Source: https://www.federalregister.gov/documents/2014/10/07/2014-23932/rules-of-practice-in-explosives-license-and-permit-proceedings-2007r-5p-revisions-reflecting-changes
Timestamp: 2019-11-22 07:00:54
Document Index: 781914018

Matched Legal Cases: ['art 771', 'art 478', 'art 555', 'art 71', 'art 71', 'art 478', 'art 478', 'art 8', 'art 555', 'art 555', 'art 8', 'art 71', 'art 771', 'art 771', 'art 771', 'art 8', '§\u2009478', '§\u2009555', '§\u2009555', 'art 771', 'art 71', 'art 8', '§\u2009555', '§\u2009555', 'art 771', 'art 71', '§\u2009555', 'art 771', 'art 771', 'art 8', 'arts 478', 'art 771', '§\u2009555', 'art 71', 'art 771', 'art 771', '§\u2009771', '§\u2009555', '§\u2009555', '§\u2009771', '§\u2009555', '§\u2009555', '§\u2009771', '§\u2009771', '§\u2009771', '§\u2009771']

A Proposed Rule by the Alcohol, Tobacco, Firearms, and Explosives Bureau on 10/07/2014
60391-60405 (15 pages)
ATF-2014-0006
Rules of Practice in Explosives License and Permit Proceedings (2007-5P)
A. Creation of new 27 CFR Part 771
B. Proposed Amendments to 27 CFR Part 478
C. Proposed Amendments to 27 CFR Part 555
https://www.federalregister.gov/d/2014-23932 https://www.federalregister.gov/d/2014-23932
The Department of Justice proposes to codify the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) procedures and practices in connection with the disapproval of initial applications, denials of renewal, and revocations of explosives licenses or permits. The proposed regulations will be codified in a new part entitled “Rules and Practice in License and Permit Proceedings.” The proposed regulations are based upon the regulations that ATF relied upon prior to its transfer from the Department of the Treasury to the Department of Justice.
Additionally, the Department proposes minor revisions to regulations governing administrative proceedings related to the denial, suspension, or revocation of a license, and the imposition of a civil fine under Federal firearms law to reference regulations under ATF authority. These proposed revisions remove all references to statutes, regulations, positions, and other terms that are applicable only to the Department of the Treasury. These Start Printed Page 60392revisions reflect ATF's position as a regulatory and enforcement agency under the Department of Justice and are consistent with the proposed regulations governing administrative hearing processes for explosives licenses and permits.
Send comments, identified by docket number (ATF 33P), by any of the following methods:
Mail: Denise Brown, Enforcement Programs and Services, Office of Regulatory Affairs, Mailstop 6N-602, Bureau of Alcohol, Tobacco, Firearms, and Explosives, 99 New York Avenue NE., Washington, DC 20226; ATTN: ATF 33P. Written comments must appear in minimum 12-point font size (.17 inches), include the sender's mailing address, and be signed; they may be of any length.
Fax: 202-648-9741.
Denise Brown, Enforcement Programs and Services, Office of Regulatory Affairs, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 99 New York Avenue NE., Washington, DC 20226; telephone: (202) 648-7070.
The Attorney General has delegated to the Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) responsibility for administering and enforcing title I of the Gun Control Act of 1968 (GCA), Public Law 90-618, as amended, 18 U.S.C. Chapter 44, relating to commerce in firearms and ammunition; and Title XI, Regulation of Explosives, of the Organized Crime Control Act of 1970 (OCCA), Public Law 91-452, as amended, 18 U.S.C. Chapter 40. See 18 U.S.C. 926(a); 18 U.S.C. 843; 28 CFR 0.130. Under the GCA, ATF has the authority to license applicants, renew licenses, and revoke Federal firearms licenses. The OCCA, as amended by the Safe Explosives Act, Title XI, Subtitle C of Public Law 107-296, the Homeland Security Act of 2002 (enacted November 25, 2002), authorizes ATF to provide licenses and permits to qualified applicants for the acquisition, distribution, storage, or use of explosive materials and renew or revoke such licenses and permits.
