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Sec. 1720.165 Hearings—suspension order issued

pursuant to $ 1710.45(b) (2) of

this chapter. 1720.170 Intervention by interested persons. 1720.175 Consolidation. 1720.190 Administrative law judge, powers

and duties. 1720.195 Prehearing conferences. 1720.200 Reporting-prehearing confer

ences. 1720.205 Amendments and supplemental

pleadings. 1720.210 Policy. 1720.215 Ex parte communications. 1720.220 Disqualification of administrative

law judge. 1720.225 Failure to comply with adminis

trative law judge's directions. 1720.230 Motions-filing requirements. 1720.235 Answers to motions. 1720.240 Motions for extension. 1720.245 Rulings on motions for dismissal. 1720.250 Interlocutory review of administra

tive law judge's rulings. 1720.255 Presentation and admission of evi

dence. 1720.260 Production of witnesses' state

ments. 1720.265 Depositions and discovery. 1720.270. Subpoenas ad testificandum. 1720.275 Subpoenas duces tecum. 1720.280 Motion to limit or quash. 1720.285 Rulings on applications for com

pulsory process; appeals. 1720.290 Form of and rulings on applica

tions for subpoenas for confidential records of the Office of Interstate Land Sales Registration; for appearance of employees; ap

peals; review. 1720.300 Official notice. 1720.320 Reporting and transcription. 1720.325 Corrections. 1720.330 Proposed findings, conclusions,

and order. 1720.345 Initial decisions: Time for filing;

when effective. 1720.350 Initial decision-content. 1720.360 Reopening of proceeding by ad

ministrative law judge; termina

tion of jurisdiction. 1720.365 Appeal from initial decision. 1720.375 Answering brief. 1720.380 Reply brief. 1720.385 Length and form of briefs. 1720.390 Oral argument. 1720.400 Decision on appeal or review. 1720.405 Reconsideration.

Subpart F-Interstate Land Sales Board and

Appeals Officers Sec. 1720.500 Functions of the Interstate Land

Sales Board and appeals officers. 1720.510 Composition of the Interstate Land

Sales Board. 1720.520 Decisions of appeals officer. 1720.525 Reconsideration of final decision

of appeals officer. 1720.530 Department representative.

AUTHORITY: The provisions of this part 1720 are issued under sec. 1419 of the Interstate Land Sales Full Disclosure Act, 82 Stat. 598; 15 U.S.C. 1718.

SOURCE: 38 FR 23899, Sept. 4, 1973, unless otherwise noted.

Subpart A-Rules and Rule Making § 1720.1 Scope of rules in this subpart.

The rules in this subpart apply to and govern procedure for the promulgation of rules and regulations under the Act. The rules in this subpart do not apply to interpretative rules, general statements of policy, rules of organization procedure, or practice or in any situation in which the Secretary for good cause finds (and incorporates the findings and brief statement of the reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary or contrary to the public interest. $ 1720.5 Initiation of proceedings.

Proceedings for the issuance of rules and regulations may be commenced by the Secretary upon his own initiative or pursuant to petition filed with the Secretary by any interested person stating reasonable grounds therefor. If the Secretary determines that a petition is not sufficient to warrant the holding of a rule making proceeding, the petitioner shall be promptly notified and given an opportunity to submit additional data. Procedures for the amendment or repeal of a rule or regulation are the same as for the issuance thereof. § 1720.10 Investigations and confer

ences. (a) In connection with a rule making proceeding, the Secretary may conduct such investigations, make such studies and hold such conferences as he may deem necessary. All or any part of such investigations may be conducted under the provisions of Subpart C of this part.

(b) At any such conferences, interested persons may appear to express views and suggest amendments relative to proposed rules and regulations.

Subpart E-Miscellaneous Rules 1720.410 Qualifications for appearances. 1720.415 Restrictions on appearances as to

former officers and employees. 1720.425 Standards of practice. 1720.430 Form and filing requirements. 1720.435 Time computation. 1720.440 Service.

f 1720.15 Notice.

