11 Part 1203—Nondiscrimination In

Corporation for National and Community Service § 1203.3

PART 1203—NONDISCRIMINATION (1) Federal financial assistance by IN FEDERALLY ASSISTED PRO- way of insurance or guaranty con- tracts; GRAMS—EFFECTUATION OF TITLE (2) Money paid, property transferred, VI OF THE CIVIL RIGHTS ACT OF or other assistance extended before the 1964 effective date of this part, except when the assistance was subject to the title Sec. VI regulations of an agency whose re- 1203.1 Purpose. sponsibilities are now exercised by AC- 1203.2 Application of this part. TION; 1203.3 Definitions. (3) Assistance to any individual who 1203.4 Discrimination prohibited. is the ultimate beneficiary; or 1203.5 Assurances required. 1203.6 Compliance information. (4) Employment practices, under a 1203.7 Conduct of investigations. program, of an employer, employment 1203.8 Procedure for effecting compliance. agency, or labor organization, except 1203.9 Hearings. to the extent described in § 1203.4(c). 1203.10 Decisions and notices. The fact that a type of Federal finan- 1203.11 Judicial review. cial assistance is not listed in Appendix 1203.12 Effect on other regulations, forms, A to this part does not mean, if title VI and instructions. is otherwise applicable, that a program APPENDIX A TO PART 1203—PROGRAMS TO is not covered. Other types of Federal WHICH THIS PART APPLIES financial assistance under statutes now APPENDIX B TO PART 1203—PROGRAMS TO in force or hereinafter enacted may be WHICH THIS PART APPLIES WHEN A PRI- added to Appendix A to this part. MARY OBJECTIVE OF THE FEDERAL FINAN- (b) In a program receiving Federal fi- CIAL ASSISTANCE IS TO PROVIDE EMPLOY- MENT nancial assistance in the form, or for the acquisition, of real property or an AUTHORITY: Sec. 602, 78 Stat. 252; 42 U.S.C. interest in real property, to the extent 2000d–1. that rights to space on, over, or under SOURCE: 39 FR 27322, July 26, 1974, unless that property are included, the non- otherwise noted. discrimination requirement of this part extends to a facility located wholly or § 1203.1 Purpose. in part in that space. The purpose of this part is to effec- [39 FR 27322, July 26, 1974, as amended at 68 tuate the provisions of title VI of the FR 51387, Aug. 26, 2003] Civil Rights Act of 1964 (hereafter re- ferred to as title VI), to the end that a § 1203.3 Definitions. person in the United States shall not, Unless the context requires other- on the ground of race, color, or na- wise, in this part: tional origin, be excluded from partici- (a) Applicant means a person who sub- pation in, be denied the benefits of, or mits an application, request, or plan be otherwise subjected to discrimina- required to be approved by ACTION, or tion under a program or activity re- by a primary recipient, as a condition ceiving Federal financial assistance to eligibility for Federal financial as- from ACTION. sistance, and ‘‘application’’ means that application, request, or plan. § 1203.2 Application of this part. (b) Facility includes all or any part of (a) This part applies to each program structures, equipment, or other real or for which Federal financial assistance personal property or interests therein, is authorized under a law administered and the provision of facilities includes by ACTION, including the types of Fed- the construction, expansion, renova- eral financial assistance listed in ap- tion, remodeling, alteration, or acqui- pendix A to this part. It also applies to sition of facilities. money paid, property transferred, or (c) Federal financial assistance in- other Federal financial assistance ex- cludes: tended after the effective date of this (1) Grants and loans of Federal funds; part pursuant to an application ap- (2) The grant or donation of Federal proved before that effective date. This property and interests in property; part does not apply to: (3) The detail of Federal personnel;

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(4) The sale and lease of, and the per- other corporation, partnership, private mission to use (on other than a casual organization, or sole proprietorship; or or transient basis), Federal property or (4) Any other entity which is estab- any interest in the property without lished by two or more of the entities consideration or at a nominal consider- described in paragraph (e)(1), (2), or (3) ation, or at a consideration which is re- of this section. duced for the purpose of assisting the (f) Recipient may mean any State, the recipient, or in recognition of the pub- District of Columbia, the Common- lic interest to be served by the sale or wealth of Puerto Rico, a territory or lease to the recipient; and possession of the United States, or any (5) A Federal agreement, arrange- political subdivision thereof, or instru- ment, or other contract which has as mentality thereof, any public or pri- one of its purposes the provision of as- vate agency, institution, or organiza- sistance. tion, or other entity, or any individual (d) Primary recipient means a recipi- in any State, the District of Columbia, ent that is authorized or required to the Commonwealth of Puerto Rico, or extend Federal financial assistance to territory or possession of the United another recipient. States, to whom Federal financial assistance is extended, directly or (e) Program or activity and program through another recipient, including mean all of the operations of any enti- any successor, assignee, or transferee ty described in paragraphs (e)(1) thereof, but the term does not include through (4) of this section, any part of any ultimate