Section 17.35 - Sanctions(a) The presiding officer may sanction a person, including any party or counsel for:(1) Failing to comply with an order, subpoena, rule, or procedure governing the proceeding;(2) Failing to prosecute or defend an action; or(3) Engaging in other misconduct that interferes with the speedy, orderly, or fair conduct of the hearing.(b) Any such sanction, including, but not limited to, those listed in paragraphs (c), (d), and (e) of this section, shall reasonably relate to the severity and nature of the failure or misconduct.(c) When a party fails to comply with a discovery order, including discovery and subpoena provisions of this part, the presiding officer may:(1) Draw an inference in favor of the requesting party with regard to the information sought;(2) Prohibit the party failing to comply with such order from introducing evidence concerning, or otherwise relying upon, testimony relating to the information sought; and(3) Strike any part of the pleadings or other submissions of the party failing to comply with such request.(d) The presiding officer may exclude from participation in the hearing any legal counsel, party, or witness who refuses to obey an order of the presiding officer. In the case of repeated refusal, the presiding officer may grant judgment to the opposing party.(e) If a party fails to prosecute or defend an action under this part after service of a notice of hearing, the presiding officer may dismiss the action or may issue an initial decision imposing penalties and assessments.(f) The presiding officer may refuse to consider any motion, request, response, brief, or other document that is not filed in a timely fashion or in compliance with the rules of this part.(g) Sanctions imposed under this section may be the subject of an interlocutory appeal as allowed in § 17.18(b) , provided that no such appeal will stay or delay a proceeding.