James Madison Memorial Fellowship Foundation §§ 2490.171–2490.999

The decision that compliance would re- forts to refer the complaint to the ap- sult in such alteration or burdens must propriate Government entity. be made by the agency head or his or (f) The agency shall notify the Archi- her designee after considering all agen- tectural and Transportation Barriers cy resources available for use in the Compliance Board upon receipt of any funding and operation of the conducted complaint alleging that a building or program or activity and must be ac- facility that is subject to the Architec- companied by a written statement of tural Barriers Act of 1968, as amended the reasons for reaching that conclu- (42 U.S.C. 4151–4157), is not readily ac- sion. If an action required to comply cessible to and usable by individuals with this section would result in such with handicaps. an alteration or such burdens, the (g) Within 180 days of the receipt of a agency shall take any other action complete complaint for which it has ju- that would not result in such an alter- risdiction, the agency shall notify the ation or such burdens but would never- complainant of the results of the inves- theless ensure that, to the maximum tigation in a letter containing— extent possible, individuals with handi- (1) Findings of fact and conclusions caps receive the benefits and services of law; of the program or activity. (2) A description of a remedy for each violation found; and §§ 2490.161–2490.169 [Reserved] (3) A notice of the right to appeal. § 2490.170 Compliance procedures. (h) Appeals of the findings of fact and (a) Except as provided in paragraph conclusions of law or remedies must be (b) of this section, this section applies filed by the complainant within 90 days to all allegations of discrimination on of receipt from the agency of the letter the basis of handicap in programs and required by § 2490.170(g). The agency activities conducted by the agency. may extend this time for good cause. (b) The agency shall process com- (i) Timely appeals shall be accepted plaints alleging violations of section and processed by the head of the agen- 504 with respect to employment accord- cy. ing to the procedures established by (j) The head of the agency shall no- the Equal Employment Opportunity tify the complainant of the results of Commission in 29 CFR part 1614 pursu- the appeal within 60 days of the receipt ant to section 501 of the Rehabilitation of the request. If the head of the agen- Act of 1973 (29 U.S.C. 791). cy determines that additional informa- (c) The Director of Administration tion is needed from the complainant, and Finance shall be responsible for co- he or she shall have 60 days from the ordinating implementation of this sec- date of receipt of the additional infor- tion. Complaints may be sent to James mation to make his or her determina- Madison Memorial Fellowship Founda- tion on the appeal. tion, 2000 K Street, NW., suite 303, (k) The time limits cited in para- Washington, DC 20006. graphs (g) and (j) of this section may be (d) The agency shall accept and in- extended with the permission of the vestigate all complete complaints for Assistant Attorney General. which it has jurisdiction. All complete (l) The agency may delegate its au- complaints must be filed within 180 thority for conducting complaint in- days of the alleged act of discrimina- vestigations to other Federal agencies, tion. The agency may extend this time except that the authority for making period for good cause. the final determination may not be (e) If the agency receives a complaint delegated to another agency. over which it does not have jurisdic- [58 FR 57699, Oct. 26, 1993] tion, it shall promptly notify the complainant and shall make reasonable ef- §§ 2490.171–2490.999 [Reserved]

577

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00587 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00588 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR CHAPTER XXV—CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

Part Page 2500–2504 [Reserved] 2505 Rules implementing the Government in the Sun- shine Act ...... 581 2506 Collection of debts ...... 584 2507 Procedures for disclosure of records under the Freedom of Information Act ...... 599 2508 Implementation of the Privacy Act of 1974 ...... 609 2510 Overall purposes and definitions ...... 619 2513 [Reserved] 2515 Service-learning program purposes ...... 624 2516 School-based service-learning programs ...... 624 2517 Community-based service-learning programs ...... 632 2518 Service-learning clearinghouse...... 636 2519 Higher education innovative programs for community service ...... 637 2520 General provisions: Americorps Subtitle C programs ...... 641 2521 Eligible Americorps Subtitle C program applicants and types of grants available for award ...... 644 2522 Americorps participants, programs, and applicants 650 2523 Agreements with other Federal agencies for the provision of Americorps program assistance ...... 675 2524 Americorps technical assistance and other special grants ...... 676 2525 National Service Trust: Purpose and definitions .... 678 2526 Eligibility for an education award ...... 680 2527 Determining the amount of an education award ..... 684 2528 Using an education award ...... 685 2529 Payment of accrued interest ...... 688 2530 Transfer of education awards ...... 689 2531 Purposes and availability of grants for investment for quality and innovation activities ...... 691 2532 Innovative and special demonstration programs .... 692 2533 Technical assistance, training, and other service infrastructure-building activities ...... 694 2534 Special activities...... 696 579

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00589 Fmt 8008 Sfmt 8008 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR 45 CFR Ch. XXV (10–1–11 Edition)

Part Page 2540 General administrative provisions ...... 696 2541 Uniform administrative requirements for grants and cooperative agreements to State and local governments ...... 706 2543 Grants and agreements with institutions of higher education, hospitals, and other non-profit organizations ...... 734 2544 Solicitation and acceptance of donations ...... 762 2550 Requirements and general provisions for State commissions and alternative administrative entities ...... 764 2551 Senior Companion Program ...... 772 2552 Foster Grandparent Program ...... 787 2553 The Retired and Senior Volunteer Program ...... 803 2554 Program Fraud Civil Remedies Act regulations ..... 816 2555 Nondiscrimination on the basis of sex in education programs or activities receiving Federal financial assistance ...... 831

580

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00590 Fmt 8008 Sfmt 8008 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR PARTS 2500–2504 [RESERVED] 12651a, or any subdivision of the Board that is authorized to act on its behalf. PART 2505—RULES IMPLEMENTING (b) Chairperson means the Member THE GOVERNMENT IN THE SUN- elected by the Board to serve as Chair- SHINE ACT person. (c) General Counsel means the Cor- poration’s principal legal officer or Sec. 2505.1 Applicability. other attorney acting at the designa- 2505.2 Definitions. tion of the Corporation’s principal 2505.3 To what extent are meetings of the legal officer. Board open to the public? (d) Corporation means the Corpora- 2505.4 On what grounds may the Board close tion for National and Community Serv- a meeting or withhold information? ice established pursuant to 42 U.S.C. 2505.5 What are the procedures for closing a 12651. meeting, withholding information, and responding to requests by affected per- (e) Meeting means the deliberations sons to close a meeting? of at least a quorum of the Corpora- 2505.6 What are the procedures for making a tion’s Board of Directors where such public announcement of a meeting? deliberations determine or result in the 2505.7 What are the procedures for changing joint conduct or disposition of official the time or place of a meeting following Corporation business. A meeting may the public announcement? be conducted under this part through AUTHORITY: 5 U.S.C. 552b; 42 U.S.C. telephone or similar communications 12651c(c). equipment by means of which all par- SOURCE: 64 FR 66403, Nov. 26, 1999, unless ticipants may communicate with each otherwise noted. other. The term meeting includes a portion thereof. The term meeting does § 2505.1 Applicability. not include: (a) This part implements the provi- (1) Notation voting or similar consid- sions of section 3(a) of the Government eration of business, whether by circula- in the Sunshine Act (5 U.S.C. 552b). tion of material to the Members indi- These procedures apply to meetings of vidually in writing or by a polling of the Corporation’s Board of Directors, the members individually by tele- or to any subdivision of the Board that phone. is authorized to act on its behalf. The (2) Action by a quorum of the Board Board of Directors may waive the pro- to— visions of this part to the extent au- (i) Open or to close a meeting or to thorized by law. release or to withhold information pur- (b) Nothing in this part expands or suant to § 2505.5; limits the present rights of any person (ii) Set an agenda for a proposed under the Freedom of Information Act meeting; (5 U.S.C. 552), except that the exemptions set forth in § 2505.4 shall govern in (iii) Call a meeting on less than seven the case of any request made pursuant days’ notice as permitted by § 2505.6(b); to the Freedom of Information Act to or copy or inspect the transcript, record- (iv) Change the subject-matter or the ing, or minutes described in § 2505.5. determinations to open or to close a (c) Nothing is this part authorizes publicly announced meeting under the Corporation to withhold from any § 2505.7(b). individual any record, including tran- (3) A gathering for the purpose of re- scripts, recordings, or minutes required ceiving briefings from the Corpora- by this part, which is otherwise acces- tion’s staff or expert consultants, pro- sible to such individual under the Pri- vided that Members of the Board do vacy Act (5 U.S.C. 552a). not engage in deliberations at such sessions that determine or result in the § 2505.2 Definitions. joint conduct or disposition of official As used in this part: Corporation business on such matters. (a) Board means the Board of Direc- (4) A gathering for the purpose of en- tors established pursuant to 42 U.S.C. gaging in preliminary discussions or

581

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00591 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2505.3 45 CFR Ch. XXV (10–1–11 Edition)

exchanges of views that do not effec- (2) Establishes particular criteria for tively predetermine official Corpora- withholding or refers to particular tion action on a particular matter. types of matters to be withheld; (f) Member means a current member (d) Disclose trade secrets and com- of the Corporation’s Board of Direc- mercial or financial information ob- tors. tained from a person and privileged or (g) Presiding Officer means the Chair- confidential; person or, in the absence of the Chair- (e) Involve accusing any person of a person, the Vice Chairperson of the crime, or formally censuring any per- Board of Directors or other member au- son; thorized to act in this capacity by the (f) Disclose information of a personal Board. nature where disclosure would con- (h) Quorum means the number of stitute a clearly unwarranted invasion Members authorized to conduct Cor- of personal privacy; poration business pursuant to the (g) Disclose investigatory records Board’s bylaws. compiled for law enforcement purposes, or information which, if written, would § 2505.3 To what extent are meetings be contained in such records, but only of the Board open to the public? to the extent that the production of such records or information would— The Board shall conduct meetings, as (1) Interfere with enforcement pro- defined in § 2505.2, in accordance with ceedings; this part. Except as provided in § 2505.4, (2) Deprive a person of a right to a the Board’s meetings shall be open to fair trial or an impartial adjudication; the public. The public is invited to at- (3) Constitute an unwarranted inva- tend all meetings of the Board that are sion of personal privacy; open to the public but may not partici- (4) Disclose the identity of a con- pate in the Board’s deliberations at fidential source and, in the case of a such meetings or record any meeting record compiled by a criminal law en- by means of electronic, photographic, forcement authority in the course of a or other device. criminal investigation, or by an agency § 2505.4 On what grounds may the conducting a lawful national security Board close a meeting or withhold intelligence investigation, confidential information? information furnished only by the confidential source; The Board may close a meeting or (5) Disclose investigative techniques withhold information that otherwise and procedures; or would be required to be disclosed under (6) Endanger the life or physical safe- §§ 2505.5, 2505.6 and 2505.7 if it properly ty of law enforcement personnel; determines that an open meeting or (h) Disclose information contained in disclosure is likely to— or related to examination, operating or (a) Disclose matters that are— condition reports prepared by, on be- (1) Specifically authorized under cri- half of, or for the use of an agency re- teria established by an Executive order sponsible for the regulation or super- to be kept secret in the interests of na- vision of financial institution; tional defense or foreign policy; and (i) Disclose information the pre- (2) In fact properly classified pursu- mature disclosure of which would be ant to such Executive order; likely to significantly frustrate imple- (b) Relate solely to the internal per- mentation of a proposed action of the sonnel rules and practices of the Cor- Corporation, except that this provision poration; shall not apply in any instance where (c) Disclose matters specifically ex- the Corporation has already disclosed empted from disclosure by statute to the public the content or nature of (other than 5 U.S.C. 552), provided that its proposed action, or where the Cor- such statute— poration is required by law to make (1) Requires that the matters be such disclosure on its own initiative withheld from the public in such a prior to taking final action; or manner as to leave no discretion on the (j) Specifically concerning the Cor- issue; or poration’s issuance of a subpoena or

582

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00592 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2505.5

the Corporation’s participation in a all persons expected to attend the civil action or proceeding, an action in meeting and their affiliation. a foreign court or international tri- (d) For each closed meeting, the Gen- bunal, or an arbitration, or the initi- eral Counsel shall publicly certify that, ation, conduct, or disposition by the in his or her opinion, the meeting may Corporation of a particular case of for- be closed to the public and shall state mal adjudication pursuant to the pro- each relevant exemption relied upon. A cedures in 5 U.S.C. 554 or otherwise in- copy of the certification shall be avail- volving a determination on the record able for public inspection. after opportunity for a hearing. (e) For each closed meeting, the § 2505.5 What are the procedures for Board shall issue a statement setting closing a meeting, withholding in- forth the time, place, and persons formation, and responding to represent. A copy of such statement shall quests by affected persons to close be available for public inspection. a meeting? (f)(1) For each closed meeting, with (a) The Board may vote to close a the exception of a meeting closed pur- meeting or withhold information per- suant to § 2505.4(h) or (j), the Board taining to a meeting. Such action may shall maintain a complete transcript or be taken only when a majority of the electronic recording adequate to record entire membership of the Board votes fully the proceedings of each meeting. to take such action. A separate vote (2) For meetings that are closed pur- shall be taken with respect to each ac- suant to § 2505.4(h) or (j), the Board tion under § 2505.4. The Board may act may maintain a set of minutes in lieu by taking a single vote with respect to of a transcript or recording. Such min- a series of meetings which are proposed utes shall fully and clearly describe all to be closed to the public, or with re- matters discussed and shall provide a spect to any information concerning a full and accurate summary of any ac- series of meetings, so long as each tions taken, and the reasons therefor, meeting in the series involves the same particular matters and is scheduled to including a description of each of the be held no more than thirty days after views expressed on any item and the the initial meeting in the series. Each record of any vote. All documents con- Member’s vote under this paragraph sidered in connection with any action shall be recorded and no proxies shall shall be identified in such minutes. be allowed. (3) The Corporation shall make (b) If your interests may be directly promptly available to the public, in a affected if a meeting is open you may place easily accessible to the public, request that the Board close the meet- the transcript, electronic recording, or ing on one of the grounds referred to in minutes of the discussion of any item § 2505.4(e), (f), or (g). You should submit on the agenda, or of any item of the your request to the Office of the Gen- testimony of any witness received at eral Counsel, Corporation for National the meeting, except for such item or and Community Service, 1201 New York items of such discussion or testimony Avenue NW, Washington, D.C. 20525. as the Corporation determines to con- The Board shall, upon the request of tain information which may be prop- any one of its members, determine by erly withheld. Copies of such tran- recorded vote whether to grant your script, or minutes, or a transcription of request. such recording disclosing the identity (c) Within one working day of any of each speaker, shall be furnished to vote taken pursuant to this section, any person at the actual cost of dupli- the Board shall make publicly avail- cation or transcription. The Corpora- able a written copy of such vote re- tion shall maintain the transcript, re- flecting the vote of each Member on cording, or minutes for each closed the question. If a meeting is to be meeting for at least two years or at closed to the public, the Board shall, within one working day, make avail- least one year after the conclusion of able a full written explanation of its any Corporation business acted upon at action closing the meeting and a list of the meeting, whichever occurs later.

583

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00593 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2505.6 45 CFR Ch. XXV (10–1–11 Edition)

§ 2505.6 What are the procedures for quires and that no earlier announce- making a public announcement of a ment of the change was possible; and meeting? (2) The Board publicly announces the (a) For each meeting, the Board shall change and the vote of each Member at make a public announcement, at least the earliest practicable time. one week before the meeting, of— (c) The deletion of any subject-mat- (1) The meeting’s time and place; ter previously announced for a meeting (2) The matters to be considered; is not a change requiring the approval of the Board under paragraph (b) of (3) Whether the meeting is to be open this section. or closed; and (4) The name and business telephone number of the official designated by PART 2506—COLLECTION OF DEBTS the Board to respond to requests for information about the meeting. Subpart A—Introduction (b) The one week advance notice re- Sec. quired by paragraph (a) of this section 2506.1 Why is the Corporation issuing these may be reduced only if— regulations? (1) The Board determines by recorded 2506.2 Under what authority does the Cor- vote that Board business requires that poration issue these regulations? the meeting be scheduled in less than 2506.3 What definitions apply to the regula- seven days; and tions in this part? 2506.4 What types of debts are excluded (2) The public announcement re- from these regulations? quired by paragraph (a) of this section 2506.5 If a debt is not excluded from these is made at the earliest practicable time regulations, may it be compromised, sus- and posted on the Corporation’s home pended, terminated, or waived? page. 2506.6 What is a claim or debt? (c) Immediately following a public 2506.7 Why does the Corporation have to announcement required by paragraph collect debts? (a) of this section, the Corporation will 2506.8 What action might the Corporation take to collect debts? submit for publication in the FEDERAL 2506.9 What rights do I have as a debtor? REGISTER a notice of the time, place, and subject matter of the meeting, Subpart B—General Provisions whether the meeting is open or closed, any change in one of the preceding, and 2506.10 Will the Corporation use its cross- the name and phone number of the offi- servicing agreement with Treasury to cial designated by the agency to re- collect its debts? spond to requests for information 2506.11 Will the Corporation refer debts to the Department of Justice? about the meeting. 2506.12 Will the Corporation provide information to credit reporting agencies? § 2505.7 What are the procedures for 2506.13 How will the Corporation contract changing the time or place of a for private collection services? meeting following the public an- 2506.14 What should I expect to receive from nouncement? the Corporation if I owe a debt to the (a) After there has been a public an- Corporation? nouncement of a meeting, the time or 2506.15 What will the notice tell me regard- place of the meeting may be changed ing collection actions that might be taken if the debt is not paid within 60 only if the Board publicly announces days of the notice, or arrangements to the change at the earliest practicable pay the debt are not made within 60 days time. Such a change need not be deter- of the notice? mined by recorded vote. 2506.16 What will the notice tell me about (b) After there has been a public an- my opportunity for review of my debt? nouncement of a meeting, the subject- 2506.17 What must I do to obtain a review of matter of the meeting, or the deter- my debt, and how will the review process mination of the Board to open or to work? 2506.18 What interest, penalty charges, and close a meeting may be changed only administrative costs will I have to pay when— on a debt owed to the Corporation? (1) The Board determines, by re- 2506.19 How can I resolve my debt through corded vote, that Board business so re- voluntary repayment?

584

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00594 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.2

2506.20 What is the extent of the Chief Exec- AUTHORITY: 5 U.S.C. 5514; 31 U.S.C. 3701– utive Officer’s authority to compromise 3720A, 3720D; 44 U.S.C. 2104(a). debts owed to the Corporation, or to sus- SOURCE: 68 FR 16438, Apr. 4, 2003, unless pend or terminate collection action on otherwise noted. such debts? 2506.21 May the Corporation’s failure to comply with these regulations be used as Subpart A—Introduction a defense to a debt? § 2506.1 Why is the Corporation Subpart C—Salary Offset issuing these regulations? 2506.30 What debts are included or excluded (a) The Corporation is issuing these from coverage of these regulations on regulations to inform the public of pro- salary offset? cedures that may be used by the Cor- 2506.31 May I ask the Corporation to waive poration for the collection of debt. an overpayment that otherwise would be (b) These regulations provide that collected by offsetting my salary as a the Corporation will attempt to collect Federal employee? debts owed to it or other Government 2506.32 What are the Corporation’s proce- agencies either directly, or by other dures for salary offset? 2506.33 How will the Corporation coordinate means including salary offsets, admin- salary offsets with other agencies? istrative offsets, tax refund offsets, or 2506.34 Under what conditions will the Cor- administrative wage garnishment. poration make a refund of amounts col- (c) These regulations also provide lected by salary offset? that the Corporation has entered into a 2506.35 Will the collection of a debt by sal- cross-servicing agreement with the ary offset act as a waiver of my rights to U.S. Department of the Treasury dispute the claimed debt? (Treasury) under which the Treasury Subpart D—Tax Refund Offset will take authorized action to collect amounts owed to the Corporation. 2506.40 Which debts can the Corporation refer to Treasury for collection by offset- § 2506.2 Under what authority does the ting tax refunds? Corporation issue these regula- 2506.41 What are the Corporation’s proce- tions? dures for collecting debts by tax refund (a) The Corporation is issuing the offset? regulations in this part under the au- Subpart E—Administrative Offset thority of 31 U.S.C. chapter 37, 3701– 3720A and 3720D. These sections imple- 2506.50 Under what circumstances will the ment the requirements of the Federal Corporation collect amounts that I owe Claims Collection Act of 1966, as to the Corporation (or some other Fed- amended by the Debt Collection Act of eral agency) by offsetting the debt 1982 and the Debt Collection Improve- against payments that the Corporation (or some other Federal agency) owes me? ment Act of 1996. 2506.51 How will the Corporation request (b) The Corporation is also issuing that my debt to the Corporation be col- the regulations in this part to conform lected by offset against some payment to the Federal Claims Collection that another Federal agency owes me? Standards (FCCS), which prescribe 2506.52 What procedures will the Corpora- standards for handling the Federal tion use to collect amounts I owe to a Government’s claims for money or Federal agency by offsetting a payment property. The FCCS are issued by the that the Corporation would otherwise make to me? Department of Justice (DOJ) and the 2506.53 When may the Corporation make an Treasury at 31 CFR chapter IX, parts offset in an expedited manner? 900–904. The Corporation adopts those 2506.54 Can a judgment I have obtained standards without change. The regula- against the United States be used to sat- tions in this part supplement the FCCS isfy a debt that I owe to the Corporation? by prescribing procedures necessary and appropriate for the Corporation’s Subpart F—Administrative Wage operations. Garnishment (c) The Corporation is also issuing 2506.55 How will the Corporation collect the regulations in this part to conform debts through Administrative Wage Gar- to the standards for handling Adminis- nishment? trative Wage Garnishment processing

585

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00595 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.3 45 CFR Ch. XXV (10–1–11 Edition)

by the Federal Government. The stand- Creditor agency means the agency to ards are issued by the Treasury at 31 which the debt is owed, including a CFR 285.11. The Corporation adopts debt collection center when acting on those standards without change. The behalf of the creditor agency. regulations in this part supplement the Cross-servicing agreement is a letter standards by prescribing procedures of agreement entered into between the necessary and appropriate for the Cor- Corporation and the Financial Manage- poration’s operations. ment Service (FMS) of the Treasury in (d) The Corporation is further issuing which the Corporation has authorized the regulations in this part under the FMS to take all appropriate actions to authority of 5 U.S.C. 5514, and the sal- enforce collection of debts or groups of ary offset regulations published by the debts referred to FMS by the Corpora- Office of Personnel and Management at tion. These debt collection services are 5 CFR part 550, subpart K. provided by FMS on behalf of the Cor- (e) All of these debt collection regu- poration in accordance with all statu- lations are issued under the Corpora- tory and regulatory requirements. tion’s authority under 42 U.S.C. Day means calendar day. To count 12651c(c). days, include the last day of the period unless it is a Saturday, a Sunday, or a § 2506.3 What definitions apply to the Federal legal holiday. regulations in this part? Debt and claim are deemed synony- As used in this part: mous and interchangeable. These terms Administrative offset means with- mean an amount of money, funds, or holding funds payable by the United property that has been determined by States (including funds payable by the an agency official to be due the United United States on behalf of a State gov- States from any person, organization, ernment) to, or held by the United or entity except another Federal agen- States for, a person to satisfy a debt. cy. For the purpose of administrative Administrative wage garnishment offset under 31 U.S.C. 3716 and subpart means a process whereby a Federal E of these regulations, the terms, agency may, without first obtaining a ‘‘debt’’ and ‘‘claim’’ also include court order, order an employer to with- money, funds or property owed by a hold up to 15 percent of your disposable person to a State (including past-due pay for payment to the Federal agency support being enforced by a State); the to satisfy a delinquent non-tax debt. District of Columbia; American Samoa; Agency means a department, agency, Guam; the United States Virgin Is- court, court administrative office, or lands; the Commonwealth of the North- instrumentality in the executive, judi- ern Mariana Islands; or the Common- cial, or legislative branch of govern- wealth of Puerto Rico. ment, including a government corpora- Debt collection center means the tion. Treasury or any other agency or divi- Certification means a written state- sion designated by the Secretary of the ment received by a paying agency or Treasury with authority to collect disbursing official from a creditor debts on behalf of creditor agencies. agency that requests the paying agen- Debtor means a person, organization, cy or disbursing official to offset the or entity, except another Federal agen- salary of an employee and specifies cy, who owes a debt. Use of the terms that required procedural protections ‘‘I,’’ ‘‘you,’’ ‘‘me,’’ and similar ref- have been afforded the employee. erences to the reader of the regulations Chief Executive Officer means the in this part are meant to apply to debt- Chief Executive Officer of the Corpora- ors as defined in this paragraph. tion, or his or her designee. Delinquent debt means a debt that Claim (see definition of Debt in this has not been paid by the date specified section). in the Corporation’s initial written de- Compromise means the settlement of mand for payment or applicable agree- a debt for less than the full amount ment or instrument (including a post- owed. delinquency payment agreement), un- Corporation means the Corporation less other satisfactory payment ar- for National and Community Service. rangements have been made.

586

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00596 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.5

Disposable pay means the part of an (a) Debts or claims arising under the employee’s pay that remains after de- Internal Revenue Code (26 U.S.C. 1 et ductions that are required to be with- seq.) or the tariff laws of the United held by law have been made. States, or the Social Security Act (42 Employee means a current employee U.S.C. 301 et seq.); except as provided of an agency, including a current mem- under sections 204(f) and 1631 (42 U.S.C. ber of the Armed Forces or Reserve of 404(f) and 1383(b)(4)(A)). the Armed Forces of the United States. (b) Any case to which the Contract Federal Claims Collection Standards Disputes Act (41 U.S.C. 601 et seq.) ap- (FCCS) means the standards currently plies; published by DOJ and the Treasury at (c) Any case where collection of a 31 CFR parts 900–904. debt is explicitly provided for or pro- Paying agency means any agency vided by another statute, e.g., travel that is making payments of any kind advances under 5 U.S.C. 5705 and em- to a debtor. In some cases, the Corpora- ployee training expenses under 5 U.S.C. tion may be both the creditor agency 4108, or, as provided for by title 11 of and the paying agency. the United States Code, when the Payroll office means the office that claims involve bankruptcy; is primarily responsible for payroll (d) Any debt based in whole or in part records and the coordination of pay on conduct in violation of the antitrust matters with the appropriate personnel laws or involving fraud, the presen- office. tation of a false claim, or misrepresen- Person includes a natural person or tation on the part of the debtor or any persons, profit or non-profit corpora- party having an interest in the claim, tion, partnership, association, trust, as described in the FCCS, unless DOJ estate, consortium, state or local gov- authorizes the Corporation to handle ernment, or other entity that is capa- the collection; ble of owing a debt to the United (e) Claims between Federal agencies; States; however, agencies of the United (f) Unless otherwise provided by law, States are excluded. administrative offset of payments Private collection contractor means under the authority of 31 U.S.C. 3716 to a private debt collector under contract collect a debt may not be initiated with an agency to collect a non-tax more than 10 years after the Govern- debt owed to the United States. ment’s right to collect the debt first accrued. (Exception: The 10-year limit Salary offset means a payroll proce- does not apply if facts material to the dure to collect a debt under 5 U.S.C. Federal Government’s right to collect 5514 and 31 U.S.C. 3716 by deduction(s) the debt were not known and could not at one or more officially established reasonably have been known by the of- pay intervals from the current pay ac- ficial or officials of the Government count of an employee, without his or who were charged with the responsi- her consent. bility to discover and collect such Tax refund offset means the reduc- debts.) The 10-year limitation also does tion of a tax refund by the amount of a not apply to debts reduced to a judg- past-due legally enforceable debt owed ment; and to the Corporation or any other Fed- (g) Unless otherwise stated, debts eral agency. which have been transferred to the Waiver means the cancellation, re- Treasury or referred to the DOJ will be mission, forgiveness, or non-recovery collected in accordance with the proce- of a debt. dures of those agencies. Withholding order means any order for withholding or garnishment of pay § 2506.5 If a debt is not excluded from issued by an agency, or judicial or ad- these regulations, may it be com- ministrative body. promised, suspended, terminated, or waived? § 2506.4 What types of debts are ex- Nothing in this part precludes: cluded from these regulations? (a) The compromise, suspension, or The following types of debts are ex- termination of collection actions, cluded: where appropriate under the FCCS, or

587

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00597 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.6 45 CFR Ch. XXV (10–1–11 Edition)

the use of alternative dispute resolu- (e) Question if the debt is excluded tion methods if they are consistent from these regulations (see § 2506.5(b)). with applicable law and regulations. (b) An employee from requesting Subpart B—General Provisions. waiver of an erroneous payment under 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. § 2506.10 Will the Corporation use its 716; or any debtor from questioning the cross-servicing agreement with amount or validity of a debt, in the Treasury to collect its debts? manner set forth in this part. (a) The Corporation entered into a cross-servicing agreement on March 26, § 2506.6 What is a claim or debt? 1999, with Treasury Financial Manage- A claim or debt is an amount of ment Services (FMS) that authorizes money, funds, or property that has the Treasury to take the collection ac- been determined by an agency official tions described in this part on behalf of to be due the United States from any the Corporation (see § 2506.3). The Cor- person, organization, or entity except poration will refer debts or groups of another Federal agency (see § 2506.3). debts to FMS for collection action. The debt collection procedures that the § 2506.7 Why does the Corporation Treasury FMS uses are based on 31 have to collect debts? U.S.C. chapter 37 and this part. Federal agencies are required to try (b) The Corporation must transfer to to collect claims or debts of the Fed- the Treasury any debt that has been eral Government for money, funds, or delinquent for a period of 180 days or property arising out of the agency’s ac- more, so that the Secretary of the tivities. Treasury may take appropriate action to collect the debt or terminate collec- § 2506.8 What action might the Cor- tion action. This is pursuant to § 901.3 poration take to collect debts? of the FCCS. (a) There are a number of actions (c) Paragraph (b) of this section will that the Corporation is permitted to not apply to any debt or claim that: take when attempting to collect debts. (1) Is in litigation or foreclosure; These actions include: (2) Will be disposed of under an ap- (1) Salary, tax refund or administra- proved asset sales program; tive offset, or administrative wage gar- (3) Has been referred to a private col- nishment (see subparts C, D, E, and F lection contractor for collection for a of this part respectively); or period of time acceptable to the Sec- (2) Using the services of private col- retary of the Treasury; lection contractors. (4) Is at a debt collection center for a (b) In certain instances, usually after period of time acceptable to the Sec- collection efforts have proven unsuc- retary of the Treasury; cessful, the Corporation transfers debts (5) Will be collected under internal to the Treasury for collection or refers offset procedures within 3 years after them to the DOJ for litigation (see the date the debt or claim is first delin- §§ 2506.10 and 2506.11). quent; or (6) Is exempt from this requirement § 2506.9 What rights do I have as a based on a determination by the Sec- debtor? retary of the Treasury. As a debtor you have several basic rights. You have a right to: § 2506.11 Will the Corporation refer (a) Notice as set forth in these regu- debts to the Department of Justice? lations (see § 2506.14); The Corporation will refer to DOJ for (b) Inspect the records that the Cor- litigation debts on which aggressive poration has used to determine that collection actions have been taken, but you owe a debt (see § 2506.14); which could not be collected, com- (c) Request review of the debt and promised, suspended, or terminated. possible payment options (see § 2506.17); Referrals will be made as early as pos- (d) Propose a voluntary repayment sible, consistent with aggressive Cor- agreement (see § 2506.19); and/or poration collection action, and within

588

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00598 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.14

the period for bringing a timely suit (1) Information necessary to estab- against the debtor. lish the name, address, and employer identification number of the commer- § 2506.12 Will the Corporation provide cial debtor; information to credit reporting (2) The amount, status, and history agencies? of the debt; and (a) The Corporation will report cer- (3) The program or pertinent activity tain delinquent debts to appropriate under which the debt arose. consumer credit reporting agencies by providing the following information: § 2506.13 How will the Corporation (1) A statement that the debt is valid contract for private collection services? and overdue; (2) The name, address, taxpayer iden- The Corporation uses the services of tification number, and any other infor- a private collection contractor when it mation necessary to establish the iden- determines that such use is in the Cor- tity of the debtor; poration’s best interest. When the Cor- (3) The amount, status, and history poration determines that there is a of the debt; and need to contract for private collection services, the Corporation: (4) The program or pertinent activity (a) Retains sole authority to: under which the debt arose. (1) Resolve any dispute with the debt- (b) Before disclosing debt informa- or regarding the validity of the debt; tion to a credit reporting agency, the (2) Compromise the debt; Corporation: (3) Suspend or terminate collection (1) Takes reasonable action to locate action; the debtor if a current address is not (4) Refer the debt to the DOJ for liti- available; gation; and (2) Provides the notice required under (5) Take any other action under this § 2506.14(a) if a current address is avail- part; able; and (b) Requires the contractor to com- (3) Obtains satisfactory assurances ply with the: from the credit reporting agency that (1) Privacy Act of 1974, as amended, it complies with the Fair Credit Re- to the extent specified in 5 U.S.C. porting Act (15 U.S.C. 1681 et seq.) and 552a(m); other Federal laws governing the provi- (2) Fair Debt Collection Practices sion of credit information. Act (15 U.S.C. 1692–1692o); and (c) At the time debt information is (3) Other applicable Federal and submitted to a credit reporting agency, State laws pertaining to debt collec- the Corporation provides a written tion practices and applicable regula- statement to the reporting agency that tions of the Corporation in this part; all required actions have been taken. (c) Requires the contractor to ac- In addition, the Corporation thereafter count accurately and fully for all ensures that the credit reporting agen- amounts collected; and cy is promptly informed of any sub- (d) Requires the contractor to pro- stantive change in the conditions or vide to the Corporation, upon request, amount of the debt, and promptly all data and reports contained in its verifies or corrects information rel- files related to its collection actions on evant to the debt. a debt. (d) If a debtor disputes the validity of the debt, the credit reporting agency § 2506.14 What should I expect to re- refers the matter to the appropriate ceive from the Corporation if I owe Corporation official. The credit report- a debt to the Corporation? ing agency excludes the debt from its (a) The Corporation will send you a reports until the Corporation certifies written notice when we determine that in writing that the debt is valid. you owe a debt to the Corporation. The (e) The Corporation may disclose to a notice will be hand-delivered or sent to commercial credit bureau information you at the most current address known concerning a commercial debt, includ- to the Corporation. The notice will in- ing the following: form you of the following:

589

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00599 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.15 45 CFR Ch. XXV (10–1–11 Edition)

(1) The amount, nature, and basis of or a change in coverage under a Fed- the debt; eral benefits program requiring peri- (2) That a designated Corporation of- odic deductions from pay, if the ficial has reviewed the debt and deter- amount to be recovered was accumu- mined that it is valid; lated over 4 pay periods or less; (3) That payment of the debt is due (2) A routine intra-agency adjust- as of the date of the notice, and that ment of pay that is made to correct an the debt will be considered delinquent overpayment of pay attributable to if you do not pay it within 30 days of clerical or administrative errors or the date of the notice; delays in processing pay documents, if (4) The Corporation’s policy con- the overpayment occurred within the 4 cerning interest, penalty charges, and pay periods preceding the adjustment administrative costs (see § 2506.18), in- and, at the time of such adjustment, or cluding a statement that such assess- as soon thereafter as practical, the in- ments must be made against you un- dividual is provided written notice of less excused in accordance with the the nature and the amount of the ad- FCCS and this part; justment and point of contact for con- (5) That you have the right to inspect testing such adjustment; or and copy disclosable Corporation (3) Any adjustment to collect a debt records pertaining to your debt, or to amounting to $50 or less, if, at the time receive copies of those records if per- of such adjustment, or as soon there- sonal inspection is impractical; after as practical, the individual is pro- (6) That you have the opportunity to vided written notice of the nature and enter into an agreement, in writing the amount of the adjustment and a and signed by both you and the des- point of contact for contesting such ad- ignated Corporation official, for vol- justment. untary repayment of the debt (see § 2506.15 What will the notice tell me § 2506.19); regarding collection actions that (7) The address, telephone number, might be taken if the debt is not and name of the Corporation official paid within 60 days of the notice, or available to discuss the debt; arrangements to pay the debt are (8) Possible collection actions that not made within 60 days of the no- might be taken if the debt is not paid tice? within 60 days of the notice, or ar- The notice provided under § 2506.14 rangements to pay the debt are not will advise you that, within 60 days of made within 60 days of the notice (see the date of the notice, your debt (in- § 2506.15 for a fuller description of pos- cluding any interest, penalty charges, sible actions); and administrative costs) must be paid (9) That the Corporation may sus- or you must enter into a voluntary re- pend or revoke any licenses, permits, payment agreement. If you do not pay or other privileges for failure to pay a the debt or enter into the agreement debt; and within that deadline, the Corporation (10) Information on your opportunity may enforce collection of the debt by to obtain a review concerning the ex- any or all of the following methods: istence or amount of the debt, or the (a) By transferring the debt to the proposed schedule for offset of Federal Treasury for collection, including employee salary payments (see under a cross-servicing agreement with § 2506.16). the Treasury (see § 2506.10); (b) The Corporation will respond (b) By referral to a credit reporting promptly to communications from you. agency (see § 2506.12), private collection (c) Exception to entitlement to no- contractor (see § 2506.13), or the DOJ tice, hearing, written responses, and (see § 2506.11); final decisions. With respect to the reg- (c) If you are a Corporation em- ulations covering internal salary offset ployee, by deducting money from your collections (see § 2506.32), the Corpora- disposable pay account until the debt tion excepts from the provisions of (and all accumulated interest, penalty paragraph (a) of this section— charges, and administrative costs) is (1) Any adjustment to pay arising out paid in full (see subpart C of this part). of an employee’s election of coverage The Corporation will specify the

590

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00600 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.17

amount, frequency, approximate begin- in writing at the earliest practical ning date, and duration of the deduc- date, but not later than 60 days after tion. 5 U.S.C. 5514 and 31 U.S.C. 3716 the receipt of the request for a review, govern such proceedings; unless you request, and the review offi- (d) If you are an employee of a Fed- cial grants, a delay in the proceedings; eral agency other than the Corpora- (f) That any knowingly false or frivo- tion, by initiating certification proce- lous statements, representations, or dures to implement a salary offset by evidence may subject you to: that Federal agency (see subpart C of (1) Disciplinary procedures appro- this part). 5 U.S.C. 5514 governs such priate under 5 U.S.C. chapter 75, 5 CFR proceedings; part 752, or any other applicable stat- (e) By referring the debt to the ute or regulations; Treasury for offset against any refund (2) Penalties under the False Claims of overpayment of tax (see subpart D of Act (31 U.S.C. 3729–3733) or any other this part); applicable statutory authority; and (f) By administrative offset (see sub- (3) Criminal penalties under 18 U.S.C. part E of this part); 286, 287, 1001, and 1002, or any other ap- (g) By administrative wage garnish- plicable statutory authority; ment (see subpart F of this part); or (g) Any other rights available to you (h) By liquidation of security or col- to dispute the validity of the debt or to lateral. The Corporation has the right have recovery of the debt waived, or to hold security or collateral, liquidate remedies available to you under stat- it, and apply the proceeds to your debt utes or regulations governing the pro- through the exercise of a power of sale gram for which the collection is being in the security instrument or a fore- made; and closure. The Corporation will not fol- (h) That unless there are applicable low the procedures in this paragraph contractual or statutory provisions to (h) if the cost of disposing of the collat- the contrary, amounts paid on or de- eral will be disproportionate to its ducted for the debt that are later value. waived or found not owed will be promptly refunded to you. § 2506.16 What will the notice tell me about my opportunity for review of § 2506.17 What must I do to obtain a my debt? review of my debt, and how will the The notice provided by the Corpora- review process work? tion under §§ 2506.14 and 2506.15 will also (a) Request for review. (1) You have advise you of the opportunity to obtain the right to request a review by the a review within the Corporation con- Corporation of the existence or the cerning the existence or amount of the amount of your debt, the proposed debt or the proposed schedule for offset schedule for offset of Federal employee of Federal employee salary payments. salary payments, or whether the debt The notice will also advise you of the is past due or legally enforceable. If following: you want a review, you must send a (a) The name, address, and telephone written request to the Corporation offi- number of a Corporation official whom cial designated in the notice (see you may contact concerning proce- § 2506.16(d)). dures for requesting a review; (2) You must sign your request for re- (b) The method and time period for view and fully identify and explain requesting a review; with reasonable specificity all the (c) That the filing of a request for a facts, evidence, and witnesses that sup- review on or before the 60th day fol- port your position. Your request for re- lowing the date of the notice will stay view should be accompanied by avail- the commencement of collection pro- able evidence to support your conten- ceedings; tions. (d) The name and address of the Cor- (3) Your request for review must be poration official to whom you should received by the designated officer or send the request for a review; employee of the Corporation on or be- (e) That a final decision on the re- fore the 60th calendar day following view (if one is requested) will be issued the date of the notice. Timely filing

591

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00601 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.17 45 CFR Ch. XXV (10–1–11 Edition)

will stay the commencement of collec- final decision (see paragraph (f) of this tion procedures. The Corporation may section for the content of the review consider requests filed after the 60-day decision). period provided for in this section if (d) Review procedure. If you request a you: review, the review official will notify (i) Can show that the delay was the you of the form of the review to be pro- result of circumstances beyond your vided. The review official will deter- control; or mine whether an oral hearing is re- (ii) Did not receive notice of the fil- quired, or if a review of the written ing deadline (unless you had actual no- record is sufficient, in accordance with tice of the filing deadline). the FCCS. Although you may request (b) Inspection of the Corporation an oral hearing, such a hearing is re- records related to the debt. (1) If you quired only when a review of the docu- want to inspect or copy the Corpora- mentary evidence cannot determine tion records related to the debt (see the question of indebtedness, such as § 2506.14(a)(5)), you must send a letter when the validity of the debt turns on to the Corporation official designated an issue of credibility or truthfulness. in the notice. Your letter must be re- In either case, the review official will ceived within 30 days of the date of the conduct the review in accordance with notice. the FCCS. If the review will include an (2) In response to the timely request oral hearing, the notice sent to you by described in paragraph (b)(1) of this the review official will set forth the section, the designated Corporation of- date, time, and location of the hearing. ficial will notify you of the location (e) Date of decision. (1) The review of- and time when you may inspect and ficial will issue a written decision, copy records related to the debt. based upon either the written record or (3) If personal inspection of the Cor- documentary evidence and information poration records related to the debt is developed at an oral hearing. This deci- impractical, reasonable arrangements sion will be issued as soon as practical, will be made to send you copies of but not later than 60 days after the those records. date on which the Corporation received (c) Review official. (1) When required your request for a review, unless you by Federal law or regulation, such as request, and the review official grants, in a salary offset situation, the Cor- a delay in the proceedings. poration will request an administrative (2) If the Corporation is unable to law judge, or hearing official from an- issue a decision within 60 days after other agency who is not under the su- the receipt of the request for a hearing: pervision or control of the Chief Execu- (i) The Corporation may not issue a tive Officer, to conduct the review. In withholding order or take other action these cases, the hearing official will, until the review (in whatever form) is following the review, submit the review held and a decision is rendered; and decision to the Chief Executive Officer (ii) If the Corporation previously for the issuance of the Corporation’s issued a withholding order to the debt- final decision (see paragraph (f) of this or’s employer, the Corporation must section for content of the review deci- suspend the withholding order begin- sion). ning on the 61st day after the receipt of (2) When Federal law or regulation the review request and continuing does not require the Corporation to until a review (in whatever form) is have the review conducted by an ad- held and a decision is rendered. ministrative law judge, or by a hearing (f) Content of review decision. The re- official from another agency who is not view official will prepare a written de- under the supervision or control of the cision that includes: Chief Executive Officer, the Corpora- (1) A statement of the facts presented tion has the right to appoint a hearing to support the origin, nature, and official to conduct the review. In these amount of the debt; cases, the hearing official will, fol- (2) The review official’s findings, lowing the review, submit the review analysis, and conclusions; and decision to the Chief Executive Officer (3) The terms of any repayment for the issuance of the Corporation’s schedule, if applicable.

592

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00602 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.19

(g) Interest, penalty charge, and admin- (d) Allocation of payments. A partial istrative cost accrual during review pe- or installment payment by a debtor riod. Interest, penalty charges, and ad- will be applied first to outstanding pen- ministrative costs authorized by law alty assessments, second to adminis- will continue to accrue during the re- trative costs, third to accrued interest, view period. and fourth to the outstanding debt principal. § 2506.18 What interest, penalty (e) Additional authority. The Corpora- charges, and administrative costs tion may assess interest, penalty will I have to pay on a debt owed to charges, and administrative costs on the Corporation? debts that are not subject to 31 U.S.C. (a) Interest. (1) The Corporation will 3717 to the extent authorized under assess interest on all delinquent debts common law or other applicable statu- unless prohibited by statute, regulatory authority. tion, or contract. (f) Waiver. (1) The Chief Executive Of- (2) Interest begins to accrue on all ficer may (without regard to the debts from the date that the debt be- amount of the debt) waive collection of comes delinquent. The Corporation will all or part of accrued interest, penalty not recover interest if you pay the debt charges, or administrative costs, if he within 30 days of the date on which in- or she determines that collection of terest begins to accrue. The Corpora- these charges would be against equity tion will assess interest at the rate es- and good conscience or not in the best tablished annually by the Secretary of interest of the Corporation. the Treasury under 31 U.S.C. 3717, un- (2) A decision to waive interest, pen- less a different rate is either necessary alty charges, or administrative costs to protect the interests of the Corpora- may be made at any time before a debt tion or established by a contract, re- is paid. However, and unless otherwise payment agreement, or statute. The stated in these regulations, where Corporation will notify you of the basis these charges have been collected be- for its finding when a different rate is fore the waiver decision, they will not necessary to protect the interests of be refunded. The Chief Executive Offi- the Corporation. cer’s decision to waive or not waive (3) The Chief Executive Officer may collection of these charges is final and extend the 30-day period for payment is not subject to further review. without interest when he or she determines that such action is in the best § 2506.19 How can I resolve my debt interest of the Corporation. A decision through voluntary repayment? to extend or not to extend the payment (a) In response to a notice of debt, period is final and is not subject to fur- you may propose to the Corporation ther review. that you be allowed to repay the debt (b) Penalty. The Corporation will as- through a voluntary repayment agree- sess a penalty charge of 6 percent a ment in lieu of the Corporation taking year on any portion of a debt that is other collection actions under this delinquent for more than 90 days. part. (c) Administrative costs. The Corpora- (b) Your request to enter into a vol- tion will assess charges to cover ad- untary repayment agreement must: ministrative costs incurred as a result (1) Be in writing; of your failure to pay a debt before it (2) Admit the existence of the debt; becomes delinquent. Administrative and costs include the additional costs in- (3) Either propose payment of the curred in processing and handling the debt (together with interest, penalty debt because it became delinquent, charges, and administrative costs) in a such as costs incurred in obtaining a lump sum, or set forth a proposed re- credit report or in using a private col- payment schedule. lection contractor, or service fees (c) The Corporation will collect debts charged by a Federal agency for collec- in one lump sum whenever feasible. tion activities undertaken on behalf of However, if you are unable to pay your the Corporation. debt in one lump sum, the Corporation

593

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00603 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.20 45 CFR Ch. XXV (10–1–11 Edition)

may accept payment in regular install- § 2506.21 May the Corporation’s failure ments that bear a reasonable relation- to comply with these regulations be ship to the size of the debt and your used as a defense to a debt? ability to pay. If possible, the install- No, the failure of the Corporation to ment payments should be sufficient in comply with any standard in the FCCS size and frequency to liquidate the debt or these regulations will not be avail- in three years or less. able to any debtor as a defense. (d) The Corporation will consider a request to enter into a voluntary re- Subpart C—Salary Offset payment agreement in accordance with the FCCS. The Chief Executive Officer § 2506.30 What debts are included or may request additional information excluded from coverage of these regulations on salary offset? from you, including financial statements if you request to make pay- (a) The regulations in this subpart ments in installments, in order to de- provide the Corporation procedures for termine whether to accept a voluntary the collection by salary offset of a Fed- repayment agreement. It is within the eral employee’s pay to satisfy certain debts owed to the Corporation or to Chief Executive Officer’s discretion to other Federal agencies. accept a repayment agreement instead (b) The regulations in this subpart do of proceeding with other collection ac- not apply to any case where collection tions under this part, and to set the of a debt by salary offset is explicitly necessary terms of any voluntary re- provided for or prohibited by another payment agreement. No repayment statute. agreement will be binding on the Cor- (c) Nothing in the regulations in this poration unless it is in writing and subpart precludes the compromise, sus- signed by both you and the Chief Exec- pension, or termination of collection utive Officer. At the Corporation’s op- actions under the Federal Claims Col- tion, you may be required to provide lection Act of 1966, as amended, or the security as part of the agreement to FCCS. make payments in installments. Not- (d) A levy imposed under the Internal withstanding the provisions of this sec- Revenue Code takes precedence over a tion, 31 U.S.C. 3711 will govern any re- salary offset under this subpart, as production or compromise of a debt. vided in 5 U.S.C. 5514(d).

§ 2506.20 What is the extent of the § 2506.31 May I ask the Corporation to Chief Executive Officer’s authority waive an overpayment that other- to compromise debts owed to the wise would be collected by offset- Corporation, or to suspend or ter- ting my salary as a Federal em- minate collection action on such ployee? debts? Yes, the regulations in this subpart (a) The Chief Executive Officer may do not preclude you from requesting compromise, suspend, or terminate col- waiver of an overpayment under 5 U.S.C. 5584 or 8346(b), 10 U.S.C. 2774, 32 lection action on those debts owed to U.S.C. 716, or other statutory provi- the Corporation that do not exceed sions pertaining to the particular debts $100,000 excluding interest, in con- being collected. formity with the Federal Claims Col- lection Act of 1966, as amended. The § 2506.32 What are the Corporation’s Corporation will follow the policies in procedures for salary offset? § 902.2 of the FCCS. (a) The Corporation will coordinate (b) The uncollected portion of a debt salary deductions under this subpart as owed to the Corporation that is not re- appropriate. covered as the result of a compromise (b) If you are a Corporation employee will be reported to the Internal Rev- who owes a debt to the Corporation, enue Service (IRS) as income to the the Corporation’s payroll office in debtor in accordance with IRS proce- Human Resources will determine the dures if this uncollected amount is at amount of your disposable pay and will least $600.00. implement the salary offset.

594

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00604 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.33

(c) Deductions will begin within § 2506.33 How will the Corporation co- three official pay periods following re- ordinate salary offsets with other ceipt by the Corporation’s payroll of- agencies? fice of certification of debt from the (a) Responsibilities of the Corporation creditor agency. as the creditor agency (i.e. when the debt- (d) The Notice provisions of these or owes a debt to the Corporation and is regulations do not apply to certain an employee of another agency). Upon debts arising under this section (see completion of the procedures estab- § 2506.14(c)). lished in this subpart and pursuant to 5 (e) Types of collection. (1) Lump-sum U.S.C. 5514 and 31 U.S.C. 3716, the Cor- offset. If the amount of the debt is poration must submit a claim to a pay- equal to or less than 15 percent of dis- ing agency or disbursing official. (1) In its claim, the Corporation must posable pay, the debt generally will be certify, in writing, the following: collected through one lump-sum offset. (i) That the employee owes the debt; (2) Installment deductions. Installment (ii) The amount and basis of the debt; deductions will be made over a period (iii) The date the Corporation’s right not greater than the anticipated period to collect the debt first accrued; of employment. The size and frequency (iv) That the Corporation’s regula- of installment deductions will bear a tions in this subpart have been ap- reasonable relation to the size of the proved by OPM under 5 CFR part 550, debt and your ability to pay. However, subpart K; and the amount deducted from any period (v) That the Corporation has met the will not exceed 15 percent of the dispos- certification requirements of the payable pay from which the deduction is ing agency. made unless you have agreed in writing (2) If the collection must be made in to the deduction of a greater amount. installments, the Corporation’s claim If possible, installment payments will will also advise the paying agency of be sufficient in size and frequency to the amount or percentage of disposable liquidate the debt in three years or pay to be collected in each installment. less. The Corporation may also advise the paying agency of the number of install- (3) Deductions from final check. A de- ments to be collected and the date of duction exceeding the 15 percent of dis- the first installment, if that date is posable pay limitation may be made other than the next officially estab- from any final salary payment under 31 lished pay period. U.S.C. 3716 and the FCCS in order to (3) The Corporation will also include liquidate the debt, whether the em- in its claim: ployee is being separated voluntarily (i) The employee’s written consent to or involuntarily. the salary offset; (4) Deductions from other sources. If an (ii) The employee’s signed statement employee subject to salary offset is acknowledging receipt of the proce- separated from the Corporation and the dures required by 5 U.S.C. 5514; or balance of the debt cannot be liq- (iii) Information regarding the com- uidated by offset of the final salary pletion of procedures required by 5 check, the Corporation may offset later U.S.C. 5514, including the actions taken payments of any kind against the bal- and the dates of those actions. ance of the debt, as allowed by 31 (4) If the employee is in the process U.S.C. 3716 and the FCCS. of separating and has not received a (f) Multiple debts. In instances where final salary check or other final pay- two or more creditor agencies are seek- ment(s) from the paying agency, the Corporation must submit its claim to ing salary offsets, or where two or the paying agency or disbursing offi- more debts are owed to a single cred- cial for collection under 31 U.S.C. 3716. itor agency, the Corporation’s payroll The paying agency will (under its regu- office may, at its discretion, determine lations adopted under 5 U.S.C. 5514 and whether one or more debts should be 5 CFR part 550, subpart K), certify the offset simultaneously within the 15 total amount of its collection on the percent limitation. debt and notify the employee and the

595

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00605 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.34 45 CFR Ch. XXV (10–1–11 Edition)

Corporation. If the paying agency’s col- the Corporation sends the employee a lection does not fully satisfy the debt, written notice containing: and the paying agency is aware that (i) A statement that the Corporation the debtor is entitled to payments from has received a certified claim from the the Civil Service Retirement and Dis- creditor agency; ability Fund or other similar payments (ii) The amount of the debt; that may be due the debtor employee (iii) The date salary offset deductions from other Federal government will begin; and sources, then (under its regulations (iv) The amount of such deductions. adopted under 5 U.S.C. 5514 and 5 CFR (2) Incomplete claim. When the Cor- part 550, subpart K), the paying agency poration receives an incomplete certifi- will provide written notice of the out- cation of debt from a creditor agency, standing debt to the agency responsible the Corporation will return the claim for making the other payments to the with a notice that the creditor agency debtor employee. The written notice must: will state that the employee owes a (i) Comply with the procedures re- debt, the amount of the debt, and that quired under 5 U.S.C. 5514 and 5 CFR the provisions of this section have been part 550, subpart K, and fully complied with. However, the Cor- (ii) Properly certify a claim to the poration must submit a properly cer- Corporation before the Corporation tified claim under this paragraph (a)(4) will take action to collect from the to the agency responsible for making employee’s current pay account. the other payments before the collec- (3) The Corporation is not authorized tion can be made. to review the merits of the creditor (5) If the employee is already sepa- agency’s determination with respect to rated and all payments due from his or the amount or validity of the debt cer- her former paying agency have been tified by the creditor agency. paid, the Corporation may request, un- (4) Employees who transfer from the less otherwise prohibited, that money Corporation to another paying agency. due and payable to the employee from If, after the creditor agency has sub- the Civil Service Retirement and Dis- mitted the claim to the Corporation, ability Fund or other similar funds be the employee transfers from the Cor- administratively offset to collect the poration to a different paying agency debt. before the debt is collected in full, the (6) Employee transfer. When an em- Corporation will certify the total ployee transfers from one paying agen- amount collected on the debt and no- cy to another paying agency, the Cor- tify the employee and the creditor poration will not repeat the due proc- agency in writing. The notification to ess procedures described in 5 U.S.C. the creditor agency will include infor- 5514 and this subpart to resume the col- mation on the employee’s transfer. lection. The Corporation will submit a properly certified claim to the new § 2506.34 Under what conditions will paying agency and will subsequently the Corporation make a refund of review the debt to ensure that the col- amounts collected by salary offset? lection is resumed by the new paying (a) If the Corporation is the creditor agency. agency, it will promptly refund any (b) Responsibilities of the Corporation amount deducted under the authority as the paying agency (i.e., when the debt- of 5 U.S.C. 5514, when: or owes a debt to another agency and is (1) The debt is waived or all or part of an employee of the Corporation). (1) Com- the funds deducted are otherwise found plete claim. When the Corporation re- not to be owed (unless expressly pro- ceives a certified claim from a creditor hibited by statute or regulation); or agency (under the creditor agency’s (2) An administrative or judicial regulations adopted under 5 U.S.C. 5514 order directs the Corporation to make and 5 CFR part 550, subpart K), deduc- a refund. tions should be scheduled to begin (b) Unless required or permitted by within three officially established pay law or contract, refunds under this sec- intervals. Before deductions can begin, tion will not bear interest.

