Source: https://www.federalregister.gov/documents/2008/09/08/E8-20761/revision-of-hearing-procedures
Timestamp: 2017-09-20 22:34:13
Document Index: 462539256

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Federal Register :: Revision of Hearing Procedures
73 FR 52111
52111-52127 (17 pages)
Docket No. FR-5084-P-01
2501-AD24
E8-20761
A. Amendments to Subpart A—Hearings Before Hearing Officers
B. Amendments to Subpart B—Hearings Pursuant to the Administrative Procedure Act
List of Subjects for 24 CFR Part 26
https://www.federalregister.gov/d/E8-20761 https://www.federalregister.gov/d/E8-20761
Start Preamble Start Printed Page 52112
This proposed rule would amend the hearing procedures before hearing officers who have the responsibility for adjudicating those matters that do not raise issues under the Administrative Procedure Act (APA). This proposed rule would also amend the hearing procedures before Administrative Law Judges (ALJs) who have the responsibility for adjudicating those matters that are subject to the requirements of the APA. Specifically, the proposed rule would modify pleading and motion requirements of the hearing procedures. It would also amend the discovery and deposition requirements to clarify the hearing officers' discovery procedures and to specifically allow for written interrogatories, in addition to depositions, requests for production of documents, and requests for admissions. A new provision allowing for written interrogatories would be added to the hearing procedures, and the proposed rule would also modify the procedures for the review of hearing officers' determinations. Additionally, the proposed rule would amend the discovery, appeal, and judicial review procedures related to hearings that are conducted pursuant to the APA. The proposed changes to the regulations would better reflect current practice and would conform the regulations more closely to statutory requirements.
Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the Federal Information Relay Service at 800-877-8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov.
Dane Narode, Acting Associate General Counsel, Office of Program Enforcement, Administrative Proceedings Division, Department of Housing and Urban Development, 1250 Maryland Avenue, Suite 200, Washington, DC 20024-0500; telephone 202-708-2350 (this is not a toll-free number); e-mail address: Dane.M.Narode@hud.gov. Hearing- or speech-impaired individuals may access the voice telephone number listed above by calling the toll-free Federal Information Relay Service during working hours at 800-877-8339.
HUD's regulations implementing rules of procedure for hearings are located at 24 CFR part 26. Subpart A of part 26 applies to those hearing procedures before hearing officers who have the responsibility for adjudicating those matters that do not raise issues under the APA. HUD utilizes these rules of procedure with respect to determinations by the Multifamily Participation Review Committee, to: (1) Hearings conducted pursuant to referrals by debarring or suspending officials under 2 CFR part 2424; (2) hearings conducted pursuant to 24 CFR 17.150-17.170; and (3) other administrative disputes. Subpart B of part 26 applies to those hearing procedures before ALJs who have the responsibility for adjudicating those matters that are subject to the requirements of the APA.
This proposed rule would amend HUD's hearing procedures to reflect current practice and to more closely conform to applicable statutes; the hearing provisions of the APA; and parts 25, 28, and 30 of this title. Additionally, the sections would be reordered to better track the normal course of a hearing conducted under this part. The sections would be revised as follows:
Current part 26
Proposed part 26
26.9 26.12
26.10 26.13
26.11 26.14
26.12 26.15
26.13 26.16
26.14 26.9
26.15 26.10
26.16 26.11
26.18 26.20
26.20 26.22
26.21 26.17
26.25 26.26
26.29 26.32
26.30 26.33
26.31 26.35
26.32 26.36
26.33 26.37
Start Printed Page 52113
26.34 26.31
26.35 26.30
26.36 26.34
26.37 26.38
26.38 26.40
26.39 26.41
26.40 26.39
26.41 26.42
26.42 26.43
26.43 26.44
26.44 26.45
26.46 26.47
26.47 26.49
26.49 26.50
26.50 26.52
26.51 26.53
26.52 26.54
26.53 26.55
26.54 26.56
This section of the preamble discusses the proposed regulatory changes.
Subpart A of part 26 contains the procedures for hearings before hearing officers. This proposed rule would amend subpart A to make the following revisions:
In § 26.1, the proposed rule would remove references to hearings conducted in matters arising under 24 CFR part 25, since those hearings would now be conducted in accordance with the provisions of subpart B of this part. A new paragraph (10) would be added to § 26.2 to clarify that the hearing officer shall have the authority necessary to carry out the duties of the hearing officer conducting hearings under this subpart.
