EDGAR Part 81 (General Education Provisions Act-Enforcement)-Subpart A (General Provisions)
TITLE 34--EDUCATION
PART 81_GENERAL EDUCATION PROVISIONS ACT_ENFORCEMENT
Subpart A_General Provisions
Sec.
81.1 Purpose.
81.2 Definitions.
81.3 Jurisdiction of the Office of Administrative Law Judges.
81.4 Membership and assignment to cases.
81.5 Authority and responsibility of an Administrative Law Judge.
81.6 Hearing on the record.
81.7 Non-party participation.
81.8 Representation.
81.9 Location of proceedings.
81.10 Ex parte communications.
81.11 Motions.
81.12 Filing requirements.
81.13 Mediation.
81.14 Settlement negotiations.
81.15 Evidence.
81.16 Discovery.
81.17 Privileges.
81.18 The record.
81.19 Costs and fees of parties.
81.20 Interlocutory appeals to the Secretary from rulings of an ALJ.
Subpart B_Hearings for Recovery of Funds
81.30 Basis for recovery of funds.
81.31 Measure of recovery.
81.32 Proportionality.
81.33 Mitigating circumstances.
81.34 Notice of a disallowance decision.
81.35 Reduction of claims.
81.36 Compromise of claims under General Education Provisions Act.
81.37 Application for review of a disallowance decision.
81.38 Consideration of an application for review.
81.39 Submission of evidence.
81.40 Burden of proof.
81.41 Initial decision.
81.42 Petition for review of initial decision.
81.43 Review by the Secretary.
81.44 Final decision of the Department.
81.45 Collection of claims.
Appendix to Part 81--Illustrations of Proportionality
Authority: 20 U.S.C. 1221e-3, 1234-1234i, and 3474(a), unless
otherwise noted.
Source: 54 FR 19512, May 5, 1989, unless otherwise noted.
Subpart A_General Provisions
Sec. 81.1 Purpose.
The regulations in this part govern the enforcement of legal
requirements under applicable programs administered by the Department of
Education and implement Part E of the General Education Provisions Act
(GEPA).
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.2 Definitions.
The following definitions apply to the terms used in this part:
Administrative Law Judge (ALJ) means a judge appointed by the
Secretary in accordance with section 451 (b) and (c) of GEPA.
Applicable program means any program for which the Secretary of
Education has administrative responsibility, except a program authorized
by--
(a) The Higher Education Act of 1965, as amended;
(b) The Act of September 30, 1950 (Pub. L. 874, 81st Congress), as
amended; or
(c) The Act of September 23, 1950 (Pub. L. 815, 81st Congress), as
amended.
Department means the United States Department of Education.
Disallowance decision means the decision of an authorized
Departmental official that a recipient must return funds because it made
an expenditure of funds that was not allowable or otherwise failed to
discharge its obligation to account properly for funds. Such a decision,
referred to as a ``preliminary departmental decision'' in section 452 of
GEPA, is subject to review by the Office of Administrative Law Judges.
Party means either of the following:
(a) A recipient that appeals a decision.
(b) An authorized Departmental official who issues a decision that
is appealed.
Recipient means the recipient of a grant or cooperative agreement
under an applicable program.
Secretary means the Secretary of the Department of Education or an
official or employee of the Department acting for the Secretary under a
delegation of authority.
(Authority: 20 U.S.C. 1221e-3, 1234 (b), (c), and (f)(1), 1234a(a)(1),
1234i, and 3474(a))
[54 FR 19512, May 5, 1989, as amended at 58 FR 43473, Aug. 16, 1993]
Sec. 81.3 Jurisdiction of the Office of Administrative Law Judges.
(a) The Office of Administrative Law Judges (OALJ) established under
section 451(a) of GEPA has jurisdiction to conduct the following
proceedings concerning an applicable program:
(1) Hearings for recovery of funds.
(2) Withholding hearings.
(3) Cease and desist hearings.
(b) The OALJ also has jurisdiction to conduct other proceedings
designated by the Secretary. If a proceeding or class of proceedings is
so designated, the Department publishes a notice of the designation in
the Federal Register.
(Authority: 5 U.S.C. 554, 20 U.S.C. 1234(a))
Sec. 81.4 Membership and assignment to cases.
(a) The Secretary appoints Administrative Law Judges as members of
the OALJ.
(b) The Secretary appoints one of the members of the OALJ to be the
chief judge. The chief judge is responsible for the efficient and
effective administration of the OALJ.
(c) The chief judge assigns an ALJ to each case or class of cases
within the jurisdiction of the OALJ.
(Authority: 20 U.S.C. 1221e-3, 1234 (b) and (c), and 3474(a))
Sec. 81.5 Authority and responsibility of an Administrative Law Judge.