beneficiary. which is extended Federal financial as- (g) Director means the Director of AC- sistance: TION or any person to whom he has (1)(i) A department, agency, special delegated his authority in the matter purpose district, or other instrumen- concerned. tality of a State or of a local government; or [39 FR 27322, July 26, 1974, as amended at 68 (ii) The entity of such State or local FR 51387, Aug. 26, 2003] government that distributes such as- § 1203.4 Discrimination prohibited. sistance and each such department or agency (and each other State or local (a) General. A person in the United government entity) to which the as- States shall not, on the ground of race, sistance is extended, in the case of as- color, or national origin be excluded sistance to a State or local govern- from participation in, be denied the ment; benefits of, or be otherwise subjected to discrimination under, a program to (2)(i) A college, university, or other which this part applies. postsecondary institution, or a public (b) Specific discriminatory actions pro- system of higher education; or hibited. (1) A recipient to which this (ii) A local educational agency (as de- part applies may not, directly or fined in 20 U.S.C. 7801), system of voca- through contractual or other arrange- tional education, or other school sys- ments, on the ground of race, color, or tem; national origin— (3)(i) An entire corporation, partner- (i) Deny a person a service, financial ship, or other private organization, or aid, or other benefit provided under the an entire sole proprietorship— program; (A) If assistance is extended to such (ii) Provide a service, financial aid, corporation, partnership, private orga- or other benefit to a person which is nization, or sole proprietorship as a different, or is provided in a different whole; or manner, from that provided to others (B) Which is principally engaged in under the program; the business of providing education, (iii) Subject a person to segregation health care, housing, social services, or or separate treatment in any matter parks and recreation; or related to his receipt of a service, fi- (ii) The entire plant or other com- nancial aid, or other benefit under the parable, geographically separate facil- program; ity to which Federal financial assist- (iv) Restrict a person in any way in ance is extended, in the case of any the enjoyment of an advantage or

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privilege enjoyed by others receiving a participation by persons of a particular service, financial aid, or other benefit race, color, or national origin. under the program; (c) Employment practices. (1) When a (v) Treat a person differently from primary objective of the Federal finan- others in determining whether he satis- cial assistance to which this part ap- fies an admission, enrollment, quota, plies is to provide employment, a re- eligibility, membership, or other recipient or other party subject to this quirement or condition which persons part shall not, directly or through con- must meet in order to be provided a tractual or other arrangements, sub- service, financial aid, or other benefit ject a person to discrimination on the provided under the program; ground of race, color, or national ori- (vi) Deny a person an opportunity to gin in its employment practices under participate in the program through the the program (including recruitment or provision of services or otherwise or af- recruitment advertising, hiring, firing, ford him an opportunity to do so which upgrading, promotion, demotion, trans- is different from that afforded others fer, layoff, termination, rates of pay, or under the program; or other forms of compensation or bene- (vii) Deny a person the opportunity fits, selection for training or appren- to participate as a member of a plan- ticeship, use of facilities, and treat- ning or advisory body which is an inte- ment of employees). A recipient shall gral part of the program. take affirmative action to insure that (2) A recipient, in determining the applicants are employed, and employ- types of services, financial aid, or other ees are treated during employment, benefits, or facilities which will be pro- without regard to race, color, or na- vided under a program or the class of tional origin. The requirements appli- persons to whom, or the situations in cable to construction employment which, the services, financial aid, other under a program are those specified in benefits, or facilities will be provided or pursuant to part III of Executive under a program, or the class of per- Order 11246 or any Executive order sons to be afforded an opportunity to which supersedes it. participate in a program, may not, di- (2) Federal financial assistance to rectly or through contractual or other arrangements, utilize criteria or meth- programs under laws funded or admin- ods of administration which have the istered by ACTION which have as a pri- effect of subjecting persons to discrimi- mary objective the providing of em- nation because of their race, color, or ployment include those set forth in Ap- national origin, or have the effect of pendix B to this part. defeating or substantially impairing (3) Where a primary objective of the accomplishment of the objectives of Federal financial assistance is not to the program with respect to individ- provide employment, but discrimina- uals of a particular race, color, or nation on the ground of race, color, or national origin. tional origin in the employment prac- (3) The enumeration of specific forms tices of the recipient tends, on