03.06 recodified to be COMAR 14.39.06 under new subtitle, Interagency Commission on School Construction, effective November 4, 2019 (46:22 Md. R. 979)</annotation> </annotations> </chapter> <chapter num="07" heading="Public School Facilities Educational Sufficiency Standards"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>The purpose of Maryland Public School Facilities Educational Sufficiency Standards is to establish acceptable minimum levels for the physical attributes, capacity, and educational suitability of existing public PreK—12 school facilities in order to assess existing facilities against a defined standard to identify deficiencies.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <paragraph num="A."> <text>As required by Education Article, §5-310, Annotated Code of Maryland, the Facilities Educational Sufficiency Standards established in this chapter shall be used to complete assessments of existing school facilities Statewide.</text> </paragraph> <paragraph num="B."> <text>The chapter is to be used for assessment purposes only and are not requirements for school facility design or construction.</text> </paragraph> <paragraph num="C."> <text>This chapter may not supersede or obviate compliance with applicable building and fire codes or any other code, regulation, law, or standard that has been adopted by State agencies.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="General Requirements."> <paragraph num="A."> <text>Building Condition.</text> <paragraph num="(1)"> <text>A school facility shall be safe and capable of being maintained.</text> </paragraph> <paragraph num="(2)"> <text>A school facility shall be structurally sound. A school facility shall be considered structurally sound if the building presents:</text> <paragraph num="(a)"> <text>No imminent danger;</text> </paragraph> <paragraph num="(b)"> <text>No major visible signs of decay or distress; or</text> </paragraph> <paragraph num="(c)"> <text>Structural systems support the loads imposed on them.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>An exterior envelope is safe and capable of being maintained if:</text> <paragraph num="(a)"> <text>Walls and roof are weather-tight under normal conditions with routine upkeep; and</text> </paragraph> <paragraph num="(b)"> <text>Doors and windows are weather-tight under normal conditions with routine upkeep.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>An interior surface is safe and capable of being maintained if it is:</text> <paragraph num="(a)"> <text>Structurally sound;</text> </paragraph> <paragraph num="(b)"> <text>Capable of supporting a finish; and</text> </paragraph> <paragraph num="(c)"> <text>Capable of continuing in its intended use with normal maintenance and repair.</text> </paragraph> </paragraph> <paragraph num="(5)"> <text>An interior finish is safe and capable of being maintained if it is:</text> <paragraph num="(a)"> <text>Free of exposed lead paint;</text> </paragraph> <paragraph num="(b)"> <text>Free of exposed friable asbestos; and</text> </paragraph> <paragraph num="(c)"> <text>Capable of continuing in its intended use with normal maintenance and repair.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Building Systems.</text> <paragraph num="(1)"> <text>Building systems in a school facility shall be in working order and capable of being properly maintained.</text> </paragraph> <paragraph num="(2)"> <text>Building systems include but are not limited to the following:</text> <paragraph num="(a)"> <text>Roof;</text> </paragraph> <paragraph num="(b)"> <text>Plumbing;</text> </paragraph> <paragraph num="(c)"> <text>Telephone;</text> </paragraph> <paragraph num="(d)"> <text>Electrical;</text> </paragraph> <paragraph num="(e)"> <text>Heating and cooling systems;</text> </paragraph> <paragraph num="(f)"> <text>Fire alarm;</text> </paragraph> <paragraph num="(g)"> <text>Two-way internal communication;</text> </paragraph> <paragraph num="(h)"> <text>Technological infrastructure; and</text> </paragraph> <paragraph num="(i)"> <text>Security systems.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A building system shall be considered to be in working order and capable of being maintained if the following apply:</text> <paragraph num="(a)"> <text>The system is capable of being operated as intended and maintained;</text> </paragraph> <paragraph num="(b)"> <text>Newly manufactured or cost-effective refurbished replacement parts are available;</text> </paragraph> <paragraph num="(c)"> <text>The system is capable of supporting the standards established in this rule; and</text> </paragraph> <paragraph num="(d)"> <text>Components of the system present no imminent danger of personal injury.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>Sanitary Facilities.</text> <paragraph num="(a)"> <text>Fixtures shall include but are not limited to the following:</text> <paragraph num="(i)"> <text>Water closets;</text> </paragraph> <paragraph num="(ii)"> <text>Urinals;</text> </paragraph> <paragraph num="(iii)"> <text>Lavatories; and</text> </paragraph> <paragraph num="(iv)"> <text>Drinking fountains.</text> </paragraph> </paragraph> <paragraph num="(b)"> <text>Wherever possible within reasonable cost constraints, restrooms shall be accessible to general classrooms for grades 3 and below and for special-needs classrooms without having to exit the building.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Classifications of Public Schools."> <text>The classifications for public schools under these standards are as follows:</text> <paragraph num="A."> <text>Elementary School, which houses pre-kindergarten through grade 5 or any subset thereof;</text> </paragraph> <paragraph num="B."> <text>Middle School, which houses grade 6 through grade 8;</text> </paragraph> <paragraph num="C."> <text>High School, which houses grade 9 through grade 12;</text> </paragraph> <paragraph num="D."> <text>Combination School, which houses a combination of any grade levels; and</text> </paragraph> <paragraph num="E."> <text>Other School, which includes but is not limited to the following:</text> <paragraph num="(1)"> <text>Early-childhood-education centers;</text> </paragraph> <paragraph num="(2)"> <text>Special-education centers;</text> </paragraph> <paragraph num="(3)"> <text>Career-technology centers; and</text> </paragraph> <paragraph num="(4)"> <text>Alternative-education schools.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="School Site."> <paragraph num="A."> <text>A school site shall be of sufficient size to accommodate safe access, parking, drainage, and security and shall have an adequate source of water and appropriate means of effluent disposal.</text> </paragraph> <paragraph num="B."> <text>Safe Access.</text> <paragraph num="(1)"> <text>A school site shall be configured for safe and controlled access that separates pedestrian traffic from vehicular traffic.</text> </paragraph> <paragraph num="(2)"> <text>If buses are used to transport students, then bus loading and unloading areas shall be separated from vehicular-traffic areas wherever possible.</text> </paragraph> <paragraph num="(3)"> <text>Dedicated student drop-off and pickup areas shall be provided for safe use by student passengers arriving or departing by automobile.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Parking. A school site shall include a surfaced area that is capable of being maintained, stable, firm, slip resistant, and large enough to accommodate 1.5 parking spaces per full-time-equivalent employee and one student space per ten high school students. Alternative parking may be approved after the sufficiency of parking at the site is reviewed by the IAC based on the following criteria:</text> <paragraph num="(1)"> <text>Availability of street parking around the school;</text> </paragraph> <paragraph num="(2)"> <text>Availability of any nearby parking lots;</text> </paragraph> <paragraph num="(3)"> <text>Availability of public transit;</text> </paragraph> <paragraph num="(4)"> <text>Number of staff who drive to work on a daily basis; and</text> </paragraph> <paragraph num="(5)"> <text>Average number of visitors on a daily basis.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Drainage. A school site shall be configured such that runoff does not undermine the structural integrity of the school buildings located on-site or create flooding, ponding, or erosion resulting in a threat to health, safety, or welfare.</text> </paragraph> <paragraph num="E."> <text>Security. All schools shall have safe and secure site fencing or other barriers with accommodations for safe passage through openings to protect students from the hazards of traffic, railroad tracks, animal nuisance, and steep slopes.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Site Recreation and Outdoor Physical Education."> <paragraph num="A."> <text>A school facility shall have area, space, and fixtures, in accordance with the standard equipment necessary to meet the educational requirements of the public education department, for physical-education activity.</text> </paragraph> <paragraph num="B."