Maryland Board of Physicians v. Elliott

MOYLAN, J. This administrative appeal raises several intriguing questions about the intricate matrix of relationships between an administrative agency and the Office of Administrative Hearings (OAH) to which the agency sometimes delegates some or all of its adjudicatory functions. Does the authority to delegate expand or contract when the adjudication is primarily 1) demeanor-based fact-finding, 2) other fact-finding that is not so dependent on demeanor assessment, or 3) the application of the law to essentially undisputed facts? Does the deference, if any, that the agency owes to the conclusions of the Administrative Law Judge (ALJ) expand or contract with the nature of the thing that the ALJ adjudicated? On judicial review, does the circuit court and then the appellate court look only to what the agency ultimately did or also to what the ALJ may have done?

Need we be concerned about whether the ALJ used the right or wrong burden of persuasion? It is a fascinating matrix that deserves periodic reexamination. ³⁷⁶ On September 80, 2008, the appellant, the Maryland Board of Physicians (“the Board”), denied the Application for Reinstatement of Medical License submitted by the appellee, Dr. Robert M. Elliott. Dr. Elliott appealed that denial to the Circuit Court for Baltimore County, which, on June 29, 2005, reversed the decision of the Board. The Board has, in turn, appealed to us.

Personal Background Dr. Elliott is a physician who practices dermatology and specializes in hair restoration. He was originally licensed to practice medicine in the State of Maryland on October 23, 1991, but his Maryland license registration expired on September 30, 1992. Dr. Elliott is currently a partner, with Robert True, M.D., in a medical practice known as the Elliott-True Medical Group, with offices in California, Illinois, Maryland, and New York. Dr. Elliott’s primary practice is in California and he is a resident of that state.

Procedural Background In December of 1999, Dr. Elliott submitted an Application for Reinstatement of his Medical License to what was then designated as the Maryland Board of Physician Quality Assurance. Effective July 1, 2003 by Chapter 252 of the Maryland Laws of 2003, the Board’s name was changed to the Maryland Board of Physicians. On September 13, 2000, the Board issued a Notice of Initial Denial of Dr. Elliott’s Application. Pursuant to Maryland Code, Health Occupations Article, § 14-205, the Board possesses the authority to deny a license for any actions which would, on the part of a licensee, constitute grounds for disciplinary action under § 14-404.

Section 14-205 provides, in pertinent part: (a)(1) In addition to the powers set forth elsewhere in this title, the Board may: (iii) Subject to the Administrative Procedure Act, deny a license to an applicant or refuse to renew or reinstate an ³⁷⁷ applicant’s license for any of the reasons that are grounds for action under § lk-kOlt of this title. (Emphasis supplied). The notice of denial was based on allegations that Dr. Elliott had committed acts that would, had he been a licensee, have violated § 14-404(a)(l), in that he fraudulently or deceptively attempted to obtain reinstatement of his medical license for himself; § 14-404(a)(3), in that he was guilty of unprofessional conduct in the practice of medicine; and § 14-404(a)(36), in that he willfully made misrepresentations when seeking or making application for reinstatement of his medical license. The letter of “Initial Denial” also informed Dr. Elliott that he was entitled to a hearing before an Administrative Law Judge and to the opportunity, should the findings and recommendations of the ALJ be adverse to him, to “file exceptions and present argument to the Board.” If you request a hearing in this matter, please be advised that you must prove by a preponderance of the evidence that you are entitled to be reinstated by the Board.

You should note that an Administrative Law Judge will conduct the hearing in accordance with the Administrative Procedure Act, Md.Code Ann., State Gov’t § 10-201 et seq. The Administrative Law Judge will submit proposed findings of fact to the Board for the Board’s consideration. If the proposed findings are adverse to you, you mil be given an opportunity to file exceptions and present argument to the Board before the Board reaches a final decision. (Emphasis supplied).

Dr. Elliott did, indeed, “request a hearing in this matter.” Accordingly, the case was assigned by the Office of Administrative Hearings to Administrative Law Judge Joan B. Gordon. In Maryland Board of Physicians v. Bernstein, 167 Md.App. 714, 721 , 894 A.2d 621 (2006), Judge Deborah Eyler explained the applicable principles and procedures governing such delegation. ³⁷⁸ At that point, the physician is entitled to a contested case hearing before an administrative law judge in the Office of Administrative Hearings, pursuant to the Administrative Procedure Act, section 10-201 et seq. of the State Government Article (“SG”). Following the hearing, the ALJ issues findings of fact, conclusions of law, and a proposed disposition. Either party may file exceptions to the ALJ’s findings and proposed disposition.

The Board is not bound by the decision of the ALJ. After receiving the ALJ’s proposed decision, the Board must review the record and the ALJ’s proposal, and hold a hearing on any exceptions. It then issues a final decision stating its findings of facts, conclusions of law, and a disposition of the charge. (Emphasis supplied).

After a procedural glitch that is not pertinent to what is now before us, ALJ Gordon conducted a two-day hearing beginning on November 19, 2002. On March 17, 2003, she issued a Proposed Decision. The ALJ’s proposed conclusions of law were that Dr. Elliott had violated the Maryland Medical Practice Act by acts that would qualify as violations of § 14-404(a)(1), (3), and (36). As a proposed disposition, the ALJ recommended that Dr. Elliott’s application for reinstatement of medical license be denied.

Dr. Elliott filed timely Exceptions to the Proposed Decision of the ALJ. An Exceptions hearing was held before the Board on May 28, 2003. The Board issued its Final Order on September 30, 2003, in which it denied Dr. Elliott’s application for the reinstatement of his medical license. Dr. Elliott appealed that decision of the Board to the Circuit Court for Baltimore County.

Following a hearing on April 20, 2005, that court, on July 6, 2005, issued an Opinion and Order reversing the decision of the Board and remanding the case for further proceedings. ³⁷⁹ The Contentions The Board, in turn, has appealed to us. It contends 1. that there was substantial evidence to support the decision of the Board; and 2. that the “clear and convincing” burden of persuasion did not apply in this case, but that even if it, arguendo, did apply, it was satisfied. A False Light On the Shore During the course of oral argument and our first preliminary consideration of the case, a troubling question arose, sua sponte, casting into at least momentary doubt the propriety of the Board’s having submitted the case to the OAH. There were distant echoes about “demeanor-based credibility findings,” but the connection, if any, of those faint resonances to what was before us was uncertain.

Was it possible that, although the delegation of demeanor-based fact-finding to an ALJ might be appropriate, the delegation of authority to reach more technical findings and even tentative conclusions of law might not be appropriate? Although we were soon disabused of the doubt, it behooves us, at the threshold, to address that issue of what is a proper delegation of adjudicative authority by an administrative agency to an ALJ. The Propriety of Submitting the Case To the Office of Administrative Hearings Procedurally, this case is governed squarely by the Administrative Procedure Act, Maryland Code, State Government Article, §§ 10-201 et. seq. As Judge James Eyler observed in Bragunier Masonry Contractors v. Maryland Commissioner of Labor and Industry, 111 Md.App. 698, 705 , 684 A.2d 6 (1996), cert. denied, 344 Md. 566 , 688 A.2d 445 (1997): The model administrative procedure act was developed to encourage a more uniform procedural process for administrative agencies.

