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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B3. RULES OF PRACTICE AND PROCEDURES FOR HEARINGS |
Section 26-B304. NOTICE OF INTENT TO ISSUE ORDERS TO DENY, SUSPEND, REVOKE, FINE, REQUIRE RESTITUTION, AND SUMMARY AND PERMANENT CEASE AND DESIST ORDERS
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304.1A formal disciplinary action shall commence on the date the Department issues a notice of intent to issue an order to deny, suspend, revoke, fine, or require restitution, or a summary cease and desist order. The Department may also initiate an action for the entry of a permanent order to cease and desist by issuing a notice of intent.
304.2The Commissioner shall serve the notice of intent or summary cease and desist order upon each respondent named in the notice or order. Service may be made by personal service or by registered or certified mail.
304.3If the Commissioner is unable to serve any respondent with a summary cease and desist order or notice of intent, proper service may be made by serving the Commissioner as attorney for service of process in accordance with D.C. Official Code § 31-5607.06.
304.4In addition to any contents required by statute, a summary cease and desist order or notice of intent shall advise the respondent of the:
(a)Respondent's right to a hearing;
(b)Time period within which the respondent must request a hearing;
(c)Respondent's obligation to file an answer; and
(d)Effect of a failure to file an answer and to request a hearing.
304.5The applicant for licensure shall have the burden of proof in a notice of intent hearing when the Commissioner has proposed to deny an application for licensure.
304.6The Department shall have the burden of proof in a hearing involving a notice of intent to suspend, revoke, require restitution, fine, or summary cease and desist order when the Commissioner has proposed to take disciplinary action against a licensee.
304.7A respondent shall file with the Commissioner a written answer to a notice of intent or summary cease and desist order within ten (10) days of service of the order and within five (5) days of service of any amended order. The parties and the staff of the Department may agree to extend the time for filing the answer up to 30 days. Any additional extension of time may only be granted by order of the Commissioner.
304.8The answer shall admit or deny each factual allegation in the notice of intent or summary cease and desist order and shall set forth affirmative defenses, if any. A respondent without knowledge or information sufficient to form a belief as to the truth of an allegation shall so state.
304.9The answer shall indicate whether the respondent requests a hearing concerning the notice of intent or summary cease and desist order.
304.10If a respondent fails to file a timely answer, the allegations of the notice of intent shall be deemed admitted, and the Commissioner may issue a proposed or final decision adverse to that respondent.