New York Codes, Rules and Regulations › Title 8 - EDUCATION DEPARTMENT › Chapter XX - Higher Education Services Corporation › Subchapter A - Administration › Part 2006 - Suspension And Limitation Of Awards Participation › Section 2006.3 - Procedures

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Informal
				  compliance. If the president receives a complaint, or has other information
				  which indicates that a violation of applicable laws, regulations, agreements or
				  limitations has occurred or is occurring, the president may informally call
				  such matter to the attention of the institution involved and shall give such
				  institution a reasonable opportunity to respond to the allegation and, if the
				  alleged violation occurred, to show that it has been corrected or to submit an
				  acceptable plan as to those measures which will be undertaken to correct the
				  violation and to prevent its recurrence. Undertaking informal compliance
				  procedures under this subdivision shall not prevent the president from
				  instituting limitation, suspension or termination proceedings or from imposing
				  sanctions, based upon the same allegations or violations.
(b) Formal sanctions.
(1) In the event that the president receives
				  sufficient evidence of the violations set forth in section
				  2006.5 
				  of this Part or determines that there is a reasonable likelihood that an
				  institution has violated any statute, regulation, the terms of its
				  participation agreement or the terms of any previous action taken pursuant to
				  this Part, a limitation, suspension or termination proceeding may be commenced.
				  The institution of suspension proceedings or any suspension imposed shall not
				  operate to waive the corporation's right to take action based upon the
				  violations found to exist, including but not limited to the taking of
				  limitation or termination proceedings or the imposition of such sanctions. A
				  limitation, suspension or termination may be formally initiated whether or not
				  the president has utilized the informal compliance procedure.
(2) The president shall initiate limitation,
				  suspension or termination procedures by mailing a notice to the institution in
				  question, by certified mail with return receipt requested:
(i) informing the institution of the
				  corporation's intent to limit, suspend or terminate the institution's continued
				  eligibility to participate in programs hereunder, the nature of any proposed
				  action and the basis of such action;
(ii) specifying the proposed effective date
				  for the limitation, suspension or termination and the consequences of such
				  action; and
(iii) informing the
				  institution of its rights, if exercised within a stated period of time, to
				  submit written material and to request a hearing before the limitation,
				  suspension or termination takes effect. The notice shall also provide
				  information pertaining to this proceeding as the president may determine to be
				  appropriate. The notice shall also invite voluntary efforts to correct the
				  violation which led to the initiation of this action.
(3) If the institution requests a hearing
				  within the time permitted, such hearing shall be conducted as promptly as
				  possible by the presiding officer pursuant to the provisions of Part 2005 of
				  this Title.
(4) If the institution
				  does not request a hearing, the president may, after considering any written
				  material submitted on a timely basis by the institution, dismiss the matter or
				  notify the institution that action has been taken and of the terms of such
				  action.