On November 25, 2002, President George W. Bush signed the Homeland Security Act of 2002, Public Law 107-296 (the Act), which divided the regulatory functions of the Bureau of Alcohol, Tobacco, and Firearms into two separate agencies. The Act renamed the Bureau of Alcohol, Tobacco and Firearms as the Bureau of Alcohol, Tobacco, Firearms, and Explosives and transferred law enforcement and certain regulatory functions to the Department of Justice. The Act also retained in the Department of the Treasury (Treasury) certain functions of the former Bureau of Alcohol, Tobacco, and Firearms. The functions retained by Treasury became the responsibility of a new Alcohol and Tobacco Tax and Trade Bureau (TTB).
As a result of the Act, TTB has all regulatory authority under 27 CFR Part 71 and ATF therefore cannot promulgate new regulations under this part, although ATF uses the regulations in Part 71 to administer hearings related to the application and revocation of Federal explosives licenses and permits.
Regulations that implement the provisions of the GCA are set forth in 27 CFR Part 478. Subpart E of Part 478 relates to proceedings involving Federal firearms licensees, including the denial, suspension, or revocation of licenses and the imposition of civil fines. Specifically, 27 CFR 478.76 provides that an applicant or licensee may be represented at a hearing for the disapproval of applications for firearms licenses, for the denial, suspension, or revocation of a firearms license, or for imposition of a civil fine under federal firearms law by an attorney, a certified public accountant, or any other person recognized to practice before ATF as provided in 31 CFR Part 8, if the representative complies with the applicable practice requirements of 26 CFR 601.521 through 601.527.
The regulations that implement OCCA procedural and substantive requirements are found in 27 CFR Part 555. Subpart E of Part 555 relates to proceedings involving Federal explosives licensees and permittees, including the denial of an initial application, denial of a renewal, and revocation of a license or permit. Specifically, 27 CFR 555.78 provides that an applicant, licensee, or permittee may be represented at a hearing for the disapproval of applications for explosives licenses, and for the denial of renewal or revocation of such licenses or permits under federal explosives law by an attorney, a certified public accountant, or any other person recognized to practice before ATF as provided in 31 CFR Part 8, if the representative complies with the applicable practice requirements of 26 CFR 601.521 through 601.527.
The Department proposes revising ATF regulations to add a new part that implements 18 U.S.C. 843 and 847 relating to the procedures and practice for the disapproval of initial applications, denials of a renewal, and revocations of explosives licenses or permits by ATF under federal explosives law. ATF is incorporating and updating the language relevant to its operations currently found in Part 71 into proposed 27 CFR Part 771. The creation of Part 771 is primarily an administrative change that will improve the organization of ATF regulations. The proposed regulations will be codified in a new part 771 in Chapter II of title 27 CFR and are separated into subparts as follows:
Subpart A—Scope and Construction
Subpart E—Grounds for Revocation or Denial
This proposed rule amends ATF regulations governing procedures and practices for disapproving applications for firearms licenses; for denying, suspending, or revoking a firearms license; and for imposing a civil fine Start Printed Page 60393under federal firearms law. The proposed rule revises 27 CFR 478.76 to allow an applicant or licensee to be represented at a proceeding by himself, an attorney, a certified public accountant, or any other person without submitting a declaration of a representative pursuant to 26 CFR 601.521, and it deletes the current references to 31 CFR Part 8 and 26 CFR 601.521 through 601.527. Under the proposed rule, an applicant or licensee shall file in the proceeding a duly executed power of attorney designating his representative. The applicant or licensee shall also file waivers, if applicable, under the Privacy Act of 1974 (see 5 U.S.C. 552a), and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). The Director of Industry Operations may be represented in proceedings under §§ 478.72 and 478.74 by an attorney for the government in the ATF Office of Chief Counsel who is authorized to execute and file motions, briefs, and other papers in the proceeding on behalf of the Director of Industry Operations in the attorney's own name as “Attorney for the Government.”