> <text>An elementary school shall provide:</text> <paragraph num="(1)"> <text>At least one safe play area (and playground, including a hard surfaced court and unpaved recreation area, which shall be conveniently accessible to the students;</text> </paragraph> <paragraph num="(2)"> <text>At least one play area and appropriate equipment for physical education and school recreational purposes, based on the planned school program capacity;</text> </paragraph> <paragraph num="(3)"> <text>For schools that serve students in grade 5 and below, a protected play area; and</text> </paragraph> <paragraph num="(4)"> <text>Play-equipment areas with surfacing materials that meet or exceed safety specifications for shock-absorbing qualities as outlined by the U.S. Consumer Product Safety Commission.</text> </paragraph> </paragraph> <paragraph num="C."> <text>A middle school shall provide at least one hard surfaced court and playing field for physical-education activities; and the number of playing fields and quantity and type of equipment shall be based on the planned school program capacity.</text> </paragraph> <paragraph num="D."> <text>A high school shall provide a playing field for physical-education activities, and the number of laying fields and quantity and type of equipment shall be based on the planned school program capacity.</text> </paragraph> <paragraph num="E."> <text>A combination school shall provide the elements of the grades served by §§B—D of this regulation without duplication, but shall meet the highest standard.</text> </paragraph> <paragraph num="F."> <text>Other schools shall provide the elements above necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Academic Classroom Space."> <paragraph num="A."> <text>Classroom spaces, including those for physical education, shall be sufficient for educational programs that are appropriate for the class-level needs.</text> </paragraph> <paragraph num="B."> <text>Classroom Fixtures and Equipment.</text> <paragraph num="(1)"> <text>With the exception of physical-education spaces, each general and specialty classroom shall contain a work surface and seat for each student in the classroom. The work surface and seat shall be appropriate for the normal activity of the class conducted in the room.</text> </paragraph> <paragraph num="(2)"> <text>Each general and specialty classroom shall have an erasable surface and a surface suitable for projection purposes, appropriate for group classroom instruction, and a display surface. A single surface may meet one or more of these purposes.</text> </paragraph> <paragraph num="(3)"> <text>Each general and specialty classroom shall have storage for classroom materials or access to conveniently located storage.</text> </paragraph> <paragraph num="(4)"> <text>With the exception of physical-education spaces and music-education spaces, each general and specialty classroom shall have a work surface and seat for the teacher and for any aide assigned to the classroom. The classroom shall have secure storage for student records that is located in the classroom or is conveniently accessible to the classroom.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Classroom Lighting.</text> <paragraph num="(1)"> <text>Each general and specialty classroom shall have a light system capable of maintaining at least 50 foot-candles of well-distributed light. A school shall provide appropriate task lighting in specialty classrooms where enhanced visibility is required.</text> </paragraph> <paragraph num="(2)"> <text>The light level shall be measured at a work surface located in the approximate center of the classroom, between clean light fixtures.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Classroom Temperature and Relative Humidity.</text> <paragraph num="(1)"> <text>Each general and specialty classroom shall have a heating, ventilation, and air conditioning (HVAC) system capable of maintaining a temperature between 68°F and 75°F and a relative humidity between 30 and 60 percent at full occupancy.</text> </paragraph> <paragraph num="(2)"> <text>The temperature and humidity shall be measured at a work surface in the approximate center of the classroom.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Classroom Acoustics.</text> <paragraph num="(1)"> <text>With the exception of physical-education spaces, each general and specialty classroom shall be maintainable at a sustained background sound level of less than 55 decibels.</text> </paragraph> <paragraph num="(2)"> <text>The sound level shall be measured at a work surface in the approximate center of the classroom.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Classroom Air Quality.</text> <paragraph num="(1)"> <text>Each general, science, and fine-arts classroom shall have an HVAC system that continuously moves air and is capable of maintaining a carbon dioxide level of not more than 1,200 parts per million.</text> </paragraph> <paragraph num="(2)"> <text>The air quality shall be measured at a work surface in the approximate center of the classroom.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="General Use Classrooms."> <paragraph num="A."> <text>Cumulative classroom net square foot requirements, excluding in-classroom storage space and any in-classroom toilet rooms, shall be at least:</text> <paragraph num="(1)"> <text>For prekindergarten, 50 net square feet per student;</text> </paragraph> <paragraph num="(2)"> <text>For kindergarten, 50 net square feet per student;</text> </paragraph> <paragraph num="(3)"> <text>For grades 1—8, 32 net square feet per student; and</text> </paragraph> <paragraph num="(4)"> <text>For grades 9—12, 25 net square feet per student;</text> </paragraph> </paragraph> <paragraph num="B."> <text>At least 2 net square feet per student shall be available for dedicated, in-classroom storage and may be provided vertically to avoid the need for additional floor area.</text> </paragraph> <paragraph num="C."> <text>Sufficient number of classrooms shall be provided to meet State and local board mandated student-to-staff ratio requirements Administrative History.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Specialty Classrooms."> <paragraph num="A."> <text>Special Education.</text> <paragraph num="(1)"> <text>To the maximum extent appropriate, students with disabilities shall be educated in the least restrictive environment with students who are not disabled. A continuum of alternative placements shall be provided.</text> </paragraph> <paragraph num="(2)"> <text>If a special-education space for pull-out purposes other than calming is provided and the space is required to support educational programs, services, and curricula, the space may not be smaller than 450 net square feet.</text> </paragraph> <paragraph num="(3)"> <text>When the need is demonstrated by a local education agency, additional space in the classroom shall be provided with, or students shall have an accessible route to an accessible unisex restroom with one toilet, sink, washer/dryer, and shower stall/tub, as needed, and at least 15 net square feet of storage.</text> </paragraph> <paragraph num="(4)"> <text>When the need is demonstrated by a local education agency, in 6th grade classrooms and above, a kitchenette of least 30 net square feet shall be provided.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Science Classrooms.</text> <paragraph num="(1)"> <text>For grades PreK through 5, no additional space is required beyond the classroom requirement.</text> </paragraph> <paragraph num="(2)"> <text>For grades 6 through 12, 4 net square feet per student of the specialty program capacity for science is required. The space may not be smaller than the average classroom at the facility. This space is included in the academic classroom requirement and may be used for other instruction. The space shall have science fixtures and equipment, in accordance with the standard equipment necessary to meet the educational requirements of the Maryland Science Content Standards.</text> </paragraph> <paragraph num="(3)"> <text>For grades 9 through 12 only, at least 40 net square feet of space is provided for securable, well-ventilated storage or prep space for each science room having science fixtures and equipment. Storage/prep rooms may be combined and shared between more than one classroom.</text> </paragraph> </paragraph> <paragraph num="C."> <text>Fine-Arts Education.</text> <paragraph num="(1)"> <text>A school facility shall have classroom space to deliver fine-arts education programs which include the following:</text> <paragraph num="(a)"> <text>Art;</text> </paragraph> <paragraph num="(b)"> <text>Music;</text> </paragraph> <paragraph num="(c)"> <text>Dance; and</text> </paragraph> <paragraph num="(d)"> <text>Theater.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Elementary school fine-arts education programs:</text> <paragraph num="(a)"> <text>May be accommodated within a general-use or dedicated arts classroom;</text> </paragraph> <paragraph num="(b)"> <text>Shall provide one dedicated classroom for each fine-arts subject area staffed with greater than 0.5 full-time fine-arts teacher; and</text> </paragraph> <paragraph num="(c)"> <text>Shall provide additional dedicated fine-arts program storage of at least 60 net square feet for each subject area per facility.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>A middle school shall provide classroom space for fine-arts education programs that:</text> <paragraph num="(a)"> <text>Contains no less than 4 net square feet per student of the specialty program capacity for fine-arts subjects;</text> </paragraph> <paragraph num="(b)"> <text>Provides one dedicated classroom for each fine-arts subject area staffed with greater than 0.5 full-time fine-arts teacher; and</text> </paragraph> <paragraph num="(c)"> <text>Provides additional 60 net square feet of storage for each fine-arts program subject.