The CELP Official begins a limitation, suspension, or termination action by sending by certified mail, (with return receipt requested) a notice advising the institution of the consequences of the action, the alleged violations on which the action is based, the effective date of the action, and of the institution's right to request a hearing (if the request is in writing and received by the CELP Official at least five (5) days before the date the action is to be effective) and of the right to present written material showing why an action should not take place.

If a hearing is requested, the CELP Official shall set the date and place of the hearing which must be at least twenty (20) days after receipt of the request. No action, other than by Consent Agreement, emergency action, or as otherwise provided in these regulations can take place until after a hearing is held and a decision reached and written notice thereof given.

If the institution does not request a hearing, but submits written material, the CELP Official shall postpone the effective date of the action until after such material is evaluated. All material must be received by the CELP Official within twenty (20) days from the date the institution notifies the California Student Aid Commission of its intention to submit data for consideration. Within thirty (30) days after the material is reviewed, the CELP Official shall notify the institution by certified mail (return receipt requested) that the action is dismissed or will be effective as of the date originally specified.

A limitation, suspension, or termination may not be effective earlier than twenty (20) days after the date on which the notice is mailed unless otherwise provided in these regulations.