This proposed rule amends ATF regulations governing procedures and practices for disapproving applications, denying renewals, and revoking explosives licenses or permits under federal explosives law. This proposed rule amends § 555.73 and § 555.73 to state that the administrative hearings will be conducted in accordance with the hearing procedures prescribed in part 771, thereby replacing the current references in these sections to part 71.
The proposed rule revises 27 CFR 555.78 to allow an applicant, licensee, or permittee to be represented at a proceeding by himself, an attorney, a certified public accountant, or any other person without submitting a declaration of a representative pursuant to 26 CFR 601.521, and it deletes the current references to 31 CFR Part 8 and 26 CFR 601.521 through 601.527. Under the proposed rule, an applicant, licensee, or permittee shall file in the proceeding a duly executed power of attorney designating his representative. The applicant, licensee, or permittee shall also file waivers, if applicable, under the Privacy Act of 1974 (see 5 U.S.C. 552(a)) and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). An attorney for the government may represent the Director of Industry Operations under §§ 555.73 and 555.75 who is authorized to execute and file motions, briefs, and other papers in the proceeding, on behalf of the Director of Industry Operations, in the attorney's own name as “Attorney for the Government.”
This proposed rule amends § 555.79 to state that, in the event that an appeal is taken from a decision of a hearing, the process by which the Director will review the complete original record will be contained in a new part 771, thereby replacing the current reference in this section to part 71.
This proposed rule revises § 555.82 to state that regulations governing the procedures and practices for disapproving applications for explosives licenses and permits and for denying renewal of or revoking such licenses and permits are contained in a new Part 771.
This rule will not have an annual effect on the economy of $100 million or more, nor will it adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal government or communities. Similarly, it does not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency, materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof, or raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in Executive Order 12866. Accordingly, this rule is not a “significant regulatory action” as defined in Executive Order 12866.
Section 6 of Executive Order 13563, directs agencies to develop a plan to review existing significant rules that may be “outmoded, ineffective, insufficient, or excessively burdensome,” and to make appropriate changes where warranted. The Department selected and reviewed this rule under the criteria set forth in its Plan for Retrospective Analysis of Existing Rules, and determined that this proposed rule transfers and consolidates regulations governing explosives license application renewal or revocation of licenses and permits, improving the enforcement of ATF regulations.
This proposed regulation will not have substantial direct effects on the States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with section 6 of Executive Order 13132, the Attorney General has determined that this proposed regulation does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement.
The Regulatory Flexibility Act (5 U.S.C. 605(b)) exempts an agency from the requirement to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small not-for-profit enterprises, and small governmental jurisdictions. The Attorney General has reviewed this proposed rule and, by approving it, certifies that it will not have a significant economic impact on a substantial number of small entities. This proposed rule recodifies the ATF regulations governing the procedure and practice for disapproving applications, denying renewals, and revoking explosives licenses or permits under Start Printed Page 60394federal explosives law in a new part 771 under ATF's regulatory authority.
Additionally, this proposed rule updates the regulations governing the denial, suspension, or revocation of a firearms license, and imposition of a civil fine under federal firearms law to only reference regulations under ATF authority. This proposed rule also amends the regulations to require an applicant or licensee in a proceeding concerning the denial, suspension, or revocation of a firearms license, or the imposition of a civil fine under federal firearms law, to file a duly executed power of attorney designating his representative, and waivers, if applicable, under the Privacy Act of 1974 (See 5 U.S.C. 552(a)), and 26 U.S.C. 6103(c) (confidentiality and disclosure of returns and return information). This is required in the current regulations by reference to 31 CFR Part 8 and 26 CFR 601.521 through 601.527. The changes proposed in this rule are purely administrative and do not add any new requirements that would have any impact on the economy.
This proposed rule does not impose any new reporting or recordkeeping requirements under the Paperwork Reduction Act of 1995.
All comments must reference this document docket number (ATF 33P), be legible, and include the commenter's name and mailing address. ATF will treat all comments as originals and will not acknowledge receipt of comments.