596

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00606 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2506.41

§ 2506.35 Will the collection of a debt debt for tax return offset (31 CFR 285.2) by salary offset act as a waiver of have been satisfied. my rights to dispute the claimed debt? § 2506.41 What are the Corporation’s No, your involuntary payment of all procedures for collecting debts by or any portion of a debt under this sub- tax refund offset? part will not be construed as a waiver (a) The Corporation’s Accounting and of any rights that you may have under Financial Management Services Divi- 5 U.S.C. 5514 or other provisions of a sion will be the point of contact with law or written contract, unless there the Treasury for administrative mat- are statutory or contractual provisions ters regarding the offset program. to the contrary. (b) The Corporation will ensure that the procedures prescribed by the Treas- Subpart D—Tax Refund Offset ury are followed in developing information about past-due debts and submit- § 2506.40 Which debts can the Corpora- ting the debts to the Treasury. tion refer to Treasury for collection (c) The Corporation will submit to by offsetting tax refunds? the Treasury a notification of a tax- (a) The regulations in this subpart payer’s liability for past-due legally implement 31 U.S.C. 3720A, which au- enforceable debt. This notification will thorizes the Treasury to reduce a tax contain the following: refund by the amount of a past-due, le- (1) The name and taxpayer identifica- gally enforceable debt owed to a Fed- tion number of the debtor; eral agency. (2) The amount of the past-due and (b) For purposes of this section, a legally enforceable debt; past-due, legally enforceable debt ref- (3) The date on which the original erable to the Treasury for tax refund debt became past due; offset is a debt that is owed to the Cor- (4) A statement certifying that, with poration and: respect to each debt reported, all of the (1) Is at least $25.00; requirements of § 2506.40(b) have been (2) Except in the case of a judgment satisfied; and debt, has been delinquent for at least (5) Any other information as pre- three months and will not have been scribed by Treasury. delinquent more than 10 years at the time the offset is made; (d) For purposes of this section, no- (3) With respect to which the Cor- tice that collection of the debt is poration has: stayed by a bankruptcy proceeding in- (i) Given the debtor at least 60 days volving the debtor will bar referral of to present evidence that all or part of the debt to the Treasury. the debt is not past due or legally en- (e) The Corporation will promptly no- forceable; tify the Treasury to correct data when (ii) Considered evidence presented by the Corporation: the debtor; and (1) Determines that an error has been (iii) Determined that an amount of made with respect to a debt that has the debt is past due and legally en- been referred; forceable; (2) Receives or credits a payment on (4) With respect to which the Cor- the debt; or poration has notified or has made a (3) Receives notice that the person reasonable attempt to notify the debt- owing the debt has filed for bankruptcy or that: under title 11 of the United States Code (i) The debt is past due, and and the automatic stay is in effect or (ii) Unless repaid within 60 days of has been adjudicated bankrupt and the the date of the notice, the debt may be debt has been discharged. referred to the Treasury for offset (f) When advising debtors of the Cor- against any refund of overpayment of poration’s intent to refer a debt to the tax; and Treasury for offset, the Corporation (5) All other requirements of 31 will also advise debtors of remedial ac- U.S.C. 3720A and the Treasury regulations (see §§ 2506.9 and 2506.14 through tions relating to the eligibility of a 2506.16 of this part) available to defer

597

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00607 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2506.50 45 CFR Ch. XXV (10–1–11 Edition)

the offset or prevent it from taking have been known, by the official or of- place. ficials responsible for discovering and collecting the debt. Subpart E—Administrative Offset (d) The regulations in this subpart do not apply to: § 2506.50 Under what circumstances (1) A case in which administrative will the Corporation collect offset of the type of debt involved is ex- amounts that I owe to the Corpora- plicitly prohibited by statute; or tion (or some other Federal agency) (2) Debts owed to the Corporation by by offsetting the debt against pay- Federal agencies. ments that the Corporation (or some other Federal agency) owes § 2506.51 How will the Corporation reme? quest that my debt to the Corpora- (a) The regulations in this subpart tion be collected by offset against apply to the collection of any debts some payment that another Federal you owe to the Corporation, or to any agency owes me? request from another Federal agency The Chief Executive Officer may re- that the Corporation collect a debt you quest that funds due and payable to owe by offsetting your debt against a you by another Federal agency instead payment the Corporation owes you. be paid to the Corporation to satisfy a Administrative offset is authorized debt you owe to the Corporation. The under section 5 of the Federal Claims Corporation will refer debts to the Collection Act of 1966, as amended (31 Treasury for centralized administra- U.S.C. 3716). The Corporation will carry tive offset in accordance with the out administrative offset in accordance FCCS and the procedures established with the provisions of the Federal by the Treasury. Where centralized off- Claims Collection Standards. The regu- set is not available or appropriate, the lations in this subpart are intended Corporation may request offset di- only to supplement the provisions of rectly from the Federal agency that is the FCCS. holding funds for you. In requesting ad- (b) The Chief Executive Officer, after ministrative offset, the Corporation attempting to collect a debt you owe to will certify in writing to the Federal the Corporation under section 3(a) of agency that is holding funds for you: the Federal Claims Collection Act of (a) That you owe the debt; 1966, as amended (31 U.S.C. 3711(a)), (b) The amount and basis of the debt; may collect the debt by administrative and offset only after giving you: (c) That the Corporation has com- (1) Written notice of the type and plied with the requirements of 31 amount of the debt, the intention of U.S.C. 3716, its own administrative off- the Chief Executive Officer to collect set regulations in this subpart, the ap- the debt by administrative offset, and plicable administrative offset regula- an explanation of the rights of the tions of the agency holding the funds, debtor; and the applicable provisions of the (2) An opportunity to inspect and FCCS with respect to providing you copy the records of the Corporation re- with due process. lated to the debt; (3) An opportunity for a review with- § 2506.52 What procedures will the in the Corporation of the decision of Corporation use to collect amounts the Corporation related to the debt; I owe to a Federal agency by offset- and ting a payment that the Corpora- (4) An opportunity to make a written tion would otherwise make to me? agreement with the Chief Executive Of- (a) Any Federal agency may request ficer to repay the amount of the debt. that the Corporation administratively (c) No collection by administrative offset funds due and payable to you in offset will be made on any debt that order to collect a debt you owe to that has been outstanding for more than 10 agency. The Corporation will initiate years, unless facts material to the Cor- the requested offset only upon: poration’s or the requesting Federal (1) Receipt of written certification agency’s right to collect the debt were from the creditor agency stating: not known, and reasonably could not (i) That you owe the debt;

598

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00608 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service Pt. 2507

(ii) The amount and basis of the debt; in accordance with 31 U.S.C. 3728 and 31 (iii) That the agency has prescribed U.S.C. 3716. regulations for the exercise of administrative offset; and Subpart F—Administrative Wage (iv) That the agency has complied with its own administrative offset reg- Garnishment ulations and with the applicable provi- § 2506.55 How will the Corporation col- sions of the FCCS, including providing lect debts through Administrative you with any required hearing or re- Wage Garnishment? view; and (2) A determination by the Chief Ex- The Corporation will collect debts ecutive Officer that offsetting funds through Administrative Wage Garnish- payable to you by the Corporation in ment in accordance with the Adminis- order to collect a debt owed by you trative Wage Garnishment regulations would be in the best interest of the issued by the Treasury. The Corpora- United States as determined by the tion adopts, for purposes of this sub- facts and circumstances of the par- part, the Treasury’s Administrative ticular case, and that such an offset Wage Garnishment regulations in 31 would not otherwise be contrary to CFR 285.11. This procedure allows the law. Corporation to garnish the disposable (b) Multiple debts. In instances where pay of a debtor without first obtaining two or more creditor agencies are seek- a court order. ing administrative offsets, or where two or more debts are owed to a single PART 2507—PROCEDURES FOR DIS- creditor agency, the Corporation may, in its discretion, allocate the amount CLOSURE OF RECORDS UNDER it owes to you to the creditor agencies THE FREEDOM OF INFORMATION in accordance with the best interest of ACT the United States as determined by the facts and circumstances of the par- Sec. ticular case, paying special attention 2507.1 Definitions. to applicable statutes of limitations. 2507.2 What is the purpose of this part? 2507.3 What types of records are available § 2506.53 When may the Corporation for disclosure to the public? make an offset in an expedited 2507.4 How are requests for records made? manner? 2507.5 How does the Corporation process re- The Corporation may effect an ad- quests for records? ministrative offset against a payment 2507.6 Under what circumstances may the to be made to you before completion of Corporation extend the time limits for the procedures required by §§ 2506.51 an initial response? and 2506.52 if failure to take the offset 2507.7 How does one appeal the Corpora- would substantially jeopardize the Cor- tion’s denial of access to records? poration’s ability to collect the debt 2507.8 How are fees determined? and the time before the payment is to 2507.9 What records will be denied disclosure under this part? be made does not reasonably permit 2507.10 What records are specifically exempt the completion of those procedures. An from disclosure? expedited offset will be followed 2507.11 What are the procedures for the re- promptly by the completion of those lease of commercial business informa- procedures. Amounts recovered by off- tion? set, but later found not to be owed to 2507.12 Authority. the United States, will be promptly re- APPENDIX A TO PART 2507—FREEDOM OF IN- funded. FORMATION ACT REQUEST LETTER (SAM- PLE) § 2506.54 Can a judgment I have ob- APPENDIX B TO PART 2507—FREEDOM OF IN- tained against the United States be FORMATION ACT APPEAL FOR RELEASE OF used to satisfy a debt that I owe to the Corporation? INFORMATION (SAMPLE) Yes. Collection by offset against a AUTHORITY: 42 U.S.C. 12501 et seq. judgment obtained by a debtor against SOURCE: 63 FR 26489, May 13, 1998, unless the United States will be accomplished otherwise noted.

599

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00609 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2507.1 45 CFR Ch. XXV (10–1–11 Edition)

§ 2507.1 Definitions. (i) Public interest means the interest in obtaining official information that As used in this part, the following sheds light on an agency’s performance definitions shall apply: of its statutory duties because the in- (a) Act means section 552 of Title 5, formation falls within the statutory United States Code, sometimes re- purpose of the FOIA to inform citizens ferred to as the ‘‘Freedom of Informa- about what their government is doing. tion Act’’, and Pub. L. 104–231, 110 Stat. (j) Record includes books, brochures, 3048, sometimes referred to as the electronic mail messages, punch cards, ‘‘Electronic Freedom of Information magnetic tapes, cards, discs, paper Act Amendments of 1996.’’ tapes, audio or video recordings, maps, (b) Agency means any executive de- pamphlets, photographs, slides, micro- partment, military department, gov- film, and motion pictures, or other doc- ernment corporation, or other estab- umentary materials, regardless of lishment in the executive branch of the physical form or characteristics, made Federal Government, or any inde- or received by the Corporation pursu- pendent regulatory agency. Thus, the ant to Federal law or in connection Corporation is a Federal agency. with the transaction of public business (c) Commercial use request means a re- and preserved by the Corporation as quest from, or on behalf of, a person evidence of the organization, functions, who seeks information for a use or pur- policies, decisions, procedures, oper- pose that furthers the commercial, ations, programs, or other activities. trade, or profit interests of the re- Record does not include objects or arti- quester or the person on whose behalf cles such as tangible exhibits, models, the request is made. The use to which equipment, or processing materials; or the requester will put the records formulas, designs, drawings, or other sought will be considered in deter- items of valuable property. Record does mining whether the request is a com- not include books, magazines, pam- mercial use request. phlets or other materials acquired sole- (d) Corporation means the Corpora- ly for reference purposes. Record does tion for National and Community Serv- not include personal records of an indi- ice. vidual not subject to agency creation (e) Educational institution means a or retention requirements, created and pre-school, elementary or secondary maintained primarily for the conven- school, institution of undergraduate or ience of an agency employee, and not graduate higher education, or institu- distributed to other agency employees tion of professional or vocational edu- for their official use. Record does not cation, which operates a program of include information stored within a scholarly research. computer for which there is no existing (f) Electronic data means records and computer program for retrieval of the information (including e-mail) which requested information. A record must are created, stored, and retrievable by exist and be in the possession and con- electronic means. trol of the Corporation at the time of (g) Freedom of Information Act Officer the request to be considered subject to (FOIA Officer) means the Corporation this part and the FOIA. There is no ob- official who has been delegated the au- ligation to create, compile, or obtain a thority to make the initial determina- record to satisfy a FOIA request. See tion on whether to release or withhold § 2507.5(d) with respect to creating a records, and to assess, waive, or reduce record in the electronic environment. fees in response to FOIA requests. (k) Representative of the news media (h) Non-commercial scientific institution means a person who is actively gath- means an institution that is not oper- ering information for an entity orga- ated substantially for purposes of fur- nized to publish, broadcast or other- thering its own or someone else’s busi- wise disseminate news to the public. ness trade, or profit interests, and that News media entities include television is operated for purposes of conducting and radio broadcasters, publishers of scientific research whose results are periodicals who distribute their prod- not intended to promote any particular ucts to the general public or who make product or industry. their products available for purchase or

600

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00610 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2507.3

subscription by the general public, and are available to the public through an entities that may disseminate news established distribution system, or through other media (e.g., electronic through the FEDERAL REGISTER, the dissemination of text). Freelance jour- National Technical Information Serv- nalists will be treated as representa- ice, or the Internet, may continue to be tives of a new media entity if they can furnished without processing under the show a likelihood of publication provisions of the FOIA or complying through such an entity. A publication with this part. contract would be the clearest proof, but the Corporation may also look to § 2507.3 What types of records are the past publication record of a re- available for disclosure to the pub- quester in making this determination. lic? (l) FOIA request means a written re- (a) (1) The Corporation will make quest for Corporation records, made by available to any member of the public any person, including a member of the who requests them, the following Cor- public (U.S. or foreign citizen), an or- poration records: ganization, or a business, but not in- (i) All publications and other docu- cluding a Federal agency, an order ments provided by the Corporation to from a court, or a fugitive from the the public in the normal course of law, that either explicitly or implicitly agency business will continue to be involves the FOIA, or this part. Writ- made available upon request to the ten requests may be received by postal Corporation; service or by facsimile. (ii) Final opinions, including concur- (m) means the process of ex- Review ring and dissenting opinions, as well as amining records located in response to orders, made in the adjudication of ad- a request to determine whether any ministrative cases; record or portion of a record is permitted to be withheld. It also includes (iii) Statements of policy and inter- processing records for disclosure (i.e., pretation adopted by the agency and excising portions not subject to disclo- not published in the FEDERAL REG- sure under the Act and otherwise pre- ISTER; paring them for release). Review does (iv) Administrative staff manuals and not include time spent resolving legal instructions to the staff that affect a or policy issues regarding the applica- member of the public; and tion of exemptions under the Act. (v) Copies of all records, regardless of (n) Search means looking for records form or format, which, because of the or portions of records responsive to a nature of their subject matter, the request. It includes reading and interagency determines have become or are preting a request, and also page-by- likely to become the subject of subse- page and line-by-line examination to quent requests for substantially the identify responsive portions of a docu- same records. ment. However, it does not include (2) Copies of a current index of the line-by-line examination where merely materials in paragraphs (a)(1)(i) duplicating the entire page would be a through (v) of this section that are less expensive and quicker way to com- maintained by the Corporation, or any ply with the request. portion thereof, will be furnished or made available for inspection upon re- § 2507.2 What is the purpose of this quest. part? (b) To the extent necessary to pre- The purpose of this part is to prevent a clearly unwarranted invasion of scribe rules for the inspection and re- personal privacy, the Corporation may lease of records of the Corporation for delete identifying details from mate- National and Community Service pur- rials furnished under this part. suant to the Freedom of Information (c) Brochures, leaflets, and other Act (‘‘FOIA’’), 5 U.S.C. 552, as amended. similar published materials shall be Information customarily furnished to furnished to the public on request to the public in the regular course of the the extent they are available. Copies of Corporation’s official business, whether any such materials which are out of hard copy or electronic records which print shall be furnished to the public at

601

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00611 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2507.4 45 CFR Ch. XXV (10–1–11 Edition)

the cost of duplication, provided, how- (2) Corporation records that are ever, that, in the event no copy exists, available in the Corporation’s reading the Corporation shall not be respon- room will also be made available for sible for reprinting the document. public access through the Corpora- (d) All records of the Corporation tion’s ‘‘electronic reading room’’ inter- which are requested by a member of net site under ‘‘Resource Links’’. The the public in accordance with the pro- following address is the Corporation’s cedures established in this part shall be Internet Web site: http:// duplicated for the requester, except to www.nationalservice.org. the extent that the Corporation deter- (b) Request must adequately describe mines that such records are exempt the records sought. A request must de- from disclosure under the Act. scribe the records sought in sufficient (e) The Corporation will not be required to create new records, compile detail to enable Corporation personnel lists of selected items from its files, or to locate the records with reasonable provide a requester with statistical or effort, and without unreasonable bur- other data (unless such data has been den to or disruption of Corporation op- compiled previously and is available in erations. Among the kinds of identi- the form of a record.) fying information which a requester (f) These records will be made avail- may provide are the following: able for public inspection and copying (1) The name of the specific program in the Corporation’s reading room lo- within the Corporation which may cated at the Corporation for National have produced or may have custody of and Community Service, 1201 New York the record (e.g., AmeriCorps*State/Na- Avenue, NW., Room 8200, Washington, tional Direct, AmeriCorps*NCCC (Na- D.C. 20525, during the hours of 9:30 a.m. tional Civilian Community Corps), to 4:00 p.m., Monday through Friday, AmeriCorps*VISTA (Volunteers In except on official holidays. Service To America), Learn and Serve (g) Corporation records will be made America, National Senior Service available to the public unless it is de- Corps (NSSC), Retired and Senior Vol- termined that such records should be unteer Program (RSVP), Foster Grand- withheld from disclosure under sub- parent Program (FGP), Senior Com- section 552(b) of the Act and or in ac- panion Program (SCP), and HUD Hope cordance with this part. VI); § 2507.4 How are requests for records (2) The specific event or action, if made? any, to which the record pertains; (a) How made and addressed. (1) Re- (3) The date of the record, or an ap- quests for Corporation records under proximate time period to which it re- the Act must be made in writing, and fers or relates; can be mailed, hand-delivered, or re- (4) The type of record (e.g. contract, ceived by facsimile, to the FOIA Offi- grant or report); cer, Corporation for National and Com- (5) The name(s) of Corporation per- munity Service, Office of the General sonnel who may have prepared or been Counsel, 1201 New York Avenue, N.W., referenced in the record; and Room 8200, Washington, D.C. 20525. (See (6) Citation to newspapers or other Appendix A for an example of a FOIA publications which refer to the record. request.) All such requests, and the en- (c) Agreement to pay fees. The filing of velopes in which they are sent, must be a request under this section shall be plainly marked ‘‘FOIA Request’’. Hand- deemed to constitute an agreement by delivered requests will be received be- the requester to pay all applicable fees, tween 9 a.m. and 4 p.m., Monday up to $25.00, unless a waiver of fees is through Friday, except on official holidays. Although the Corporation main- sought in the request letter. When fil- tains offices throughout the conti- ing a request, a requester may agree to nental United States, all FOIA repay a greater amount, if applicable. quests must be submitted to the Cor- (See § 2507.8 for further information on poration’s Headquarters office in Wash- fees.) ington, DC.

602

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00612 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2507.5

§ 2507.5 How does the Corporation request. The Corporation is not re- process requests for records? quired to perform any research for the (a) Initial processing. Upon receipt of a requester. The Corporation reserves request for agency records, the FOIA the right to make a decision to con- Officer will make an initial determina- serve government resources and at the tion as to whether the requester has same time supply the records requested reasonably described the records being by consolidating information from var- sought with sufficient specificity to de- ious records rather than duplicating all termine which Corporation office may of them. For example, if it requires less have possession of the requested time and expense to provide a com- records. The office head or his or her puter record as a paper printout rather designees shall determine whether the than in an electronic medium, the Cor- description of the record(s) requested is poration will provide the printout. The sufficient to permit a determination as Corporation is only required to furnish to existence, identification, and loca- one copy of a record. tion. It is the responsibility of the (d) Format of the disclosure of a record. FOIA Officer to provide guidance and The requester, not the Corporation, assistance to the Corporation staff re- will be entitled to choose the form of garding all FOIA policies and proce- disclosure when multiple forms of a dures. All requests for records under record already exist. Any further re- the control and jurisdiction of the Of- quest for a record to be disclosed in a fice of the Inspector General will be new form or format will have to be con- forwarded to the Inspector General, sidered by the Corporation, on a case- through the FOIA Officer, for the Cor- by-case basis, to determine whether poration’s initial determination and the records are ‘‘readily reproducible’’ reply to the requester. in that form or format with ‘‘reason- (b) Insufficiently identified records. On able efforts’’ on the part of the Cor- making a determination that the de- poration. The Corporation shall make scription contained in the request does reasonable efforts to maintain its not reasonably describe the records records in forms or formats that are re- being sought, the FOIA Officer shall producible for purposes of replying to a promptly advise the requester in writ- FOIA request. ing or by telephone if possible. The (e) Release of record. Upon receipt of a FOIA Officer shall provide the re- request specifically identifying exist- quester with appropriate assistance to ing Corporation records, the Corpora- help the requester provide any addition shall, within 20 days (excepting tional information which would better Saturdays, Sundays, and legal public identify the record. The requester may holidays), either grant or deny the resubmit an amended request providing quest in whole or in part, as provided the necessary additional identifying in- in this section. Any notice of denial in formation. Receipt of an amended re- whole or in part shall require the FOIA quest shall start a new 20 day period in Officer to inform the requester of his/ which the Corporation will respond to her right to appeal the denial, in ac- the request. cordance with the procedures set forth (c) Furnishing records. The Corpora- in § 2507.7. If the FOIA Officer deter- tion is required to furnish only copies mines that a request describes a re- of what it has or can retrieve. It is not quested record sufficiently to permit compelled to create new records or do its identification, he/she shall make it statistical computations. For example, available unless he/she determines, as the Corporation is not required to appropriate, to withhold the record as write a new program so that a com- being exempt from mandatory disclo- puter will print information in a spe- sure under the Act. cial format. However, if the requested (f) Form and content of notice granting information is maintained in comput- a request. The Corporation shall provide erized form, and it is possible, without written notice of a determination to inconvenience or unreasonable burden, grant access within 20 days (excepting to produce the information on paper, Saturdays, Sundays, and legal public the Corporation will do this if this is holidays) of receipt of the request. This the only feasible way to respond to a will be done either by providing a copy

603

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00613 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2507.6 45 CFR Ch. XXV (10–1–11 Edition)

of the record to the requester or by (a) Time necessary to search for and making the record available for inspec- collect requested records from field of- tion at a reasonable time and place. If fices of the Corporation; the record cannot be provided at the (b) Time necessary to locate, collect time of the initial response, the Cor- and review voluminous records; or poration shall make such records avail- (c) Time necessary for consultation able promptly. Records disclosed in with another agency having an interest part shall be marked or annotated to in the request; or among two or more show both the amount and the location offices of the Corporation which have of the information deleted wherever an interest in the request; or with a practicable. submitter of business information hav- (g) Form and content of notice denying ing an interest in the request. request. The Corporation shall notify the requester in writing of the denial of § 2507.7 How does one appeal the Cor- access within 20 days (excepting Satur- poration’s denial of access to days, Sundays, and legal public holi- records? days) of receipt of the request. Such (a) Right of appeal. A requester has notice shall include: the right to appeal a partial or full de- (1) The name and title or position of nial of an FOIA request. The appeal the person responsible for the denial; must be put in writing and sent to the (2) A brief statement of the reason(s) reviewing official identified in the de- for denial, including the specific ex- nial letter. The requester must send emption(s) under the Act on which the the appeal within 60 days of the letter Corporation has relied in denying each denying the appeal. document that was requested; (b) Contents of appeal. The written ap- (3) A statement that the denial may peal may include as much or as little be appealed under § 2507.7, and a de- information as the requester wishes for scription of the requirements of that the basis of the appeal. § 2507.7; (c) Review process. The Chief Oper- (4) An estimate of the volume of ating Officer (COO) is the designated records or information withheld, in official to act on all FOIA appeals. The number of pages or in some other rea- COO’s determination of an appeal con- sonable form of estimation. This esti- stitutes the Corporation’s final action. mate does not need to be provided if If the appeal is granted, in whole or in the volume is otherwise indicated part, the records will be made available through deletions on records disclosed for inspection or sent to the requester, in part, or if providing an estimate promptly, unless a reasonable delay is would harm an interest protected by an justified. If the appeal is denied, in applicable exemption. whole or in part, the COO will state the reasons for the decision in writing, pro- § 2507.6 Under what circumstances viding notice of the right to judicial re- may the Corporation extend the view. A decision will be made on the time limits for an initial response? appeal within 20 days (excepting Satur- The time limits specified for the Cor- days, Sundays, and legal public holi- poration’s initial response in § 2507.5, days), from the date the appeal was re- and for its determination on an appeal ceived by the COO. in § 2507.7, may be extended by the Cor- (d) When appeal is required. If a re- poration upon written notice to the requester wishes to seek review by a quester which sets forth the reasons for court of an unfavorable determination, such extension and the date upon an appeal must first be submitted which the Corporation will respond to under this section. the request. Such extension may be applied at either the initial response § 2507.8 How are fees determined? stage or the appeal stage, or both, pro- (a) Policy. It is the policy of the Cor- vided the aggregate of such extensions poration to provide the widest possible shall not exceed ten working days. Cir- access to releasable Corporation cumstances justifying an extension records at the least possible cost. The under this section may include the fol- purpose of the request is relevant to lowing: the fees charged.

604

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00614 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2507.8

(b) Types of request. Fees will be de- closed under this part and whether any termined by category of requests as portion of a record is exempt from dis- follows: closure under this part. Review costs (1) Commercial use requests. When a re- shall not include any costs incurred in quest for records is made for commer- resolving legal or policy issues raised cial use, charges will be assessed to in the course of processing a request or cover the costs of searching for, re- an appeal under this part. viewing for release, and reproducing (d) Charging of fees. The following the records sought. charges may be assessed for copies of (2) Requests for educational and non- records provided to a requester: commercial scientific institutions. When a (1) Copies made by photostat shall be request for records is made by an edu- charged at the rate of $0.10 per page. cational or non-commercial scientific (2) Searches for requested records institution in furtherance of scholarly performed by clerical/administrative or scientific research, respectively, personnel shall be charged at the rate charges may be assessed to cover the of $4.00 per quarter hour. cost of reproduction alone, excluding (3) Where a search for requested charges for reproduction of the first 100 records cannot be performed by clerical pages. Whenever the total fee cal- administrative personnel (for example, culated is $18.00 or less, no fee shall be where the tasks of identifying and charged. compiling records responsive to a re- (3) Requests from representatives of the quest must be performed by a skilled news media. When a request for records is made by a representative of the news technician or professional), such search media for the purpose of news dissemi- shall be charged at the rate of $7.00 per nation, charges may be assessed to quarter hour. cover the cost of reproduction alone, (4) Where the time of managerial per- excluding the charges for reproduction sonnel is required, the fee shall be of the first 100 pages. Whenever the $10.25 for each quarter hour of time total fee calculated is $18.00 or less, no spent by such managerial personnel. fee shall be charged. (5) Computer searches for requested (4) Other requests. When other re- records shall be charged at a rate com- quests for records are made which do mensurate with the combined cost of not fit the three preceding categories, computer operation and operator’s sal- charges will be assessed to cover the ary attributable to the search. costs of searching for and reproducing (6) Charges for non-release. Charges the records sought, excluding charges may be assessed for search and review for the first two hours of search time time, even if the Corporation fails to and for reproduction of the first 100 locate records responsive to a request pages. (However, requests from individ- or if records located are determined to uals for records about themselves con- be exempt from disclosure. tained in the Agency’s systems of (e) Consent to pay fees. In the event records will be treated under the fee that a request for records does not provisions of the Privacy Act of 1974 (5 state that the requester will pay all U.S.C. 552a) which permit the assess- reasonable costs, or costs up to a speci- ment of fees for reproduction costs fied dollar amount, and the FOIA Offi- only, regardless of the requester’s char- cer determines that the anticipated as- acterization of the request.) Whenever sessable costs for search, review and re- the total fee calculated is $18.00 or less, production of requested records will ex- no fee shall be charged to the re- ceed $25.00, or will exceed the limit quester. specified in the request, the requester (c) Direct costs. Fees assessed shall shall be promptly notified in writing. provide only for recovery of the Cor- Such notification shall state the an- poration’s direct costs of search, re- ticipated assessable costs of search, review, and reproduction. Review costs view and reproduction of records re- shall include only the direct costs in- quested. The requester shall be af- curred during the initial examination forded an opportunity to amend the re- of a record for the purposes of deter- quest to narrow the scope of the re- mining whether a record must be dis- quest, or, alternatively, may agree to

605

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00615 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2507.8 45 CFR Ch. XXV (10–1–11 Edition)

be responsible for paying the antici- cumstances involved. Multiple requests pated costs. Such a request shall be involving unrelated matters will not be deemed to have been received by the aggregated. Corporation upon the date of receipt of (i) Making payment. Payment of fees the amended request. shall be forwarded to the FOIA Officer (f) Advance payment. (1) Advance pay- by check or money order payable to ment of assessable fees are not required ‘‘Corporation for National and Commu- from a requester unless: nity Service’’. A receipt for any fees (i) The Corporation estimates or de- paid will be provided upon written re- termines that assessable charges are quest. likely to exceed $250.00, and the re- (j) Fee processing. No fee shall be quester has no history of payment of charged if the administrative costs of FOIA fees. (Where the requester has a collection and processing of such fees history of prompt payment of fees, the are equal to or do not exceed the Corporation shall notify the requester amount of the fee. of the likely cost and obtain written (k) Waiver or reduction of fees. A re- assurance of full payment.) quester may, in the original request, or (ii) A requester has previously failed subsequently, apply for a waiver or re- to pay a FOIA fee charged in a timely duction of document search, review and fashion (i.e., within 30 days of the date reproduction fees. Such application of the billing). shall be in writing, and shall set forth (2) When the Corporation acts under in detail the reason(s) a fee waiver or paragraphs (f)(1)(i) or (ii) of this sec- reduction should be granted. The tion, the administrative time limits amount of any reduction requested prescribed in § 2507.5(a) and (b) will shall be specified in the request. Upon begin to run only after the Corporation receipt of such a request, the FOIA Of- has received fee payments or assur- ficer will determine whether a fee ances. waiver or reduction should be granted. (g) Interest on non-payment. Interest (1) A waiver or reduction of fees shall charges on an unpaid bill may be as- be granted only if release of the re- sessed starting on the 31st day fol- quested information to the requester is lowing the day on which the billing in the public interest because it is like- was sent. Interest will be assessed at ly to contribute significantly to public the rate prescribed in 31 U.S.C. 3717 and understanding of the operations or ac- will accrue from the date of the billing. tivities of the Corporation, and it is The Corporation may use the author- not primarily in the commercial inter- ization of the Debt Collection Act of est of the requester. The Corporation 1982 (Pub. L. 97–365, 96 Stat. 1749), as shall consider the following factors in amended, and its administrative proce- determining whether a waiver or reduc- dures, including disclosure to consumer tion of fees will be granted: reporting agencies and the use of col- (i) Does the requested information lection agencies, to encourage payment concern the operations or activities of of delinquent fees. the Corporation? (h) Aggregating requests. Where the (ii) If so, will disclosure of the infor- Corporation reasonably believes that a mation be likely to contribute to pub- requester or a group of requesters act- lic understanding of the Corporation’s ing together is attempting to divide a operations and activities? request into a series of requests for the (iii) If so, would such a contribution purpose of avoiding fees, the Corpora- be significant? tion may aggregate those requests and (iv) Does the requester have a com- charge accordingly. The Corporation mercial interest that would be may presume that multiple requests of furthered by disclosure of the informa- this type made within a 30-day period tion? have been made in order to avoid fees. (v) If so, is the magnitude of the iden- Where requests are separated by a tified commercial interest of the re- longer period, the Corporation will ag- quester sufficiently large, in compari- gregate them only where there exists a son with the public interest in disclo- solid basis for determining that aggre- sure, that disclosure is primarily in the gation is warranted under the cir- commercial interest of the requester?

606

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00616 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2507.10

(2) In applying the criteria in para- Order. Included in this category are graph (k)(1) of this section, the Cor- records required by Executive Order poration will weigh the requester’s No. 12958 (3 CFR, 1995 Comp., p. 333), as commercial interest against any public amended, to be classified in the inter- interest in disclosure. Where there is a est of national defense or foreign pol- public interest in disclosure, and that icy. interest can fairly be regarded as being (b) Records related solely to internal of greater magnitude than the request- personnel rules and practices. Included in er’s commercial interest, a fee waiver this category are internal rules and or reduction may be granted. regulations relating to personnel man- (3) When a fee waiver application has agement operations which cannot be been included in a request for records, disclosed to the public without sub- the request shall not be considered offi- stantial prejudice to the effective per- cially received until a determination is formance of significant functions of made regarding the fee waiver applica- the Corporation. tion. Such determination shall be made (c) Records specifically exempted within five working days from the date from disclosure by statute. any such request is received in writing (d) Information of a commercial or fi- by the Corporation. nancial nature including trade secrets given in confidence. Included in this cat- § 2507.9 What records will be denied egory are records containing commer- disclosure under this part? cial or financial information obtained Since the policy of the Corporation is from any person and customarily re- to make the maximum amount of in- garded as privileged and confidential formation available to the public con- by the person from whom they were ob- sistent with its other responsibilities, tained. written requests for a Corporation (e) Interagency or intra-agency memo- record made under the provisions of randa or letters which would not be avail- the FOIA may be denied when: able by law to a party other than a party (a) The record is subject to one or in litigation with the Corporation. In- more of the exemptions of the FOIA. cluded in this category are memo- (b) The record has not been described randa, letters, inter-agency and intra- clearly enough to enable the Corpora- agency communications and internal tion staff to locate it within a reason- drafts, opinions and interpretations able amount of effort by an employee prepared by staff or consultants and familiar with the files. records meant to be used as part of de- (c) The requestor has failed to com- liberations by staff, or ordinarily used ply with the procedural requirements, in arriving at policy determinations including the agreement to pay any re- and decisions. quired fee. (f) Personnel, medical and similar files. (d) For other reasons as required by Included in this category are personnel law, rule, regulation or policy. and medical information files of staff, individual national service applicants § 2507.10 What records are specifically and participants, lists of names and exempt from disclosure? home addresses, and other files or ma- Any reasonably segregable portion of terial containing private or personal a record shall be provided to any per- information, the public disclosure of son requesting such record after dele- which would amount to a clearly un- tion of portions which are exempt warranted invasion of the privacy of under this section. The following cat- any person to whom the information egories are examples of records main- pertains. tained by the Corporation which, under (g) Investigatory files. Included in this the provision of 5 U.S.C. 552(b), are ex- category are files compiled for the en- empted from disclosure: forcement of all laws, or prepared in (a) Records required to be withheld connection with government litigation under criteria established by an Executive and adjudicative proceedings, provided Order in the interest of national defense however, that such records shall be and policy and which are in fact properly made available to the extent that their classified pursuant to any such Executive production will not:

607

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00617 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2507.11 45 CFR Ch. XXV (10–1–11 Edition)

(1) Interfere with enforcement pro- the characteristics noted in paragraphs ceedings; (c)(1) (i) through (iii) of this section in (2) Deprive a person of a right to a determining whether to release the re- fair trial or an impartial adjudication; quested business information. (3) Constitute an unwarranted inva- (2)(i) Whenever the Corporation de- sion of personal privacy; cides to disclose business information (4) Disclose the identity of a con- over the objection of a business sub- fidential source, and in the case of a mitter, the Corporation shall forward record compiled by a criminal law en- to the business submitter a written no- forcement authority in the course of a tice of such decision, which shall in- criminal investigation, or by an agency clude: conducting a lawful security intel- (A) The name, and title or position, ligence investigation, confidential in- of the person responsible for denying formation furnished by confidential the submitter’s objection; source; (B) A statement of the reasons why (5) Disclose investigative techniques the business submitter’s objection was and procedures; or not sustained; (6) Endanger the life or physical safe- (C) A description of the business in- ty of law enforcement personnel. formation to be disclosed; and (D) A specific disclosure date. § 2507.11 What are the procedures for (ii) The notice of intent to disclose the release of commercial business information? business information shall be mailed by the Corporation not less than six (a) Notification of business submitter. working days prior to the date upon The Corporation shall promptly notify which disclosure will occur, with a a business submitter of any request for copy of such notice to the requester. Corporation records containing busi- (d) When notice to business submitter is ness information. The notice shall ei- not required. The notice to business ther specifically describe the nature of submitter shall not apply if: the business information requested or (1) The Corporation determines that provide copies of the records, or por- the information shall not be disclosed; tions thereof containing the business (2) The information has previously information. been published or otherwise lawfully (b) Business submitter reply. The Cor- been made available to the public; or poration shall afford a business sub- (3) Disclosure of the information is mitter 10 working days to object to dis- required by law (other than 5 U.S.C. closure, and to provide the Corporation 552). with a written statement specifying (e) Notice of suit for release. Whenever the grounds and arguments why the in- a requester brings suit to compel dis- formation should be withheld under closure of business information, the Exemption (b)(4) of the Act. Corporation shall promptly notify the (c) Considering and balancing respec- business submitter. tive interests. (1) The Corporation shall carefully consider and balance the § 2507.12 Authority. business submitter’s objections and specific grounds for nondisclosure The Corporation receives authority against such factors as: to change its governing regulations (i) The general custom or usage in from the National and Community the occupation or business to which Service Act of 1990, as amended (42 the information relates that it be held U.S.C. 12501 et seq.). confidential; and APPENDIX A TO PART 2507—FREEDOM OF (ii) The number and situation of the INFORMATION ACT REQUEST LETTER individuals who have access to such in- (SAMPLE) formation; and (iii) The type and degree of risk of fi- Freedom of Information Act Officer llll nancial injury to be expected if disclo- Name of Agency lllllllllllllll sure occurs; and Address of Agency lllllllllllll (iv) The length of time such informa- City, State, Zip Code llllllllllll tion should be regarded as retaining Re: Freedom of Information Act Request.

608

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00618 Fmt 8010 Sfmt 8003 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service Pt. 2508

Dearllll: This is a request under the [Optional] Respond for waiver of fees. I ap- Freedom of Information Act. peal the decision to deny my request for a I request that a copy of the following docu- waiver of fees. I believe that I am entitled to ments [or documents containing the fol- a waiver of fees. Disclosure of the documents lowing information] be provided to me: I requested is in the public interest because [identify the documents or information as the information is likely to contribute sig- specifically as possible]. nificantly to public understanding of the op- [Sample requester descriptions] eration or activities of government and is —A representative of the news media affili- not primarily in my commercial interest. ated with the llll newspaper (magazine, (Provide details) television station, etc.) and this request is [Optional] I appeal the decision to require made as part of news gathering and not for me to pay review costs for this request. I am not seeking the documents for a commercial commercial use. use. (Provide details) —Affiliated with an educational or non- (Optional] I appeal the decision to require commercial scientific institution, and this me to pay search charges for this request. I request is not for commercial use. am a reporter seeking information as part of —An individual seeking information for news gathering and not for commercial use. personal use and not for commercial use. Thank you for your consideration of this —Affiliated with a private corporation and appeal. am seeking information for use in the com- pany’s business. Sincerely, [Optional] I am willing to pay fees for this Name llllllllllllllllllll Address request up to a maximum of $llll. If you lllllllllllllllllll City, State, Zip Code estimate that the fees will exceed this limit, llllllllllll Telephone Number [Optional] llllllll please inform me first. [Optional] I request a waiver of all fees for this request. Disclosure of the requested in- PART 2508—IMPLEMENTATION OF formation to me is in the public interest be- THE PRIVACY ACT OF 1974 cause it is likely to contribute significantly to public understanding of the operations or Sec. activities of government and is not primarily 2508.1 Definitions. in my commercial interest. [Include a spe- 2508.2 What is the purpose of this part? cific explanation.] 2508.3 What is the Corporation’s Privacy In order to help you determine my status Act policy? to assess fees, you should know that I am 2508.4 When can Corporation records be dis- (insert a suitable description of the requester closed? and the purpose of the request). 2508.5 When does the Corporation publish Thank you for your consideration of this its notice of its system of records? request. 2508.6 When will the Corporation publish a Sincerely, notice for new routine uses of informa- Name llllllllllllllllllll tion in its system of records? Address lllllllllllllllllll 2508.7 To whom does the Corporation pro- City, State, Zip Code llllllllllll vide reports to regarding changes in its Telephone Number [Optional] llllllll system of records? 2508.8 Who is responsible for establishing APPENDIX B TO PART 2507—FREEDOM OF the Corporation’s rules of conduct for Privacy Act compliance? INFORMATION ACT APPEAL FOR RE- 2508.9 What officials are responsible for the LEASE OF INFORMATION (SAMPLE) security, management and control of Appeal Officer llllllllllllllll Corporation record keeping systems? 2508.10 Who has the responsibility for main- Name of Agency lllllllllllllll taining adequate technical, physical, and Address of Agency lllllllllllll security safeguards to prevent unauthor- City, State, Zip Code llllllllllll ized disclosure or destruction of manual Re: Freedom of Information Act Appeal. and automatic record systems? Dearllll: This is an appeal under the 2508.11 How shall offices maintaining a sys- Freedom of Information Act. tem of records be accountable for those On (date), I requested documents under the records to prevent unauthorized disclo- Freedom of Information Act. My request was sure of information? assigned the following identification number 2508.12 What are the contents of the sys- llll. On (date), I received a response to tems of records that are to be main- my request in a letter signed by (name of of- tained by the Corporation? ficial). I appeal the denial of my request. 2508.13 What are the procedures for acquir- [Optional] The documents that were with- ing access to Corporation records by an held must be disclosed under the FOIA be- individual about whom a record is main- cause * * *. tained?

609

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00619 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2508.1 45 CFR Ch. XXV (10–1–11 Edition)

2508.14 What are the identification require- cial Privacy Act request. The Privacy ments for individuals who request access Act Officer is further delegated the au- to records? thority to make the initial determina- 2508.15 What are the procedures for request- tion on all requests to amend records. ing inspection of, amendment or correction to, or appeal of an individual’s (i) Record means any document or records maintained by the Corporation other information about an individual other than that individual’s official per- maintained by the agency whether col- sonnel file? lected or grouped, and including, but 2508.16 What are the procedures for filing an not limited to, information regarding appeal for refusal to amend or correct education, financial transactions, med- records? ical history, criminal or employment 2508.17 When shall fees be charged and at what rate? history, or any other personal informa- 2508.18 What are the penalties for obtaining tion that contains the name or other a record under false pretenses? personal identification number, sym- 2508.19 What Privacy Act exemptions or bol, etc. assigned to such individual. control of systems of records are exempt (j) Routine use means, with respect to from disclosure? the disclosure of a record, the use of 2508.20 What are the restrictions regarding such record for a purpose which is com- the release of mailing lists? patible with the purpose for which it AUTHORITY: 5 U.S.C. 552a; 42 U.S.C. 12501 et was collected. seq.; 42 U.S.C. 4950 et seq. (k) System of records means a group of SOURCE: 64 FR 19294, Apr. 20, 1999, unless any records under the maintenance and otherwise noted. control of the Corporation from which information is retrieved by use of the § 2508.1 Definitions. name of an individual or by some per- (a) Amend means to make a correc- sonal identifier of the individual. tion to, or expunge any portion of, a record about an individual which that § 2508.2 What is the purpose of this individual believes is not accurate, rel- part? evant, timely, or complete. The purpose of this part is to set (b) Appeal Officer means the indi- forth the basic policies of the Corpora- vidual delegated the responsibility to tion governing the maintenance of its act on all appeals filed under the Pri- system of records which contains per- vacy Act. sonal information concerning its em- (c) Chief Executive Officer means the ployees as defined in the Privacy Act (5 Head of the Corporation. U.S.C. 552a). Records included in this (d) Corporation means the Corpora- part are those described in aforesaid tion for National and Community Serv- act and maintained by the Corporation ice. and/or any component thereof. (e) Individual means any citizen of the United States or an alien lawfully § 2508.3 What is the Corporation’s Pri- admitted for permanent residence. vacy Act policy? (f) Maintain means to collect, use, It is the policy of the Corporation to store, disseminate or any combination protect, preserve, and defend the right of these recordkeeping functions; exer- of privacy of any individual about cise of control over and therefore, re- whom the Corporation maintains per- sponsibility and accountability for, sonal information in any system of systems of records. records and to provide appropriate and (g) Personnel record means any infor- complete access to such records includ- mation about an individual that is ing adequate opportunity to correct maintained in a system of records by any errors in said records. Further, it the Corporation that is needed for per- is the policy of the Corporation to sonnel management or processes such maintain its records in such a manner as staffing, employment development, that the information contained therein retirement, grievances, and appeals. is, and remains material and relevant (h) Privacy Act Officer means the indi- to the purposes for which it is received vidual delegated the authority to allow in order to maintain its records with access to, the release of, or the with- fairness to the individuals who are the holding of records pursuant to an offi- subjects of such records.

610

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00620 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2508.5

§ 2508.4 When can Corporation records a routine use or in situations in which be disclosed? the misconduct is directly related to (a) (1) The Corporation will not dis- the purpose for which the record is close any record that is contained in maintained; its system of records by any means of (viii) To a person pursuant to a show- communication to any person, or to ing of compelling circumstances affect- another agency, except pursuant to a ing the health or safety of any indi- written request by, or with the prior vidual if, upon such disclosure, notifi- written consent of the individual to cation is transmitted to the last known whom the record pertains, unless dis- address of such individual; closure of the record would be: (ix) To either House of Congress, or, (i) To employees of the Corporation to the extent of matter within its juris- who maintain the record and who have diction, any committee or sub- a need for the record in the perform- committee thereof, any joint com- ance of their official duties; (ii) When required under the provi- mittee of Congress or subcommittee of sions of the Freedom of Information any such joint committee; Act (5 U.S.C. 552); (x) To the Comptroller General or (iii) For routine uses as appropriately any of his or her authorized representa- published in the annual notice of the tives, in the course of the performance FEDERAL REGISTER; of official duties in the General Ac- (iv) To the Bureau of the Census for counting Office; purposes of planning or carrying out a (xi) Pursuant to an order of a court census or survey or related activity of competent jurisdiction served upon pursuant to the provisions of title 13; the Corporation pursuant to 45 CFR (v) To a recipient who has provided 1201.3, and provided that if any such the Corporation with advance adequate record is disclosed under such compul- written assurance that the record will sory legal process and subsequently be used solely as a statistical research made public by the court which issued or reporting record, and the record is it, the Corporation must make a rea- to be transferred in a form that is not sonable effort to notify the individual individually identifiable; to whom the record pertains of such (vi) To the National Archives and disclosure; Records Administration of the United States as a record which has sufficient (xii) To a contractor, expert, or con- historical or other value to warrant its sultant of the Corporation (or an office continued preservation by the United within the Corporation) when the pur- States Government, or for evaluation pose of the release to perform a survey, by the Archivist of the United States audit, or other review of the Corpora- or the designee of the Archivist to de- tion’s procedures and operations; and termine whether the record has such (xiii) To a consumer reporting agency value; in accordance with section 3711(f) of (vii) To another agency or to an in- title 31. strumentality of any governmental jurisdiction within or under the control § 2508.5 When does the Corporation of the United States for civil or crimi- publish its notice of its system of nal law enforcement activity if the ac- records? tivity is authorized by law, and if the The Corporation shall publish annu- head of the agency or instrumentality ally a notice of its system of records has made a written request to the Cor- maintained by it as defined herein in poration for such records specifying the format prescribed by the General the particular portion desired and the Services Administration in the FED- law enforcement activity for which the ERAL REGISTER; provided, however, record is sought. Such a record may that such publication shall not be also be disclosed by the Corporation to made for those systems of records the law enforcement agency on its own maintained by other agencies while in initiative in situations in which criminal conduct is suspected provided that the temporary custody of the Corpora- such disclosure has been established as tion.

611

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00621 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2508.6 45 CFR Ch. XXV (10–1–11 Edition)

§ 2508.6 When will the Corporation ject of such records. All employees publish a notice for new routine shall be informed of all implications of uses of information in its system of the Act in this area including the civil records? remedies provided under 5 U.S.C. At least 30 days prior to publication 552a(g)(1) and the fact that the Cor- of information under the preceding sec- poration may be subject to civil rem- tion, the Corporation shall publish in edies for failure to comply with the the FEDERAL REGISTER a notice of its provisions of the Privacy Act and this intention to establish any new routine regulation. use of any system of records main- (b) The Chief Executive Officer shall tained by it with an opportunity for also ensure that all personnel having public comments on such use. Such no- access to records receive adequate tice shall contain the following: training in the protection of the secu- (a) The name of the system of records rity of personal records, and that ade- for which the routine use is to be es- quate and proper storage is provided tablished. for all such records with sufficient se- (b) The authority for the system. curity to assure the privacy of such (c) The purpose for which the record records. is to be maintained. § 2508.9 What officials are responsible (d) The proposed routine use(s). for the security, management and (e) The purpose of the routine use(s). control of Corporation record keep- (f) The categories of recipients of ing systems? such use. In the event of any request (a) The Director of Administration for an addition to the routine uses of and Management Services shall have the systems which the Corporation overall control and supervision of the maintains, such request may be sent to security of all systems of records and the following office: Corporation for shall be responsible for monitoring the National and Community Service, Di- security standards set forth in this reg- rector, Administration and Manage- ulation. ment Services, Room 6100, 1201 New (b) A designated official (System York Avenue, NW, Washington, DC Manager) shall be named who shall 20525. have management responsibility for each record system maintained by the § 2508.7 To whom does the Corpora- Corporation and who shall be respon- tion provide reports regarding changes in its system of records? sible for providing protection and accountability for such records at all The Corporation shall provide to the times and for insuring that such Committee on Government Operations records are secured in appropriate con- of the House of Representatives, the tainers whenever not in use or in the Committee on Governmental Affairs of direct control of authorized personnel. the Senate, and the Office of Manage- ment and Budget, advance notice of § 2508.10 Who has the responsibility any proposal to establish or alter any for maintaining adequate technical, system of records as defined herein. physical, and security safeguards to This report will be submitted in ac- prevent unauthorized disclosure or cordance with guidelines provided by destruction of manual and automatic record systems? the Office of Management and Budget. The Chief Executive Officer has the § 2508.8 Who is responsible for estab- responsibility of maintaining adequate lishing the Corporation’s rules of technical, physical, and security safe- conduct for Privacy Act compli- guards to prevent unauthorized disclo- ance? sure or destruction of manual and (a) The Chief Executive Officer shall automatic record systems. These secu- ensure that all persons involved in the rity safeguards shall apply to all sys- design, development, operation or tems in which identifiable personal maintenance of any system of records data are processed or maintained, in- as defined herein are informed of all re- cluding all reports and outputs from quirements necessary to protect the such systems that contain identifiable privacy of individuals who are the sub- personal information. Such safeguards

612

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00622 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2508.11

must be sufficient to prevent negligent, ment Services. The written log shall be accidental, or unintentional disclosure, maintained at all times. modification or destruction of any per- (6) The Corporation shall ensure that sonal records or data, and must fur- all persons whose duties require access thermore minimize, to the extent prac- to and use of records contained in a ticable, the risk that skilled techni- system of records are adequately cians or knowledgeable persons could trained to protect the security and pri- improperly obtain access to modify or vacy of such records. destroy such records or data and shall (7) The disposal and destruction of further insure against such casual records within a system of records entry by unskilled persons without of- shall be in accordance with rules pro- ficial reasons for access to such records mulgated by the General Services Ad- or data. ministration. (a) Manual systems. (1) Records con- (b) Automated systems. (1) Identifiable tained in a system of records as defined personal information may be processed, herein may be used, held or stored only stored or maintained by automated data systems only where facilities or where facilities are adequate to pre- conditions are adequate to prevent un- vent unauthorized access by persons authorized access to such systems in within or outside the Corporation. any form. Whenever such data, whether (2) All records, when not under the contained in punch cards, magnetic personal control of the employees au- tapes or discs, are not under the per- thorized to use the records, must be sonal control of an authorized person, stored in a locked metal filing cabinet. such information must be stored in a Some systems of records are not of locked or secured room, or in such such confidential nature that their dis- other facility having greater safe- closure would constitute a harm to an guards than those provided for herein. individual who is the subject of such (2) Access to and use of identifiable record. However, records in this cat- personal data associated with auto- egory shall also be maintained in mated data systems shall be limited to locked metal filing cabinets or main- those persons whose duties require tained in a secured room with a lock- such access. Proper control of personal ing door. data in any form associated with auto- (3) Access to and use of a system of mated data systems shall be main- records shall be permitted only to per- tained at all times, including mainte- sons whose duties require such access nance of accountability records show- within the Corporation, for routine ing disposition of input and output doc- uses as defined in § 2508.4 as to any uments. given system, or for such other uses as (3) All persons whose duties require may be provided herein. access to processing and maintenance (4) Other than for access within the of identifiable personal data and auto- Corporation to persons needing such mated systems shall be adequately records in the performance of their of- trained in the security and privacy of ficial duties or routine uses as defined personal data. in § 2508.4, or such other uses as pro- (4) The disposal and disposition of vided herein, access to records within a identifiable personal data and auto- system of records shall be permitted mated systems shall be done by shred- only to the individual to whom the ding, burning or in the case of tapes or record pertains or upon his or her writ- discs, degaussing, in accordance with any regulations now or hereafter pro- ten request to the Director, Adminis- posed by the General Services Adminis- tration and Management Services. tration or other appropriate authority. (5) Access to areas where a system of records is stored will be limited to § 2508.11 How shall offices maintain- those persons whose duties require ing a system of records be account- work in such areas. There shall be an able for those records to prevent accounting of the removal of any unauthorized disclosure of informa- records from such storage areas uti- tion? lizing a written log, as directed by the (a) Each office maintaining a system Director, Administration and Manage- of records shall account for all records

613

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00623 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2508.12 45 CFR Ch. XXV (10–1–11 Edition)

within such system by maintaining a terminations about any individual with written log in the form prescribed by such accuracy, relevance, timeliness, the Director, Administration and Man- and completeness as is reasonably nec- agement Services, containing the fol- essary to assure fairness to the indi- lowing information: vidual in the determination; (1) The date, nature, and purpose of (b) In situations in which the infor- each disclosure of a record to any per- mation may result in adverse deter- son or to another agency. Disclosures minations about such individual’s made to employees of the Corporation rights, benefits and privileges under in the normal course of their duties, or any Federal program, all information pursuant to the provisions of the Free- placed in a system of records shall, to dom of Information Act, need not be the greatest extent practicable, be col- accounted for. lected from the individual to whom the (2) Such accounting shall contain the record pertains. name and address of the person or (c) Each form or other document that agency to whom the disclosure was an individual is expected to complete made. in order to provide information for any (3) The accounting shall be main- system of records shall have appended tained in accordance with a system of thereto, or in the body of the docu- records approved by the Director, Ad- ment: ministration and Management Serv- (1) An indication of the authority au- ices, as sufficient for the purpose but in thorizing the solicitation of the infor- any event sufficient to permit the con- mation and whether the provision of struction of a listing of all disclosures the information is mandatory or vol- at appropriate periodic intervals. untary. (4) The accounting shall reference (2) The purpose or purposes for which any justification or basis upon which the information is intended to be used. any release was made including any written documentation required when (3) Routine uses which may be made records are released for statistical or of the information and published pur- law enforcement purposes under the suant to § 2508.6. provisions of subsection (b) of the Pri- (4) The effect on the individual, if vacy Act of 1974 (5 U.S.C. 552a). any, of not providing all or part of the (5) For the purpose of this part, the required or requested information. system of accounting for disclosures is (d) Records maintained in any sys- not a system of records under the defi- tem of records used by the Corporation nitions hereof, and need not be main- to make any determination about any tained within a system of records. individual shall be maintained with (6) Any subject individual may re- such accuracy, relevancy, timeliness, quest access to an accounting of disclo- and completeness as is reasonably nec- sures of a record. The subject indi- essary to assure fairness to the individual shall make a request for access vidual in the making of any determina- to an accounting in accordance with tion about such individual, provided, § 2508.13. An individual will be granted however, that the Corporation shall access to an accounting of the disclo- not be required to update or keep cur- sures of a record in accordance with rent retired records. the procedures of this subpart which (e) Before disseminating any record govern access to the related record. Ac- about any individual to any person cess to an accounting of a disclosure of other than an employee in the Corpora- a record made under § 2508.13 may be tion, unless the dissemination is made granted at the discretion of the Direc- pursuant to the provisions of the Free- tor, Administration and Management dom of Information Act (5 U.S.C. 552), Services. the Corporation shall make reasonable efforts to ensure that such records are, § 2508.12 What are the contents of the or were at the time they were col- systems of record that are to be lected, accurate, complete, timely and maintained by the Corporation? relevant for Corporation purposes. (a) The Corporation shall maintain (f) Under no circumstances shall the all records that are used in making de- Corporation maintain any record about

614

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00624 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2508.14

any individual with respect to or de- (e) With regard to any request for scribing how such individual exercises disclosure of a record, the following rights guaranteed by the First Amend- procedures shall apply: ment of the Constitution of the United (1) Medical or psychological records States, unless expressly authorized by shall be disclosed to an individual un- statute or by the individual about less, in the judgment of the Corpora- whom the record is maintained, or un- tion, access to such records might have less pertinent to and within the scope an adverse effect upon such individual. of an authorized law enforcement ac- When such determination has been tivity. made, the Corporation may require (g) In the event any record is dis- that the information be disclosed only closed as a result of the order of a to a physician chosen by the requesting court of appropriate jurisdiction, the individual. Such physician shall have Corporation shall make reasonable ef- full authority to disclose all or any forts to notify the individual whose portion of such record to the request- record was so disclosed after the proc- ing individual in the exercise of his or ess becomes a matter of public record. her professional judgment. (2) Test material and copies of cer- § 2508.13 What are the procedures for tificates or other lists of eligibles or acquiring access to Corporation any other listing, the disclosure of records by an individual about which would violate the privacy of any whom a record is maintained? other individual, or be otherwise ex- (a) Any request for access to records empted by the provisions of the Pri- from any individual about whom a vacy Act, shall be removed from the record is maintained will be addressed record before disclosure to any indi- to the Corporation for National and vidual to whom the record pertains. Community Service, Office of the Gen- § 2508.14 What are the identification eral Counsel, Attn: Privacy Act Officer, requirements for individuals who Room 8200, 1201 New York Avenue, NW, request access to records? Washington, DC 20525, or delivered in person during regular business hours, The Corporation shall require reason- whereupon access to his or her record, able identification of all individuals who request access to records to ensure or to any information contained there- that records are disclosed to the proper in, if determined to be releasable, shall person. be provided. (a) In the event an individual re- (b) If the request is made in person, quests disclosure in person, such indi- such individual may, upon his or her vidual shall be required to show an request, be accompanied by a person of identification card such as a drivers li- his or her choosing to review the cense, etc., containing a photo and a record and shall be provided an oppor- sample signature of such individual. tunity to have a copy made of any Such individual may also be required record about such individual. to sign a statement under oath as to (c) A record may be disclosed to a his or her identity, acknowledging that representative chosen by the individual he or she is aware of the penalties for as to whom a record is maintained improper disclosure under the provi- upon the proper written consent of sions of the Privacy Act. such individual. (b) In the event that disclosure is re- (d) A request made in person will be quested by mail, the Corporation may promptly complied with if the records request such information as may be sought are in the immediate custody of necessary to reasonably ensure that the Corporation. Mailed requests or the individual making such request is personal requests for documents in properly identified. In certain cases, storage or otherwise not immediately the Corporation may require that a available, will be acknowledged within mail request be notarized with an indi- 10 working days, and the information cation that the notary received an ac- requested will be promptly provided knowledgment of identity from the in- thereafter. dividual making such request.

