(a) Within 60 days after receipt of an application, the executive director shall notify the county of the Commission, hearing panel, or hearing officer's preliminary decision that the county did or did not make a compelling case that it will incur significant financial distress pursuant to Welfare and Institutions Code section 17000.6. If the time period is extended pursuant to section 1182.3 of these regulations, notice of the preliminary decision shall be provided within 120 days after receipt of an application, or as otherwise provided by the current Budget Act.

(b) If an application is heard by a hearing panel, the panel shall direct staff to prepare the preliminary decision in a form that may be adopted as the final decision by the Commission. When an application is heard by a hearing officer, a preliminary decision shall be presented in a form that may be adopted by the Commission as its final decision on the application. When an application is heard before the Commission itself the Commission shall direct staff to prepare a final decision in accord with the Commission's vote, which will be presented to the Commission for adoption as its final decision.

(c) Within 90 days after receipt of an application, the executive director shall give notice to the county of the Commission's final decision that the county did or did not make a compelling case that it will incur significant financial distress pursuant to Welfare and Institutions Code section 17000.6. If the time period is extended pursuant to section 1182.3 of these regulations, notice of the final decision shall be provided within 150 days after receipt of an application, or as otherwise provided by the current Budget Act.

(d) If the preliminary decision prepared by the hearing panel or hearing officer is not adopted by the Commission as its final decision, the Commission may direct appropriate modification of the preliminary decision and thereafter adopt it as the Commission final decision or decide the application upon the record, with or without taking additional evidence, or may refer the application to a hearing panel or hearing officer to take additional evidence. If the application is so assigned to a hearing panel or hearing officer, the hearing panel or hearing officer shall prepare a preliminary decision, as provided in subdivision (b), which shall be based upon the additional evidence and the transcript and other papers which are a part of the record of the prior hearing.

(e) The affirmative vote of at least a majority of the existing membership of the Commission is required for the adoption of a final decision by the Commission. A copy of the final decision shall be filed by the Commission as a public record.

(f) A Commission final decision which makes a finding of significant financial distress will be effective for a period not to exceed 36 months. The final decision shall specify whether the effective date of the period of significant financial distress shall commence on the date of the final decision or on a date no more than 60 days from the date of the final decision.