Maryland Administrative Code

.23 Ex Parte Communications. A. General Prohibition. Except as provided in §B of this regulation, while a contested case is pending, the Commissioner may not communicate ex parte regarding the merits of any issue in the case with: (1) A respondent; (2) A representative or attorne…

.24 Proposed Decisions and Final Decisions. A. Cases Heard by the Commissioner. The Commissioner shall prepare written findings of fact and conclusions of law, and shall promptly issue a final decision after the conclusion of any hearing held before the Commissioner. The final de…

.25 Record of Proceedings. A. Recording of Oral Proceedings. The Division shall cause all oral proceedings, including testimony, to be recorded by a stenographer or by tape recorder or other device. The recording of the proceedings, which need not be transcribed, shall be maintai…

.26 Stay of Enforcement. A. Motion for Stay. After the Commissioner has issued a final decision that results in the entry of a final order against a party, the party may move for a stay of the Commissioner's order if the party has filed an appeal of the final decision. B. Form of…

.27 Disposition by Agreement. At any time after initiation of a contested case, with the approval of the Commissioner, the parties may resolve a contested case without a final decision by stipulation, settlement, or consent order.

.01 Scope. A. This chapter applies to investigations instituted by the Securities Commissioner under the: (1) Maryland Securities Act, Corporations and Associations Article, Title 11, Annotated Code of Maryland (the Maryland Securities Act); (2) Maryland Business Opportunities Sa…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Document” means the original of a paper or other tangible item or material on which information is written or recorded and includes, by example, correspondence, memoranda,…

.03 Subpoenas. A. Type of Subpoena. As part of an investigation, the Commissioner may issue a subpoena to any person to: (1) Testify under oath; (2) Answer written interrogatories under oath; (3) Produce documents and tangible things; and (4) Permit inspection and copying of docu…

.04 Testimony Under Oath. A. Presiding Officer. Testimony under oath shall be taken before the Commissioner or an officer designated by the Commissioner. B. Attendance at Testimony. A witness who testifies under oath in compliance with a subpoena may be accompanied and represente…

.05 Production of Things and Documents. A. Assertion of Privilege. If a person responding to a subpoena for production of things or documents withholds a record or document on the basis of a privilege, the person shall state, with respect to each document: (1) The name and title …

.06 Use and Confidential Treatment of Subpoenaed Materials. A. Use of Subpoenaed Materials. The Division may use information, documents, and things obtained by subpoena in furtherance of an investigation conducted by the Division and of joint investigations conducted by the Divis…

.01 Definitions. A. For purposes of this chapter and of the Maryland Franchise Registration and Disclosure Law, Business Regulation Article, Title 14, Subtitle 2, Annotated Code of Maryland, the following terms have the meanings indicated. B. Terms Defined. (1) Except as used in …

.02 Franchise. A. Scope. The Commissioner shall consider the factors set forth in this regulation in any determination as to whether a business relationship is a franchise as defined in the Maryland Franchise Law, Business Regulation Article, §14-201(e), Annotated Code of Marylan…

.03 Franchise Fee. A. Scope. The Commissioner shall consider the factors set forth in this regulation in any determination as to whether a franchisee is required to pay a franchise fee, as defined in the Maryland Franchise Law, Business Regulation Article, §14-201(g), Annotated C…

.04 Application for Registration. A. Form of Application. An application to register a franchise shall be prepared in accordance with the Uniform Franchise Offering Circular Guidelines adopted by the North American Securities Administrators Association, Inc., on April 25, 1993 (U…

.05 Initial Registration. A. Registration File Number. (1) Upon receipt of an application for initial registration, the Division shall assign a file number to the application. (2) Correspondents shall refer to the assigned file number in all subsequent related filings and corresp…

.06 Amendment of Registration. A. When to File. (1) An application for amendment of a registration statement shall be promptly filed if there is a material change in the information that a registrant previously filed with the Commissioner. (2) An amendment is not required if a pa…

.07 Renewal of Registration. A. Time for Submitting Renewal Application. (1) An application to renew a registration shall be submitted to the Division not less than 15 business days before the end of 1 year from the effective date of the registration. (2) If a registrant submits …

.08 Escrow Condition. A. Imposition of Escrow Condition. At any time after the submission of a registration statement and upon a finding that it is necessary and appropriate for the protection of prospective franchisees or subfranchisors, the Commissioner may require a franchisor…

.09 Advertising. A. Standards For Advertising. (1) An advertisement for a franchise offering may not refer to: (a) The purchase or sale of a franchise as a safe investment, as free from risk of loss or default, or as a guarantee or assurance of earnings or profits; (b) An earning…

.10 Exemptions. A. Basis of Exemption. Under the Maryland Franchise Law, Business Regulation Article, §14-214(b)(3), Annotated Code of Maryland, the Commissioner has determined that the offers or sales described in §§B—G of this regulation are exempt from the registration provisi…

.11 Exemptions—Form F-1. The following form shall be filed by franchisors claiming exemptions under Regulation .10D, E, F, or G of this chapter: FORM F-1 NOTICE OF EXEMPTION UNDER THE MARYLAND FRANCHISE REGISTRATION AND DISCLOSURE LAW Pursuant to COMAR 02.02.08.10 This Notice of …

.12 Denial, Suspension, or Revocation of Registration or Exemption. The Commissioner, with or without prior notice or hearing, may issue a cease and desist order and may deny, suspend, or revoke any registration, amendment, or claim of exemption set forth in Regulation .10 of thi…

.13 Financial Statements. A. Scope. The following financial statements shall be prepared in accordance with this regulation: (1) A financial statement required by the Maryland Franchise Law; (2) A financial statement required by any regulation adopted under the Maryland Franchise…