615

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00625 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2508.15 45 CFR Ch. XXV (10–1–11 Edition)

(c) In the event an individual is un- of information required in the event able to provide suitable documentation the individual wishes to see less than or identification, the Corporation may all records maintained about him or require a signed notarized statement her. asserting the identity of the individual (1) In the event an individual, after and stipulating that the individual un- examination of his or her record, de- derstands that knowingly or willfully sires to request an amendment or cor- seeking or obtaining access to records rection of such records, the request about another person under false pre- must be submitted in writing and ad- tenses is punishable by a fine of up to dressed to the Corporation for National $5,000. and Community Service, Office of the (d) In the event a requestor wishes to General Counsel, Attn: Privacy Act Of- be accompanied by another person ficer, Room 8200, 1201 New York Ave- while reviewing his or her records, the nue, NW, Washington, DC 20525. In his Corporation may require a written or her written request, the individual statement authorizing discussion of his shall specify: or her records in the presence of the ac- (i) The system of records from which companying representative or other the record is retrieved; persons. (ii) The particular record that he or § 2508.15 What are the procedures for she is seeking to amend or correct; requesting inspection of, amend- (iii) Whether he or she is seeking an ment or correction to, or appeal of addition to or a deletion or substi- an individual’s records maintained tution of the record; and, by the Corporation other than that individual’s official personnel file? (iv) His or her reasons for requesting amendment or correction of the record. (a) A request for inspection of any (2) A request for amendment or cor- record shall be made to the Director, rection of a record will be acknowl- Administration and Management Serv- ices. Such request may be made by edged within 10 working days of its re- mail or in person provided, however, ceipt unless the request can be proc- that requests made in person may be essed and the individual informed of required to be made upon a form pro- the Privacy Act Officer’s decision on vided by the Director of Administra- the request within that 10 day period. tion and Management Services who (3) If the Privacy Act Officer agrees shall keep a current list of all systems that the record is not accurate, timely, of records maintained by the Corpora- or complete, based on a preponderance tion and published in accordance with of the evidence, the record will be cor- the provisions of this regulation. How- rected or amended. The record will be ever, the request need not be in writing deleted without regard to its accuracy, if the individual makes his or her re- if the record is not relevant or nec- quest in person. The requesting indi- essary to accomplish the Corporation’s vidual may request that the Corpora- function for which the record was pro- tion compile all records pertaining to vided or is maintained. In either case, such individual at any named Service the individual will be informed in writ- Center/State Office, AmeriCorps*NCCC ing of the amendment, correction, or Campus, or at Corporation Head- deletion and, if accounting was made of quarters in Washington, DC, for the in- prior disclosures of the record, all pre- dividual’s inspection and/or copying. In vious recipients of the record will be the event an individual makes such re- informed of the corrective action quest for a compilation of all records taken. pertaining to him or her in various lo- (4) If the Privacy Act Officer does not cations, appropriate time for such com- agree that the record should be amend- pilation shall be provided as may be ed or corrected, the individual will be necessary to promptly comply with informed in writing of the refusal to such requests. amend or correct the record. He or she (b) Any such requests should contain, will also be informed that he or she at a minimum, identifying information may appeal the refusal to amend or needed to locate any given record and a correct his or her record in accordance brief description of the item or items with § 2508.17.

616

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00626 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2508.17

(5) Requests to amend or correct a will be informed of the corrective ac- record governed by the regulation of tion taken. another government agency will be for- (d) If the appeal is denied, the subject warded to such government agency for individual will be informed in writing: processing and the individual will be (1) Of the denial and reasons for the informed in writing of the referral. denial; (c) In the event an individual dis- (2) That he or she has a right to seek agrees with the Privacy Act Officer’s judicial review of the denial; and initial determination, he or she may (3) That he or she may submit to the appeal such determination to the Ap- Appeal Officer a concise statement of peal Officer in accordance with disagreement to be associated with the § 2508.17. Such request for review must disputed record and disclosed whenever be made within 30 days after receipt by the record is disclosed. the requestor of the initial refusal to (e) Whenever an individual submits a amend. statement of disagreement to the Ap- peal Officer in accordance with para- § 2508.16 What are the procedures for graph (d)(3) of this section, the record filing an appeal for refusal to will be annotated to indicate that it is amend or correct records? disputed. In any subsequent disclosure, (a) In the event an individual desires a copy of the subject individual’s state- to appeal any refusal to correct or ment of disagreement will be disclosed amend records, he or she may do so by with the record. If the appeal authority deems it appropriate, a concise state- addressing, in writing, such appeal to ment of the Appeal Officer’s reasons for the Corporation for National and Com- denying the individual’s appeal may munity Service, Office of the Chief Op- also be disclosed with the record. While erating Officer, Attn: Appeal Officer, the individual will have access to this 1201 New York Avenue NW, Wash- statement of reasons, such statement ington, DC 20525. Although there is no will not be subject to correction or time limit for such appeals, the Cor- amendment. Where an accounting was poration shall be under no obligation made of prior disclosures of the record, to maintain copies of original requests all previous recipients of the record or responses thereto beyond 180 days will be provided a copy of the individ- from the date of the original request. ual’s statement of disagreement, as (b) An appeal will be completed with- well as the statement, if any, of the in 30 working days from its receipt by Appeal Officer’s reasons for denying the Appeal Officer; except that, the ap- the individual’s appeal. peal authority may, for good cause, extend this period for an additional 30 § 2508.17 When shall fees be charged days. Should the appeal period be ex- and at what rate? tended, the individual appealing the (a) No fees shall be charged for search original refusal will be informed in time or for any other time expended by writing of the extension and the cir- the Corporation to review or produce a cumstances of the delay. The individ- record except where an individual re- ual’s request for access to or to amend quests that a copy be made of the or correct the record, the Privacy Act record to which he or she is granted ac- Officer’s refusal to amend or correct cess. Where a copy of the record must the record, and any other pertinent be made in order to provide access to material relating to the appeal will be the record (e.g., computer printout reviewed. No hearing will be held. where no screen reading is available), (c) If the Appeal Officer determines the copy will be made available to the that the record that is the subject of individual without cost. the appeal should be amended or cor- (b) The applicable fee schedule is as rected, the record will be amended or follows: corrected and the individual will be in- (1) Each copy of each page, up to formed in writing of the amendment or 81⁄2″×14″, made by photocopy or similar correction. Where an accounting was process is $0.10 per page. made of prior disclosures of the record, (2) Each copy of each microform all previous recipients of the record frame printed on paper is $0.25.

617

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00627 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2508.18 45 CFR Ch. XXV (10–1–11 Edition)

(3) Each aperture card is $0.25. guilty of a misdemeanor and fined not (4) Each 105-mm fiche is $0.25. more than $5,000 (5 U.S.C. 552a(I)(3)). (5) Each 100′ foot role of 35-mm (b) A person who falsely or fraudu- microfilm is $7.00. lently attempts to obtain records (6) Each 100′ foot role of 16-mm under the Privacy Act also may be sub- microfilm is $6.00. ject to prosecution under such other (7) Each page of computer printout criminal statutes as 18 U.S.C. 494, 495 without regard to the number of car- and 1001. bon copies concurrently printed is $0.20. § 2508.19 What Privacy Act exemptions (8) Copying records not susceptible to or control of systems of records are photocopying (e.g., punch cards or exempt from disclosure? magnetic tapes), at actual cost to be (a) Certain systems of records that determined on a case-by-case basis. are maintained by the Corporation are (9) Other copying forms (e.g., typing exempted from provisions of the Pri- or printing) will be charged at direct vacy Act in accordance with exemp- costs, including personnel and equip- tions (j) and (k) of 5 U.S.C. 552a. ment costs. (1) Exemption of Inspector General (c) All copying fees shall be paid by system of records. Pursuant to, and the individual before the copying will limited by 5 U.S.C. 552a(j)(2), the sys- be undertaken. Payments shall be tem of records maintained by the Of- made by check or money order payable fice of the Inspector General that con- to the ‘‘Corporation for National and tains the Investigative Files shall be Community Service,’’ and provided to exempted from the provisions of 5 the Privacy Act Officer processing the U.S.C. 552a, except subsections (b), (c) request. (1) and (2), (e)(4) (A) through (F), (d) A copying fee shall not be charged (e)(6)(7), (9), (10), and (11), and (I), and or collected, or alternatively, it may 45 CFR 2508.11, 2508.12, 2508.13, 2508.14, be reduced, when it is determined by 2508.15, 2508.16, and 2508.17, insofar as the Privacy Act Officer, based on a petition, that the petitioning individual the system contains information per- is indigent and that the Corporation’s taining to criminal law enforcement resources permit a waiver of all or part investigations. of the fee. An individual is deemed to (2) Pursuant to, and limited by 5 be indigent when he or she is without U.S.C. 552a(k)(2), the system of records income or lacks the resources suffi- maintained by the Office of the Inspec- cient to pay the fees. tor General that contains the Inves- (e) Special and additional services tigative Files shall be exempted from 5 provided at the request of the indi- U.S.C. 552a (c)(3), (d), (e)(1), (e)(4) (G), vidual, such as certification or authen- (H), and (I), and (f), and 45 CFR 2508.11, tication, postal insurance and special 2508.12, 2508.13, 2508.14, 2508.15, 2508.16, mailing arrangement costs, will be and 2508.17, insofar as the system con- charged to the individual. tains investigatory materials compiled (f) A copying fee totaling $5.00 or less for law enforcement purposes. shall be waived, but the copying fees (b) Exemptions to the General Coun- for contemporaneous requests by the sel system of records. Pursuant to, and same individual shall be aggregated to limited by 5 U.S.C. 552a(d)(5), the sys- determine the total fee. tem of records maintained by the Of- fice of the General Counsel that con- § 2508.18 What are the penalties for obtaining a record under false pre- tains the Legal Office Litigation/Cor- tenses? respondence Files shall be exempted from the provisions of 5 U.S.C. The Privacy Act provides, in perti- 552a(d)(5), and 45 CFR 2508.4, insofar as nent part that: the system contains information com- (a) Any person who knowingly and piled in reasonable anticipation of a willfully requests to obtain any record civil action or proceeding. concerning an individual from the Cor- poration under false pretenses shall be

618

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00628 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2510.20

§ 2508.20 What are the restrictions re- of an organization that receives assist- garding the release of mailing lists? ance under the Act and does not in- An individual’s name and address clude program costs. may not be sold or rented by the Cor- (1) For organizations that have an es- poration unless such action is specifi- tablished indirect cost rate for Federal cally authorized by law. This section awards, administrative costs mean does not require the withholding of those costs that are included in the or- names and addresses otherwise per- ganization’s indirect cost rate. Such mitted to be made public. costs are generally identified with the organization’s overall operation and PART 2510—OVERALL PURPOSES are further described in Office of Man- AND DEFINITIONS agement and Budget Circulars A–21 (Cost Principles for Educational Insti- tutions), A–87 (Cost Principles for Sec. 2510.10 What are the purposes of the pro- State, Local and Indian Tribal Govern- grams and activities of the Corporation ments), and A–122 (Cost Principles for for National and Community Service? Nonprofit Organizations) that provide 2510.20 Definitions. guidance on indirect cost to Federal

AUTHORITY: 42 U.S.C. 12511. agencies. Copies of Office of Manage- ment and Budget Circulars are avail- § 2510.10 What are the purposes of the able from the Executive Office of the programs and activities of the Cor- President, 725 17th Street, NW., room poration for National and Commu- 2200, New Executive Office Building, nity Service? Washington, D.C. 20503. They may also The National and Community Serv- be accessed on-line at: http:// ice Trust Act of 1993 established the www.whitehouse.gov/WH/EOP/OMB/ Corporation for National and Commu- grants/index.html. nity Service (the Corporation). The (2) For organizations that do not Corporation’s mission is to engage have an established indirect cost rate Americans of all ages and backgrounds for Federal awards, administrative in community-based service. This serv- costs include: ice will address the Nations edu- (i) Costs for financial, accounting, cational, public safety, human, and en- auditing, contracting, or general legal vironmental needs to achieve direct services except in unusual cases when and demonstrable results. In doing so, they are specifically approved in writ- the Corporation will foster civic re- ing by the Corporation as program sponsibility, strengthen the ties that costs. bind us together as a people, and pro- (ii) Costs for internal evaluation, in- vide educational opportunity for those cluding overall organizational manage- who make a substantial commitment ment improvement costs (except for to service. The Corporation will under- independent evaluations and internal take activities and provide assistance evaluations of a program or project). to States and other eligible entities to (iii) Costs for general liability insur- support national and community serv- ance that protects the organization(s) ice programs and to achieve other pur- responsible for operating a program or poses consistent with its mission. project, other than insurance costs [59 FR 13783, Mar. 23, 1994] solely attributable to a program or project. § 2510.20 Definitions. Adult Volunteer. (1) The term adult The following definitions apply to volunteer means an individual, such as terms used in 45 CFR parts 2510 an older adult, an individual with dis- through 2550: ability, a parent, or an employee of a Act. The term Act means the National business of public or private nonprofit and Community Service Act of 1990, as organization, who— amended (42 U.S.C. 12501 et seq.). (i) Works without financial remu- Administrative costs. The term admin- neration in an educational institution istrative costs means general or central- to assist students of out-of-school ized expenses of overall administration youth; and

619

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00629 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2510.20 45 CFR Ch. XXV (10–1–11 Edition)

(2) Is beyond the age of compulsory Children. The term children means in- school attendance in the State in dividuals 17 years of age and younger. which the educational institution is lo- Community-based agency. The term cated. community-based agency means a pri- AmeriCorps. The term AmeriCorps vate nonprofit organization (including means the combination of all a church or other religious entity) AmeriCorps programs and participants. that— AmeriCorps educational award. The (1) Is representative of a community term AmeriCorps educational award or a significant segment of a commu- means a national service educational nity; and award described in section 147 of the (2) Is engaged in meeting edu- Act. cational, public safety, human, or envi- AmeriCorps participant. The term ronmental community needs. AmeriCorps participant means any indi- Community-based entity. The term vidual who is serving in— community-based entity means a pub- (1) An AmeriCorps program; lic or private nonprofit organization (2) An approved AmeriCorps position; that— or (1) Has experience with meeting (3) Both. unmet human, educational, environmental, or public safety needs; and AmeriCorps program. The term (2) Meets other such criteria as the AmeriCorps program means— Chief Executive Officer may establish. (1) Any program that receives ap- Corporation. The term Corporation proved AmeriCorps positions; means the Corporation for National (2) Any program that receives Cor- and Community Service established poration funds under section 121 of the under section 191 of the Act. Act; or Economically disadvantaged. The term (3) Both. economically disadvantaged, with re- Approved AmeriCorps position. The spect to an individual, has the same term approved AmeriCorps position meaning as such term as defined in the means an AmeriCorps position for Job Training Partnership Act (29 which the Corporation has approved U.S.C. 1503(8)). the provision of an AmeriCorps edu- Elementary school. The term elemen- cational award as one of the benefits to tary school has the same meaning given be provided for successful service in the term in section 1471(8) of the Ele- the position. mentary and Secondary Education Act Approved Silver Scholar position. The of 1965 (20 U.S.C. 2891(8)). term approved Silver Scholar position Empowerment zone. The term em- means a Silver Scholar position for powerment zone means an area des- which the Corporation has approved a ignated as an empowerment zone by Silver Scholar education award. the Secretary of the Department of Approved Summer of Service position. Housing and Urban Development or the The term approved Summer of Service po- Secretary of the Department of Agri- sition means a Summer of Service posi- culture. tion for which the Corporation has ap- Grantmaking entity. (1) For school- proved a Summer of Service education based programs, the term grantmaking award. entity means a public or private non- Carry out. The term carry out, when profit organization experienced in serv- used in connection with an AmeriCorps ice-learning that— program described in section 122 of the (i) Submits an application to make Act, means the planning, establish- grants for school-based service-learn- ment, operation, expansion, or replica- ing programs in two or more States; tion of the program. and Chief Executive Officer. The term Chief (ii) Was in existence at least one year Executive Officer, except when used to before the date on which the organiza- refer to the chief executive officer of a tion submitted the application. State, means the Chief Executive Offi- (2) For community-based programs, cer of the Corporation appointed under the term grantmaking entity means a section 193 of the Act. qualified organization that—

620

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00630 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2510.20

(i) Submits an application to make entity described in paragraph (1) of this grants to qualified organizations to im- definition. plement, operate, expand, or replicate Individual with a disability. Except as community-based service programs provided in section 175(a) of the Act, that provide for educational, public the term individual with a disability has safety, human, or environmental serv- the meaning given the term in section ice by school-age youth in two or more 7(8)(B) of the Rehabilitation Act of 1973 States; and (29 U.S.C. 706(8)(B)), which includes in- (ii) Was in existence at least one year dividuals with cognitive and other before the date on which the organiza- mental impairments, as well as indi- tion submitted the application. viduals with physical impairments, Higher Education partnerships. The who meet the criteria in that defini- term higher education partnership tion. means one or more public or private Infrastructure-building activities. The nonprofit organizations, or public term infrastructure-building activities re- agencies, including States, and one or fers to activities that increase the ca- more institutions of higher education pacity of organizations, programs and that have entered into a written agree- individuals to provide high quality ment specifying the responsibilities of service to communities. each partner. Institution of higher education. The term institution of higher education has Indian. The term Indian means a per- the same meaning given the term in son who is a member of an Indian tribe, section 101 of the Higher Education Act or is a ‘‘Native’’, as defined in section of 1965 (20 U.S.C. 1001). 3(b) of the Alaska Native Claims Set- Local educational agency (LEA). The tlement Act (43 U.S.C. 1602(b)). term local educational agency has the The term Indian lands. Indian lands same meaning given the term in sec- means any real property owned by an tion 1471(12) of the Elementary and Indian tribe, any real property held in Secondary Education Act of 1965 (20 trust by the United States for an In- U.S.C. 2891(12)). dian or Indian tribe, and any real prop- Local partnership. The term local part- erty held by an Indian or Indian tribe nership means a partnership, as defined that is subject to restrictions on alien- in § 2510.20 of this chapter, that meets ation imposed by the United States. the eligibility requirements to apply Indian tribe. The term Indian tribe for subgrants under § 2516.110 or means— § 2517.110 of this chapter. (1) An Indian tribe, band, nation, or National nonprofit. The term national other organized group or community nonprofit means any nonprofit organi- that is recognized as eligible for the zation whose mission, membership, ac- special programs and services provided tivities, or constituencies are national by the United States under Federal law in scope. to Indians because of their status as In- National service laws. The term na- dians, including— tional service laws means the Act and (i) Any Native village, as defined in the Domestic Volunteer Service Act of section 3(c) of the Alaska Native 1973 (42 U.S.C. 4950 et seq.). Claims Settlement Act (43 U.S.C. Objective. The term objective means a 1602(c)), whether organized tradition- desired accomplishment of a program. ally or pursuant to the Act of June 18, Out-of-school youth. The term out-of- 1934 (commonly known as the ‘‘Indian school youth means an individual who— Reorganization Act’’, 25 U.S.C. 461 et (1) Has not attained the age of 27; seq.); and (2) Has not completed college or its (ii) Any Regional Corporation or Vil- equivalent; and lage Corporation, as defined in sub- (3) Is not enrolled in an elementary section (g) or (j), respectively, of sec- or secondary school or institution of tion 3 of the Alaska Native Claims Set- higher education. tlement Act (43 U.S.C. 1602 (g) or (j)); Participant. (1) The term participant and means an individual enrolled in a pro- (2) Any tribal organization con- gram that receives assistance under trolled, sanctioned, or chartered by an the Act.

621

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00631 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2510.20 45 CFR Ch. XXV (10–1–11 Edition)

(2) A participant may not be consid- seminate and implement Corporation ered to be an employee of the program guidance and policies directly relating in which the participant is enrolled. to a program or project. (3) A participant may also be referred (5) Space, facility, and communica- to by the term member. tions costs for program or project oper- Partnership. The term partnership ations and other costs that primarily means two or more entities that have support program or project operations, entered into a written agreement speci- excluding those costs that are already fying the partnership’s goals and ac- covered by an organization’s indirect tivities as well as the responsibilities, cost rate. goals, and activities of each partner. (6) Other allowable costs, excluding Partnership program. The term part- those costs that are already covered by nership program means a program an organization’s indirect cost rate, through which an adult volunteer, a specifically approved by the Corpora- public or private nonprofit organization as directly attributable to a pro- tion, an institution of higher edu- gram or project. cation, or a business assists a local Program sponsor. The term program educational agency. sponsor means an entity responsible for Program. The term program, unless recruiting, selecting, and training par- the context otherwise requires, and ex- ticipants, providing them benefits and cept when used as part of the term aca- support services, engaging them in reg- demic program, means a program de- ular group activities, and placing them scribed in section 111(a) (other than a in projects. program referred to in paragraph (3)(B) Project. The term project means an ac- of that section), 117A(a), 119(b)(1), or tivity, or a set of activities, carried out 122(a) of the Act, or in paragraph (1) or through a program that receives assist- (2) of section 152(b) of the Act, or an ac- ance under the Act, that results in a tivity that could be funded under sec- specific identifiable service or improve- tions 198, 198C, or 198D of the Act. ment that otherwise would not be done Program costs. The term program costs with existing funds, and that does not means expenses directly related to a duplicate the routine services or func- program or project, including their options of the employer to whom partici- erations and objectives. Program costs pants are assigned. include, but are not limited to: Project sponsor. The term project spon- (1) Costs attributable to participants, sor means an organization, or other en- including: living allowances, insurance tity, that has been selected to provide payments, and expenses for training a placement for a participant. and travel. (2) Costs (including salary, benefits, Qualified individual with a disability. training, travel) attributable to staff The term qualified individual with a dis- who recruit, train, place, support, co- ability has the meaning given the term ordinate, or supervise participants, or in section 101(8) of the Americans with who develop materials used in such ac- Disabilities Act of 1990 (42 U.S.C. tivities. 12111(8)). (3) Costs for independent evaluations Qualified organization. The term and internal evaluations to the extent qualified organization means a public or that the evaluations cover only the private nonprofit organization, other funded program or project. than a grantmaking entity, that— (4) Costs, excluding those already (1) Has experience in working with covered in an organization’s indirect school-age youth; and cost rate, attributable to staff that (2) Was in existence at least one year work in a direct program or project before the date on which the organiza- support, operational, or oversight cation submitted an application for a pacity, including, but not limited to: service-learning program. support staff whose functions directly Recognized equivalent of a high-school support program or project activities; diploma. The term recognized equivalent staff who coordinate and facilitate sin- of a high-school diploma means: gle or multi-site program and project (1) A General Education Development activities; and staff who review, dis- Certificate (GED);

622

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00632 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2510.20

(2) A State certificate received by a which the participants are enrolled; student after the student has passed a and State-authorized examination that the (5) Includes structured time for the State recognizes as the equivalent of a students and participants to reflect on high-school diploma; the service experience. (3) An academic transcript of a stu- Service-learning coordinator. The term dent who has successfully completed at service-learning coordinator means an in- least a two-year program that is ac- dividual trained in service-learning ceptable for full credit toward a bach- who identifies community partners for elor’s degree; or LEAs; assists in designing and imple- (4) For a person who is seeking en- menting local partnerships service- rollment in an educational program learning programs; provides technical that leads to at least an associate de- assistance and information to, and fa- gree or its equivalent and who has not cilitates the training of, teachers; and completed high-school but who ex- provides other services for an LEA. celled academically in high-school, State. The term State means each of documentation that the student ex- the several States, the District of Co- celled academically in high-school and lumbia, the Commonwealth of Puerto has met the formalized, written poli- Rico, the United States Virgin Islands, cies of the institution for admitting Guam, American Samoa, and the Com- such students. monwealth of the Northern Mariana Is- Recurring access. The term recurring lands. The term also includes Palau, access means the ability on more than until the Compact of Free Association one occasion to approach, observe, or is ratified. communicate with, an individual, through physical proximity or other State Commission. The term State Com- means, including but not limited to, mission means a State Commission on electronic or telephonic communica- National and Community Service tion. maintained by a State pursuant to sec- School-age youth. The term school-age tion 178 of the Act. Except when used youth means— in section 178, the term includes an al- (1) Individuals between the ages of 5 ternative administrative entity for a and 17, inclusive; and State approved by the Corporation (2) Children with disabilities, as de- under that section to act in lieu of a fined in section 602(a)(1) of the Individ- State Commission. uals with Disabilities Education Act State educational agency (SEA). The (20 U.S.C. 1401(a)(1)), who receive serv- term State educational agency has the ices under part B of that Act. same meaning given that term in sec- Secondary school. The term secondary tion 1471(23) of the Elementary and school has the same meaning given the Secondary Education Act of 1965 (20 term in section 1471(21) of the Elemen- U.S.C. 2891(23)). tary and Secondary Education Act of Student. The term student means an 1965 (20 U.S.C. 2891(21)). individual who is enrolled in an ele- Service-learning. The term service- mentary or secondary school or insti- learning means a method under which tution of higher education on a full- students or participants learn and de- time or part-time basis. velop through active participation in Subdivision of a State. The term sub- thoughtfully organized service that— division of a State means an govern- (1) Is conducted in and meets the mental unit within a State other than needs of a community; a unit with Statewide responsibilities. (2) Is coordinated with an elementary Subtitle C program. The term subtitle C school, secondary school, institution of program means an AmeriCorps program higher education, or community serv- authorized and funded under subtitle C ice program, and with the community; of the National and Community Serv- (3) Helps foster civic responsibility; ice Act of 1990, as amended. (NCSA) (42 (4) Is integrated into and enhances U.S.C. 12501 et seq.) It does not include the academic curriculum of the stu- demonstration programs, or other dents or the educational components of AmeriCorps programs, funded under the community service program in subtitle H of the NCSA.

623

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00633 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2515 45 CFR Ch. XXV (10–1–11 Edition)

Target community. The term target Subpart B—Use of Grant Funds community means the geographic com- 2516.200 How may grant funds be used? munity in which an AmeriCorps grant applicant intends to provide service to Subpart C—Eligibility To Participate address an identified unmet human, educational, environmental, or public 2516.300 Who may participate in a school- safety (including disaster-preparedness based service-learning program? 2516.310 May private school students par- and response) need. ticipate? U.S. Territory. The term U.S. Territory 2516.320 Is a participant eligible to receive means the Virgin Islands, Guam, Amer- an AmeriCorps educational award? ican Samoa, the Commonwealth of the Northern Mariana Islands, and Palau, Subpart D—Application Contents until the Compact of Free Association 2516.400 What must a State or Indian tribe with Palau is ratified. include in an application for a grant? 2516.410 What must a community-based en- [59 FR 13783, Mar. 23, 1994, as amended at 63 tity include in an application for a FR 18137, Apr. 14, 1998; 67 FR 45359, July 9, grant? 2002; 70 FR 39596, July 8, 2005; 72 FR 48581, 2516.420 What must an LEA, local partner- Aug. 24, 2007; 73 FR 53759, Sept. 17, 2008; 74 FR ship, qualified organization or other eli- 46502, Sept. 10, 2009; 75 FR 51409, Aug. 20, 2010] gible entity include in an application for a subgrant? PART 2513 [RESERVED] Subpart E—Application Review PART 2515—SERVICE-LEARNING 2516.500 How does the Corporation review the merits of an application? PROGRAM PURPOSES 2516.510 What happens if the Corporation rejects a State’s application for an allotment grant? AUTHORITY: 42 U.S.C. 12501 et seq. 2516.520 How does a State, Indian tribe, or § 2515.10 What are the service-learning community-based entity review the merits of an application? programs of the Corporation for National and Community Service? Subpart F—Distribution of Funds (a) There are three service-learning 2516.600 How are funds for school-based programs: (1) School-based programs, service-learning programs distributed? described in part 2516 of this chapter. (2) Community-based programs, de- Subpart G—Funding Requirements scribed in part 2517 of this chapter. 2516.700 What matching funds are required? (3) Higher education programs, de- 2516.710 What are the limits on the use of scribed in part 2519 of this chapter. funds? (b) Each program gives participants 2516.720 What is the length of each type of the opportunity to learn and develop grant? their own capabilities through service- 2516.730 May an applicant submit more than learning, while addressing needs in the one application to the Corporation for the same project at the same time? community. [59 FR 13786, Mar. 23, 1994] Subpart H—Evaluation Requirements 2516.800 What are the purposes of an evalua- PART 2516—SCHOOL-BASED tion? SERVICE-LEARNING PROGRAMS 2516.810 What types of evaluations are grantees and subgrantees required to perform? Subpart A—Eligibility To Apply 2516.820 What types of internal evaluation activities are required of programs? Sec. 2516.830 What types of activities are re- 2516.100 What is the purpose of school-based quired of Corporation grantees to evalu- service-learning programs? ate the effectiveness of their sub- 2516.110 Who may apply for a direct grant grantees? from the Corporation? 2516.840 By what standards will the Corpora- 2516.120 Who may apply for funding a tion evaluate individual Learn and Serve subgrant? America programs?

624

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00634 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2516.120

2516.850 What will the Corporation do to § 2516.120 Who may apply for funding evaluate the overall success of the serv- a subgrant? ice-learning program? 2516.860 Will information on individual par- Entities that may apply for a ticipants be kept confidential? subgrant from a State, Indian Tribe, or community-based entity are: AUTHORITY: 42 U.S.C. 12521–12529; 42 U.S.C. 12645g. (a) A qualified organization, Indian Tribe, Territory, local educational SOURCE: 59 FR 13786, Mar. 23, 1994, unless agency, for-profit business, private ele- otherwise noted. mentary school or secondary school, or institution of higher education for a Subpart A—Eligibility To Apply grant from a State for planning and building the capacity of school-based SOURCE: 74 FR 46502, Sept. 10, 2009, unless service-learning programs. otherwise noted. (b) A local partnership, for a grant from a State to implement, operate, or § 2516.100 What is the purpose of expand a school-based service learning school-based service-learning pro- program. grams? (1) The local partnership must in- The purpose of school-based service- clude an LEA and one or more commu- learning programs is to promote serv- nity partners. The local partnership ice-learning as a strategy to support may include a private for-profit busi- high-quality service-learning projects ness, or private elementary or sec- that engage students in meeting com- ondary school, or an Indian Tribe (ex- munity needs with demonstrable re- cept that an Indian Tribe distributing sults, while enhancing students’ aca- funds to a project under this paragraph demic and civic learning; and support is not eligible to be part of the partner- efforts to build institutional capacity, ship operating that project). including the training of educators, (2) The community partners must in- and to strengthen the service infra- clude a public or private nonprofit or- structure to expand service opportuni- ganization that has demonstrated ex- ties. pertise in the provision of services to meet educational, public safety, § 2516.110 Who may apply for a direct human, or environmental needs; will grant from the Corporation? make projects available for partici- (a) The following entities may apply pants, who must be students; and was for a direct grant from the Corpora- in existence at least one year before tion: the date on which the organization (1) A State, through a State edu- submitted an application under this cational agency (SEA). For purposes of part. this part ‘‘State’’ means one of the 50 (c) An LEA or Indian Tribe for plan- States, the District of Columbia, the ning school-based service-learning pro- Commonwealth of Puerto Rico, and, grams involving paying, recruiting, except for the purpose of § 2516.600(b), and supporting service-learning coordi- U.S. Territories; ‘‘SEA’’ means a nators. ‘‘State educational agency’’ as defined (d) An LEA, local partnership, or in § 2510.20 of this chapter or an SEA- public or private nonprofit organiza- designated statewide entity (which tion for a grant from a State to imple- may be a community-based entity) ment, operate, or expand an adult vol- with demonstrated experience in sup- unteer program. The local partnership porting or implementing service-learn- must include an LEA and one or more ing programs. public or private nonprofit organiza- (2) An Indian Tribe. tions, other educational agencies, or an (3) For activities in a nonpartici- Indian Tribe (except that an Indian pating State or Indian Tribe, a commu- Tribe distributing funds under this nity-based entity as defined in § 2510.20. paragraph is not eligible to be a recipi- (b) The types of grants for which ent of those funds) that coordinate and each entity is eligible are described in operate projects for participants who § 2516.200. must be students.

625

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00635 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2516.200 45 CFR Ch. XXV (10–1–11 Edition)

(e) An eligible entity for a grant from progress for two or more consecutive a State or Indian Tribe to carry out years under section 1111 of the Elemen- civic engagement activities. tary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.). Subpart B—Use of Grant Funds (b) Implementing, operating, and expanding school-based programs. (1) A § 2516.200 How may grant funds be State, Indian Tribe or community- used? based entity may use funds to make Funds under a school-based service subgrants to local partnerships de- learning grant may be used for the pur- scribed in § 2516.120(b) to implement, poses described in this section. operate, or expand school-based serv- (a) Planning and capacity-building. (1) ice-learning programs. A State, Indian Tribe, or community- (2) If a State does not submit an ap- based entity may use funds to pay for plication that meets the requirements planning and building its capacity to for an allotment grant under § 2516.400, implement school-based service-learn- the Corporation may use the allotment ing programs. These entities may use to fund applications from community- funds either directly or through sub- based entities for programs in that grants or contracts with qualified orga- State. nizations. (3) Authorized activities include pay- (2) Authorized activities include the ing the costs of the recruitment, train- following: ing, supervision, placement, salaries (i) Providing training for teachers, and benefits of service-learning coordi- supervisors, personnel from commu- nators. nity-based agencies (particularly with (c) Planning programs. (1) A State regard to the utilization of partici- may use funds to make subgrants to pants) and trainers, conducted by LEAs for planning school-based serv- qualified individuals or organizations ice-learning programs. experienced in service-learning. (2) If a State does not submit an ap- (ii) Developing service-learning cur- plication that meets the requirements ricula, consistent with State or local for an allotment grant under § 2516.400, academic content standards, to be inte- the Corporation may use the allotment grated into academic programs, includ- to fund applications from community- ing the age-appropriate learning com- based entities for planning programs in ponents for students to analyze and that State. apply their service experiences. (3) Authorized activities include pay- (iii) Forming local partnerships de- ing the costs of— scribed in § 2516.120 to develop school- (i) The salaries and benefits of serv- based service-learning programs in ac- ice-learning coordinators as defined in cordance with this part. § 2510.20 of this chapter; and (iv) Devising appropriate methods for (ii) The recruitment, training, super- research and evaluation of the edu- vision, and placement of service-learn- cational value of service-learning and ing coordinators who may be, but are the effect of service-learning activities not required to be, participants in an on communities. AmeriCorps program described in parts (v) Establishing effective outreach 2520 through 2524 of this chapter, or and dissemination of information to who receive AmeriCorps education ensure the broadest possible involve- awards, or who may be participants in ment of community-based agencies a project under section 201 of the Do- with demonstrated effectiveness in mestic Volunteer Service Act of 1973 working with school-age youth in their (42 U.S.C. 5001), or who may participate communities. in a Youthbuild program under section (vi) Establishing effective outreach 173A of the Workforce Investment Act and dissemination of information to of 1998 (29 U.S.C. 2918a). ensure the broadest possible participa- (d) Adult volunteer programs. (1) A tion of schools throughout the State, State, Indian Tribe, or community- Territory or serving the Indian Tribe based entity may use funds to make involved, with particular attention to subgrants to local partnerships de- schools not making adequate yearly scribed in § 2516.120(c) to implement,

626

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00636 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2516.400

operate, or expand school-based pro- table participation of the students in grams involving adult volunteers to the programs under this part; and utilize service-learning to improve the (2) For the training of the teachers of education of students. those students so as to allow for the (2) If a State does not submit an ap- equitable participation of those teach- plication that meets the requirements ers in the programs under this part. for an allotment grant under § 2516.400, (b) If a State, Indian tribe, or LEA is the Corporation may use the allotment prohibited by law from providing for to fund applications from those local the participation of students or teach- partnerships for adult volunteer pro- ers from private nonprofit schools as grams in that State. required by paragraph (a) of this sec- (e) Planning by Indian Tribes and U.S. tion, or if the Corporation determines Territories. If the Corporation makes a that a State, Indian tribe, or LEA subgrant to an Indian Tribe or a U.S. Ter- stantially fails or is unwilling to pro- ritory to plan school-based service- vide for their participation on an equi- learning programs, the grantee may table basis, the Corporation will waive use the funds for that purpose. those requirements and arrange for the (f) Civic engagement programs. A provision of services to the students State, Indian Tribe, Territory or quali- and teachers. fied organization may use funds to support service-learning civic engagement [59 FR 13786, Mar. 23, 1994, as amended at 74 FR 46504, Sept. 10, 2009] programs that promote a better understanding of: § 2516.320 Is a participant eligible to (1) The principles of the Constitution, receive an AmeriCorps educational the heroes of United States history (in- award? cluding military history), and the No. However, service-learning coordi- meaning of the Pledge of Allegiance; nators who are approved AmeriCorps (2) How the Nation’s government positions are eligible for AmeriCorps functions; and educational awards. (3) The importance of service in the Nation’s character. Subpart D—Application Contents [74 FR 46503, Sept. 10, 2009] § 2516.400 What must a State or Indian Subpart C—Eligibility To tribe include in an application for a Participate grant? In order to apply for a grant from the § 2516.300 Who may participate in a Corporation under this part, a State school-based service-learning pro- (SEA) or Indian tribe must submit the gram? following: (a) A three-year strategic Students who are enrolled in elemen- plan for promoting service-learning tary or secondary schools on a full- through programs under this part, or a time or part-time basis may partici- revision of a previously approved three- pate in school-based programs. year strategic plan. The application of a SEA must include a description of § 2516.310 May private school students how the SEA will coordinate its serv- participate? ice-learning plan with the State Plan (a) Yes. To the extent consistent under § 2550.80(a) of this chapter and with the number of students in the with other federally-assisted activities. State or Indian tribe or in the school (b) A proposal containing the specific district of the LEA involved who are program, budget, and other informa- enrolled in private nonprofit elemen- tion specified by the Corporation in the tary or secondary schools, the State, grant application package. Indian tribe, or LEA must (after con- (c) Assurances that the applicant sultation with appropriate private will— school representatives) make provi- (1) Keep such records and provide sion— such information to the Corporation (1) For the inclusion of services and with respect to the programs as may be arrangements for the benefit of those required for fiscal audits and program students so as to allow for the equi- evaluation; and

627

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00637 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2516.410 45 CFR Ch. XXV (10–1–11 Edition)

(2) Comply with the criminal history as well as the nonduplication, non- check requirements for all grant-fund- displacement, and grievance procedure ed staff employed after October 1, 2009, requirements of Part 2540. in accordance with 45 CFR 2540.200–207, as well as the nonduplication, non- [74 FR 46504, Sept. 10, 2009] displacement, and grievance procedure § 2516.420 What must an LEA, local requirements of Part 2540. partnership, qualified organization [59 FR 13786, Mar. 23, 1994, as amended at 73 or other eligible entity include in FR 53759, Sept. 17, 2008; 74 FR 46504, Sept. 10, an application for a subgrant? 2009] In order to apply for a subgrant from a State, Indian Tribe, or community- § 2516.410 What must a community- based entity include in an applica- based entity under this part, an appli- tion for a grant? cant must include the information required by the Corporation grantee. In order to apply to the Corporation for a grant, a community-based entity [74 FR 46504, Sept. 10, 2009] must submit the following: (a) A detailed description of the pro- Subpart E—Application Review posed program goals and activities. The application of a community-based § 2516.500 How does the Corporation entity must include— review the merits of an application? (1) A description of how the applicant (a) In reviewing the merits of an ap- will coordinate its activities with the plication submitted to the Corporation State Plan under § 2513 of this chapter, under this part, the Corporation evalu- including a description of plans to ates the quality, innovation, meet and consult with the State Com- replicability, and sustainability of the mission, if possible, and to provide a proposal on the basis of the following copy of the program application to the criteria: (1) Quality, as indicated by State Commission and with other Fed- the extent to which— erally-assisted activities. (b) The specific program, budget, and (i) The program will provide produc- other information specified by the Cor- tive meaningful, educational experi- poration in the grant application pack- ences that incorporate service-learning age. methods; (c) Assurances that the applicant (ii) The program will meet commu- will— nity needs and involve individuals from (1) Keep such records and provide diverse backgrounds (including eco- such information to the Corporation nomically disadvantaged youth) who with respect to the program as may be will serve together to explore the root required for fiscal audits and program causes of community problems; evaluations; (iii) The principal leaders of the pro- (2) Prior to the placement of a partic- gram will be well qualified for their re- ipant, consult with the appropriate sponsibilities; local labor organization, if any, rep- (iv) The program has sound plans and resenting employees in the area who processes for training, technical assist- are engaged in the same or similar ance, supervision, quality control, work as that proposed to be carried out evaluation, administration, and other by the program, to prevent the dis- key activities; and placement and protect the rights of (v) The program will advance knowl- those employees; edge about how to do effective and in- (3) Develop an age-appropriate learn- novative community service and serving component for participants in the ice-learning and enhance the broader program that includes a chance for par- elementary and secondary education ticipants to analyze and apply their field. service experiences; and (2) Replicability, as indicated by the (4) Comply with the criminal history extent to which the program will assist check requirements for all grant-fund- others in learning from experience and ed staff employed after October 1, 2009, replicating the approach of the pro- in accordance with 45 CFR 2540.200–207, gram.

628

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00638 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2516.600

(3) Sustainability, as indicated by the (2) Will set the amounts of grants in extent to which— accordance with the respective needs of (i) An SEA, Indian tribe or commu- applicants. nity-based entity applicant dem- [59 FR 13786, Mar. 23, 1994, as amended at 73 onstrates the ability and willingness to FR 53759, Sept. 17, 2008; 74 FR 46504, Sept. 10, coordinate its activities with the State 2009] Plan under § 2550.80(a) of this chapter and with other federally assisted ac- § 2516.510 What happens if the Cor- tivities; poration rejects a State’s application for an allotment grant? (ii) The program will foster collaborative efforts among local educational If the Corporation rejects a State’s agencies, local government agencies, application for an allotment grant community based agencies, businesses, under § 2516.600(b)(2), the Corporation will— and State agencies; (a) Promptly notify the State of the (iii) The program will enjoy strong, reasons for the rejection; broad-based community support; and (b) Provide the State with a reason- (iv) There is evidence that financial able opportunity to revise and resub- resources will be available to continue mit the application; the program after the expiration of the (c) Provide technical assistance, if grant. necessary; and (b) The Corporation also gives pri- (d) Promptly reconsider the resub- ority to proposals that— mitted application and make a deci- (1) Involve participants in the design sion. and operation of the program; (2) Reflect the greatest need for as- § 2516.520 How does a State, Indian sistance, such as programs targeting tribe, or community-based entity review the merits of an application? low-income areas or serving economically disadvantaged youth: In reviewing the merits of an applica- (3) Involve students from public and tion for a subgrant under this part, a private schools serving together; Corporation grantee must use the criteria and priorities in § 2516.500. (4) Involve students of different ages, races, genders, ethnicities, abilities [59 FR 13786, Mar. 23, 1994, as amended at 74 and disabilities, or economic back- FR 46504, Sept. 10, 2009] grounds, serving together; (5) Are integrated into the academic Subpart F—Distribution of Funds program of the participants; (6) Best represent the potential of § 2516.600 How are funds for school- based service-learning programs service-learning as a vehicle for edu- distributed? cation reform and school-to-work transition; (a) Of the amounts appropriated to carry out this part for any fiscal year, (7) Develop civic responsibility and the Corporation will reserve not less leadership skills and qualities in par- than two percent and not more than ticipants; three percent for grants to Indian (8) Demonstrate the ability to Tribes and U.S. Territories to be allot- achieve the goals of this part on the ted in accordance with their respective basis of the proposal’s quality, innova- needs. tion, replicability, and sustainability; (b) The Corporation will use the re- or mainder of the funds appropriated as (9) Address any other priority estab- follows: lished by the Corporation for a par- (1) Allotments to States. ticular period. (i) From 50 percent of the remainder, (c) In reviewing applications sub- the Corporation will allot to each mitted by Indian tribes and U.S. Terri- State an amount that bears the same tories, the Corporation— ratio to 50 percent of the remainder as (1) May decide to approve only plan- the number of school-age youth in the ning of school-based service-learning State bears to the total number of programs; and school-age youth of all States.

629

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00639 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2516.700 45 CFR Ch. XXV (10–1–11 Edition)

(ii) From 50 percent of the remainder, funds made available under the na- the Corporation will allot to each tional service laws or title I of the Ele- State an amount that bears the same mentary and Secondary Act of 1965 (20 ratio to 50 percent of the remainder as U.S.C. 6311 et seq.)). the allocation to the State for the pre- (c) The Corporation may waive the vious fiscal year under Chapter 1 of requirements of paragraph (b) of this Title I of the Elementary and Sec- section in whole or in part with respect ondary Education Act of 1965 (20 U.S.C. to any program in any fiscal year if the 6301 et seq.) bears to the allocations to Corporation determines that the waiv- all States. er would be equitable due to a lack of (iii) Notwithstanding other provi- available financial resources at the sions of paragraph (b)(1) of this section, local level. for any fiscal year for which amounts [74 FR 46504, Sept. 10, 2009] appropriated for Part I of Subtitle B of Title I of the National and Community § 2516.710 What are the limits on the Service Act of 1990 (42 U.S.C. 12521 et use of funds? seq.) exceed $50,000,000, the minimum The following limits apply to funds allotment to each State under this available under this part: paragraph (b)(1) will be $75,000. (a) (1) Not more than six percent of (2) For the purpose of paragraph (b) the grant funds provided under this of this section, ‘‘State’’ means one of part for any fiscal year may be used to the 50 States, the District of Columbia, pay for administrative costs, as defined and the Commonwealth of Puerto Rico. in § 2510.20 of this chapter. (c) If a State or Indian Tribe does not (2) The distribution of administrative submit an application that meets the costs between the grant and any requirements for approval under this subgrant is subject to the approval of part, the Corporation (after making the Corporation. any grants to community-based enti- (3) In applying the limitation on ad- ties for activities in nonparticipating ministrative costs, the Corporation States) may use its allotment for may approve one of the following States and Indian Tribes with approved methods in the award document: applications, as the Corporation deter- (i) Limit the amount or rate of indi- mines appropriate. rect costs that may be paid with Cor- [74 FR 46504, Sept. 10, 2009] poration funds under a grant or subgrant to six percent of total Cor- Subpart G—Funding Requirements poration funds expended, provided that— § 2516.700 What matching funds are re- (A) Organizations that have an estab- quired? lished indirect cost rate for Federal (a) The Corporation share of the cost awards will be limited to this method; of carrying out a program funded under and this part may not exceed— (B) Unreimbursed indirect costs may (1) Eighty percent of the total cost be applied to meeting operational for the first year for which the pro- matching requirements under the Cor- gram receives assistance; poration’s award; (2) Sixty-five percent of the total (ii) Specify that a fixed rate of six cost for the second year; and percent or less (not subject to sup- (3) Fifty percent of the total cost for porting cost documentation) of total the third year and any subsequent Corporation funds expended may be year. used to pay for administrative costs, (b) In providing for the remaining provided that the fixed rate is in con- share of the cost of carrying out a pro- junction with an overall 15 percent ad- gram, each recipient of assistance must ministrative cost factor to be used for provide for that share through a pay- organizations that do not have estab- ment in cash or in-kind, fairly evalu- lished indirect cost rates; or ated, including facilities, equipment, (iii) Use such other method that the or services, and may provide for that Corporation determines in writing is share through State sources, local consistent with OMB guidance and sources, or Federal sources (other than other applicable requirements, helps

630

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00640 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2516.830

minimize the burden on grantees or evaluations which are assessments of subgrantees, and is beneficial to grant- program effectiveness by individuals ees or subgrantees and the Federal who are not directly involved in the ad- Government. ministration of the program. The cost (b) Funds made available under this of independent evaluations is allow- part may not be used to pay any sti- able. pend, allowance, or other financial support to any participant in a service- § 2516.820 What types of internal eval- learning program under this part ex- uation activities are required of cept reimbursement for transportation, programs? meals, and other reasonable out-of- Programs are required to: (a) Con- pocket expenses directly related to tinuously assess management effec- participation in a program assisted tiveness, the quality of services pro- under this part. vided, and the satisfaction of both participants and service recipients. Inter- [74 FR 46505, Sept. 10, 2009] nal evaluations should seek frequent § 2516.720 What is the length of each feedback and provide for quick correc- type of grant? tion of weakness. The Corporation encourages programs to use internal eval- (a) One year is the maximum length uation methods, such as community of— advisory councils, participant advisory (1) A planning grant under § 2516.200 councils, peer reviews, quality control (a), (c) or (e); and inspections, and service recipient and (2) A grant to a local partnership for participant surveys. activities in a nonparticipating State (b) Track progress toward pre-estab- under § 2516.200 (b)(2) and (d)(2). lished objectives. Objectives must be (b) All other grants are for a period established by programs and approved of up to three years, subject to satis- by the Corporation. Programs must factory performance and annual appro- submit to the Corporation (or the Cor- priations. poration grantee as applicable) peri- § 2516.730 May an applicant submit odic performance reports. more than one application to the (c) Collect and submit to the Cor- Corporation for the same project at poration (through the Corporation the same time? grantee as applicable) the following No. The Corporation will reject an data: (1) The total number of partici- application for a project if an applica- pants in each program and basic demotion for funding or educational awards graphic characteristics of the participants including sex, age, economic for the same project is already pending background, education level, ethnic before the Corporation. group, disability classification, and geographic region. Subpart H—Evaluation (2) Other information as required by Requirements the Corporation. (d) Cooperate fully with all Corpora- § 2516.800 What are the purposes of an tion evaluation activities. evaluation? Every evaluation effort should serve § 2516.830 What types of activities are to improve program quality, examine required of Corporation grantees to benefits of service, or fulfill legislative evaluate the effectiveness of their requirements. subgrantees? A Corporation grantee that makes § 2516.810 What types of evaluations subgrants must do the following: (a) are grantees and subgrantees re- Ensure that subgrantees comply with quired to perform? the requirements of § 2516.840. All grantees and subgrantees are re- (b) Track program performance in quired to perform internal evaluations terms of progress toward pre-estab- which are ongoing efforts to assess per- lished objectives; ensure that correc- formance and improve quality. Grant- tive action is taken when necessary; ees and subgrantees may, but are not and submit to the Corporation periodic required to, arrange for independent performance reports.

