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Matched Legal Cases: ['ART 31', 'ART 31', 'ART 31', 'ART 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§ 31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31', '§31']

49 C.F.R. PART 31—PROGRAM FRAUD CIVIL REMEDIES
United States> Code of Federal Regulations> Title 49 - Transportation> Subtitle A--Office of the Secretary of Transportation> PART 31--PROGRAM FRAUD CIVIL REMEDIES> PART 31—PROGRAM FRAUD CIVIL REMEDIES
PART 31—PROGRAM FRAUD CIVIL REMEDIES
§ 31.1 Basis and purpose.
§ 31.4 Investigation.
§ 31.8 Service of complaint.
§ 31.9 Answer.
§ 31.11 Referral of complaint and answer to the ALJ.
§ 31.12 Notice of hearing.
§ 31.13 Parties to the hearing.
§ 31.14 Separation of functions.
§ 31.15 Ex parte contacts.
§ 31.16 Disqualification of reviewing official or ALJ.
§ 31.17 Rights of parties.
§ 31.18 Authority of the ALJ.
§ 31.19 Prehearing conferences.
§ 31.20 Disclosure of documents.
§ 31.22 Exchange of witness lists, statements, and exhibits.
§ 31.23 Subpoenas for attendance at hearing.
§ 31.25 Fees.
§ 31.26 Filing, form, and service of papers.
§ 31.27 Computation of time.
§ 31.28 Motions.
§ 31.29 Sanctions.
§ 31.30 The hearing and burden of proof.
§ 31.32 Location of hearing.
§ 31.33 Witnesses.
§ 31.34 Evidence.
§ 31.35 The record.
§ 31.36 Post-hearing briefs.
§ 31.39 Appeal to authority head.
§ 31.41 Stay pending appeal.
§ 31.42 Judicial review.
§ 31.43 Collection of civil penalties and assessments.
§ 31.44 Right to administrative offset.
§ 31.45 Deposit in Treasury of United States.
§ 31.47 Limitations.
Authority: 31 U.S.C. 3801–3812.
Source: 53 FR 881, Jan. 14, 1988, unless otherwise noted.
(a) Basis. This part implements the Program Fraud Civil Remedies Act of 1986, Public Law No. 99–509, sections 6101–6104, 100 Stat. 1874 (October 21, 1986), to be codified at 31 U.S.C. 3801–3812. 31 U.S.C. 3809 of the statute requires each authority head to promulgate regulations necessary to implement the provisions of the statute.
(b) Purpose. This part (1) establishes administrative procedures for imposing civil penalties and assessments against persons who make, submit, or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to the authority or to certain others, and (2) specifies the hearing and appeal rights of persons subject to allegations of liability for such penalties and assessments.
Authority means the Department of Transportation.
Authority head means the Assistant Secretary or Deputy Assistant Secretary for Budget and Programs, Department of Transportation.
Complaint means the administrative complaint served by the reviewing official on the defendant under §31.7.
Defendant means any person alleged in a complaint under §31.7 to be liable for a civil penalty or assessment under §31.3.
Initial decision means the written decision of the ALJ required by §§31.10 or 31.37 and includes a revised initial decision issued following a remand or a motion for reconsideration.
Investigating official means the Inspector General of the Department of Transportation or an officer or employee of the Office of Inspector General designated by the Inspector General and serving in a position for which the rate of basic pay is not less than the minimum rate of basic pay for grade GS–16 under the General Schedule.
Representative means an attorney who is a member in good standing of the bar of any State, Territory, or possession of the United States or of the District of Columbia or the Commonwealth of Puerto Rico. This definition is not intended to foreclose pro se appearances. An individual may appear for himself or herself, and a corporation or other entity may appear by an owner, officer, or employee of the corporation or entity.
Reviewing official means the Deputy General Counsel of the Department of Transportation, or other officer or employee of the Department who is designated by the Deputy General Counsel and eligible under 31 U.S.C. 3801(a)(8).
(1) A contract with, or bid or proposal for a contract with; or
(iv) Is for payment for the provision of property or services which the person has not provided as claimed, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $5,500 for each such claim.1
1 As adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101–140), as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104–143, section 31001).
(ii) Contains, or is accompanied by, an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $5,500.2
2 As adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101–140), as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104–143, section 31001).
