[Code of Federal Regulations]
[Title 14, Volume 5]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR1264.109]

[Page 379-380]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
                   CHAPTER V--NATIONAL AERONAUTICS AND
                          SPACE ADMINISTRATION
 
PART 1264_IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT OF 1986--
 
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 380]]

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.