.14 Reports by Registrants. A. Time for Filing. (1) A franchisor registered under the Maryland Franchise Law shall file a quarterly report with the Commissioner. (2) The first report filed under this section shall be filed not later than 90 days after the effective date of the fr…

.15 Franchisor Records. A. Records to Be Maintained. A franchisor offering or selling a franchise in the State shall maintain complete and accurate records of offers and sales of franchises, including but not limited to: (1) Offering circulars; (2) Advertising; (3) Correspondence…

.16 Fraudulent and Prohibited Practices. A. Scope of Antifraud Provisions. Unless otherwise indicated, the antifraud provisions of the Maryland Franchise Law, Business Regulation Article, §14-229, Annotated Code of Maryland, and this regulation apply to any offer to sell or sale …

.17 Interpretive Opinions. A. Filing of Request. A request for an interpretive opinion or a no action position under the Maryland Franchise Law, Business Regulation Article, §14-209, Annotated Code of Maryland, shall be filed with the Commissioner. B. Form of Request. A request f…

.18 Internet Offers. A. Any communication made through the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system, of an offer to sell a franchise (Internet Offer) is exempt from the registration provisions of the Maryland Fran…

.01 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Federal covered security” has the meaning stated in Corporations and Associations Article, §11-101(f), Annotated Code of Maryland. (2) “Investment company” has the meaning…

.02 Incorporation by Reference. A. In this chapter, the following documents are incorporated by reference. B. Documents Incorporated. (1) 15 U.S.C. §80a-3. (2) 15 U.S.C. §80a-4(2). (3) 15 U.S.C. §77b(a)(8).

.03 Use of Uniform Forms. A. Required Uniform Forms. To comply with the notice filing requirements of this chapter and Corporations and Associations Article, §11-503.1, Annotated Code of Maryland, an issuer may use the following forms: (1) Form NF (Uniform Investment Company Noti…

.04 Notice Filing—Investment Companies. A. Notice Filing. An issuer registered with the SEC under the Investment Company Act of 1940 that intends to offer or sell securities that are federal covered securities under §18(b)(2) of the Securities Act of 1933 shall, before an offer o…

.05 Notice Filing Fee—Investment Companies. A. Notice Filing Fee. (1) An issuer submitting a notice filing under Regulation .04 or .06 of this chapter shall pay an initial part of its fee at the time of the notice filing and the remaining part of its fee by the due date under §B …

.06 Renewal Notice Filing—Investment Companies. A. Renewal Notice Filing. An issuer shall renew its notice filing for a successive 1-year period by paying $500 as the initial part of its renewal fee and submitting to the Commissioner, within the due date under §B of this regulati…

.07 Termination of Offering—Investment Companies. If an issuer terminates an offering in Maryland, it shall: A. Notify the Commissioner of the termination of the offering; and B. Pay the fee and file any year-end sales report required by Regulation .05 of this chapter. Cross Refe…

.08 Combinations and Reorganizations—Investment Companies. A. Surviving Issuer. Within 15 days after the combination or reorganization of two or more issuers: (1) A surviving issuer with an effective notice filing in Maryland shall amend its notice filing in accordance with Regul…

.09 Notice Filing and Fee—SEC Rule 506 Offerings. A. General. An issuer that intends to offer or sell federal covered securities under §18(b)(4)(D) of the Securities Act of 1933 shall, not later than 15 days after the first sale of securities in Maryland, submit a notice filing u…

.10 Notice Filing and Fee—Federal Covered Securities under §18(b)(3) and (b)(4)(A)—(C) of the Securities Act of 1933. A. General. (1) An issuer that intends to offer or sell federal covered securities under §18(b)(3) or (b)(4)(A)—(C) of the Securities Act of 1933 shall submit a n…

.11 Registration of Agents. A person engaged in sales activity relating to the offer or sale of federal covered securities under this chapter shall: A. Register as a broker-dealer agent under Corporations and Associations Article, §11-401, Annotated Code of Maryland, and COMAR 02…

.01 Notice. A. Any country club to be afforded a hearing on charges of discrimination prohibited by Tax-Property Article, §8-214, Annotated Code of Maryland, shall be given written notice of the date, time, and place of the hearing not less than 30 days before the hearing. Notice…

.02 Answer. A. Upon receipt of charges and notice of hearing, a country club shall, within 15 days of the date of the notice, respond in writing to the charge or charges of discrimination. The answer shall indicate additionally whether or not the country club desires a hearing. B…

.03 Postponements. A. If, for good cause shown, a country club requests in writing a postponement of the hearing date within the time provided for its response under Regulation .02 of this chapter postponement may be granted. The postponement may not be for more than 30 days unle…

.04 Conduct of Hearings. A. Hearings shall be conducted before a hearing officer appointed by the Attorney General. The hearings shall be recorded and shall be open to the public. B. Hearings may be conducted in an informal manner and the parties may not be bound by the technical…

.05 Orders. A. After the hearing has been completed, the hearing officer shall submit findings of fact, conclusions of law, and a proposed order to the Attorney General for review. The Attorney General shall issue findings of fact, conclusions of law, and a final order. B. The fi…

.06 Further Appeals. A. Any country club which has its tax exemption, credit, or beneficial assessment withdrawn as described in Regulation .05E of this chapter may appeal pursuant to State Government Article, §§10-215 and 10-216, Annotated Code of Maryland. The appeal shall be t…

.07 Computation of Time. A. In computing any period of time prescribed by these regulations, the day of the act or event after which the designated period of time begins to run is not to be included. B. The last day of the time period is to be included unless it is a Saturday, Su…