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Office of Administrative Hearings & Decisions

The Office of Administrative Hearings (OAH) is available to state or local government agencies in California to act as a quasi-judicial tribunal and conduct a variety of proceedings. The Department of Corporations' cases heard by OAH are for contested cases, often related to the Department's enforcement of the laws it regulates. Administrative Law Judges (ALJ) preside over OAH proceedings in a manner similar to civil court trials with each party given an opportunity to make an opening statement, call witnesses, offer other relevant evidence, and make closing arguments. The ALJs are fully independent of the agencies whose attorneys appear before them and are neutral fact-finders.

After the record is closed and the matter is submitted, the ALJ prepares a proposed decision in such form that it may be adopted as the final decision in the case. Government Code Section 11517 provides the options for an agency after a proposed decision is received. The agency may adopt the proposed decision in its entirety, make technical and minor changes, or reduce the proposed penalty and adopt the balance of the proposed decision. Alternatively, the agency may reject the proposed decision and decide the case upon the record, with or without taking additional evidence, or refer the case back to the ALJ to take additional evidence.

In order to ensure impartial adjudication, the California Department of Corporations maintains separation of functions throughout the OAH process. Separation of functions refers to a structural organization that places the responsibility for advocacy in one group of an agency and the responsibility for adjudicatory decision-making in a different group. The internal separation of functions leaves both functions within the same agency but prohibits the advocates in a case from participating or advising in the adjudicatory decisions of that case.

Within the Department of Corporations, the Office of Legislation & Policy (OLP) assists with the adjudicatory decision-making and the Enforcement Legal Services Division is the advocate for the Department in the OAH Process. Based on its role in the process, OLP is responsible for ensuring consistent interpretation and application of the laws administered by the Department of Corporations. For more information on the overall duties and functions of OLP, please visit the OLP home page.