Maryland adopted the 1961 version of the model with some changes. See SG §§ 10-201 et seq. The APA applies to all state administrative agencies not specif ³⁸⁰ ically exempted and provides a standard framework of fair and appropriate procedures for agencies that are responsible for both administration and adjudication of their respective statutes. (Emphasis supplied).

See also Kaufman v. Taxicab Bureau, Baltimore City Police Department, 236 Md. 476, 479-80 , 204 A.2d 521 (1964) (f[T]he Administrative Procedure Act shall apply to all State agencies except those expressly excluded therefrom.”) (emphasis supplied). A major premise is thus established. The appellant, Maryland Board of Physicians, both under its present name and under its former name of Board of Physician Quality Assurance, clearly qualifies as an “Agency” within the definition of § 10-202(b). In terms of being covered by the Administrative Procedure Act, moreover, the Board of Physicians has never been “expressly excluded” or “specifically exempted” from its coverage.

A minor premise is thus established. The Board’s coverage by the APA thereby becomes the ineluctably valid conclusion of a classic categorical syllogism: All agencies that are not specifically exempted are covered by the APA. The Board of Physicians is an agency that is not specifically exempted. Ergo, the Board of Physicians is covered by the APA.

A quick look at the case names leads us to the same conclusion inductively: Young v. Board of Physician Quality Assurance, 111 Md.App. 721 , 684 A.2d 17 (1996); Board of Physician Quality Assurance v. Banks, 354 Md. 59 , 729 A.2d 376 (1999); Solomon v. Board of Physician Quality Assurance, 132 Md.App. 447 , 752 A.2d 1217 (2000); Gabaldoni v. Board of Physician Quality Assurance, 141 Md.App. 259 , 785 A.2d 771 (2001); Oltman v. Maryland State Board of Physicians, 162 Md.App. 457 , 875 A.2d 200 (2005); State Board of Physicians v. Bernstein, 167 Md.App. 714 , 894 A.2d 621 (2006). Q.E.D. ³⁸¹ Under the APA, the decision of the Board to grant or to deny the renewal of Dr. Elliott’s license to practice medicine in the State of Maryland was unquestionably a “contested case.” Section 10-202(d), defining “contested case,” provides in pertinent part: (1) “Contested case” means a proceeding before an agency to determine: (ii) the grant, denial, renewal, revocation, suspension, or amendment of a license that is required by statute or constitution to be determined only after an opportunity for an agency hearing. (Emphasis supplied). See Modular Closet Systems, Inc. v. Comptroller, 315 Md. 438, 443-48 , 554 A.2d 1221 (1989); Maryland Pharmacists Association v. Attorney General, 115 Md.App. 650, 656-58 , 694 A.2d 492 (1997).

Section 10-205, in turn, grants to an Agency the discretionary authority to delegate to the Office of Administrative Hearings the actual conducting of a hearing in such a contested case. Subsection (a) provides, in pertinent part: (a) To whom delegated. — (1) A board, commission, or agency head authorized to conduct a contested case hearing shall: (i) conduct the hearing; or (ii) delegate the authority to conduct the contested case hearing to: 1. the Office [of Administrative Hearings]. (Emphasis supplied). With respect to the OAH, to which adjudicating responsibility is delegated, in Anderson v. Department of Public Safety, 330 Md. 187 , 623 A.2d 198 (1993), Judge Orth adverted to the establishment of the Office of Administrative Hearings in 1989 and then explained the salutary effect of making available to a complainant “an impartial hearing officer” rather than a hearing officer “under the control of the agency” with the possibly resultant appearance of “unfairness or bias.” ³⁸² One of the main objectives of the Legislature in establishing the OAH was to provide an impartial hearing officer in contested cases.

A hearing officer employed by and under the control of the agency where the contested case or other disputed action arises, often results in the appearance of an inherent unfairness or bias against the aggrieved. 330 Md. at 213-14 , 623 A.2d 198 (emphasis supplied). This salutary effect, emanating in no small measure from the appearance of neutrality, would self-evidently inure from an ALJ’s conclusions of law as readily as from an ALJ’s findings of fact. Once a contested case has been delegated by an Agency to the OAH and then assigned to an ALJ for a hearing, the controlling procedural regimen is that which has been well described by Judge Harrell in Kohli v. LOOC, Inc., 103 Md.App. 694, 712 , 654 A.2d 922 (1995), reversed in part on other grounds, LOOC, Inc. v. Kohli, 347 Md. 258 , 701 A.2d 92 (1997). Under Maryland’s current system of State administrative procedures, set forth in The Administrative Procedure Act (“the APA”), Md.Code Ann., State Gov’t § 10-101 et seq.

(1993 Yol. & Supp.1994), the head of a covered agency has the option, under § 10-205 of the APA, of either allowing the agency itself to conduct the hearing in a contested case, or delegating such authority to the Office of Administrative Hearings (“the OAH”), which designates an administrative law judge to perform that function. In the event that an agency elects to have the OAH play a role in the hearing process, administrative law judges are generally employed not to render a final decision as a result of the hearing, but rather to develop a record and to make a recommendation to the agency head, which may either be adopted, modified, or rejected at the agency’s discretion. (Emphasis supplied). When the agency “delegates the hearing responsibility to the ALJ,” moreover, the ALJ then “becomes an extension of [the agency].” Bragunier, 111 Md.App. at 707 , 684 A.2d 6 .

A ³⁸³ perhaps unwieldy board of commissioners enjoys the benefit of having a trained examiner. Avoiding Confusion Between Degrees of Deference hand the Discretion to Delegate But is there a limitation on the types of adjudicatory responsibility that may be delegated? Does what we shall call the Anderson-Shrieves Deference Rule possibly stretch this far? When an agency, pursuant to § 10 — 205(b), delegates to an ALJ the limited task of making only proposed findings of fact and/or proposed conclusions of law, the agency is ordinarily at liberty, in making its own independent final decision, to override the ALJ.

A recent sunburst of caselaw, however, has imposed a narrow limitation on one aspect of an agency’s otherwise unfettered entitlement to override the conclusions of the ALJ. Because of the prominence of this recent flurry of activity, we were, during the course of oral argument, momentarily tempted to chase an illusory analogy down what would have been a rabbit hole. The temptation was to confuse 1) that very limited area of demeanor-based fact-finding with respect to which the ALJ enjoys an unusually high degree of deference with 2) a limitation on the type of adjudicating that may be delegated to the ALJ in the first instance. A close look at the recent caselaw, fortunately, occasioned a quick correction of course.

It may nonetheless be helpful to pin down the illusive chimera lest others be lured by it down the same false trail. The Anderson-Shrieves Distinction A new distinction in the caselaw first surfaced in Anderson v. Department of Public Safety, 330 Md. 187 , 623 A.2d 198 (1993). An administrative agency (the Department of Corrections) totally overrode the fact-finding of an ALJ and reached its own contrary findings of fact. The issue before the Court of Appeals was, quite properly, whether the agency had a substantial basis for its own ultimate fact-finding.

