34 CFR 366.40 - How does the Director initiate enforcement procedures?
(a) If the Director determines that any center receiving funds under this part is not in compliance with the standards and assurances in section 725 (b) and (c) of the Act and subparts F and G of this part, the Director shall immediately provide the center, by certified mail, return receipt requested, or other means that provide proof of receipt, with an initial written notice that the center is out of compliance with the standards and assurances and that the Director will terminate the center's funds or take other proposed significant adverse action against the center 90 days after the center's receipt of this initial written notice. The Director shall provide technical assistance to the center to develop a corrective action plan to comply with the standards and assurances.
(b) Unless the center submits, within 90 days after receiving the notification required by paragraph (a) of this section, a corrective action plan to achieve compliance that is approved by the Director or, if appealed, by the Secretary, the Director shall terminate all funds under section 723 of the Act to a center 90 days after the later of -
(1) The date that the center receives the initial written notice required by paragraph (a) of this section; or
(2) The date that the center receives the Secretary's final decision issued pursuant to § 366.46(c) if -
(i) The center files a formal written appeal of the Director's final written decision pursuant to § 366.44(a); or
(ii) The center files a formal written appeal of the decision described in the Director's initial written notice pursuant to § 366.44(b).