Many coaches (at least those who are thinking) use the 30 second period from the time that they are informed until they have the "replacement" player report to the scorer's table as a free 30-second time out. This is perfectly legal.
The book does not say what the coach has to do during this period of time. Therefore, he is entirely within his rights to talk to his players. However, as soon as the sub reports, it is time to resume the game. So do not let him continue his 30 seconds if the sub does check in quickly.
You need to address this situation with the timer prior to the game. Tell them that, after you tell the coach that he has 30 seconds to replace the disqualified player, you want the timer to begin a 30 second count. At 15 seconds, the timer should sound the horn. At this time you can encourage the coach to get his sub in now. He probably will not realize that he still has time remaining. If he waits until the 2nd horn, which should be sounded at the end of the 30 seconds, then a technical foul for delay of game is appropriate.
Also, when a player commits his/her 5th foul, notify the coach of this before you notify the player. This does two things. First, it starts the 30 second process sooner. Second, and probably more important, it now makes the disqualified player bench personnel, and any unnecessary comments the departing player may decide to make about you or the weather may be punished with an indirect T to the head coach. Make the player the coach's responsibility as soon as you can.
If the player happened to get a T before the coach was notified, it would not count as an indirect toward the head coach.
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