If there were enough independent evidence to constitute a rational basis for the agency’s own fact-finding, its decision would be ³⁸⁴ sustained, under the substantial evidence test, notwithstanding the ALJ’s findings to the contrary. Because of the superior opportunity for the ALJ to observe witnesses and to make demeanor-based credibility assessments, however, the failure of the agency to defer to the ALJ in a case in which demeanor and credibility were significant factors could not be totally ignored. Such a disdain for the ALJ, unexplained, might have an erosive effect on the “substantial basis” the agency would need to rely on to support its decision on appellate review. There was a psychic tension between two conflicting principles, and the Court of Appeals looked for guidance to the federal Administrative Procedure Act and especially to the opinion of the Supreme Court in Universal Camera Corp. v. National Labor Relations Board, 340 U.S. 474 , 71 S.Ct. 456 , 95 L.Ed. 456 (1951).

Even while preserving the substantial evidence test as the ultimate criterion, the Supreme Court nonetheless observed: We intend only to recognize that evidence supporting a conclusion may be less substantial when an impartial, experienced examiner who has observed the witnesses and lived with the case has drawn conclusions different from the [agency’s] than when he has reached the same conclusion. 340 U.S. at 496 , 71 S.Ct. 456 (quoted at 330 Md. at 216 , 623 A.2d 198 ) (emphasis supplied). The Court of Appeals, in turn, recognized the unique value of first-hand observation of a witness’s demeanor. All aspects of the witnesses demeanor — including the expression of his countenance, how he sits or stands, whether he is inordinately nervous, his coloration during critical examination, the modulation or pace of his speech and other non-verbal communication — may convince the observing [hearing officer] that the witness is testifying truthfully or falsely. 330 Md. at 216 , 623 A.2d 198 (quoting Penasquitos Village, Inc. v. N.L.R.B., 565 F.2d 1074, 1078-79 (9th Cir.1977)) (emphasis supplied). ³⁸⁵ The Court of Appeals finally quoted with approval, 330 Md. at 217 , 623 A.2d 198 , from 1 Charles H. Koch, Jr., Administrative Law and Practice (1985), § 6.73, p. 520: [T]he credibility findings of the person who sees and hears the witnesses — be he ALJ, juror or judge — is entitled to considerable deference. While the degree of deference due the ALJ’s final decision is related to the importance of credibility in a particular case, the ALJ’s decision to give or deny credit to a particular witness’ testimony should not be reversed absent an adequate explanation of the grounds for the reviewing body’s source of disagreement with the ALJ.

In sum, the review authority has the power to reject credibility assessments only if it gives strong reasons for doing so. (Emphasis supplied). The Court of Appeals reversed the agency. A year later, Judge Motz picked up on the theme and further refined it in Department of Health and Mental Hygiene v. Shrieves, 100 Md.App. 283 , 641 A.2d 899 (1994).

In that case, the final decision of the administrative agency was diametrically contrary to the proposed decision by the ALJ. At the outset of analysis, Judge Motz pointed out that it is, of course, the final decision of the agency, and not the antecedent decision of the ALJ, that is both reviewed by the courts and entitled to deference by the courts. The standard for reviewing the decision of the agency remains the “substantial evidence” standard. Nothing in Anderson changed that.

It was nonetheless appropriate to fine-tune our mode of assessing what is substantial evidence. Only if that order [of the agency] is not based on substantial evidence can it be reversed by a court.... [T]he “ ‘substantial evidence’ standard is not modified in any way when the [agency] and its examiner disagree. ” The court below erred in viewing its “job” as “determining] if the ALJ had a rational basis for making the decision she did” or if the ALJ’s decision was supported by substantial evidence. The court’s “job” was not to assess ³⁸⁶ the “rationality” of or evidentiary basis for the ALJ’s recommendation; it was to assess the rationality or evidentiary basis of the agency’s ... final order. Drexel Bum-ham Lambert, Inc. v. Commodity Futures Trading Comm’n, 850 F.2d 742, 747 (D.C.Cir.1988) (when the agency and an “ALJ disagree on factual inferences to be drawn from the record ... the question to be decided is not whether the agency has ‘erred’ in ‘overruling’ the ALJ’s findings, but whether its own findings are reasonably supported on the entire record ”). 100 Md.App. at 297 , 641 A.2d 899 (emphasis supplied).

Limitation No. 1: The Substantial Evidence Test Trumps Everything Else The Shrieves opinion made clear that there are two basic limitations on what might otherwise be read, overbroadly, into the Anderson opinion. Because the substantial evidence test remains the ultimate and absolutely controlling consideration on judicial review, it does not matter that the agency may have ignored the findings and the proposed decision of the ALJ, even without having had any rational basis for doing so, just so long as there still exists some other basis for the agency’s decision that would be enough, in and of itself, to satisfy the substantial evidence test. [T]he question is not “whether the agency erred" in overruling the ALJ but whether there is substantial evidence for the agency’s decision. Accordingly, the “power of administrative law judges to render initial decisions does not mean that [an agency] is ‘relegated to the role of [a] reviewing court.’ ” ... It is the agency’s responsibility to make the final decision; in doing so, it certainly may “substitute” its judgment for that of the ALJ.

Moreover, the agency’s substituted judgment must be affirmed by a court — if it is based on substantial evidence. The ALJ’s recommendation — and particularly its credibility findings — are part of that evidence, but if there is “evidence to support each of two conflicting views, ” e.g., the ALJ’s and the agency’s, the ³⁸⁷ findings of the agency “must be allowed to stand despite the fact that [a court] might have reached the opposite conclusion on [its] own.” 100 McL App. at 302, 641 A.2d 899 (emphasis supplied). Judge Motz encapsulated our holding in a nutshell. To summarize, when an administrative agency overrules the recommendation of an ALJ, a reviewing court’s task is to determine if the agency’s final order is based on substantial evidence in the record.

In making this judgment, the ALJ’s findings are, of course, part of the record and are to be considered along with the other portions of the record .... If after giving appropriate deference to the ALJ’s demeanor-based findings there is sufficient evidence in the record to support both the decision of the ALJ and that of the agency, the agency’s final order is to be affirmed — even if a court might have reached, the opposite conclusion. This approach preserves the rightful roles of the ALJ, the agency, and the reviewing court: it gives special deference to both the ALJ’s demeanor-based credibility determinations and to the agency’s authority in making other factual findings and properly limits the role of the reviewing court. 100 Md.App. at 302-03 , 641 A.2d 899 (emphasis supplied). Limitation No. 2: Testimonial Inferences Versus Derivative Inferences Even in those cases in which there is no independent evidence on which to base an agency decision that is contrary to the proposed decision of the ALJ, moreover, there is yet a further limitation on the possible reading of Anderson that the agency must justify its departure when it departs from the fact-findings of the ALJ.