Comments, whether submitted electronically or in paper, will be made available for public viewing at ATF and on the Internet as part of the eRulemaking initiative. Comments are subject to the Freedom of Information Act. Commenters who do not want their names or other personal identifying information posted on the Internet should submit their comments by mail or facsimile, along with a separate cover sheet containing their personal identifying information. Both the cover sheet and comment must reference this docket number. Information contained in the cover sheet will not be posted on the Internet. Any personal identifying information that appears within the comment will be posted on the Internet and will not be redacted by ATF.
Any material that a commenter considers to be inappropriate for disclosure to the public should not be included in the comment. Any person submitting a comment shall specifically designate that portion (if any) of the comments that contains material that is confidential under law (e.g., trade secrets, processes, etc.). Any portion of a comment that is confidential under law shall be set forth on pages separate from the balance of the comment and shall be prominently marked “confidential” at the top of each page. Confidential information will be included in the rulemaking record but will not be disclosed to the public. Any comments containing material that is not confidential under law may be disclosed to the public. In any event, the name of the person submitting a comment is not exempt from disclosure.
Mail: Send written comments to the address listed in the ADDRESSES section of this document. Written comments may be of any length, must appear in minimum 12-point font size (.17 inches), and include the commenter's mailing address and signature.
Any interested person who desires an opportunity to comment orally at a public hearing should submit such request for a hearing, in writing, to the Director of ATF within the 90-day comment period. Address requests for public hearings to Denise Brown, Enforcement Programs and Services, Office of Regulatory Affairs, Mailstop 6N-602, Bureau of Alcohol, Tobacco, Firearms, and Explosives, 99 New York Avenue NE., Washington, DC 20226; ATTN: ATF 33P. The Director, however, reserves the right to determine, in light of all circumstances, whether a public hearing is necessary.
Accordingly, for the reasons discussed in the preamble, 27 CFR Parts 478 and 555 are proposed to be amended and Part 771 is proposed to be added to chapter II, title 27 as follows:
2. Section 478.76 is revised to read as follows:
6. Revise 555.78 to read as follows:
7. Amend § 555.79 by removing “part 71” and adding in its place “part 771”.
9. Add subchapter E (consisting of part 771) to 27 CFR chapter II to read as follows:
Denial of renewal application or revocation of license or permit
Reopening of the hearing.Start Printed Page 60396
(b) Requests for forms should be made to the ATF Distribution Center or through the ATF Web site at http://www.atf.gov.
Application. Any application for a license or permit under 18 U.S.C. Chapter 40 for operations not covered by an existing license or permit.
Person. Any individual, corporation, association, firm, partnership, society, or joint stock company.
(1) Acquire for his own use explosive materials from a licensee in a State other than the State in which he resides or from a foreign country, and;
Willfulness. The plain indifference to, or purposeful disregard of, a known Start Printed Page 60397legal duty. Willfulness may be demonstrated by, but does not require, repeat violations involving a known legal duty.
Pleadings, motions, notices, and other formal documents may be served by certified mail, by personal service, or as otherwise agreed to by the parties on the Director of Industry Operations (or upon the attorney for the Government on behalf of the Director of Industry Operations), or on the Director, if the proceeding is before him for review on appeal.
Any proposals of settlement should be made to the Director of Industry Operations, but may be made through the attorney for the Government. Where necessary, the date of the hearing may be postponed pending consideration of such proposals when they are made in good faith and not for the purpose of delay. If proposals of settlement are submitted, and they are considered unsatisfactory, the Director of Industry Operations may reject the proposals and may, either directly or through the attorney for the Government, inform the licensee or permittee of any conditions on which the alleged violations may be settled. If the proposals of settlement are considered satisfactory to the Director of Start Printed Page 60398Industry Operations, the licensee or permittee shall be notified thereof and the proceeding shall be dismissed.