631

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00641 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2516.840 45 CFR Ch. XXV (10–1–11 Edition)

(c) Collect from programs and submit uations described in § 2516.840. The Cor- to the Corporation the descriptive in- poration will disclose individual partic- formation required in § 2516.820(c)(1). ipant information only with the prior (d) Cooperate fully with all Corpora- written consent of the participant. tion evaluation activities. However, the Corporation may disclose aggregate participant information. § 2516.840 By what standards will the (b) Grantees and subgrantees under Corporation evaluate individual this part must comply with the provi- Learn and Serve America programs? sions of paragraph (a) of this section. The Corporation will evaluate programs based on the following: (a) The PART 2517—COMMUNITY-BASED extent to which the program meets the SERVICE-LEARNING PROGRAMS objectives established and agreed to by the grantee and the Corporation before Subpart A—Eligibility To Apply the grant award. Sec. (b) The extent to which the program 2517.100 Who may apply for a direct grant is cost-effective. from the Corporation? (c) Other criteria as determined and 2517.110 Who may apply for a subgrant from published by the Corporation. a Corporation grantee?

§ 2516.850 What will the Corporation Subpart B—Use of Grant Funds do to evaluate the overall success of the service-learning program? 2517.200 How may grant funds be used? (a) The Corporation will conduct Subpart C—Eligibility To Participate independent evaluations. These evaluations will consider the opinions of par- 2517.300 Who may participate in a commu- ticipants and members of the community-based service-learning program? nities where services are delivered. If appropriate, these evaluations will Subpart D—Application Contents compare participants with individuals 2517.400 What must a State Commission or who have not participated in service- grantmaking entity include in an appli- learning programs. These evaluations cation for a grant? will— 2517.410 What must a qualified organization (1) Study the extent to which service- include in an application for a grant or a learning programs as a whole affect the subgrant? involved communities; Subpart E—Application Review (2) Determine the extent to which service-learning programs as a whole 2517.500 How is an application reviewed? increase academic learning of participants, enhance civic education, and Subpart F—Distribution of Funds foster continued community involve- 2517.600 How are funds for community-based ment; and service-learning programs distributed? (3) Determine the effectiveness of different program models. Subpart G—Funding Requirements (b) The Corporation will also determine by June 30, 1995, whether out- 2517.700 Are matching funds required? comes of service-learning programs are 2517.710 Are there limits on the use of funds? defined and measured appropriately, 2517.720 What is the length of a grant? and the implications of the results 2517.730 May an applicant submit more than from such a study for authorized fund- one application to the Corporation for ing levels. the same project at the same time?

§ 2516.860 Will information on indi- Subpart H—Evaluation Requirements vidual participants be kept confidential? 2517.800 What are the evaluation requirements for community-based programs? (a) Yes. The Corporation will maintain the confidentiality of information AUTHORITY: 42 U.S.C. 12541–12547. regarding individual participants that SOURCE: 59 FR 13790, Mar. 23, 1994, unless is acquired for the purpose of the eval- otherwise noted.

632

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00642 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2517.400

Subpart A—Eligibility To Apply Subpart C—Eligibility To Participate § 2517.100 Who may apply for a direct grant from the Corporation? § 2517.300 Who may participate in a (a) The following entities may apply community-based service-learning for a direct grant from the Corpora- program? tion: (1) A State Commission estab- School-age youth as defined in lished under part 2550 of this chapter. § 2510.20 of this chapter may participate (2) A grantmaking entity as defined in a community-based program. in § 2510.20 of this chapter. (3) A qualified organization as de- Subpart D—Application Contents fined in § 2515.20 of this chapter. (b) The types of grants for which § 2517.400 What must a State Commis- each entity is eligible are described in sion or grantmaking entity include § 2517.200. in an application for a grant? § 2517.110 Who may apply for a (a) In order to apply for a grant from subgrant from a Corporation grant- the Corporation under this part, a ee? State Commission or a grantmaking Entities that may apply for a entity must submit the following: (1) A subgrant from a State Commission or three-year plan for promoting service- grantmaking entity are qualified orga- learning through programs under this nizations that have entered into a local part. The plan must describe the types partnership with one or more— of community-based program models (a) Local educational agencies proposed to be carried out during the (LEAs); first year. (b) Other qualified organizations; or (2) A proposal containing the specific (c) Both. program, budget, and other information specified by the Corporation in the Subpart B—Use of Grant Funds grant application package. (3) A description of how the applicant § 2517.200 How may grant funds be will coordinate its activities with the used? State Plan under § 2550.80(a) of this Funds under a community-based chapter and with other federally-as- Learn and Serve grant may be used for sisted activities, including a descrip- the purposes described in this section. tion of plans to meet and consult with (a) A State Commission or the State Commission, if possible, and grantmaking entity may use funds— to provide a copy of the program appli- (1) To make subgrants to qualified cation to the State Commission. organizations described in § 2517.110 to (4) Assurances that the applicant implement, operate, expand, or rep- will— licate a community-based service pro- (i) Keep such records and provide gram that provides direct and demon- such information to the Corporation strable educational, public safety, with respect to the programs as may be human, or environmental service by required for fiscal audits and program participants, who must be school-age evaluation; youth; and (ii) Comply with the nonduplication, (2) To provide training and technical nondisplacement, and grievance proce- assistance to qualified organizations. dure requirements of part 2540 of this (b) (1) A qualified organization may chapter; and use funds under a direct grant or a (iii) Ensure that, prior to placing a subgrant to implement, operate, ex- participant in a program, the entity pand, or replicate a community-based carrying out the program will consult service program. with the appropriate local labor orga- (2) If a qualified organization re- nization, if any, representing employ- ceives a direct grant, its program must ees in the area in which the program be carried out at multiple sites or be will be carried out that are engaged in particularly innovative. the same or similar work as the work

633

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00643 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2517.410 45 CFR Ch. XXV (10–1–11 Edition)

proposed to be carried out by the pro- scribing the goals and activities of the gram, to prevent the displacement of proposed program; and those employees. (2) Such specific program, budget, (b) In addition, a grantmaking entity and other information as the Commis- must submit information dem- sion or entity reasonably requires. onstrating that the entity will make grants for a program— Subpart E—Application Review (1) To carry out activities in two or more States, under circumstances in § 2517.500 How is an application re- which those activities can be carried viewed? out more efficiently through one program than through two or more pro- In reviewing an application for a grams; and grant or a subgrant, the Corporation, a (2) To carry out the same activities, State Commission, or a grantmaking such as training activities or activities entity will apply the following criteria: related to exchanging information on (a) The quality of the program pro- service experiences, through each of posed. the projects assisted through the pro- (b) The innovation of, and feasibility gram. of replicating, the program. (c) The sustainability of the program, [59 FR 13790, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008] based on— (1) Strong and broad-based commu- § 2517.410 What must a qualified orga- nity support; nization include in an application (2) Multiple funding sources or pri- for a grant or a subgrant? vate funding; and (a) In order to apply to the Corpora- (3) Coordination with the State Plan tion for a direct grant, a qualified orga- under § 2550.80(a) of this chapter and nization must submit the following: (1) other federally-assisted activities. A plan describing the goals and activi- (d) The quality of the leadership of ties of the proposed program; the program, past performance of the (2) A proposal containing the specific program, and the extent to which the program, budget, and other informa- program builds on existing programs. tion specified by the Corporation in the (e) The applicant’s efforts— grant application package; and (1) To recruit participants from (3) Assurances that the applicant among residents of the communities in will— which projects would be conducted; (i) Keep such records and provide (2) To ensure that the projects are such information to the Corporation open to participants of different ages, with respect to the program as may be races, genders, ethnicities, abilities required for fiscal audits and program evaluation; and disabilities, and economic backgrounds; and (ii) Comply with the nonduplication, nondisplacement, and grievance proce- (3) To involve participants and com- dure requirements of part 2540 of this munity residents in the design, leader- chapter; and ship, and operation of the program. (iii) Prior to placing a participant in (f) The extent to which projects the program, consult with the appro- would be located in areas that are— priate local labor organization, if any, (1) Empowerment zones, redevelop- representing employees in the area in ment areas, or other areas with high which the program will be carried out concentrations of low-income people; who are engaged in the same or similar or work as the work proposed to be car- (2) Environmentally distressed. ried out by the program, to prevent the displacement of those employees. [59 FR 13790, Mar. 23, 1994, as amended at 73 (b) In order to apply to a State Com- FR 53759, Sept. 17, 2008] mission or a grantmaking entity for a subgrant, a qualified organization must submit the following: (1) A plan de-

634

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00644 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2517.710

Subpart F—Distribution of Funds (3) In applying the limitation on administrative costs the Corporation will § 2517.600 How are funds for commu- approve one of the following methods nity-based service-learning pro- in the award document: grams distributed? (i) Limit the amount or rate of indi- All funds are distributed by the Cor- rect costs that may be paid with Cor- poration through competitive grants. poration funds under a grant or subgrant to five percent of total Cor- Subpart G—Funding Requirements poration funds expended, provided that— § 2517.700 Are matching funds re- (A) Organizations that have an estab- quired? lished indirect cost rate for Federal (a) Yes. The Corporation share of the awards will be limited to this method; cost of carrying out a program funded and under this part may not exceed— (B) Unreimbursed indirect costs may (1) Ninety percent of the total cost be applied to meeting operational for the first year for which the pro- matching requirements under the Cor- gram receives assistance; poration’s award; (2) Eighty percent of the total cost (ii) Specify that a fixed rate of five for the second year; percent or less (not subject to sup- (3) Seventy percent of the total cost porting cost documentation) of total for the third year; and Corporation funds expended may be (4) Fifty percent of the total cost for used to pay for administrative costs, the fourth year and any subsequent provided that the fixed rate is in con- year. junction with an overall 15 percent ad- (b) In providing for the remaining ministrative cost factor to be used for share of the cost of carrying out a pro- organizations that do not have estab- gram, each recipient of assistance must lished indirect cost rates; or provide for that share through a pay- (iii) Utilize such other method that ment in cash or in kind, fairly evalu- the Corporation determines in writing ated, including facilities, equipment, is consistent with OMB guidance and or services, and may provide for that other applicable requirements, helps share through State sources, local minimize the burden on grantees or sources, or Federal sources (other than subgrantees, and is beneficial to grant- funds made available under the na- ees or subgrantees and the Federal tional service laws). Government. (c) However, the Corporation may waive the requirements of paragraph (b) (1) An SEA or Indian tribe must (b) of this section in whole or in part spend between ten and 15 percent of the with respect to any program in any fis- grant to build capacity through train- cal year if the Corporation determines ing, technical assistance, curriculum that the waiver would be equitable due development, and coordination activi- to lack of available financial resources ties. at the local level. (2) The Corporation may waive this requirement in order to permit an SEA § 2517.710 Are there limits on the use or a tribe to use between ten percent of funds? and 20 percent of the grant funds to Yes. The following limits apply to build capacity. To be eligible to receive funds available under this part: the waiver, the SEA or tribe must sub- (a) (1) Not more than five percent of mit an application to the Corporation. the grant funds provided under this (c) Funds made available under this part for any fiscal year may be used to part may not be used to pay any sti- pay for administrative costs, as defined pend, allowance, or other financial sup- in § 2510.20 of this chapter. port to any participant in a service- (2) The distribution of administrative learning program under this part ex- costs between the grant and any cept reimbursement for transportation, subgrant will be subject to the ap- meals, and other reasonable out-of- proval of the Corporation. pocket expenses directly related to

635

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00645 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2517.720 45 CFR Ch. XXV (10–1–11 Edition)

participation in a program assisted spect to information about service- under this part. learning. [63 FR 18137, Apr. 14, 1998] [59 FR 13792, Mar. 23, 1994, as amended at 75 FR 51409, Aug. 20, 2010] § 2517.720 What is the length of a grant? § 2518.110 What are the functions of a A grant under this part is for a period Service-Learning Clearinghouse? of up to three years, subject to satis- An organization that receives assist- factory performance and annual appro- ance from funds appropriated to carry priations. out the activities listed under parts 2531 through 2534 of this chapter may— § 2517.730 May an applicant submit more than one application to the (a) Assist entities carrying out State Corporation for the same project at or local service-learning programs with the same time? needs assessments and planning; No. The Corporation will reject an (b) Conduct research and evaluations application for a project if an applica- concerning service-learning; tion for funding or educational awards (c)(1) Provide leadership development for the same project is already pending and training to State and local service- before the Corporation. learning program administrators, supervisors, project sponsors, and partici- Subpart H—Evaluation pants; and Requirements (2) Provide training to persons who can provide the leadership development § 2517.800 What are the evaluation re- and training described in paragraph quirements for community-based (c)(1) of this section; programs? (d) Facilitate communication among The evaluation requirements for re- entities carrying out service-learning cipients of grants and subgrants under programs and participants in such pro- part 2516 of this chapter, relating to grams; school-based service-learning pro- (e) Provide information, curriculum grams, apply to recipients under this materials, and technical assistance re- part. lating to planning and operation of service-learning programs, to States PART 2518—SERVICE-LEARNING and local entities eligible to receive fi- CLEARINGHOUSE nancial assistance under this title; (f) Provide information regarding Sec. methods to make service-learning pro- 2518.100 What is the purpose of a Service- grams accessible to individuals with Learning Clearinghouse? 2518.110 What are the functions of a Service- disabilities; Learning Clearinghouse? (g)(1) Gather and disseminate information on successful service-learning AUTHORITY: 42 U.S.C. 12653o. programs, components of such success- § 2518.100 What is the purpose of a ful programs, innovative youth skills Service-Learning Clearinghouse? curricula related to service-learning, The Corporation will provide finan- and service-learning projects; and cial assistance, from funds appro- (2) Coordinate the activities of the priated to carry out the activities list- Clearinghouse with appropriate enti- ed under parts 2531 through 2534 of this ties to avoid duplication of effort; chapter, to public or private nonprofit (h) Make recommendations to State organizations that have extensive expe- and local entities on quality controls rience with service-learning, including to improve the quality of service-learn- use of adult volunteers to foster serving programs; ice-learning, to establish a clearing- (i) Assist organizations in recruiting, house, which will carry out activities, screening, and placing service-learning either directly or by arrangement with coordinators; and another such organization, with re-

636

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00646 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2519.200

(j) Carry out such other activities as Subpart A—Purpose and Eligibility the Chief Executive Officer determines To Apply to be appropriate. [59 FR 13792, Mar. 23, 1994. as amended at 75 § 2519.100 What is the purpose of the FR 51409, Aug. 20, 2010] Higher Education programs? The purpose of the higher education PART 2519—HIGHER EDUCATION innovative programs for community INNOVATIVE PROGRAMS FOR service is to expand participation in COMMUNITY SERVICE community service by supporting high- quality, sustainable community service programs carried out through insti- Subpart A—Purpose and Eligibility To Apply tutions of higher education, acting as Sec. civic institutions helping to meet the 2519.100 What is the purpose of the Higher educational, public safety, human, and Education programs? environmental needs of the commu- 2519.110 Who may apply for a grant? nities in which the programs operate. 2519.120 What is the Federal Work-Study requirement? § 2519.110 Who may apply for a grant? Subpart B—Use of Grant Funds The following entities may apply for a grant from the Corporation: (a) An 2519.200 How may grant funds be used? institution of higher education. (b) A consortium of institutions of Subpart C—Participant Eligibility and higher education. Benefits (c) A higher education partnership, 2519.300 Who may participate in a Higher as defined in § 2510.20 of this chapter. Education program? 2519.310 Is a participant eligible to receive § 2519.120 What is the Federal Work- an AmeriCorps educational award? Study requirement? 2519.320 May a program provide a stipend to To be eligible for assistance under a participant? this part, an institution of higher edu- Subpart D—Application Contents cation must demonstrate that it meets the minimum requirements under sec- 2519.400 What must an applicant include in tion 443(b)(2)(A) of the Higher Edu- an application for a grant? cation Act of 1965 (42 U.S.C. 2753(b)(2)(A)) relating to the participa- Subpart E—Application Review tion of students employed under part C 2519.500 How does the Corporation review an of title IV of the Higher Education Act application? of 1965 (42 U.S.C. 2751 et seq.) (relating to Federal Work-Study programs) in Subpart F—Distribution of Funds community service activities, or has 2519.600 How are funds for Higher Education received a waiver of those require- programs distributed? ments from the Secretary of Edu- cation. Subpart G—Funding Requirements [74 FR 46505, Sept. 10, 2009] 2519.700 Are matching funds required? 2519.710 Are there limits on the use of Subpart B—Use of Grant Funds funds? 2519.720 What is the length of a grant? § 2519.200 How may grant funds be 2519.730 May an applicant submit more than used? one application to the Corporation for the same project at the same time? Funds under a higher education program grant may be used for the fol- Subpart H—Evaluation Requirements lowing activities: (a) Enabling an institution of higher education, a higher 2519.800 What are the evaluation require- education partnership or a consortium ments for Higher Education programs? to create or expand an organized com- AUTHORITY: 42 U.S.C. 12561; 42 U.S.C. 12645g. munity service program that— SOURCE: 59 FR 13792, Mar. 23, 1994, unless (1) Engenders a sense of social re- otherwise noted. sponsibility and commitment to the

637

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00647 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2519.300 45 CFR Ch. XXV (10–1–11 Edition)

community in which the institution is § 2519.310 Is a participant eligible to located; and receive an AmeriCorps educational (2) Provides projects for the partici- award? pants described in § 2519.300. In general, no. However, certain posi- (b) Supporting student-initiated and tions in programs funded under this student-designed community service part may qualify as approved projects. AmeriCorps positions. The Corporation (c) Strengthening the leadership and will establish eligibility requirements instructional capacity of teachers at for these positions as a part of the ap- the elementary, secondary, and post- plication package. secondary levels with respect to serv- § 2519.320 May a program provide a ice-learning by— stipend to a participant? (1) Including service-learning as a (a) A program may provide a stipend key component of the preservice teach- for service activities for a participant er education of the institution; and who is a student if the provision of sti- (2) Encouraging the faculty of the in- pends in reasonable in the context of a stitution to use service-learning meth- program’s design and objectives. ods throughout the curriculum. (1) A program may not provide a sti- (d) Facilitating the integration of pend to a student who is receiving aca- community service carried out under demic credit for service activities un- the grant into academic curricula, in- less the service activities require a cluding integration of clinical pro- substantial time commitment beyond grams into the curriculum for students that expected for the credit earned. in professional schools, so that stu- (2) A participant who is earning dents may obtain credit for their com- money for service activities under the munity service projects. work-study program described in (e) Supplementing the funds avail- § 2519.200(e) may not receive an addi- able to carry out work-study programs tional stipend from funds under this under part C of title IV of the Higher part. Education Act of 1965 (42 U.S.C. 2751 et (b) Consistent with the AmeriCorps seq.) to support service-learning and program requirements in § 2522.100 of community service. this chapter, a program with partici- (f) Strengthening the service infra- pants serving in approved full-time structure within institutions of higher AmeriCorps positions must ensure the education in the United States that provision of a living allowance and, if supports service-learning and commu- necessary, health care and child care to nity service. those participants. A program may, (g) Providing for the training of but is not required to, provide a pro- teachers, prospective teachers, related rated living allowance to individuals education personnel, and community participating in approved AmeriCorps leaders in the skills necessary to depositions on a part-time basis, con- velop, supervise, and organize service- sistent with the AmeriCorps program learning. requirements in § 2522.240 of this chapter.

Subpart C—Participant Eligibility Subpart D—Application Contents and Benefits § 2519.400 What must an applicant in- § 2519.300 Who may participate in a clude in an application for a grant? Higher Education program? In order to apply to the Corporation Students, faculty, administration for a grant, an applicant must submit and staff of an institution, as well as the following: (a) A plan describing the residents of the community may par- goals and activities of the proposed ticipate. For the purpose of this part, program. the term ‘‘student’’ means an indi- (b) The specific program, budget, and vidual who is enrolled in an institution other information and assurances spec- of higher education on a full-time or ified by the Corporation in the grant part-time basis. application package.

638

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00648 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2519.600

(c) Assurances that the applicant (4) Describe any higher education will— partnership that will participate in the (1) Keep such records and provide community service projects, such as a such information to the Corporation higher education partnership com- with respect to the program as may be prised of the institution, a student or- required for fiscal audits and program ganization, a community-based agency, evaluation; a local government agency, or a non- (2) Comply with the criminal history profit entity that serves or involves check requirements for all grant-fund- school-age youth, older adults, low-in- ed staff employed after October 1, 2009, come communities, a department of in accordance with 45 CFR 2540.200–207, as well as the nonduplication, non- the institution, or a group of faculty displacement, and grievance procedure comprised of different departments, requirements of Part 2540. schools, or colleges at the institution; (3) Prior to the placement of a partic- (5) Demonstrate community involve- ipant in the program, consult with the ment in the development of the pro- appropriate local labor organization, if posal and the extent to which the pro- any, representing employees in the posal will contribute to the goals of the area who are engaged in the same or involved community members; similar work as the work proposed to (6) Demonstrate a commitment to be carried out by the program, to pre- perform community service projects in vent the displacement and protect the underserved urban and rural commu- rights of those employees; and nities; (4) Comply with any other assurances (7) Describe research on effective that the Corporation deems necessary. strategies and methods to improve [59 FR 13792, Mar. 23, 1994, as amended at 74 service utilized in the design of the FR 46505, Sept. 10, 2009] projects; (8) Specify that the institution will Subpart E—Application Review use funds under this part to strengthen the infrastructure in institutions of § 2519.500 How does the Corporation review an application? higher education; (9) With respect to projects involving (a) The Corporation will review an delivery of service, specify projects application submitted under this part that involve leadership development of on the basis of the quality, innovation, replicability, and sustainability of the school-age youth; or proposed program and such other cri- (10) Describe the needs that the pro- teria as the Corporation establishes in posed projects are designed to address, an application package. such as housing, economic develop- (b) In addition, in reviewing applica- ment, infrastructure, health care, job tions submitted under this part, the training, education, crime prevention, Corporation will take into consider- urban planning, transportation, infor- ation whether proposed programs— mation technology, or child welfare. (1) Demonstrate the commitment of (c) In addition, the Corporation may the institution of higher education, designate additional review criteria in other than by demonstrating the com- an application notice that will be used mitment of its students, to supporting in selecting programs. the community service projects carried out under the program; [74 FR 46505, Sept. 10, 2009] (2) Specify how the institution will promote faculty, administration, and Subpart F—Distribution of Funds staff participation in the community service projects; § 2519.600 How are funds for Higher (3) Specify the manner in which the Education programs distributed? institution will provide service to the All funds under this part are distrib- community through organized pro- uted by the Corporation through grants grams, including, where appropriate, or by contract. clinical programs for students in professional schools and colleges;

639

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00649 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2519.700 45 CFR Ch. XXV (10–1–11 Edition)

Subpart G—Funding Requirements (B) Unreimbursed indirect costs may be applied to meeting operational § 2519.700 Are matching funds re- matching requirements under the Cor- quired? poration’s award; (a) Yes. The Corporation share of the (ii) Specify that a fixed rate of six cost of carrying out a program funded percent or less (not subject to sup- under this part may not exceed 50 per- porting cost documentation) of total cent. Corporation funds expended may be (b) In providing for the remaining used to pay for administrative costs, share of the cost of carrying out a pro- provided that the fixed rate is in con- gram, each recipient of assistance must junction with an overall 15 percent ad- provide for that share through a pay- ministrative cost factor to be used for ment in cash or in-kind, fairly evalu- organizations that do not have estab- ated, including facilities, equipment, lished indirect cost rates; or or services, and may provide for that (iii) Utilize such other method that share through State sources, local the Corporation determines in writing sources (including private funds or do- is consistent with OMB guidance and nated services) or Federal sources other applicable requirements, helps (other than funds made available under minimize the burden on grantees or the national service laws). subgrantees, and is beneficial to grant- (c) However, the Corporation may waive the requirements of paragraph ees or subgrantees and the Federal (b) of this section in whole or in part Government. with respect to any program in any fis- [63 FR 18138, Apr. 14, 1998, as amended at 74 cal year if the Corporation determines FR 46506, Sept. 10, 2009] that the waiver would be equitable due to lack of available financial resources § 2519.720 What is the length of a at the local level. grant? [59 FR 13792, Mar. 23, 1994, as amended at 74 A grant under this part is for a period FR 46506, Sept. 10, 2009] of up to three years, subject to satisfactory performance and annual appro- § 2519.710 Are there limits on the use priations. of funds? Yes. The following limits apply to § 2519.730 May an applicant submit funds available under this part: more than one application to the (a) (1) Not more than six percent of Corporation for the same project at the grant funds provided under this the same time? part for any fiscal year may be used to No. The Corporation will reject an pay for administrative costs, as defined application for a project if an applica- in § 2510.20 of this chapter. tion for funding or educational awards (2) The distribution of administrative for the same project is already pending costs between the grant and any before the Corporation. subgrant will be subject to the approval of the Corporation. (3) In applying the limitation on ad- Subpart H—Evaluation ministrative costs the Corporation will Requirements approve one of the following methods in the award document: § 2519.800 What are the evaluation requirements for Higher Education (i) Limit the amount or rate of indi- programs? rect costs that may be paid with Cor- poration funds under a grant or The monitoring and evaluation re- subgrant to six percent of total Cor- quirements for recipients of grants and poration funds expended, provided subgrants under part 2516 of this chap- that— ter, relating to school-based service- (A) Organizations that have an estab- learning programs, apply to recipients lished indirect cost rate for Federal under this part. awards will be limited to this method; and

640

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00650 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2520.25

PART 2520—GENERAL PROVISIONS: § 2520.20 What service activities may I AMERICORPS SUBTITLE C PRO- support with my grant? GRAMS (a) Your grant must initiate, improve, or expand the ability of an orga- Sec. nization and community to provide 2520.5 What definitions apply to this part? services to address local unmet envi- 2520.10 What is the purpose of the ronmental, educational, public safety AmeriCorps subtitle C program described (including disaster preparedness and in parts 2520 through 2524 of this chapter? response), or other human needs. 2520.20 What service activities may I sup- (b) You may use your grant to support with my grant? port AmeriCorps members: 2520.25 What direct service activities may (1) Performing direct service activi- AmeriCorps members perform? ties that meet local needs. 2520.30 What capacity-building activities may AmeriCorps member perform? (2) Performing capacity-building ac- 2520.35 Must my program recruit or support tivities that improve the organiza- volunteers? tional and financial capability of non- 2520.40 Under what circumstances may profit organizations and communities AmeriCorps members in my program to meet local needs by achieving great- raise resources? er organizational efficiency and effec- 2520.45 How much time may an AmeriCorps tiveness, greater impact and quality of member spend fundraising? impact, stronger likelihood of success- 2520.50 How much time may AmeriCorps ful replicability, or expanded scale. members in my program spend in education and training activities? [70 FR 39596, July 8, 2005] 2520.55 When may my organization collect fees for services provided by AmeriCorps § 2520.25 What direct service activities members? may AmeriCorps members perform? 2520.60 What government-wide requirements (a) The AmeriCorps members you apply to staff fundraising under my support under your grant may perform AmeriCorps grant? 2520.65 What activities are prohibited in direct service activities that will ad- AmeriCorps subtitle C programs? vance the goals of your program, that will result in a specific identifiable AUTHORITY: 42 U.S.C. 12571–12595. service or improvement that otherwise SOURCE: 59 FR 13794, Mar. 23, 1994, unless would not be provided, and that are in- otherwise noted. cluded in, or consistent with, your Cor- poration-approved grant application. § 2520.5 What definitions apply to this (b) Your members’ direct service ac- part? tivities must address local environ- You. For this part, you refers to the mental, educational, public safety (in- grantee or an organization operating cluding disaster preparedness and re- an AmeriCorps program. sponse), or other human needs. (c) Direct service activities generally [70 FR 39596, July 8, 2005] refer to activities that provide a direct, § 2520.10 What is the purpose of the measurable benefit to an individual, a AmeriCorps subtitle C program de- group, or a community. scribed in parts 2520 through 2524 (d) Examples of the types of direct of this chapter? service activities AmeriCorps members The purpose of the AmeriCorps sub- may perform include, but are not lim- title C program is to provide financial ited to, the following: assistance under subtitle C of the Na- (1) Tutoring children in reading; tional and Community Service Act to (2) Helping to run an after-school program; support AmeriCorps programs that ad- (3) Engaging in community clean-up dress educational, public safety, projects; human, or environmental needs (4) Providing health information to a through national and community serv- vulnerable population; ice, and to provide AmeriCorps edu- (5) Teaching as part of a professional cation awards to participants in such corps; programs. (6) Providing relief services to a com- [67 FR 45359, July 9, 2002] munity affected by a disaster; and

641

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00651 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2520.30 45 CFR Ch. XXV (10–1–11 Edition)

(7) Conducting a neighborhood watch information that will strengthen the program as part of a public safety ef- sponsoring organization’s ability to fort. meet community needs; [70 FR 39597, July 8, 2005] (ii) Developing new programs or services in a sponsoring organization seek- § 2520.30 What capacity-building ac- ing to expand; tivities may AmeriCorps members (iii) Developing organizational sys- perform? tems to improve efficiency and effec- Capacity-building activities that tiveness; AmeriCorps members perform should (iv) Automating organizational oper- enhance the mission, strategy, skills, ations to improve efficiency and effec- and culture, as well as systems, infra- tiveness; structure, and human resources of an (v) Initiating or expanding revenue- organization that is meeting unmet generating operations directly in sup- community needs. Capacity-building port of service activities; and activities help an organization gain (vi) Supporting staff and board edu- greater independence and sustain- cation. ability. (4) Developing collaborative relation- (a) The AmeriCorps members you ships with other organizations working support under your grant may perform to achieve similar goals in the commu- capacity-building activities that ad- nity, such as: vance your program’s goals and that (i) Community organizations, includ- are included in, or consistent with, ing faith-based organizations; your Corporation-approved grant appli- (ii) Foundations; cation. (iii) Local government agencies; (b) Examples of capacity-building ac- (iv) Institutions of higher education; tivities your members may perform in- and clude, but are not limited to, the following: (v) Local education agencies or orga- (1) Strengthening volunteer manage- nizations. ment and recruitment, including: [70 FR 39597, July 8, 2005] (i) Enlisting, training, or coordinating volunteers; § 2520.35 Must my program recruit or (ii) Helping an organization develop support volunteers? an effective volunteer management (a) Unless the Corporation or the system; State commission, as appropriate, ap- (iii) Organizing service days and proves otherwise, some component of other events in the community to in- your program that is supported crease citizen engagement; through the grant awarded by the Cor- (iv) Promoting retention of volun- poration must involve recruiting or teers by planning recognition events or supporting volunteers. providing ongoing support and follow- (b) If you demonstrate that requiring up to ensure that volunteers have a your program to recruit or support vol- high-quality experience; and unteers would constitute a funda- (v) Assisting an organization in mental alteration to your program reaching out to individuals and com- structure, the Corporation (or the munities of different backgrounds State commission for formula pro- when encouraging volunteering to en- grams) may waive the requirement in sure that a breadth of experiences and response to your written request for expertise is represented in service ac- such a waiver in the grant application. tivities. (2) Conducting outreach and securing [70 FR 39597, July 8, 2005] resources in support of service activities that meet specific needs in the § 2520.40 Under what circumstances community; may AmeriCorps members in my (3) Helping build the infrastructure of program raise resources? the sponsoring organization, including: (a) AmeriCorps members may raise (i) Conducting research, mapping resources directly in support of your community assets, or gathering other program’s service activities.

642

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00652 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2520.65

(b) Examples of fundraising activities (b) Capacity-building activities and AmeriCorps members may perform indirect service activities do not count clude, but are not limited to, the fol- towards the 20 percent cap on edu- lowing: cation and training activities. (1) Seeking donations of books from companies and individuals for a pro- [70 FR 39597, July 8, 2005] gram in which volunteers teach chil- § 2520.55 When may my organization dren to read; collect fees for services provided by (2) Writing a grant proposal to a AmeriCorps members? foundation to secure resources to support the training of volunteers; You may, where appropriate, collect (3) Securing supplies and equipment fees for direct services provided by from the community to enable volun- AmeriCorps members if: teers to help build houses for low-in- (a) The service activities conducted come individuals; by the members are allowable, as de- (4) Securing financial resources from fined in this part, and do not violate the community to assist in launching the non-displacement provisions in or expanding a program that provides § 2540.100 of these regulations; and social services to the members of the (b) You use any fees collected to fi- community and is delivered, in whole nance your non-Corporation share, or or in part, through the members of a as otherwise authorized by the Cor- community-based organization; poration. (5) Seeking donations from alumni of the program for specific service [70 FR 39597, July 8, 2005] projects being performed by current members. § 2520.60 What government-wide requirements apply to staff fund- (c) AmeriCorps members may not: raising under my AmeriCorps (1) Raise funds for living allowances grant? or for an organization’s general (as opposed to project) operating expenses or You must follow all applicable OMB endowment; circulars on allowable costs (OMB Cir- (2) Write a grant application to the cular A–87 for State, Local, and Indian Corporation or to any other Federal Tribal Governments, OMB Circular A– agency. 122 for Nonprofit Organizations, and OMB Circular A–21 for Educational In- [70 FR 39597, July 8, 2005] stitutions). In general, the OMB circulars do not allow the following as di- § 2520.45 How much time may an AmeriCorps member spend fund- rect costs under the grant: Costs of or- raising? ganized fundraising, including financial campaigns, endowment drives, so- An AmeriCorps member may spend licitation of gifts and bequests, and no more than ten percent of his or her similar expenses incurred solely to originally agreed-upon term of service, raise capital or obtain contributions. as reflected in the member enrollment in the National Service Trust, per- [70 FR 39597, July 8, 2005] forming fundraising activities, as described in § 2520.40. § 2520.65 What activities are prohibited in AmeriCorps subtitle C pro- [70 FR 39597, July 8, 2005] grams? § 2520.50 How much time may (a) While charging time to the AmeriCorps members in my pro- AmeriCorps program, accumulating gram spend in education and train- service or training hours, or otherwise ing activities? performing activities supported by the (a) No more than 20 percent of the ag- AmeriCorps program or the Corpora- gregate of all AmeriCorps member tion, staff and members may not en- service hours in your program, as re- gage in the following activities: flected in the member enrollments in (1) Attempting to influence legisla- the National Service Trust, may be tion; spent in education and training activi- (2) Organizing or engaging in pro- ties. tests, petitions, boycotts, or strikes;

643

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00653 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2521 45 CFR Ch. XXV (10–1–11 Edition)

(3) Assisting, promoting, or deterring Individuals should not wear the union organizing; AmeriCorps logo while doing so. (4) Impairing existing contracts for [67 FR 45359, July 9, 2002. Redesignated at 70 services or collective bargaining agree- FR 39597, July 8, 2005; 73 FR 53759, Sept. 17, ments; 2008; 74 FR 46506, Sept. 10, 2009] (5) Engaging in partisan political activities, or other activities designed to PART 2521—ELIGIBLE AMERICORPS influence the outcome of an election to SUBTITLE C PROGRAM APPLI- any public office; CANTS AND TYPES OF GRANTS (6) Participating in, or endorsing, AVAILABLE FOR AWARD events or activities that are likely to include advocacy for or against polit- Sec. ical parties, political platforms, polit- 2521.5 What definitions apply to this part? ical candidates, proposed legislation, 2521.10 Who may apply to receive an or elected officials; AmeriCorps subtitle C grant? 2521.20 What types of AmeriCorps subtitle C (7) Engaging in religious instruction, program grants are available for award? conducting worship services, providing 2521.30 How will AmeriCorps subtitle C pro- instruction as part of a program that gram grants be awarded? includes mandatory religious instruc- PROGRAM MATCHING REQUIREMENTS tion or worship, constructing or operating facilities devoted to religious in- 2521.35 Who must comply with matching requirements? struction or worship, maintaining fa- 2521.40 What are the matching require- cilities primarily or inherently devoted ments? to religious instruction or worship, or 2521.45 What are the limitations on the Fed- engaging in any form of religious pros- eral government’s share of program elytization; costs? (8) Providing a direct benefit to— 2521.50 If I am an Indian Tribe, to what extent may I use tribal funds toward my (i) A business organized for profit; share of costs? (ii) A labor union; 2521.60 To what extent must my share of (iii) A partisan political organiza- program costs increase over time? tion; 2521.70 To what extent may the Corporation waive the matching requirements in (iv) A nonprofit organization that §§ 2521.45 and 2521.60 of this part? fails to comply with the restrictions 2521.80 What matching level applies if my contained in section 501(c)(3) of the In- program was funded in the past but has ternal Revenue Code of 1986 except that not recently received an AmeriCorps nothing in this section shall be con- grant? strued to prevent participants from en- 2521.90 If I am a new or replacement legal applicant for an existing program, what gaging in advocacy activities under- will my matching requirements be? taken at their own initiative; 2521.95 To what extent may I use grant (v) An organization engaged in the funds for administrative costs? religious activities described in para- AUTHORITY: 42 U.S.C. 12571–12595. graph (g) of this section, unless Cor- SOURCE: 59 FR 13794, Mar. 23, 1994, unless poration assistance is not used to sup- otherwise noted. port those religious activities; and (9) Conducting a voter registration § 2521.5 What definitions apply to this drive or using Corporation funds to part? conduct a voter registration drive; You. For this part, you refers to the (10) Providing abortion services or re- grantee, unless otherwise noted. ferrals for receipt of such services; and [70 FR 39598, July 8, 2005] (11) Such other activities as the Cor- poration may prohibit. § 2521.10 Who may apply to receive an (b) Individuals may exercise their AmeriCorps subtitle C grant? rights as private citizens and may par- (a) States (including Territories), ticipate in the activities listed above subdivisions of States, Indian tribes, on their initiative, on non-AmeriCorps public or private nonprofit organiza- time, and using non-Corporation funds. tions (including religious organizations

644

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00654 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2521.20

and labor organizations), and institu- (b) Operational grants—(1) Purpose. tions of higher education are eligible The purpose of an operational grant is to apply for AmeriCorps subtitle C to fund an organization that is ready to grants. However, the fifty States, the establish, operate, or expand an District of Columbia and Puerto Rico AmeriCorps program. An operational must first receive Corporation author- grant may include AmeriCorps edu- ization for the use of a State Commis- cational awards. An operational grant sion or alternative administrative or may also include a short planning pe- transitional entity pursuant to part riod of up to six months, if necessary, 2550 of this chapter in order to be eligi- to implement a program. ble. (2) Eligibility. (i) States may apply di- (b) The Corporation may also enter rectly to the Corporation for oper- into contracts or cooperative agree- ational grants. ments for AmeriCorps assistance with (ii) Subdivisions of States, Indian Federal agencies that are Executive Tribes, public or private nonprofit or- Branch agencies or departments. Bu- ganizations (including religious organi- reaus, divisions, and local and regional zations and labor organizations), and offices of such departments and agen- institutions of higher education may cies may only receive assistance pursu- apply either to a State or directly to ant to a contract or agreement with the Corporation for operational grants. the central department or agency. The The Corporation may limit the cat- requirements relating to Federal agen- egories of applicants eligible to apply cies are described in part 2523 of this directly to the Corporation for assist- chapter. ance under this section consistent with its National priorities. [59 FR 13794, Mar. 23, 1994, as amended at 67 FR 45360, July 9, 2002] (3) Duration. An operational grant will be negotiated for a term not to ex- § 2521.20 What types of AmeriCorps ceed three years. Within a three-year subtitle C program grants are avail- term, renewal funding will be contin- able for award? gent upon periodic assessment of pro- The Corporation may make the fol- gram quality, progress to date, and lowing types of grants to eligible appli- availability of Congressional appro- cants. The requirements of this section priations. will also apply to any State or other (c) Replication Grants. The Corpora- applicant receiving assistance under tion may provide assistance for the this part that proposes to conduct a replication of an existing national grant program using the assistance to service program to another geo- support other national or community graphical location. service programs. (d) Training, technical assistance and (a) Planning grants—(1) Purpose. The other special grants—(1) Purpose. The purpose of a planning grant is to assist purpose of these grants is to ensure an applicant in completing the plan- broad access to AmeriCorps programs ning necessary to implement a sound for all Americans, including those with concept that has already been devel- disabilities; support disaster relief ef- oped. forts; assist efforts to secure private (2) Eligibility. (i) States may apply di- support for programs through chal- rectly to the Corporation for planning lenge grants; and ensure program qual- grants. ity by supporting technical assistance and training programs. (ii) Subdivisions of States, Indian Tribes, public or private nonprofit or- (2) Eligibility. Eligibility varies and is ganizations (including religious organi- detailed under 45 CFR part 2524, zations and labor organizations), and ‘‘Technical Assistance and Other Spe- institutions of higher education may cial Grants.’’ apply either to a State or directly to (3) Duration. Grants will be nego- the Corporation for planning grants. tiated for a renewable term of up to (3) Duration. A planning grant will be three years. negotiated for a term not to exceed one [59 FR 13794, Mar. 23, 1994, as amended at 67 year. FR 45360, July 9, 2002]

645

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00655 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2521.30 45 CFR Ch. XXV (10–1–11 Edition)

§ 2521.30 How will AmeriCorps subtitle (2) One percent of available funds will C program grants be awarded? be reserved for distribution to Indian In any fiscal year, the Corporation tribes on a competitive basis. will award AmeriCorps subtitle C pro- (3) The Corporation will use any gram grants as follows: funds available under this part remaining after the award of the grants de- (a) Grants to State Applicants. (1) For the purposes of this section, the term scribed in paragraphs (a) and (b) (1) and ‘‘State’’ means the fifty States, Puerto (2) of this section to make direct com- Rico, and the District of Columbia. petitive grants to subdivisions of States, Indian tribes, public or private (2) One-third of the funds available nonprofit organizations (including reli- under this part and a corresponding al- gious organizations and labor organiza- lotment of AmeriCorps educational tions), institutions of higher education, awards, as specified by the Corpora- and Federal agencies. No more than tion, will be distributed according to a one-third of the these remaining funds population-based formula to the 50 may be awarded to Federal agencies. States, Puerto Rico and the District of (c) Allocation of AmeriCorps edu- Columbia if they have applications ap- cational awards only. The Corporation proved by the Corporation. will determine on an annual basis the (3) At least one-third of funds avail- appropriate number of educational able under this part and an appropriate awards to make available for eligible number of AmeriCorps awards, as de- applicants who have not applied for termined by the Corporation, will be program assistance. awarded to States on a competitive (d) Effect of States’ or Territories’ fail- basis. In order to receive these funds, a ure to apply. If a State or U.S. Terri- State must receive funds under para- tory does not apply for or fails to give graphs (a)(2) or (b)(1) of this section in adequate notice of its intent to apply the same fiscal year. for a formula-based grant as announced (4) In making subgrants with funds by the Corporation and published in ap- awarded by formula or competition plications and the Notice of Funds under paragraphs (a)(2) or (3) of this Availability, the Corporation will use section, a State must ensure that a the amount of that State’s allotment minimum of 50 percent of funds going to make grants to eligible entities to to States will be used for programs carry out AmeriCorps programs in that that operate in the areas of need or on State or Territory. Any funds remain- Federal or other public lands, and that ing from that State’s allotment after place a priority on recruiting partici- making such grants will be reallocated pants who are residents in high need to the States, Territories, and Indian areas, or on Federal or other public tribes with approved AmeriCorps appli- lands. The Corporation may waive this cations at the Corporation’s discretion. requirement for an individual State if (e) Effect of rejection of State applica- at least 50 percent of the total amount tion. If a State’s application for a for- of assistance to all States will be used mula-based grant is ultimately re- for such programs. jected by the Corporation pursuant to (b) Grants to Applicants other than § 2522.320 of this chapter, the State’s al- States. (1) One percent of available lotment will be available for redis- funds will be distributed to the U.S. tribution by the Corporation to the 1 Territories that have applications ap- States, Territories, and Indian Tribes proved by the Corporation according to with approved AmeriCorps applications 2 a population-based formula. as the Corporation deems appropriate. (f) The Corporation will make grants 1 The United States Virgin Islands, Guam, for training, technical assistance and American Samoa, and the Commonwealth of other special programs described in the Northern Mariana Islands. part 2524 of this chapter at the Cor- 2 The amount allotted as a grant to each poration’s discretion. such territory or possession is equal to the ratio of each such Territory’s population to [59 FR 13794, Mar. 23, 1994, as amended at 63 the population of all such territories multi- FR 18138, Apr. 14, 1998; 67 FR 45360, July 9, plied by the amount of the one percent set- 2002; 70 FR 39598, July 8, 2005; 73 FR 53759, aside. Sept. 17, 2008]

646

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00656 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2521.50

PROGRAM MATCHING REQUIREMENTS quired under State law), worker’s compensation (if required under State law), § 2521.35 Who must comply with is limited as follows: matching requirements? (1) The Federal share of the living al- (a) The matching requirements de- lowance may not exceed 85 percent of scribed in §§ 2521.40 through 2521.95 the minimum living allowance required apply to you if you are a subgrantee of under § 2522.240(b)(1), and 85 percent of a State commission or a direct pro- other member support costs. gram grantee of the Corporation. These (2) If you are a professional corps de- requirements do not apply to Edu- scribed in § 2522.240(b)(2)(i), you may cation Award Programs. not use Corporation funds for the liv- (b) If you are a State commission, ing allowance. you must ensure that your grantees (3) Your share of member support meet the match requirements estab- costs must be non-Federal cash. lished in this part, and you are also re- (4) The Corporation’s share of health sponsible for meeting an aggregate care costs may not exceed 85 percent. overall match based on your grantees’ (b) Program operating costs: The Cor- individual match requirements. poration share of program operating [70 FR 39598, July 8, 2005; 70 FR 48882, Aug. 22, costs may not exceed 67 percent. These 2005] costs include expenditures (other than member support costs described in § 2521.40 What are the matching re- paragraph (a) of this section) such as quirements? staff, operating expenses, internal eval- If you are subject to matching re- uation, and administration costs. quirements under § 2521.35, you must (1) You may provide your share of adhere to the following: program operating costs with cash, in- (a) Basic match: At a minimum, you cluding other Federal funds (as long as must meet the basic match require- the other Federal agency permits its ments as articulated in § 2521.45. funds to be used as match), or third (b) Regulatory match: In addition to party in-kind contributions. the basic requirements under para- (2) Contributions, including third graph (a) of this section, you must pro- party in-kind must: vide an overall level of matching funds (i) Be verifiable from your records; according to the schedule in § 2521.60(a), (ii) Not be included as contributions or § 2521.60(b) if applicable. for any other Federally assisted pro- (c) Budgeted match: To the extent gram; that the match in your approved budg- (iii) Be necessary and reasonable for et exceeds your required match levels the proper and efficient accomplish- under paragraph (a) or (b) of this sec- ment of your program’s objectives; and tion, any failure to provide the amount (iv) Be allowable under applicable above your regulatory match but below OMB cost principles. your budgeted match will be considered (3) You may not include the value of as a measure of past performance in direct community service performed by subsequent grant competitions. volunteers, but you may include the value of services contributed by volun- [70 FR 39598, July 8, 2005] teers to your organizations for organi- § 2521.45 What are the limitations on zational functions such as accounting, the Federal government’s share of audit, and training of staff and program costs? AmeriCorps programs. The limitations on the Federal gov- [70 FR 39598, July 8, 2005] ernment’s share are different—in type and amount—for member support costs § 2521.50 If I am an Indian Tribe, to and program operating costs. what extent may I use tribal funds (a) Member support: The Federal towards my share of costs? share, including Corporation and other If you are an Indian Tribe that re- Federal funds, of member support ceives tribal funds through Public Law costs, which include the living allow- 93–638 (the Indian Self-Determination ance required under § 2522.240(b)(1), and Education Assistance Act), those FICA, unemployment insurance (if refunds are considered non-Federal and

647

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00657 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2521.60 45 CFR Ch. XXV (10–1–11 Edition)

you may use them towards your share and operating costs, will incrementally of costs, including member support increase to a 50 percent overall share costs. by the tenth year and any year thereafter that you receive a grant, without [70 FR 39598, July 8, 2005] a break in funding of five years or more. A 50 percent overall match § 2521.60 To what extent must my means that you will be required to share of program costs increase over time? match $1 for every $1 you receive from the Corporation. Except as provided in paragraph (b) (a) Minimum Organization Share: (1) of this section, if your program con- Subject to the requirements of § 2521.45 tinues to receive funding after an ini- of this part, and except as provided in tial three-year grant period, you must paragraph (b) of this section, your continue to meet the minimum re- overall share of program costs will in- quirements in § 2541.45 of this part. In crease as of the fourth consecutive addition, your required share of pro- year that you receive a grant, accord- gram costs, including member support ing to the following timetable:

Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 10 (per- (per- (per- (per- (per- (per- (per- (per- (per- (percent) cent) cent) cent) cent) cent) cent) cent) cent) cent)

Minimum member support.... 15 15 15 15 15 15 15 15 15 15 Minimum operating costs...... 33 33 33 33 33 33 33 33 33 33 Minimum overall share...... N/A N/A N/A 26 30 34 38 42 46 50

(2) A grantee must have contributed (b) Alternative match requirements: If matching resources by the end of a your program is unable to meet the grant period in an amount equal to the match requirements as required in combined total of the minimum overall paragraph (a) of this section, and is lo- annual match for each year of the cated in a rural or a severely economi- grant period, according to the table in cally distressed community, you may paragraph (a)(1) of this section. apply to the Corporation for a waiver (3) A State commission may meet its that would require you to increase the match based on the aggregate of its overall amount of your share of program costs beginning in the seventh grantees’ individual match require- consecutive year that you receive a ments. grant, according to the following table:

Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 10 (per- (per- (per- (per- (per- (per- (per- (per- (per- (percent) cent) cent) cent) cent) cent) cent) cent) cent) cent)

Minimum member support.... 15 15 15 15 15 15 15 15 15 15 Minimum operating costs...... 33 33 33 33 33 33 33 33 33 33 Minimum overall share...... N/A N/A N/A N/A N/A N/A 29 31 33 35

(c) Determining Program Location. (1) (c)(4) of this section, the Corporation The Corporation will determine wheth- will determine the location of your er your program is located in a rural program based on the legal applicant’s county by considering the U.S. Depart- address. ment of Agriculture’s Beale Codes. (4) If you believe that the legal appli- (2) The Corporation will determine cant’s address is not the appropriate whether your program is located in a way to consider the location of your severely economically distressed coun- program, you may request the waiver ty by considering unemployment rates, described in paragraph (b) of this sec- per capita income, and poverty rates. tion and provide the relevant facts (3) Unless the Corporation approves about your program location to sup- otherwise, as provided in paragraph port your request.

648

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00658 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2521.95

(d) Schedule for current program (4) The amount of matching re- grants: If you have completed at least sources you have raised or reasonably one three-year grant cycle on the date expect to raise. this regulation takes effect, you will be (c) You must provide with your waiv- required to provide your share of costs er request: beginning at the year three level, ac- (1) A request for the specific amount cording to the table in paragraph (a) of of match you are requesting that the this section, in the first program year Corporation waive; and in your grant following the regula- (2) A budget and budget narrative tion’s effective date, and increasing that reflects the requested level in each year thereafter as reflected in the matching resources. table. (e) Flexibility in how you provide your [70 FR 39598, July 8, 2005] share: As long as you meet the basic § 2521.80 What matching level applies match requirements in § 2521.45, you if my program was funded in the may use cash or in-kind contributions past but has not recently received to reach the overall share level. For ex- an AmeriCorps grant? ample, if your organization finds it (a) If you have not been a direct re- easier to raise member support match, cipient of an AmeriCorps operational you may choose to meet the required grant from the Corporation or a State overall match by raising only more commission for five years or more, as member support match, and leave oper- determined by the end date of your ational match at the basic level, as most recent grant period, you may long as you provide the required over- begin matching at the year one level, all match. as reflected in the timetable in (f) Reporting excess resources. (1) The § 2521.60(a) of this part, upon receiving Corporation encourages you to obtain your new grant award. support over-and-above the matching (b) If you have not been a direct refund requirements. Reporting these recipient of an AmeriCorps operational sources may make your application grant from the Corporation or a State more likely to be selected for funding, commission for fewer than five years, based on the selection criteria in you must begin matching at the same §§ 2522.430 and 2522.435 of these regula- level you were matching at the end of tions. your most recent grant period. (2) You must comply with § 2543.23 of this title and applicable OMB circulars [70 FR 39598, July 8, 2005] in documenting cash and in-kind contributions and excess resources. § 2521.90 If I am a new or replacement legal applicant for an existing pro- [70 FR 39598, July 8, 2005] gram, what will my matching requirements be? § 2521.70 To what extent may the Cor- poration waive the matching re- If your organization is a new or requirements in §§ 2521.45 and 2521.60 placement legal applicant for an exist- of this part? ing program, you must provide matching resources at the level the previous (a) The Corporation may waive, in legal applicant had reached at the time whole or in part, the requirements of you took over the program. §§ 2521.45 and 2521.60 of this part if the Corporation determines that a waiver [70 FR 39598, July 8, 2005] would be equitable because of a lack of available financial resources at the § 2521.95 To what extent may I use local level. grant funds for administrative (b) If you are requesting a waiver, costs? you must demonstrate: (a) Not more than five percent of the (1) The lack of resources at the local grant funds provided under this part level; for any fiscal year may be used to pay (2) That the lack of resources in your for administrative costs, as defined in local community is unique or unusual; § 2510.20 of this chapter. (3) The efforts you have made to raise (b) The distribution of administrative matching resources; and costs between the grant and any

649

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00659 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2522 45 CFR Ch. XXV (10–1–11 Edition)

subgrant will be subject to the ap- 2522.205 To whom must I apply suitability proval of the Corporation. criteria relating to criminal history? (c) In applying the limitation on ad- 2522.206 What suitability criteria must I ministrative costs the Corporation will apply to a covered position? 2522.207 What are the procedures I must fol- approve one of the following methods low to determine an individual’s suit- in the award document: ability to serve in a covered position? (1) Limit the amount or rate of indi- 2522.210 How are AmeriCorps participants rect costs that may be paid with Cor- recruited and selected? poration funds under a grant or 2522.220 What are the required terms of subgrant to five percent of total Cor- service for AmeriCorps participants? poration funds expended, provided 2522.230 Under what circumstances may an that— AmeriCorps participant be released from (i) Organizations that have an estab- completing a term of service, and what are the consequences? lished indirect cost rate for Federal 2522.235 Is there a limit on the number of awards will be limited to this method; terms an individual may serve in an and AmeriCorps State and National program? (ii) Unreimbursed indirect costs may 2522.240 What financial benefits do be applied to meeting operational AmeriCorps participants serving in ap- matching requirements under the Cor- proved AmeriCorps positions receive? poration’s award; 2522.245 How are living allowances dis- (2) Specify that a fixed rate of five bursed? percent or less (not subject to sup- 2522.250 What other benefits do AmeriCorps participants serving in approved porting cost documentation) of total AmeriCorps positions receive? Corporation funds expended may be used to pay for administrative costs, Subpart C—Application Requirements provided that the fixed rate is in con- junction with an overall 15 percent ad- 2522.300 What are the application require- ministrative cost factor to be used for ments for AmeriCorps program grants? organizations that do not have estab- 2522.310 What are the application requirements for AmeriCorps educational lished indirect cost rates; or awards only? (3) Utilize such other method that 2522.320 [Reserved] the Corporation determines in writing 2522.330 [Reserved] is consistent with OMB guidance and 2522.340 How will I know if two projects are other applicable requirements, helps the same? minimize the burden on grantees or subgrantees, and is beneficial to grant- Subpart D—Selection of AmeriCorps ees or subgrantees and the Federal Programs Government. 2522.400 What process does the Corporation [70 FR 39598, July 8, 2005] use to select new grantees? 2522.410 What is the role of the Corpora- tion’s Board of Directors in the selection PART 2522—AMERICORPS PARTICI- process? PANTS, PROGRAMS, AND APPLI- 2522.415 How does the grant selection proc- CANTS ess work? 2522.420 What basic criteria does the Cor- Subpart A—Minimum Requirements and poration use in making funding decisions? Program Types 2522.425 [Reserved] Sec. 2522.430 [Reserved] 2522.10 What definitions apply to this part? 2522.435 [Reserved] 2522.100 What are the minimum require- 2522.440 What weight does the Corporation ments that AmeriCorps subtitle C grant- give to each category of the basic cri- ees must meet? teria? 2522.110 What types of programs are eligible 2522.445 Reserved. to compete for AmeriCorps grants? 2522.448 [Reserved] 2522.450 What types of programs or program Subpart B—Participant Eligibility, models may receive special consideration Requirements, and Benefits in the selection process? 2522.455 How do I find out about additional 2522.200 What are the eligibility require- priorities governing the selection proc- ments for an AmeriCorps participant? ess?