The Shrieves opinion pointed out that not all fact-finding by an ALJ is entitled to special deference by the delegating agency, but only those findings of fact which are demeanor-based credibility determinations. Generally, the ALJ’s findings, however, “are not entitled to any special deference from the agency except insofar as [they] are based on witness credibility determinations.” ³⁸⁸ The significance to be given to ALJ’s credibility determinations “depends largely on the importance of credibility in the particular case. ” If credibility is not important in the agency’s final decision, an ALJ’s credibility determinations are not very significant. If credibility is of “utmost importance, ” if it “played a dominant role,” if it was “pivotal” to an agency’s final order — as in Anderson — then an ALJ’s credibility determinations are entitled to substantial deference. 100 Md.App. at 298-99 , 641 A.2d 899 (emphasis supplied). It was the Shrieves opinion, quoting Penasquitos Village, Inc. v. N.L.R.B., 565 F.2d 1074, 1078-79 (9th Cir.1977), that introduced into the Maryland juridical lexicon the critical distinction between “(1) testimonial inferences, ‘credibility determinations based on demeanor;’ and (2) derivative inferences, ‘inferences drawn from the evidence itself.’ ” Demeanor-based credibility determinations are, by their nature, deserving of deference.

All aspects of the witness’s demeanor — including the expression of his countenance, how he sits or stands, whether he is inordinately nervous, his coloration during critical examination, the modulation or pace of his speech and other nonverbal communication — may convince the observing trial judge that the witness is testifying truthfully or falsely. These same very important factors, however, are entirely unavailable to a reader of the transcript. 100 Md.App. at 300 , 641 A.2d 899 (quoting Penasquitos Village, Inc., 565 F.2d at 1078 ) (emphasis supplied). The Agency, on the other hand, owes no such deference to the derivative inferences of the ALJ, notwithstanding the fact that they fall within the generic category of fact-finding. But it should be noted that the administrative law judge’s opportunity to observe the witnesses’ demeanor does not, by itself, require deference with regard to his or her derivative inferences.

Observation makes weighty only the observer’s testimonial inferences. ³⁸⁹ Deference is accorded [an agency’s] factual conclusions for a different reason — [the agency is] presumed to have broad experience and expertise in [the area].... Further, it is the [agency] to which [the legislature] has delegated administration of the [statute]. The [agency], therefore, is viewed as particularly capable of drawing inferences from, the facts.... Accordingly, ... a [reviewing court] must abide by the [agency’s] derivative inferences, if drawn from not discredited testimony, unless those inferences are “irrational,” ... “tenuous” or “unwarranted.” Id. quoting Penasquitos Village, Inc., 565 F.2d at 1078-79 (emphasis supplied).

Derivative inferences, frequently derived from undisputed evidence, may readily be based on an agency’s professional expertise and familiarity with procedures uniquely within its ken. With respect to such derivative inferences, therefore, the agency owes no deference to the ALJ. Shrieves concluded that the limitations on the deference rule that it articulated were implicit, even if not explicit, in the Anderson opinion. Although Anderson did not explicitly adopt the view that only an ALJ’s demeanor-based credibility determinations are entitled to special deference, it does appear to have implicitly adopted this position.

Id. (emphasis supplied). The Anderson-Shrieves Deference Rule In Practice In the twelve years since the Shrieves decision, the Anderson-Shrieves Deference Rule has been addressed by this Court on four occasions and by the Court of Appeals on one occasion. In Gabaldoni v. Board, of Physician Quality Assurance, 141 Md.App. 259 , 785 A.2d 771 (2001), Judge Salmon noted, 141 Md.App. at 261 , 785 A.2d 771 , that “an interesting question arises when an agency decides an issue after an Administrative Law Judge makes factual determinations with which the agency later disagrees.” After reviewing the Shrieves opinion, we held that the Board’s “different factual conclusions” were based on the Board’s own derivative ³⁹⁰ inferences.

Id. at 263, 785 A.2d 771 . On essentially undisputed facts, the critical derivative inference (indeed, the Board’s ultimate decision) was whether the appellant doctor had breached the standard of care. We affirmed the decision of the Board to go its own way as one based on substantial evidence, to wit, on derivative inferences unaffected by the Anderson-Shrieves Deference Rule. See also Berkshire Life Insurance Co. v. Maryland Insurance Administration, 142 Md.App. 628, 647-48 , 791 A.2d 942 (2002).

In State Commission on Human Relations v. Kaydon Ring & Seal, Inc., 149 Md.App. 666 , 818 A.2d 259 (2003), the administrative agency (the Commission on Human Relations) ultimately found that an employer had wrongfully fired an employee because of his race. The ALJ who conducted the evidentiary hearing in the case, by contrast, had earlier found that such was not the case. Judge Deborah Eyler wrote for this Court as we held that the agency had no basis for rejecting the contrary demeanor-based findings of the ALJ. Both Skinner and Henry testified, and the ALJ found, that when Skinner fired Henry, he did so in anger and remarked that Henry could not “cut it,” i.e., could not perform.... [T]he Appeal Board adopted the ALJ’s finding that Henry’s performance, as measured by production and efficiency ratings, was deficient.

It was the Appeal Board’s finding of disparate treatment, contrary to the ALJ’s finding, and on a contested issue, that was crucial to its ultimate finding that despite Skinner’s “can’t cut it” remark, he in fact fired Henry because Henry is black. The evidence of disparate treatment in this case was conflicting and only could be resolved by a demeanor-based credibility assessment of certain witnesses. Id. at 703-04 , 818 A.2d 259 (emphasis supplied). The resolution of the critical issue in the case depended on which of two contradictory bits of testimony was to be believed.

As such, the issue should have been submitted to the ALJ, and the decision of the ALJ in that regard should have been extended due deference by the agency. ³⁹¹ Depending upon which of these witnesses is believed, and what parts of their testimony are credited, a fact finder reasonably could conclude that Skinner treated Henry and Morgan differently by telling Henry or leading him to think he could not apply for other jobs at Kaydon while leading Morgan to think he could, and then not standing in his way — or reasonably could conclude that Skinner did not do so. Precisely what Skinner said or did, and did not say and do, in this regard is not something that can be determined without a credibility judgment about the witnesses that only can come from observation. Id. at 704 , 818 A.2d 259 (emphasis supplied). The Kaydon opinion also added an efficacious tool to our analytic kit, as it coined a distinction between a “cold record” and a “live record.” In assessing the rationality and evidentiary basis for the agency’s final decision, however, we may take into account as a factor that on a cold record the agency made a decision contrary to the one the ALJ made on a live record, i.e., upon first-hand observation of witnesses.

Id. at 693 , 818 A.2d 259 (emphasis supplied). An instructive contrast emerges from juxtaposing our decision in Kaydon with the opposite result in State Board of Physicians v. Bernstein, 167 Md.App. 714 , 894 A.2d 621 (2006). In Kaydon we had held that demeanor-based findings of fact should have been made by the ALJ and should have been extended deference by the agency, whereas in Bernstein we held that derivative inferences drawn by the ALJ could be overridden by the agency with no deference needing to be shown. The critical issue was whether Dr. Bernstein, an anesthesiologist, was subject to disciplinary action by the State Board of Physicians for having breached the requisite standard of care.