the of prohibited discrimination in this ground of race, color, or national ori- paragraph does not limit the generality gin, to exclude persons from participa- of the prohibition in paragraph (a) of tion in, to deny them the benefits of, or this section. to subject them to discrimination (4)(i) In administering a program re- under any program to which this part garding which the recipient had pre- applies, the provisions of paragraph viously discriminated against persons (c)(1) of this section apply to the em- on the ground of race, color, or na- ployment practices of the recipient to tional origin, the recipient shall take the extent necessary to assure equality affirmative action to overcome the ef- of opportunity to and nondiscrim- fects of prior discrimination. inatory treatment of beneficiaries. (ii) Even in the absence of prior dis- (d) In determining the site or loca- crimination a recipient in admin- tion of facilities, a recipient or appli- istering a program may take affirma- cant may not make selections with the tive action to overcome the effect of purpose or effect of excluding individ- conditions which resulted in limiting uals from, denying them the benefits

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of, or subjecting them to discrimina- provisions which give the United tion under, a program to which this States the right to seek judicial en- part applies, on the ground of race, forcement. color, or national origin; or with the (2) When Federal financial assistance purpose or effect of defeating or sub- is provided in the form of a transfer of stantially impairing the accomplish- real property, structures, or improvement of the objectives of title VI of ments thereon, or interest therein, this part. from the Federal Government, the in- [39 FR 27322, July 26, 1974, as amended at 68 strument effecting or recording the FR 51387, Aug. 26, 2003] transfer shall contain a covenant run- ning with the land assuring non- § 1203.5 Assurances required. discrimination for the period during (a) General. (1) An application for which the real property is used for a Federal financial assistance to which purpose involving the provision of this part applies, except an application similar services or benefits. When no to which paragraph (d) of this section transfer of property of interest therein applies, and every application for Fed- from the Federal Government is in- eral financial assistance to provide a volved, but property is acquired or im- facility shall, as a condition to its approved with Federal financial assist- proval and the extension of Federal fi- ance, the recipient shall agree to in- nancial assistance pursuant to the ap- clude a covenant in any subsequent plication, contain or be accompanied transfer of the property. When the by, assurances that the program will be property is obtained from the Federal conducted or the facility operated in Government, the covenant may also in- compliance with the requirements im- clude a condition coupled with a right posed by or pursuant to this part. to be reserved by ACTION to revert Every award of Federal financial as- title to the property in the event of a sistance shall require the submission of breach of the covenant where, in the these assurances. In the case where the discretion of ACTION, such a condition Federal financial assistance is to pro- and right of reverter is appropriate to vide or is in the form of personal prop- the statute under which the real property, or real property or interest there- erty is obtained and to the nature of in or structures thereon, the assur- the grant and the grantee. In the event ances shall obligate the recipient, or, a transferee of real property proposes in the case of a subsequent transfer, to mortgage or otherwise encumber the the transferee, for the period during real property as security for financing which the property is used for a pur- construction of new, or improvement of pose for which the Federal financial as- existing, facilities on property for the sistance is extended or for another pur- purposes for which the property was pose involving the provision of similar transferred, ACTION may agree, on re- services or benefits, or for as long as quest of the transferee and if necessary the recipient retains ownership or pos- to accomplish the financing, and on session of the property, whichever is conditions as he deems appropriate, to longer. In other cases, the assurances subordinate a right of reversion to the obligate the recipient for the period lien of a mortgage or other encum- during which the Federal financial as- brance. sistance is extended to the program. In (b) Assurances from Government agen- the case where the assistance is sought cies. In the case of an application from for the construction of a facility or a department, agency, or office of a part of a facility, the assurances shall State or local government for Federal extend to the entire facility and to the financial assistance for a specified pur- facilities operated in connection there- pose, the assurance required by this with. ACTION shall specify the form of section shall extend to any other de- the foregoing assurances and the ex- partment, agency, or office of the same tent to which like assurances will be governmental unit if the policies of the required of subgrantees, contractors other department, agency, or office and subcontractors, transferees, suc- will substantially affect the project for cessors in interest, and other partici- which Federal financial assistance is pants. The assurances shall include requested.

