[Code of Federal Regulations]

[Title 14, Volume 5]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 14CFR1264.109]



[Page 377-378]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

                          SPACE ADMINISTRATION

 

PART 1264_IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT OF 

1986--Table of Contents

 

Sec. 1264.109  Default upon failure to file an answer.



    (a) If the defendant does not file an answer within the time 

prescribed in Sec. 1264.108(a), the reviewing official may refer the 

complaint to the presiding officer.

    (b) Upon the referral of the complaint, the presiding officer shall 

promptly serve on defendant, in the manner prescribed in Sec. 1264.107, 

a notice that an initial decision will be issued under this section.

    (c) If the defendant fails to answer, the presiding officer shall 

assume the facts alleged in the complaint to be true and, if such facts 

establish liability under Sec. 1264.102, the presiding officer shall 

issue an initial decision imposing the maximum amount of penalities and 

assessments allowed under the statute.

    (d) Except as otherwise provided in this section, by failing to file 

a timely answer, 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 with the presiding officer seeking to reopen on the 

grounds that extraordinary circumstances prevented the defendant from 

filing an answer, the initial decision shall be stayed pending the 

presiding officer's decision on the motion.

    (f) If, on such motion, the defendant can demonstrate extraordinary 

circumstances excusing the failure to file a timely answer, the 

presiding officer shall withdraw the initial decision under 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 presiding officer denying a defendant's motion 

under paragraph (e) of this section is not subject to reconsideration 

under Sec. 1264.137.

    (h) The defendant may appeal to the authority head the decision 

denying a motion to reopen by filing a notice of appeal with the 

authority head within 15 days after the presiding officer denies the 

motion. The timely filing of a



[[Page 378]]



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 with the 

authority head, the presiding officer shall forward 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 file a 

timely answer based solely on the record before the presiding officer.

    (k) If the authority head decides that extraordinary circumstances 

excused the defendant's failure to file a timely answer, the authority 

head shall remand the case to the presiding officer with instructions to 

grant the defendant an opportunity to answer.

    (l) If the authority head decides that the defendant's failure to 

file a timely answer is not excused, the authority head shall reinstate 

the initial decision of the presiding officer, which shall become final 

and binding upon the parties 30 days after the authority head issues 

such decision.