Where the Director of Industry Operations has not ascertained whether the licensee or permittee has willfully violated the federal explosives laws and where he believes the matter has the potential to be settled informally, i.e., without formal administrative proceedings, he shall, in accordance with section 5(b) of the Administrative Procedure Act, prior to the issuance of a notice of revocation or denial of renewal, give the licensee or permittee a contemplated notice of such action and an opportunity to show why the license or permit should not be revoked or denied renewal. The notice should inform the licensee or permittee of the charges on which the notice would be based, if issued, and afford him a period of 15 days from the date of the notice, or such longer period as the Director of Industry Operations deems necessary, in which to submit proposals of settlement to the Director of Industry Operations. Where informal settlement is not reached promptly because of inaction by the applicant, licensee, or permittee or proposals are made for the purpose of delay, a notice shall be issued in accordance with §§ 771.42 or 771.43, as appropriate. The issuance of a notice of contemplated action does not entitle the recipient to a hearing before an administrative law judge.
If the licensee or permittee fails to meet the requirements of applicable laws and regulations within such reasonable time as may be specified by the Director of Industry Operations, proceedings for revocation or denial of renewal of the license or permit shall be initiated.
Where the evidence is conclusive and the nature of the violation is such as to preclude any settlement, the violation is of a continuing character that necessitates immediate action to protect the public interest, or the Director of Industry Operations believes that any informal settlement of the alleged violation will not ensure future compliance with applicable laws and regulations, or in any similar case where the circumstances are such as to clearly preclude informal settlement, and the Director of Industry Operations so finds and states the reasons therefor in the notice, the Director of Industry Operations may proceed with the revocation or denial of renewal.
If, following the opportunity for compliance under § 555.71 of this chapter, or without opportunity for compliance under § 555.71 of this chapter as circumstances warrant, the Director of Industry Operations finds that the licensee or permittee is not likely to comply with applicable laws or regulations or is otherwise not eligible to continue operations authorized under his license or permit, the Director of Industry Operations shall issue a notice of denial of the renewal application or revocation of the license or permit, ATF F 5400.11 (Notice of Denial of Application for License or Permit) or ATF Form 5400.10 (Notice of Revocation of License or Permit) (F 5400.10), as appropriate. The notice will set forth the matters of fact constituting the violations specified, dates, places, and the sections of law and regulations violated. In the case of the revocation of a license or permit, the notice will specify the date on which the action is effective, which date will be on or after the date the notice is served on the licensee or permittee. The notice will also advise the licensee or permittee that he may, within 15 days after receipt of the notice, request a hearing and, if applicable, a stay of the effective date of the revocation of his license or permit.
Whenever the Director of Industry Operations has reason to believe that any holder of a license or permit has willfully violated any provision of 18 U.S.C. Chapter 40 or the regulations prescribed thereunder or has become ineligible to continue operations authorized under the license or permit, the Director of Industry Operations shall issue a notice for the revocation of such license or permit, as the case may be.
(a) ATF Form 5400.9, “Order After Denial or Revocation Hearing,” for all revocations or denials of renewal of licenses or permits pursuant to 18 U.S.C. Chapter 40 after a hearing has been held and a Recommended Decision Start Printed Page 60399has been issued by the administrative law judge;
(a) If the applicant for an initial license or permit desires a hearing, he shall file a request in writing with the Director of Industry Operations within 15 days after receipt of notice of the disapproval, in whole or in part, of the application. The request should include a statement of the reasons for a hearing.
(c) After the Office of Chief Counsel notifies the Director of Industry Operations or the attorney for the Government of the assignment of an administrative law judge, the Director of Industry Operations shall notify the licensee or permittee of the assignment.
(a) Where the licensee or permittee requests a hearing in accordance with § 771.60 of this chapter, a written response to the relevant notice may be filed with the administrative law judge and served on the Director of Industry Operations within 15 days after the licensee or permittee receives service of the designation of the administrative law judge.