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A high school shall provide classroom spaces for fine-arts education programs that contain no less than 5 net square feet of the specialty program capacity for fine-arts subjects.</text> </paragraph> <paragraph num="(5)"> <text>A combination school shall provide the elements of the grades served by §C(1)—(4) of this regulation without duplication but meeting the highest square footage standards.</text> </paragraph> <paragraph num="(6)"> <text>Other schools shall provide the elements included in §C(1)—(4) of this regulation that are necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Technology Education and Computer Science.</text> <paragraph num="(1)"> <text>For grades K through 5, no additional space is required beyond the classroom requirement.</text> </paragraph> <paragraph num="(2)"> <text>For grades 6 through 8, 3 net square feet, and 4 net square feet for grades 9 through 12, of the specialty program capacity for technology education and family and consumer science is required. The space shall be no smaller than the average classroom at the facility. This space is included in the academic classroom requirement and may be used for other instruction.</text> </paragraph> <paragraph num="(3)"> <text>The space shall have technology fixtures and equipment, in accordance with the standard equipment necessary to meet the educational requirements of the Maryland Technology Education Content Standards, and, in high school, the requirements of Maryland Advanced Technology Education electives where such electives are offered.</text> </paragraph> <paragraph num="(4)"> <text>Provide at least 80 net square feet for securable, well-ventilated storage/prep space for each technology education room having technology fixtures and equipment. Storage/prep rooms may be combined and shared between more than one classroom.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Career and Technology Education.</text> <paragraph num="(1)"> <text>Elementary schools have no requirement.</text> </paragraph> <paragraph num="(2)"> <text>Middle schools shall include space for career-development and career-exploration activities. Each program lab or classroom space shall be no smaller than 650 net square feet.</text> </paragraph> <paragraph num="(3)"> <text>High School Career and Technology Education.</text> <paragraph num="(a)"> <text>Program space shall be provided with no less than 4 net square feet of the specialty program capacity of the school for career education.</text> </paragraph> <paragraph num="(b)"> <text>Each program lab or classroom space shall be no smaller than 650 net square feet.</text> </paragraph> <paragraph num="(c)"> <text>Spaces for programs requiring licensing, certification, or accreditation by a State board or agency shall meet all applicable health and safety standards. Cosmetology and barber programs shall comply with the sanitation requirements of the State Board of Cosmetologists and the State Board of Barbers, respectively.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>A combination school shall provide the elements of the grades served by §E(1)—(3) of this regulation without duplication, but meeting the higher standards.</text> </paragraph> <paragraph num="(5)"> <text>Other schools shall provide the elements above necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="School Library/Media Center."> <paragraph num="A."> <text>A school facility shall have a unified school library/media program for the use of all students which shall include an organized and centrally managed collection of instructional materials and technologies and direct instruction.</text> </paragraph> <paragraph num="B."> <text>Elementary schools shall include an area for stacks and seating space which shall be at least 3 net square feet of the planned school program capacity. The instructional space may not be smaller than the average classroom at the facility. In addition, office/workroom space and secure storage shall be provided.</text> </paragraph> <paragraph num="C."> <text>Middle and high schools shall include an area for stacks and seating space which shall be at least 3 net square feet of the planned school program capacity. The space may not be smaller than the average classroom at the facility. In addition, office/workroom space and secure storage shall be provided.</text> </paragraph> <paragraph num="D."> <text>Combination schools shall include the elements of the grades set out in §§B and C of this regulation without duplication, but meeting the higher standards.</text> </paragraph> <paragraph num="E."> <text>Other schools shall include the elements in §§A—D of this regulation necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Physical Education."> <paragraph num="A."> <text>General Requirements.</text> <paragraph num="(1)"> <text>Each school shall provide an instructional program in physical education each year for all students in grades PreK-8. Each school shall offer a physical-education program in grades 9—12 which shall enable students to meet graduation requirements and to select physical-education electives. The following minimum spaces are required:</text> <paragraph num="(a)"> <text>A gymnasium;</text> </paragraph> <paragraph num="(b)"> <text>A teacher office or planning area;</text> </paragraph> <paragraph num="(c)"> <text>Equipment storage; and</text> </paragraph> <paragraph num="(d)"> <text>An outdoor instructional playing field.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Elementary schools shall include a gymnasium with at least 2,200 net square feet. This space may have multi-purpose use in accommodating other educational program activities such as art program performances.</text> </paragraph> <paragraph num="(3)"> <text>Middle schools shall include a gymnasium with a minimum of 5,200 net square feet plus an additional 4 net square feet times 40 percent of the enrollment of the school devoted to bleacher seating.</text> </paragraph> <paragraph num="(4)"> <text>High schools shall include a gymnasium with at least 6,500 net square feet plus an additional 4 net square feet times 40 percent of the enrollment of the school devoted to bleacher seating.</text> </paragraph> <paragraph num="(5)"> <text>Combination schools shall include the elements of the grades served by §A(2)—(4) of this regulation without duplication, but meeting the higher net square feet standards.</text> </paragraph> <paragraph num="(6)"> <text>Other schools shall include the elements above necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Physical-Education Requirements in Addition to Space Requirements in §A of This Regulation.</text> <paragraph num="(1)"> <text>Elementary schools shall include one office. Separate physical-education equipment storage shall be provided.</text> </paragraph> <paragraph num="(2)"> <text>Middle schools shall include one office. Separate physical-education equipment storage space shall be provided.</text> </paragraph> <paragraph num="(3)"> <text>High schools shall include two dressing rooms with lockers, showers, and restroom fixtures. Two offices shall be provided. Separate physical-education equipment storage space shall be provided.</text> </paragraph> <paragraph num="(4)"> <text>Combination schools shall include the elements of the grades served by §B(1)—(3) of this regulation without duplication, but meeting the higher standards.</text> </paragraph> <paragraph num="(5)"> <text>Other schools shall provide the elements above necessary to meet the educational requirements of the specific programs and capacity of the schools.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Food Services."> <paragraph num="A."> <text>Dining Area. A school facility shall have a space to permit students to eat within the school outside of general classrooms. This space may have more than one function and may fulfill more than one sufficiency standards requirement. The dining area shall be sized to accommodate no less than one third of the planned school program capacity of the school. The dining area shall have no less than 15 net square feet per seated student.</text> </paragraph> <paragraph num="B."> <text>Serving Area. A serving area shall be provided in addition to a dining area.</text> </paragraph> <paragraph num="C."> <text>Kitchen Area. A kitchen shall have a telephone, plumbing providing potable water, a sink suitable for use both in preparing food and washing utensils, and a separate hand-washing sink. Kitchen and equipment shall comply with either the food preparation kitchen or the serving kitchen standards defined as follows:</text> <paragraph num="(1)"> <text>Food preparation kitchen: Provide at least the greater of:</text> <paragraph num="(a)"> <text>A minimum of 2 net square feet per meal served during the single largest serving period; or</text> </paragraph> <paragraph num="(b)"> <text>No fewer than 2 square feet per enrolled student eligible for free or reduced-price meals.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>Serving kitchen: Where food is not prepared, there shall be a minimum of 200 net square feet.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Other Facility Areas."> <paragraph num="A."> <text>Administrative Space. A school facility shall have space to be used for the administration of the school. The space shall consist of a minimum of 150 net square feet, plus 1 net square foot per student of the planned school program capacity.