(a) An ALJ assigned to a case conducts a hearing on the record. The
ALJ regulates the course of the proceedings and the conduct of the
parties to ensure a fair, expeditious, and economical resolution of the
case in accordance with applicable law.
(b) An ALJ is bound by all applicable statutes and regulations and
may neither waive them nor rule them invalid.
(c) An ALJ is disqualified in any case in which the ALJ has a
substantial interest, has been of counsel, is or has been a material
witness, or is so related to or connected with any party or the party's
attorney as to make it improper for the ALJ to be assigned to the case.
(d)(1) An ALJ may disqualify himself or herself at any time on the
basis of the standards in paragraph (c) of this section.
(2) A party may file a motion to disqualify an ALJ under the
standards in paragraph (c) of this section. A motion to disqualify must
be accompanied by an affidavit that meets the requirements of 5 U.S.C.
556(b). Upon the filing of such a motion and affidavit, the ALJ decides
the disqualification matter before proceeding further with the case.
(Authority: 5 U.S.C. 556(b); 20 U.S.C. 1221e-3, 1234 (d), (f)(1) and
(g)(1), and 3474(a))
Sec. 81.6 Hearing on the record.
(a) A hearing on the record is a process for the orderly
presentation of evidence and arguments by the parties.
(b) Except as otherwise provided in this part or in a notice of
designation under Sec. 81.3(b), an ALJ conducts the hearing entirely on
the basis of briefs and other written submissions unless--
(1) The ALJ determines, after reviewing all appropriate submissions,
that an evidentiary hearing is needed to resolve a material factual
issue in dispute; or
(2) The ALJ determines, after reviewing all appropriate submissions,
that oral argument is needed to clarify the issues in the case.
(c) At a party's request, the ALJ shall confer with the parties in
person or by conference telephone call before determining whether an
evidentiary hearing or an oral argument is needed.
Authority: 5 U.S.C. 556(d); 20 U.S.C. 1221e-3, 1234(f)(1), and 3474)
Sec. 81.7 Non-party participation.
(a) A person or organization, other than a party, that wishes to
participate in a case shall file an application to participate with the
ALJ assigned to the case. The application must--
(1) Identify the case in which participation is sought;
(2) State how the applicant's interest relates to the case;
(3) State how the applicant's participation would aid in the
disposition of the case; and
(4) State how the applicant seeks to participate.
(b) The ALJ may permit an applicant to participate if the ALJ
determines that the applicant's participation--
(1) Will aid in the disposition of the case;
(2) Will not unduly delay the proceedings; and
(3) Will not prejudice the adjudication of the parties' rights.
(c) If the ALJ permits an applicant to participate, the ALJ permits
the applicant to file briefs.
(d)(1) In addition to the participation described in paragraph (c)
of this section, the ALJ may permit the applicant to participate in any
or all of the following ways:
(i) Submit documentary evidence.
(ii) Participate in an evidentiary hearing afforded the parties.
(iii) Participate in an oral argument afforded the parties.
(2) The ALJ may place appropriate limits on an applicant's
participation to ensure the efficient conduct of the proceedings.
(e) A non-party participant shall comply with the requirements for
parties in Sec. 81.11 and Sec. 81.12.
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.8 Representation.
A party to, or other participant in, a case may be represented by
counsel.
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.9 Location of proceedings.
(a) An ALJ may hold conferences of the parties in person or by
conference telephone call.
(b) Any conference, hearing, argument, or other proceeding at which
the parties are required to appear in person is held in the Washington,
DC metropolitan area unless the ALJ determines that the convenience and
necessity of the parties or their representatives requires that it be
held elsewhere.
(Authority: 5 U.S.C. 554(b); 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.10 Ex parte communications.
A party to, or other participant in, a case may not communicate with
an ALJ on any fact in issue in the case or on any matter relevant to the
merits of the case unless the parties are given notice and an
opportunity to participate.
(Authority: 5 U.S.C. 554(d)(1), 557(d)(1)(A); 20 U.S.C. 1221e-3,
1234(f)(1), and 3474(a))
Sec. 81.11 Motions.
(a) To obtain an order or a ruling from an ALJ, a party shall make a
motion to the ALJ.
(b) Except for a request for an extension of time, a motion must be
made in writing unless the parties appear in person or participate in a
conference telephone call. The ALJ may require a party to reduce an oral
motion to writing.
(c) If a party files a motion, the party shall serve a copy of the
motion on the other party on the filing date by hand-delivery or by
mail. If agreed upon by the parties, service of the motion may be made
upon the other party by facsimile transmission.
(d) Except for a request for an extension of time, the ALJ may not
grant a party's written motion without the consent of the other party
unless the other party has had at least 21 days from the date of service
of the motion to respond. However, the ALJ may deny a motion without
awaiting a response.
(e) The date of service of a motion is determined by the standards
for determining a filing date in Sec. 81.12(d).