(1) Simplification of the issues;Start Printed Page 60400
The licensee or permittee may waive the hearing before the administrative law judge and stipulate that the matter will be adjudicated by the Director of Industry Operations based upon written submissions. Written submissions may include stipulations of law or facts, proposed findings of fact and conclusions of law, briefs, or any other documentary material. The pleadings, together with the written submissions of both the licensee or permittee and the attorney for the Government, shall constitute the record on which the initial decision shall be based. The election to contest the denial or revocation without a hearing under this section does not affect the licensee's or permittee's right to appeal to the Director pursuant to § 555.79 of this chapter or to the United States Court of Appeals for the district in which the licensee or permittee resides or has his principle place of business pursuant to § 555.80 of this chapter.
Motions at the hearing may be made in writing to the administrative law judge or stated orally on the record.Start Printed Page 60401
Any relevant evidence that would be admissible under the rules of evidence governing civil proceedings in matters not involving trial by jury in the Courts of the United States shall be admissible. The administrative law judge may relax such rules in any hearing when in his judgment such relaxation would not impair the rights of either party and would more speedily conclude the hearing or would better serve the ends of justice. However, the administrative law judge shall provide for the exclusion of irrelevant, immaterial, or unduly repetitious evidence. Every party shall have the right to present his case or defense by oral or documentary evidence, depositions, or duly authenticated copies of records and documents; to submit rebuttal evidence; and to conduct such reasonable cross-examination as may be required for a full and true disclosure of the facts.
(a) Witnesses. The administrative law judge shall have the right in his discretion to limit the number of witnesses whose testimony may be merely cumulative and shall, as a matter of policy, not only exclude irrelevant, immaterial, or unduly repetitious evidence but shall also limit the cross-examination of witnesses to that required for a full and true disclosure of the facts so as not to unnecessarily prolong the hearing and unduly burden the record. Opinion testimony shall be admitted when the administrative law judge is satisfied that the witness is properly qualified as defined by Federal Rule of Evidence 701.
(b) Documentary Evidence. Material and relevant evidence shall not be excluded because it is not the best evidence unless its authenticity is challenged, in which case reasonable time shall be given to establish its authenticity. When only portions of a document are to be relied upon, the offering party shall prepare the pertinent excerpts, adequately identified, and shall supply copies of such excerpts, together with a statement indicating the purpose for which such materials will be offered, to the administrative law judge and to the other parties. Only the excerpts, so prepared and submitted, shall be received in the record. However, the whole of the original document should be made available for examination and for use by opposing counsel for purposes of cross-examination. Compilations, charts, summaries of data, and photostatic copies of documents may be admitted in evidence if the proceedings will thereby be expedited, and if the material upon which they are based is available for examination by the parties. Objections to the evidence shall be in short form, stating the grounds relied upon. The transcript shall not include argument or debate on objections, except as ordered by the administrative law judge, but shall include the rulings thereon. Where official notice is taken of a material fact not appearing in the evidence in the record, any party shall, on timely request, be afforded an opportunity to controvert such fact.
Before closing a hearing, the administrative law judge shall inquire of each party whether the party has any further evidence to offer, which inquiry and the response thereto shall be shown in the record. The administrative law judge may hear arguments of counsel and the administrative law judge may limit the time of such arguments at his discretion. The administrative law judge may, in his discretion, allow briefs to be filed on behalf of either party but shall closely limit the time within which the briefs for both parties shall be filed, so Start Printed Page 60402as to avoid unreasonable delay. The administrative law judge shall also ascertain whether the parties desire to submit proposed findings and conclusions, together with supporting reasons, and, if so, a period of not more than 15 days (unless extended by the administrative law judge)—after the close of the hearing or receipt of a copy of the record, if one is requested—will be allowed for such purpose.
(a) In case of default under §§ 771.67 or 771.68 where the applicant, licensee, or permittee failed to request a hearing or to appear after one was set, upon petition setting forth reasonable grounds for such failure, and
Administrative law judges shall be under the administrative control of the Director. In hearings under this subpart, administrative law judges must apply all governing agency rulings and governing agency precedent. They shall be responsible for the conduct of hearings and shall render their decisions as soon as is reasonably possible after the hearing is closed. Administrative law judges shall also be responsible for the preparation, certification, and forwarding of the complete record of proceedings and the administrative work relating thereto and, by arrangement with Directors of Industry Operations and representatives of the Office of Chief Counsel shall have access to facilities and temporary use of personnel at such times and places as are needed in the prompt dispatch of official business.
