(a) The CELP Official shall determine whether to impose a civil penalty of up to $25,000 per violation on an institution against which a cause of action has been commenced pursuant to the provisions of this article.

(b) The CELP Official shall begin a civil penalty proceeding by sending the institution a notice by certified mail with return receipt requested. This notice shall:

(c) If the institution does not request a hearing but submits written material, the CELP Official, after considering that material, shall notify the institution that:

(d) If the institution submits a timely request for a hearing, the procedure for the hearing shall be governed by the provisions of this article relating to hearings in limitation, suspension, and termination proceedings.

(e) In any event, if the institution contests the alleged violations which form the bases for the civil penalties, the imposition of the civil penalties shall be stayed until final adjudication of those alleged violations or until settlement by the parties relating to those alleged violations.

(f) In determining the amount of a civil penalty the CELP Official shall consider the appropriateness of the penalty to the gravity of the violation; the frequency and persistence of the violation; and the amount of any losses resulting from the violation.

(g) Notwithstanding any other provision of this article, the total amount of civil penalties, when finally determined after the exhaustion of appeals, if any, shall be subject to deduction by the California Student Aid Commission from any sums owed to the institution by the California Student Aid Commission.

(h) For the purposes of civil penalty imposition, a “violation” shall be a single violation, regardless of the number of instances of that violation.