650

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00660 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.100

2522.460 To what extent may the Corpora- EVALUATING PROGRAMS: REQUIREMENTS AND tion or a State commission consider pri- PROCEDURES orities other than those stated in these 2522.700 How does evaluation differ from regulations or the Notice of Funding performance measurement? Availability? 2522.710 What are my evaluation require- 2522.465 What information must a State ments? commission submit on the relative 2522.720 How many years must my evalua- strengths of applicants for State com- tion cover? petitive funding? 2522.730 How and when do I submit my eval- 2522.470 What other factors or information uation to the Corporation? may the Corporation consider in making 2522.740 How will the Corporation use my final funding decisions? evaluation? 2522.475 To what extent must I use the Cor- 2522.800 How will the Corporation evaluate poration’s selection criteria and prior- individual AmeriCorps programs? ities when selecting formula programs or 2522.810 What will the Corporation do to operating sites? evaluate the overall success of the 2522.480 Can a State’s application for for- AmeriCorps programs? mula funds be rejected? 2522.820 Will information on individual par- 2522.485 How do I calculate my program’s ticipants be kept confidential? budgeted Corporation cost per member service year (MSY)? Subpart F—Program Management Requirements for Grantees Subpart E—Evaluation Requirements 2522.900 What definitions apply to this sub- 2522.500 What is the purpose of this subpart? part? 2522.510 To whom does this subpart apply? 2522.910 What basic qualifications must an 2522.520 What special terms are used in this AmeriCorps member have to serve as a subpart? tutor? 2522.530 May I use the Corporation’s pro- 2522.920 Are there any exceptions to the gram grant funds for performance meas- qualifications requirements? urement and evaluation? 2522.930 [Reserved] 2522.540 Do the costs of performance meas- 2522.940 What are the requirements for a urement or evaluation count towards the program in which AmeriCorps members serve as tutors? statutory cap on administrative costs? 2522.950 What requirements and qualifica- PERFORMANCE MEASURES: REQUIREMENTS AND tions apply if my program focuses on PROCEDURES supplemental academic support activities other than tutoring? 2522.550 What basic requirements must I follow in measuring performance under my AUTHORITY: 42 U.S.C. 12571–12595; 12651b– grant? 12651d; E.O. 13331, 69 FR 9911, Sec. 1612, Pub. L. 111–13. 2522.560 What are performance measures and performance measurement? SOURCE: 59 FR 13796, Mar. 23, 1994, unless 2522.570 What information on performance otherwise noted. measures must my grant application include? Subpart A—Minimum 2522.580 What performance measures am I required to submit to the Corporation? Requirements and Program Types 2522.590 Who develops my performance measures? § 2522.10 What definitions apply to this part? 2522.600 Who approves my performance measures? You. For this part, you refers to the 2522.610 What is the difference in perform- grantee, unless otherwise noted. ance measurements requirements for competitive and formula programs? [70 FR 39600, July 8, 2005] 2522.620 How do I report my performance § 2522.100 What are the minimum re- measures to the Corporation? quirements that every AmeriCorps 2522.630 What must I do if I am not able to program, regardless of type, must meet my performance measures? meet? 2522.640 Under what circumstances may I change my performance measures? Although a wide range of programs 2522.650 What happens if I fail to meet the may be eligible to apply for and receive performance measures included in my support from the Corporation, all grant? AmeriCorps subtitle C programs must

651

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00661 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.100 45 CFR Ch. XXV (10–1–11 Edition)

meet certain minimum program re- ethnicities, socioeconomic back- quirements. These requirements apply grounds, educational levels, and gen- regardless of whether a program is sup- ders as well as individuals with disabil- ported directly by the Corporation or ities unless a program design requires through a subgrant. All AmeriCorps emphasizing the recruitment of staff programs must: and participants who share a specific (a) Address educational, public safe- characteristic or background. In no ty, human, or environmental needs, case may a program violate the non- and provide a direct and demonstrable discrimination, nonduplication and benefit that is valued by the commu- nondisplacement rules governing par- nity in which the service is performed; ticipant selection described in part 2540 (b) Perform projects that are de- of this chapter. In addition, programs signed, implemented, and evaluated are encouraged to establish, if con- with extensive and broad-based local sistent with the purposes of the pro- input, including consultation with rep- gram, an intergenerational component resentatives from the community that combines students, out-of-school served, participants (or potential par- youths, and older adults as partici- ticipants) in the program, community- pants; based agencies with a demonstrated (g)(1) Determine the projects in record of experience in providing serv- which participants will serve and es- ices, and local labor organizations rep- tablish minimum qualifications that resenting employees of project spon- individuals must meet to be eligible to sors (if such entities exist in the area participate in the program; these quali- to be served by the program); fications may vary based on the spe- (c) Obtain, in the case of a program cific tasks to be performed by partici- that also proposes to serve as the project sponsor, the written concur- pants. Regardless of the educational rence of any local labor organization level or background of participants representing employees of the project sought, programs are encouraged to se- sponsor who are engaged in the same or lect individuals who posses leadership substantially similar work as that pro- potential and a commitment to the posed to be carried out by the goals of the AmeriCorps program. In AmeriCorps participant; any case, programs must select partici- (d) Establish and provide outcome ob- pants in a non-partisan, non-political, jectives, including a strategy for non-discriminatory manner, ensuring achieving these objectives, upon which fair access to participation. In addi- self-assessment and Corporation-as- tion, programs are required to ensure sessment of progress can rest. Such as- that they do not displace any existing sessment will be used to help deter- paid employees as provided in part 2540 mine the extent to which the program of this chapter; has had a positive impact: (1) On com- (2) In addition, all programs are re- munities and persons served by the quired to comply with any pre-service projects performed by the program; orientation or training period require- (2) On participants who take part in ments established by the Corporation the projects; and to assist in the selection of motivated (3) In such other areas as the pro- participants. Finally, all programs gram or Corporation may specify; must agree to select a percentage (to (e) Strengthen communities and en- be determined by the Corporation) of courage mutual respect and coopera- the participants for the program from tion among citizens of different races, among prospective participants re- ethnicities, socioeconomic back- cruited by the Corporation or State grounds, educational levels, both men Commissions under part 2533 of this and women and individuals with dis- chapter. The Corporation may also abilities; specify a minimum percentage of par- (f) Agree to seek actively to include ticipants to be selected from the na- participants and staff from the commu- tional leadership pool established nities in which projects are conducted, under § 2522.210(c). The Corporation and agree to seek program staff and may vary either percentage for dif- participants of different races and ferent types of AmeriCorps programs;

652

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00662 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.110

(h) Provide reasonable accommoda- service benefits to participants who tion, including auxiliary aids and serv- will not receive AmeriCorps edu- ices (as defined in section 3(1) of the cational awards, however AmeriCorps Americans with Disabilities Act of 1990 grant funds may not be used to provide (42 U.S.C. 12102(1)) based on the individ- such benefits; ualized need of a participant who is a (n) Agree to identify the program, qualified individual with a disability through the use of logos, common ap- (as defined in section 101(8) of such Act plication materials, and other means (42 U.S.C. 12111(8)). For the purpose of (to be specified by the Corporation), as complying with this provision, part of a larger national effort and to AmeriCorps programs may apply for participate in other activities such as additional financial assistance from common opening ceremonies (including the Corporation pursuant to § 2524.40 of the administration of a national oath this chapter; or affirmation), service days, and con- (i) Use service experiences to help ferences designed to promote a na- participants achieve the skills and edu- tional identity for all AmeriCorps pro- cation needed for productive, active grams and participants, including citizenship, including the provision, if those participants not receiving appropriate, of structured opportuni- AmeriCorps educational awards. This ties for participants to reflect on their provision does not preclude an service experiences. In addition, all AmeriCorps program from continuing programs must encourage every partic- to use its own name as the primary ipant who is eligible to vote to register identification, or from using its name, prior to completing a term of service; logo, or other identifying materials on (j) Provide participants in the pro- uniforms or other items; gram with the training, skills, and (o) Agree to begin terms of service at knowledge necessary to perform the such times as the Corporation may rea- tasks required in their respective sonably require and to comply with projects, including, if appropriate, spe- any restrictions the Corporation may cific training in a particular field and establish as to when the program may background information on the com- take to fill an approved AmeriCorps po- munity, including why the service sition left vacant due to attrition; projects are needed; (p) Comply with all evaluation proce- (k) Provide support services— dures specified by the Corporation, as (1) To participants who are com- explained in §§ 2522.500 through 2522.560; pleting a term of service and making (q) In the case of a program receiving the transition to other educational and funding directly from the Corporation, career opportunities; and meet and consult with the State Com- (2) To those participants who are mission for the State in which the pro- school dropouts in order to assist them gram operates, if possible, and submit in earning the equivalent of a high a copy of the program application to school diploma; the State Commission; and (l) Ensure that participants serving in approved AmeriCorps positions re- (r) Address any other requirements ceive the living allowance and other as specified by the Corporation. benefits described in §§ 2522.240 through [59 FR 13796, Mar. 23, 1994, as amended at 67 2522.250 of this chapter; FR 45360, July 9, 2002; 75 FR 51410, Aug. 20, (m) Describe the manner in which the 2010] AmeriCorps educational awards will be apportioned among individuals serving § 2522.110 What types of programs are in the program. If a program proposes eligible to compete for AmeriCorps to provide such benefits to less than 100 grants? percent of the participants in the pro- Types of programs eligible to com- gram, the program must provide a pete for AmeriCorps grants include the compelling rationale for determining following: (a) Specialized skills programs. which participants will receive the (1) A service program that is targeted benefits and which participants will to address specific educational, public not. AmeriCorps programs are strongly safety, human, or environmental needs encouraged to offer alternative post- and that—

653

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00663 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.110 45 CFR Ch. XXV (10–1–11 Edition)

(i) Recruits individuals with special (i) Involving food banks, food pan- skills or provides specialized pre-serv- tries, and nonprofit organizations that ice training to enable participants to provide food during emergencies; be placed individually or in teams in (ii) Involving the gleaning of pre- positions in which the participants can pared and unprepared food that would meet such needs; and otherwise be discarded as unusable so (ii) If consistent with the purposes of that the usable portion of such food the program, brings participants to- may be donated to food banks, food gether for additional training and pantries, and other nonprofit organiza- other activities designed to foster civic tions; responsibility, increase the skills of (iii) Seeking to address the long-term participants, and improve the quality causes of hunger through education of the service provided. and the delivery of appropriate serv- (2) A preprofessional training pro- ices; or gram in which students enrolled in an (iv) Providing training in basic institution of higher education— health, nutrition, and life skills nec- (i) Receive training in specified essary to alleviate hunger in commu- fields, which may include classes con- nities and rural areas. taining service-learning; (3) A program in which economically (ii) Perform service related to such disadvantaged individuals who are be- training outside the classroom during tween the ages of 16 and 24 years of age, the school term and during summer or inclusive, are provided with opportuni- other vacation periods; and ties to perform service that, while ena- (iii) Agree to provide service upon bling such individuals to obtain the graduation to meet educational, public education and employment skills nec- safety, human, or environmental needs essary to achieve economic self-suffi- related to such training. ciency, will help their communities (3) A professional corps program that meet— recruits and places qualified partici- (i) The housing needs of low-income pants in positions— families and the homeless; and (i) As teachers, nurses and other (ii) The need for community facilities health care providers, police officers, in low-income areas. early childhood development staff, en- (c) Community-development programs. gineers, or other professionals pro- (1) A community corps program that viding service to meet educational, meets educational, public safety, public safety, human, or environmental human, or environmental needs and needs in communities with an inad- promotes greater community unity equate number of such professionals; through the use of organized teams of (ii) That may include a salary in ex- participants of varied social and eco- cess of the maximum living allowance nomic backgrounds, skill levels, phys- authorized in § 2522.240(b)(2); and ical and developmental capabilities, (iii) That are sponsored by public or ages, ethnic backgrounds, or genders. private nonprofit employers who agree (2) A program that is administered by to pay 100 percent of the salaries and a combination of nonprofit organiza- benefits (other than any AmeriCorps tions located in a low-income area, educational award from the National provides a broad range of services to Service Trust) of the participants. residents of such an area, is governed (b) Specialized service programs. (1) A by a board composed in significant part community service program designed of low-income individuals, and is in- to meet the needs of rural commu- tended to provide opportunities for in- nities, using teams or individual place- dividuals or teams of individuals to en- ments to address the development gage in community projects in such an needs of rural communities and to area that meet unaddressed commu- combat rural poverty, including health nity and individual needs, including care, education, and job training. projects that would— (2) A program that seeks to eliminate (i) Meet the needs of low-income chil- hunger in communities and rural areas dren and youth aged 18 and younger, through service in projects— such as providing after-school ‘safe-

654

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00664 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.200

places’, including schools, with oppor- (1) Undertakes meaningful service tunities for learning and recreation; or projects with visible public benefits, (ii) Be directed to other important including natural resource, urban ren- unaddressed needs in such an area. ovation, or human services projects; (d) Programs that expand service pro- (2) Includes as participants youths gram capacity. (1) A program that pro- and young adults between the ages of vides specialized training to individ- 16 and 25, inclusive, including out-of- uals in service-learning and places the school youths and other disadvantaged individuals after such training in posi- youths (such as youths with limited tions, including positions as service- basic skills, youths in foster care who learning coordinators, to facilitate are becoming too old for foster care, service-learning in programs eligible youths of limited English proficiency, for funding under Serve-America. homeless youths, and youths who are (2) An AmeriCorps entrepreneur pro- individuals with disabilities) who are gram that identifies, recruits, and between those ages; and trains gifted young adults of all back- (3) Provides those participants who are youths and young adults with— grounds and assists them in designing (i) Crew-based, highly structured, and solutions to community problems. adult-supervised work experience, life (e) Campus-based programs. A campus- skills, education, career guidance and based program that is designed to pro- counseling, employment training, and vide substantial service in a commu- support services; and nity during the school term and during (ii) The opportunity to develop citi- summer or other vacation periods zenship values and skills through serv- through the use of— ice to their community and the United (1) Students who are attending an in- States. stitution of higher education, including (h) Individualized placement programs. students participating in a work-study An individualized placement program program assisted under part C of title that includes regular group activities, IV of the Higher Education Act of 1965 such as leadership training and special (42 U.S.C. 2751 et seq.); service projects. (2) Teams composed of such students; (i) Other programs. Such other or AmeriCorps programs addressing edu- (3) Teams composed of a combination cational, public safety, human, or envi- of such students and community resi- ronmental needs as the Corporation dents. may designate in the application. (f) Intergenerational programs. An intergenerational program that combines Subpart B—Participant Eligibility, students, out-of-school youths, and Requirements, and Benefits older adults as participants to provide needed community services, including § 2522.200 What are the eligibility re- an intergenerational component for quirements for an AmeriCorps par- other AmeriCorps programs described ticipant? in this subsection. (a) Eligibility. An AmeriCorps partici- (g) Youth development programs. A pant must— full-time, year-round youth corps pro- (1)(i) Be at least 17 years of age at the gram or full-time summer youth corps commencement of service; or program, such as a conservation corps (ii) Be an out-of-school youth 16 or youth service corps (including youth years of age at the commencement of corps programs under subtitle I, the service participating in a program de- Public Lands Corps established under scribed in § 2522.110(b)(3) or (g); the Public Lands Corps Act of 1993, the (2)(i) Have a high school diploma or Urban Youth Corps established under its equivalent; or section 106 of the National and Commu- (ii) Not have dropped out of elemen- nity Service Trust Act of 1993, and tary or secondary school to enroll as other conservation corps or youth serv- an AmeriCorps participant and must ice corps that perform service on Fed- agree to obtain a high school diploma eral or other public lands or on Indian or its equivalent prior to using the edu- lands or Hawaiian home lands), that: cation award; or

655

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00665 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.205 45 CFR Ch. XXV (10–1–11 Edition)

(iii) Obtain a waiver from the Cor- (1) Permanent Resident Card, INS poration of the requirements in para- Form I–551; graphs (a)(2)(i) and (a)(2)(ii) of this sec- (2) Alien Registration Receipt Card, tion based on an independent evalua- INS Form I–551; tion secured by the program dem- (3) A passport indicating that the onstrating that the individual is not INS has approved it as temporary evi- capable of obtaining a high school di- dence of lawful admission for perma- ploma or its equivalent; or nent residence; or (iv) Be enrolled in an institution of (4) A Departure Record (INS Form I– higher education on an ability to ben- 94) indicating that the INS has ap- efit basis and be considered eligible for proved it as temporary evidence of law- funds under section 484 of the Higher ful admission for permanent residence. Education Act of 1965 (20 U.S.C. 1091); (3) Be a citizen, national, or lawful (e) Secondary documentation of citizen- permanent resident alien of the United ship or immigration status. If primary States. documentation is not available, the (b) Written declaration regarding high program must obtain written approval school diploma sufficient for enrollment. from the Corporation that other docu- For purposes of enrollment, if an indi- mentation is sufficient to demonstrate vidual provides a written declaration the individual’s status as a U.S. cit- under penalty of law that he or she izen, U.S. national, or lawful perma- meets the requirements in paragraph nent resident alien. (a) of this section relating to high [64 FR 37413, July 12, 1999, as amended at 67 school education, a program need not FR 45360, July 9, 2002] obtain additional documentation of that fact. § 2522.205 To whom must I apply suit- (c) Primary documentation of status as ability criteria relating to criminal a U.S. citizen or national. The following history? are acceptable forms of certifying sta- You must apply suitability criteria tus as a U.S. citizen or national: relating to criminal history to a par- (1) A birth certificate showing that ticipant or staff position for which an the individual was born in one of the 50 individual receives a Corporation states, the District of Columbia, Puer- grant-funded living allowance, stipend, to Rico, Guam, the U.S. Virgin Islands, education award, salary, or other re- American Samoa, or the Northern Mar- muneration. iana Islands; (2) A United States passport; [72 FR 48582, Aug. 24, 2007, as amended at 74 (3) A report of birth abroad of a U.S. FR 46506, Sept. 10, 2009] Citizen (FS–240) issued by the State De- partment; § 2522.206 What suitability criteria (4) A certificate of birth-foreign serv- must I apply to a covered position? ice (FS 545) issued by the State Depart- An individual is ineligible to serve in ment; a covered position if the individual: (5) A certification of report of birth (a) Is registered, or required to be (DS–1350) issued by the State Depart- registered, on a State sex offender reg- ment; istry or the National Sex Offender Reg- (6) A certificate of naturalization istry; or (Form N–550 or N–570) issued by the Im- (b) Has been convicted of murder, as migration and Naturalization Service; defined in section 1111 of title 18, or United States Code. (7) A certificate of citizenship (Form N–560 or N–561) issued by the Immigra- [74 FR 46506, Sept. 10, 2009] tion and Naturalization Service. (d) Primary documentation of status as § 2522.207 What are the procedures I a lawful permanent resident alien of the must follow to determine an indi- United States. The following are accept- vidual’s suitability to serve in a cov- able forms of certifying status as a ered position? lawful permanent resident alien of the In determining an individual’s suit- United States: ability to serve in a covered position,

656

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00666 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.220

you must follow the procedures in part enhance their leadership ability. The 2540 of this title. leadership training will be provided by the Corporation directly or through a [72 FR 48582, Aug. 24, 2007] grant, contract, or cooperative agree- § 2522.210 How are AmeriCorps par- ment as the Corporation determines. ticipants recruited and selected? (2) Emphasis on certain individuals. In (a) Local recruitment and selection. In selecting individuals to receive leader- general, AmeriCorps participants will ship training under this provision, the be selected locally by an approved Corporation will make special efforts AmeriCorps program, and the selection to select individuals who have served— criteria will vary widely among the dif- (i) In the Peace Corps; ferent programs. Nevertheless, (ii) As VISTA volunteers; AmeriCorps programs must select their (iii) As participants in AmeriCorps participants in a fair and non-discrimi- programs receiving assistance under natory manner which complies with parts 2520 through 2524 of this chapter; part 2540 of this chapter. In selecting (iv) As participants in National Serv- participants, programs must also com- ice Demonstration programs that reply with the recruitment and selection ceived assistance from the Commission requirements specified in this section. on National and Community Service; (b)(1) National and State recruitment or and selection. The Corporation and each (v) As members of the Armed Forces State Commission will establish a sys- of the United States and who were hon- tem to recruit individuals who desire orably discharged from such service. to perform national service and to as- (3) Assignment. At the request of a sist the placement of these individuals program that receives assistance, the in approved AmeriCorps positions, Corporation may assign an individual which may include positions available who receives leadership training under under titles I and II of the Domestic paragraph (c)(1) of this section to work Volunteer Service Act of 1973 (42 U.S.C. with the program in a leadership posi- 4951 et seq.). The national and state re- tion and carry out assignments not cruitment and placement system will otherwise performed by regular partici- be designed and operated according to pants. An individual assigned to a pro- Corporation guidelines. gram will be considered to be a partici- (2) Dissemination of information. The pant of the program. Corporation and State Commissions will disseminate information regarding § 2522.220 What are the required terms available approved AmeriCorps posi- of service for AmeriCorps partici- tions through cooperation with sec- pants? ondary schools, institutions of higher (a) Term of Service. A term of service education, employment service offices, may be defined as: community-based organizations, State (1) Full-time service. 1,700 hours of vocational rehabilitation agencies service during a period of not more within the meaning of the Rehabilita- than one year. tion Act of 1973 (29 U.S.C. 701 et seq.) (2) Part-time service. 900 hours of serv- and other State agencies that pri- ice during a period of not more than marily serve qualified individuals with two years. disabilities, and other appropriate enti- (3) Reduced part-time term of service. ties, particularly those organizations The Corporation may reduce the num- that provide outreach to disadvantaged ber of hours required to be served in youths and youths who are qualified order to receive an educational award individuals with disabilities. for certain part-time participants serv- (c) National leadership pool—(1) Selec- ing in approved AmeriCorps positions. tion and training. From among individ- In such cases, the educational award uals recruited under paragraph (b) of will be reduced in direct proportion to this section or nominated by service the reduction in required hours of serv- programs, the Corporation may select ice. These reductions may be made for individuals with significant leadership summer programs, for categories of potential, as determined by the Cor- participants in certain approved poration, to receive special training to AmeriCorps programs and on a case-by-

657

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00667 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.230 45 CFR Ch. XXV (10–1–11 Edition)

case, individual basis as determined by ice early, whether the participant the Corporation. made a satisfactory effort to complete (4) Summer programs. A summer pro- those assignments, tasks, or projects gram, in which less than 1700 hours of that the participant could reasonably service are performed, are part-time have addressed in the time the partici- programs. pant served; and (b) Eligibility for subsequent term. A (ii) Has met any other criteria which participant will only be eligible to had been clearly communicated both serve a subsequent term of service if orally and in writing at the beginning that individual has received a satisfac- of the term of service. tory performance review for any pre- (d) Limitation. The Corporation may vious term of service in an approved set a minimum or maximum percent- AmeriCorps position, in accordance age of hours of a full-time, part-time, with the requirements of paragraph (d) or reduced term of service described in of this section and § 2526.15. Mere eligi- paragraphs (a)(1),(a)(2), and (a)(3) of bility for a second or further term of this section that a participant may en- service in no way guarantees a partici- gage in training, education, or other pant selection or placement. similar approved activities (c) Participant evaluation. For the (e) Grievance procedure. Any purposes of determining a participant’s AmeriCorps participant wishing to con- eligibility for an educational award as test a program’s ruling of unsatisfac- described in § 2522.240(a) and eligibility tory performance may file a grievance to serve a second or additional term of according to the procedures set forth in service as described in paragraph (c) of part 2540 of this chapter. If that griev- this section, each AmeriCorps grantee ance procedure or subsequent binding is responsible for conducting a mid- arbitration procedure finds that the term and end-of-term evaluation. A participant did in fact satisfactorily mid-term evaluation is not required for complete a term of service, then that a participant who is released early individual will be eligible to receive an from a term of service or in other cir- educational award and/or be eligible to cumstances as approved by the Cor- serve a second term of service. poration. The end-of-term evaluation (f) Extension of term for disaster pur- should consist of: poses. If approved by the Corporation, a (1) A determination of whether the program may permit an AmeriCorps participant: participant performing service directly (i) Successfully completed the re- related to disaster relief efforts to con- quired term of service described in tinue in a term of service for a period paragraph (a) of this section, making of up to 90 days beyond the period oth- the participant eligible for an edu- erwise specified. A period of service cational award as described in performed by an AmeriCorps partici- § 2522.240(a); pant in an originally agreed-upon term (ii) Was released from service for of service and service performed under compelling personal circumstances, this paragraph shall constitute a single making the participant eligible for a term of service for the purposes of pro-rated educational award as de- § 2526.50(a) of this chapter. scribed in § 2522.230(a)(2); or (iii) Was released from service for [59 FR 13796, Mar. 23, 1994, as amended at 73 FR 53759, Sept. 17, 2008; 74 FR 46506, Sept. 10, cause, making the participant ineli- 2009; 75 FR 51410, Aug. 20, 2010] gible to receive an educational award for that term of service as described in § 2522.230 Under what circumstances § 2522.230(b)(3); and may an AmeriCorps participant be (2) A participant performance and released from completing a term of conduct review to determine whether service, and what are the con- the participant’s service was satisfac- sequences? tory, which will assess whether the An AmeriCorps program may release participant: a participant from completing a term (i) Has satisfactorily completed as- of service for compelling personal cir- signments, tasks, or projects, or, for cumstances, as determined by the pro- those participants released from serv- gram, or for cause.

658

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00668 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.230

(a) Release for compelling personal cir- (ii) To obtain employment, other cumstances. than in moving from welfare to work (1) An AmeriCorps program may re- or in leaving a program that includes lease a participant upon a determina- in its approved objectives the pro- tion by the program, consistent with motion of employment among its par- the criteria listed in paragraphs (a)(6) ticipants; or and (a)(7) of this section, that the par- (iii) Because of dissatisfaction with ticipant is unable to complete the term the program. of service because of compelling per- (6) As an alternative to releasing a sonal circumstances, if the participant participant, an AmeriCorps*State/Na- has otherwise performed satisfactorily tional program may, after determining and has completed at least fifteen per- that compelling personal cir- cent of the agreed term of service. cumstances exist, suspend the partici- (2) A participant who is released for pant’s term of service for up to two compelling personal circumstances and years (or longer if approved by the Cor- who completes at least 15 percent of poration based on extenuating cir- the required term of service is eligible cumstances) to allow the participant to for a pro-rated education award. complete service with the same or (3) The program must document the similar AmeriCorps program at a later basis for any determination that com- time. pelling personal circumstances prevent (b) Release for cause. (1) A release for a participant from completing a term cause encompasses any circumstances of service. other than compelling personal cir- (4) Compelling personal circumstances that warrant an individ- cumstances include: ual’s release from completing a term of (i) Those that are beyond the partici- service. pant’s control, such as, but not limited (2) AmeriCorps programs must re- to: lease for cause any participant who is (A) A participant’s disability or seri- convicted of a felony or the sale or dis- ous illness; tribution of a controlled substance dur- (B) Disability, serious illness, or ing a term of service. death of a participant’s family member (3) A participant who is released for if this makes completing a term unrea- cause may not receive any portion of sonably difficult or impossible; or the AmeriCorps education award or (C) Conditions attributable to the any other payment from the National program or otherwise unforeseeable Service Trust. and beyond the participant’s control, (4) An individual who is released for such as a natural disaster, a strike, re- cause must disclose that fact in any location of a spouse, or the nonrenewal subsequent applications to participate or premature closing of a project or in an AmeriCorps program. Failure to program, that make completing a term do so disqualifies the individual for an unreasonably difficult or impossible; education award, regardless of whether (ii) Those that the Corporation, has the individual completes a term of for public policy reasons, determined service. as such, including: (5) An AmeriCorps*State/National (A) Military service obligations; participant released for cause may con- (B) Acceptance by a participant of an test the program’s decision by filing a opportunity to make the transition grievance. Pending the resolution of a from welfare to work; or grievance procedure filed by an indi- (C) Acceptance of an employment op- vidual to contest a determination by a portunity by a participant serving in a program to release the individual for program that includes in its approved cause, the individual’s service is con- objectives the promotion of employ- sidered to be suspended. For this type ment among its participants. of grievance, a program may not— (5) Compelling personal cir- while the grievance is pending or as cumstances do not include leaving a part of its resolution—provide a partic- program: ipant with federally-funded benefits (i) To enroll in school; (including payments from the National

659

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00669 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.235 45 CFR Ch. XXV (10–1–11 Edition)

Service Trust) beyond those attrib- of a term of service, the term will not utable to service actually performed, be considered one of the terms of serv- without the program receiving written ice described in § 2522.220(b) for which approval from the Corporation. an individual may receive the benefits (6) An individual’s eligibility for a described in §§ 2522.240 through 2522.250. subsequent term of service in AmeriCorps will not be affected by re- [64 FR 37413, July 12, 1999, as amended at 73 FR 53759, Sept. 17, 2008; 74 FR 46506, Sept. 10, lease for cause from a prior term of 2009; 75 FR 51410, Aug. 20, 2010] service so long as the individual received a satisfactory end-of-term per- § 2522.235 Is there a limit on the num- formance review as described in ber of terms an individual may § 2522.220(c)(2) for the period served in serve in an AmeriCorps State and the prior term. National program? (7) Except as provided in paragraph (a) General limitation. An individual (e) of this section, a term of service may receive the benefits described in from which an individual is released § 2522.240 through § 2522.250 for no more for cause counts as one of the terms of than four terms of service in an service described in § 2522.235 for which AmeriCorps State and National pro- an individual may receive the benefits gram, regardless of whether those described in §§ 2522.240 through 2522.250. terms were served on a full-, part-, or (c) Suspended service. (1) A program reduced part-time basis, consistent must suspend the service of an indi- with the limitations in § 2526.50. vidual who faces an official charge of a (b) Early release. Except as provided violent felony (e.g., rape, homicide) or in paragraph (c) of this section, a term sale or distribution of a controlled sub- of service from which an individual is stance. released for compelling personal cir- (2) A program must suspend the serv- cumstances or for cause counts as one ice of an individual who is convicted of of the terms of service for which an in- possession of a controlled substance. dividual may receive the benefits de- (3) An individual may not receive a scribed in § 2522.240 through § 2522.250. living allowance or other benefits, and (c) Release prior to serving fifteen per- may not accrue service hours, during a cent of a term. If a person is released for period of suspension under this provi- reasons other than misconduct prior to sion. completing fifteen percent of a term of (d) (1) A program may Reinstatement. service, the term will not be considered reinstate an individual whose service one of the terms of service for which an was suspended under paragraph (c)(1) of individual may receive the benefits de- this section if the individual is found scribed in §§ 2522.240 through 2522.250. not guilty or if the charge is dismissed. (2) A program may reinstate an indi- [75 FR 51410, Aug. 20, 2010] vidual whose service was suspended under paragraph (c)(2) of this section § 2522.240 What financial benefits do only if the individual demonstrates the AmeriCorps participants serving in following: approved AmeriCorps positions re- (i) For an individual who has been ceive? convicted of a first offense of the pos- (a) AmeriCorps education awards. An session of a controlled substance, the individual serving in an approved individual must have enrolled in a drug AmeriCorps State and National posi- rehabilitation program; tion may receive an education award (ii) For an individual who has been from the National Service Trust upon convicted for more than one offense of successful completion of each of no the possession of a controlled sub- more than four terms of service as de- stance, the individual must have suc- fined in § 2522.220, consistent with the cessfully completed a drug rehabilita- limitations in § 2526.50. tion program. (b) Living allowances—(1)Amount. Sub- (e) Release prior to serving 15 percent of ject to the provisions of this part, any a term of service. If a participant is re- individual who participates on a full- leased for reasons other than mis- time basis in an AmeriCorps program conduct prior to completing 15 percent carried out using assistance provided

660

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00670 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.240

pursuant to § 2521.30 of this chapter, in- ing (including food, housing, and trans- cluding an AmeriCorps program that portation) in the area in which the pro- receives educational awards only pur- gram is located. suant to § 2521.30(c) of this chapter, will (5) Waiver or reduction of living allow- receive a living allowance in an ance by participants. A participant may amount equal to or greater than the waive all or part of the receipt of a liv- average annual subsistence allowance ing allowance. The participant may re- provided to VISTA volunteers under voke this waiver at any time during § 105 of the Domestic Volunteer Service the participant’s term of service. If the Act of 1973 (42 U.S.C. 4955). This re- participant revokes the living allow- quirement will not apply to any pro- ance waiver, the participant may begin gram that was in existence prior to receiving his or her living allowance September 21, 1993 (the date of the en- actment of the National and Commu- prospective from the date of the rev- nity Service Trust Act of 1993). ocation; a participant may not receive (2) Maximum living allowance. With any portion of the living allowance the exception of a professional corps that may have accrued during the described in § 2522.110(a)(3), the waiver period. AmeriCorps living allowances may not (6) Limitation on Federal share. The exceed 200 percent of the average an- Federal share, including Corporation nual subsistence allowance provided to and other Federal funds, of the total VISTA volunteers under section 105 of amount provided to an AmeriCorps the Domestic Volunteer Service Act of participant for a living allowance is 1973 (42 U.S.C. 4955). A professional limited as follows: corps AmeriCorps program may pro- (i) In no case may the Federal share vide a stipend in excess of the max- exceed 85% of the minimum required imum, subject to the following condi- living allowance enumerated in para- tions: (i) Corporation assistance may graph (b)(1) of this section. not be used to pay for any portion of (ii) For professional corps described the allowance; and in paragraph (b)(2)(i) of this section, (ii) The program must be operated di- Corporation and other Federal funds rectly by the applicant, selected on a may be used to pay for no portion of competitive basis by submitting an ap- the living allowance. plication to the Corporation, and may not be included in a State’s application (iii) If the minimum living allowance for AmeriCorps program funds distrib- requirements has been waived or re- uted by formula under § 2521.30(a)(2) of duced pursuant to paragraph (b)(4) of this chapter. this section and the amount of the liv- (3) Living allowances for part-time paring allowance provided to a participant ticipants. Programs may, but are not has been reduced correspondingly— required to, provide living allowances (A) In general, the Federal share may to individuals participating on a part- not exceed 85% of the reduced living al- time basis (or a reduced term of part- lowance; however, time service authorized under (B) If a participant is serving in a § 2522.220(a)(3). Such living allowances program that provides room or board, should be prorated to the living allow- the Corporation will consider on a ance authorized in paragraph (b)(1) of case-by-case basis allowing the portion this section and will comply with such of that living allowance that may be restrictions therein. paid using Corporation and other Fed- (4) Waiver or reduction of living allow- eral funds to be between 85% and 100%. ance for programs. The Corporation (c) Financial benefits for participants may, at its discretion, waive or reduce during an extended term of service for dis- the living allowance requirements if a program can demonstrate to the satis- aster purposes. An AmeriCorps partici- faction of the Corporation that such re- pant performing extended service under quirements are inconsistent with the § 2522.220(f) may continue to receive a objectives of the program, and that living allowance under paragraph (b) participants will be able to meet the and other benefits under § 2522.250, but necessary and reasonable costs of liv- may not receive an additional

661

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00671 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.245 45 CFR Ch. XXV (10–1–11 Edition)

AmeriCorps educational award under (iv) Certifies that he or she needs paragraph (a). child care in order to participate in the program. [59 FR 13796, Mar. 23, 1994, as amended at 71 FR 10611, Mar. 2, 2006; 73 FR 53760, Sept. 17, (2) Provider eligibility. Eligible child 2008; 74 FR 46506, Sept. 10, 2009; 75 FR 51410, care providers are those who are eligi- Aug. 20, 2010] ble child care providers as defined in the Child Care and Development Block § 2522.245 How are living allowances Grant Act of 1990 (42 U.S.C. 9858n(5)). disbursed? (3) Child care allowance. The amount A living allowance is not a wage and of the child-care allowance may not ex- programs may not pay living allow- ceed the applicable payment rate to an ances on an hourly basis. Programs eligible provider established by the must distribute the living allowance at State for child care funded under the regular intervals and in regular incre- Child Care and Development Block ments, and may increase living allow- Grant Act of 1990 (42 U.S.C. 9858c(4)(A)). ance payments only on the basis of in- (4) Corporation share. The Corporation creased living expenses such as food, will pay 100 percent of the child care housing, or transportation. Living al- allowance, or, if the program provides lowance payments may only be made child care through an eligible provider, to a participant during the partici- the actual cost of the care or the pant’s term of service and must cease amount of the allowance, whichever is when the participant concludes the less. term of service. Programs may not pro- (b) Health care. (1) Grantees must provide a lump sum payment to a partici- vide to all eligible participants who pant who completes the originally meet the requirements of paragraph agreed-upon term of service in a short- (b)(2) of this section health care cover period of time. erage that— (i) Provides the minimum benefits [73 FR 53760, Sept. 17, 2008] determined by the Corporation; (ii) Provides the alternative min- § 2522.250 What other benefits do imum benefits determined by the Cor- AmeriCorps participants serving in approved AmeriCorps positions re- poration; or ceive? (iii) Does not provide all of either the minimum or the alternative minimum (a) Child Care. Grantees must provide benefits but that has a fair market child care through an eligible provider value equal to or greater than the fair or a child care allowance in an amount market value of a policy that provides determined by the Corporation to those the minimum benefits. full-time participants who need child (2) Participant eligibility. A full-time care in order to participate. participant is eligible for health care (1) Need. A participant is considered benefits if he or she is not otherwise to need child care in order to partici- covered by a health benefits package pate in the program if he or she: providing minimum benefits estab- (i) Is the parent or legal guardian of, lished by the Corporation at the time or is acting in loco parentis for, a child he or she is accepted into a program. If, under 13 who resides with the partici- as a result of participation, or if, dur- pant; ing the term of service, a participant (ii) Has a family income that does demonstrates loss of coverage through not exceed 75 percent of the State’s me- no deliberate act of his or her own, dian income for a family of the same such as parental or spousal job loss or size; disqualification from Medicaid, the (iii) At the time of acceptance into participant will be eligible for health the program, is not currently receiving care benefits. child care assistance from another (3) Corporation share. (i) Except as source, including a parent or guardian, provided in paragraph (b)(3)(ii) of this which would continue to be provided section, the Corporation’s share of the while the participant serves in the pro- cost of health coverage may not exceed gram; and 85 percent.

662

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00672 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.415

(ii) The Corporation will pay no share § 2522.320 [Reserved] of the cost of a policy that does not provide the minimum or alternative § 2522.330 [Reserved] minimum benefits described in paragraphs (b)(1)(i) and (b)(1)(ii) of this sec- § 2522.340 How will I know if two tion. projects are the same? The Corporation will consider two [59 FR 13796, Mar. 23, 1994, as amended at 70 projects to be the same if the Corpora- FR 39600, July 8, 2005] tion cannot identify a meaningful difference between the two projects based Subpart C—Application on a comparison of the following char- Requirements acteristics, among others: (a) The objectives and priorities of § 2522.300 What are the application re- the projects; quirements for AmeriCorps pro- (b) The nature of the services program grants? vided; All eligible applicants seeking (c) The program staff, participants, AmeriCorps program grants must— and volunteers involved; (a) Provide a description of the spe- (d) The geographic locations in which cific program(s) being proposed, includ- the services are provided; ing the type of program and of how it (e) The populations served; and meets the minimum program require- (f) The proposed community partner- ments described in § 2522.100; and ships. (b) Comply with any additional re- [73 FR 53760, Sept. 17, 2008] quirements as specified by the Corpora- tion in the application package. Subpart D—Selection of § 2522.310 What are the application re- AmeriCorps Programs quirements for AmeriCorps educational awards only? § 2522.400 What process does the Cor- poration use to select new grant- (a) Eligible applicants may apply for ees? AmeriCorps educational awards only The Corporation uses a multi-stage for one of the following eligible service process, which may include review by positions: (1) A position for a partici- panels of experts, Corporation staff re- pant in an AmeriCorps program that: view, and approval by the Chief Execu- (i) Is carried out by an entity eligible tive Officer or the Board of Directors, to receive support under part 2521 of or their designee. this chapter; (ii) Would be eligible to receive as- [70 FR 39600, July 8, 2005] sistance under this part, based on criteria established by the Corporation, § 2522.410 What is the role of the Cor- but has not applied for such assistance; poration’s Board of Directors in the selection process? (2) A position facilitating service- learning in a program described in The Board of Directors has general parts 2515 through 2519 of this chapter; authority to determine the selection (3) A position involving service as a process, including priorities and selec- crew leader in a youth corps program tion criteria, and has authority to or a similar position supporting an make grant decisions. The Board may AmeriCorps program; and delegate these functions to the Chief (4) Such other AmeriCorps positions Executive Officer. as the Corporation considers to be ap- [70 FR 39600, July 8, 2005] propriate. (b) Because programs applying only § 2522.415 How does the grant selec- for AmeriCorps educational awards tion process work? must, by definition, meet the same The selection process includes: basic requirements as other approved (a) Determining whether your pro- AmeriCorps programs, applicants must posal complies with the application re- comply with the same application requirements, such as deadlines and eli- quirements specified in § 2522.300. gibility requirements;

663

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00673 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.420 45 CFR Ch. XXV (10–1–11 Edition)

(b) Applying the basic selection cri- proposals that address one or more of teria to assess the quality of your pro- the following priorities: posal; (a) Program models: (1) Programs oper- (c) Applying any applicable priorities ated by community organizations, in- or preferences, as stated in these regu- cluding faith-based organizations, or lations and in the applicable Notice of programs that support the efforts of Funding Availability; and community organizations, including (d) Ensuring innovation and geo- faith-based organizations, to solve graphic, demographic, and pro- local problems; grammatic diversity across the Cor- (2) Lower-cost professional corps pro- poration’s national AmeriCorps port- grams, as defined in paragraph (a)(3) of folio. § 2522.110 of this chapter. (b) Program activities: (1) Programs [70 FR 39600, July 8, 2005] that serve or involve children and § 2522.420 What basic criteria does the youth, including mentoring of dis- Corporation use in making funding advantaged youth and children of pris- decisions? oners; (2) Programs that address edu- In evaluating your application for cational needs, including those that funding, the Corporation will assess: carry out literacy and tutoring activi- (a) Your program design; ties generally, and those that focus on (b) Your organizational capability; reading for children in the third grade and or younger; (c) Your program’s cost-effectiveness (3) Programs that focus on homeland and budget adequacy. security activities that support and [70 FR 39600, July 8, 2005] promote public safety, public health, and preparedness for any emergency, § 2522.425 [Reserved] natural or man-made (this includes programs that help to plan, equip, § 2522.430 [Reserved] train, and practice the response capabilities of many different response § 2522.435 [Reserved] units ready to mobilize without warn- § 2522.440 What weight does the Cor- ing for any emergency); poration give to each category of (4) Programs that address issues re- the basic criteria? lating to the environment; (5) Programs that support inde- In evaluating applications, the Cor- pendent living for seniors or individ- poration assigns the following weights uals with disabilities; for each category: (6) Programs that increase service Category Percentage and service-learning on higher education campuses in partnership with Program design ...... 50 their surrounding communities; Organizational capability ...... 25 Cost-effectiveness and budget adequacy ...... 25 (7) Programs that foster opportunities for Americans born in the post- World War II baby boom to serve and [70 FR 39600, July 8, 2005] volunteer in their communities; and § 2522.445 [Reserved] (8) Programs that involve community-development by finding and using § 2522.448 [Reserved] local resources, and the capacities, skills, and assets of lower-income peo- § 2522.450 What types of programs or ple and their community, to rejuvenate program models may receive spe- their local economy, strengthen public cial consideration in the selection and private investments in the commu- process? nity, and help rebuild civil society. Following the scoring of proposals (c) Programs supporting distressed com- under § 2522.440 of this part, the Cor- munities: Programs or projects that will poration will seek to ensure that its be conducted in: portfolio of approved programs in- (1) A community designated as an cludes a meaningful representation of empowerment zone or redevelopment

664

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00674 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.470

area, targeted for special economic in- ities, and why the program meets one centives, or otherwise identifiable as of the State’s priorities. having high concentrations of low-in- (b) A State may apply priorities dif- come people; ferent than those of the Corporation in (2) An area that is environmentally selecting its formula programs. distressed, as demonstrated by Federal [70 FR 39600, July 8, 2005] and State data; (3) An area adversely affected by Fed- § 2522.465 What information must a eral actions related to managing Fed- State commission submit on the rel- eral lands that result in significant re- ative strengths of applicants for gional job losses and economic disloca- State competitive funding? tion; (a) If you are a State commission ap- (4) An area adversely affected by replying for State competitive funding, ductions in defense spending or the clo- you must prioritize the proposals you sure or realignment of military instal- submit in rank order based on their lation; relative quality and according to the (5) An area that has an unemploy- following table: ment rate greater than the national average unemployment for the most re- If you submit this Then you must rank number of state competitive this number of cent 12 months for which State or Fed- proposals proposals eral data are available; to the corporation (6) A rural community, as dem- 1 to 12 ...... At least top 5. onstrated by Federal and State data; or 13 to 24 ...... At least top 10. (7) A severely economically dis- 25 or more ...... At least top 15. tressed community, as demonstrated (b) While the rankings you provide by Federal and State data. will not be determinative in the grant (d) Other programs: Programs that selection process, and the Corporation meet any additional priorities as the will not be bound by them, we will con- Corporation determines and dissemi- sider them in our selection process. nates in advance of the selection process. [70 FR 39600, July 8, 2005] [70 FR 39600, July 8, 2005] § 2522.470 What other factors or information may the Corporation con- § 2522.455 How do I find out about ad- sider in making final funding deci- ditional priorities governing the se- sions? lection process? (a) The Corporation will seek to en- The Corporation posts discretionary sure that our portfolio of AmeriCorps funding opportunities addressing the programs is programmatically, demo- Corporation’s selection preferences and graphically, and geographically diverse additional requirements on our website and includes innovative programs, and at www.nationalservice.gov and at projects in rural, high poverty, and www.grants.gov in advance of grant economically distressed areas. competitions (b) In applying the selection criteria [70 FR 39600, July 8, 2005] under §§ 2522.420 through 2522.435, the Corporation may, with respect to a § 2522.460 To what extent may the Cor- particular proposal, also consider one poration or a State commission con- or more of the following for purposes of sider priorities other than those clarifying or verifying information in a stated in these regulations or the proposal, including conducting due Notice of Funding Availability? diligence to ensure an applicant’s abil- (a) The Corporation may give special ity to manage Federal funds: consideration to a national service pro- (1) For an applicant that has pre- gram submitted by a State commission viously received a Corporation grant, that does not meet one of the Corpora- any information or records the appli- tion’s priorities if the State commis- cant submitted to the Corporation, or sion adequately explains why the State that the Corporation has in its system is not able to carry out a program that of records, in connection with its pre- meets one of the Corporation’s prior- vious grant (e.g. progress reports, site

665

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00675 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.475 45 CFR Ch. XXV (10–1–11 Edition)

visit reports, financial status reports, (a) The quality of the national serv- audits, HHS Account Payment Data ice program proposed to be carried out Reports, Federal Cash Transaction Re- directly by the applicant or supported ports, timeliness of past reporting, by a grant from the applicant. etc.); (b) The innovative aspects of the na- (2) Program evaluations; tional service program, and the feasi- (3) Member-related information from bility of replicating the program. the Corporation’s systems; (c) The sustainability of the national (4) Other Corporation internal infor- service program. mation, including information from (d) The quality of the leadership of the Office of Inspector General, admin- the national service program, the past istrative standards for State commis- performance of the program, and the sions, and reports on program training extent to which the program builds on and technical assistance; existing programs. (5) IRS Tax Form 990; (e) The extent to which participants (6) An applicant organization’s an- of the national service program are re- nual report; cruited from among residents of the (7) Information relating to the appli- communities in which projects are to cant’s financial management from Cor- be conducted, and the extent to which poration records; participants and community residents (8) Member satisfaction indicators; are involved in the design, leadership, (9) Publicly available information in- and operation of the program. cluding: (f) The extent to which projects (i) Socio-economic and demographic would be conducted in one of the areas data, such as poverty rate, unemploy- listed in § 2522.450(c)(1) through (5) of ment rate, labor force participation, this subpart. and median household income; (g) In the case of applicants other (ii) Information on where an appli- than States, the extent to which the cant and its activities fall on the U.S. application is consistent with the ap- Department of Agriculture’s urban- plication of the State in which the rural continuum (Beale codes); projects would be conducted. (iii) Information on the nonprofit and (h) Such other criteria as the Cor- philanthropic community, such as poration considers to be appropriate, charitable giving per capita; following appropriate notice. (iv) Information from an applicant [70 FR 39600, July 8, 2005] organization’s website; and (v) U.S. Department of Education § 2522.480 Can a State’s application for data on Federal Work Study and Com- formula funds be rejected? munity Service; and Yes. Formula funds are not an enti- (10) Other information, following no- tlement. tice in the relevant Notice of Funding (a) Notification. If the Corporation re- Availability, of the specific informa- jects an application submitted by a tion and the Corporation’s intention to State Commission under part 2550 of be able to consider that information in this chapter for funds described in the review process. § 2521.30 of this chapter, the Corpora- (c) Before approving a program grant tion will promptly notify the State to a State commission, the Corporation Commission of the reasons for the re- will consider a State commission’s ca- jection of the application. pacity to manage and monitor grants. (b) Revision. The Corporation will [70 FR 39600, July 8, 2005] provide a State Commission notified under paragraph (a) of this section § 2522.475 To what extent must I use with a reasonable opportunity to revise the Corporation’s selection criteria and resubmit the application. At the and priorities when selecting for- request of the State Commission, the mula programs or operating sites? Corporation will provide technical as- You must ensure that the selection sistance to the State Commission as criteria you use include the following part of the resubmission process. The criteria: Corporation will promptly reconsider

666

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00676 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.520

an application resubmitted under this § 2522.510 To whom does this subpart paragraph. apply? (c) Redistribution. The amount of any This subpart applies to you if you are State’s allotment under § 2521.30(a) of a Corporation grantee administering this chapter for a fiscal year that the an AmeriCorps grant, including an Corporation determines will not be pro- Education Award Program grant, or if vided for that fiscal year will be avail- you are applying to receive AmeriCorps able for redistribution by the Corpora- funding from the Corporation. tion to the States, Territories and In- dian Tribes with approved AmeriCorps [70 FR 39603, July 8, 2005] applications as the Corporation deems appropriate. § 2522.520 What special terms are used in this subpart? [59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39600, July 8, 2005] The following definitions apply to terms used in this subpart of the regu- § 2522.485 How do I calculate my pro- lations: gram’s budgeted Corporation cost (a) Approved application means the per member service year (MSY)? application approved by the Corpora- If you are an AmeriCorps national tion or, for formula programs, by a and community service program, you State commission. calculate your Corporation cost per (b) Community beneficiaries refers to MSY by dividing the Corporation’s persons who receive services or bene- share of budgeted grant costs by the fits from a program, but not to number of member service years you AmeriCorps members or to staff of the are awarded in your grant. You do not organization operating the program. include child-care or the cost of the (c) Outputs are the amount or units education award a member may earn of service that members or volunteers through serving with your program. have completed, or the number of community beneficiaries the program has [70 FR 39603, July 8, 2005] served. Outputs do not provide information on benefits or other changes in Subpart E—Evaluation communities or in the lives of mem- Requirements bers or community beneficiaries. Ex- amples of outputs could include the § 2522.500 What is the purpose of this subpart? number of people a program tutors, counsels, houses, or feeds. (a) This subpart sets forth the min- (d) Intermediate-outcomes specify a imum performance measures and eval- change that has occurred in commu- uation requirements that you as a Cor- nities or in the lives of community poration applicant or grantee must fol- beneficiaries or members, but is not low. necessarily a lasting benefit for them. (b) The performance measures that They are observable and measurable in- you, as an applicant, propose when you dications of whether or not a program apply will be considered in the review is making progress and are logically process and may affect whether the connected to end outcomes. An exam- Corporation selects you to receive a ple would be the number and percent- grant. Your performance related to age of students who report reading your approved measures will influence more books as a result of their partici- whether you continue to receive fund- pation in a tutoring program. ing. (e) Internal evaluation means an eval- (c) Performance measures and evaluation that a grantee performs in- uations are designed to strengthen house without the use of an inde- your AmeriCorps program and foster pendent external evaluator. continuous improvement, and help (f) End-outcomes specify a change that identify best practices and models that has occurred in communities or in the merit replication, as well as pro- lives of community beneficiaries or grammatic weaknesses that need at- members that is significant and last- tention. ing. These are actual benefits or [70 FR 39603, July 8, 2005] changes for participants during or after

667

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00677 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.530 45 CFR Ch. XXV (10–1–11 Edition)

a program. For example, in a tutoring performance data on an ongoing basis, program, the end outcome could be the at least annually; percent and number of students who (c) Ensure that any program under have improved their reading scores to your oversight tracks progress toward grade-level, or other specific measures meeting your performance measures; of academic achievement. (d) Ensure that any program under (g) Grantee includes subgrantees, pro- your oversight corrects performance grams, and projects. deficiencies promptly; and (h) National performance measures are (e) Accurately and fairly present the performance measures that the Cor- results in reports to the Corporation. poration develops. (i) You refers to a grantee or appli- [70 FR 39603, July 8, 2005] cant organization. § 2522.560 What are performance [70 FR 39603, July 8, 2005; 70 FR 48882, Aug. 22, measures and performance meas- 2005] urement? § 2522.530 May I use the Corporation’s (a) Performance measures are meas- program grant funds for perform- urable indicators of a program’s per- ance measurement and evaluation? formance as it relates to member serv- If performance measurement and ice activities. evaluation costs were approved as part (b) Performance measurement is the of your grant, you may use your pro- process of regularly measuring the gram grant funds to support them, con- services provided by your program and sistent with the level of approved costs the effect your program has in commu- for such activities in your grant award. nities or in the lives of members or community beneficiaries. [70 FR 39603, July 8, 2005] (c) The main purpose of performance measurement is to strengthen your § 2522.540 Do the costs of performance measurement or evaluation count AmeriCorps program and foster contin- towards the statutory cap on ad- uous improvement and to identify best ministrative costs? practices and models that merit replication. Performance measurement No, the costs of performance meas- will also help identify programmatic urement and evaluation do not count towards the statutory five percent cap weaknesses that need attention. on administrative costs in the grant, as [70 FR 39603, July 8, 2005] provided in § 2540.110 of this chapter. § 2522.570 What information on per- [70 FR 39603, July 8, 2005] formance measures must my grant application include? PERFORMANCE MEASURES: REQUIREMENTS AND PROCEDURES You must submit all of the following as part of your application for each § 2522.550 What basic requirements program: must I follow in measuring per- (a) Proposed performance measures, formance under my grant? as described in § 2522.580 and § 2522.590 of All grantees must establish, track, this part. and assess performance measures for (b) Estimated performance data for their programs. As a grantee, you must the program years for which you sub- ensure that any program under your mit your application; and oversight fulfills performance measure (c) Actual performance data, where and evaluation requirements. In addi- available, as follows: tion, you must: (i) For continuation programs, per- (a) Establish ambitious performance formance data over the course of the measures in consultation with the Cor- grant to date; and poration, or the State commission, as (ii) For recompeting programs, per- appropriate, following §§ 2422.560 formance data for the preceding three- through 2422.660 of this subpart; year grant cycle. (b) Ensure that any program under your oversight collects and organizes [70 FR 39603, July 8, 2005]

668

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00678 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.620

§ 2522.580 What performance measures § 2522.600 Who approves my perform- am I required to submit to the Cor- ance measures? poration? (a) The Corporation will review and (a) When applying for funds, you approve performance measures, as part must submit, at a minimum, the fol- of the grant application review process, lowing performance measures: for all non-formula programs. If the (1) One set of aligned performance Corporation selects your application measures (one output, one inter- for funding, the Corporation will ap- mediate-outcome, and one end-out- prove your performance measures as come) that capture the results of your part of your grant award. program’s primary activity, or area of (b) If you are a program submitting significant activity for programs whose an application under the State formula design precludes identifying a primary category, the applicable State commis- activity; and sion is responsible for reviewing and (2) Any national performance meas- approving your performance measures. ures the Corporation may require, as The Corporation will not separately ap- specified in paragraph (b) of § 2522.590. prove these measures. (b) For example, a tutoring program [70 FR 39603, July 8, 2005] might use the following aligned performance measures: § 2522.610 What is the difference in (1) Output: Number of students that performance measurements requirements for competitive and for- participated in a tutoring program; mula programs? (2) Intermediate-Outcome: Percent of students reading more books; and (a) Except as provided in paragraph (b) of this section, State commissions (3) End-Outcome: Number and per- are responsible for making the final de- cent of students who have improved termination of performance measures their reading score to grade level. for State formula programs, while the (c) The Corporation encourages you Corporation makes the final deter- to exceed the minimum requirements mination for all other programs. expressed in this section and expects, (b) The Corporation may, through in second and subsequent grant cycles, the State commission, require that for- that you will more fully develop your mula programs meet certain national performance measures, including es- performance measures above and be- tablishing multiple performance indi- yond what the State commission has cators, and improving and refining individually negotiated with its for- those you used in the past. Any per- mula grantees. formance measures you submit beyond (c) While State commissions must what is required in paragraph (a)(1) of hold their sub-grantees responsible for this section may or may not be aligned their performance measures, a State sets of measures. commission, as a grantee, is responsible to the Corporation for its formula [70 FR 39603, July 8, 2005] programs’ performance measures. § 2522.590 Who develops my perform- [70 FR 39603, July 8, 2005] ance measures? (a) You are responsible for developing § 2522.620 How do I report my performance measures to the Corpora- your program-specific performance tion? measures through your own internal process. The Corporation sets specific report- (b) In addition, the Corporation may, ing requirements, including frequency in consultation with grantees, estab- and deadlines, for performance measures in the grant award. lish performance measures that will apply to all Corporation-sponsored pro- (a) In general, you are required to re- grams, which you will be responsible port on the actual results that occurred when implementing the grant for collecting and meeting. and to regularly measure your pro- [70 FR 39603, July 8, 2005] gram’s performance.