A contested case hearing was held over the course of three days by an ALJ. “The focus of the hearing was expert testimony about the appropriate standard of care.” 167 Md. App. at 728 , 894 A.2d 621 . The ALJ found the testimony of ³⁹² Dr. Bernstein’s experts to be more credible than that of the Board’s experts. Indeed, the ALJ found one of the Board’s experts to have been biased. “The ALJ concluded that none of the charges brought by the Board established a breach of the standard of care.” Id. at 744 , 894 A.2d 621 . Exceptions were taken to the ALJ’s findings and proposed disposition.

After a hearing, the Board found facts contrary to the findings made by the ALJ and ultimately ruled that Dr. Bernstein had, indeed, breached the standard of care. After thoroughly analyzing the entire Anderson-Shrieves body of caselaw, id. at 751-55 , 894 A.2d 621 , Judge Eyler’s opinion labeled the issue being adjudicated as “a classic battle of the experts.” Id. at 757 , 894 A.2d 621 . Her opinion pointed out that the ALJ had, indeed, found Dr. Bernstein’s experts to be more “credible” than the Board’s experts, but that that particular credibility assessment had been based on something other than demeanor. Here, the ALJ stated several times in her proposed decision that the appellee’s expert witnesses were credible, and that they were more credible than the Board’s expert witnesses.

The reasons she gave to support her credibility findings did not involve assessments of the witnesses based on their demeanor, however. Clearly, the ALJ found the appellee’s experts to be more experienced, more proficient, more knowledgeable, and more objective than the Board’s witnesses, and determined on those bases that their opinions were sound and correct, and were “persuasive” and “credible.” She said nothing to indicate that the outward appearances of the expert witnesses as they testified played a part in her credibility evaluations of their testimony. By her own account of her evaluation of the evidence, the ALJ did not place any importance upon the demeanor of the expert witnesses in deciding which of them was more credible in their testimony. Id. at 759-60 , 894 A.2d 621 (emphasis supplied).

The opinion pointed out that expert testimony generally is not as dependent on demeanor-based credibility assessments as is the testimony of fact witnesses. ³⁹³ [EJxpert witnesses usually are not testifying about first-level facts that are susceptible of a “true or false” determination by the fact-finder (for example, whether the appellee indeed was in the operating room during extubation, as opposed to whether prevailing standards required him to be there). Demeanor most often is a factor in deciding the credibility of a fact witness who is testifying about a fact that may be true or false, not of an expert who is offering his opinion based on assumed facts. Id. at 760 , 894 A.2d 621 (emphasis supplied). Even witness bias on the part of an expert is not essentially a demeanor-based determination.

Bias can be shown on a cold record, however; a witness does not have to be observed for the fact-finder to determine that he has an interest in the outcome of the case that has led him, consciously or not, to shade his testimony. In this case, the appellee’s counsel effectively cross-examined Dr. Lyles about his activities in support of legislation that would have mandated that anesthesiologists personally perform certain tasks of patient care.... The ALJ was impressed by this evidence, and it is part of the reason she gave little weight to Dr. Lyles’s opinions. The Board had the prerogative to re-weigh evidence that was not demeanor-based, however, and it was not impressed 'with the bias evidence against Dr. Lyles, and weighed his opinions heavily. ... [T]he Board may make its own decisions about bias, interest, credentials of expert witnesses, the logic and persuasiveness of their testimony, and the weight to be given their opinions.

Accordingly, the Board did not owe deference to the credibility assessments made by the ALJ, and was not required to state strong reasons for rejecting those assessments. Id. at 761 , 894 A.2d 621 (emphasis supplied). In concluding that the Board in that case was not inhibited from overriding the ALJ’s findings, the opinion did contribute another analytically efficacious insight as it distinguished be ³⁹⁴ tween 1) credibility assessments generally and 2) demeanor-based, credibility assessments specifically. The AndersonShrieves Deference Rule applies only to the latter.

In Consumer Protection Division v. Morgan, 387 Md. 125 , 874 A.2d 919 (2005), the Court of Appeals addressed, slightly obliquely, the distinction between demeanor-based credibility findings and other factual findings that may be inferred from documents and events. One of the many issues facing the Court was the contention that the agency (the Consumer Protection Division) had ignored the proposed findings of fact and the proposed decision of the ALJ and ruled that the defendants were, indeed, guilty of violating the Consumer Protection Act. Albeit phrased as a question of whether the agency could “make the requisite findings based only on a paper record,” id. at 196 , 874 A.2d 919 , the issue was nonetheless, in the language of Shrieves , whether the conclusions of the agency were based on derivative inferences, which properly could have been made from a review of the transcript before the ALJ, or depended on testimonial inferences, in which case the agency shall either have given deference to the findings of the ALJ or should, on a rehearing, have observed testimonial demeanor for itself. Judge Raker’s opinion, 387 Md. at 197 , 874 A.2d 919 , explained that sometimes the required findings of fact are based on demeanor-based credibility.

This issue revolves around whether the Division’s determination of misrepresentations in comparable sales and neighborhood predominant values was a demeanor-based credibility assessment. A fact finder makes a demeanor-based credibility assessment when he or she bases a finding or decision on such factors as “ ‘the expression of [the witness or party’s] countenance, how he sits or stands, whether he is inordinately nervous, his coloration during critical examination, the modulation or pace of his speech and other non-verbal communication.’ ” (Emphasis supplied). The Court of Appeals further elaborated: ³⁹⁵ State courts similarly have held that an agency official may decide a case without hearing the witnesses testify. An exception exists when the agency decision depends necessarily upon a demeanor-based, assessment.

In such cases, it would be difficult for an agency designee to make findings without hearing the testimony. Thus, in Anderson , we held that evidence supporting the agency’s decision “ ‘may be less substantial when an impartial, experienced examiner who has observed the witnesses and lived with the case has drawn conclusions different’ ” than the agency’s conclusions. We stated that an agency should give “appropriate deference” to the ALJ’s demeanor-based findings, because the ALJ is in the unique position to make such judgments. 387 Md. at 200-01 , 874 A.2d 919 (emphasis supplied). At other times on other issues, by contrast, the required findings may properly be made simply by relying on a written record.

In some circumstances, the Division may make findings and issue an order in reliance on the written record, without the Division Chief personally observing the witnesses as they testify. Case law addressing the federal Administrative Procedure Act supports the conclusion that an agency official may make findings and issue an order based on the written record alone. Id. at 197-98 , 874 A.2d 919 (emphasis supplied). Reliance on the written record was deemed to be sufficient in the Morgan case itself.

Demeanor-based credibility assessments would have been of no more than minimal value and, therefore, were not required. A conclusion based on this evidence necessarily would focus on appraisal standards, the accuracy of Morgan and Almony’s appraisals, and the information available to the appraisers at the time of the appraisal. As such, the determination would focus on the experts’ testimony, Hinton’s reports, Ramsay’s reports, Morgan’s testimony about ³⁹⁶ his understanding of appraisal procedures, and, most importantly, Morgan and Almony’s actual appraisal reports. An assessment of the appraisers’ demeanor is of minimal importance in this technical case.

Ordinarily, demeanor has been held to be of little consequences in evaluating the credibility of experts who provide conflicting testimony. Id. at 202 , 874 A.2d 919 (emphasis supplied). The Anderson-Shrieves Deference Rule Only Applies When the ALJ and the Agency Disagree The Anderson-Shrieves Deference Rule is of limited utility. It is a small wrinkle on the substantial evidence test.

