1. (1) An ADH will be held if the Director of OCC recommends disqualifying a provider pursuant Subsection R986-700-726(2), R986-700-730(4), or R986-700-732(4).
2. (2) The hearing procedures set forth in Rule R986-100 apply to an ADH unless otherwise specified or inconsistent with this section.

3. (3)(a) The Division of Adjudication will schedule an ADH. Each party will be given 30-days' notice of the date and time of the ADH.

   1. (b) The Department may withdraw a request for an ADH at any time before the scheduled hearing by sending written notice to the Division of Adjudication and all parties.

4. (4) The Division of Adjudication may combine a fair hearing and an ADH into a single hearing if the relevant factual issues arise out of the same or related circumstances.

   1. (a) The notice of hearing shall indicate whether a fair hearing and an ADH will be combined into a single hearing.
   2. (b) If the hearings are combined, the applicable filing deadline and hearing timeframe are those contained in this section to the extent of any conflict.
   3. (c) If the provider fails to appear or participate in the combined hearing, the fair hearing will be dismissed but the ADH will still be held.
5. (5) The ALJ shall advise a witness that the witness has the right to refuse to answer any question during the hearing, and that the ALJ may draw any reasonable adverse inference based on a party's refusal to answer a question during the hearing.
6. (6) A qualified employee of the Department shall represent the Department at the ADH.

7. (7)(a) If the provider does not participate in the ADH, the ALJ will make a decision based solely on the evidence before the ALJ.

   1. (b) If any party fails to participate in the hearing and disagrees with the hearing decision, the party may request reopening of the hearing as provided in Section R986-100-131.

8. (8)(a) Within 90 days of the date the notice of hearing is issued, the ALJ shall conduct the hearing, arrive at a decision, and issue written notice of the decision to the Department and each party. If the ADH is postponed for any reason, the 90-day time limit will be extended by as many days as the ADH is postponed.

   1. (b) The ALJ shall determine if the provider should be disqualified pursuant to Section R986-700-734.

9. (9)(a) The ALJ is not required to disqualify a provider based solely upon a finding of IPV.

   1. (b) If the ALJ determines the provider's conduct does not warrant disqualification, the Department may establish an overpayment pursuant to Section R986-700-731, assess a penalty pursuant to Section R986-700-732, and take remedial action pursuant to Subsection R986-700-727(6).
10. (10) Any party, including the Department, may request a further appeal pursuant to Section 63G-4-402, Section R986-100-135, and Subsection R986-100-735(3).

KEY: child care, grant programs

Date of Last Change: December 8, 2025

Notice of Continuation: August 14, 2025

Authorizing, and Implemented or Interpreted Law: 35A-3-203; 35A-3-209; 35A-3-310; 45 C.F.R. 98.21