(a) Initial Decision. After the hearing, the Administrative Law
Judge must issue an initial decision and order, containing findings of
fact and conclusions of law. The initial decision and order must be
served on all parties by certified mail, return receipt requested.
(b) Exceptions; Final Decision. (1) Final decision after a hearing.
The initial decision and order becomes the Final Decision and Order of
the Secretary unless exceptions are filed by a party or, in the absence
of exceptions, the Secretary serves notice that he or she will review
the decision.
(i) A party dissatisfied with the initial decision and order may,
within 45 days of receipt, file with the Secretary and serve on the
other parties to the proceedings and on the Administrative Law Judge,
exceptions to the initial decision and order or any part thereof.
(ii) Upon receipt of exceptions, the Administrative Law Judge must
index and forward the record and the initial decision and order to the
Secretary within three days of such receipt.
(iii) A party filing exceptions must specifically identify the
finding or conclusion to which exception is taken. Any exception not
specifically urged is waived.
(iv) Within 45 days of the date of filing such exceptions, a reply,
which must be limited to the scope of the exceptions, may be filed and
served by any other party to the proceeding.
(v) Requests for extensions for the filing of exceptions or replies
must be received by the Secretary no later than 3 days before the
exceptions or replies are due.
(vi) If no exceptions are filed, the Secretary may, within 30 days
of the expiration of the time for filing exceptions, on his or her own
motion serve notice on the parties that the Secretary will review the
decision.
(vii) Final Decision and Order.
(A) Where exceptions have been filed, the initial decision and
order of the Administrative Law Judge becomes the Final Decision and
Order of the Secretary unless the Secretary, within 30 days of the
expiration of the time for filing exceptions and replies, has notified
the parties that the case is accepted for review.
(B) Where exceptions have not been filed, the initial decision and
order of the Administrative Law Judge becomes the Final Decision and
Order of the Secretary unless the Secretary has served notice on the
parties that he or she will review the decision, as provided in
paragraph (b)(1)(vi) of this section.
(viii) Any case reviewed by the Secretary under this paragraph must
be decided within 180 days of the notification of such review. If the
Secretary fails to issue a Final Decision and Order within the 180-day
period, the initial decision and order of the Administrative Law Judge
becomes the Final Decision and Order of the Secretary.
(2) Final Decision where a hearing is waived.
(i) If, after issuance of a Final Determination under Sec. 37.100
or Notification of Breach of Conciliation Agreement under Sec. 37.104,
voluntary compliance has not been achieved within the time set by this
part and the opportunity for a hearing has been waived as provided for
in Sec. 37.111(b)(4), the Final Determination or Notification of Breach
of Conciliation Agreement becomes the Final Decision of the Secretary.
(ii) When a Final Determination or Notification of Breach of
Conciliation Agreement becomes the Final Decision of the Secretary, the
Secretary may, within 45 days, issue an order terminating or denying
the grant or continuation of assistance or imposing other appropriate
sanctions for the grant applicant or recipient's failure to comply with
the required corrective and/or remedial actions, or referring the
matter to the Attorney General for further enforcement action.
(3) Final agency action. A Final Decision and Order issued under
Sec. 37.112(b) constitutes final agency action.