The title of the newly designated § 26.4 would be changed to “Sanctions” to more clearly indicate the section contents and would be revised to include more specific guidance on the imposition of sanctions. For clarity and ease of use, § 26.5 would be divided into several paragraphs. Section 26.6 would be clarified to state that the attorneys within the Office of General Counsel will serve as the Department's representatives.
Newly designated § 26.9 would be divided into several paragraphs and minor changes would be made to clarify the form and filing requirements. Additionally, redesignated § 26.10 would be revised to update the methods and clarify the provisions concerning service. Newly designated § 26.11 would be revised to more closely track the similar provisions in subpart B.
The newly designated § 26.13 would be amended to provide the hearing officer with additional flexibility to designate a time period within which a complaint must be served and would be revised to clarify that the complaint must set forth both the factual and legal grounds for the action.
Newly designated § 26.14 would be broken into sections for clarity. Redesignated § 26.15 would clarify that Respondents may amend without leave under the provisions of amendment by right in paragraph (a).
The newly designated § 26.16 would be amended to state that, whenever possible, requests for action by the hearing officer should be made by motion. This revised section would also revise the name of the response to the motion for clarity and would extend the time period for response to 10 days. Additionally, this revised section would more clearly provide for motions to extend deadlines, would allow for the submission of proposed orders with written motions, would clarify the provisions concerning extensions of time, and would specifically provide for motions for summary judgment.
The discovery provisions in redesignated §§ 26.18-26.22 would be revised to more closely track the provisions of the Federal Rules of Civil Procedure, which have always been used as guidance in the conduct of hearings under this part. Specifically, the redesignated § 26.18 would revise and expand the discovery provisions to allow the use of written interrogatories, in addition to depositions, requests for production of documents, and requests for admissions. The newly designated §§ 26.19 and 26.20 would be revised to incorporate more definite requirements for requesting the production of documents and for depositions and objections to depositions. A new § 26.21 would be added to allow for a limited number of interrogatories in discovery. The redesignated § 26.22 would be revised to clarify the procedure for objections to admissions of facts and documents, and the title of that section would be changed to “Requests for admissions” to more clearly indicate the section contents.
The newly designated § 26.24 would be revised to encourage the parties to enter into stipulations whenever possible. Redesignated § 26.25 would clarify: (1) That the hearing officer's determination and order is final unless a party timely appeals it in accordance with redesignated § 26.26, and (2) would require the determination to provide information on such review, if any. The redesignated § 26.26 would modify the provisions regarding Secretarial review of the determinations of hearing officers by specifically providing that the Debarring Official shall have authority to review determinations in suspension and debarment proceedings, not the Secretary, by incorporating more detailed requirements for the briefs both in support of and in opposition to the appeal and by providing for the Secretary's discretion to extend deadlines. Furthermore, redesignated § 26.26 would include additional provisions about evidence in the record and ex parte communications, and combine and expand upon provisions concerning the final, written determination.
Redesignated § 26.27 would be broken down into sections, for clarity.
Subpart B of part 26 contains the procedures for hearings conducted on the record pursuant to the APA. This proposed rule would amend subpart B to make the following revisions:
The redesignated § 26.29 will include a definition of “Respondent” in the regulations and would modify the title of the docket clerk.
A new subheading titled “Administrative Law Judge” would be inserted before the newly designated § 26.32. The newly designated § 26.32 would be revised to redesignate paragraph (n) as (o) and to include a new paragraph (n) clarifying the ALJ's authority to extend deadlines. Minor clarifications to the specific language of the section would be made to the new §§ 26.34 and 26.35.
A new subheading titled “Parties” would be inserted before the redesignated § 26.36.
Redesignated § 26.38 would require the complaint to be filed with the Office of Administrative Law Judges upon issuance and would require the Respondent's response to be filed with the same office, with a copy served upon the Department in accordance with the procedures set forth in the complaint.
Redesignated § 26.40 would be revised to specifically provide for motions for summary judgment, would be revised to extend the time period for response to a motion to 10 days, and would more clearly provide for motions for time extensions. The newly designated § 26.42 would be amended to include more specific provisions for conduct of discovery under this subpart. As a result, the discovery procedures of subpart B will substantially conform to those of subpart A, and parties will be able to understand all applicable discovery procedures without having to reference the Federal Rules of Civil Start Printed Page 52114Procedure. Additionally, § 26.42 would provide that in discovery in Program Fraud Civil Remedies Act (PFCRA) actions, the defendant may review documents that relate to the allegations set out in the complaint.
