[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR31.10]

[Page 363-364]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 31_PROGRAM FRAUD CIVIL REMEDIES--Table of Contents
 
Sec.  31.10  Default upon failure to answer.

    (a) If the defendant does not answer within the time prescribed in 
Sec.  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 Sec.  31.8, a notice that an 
initial decision will be issued under this section.

[[Page 364]]

    (c) In addition, the ALJ shall assume the facts alleged in the 
complaint to be true, and, if such facts establish liability under Sec.  
31.3, the ALJ shall issue an initial decision imposing the maximum 
amount of penalties and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to 
answer on time, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.
    (e) If, before such an initial decision becomes final, the defendant 
files a motion seeking to reopen on the grounds that extraordinary 
circumstances prevented the defendant from answering, the initial 
decision shall be stayed pending the ALJ's decision on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to answer on time, the ALJ shall 
withdraw the initial decision in paragraph (c) of this section, if such 
a decision has been issued, and shall grant the defendant an opportunity 
to answer the complaint.
    (g) A decision of the ALJ denying a defendant's motion under 
paragraph (e) of this section is not subject to reconsideration under 
Sec.  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 Sec.  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.
    (i) If the defendant files a timely notice of appeal, 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.
    (j) The authority head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to answer on 
time based solely on the record before the ALJ.
    (k) If the authority head decides that extraordinary circumstances 
excused the defendant's failure to answer on time, the authority head 
shall remand the case to the ALJ with instructions to grant the 
defendant an opportunity to answer.
    (l) If the authority head decides that the defendant's failure to 
answer on time is not excused, the authority head shall reinstate the 
initial decision of the ALJ, which shall become final and binding upon 
the parties 30 days after the authority head issues such decision.