669

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00679 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.630 45 CFR Ch. XXV (10–1–11 Edition)

(b) Your report must include the re- (d) If you are a formula program, the sults on the performance measures ap- State commission that approves the proved as part of your grant award. plan under paragraph (a) of this section (c) At a minimum you are required to or the request to amend your perform- report on outputs at the end of year ance measures under paragraph (b) of one and outputs and intermediate out- this section, must forward an informa- comes at the end of years two and tion copy to the Corporation’s three. We encourage you to exceed AmeriCorps program office within 15 these minimum requirements. days of approving the plan or the request. [70 FR 39603, July 8, 2005, as amended at 73 FR 53760, Sept. 17, 2008] [70 FR 39603, July 8, 2005]

§ 2522.630 What must I do if I am not § 2522.640 Under what circumstances able to meet my performance meas- may I change my performance ures? measures? If you are not on track to meet your (a) You may change your perform- performance measures, you must de- ance measures only if the Corporation velop and submit to the Corporation, or, for formula programs, the State or the State commission for formula commission, approves your request to programs, a corrective action plan, do so based on your need to: consistent with paragraph (a) of this (1) Adjust your performance measure section, or submit a request to the Cor- or target based on experience so that poration, or the State commission for your program’s goals are more realistic formula programs, consistent with and manageable; paragraph (b) of this section, to amend (2) Replace a measure related to one your requirements under the cir- issue area with one related to a dif- cumstances described in § 2522.640 of ferent issue area that is more aligned this subpart. with your program service activity. (a) Your corrective action plan must For example, you may need to replace be in writing and include all of the fol- an objective related to health with one lowing: related to the environment; (1) The factors impacting your per- (3) Redefine the service that individ- formance goals; uals perform under the grant. For ex- (2) The strategy you are using and ample, you may need to define your corrective action you are taking to get service as tutoring adults in English, back on track toward your established as opposed to operating an after-school performance measures; and program for third-graders; (3) The timeframe in which you plan (4) Eliminate an activity because you to achieve getting back on track with have been unable to secure necessary your performance measures. matching funding; or (b) A request to amend your perform- (5) Replace one measure with an- ance measures must include all of the other. For example, you may decide following: that you want to replace one measure (1) Why you are not on track to meet of literacy tutoring (increased attend- your performance requirements; ance at school) with another (percent- (2) How you have been tracking per- age of students who are promoted to formance measures; the next grade level). (3) Evidence of the corrective action (b) [Reserved] you have taken; [70 FR 39603, July 8, 2005] (4) Any new proposed performance measures or targets; and § 2522.650 What happens if I fail to (5) Your plan to ensure that you meet meet the performance measures in- any new measures. cluded in my grant? (c) You must submit your plan under (a) If you are significantly under-per- paragraph (a) of this section, or your forming based on the performance request under paragraph (b) of this sec- measures approved in your grant, or tion, within 30 days of determining fail to collect appropriate data to allow that you are not on track to meeting performance measurement, the Cor- your performance measures. poration, or the State commission for

670

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00680 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.710

formula grantees, may specify a period (b) Performance measurement is the of correction, after consulting with process of systematically and regularly you. As a grantee, you must report re- collecting and monitoring data related sults at the end of the period of correc- to the direction of observed changes in tion. At that point, if you continue to communities, participants (members), under-perform, or fail to collect appro- or end beneficiaries receiving your propriate data to allow performance meas- gram’s services. It is intended to pro- urement, the Corporation may take vide an indication of your program’s one or more of the following actions: operations and performance. In con- (1) Reduce the amount of your grant; trast to evaluation, it is not intended (2) Suspend or terminate your grant; to establish a causal relationship be- (3) Use this information to assess any tween your program and a desired (or application from your organization for undesired) program outcome. For ex- a new AmeriCorps grant or a new grant ample, a performance measure for a lit- under another program administered eracy program may include the per- by the Corporation; centage of students receiving services (4) Amend the terms of any Corpora- from your program who increase their tion grants to your organization; or reading ability from ‘‘below grade (5) Take other actions that the Cor- level’’ to ‘‘at or above grade level’’. poration deems appropriate. This measure indicates something good (b) If you are a State commission is happening to your program’s service whose formula program(s) is signifi- beneficiaries, but it does not indicate cantly under-performing or failing to that the change can be wholly attrib- collect appropriate data to allow per- uted to your program’s services. formance measurement, we encourage you to take action as delineated in [70 FR 39603, July 8, 2005] paragraph (a) of this section. § 2522.710 What are my evaluation re- [70 FR 39603, July 8, 2005] quirements? (a) If you are a State commission, EVALUATING PROGRAMS: REQUIREMENTS you must establish and enforce evalua- AND PROCEDURES tion requirements for your State for- § 2522.700 How does evaluation differ mula subgrantees, as you deem appro- from performance measurement? priate. (b) If you are a State competitive or (a) Evaluation is a more in-depth, direct Corporation AmeriCorps grantee rigorous effort to measure the impact (other than an Education Award Pro- of programs. While performance meas- gram grantee), and your average an- urement and evaluation both include nual Corporation program grant is systematic data collection and meas- $500,000 or more, you must arrange for urement of progress, evaluation uses an independent evaluation of your pro- scientifically-based research methods to assess the effectiveness of programs gram, and you must submit the evalua- by comparing the observed program tion with any application to the Cor- outcomes with what would have hap- poration for competitive funds as re- pened in the absence of the program. quired in § 2522.730 of this subpart. Unlike performance measures, evalua- (c) If you are a State competitive or tions estimate the impacts of programs direct Corporation AmeriCorps grantee by comparing the outcomes for individ- whose average annual Corporation pro- uals receiving a service or partici- gram grant is less than $500,000, or an pating in a program to the outcomes Education Award Program grantee, for similar individuals not receiving a you must conduct an internal evalua- service or not participating in a pro- tion of your program, and you must gram. For example, an evaluation of a submit the evaluation with any appli- literacy program may compare the cation to the Corporation for competi- reading ability of students in a pro- tive funds as required in § 2522.730 of gram over time to a similar group of this subpart. students not participating in a pro- (d) The Corporation may, in its dis- gram. cretion, supersede these requirements

671

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00681 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.720 45 CFR Ch. XXV (10–1–11 Edition)

with an alternative evaluation ap- extent to which the program meets the proach, including one conducted by the objectives established and agreed to by Corporation at the national level. the grantee and the Corporation before (e) Grantees must cooperate fully the grant award; with all Corporation evaluation activi- (b) The extent to which the program ties. is cost-effective; and [70 FR 39603, July 8, 2005] (c) The effectiveness of the program in meeting the following legislative ob- § 2522.720 How many years must my jectives: (1) Providing direct and de- evaluation cover? monstrable services and projects that (a) If you are a State formula grant- benefit the community by addressing ee, you must conduct an evaluation, as educational, public safety, human, or your State commission requires. environmental needs; (b) If you are a State competitive or (2) Recruiting and enrolling diverse direct Corporation grantee, your eval- participants consistent with the re- uation must cover a minimum of one quirements of part 2540 of this chapter, year but may cover longer periods. based on economic background, race, ethnicity, age, gender, marital status, [70 FR 39603, July 8, 2005] education levels, and disability; (3) Promoting the educational § 2522.730 How and when do I submit my evaluation to the Corporation? achievement of each participant based on earning a high school diploma or its (a) If you are an existing grantee re- equivalent and future enrollment in competing for AmeriCorps funds for and completion of increasingly higher the first time, you must submit a sum- levels of education; mary of your evaluation efforts or plan (4) Encouraging each participant to to date, and a copy of any evaluation engage in public and community serv- that has been completed, as part of ice after completion of the program your application for funding. based on career choices and participa- (b) If you again compete for tion in other service programs; AmeriCorps funding after a second (5) Promoting an ethic of active and three-year grant cycle, you must sub- productive citizenship among partici- mit the completed evaluation with pants; your application for funding. (6) Supplying additional volunteer as- [70 FR 39603, July 8, 2005] sistance to community agencies without providing more volunteers than § 2522.740 How will the Corporation can be effectively utilized; use my evaluation? (7) Providing services and activities The Corporation will consider the that could not otherwise be performed evaluation you submit with your appli- by employed workers and that will not cation as follows: supplant the hiring of, or result in the (a) If you do not include with your displacement of, employed workers; application for AmeriCorps funding a and summary of the evaluation, or the (8) Other criteria determined and evaluation itself, as applicable, under published by the Corporation. § 2522.730, the Corporation reserves the [59 FR 13796, Mar. 23, 1994. Redesignated at 70 right to not consider your application. FR 39603, July 8, 2005] (b) If you do submit an evaluation with your application, the Corporation § 2522.810 What will the Corporation will consider the results of your eval- do to evaluate the overall success of uation in assessing the quality and the AmeriCorps programs? outcomes of your program. (a) The Corporation will conduct [70 FR 39603, July 8, 2005] independent evaluations of programs, including in-depth studies of selected § 2522.800 How will the Corporation programs. These evaluations will con- evaluate individual AmeriCorps sider the opinions of participants and programs? members of the community where serv- The Corporation will evaluate pro- ices are delivered. Where appropriate grams based on the following: (a) The these studies will compare participants

672

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00682 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2522.820

with individuals who have not partici- (4) The role and importance of sti- pated in service programs. These eval- pends and educational benefits in uations will: (1) Study the extent to achieving desired outcomes in the serv- which the national service impacts in- ice programs; volved communities; (5) The income distribution of (2) Study the extent to which na- AmeriCorps participants, to determine tional service increases positive atti- the level of participation of economi- tudes among participants regarding the cally disadvantaged individuals. The responsibilities of citizens and their total income of participants will be de- role in solving community problems; termined as of the date the participant (3) Study the extent to which na- was first selected to participate in a tional service enables participants to program and will include family total afford post-secondary education with income unless the evaluating entity de- fewer student loans; termines that the participant was inde- (4) Determine the costs and effective- pendent at the time of selection. Defi- ness of different program models in nitions for ‘‘independent’’ and ‘‘total meeting program objectives including income’’ are those used in section full- and part-time programs, programs 480(a) of the Higher Education Act of involving different types of national 1965; service, programs using different re- (6) The amount of assistance provided cruitment methods, programs offering under the AmeriCorps programs that alternative non-federally funded has been expended for projects con- vouchers or post-service benefits, and ducted in areas classified as empower- programs utilizing individual placement zones (or redevelopment areas), ments and teams; in areas that are targeted for special (5) Determine the impact of programs economic incentives or are otherwise in each State on the ability of VISTA identifiable as having high concentra- and National Senior Volunteer Corps, tions of low-income people, in areas each regular and reserve component of that are environmentally distressed or the Armed Forces, and the Peace Corps adversely affected by Federal actions to recruit individuals residing in that related to the management of Federal State; and lands, in areas that are adversely af- (6) Determine the levels of living al- fected by reductions in defense spend- lowances paid in all AmeriCorps pro- ing, or in areas that have an unemploy- grams and American Conservation and ment rate greater than the national Youth Corps, individually, by State, average unemployment rate for the and by region and determine the effects most recent 12 months for which satis- that such living allowances have had factory data are available; and on the ability of individuals to partici- (7) The implications of the results of pate in such programs. these studies as appropriate for author- (b) The Corporation will also deter- ized funding levels. mine by June 30, 1995: (1) Whether the [59 FR 13796, Mar. 23, 1994. Redesignated at 70 State and national priorities designed FR 39603, July 8, 2005] to meet educational, public safety, human, or environmental needs are § 2522.820 Will information on indi- being addressed; vidual participants be kept con- (2) Whether the outcomes of both fidential? stipended and nonstipended service (a) Yes. The Corporation will main- programs are defined and measured ap- tain the confidentiality of information propriately; regarding individual participants that (3) Whether stipended service pro- is acquired for the purpose of the eval- grams, and service programs providing uations described in § 2522.540. The Cor- educational benefits in return for serv- poration will disclose individual partic- ice, should focus on economically dis- ipant information only with the prior advantaged individuals or at risk written consent of the participant. youth, or whether such programs However, the Corporation may disclose should include a mix of individuals, in- aggregate participant information. cluding individuals from middle and (b) Grantees and subgrantees that re- upper income families; ceive assistance under this chapter

673

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00683 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2522.900 45 CFR Ch. XXV (10–1–11 Edition)

must comply with the provisions of one-to-one or small-group sessions and paragraph (a) of this section. activities that build on the academic strengths of students in kindergarten [59 FR 13796, Mar. 23, 1994. Redesignated at 70 FR 39603, July 8, 2005] through 12th grade, and target their academic needs. A tutor does not in- Subpart F—Program Management clude someone engaged in other academic support activities, such as men- Requirements for Grantees toring and after-school program support, whose primary goal is something SOURCE: 70 FR 39606, July 8, 2005, unless other than increasing academic otherwise noted. achievement. For example, providing a safe place for children is not tutoring, § 2522.900 What definitions apply to this subpart? even if some of the program activities focus on homework help. Tutor is defined as someone whose primary goal is to increase academic § 2522.910 What basic qualifications achievement in reading or other core must an AmeriCorps member have subjects through planned, consistent, to serve as a tutor?

If the tutor is: Then the tutor must meet the following qualifications:

(a) Is considered to be an employee of the Local Edu- Paraprofessional qualifications under No Child Left Behind Act, as re- cation Agency or school, as determined by State quired in 34 CFR 200.58 law. (b) Is not considered to be an employee of the Local (1) High School diploma or its equivalent, or a higher degree; and Education Agency or school, as determined by State law. (2) Successful completion of pre- and in-service specialized training, as required in § 2522.940 of this subpart.

[59 FR 13796, Mar. 23, 1994, as amended at 74 training content are high-quality and FR 46506, Sept. 10, 2009] research-based, consistent with the instructional program of the local edu- § 2522.920 Are there any exceptions to cational agency and with State aca- the qualifications requirements? demic content standards. The qualifications requirements in (d) Include appropriate member su- § 2522.910 of this subpart do not apply to pervision by individuals with expertise a member who is a K–12 student tutor- in tutoring; and ing younger children in the school or (e) Provide specialized high-quality after school as part of a structured, and research-based, member pre-serv- school-managed cross-grade tutoring ice and in-service training consistent program. with the activities the member will § 2522.930 [Reserved] perform. [70 FR 39606, Jul. 8, 2005, as amended at 74 FR § 2522.940 What are the requirements 46506, Sept. 10, 2009] for a program in which AmeriCorps members serve as tutors? § 2522.950 What requirements and A program in which members engage qualifications apply if my program in tutoring for children must: focuses on supplemental academic (a) Articulate appropriate criteria for support activities other than tutor- selecting and qualifying tutors, including? ing the requirements in § 2522.910 of (a) If your program does not involve this subpart, and certify that selected tutoring as defined in § 2522.900 of this tutors meet the requirements in subpart, the Corporation will not im- § 2522.910. pose the requirements in § 2522.910 (b) Identify the strategies or tools it through § 2522.940 of this subpart on will use to assess student progress and your program. measure student outcomes; (b) At a minimum, you must articu- (c) Certify that the tutoring cur- late in your application how you will riculum and pre-service and in-service recruit, train, and supervise members

674

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00684 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2523.60

to ensure that they have the qualifica- § 2523.20 Which Federal agencies may tions and skills necessary to provide apply for such funds? the service activities in which they The Corporation will consider appli- will be engaged. cations only from Executive Branch agencies or departments. Bureaus, divi- PART 2523—AGREEMENTS WITH sions, and local and regional offices of OTHER FEDERAL AGENCIES FOR such departments and agencies can THE PROVISION OF AMERICORPS only apply through the central depart- PROGRAM ASSISTANCE ment or agency; however, it is possible for the department or agency to submit an application proposing more than Sec. one program. 2523.10 Are Federal agencies eligible to apply for AmeriCorps program funds? § 2523.30 Must Federal agencies meet 2523.20 Which Federal agencies may apply the requirements imposed on grant- for such funds? ees under parts 2521 and 2522 of 2523.30 Must Federal agencies meet the re- this chapter? quirements imposed on grantees under parts 2521 and 2522 of this chapter? Yes, except as provided in § 2523.90. 2523.40 For what purposes should Federal Federal agency programs must meet agencies use AmeriCorps program funds? the same requirements and serve the 2523.50 What types of grants are Federal same purposes as all other applicants agencies eligible to receive? seeking support under part 2522 of this 2523.60 May Federal agencies enter into chapter. partnerships or participate in consortia? 2523.70 Will the Corporation give special § 2523.40 For what purposes should consideration to Federal agency applica- Federal agencies use AmeriCorps tions that address certain needs? program funds? 2523.80 Are there restrictions on the use of AmeriCorps funds should enable Fed- Corporation funds? eral agencies to establish programs 2523.90 Is there a matching requirement for that leverage agencies’ existing re- Federal agencies? sources and grant-making powers to- 2523.100 Are participants in programs operated by Federal agencies Federal em- ward the goal of integrating service ployees? more fully into agencies’ programs and 2523.110 Can Federal agencies submit mul- activities. Agencies should plan to ulti- tiple applications? mately support new service initiatives 2523.120 Must Federal agencies consult with out of their own budgets and appropria- State Commissions? tions.

AUTHORITY: 42 U.S.C. 12571–12595. § 2523.50 What types of funds are Fed- SOURCE: 59 FR 13804, Mar. 23, 1994, unless eral agencies eligible to receive? otherwise noted. Federal agencies may apply for planning and operating funds subject to the § 2523.10 Are Federal agencies eligible terms established by the Corporation to apply for AmeriCorps program funds? in § 2521.20 of this chapter, except that operating grants will be awarded with Yes. Federal agencies may apply for the expectation that the Federal agen- and receive AmeriCorps funds under cies will support the proposed pro- parts 2521 and 2522 of this chapter, and grams from their own budgets once the they are eligible to receive up to one- Corporation grant(s) expire. third of the funds available for competitive distribution under § 2523.60 May Federal agencies enter § 2521.30(b)(3) of this chapter. The Cor- into partnerships or participate in poration may enter into a grant, con- consortia? tract or cooperative agreement with Yes. Such partnerships or consortia another Federal agency to support an may consist of other Federal agencies, AmeriCorps program carried out by the Indian Tribes, subdivisions of States, agency. The Corporation may transfer community based organizations, insti- funds available to it to other Federal tutions of higher education, or other agencies. non-profit organizations. Partnerships

675

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00685 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2523.70 45 CFR Ch. XXV (10–1–11 Edition)

and consortia must be approved by the agency for each AmeriCorps competi- Corporation. tion. The application may propose more than one program, however, and § 2523.70 Will the Corporation give the Corporation may choose to fund special consideration to Federal any or all of those programs. agency applications that address certain needs? § 2523.120 Must Federal agencies con- Yes. The Corporation will give spe- sult with State Commissions? cial consideration to those applications Yes. Federal agencies must provide a that address the national priorities es- description of the manner in which the tablished by the Corporation. The Cor- proposed AmeriCorps program(s) is co- poration may also give special consid- ordinated with the application of the eration to those applications that dem- State in which the projects will be con- onstrate the agency’s intent to lever- ducted. Agencies must also describe age its own funds through a Corpora- proposed efforts to coordinate tion-approved partnership or consor- AmeriCorps activities with State Com- tium, by raising other funds from Fed- missions and other funded AmeriCorps eral or non-Federal sources, by giving programs within the State in order to grantees incentives to build service op- build upon existing programs and not portunities into their programs, by duplicate efforts. committing appropriate in-kind resources, or by other means. PART 2524—AMERICORPS TECH- NICAL ASSISTANCE AND OTHER § 2523.80 Are there restrictions on the use of Corporation funds? SPECIAL GRANTS

Yes. The supplantation and non- Sec. displacement provisions specified in 2524.10 For what purposes will technical as- part 2540 of this chapter apply to the sistance and training funds be made Federal AmeriCorps programs sup- available? ported with such assistance. 2524.20 What are the guidelines for program development assistance and training § 2523.90 Is there a matching require- grants? ment for Federal agencies? 2524.30 What are the guidelines for challenge grants? No. A Federal agency is not required 2524.40 What are the guidelines for grants to to match funds in programs that re- involve persons with disabilities? ceive support under this chapter. How- 2524.50 What are the guidelines for assist- ever, Federal agency subgrantees are ance with disaster relief? required to match funds in accordance AUTHORITY: 42 U.S.C. 12571–12595. with the requirements of § 2521.30(g) and § 2522.240(b)(6) of this chapter. SOURCE: 59 FR 13805, Mar. 23, 1994, unless otherwise noted. [59 FR 13804, Mar. 23, 1994, as amended at 73 FR 53760, Sept. 17, 2008] § 2524.10 For what purposes will technical assistance and training funds § 2523.100 Are participants in pro- be made available? grams operated by Federal agencies (a) To the extent appropriate and Federal employees? necessary, the Corporation may make No. Participants in these programs technical assistance available to have the same employee status as par- States, Indian tribes, labor organiza- ticipants in other approved AmeriCorps tions, religious organizations, organi- programs, and are not considered Fed- zations operated by young adults, orga- eral employees, except for the purposes nizations serving economically dis- of the Family and Medical Leave Act advantaged individuals, and other enti- as specified in § 2540.220(b) of this chap- ties eligible to apply for assistance ter. under parts 2521 and 2522 of this chapter that desire— § 2523.110 Can Federal agencies sub- (1) To develop AmeriCorps programs; mit multiple applications? or No. The Corporation will only con- (2) To apply for assistance under sider one application from a Federal parts 2521 and 2522 of this chapter or

676

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00686 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2524.40

under a grant program conducted using § 2524.30 What are the guidelines for such assistance. challenge grants? (b) In addition, the Corporation may (a) Purpose. The purpose of these provide program development assist- grants is to challenge high quality ance and conduct, directly or by grant AmeriCorps programs to diversify their or contract, appropriate training pro- funding base by matching private dol- grams regarding AmeriCorps in order lars they have raised with Corporation to— support. The Corporation will provide (1) Improve the ability of AmeriCorps not more than $1 for each $1 raised in programs assisted under parts 2521 and cash by the program from private 2522 of this chapter to meet edu- sources in excess of amounts otherwise cational, public safety, human, or envi- required to be provided by the program ronmental needs in communities— to satisfy the matching funds require- (i) Where services are needed most; ments specified under § 2521.30(g) of this and chapter. (ii) Where programs do not exist, or (b) Eligibility. Only Corporation are too limited to meet community grantees that meet all of the following needs, as of the date on which the Cor- eligibility criteria may apply for chal- poration makes the grant or enters lenge grants: (1) They are funded under into the contract; parts 2520 through 2523 of this chapter. (2) They are high quality programs (2) Promote leadership development with demonstrated experience in estab- in such programs; lishing and implementing projects that (3) Improve the instructional and provide benefits to participants and programmatic quality of such pro- communities. grams to build an ethic of civic respon- (3) They have operated with Corpora- sibility; tion funds for at least six months. (4) Develop the management and (4) They have secured the minimum budgetary skills of program operators; matching funds required by (5) Provide for or improve the train- §§ 2521.30(g), 2522.240(b)(6), 2522.250(a)(4), ing provided to the participants in such and 2522.250(b)(2) of this chapter. programs; (c) Allowable program activities. Chal- (6) Encourage AmeriCorps programs lenge grants are intended to provide to adhere to risk management proce- special opportunities for national and dures, including the training of partici- community service programs to enroll pants in appropriate risk management additional participants or undertake practices; and other activities specified by the Cor- (7) Assist in such other manner as the poration. Corporation may specify. (d) Application procedures. Eligible applicants must comply with the require- [59 FR 13805, Mar. 23, 1994, as amended at 67 ments specified in the Corporation’s FR 45360, July 9, 2002] application materials. (e) Limitation on use of the funds. Each § 2524.20 What are the guidelines for year the Corporation will establish a program development assistance maximum award that a program may and training grants? receive as a challenge grant. (a) Eligibility. States, Federal agen- (f) Allocation of funds. The Corpora- cies, Indian tribes, public or private tion will determine annually how much nonprofit agencies, institutions of funding will be allocated to challenge higher education, for-profit businesses, grants from funds appropriated for and individuals may apply for assist- AmeriCorps programs. ance under this section. [59 FR 13805, Mar. 23, 1994, as amended at 73 (b) Duration. A grant made under this FR 53760, Sept. 17, 2008] section will be for a term of up to one year and is renewable. § 2524.40 What are the guidelines for (c) Application requirements. Eligible grants to involve persons with dis- applicants must comply with the re- abilities? quirements specified in the Corpora- (a) Purpose. There are two general tion’s application package. purposes for these grants: (1) To assist

677

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00687 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2524.50 45 CFR Ch. XXV (10–1–11 Edition)

AmeriCorps grantees in placing appli- tively to a Presidentially-declared dis- cants who require reasonable accom- aster. modation (as defined in section 101(9) (b) Eligibility. Any AmeriCorps proof the Americans With Disabilities Act gram (including youth corps, the Na- of 1990, 42 U.S.C. 12111(9)) or auxiliary tional Civilian Community Corps, aids and services (as defined in section VISTA, and other programs authorized 3(1) of such Act, 42 U.S.C. 12102(1)) in an under the Domestic Volunteer Services AmeriCorps program; and Act) or grant making entity (such as a (2) To conduct outreach activities to State or Federal agency) that is sup- individuals with disabilities to recruit ported by the Corporation may apply them for participation in AmeriCorps for disaster relief grants. programs. (c) Application process. Eligible appli- (b) Eligibility—(1) Placement, accommo- cants must comply with the require- dation, and auxiliary services. Eligibility ments specified in the Corporation’s for assistance under this part is limited application materials. to AmeriCorps programs that: (i) Re- (d) Waivers. In appropriate cases, due ceive competitive funding from the to the limited nature of disaster activi- Corporation under § 2521.30(a)(3) or ties, the Corporation may waive spe- 2521.30(b)(3) of this chapter; and cific program requirements such as (ii) Demonstrate that the program matching requirements and the provi- has received a substantial number of sion of AmeriCorps educational awards applications for placement from per- for participants supported with dis- sons who are individuals with a disaster relief funds. ability and who require a reasonable accommodation (as defined in section PART 2525—NATIONAL SERVICE 101(9) of the Americans with Disabil- TRUST: PURPOSE AND DEFINITIONS ities Act of 1990), or auxiliary aids and services (as defined in section 3(1) of Sec. such Act) in order to perform national 2525.10 What is the National Service Trust? service; and 2525.20 Definitions. (iii) Demonstrate that additional AUTHORITY: 42 U.S.C. 12601–12606. funding would assist the program in placing a substantial number of such SOURCE: 59 FR 30710, June 15, 1994, unless otherwise noted. individuals with a disability as participants in projects carried out through § 2525.10 What is the National Service the program. Trust? (2) Outreach. Corporation grantees The National Service Trust is an ac- and any public or private nonprofit or- count in the Treasury of the United ganization may apply for funds to con- States from which the Corporation duct outreach to individuals with dis- makes payments of education awards, abilities to recruit them for participa- pays interest that accrues on qualified tion in AmeriCorps programs. Outreach student loans for AmeriCorps partici- funds can also be used by any organiza- pants during terms of service in ap- tion to assist AmeriCorps programs in proved national service positions, and adapting their programs to encourage makes other payments authorized by greater participation by individuals Congress. with disabilities. (c) Application procedures. Eligible ap- [64 FR 37414, July 12, 1999] plicants must comply with the requirements specified in the Corporation’s § 2525.20 Definitions. application materials. In addition to the definitions in § 2510.20 of this chapter, the following § 2524.50 What are the guidelines for definitions apply to terms used in parts assistance with disaster relief? 2525 through 2529 of this chapter: (a) Purpose. Disaster relief funds are AmeriCorps education award. For the intended to provide emergency assist- purposes of this section, the term ance not otherwise available to enable AmeriCorps education award means the national and community service pro- financial assistance available under grams to respond quickly and effec- parts 2526 through 2528 of this chapter

678

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00688 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2525.20

for which an individual in an approved not provided for by other assisting AmeriCorps position may be eligible. agencies; and Cost of attendance. The term cost of (iv) For a student engaged in a work attendance has the same meaning as in experience under a cooperative edu- title IV of the Higher Education Act of cation program or course, an allowance 1965, as amended (20 U.S.C. 1070 et. for reasonable costs associated with seq.). such employment (as determined by Current educational expenses. The the institution). term current educational expenses means G.I. Bill approved program. For the the cost of attendance, or other costs purposes of this section, a G.I. Bill Ap- attributable to an educational course proved Program is an educational insti- offered by an institution of higher edu- tution or training establishment ap- cation that has in effect a program par- proved for educational benefits under ticipation agreement under Title IV of the Montgomery G.I. Bill (38 U.S.C. the Higher Education Act, for a period 3670 et seq.) for offering programs of of enrollment that begins after an indi- education, apprenticeship, or on-job vidual enrolls in an approved national training for which educational assist- service position. ance may be provided by the Secretary Economically disadvantaged youth. For for Veterans Affairs. the purposes of this section, the phrase Holder. The term holder means— economically disadvantaged youth means (1) The original lender; or a child who is eligible for a free lunch (2) Any other entity to whom a loan or breakfast under the Richard B. Rus- is subsequently sold, transferred, or as- sell National School Lunch Act (42 signed if such entity acquires a legally U.S.C. 1758(b)). enforceable right to receive payments Education award. For the purposes of from the borrower. this section, the term education award refers to the financial assistance avail- Institution of higher education. For the able under parts 2526 through 2528 of purposes of parts 2525 through 2529 of this chapter, including AmeriCorps this chapter, the term institution of education awards, Silver Scholar edu- higher education has the same meaning cation awards, and Summer of Service given the term in section 481(a) of the education awards. Higher Education Act of 1965, as amended (20 U.S.C. 1088(a)). Educational expenses at a Title IV institution of higher education. The term Period of enrollment. Period of enroll- educational expenses means— ment means the period that the title IV (1) Cost of attendance as determined institution has established for which by the institution; or institutional charges are generally as- (2) Other costs at a title IV institu- sessed (i.e., length of the student’s tion of higher education attributable course, program, or academic year.) to a non-title IV educational course as Qualified student loan. The term quali- follows: fied student loan means any loan made, (i) Tuition and fees normally assessed insured, or guaranteed pursuant to a student for a course or program of title IV of the Higher Education Act of study by the institution, including 1965 (20 U.S.C. 1070 et seq.), other than a costs for rental or purchase of any loan to a parent of a student pursuant books or supplies required of all stu- to section 428B of such Act (20 U.S.C. dents in the same course of study; 1078–2), any loan made pursuant to title (ii) For a student engaged in a course VII or VIII of the Public Service Health of study by correspondence, only tui- Act (42 U.S.C. 292a et seq.), or any other tion and fees and, if required, books, loan designated as such by Congress. and supplies; This includes, but is not necessarily (iii) For a student with a disability, limited to, the following: an allowance (as determined by the in- (1) Federal Family Education Loans. (i) stitution) for those expenses related to Subsidized and Unsubsidized Stafford the student’s disability, including spe- Loans. cial services, personal assistance, (ii) Supplemental Loans to Students transportation, equipment, and sup- (SLS). plies that are reasonably incurred and (iii) Federal Consolidation Loans.

679

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00689 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2526 45 CFR Ch. XXV (10–1–11 Edition)

(iv) Guaranteed Student Loans (pred- PART 2526—ELIGIBILITY FOR AN ecessor to Stafford Loans). EDUCATION AWARD (v) Federally Insured Student Loans (FISL). Sec. (2) William D. Ford Federal Direct 2526.10 Who is eligible to receive an edu- Loans. (i) Direct Subsidized and Unsub- cation award from the National Service sidized Stafford Loans. Trust? (ii) Direct Subsidized and Unsub- 2526.15 Upon what basis may an organization responsible for the supervision of a sidized Ford Loans. national service participant certify that (iii) Direct Consolidation Loans. the individual successfully completed a (3) Federal Perkins Loans. (i) National term of service? Direct Student Loans. 2526.20 Is an AmeriCorps participant who (ii) National Defense Student Loans. does not complete an originally-approved term of service eligible to receive a pro- (4) Public Health Service Act Loans. (i) rated education award? Health Education Assistance Loans 2526.25 Is a participant in an approved Sum- (HEAL). mer of Service position or approved Sil- (ii) Health Professions Student Loans ver Scholar position who does not com- (HPSL). plete an approved term of service eligible to receive a pro-rated education award? (iii) Loans for Disadvantaged Stu- 2526.30 How do convictions for the posses- dents (LDS). sion or sale of controlled substances af- (iv) Nursing Student Loans (NSL). fect an education award recipient’s abil- (v) Primary Care Loans (PCL). ity to use that award? Silver Scholar education award. For 2526.40 What is the time period during the purposes of this section, the term which an individual may use an education award? Silver Scholar education award means 2526.50 Is there a limit on the total amount the financial assistance available of education awards an individual may under parts 2526 through 2528 of this receive? chapter for which an individual in an 2526.55 What is the impact of the aggregate approved Silver Scholar position may value of education awards received on an be eligible. individual’s ability to serve in subsequent terms of service? Summer of Service education award. 2526.60 May an individual receive an edu- For the purposes this section, the term cation award and related interest bene- Summer of Service education award fits from the National Service Trust as means the financial assistance avail- well as other loan cancellation benefits able under parts 2526 through 2528 of for the same service? this chapter for which an individual in 2526.70 What are the effects of an erroneous an approved Summer of Service posi- certification of successful completion of a term of service? tion may be eligible. Term of service. The term term of serv- AUTHORITY: 42 U.S.C. 12601–12604, 12606. ice means— SOURCE: 59 FR 30711, June 15, 1994, unless (1) For an individual serving in an ap- otherwise noted. proved AmeriCorps position, one of the terms of service specified in § 2522.220 of § 2526.10 Who is eligible to receive an education award from the National this chapter; Service Trust? (2) For an individual serving in an ap- (a) General. An individual is eligible proved Silver Scholar position, not less to receive an education award from the than 350 hours during a one-year pe- National Service Trust if the organiza- riod; and tion responsible for the individual’s su- (3) For an individual serving in an ap- pervision in a national service program proved Summer of Service position, certifies that the individual— not less than 100 hours during the sum- (1) Met the applicable eligibility re- mer months of a single year. quirements for the approved [59 FR 30711, June 15, 1994 as amended at 64 AmeriCorps position, approved Silver FR 37414, July 12, 1999; 65 FR 77821, Dec. 13, Scholar position, or approved Summer 2000; 67 FR 45360, July 9, 2002; 75 FR 51410, of Service position, as appropriate, in Aug. 20, 2010] which the individual served;

680

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00690 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2526.20

(2) (i) For an AmeriCorps education ery of funds and subject to civil and award, successfully completed the re- criminal sanctions. quired term of service in the approved national service position; [64 FR 37414, July 12, 1999, as amended at 67 FR 45361, July 9, 2002; 75 FR 51411, Aug. 20, (ii) For a partial AmeriCorps edu- 2010] cation award, completed at least 15 percent of the originally-approved § 2526.15 Upon what basis may an or- term of service, and performed satis- ganization responsible for the su- factorily prior to being granted a re- pervision of a national service par- lease for compelling personal cir- ticipant certify that the individual cumstances consistent with successfully completed a term of § 2522.230(a); service? (iii) For a Summer of Service edu- (a) An organization responsible for cation award, successfully completed the supervision of an individual serving the required term of service in a Sum- in an AmeriCorps State and National mer of Service position; or position must determine whether an (iv) For a Silver Scholar education individual successfully completed a award, successfully completed the re- term of service based upon an end-of- quired term of service in a Silver term evaluation conducted pursuant to Scholar position; and § 2522.220(d). (3) Is a citizen, national, or lawful permanent resident alien of the United (b) An organization responsible for States. the supervision of an individual serving (b) High school diploma or equivalent. in a program other than AmeriCorps To use an education award, an indi- State and National must determine vidual must— whether an individual successfully (1) Have received a high school di- completed a term of service based upon ploma or its equivalent; or an end-of-term evaluation that exam- (2) Be enrolled at an institution of ines whether the individual satisfies all higher education on the basis of meet- of the following conditions: ing the standard described in para- (1) Completed the required number of graph (1) or (2) of subsection (a) of sec- service hours for the term of service; tion 484 of the Higher Education Act of (2) Satisfactorily performed on as- 1965 (20 U.S.C. 1091) and meet the re- signments, tasks, or projects; and quirements of subsection of section 484; (3) Met any performance criteria as or determined by the program and com- (3) Have received a waiver described municated to the member. in § 2522.200(b) of this chapter. (c) A certification by the organiza- (c) Written declaration regarding high tion responsible for the supervision of school diploma sufficient for disburse- an individual that the individual did or ment. For purposes of disbursing an did not successfully complete a term of education award, if an individual pro- service will be deemed to incorporate vides a written declaration under pen- an end-of-term evaluation. alty of law that he or she meets the requirements in paragraph (b) of this sec- [75 FR 51411, Aug. 20, 2010] tion relating to high school education, no additional documentation is needed. § 2526.20 Is an AmeriCorps participant (d) Prohibition on duplicate benefits. who does not complete an origi- An individual who receives a post-serv- nally-approved term of service eligi- ice benefit in lieu of an education ble to receive a pro-rated education award? award may not receive an education award for the same term of service. (a) Compelling personal circumstances. (e) Penalties for false information. Any A participant in an approved individual who makes a materially AmeriCorps position who is released false statement or representation in prior to completing an approved term connection with the approval or dis- of service for compelling personal cir- bursement of an education award or cumstances in accordance with other payment from the National Serv- § 2522.230(a) is eligible for a pro-rated ice Trust may be liable for the recov- education award if the participant—

681

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00691 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2526.25 45 CFR Ch. XXV (10–1–11 Edition)

(1) Performed satisfactorily prior to (D) Nature and extent of any other being granted a release for compelling criminal record; personal circumstances; and (E) Nature and extent of any involve- (2) Completed at least 15 percent of ment in trafficking of controlled sub- the originally-approved term of serv- stances; ice. (F) Length of time between offenses; (b) Release for cause. A participant (G) Employment history; who is released prior to completing an (H) Service to the community; originally-approved term of service for (I) Recommendations from commu- cause is not eligible for any portion of nity members and local officials, in- an education award. cluding experts in substance abuse and [64 FR 37415, July 12, 1999, as amended at 75 treatment; and FR 51411, Aug. 20, 2010] (J) Any other relevant aggravating or ameliorating circumstances. § 2526.25 Is a participant in an ap- (2) For conviction of the sale of a proved Summer of Service position controlled substance, the ineligibility or approved Silver Scholar position periods are— who does not complete an approved (i) Two years for a first conviction; term of service eligible to receive a and pro-rated education award? (ii) Two years plus such additional No. An individual released for any time as the Corporation determines as reason prior to completing an approved appropriate for second and subsequent term of service in a Silver Scholar or convictions, based on the factors set Summer of Service position is not eli- forth in paragraphs (a)(1)(iii) (A) gible to receive a pro-rated award. through (J) of this section. [75 FR 51411, Aug. 20, 2010] (b) (1) If the Corporation determines that an individual who has had his or § 2526.30 How do convictions for the her eligibility to use the education possession or sale of controlled subaward suspended pursuant to para- stances affect an education award graph (a) of this section has success- recipient’s ability to use that fully completed a legitimate drug reha- award? bilitation program, or in the case of a (a) Except as provided in paragraph first conviction that the individual has (b) of this section, a recipient of an enrolled in a legitimate drug rehabili- education award who is convicted tation program, the individual’s eligi- under pertinent Federal or State law of bility to use the education award will the possession or sale of a controlled be restored. substance is not eligible to use his or (2) In order for the Corporation to de- her education award from the date of termine that the requirements of para- the conviction until the end of a speci- graph (b)(1) of this section have been fied time period, which is determined met— based on the type of conviction as fol- (i) The drug rehabilitation program lows: must be recognized as legitimate by ap- (1) For conviction of the possession of propriate Federal, State or local au- a controlled substance, the ineligi- thorities; and bility periods are— (ii) The individual’s enrollment in or (i) One year for a first conviction; successful completion of the legitimate (ii) Two years for a second convic- drug rehabilitation program must be tion; and certified by an appropriate official of (iii) For a third or subsequent convic- that program. tion, indefinitely, as determined by the [59 FR 30711, June 15, 1994. Redesignated at 64 Corporation according to the following FR 37415, July 12, 1999] factors— (A) Type of controlled substance; § 2526.40 What is the time period dur- (B) Amount of controlled substance; ing which an individual may use an (C) Whether firearms or other dan- education award? gerous weapons were involved in the of- (a) General requirement. Unless the fense; Corporation approves an extension in

682

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00692 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2526.50

accordance with the requirements of cation award for the purposes of this paragraph (b) of this section— paragraph. In the case of a transferred (1) An individual may use an award, an individual who is unable to AmeriCorps education award or a Sil- use an education award as a result of ver Scholar education award within being too young to enroll in an institu- seven years of the date on which the tion of higher education or other train- individual successfully completed a ing establishment is not considered to term of service in an approved be unavoidably prevented from using AmeriCorps or Silver Scholar position; the education award. (2) An individual may use a Summer of Service education award within ten [75 FR 51411, Aug. 20, 2010] years of the date on which the individual successfully completed a term of § 2526.50 Is there a limit on the total service in an approved Summer of amount of education awards an in- Service position; dividual may receive? (3) A designated individual who re- (a) General Limitation. No individual ceives a transferred education award in may receive more than an amount accordance with § 2530.10 may use the equal to the aggregate value of two transferred education award within ten full-time education awards. years of the date on which the indi- (b) Calculation of the value of an edu- vidual who transferred the award suc- cation award. For the purposes of this cessfully completed the term of service section, the value of an education in an approved AmeriCorps or Silver award is equal to the actual amount of Scholar position that is the basis of the the education award received divided award. by the amount of a full-time education (b) Extensions. In order to receive an award in the year the AmeriCorps or extension of the period of availability specified in paragraph (a) of this sec- Silver Scholar position to which the tion for using an education award, an award is attributed was approved. Each individual must apply to the Corpora- award received will be considered to tion for an extension prior to the end have a value between 0 and 1. Although of that time period. The Corporation the amount of a full-time award as de- may grant an application for an exten- fined in § 2527.10(a) may change, the sion under the following cir- value of a full-time award will always cumstances: be equal to 1. (1) If the Corporation determines (c) Calculation of aggregate value of that an individual was performing an- awards received. The aggregate value of other term of service in an approved awards received is equal to the sum of: AmeriCorps, Summer of Service, or (1) The value of each education award Silver Scholar position during the received as a result of successful com- original period of availability, the Cor- pletion of an approved AmeriCorps po- poration may grant an extension for a sition; time period that is equivalent to the (2) The value of each partial edu- time period during which the indication award received as a result of re- vidual was performing the other term lease from an approved AmeriCorps po- of service. sition for compelling personal cir- (2) If the Corporation determines cumstances; that an individual was unavoidably (3) The value of each education award prevented from using the education award during the original period of received as a result of successful com- availability, the Corporation may pletion of a term of service in an ap- grant an extension for a period of time proved Silver Scholar position; and that the Corporation deems appro- (4) The value of any amount received priate. An individual who is ineligible as a transferred education award, ex- to use an education award as a result cept as provided in § 2530.60(c). of the individual’s conviction of the (d) Determination of Receipt of Award. possession or sale of a controlled sub- For purposes of determining the aggre- stance is not considered to be unavoid- gate value of education awards, an ably prevented from using the edu- award is considered to be received at

683

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00693 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2526.55 45 CFR Ch. XXV (10–1–11 Edition)

the time it becomes available for an in- ing into consideration the full facts dividual’s use. and circumstances surrounding the erroneous or incorrect certification. [75 FR 51411, Aug. 20, 2010] (b) Nothing in this section shall pro- § 2526.55 What is the impact of the ag- hibit the Corporation from taking any gregate value of education awards action authorized by law based upon received on an individual’s ability any certification that is knowingly to serve in subsequent terms of made in a false, materially misleading, service? or fraudulent manner. The aggregate value of education [75 FR 51412, Aug. 20, 2010] awards an individual has received will not impact an individual’s ability to serve in a subsequent term of service, PART 2527—DETERMINING THE but will impact the amount of the edu- AMOUNT OF AN EDUCATION cation award the individual may re- AWARD ceive upon successful completion of that term of service. If the award AUTHORITY: 42 U.S.C. 12601–12606. amount offered for the term of service has a value that, when added to the ag- SOURCE: 64 FR 37415, July 12, 1999, unless otherwise noted. gregate value of awards previously received, would exceed 2, upon successful § 2527.10 What is the amount of an completion of the term of service, the education award? individual will only receive that por- (a) Full-time term of service. Except as tion of the award having a value for provided in paragraph (g) of this sec- which the individual is eligible pursu- tion, the education award for a full- ant to § 2527.10(g). time term of service in an approved [75 FR 51412, Aug. 20, 2010] AmeriCorps position of at least 1,700 hours will be equal to the maximum § 2526.60 May an individual receive an amount of a Federal Pell Grant under education award and related inter- Section 401 of the Higher Education est benefits from the National Serv- Act of 1965 (20 U.S.C. 1070a) that a stu- ice Trust as well as other loan cancellation benefits for the same serv- dent eligible for such grant may re- ice? ceive in the aggregate for the award year in which the term of service is ap- An individual may not receive an proved by the Corporation. education award and related interest (b) Part-time term of service. Except as benefits from the National Service provided in paragraph (g), the edu- Trust for a term of service and have cation award for a part-time term of that same service credited toward re- service in an approved AmeriCorps po- payment, discharge, or cancellation of sition of at least 900 hours is equal to other student loans, except an indi- one half of the amount of an education vidual may credit the service toward award amount for a full-time term of the Public Service Loan Forgiveness service described in paragraph (a) of Program, as provided under 34 CFR this section. § 685.219. (c) Reduced part-time term of service. [75 FR 51412, Aug. 20, 2010] Except as provided in paragraph (g), the education award for a reduced part- § 2526.70 What are the effects of an er- time term of service in an approved roneous certification of successful AmeriCorps position of fewer than 900 completion of a term of service? hours is: (a) If the Corporation determines (1) An amount equal to the product that the certification made by a na- of: tional service program under (i) The number of hours of service re- § 2526.10(a)(2)(i), (2)(iii), or (2)(iv) is er- quired to complete the reduced part- roneous, the Corporation shall assess time term of service divided by 900; and against the national service program a (ii) The amount of the education charge for the amount of any associ- award for a part-time term of service ated payment or potential payment described in paragraph (b) of this sec- from the National Service Trust, tak- tion; or

684

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00694 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2528.20

(2) An amount as determined other- current educational expenses at an insti- wise by the Corporation. tution of higher education? (d) Release for compelling personal cir- 2528.40 Is there a limit on the amount of an cumstances. The education award for an individual’s education award that the Corporation will disburse to an institu- individual who is released from com- tion of higher education for a given pe- pleting an originally-approved term of riod of enrollment? service for compelling personal cir- 2528.50 What happens if an individual with- cumstances is equal to the product of— draws or fails to complete the period of (1) The number of hours completed enrollment in an institution of higher divided by the number of hours in the education for which the Corporation has originally-approved term of service; disbursed all or part of that individual’s and education award? 2528.60 Who may use the education award to (2) The amount of the education pay expenses incurred in enrolling in a award for the originally-approved term G.I. Bill approved program? of service. 2528.70 What steps are necessary to use an (e) Summer of Service Education education award to pay expenses in- Award. (1) In general. The education curred in enrolling in a G.I. Bill approved award for a term of service in an ap- program? proved Summer of Service position for 2528.80 What happens if an individual for at least 100 hours is $500. whom the Corporation has disbursed edu- (2) Exception. The Corporation may cation award funds withdraws or fails to complete the period of enrollment in a authorize a Summer of Service edu- G.I. Bill approved program? cation award of $750 if the participant is economically disadvantaged, as AUTHORITY: 42 U.S.C. 12601–12606. verified by the organization or school SOURCE: 64 FR 37415, July 12, 1999, unless operating the Summer of Service pro- otherwise noted. gram. (f) Silver Scholar Education Award. Ex- § 2528.10 For what purposes may an cept as provided in paragraph (g) of education award be used? this section, the education award for a (a) Authorized uses. An education term of service in an approved Silver award may be used— Scholar position for at least 350 hours (1) To repay qualified student loans is $1,000. in accordance with § 2528.20; (g) Calculating discounted education (2) To pay all or part of the current award amount. To ensure that an indi- educational expenses at an institution vidual receives no more than the aggre- of higher education in accordance with gate value of two awards, as deter- §§ 2528.30 through 2528.50; mined pursuant to § 2526.50, the dis- (3) To pay expenses incurred in en- counted amount an individual is eligi- rolling in a G.I. Bill approved program, ble to receive is determined by the fol- in accordance with §§ 2528.60–80. lowing formula: (b) Multiple uses. An education award (2¥aggregate value of awards the indi- is divisible and may be applied to any vidual has received) × (amount of a combination of loans, costs, or ex- full-time education award in the penses described in paragraph (a) of year the position is approved) this section. [64 FR 37415, July 12, 1999, as amended at 75 [64 FR 37415, July 12, 1999, as amended at 67 FR 51412, Aug. 20, 2010] FR 45361, July 9, 2002; 75 FR 51412, Aug. 20, 2010]

PART 2528—USING AN EDUCATION § 2528.20 What steps are necessary to AWARD use an education award to repay a qualified student loan? Sec. (a) Required information. Before dis- 2528.10 For what purposes may an education bursing an amount from an education award be used? award to repay a qualified student 2528.20 What steps are necessary to use an education award to repay a qualified stu- loan, the Corporation must receive— dent loan? (1) An individual’s written authoriza- 2528.30 What steps are necessary to use an tion and request for a specific payment education award to pay all or part of the amount;

685

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00695 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2528.30 45 CFR Ch. XXV (10–1–11 Edition)

(2) Identifying and other information of the institution’s total student popu- from the holder of the loan as relation; quested by the Corporation and nec- (v) The amount requested will be essary to ensure compliance with this used to pay all or part of the individ- part. ual’s cost of attendance or other edu- (b) Payment. When the Corporation cational expenses attributable to a receives the information required course offered by the institution; under paragraph (a) of this section, the (vi) The amount requested does not Corporation will pay the holder of the exceed the difference between: loan and notify the individual of the (A) The individual’s cost of attend- payment. ance and other educational expenses; (c) Aggregate payments. The Corpora- and tion may establish procedures to aggregate payments to holders of loans for (B) The individual’s estimated stu- more than a single individual. dent financial assistance for that period under part A of title IV of the § 2528.30 What steps are necessary to Higher Education Act (20 U.S.C. 1070 et use an education award to pay all seq.). or part of the current educational (b) Payment. When the Corporation expenses at an institution of higher receives the information required education? under paragraph (a) of this section, the (a) Required information. Before dis- Corporation will pay the institution bursing an amount from an education and notify the individual of the pay- award to pay all or part of the current ment. educational expenses at an institution (c) Installment payments. The Corpora- of higher education, the Corporation tion will disburse the education award must receive— to the institution of higher education (1) An individual’s written authoriza- in at least two separate installments, tion and request for a specific payment none of which exceeds 50 percent of the amount; total amount. The interval between in- (2) Information from the institution stallments may not be less than one- of higher education as requested by the half of the period of enrollment, except Corporation, including verification as necessary to permit the second in- that— (i) It has in effect a program partici- stallment to be paid at the beginning pation agreement under section 487 of of the second semester, quarter, or the Higher Education Act of 1965 (20 other division of a period of enroll- U.S.C. 1094); ment. (ii) Its eligibility to participate in [64 FR 37415, July 12, 1999, as amended at 67 any of the programs under title IV of FR 45361, July 9, 2002; 75 FR 51413, Aug. 20, the Higher Education Act of 1965 has 2010] not been limited, suspended, or terminated; § 2528.40 Is there a limit on the (iii) If an individual who has used an amount of an individual’s education education award withdraws or other- award that the Corporation will wise fails to complete the period of en- disburse to an institution of higher education for a given period of enrollment for which the education rollment? award was provided, the institution of higher education will ensure an appro- Yes. The Corporation’s disbursement priate refund to the Corporation of the from an individual’s education award unused portion of the education award for any period of enrollment may not under its own published refund policy, exceed the difference between— or if it does not have one, provide a (a) The individual’s cost of attend- pro-rata refund to the Corporation of ance and other educational expenses, the unused portion of the education determined by the institution of higher award; education in accordance with section (iv) Individuals using education 472 of the Higher Education Act of 1965 awards to pay for the current edu- (20 U.S.C. 1987ll); and cational expenses at that institution (b) The individual’s estimated finan- do not comprise more than 15 percent cial assistance for that period under

686

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00696 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2528.80

part A of title IV of the Higher Edu- award for this purpose, the Corporation cation Act. must receive— (1) An individual’s written authoriza- [64 FR 37415, July 12, 1999, as amended at 75 tion and request for a specific payment FR 51413, Aug. 20, 2010] amount; § 2528.50 What happens if an indi- (2) Verification from the individual vidual withdraws or fails to com- that the individual meets the criteria plete the period of enrollment in an in § 2528.60; and institution of higher education for (3) Information from the educational which the Corporation has dis- institution or training establishment bursed all or part of that individ- as requested by the Corporation, in- ual’s education award? cluding verification that— (a)(1) If an individual for whom the (i) The amount requested will be used Corporation has disbursed education to pay all or part of the individual’s ex- award funds withdraws or otherwise penses attributable to a course, pro- fails to complete a period of enroll- gram of education, apprenticeship, or ment, an institution of higher edu- job training offered by the institution cation that receives a disbursement of or establishment; education award funds from the Cor- (ii) The course(s) or program(s) for poration must provide a refund to the which the individual is requesting to Corporation in an amount determined use the education award has been and under that institution’s published re- is currently approved by the State ap- fund requirements. proving agency for the State where the (2) If an institution for higher edu- institution or establishment is located, cation does not have a published refund or by the Secretary of Veterans Af- policy, the institution must provide a fairs; and pro-rata refund to the Corporation of (iii) If an individual who has used an the unused portion of the education education award withdraws or other- award. wise fails to complete the period of en- (b) The Corporation will credit any rollment for which the education refund received for an individual under award was provided, the institution or paragraph (a) of this section to the in- establishment will ensure a pro-rata dividual’s education award allocation refund to the Corporation of the un- in the National Service Trust. used portion of the education award. (b) Payment. When the Corporation [64 FR 37415, July 12, 1999, as amended at 67 receives the information required FR 45361, July 9, 2002] under paragraph (a) of this section, the Corporation will pay the institution or § 2528.60 Who may use the education award to pay expenses incurred in establishment and notify the indi- enrolling in a G.I. Bill approved vidual of the payment. program? [75 FR 51413, Aug. 20, 2010] To use the education award to pay expenses for this purpose, you must § 2528.80 What happens if an indi- have received an education award for vidual for whom the Corporation has disbursed education award successfully completing a term in an funds withdraws or fails to com- approved AmeriCorps position, ap- plete the period of enrollment in a proved Summer of Service position, or G.I. Bill approved program? approved Silver Scholar position, in (a) If an individual for whom the Cor- which you enrolled on or after October poration has disbursed education award 1, 2009. funds withdraws or otherwise fails to [75 FR 51413, Aug. 20, 2010] complete a period of enrollment, the approved educational institution or § 2528.70 What steps are necessary to training establishment that receives a use an education award to pay ex- disbursement of education award funds penses incurred in enrolling in a from the Corporation must provide a G.I. Bill approved program? pro-rata refund to the Corporation of (a) Required Information. Before dis- the unused portion of the education bursing an amount from an education award.