The redesignated § 26.44 would be divided into additional paragraphs for clarity. The newly designated § 26.45 would be amended to clarify the commencement dates and location of the hearing in PFCRA matters. Redesignated § 26.47 would be revised to provide additional guidance and clarity.
Section 26.49 would be amended to require that the hearing be recorded by a HUD-designated reporter and that the parties may obtain copies of the transcript.
Section 26.50(a) would clarify that the initial decision of the ALJ does not become effective unless it becomes final agency action on its own under § 26.50(c) or 26.52(l) or if it is incorporated into the final agency action by the Secretary's decision under § 26.52(l). Redesignated § 26.52 would be amended to provide that all parties may request Secretarial review of determinations in PFCRA matters. Redesignated § 26.52 would also be amended to incorporate more detailed requirements for the briefs both in support of and in opposition to the appeal, to provide for the discretion to extend deadlines, and to combine and expand upon provisions concerning the final written decision.
A new § 26.51 would establish procedures for seeking interlocutory Secretarial review of the rulings of an ALJ by motion for certification or by petition to the Secretary.
Redesignated § 26.54 would be revised to eliminate the prohibition that the Government cannot seek judicial review of an adverse determination in PFCRA matters. The revision would bring the Government's right to review into conformity with that in non-PFCRA matters.
With respect to enforcement actions undertaken pursuant to the procedures provided in this proposed rule, HUD is cognizant that section 222 of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121) (SBREFA) requires the Small Business and Agriculture Regulatory Enforcement Ombudsman to “work with each agency with regulatory authority over small businesses to ensure that small business concerns that receive or are subject to an audit, on-site inspection, compliance assistance effort, or other enforcement related communication or contact by agency personnel are provided with a means to comment on the enforcement activity conducted by this personnel.” To implement this statutory provision, the Small Business Administration has requested that federal agencies include the following language on agency publications and notices that are provided to small business concerns at the time the enforcement action is undertaken. The language is as follows:
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This proposed rule would clarify pleading, discovery, and motion requirements that apply to hearings before HUD hearing officers and ALJs, respectively, by codifying current practice and by eliminating the need for parties to refer to outside sources, such as the Federal Rules of Civil Procedure, for routine requirements. Procedures that apply to parties in matters adjudicated in such hearings will not change significantly as a result of this rule, whether or not parties are small entities. These revisions impose no significant economic impact on a substantial number of small entities. Therefore, the undersigned certifies that this rule will not have a significant impact on a substantial number of small entities.
Notwithstanding HUD's determination that this rule will not have a significant economic impact on a substantial number of small entities, HUD specifically invites comments regarding less burdensome alternatives to this rule that will meet HUD's program responsibilities.
This proposed rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this proposed rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1531-1538) establishes requirements for federal agencies to assess the effects of their regulatory actions on state, local, and tribal governments and the private sector. This proposed rule would not impose any federal mandates on any state, local, or tribal government or the private sector within the meaning of UMRA.
Accordingly, for the reasons discussed in the preamble, HUD proposes to revise 24 CFR part 26 to read as follows:
Start Part Start Printed Page 52115
Hearing officer, powers, and duties.
Respondent's representative.
Form and filing requirements.
Request for production of documents.
Public nature and timing of hearings; transcripts.
Hearing officer's determination and order.
Review of determination of hearing officers.
Interlocutory rulings.
Powers and duties of the Administrative Law Judge (ALJ).
Disqualification of ALJ.
(c) If a party refuses or fails to comply with an order of the hearing officer, Start Printed Page 52116including an order compelling discovery, the hearing officer may enter any appropriate order necessary to the disposition of the hearing including a determination against the noncomplying party, including but not limited to, the following:
(d) If the hearing officer does not withdraw, a written statement of his or her reasons shall be incorporated in the record and the hearing shall proceed, unless the decision is appealed in accordance with the procedures set forth in § 26.27.
Attorneys shall conform to the standards of professional and ethical conduct required of practitioners in the courts of the United States and by the bars of which the attorneys are members. Any attorney may be prohibited by the hearing officer from representing a party if the attorney is not qualified under § 26.7 or if such action is necessary to maintain order in or the integrity of the pending proceeding.
(1) Requests for hearings shall be filed with the Office of General Counsel's Docket Clerk, Department of Housing and Urban Development, 451 Seventh Street, SW., Washington, DC 20410. The OGC Docket Clerk shall assign the docket number and forward the case to HUD's Office of Appeals.