(a) If, based on the report of the investigating official under §31.4(b), the reviewing official determines that there is adequate evidence to believe that a person is liable under §31.3 of this part, the reviewing official shall transmit to the Attorney General a written notice of the reviewing official's intention to issue a complaint under §31.7.
(4) An estimate of the amount of money or the value of property, services, or other benefits requested or demanded in violation of §31.3 of this part;
(a) The reviewing official may issue a complaint under §31.7 only if—
(2) In the case of allegations of liability under §31.3(a) with respect to a claim, the reviewing official determines that, with respect to such claim or a group of related claims submitted at the same time such claim is submitted (as defined in paragraph (b) of this section), the amount of money or the value of property or services demanded or requested in violation of §31.3(a) does not exceed $150,000.
(a) On or after the date the Department of Justice approves the issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the reviewing official may serve a complaint on the defendant, as provided in §31.8.
(4) That failure to file an answer within 30 days of service of the complaint will result in the imposition of the maximum amount of penalties and assessments without right to appeal, as provided in §31.10.
(a) The defendant may request a hearing by serving an answer on the reviewing official within 30 days of service of the complaint. Service of an answer shall be made by delivering a copy to the reviewing official or by placing a copy in the United States mail, postage prepaid and addressed to the reviewing official. Service of an answer is complete upon such delivery or mailing. An answer shall be deemed to be a request for hearing.
(c) If the defendant is unable to file an answer meeting the requirements of paragraph (b) of this section within the time provided, the defendant may, before the expiration of 30 days from service of the complaint, serve on the reviewing official a general answer denying liability and requesting a hearing, and a request for an extension of time within which to serve an answer meeting the requirements of paragraph (b) of this section. The reviewing official shall file promptly the complaint, the general answer denying liability, and the request for an extension of time as provided in §31.11. For good cause shown, the ALJ may grant the defendant up to 30 additional days from the original due date within which to serve an answer meeting the requirements of paragraph (b) of this section.
(a) If the defendant does not answer within the time prescribed in §31.9(a), the reviewing official may refer the complaint to an ALJ by filing the complaint and a statement that defendant has failed to answer on time.
(b) Upon the referral of the complaint, the ALJ shall promptly serve on defendant in the manner prescribed in §31.8, a notice that an initial decision will be issued under this section.
(c) In addition, the ALJ shall assume the facts alleged in the complaint to be true, and, if such facts establish liability under §31.3, the ALJ shall issue an initial decision imposing the maximum amount of penalties and assessments allowed under the statute.
(g) A decision of the ALJ denying a defendant's motion under paragraph (e) of this section is not subject to reconsideration under §31.38.
(h) The defendant may appeal to the authority head the decision denying a motion to reopen by filing a notice of appeal in accordance with §31.26 within 15 days after the ALJ denies the motion. The timely filing of a notice of appeal shall stay the initial decision until the authority head decides the issue.
Upon receipt of an answer, the reviewing official shall refer the matter to an ALJ by filing the complaint and answer in accordance with §31.26.
(a) When the ALJ receives the complaint and answer, the ALJ shall promptly serve a notice of hearing upon the defendant in the manner prescribed by §31.8. At the time, the ALJ shall send a copy of such notice to the representative for the Government and shall file a copy with the Docket Clerk.
(b) A party may file a motion for disqualification of a reviewing official or an ALJ. Such motion shall be accompanied by an affidavit alleging personal bias or other reason for disqualification.
(e)(1) If the ALJ determines that a reviewing official is disqualified, the ALJ shall dismiss the complaint without prejudice.
(a) Upon written request to the reviewing official, the defendant may review any relevant and material documents, transcripts, records, and other materials that relate to the allegations set out in the complaint and upon which the findings and conclusions of the investigating official under §31.4(b) are based, unless such documents are subject to a privilege under Federal law. Upon payment of fees for duplication, the defendant may obtain copies of such documents.
(c) The notice sent to the Attorney General from the reviewing official as described in §31.5 is not discoverable under any circumstances.
(d) The defendant may file a motion to compel disclosure of the documents subject to the provisions of this section. Such a motion may only be filed following the serving of an answer pursuant to §31.9.
