New York Codes, Rules and Regulations
Title 8 - EDUCATION DEPARTMENT
Chapter XX - Higher Education Services Corporation
Subchapter A - Administration
Part 2006 - Suspension And Limitation Of Awards Participation
Section 2006.3 - Procedures

Universal Citation: 8 NY Comp Codes Rules and Regs ยง 2006.3

Current through Register Vol. 46, No. 39, September 25, 2024

(a) Informal compliance. If the president receives a complaint, or has other information which indicates that a violation of applicable laws, regulations, agreements or limitations has occurred or is occurring, the president may informally call such matter to the attention of the institution involved and shall give such institution a reasonable opportunity to respond to the allegation and, if the alleged violation occurred, to show that it has been corrected or to submit an acceptable plan as to those measures which will be undertaken to correct the violation and to prevent its recurrence. Undertaking informal compliance procedures under this subdivision shall not prevent the president from instituting limitation, suspension or termination proceedings or from imposing sanctions, based upon the same allegations or violations.

(b) Formal sanctions.

(1) In the event that the president receives sufficient evidence of the violations set forth in section 2006.5 of this Part or determines that there is a reasonable likelihood that an institution has violated any statute, regulation, the terms of its participation agreement or the terms of any previous action taken pursuant to this Part, a limitation, suspension or termination proceeding may be commenced. The institution of suspension proceedings or any suspension imposed shall not operate to waive the corporation's right to take action based upon the violations found to exist, including but not limited to the taking of limitation or termination proceedings or the imposition of such sanctions. A limitation, suspension or termination may be formally initiated whether or not the president has utilized the informal compliance procedure.

(2) The president shall initiate limitation, suspension or termination procedures by mailing a notice to the institution in question, by certified mail with return receipt requested:
(i) informing the institution of the corporation's intent to limit, suspend or terminate the institution's continued eligibility to participate in programs hereunder, the nature of any proposed action and the basis of such action;

(ii) specifying the proposed effective date for the limitation, suspension or termination and the consequences of such action; and

(iii) informing the institution of its rights, if exercised within a stated period of time, to submit written material and to request a hearing before the limitation, suspension or termination takes effect. The notice shall also provide information pertaining to this proceeding as the president may determine to be appropriate. The notice shall also invite voluntary efforts to correct the violation which led to the initiation of this action.

(3) If the institution requests a hearing within the time permitted, such hearing shall be conducted as promptly as possible by the presiding officer pursuant to the provisions of Part 2005 of this Title.

(4) If the institution does not request a hearing, the president may, after considering any written material submitted on a timely basis by the institution, dismiss the matter or notify the institution that action has been taken and of the terms of such action.

(c) Emergency action. Notwithstanding the notice and hearing procedures of this section, the president may, without prior notice, take immediate action to suspend payments and prepayments of awards if he or she determines that such action is necessary in order to prevent or minimize an unreasonable risk of substantial loss or misuse of funds provided pursuant to Subchapter C of this Title. Such emergency action shall be initiated by sending the institution notice, by certified mail, informing the institution of the suspension and the grounds therefor. Such emergency action shall not exceed seven days in length unless limitation, suspension or termination proceedings are initiated, pursuant to this Part, concurrently or within such seven-day period. If limitation, suspension or termination proceedings are so commenced, the president will afford the institution an opportunity to demonstrate why the suspension should be rescinded during the pendency of such proceedings.

(d) Effective date. Except as provided in subdivision (c) of this section, the proposed effective date of limitation shall not be less than 21 days after the notice of intent has been sent. The period of time within which the institution may submit written material or request a hearing shall not be less than 15 days after such notice has been sent. If a hearing requested by the institution cannot reasonably be held prior to the proposed effective date of the limitation, the president may extend the date of limitation until the completion of such proceedings.

(e) Effect of prior proceedings. If any proceedings have been previously initiated under this Subchapter against an institution at the time limitation proceedings are initiated, such proceedings need not duplicate the previous proceedings. Any matters resolved under the previous proceedings shall be considered final and any hearings undertaken in the subsequent limitation proceedings shall be limited to new evidence or new issues; provided, however, that the presiding officer may, in his or her discretion, agree to reconsider matters previously resolved. Moreover, the time schedules set forth in paragraphs (b)(2), (3) and (4) of this section may be shortened to reflect the previous proceedings in such manner as the presiding officer may deem appropriate.

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