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<chapter num="03" heading="Contested Cases Regulations" title_num="17" subtitle_num="02">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <text>This chapter applies to hearings which the Department is required to conduct by statute or regulation to adjudicate the rights, duties, statutory entitlements, or privileges of specific persons, except for hearings conducted pursuant to COMAR 17.01.02.</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>“Department” means the Department of Budget and Management.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Hearing officer” means an officer designated by the Secretary to conduct a hearing pursuant to this chapter.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“Notice” means a written document sent by certified mail, return receipt requested.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>“Party” means the Department or any person whose rights are being adjudicated by the Secretary at a hearing.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>“Secretary” means the Secretary of Budget and Management or his designee.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Notice.">
    <paragraph num="A.">
      <text>Whenever the Department is required by statute or regulation to provide a hearing to a person, the Department shall send that person reasonable notice of the hearing.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Contents of Notice. The notice shall contain a:</text>
      <paragraph num="(1)">
        <text>Statement of the date, time, place, and nature of the hearing;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Statement of the person's right to be represented by counsel;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Statement of the legal authority and jurisdiction under which the hearing is to be held;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Reference to the particular sections of statute and regulation, including rules of procedure, involved; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Short and simple statement of the matters which will be at issue at the hearing.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Hearing Officer.">
    <text>Once a hearing has been scheduled, the Secretary shall designate a hearing officer who shall conduct the hearing and render a decision. The Secretary may designate himself as the hearing officer. If a person other than the Secretary is the hearing officer, the hearing officer may only issue a proposed decision according to Regulation .08B of this chapter.</text>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Prehearing Conference.">
    <paragraph num="A.">
      <text>Before the date of the hearing, the hearing officer may hold a prehearing conference, for which he shall give notice to all parties of the date, time, and place.</text>
    </paragraph>
    <paragraph num="B.">
      <text>In the discretion of the hearing officer, persons other than parties may attend a prehearing conference.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Hearing.">
    <paragraph num="A.">
      <text>Presentation of Hearing. Hearings shall be conducted generally in the following order, unless modified by the hearing officer during the prehearing conference or otherwise:</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 evidence in the following order:</text>
        <paragraph num="(a)">
          <text>The Department presents the basis for the Department's action or proposed action and other evidence,</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Parties aggrieved by the Department's action or proposed action present their objections to the Department's action or proposed action and other evidence,</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Other persons may present evidence at the discretion of the hearing officer,</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Rebuttals in the same order.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The provisions of State Government Article, §§10-208—10-214, Annotated Code of Maryland, concerning the conduct of administrative hearings apply to these proceedings.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Powers of Hearing Officer. The hearing officer shall have all powers necessary to these ends, including, but not limited to, the following powers to:</text>
      <paragraph num="(1)">
        <text>Administer oaths and affirmations;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Rule upon offers of proof and receive relevant and material evidence;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Consider and rule upon all procedural and other motions appropriate to the proceedings;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Examine witnesses;</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Maintain order, limit unduly repetitious testimony, and limit the time for presentations;</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Grant a continuance for good cause shown;</text>
      </paragraph>
      <paragraph num="(7)">
        <text>Require parties to submit proposed findings of fact and conclusions of law;</text>
      </paragraph>
      <paragraph num="(8)">
        <text>Call witnesses.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Rights of Party. Every party shall have the right on every genuine issue of fact to:</text>
      <paragraph num="(1)">
        <text>Call witnesses and present evidence;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Cross-examine every witness called by a party, or the hearing officer or other person;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Submit rebuttal evidence;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Present summation and argument; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>File objections, exceptions, and motions, except that if a party is represented by counsel, all the submissions of evidence, examination and cross-examination of witnesses, and filing of objections, exceptions, and motions shall be done and presented solely by this counsel.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Record and Transcript.">
    <paragraph num="A.">
      <text>The hearing officer shall prepare an official record of each hearing, which shall include all pleadings, exhibits, and other memoranda or material filed in the proceeding, and any testimony transcribed according to §B of this regulation.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A stenographic record of the proceedings or other form of verbatim record acceptable to the Department shall be made at the expense of the Department. This record need not be transcribed unless requested by a party, the hearing officer, or the Secretary. The cost of any typewritten transcripts of any proceedings, or part of them, shall be paid by the party requesting the transcript.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Decisions.">
    <paragraph num="A.">
      <text>If the Secretary personally hears the evidence at the hearing, the Secretary shall issue a final decision within 90 days of the hearing.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Proposed Decision.</text>
      <paragraph num="(1)">
        <text>If the Secretary does not personally hear the evidence at the hearing, the hearing officer shall issue a proposed decision within 90 days of the hearing according to the provisions of State Government Article, §10-212, Annotated Code of Maryland, and a final decision may not be issued until the requirements of this section have been met.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The proposed decision, including the findings of fact and conclusions of law on which it is based, shall be mailed to all parties immediately after its issuance. The parties shall also be notified that oral argument before the Secretary may be requested by any party adversely affected by the proposed decision.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Within 15 days after receipt of the proposed decision, a party adversely affected by the proposed decision may file written exceptions to the proposed decision and request to present oral argument to the Secretary. Any party filing written exceptions or requesting oral argument shall include in the exceptions or request precise references to those sections of the record which the party wishes the Secretary to review. References to the record other than any transcript of testimony shall be indicated as R..., and references to the transcript of testimony as contained in the record shall be indicated as T.... If a party fails to provide these specific references, the Secretary may dismiss any request for oral argument and may base his review of the proposed decision on whatever portion of the record he deems appropriate.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>If an oral argument is not requested, the Secretary shall issue his final decision within 60 days of the hearing.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>If oral argument is requested, the Secretary shall set a date for oral argument within 30 days of the receipt of a request for oral argument and shall notify the parties of the date, time, and place for the argument.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>The Secretary shall issue a final decision within 30 days of oral argument. Copies of the decision shall be mailed to all parties, return receipt requested.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>All final decisions issued by the Secretary shall include findings of fact and conclusions of law in accordance with State Government Article, §10-214, Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Rehearings.">
    <paragraph num="A.">
      <text>Any party aggrieved by the decision and order rendered in a particular case may apply for rehearing within 10 days after receipt of the decision. Any action on this application lies in the discretion of the Secretary.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Unless otherwise ordered, neither the rehearing nor the application for it shall stay the enforcement of any order, or excuse the persons affected by it for failure to comply with its terms.</text>
    </paragraph>
    <paragraph num="C.">
      <text>On rehearing, the Secretary may consider facts not presented in the original hearing, including facts arising after the date of the original hearing, and may by new order abrogate, change, or modify the original order.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".10" heading="Appeal.">
    <text>Any party adversely affected by a final decision of the Secretary may obtain judicial review of the Secretary's decision as provided by law.</text>
  </regulation>
  <annotations>
    <annotation type="Authority">State Government Article, §10-204, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: March 26, 1984 (11:6 Md. R. 556)</annotation>
  </annotations>
</chapter>