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(c) Assurance from academic and other and shall provide assistance and guid- institutions. (1) In the case of an appli- ance to recipients to help them comply cation for Federal financial assistance voluntarily with this part. by an academic institution, the assur- (b) Compliance reports. Each recipient ance required by this section extends shall keep records and submit to AC- to admission practices and to all other TION timely, complete, and accurate practices relating to the treatment of compliance reports at the times, and in students. the form and containing the informa- (2) The assurance required by an aca- tion ACTION may determine necessary demic institution, detention or correc- to enable it to ascertain whether the tional facility, or any other institution recipient has complied or is complying or facility, relating to the institution’s with this part. In the case in which a practices with respect to admission or primary recipient extends Federal fi- other treatment of individuals as stu- nancial assistance to other recipients, dents, patients, wards, inmates, per- the other recipients shall also submit sons subject to control, or clients of compliance reports to the primary re- the institution or facility or to the op- cipient as may be necessary to enable portunity to participate in the provi- the primary recipient to carry out its sion of services, disposition, treatment, obligations under this part. In general, or benefits to these individuals, is ap- recipients should have available for plicable to the entire institution or fa- ACTION racial and ethnic data show- cility. ing the extent to which members of mi- (d) Continuing Federal financial assist- nority groups are beneficiaries of feder- ance. Every application by a State or a ally assisted programs. State agency for continuing Federal fi- (c) Access to sources of information. nancial assistance to which this part Each recipient shall permit access by applies (including the types of Federal ACTION during normal business hours financial assistance listed in Appendix to its books, records, accounts, and A to this part) shall as a condition to other sources of information, and its its approval and the extension of Fed- facilities as may be pertinent to ascer- eral financial assistance pursuant to tain compliance with this part. When the application: information required of a recipient is (1) Contain or be accompanied by a in the exclusive possession of an other statement that the program is (or, in agency, institution, or person and this the case of a new program, will be) con- agency, institution, or person fails or ducted in compliance with the require- refuses to furnish this information, the ments imposed by or pursuant to this recipient shall so certify in its report part, and and shall set forth what efforts it has (2) Provide or be accompanied by pro- made to obtain the information. vision for methods of administration (d) Information to beneficiaries and for the program as are found by AC- participants. Each recipient shall make TION to give reasonable guarantee available to participants, beneficiaries, that the applicant and all recipients of and other interested persons the infor- Federal financial assistance under the mation regarding the provisions of this program will comply with the require- part and its applicability to the pro- ments imposed by or pursuant to this gram for which the recipient received part. Federal financial assistance, and make this information available to them in (Approved by the Office of Management and Budget under control number 3001–0016, para- the manner, as ACTION finds nec- graph (a)(1)) essary, to apprise the persons of the protections against discrimination as- [39 FR 27322, July 26, 1974, as amended at 47 sured them by title VI and this part. FR 3553, Jan. 26, 1982; 68 FR 51387, Aug. 26, 2003] [39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003] § 1203.6 Compliance information. (a) Cooperation and assistance. AC- § 1203.7 Conduct of investigations. TION, to the fullest extent practicable, (a) Periodic compliance reviews. AC- shall seek the cooperation of recipients TION may from time to time review in obtaining compliance with this part the practices of recipients to determine

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whether they are complying with this § 1203.8 Procedure for effecting com- part. pliance. (b) Complaints. Any person who be- (a) General. (1) If there appears to be lieves himself or any specific class of a failure or threatened failure to com- persons to be subjected to discrimina- ply with this part, and if the non- tion prohibited by this part may by compliance or threatened noncompli- himself or by a representative file with ance cannot be corrected by informal ACTION a written complaint. A com- means, compliance with this part may plaint shall be filed not later than 180 be effected by the suspension or termi- days after the date of the alleged dis- nation of or refusal to grant or to con- crimination, unless the time for filing tinue Federal financial assistance or by is extended by ACTION. other means authorized by law. (c) Investigations. ACTION will make (2) Other means may include, but are a prompt investigation whenever a not limited to: compliance review, report, complaint, (i) A