(a) Generally. Computation of any period of time prescribed or allowed by this part shall begin with the first business day following the day on which the act, event, development, or default initiating the period of time occurred. When the last day of the period computed is a Saturday, Sunday, national holiday, or other day on which Start Printed Page 52117the Department of Housing and Urban Development is closed, the period shall run until the end of the next following business day. When any prescribed or allowed period of time is 7 days or less, each of the Saturdays, Sundays, and national holidays shall be excluded from the computation of the prescribed or allowed period.
(d) Extensions of time periods. Except where mandated by statute, the hearing officer (or in the case of a review under §§ 26.26 and 26.27, the Secretary or designee) may upon motion enlarge the time within which any act required by these rules must be performed where necessary to avoid prejudicing the public interest or the rights of the parties.
§ 26.12
§ 26.13
§ 26.14
§ 26.16
(d) Motions for extensions of time. Either party may file a motion for extension. At the discretion of the hearing officer, a motion for an extension of time may be granted for good cause at any time, notwithstanding an objection or any reply to the motion consistent with the provisions of § 26.2(c)(5) and (7). The hearing officer may waive the requirements of this section as to motions for extensions of time.
(f) Motions for summary judgment.
(1) A party claiming relief or a party against whom relief is sought may timely move, with or without supporting affidavits, for summary judgment on all or part of the claim.
(g) Motions for dismissal. When a motion to dismiss the proceeding is granted, the hearing officer shall issue a determination and order in accordance with the provisions of § 26.25.
§ 26.17
(2) Stipulations and admissions of fact and of the contents and authenticity of documents; Start Printed Page 52118
§ 26.18
(1) Requests for production of documents as set forth in § 26.19;
(2) Depositions as set forth in § 26.20;
(3) Written interrogatories as set forth in § 26.21; and
(4) Requests for admissions as set forth in § 26.22.
§ 26.19
(a) Request to produce. Any party may serve upon any other party a written request to produce, and permit the party making the request, or someone acting on the requestor's behalf, to inspect, copy, test, or sample any designated documents—including writings, drawings, graphs, charts, photographs, sound recordings, images, and other data or data compilations stored in any medium from which information can be obtained—translated, if necessary, by the respondent into reasonably usable form, or to inspect, copy, test, or sample any designated tangible things that constitute or contain matters within the scope of § 26.18(a) and which are in the possession, custody, or control of the party upon whom the request is served.
(c) Response to request to produce. The party upon whom the request is served shall serve a written response within 20 days after service of the request. A shorter or longer time may be directed by the hearing officer, or in the absence of such an order, agreed to by the parties in a written document that shall be timely submitted to the hearing officer. The response shall state, with respect to each item or category, whether inspection and related activities will be permitted as requested. If there are any objections to any requests, including objections to the requested form or forms for producing electronically stored information, the response shall state the reasons for such objections. If objection is made to part of an item or category, the part shall be specified and inspection of the remaining parts shall be permitted. If objection is made to the requested format or forms for producing electronically stored information—or if no form was specified in the request—Start Printed Page 52119the responding party must state the form or forms it intends to use. The party submitting the request may move for an order under § 26.18(c)(1) with respect to any objection to or other failure to respond to the request or any part thereof, or any failure to permit inspection as requested.
(c) Objections. Objection may be made to questions or answers for any reason that would require the exclusion of the testimony under § 26.24 as if the witness were present and testifying at hearing. Objections shall be in short form, stating every ground for objection. Failure to object to any question or answer shall be considered a waiver of objection, unless the parties agree otherwise. Rulings on any objections shall be made by the hearing officer at hearing, or at such other time requested by motion. The examination shall proceed, with the testimony being taken subject to the objections; the deponent may be instructed not to answer only when necessary to preserve a privilege, to enforce a limitation directed by the hearing officer, or to present a motion for a protective order under § 26.18(c)(2).
(ii) Fairly meets the substance of the requested admission and, when good faith requires that a party qualify an answer or deny only a part of the matter Start Printed Page 52120of which an admission is requested, specifies as much of it as is true and qualifies or denies the remainder; and
§ 26.24
§ 26.25
(f) Finality of determination. The determination and order shall be final unless a party timely appeals the determination in accordance with § 26.26. The determination shall inform the parties that, if provided for and consistent with Departmental regulations, any party may request, in writing, Secretarial review of the determination within 30 days after the hearing officer issues the determination, in accordance with § 26.26 of this part. The determination shall include the mailing address, facsimile number, and electronic submission information to which the request for Secretarial review should be sent. A request for Secretarial review may be made by mail, delivery, facsimile, or electronic submission.