</text> </paragraph> <paragraph num="B."> <text>Faculty Workroom/Lounge. A school facility shall have a workspace/lounge available to the faculty. This space is in addition to any workspace/lounge available to a teacher in or near a classroom. The space shall consist of 1 net square foot per student of the planned school program capacity with no less than 150 net square feet. The space may consist of more than one room and may have more than one function. This space shall include a break area with a sink.</text> </paragraph> <paragraph num="C."> <text>Health Services. A school facility shall have a dedicated health services space with a minimum of 500 net square feet that includes:</text> <paragraph num="(1)"> <text>Areas for waiting, examination and treatment, resting, storage;</text> </paragraph> <paragraph num="(2)"> <text>An accessible toilet room;</text> </paragraph> <paragraph num="(3)"> <text>A separate room for private consultations and for use as a health service professional’s office;</text> </paragraph> <paragraph num="(4)"> <text>Lockable cabinets for medical records and medications; and</text> </paragraph> <paragraph num="(5)"> <text>At least one sink that provides both hot and cold water in addition to the sink in the toilet room.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Pupil Services. A school shall provide a coordinated program of pupil services for all students, which shall include, but not be limited to, school counseling, pupil personnel, school psychology, and health services. The school facility shall provide a minimum of 120 net square feet for each discipline, except school health services, and be staffed with greater than a 0.5 full-time professional.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="General Storage."> <text>For general storage, which excludes lockers, janitorial, kitchen, general classroom, specialty classrooms, and administrative storage, at least 1 net square foot of the planned school program capacity may be distributed in or throughout any type of room or space, but may not count toward required room square footages. General storage shall be securable and include textbook storage.</text> </regulation> <regulation prefix="Regulation" num=".15" heading="Maintenance and Janitorial Space."> <text>Each school shall designate 0.5 net square feet per student of the planned school program capacity for maintenance and janitorial space. Janitorial space shall include a janitorial sink.</text> </regulation> <regulation prefix="Regulation" num=".16" heading="Standards Variance."> <text>The IAC may grant a variance from any of the Sufficiency Standards if it determines that the intent of the standard can be met by the school system in an alternate manner or if a variance is required for appropriate programmatic needs as demonstrated by the school system. If the IAC grants the variance, the school system shall be deemed to have met the standard.</text> </regulation> <regulation prefix="Regulation" num=".17" heading="Facility Assessment."> <text>Each school facility shall be assessed at least once every 4 years.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §5-310, Annotated Code of Maryland; Ch. 14, Acts of 2018</annotation> <annotation type="History" subtype="Administrative History">Effective date: November 4, 2019 (46:22 Md. R. 979)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02D adopted effective October 5, 2020 (47:20 Md. R. 876)</annotation> <annotation type="History" subtype="Administrative History">Chapter revised effective December 12, 2022 (49:25 Md. R. 1050)</annotation> </annotations> </chapter> </subtitle> <subtitle num="40" heading="Maryland Center for School Safety"> <chapter num="01" heading="Meetings"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Advisory Board” has the meaning stated in Education Article, §7-1501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Center” means the Maryland Center for School Safety, its Subcabinet, the Advisory Board to the Subcabinet, its committees, and any other public bodies under the authority and acting on behalf of the Maryland Center for School Safety.</text> </paragraph> <paragraph num="(3)"> <text>“Open session” means a meeting of the Subcabinet or the Advisory Board that is required to be open to the public pursuant to the Open Meetings Act, General Provisions Article, Title 3, Subtitle 3, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Subcabinet” has the meaning stated in Education Article, §7-1501, Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Public Attendance."> <paragraph num="A."> <text>The general public is invited to attend and observe any open sessions of the Center.</text> </paragraph> <paragraph num="B."> <text>Meetings shall be held in a location that is reasonably accessible to individuals who would like to attend and observe an open session of the Center.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Public Participation Limited."> <text>A member of the public attending an open session may not participate in the session except to the extent:</text> <paragraph num="A."> <text>The Center expressly invites public testimony, questions, comments, or other forms of public participation; or</text> </paragraph> <paragraph num="B."> <text>The Chair of the Subcabinet, the Chair of the Advisory Board, or a member of the Center invites the public to comment or as entitled by law to participate,</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Disruptive Conduct."> <paragraph num="A."> <text>An individual attending an open session may not engage in conduct that disrupts the session or interferes with the right of members of the public to attend and observe the session. This includes but is not limited to visual demonstrations, such as the display of placards, signs, or banners, and verbal outbursts from attendees not recognized by the Chair to participate in the session.</text> </paragraph> <paragraph num="B."> <text>Authority of the Chair of the Subcabinet and Chair of the Advisory Board.</text> <paragraph num="(1)"> <text>The Chair may order an individual who violates §A of this regulation, or who violates any other regulation or resolution concerning the conduct of the open session, to be removed from the session, and may request law enforcement assistance to restore order.</text> </paragraph> <paragraph num="(2)"> <text>The Chair may recess the session while order is restored.</text> </paragraph> </paragraph> <paragraph num="C."> <text>An individual who is asked to leave the session in accordance with these regulations and who refuses to do so may be subject to arrest as provided by law.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Recording, Photographing, and Broadcasting of Open Session."> <paragraph num="A."> <text>A member of the public, including a representative of the news media, may:</text> <paragraph num="(1)"> <text>Record the discussions at an open session using a tape recorder or other recording device if the device used does not create excessive noise that disturbs the open session or other individuals attending the session; or</text> </paragraph> <paragraph num="(2)"> <text>Photograph or videotape the proceedings of an open session using any type of camera if the camera is operated without excessively bright artificial light or excessive noise that disturbs the open session or other individuals attending the session.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A representative of the news media may broadcast or televise the open session if the equipment used does not create excessively bright artificial light, excessive noise, or other conditions determined at the discretion of the Chair that would disturb the open session or other individuals attending the session.</text> </paragraph> <paragraph num="C."> <text>The Chair may restrict the movement of an individual who is using a recording device, a camera, or broadcasting or televising equipment if the restriction is necessary to maintain the orderly conduct of the open session.</text> </paragraph> <paragraph num="D."> <text>A member of the public who intends to record the discussions at an open session is requested to provide written notice to the Executive Director of the Center in advance of the meeting advising of the intention to record the proceedings and specifying the type of equipment to be used to record the proceedings.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".06" heading="Recordings Not Part of Record."> <text>A recording of, or any transcript derived from a recording of, an open session made by a member of the public, including a representative of the news media, is not a part of the record of the open session.</text> </regulation> <annotations> <annotation type="Authority">Education Article, §7-1503(g); General Provisions Article, §3-101, et seq.; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 9, 2020 (47:5 Md. R. 312)</annotation> </annotations> </chapter> <chapter num="02" heading="Inspection of and Copying of Public Records"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>This chapter sets forth procedures for the disclosure, inspection, or copying of public records maintained by the Maryland Center for School Safety.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Policy."> <text>It is the policy of the Maryland Center for School Safety to facilitate public access to the Center’s public records when access is authorized by law.