reference to the Department of or other information indicates a pos- Justice with a recommendation that sible failure to comply with this part. appropriate proceedings be brought to The investigation will include, when enforce the rights of the United States appropriate, a review of the pertinent under a law of the United States (in- practices and policies of the recipient, cluding other titles of the Civil Rights the circumstances under which the pos- Act of 1964) or an assurance or other sible noncompliance with this part oc- contractual undertaking, and curred, and other factors relevant to a (ii) An applicable proceeding under determination as to whether the recipi- State or local law. ent has failed to comply with this part. (b) Noncompliance with § 1203.5. If an (d) Resolution of matters. (1) If an in- applicant fails or refuses to furnish an vestigation pursuant to paragraph (c) assurance required under § 1203.5 or of this section indicates a failure to otherwise fails or refuses to comply comply with this part, ACTION will so with a requirement imposed by or pur- inform the recipient and the matter suant to that section, Federal financial will be resolved by voluntary means assistance may be refused in accord- whenever possible. If it has been deter- ance with the procedures of paragraph (c) of this section. ACTION shall not be mined that the matter cannot be re- required to provide assistance in that solved by voluntary means, action will case during the pendency of the admin- be taken as provided for in § 1203.8. istrative proceedings under this para- (2) If an investigation does not war- graph. Subject, however, to § 1203.12, rant action pursuant to paragraph ACTION shall continue assistance dur- (d)(1) of this section, ACTION will so ing the pendency of the proceedings inform, in writing, the recipient and where the assistance is due and payable the complainant, if any. pursuant to an application approved (e) Intimidatory or retaliatory acts pro- prior to the effective date of this part. hibited. A recipient or other person (c) Termination of or refusal to grant or shall not intimidate, threaten, coerce, to continue Federal financial assistance. or discriminate against an individual An order suspending, terminating, or for the purpose of interfering with a refusing to grant or to continue Fed- right or privilege secured by section 601 eral financial assistance shall not be- of title VI of this part, or because he come effective until— has made a complaint, testified, as- (1) ACTION has advised the applicant sisted, or participated in any manner or recipient of his failure to comply in an investigation, proceeding, or and has determined that compliance hearing under this part. The identity of cannot be secured by informal vol- complainants shall be kept confiden- untary means; tial, except to the extent necessary to (2) There has been an express finding carry out the purposes of this part, in- on the record, after opportunity for cluding the conduct of an investiga- hearing, of a failure by the applicant or tion, hearing, or judicial proceeding recipient to comply with a requirement arising thereunder. imposed by or pursuant to this part;

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(3) The action has been approved by (2) Advise the applicant or recipient the Director pursuant to § 1203.10(e); that the matter in question has been and set down for hearing at a stated time (4) The expiration of 30 days after the and place. The time and place so fixed Director has filed with the committee shall be reasonable and subject to of the House and the committee of the change for cause. The complainant, if Senate having legislative jurisdiction any, shall be advised of the time and over the program involved, a full writ- place of the hearing. An applicant or ten report of the circumstances and the recipient may waive a hearing and sub- grounds for the action. mit written information and argument An action to suspend or terminate or for the record. The failure of an appli- refuse to grant or to continue Federal cant or recipient to request a hearing financial assistance shall be limited to under this paragraph or to appear at a the particular political entity, or part hearing for which a date has been set is thereof, or other applicant or recipient deemed to be a waiver of the right to a as to whom a finding has been made hearing under section 602 of title VI and shall be limited in its effect to the and § 1203.8(c) and consent to the mak- particular program, or part thereof, in ing of a decision on the basis of the in- which the noncompliance has been so formation available. found. (b) Time and place of hearing. Hear- (d) Other means authorized by law. An ings shall be held at the offices of AC- action to effect compliance with title TION in Washington, DC, at a time VI by other means authorized by law fixed by ACTION unless it determines shall not be taken by ACTION until— that the convenience of the applicant (1) ACTION has determined that com- or recipient or of ACTION requires that pliance cannot be secured by voluntary another place be selected. Hearings means; shall be held before the Director, or at (2) The recipient or other person has his discretion, before a hearing exam- been notified of its failure to comply iner appointed in accordance with sec- and