General notice of proposed rule making shall be published in the FEDERAL REGISTER and, to the extent practicable, otherwise made available to interested persons. Such notice shall include a statement of the time, place and nature of the proceeding; reference to the authority under which the rule or regulation is proposed; either the terms or substance of the proposed rule or regulation or a description of the subjects and issues involved and the manner in which interested persons shall be afforded the opportunity to participate in the proceeding. If the rule making proceeding was instituted pursuant to petition, a copy of the notice shall be served on the petitioner. 8 1720.20 Promulgation of rules and

regulations. The Secretary, after consideration of all relevant matters of fact, law, policy and discretion, including all relevant matters presented by interested persons in the rule making proceedings, shall adopt and publish in the FEDERAL REGISTER an appropriate rule or regulation together with a concise general statement of its basis and purpose and any necessary findings; or the Secretary shall give other appropriate public notice of disposition of the rule making proceeding. § 1720.25 Effective date of rules and

regulations. The effective date of any rule or regulation or of an amendment, suspension, or repeal of any rule or regulation shall be specified in a notice published in the FEDERAL REGISTER. Such date shall not be less than 30 days after the date of such publication unless the Secretary specifies an earlier effective date for good cause found and published with the rule or regulation.

Subpart B-Filing Assistance § 1720.30 Scope of this subpart.

The rules in this subpart apply to and govern procedures under which developers may obtain prefiling assistance and be notified of and permitted to correct deficiencies in the Statement of Record. $ 1720.35 Prefiling assistance.

Persons intending to file with the Office of Interstate Land Sales Registration

may receive advice of a general nature as to the preparation of the filing, including information as to proper format to be used and the scope of the items to be included in the format. Inquiries and requests for informal discussions with staff members should be directed to the Administrator, Ofice of Interstate Land Sales Registration, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20411. § 1720.40 Processing of filings.

(a) Statements of Record and accompanying filing fees will be received on behalf of the Secretary by the Administrator, Office of Interstate Land Sales Registration, for determination of (1) completeness of the statement, (2) adequacy of the filing fee and (3) adequacy of disclosure. Where it appears that all three criteria are satisfied and it is otherwise practicable, acceleration of the effectiveness of the Statement of Record will normally be granted.

(b) Filings intended as Statements of Record but which do not comply in form with $$ 1710.105 and 1710.120 of this chapter, whichever is applicable, and Statements of Record accompanied by inadequate filing fees will not be accepted as Statements of Record within the meaning of the Act and will not be effective to accomplish any purpose under the Act. At the discretion of the Administrator, such filings and any moneys accompanying them may be immediately returned to the sender or after notification may be held pending the sender's appropriate response.

(c) Persons filing incomplete or inaccurate Statements of Record which are nevertheless, correct in form and accompanied by adequate filing fees will be notified and given reasonable opportunity to correct deficiencies. Failure to correct will result in the application of the suspension procedures in 1710.45 of this chapter. 138 FR 23899, Sept. 4, 1973; 38 FR 32445, Nov. 26, 1973]

Subpart C-Formal Investigations § 1720.45 Scope of rules in this subpart.

(a) The rules in this subpart apply to and govern procedures for the conduct of formal inquiries and investigations undertaken by the Secretary and the manner in which persons alleged to have

violated the Act or the rules and regulations may be afforded an opportunity to comply voluntarily with the Act and the rules and regulations.

(b) The Secretary or his designee may make inquiries and investigations to determine whether any person has violated or is about to violate any provision of the Act or the rules and regulations, or to aid in the enforcement of the Act, or in prescribing rules and regulations thereunder or in securing information to serve as a basis for recommending further legislation. The Secretary or his designee shall have the authority to administer oaths and affirmations in any matter under investigation. $ 1720.55 Violations, investigations or

inquiries. In connection with a formal investigation or inquiry involving an alleged or suspected violation or threatened violation of the Act or rules and regulations, the Secretary may require or permit any person to file with him a signed statement setting forth facts and circumstances known to such person and relevant to the investigation or inquiry. The Secretary may publish or otherwise divulge information concerning any violation of the Act or the rules and regulations. $ 1720.70 Subpoenas in investigations.

(a) The Secretary or his designee may issue subpoenas relating to any matter under investigation for any or all of the following purposes:

(1) Requiring testimony to be taken by interrogatories.

(2) Requiring the attendance and testimony of witnesses at a specfic time and place.

(3) Requiring access to, examination of and the right to copy documents, books, records, and papers.

(4) Requiring the production of documents, books, records, and papers at a specified time and place.

(b) A motion to limit or quash any such subpoena may be filed with the Secretary or his designee within 10 days after service of the subpoena, and in no event less than 72 hours prior to the return date and hour of such subpoena. $ 1720.75 Investigational proceedings.