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, Title 4, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Advisory Board” has the meaning stated in Education Article, §7-1501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Applicant” has the meaning stated in General Provisions Article, §4-101(b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Center” means the Maryland Center for School Safety, its Subcabinet, Advisory Board to the Subcabinet, advisory councils, workgroups, and committees, any other public bodies under the authority and acting on behalf of the Maryland Center for School Safety, and any employees, agents, or contractors acting on behalf of the Maryland Center for School Safety.</text> </paragraph> <paragraph num="(5)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Executive Director” means the Executive Director of the Maryland Center for School Safety, as set forth in Education Article, §7-1502(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(7)"> <text>“Official custodian” has the meaning stated in General Provisions Article, §4-101(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(8)"> <text>“Person in interest” means:</text> <paragraph num="(a)"> <text>A person or governmental unit that is the subject of a public record;</text> </paragraph> <paragraph num="(b)"> <text>An authorized designee of the person or governmental unit that is the subject of a public record; or</text> </paragraph> <paragraph num="(c)"> <text>If the person has a legal disability, a parent or legal representative of the person that is the subject of a public record.</text> </paragraph> </paragraph> <paragraph num="(9)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(10)"> <text>“Subcabinet” has the meaning stated in Education Article, §7-1501, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(11)"> <text>“Working day” means a day other than Saturday, Sunday, or a State holiday or service reduction day.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Official Custodian."> <paragraph num="A."> <text>The Executive Director shall designate an official custodian of public records for the Center.</text> </paragraph> <paragraph num="B."> <text>The website for the Center shall provide the name and contact information for the custodian of public records.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Who May Request Public Records."> <text>Any person may request to inspect or copy public records of the Center.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Necessity for Written Request."> <paragraph num="A."> <text>Inspection.</text> <paragraph num="(1)"> <text>Except as otherwise provided in this chapter, the custodian shall make public records of the Center available for inspection by an applicant without demanding a written request.</text> </paragraph> <paragraph num="(2)"> <text>The custodian shall require a written request if the custodian reasonably believes that:</text> <paragraph num="(a)"> <text>The Act or any other law may prohibit the disclosure of the public record to the applicant; or</text> </paragraph> <paragraph num="(b)"> <text>A written request will materially assist the Center in responding.</text> </paragraph> </paragraph> </paragraph> <paragraph num="B."> <text>Copies. If the applicant requests a copy of any public record of the Center, the custodian may require a written request.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Contents of Written Request."> <text>A written request shall:</text> <paragraph num="A."> <text>Contain the applicant’s name and address;</text> </paragraph> <paragraph num="B."> <text>Be signed by the applicant, or transmitted via email as an electronic signature;</text> </paragraph> <paragraph num="C."> <text>Reasonably identify, by brief description, the public record sought; and</text> </paragraph> <paragraph num="D."> <text>Specify an alternate format, if applicable, due to a disability.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Addressee."> <text>A request to inspect or copy a public record shall be addressed or directed to the custodian of the record. If the custodian is unknown, the request may be addressed or directed to the Executive Director.</text> </regulation> <regulation prefix="Regulation" num=".09" heading="Response to Request."> <paragraph num="A."> <text>If the custodian decides to grant a request for inspection, the custodian shall produce the public record for inspection, without unreasonable delay, as follows:</text> <paragraph num="(1)"> <text>Immediately for records designated by the Center for inspection, as set forth in §B of this regulation; or</text> </paragraph> <paragraph num="(2)"> <text>If additional time is needed to retrieve the public record and conduct any necessary review, within a reasonable time period, not to exceed 30 days after the date of the request.</text> </paragraph> </paragraph> <paragraph num="B."> <text>The custodian shall designate the following public records for immediate inspection:</text> <paragraph num="(1)"> <text>Minutes of the Subcabinet;</text> </paragraph> <paragraph num="(2)"> <text>Minutes of the Advisory Board;</text> </paragraph> <paragraph num="(3)"> <text>Bylaws of the Subcabinet; and</text> </paragraph> <paragraph num="(4)"> <text>Bylaws of the Advisory Board.</text> </paragraph> </paragraph> <paragraph num="C."> <text>If the custodian decides to deny a request for inspection, the custodian shall:</text> <paragraph num="(1)"> <text>Do so within 30 days of receipt of the request; and</text> </paragraph> <paragraph num="(2)"> <text>Immediately notify the applicant of the denial.</text> </paragraph> </paragraph> <paragraph num="D."> <text>If a request is denied, the custodian shall provide the applicant, at the time of the denial or within 10 working days, a written statement setting forth:</text> <paragraph num="(1)"> <text>The reason for the denial;</text> </paragraph> <paragraph num="(2)"> <text>The legal authority for the denial; and</text> </paragraph> <paragraph num="(3)"> <text>Notice of the remedies available for review of the denial.</text> </paragraph> </paragraph> <paragraph num="E."> <text>If a requested public record is not in the custody or control of the custodian to whom application is made, the custodian shall, within 10 working days after receipt of the request, notify the applicant:</text> <paragraph num="(1)"> <text>That the custodian does not have custody or control of the requested public record; and</text> </paragraph> <paragraph num="(2)"> <text>If the custodian knows, of:</text> <paragraph num="(a)"> <text>The name of the custodian of the public record; and</text> </paragraph> <paragraph num="(b)"> <text>The location or possible location of the public record.</text> </paragraph> </paragraph> </paragraph> <paragraph num="F."> <text>With the consent of the applicant, any time limit imposed by §§A—C of this regulation may be extended for an additional period of up to 30 days.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Notice to Person Possibly Affected by Disclosure."> <paragraph num="A."> <text>Unless prohibited by law, the custodian may provide notice of a request for inspection or copying of any public record of the Center to any person who, in the judgment of the custodian, could be adversely affected by disclosure of the public record.</text> </paragraph> <paragraph num="B."> <text>The custodian may consider the views of the possibly affected person before deciding whether to disclose the public record to an applicant.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".11" heading="Public Record Temporarily Unavailable."> <text>If a requested public record of the Center is in the custody and control of the person to whom the application is made but is not immediately available for inspection or copying, the custodian shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not immediately available; and</text> </paragraph> <paragraph num="B."> <text>Schedule a date within a reasonable time for inspection or copying.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".12" heading="Public Record Destroyed or Lost."> <text>If the custodian knows that a requested public record of the Center has been destroyed or lost, the custodian shall promptly:</text> <paragraph num="A."> <text>Notify the applicant that the public record is not available; and</text> </paragraph> <paragraph num="B."> <text>Explain the reasons why the public record cannot be produced.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".13" heading="Review of Denial."> <paragraph num="A."> <text>If the custodian denies a request to inspect or copy a public record of the Center, the applicant may file an action for judicial enforcement under General Provisions Article, §4-362, Annotated Code of Maryland, without pursuing the remedies set forth in §§B and C of this regulation.</text> </paragraph> <paragraph num="B."> <text>If the custodian charges a fee of more than $350 under Regulation .15 of this chapter, the applicant may, within 90 days after the date the fee is imposed, file a written complaint with the State Public Information Act Compliance Board under General Provisions Article, §4-1A-05(a), Annotated Code of Maryland.</text> </paragraph> <paragraph num="C."> <text>The applicant and the custodian each may contact the Public Access Ombudsman to resolve, under General Provisions Article, Title 4, Subtitle 1B, Annotated Code of Maryland, a dispute relating to requests for public records.