of the action to be taken to effect tion 3105 of title 5, United States Code, compliance; and or detailed under section 3344 of title 5, (3) The expiration of at least 10 days United States Code. from the mailing of a notice to the recipient or person. During this period of (c) Right to counsel. In all proceedings at least 10 days, additional efforts shall under this section, the applicant or re- be made to persuade the recipient or cipient and ACTION have the right to other person to comply with the regu- be represented by counsel. lation and to take corrective action as (d) Procedures, evidence, and record. (1) may be appropriate. The hearing, decision, and an administrative review thereof shall be con- § 1203.9 Hearings. ducted in conformity with sections 554 (a) Opportunity for hearing. When an through 557 of title 5, United States opportunity for a hearing is required Code, and in accordance with the rules by § 1203.8(c), reasonable notice shall be of procedure as are proper (and not in- given by registered or certified mail, consistent with this section) relating return receipt requested, to the af- to the conduct of the hearing, giving of fected applicant or recipient. This no- notices subsequent to those provided tice shall advise the applicant or re- for in paragraph (a) of this section, cipient of the action proposed to be taking of testimony, exhibits, argu- taken, the specific provision under ments, and briefs, requests for findings, which the proposed action against it is and other related matters. Both AC- to be taken, and the matters of fact or TION and the applicant or recipient are law asserted as the basis for this ac- entitled to introduce relevant evidence tion, and either: on the issues as stated in the notice for (1) Fix a date not less than 20 days hearing or as determined by the officer after the date of notice within which conducting the hearing at the outset of the applicant or recipient may request or during the hearing. of ACTION that the matter be sched- (2) Technical rules of evidence do not uled for hearing; or apply to hearings conducted pursuant

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to this part, but rules or principles de- days after the mailing of a notice of signed to assure production of the most initial decision, file with the Director credible evidence available and to sub- his exceptions to the initial decision, ject testimony to test by cross-exam- with his reasons therefor. In the ab- ination shall be applied where deter- sence of exceptions, the Director may, mined reasonably necessary by the offi- on his own motion, within 45 days after cer conducting the hearing. The hear- the initial decision, serve on the appli- ing officer may exclude irrelevant, im- cant or recipient a notice that he will material, or unduly repetitious evi- review the decision. On the filing of the dence. Documents and other evidence exceptions or of notice of review, the offered or taken for the record shall be open to examination by the parties and Director shall review the initial deci- opportunity shall be given to refute sion and issue his own decision thereon facts and arguments advanced on ei- including the reasons therefor. In the ther side of the issues. A transcript absence of either exceptions or a notice shall be made of the oral evidence ex- of review the initial decision, subject cept to the extent the substance there- to paragraph (e) of this section, shall of is stipulated for the record. Deci- constitute the final decision of the Di- sions shall be based on the hearing rector. record and written findings shall be (b) Decisions on record or review by the made. Director. When a record is certified to (e) Consolidated or joint hearings. In the Director for decision or the Direc- cases in which the same or related tor reviews the decision of a hearing facts are asserted to constitute non- examiner pursuant to paragraph (a) of compliance with this part with respect this section, or when the Director con- to two or more Federal statutes, au- ducts the hearing, the applicant or re- thorities, or other means by which cipient shall be given reasonable oppor- Federal financial assistance is ex- tunity to file with it briefs or other tended and to which this part applies, or noncompliance with this part and written statements of the recipient’s the regulations of one or more other contentions, and a written copy of the Federal departments or agencies issued final decision of the Director will be under title VI, ACTION may, by agree- sent to the applicant or recipient and ment with the other departments or to the complainant, if any. agencies, when applicable, provide for (c) Decisions on record where a hearing the conduct of consolidated or joint is waived. When a hearing is waived hearings, and for the application to pursuant to § 1203.9, a decision shall be these hearings of rules or procedures made by ACTION on the record and a not inconsistent with this part. Final written copy of the decision shall be decisions in these cases, insofar as this sent to the applicant or recipient, and regulation is concerned, shall be made to the complainant, if any. in accordance with § 1203.10. (d) Rulings required. Each decision of [39 FR 27322, July 26, 1974, as amended at 68 a hearing examiner or the Director FR 51387, Aug. 26, 2003] shall set forth