(a) At the conclusion of the hearing or rehearing pursuant to this section, the hearing officer shall take the matter under submission and within forty-five (45) calendar days thereafter submit to the Director a proposed decision that may be adopted as the final decision of the Director provided, however, that the proposed decision in any dispute involving services provided under part 2 of division 5 of the Welfare and Institutions Code shall be first submitted to the Director of Health Services, who, no later than ten (10) days after receipt, shall forward the proposed decision with his or her written comments, if any, to the Director. The proposed decision shall be in writing and shall contain findings of fact, a determination of the issues presented, and an order. The Director may adopt the proposed decision without reading or hearing the record, or he or she may reject the proposed decision and have a decision prepared based upon the record, or he or she may remand the matter to the hearing officer for a rehearing to take additional evidence.

(b) The Director shall, within twenty (20) calendar days of the receipt of the proposed decision, take action as set forth in subsection (a) of this section. The decision shall be final upon adoption by the Director. Copies of the decision of the Director shall be mailed to the Local Mental Health Service and any representative thereof.

(c) A decision shall be issued dismissing the appeal if a Local Mental Health Director or the authorized agent fails to appear at a hearing. A copy of the decision shall be mailed to each party together with a statement of the Local Mental Health Service's right to reopen the appeal.

(d) Any decision dismissing an appeal may be rescinded if the Local Mental Health Director makes an application in writing within ten (10) calendar days after personal service, or the date of receipt of such decision, showing good cause for the failure to appear at the hearing. Lack of good cause will be presumed when a continuance of the hearing was not requested promptly upon discovery of the reasons for failure to appear at the hearing.

(e) The parties shall be notified in writing of an order granting or denying any application to rescind a dismissal.