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
[54 FR 19512, May 5, 1989, as amended at 57 FR 56795, Nov. 30, 1992]
Sec. 81.12 Filing requirements.
(a) Any written submission to an ALJ or the OALJ under this part
must be filed by hand-delivery, by mail, or by facsimile transmission.
The Secretary discourages the use of facsimile transmission for
documents longer than five pages.
(b) If a party files a brief or other document with an ALJ or the
OALJ, the party shall serve a copy of the filed material on the other
party on the filing date by hand-delivery or by mail. If agreed upon by
the parties, service of a document may be made upon the other party by
facsimile transmission.
(c) Any written submission to an ALJ or the OALJ must be accompanied
by a statement certifying the date that the filed material was filed
and served on the other party.
(d)(1) The filing date for a written submission to an ALJ or the
OALJ is the date the document is--
(i) Hand-delivered;
(ii) Mailed; or
(iii) Sent by facsimile transmission.
(2) If a scheduled filing date falls on a Saturday, Sunday, or
Federal holiday, the filing deadline is the next business day.
(e) A party filing by facsimile transmission is responsible for
confirming that a complete and legible copy of the document was received
by the Department.
(f) If a document is filed by facsimile transmission, a follow-up
hard copy must be filed by hand-delivery or by mail within a reasonable
period of time.
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
[54 FR 19512, May 5, 1989, as amended at 57 FR 56795, Nov. 30, 1992]
Sec. 81.13 Mediation.
(a) Voluntary mediation is available for proceedings that are
pending before the OALJ.
(b) A mediator must be independent of, and agreed to by, the parties
to the case.
(c) A party may request mediation by filing a motion with the ALJ
assigned to the case. The OALJ arranges for a mediator if the parties to
the case agree to mediation.
(d) A party may terminate mediation at any time. Mediation is
limited to 120 days unless the mediator informs the ALJ that--
(1) The parties are likely to resolve some or all of the dispute;
and
(2) An extension of time will facilitate an agreement.
(e) The ALJ stays the proceedings during mediation.
(f)(1) Evidence of conduct or statements made during mediation is
not admissible in any proceeding under this part. However, evidence that
is otherwise discoverable may not be excluded merely because it was
presented during mediation.
(2) A mediator may not disclose, in any proceeding under this part,
information acquired as a part of his or her official mediation duties
that relates to any fact in issue in the case or any matter relevant to
the merits of the case.
(Authority: 20 U.S.C. 1221e-3, 1234 (f)(1) and (h), and 3474(a))
Sec. 81.14 Settlement negotiations.
(a) If the parties to a case file a joint motion requesting a stay
of the proceedings for settlement negotiations, or for approval of a
settlement agreement, the ALJ may grant a stay of the proceedings upon a
finding of good cause.
(b) Evidence of conduct or statements made during settlement
negotiations is not admissible in any proceeding under this part.
However, evidence that is otherwise discoverable may not be excluded
merely because it was presented during settlement negotiations.
(c) The parties may not disclose the contents of settlement
negotiations to the ALJ. If the parties enter into a settlement
agreement and file a joint motion to dismiss the case, the ALJ grants
the motion.
(Authority: 20 U.S.C. 554(c)(1), 1221e-3, 1234(f)(1), and 3474(a))
[54 FR 19512, May 5, 1989, as amended at 58 FR 43473, Aug. 16, 1993]
Sec. 81.15 Evidence.
(a) The Federal Rules of Evidence do not apply to proceedings under
this part. However, the ALJ accepts only evidence that is--
(1) Relevant;
(2) Material;
(3) Not unduly repetitious; and
(4) Not inadmissible under Sec. 81.13 or Sec. 81.14.
(b) The ALJ may take official notice of facts that are generally
known or capable of accurate and ready determination by resort to
sources whose accuracy cannot reasonably be questioned.
(Authority: 5 U.S.C. 556 (d) and (e); 20 U.S.C. 1221e-3, 1234(f)(1), and
3474(a))
Sec. 81.16 Discovery.
(a) The parties to a case are encouraged to exchange relevant
documents and information voluntarily.
(b) The ALJ, at a party's request, may order compulsory discovery
described in paragraph (c) of this section if the ALJ determines that--
(1) The order is necessary to secure a fair, expeditious, and
economical resolution of the case;
(2) The discovery requested is likely to elicit relevant information
with respect to an issue in the case;
(3) The discovery request was not made primarily for the purposes of
delay or harassment; and
(4) The order would serve the ends of justice.
(c) If a compulsory discovery is permissible under paragraph (b) of
this section, the ALJ may order a party to do one or more of the
following:
(1) Make relevant documents available for inspection and copying by
the party making the request.
(2) Answer written interrogatories that inquire into relevant
matters.
(3) Have depositions taken.