(b) For the purpose of this section and §§31.22 and 31.23, the term “documents” includes information, documents, reports, answers, records, accounts, papers, and other data and documentary evidence. Nothing contained herein shall be interpreted to require the creation of a document.
(d) Motions for discovery. (1) A party seeking discovery may file a motion. Such a motion shall be accompanied by a copy of the request for production of documents, request for admissions, or interrogatories, or in the case of depositions, a summary of the scope of the proposed deposition.
(2) Within ten days of service, a party may file an opposition to the motion and/or a motion for protective order as provided in §31.24.
(5) The ALJ may grant discovery subject to a protective order under §31.24.
(2) The party seeking to depose shall serve the subpoena in the manner prescribed in §31.8.
(a) At least 15 days before the hearing or at such other time as may be ordered by the ALJ, the parties shall exchange witness lists, copies of prior statements of proposed witnesses, and copies of proposed hearing exhibits, including copies of any written statements that the party intends to offer in lieu of live testimony in accordance with §31.33(b). At the time the above documents are exchanged, any party that intends to rely on the transcript of deposition testimony in lieu of live testimony at the hearing, if permitted by the ALJ, shall provide each party with a copy of the specific pages of the transcript it intends to introduce into evidence.
(b) If a party objects, the ALJ shall not admit into evidence the testimony of any witness whose name does not appear on the witness list of any exhibit not provided to the opposing party as provided above unless the ALJ finds good cause for the failure or that there is no prejudice to the objecting party.
(c) A party seeking a subpoena shall file a written request therefor not less than 15 days before the date fixed for the hearing unless otherwise allowed by the ALJ for good cause shown. Such request shall be accompanied by a proposed subpoena, which shall specify and documents to be produced and shall designate the witnesses and describe the address and location thereof with sufficient particularity to permit such witnesses to be found.
(e) The party seeking the subpoena shall serve it in the manner prescribed in §31.8. A subpoena on a party or upon an individual under the control of party may be served by first class mail.
(f) A party or the individual to whom the subpoena is directed may file a motion to quash the subpoena within ten days after service or on or before the time specified in the subpoena for compliance if it is less than ten days after service. If the ALJ has not acted on such a motion by the return date, such date shall be suspended pending the ALJ's final action on the motion.
(a) Filing and form. (1) A party filing any document under this part shall submit (i) the original and two copies to the Docket Clerk, Documentary Services Division (C–55), room 4107, Department of Transportation, 400 7th Street SW., Washington, DC 20590; and (ii) two copies simultaneously to the ALJ or, if on appeal, to the authority head. The requirements of this paragraph apply to all filings under this part, regardless of whether there is a cross-reference to §31.26.
(2) Every pleading and paper filed in the proceeding shall contain a caption setting forth the title of the action, the case number assigned by the Docket Clerk, and a designation of the paper (e.g., motion to quash subpoena).
(3) Every pleading and paper shall be signed by, and shall contain the address and telephone nunber of, the party or the person on whose behalf the paper was filed, or his or her representative.
(b) Service. A party filing a document shall, at the time of filing, serve a copy of such document on every other party. Service upon any party of any document other than those required to be served as prescribed in §31.8 shall be made by delivering a copy, or by placing a copy of the document in the United States mail, postage prepaid and addressed, to the party's last known address. When a party is represented by a representative, service shall be made upon such representative in lieu of the actual party.
(a) Any application to the ALJ for an order or ruling shall be by motion. Motions shall state the relief sought, the authority relied upon, and the facts alleged, and shall be filed and served on all other parties.
(f) Except as provided by §§31.21(e)(3) and 31.23(f), which concern subpoenas, the filing or pendency of a motion shall not automatically alter or extend a deadline or return date.
(b) Sanctions include but are not limited to those specifically set forth in paragraph (c), (d), and (e) of this section. Any such sanction shall reasonably relate to the severity and nature of the failure or misconduct.
(d) If a party fails to prosecute or defend an action under this part commenced by service of a notice of hearing, the ALJ may dismiss the action or may issue an initial decision imposition penalties and assessments.
(a) The ALJ shall conduct a hearing on the record in order to determine whether the defendant is liable for a civil penalty or assessment under §31.3 and, if so, the appropriate amount of any such civil penalty or assessment considering any aggravating or mitigating factors.