a ruling on each finding, conclusion, or exception presented, and § 1203.10 Decisions and notices. shall identify the requirement or re- (a) Procedure on decisions by hearing quirements imposed by or pursuant to examiner. If the hearing is held by a this part with which it is found that hearing examiner, the hearing exam- the applicant or recipient has failed to iner shall either make an initial deci- comply. sion, if so authorized, or certify the en- (e) Approval by ACTION. A final deci- tire record including his recommended sion by an official of ACTION other findings and proposed decision to the than by the Director, which provides Director for a final decision, and a copy for the suspension or termination of, or of the initial decision or certification the refusal to grant or continue Fed- shall be mailed to the applicant or re- eral financial assistance, or the imposi- cipient. When the initial decision is made by the hearing examiner, the ap- tion of any other sanction available plicant or recipient may, within 30 under this part or title VI, shall

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promptly be transmitted to the Direc- proves at the hearing that it satisfied tor, who may approve the decision, va- the requirements of paragraph (g)(1) of cate it, or remit or mitigate a sanction this section. While proceedings under imposed. this paragraph are pending, the sanc- (f) Content of orders. The final deci- tions imposed by the order issued sion may provide for suspension or ter- under paragraph (f) of this section re- mination of, or refusal to grant or con- main in effect. tinue Federal financial assistance, in whole or in part, to which this regula- [39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003] tion applies, and may contain the terms, conditions, and other provisions § 1203.11 Judicial review. as are consistent with and will effec- tuate the purposes of title VI and this Action taken pursuant to section 602 part, including provisions designed to of title VI is subject to judicial review assure that Federal financial assist- as provided in section 603 of title VI. ance to which this regulation applies will not thereafter be extended to the § 1203.12 Effect on other regulations, forms, and instructions. applicant or recipient determined by the decision to be in default in its per- (a) Effect on other regulations. Regula- formance of an assurance given by it tions, orders, or like directions issued under this part, or to have otherwise before the effective date of this part by failed to comply with this part, unless ACTION which impose requirements and until it corrects its noncompliance designed to prohibit discrimination and satisfies ACTION that it will fully against individuals on the ground of comply with this part. race, color, or national origin to which (g) Post-termination proceedings. (1) An this part applies, and which authorizes applicant or recipient adversely af- the suspension or termination of or re- fected by an order issued under para- fusal to grant or to continue Federal fi- graph (f) of this section shall be re- nancial assistance to an applicant for stored to full eligibility to receive Fed- or recipient of assistance under a pro- eral financial assistance if it satisfies gram for failure to comply with the re- the terms and conditions of the order quirements, are superseded to the ex- for eligibility, or if it brings itself into tent that discrimination is prohibited compliance with this part and provides by this part, except that nothing in reasonable assurance that it will fully this part relieves a person of an obliga- comply with this part. tion assumed or imposed under a super- (2) An applicant or recipient ad- seded regulation, order, instruction, or versely affected by an order entered like direction, before the effective date pursuant to paragraph (f) of this sec- of this part. This part does not super- tion may at any time request ACTION sede any of the following (including fu- to restore fully its eligibility to receive ture amendments thereof): Federal financial assistance. A request (1) Executive Order 11246 (3 CFR, 1965 shall be supported by information Supp.) and regulations issued there showing that the applicant or recipient under or has met the requirements of paragraph (2) Any other orders, regulations, or (g)(1) of this section. If ACTION deter- instructions, insofar as these orders, mines that those requirements have regulations, or instructions prohibit been satisfied, it shall restore the eligi- discrimination on the ground of race, bility. color, or national origin in a program (3) If ACTION denies a request, the or situation to which this part is inap- applicant or recipient may submit a re- plicable, or prohibit discrimination on quest for a hearing in writing, speci- any other ground. fying why it believes ACTION is in (b) Forms and instructions. ACTION error. The applicant or recipient shall shall issue and promptly make avail- be given an expeditious hearing, with a able to all interested persons forms and decision on the record in accordance detailed instructions and procedures with the rules or procedures issued by for effectuating this part as applied to ACTION. The applicant or recipient programs to which this part applies, shall be restored to eligibility if it and for which it is responsible.