(b) Brief in support of appeal. The appeal shall be accompanied by a written brief, not to exceed 15 pages, setting forth the party's specific objections to the determination or order Start Printed Page 52121of the hearing officer and the party's supporting reasons for any objections. The appealing party may request leave to file a brief in excess of 15 pages for good cause shown. Alternative proposed findings and conclusions, if any, may be appended as an exhibit.
(h) Interlocutory rulings. There is no right to appeal any interlocutory ruling by the hearing officer, except as provided for in § 26.27.
(k) Ex parte communications. The prohibitions of ex parte communications in § 26.3 shall apply to contacts with the Secretary or the Secretary's designee.
Docket Clerk means the Docket Clerk of the Office of Administrative Law Judges at the following address: 409 Third Street, SW., Second Floor, Washington, DC 20024.
§ 26.30
(a) Filing. Unless otherwise provided by statute, rule, or regulation, all documents shall be filed with the Docket Clerk. Filing may be by delivery, first class mail, overnight delivery, facsimile transmission, or electronic means; however, the ALJ may place reasonable limits on filing by facsimile transmission or electronic means. All documents shall clearly designate the docket number and title of the proceeding. Duplicate copies are not required unless ordered by the ALJ.
(b) Service. One copy of all documents filed with the Docket Clerk shall be served upon each party by the persons filing them and shall be accompanied by a certificate of service Start Printed Page 52122stating how and when such service has been made. Service may be made by delivery, first class mail, overnight delivery, facsimile transmission, or electronic means; however, the ALJ may place reasonable limits on service by facsimile transmission or electronic means. Documents shall be served upon a party's address of residence or principal place of business, or, if the party is represented by counsel, upon counsel of record at the address of counsel. Service is complete when handed to the person or delivered to the person's office or residence and deposited in a conspicuous place. If service is by first-class mail, overnight delivery, facsimile transmission, or electronic means, service is complete upon deposit in the mail or upon electronic transmission.
§ 26.31
§ 26.32
§ 26.33
(d) If a party fails to prosecute or defend an action brought under subpart B of this part, the ALJ may dismiss the action or may issue a decision against the non-prosecuting or defending party. Such decision of the ALJ shall constitute final agency action and shall not be appealable to the Secretary under § 26.52 of this part.
§ 26.35
§ 26.36
No officer, employee, or agent of the Federal Government engaged in the Start Printed Page 52123performance of investigative, conciliatory, or prosecutorial functions in connection with the proceeding shall, in that proceeding or any factually related proceeding under subpart B of this part, participate or advise in the decision of the Administrative Law Judge, except as a witness or counsel during the proceeding, or in its appellate review.
§ 26.38
Proceedings under subpart B of this part shall commence with the Government's filing of a complaint, as that term is defined in § 26.29, with the Docket Clerk. The respondent's response to the complaint shall be timely filed with the Docket Clerk and served upon the Government in accordance with the procedures set forth in the complaint. If the respondent fails to submit a response to the Docket Clerk, then the Government may file a motion for a default judgment in accordance with § 26.41.
§ 26.40
(a) General. All motions shall state the specific relief requested and the basis therefore and, except during a conference or the hearing, shall be in writing. Written motions shall be filed and served in accordance with § 26.30. Either party may submit a proposed order with any motion.
(c) Motions for extensions. Either party may file a motion for extension. At the discretion of the ALJ, a motion for an extension of time may be granted for good cause at any time, notwithstanding an objection or any reply to the motion, consistent with § 26.32(f). The ALJ may waive the requirements of this section as to motions for extensions of time or any page limits.
(g) Motions for dismissal. When a motion to dismiss the proceeding is granted, the ALJ shall make and file a determination and order in accordance with the provisions of § 26.50.
§ 26.42
(2) With the exception of the limited discovery permitted under paragraph (b)(1) of this section, unless agreed to by the parties, discovery shall be available only as ordered by the ALJ. The ALJ shall order only that discovery that he or she determines is necessary for the expeditious, fair, and reasonable consideration of the issues, is not unduly costly or burdensome, and will not unduly delay the proceeding. Discovery of privileged information shall not be permitted. The request for approval sent to the Attorney General from the General Counsel or designee, as described in 31 U.S.C. 3803(a)(2), is not discoverable under any circumstances. The ALJ may grant discovery subject to a protective order under § 26.44.