687

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00697 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2529 45 CFR Ch. XXV (10–1–11 Edition)

(b) The Corporation will credit any (c) Supplemental to education award. A refund received for an individual under payment of accrued interest under this paragraph (a) of this section to the in- part is supplemental to an education dividual’s education award allocation award received by an individual under in the National Service Trust. parts 2526 through 2528 of this chapter. [75 FR 51413, Aug. 20, 2010] (d) Limitation. The Corporation is not responsible for the repayment of any PART 2529—PAYMENT OF accrued interest in excess of the amount determined in accordance with ACCRUED INTEREST paragraph (b) of this section. (e) Suspended service. The Corporation Sec. 2529.10 Under what circumstances will the will not pay any interest expenses that Corporation pay interest that accrues on accrue on an individual’s qualified stu- qualified student loans during an individ- dent loan during a period of suspended ual’s term of service in an approved service. AmeriCorps position or approved Silver Scholar position? [64 FR 37417, July 12, 1999, as amended at 75 2529.20 What steps are necessary to obtain FR 51413, Aug. 20, 2010] forbearance in the repayment of a qualified student loan during an individual’s § 2529.20 What steps are necessary to term of service in an approved obtain forbearance in the repay- AmeriCorps position? ment of a qualified student loan 2529.30 What steps are necessary for using during an individual’s term of serv- funds in the National Service Trust to ice in an approved AmeriCorps po- pay interest that has accrued on a quali- sition? fied student loan during a term of service for which the individual has obtained for- (a) An individual seeking forbearance bearance? must submit a request to the holder of the loan. AUTHORITY: 42 U.S.C. 12601–12606. (b) If, before approving a request for SOURCE: 64 FR 37417, July 12, 1999, unless forbearance, the holder of the loan re- otherwise noted. quires verification that the individual § 2529.10 Under what circumstances is serving in an approved AmeriCorps will the Corporation pay interest position, the Corporation will provide that accrues on qualified student verification upon a request from the in- loans during an individual’s term of dividual or the holder of the loan. service in an approved AmeriCorps position or approved Silver Scholar § 2529.30 What steps are necessary for position? using funds in the National Service (a) Eligibility. The Corporation will Trust to pay interest that has ac- pay interest that accrues on an individ- crued on a qualified student loan during a term of service for which ual’s qualified student loan, subject to an individual has obtained forbear- the limitation on amount in paragraph ance? (b) of this section, if— (1) The individual successfully com- (a) The Corporation will make pay- pletes a term of service in an approved ments from the National Service Trust AmeriCorps position or approved Silver for interest that has accrued on a Scholar position; and qualified student loan during a term of (2) The holder of the loan approves service which the individual has suc- the individual’s request for forbearance cessfully completed and for which an during the term of service. individual has obtained forbearance, (b) Amount. The percentage of ac- after the following: crued interest that the Corporation (1) The program verifies that the in- will pay is the lesser of— dividual has successfully completed the (1) The product of— term of service and the dates upon (i) The number of hours of service which the term of service began and completed divided by the number of ended; days for which forbearance was grant- (2) The holder of the loan verifies the ed; and amount of interest that has accrued (ii) 365 divided by 17; and (2) 100. during the term of service.

688

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00698 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2530.30

(b) When the Corporation receives all (d) The award the individual is re- necessary information from the pro- questing to transfer has not expired, gram and the holder of the loan, the consistent with the period of avail- Corporation will pay the holder of the ability set forth in § 2526.40(a); loan and notify the individual of the (e) The individual designated to repayment. ceive the transferred award is the transferring individual’s child, grand- PART 2530—TRANSFER OF child, or foster child; and EDUCATION AWARDS (f) The individual designated to receive the transferred award is a citizen, national, or lawful permanent resident Sec. 2530.10 Under what circumstances may an alien of the United States. individual transfer an education award? 2530.20 For what purposes may a transferred § 2530.20 For what purposes may a award be used? transferred award be used? 2530.30 What steps are necessary to transfer A transferred award may be used by a an education award? designated individual to repay quali- 2530.40 Is there a limit on the number of in- fied student loans or to pay current dividuals one may designate to receive a educational expenses at an institution transferred award? of higher education, as described in 2530.50 Is there a limit on the amount of § 2528.10. transferred awards a designated individual may receive? § 2530.30 What steps are necessary to 2530.60 What is the impact of transferring or transfer an education award? receiving a transferred education award on an individual’s eligibility to receive (a) Request for Transfer. Before trans- additional education awards? ferring an award to a designated indi- 2530.70 Is a designated individual required vidual, the Corporation must receive a to accept a transferred education award? request from the transferring indi- 2530.80 Under what circumstances is a vidual, including— transfer revocable? (1) The individual’s written author- 2530.85 What steps are necessary to revoke a ization to transfer the award, the year transfer? in which the award was earned, and the 2530.90 Is a designated individual eligible for the payment of accrued interest specific amount of the award to be under Part 2529? transferred; (2) Identifying information for the in- AUTHORITY: 42 U.S.C. 12601–12606. dividual designated to receive the SOURCE: 75 FR 51413, Aug. 20, 2010, unless transferred award; otherwise noted. (3) A certification that the transferring individual meets the requirements § 2530.10 Under what circumstances of paragraphs (a) through (c) of may an individual transfer an edu- § 2530.10; and cation award? (4) A certification that the des- An individual may transfer an edu- ignated individual is the child, grand- cation award if— child, or foster child of the transferring (a) The individual enrolled in an ap- individual. proved AmeriCorps State and National (b) Notification to Designated Indi- position or approved Silver Scholar po- vidual. Upon receipt of a request in- sition on or after October 1, 2009; cluding all required information listed (b) The individual was age 55 or older in paragraph (a) of this section, the on the day the individual commenced Corporation will contact the des- the term of service in an approved ignated individual to notify the indi- AmeriCorps State and National posi- vidual of the proposed transfer, con- tion or in approved Silver Scholar posi- firm the individual’s identity, and give tion; the individual the opportunity to ac- (c) The individual successfully com- cept or reject the transferred award. pleted a term of service in an approved (c) Acceptance by Designated Indi- AmeriCorps State and National posi- vidual. To accept an award, a des- tion or an approved Silver Scholar po- ignated individual must certify that sition; the designated individual is the child,

689

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00699 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2530.40 45 CFR Ch. XXV (10–1–11 Edition)

grandchild, or foster child of the trans- has already received the aggregate ferring individual and that the des- value of two full-time education ignated individual is a citizen, na- awards, the individual may not receive tional, or lawful permanent resident a transferred education award, and the alien of the United States. Upon redesignated individual will be deemed to ceipt of the designated individual’s ac- have rejected the award in full. ceptance, the Corporation will create or permit the creation of an account in § 2530.60 What is the impact of trans- the National Service Trust for the des- ferring or receiving a transferred ignated individual, if an account does education award on an individual’s eligibility to receive additional edu- not already exist, and the accepted cation awards? amount will be deducted from the transferring individual’s account and (a) Impact on Transferring Individual. credited to the designated individual’s Pursuant to § 2526.50, an award is con- account. sidered to be received at the time it be- (d) Timing of transfer. The Corpora- comes available for an individual’s use. tion must receive the request from the Transferring all or part of an award transferring individual prior to the does not reduce the aggregate value of date the award expires. education awards the transferring individual is considered to have received. § 2530.40 Is there a limit on the num- (b) Impact on Designated Individual. ber of individuals one may des- For the purposes of determining the ignate to receive a transferred value of the transferred education award? award under § 2526.50, a designated indi- (a) General Limitation. For each award vidual will be considered to have re- an individual earns as a result of suc- ceived a value equal to the amount ac- cessfully completing a single term of cepted divided by the amount of a full- service, an individual may transfer all time award in the year the transferring or part of the award to a single des- individual’s position was approved. ignated individual. An individual may (c) Result of revocation on award value. not transfer a single award attrib- If the transferring individual revokes, utable to successful completion of a in whole or in part, a transfer, the single term of service to more than one value of the education award consid- designated individual. ered to have been received by the des- (b) Re-transfer. If a designated indi- ignated individual for purposes of vidual rejects a transferred award in § 2526.50 will be reduced accordingly. full, or the Corporation otherwise determines that a transfer was revoked § 2530.70 Is a designated individual re- for good cause in accordance with quired to accept a transferred education award? § 2530.80(c), the transferring individual may designate another individual to (a) General Rule. A designated indi- receive the transferred award. vidual is not required to accept a transferred education award, and may § 2530.50 Is there a limit on the reject an award in whole or in part. amount of transferred awards a (b) Result of rejection in full. If the designated individual may receive? designated individual rejects a trans- Consistent with § 2526.50, no indi- ferred award in whole, the amount is vidual may receive more than an credited to the transferring individ- amount equal to the value of two full- ual’s account in the National Service time education awards. If the sum of Trust, and may be transferred to an- the value of the requested transfer plus other individual, or may be used by the the aggregate value of education transferring individual for any of the awards a designated individual has pre- purposes listed in § 2528.10, consistent viously received would exceed the ag- with the original time period of avail- gregate value of two full-time edu- ability set forth in § 2526.40(a). cation awards, as determined pursuant (c) Result of rejection in part. If the to § 2526.50(b), the designated individual designated individual rejects a trans- will be deemed to have rejected that ferred award in part, the rejected por- portion of the award that would result tion is credited to the transferring in- in the excess. If a designated individual dividual’s account in the National

690

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00700 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2531.10

Service Trust, and may be used by the count of the transferring individual, transferring individual’s for any of the except as provided in paragraph (c) of purposes listed in § 2528.10, consistent this section. The Corporation will no- with the original time period of avail- tify the transferring individual of the ability set forth in § 2526.40(a). An indi- amount revoked. vidual may not re-transfer the rejected (c) Used awards. A revocation may portion of the award to another indi- only apply to that portion of the trans- vidual. ferred award that has not been used by the designated individual. If the des- § 2530.80 Under what circumstances is ignated individual has used the entire a transfer revocable? transferred amount prior to the date (a) Revocation. An individual may re- the Corporation receives the revoca- voke a transfer at any time and for any tion request, no amount will be re- reason prior to the award’s use by the turned to the transferring individual. designated individual. An amount is considered to be used (b) Use of Award. Upon revocation, when it is disbursed from the National the amount revoked will be deducted Service Trust, not when a request is re- from the designated individual’s ac- ceived to use an award. count and credited to the transferring (d) Notification to designated indi- individual’s account. The transferring vidual. The Corporation will notify the individual may use the revoked trans- designated individual of the amount ferred education award for any of the being revoked as of the date of the Cor- purposes described in § 2528.10, con- poration’s receipt of the revocation re- sistent with the original time period of quest. availability set forth in § 2526.40(a). (e) Timing of revocation. The Corpora- (c) Re-transfer. Generally, an indi- tion must receive the request to revoke vidual may not re-transfer an award to the transfer from the transferring indi- another individual after revoking the vidual prior to the award’s expiration same award from the original des- ten years from the date the award was ignated individual. The Corporation originally earned. may approve re-transfer of an award for good cause, including cases in § 2530.90 Is a designated individual eli- which the original designated indi- gible for the payment of accrued interest under Part 2529? vidual was unavoidably prevented from using the award, as demonstrated by No, an individual must have success- the individual transferring the award. fully completed a term of service in an approved AmeriCorps position or Silver § 2530.85 What steps are necessary to Scholar position to be eligible for the revoke a transfer? payment of accrued interest under Part (a) Request for revocation. Before re- 2529. voking a transfer, the transferring individual must submit a request to the PART 2531—PURPOSES AND AVAIL- Corporation that includes — ABILITY OF GRANTS FOR INVEST- (1) The individual’s written author- MENT FOR QUALITY AND INNO- ization to revoke the award; VATION ACTIVITIES (2) The year in which the award was earned; Sec. (3) The specific amount to be re- 2531.10 What are the purposes of the Invest- voked; and ment for Quality and Innovation activi- (4) The identity of the designated in- ties? dividual. 2531.20 Funding priorities. (b) Credit to transferring individual. AUTHORITY: 42 U.S.C. 12501 et seq. Upon receipt of a request including all required information listed in para- § 2531.10 What are the purposes of the graph (a) of this section, the Corpora- Investment for Quality and Innova- tion will deduct the amount specified tion activities? in the transferring individual’s request Investment for Quality and Innova- from the designated individual’s action activities are designed to develop count and credit the amount to the ac- service infrastructure and improve the

691

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00701 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2531.20 45 CFR Ch. XXV (10–1–11 Edition)

overall quality of national and commu- convert the installations to community service efforts. Specifically, the nity use; and Corporation will support innovative (4) Foster a sense of community pride and model programs that otherwise in the youth in the community. may not be eligible for funding; and (b) Definitions. As used in this sec- support other activities, such as train- tion: (1) Affected military installation. ing and technical assistance, summer The term affected military installation programs, leadership training, re- means a military installation described search, promotion and recruitment, in section 325(e)(1) of the Job Training and special fellowships and awards. The Partnership Act (29 U.S.C. 1662d(e)(1)). Corporation may conduct these activi- (2) Community. The term community ties either directly or through grants includes a county. to or contracts with qualified organiza- (3) Convert to community use. The tions. term convert to community use, used with respect to an affected military in- [59 FR 13806, Mar. 23, 1994. Redesignated at 75 FR 51413, Aug. 20, 2010.] stallation, includes— (i) Conversion of the installation or a § 2531.20 Funding priorities. part of the installation to— The Corporation may choose to set (A) A park; priorities (and to periodically revise (B) A community center; such priorities) that limit the types of (C) A recreational facility; or innovative and model programs and (D) A facility for a Head Start pro- support activities it will undertake or gram under the Head Start Act (42 fund in a given fiscal year. In setting U.S.C. 9831 et seq.); and these priorities, the Corporation will (ii) Carrying out, at the installation, seek to concentrate funds on those ac- a construction or economic develop- tivities that will be most effective and ment project that is of substantial ben- efficient in fulfilling the purposes of efit, as determined by the Chief Execu- this part. tive Officer, to— (A) The community in which the in- [59 FR 13806, Mar. 23, 1994] stallation is located; or (B) A community located within 50 PART 2532—INNOVATIVE AND SPE- miles of the installation or such fur- CIAL DEMONSTRATION PRO- ther distance as the Chief Executive GRAMS Officer may deem appropriate on a case-by-case basis. Sec. (4) Demonstration program. The term 2532.10 Military Installation Conversion demonstration program means a program Demonstration programs. described in paragraph (c) of this sec- 2532.20 Special Demonstration Project for tion. the Yukon-Kuskokwim Delta of Alaska. (c) Demonstration programs—(1) 2532.30 Other innovative and model pro- Grants—The Corporation may make grams. grants to communities and commu- AUTHORITY: 42 U.S.C. 12501 et seq. nity-based agencies to pay for the Fed- SOURCE: 59 FR 13806, Mar. 23, 1994, unless eral share of establishing and carrying otherwise noted. Redesignated at 75 FR 51413, out military installation conversion Aug. 20, 2010 demonstration programs, to assist in converting to community use affected § 2532.10 Military Installation Conver- military installations located— sion Demonstration programs. (i) Within the community; or (a) Purposes. The purposes of this sec- (ii) Within 50 miles of the commu- tion are to: (1) Provide direct and de- nity. monstrable service opportunities for (2) Duration. In carrying out such a economically disadvantaged youth; demonstration program, the commu- (2) Fully utilize military installa- nity or community-based agency may tions affected by closures or realign- carry out— ments; (i) A program of not less than 6 (3) Encourage communities affected months in duration; or by such closures or realignments to (ii) A full-time summer program.

692

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00702 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2532.20

(d) Use of Funds—(1) Stipend. A com- (ii) A proposal for carrying out the munity or community-based agency program that describes the manner in that receives a grant under paragraph which the applicant will— (c) of this section to establish and (A) Provide preservice and inservice carry out a project through a dem- training, for supervisors and partici- onstration program may use the funds pants, that will be conducted by quali- made available through such grant to fied individuals or qualified organiza- pay for a portion of a stipend for the tions; participants in the project. (B) Conduct an appropriate evalua- (2) Limitation on amount of stipend. tion of the program; and The amount of the stipend provided to (C) Provide for appropriate commu- a participant under paragraph (d)(1) of nity involvement in the program; this section that may be paid using as- (iii) Information indicating the dura- sistance provided under this section tion of the program; and and using any other Federal funds may (iv) An assurance that the applicant not exceed the lesser of— will comply with the nonduplication, (i) 85 percent of the total average an- nondisplacement and grievance proce- nual subsistence allowance provided to dure provisions of part 2540 of this VISTA volunteers under section 105 of chapter. the Domestic Volunteer Service Act of (g) Limitation on Grant. In making a 1973 (42 U.S.C. 4955); and grant under paragraph (c) of this sec- (ii) 85 percent of the stipend estab- tion with respect to a demonstration lished by the demonstration program program to assist in converting an af- involved. fected military installation, the Cor- (e) Participants—(1) Eligibility. A per- poration will not make a grant for son will be eligible to be selected as a more than 25 percent of the total cost participant in a project carried out of the conversion. through a demonstration program if the person is— § 2532.20 Special Demonstration (i) Economically disadvantaged and Project for the Yukon-Kuskokwim between the ages of 16 and 24, inclusive; Delta of Alaska. (ii) In the case of a full-time summer (a) Special Demonstration Project for program, economically disadvantaged the Yukon-Kuskokwim Delta of Alaska. and between the ages of 14 and 24; or The President may award grants to, (iii) An eligible youth as described in and enter into contracts with, organi- section 423 of the Job Training Part- zations to carry out programs that ad- nership Act (29 U.S.C. 1693). dress significant human needs in the (2) Participation. Persons desiring to Yukon-Kuskokwim delta region of participate in such a project must Alaska. enter into an agreement with the spon- (b) Application—(1) General require- sor of the project to participate— ments. To be eligible to receive a grant (i) On a full-time or a part-time or enter into a contract under para- basis; and graph (a) of this section with respect to (ii) For the duration referred to in a program, an organization must sub- paragraph (f)(2)(iii) of this section. mit an application to the President at (f) Application—(1) In general. To be such time, in such manner, and con- eligible to receive a grant under para- taining such information as required. graph (c) of this section, a community (2) Contents. The application sub- or community-based agency must submitted by the organization must, at a mit an application to the Chief Execu- minimum— tive Officer at such time, in such man- (i) Include information describing the ner, and containing such information manner in which the program will uti- as the Chief Executive Officer may re- lize VISTA volunteers, individuals who quire. have served in the Peace Corps, and (2) Contents. At a minimum, such ap- other qualified persons, in partnership plication must contain— with the local nonprofit organizations (i) A description of the demonstra- known as the Yukon-Kuskokwim tion program proposed to be conducted Health Corporation and the Alaska Vil- by the applicant; lage Council Presidents;

693

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00703 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2532.30 45 CFR Ch. XXV (10–1–11 Edition)

(ii) Take into consideration— in a manner that results in high-qual- (A) The primarily noncash economy ity service and a positive service expe- of the region; and rience for the participants and volun- (B) The needs and desires of residents teers. of the local communities in the region; (b) Improve ability to apply for assist- and ance. The Corporation will provide (iii) Include specific strategies, devel- training and technical assistance, oped in cooperation with the Yupi’k where necessary, to individuals, pro- speaking population that resides in grams, local labor organizations, State such communities, for comprehensive and intensive community development educational agencies, State Commis- for communities in the Yukon- sions, local educational agencies, local Kuskokwim delta region. governments, community-based agencies, and other entities to enable them § 2532.30 Other innovative and model to apply for funding under one of the programs. national service laws, to conduct high- (a) The Corporation may support quality programs, to evaluate such pro- other innovative and model programs grams, and for other purposes. such as the following: (1) Programs, in- (c) Conferences and materials. The Cor- cluding programs for rural youth, de- poration may organize and hold con- scribed in parts 2515 through 2524 of ferences, and prepare and publish mate- this chapter; rials, to disseminate information and (2) Employer-based retiree programs; promote the sharing of information (3) Intergenerational programs; among programs for the purpose of im- (4) Programs involving individuals proving the quality of programs and with disabilities providing service; projects. (5) Programs sponsored by Governors; (d) Peace Corps and VISTA training. and (6) Summer programs carried out be- The Corporation may provide training tween May 1 and October 1 (which may assistance to selected individuals who also contain a year-round component). volunteer to serve in the Peace Corps (b) The Corporation will support in- or a program authorized under title I of novative service-learning programs. the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.). The training [59 FR 13806, Mar. 23, 1994, as amended at 69 will be provided as part of the course of FR 6181, Feb. 10, 2004] study of the individual at an institution of higher education, involve serv- PART 2533—TECHNICAL ASSIST- ice-learning, and cover appropriate ANCE, TRAINING, AND OTHER skills that the individual will use in SERVICE INFRASTRUCTURE-BUILD- the Peace Corps or VISTA. ING ACTIVITIES (e) Promotion and recruitment. The Corporation may conduct a campaign AUTHORITY: 42 U.S.C. 12657. to solicit funds for the National Serv- ice Trust and other programs and ac- § 2533.10 Eligible activities. tivities authorized under the national The Corporation may support—either service laws and to promote and re- directly or through a grant, contract cruit participants for programs that re- or agreement—any activity designed to ceive assistance under the national meet the purposes described in part service laws. 2531 of this chapter. These activities in- (f) Training. The Corporation may clude, but are not limited to, the fol- support national and regional partici- lowing: (a) Community-based agencies. pant and supervisor training, including The Corporation may provide training leadership training and training in spe- and technical assistance and other as- cific types of service and in building sistance to project sponsors and other the ethic of civic responsibility. community-based agencies that provide volunteer placements in order to (g) Research. The Corporation may improve the ability of such agencies to support research on national service, use participants and other volunteers including service-learning.

694

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00704 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2533.10

(h) Intergenerational support. The Cor- community service programs with poration may assist programs in devel- needs assessments and planning; oping a service component that com- (ii) Conduct research and evaluations bines students, out-of-school youths, concerning community service; and older adults as participants to pro- (iii) Provide leadership development vide needed community services. and training to State and local commu- (i) Planning coordination. The Cor- nity service program administrators, poration may coordinate community- supervisors, and participants; and pro- wide planning among programs and vide training to persons who can pro- projects. vide such leadership development and (j) Youth leadership. The Corporation training; may support activities to enhance the (iv) Facilitate communication among ability of youth and young adults to entities carrying out community serv- play leadership roles in national service programs and participants; ice. (v) Provide information, curriculum (k) National program identity. The Cor- materials, and technical assistance re- poration may support the development lating to planning and operation of and dissemination of materials, includ- community service programs, to States ing training materials, and arrange for and local entities eligible to receive uniforms and insignia, designed to pro- funds under this chapter; mote unity and shared features among (vi) Gather and disseminate informa- programs that receive assistance under tion on successful community service the national service laws. programs, components of such success- (l) Service-learning. The Corporation ful programs, innovative youth skills will support innovative programs and curriculum, and community service activities that promote service-learn- projects; ing. (vii) Coordinate the activities of the (m) National youth service day—(1) clearinghouse with appropriate entities Designation. April 19, 1994, and April 18, to avoid duplication of effort; 1995 are each designated as ‘‘National (viii) Make recommendations to Youth Service Day’’. The President is State and local entities on quality con- authorized and directed to issue a proc- trols to improve the delivery of com- lamation calling on the people of the munity service programs and on United States to observe the day with changes in the programs under this appropriate ceremonies and activities. chapter; and (2) Federal activities. In order to ob- (ix) Carry out such other activities as serve National Youth Service Day at the Chief Executive Officer determines the Federal level, the Corporation may to be appropriate. organize and carry out appropriate (o) Assistance for Head Start. The Cor- ceremonies and activities. poration may make grants to, and (3) Activities. The Corporation may enter into contracts and cooperative make grants to public or private non- agreements with, public or nonprofit profit organizations with demonstrated private agencies and organizations that ability to carry out appropriate activi- receive grants or contracts under the ties, in order to support such activities Foster Grandparent Program (part B of on National Youth Service Day. title II of the Domestic Volunteer (n) Clearinghouses—(1) Authority. The Service Act of 1973 (29 U.S.C. 5011 et Corporation may establish clearing- seq.)), for projects of the type described houses, either directly or through a in section 211(a) of such Act (29 U.S.C. grant or contract. Any service-learning 5011) operating under memoranda of clearinghouse to be established pursu- agreement with the ACTION Agency, ant to part 2518 of this chapter is eligi- for the purpose of increasing the num- ble to apply for a grant under this sec- ber of low-income individuals who pro- tion. In addition, public or private non- vide services under such program to profit organizations are eligible to children who participate in Head Start apply for clearinghouse grants. programs under the Head Start Act (42 (2) Function. A Clearinghouse may U.S.C. 9831 et seq.). perform the following activities: (i) As- (p) Other assistance. The Corporation sist entities carrying out State or local may support other activities that are

695

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00705 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2534 45 CFR Ch. XXV (10–1–11 Edition)

consistent with the purposes described 2540.201 What suitability criteria must I in part 2531 of this chapter. apply to a covered position? 2540.202 What two search components of the [59 FR 13807, Mar. 23, 1994. Redesignated and National Service Criminal History Check amended at 75 FR 51413 and 51415, Aug. 20, must I satisfy to determine an individ- 2010] ual’s suitability to serve in a covered position? PART 2534—SPECIAL ACTIVITIES 2540.203 When must I conduct a State criminal registry check and a National Sex Of- Sec. fender Public Web site check on an indi- 2534.10 National service fellowships. vidual in a covered position? 2534.20 Presidential awards for service. 2540.204 What procedures must I follow in conducting a National Service Criminal AUTHORITY: 42 U.S.C. 12501 et seq. History Check for a covered position? 2540.205 What documentation must I main- § 2534.10 National service fellowships. tain regarding a National Service Crimi- The Corporation may award national nal History Check for a covered position? service fellowships on a competitive 2540.206 Under what circumstances may I basis. follow alternative procedures in conducting a State criminal registry check [69 FR 6181, Feb. 10, 2004. Redesignated at 75 for a covered position? FR 54789, Sept. 9, 2010] 2540.207 Is an individual who refuses to consent to a State criminal registry check, § 2534.20 Presidential awards for serv- or who makes a false statement in con- ice. nection with a grantee’s inquiry con- The President, acting through the cerning the individual’s criminal history, Corporation, may make Presidential eligible to serve in a covered position? awards for service to individuals pro- 2540.208 Under what circumstances may par- viding significant service, and to out- ticipants be engaged? standing programs. Information about 2540.210 What provisions exist to ensure recipients of such awards will be widely that Corporation-supported programs do disseminated. The President may pro- not discriminate in the selection of participants and staff? vide such awards to any deserving indi- 2540.215 What should a program participant, vidual or program, regardless of wheth- staff members, or beneficiary do if the er the individual is serving in a pro- individual believes he or she has been gram authorized by this chapter or subject to illegal discrimination? whether the program is itself author- 2540.220 Under what circumstances and sub- ized by this chapter. In no instance, ject to what conditions are participants however, may the award be a cash in Corporation-assisted projects eligible award. for family and medical leave? 2540.230 What grievance procedures must re- [59 FR 13808, Mar. 23, 1994. Redesignated at 75 cipients of Corporation assistance estab- FR 54789, Sept. 9, 2010] lish?

PART 2540—GENERAL Subpart C—Other Requirements for ADMINISTRATIVE PROVISIONS Recipients of Corporation Assistance

Subpart A—Requirements Concerning the 2540.300 What must be included in annual State reports to the Corporation? Distribution and Use of Corporation As- 2540.310 Must programs that receive Cor- sistance poration assistance establish standards Sec. of conduct? 2540.100 What restrictions govern the use of 2540.320 How are participant benefits treat- Corporation assistance? ed? 2540.110 Limitation on use of Corporation 2540.330 Parental involvement required funds for administrative costs. Subpart D—Suspension and Termination of Subpart B—Requirements Directly Affecting Corporation Assistance the Selection and Treatment of Participants 2540.400 Under what circumstances will the 2540.200 To whom must I apply suitability Corporation suspend or terminate a criteria relating to criminal history? grant or contract?

696

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00706 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2540.100

Subpart E—Restrictions on Use of National Federal public expenditure for that Service Insignia program in the fiscal year that support is to be provided is not less than the 2540.500 What definition applies to this sub- previous fiscal year. part? 2540.510 What are the restrictions on using (b) Religious use. Corporation assist- national service insignia? ance may not be used to provide reli- 2540.520 What are the consequences for un- gious instruction, conduct worship authorized use of the Corporation’s na- services, or engage in any form of pros- tional service insignia? elytization. 2540.530 Are there instances where an insig- (c) Political activity. Corporation as- nia may be used without getting the ap- sistance may not be used by program proval of the Corporation? participants or staff to assist, promote, 2540.540 Who has authority to approve use of national service insignia? or deter union organizing; or finance, 2540.550 Is there an expiration date on ap- directly or indirectly, any activity de- provals for use of national service insig- signed to influence the outcome of a nia? Federal, State or local election to pub- 2540.560 How do I renew authority to use a lic office. national service insignia? (d) Contracts or collective bargaining agreements. Corporation assistance may Subpart F—False or Misleading Statements not be used to impair existing con- 2540.600 What definitions apply to this sub- tracts for services or collective bar- part? gaining agreements. 2540.610 What are the consequences of mak- (e) Nonduplication. Corporation as- ing a false or misleading statement? sistance may not be used to duplicate 2540.620 What are my rights if the Corpora- an activity that is already available in tion determines that I have made a false the locality of a program. And, unless or misleading statement? the requirements of paragraph (f) of 2540.630 What information must I provide to contest a proposed action? this section are met, Corporation as- 2540.640 When will the reviewing official sistance will not be provided to a pri- make a decision on the proposed action? vate nonprofit entity to conduct activi- 2540.650 How may I contest a reviewing offi- ties that are the same or substantially cial’s decision to uphold the proposed ac- equivalent to activities provided by a tion? State or local government agency in 2540.660 If the final decision determines that which such entity resides. I received a financial benefit improperly, (f) Nondisplacement. (1) An employer will I be required to repay that benefit? 2540.670 Will my qualification to participate may not displace an employee or posi- or eligibility for benefits be suspended tion, including partial displacement during the review process? such as reduction in hours, wages, or employment benefits, as a result of the AUTHORITY: E.O. 13331, 69 FR 9911; 18 U.S.C. 506, 701, 1017; 42 U.S.C. 12653, 12631–12637; 42 use by such employer of a participant U.S.C. 5065. in a program receiving Corporation assistance. SOURCE: 59 FR 13808, Mar. 23, 1994, unless (2) An organization may not displace otherwise noted. a volunteer by using a participant in a program receiving Corporation assist- Subpart A—Requirements Con- ance. cerning the Distribution and (3) A service opportunity will not be Use of Corporation Assist- created under this chapter that will in- ance fringe in any manner on the promotional opportunity of an employed § 2540.100 What restrictions govern individual. the use of Corporation assistance? (4) A participant in a program receiv- (a) Supplantation. Corporation assisting Corporation assistance may not ance may not be used to replace State perform any services or duties or en- and local public funds that had been gage in activities that would otherwise used to support programs of the type be performed by an employee as part of eligible to receive Corporation support. the assigned duties of such employee. For any given program, this condition (5) A participant in any program re- will be satisfied if the aggregate non- ceiving assistance under this chapter

697

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00707 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2540.110 45 CFR Ch. XXV (10–1–11 Edition)

may not perform any services or du- matching requirements under the Cor- ties, or engage in activities, that— poration’s award; (i) Will supplant the hiring of em- (ii) Specify that a fixed rate of five ployed workers; or percent or less (not subject to sup- (ii) Are services, duties, or activities porting cost documentation) of total with respect to which an individual has Corporation funds expended may be recall rights pursuant to a collective used to pay for administrative costs, bargaining agreement or applicable provided that the fixed rate is in con- personnel procedures. junction with an overall 15 percent ad- (6) A participant in any program re- ministrative cost factor to be used for ceiving assistance under this chapter organizations that do not have estab- may not perform services or duties lished indirect cost rates; or that have been performed by or were assigned to any— (iii) Utilize such other method that (i) Presently employed worker; the Corporation determines in writing (ii) Employee who recently resigned is consistent with OMB guidance and or was discharged; other applicable requirements, helps (iii) Employee who is subject to a re- minimize the burden on grantees or duction in force or who has recall subgrantees, and is beneficial to grant- rights pursuant to a collective bar- ees or subgrantees and the Federal gaining agreement or applicable per- Government. sonnel procedures; (b) Costs attributable to administra- (iv) Employee who is on leave (ter- tive functions as well as program func- minal, temporary, vacation, emer- tions should be prorated between ad- gency, or sick); or ministrative costs and program costs. (v) Employee who is on strike or who is being locked out. [63 FR 18138, Apr. 14, 1998] [59 FR 13808, Mar. 23, 1994, as amended at 70 FR 39607, July 8, 2005] Subpart B—Requirements Directly Affecting the Selection and § 2540.110 Limitation on use of Cor- Treatment of Participants poration funds for administrative costs. § 2540.200 To whom must I apply suit- (a)(1) Not more than five percent of ability criteria relating to criminal the grant funds provided under 45 CFR history? 2516, 2517, 2519, and 2521 for any fiscal You must apply suitability criteria year may be used to pay for adminis- relating to criminal history to an indi- trative costs, as defined in § 2510.20 of vidual applying for, or serving in, a po- this chapter. sition for which an individual receives (2) The distribution of administrative a Corporation grant-funded living al- costs between the grant and any lowance, stipend, education award, sal- subgrant will be subject to the ap- ary, or other remuneration. proval of the Corporation. (3) In applying the limitation on ad- [72 FR 48582, Aug. 24, 2007, as amended at 74 ministrative costs the Corporation will FR 46507, Sept. 10, 2009] approve one of the following methods in the award document: § 2540.201 What suitability criteria (i) Limit the amount or rate of indi- must I apply to a covered position? rect costs that may be paid with Cor- An individual is ineligible to serve in poration funds under a grant or a covered position if the individual: subgrant to five percent of total Cor- (a) Is registered, or required to be poration funds expended, provided registered, on a State sex offender reg- that— istry or the National Sex Offender Reg- (A) Organizations that have an estab- istry; or lished indirect cost rate for Federal (b) Has been convicted of murder, as awards will be limited to this method; defined in section 1111 of title 18, and United States Code. (B) Unreimbursed indirect costs may be applied to meeting operational [74 FR 46507, Sept. 10, 2009]

698

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00708 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2540.205

§ 2540.202 What two search compo- or is hired by, your program on or after nents of the National Service Crimi- October 1, 2009. nal History Check must I satisfy to (c) For an individual who serves con- determine an individual’s suit- secutive terms of service in your pro- ability to serve in a covered posi- gram with a break in service of no tion? more than 30 days, no additional check Unless the Corporation approves an is required after the first term. alternative screening protocol, in de- [72 FR 48582, Aug. 24, 2007, as amended at 74 termining an individual’s suitability to FR 46507, Sept. 10, 2009] serve in a covered position, you are responsible for conducting and docu- § 2540.204 What procedures must I fol- menting a National Service Criminal low in conducting a National Serv- History Check, which consists of the ice Criminal History Check for a following two search components: covered position? (a) State criminal registry search. A You are responsible for following search (by name or fingerprint) of the these procedures: State criminal registry for the State in (a) Verify the individual’s identity by which your program operates and the examining the individual’s govern- State in which the individual resides at ment-issued photo identification card, the time of application; and such as a driver’s license; (b) National Sex Offender Public Reg- (b) Obtain prior, written authoriza- istry. A name-based search of the De- tion for the State criminal registry partment of Justice (DOJ) National check and the appropriate sharing of Sex Offender Public Registry (NSOPR). the results of that check within the program from the individual (but not [72 FR 48582, Aug. 24, 2007] for the NSOPR check); (c) Document the individual’s under- § 2540.203 When must I conduct a standing that selection into the pro- State criminal registry check and a gram is contingent upon the organiza- National Sex Offender Public Web tion’s review of the individual’s crimi- site check on an individual in a cov- nal history, if any; ered position? (d) Provide a reasonable opportunity (a) The State criminal registry check for the individual to review and chal- must be conducted on Foster Grand- lenge the factual accuracy of a result parents, Senior Companions, and before action is taken to exclude the AmeriCorps State and National partici- individual from the position; pants and grant-funded staff with re- (e) Provide safeguards to ensure the curring access to children, persons age confidentiality of any information re- 60 or older, or individuals with disabil- lating to the criminal history check, ities, who enroll in, or are hired by, consistent with authorization provided your program after November 23, 2007. by the applicant; and For all other covered individuals, the (f) Ensure that an individual, for State criminal registry check must be whom the results of a required State conducted on an individual who enrolls criminal registry check are pending, is in, or is hired by, your program on or not permitted to have access to chil- after October 1, 2009. dren, persons age 60 and older, or indi- (b) The National Sex Offender Public viduals with disabilities without being Web site check must be conducted on accompanied by an authorized program an individual who is serving, or applies representative who has previously been to serve, as a Foster Grandparent, Sen- cleared for such access. ior Companion, or AmeriCorps State [72 FR 48582, Aug. 24, 2007] and National participant or grant-funded staff with recurring access to chil- § 2540.205 What documentation must I dren, persons age 60 or older, or indi- maintain regarding a National viduals with disabilities on or after No- Service Criminal History Check for vember 23, 2007. For all other covered a covered position? individuals, the National Sex Offender You must: Public Web site check must be con- (a) Document in writing that you ducted on an individual who enrolls in, verified the identity of the individual

699

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00709 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2540.206 45 CFR Ch. XXV (10–1–11 Edition)

in a covered position by examining the § 2540.207 Is an individual who refuses individual’s government-issued photo to consent to a State criminal reg- identification card, and that you con- istry check, or who makes a false ducted the required checks for the cov- statement in connection with a ered position; and grantee’s inquiry concerning the in- (b) Maintain the results of the Na- dividual’s criminal history, eligible tional Service Criminal History check to serve in a covered position? (unless precluded by State law) and An individual who refuses to consent document in writing that you consid- to a State criminal registry check, or ered the results in selecting the indi- who makes a false statement in con- vidual. nection with a grantee’s inquiry concerning the individual’s criminal his- [72 FR 48582, Aug. 24, 2007] tory, is not eligible to serve in a cov- § 2540.206 Under what circumstances ered position. may I follow alternative procedures in conducting a State criminal reg- [72 FR 48582, Aug. 24, 2007] istry check for a covered position? § 2540.208 Under what circumstances (a) FBI fingerprint-based check. If you may participants be engaged? conduct and document a fingerprint- based criminal history check through A State may not engage a partici- the Federal Bureau of Investigation, pant to serve in any program that re- you will be deemed to have satisfied ceives Corporation assistance unless the State criminal registry check re- and until amounts have been appro- quirement and do not need separate ap- priated under section 501 of the Act (42 proval by the Corporation. U.S.C. 12681) for the provision of (b) Name-based search. If you conduct AmeriCorps educational awards and for and document a name-based criminal the payment of other necessary ex- history check through a source other penses and costs associated with such than the FBI that includes a check of participant. the criminal records repository in the [59 FR 13808, Mar. 23, 1994. Redesignated at 72 State in which your program is oper- FR 48582, Aug. 24, 2007] ating, as well as in the State in which the applicant lives, you will be deemed § 2540.210 What provisions exist to en- to have satisfied the State criminal sure that Corporation-supported registry check requirement and do not programs do not discriminate in the need separate approval by the Corpora- selection of participants and staff? tion. (a) An individual with responsibility (c) Alternative search approval. If you for the operation of a project that re- demonstrate that you are prohibited or ceives Corporation assistance must not otherwise precluded under State law discriminate against a participant in, from complying with a Corporation re- or member of the staff of, such project quirement relating to criminal history on the basis of race, color, national ori- checks or that you can obtain substan- gin, sex, age, or political affiliation of tially equivalent or better information such participant or member, or on the through an alternative process, the basis of disability, if the participant or Corporation will consider approving an member is a qualified individual with a alternative search protocol that you disability. submit in writing to the Corporation’s (b) Any Corporation assistance con- Office of Grants Management. The Of- stitutes Federal financial assistance fice of Grants Management will review for purposes of title VI of the Civil the alternative protocol to ensure that Rights Act of 1964 (42 U.S.C. 2000d et it: seq.), title IX of the Education Amend- (1) Verifies the identity of the indi- ments of 1972 (20 U.S.C. 1681 et seq.), vidual; and section 504 of the Rehabilitation Act of (2) Includes a search of an alternative 1973 (29 U.S.C. 794), and the Age Dis- criminal database that is sufficient to crimination Act of 1975 (42 U.S.C. 6101 identify the existence, or absence of, et seq.), and constitutes Federal finan- criminal offenses. cial assistance to an education pro- [72 FR 48582, Aug. 24, 2007] gram or activity for purposes of the

700

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00710 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2540.220

Education Amendments of 1972 (20 in a State, local, or private nonprofit U.S.C. 1681 et seq.). program receiving support from the (c) An individual with responsibility Corporation is considered an eligible for the operation of a project that re- employee of the program’s project ceives Corporation assistance may not sponsor under the Family and Medical discriminate on the basis of religion Leave Act of 1993 (29 CFR part 825) if— against a participant in such project or (1) The participant has served for at a member of the staff of such project least 12 months and 1,250 hours during who is paid with Corporation funds. the year preceding the start of the This provision does not apply to the leave; and employment (with Corporation assist- (2) The program’s project sponsors ance) of any staff member of a Corpora- engages in commerce or any industry tion-supported project who was em- or activity affecting commerce, and ployed with the organization operating employs at least 50 employees for each the project on the date the Corporation working day during 20 or more cal- grant was awarded. endar workweeks in the current or pre- (d) Grantees must notify all program ceding calendar year. participants, staff, applicants, and (b) Participants in Federal programs. beneficiaries of: Participants in Federal programs oper- (1) Their rights under applicable fed- ated by the Corporation or by another eral nondiscrimination laws, including Federal agency will be considered Fed- relevant provisions of the national eral employees for the purposes of the service legislation and implementing Family and Medical Leave Act if the regulations; and participants have completed 12 months (2) The procedure for filing a dis- of service and the project sponsor is an crimination complaint with the Cor- employing agency as defined in 5 U.S.C poration’s Office of Civil Rights and In- 6381 et seq.; such participants therefore clusiveness. will be eligible for the same family and [59 FR 13808, Mar. 23, 1994, as amended at 73 medical leave benefits afforded to such FR 53760, Sept. 17, 2008] Federal employees. (c) General terms and conditions. Par- § 2540.215 What should a program participants that qualify as eligible em- ticipant, staff members, or bene- ployees under paragraphs (a) or (b) of ficiary do if the individual believes this section are entitled to take up to he or she has been subject to illegal 12 weeks of unpaid leave during a 12 discrimination? month period for any of the following A program participant, staff member, reasons (in the cases of both para- or beneficiary who believes that he or graphs (c)(1) and (2) of this section the she has been subject to illegal discrimi- entitlement to leave expires 12 months nation should contact the Corpora- after the birth or placement of such tion’s Office of Civil Rights and Inclu- child): (1) The birth of a child to a par- siveness, which offers an impartial dis- ticipant; crimination complaint resolution proc- (2) The placement of a child with a ess. Participation in a discrimination participant for adoption or foster care; complaint resolution process is pro- (3) The serious illness of a partici- tected activity; a grantee is prohibited pant’s spouse, child or parent; or from retaliating against an individual (4) A participant’s serious health con- for making a complaint or partici- dition that makes that participant un- pating in any manner in an investiga- able to perform his or her essential tion, proceeding, or hearing. service duties (a serious health condi- [73 FR 53760, Sept. 17, 2008] tion is an illness or condition that requires either inpatient care or con- § 2540.220 Under what circumstances tinuing treatment by a health care pro- and subject to what conditions are vider). participants in Corporation-as- (d) Intermittent leave or reduced serv- sisted programs eligible for family ice. The program, serving as the project and medical leave? sponsor, may allow a participant to (a) Participants in State, local, or pri- take intermittent leave or reduce his vate nonprofits programs. A participant or her service hours due to the birth of

701

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00711 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2540.230 45 CFR Ch. XXV (10–1–11 Edition)

or placement of a child for adoption or § 2540.230 What grievance procedures foster care. The participant may also must recipients of Corporation as- take leave to care for a seriously ill sistance establish? immediate family member or may take State and local applicants that re- leave due to his or her own serious ill- ceive assistance from the Corporation ness whenever it is medically nec- must establish and maintain a proce- essary. dure for the filing and adjudication of (e) Alternate placement. If a partici- grievances from participants, labor or- pant requests intermittent leave or a ganizations, and other interested indi- reduced service hours due to a serious viduals concerning programs that re- illness or a family member’s sickness, ceive assistance from the Corporation. and the need for leave is foreseeable A grievance procedure may include dis- based on planned medical treatment, pute resolution programs such as medi- the program, or project sponsor may ation, facilitation, assisted negotiation temporarily transfer the participant to and neutral evaluation. If the griev- an alternative service position if the ance alleges fraud or criminal activity, participant: (1) Is qualified for the posi- it must immediately be brought to the tion; and attention of the Corporation’s inspec- (2) Receives the same benefits such as tor general. stipend or living allowance and the po- (a) Alternative dispute resolution. (1) sition better accommodates the par- The aggrieved party may seek resolu- ticipants recurring periods of leave. tion through alternative means of dis- (f) Certification of cause. A program, pute resolution such as mediation or or project sponsor may require that the facilitation. Dispute resolution pro- participant support a leave request ceedings must be initiated within 45 with a certification from the health calendar days from the date of the al- care provider of the participant or the leged occurrence. At the initial session participant’s family member. If a proof the dispute resolution proceedings, gram sponsor requests a certification, the party must be advised in writing of the participant must provide it in a his or her right to file a grievance and timely manner. right to arbitration. If the matter is re- (g) Continuance of coverage. (1) If a solved, and a written agreement is State, local or private program pro- reached, the party will agree to forego vides for health insurance for the full- filing a grievance in the matter under time participant, the sponsor must consideration. continue to provide comparable health (2) If mediation, facilitation, or other coverage at the same level and condi- dispute resolution processes are se- tions that coverage would have been lected, the process must be aided by a provided for the duration of the par- neutral party who, with respect to an ticipant’s leave. issue in controversy, functions specifi- (2) If the Federal program provides cally to aid the parties in resolving the health insurance coverage for the full- matter through a mutually achieved time participant, the sponsor must also and acceptable written agreement. The continue to provide the same health neutral party may not compel a resolu- care coverage for the duration of the tion. Proceedings before the neutral participant’s leave. party must be informal, and the rules (h) Failure to return. If the partici- of evidence will not apply. With the ex- pant fails to return to the program at ception of a written and agreed upon the end of leave for any reason other dispute resolution agreement, the pro- than continuation, recurrence or onset ceeding must be confidential. of a serious health condition or other (b) Grievance procedure for unresolved circumstances beyond his or her con- complaints. If the matter is not resolved trol, the program may recover the pre- within 30 calendar days from the date mium that he or she paid during any the informal dispute resolution process period of unpaid leave. began, the neutral party must again in- (i) Applicability to term of service. Any form the aggrieving party of his or her absence, due to family and medical right to file a formal grievance. In the leave, will not be counted towards the event an aggrieving party files a griev- participant’s term of service. ance, the neutral may not participate

702

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00712 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2540.300

in the formal complaint process. In ad- (e) Suspension of placement. If a griev- dition, no communication or pro- ance is filed regarding a proposed ceedings of the informal dispute resolu- placement of a participant in a pro- tion process may be referred to or in- gram that receives assistance under troduced into evidence at the grievance this chapter, such placement must not and arbitration hearing. Any decision be made unless the placement is con- by the neutral party is advisory and is sistent with the resolution of the griev- not binding unless both parties agree. ance. (c) Time limitations. Except for a (f) Remedies. Remedies for a grievance grievance that alleges fraud or crimi- filed under a procedure established by a nal activity, a grievance must be made recipient of Corporation assistance no later than one year after the date of may include— the alleged occurrence. If a hearing is (1) Prohibition of a placement of a held on a grievance, it must be con- participant; and ducted no later than 30 calendar days (2) In grievance cases where there is after the filing of such grievance. A de- a violation of nonduplication or non- cision on any such grievance must be displacement requirements and the em- made no later than 60 calendar days ployer of the displaced employee is the after the filing of the grievance. recipient of Corporation assistance— (d) Arbitration—(1) Arbitrator—(i) Joint (i) Reinstatement of the employee to selection by parties. If there is an ad- the position he or she held prior to the verse decision against the party who displacement; filed the grievance, or 60 calendar days (ii) Payment of lost wages and bene- after the filing of a grievance no deci- fits; sion has been reached, the filing party (iii) Re-establishment of other rel- may submit the grievance to binding evant terms, conditions and privileges arbitration before a qualified arbi- of employment; and trator who is jointly selected and inde- (iv) Any other equitable relief that is pendent of the interested parties. necessary to correct any violation of (ii) Appointment by Corporation. If the the nonduplication or nondisplacement parties cannot agree on an arbitrator requirements or to make the displaced within 15 calendar days after receiving employee whole. a request from one of the grievance (g) Suspension or termination of assist- parties, the Corporations Chief Execu- ance. The Corporation may suspend or tive Officer will appoint an arbitrator terminate payments for assistance from a list of qualified arbitrators. under this chapter. (2) Time Limits—(i) Proceedings. An ar- (h) Effect of noncompliance with arbi- bitration proceeding must be held no tration. A suit to enforce arbitration later than 45 calendar days after the awards may be brought in any Federal request for arbitration, or, if the arbi- district court having jurisdiction over trator is appointed by the Chief Execu- the parties without regard to the tive Officer, the proceeding must occur amount in controversy or the parties’ no later than 30 calendar days after the citizenship. arbitrator’s appointment. (ii) Decision. A decision must be made Subpart C—Other Requirements by the arbitrator no later than 30 cal- for Recipients of Corporation endar days after the date the arbitra- Assistance tion proceeding begins. (3) The cost. The cost of the arbitra- § 2540.300 What must be included in tion proceeding must be divided evenly annual State reports to the Cor- between the parties to the arbitration. poration? If, however, a participant, labor organi- (a) In general. Each State receiving zation, or other interested individual assistance under this title must pre- prevails under a binding arbitration pare and submit, to the Corporation, proceeding, the State or local appli- an annual report concerning the use of cant that is a party to the grievance assistance provided under this chapter must pay the total cost of the pro- and the status of the national and com- ceeding and the attorney’s fees of the munity service programs in the State prevailing party. that receive assistance under this

703

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00713 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2540.310 45 CFR Ch. XXV (10–1–11 Edition)

chapter. A State’s annual report must ian’s permission for such transpor- include information that demonstrates tation, consistent with State law. the State’s compliance with the requirements of this chapter. [74 FR 46507, Sept. 10, 2009] (b) Local grantees. Each State may require local grantees that receive assist- Subpart D—Suspension and Termi- ance under this chapter to supply such nation of Corporation Assist- information to the State as is nec- ance essary to enable the State to complete the report required under paragraph (a) § 2540.400 Under what circumstances of this section, including a comparison will the Corporation suspend or ter- of actual accomplishments with the minate a grant or contract? goals established for the program, the (a) Suspension of a grant or contract. number of participants in the program, In emergency situations, the Corpora- the number of service hours generated, tion may suspend a grant or contract and the existence of any problems, for not more than calendar 30 days. Ex- delays or adverse conditions that have amples of such situations may include, affected or will affect the attainment but are not limited to: (1) Serious risk of program goals. to persons or property; (c) Availability of report. Reports submitted under paragraph (a) of this sec- (2) Violations of Federal, State or tion must be made available to the local criminal statutes; and public on request. (3) Material violation(s) of the grant or contract that are sufficiently seri- § 2540.310 Must programs that receive ous that they outweigh the general pol- Corporation assistance establish icy in favor of advance notice and op- standards of conduct? portunity to show cause. Yes. Programs that receive assist- (b) Termination of a grant or contract. ance under this title must establish The Corporation may terminate or re- and stringently enforce standards of voke assistance for failure to comply conduct at the program site to promote with applicable terms and conditions of proper moral and disciplinary condi- this chapter. However, the Corporation tions. must provide the recipient reasonable notice and opportunity for a full and § 2540.320 How are participant bene- fair hearing, subject to the following fits treated? conditions: (1) The Corporation will no- Section 142(b) of the Job Training tify a recipient of assistance by letter Partnership Act (29 U.S.C. 1552(b)) shall or telegram that the Corporation in- apply to the programs conducted under tends to terminate or revoke assist- this chapter as if such programs were ance, either in whole or in part, unless conducted under the Job Training the recipient shows good cause why Partnership Act (29 U.S.C. 1501 .). et seq such assistance should not be termi- § 2540.330 Parental involvement re- nated or revoked. In this communica- quired tion, the grounds and the effective date for the proposed termination or revoca- (a) Consultation Requirement. Pro- grams that receive assistance under tion will be described. The recipient the national service laws shall consult will be given at least 7 calendar days to with the parents or legal guardians of submit written material in opposition children in developing and operating to the proposed action. programs that include and serve chil- (2) The recipient may request a hear- dren. ing on a proposed termination or rev- (b) Parental Permission. Programs ocation. Providing five days notice to that receive assistance under the na- the recipient, the Corporation may au- tional service laws must, before trans- thorize the conduct of a hearing or porting minor children, provide the other meetings at a location conven- children’s parents or legal guardians ient to the recipient to consider the with the reason for the transportation proposed suspension or termination. A and obtain the parent’s or legal guard- transcript or recording must be made

704

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00714 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2540.610

of a hearing conducted under this sec- § 2540.540 Who has authority to ap- tion and be available for inspection by prove use of national service insig- any individual. nia? Approval for limited uses may be pro- Subpart E—Restrictions on Use of vided through the terms of a written National Service Insignia grant or other agreement. All other uses must be approved in writing by the director of the Corporation’s Office SOURCE: 73 FR 53761, Sept. 17, 2008, unless of Public Affairs, or his or her des- otherwise noted. ignee.

