Ala. Admin. Code r. 830-X-1-.05

Current through Register Vol. 43, No. 1, October 31, 2024

Section 830-X-1-.05 - Formal And Informal Procedures

(1)General. The Commission recognizes both formal and informal hearings. Formal hearings are those matters which require the taking of sworn testimony, a formal hearing, and a formal order. They must be instituted and progressed in conformity with the applicable rules governing contested cases under the Administrative Procedure Act (APA). Whenever practicable, informal procedures are recommended for speedy, amicable adjustment of complaints or controversies which do not necessarily require a formal hearing. Informal procedures utilized by the Commission include informal meetings with Commission staff and informal hearings before the Commission itself.

(2)Informal Meetings. If the Commission staff deems it advisable in the speedy determination of an informal matter, it will arrange an informal meeting between the staff and an applicant/registrant and attempt to resolve the controversy in an amicable manner.

(3)Informal Hearings.

(a) Informal hearings may be commenced by letter, telegram or other instrument in writing to the applicant/registrant against whom the proceeding is instituted; it shall include a concise statement of all the facts necessary to an understanding of the situation presented and a statement of the desired disposition.

(b) Such informal hearing shall be held among the Commission staff, the applicant/registrant, and the Commission at a regularly scheduled Commission meeting, the date of which shall be contained in the notice of informal hearing.

(c) Informal hearings shall be used to resolve minor deficiencies which the commission staff deems advisable to obtain guidance from the Commission itself. Such hearings shall not result in formal orders adverse to the applicant/registrant. Such hearings shall be used to grant approval of registration of securities where the submission is uncontested by Commission staff.

(d) The filing of an informal hearing is without prejudice to the right thereafter to institute a formal hearing covering the same matter.

(4)Formal Hearings.

(a) No order of the Commission which adversely affects the legal rights, duties or privileges of an applicant/registrant shall become final until such aggrieved party has been afforded the opportunity for a formal hearing under the provisions guiding contested cases of the Administrative Procedure Act. The applicant/registrant shall be advised of the reasons for the adverse action by a preliminary order signed by the Director. Such preliminary order shall advise the applicant/registrant of his right to request such formal hearing, and upon receipt of said such request, the Director shall, within fifteen (15) days, set the matter down for hearing before the Commission at its next regular or special board meeting. The Director shall give the applicant/registrant the required notice of such hearing by certified mail or personal service. Formal hearings will be conducted by the Chairman of the Commission or by a presiding officer designated for that purpose. The presiding officer shall conduct the formal hearing substantially as follows:

1. Call the hearing to order and thereafter give the title of the proceeding to be heard and a brief statement of the issues involved, or the nature and purpose of the hearing.

2. Cause to be entered in the record the kind of notice giving the time, place, and nature of the hearing, the date or dates such notice was given, and the method whereby it was served.

3. Take the appearances of the parties desiring to participate in the hearing, stating the nature and extent of the parties interest and the questions or issues to which each confines his appearance.

4. Call for any motions or other matters that should be disposed of prior to the taking of testimony.

5. Call for the presentation of evidence, whereupon the Commission staff shall present its evidence and exhibits, followed by evidence and exhibits presented by the applicant/registrant.

(b) At the conclusion of the hearing, the Commission shall deliberate in executive session and reach a decision to enter a final order, or modify or vacate the preliminary order. The Commission may require the parties to submit proposed findings of fact and conclusions of law for consideration in the disposition of said cause.

Author:

Ala. Admin. Code r. 830-X-1-.05

Filed September 30, 1982. Readopted: Filed November 9, 1983.

Statutory Authority:Code of Ala. 1975, §§ 8-6-23, 41-22-4.