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".14" heading="Disclosure Against Public Interest."> <paragraph num="A."> <text>Denial Pending Court Order.</text> <paragraph num="(1)"> <text>If, in the opinion of the Executive Director, disclosure of a public record of the Center otherwise subject to disclosure under the Act would do substantial injury to the public interest, the Executive Director may temporarily deny the request to obtain a court order allowing nondisclosure.</text> </paragraph> <paragraph num="(2)"> <text>A temporary denial shall be in writing.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Circuit Court Review.</text> <paragraph num="(1)"> <text>Within 10 working days after the denial, the Executive Director shall apply to the appropriate circuit court for an order permitting continued denial or restriction of access.</text> </paragraph> <paragraph num="(2)"> <text>Notice of the Executive Director’s complaint, on behalf of the Center, shall be served on the applicant in the manner provided for service of process under the Maryland Rules.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".15" heading="Fees."> <paragraph num="A."> <text>Except as provided in §§B and C of this regulation, the fee schedule for copying and certifying copies of public records of the Center is as follows:</text> <paragraph num="(1)"> <text>For each copy made by a photocopying machine within the Center, 25 cents per page;</text> </paragraph> <paragraph num="(2)"> <text>For each copy made other than by a photocopying machine within the Center, the actual cost of reproduction; and</text> </paragraph> <paragraph num="(3)"> <text>For certification as a true copy of a public record, an additional fee of $1 per page or, if appropriate, per item.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Minimum Fee. A charge may not be made if the total fee is $1 or less.</text> </paragraph> <paragraph num="C."> <text>If the fee for copies or certified copies of any public record of the Center is specifically set by a law other than the Act or this regulation, the custodian shall charge the prescribed fee.</text> </paragraph> <paragraph num="D."> <text>If the custodian cannot copy a public record within the Center, the custodian shall make arrangements for the prompt reproduction of the record at public or private facilities outside the Center. The custodian shall:</text> <paragraph num="(1)"> <text>Collect from the applicant a fee to cover the actual cost of reproduction; or</text> </paragraph> <paragraph num="(2)"> <text>Direct the applicant to pay the cost of reproduction directly to the facility making the copy.</text> </paragraph> </paragraph> <paragraph num="E."> <text>Before copying a public record of the Center, the custodian shall estimate the cost of reproduction and either:</text> <paragraph num="(1)"> <text>Obtain the agreement of the applicant to pay the cost; or</text> </paragraph> <paragraph num="(2)"> <text>Require prepayment of the cost.</text> </paragraph> </paragraph> <paragraph num="F."> <text>Except as provided in §G of this regulation the custodian may charge a reasonable fee for time that an official or employee of the Center spends to:</text> <paragraph num="(1)"> <text>Search for requested public records; or</text> </paragraph> <paragraph num="(2)"> <text>Prepare public records for inspection and copying.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The custodian may not charge a search or preparation fee for the first 2 hours that an official or employee of the Center spends to respond to a request for public records.</text> </paragraph> <paragraph num="H."> <text>The Center may charge a reasonable hourly fee based on the actual cost to the Center for staff services for additional time required to search for or prepare public records for inspection and copying.</text> </paragraph> <paragraph num="I."> <text>Waiver or Reduction of Fee.</text> <paragraph num="(1)"> <text>The custodian may waive or reduce any fee under this regulation if:</text> <paragraph num="(a)"> <text>The applicant requests a waiver; and</text> </paragraph> <paragraph num="(b)"> <text>The custodian determines that the waiver or reduction is in the public interest.</text> </paragraph> </paragraph> <paragraph num="(2)"> <text>In making a decision under this section, the custodian shall consider, among other relevant factors, the ability of the applicant to pay the fee.</text> </paragraph> </paragraph> <paragraph num="J."> <text>If the applicant requests that copies of a public record be mailed or delivered to the applicant or to a third party, the custodian may charge the applicant for the actual cost of postage or delivery, and the cost of any electronic media used to provide the copies.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".16" heading="Time and Place of Inspection."> <paragraph num="A."> <text>The Center shall notify the applicant of the scope of responsive documents and fee associated with fulfilling the request no later than 30 days after receiving applicant’s request.</text> </paragraph> <paragraph num="B."> <text>An applicant may inspect any public record of the Center that the applicant is entitled to inspect during the normal working hours of the Center.</text> </paragraph> <paragraph num="C."> <text>The inspection shall occur where the public record is located, unless the custodian, after taking into account the applicant’s expressed wish, determines that another place is more suitable and convenient.</text> </paragraph> <paragraph num="D."> <text>The applicant shall have 30 days from receipt of the Center’s notification set forth in §A of this regulation to schedule the inspection of the responsive documents, make arrangements for copying of the documents, and/or remit payment to the Center.</text> </paragraph> <paragraph num="E."> <text>After the expiration of the 30-day period set forth in §D of this regulation, if the applicant has failed to schedule the inspection, make arrangements for copying of the documents, remit payment, or otherwise communicate with the Center, the request shall be closed.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §7-1503(g); General Provisions Article, §4-101, et seq.; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 9, 2020 (47:5 Md. R. 312)</annotation> </annotations> </chapter> <chapter num="03" heading="Correction or Amendment of Public Records"> <regulation prefix="Regulation" num=".01" heading="Scope."> <text>This chapter sets out procedures under which a person in interest may request the correction or amendment of public records of the Maryland Center for School Safety.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Act” means the Public Information Act, General Provisions Article, §§4-101—4-601, Annotated Code of Maryland.</text> </paragraph> <paragraph num="(2)"> <text>“Center” means the Maryland Center for School Safety.</text> </paragraph> <paragraph num="(3)"> <text>“Custodian” has the meaning stated in General Provisions Article, §4-101(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“Executive Director” means the Executive Director of the Maryland Center for School Safety, as set forth in Education Article, §7-1502(d), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“Person in interest” has the meaning stated in General Provisions Article, §4-101(g), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“Public record” has the meaning stated in General Provisions Article, §4-101(j), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="Who May Request."> <text>A person in interest may request that the Center correct or amend any public record that:</text> <paragraph num="A."> <text>The Center keeps; and</text> </paragraph> <paragraph num="B."> <text>The person in interest is authorized to inspect.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Contents of Request."> <paragraph num="A."> <text>A person in interest shall make a request to correct or amend a public record in writing.</text> </paragraph> <paragraph num="B."> <text>The request shall:</text> <paragraph num="(1)"> <text>Identify the public record to be corrected or amended;</text> </paragraph> <paragraph num="(2)"> <text>State the precise correction or amendment requested;</text> </paragraph> <paragraph num="(3)"> <text>State the reason for the correction or amendment; and</text> </paragraph> <paragraph num="(4)"> <text>Include a statement that, to the best of the requester’s belief, the public record is inaccurate or incomplete.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".05" heading="Addressee."> <text>A request to correct or amend a public record shall be addressed to the custodian of the record. If the custodian is unknown, the request shall be addressed to the Executive Director.</text> </regulation> <regulation prefix="Regulation" num=".06" heading="Return of Nonconforming Request."> <paragraph num="A."> <text>The Center shall accept a request to correct or amend a public record when it is received if it reasonably complies with Regulations .04 and .05 of this chapter.</text> </paragraph> <paragraph num="B."> <text>If the request does not reasonably comply with Regulations .04 and .05 of this chapter, the Center shall return the request to the requestor with:</text> <paragraph num="(1)"> <text>An explanation of the reason for the return; and</text> </paragraph> <paragraph num="(2)"> <text>A statement that, on receipt of a request that reasonably complies with Regulations .04 and .05 of this chapter, the request will be accepted.