It does not apply to an ALJ’s proposed decisions or conclusions of law. It does not apply to an ALJ’s proposed findings of fact that are based on derivative inferences. It does not apply even to the assessment of credibility, when the credibility assessment is not primarily demeanor-based but is based on, as is frequently the case with expert witnesses, technical knowledge or specialized practices that implicate the expertise of the reviewing agency. It does not apply even to demeanor-based credibility findings if the reviewing agency has other substantial evidence supporting its decision to disregard the proposed findings of the ALJ.

In the limited circumstances in which it does apply, it still does not necessarily bind the agency. It simply imposes upon the agency the additional burden of articulating a sound reason for not accepting the demeanor-based fact-finding of the ALJ. The overarching limitation is that the entire AndersonShrieves body of caselaw, by definition, only applies when the proposed findings of the ALJ and the desired findings of the agency are in disagreement with each other. Each of the seven cases that comprise this body of law was a case in which the ALJ proposed to go in one direction and the administrative agency went in a different direction.

Only in the face of such disagreement do questions even arise as to whether the agency has a substantial basis to support its going off on its own. ³⁹⁷ Self-evidently, the Anderson-Shrieves Deference Rule could have no bearing on the case before us. In its Final Order of September 30, 2003, the Board, after reviewing the hearing conducted by the ALJ, expressly adopted the ALJ’s findings as its own. The Board adopts all of the Administrative Law Judge’s Findings of Fact numbers 1-31 as set forth in the Administrative Law Judge’s March 17, 2003, Proposed Decision. The Board also ad,opts the Administrative Law Judge’s additional factual findings set forth in the Discussion section of the Proposed Decision. 2 (Emphasis supplied).

On every finding of fact, the ALJ and the Board were in full and total harmony. The Anderson-Shrieves Deference Rule Does Not Inhibit The Agency’s Discretion to Delegate Adjudication The chimera that we have been laboriously trying to pin down involves something else. The Anderson-Shrieves body of caselaw has, indeed, taken one small subcategory of ALJ fact-finding — demeanor-based credibility assessments — and placed it on a pedestal. Based on the hierarchal distinction between the ALJ’s findings of demeanor-based credibility and the ALJ’s findings of everything else, the possibility that briefly beguiled us was that this favored subcategory of ALJ fact-finding might enjoy not simply preferred status upon review by the delegating agency but might, indeed, be the only category of fact-finding that may be delegated to the ALJ in the first instance.

Our confusion was no more than fleeting. Its unsettling appearance, however, convinces us that we should blaze the trail for others with unmistakable certainty. The favored status of demeanor-based fact-finding has nothing to do with what may be delegated. ³⁹⁸ With respect to the delegation of authority to “conduct a contested case hearing” from an administrative agency to the Office of Administrative Hearings, State Government Article, § 10-205 makes it clear that the grant of adjudicatory authority is plenary. Subsection 10-205(b) provides, in pertinent part: (b) Scope of authority delegated. — An agency may delegate to the Office [of Administrative Hearings] the authority to issue: (1) proposed or final findings of fact; (2) proposed or final conclusions of law; [or] (3) proposed or final findings of fact and conclusions of law.

(Emphasis supplied). See Bragunier Masonry Contractors v. Maryland Commissioner of Labor and Industry, 111 Md.App. at 706, 684 A.2d 6 : Under SG § 10-205(a), a state agency may delegate all or some of its reviewing responsibility to an ALJ. The section is broad enough to allow the agency to determine the extent of the adjudicative responsibility given. See § 10-205(b).

This allows the various agencies enough flexibility to carry out their diverse functions in a logical manner. (Emphasis supplied). What is conferred on the OAH, and ultimately on the ALJ, is not only the authority to engage in every conceivable variety of fact-finding, but even to make proposed conclusions of law. Subsection (d) goes on to provide, in pertinent part: (d) Delegation final; exception. — (1) Except as provided in paragraph (2) of this subsection, an agency’s delegation and transmittal of all or part of a contested case to the Office is final.

(Emphasis supplied). The exercise of discretion to delegate or not to delegate and of what to delegate will not constitute an abuse of discretion under the arbitrary or capricious standard by which courts review the actions of administrative agencies. As ³⁹⁹ Judge Raker explained for the Court of Appeals in Spencer v. Maryland State Board of Pharmacy, 380 Md. 515, 531-32 , 846 A.2d 341 (2004): Applying the legal principles outlined above, we hold that (1) the determination by an agency to refer a case to the OAH is a matter committed to its discretion and that (2) the Board did not abuse that discretion under the arbitrary or capricious standard. First, it is clear that the Board’s refusal to refer the case to the OAH was not a legal conclusion or a factual finding but rather a function of the Board’s discretion.

The discretion is granted to the Board in § 10-205(b) which declares an “agency may delegate to the Office [of Administrative Hearings] the authority” (emphasis added) to hear the case. The word “may” connotes a permissive, discretionary function of the agency when it delegates a case to the OAH. (Emphasis supplied). The scope of what adjudicating authority may be delegated has never been confined.

In Anderson v. Department of Public Safety, 330 Md. at 204 , 623 A.2d 198 , the ALJ went so far as to draft a proposed disposition of the case. In Department v. Shrieves, 100 Md.App. at 285-86 , 641 A.2d 899 , the ALJ, after making 85 findings of fact, concluded with a proposed decision in the case. In Gabaldoni, 141 Md.App. at 270 , 785 A.2d 771 , the ALJ concluded that Dr. Gabaldoni had violated the Medical Practice Act but that a sanction need not be imposed. In Berkshire, 142 Md.App. at 638-39 , 791 A.2d 942 , the ALJ proposed the final disposition of the case.

In Kaydon, 149 Md.App. at 673-78 , 818 A.2d 259 , the ALJ applied the law to his factual findings and proposed a dismissal of all charges. In Bernstein , 167 Md- App. at 741-45, 894 A.2d 621 , the ALJ, and not the Board of Physicians, made a finding of fact with respect to the standard of medical care. In Consumer Protection Division v. Morgan, 387 Md. at 155-56 , 874 A.2d 919 , the ALJ issued a proposed order disposing of the case. ⁴⁰⁰ In not one of these cases was there the faintest suggestion that, once the administrative agency delegated the adjudication to the OAH, the ALJ was not authorized to adjudicate, in plenary fashion, everything that the agency itself would have been empowered to adjudicate. Nor was there any suggestion that the administrative agency had abused its discretion in the initial delegation of adjudicatory authority itself.

On this threshold issue, we hold that for the Board to have delegated to the OAH the task of conducting a hearing was a proper action pursuant to the Administrative Procedure Act. The ALJ might then issue back to the Board both proposed findings of fact and proposed conclusions of law. How Far Do We Look Back? There have been four stages of decision-making in this case: 1) the Proposed Decision of the ALJ; 2) the Final Order of the Board; 8) the Opinion and Order of the Circuit Court for Baltimore County; and 4) the present appeal to this Court.