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(c) Supervision and coordination. AC- PART 1206—GRANTS AND CON- TION may from time to time assign to TRACTS—SUSPENSION AND TER- officials of ACTION, or to officials of MINATION AND DENIAL OF AP- other departments or agencies of the PLICATION FOR REFUNDING Government with the consent of the departments or agencies, responsibil- Subpart A—Suspension and Termination of ities in connection with the effec- Assistance tuation of the purposes of title VI and this part (other than responsibilities Sec. for final decision as provided in 1206.1–1 Purpose and scope. § 1203.10), including the achievement of 1206.1–2 Application of this part. 1206.1–3 Definitions. effective coordination and maximum 1206.1–4 Suspension. uniformity within ACTION and within 1206.1–5 Termination. the executive branch in the application 1206.1–6 Time and place of termination of title VI and this part to similar pro- hearings. grams and in similar situations. An ac- 1206.1–7 Termination hearing procedures. tion taken, determination made, or re- 1206.1–8 Decisions and notices regarding termination. quirement imposed by an official of an- 1206.1–9 Right to counsel; travel expenses. other department or agency acting pur- 1206.1–10 Modification of procedures by con- suant to an assignment of responsi- sent. bility under this paragraph shall have 1206.1–11 Other remedies. the same effect as though the action had been taken by ACTION. Subpart B—Denial of Application for Refunding [39 FR 27322, July 26, 1974, as amended at 68 FR 51387, Aug. 26, 2003] 1206.2–1 Applicability of this subpart. 1206.2–2 Purpose. APPENDIX A TO PART 1203—FEDERAL FI- 1206.2–3 Definitions. 1206.2–4 Procedures. NANCIAL ASSISTANCE TO WHICH THIS 1206.2–5 Right to counsel. PART APPLIES AUTHORITY: 42 U.S.C. 5052. 1. Grants for the development or operation SOURCE: 69 FR 19110, Apr. 12, 2004, unless of retired senior volunteer programs pursu- otherwise noted. ant to section 601 of the Older Americans Act of 1965, as amended (42 U.S.C. 3044). 2. Grants for the development and oper- Subpart A—Suspension and ation of foster grandparents projects pursu- Termination of Assistance ant to section 611 of the Older Americans Act of 1965, as amended (42 U.S.C. 3044b). § 1206.1–1 Purpose and scope. (a) This subpart establishes rules and APPENDIX B TO PART 1203—FEDERAL FI- review procedures for the suspension NANCIAL ASSISTANCE TO WHICH THIS and termination of assistance of Na- PART APPLIES WHEN A PRIMARY OB- tional Senior Service Corps and JECTIVE OF THE FEDERAL FINANCIAL AmeriCorps*VISTA grants of assist- ASSISTANCE IS TO PROVIDE EMPLOY- ance provided by the Corporation for MENT National and Community Service pur- 1. Grants for the development or operation suant to sections of titles I and II of of retired senior volunteer programs pursu- the Domestic Volunteer Service Act of ant to section 601 of the Older Americans Act 1973, 87 Stat. 394, Pub. L. 93–113, (here- of 1965, as amended (42 U.S.C. 3044). inafter the DVSA) because a recipient 2. Grants for the development and oper- failed to materially comply with the ation of foster grandparents projects pursu- terms and conditions of any grant or ant to section 611 of the Older Americans Act contract providing assistance under of 1965, as amended (42 U.S.C. 3044b). these sections of the DVSA, including applicable laws, regulations, issued program guidelines, instructions, grant conditions or approved work programs. (b) However, this subpart shall not apply to any administrative action of

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