(a) Within 20 days after the termination of all informal conference
proceedings, or, if no informal conference is held, at the conclusion
of the period permitted by Sec. 725.410(b) for the submission of
evidence, the district director shall issue a proposed decision and
order. A proposed decision and order is a document, issued by the
district director after the evidentiary development of the claim is
completed and all contested issues, if any, are joined, which purports
to resolve a claim on the basis of the evidence submitted to or
obtained by the district director. A proposed decision and order shall
be considered a final adjudication of a claim only as provided in
Sec. 725.419. A proposed decision and order may be issued by the
district director at any time during the adjudication of any claim if:
(1) Issuance is authorized or required by this part; or,
(2) The district director determines that its issuance will
expedite the adjudication of the claim.
(b) A proposed decision and order shall contain findings of fact
and conclusions of law. It shall be served on all parties to the claim
by certified mail.
(c) The proposed decision and order shall contain a notice of the
right of any interested party to request a formal hearing before the
Office of Administrative Law Judges. If the proposed decision and order
is a denial of benefits, and the claimant has previously filed a
request for a hearing, the proposed decision and order shall notify the
claimant that the case will be referred for a hearing pursuant to the
previous request unless the claimant notifies the district director
that he no longer desires a hearing. If the proposed decision and order
is an award of benefits, and the designated responsible operator has
previously filed a request for a hearing, the proposed decision and
order shall notify the operator that the case will be referred for a
hearing pursuant to the previous request unless the operator notifies
the district director that it no longer desires a hearing.
(d) The proposed decision and order shall reflect the district
director's final designation of the responsible operator liable for the
payment of benefits. No operator may be finally designated as the
responsible operator unless it has received notification of its
potential liability pursuant to Sec. 725.407, and the opportunity to
submit additional evidence pursuant to Sec. 725.410. The district
director shall dismiss, as parties to the claim, all other potentially
liable operators that received notification pursuant to Sec. 725.407
and that were not previously dismissed pursuant to Sec. 725.410(a)(3).