Perched as we are at Stage 4, on what should our review focus in looking back? In no uncertain terms, our appellate review is of what happened at Stage 2, the final action of the Board, and, except for coincidental glances, of nothing else. On Administrative Review We Look Through the Circuit Court, Not At It Although this appeal, of course, is literally from the decision of the Circuit Court for Baltimore County, it is actually the antecedent decision of the Board of Physicians that we shall review. In Pollard’s Towing, Inc. v. Berman’s Body Frame & Mechanical, Inc., 137 Md.App. 277, 287 , 768 A.2d 131 (2001), we observed: At the outset, let it be clear whose decision is being reviewed and by whom.

The review on the ultimate merits is now being conducted by this Court. We are not reviewing the procedural correctness of the earlier review by the circuit court. We are undertaking our own de novo review of the decision of the administrative agency. ... ⁴⁰¹ The decision of the circuit court, therefore, is before us only in a proforma capacity, as the necessary procedural conduit by which the decision of the administrative agency gets to us for our review. (Emphasis supplied).

As we explained in People’s Counsel v. Country Ridge, 144 Md.App. 580, 591 , 799 A.2d 425 (2002), we are looking not at the circuit court decision but through it. Although the judicial act being appealed to us is literally the June 13, 2001 ruling of the Baltimore County Circuit Court, our review will look not so much at the circuit court action as through it to the December 13, 2000 decision of the Baltimore County Board of Appeals. (Emphasis in original). In Department of Health and Mental Hygiene v. Shrieves, 100 Md.App. at 303-04 , 641 A.2d 899 , Judge Motz wrote to the same effect.

Moreover, it is well recognized in Maryland that, when reviewing administrative decisions, the role of an appellate court is precisely the same as that of the circuit court. See, e.g., Baltimore Lutheran High Sch. Ass’n, Inc. v. Employment Security Admin., 302 Md. 649, 662 , 490 A.2d 701 (1985) (“A reviewing court, be it a circuit court or an appellate court, shall apply the substantial evidence test”). (Emphasis supplied).

See also Tochterman v. Baltimore County, 163 Md.App. 385, 404-05 , 880 A.2d 1118 (2005). And see Consumer Protection v. Morgan, 387 Md. at 160 , 874 A.2d 919 (“When this Court reviews the decision of an administrative agency, we employ the same standards as would the circuit court, and the inquiry is not whether the circuit court erred, but rather whether the administrative agency erred.”); Spencer v. State Board of Pharmacy, 380 Md. 515, 523-24 , 846 A.2d 341 (2004); Board of Physicians v. Bernstein, 167 Md. App. at 750 , 894 A.2d 621 ; McKay v. Department of Public Safety, 150 Md.App. 182, 193 , 819 A.2d 1088 (2003); Anne Arundel County v. Muir, 149 Md.App. 617, 625 , 817 A.2d 938 ⁴⁰² (2003); Stover v. Prince George’s County, 132 Md.App. 373, 380-81 , 752 A.2d 686 (2000). We Review the Agency’s Decision, Not the ALJ’s Decision At the other end of the time continuum, once our review has traveled back as far as the final decision of the Board, our time machine comes to a grinding halt. Except for its possibly peripheral influences on the final agency decision, the hearing before the ALJ does not concern us.

An appellant who wants to obsess about all of the procedural missteps that allegedly were made by an ALJ may as profitably talk to the wall — unless, of course, those mistakes were then perpetuated in the final decision of the agency. It was Judge Motz in the Shrieves opinion, 100 Md.App. at 297 , 641 A.2d 899 , who articulated how finely calibrated our focus of review is on the administrative agency itself. The court below erred in viewing its “job” as “deter-min[ing] if the ALJ had a rational basis for making the decision she did” or if the ALJ’s decision was supported by substantial evidence. The court’s “job” was not to assess the “rationality” of or evidentiary basis for the ALJ’s recommendation; it was to assess the rationality or evidentiary basis of the agency’s ... final order.

Drexel Burnham Lambert, Inc. v. Commodity Futures Trading Comm’n, 850 F.2d 742, 747 (D.C.Cir.1988) (when the agency and an “ALJ disagree on factual inferences to be drawn from the record ... the question to be decided is not whether the agency has ‘erred’ in ‘overruling’ the ALJ’s findings, but whether its own findings are reasonably supported on the entire record ”). (Emphasis supplied). The Board’s Ruling The Board’s first contention is that its decision to deny Dr. Elliott’s application for a reinstatement of his medical license was supported by substantial evidence and was, therefore, unassailable upon judicial review. We fully agree. ⁴⁰³ Under Health Occupations Article, § 14-205(a)(iii), the “Board may ... refuse to ... reinstate an applicant’s license for any of the reasons that are grounds for action under § 14-404.” The ALJ’s proposed conclusions of law were that Dr. Elliott was guilty of actions which would have constituted violations by a licensed physician of § 14-404(a)(l), (3), and (36).

Those subsections, in pertinent part, treat as subject to discipline any licensee, who (1) Fraudulently or deceptively ... attempts to obtain a license ...; (3) Is guilty of ... unprofessional conduct in the practice of medicine; or (36) Willfully makes a false representation when seeking or making application for licensure. Dr. Elliott filed Exceptions to the ALJ’s Proposed Decision and a hearing before the Board was held. In its Final Order of September 30, 2003, the Board held that Dr. Elliott had committed actions that would, for a licensed physician, have been violations of § 14-404(a)(l). It made no findings with respect to § 14-404(a)(3) and (36).

The Board “tend[ed] to agree” with the ALJ that subsections (a)(3) and (36) had been violated but concluded that it was unnecessary to reach those issues. Although the Board tends to agree with the ALJ that Dr. Elliott’s conduct is also “unprofessional conduct in the practice of medicine” as that term is used in Section UJfOJp(a)(3), the Board need not reach this issue in order to decide this case and thus declines to do so. Likewise, though the Board agrees with the ALJ’s discussion of the “good moral character” issue under § 14-307(b), and although the ALJ’s comments indicate strongly that the ALJ meant to find a lack of good moral character, the ALJ made no conclusion of law on this issue, and the Board declines to add this issue at this point, in the circumstances of this case. Similarly, the Board declines to rule on whether the issue of whether false representations were made within the meaning of § Lk-b0h(<L(36).

The Board notes that an ⁴⁰⁴ affirmative conclusion on any or all of these issues would not change the sanction imposed in this particular case. (Emphasis supplied). The following predicate evidence is undisputed. In December of 1999, Dr. Elliott submitted to the Board his Application for Reinstatement of Medical Licensure.

The Board’s reinstatement application form asked the following questions: Since your last registration: B) Has a state licensing or disciplinary board, or a comparable body in the armed services taken an action against your license, including but not limited to limitations of practice, required education, admonishment, reprimand, suspension, or revocation for an act that would be grounds for disciplinary action under Health Occupations Article § 14-404, Annotated Code of Maryland? C) Has an investigation or charge been brought against you by a licensing or disciplinary body or comparable body in the armed forces? L) Have you been named as a defendant in a filing or settlement of a medical malpractice action within the past 5 years? The application form further directed: For each question answered YES, attach detailed explanation and documentation, including health claims, complaints, disciplinary actions, records and file numbers, current status and disposition.