(a) For the purpose of hearing the testimony of witnesses and receiving documents and other data relating to

any subject under investigation, investigational proceedings, as distinguished from adjudicative hearings, may be conducted in the course of any investigation including rule making proceedings under Subpart A of this part.

(b) Investigational proceedings shall be presided over by the Secretary or his designee and shall be stenographically or mechanically reported. A transcript shall be a part of the record of the investigation.

(c) Unless the Secretary or his designee determines otherwise investigational proceedings shall be public. $ 1720.80 Rights of witnesses in investi.

gations. (a) Any person compelled to testify or to submit data in connection with any investigational proceedings shall be entitled to retain a copy or, on payment of lawfully prescribed costs, procure a copy of any data submitted by him and of his own testimony as stenographically or mechanically reported, except that in a nonpublic proceeding the witness may for good cause be limited to inspection of the official transcript of his testimony.

(b) Any witness compelled to appear in person in an investigational proceeding may be accompanied, represented, and advised by counsel as follows:

(1) Counsel for a witness may advise his client, in confidence, and upon initiative of either himself or the witness, with respect to any question asked of his client; and if the witness refuses to answer a question, then counsel may briefly state on the record if he has advised his client not to answer the question and the legal grounds for such refusal.

(2) Where it is claimed that the testimony or other evidence sought from a witness is outside the scope of the investigation, or it is claimed that the witness is privileged to refuse to answer a question or to produce other evidence, counsel for the witness may object on the record to the question or requirement and may state briefly and precisely the grounds thereof.

(3) Objections interposed under the rules in this subpart will be continuing objections throughout the course of the proceeding, and repetitious or cumulative statement of an objection or of the grounds therefore, in such cases, is unnecessary and impermissible.

(4) Counsel for a witness may not, for any purpose or to any extent not allowed by subparagraphs (1) and (2) of this paragraph, interrupt the examination of the witness by making any objections or statements on the record. Motions challenging the ority of the Secretary to conduct the investigation or the sufficiency or legality of the subpoena must have been addressed to the Secretary in advance of the proceeding. Copies of such motions may be filed with the presiding official at the proceeding as part of the record of the investigation, but no argument in support thereof will be allowed at the proceeding.

(5) Upon completion of the examination of a witness, counsel for the witness may request that on the record the presiding official permit the witness to clarify any of his answers in order that specified points of ambiguity, equivocation, or incompleteness may be corrected. The granting or denial of such request, in whole or in part, shall be within the sole discretion of the presiding official.

(6) The presiding official shall take all necessary action to regulate the course of the proceeding to avoid delay and to prevent or restrain disorderly, dilatory, obstructionist or contumacious conduct or contemptuous language. Such oficial shall, for reasons stated on the record, immediately report to the Secretary any instances where an attorney or witness has failed or refused to comply with his directions, lawful rules, regulations or orders in the course of the proceedings or has engaged in disorderly, dilatory, obstructionist, or contumacious conduct or contemptuous language. The Secretary or his designee may exclude the attorney or witness from further participation in the particular investigation. & 1720.85 Noncompliance.

Failure to comply with the Secretary's investigational process may result in action pursuant to section 1415 of the Act. § 1720.90 Disposition.

(a) When investigation by the Secretary indicates that corrective action is warranted, the Secretary pursuant to $ 1710.45(b) (2) of this chapter may issue a suspension order: Provided, however, That any person being investigated may be afforded an opportunity to submit to the Secretary a proposal for disposition of the matter in the form of an executed settlement agreement complying with

the requirements of $ 1720.100 for consideration by the Secretary.

(b) When an investigation discloses that corrective action is not necessary or warranted in the public interest for the protection of purchasers or lessees, the investigational file will be closed. The matter may at any time thereafter be reinvestigated if circumstances so warrant. § 1720.100 Settlements.

(a) Offer of settlement.-At any time during a proceeding, parties may be afforded an opportunity to submit to the Secretary or his designee a written proposal for disposition of the matter in the form of a settlement offer.

(b) Settlement agreements.- When the Secretary or his designee determines the public interest will be fully safeguarded thereby he may accept an executed offer of settlement. Where the. Secretary or his designee rejects an offer of settlement, the party making the offer shall be notified and the offer of settlement shall be deemed withdrawn and such offer and any documents relating thereto shall not constitute a part of the record.

