[Code of Federal Regulations]
[Title 34, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR81.38]

[Page 237-238]
 
                           TITLE 34--EDUCATION
 
PART 81_GENERAL EDUCATION PROVISIONS ACT_ENFORCEMENT--Table of Contents
 
                Subpart B_Hearings for Recovery of Funds
 
Sec. 81.38  Consideration of an application for review.

    (a) The ALJ assigned to the case under Sec. 81.4 considers an 
application for review of a disallowance decision.
    (b) The ALJ decides whether the notice of a disallowance decision 
meets the requirements of Sec. 81.34, as provided by section 451(e) of 
GEPA.
    (1) If the notice does not meet those requirements, the ALJ--
    (i) Returns the notice, as expeditiously as possible, to the 
authorized Departmental official who made the disallowance decision;
    (ii) Gives the official the reasons why the notice does not meet the 
requirements of Sec. 81.34; and

[[Page 238]]

    (iii) Informs the recipient of the ALJ's decision by certified mail, 
return receipt requested.
    (2) An authorized Departmental official may modify and reissue a 
notice that an ALJ returns.
    (c) If the notice of a disallowance decision meets the requirements 
of Sec. 81.34, the ALJ decides whether the application for review meets 
the requirements of Sec. 81.37.
    (1) If the application, including any supplements or amendments 
under Sec. 81.37(d), does not meet those requirements, the disallowance 
decision becomes the final decision of the Department.
    (2) If the application meets those requirements, the ALJ--
    (i) Informs the recipient and the authorized Departmental official 
that the OALJ has accepted jurisdiction of the case; and
    (ii) Schedules a hearing on the record.
    (3) The ALJ informs the recipient of the disposition of its 
application for review by certified mail, return receipt requested. If 
the ALJ decides that the application does not meet the requirements of 
Sec. 81.37, the ALJ informs the recipient of the reasons for the 
decision.

(Authority: 20 U.S.C. 1221e-3, 1234 (e) and (f)(1), 1234a(b), and 
3474(a))

[54 FR 19512, May 5, 1989. Redesignated and amended at 58 FR 43473, Aug. 
16, 1993]