(1) Requests for production of documents. (i) Any party may serve upon any other party a written request to produce and permit the party making the request, or someone acting on the requestor's behalf, to inspect, copy, test, or sample any designated documents or electronically stored information—including writings, drawings, graphs, charts, photographs, sound recordings, images, and other data or data compilations stored in any medium from which information can be obtained—translated, if necessary, by Start Printed Page 52124the respondent into reasonably usable form, or to inspect, copy, test, or sample any designated tangible things that constitute or contain matters within the scope of § 26.42(a) and which are in the possession, custody, or control of the party upon whom the request is served.
(ii) Each person testifying on oral deposition shall be placed under oath by the person before whom the deposition is taken. The deponent may be examined and cross-examined. The questions and the answers, together with all objections made, shall be recorded by the person before whom the deposition is to be taken or under that person's direction.Start Printed Page 52125
(iii) Objections. Objection may be made to questions or answers for any reason that would require the exclusion of the testimony under § 26.47 as if the witness were present and testifying at hearing. Objections shall be in short form, stating every ground for objection. Failure to object to any question or answer shall be considered a waiver of objection, unless the parties agree otherwise. Rulings on any objections shall be made by the ALJ at hearing, or at such other time as is requested by motion. The examination shall proceed, with the testimony being taken subject to the objections; a person may instruct a deponent not to answer only when necessary to preserve a privilege, to enforce a limitation directed by the ALJ, or to present a motion under § 26.44.
(3) The opposing party may file a response to the motion, including a request for a protective order in accordance with § 26.44.
(f) Refusal to honor discovery order. When a party refuses to honor a discovery order, the ALJ may issue such orders in regard to the refusal as justice shall require, including the imposition of sanctions pursuant to § 26.34.
§ 26.43
§ 26.44
§ 26.45
(a) Time of hearing. The hearing shall commence not later than 90 days following the date of the Government's filing of the complaint and response with the Chief Docket Clerk under § 26.38, unless the time is extended for Start Printed Page 52126good cause. The ALJ shall provide written notice to all parties of the reasons for any extension of time.
§ 26.46
§ 26.47
§ 26.48
§ 26.49
§ 26.50
(a) The ALJ shall issue an initial decision based only on the record, which shall contain findings of fact, conclusions of law, and the relief granted. The ALJ's initial decision shall not become effective unless it becomes or is incorporated into final agency action in accordance with §§ 26.50(c) or 26.52(l).
(b) The ALJ shall serve the initial decision on all parties within 60 days after either the close of the record or the expiration of time permitted for submission of posthearing briefs, whichever is later. The ALJ may extend the 60-day period for serving the initial decision in writing for good cause. The initial decision shall inform the parties that, if provided for and consistent with Departmental regulations, any party may request, in writing, Secretarial review of the determination within 30 days after the ALJ issues the initial decision, in accordance with § 26.52 of this part. The determination shall include the mailing address, facsimile number, and electronic submission information to which the request for Secretarial review should be sent. A request for Secretarial review may be made by mail, delivery, facsimile, or electronic submission.
§ 26.51
§ 26.52
(d) Extensions and additional briefs. The Secretary or Secretary's designee may extend the deadlines or page limitations set forth in paragraphs (b), (c), and (d) of this section, in his or her sole discretion. The Secretary may also permit the filing of additional briefs, in his or her sole discretion. Start Printed Page 52127
(g) ALJ decisions upon failure to prosecute or defend. There is no right to appeal any decision issued by an ALJ in accordance with § 26.37(d) of this part.
(j) Ex parte communications. The prohibitions of ex parte communications in § 26.33 shall apply to contacts with the Secretary or designee.
§ 26.53
In order to fulfill the requirement of exhausting administrative remedies, a party must seek Secretarial review under § 26.52 prior to seeking judicial review of any initial decision issued under subpart B of this part.
§ 26.54
§ 26.56
The amount of any penalty or assessment that has become final under §§ 26.50 or 26.52, or for which a judgment has been entered after action under §§ 26.54 or 26.55, or agreed upon in a compromise or settlement among the parties, may be collected by administrative offset under 31 U.S.C. 3716 or other applicable law. In Program Fraud Civil Remedies Act matters, an administrative offset may not be collected against a refund of an overpayment of federal taxes then or later owing by the United States to the Respondent.
[FR Doc. E8-20761 Filed 9-5-08; 8:45 am]