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".07" heading="Response to Request."> <text>Within 30 days after the Center receives a request for the correction or amendment of a public record that reasonably complies with Regulations .04 and .05 of this chapter, the custodian shall:</text> <paragraph num="A."> <text>Make the requested correction or amendment, and inform the requester in writing of the action; or</text> </paragraph> <paragraph num="B."> <text>Inform the requester in writing that the Center will not:</text> <paragraph num="(1)"> <text>Make the requested correction or amendment, and the reason for the refusal; or</text> </paragraph> <paragraph num="(2)"> <text>Act on the request because:</text> <paragraph num="(a)"> <text>The requester is not a person in interest;</text> </paragraph> <paragraph num="(b)"> <text>The requester is not authorized to inspect the record; or</text> </paragraph> <paragraph num="(c)"> <text>Of any other reason authorized by law.</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".08" heading="Response to Refusal of Request — Statement of Disagreement."> <text>If the Center refuses to make a requested correction or amendment, a person in interest may file with the Center a concise statement of the reasons for:</text> <paragraph num="A."> <text>The requested correction or amendment; and</text> </paragraph> <paragraph num="B."> <text>The person’s disagreement with the refusal of the Center to make the correction or amendment.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".09" heading="Requirements for Statement of Disagreement."> <text>The statement submitted under Regulation .08 of this chapter shall:</text> <paragraph num="A."> <text>Be on pages not larger than 8-1/2 x 11 inches;</text> </paragraph> <paragraph num="B."> <text>Use only one side of each page; and</text> </paragraph> <paragraph num="C."> <text>Consist of not more than five pages.</text> </paragraph> </regulation> <regulation prefix="Regulation" num=".10" heading="Disclosure of Statement of Disagreement."> <text>If a person in interest files a statement of disagreement concerning a public record under Regulations .08 and .09 of this chapter, the Center shall provide a copy of the statement whenever the Center discloses the public record to a third party.</text> </regulation> <regulation prefix="Regulation" num=".11" heading="Administrative Review."> <paragraph num="A."> <text>A person may request administrative review under this regulation if the Center:</text> <paragraph num="(1)"> <text>Has refused the person’s request to correct or amend a public record under Regulation .07 of this chapter;</text> </paragraph> <paragraph num="(2)"> <text>Has rejected the person’s statement of disagreement under Regulation .08 of this chapter; or</text> </paragraph> <paragraph num="(3)"> <text>Has not provided a statement of disagreement to a third party under Regulation .10 of this chapter.</text> </paragraph> </paragraph> <paragraph num="B."> <text>A request for review shall be filed with the Executive Director within 30 days after the requester is advised of the Center’s action.</text> </paragraph> <paragraph num="C."> <text>The review proceedings shall be conducted in accordance with General Provisions Article, Title 4, Subtitle 1A, 1B, or 3, Annotated Code of Maryland.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §7-1503(g); General Provisions Article, §4-502; Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 9, 2020 (47:5 Md. R. 312)</annotation> </annotations> </chapter> <chapter num="04" heading="Certification and Training for School Security Employees and School Resource Officers"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Center for School Safety.</text> </paragraph> <paragraph num="(2)"> <text>“School resource officer” has the meaning stated in Education Article, §7-1501(j), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“School safety coordinator” means an individual or individuals in a school system, regardless of job title, who serve as:</text> <paragraph num="(a)"> <text>The head of safety or security for the school system; or</text> </paragraph> <paragraph num="(b)"> <text>The liaison between the Center, local law enforcement, and the local school system as required under Education Article, §7-1508(a), Annotated Code of Maryland.</text> </paragraph> </paragraph> <paragraph num="(4)"> <text>School Security Employee.</text> <paragraph num="(a)"> <text>“School security employee” has the meaning stated in Education Article, §7-1501(k), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(b)"> <text>School security employee includes individuals:</text> <paragraph num="(i)"> <text>Employed by a local school system, either as salaried or contractual employees, to provide safety or security-related services at a public school; or</text> </paragraph> <paragraph num="(ii)"> <text>Assigned to a public school, whose job description includes safety or security related services as part of the individual’s primary duties.</text> </paragraph> </paragraph> <paragraph num="(c)"> <text>School security employee does not include:</text> <paragraph num="(i)"> <text>A school resource officer;</text> </paragraph> <paragraph num="(ii)"> <text>Local law enforcement providing supplemental coverage to local school systems;</text> </paragraph> <paragraph num="(iii)"> <text>An employee of the school system not assigned to work in an individual public school as part of their duties; or</text> </paragraph> <paragraph num="(iv)"> <text>A school administrator.</text> </paragraph> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="School Safety Coordinator Certification."> <paragraph num="A."> <text>The Center shall certify a school safety coordinator upon completion of the following training:</text> <paragraph num="(1)"> <text>The Center’s curriculum for school safety coordinators and any annual updates;</text> </paragraph> <paragraph num="(2)"> <text>The National Incident Management System, Incident Command System, independent study courses 100, 200, 700, and 800; and</text> </paragraph> <paragraph num="(3)"> <text>Federal Emergency Management Agency (FEMA) independent study course, Multi-Hazard Emergency Planning for Schools.</text> </paragraph> </paragraph> <paragraph num="B."> <text>Supplemental Instruction.</text> <paragraph num="(1)"> <text>A school safety coordinator shall complete an additional 4 hours of supplemental instruction annually in content areas approved by the Center to maintain certification.</text> </paragraph> <paragraph num="(2)"> <text>A request for enrollment in a particular course of supplemental instruction shall be made by the school safety coordinator to the Center in advance of enrollment in a course to ensure that the course is approved.</text> </paragraph> <paragraph num="(3)"> <text>Retroactive requests for approval of a particular course to maintain certification by the Center shall be denied.</text> </paragraph> <paragraph num="(4)"> <text>A school safety coordinator shall submit certificates of completion to the Center within 30 days of completion of the coursework.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".03" heading="School Resource Officers and School Security Employees Certification Training."> <paragraph num="A."> <text>A school resource officer or school security employee shall complete the Center’s model curriculum or an approved local training, as required under Education Article, §7-1508, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>A school resource officer or school security employee assigned or hired after the start of the school year will register and complete the model curriculum prior to the next school year and may begin work in a school:</text> <paragraph num="(1)"> <text>Following notification to the Center; and</text> </paragraph> <paragraph num="(2)"> <text>Following completion of the preliminary curriculum prescribed by the Center.</text> </paragraph> </paragraph> <paragraph num="C."> <text>School resource officers and school security employees shall complete additional hours of training annually in content areas approved by the Center, including:</text> <paragraph num="(1)"> <text>Updated legislative and regulatory changes affecting the work of school resource officers and school security employees;</text> </paragraph> <paragraph num="(2)"> <text>Expanded training in existing content areas;</text> </paragraph> <paragraph num="(3)"> <text>Any training identified or approved by the Center; or</text> </paragraph> <paragraph num="(4)"> <text>Any other mandates under State, federal, or local law.</text> </paragraph> </paragraph> <paragraph num="D."> <text>Each year, the local school superintendent shall certify to the Center’s Executive Director that school security employees assigned to the jurisdiction’s schools have completed the training required under this chapter.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§7-151(k), 7-1503(g), and 7-1508, Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: August 24, 2020 (47:17 Md. R. 797)</annotation> <annotation type="History" subtype="Administrative History">Regulation .01B amended effective December 11, 2023 (50: 24 Md. R. 1042)</annotation> <annotation type="History" subtype="Administrative History">Regulation .02 amended effective December 11, 2023 (50: 24 Md. R. 1042)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03 amended effective December 11, 2023 (50: 24 Md. R. 1042)</annotation> </annotations> </chapter> <chapter num="05" heading="Critical, Life-Threatening Incidents"> <regulation prefix="Regulation" num=".01" heading="Purpose."