Dr. Elliott answered “No” to all three questions. He did not attach any explanation or documentation with respect to any of those three questions. The issue now before us is whether there was substantial evidence to support the conclusion of the Board that one or more of those answers was deceptively false. ⁴⁰⁵ Substantial Evidence Test In Spencer v. Board of Pharmacy, 380 Md. at 528-30 , 846 A.2d 341 , Judge Raker analyzed State Government Article, § 10 — 222(h), dealing with judicial review of the final decision of administrative agencies in contested cases. Depending on which aspect of an agency’s decision is being reviewed, any of three different standards may come into play.

When an agency makes “conclusions of law” in a contested case, the court, on judicial review, decides the correctness of the agency’s conclusions and may substitute the court’s judgment for that of the agency’s. This established principle of administrative law is exemplified in § 10 — 222(h)(3)(i)— (iv), which permits judicial modification or reversal of agency action that (i) is unconstitutional; (ii) exceeds the agency’s jurisdiction; (iii) results from unlawful procedure; or (iv) is affected by “any other” error of law. In contrast, when an agency is not interpreting law but instead makes a “finding of fact,” we have applied “substantial evidence” review. Substantial evidence review of agency factual findings is embodied in § 10-222(h)(3)(v).

That provision grants a court authority to overrule an agency’s factual finding only when the finding is “unsupported by competent, material, and substantial evidence in light of the entire record as submitted.” According to this more deferential standard of review, judicial review of agency factual findings is limited to ascertaining whether a reasoning mind could have reached the same factual conclusions reached by the agency on the record before it. Finally, there are circumstances when an agency acts neither as a finder of fact nor as an interpreter of law but rather in a “discretionary” capacity. Logically, the courts owe a higher level of deference to functions specifically committed to the agency’s discretion than they do to an agency’s legal conclusions or factual findings. Therefore, the discretionary functions of the agency must be reviewed under a standard more deferential than either the de novo review afforded an agency’s legal conclusions or the substantial evidence review afforded an agency’s factual find ⁴⁰⁶ ings.

In this regard, the standard set forth in § 10-222(h)(3)(vi), review of “arbitrary or capricious” agency actions, provides guidance for the courts as they seek to apply the correct standard of review to discretionary junctions of the agency. (Emphasis supplied). See also Maryland Transportation Authority v. King, 369 Md. 274, 290-91 , 799 A.2d 1246 (2002); 1 Mehrling v. Nationwide Insurance Co., 371 Md. 40, 52-54 , 806 A.2d 662 (2002). It is the substantial evidence test for administrative agency fact-finding that concerns us in this case.

In Board of Physician Quality Assurance v. Banks, 354 Md. 59, 68 , 729 A.2d 376 (1999), the Court of Appeals zeroed in on the substantial evidence standard: [A] reviewing court decides “whether a reasoning mind reasonably could have reached the factual conclusion the agency reached.” A reviewing court should defer to the agency’s fact-finding and drawing of inferences if they are ⁴⁰⁷ supported by the record. A reviewing court must review the agency’s decision in the light most favorable to it; ... the agency’s decision is prima facie correct and presumed valid, and ... it is the agency’s province to resolve conflicting evidence and to draw inferences from that evidence. (Emphasis supplied). In Bulluck v. Pelham Wood Apts., 283 Md. 505, 513 , 390 A.2d 1119 (1978), Judge Eldridge emphasized the judicial deference that is due to the administrative agency.

In applying the substantial evidence test, we have emphasized that a “court should [not] substitute its judgment for the expertise of those persons who constitute the administrative agency from which the appeal is taken.” We also must review the agency’s decision in the light most favorable to the agency, since “decisions of administrative agencies are prima facie correct” and “carry with them the presumption of validity.” [N]ot only is it the province of the agency to resolve conflicting evidence, but where inconsistent inferences from the same evidence can be drawn,, it is for the agency to draw the inferences. (Emphasis supplied). Consumer Protection Division v. Morgan, 387 Md. at 160 , 874 A.2d 919 , stressed that the substantial evidence standard applies not only to an agency’s findings of fact but also to an agency’s findings on mixed questions of law and fact. We apply “substantial evidence” review to agency findings of fact, overruling factual findings only when they are “unsupported by competent, material, and substantial evidence in light of the entire record as submitted.” The standard for substantial evidence review is “whether a reasoning mind reasonably could have reached the factual conclusion the agency reached.” We also apply the substantial evidence standard when reviewing mixed questions ⁴⁰⁸ of law and fact, issues of whether the agency applied the law correctly to the facts.

(Emphasis supplied). In Board of Physicians v. Bernstein, 167 Md.App. at 751 , 894 A.2d 621 , this Court noted the “considerable weight” that judicial review should afford an agency’s application of the statutory and regulatory provisions that are regularly administered by the agency. When a reviewing court applies the substantial evidence test, it decides “whether a reasoning mind reasonably could have reached the factual conclusion the agency reached.” “A reviewing court should defer to the agency’s fact-finding and drawing of inferences if they are supported by the record.” The agency’s decision must be reviewed in the light most favorable to it; because it is the agency’s province to resolve conflicting evidence and draw inferences from that evidence, its decision carries a presumption of correctness and validity. We give “considerable weight” to an agency’s “interpretations and applications of statutory or regulatory provisions” that are administered by the agency.

(Emphasis supplied). The Evidence Before the Board Was Bountiful In its Final Order of September 30, 2003, the Board pointed out that it had “consider[ed] the entire record in this case.” It expressly adopted all 31 of the ALJ’s findings of fact as set forth in the ALJ’s Proposed Decision of March 17, 2003. Turning to the “Discussion” section of the ALJ’s Proposed Decision, the Board also adopted the ALJ’s additional “evaluation of the evidence therein, including the ALJ’s credibility findings, as well as the ALJ’s further proposed factual findings.” The evidence revealed that Dr. Elliott had had professional difficulties with respect to his practice of medicine in Illinois, Oregon, Massachusetts, and Maryland. It further revealed ⁴⁰⁹ that he had been sued for medical malpractice on three occasions. 1.

Illinois The express findings of the Board with respect to Dr. Elliott’s difficulties in Illinois were as follows: In July 1992, the Illinois Department of Professional Regulation (“IDPR”) initiated an investigation of Dr. Elliott and filed a complaint against him charging that Dr. Elliott employed and supervised persons who were not licensed to perform certain medical procedures in Illinois. On February 2, 1993, the IDPR filed an Amended Complaint against Dr. Elliott, and added additional charges against him. On August 16, 1993, Dr. Elliott entered into a Stipulation and Recommendation for Settlement with IDPR, in which he admitted allowing unlicensed individuals to function in the role of surgical assistants during the conduct of hair restoration surgeries. On November 12, 1993, the IDPR issued a follow-up Order dated November 12, 1993, which required that Dr. Elliott undertake 20 hours of continuing education dealing with topics of minor surgical procedures and the use of ancillary medical personnel.

That Order further required Dr. Elliott to cease and desist from permitting persons other than duly licensed personnel to perform certain medical procedures under his