(k) Take any other action authorized by rule of the Bureau of Alcohol, Tobacco, Firearms, and Explosives consistent with the Administrative Procedure Act.
The administrative law judge is charged with the duty of conducting a fair and impartial hearing and of maintaining order in form and manner consistent with the dignity of a court proceeding. In the event that counsel or any person or witness in any proceeding shall refuse to obey the orders of the administrative law judge, or be guilty of disorderly or contemptuous language or conduct in connection with any hearing, the administrative law judge may, for good cause stated in the record, suspend the hearing, and, in the case of disorderly or contemptuous language or conduct by an attorney, recommend that the Director report the matter to the Chief Counsel regarding the attorney for the Government or the applicable state bar association regarding the attorney for a licensee or permittee for disciplinary action. The refusal of a witness to answer any question that has been ruled to be proper shall be considered by the administrative law judge in determining the weight to be given all the testimony of that witness.
When the Director of Industry Operations issues an initial decision in accordance with §§ 771.77 or 771.107 the decision shall become a part of the record. The decision shall consist of:
(b) Rejecting the recommended decision. After consideration of the complete certified record of the hearing, if the Director of Industry Operations disagrees with the recommended decision of the administrative law judge, he may file a petition with the Director for review of the recommended decision, as provided in § 771.120. If the Director of Industry Operations files such a petition, he shall withhold issuance of the order pending the decision of the Director, upon receipt of which he shall issue the order in accordance with the Director's decision. A signed original of the order of the Director of Industry Operations shall be served upon the licensee or permittee or his representative and the original copy containing a certificate of service shall be placed in the official record of the proceeding.Start Printed Page 60404
(c) In a case where the initial decision is made by the Director of Industry Operations in accordance with § 771.78(b), the Director of Industry Operations shall also issue an order revoking or denying the renewal of the license or permit, or dismissing the proceedings in accordance with his initial decision. A signed original of the decision and order of the Director of Industry Operations shall be served upon the licensee or permittee or his representative and the original copy placed in the official record of the proceeding.
(a) An appeal to the Director may be made by the applicant, licensee, or permittee, or by the Director of Industry Operations. For the applicant, licensee, or permittee, such appeal shall be made by filing a petition for review on appeal with the Director within 15 days of the service of the adverse initial decision by the Director of Industry Operations. For the Director of Industry Operations, such appeal shall be taken by filing a petition for review on appeal with the Director within 15 days of the issuance of the administrative law judge's decision recommending against revocation or denial of renewal. The petitioning applicant, licensee, or permittee must submit arguments showing that the Director of Industry Operations' initial decision, and if applicable the underlying administrative law judge's recommended decision, was without reasonable warrant in fact or contrary to law and regulations. The petitioning DIO must submit arguments showing the administrative law judge's recommended decision was without reasonable warrant in fact or contrary to law and regulations. Nothing in these regulations shall limit the authority of the Director to review the administrative law judge's decision exercising all the powers that he would have in making the recommended decision.
(a) If an applicant, licensee, or permittee files an appeal in the United States Court of Appeals for the district in which he resides or has his principle place of business, within 60 days after the receipt of the Director's decision, the Director, upon notification that an appeal has been taken, shall prepare the record for submission to the court in accordance with applicable court rules.
The administrative law judge may take or order the taking of depositions by either party to the proceeding at such time and place as the administrative law judge may designate before a person having the power to administer oaths, upon application therefor and notice to the parties to the action. The testimony shall be reduced to writing by the person taking the deposition, or a person under his direction, and the deposition shall be subscribed by the Start Printed Page 60405deponent unless subscribing thereof is waived in writing by the parties.
[FR Doc. 2014-23932 Filed 10-6-14; 8:45 am]