(d) The ALJ may issue a subpoena to enforce an order described in
this section and may apply to the appropriate court of the United States
to enforce the subpoena.
(e) The ALJ may not compel the discovery of information that is
legally privileged.
(f)(1) The ALJ limits the period for discovery to not more than 90
days but may grant an extension for good cause.
(2) At a party's request, the ALJ may set a specific schedule for
discovery.
(Authority: 20 U.S.C. 1234(f)(1) and (g))
Sec. 81.17 Privileges.
The privilege of a person or governmental organization not to
produce documents or provide information in a proceeding under this part
is governed by the principles of common law as interpreted by the courts
of the United States.
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.18 The record.
(a) The ALJ arranges for any evidentiary hearing or oral argument to
be recorded and transcribed and makes the transcript available to the
parties. Transcripts are made available to non-Departmental parties at a
cost not to exceed the actual cost of duplication.
(b) The record of a hearing on the record consists of--
(1) All papers filed in the proceeding;
(2) Documentary evidence admitted by the ALJ;
(3) The transcript of any evidentiary hearing or oral argument; and
(4) Rulings, orders, and subpoenas issued by the ALJ.
(Authority: 5 U.S.C. 556(e), 557(c); 20 U.S.C. 1221e-3(a)(1),
1234(f)(1), 3474(a))
[54 FR 19512, May 5, 1989, as amended at 58 FR 43473, Aug. 16, 1993]
Sec. 81.19 Costs and fees of parties.
The Equal Access to Justice Act, 5 U.S.C. 504, applies by its terms
to proceedings under this part. Regulations under that statute are in 34
CFR part 21.
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))
Sec. 81.20 Interlocutory appeals to the Secretary from rulings of an
ALJ.
(a) A ruling by an ALJ may not be appealed to the Secretary until
the issuance of an initial decision, except that the Secretary may, at
any time prior to the issuance of an initial decision, grant review of a
ruling upon either an ALJ's certification of the ruling to the Secretary
for review, or the filing of a petition seeking review of an interim
ruling by one or both of the parties, if--
(1) That ruling involves a controlling question of substantive or
procedural law; and
(2) The immediate resolution of the question will materially advance
the final disposition of the proceeding or subsequent review will be an
inadequate remedy.
(b)(1) A petition for interlocutory review of an interim ruling must
include the following:
(i) A brief statement of the facts necessary to an understanding of
the issue on which review is sought.
(ii) A statement of the issue.
(iii) A statement of the reasons showing that the ruling complained
of involves a controlling question of substantive or procedural law and
why immediate review of the ruling will materially advance the
disposition of the case, or why subsequent review will be an inadequate
remedy.
(2) A petition may not exceed ten pages, double-spaced, and must be
accompanied by a copy of the ruling and any findings and opinions
relating to the ruling. The petition must be filed with the Office of
Hearings and Appeals, which immediately forwards the petition to the
Office of the Secretary.
(c) A copy of the petition must be provided to the ALJ at the time
the petition is filed under paragraph (b)(2) of this section, and a copy
of a petition or any certification must be served upon the parties by
certified mail, return receipt requested. The petition or certification
must reflect that service.
(d) If a party files a petition under this section, the ALJ may
state to the Secretary a view as to whether review is appropriate or
inappropriate by submitting a brief statement addressing the party's
petition within 10 days of the ALJ's receipt of the petition for
interlocutory review. A copy of the statement must be served on all
parties by certified mail, return receipt requested.
(e)(1) A party's response, if any, to a petition or certification
for interlocutory review must be filed within seven days after service
of the petition or certification, and may not exceed ten pages, double-
spaced, in length. A copy of the response must be filed with the ALJ by
hand delivery, by regular mail, or by facsimile transmission.
(2) A party shall serve a copy of its response on all parties on the
filing date by hand-delivery or regular mail. If agreed upon by the
parties, service of a copy of the response may be made upon the other
parties by facsimile transmission.
(f) The filing of a request for interlocutory review does not
automatically stay the proceedings. Rather, a stay during consideration
of a petition for review may be granted by the ALJ if the ALJ has
certified or stated to the Secretary that review of the ruling is
appropriate. The Secretary may order a stay of proceedings at any time
after the filing of a request for interlocutory review.
(g) The Secretary notifies the parties if a petition or
certification for interlocutory review is accepted, and may provide the
parties a reasonable time within which to submit written argument or
other existing material in the administrative record with regard to the
merit of the petition or certification.
(h) If the Secretary takes no action on a request for interlocutory
review within 15 days of receipt of it, the request is deemed to be
denied.
(i) The Secretary may affirm, modify, set aside, or remand the ALJ's
ruling.
(Authority: 5 U.S.C. 557(b); 20 U.S.C. 1234(f)(1))
[58 FR 43473, Aug. 16, 1993]
EDGAR version June 23, 2005