> <text>Pursuant to Education Article, §7-1510(g), Annotated Code of Maryland, each local school system shall promptly inform the Maryland Center for School Safety of any critical life-threatening incidents that occur on school grounds.</text> </regulation> <regulation prefix="Regulation" num=".02" heading="Scope."> <text>The provisions of this chapter apply during school hours, inclusive of after-school activities and school-sanctioned events on school grounds and while transporting students.</text> </regulation> <regulation prefix="Regulation" num=".03" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>Critical, life-threatening incident means an event which:</text> <paragraph num="(a)"> <text>Results in an individual being charged with a threat of mass violence directed at a school under Criminal Law Article, §3-1001, Annotated Code of Maryland;</text> </paragraph> <paragraph num="(b)"> <text>Meets the criteria for a threat of mass violence but does not result in criminal charges due to the age limitation under Courts and Judicial Proceedings Article, §3-8A-03(f), Annotated Code of Maryland; or</text> </paragraph> <paragraph num="(c)"> <text>Occurs on school grounds and:</text> <paragraph num="(i)"> <text>Results in death or serious bodily injury; or</text> </paragraph> <paragraph num="(ii)"> <text>Requires activation of a school’s emergency plans and substantially disrupts the normal or orderly operation of a school.</text> </paragraph> </paragraph> </paragraph> <paragraph num="(2)"> <text>School grounds means:</text> <paragraph num="(a)"> <text>The premises where the school is located and operated, including all buildings, physical structures, and real property owned or leased by the local school system for the operation of a school;</text> </paragraph> <paragraph num="(b)"> <text>School transportation vehicles either owned by or contracted for by the local school system for the purposes of student transportation; and</text> </paragraph> <paragraph num="(c)"> <text>Locations used for school sponsored activities or approved by the school or school system for attendance of students as part of a field trip.</text> </paragraph> </paragraph> <paragraph num="(3)"> <text>“Serious bodily injury” means an injury inflicted on another individual that results in:</text> <paragraph num="(a)"> <text>A substantial risk of death;</text> </paragraph> <paragraph num="(b)"> <text>Extreme physical pain;</text> </paragraph> <paragraph num="(c)"> <text>Protracted and obvious disfigurement; or</text> </paragraph> <paragraph num="(d)"> <text>Protracted loss or impairment of the function of a bodily member, organ, or mental faculty in accordance with 18 U.S.C. §1365(h)(3).</text> </paragraph> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".04" heading="Notification."> <paragraph num="A."> <text>A local school system experiencing a critical, life-threatening incident shall notify the Center of the incident as soon as practicable, but no later than 24 hours after the local school system knew or should have known that this was a critical, life-threatening incident or received notice that the individual was charged under Criminal Law Article, §3-1001, Annotated Code of Maryland.</text> </paragraph> <paragraph num="B."> <text>The local school system or the Center will determine when an incident substantially disrupts the orderly operation of a school.</text> </paragraph> <paragraph num="C."> <text>The local school system shall hold the after-action meeting and review required pursuant to Education Article, §7-1510(g)(2)(ii), Annotated Code of Maryland, within 45 days of the occurrence of the incident.</text> </paragraph> <paragraph num="D."> <text>The after-action meeting participants shall include:</text> <paragraph num="(1)"> <text>Center staff;</text> </paragraph> <paragraph num="(2)"> <text>School safety coordinator;</text> </paragraph> <paragraph num="(3)"> <text>Representatives from the school or school system involved in the response to or recovery from the incident; and</text> </paragraph> <paragraph num="(4)"> <text>Representatives from responding agencies.</text> </paragraph> </paragraph> <paragraph num="E."> <text>The local school system shall file the report required by Education Article, §7-1510(g)(2)(iii), Annotated Code of Maryland, as soon as practicable following completion of the after-action meeting set forth in §C of this regulation, but no later than 100 days after the occurrence of the incident.</text> </paragraph> <paragraph num="F."> <text>The after-action report shall be submitted on a form developed by the Center and address:</text> <paragraph num="(1)"> <text>The scope of the incident;</text> </paragraph> <paragraph num="(2)"> <text>The response to the incident;</text> </paragraph> <paragraph num="(3)"> <text>Lessons learned by the local school system from the incident response and recovery; and</text> </paragraph> <paragraph num="(4)"> <text>Any other information identified by the Center as necessary in order to adequately assess the incident.</text> </paragraph> </paragraph> <paragraph num="G."> <text>The Center shall file the report required under Education Article, §7-1510(g)(3), Annotated Code of Maryland:</text> <paragraph num="(1)"> <text>Within 45 days of receiving the report from the local school system; or</text> </paragraph> <paragraph num="(2)"> <text>Within 45 days of the expiration of the filing deadline set forth at §E of this regulation.</text> </paragraph> </paragraph> <paragraph num="H."> <text>The Center shall develop guidelines for local school systems to complete reports required by this regulation.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §§7-1503(g) and 7-1510(g), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: March 9, 2020 (47:5 Md. R. 312)</annotation> <annotation type="History" subtype="Administrative History">Regulation .03B amended effective December 11, 2023 (50:24 Md. R. 1043)</annotation> <annotation type="History" subtype="Administrative History">Regulation .04 amended effective December 11, 2023 (50:24 Md. R. 1043)</annotation> </annotations> </chapter> <chapter num="06" heading="Data Collection and Reporting"> <regulation prefix="Regulation" num=".01" heading="Definitions."> <paragraph num="A."> <text>In this chapter, the following terms have the meanings indicated.</text> </paragraph> <paragraph num="B."> <text>Terms Defined.</text> <paragraph num="(1)"> <text>“Center” means the Maryland Center for School Safety.</text> </paragraph> <paragraph num="(2)"> <text>“Emergency summary report” is the report required pursuant to Education Article, §7-1510(f), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(3)"> <text>“Incidents of force report” is the report required pursuant to Education Article, §7-1508(h), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(4)"> <text>“School emergency plan” has the meaning stated in Education Article, §7-1501(i), Annotated Code of Maryland, and is required pursuant to Education Article, §7-1510(d) and (e), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(5)"> <text>“School safety evaluation” means the facility assessments required pursuant to Education Article, §7-1510(a) and (b), Annotated Code of Maryland.</text> </paragraph> <paragraph num="(6)"> <text>“School resource officer and adequate coverage report” is the report required pursuant to Education Article, §7-1508(c) and (e), Annotated Code of Maryland.</text> </paragraph> </paragraph> </regulation> <regulation prefix="Regulation" num=".02" heading="Report and Plan Collection."> <paragraph num="A."> <text>Emergency Summary Report. By August 1 each year, local school systems shall submit to the Center the required emergency summary report.</text> </paragraph> <paragraph num="B."> <text>Incidents of Force Report. By August 1 each year, local school systems and law enforcement agencies providing school resource officers shall submit to the Center to required incidents of force report.</text> </paragraph> <paragraph num="C."> <text>School Emergency Plans. Local school systems shall:</text> <paragraph num="(1)"> <text>Annually review and update each public school emergency plan; and</text> </paragraph> <paragraph num="(2)"> <text>By September 30 every 2 years, submit copies of each public school emergency plan to the Center.</text> </paragraph> </paragraph> <paragraph num="D."> <text>School Safety Evaluations. Local school systems shall:</text> <paragraph num="(1)"> <text>Complete a facility safety evaluation for each public school every 2 years; and</text> </paragraph> <paragraph num="(2)"> <text>By September 30 every 2 years, submit an aggregated summary of evaluation findings to the Center following the completion of the reviews.</text> </paragraph> </paragraph> <paragraph num="E."> <text>School Resource Officer and Adequate Coverage Report. By September 1 each year, local school systems shall submit to the Center the required school resource officer and adequate coverage report.</text> </paragraph> </regulation> <annotations> <annotation type="Authority">Education Article, §7-1503(g)(12), Annotated Code of Maryland</annotation> <annotation type="History" subtype="Administrative History">Effective date: September 2, 2024 (51:17 Md. R. 777)</annotation> </annotations> </chapter> </subtitle>