Subpart D-Proceedings and Hearings 8 1720.110 Scope of rules in this sub

part. The rules in this subpart are applicable to adjudicative proceedings which involve a hearing or opportunity for a hearing under the Interstate Land Sales Full Disclosure Act. § 1720.115 Applicability of sections of

this subpart. Succeeding sections of this subpart not. specifically limited in applicability either to hearings conducted subsequent to a. suspension notice under $ 1710.45(a) of this chapter, to a notice of proceedings under $ 1710.45(b) (1) of this chapter, or to hearings conducted subsequent to & suspension order issued pursuant to paragraph (2) of $ 1710.45(b) of this chapter, shall apply to all such hearings. f 1720.120 Suspension notice under

§ 1710.45(a) of this chapter. A suspension pursuant to $ 1710.45(a) of this chapter shall be effected by service of a suspension notice which shall contain:

(a) An identification of the filing to which the notice applies.

(b) A specification of the deficiencies of form, disclosure, accuracy, documen

tation or fee tender which constitute the grounds, under $ 1710.45 (a) of this chapter, of the suspension, and of the additional or corrective procedure, information, documentation, or tender which will satisfy the Secretary's requirements.

(c) A notice of the hearing rights of the developer under $ 1720.155, and of the procedures for invoking those rights.

(d) A notice that, unless otherwise ordered, the suspension shall remain in effect until 30 days after the developer cures the specified deficiencies as required by the notice. § 1720.125 Notice of proceedings pur.

suant to § 1710.45(b) (1) of this

chapter. A proceeding pursuant to $ 1710.45 (b) (1) of this chapter is commenced by issuance and service of a notice which shall contain:

(a) A clear and accurate identification of the filing or filings to which the notice relates.

(b) A clear and concise statement of material facts, sufficient to irform the respondent with reasonable definiteness of the statements, omissions, conduct, circumstances or practices alleged to constitute the grounds for the proposed suspension order under $ 1710.45(b) (1) of this chapter.

(c) Specification of a time and place at which the developer shall have opportunity for hearing.

(d) Designation of the administrative law judge appointed to preside over prehearing procedures and over

the hearings.

(e) A notice that failure to file an answer or motion as provided under $ 1720.140 will result in an order suspending the Statement of Record. § 1720.130 Suspension order under

$ 1710.45(b) (2) of this chapter. A suspension pursuant to $ 1710.45(b) (2) of this chapter shall be effected by service of a suspension order which shall contain:

(a) An identification of the filing to which the order applies.

(b) Bases for issuance of order.

(c) A notice of the hearing rights of the developer under $ 1720.165 and of the procedures for invoking those rights.

(d) A statement that the order shall remain in effect until the developer has complied with the Secretary's requirements.

8 1720.131 Suspension order under

& 1710.45(b) (3). A suspension pursuant to subparagraph (3) of $ 1710.45(b) of this chapter shall be effected by service of a suspension order which shall contain:

(a) An identification of the filling to which the order applies;

(b) An identification of the amendment to the filing;

(c) A statement that the issuance of the order is necessary or appropriate in the public interest or for the protection of purchasers; and

(d) A statement that the order shall remain in effect until the amendment becomes effective. § 1720.134 Presumption of hearing re

quest. When an answer or motion to a notice of proceedings is timely filed, but a respondent has failed specifically to request a hearing, his filing shall be deemed to constitute such a request. $ 1720.135 Motion for more definite

statement. Where a reasonable showing is made by a respondent of his inability to respond to the allegations in a suspension notice or a notice of proceedings, motion may be made requesting a more definite statement of the allegations before filing an answer. Such motion shall be filed with the Secretary or his designee within 5 days after service of the notice and shall specifically indicate in what manner the notice is indefinite or defective. f 1720.140 Time for filing answer to

notice of proceedings. (a) Within 15 days after service of the notice of proceedings, the respondent shall file with the Secretary or his designee an answer and three copies thereof signed by the respondent or his attorney. Unless a different time is fixed by the Secretary or his designee, the filing of a motion for a more definite statement of the allegations shall alter the period of time in which to file an answer as follows:

(1) If the motion is denied, the answer shall be filed within 15 days after service of the denial.

(2) If the motion is granted, in whole or in part, the more definite statement of allegations shall be filed after service of the order granting the motion and the

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