(b) The authority shall prove defendent's liability and any aggravating factors by a preponderance of the evidence.
(b) Each party shall have the opportunity to present written and oral argument with respect to the location of the hearing.
(b) At the discretion of the ALJ, testimony may be admitted in the form of a written statement or deposition. Any such written statement must be provided to all other parties along with the last known address of such witness, in a manner which allows sufficient time for other parties to subpoena such witness for cross-examination at the hearing. Prior written statements of witnesses proposed to testify at the hearing and deposition transcripts shall be exchanged as provided in §31.22(a).
(2) In the case of a party that is not an individual, an officer or employee of the party (i) appearing for the entity pro se or (ii) designated by the party's representative; or
(h) All documents and other evidence offered or taken for the record shall be open to examination by all parties, unless otherwise ordered by the ALJ pursuant to §31.24.
(c) The record may be inspected at the offices of the Docket Clerk (see §31.26(a)(1) for address) and copied (upon payment of a reasonable fee) by anyone, unless otherwise ordered by the ALJ pursuant to §31.24.
The ALJ may require the parties to file post-hearing briefs. In any event, any party may file a post-hearing brief. The ALJ shall fix the time for filing such briefs. Such briefs may be accompanied by proposed findings of fact and conclusions of law. The ALJ may permit the parties to file reply briefs.
(1) Whether the claims or statements identified in the complaint, or any portions thereof, violate §31.3;
(2) If the person is liable for penalties or assessments, the appropriate amount of any such penalties or assessments considering any mitigating or aggravating factors that he or she finds in the case, such as those described in §31.31.
(f) If the ALJ denies a motion for reconsideration, the initial decision shall constitute the final decision of the authority head and shall be final and binding on the parties 30 days after the ALJ denies the motion, unless the initial decision is timely appealed to the authority head in accordance with §31.39.
(g) If the ALJ issues a revised initial decision, that decision shall constitute the final decision of the authority head and shall be final and binding on the parties 30 days after it is issued, unless it is timely appealed to the authority head in accordance with §31.39.
(a) Any defendant who has served a timely answer and who is determined in an initial decision to be liable for a civil penalty or assessment may appeal such decision to the authority head by filing a notice of appeal in accordance with this section and §31.26.
(b)(1) A notice of appeal may be filed at any time within 30 days after the ALJ issues an initial decision. However, if another party files a motion for reconsideration under §31.38, consideration of the appeal shall be stayed automatically pending resolution of the motion for reconsideration.
(c) If the defendant files a timely notice of appeal and the time for filing motions for reconsideration under §31.38 has expired, the Docket Clerk shall forward two copies of the notice of appeal to the authority head, and shall forward or make available the record of the proceeding to the authority head.
(k) The authority head shall promptly serve each party to the appeal with a copy of the decision of the authority head and with a statement describing the right of any person determined to be liable for a penalty or assessment to seek judicial review.
(l) Unless a petition for review is filed as provided in 31 U.S.C. 3805 after a defendant has exhausted all administrative remedies under this part and within 60 days after the date on which the authority head serves the defendant with a copy of the authority head's decision, a determination that a defendant is liable under §31.3 is final and is not subject to judicial review.
The amount of any penalty or assessment which has become final, or for which a judgment has been entered under §31.42 or §31.43, or any amount agreed upon in a compromise or settlement under §31.46, may be collected by administrative offset under 31 U.S.C. 3716, except that an administrative offset may not be made under this subsection against a refund of an overpayment of Federal taxes, then or later owing by the United States to the defendant.
(c) The authority head has exclusive authority to compromise or settle a case under this part at any time after the date on which the ALJ issues an initial decision, except during the pendency of any review under §31.42 or during the pendency of any action to collect penalties and assessments under §31.43.
(d) The Attorney General has exclusive authority to compromise or settle a case under this part during the pendency of any review under §31.42 or of any action to recover penalties and assessments under 31 U.S.C. 3806.
(a) The notice of hearing with respect to a claim or statement must be served in the manner specified in §31.8 within 6 years after the date on which such claim or statement is made.
(b) If the defendant fails to serve a timely answer, service of a notice under §31.10(b) shall be deemed a notice of hearing for purposes of this section.