2684

LAWS OF MARYLAND

Ch. 719

that it is without merit, he shall dismiss the complaint
without a hearing, and shall, in that event promptly notify,
in writing, the surety and the complainant. In all other
cases, the Commissioner shall hold a hearing on the
complaint within 30 days after receipt of the complaint and
shall give written notice of the time and place of the
hearing to all parties at least 10 days prior to the
scheduled date of the hearing. At any hearing to determine
whether there has been a violation of this section, the
burden of persuasion shall be upon the surety to demonstrate
that the cancellation or refusal to underwrite or renew is
not based in whole or in part upon race, color, creed, sex,
or physical handicap or disability of an applicant or
principal or for any unfairly discriminatory reason. If,
after the hearing, the Commissioner finds that the surety
has violated any provision of this section, he may issue an
appropriate order specifying the manner in which the surety
has violated this section. The order may also provide
relief under subsections (f) or (g) of this section, if
appropriate; and the order shall state when, within a
reasonable period thereafter and in no event less than 10
days, it shall be effective.

All hearings and proceedings conducted under this
section, as well as any decision of the Commissioner, shall
be subject to appeal by any party involved. Such hearings,
proceedings and appeal shall be in accordance with the
provisions of § 40 of this article.

[(e)] (F) Any information or testimony provided by a
surety pursuant to a complaint under this section shall be
privileged and confidential and there shall be no liability
on the part of and no cause of action of any nature shall
arise against any surety, its representatives, or any person
who in good faith furnishes to the surety any information or
testimony relating to the complaint.

[(f)] (G) If the Commissioner finds that the surety
has willfully violated any of the provisions of this
section, he may impose a fine upon the offending party in
accordance with § 12 of this article.

[(g)] (H) In lieu of the penalty provided in
subsection (f) of this section the Commissioner may, if
appropriate, order the surety to write the bond if, at the
hearing provided in subsection (d), he finds the following
facts to be proven by a preponderance of the evidence:

(1)  That the violation of subsections (a) or (b)
of this section was knowing and willfull and,

(2)  That the violation of subsection (a) or (b)
was the basis for the surety's action.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.