§ 2540.500 What definition applies to § 2540.550 Is there an expiration date this subpart? on approvals for use of national National Service Insignia. For this sub- service insignia? part, national service insignia means the The approval to use a national serv- former and current seal, logos, names, ice insignia will expire as determined or symbols of the Corporation’s pro- in writing by the director of the Office grams, products, or services, including of Public Affairs, or his or her des- those for AmeriCorps, VISTA, Learn ignee. However, the authority to use an and Serve America, Senior Corps, Fos- insignia may be revoked at any time if the Corporation determines that the ter Grandparents, the Senior Com- use involved is injurious to the image panion Program, the Retired and Sen- of the Corporation or if there is a fail- ior Volunteer Program, the National ure to comply with the terms and con- Civilian Community Corps, and any ditions of the authorization. other program or project that the Cor- poration administers. § 2540.560 How do I renew authority to use a national service insignia? § 2540.510 What are the restrictions on Requests for renewed authority to using national service insignia? use an insignia must follow the proce- The national service insignia are dures for initial approval as set out in owned by the Corporation and only § 2540.540. may be used as authorized. The national service insignia may not be used Subpart F—False or Misleading by non-federal entities for fundraising Statements purposes or in a manner that suggests Corporation endorsement. SOURCE: 73 FR 53761, Sept. 17, 2008, unless otherwise noted. § 2540.520 What are the consequences for unauthorized use of the Cor- § 2540.600 What definitions apply to poration’s national service insignia? this subpart? Any person who uses the national You. For this subpart, you refers to a service insignia without authorization participant in a national service pro- may be subject to legal action for gram. trademark infringement, enjoined from continued use, and, for certain types of § 2540.610 What are the consequences of making a false or misleading unauthorized uses, other civil or crimi- statement? nal penalties may apply. If it is determined that you made a § 2540.530 Are there instances where false or misleading statement in con- an insignia may be used without nection with your eligibility for a ben- getting the approval of the Cor- efit from, or qualification to partici- poration? pate in, a Corporation-funded program, it may result in the revocation of the All uses of the national service insig- qualification or forfeiture of the ben- nia require the written approval of the efit. Revocation and forfeiture under Corporation. this part are in addition to any other remedy available to the Federal Gov- ernment under the law against persons

705

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00715 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2540.620 45 CFR Ch. XXV (10–1–11 Edition)

who make false or misleading state- tunity to request an additional pro- ments in connection with a Federally- ceeding. A Corporation program direc- funded program. tor or designee will conduct a review of the complete record, including such ad- § 2540.620 What are my rights if the ditional relevant documents you sub- Corporation determines that I have mit. If deemed appropriate, such as made a false or misleading state- where there are material facts in gen- ment? uine dispute, the program director or If the Corporation determines that designee may conduct a telephonic or you have made a false or misleading in person meeting. If a meeting is con- statement in connection with your eli- ducted, it will be recorded and you will gibility for a benefit from, or qualifica- be provided a copy of the recording. tion to participate in, a Corporation- The program director or designee will funded program, you will be hand deliv- issue a decision within 30 days of the ered a written notice, or sent a written conclusion of the review of the record notice to your last known street ad- or meeting. The decision of the pro- dress or e-mail address or that of your gram director or designee is final and identified counsel at least 15 days be- cannot be appealed further within the fore any proposed action is taken. The agency. notice will include the facts surrounding the determination and the ac- § 2540.660 If the final decision deter- tion the Corporation proposes to take. mines that I received a financial The notice will also identify the re- benefit improperly, will I be reviewing official in your case and pro- quired to repay that benefit? vide other pertinent information. You If it is determined that you received will be allowed to show good cause as a financial benefit improperly, you to why forfeiture, revocation, the de- may be required to reimburse the pro- nial of a benefit, or other action should gram for that benefit. not be implemented. You will be given 10 calendar days to submit written ma- § 2540.670 Will my qualification to par- terials in opposition to the proposed ticipate or eligibility for benefits be action. suspended during the review process? § 2540.630 What information must I If the reviewing official determines provide to contest a proposed ac- that, based on the information avail- tion? able, there is a reasonable likelihood Your written response must include that you will be determined disquali- specific facts that contradict the state- fied or ineligible, your qualification or ments made in the notice of proposed eligibility may be suspended, pending action. A general statement of denial is issuance of a final decision, to protect insufficient to raise a dispute over the the public interest. facts material to the proposed action. Your response should also include cop- PART 2541—UNIFORM ADMINIS- ies of any documents that support your TRATIVE REQUIREMENTS FOR argument. GRANTS AND COOPERATIVE § 2540.640 When will the reviewing of- AGREEMENTS TO STATE AND ficial make a decision on the pro- LOCAL GOVERNMENTS posed action? The reviewing official will issue a de- Subpart A—General cision within 45 days of receipt of your Sec. response. 2541.10 Purpose and scope of this part. 2541.20 Scope of subpart. § 2540.650 How may I contest a review- 2541.30 Definitions. ing official’s decision to uphold the 2541.40 Applicability. proposed action? 2541.50 Effect on other issuances. If the Corporation’s reviewing offi- 2541.60 Additions and exceptions. cial concludes that the proposed ac- Subpart B—Pre-Award Requirements tion, in full or in part, should still be implemented, you will have an oppor- 2541.100 Forms for applying for grants.

706

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00716 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.30

2541.110 State plans. for control of exceptions from this 2541.120 Special grant or subgrant condi- part. tions for ‘‘high-risk’’ grantees. § 2541.30 Definitions. Subpart C—Post Award Requirements The following definitions apply to 2541.200 Standards for financial manage- terms used in this part. ment systems. Accrued expenditures. The term ac- 2541.210 Payment. crued expenditures means the charges 2541.220 Allowable costs. incurred by the grantee during a given 2541.230 Period of availability of funds. period requiring the provision of funds 2541.240 Matching or cost sharing. for: 2541.250 Program income. (1) Goods and other tangible property 2541.260 Non-Federal audit. received; Subpart D—Changes, Property and (2) Services performed by employees, Subawards contractors, subgrantees, subcontractors, and other payees; and 2541.300 Changes. (3) Other amounts becoming owed 2541.310 Real property. under programs for which no current 2541.320 Equipment. services or performance is required, 2541.330 Supplies. such as annuities, insurance claims, 2541.340 Copyrights. and other benefit payments. 2541.350 Subawards to debarred and suspended parties. Accrued income. The term accrued in- 2541.360 Procurement. come means the sum of: 2541.370 Subgrants. (1) Earnings during a given period from services performed by the grantee Subpart E—Reports, Records, Retention and goods and other tangible property and Enforcement delivered to purchasers; and (2) Amounts becoming owed to the 2541.400 Monitoring and reporting program grantee for which no current services performance. 2541.410 Financial reporting. or performance is required by the 2541.420 Retention and access requirements grantee. for records. Acquisition cost. The term acquisition 2541.430 Enforcement. cost of an item of purchased equipment 2541.440 Termination for convenience. means the net invoice unit price of the property including the cost of modi- Subpart F—After the Grant Requirements fications, attachments, accessories, or 2541.500 Closeout. auxiliary apparatus necessary to make 2541.510 Later disallowances and adjust- the property usable for the purpose for ments. which it was acquired. Other charges 2541.520 Collection of amounts due. such as the cost of installation, transportation, taxes, duty or protective in- AUTHORITY: 42 U.S.C. 4950 et seq. and 12501 et seq. transit insurance, shall be included or excluded from the unit acquisition cost SOURCE: 59 FR 41598, Aug. 12, 1994, unless in accordance with the grantee’s reg- otherwise noted. ular accounting practices. Administrative requirements. The term Subpart A—General administrative requirements means those matters common to grants in general, § 2541.10 Purpose and scope of this such as financial management, kinds part. and frequency of reports, and retention This part establishes uniform admin- of records. These are distinguished istrative rules for Federal grants and from ‘‘programmatic’’ requirements, cooperative agreements and subawards which concern matters that can be to State, local and Indian tribal gov- treated only on a program-by-program ernments. or grant-by-grant basis, such as kinds of activities that can be supported by § 2541.20 Scope of subpart. grants under a particular program. This subpart contains general rules Awarding agency. The term awarding pertaining to this part and procedures agency means:

707

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00717 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.30 45 CFR Ch. XXV (10–1–11 Edition)

(1) With respect to a grant, the Fed- other organized group or community eral agency; and (including any Native village as de- (2) With respect to a subgrant, the fined in section 3 of the Alaska Native party that awarded the subgrant. Claims Settlement Act, 85 Stat. 688) Cash contributions. The term cash con- certified by the Secretary of the Inte- tributions means the grantee’s cash out- rior as eligible for the special programs lay, including the outlay of money con- and services provided by him through tributed to the grantee or subgrantee the Bureau of Indian Affairs. by other public agencies and institu- Government. The term government tions, and private organizations and in- means a State or local government or a dividuals. When authorized by Federal federally recognized Indian tribal gov- legislation, Federal funds received ernment. from other assistance agreements may Grant. The term grant means an be considered as grantee or subgrantee award of financial assistance, including cash contributions. Contract. The term contract means cooperative agreements, in the form of (except as used in the definitions for money, or property in lieu of money, ‘‘grant’’ and ‘‘subgrant’’ in this section by the Federal Government to an eligi- and except where qualified by ‘‘Fed- ble grantee. The term does not include eral’’) a procurement contract under a technical assistance which provides grant or subgrant, and means a pro- services instead of money, or other as- curement subcontract under a con- sistance in the form of revenue shar- tract. ing, loans, loan guarantees, interest Cost sharing (or matching). The term subsidies, insurance, or direct appro- cost sharing (or matching) means the priations. Also, the term does not in- value of the third party in-kind con- clude assistance, such as a fellowship tributions and the portion of the costs or other lump sum award, which the of a federally assisted project or pro- grantee is not required to account for. gram not borne by the Federal Govern- Grantee. The term grantee means the ment. government to which a grant is award- Cost-type contract. The term cost-type ed and which is accountable for the use contract means a contract or sub- of the funds provided. The grantee is contract under a grant in which the the entire legal entity even if only a contractor or subcontractor is paid on particular component of the entity is the basis of the costs it incurs, with or designated in the grant award docu- without a fee. ment. Equipment. The term equipment means Local government. The term local gov- tangible, nonexpendable, personal ernment means a county, municipality, property having a useful life of more city, town, township, local public au- than one year and an acquisition cost thority (including any public and In- of $5,000 or more per unit. A grantee dian housing agency under the United may use its own definition of equipment provided that such definition States Housing Act of 1937 (42 U.S.C. would at least include all equipment 1401 et seq.) school district, special dis- mentioned in this definition. trict, intrastate district, council of Expenditure report. The term expendi- governments (whether or not incor- ture report means: porated as a nonprofit corporation (1) For nonconstruction grants, the under state law), any other regional or SF–269 ‘‘Financial Status Report’’ (or interstate government entity, or any other equivalent report); agency or instrumentality of a local (2) for construction grants, the SF– government. 271 ‘‘Outlay Report and Request for Re- Obligations. The term obligations imbursement’’ (or other equivalent re- means the amounts of orders placed, port). contracts and subgrants awarded, Federally recognized Indian tribal gov- goods and services received, and simi- ernment. The term federally recognized lar transactions during a given period Indian tribal government means the gov- that will require payment by the erning body or a governmental agency grantee during the same or a future pe- of any Indian tribe, band, nation, or riod.

708

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00718 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.30

OMB. The term OMB means the State. The term State means any of United States Office of Management the several States of the United States, and Budget. the District of Columbia, the Common- Outlays (expenditures). The term out- wealth of Puerto Rico, any territory or lays (expenditures) means charges possession of the United States, or any made to the project or program. They agency or instrumentality of a State may be reported on a cash or accrual exclusive of local governments. The basis. For reports prepared on a cash term does not include any public and basis, outlays are the sum of actual Indian housing agency under the cash disbursement for direct charges United States Housing Act of 1937. for goods and services, the amount of Subgrant. The term subgrant means indirect expense incurred, the value of an award of financial assistance in the in-kind contributions applied, and the form of money, or property in lieu of amount of cash advances and payments money, made under a grant by a grant- made to contractors and subgrantees. ee to an eligible subgrantee. The term For reports prepared on an accrued ex- includes financial assistance when pro- penditure basis, outlays are the sum of vided by contractual legal agreement, actual cash disbursements, the amount but does not include procurement pur- of indirect expense incurred, the value chases, nor does it include any form of of in-kind contributions applied, and assistance which is excluded from the the new increase (or decrease) in the definition of ‘‘grant’’ in this part. amounts owed by the grantee for goods Subgrantee. The term subgrantee and other property received, for serv- means the government or other legal ices performed by employees, contrac- entity to which a subgrant is awarded tors, subgrantees, subcontractors, and and which is accountable to the grant- other payees, and other amounts be- ee for the use of the funds provided. coming owed under programs for which Supplies. The term supplies means all no current services or performance are tangible personal property other than required, such as annuities, insurance ‘‘equipment’’ as defined in this part. claims, and other benefit payments. Suspension. The term suspension means, depending on the context, ei- Percentage of completion method. The ther— term percentage of completion method re- (1) Temporary withdrawal of the au- fers to a system under which payments thority to obligate grant funds pending are made for construction work accord- corrective action by the grantee or ing to the percentage of completion of subgrantee or a decision to terminate the work, rather than to the grantee’s the grant; or cost incurred. (2) An action taken by a suspending Prior approval. The term prior ap- official in accordance with agency reg- proval means documentation evidenc- ulations implementing E.O. 12549 (3 ing consent prior to incurring specific CFR, 1986 Comp., p. 189) to immediately cost. exclude a person from participating in Real property. The term real property grant transactions for a period, pend- means land, including land improve- ing completion of an investigation and ments, structures and appurtenances such legal or debarment proceedings as thereto, excluding movable machinery may ensue. and equipment. Termination. The term termination Share. The term share, when referring means permanent withdrawal of the to the awarding agency’s portion of authority to obligate previously- real property, equipment or supplies, awarded grant funds before that au- means the same percentage as the thority would otherwise expire. It also awarding agency’s portion of the ac- means the voluntary relinquishment of quiring party’s total costs under the that authority by the grantee or subgrant to which the acquisition costs grantee. Termination does not in- under the grant to which the acquisi- clude— tion cost of the property was charged. (1) Withdrawal of funds awarded on Only costs are to be counted—not the the basis of the grantee’s underesti- value of third-party in-kind contribu- mate of the unobligated balance in a tions. prior period;

709

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00719 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.40 45 CFR Ch. XXV (10–1–11 Edition)

(2) Withdrawal of the unobligated Drug Abuse, and Mental Health Serv- balance as of the expiration of a grant; ices; Maternal and Child Health Serv- (3) Refusal to extend a grant or ices; Social Services; Low-Income award additional funds, to make a com- Home Energy Assistance; States’ Pro- peting or noncompeting continuation, gram of Community Development renewal, extension, or supplemental Block Grants for Small Cities; and Ele- award; or mentary and Secondary Education (4) Voiding of a grant upon deter- other than programs administered by mination that the award was obtained the Secretary of Education under title fraudulently, or was otherwise illegal V, subtitle D, chapter 2, section 583— or invalid from inception. the Secretary’s discretionary grant Terms of a grant or subgrant mean all program) and titles I-III of the Job requirements of the grant or subgrant, Training Partnership Act of 1982 (29 whether in statute, regulations, or the U.S.C. 1501 et seq.) and under the Pub- award document. lic Health Services Act (42 U.S.C. 201 et Third party in-kind contributions. The seq.), Alcohol and Drug Abuse Treat- term third party in-kind contributions ment and Rehabilitation Block Grant means property or services which ben- and part C of title V, Mental Health efit a federally assisted project or pro- Service for the Homeless Block Grant). gram and which are contributed by (3) Entitlement grants to carry out non-Federal third parties without the following programs of the Social charge to the grantee, or a cost-type Security Act (42 U.S.C. 301 et seq.): contractor under the grant agreement. (i) Aid to Needy Families with De- Unliquidated obligations for reports pre- pendent Children (title IV-A of the Act, pared on a cash basis. The term unliqui- not including the Work Incentive Pro- dated obligations for reports prepared on gram (WIN) authorized by section a cash basis means the amount of obli- 402(a)19(G); HHS grants for WIN are gations incurred by the grantee that subject to this part); has not been paid. For reports prepared (ii) Child Support Enforcement and on an accrued expenditure basis, they Establishment of Paternity (title IV-D represent the amount of obligations in- of the Act); curred by the grantee for which an out- (iii) Foster Care and Adoption Assist- lay has not been recorded. ance (title IV-E of the Act); Unobligated balance. The term unobli- (iv) Aid to the Aged, Blind, and Dis- gated balance means the portion of the abled (titles I, X, XIV, and XVI-AABD funds authorized by the Federal agency of the Act); and that has not been obligated by the (v) Medical Assistance (Medicaid) grantee and is determined by deducting (title XIX of the Act) not including the the cumulative obligations from the State Medicaid Fraud Control program cumulative funds authorized. authorized by section 1903(a)(6)(B). [59 FR 41598, Aug. 12, 1994, as amended at 72 (4) Entitlement grants under the fol- FR 28826, May 23, 2007] lowing programs of The National School Lunch Act (42 U.S.C. 1751 et § 2541.40 Applicability. seq.): (a) General. Subparts A through D of (i) School Lunch (section 4 of the this part apply to all grants and sub- Act); grants to governments, except where (ii) Commodity Assistance (section 6 inconsistent with Federal statutes or of the Act); with regulations authorized in accord- (iii) Special Meal Assistance (section ance with the exception provision of 11 of the Act); § 2541.60, or: (iv) Summer Food Service for Chil- (1) Grants and subgrants to State and dren (section 13 of the Act); and local institutions of higher education (v) Child Care Food Program (section or State and local hospitals. 17 of the Act). (2) The block grants authorized by (5) Entitlement grants under the fol- the Omnibus Budget Reconciliation lowing programs of The Child Nutri- Act of 1981 (Pub. L. 97–35, 95 Stat. 357) tion Act of 1966: (Community Services; Preventive (i) Special Milk (section 3 of the Act); Health and Health Services; Alcohol, and

710

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00720 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.100

(ii) School Breakfast (section 4 of the Subpart B—Pre-Award Act). Requirements (6) Entitlement grants for State Ad- ministrative expenses under The Food § 2541.100 Forms for applying for Stamp Act of 1977 (7 U.S.C. 2011 et seq.). grants. (7) A grant for an experimental, pilot, (a) Scope. (1) This section prescribes or demonstration project that is also forms and instructions to be used by supported by a grant listed in para- governmental organizations (except graph (a)(3) of this section. hospitals and institutions of higher (8) Grant funds awarded under sub- education operated by a government) section 412(e) of the Immigration and in applying for grants. This section is Nationality Act (8 U.S.C. 1522(e)) and not applicable, however, to formula subsection 501(a) of the Refugee Edu- grant programs which do not require cation Assistance Act of 1980 (Pub. L. applicants to apply for funds on a 96–422, 94 Stat. 1809), for cash assist- project basis. ance, medical assistance, and supple- (2) This section applies only to appli- mental security income benefits to ref- cations to Federal agencies for grants, ugees and entrants and the administra- and is not required to be applied by tive costs of providing the assistance grantees in dealing with applicants for and benefits. subgrants. However, grantees are en- (9) Grants to local education agencies couraged to avoid more detailed or bur- under 20 U.S.C. 236 through 241–1(a), densome application requirements for and 242 through 244 (portions of the Im- subgrants. pact Aid program), except for 20 U.S.C. (b) Authorized forms and instructions 238(d)(2)(c) and 240(f) (Entitlement In- for governmental organizations. (1) In ap- crease for Handicapped Children). plying for grants, applicants shall only (10) Payments under the Veterans use standard application forms or those Administration’s State Home Per Diem prescribed by the granting agency with Program (38 U.S.C. 641(a)). the approval of OMB under the Paper- (b) Entitlement programs. Entitlement work Reduction Act of 1980 (44 U.S.C. programs enumerated in § 2541.40(a) (3) 3501 et seq.). through (8) are subject to subpart E of (2) Applicants are not required to this part. submit more than the original and two copies of preapplications or applica- § 2541.50 Effect on other issuances. tions. All other grants administration pro- (3) Applicants must follow all appli- visions of codified program regula- cable instructions that bear OMB tions, program manuals, handbooks clearance numbers. Federal agencies and other nonregulatory materials may specify and describe the programs, which are inconsistent with this part functions, or activities that will be are superseded, except to the extent used to plan, budget, and evaluate the they are required by statute, or au- work under a grant. Other supple- thorized in accordance with the excep- mentary instructions may be issued tion provision in § 2541.60. only with the approval of OMB to the extent required under the Paperwork § 2541.60 Additions and exceptions. Reduction Act of 1980. For any stand- (a) For classes of grants and grantees ard form, except the SF–424 facesheet, subject to this part, Federal agencies Federal agencies may shade out or in- may not impose additional administra- struct the applicant to disregard any tive requirements except in codified line item that is not needed. regulations published in the FEDERAL (4) When a grantee applies for addi- REGISTER. tional funding (such as a continuation (b) Exceptions for classes of grants or or supplemental award) or amends a grantees may be authorized only by previously submitted application, only OMB. the affected pages need be submitted. (c) Exceptions on a case-by-case basis Previously submitted pages with infor- and for subgrantees may be authorized mation that is still current need not be by the affected Federal agencies. resubmitted.

711

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00721 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.110 45 CFR Ch. XXV (10–1–11 Edition)

§ 2541.110 State plans. (4) Has not conformed to terms and conditions of previous awards; or (a) Scope. The statutes for some pro- (5) Is otherwise not responsible; and grams require States to submit plans if the awarding agency determines that before receiving grants. Under regula- an award will be made, special conditions implementing Executive Order tions and/or restrictions shall cor- 12372 (3 CFR, 1982 Comp., p. 197), respond to the high risk condition and ‘‘Intergovernmental Review of Federal shall be included in the award. Programs,’’ States are allowed to sim- (b) Special conditions or restrictions plify, consolidate and substitute plans. may include: This section contains additional provi- (1) Payment on a reimbursement sions for plans that are subject to regu- basis; lations implementing the Executive (2) Withholding authority to proceed order. to the next phase until receipt of evi- (b) Requirements. A State need meet dence of acceptable performance within only Federal administrative or pro- a given funding period; grammatic requirements for a plan (3) Requiring additional, more de- that are in statutes or codified regula- tailed financial reports; tions. (4) Additional project monitoring; (c) Assurances. In each plan the State (5) Requiring the grantee or sub- will include an assurance that the grantee to obtain technical or manage- State shall comply with all applicable ment assistance; or Federal statutes and regulations in ef- (6) Establishing additional prior ap- fect with respect to the periods for provals. which it receives grant funding. For (c) If an awarding agency decides to this assurance and other assurances re- impose such conditions, the awarding quired in the plan, the State may: official will notify the grantee or sub- (1) Cite by number the statutory or grantee as early as possible, in writing, regulatory provisions requiring the as- of: surances and affirm that it gives the (1) The nature of the special condi- assurances required by those provi- tions/restrictions; sions; (2) The reason(s) for imposing them; (2) Repeat the assurance language in (3) The corrective actions which must the statutes or regulations; or be taken before they will be removed (3) Develop its own language to the and the time allowed for completing extent permitted by law. the corrective actions; and (d) Amendments. A State will amend a (4) The method of requesting recon- plan whenever necessary to reflect: sideration of the conditions/restric- New or revised Federal statutes or reg- tions imposed. ulations; or a material change in any State law, organization, policy, or Subpart C—Post-Award State agency operation. The State will Requirements obtain approval for the amendment and its effective date but need submit for § 2541.200 Standards for financial approval only the amended portions of management systems. the plan. (a) A State must expand and account for grant funds in accordance with § 2541.120 Special grant or subgrant State laws and procedures for expend- conditions for ‘‘high-risk’’ grantees. ing and accounting for its own funds. (a) A grantee or subgrantee may be Fiscal control and accounting proce- considered ‘‘high risk’’ if an awarding dures of the State, as well as its sub- agency determines that a grantee or grantees and cost-type contractors, subgrantee: must be sufficient to— (1) Has a history of unsatisfactory (1) Permit preparation of reports re- performance; or quired by this part and the statutes au- (2) Is not financially stable; or thorizing the grant; and (3) Has a management system which (2) Permit the tracing of funds to a does not meet the management stand- level of expenditures adequate to es- ards set forth in this part; or tablish that such funds have not been

712

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00722 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.210

used in violation of the restrictions whenever advance payment procedures and prohibitions of applicable statutes. are used. Grantees must establish rea- (b) The financial management sys- sonable procedures to ensure the re- tems of other grantees and subgrantees ceipt of reports on subgrantees’ cash must meet the following standards: balances and cash disbursements in (1) Financial reporting. Accurate, cur- sufficient time to enable them to pre- rent, and complete disclosure of the fi- pare complete and accurate cash trans- nancial results of financially assisted actions reports to the awarding agen- activities must be made in accordance cy. When advances are made by letter- with the financial reporting require- of-credit or electronic transfer of funds ments of the grant or subgrant. methods, the grantee must make (2) Accounting records. Grantees and drawdowns as close as possible to the subgrantees must maintain records time of making disbursements. Grant- which adequately identify the source ees must monitor cash drawdowns by and application of funds provided for fi- their subgrantees to assure that they nancially-assisted activities. These conform substantially to the same records must contain information per- standards of timing and amount as taining to grant or subgrant awards apply to advances to the grantees. and authorizations, obligations, unobli- (c) An awarding agency may review gated balances, assets, liabilities, out- the adequacy of the financial manage- lays or expenditures, and income. ment system of any applicant for fi- (3) Internal control. Effective control nancial assistance as part of a and accountability must be maintained preaward review or at any time subse- for all grant and subgrant cash, real quent to award. and personal property, and other assets. Grantees and subgrantees must § 2541.210 Payment. adequately safeguard all such property (a) Scope. This section prescribes the and must assure that it is used solely basic standard and the methods under for authorized purposes. which a Federal agency will make pay- (4) Budget control. Actual expendi- ments to grantees, and grantees will tures or outlays must be compared make payments to subgrantees and with budgeted amounts for each grant contractors. or subgrant. Financial information (b) Basic standard. Methods and pro- must be related to performance or procedures for payment shall minimize ductivity data, including the develop- the time elapsing between the transfer ment of unit cost information when- of funds and disbursement by the ever appropriate or specifically re- grantee or subgrantee, in accordance quired in the grant or subgrant agree- with Treasury regulations at 31 CFR ment. If unit cost data are required, es- part 205. timates based on available documenta- (c) Advances. Grantees and sub- tion will be accepted whenever pos- grantees shall be paid in advance, pro- sible. vided they maintain or demonstrate (5) Allowable cost. Applicable OMB the willingness and ability to maintain cost principles, agency program regula- procedures to minimize the time elaps- tions, and the terms of grant and ing between the transfer of the funds subgrant agreements will be followed and their disbursement by the grantee in determining the reasonableness, al- or subgrantee. lowability, and allocability of costs. (d) Reimbursement. Reimbursement (6) Source documentation. Accounting shall be the preferred method when the records must be supported by such requirements in paragraph (c) of this source documentation as canceled section are not met. Grantees and sub- checks, paid bills, payrolls, time and grantees may also be paid by reim- attendance records, contract and bursement for any construction grant. subgrant award documents, etc. Except as otherwise specified in regula- (7) Cash management. Procedures for tion, Federal agencies shall not use the minimizing the time elapsing between percentage of completion method to the transfer of funds from the U.S. pay construction grants. The grantee Treasury and disbursement by grantees or subgrantee may use that method to and subgrantees must be followed pay its construction contractor, and if

713

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00723 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.220 45 CFR Ch. XXV (10–1–11 Edition)

it does, the awarding agency’s pay- pended, payment adjustments will be ments to the grantee or subgrantee made in accordance with § 2541.410(c). will be based on the grantee’s or sub- (3) A Federal agency shall not make grantee’s actual rate of disbursement. payment to grantees for amounts that (e) Working capital advances. If a are withheld by grantees or subgrantee cannot meet the criteria for grantees from payment to contractors advance payments described in para- to assure satisfactory completion of graph (c) of this section, and the Fed- work. Payments shall be made by the eral agency has determined that reim- Federal agency when the grantees or bursement is not feasible because the subgrantees actually disburse the with- grantee lacks sufficient working cap- held funds to the contractors or to es- ital, the awarding agency may provide crow accounts established to assure cash on a working capital advance satisfactory completion of work. basis. Under this procedure the award- (h) Cash depositories. (1) Consistent ing agency shall advance cash to the with the national goal of expanding the grantee to cover its estimated dis- opportunities for minority business en- bursement needs for an initial period terprises, grantees and subgrantees are generally geared to the grantee’s dis- encouraged to use minority banks (a bursing cycle. Thereafter, the awarding bank which is owned at least 50 percent agency shall reimburse the grantee for by minority group members). A list of its actual cash disbursements. The minority owned banks can be obtained working capital advance method of from the Minority Business Develop- payment shall not be used by grantees ment Agency, Department of Com- or subgrantees if the reason for using merce, Washington, DC 20230. such method is the unwillingness or in- (2) A grantee or subgrantee shall ability of the grantee to provide timely maintain a separate bank account only advances to the subgrantee to meet the when required by Federal-State agree- subgrantee’s actual cash disbursement. ments. (i) Interest earned on advances. Except for interest earned on advances of (f) Effect of program income, refunds, funds exempt under the Intergovern- and audit recoveries on payment. (1) mental Cooperation Act (31 U.S.C. 6501 Grantees and subgrantees shall dis- et seq.) and the Indian Self-Determina- burse repayments to and interest tion Act (23 U.S.C. 450), grantees and earned on a revolving fund before re- subgrantees shall promptly, but at questing additional cash payments for least quarterly, remit interest earned the same activity. on advances to the Federal agency. The (2) Except as provided in paragraph grantee or subgrantee may keep inter- (f)(1) of this section, grantees and sub- est amounts up to $100 per year for ad- grantees shall disburse program in- ministrative expenses. come, rebates, refunds, contract settlements, audit recoveries and interest § 2541.220 Allowable costs. earned on such funds before requesting (a) Limitation on use of funds. Grant additional cash payments. funds may be used only for— (g) Withholding payments. (1) Unless (1) The allowable costs of the grant- otherwise required by Federal statute, ees, subgrantees and cost-type contrac- awarding agencies shall not withhold tors, including allowable costs in the payments for proper charges incurred form of payments to fixed-price con- by grantees or subgrantees unless— tractors; and (i) The grantee or subgrantee has (2) Reasonable fees or profit to cost- failed to comply with grant award con- type contractors but not any fee or ditions; or profit (or other increment above allow- (ii) The grantee or subgrantee is in- able costs) to the grantee or sub- debted to the United States. grantee. (2) Cash withheld for failure to com- (b) Applicable cost principles. For each ply with grant award condition, but kind of organization, there is a set of without suspension of the grant, shall Federal principles for determining al- be released to the grantee upon subse- lowable costs. Allowable costs will be quent compliance. When a grant is sus- determined in accordance with the cost

714

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00724 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.240

principles applicable to the organiza- to which the cost sharing or matching tion incurring the costs. The following requirements applies. chart lists the kinds of organizations (b) Qualifications and exceptions—(1) and the applicable cost principles: Costs borne by other Federal grant agreements. Except as provided by Federal For the costs of a Use the principles in— statute, a cost sharing or matching re- State, local or Indian tribal OMB Circular A–87. quirement may not be met by costs government borne by another Federal grant. This Private nonprofit organization OMB Circular A–122. prohibition does not apply to income other than an (1) institution of higher education, (2) earned by a grantee or subgrantee from hospital, or (3) organization a contract awarded under another Fed- named in OMB Circular A– eral grant. 122 as not subject to that circular (2) General revenue sharing. For the Educational institutions OMB Circular A–21. purpose of this section, general revenue For-profit organization other 48 CFR Part 31. Contract sharing funds distributed under 31 than a hospital and an or- Cost Principles and Proce- ganization named in OMB dures, or uniform cost ac- U.S.C. 6702 are not considered Federal Circular A–122 as not sub- counting standards that grant funds. ject to that circular comply with cost principles (3) Cost or contributions counted to- acceptable to the Federal wards other Federal costs-sharing require- agency. ments. Neither costs nor the values of third party in-kind contributions may § 2541.230 Period of availability of count towards satisfying a cost sharing funds. or matching requirement of a grant (a) General. Where a funding period is agreement if they have been or will be specified, a grantee may charge to the counted towards satisfying a cost shar- award only costs resulting from obliga- ing or matching requirement of an- tions of the funding period unless car- other Federal grant agreement, a Fed- ryover of unobligated balances is per- eral procurement contract, or any mitted, in which case the carryover other award of Federal funds. balances may be charged for costs re- (4) Costs financed by program income. sulting from obligations of the subse- Costs financed by program income, as quent funding period. defined in § 2541.250, shall not count to- (b) Liquidation of obligations. A grant- wards satisfying a cost sharing or ee must liquidate all obligations in- matching requirement unless they are curred under the award not later than expressly permitted in the terms of the 90 days after the end of the funding pe- assistance agreement. (This use of gen- riod (or as specified in a program regu- eral program income is described in lation) to coincide with the submission § 2541.250(g).) of the annual Financial Status Report (5) Services or property financed by in- (SF–269). The Federal agency may ex- come earned by contractors. Contractors tend this deadline at the request of the under a grant may earn income from grantee. the activities carried out under the contract in addition to the amounts § 2541.240 Matching or cost sharing. earned from the party awarding the (a) Basic rule; costs and contributions contract. No costs of services or prop- acceptable. With the qualifications and erty supported by this income may exceptions listed in paragraph (b) of count toward satisfying a cost sharing this section, a matching or cost shar- or matching requirement unless other ing requirement may be satisfied by ei- provisions of the grant agreement ex- ther or both of the following: pressly permit this kind of income to (1) Allowable costs incurred by the be used to meet the requirement. grantee, subgrantee or a cost-type con- (6) Records. Costs and third party in- tractor under the assistance agree- kind contributions counting towards ment. This includes allowable costs satisfying a cost sharing or matching borne by non-Federal grants or by requirement must be verifiable from other cash donations from non-Federal the records of grantees and subgrantee third parties. or cost-type contractors. These records (2) The value of third party in-kind must show how the value placed on contributions applicable to the period third party in-kind contributions was

715

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00725 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.240 45 CFR Ch. XXV (10–1–11 Edition)

derived. To the extent feasible, volun- fringe benefits may be included in the teer services will be supported by the valuation. same methods that the organization (2) Employees of other organizations. uses to support the allocability of reg- When an employer other than a grant- ular personnel costs. ee, subgrantee, or cost-type contractor (7) Special standards for third party in- furnishes free of charge the services of kind contributions. (i) Third party in- an employee in the employee’s normal kind contributions count towards sat- line of work, the services will be valued isfying a cost sharing or matching re- at the employee’s regular rate of pay quirement only where, if the party re- exclusive of the employee’s fringe ben- ceiving the contributions were to pay efits and overhead costs. If the services for them, the payments would be allow- are in a different line of work, para- able costs. graph (c)(1) of this section applies. (ii) Some third party in-kind con- (d) Valuation of third party donated tributions are goods and services that, supplies and loaned equipment or space. if the grantee, subgrantee, or con- (1) If a third party donates supplies, tractor receiving the contribution had the contribution will be valued at the to pay for them, the payments would market value of the supplies at the have been an indirect costs. Costs shar- time of donation. ing or matching credit for such con- (2) If a third party donates the use of tributions shall be given only if the equipment or space in a building but grantee, subgrantee, or contractor has retains title, the contribution will be established, along with its regular indi- valued at the fair rental rate of the rect cost rate, a special rate for allo- equipment or space. cating to individual projects or pro- (e) Valuation of third party donated grams the value of the contributions. equipment, buildings, and land. If a third party donates equipment, buildings, or (iii) A third party in-kind contribu- land, and title passes to a grantee or tion to a fixed-price contract may subgrantee, the treatment of the do- count towards satisfying a cost sharing nated property will depend upon the or matching requirement only if it re- purpose of the grant or subgrant, as sults in: follows: (A) An increase in the services or (1) Awards for capital expenditures. If property provided under the contract the purpose of the grant or subgrant is (without additional cost to the grantee to assist the grantee or subgrantee in or subgrantee); or the acquisition of property, the market (B) A cost savings to the grantee or value of that property at the time of subgrantee. donation may be counted as cost shar- (iv) The values placed on third party ing or matching. in-kind contributions for cost sharing (2) Other awards. If assisting in the or matching purposes will conform to acquisition of property is not the pur- the rules in the succeeding sections of pose of the grant or subgrant, para- this part. If a third party in-kind con- graphs (e)(2) (i) and (ii) of this section tribution is a type not treated in those apply: sections, the value placed upon it shall (i) If approval is obtained from the be fair and reasonable. awarding agency, the market value at (c) Valuation of donated services—(1) the time of donation of the donated Volunteer services. Unpaid services pro- equipment or buildings and the fair vided to a grantee or subgrantee by in- rental rate of the donated land may be dividuals will be valued at rates con- counted as cost sharing or matching. sistent with those ordinarily paid for In the case of a subgrant, the terms of similar work in the grantee’s or sub- the grant agreement may require that grantee’s organization. If the grantee the approval be obtained from the Fed- or subgrantee does not have employees eral agency as well as the grantee. In performing similar work, the rates will all cases, the approval may be given be consistent with those ordinarily only if a purchase of the equipment or paid by other employers for similar rental of the land would be approved as work in the same labor market. In ei- an allowable direct cost. If any part of ther case, a reasonable amount for the donated property was acquired

716

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00726 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.250

with Federal funds, only the non-fed- terest on loans made with grant funds. eral share of the property may be Except as otherwise provided in regula- counted as cost-sharing or matching. tions of the Federal agency, program (ii) If approval is not obtained under income does not include interest on paragraph (e)(2)(i) of this section, no grant funds, rebates, credits, discounts, amount may be counted for donated refunds, etc. and interest earned on land, and only depreciation or use al- any of them. lowances may be counted for donated (b) Definition of program income. Pro- equipment and buildings. The deprecia- gram income means gross income re- tion or use allowances for this property ceived by the grantee or subgrantee di- are not treated as third party in-kind rectly generated by a grant supported contributions. Instead, they are treat- activity, or earned only as a result of ed as costs incurred by the grantee or the grant agreement during the grant subgrantee. They are computed and al- period. ‘‘During the grant period’’ is located (usually as indirect costs) in the time between the effective date of accordance with the cost principles the award and the ending date of the specified in § 2541.220, in the same way award reflected in the final financial as depreciation or use allowances for report. purchased equipment and buildings. (c) Cost of generating program income. The amount of depreciation or use al- If authorized by Federal regulations or lowances for donated equipment and the grant agreement, costs incident to buildings is based on the property’s the generation of program income may market value at the time it was do- be deducted from gross income to de- nated. termine program income. (f) Valuation of grantee or subgrantee (d) Governmental revenues. Taxes, spe- donated real property for construction/ac- cial assessments, levies, fines, and quisition. If a grantee or subgrantee do- other such revenues raised by a grantee nates real property for a construction or subgrantee are not program income or facilities acquisition project, the unless the revenues are specifically current market value of that property identified in the grant agreement or may be counted as cost sharing or Federal agency regulations as program matching. If any part of the donated income. property was acquired with Federal (e) Royalties. Income from royalties funds, only the non-federal share of the and license fees for copyrighted mate- property may be counted as cost shar- rial, patents, and inventions developed ing or matching. by a grantee or subgrantee is program (g) Appraisal of real property. In some income only if the revenues are specifi- cases under paragraphs (d), (e) and (f) cally identified in the grant agreement of this section, it will be necessary to or Federal agency regulations as pro- establish the market value of land or a gram income. (See § 2541.340) building or the fair rental rate of land (f) Property. Proceeds from the sale of or of space in a building. In these cases, real property or equipment will be han- the Federal agency may require the dled in accordance with the require- market value or fair rental value be set ments of §§ 2541.310 and 2541.320. by an independent appraiser, and that (g) Use of program income. Program the value or rate be certified by the income shall be deducted from outlays grantee. This requirement will also be which may be both Federal and non- imposed by the grantee on subgrantees. Federal as described in paragraphs (g)(1) and (2) of this section, unless the § 2541.250 Program income. Federal agency regulations or the (a) General. Grantees are encouraged grant agreement specify another alter- to earn income to defray program native (or a combination of the alter- costs. Program income includes income natives). In specifying alternatives, the from fees for services performed, from Federal agency may distinguish be- the use or rental of real or personal tween income earned by the grantee property acquired with grant funds, and income earned by subgrantees and from the sale of commodities or items between the sources, kinds, or amounts fabricated under a grant agreement, of income. When Federal agencies au- and from payments of principal and in- thorize the alternatives in paragraphs

717

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00727 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.260 45 CFR Ch. XXV (10–1–11 Edition)

(g) (2) and (3) of this section, program amount as specified by OMB) in Fed- income in excess of any limits stipu- eral awards in a fiscal year, shall: lated shall also be deducted from out- (1) Determine whether State or local lays. subgrantees have met the audit re- (1) Deduction. Ordinarily program in- quirements of the Act and whether sub- come shall be deducted from total al- grantees covered by OMB Circular A– lowable costs to determine the net al- 110, ‘‘Uniform Administrative Require- lowable costs. Program income shall be ments for Grants and Agreements with used for current costs unless the Fed- Institutions of Higher Education, Hos- eral agency authorizes otherwise. Pro- pitals, and Other Non-Profit Organiza- gram income which the grantee did not tions,’’ have met the audit require- anticipate at the time of the award ments of the Act. Commercial contrac- shall be used to reduce the Federal tors (private for-profit and private and agency and grantee contributions rath- governmental organizations) providing er than to increase the funds com- goods and services to State and local mitted to the project. governments are not required to have a (2) Addition. When authorized, pro- single audit performed. State and local gram income may be added to the governments should use their own pro- funds committed to the grant agree- cedures to ensure that the contractor ment by the Federal agency and the has complied with laws and regulations grantee. The program income shall be affecting the expenditure of Federal used for the purposes and under the funds; conditions of the grant agreement. (2) Determine whether the subgrantee spent Federal assistance funds (3) Cost sharing or matching. When au- provided in accordance with applicable thorized, program income may be used laws and regulations. This may be ac- to meet the cost sharing or matching complished by reviewing an audit of requirement of the grant agreement. the subgrantee made in accordance The amount of the Federal grant award with the Act, Circular A–110, or remains the same. through other means (e.g., program re- (h) Income after the award period. views) if the subgrantee has not had There are no Federal requirements gov- such an audit; erning the disposition of program in- (3) Ensure that appropriate correc- come earned after the end of the award tive action is taken within six months period (i.e., until the ending date of the after receipt of the audit report in in- final financial report, see paragraph (a) stance of noncompliance with Federal of this section), unless the terms of the laws and regulations; agreement or the Federal agency regu- (4) Consider whether subgrantee au- lations provide otherwise. dits necessitate adjustment of the grantee’s own records; and § 2541.260 Non-Federal audit. (5) Require each subgrantee to permit (a) Basic rule. Grantees and sub- independent auditors to have access to grantees are responsible for obtaining the records and financial statements. audits in accordance with the Single (c) Auditor selection. In arranging for Audit Act Amendments of 1996 (31 audit services, § 2541.360 shall be fol- U.S.C. 7501–7507) and revised OMB Cir- lowed. cular A–133, ‘‘Audits of States, Local Governments, and Non-Profit Organi- [59 FR 41598, Aug. 12, 1994, as amended at 62 zations.’’ The audits shall be made by FR 45939, 45947, Aug. 29, 1997] an independent auditor in accordance with generally accepted government Subpart D—Changes, Property auditing standards covering financial and Subawards audits. (b) Subgrantees. State or local govern- § 2541.300 Changes. ments, as those terms are defined for (a) General. Grantees and subgrantees purposes of the Single Audit Act are permitted to re budget within the Amendments of 1996, that provide Fed- approved direct cost budget to meet eral awards to a subgrantee, which ex- unanticipated requirements and may pends $300,000 or more (or other make limited program changes to the

718

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00728 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.310

approved project. However, unless whether there is an associated budget waived by the awarding agency, certain revision requiring prior approval). types of post-award changes in budgets (2) Need to extend the period of avail- and projects shall require the prior ability of funds. written approval of the awarding agen- (3) Changes in key persons in cases cy. where specified in an application or a (b) Relation to cost principles. The ap- grant award. In research projects, a plicable cost principles (see § 2541.220) change in the project director or prin- contain requirements for prior ap- cipal investigator shall always require proval of certain types of costs. Except approval unless waived by the award- where waived, those requirements ing agency. apply to all grants and subgrants even (4) Under nonconstruction projects, if paragraphs (c) through (f) of this sec- contracting out, subgranting (if au- tion do not. thorized by law) or otherwise obtaining (c) Budget changes—(1) Nonconstruc- the services of a third party to perform tion projects. Except as stated in other activities which are central to the pur- regulations or an award document, poses of the award. This approval re- grantees or subgrantees shall obtain quirement is in addition to the ap- the prior approval of the awarding proval requirements of § 2541.360 but agency whenever any of the following does not apply to the procurement of changes is anticipated under a non- equipment, supplies, and general sup- construction award: port services. (i) Any revision which would result (e) Additional prior approval require- in the need for additional funding. ments. The awarding agency may not (ii) Unless waived by the awarding require prior approval for any budget agency, cumulative transfers among di- revision which is not described in para- rect cost categories, or, if applicable, graph (c) of this section. among separately budgeted programs, (f) Requesting prior approval. (1) A re- projects, functions, or activities which quest for prior approval of any budget exceed or are expected to exceed ten revision will be in the same budget for- percent of the current total approved mal the grantee used in its application budget, whenever the awarding agen- and shall be accompanied by a nar- cy’s share exceeds $100,000. rative justification for the proposed re- (iii) Transfer of funds allotted for vision. training allowances (i.e., from direct (2) A request for a prior approval payments to trainees to other expense under the applicable Federal cost prin- categories). ciples (see § 2541.220) may be made by (2) Construction projects. Grantees and letter. subgrantees shall obtain prior written (3) A request by a subgrantee for approval for any budget revision which prior approval will be addressed in would result in the need for additional writing to the grantee. The grantee funds. will promptly review such request and (3) Combined construction and non- shall approve or disapprove the request construction projects. When a grant or in writing. A grantee will not approve subgrant provides funding for both con- any budget or project revision which is struction and nonconstruction activi- inconsistent with the purpose or terms ties, the grantee or subgrantee must and conditions of the Federal grant to obtain prior written approval from the the grantee. If the revision, requested awarding agency before making any by the subgrantee would result in a fund or budget transfer from non- change to the grantee’s approved construction to construction or vice project which requires Federal prior versa. approval, the grantee will obtain the (d) Programmatic changes. Grantees or Federal agency’s approval before ap- subgrantees must obtain the prior approving the subgrantee’s request. proval of the awarding agency whenever any of the following actions is an- § 2541.310 Real property. ticipated: (a) Title. Subject to the obligations (1) Any revision of the scope or objec- and conditions set forth in this section, tives of the project (regardless of title to real property acquired under a

719

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00729 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.320 45 CFR Ch. XXV (10–1–11 Edition)

grant or subgrant will vest upon acqui- § 2541.320 Equipment. sition in the grantee or subgrantee re- (a) Title. Subject to the obligations spectively. and conditions set forth in this section, (b) Use. Except as otherwise provided title to equipment acquired under a by Federal statutes, real property will grant or subgrant will vest upon acqui- be used for the originally authorized sition in the grantee or subgrantee re- purposes as long as needed for that pur- spectively. poses, and the grantee or subgrantee shall not dispose of or encumber its (b) States. A State will use, manage, title or other interests. and dispose of equipment acquired (c) Disposition. When real property is under a grant by the State in accord- no longer needed for the originally au- ance with State laws and procedures. thorized purpose, the grantee or sub- Other grantees and subgrantees will grantee will request disposition in- follow paragraphs (c) through (e) of structions from the awarding agency. this section. The instructions will provide for one of (c) Use. (1) Equipment shall be used the following alternatives: by the grantee or subgrantee in the (1) Retention of title. Retain title after program or project for which it was ac- compensating the awarding agency. quired as long as needed, whether or The amount paid to the awarding agen- not the project or program continues cy will be computed by applying the to be supported by Federal funds. When awarding agency’s percentage of par- no longer needed for the original pro- ticipation in the cost of the original gram or project, the equipment may be purchase to the fair market value of used in other activities currently or the property. However, in those situa- previously supported by a Federal tions where a grantee or subgrantee is agency. disposing of real property acquired (2) The grantee or subgrantee shall with grant funds and acquiring replace- also make equipment available for use ment real property under the same pro- on other projects or programs cur- gram, the net proceeds from the dis- rently or previously supported by the position may be used as an offset to the Federal Government, providing such cost of the replacement property. use will not interfere with the work on (2) Sale of property. Sell the property the projects or program for which it and compensate the awarding agency. was originally acquired. First pref- The amount due to the awarding agen- erence for other use shall be given to cy will be calculated by applying the other programs or projects supported awarding agency’s percentage of par- by the awarding agency. User fees ticipation in the cost of the original should be considered if appropriate. purchase to the proceeds of the sale (3) Notwithstanding the encourage- after deduction of any actual and rea- ment in § 2541.250(a) to earn program sonable selling and fixing-up expenses. income, the grantee or subgrantee If the grant is still active, the net pro- must not use equipment acquired with ceeds from sale may be offset against grant funds to provide services for a fee the original cost of the property. When to compete unfairly with private com- a grantee or subgrantee is directed to panies that provide equivalent services, sell property, sales procedures shall be unless specifically permitted or con- followed that provide for competition templated by Federal statute. to the extent practicable and result in (4) When acquiring replacement the highest possible return. equipment, the grantee or subgrantee (3) Transfer of title. Transfer title to may use the equipment to be replaced the awarding agency or to a third- as a trade-in or sell the property and party designated/approved by the use the proceeds to offset the cost of awarding agency. The grantee or sub- the replacement property, subject to grantee shall be paid an amount cal- the approval of the awarding agency. culated by applying the grantee or sub- (d) Management requirements. Proce- grantee’s percentage of participation dures for managing equipment (includ- in the purchase of the real property to ing replacement equipment), whether the current fair market value of the acquired in whole or in part with grant property. funds, until disposition takes place

720

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00730 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.330

will, as a minimum, meet the following (f) Federal equipment. In the event a requirements: grantee or subgrantee is provided fed- (1) Property records must be main- erally-owned equipment: tained that include a description of the (1) Title will remain vested in the property, a serial number or other Federal Government. identification number, the source of (2) Grantees or subgrantees will man- property, who holds title, the acquisi- age the equipment in accordance with tion date, and cost of the property, per- Federal agency rules and procedures, centage of Federal participation in the and submit an annual inventory list- cost of the property, the location, use ing. and condition of the property, and any (3) When the equipment is no longer ultimate disposition data including the needed, the grantee or subgrantee will date of disposal and sale price of the request disposition instructions from property. the Federal agency. (2) A physical inventory of the prop- (g) Right to transfer title. The Federal erty must be taken and the results rec- awarding agency may reserve the right onciled with the property records at to transfer title to the Federal Govern- least once every two years. ment or a third part named by the (3) A control system must be devel- awarding agency when such a third oped to ensure adequate safeguards to party is otherwise eligible under exist- prevent loss, damage, or theft of the ing statutes. Such transfers shall be property. Any loss, damage, or theft subject to the following standards: shall be investigated. (1) The property shall be identified in (4) Adequate maintenance procedures the grant or otherwise made known to must be developed to keep the property the grantee in writing. in good condition. (2) The Federal awarding agency (5) If the grantee or subgrantee is au- shall issue disposition instruction thorized or required to sell the prop- within 120 calendar days after the end erty, proper sales procedures must be of the Federal support of the project established to ensure the highest pos- for which it was acquired. If the Fed- sible return. eral awarding agency fails to issue dis- (e) Disposition. When original or re- position instructions within the 120 placement equipment acquired under a calendar-day period the grantee shall grant or subgrant is no longer needed follow paragraph (e) of this section. for the original project or program or (3) When title to equipment is trans- for other activities currently or preferred, the grantee shall be paid an viously supported by a Federal agency, amount calculated by applying the per- disposition of the equipment will be centage of participation in the pur- made as follows: chase to the current fair market value (1) Items of equipment with a current of the property. per-unit fair market value of less than $5,000 may be retained, sold or other- § 2541.330 Supplies. wise disposed of with no further obligation to the awarding agency. (a) Title. Title to supplies acquired (2) Items of equipment with a current under a grant or subgrant will vest, per unit fair market value in excess of upon acquisition, in the grantee or sub- $5,000 may be retained or sold and the grantee respectively. awarding agency shall have a right to (b) Disposition. If there is a residual an amount calculated by multiplying inventory of unused supplies exceeding the current market value or proceeds $5,000 in total aggregate fair market from sale by the awarding agency’s value upon termination or completion share of the equipment. of the award, and if the supplies are (3) In cases where a grantee or sub- not needed for any other federally grantee fails to take appropriate dis- sponsored programs or projects, the position actions, the awarding agency grantee or subgrantee shall com- may direct the grantee or subgrantee pensate the awarding agency for its to take excess and disposition actions. share.

721

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00731 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.340 45 CFR Ch. XXV (10–1–11 Edition)

§ 2541.340 Copyrights. employee, officer or agent of the grant- The Federal awarding agency re- ee or subgrantee shall participate in se- serves a royalty-free, non-exclusive, lection, or in the award or administra- and irrevocable license to reproduce, tion of a contract supported by Federal publish or otherwise use, and to au- funds if a conflict of interest, real or thorize others to use, for Federal Gov- apparent, would be involved. Such a ernment purposes: conflict would arise when— (a) The copyright in any work devel- (i) The employee, officer or agent; oped under a grant, subgrant, or con- (ii) Any member of his immediate tract under a grant or subgrant; and family; (b) Any rights of copyright to which (iii) His or her partner; or a grantee, subgrantee or a contractor (iv) An organization which employs, purchases ownership with grant sup- or is about to employ, any of the port. above, has a financial or other interest in the firm selected for award. The § 2541.350 Subawards to debarred and grantee’s or subgrantee’s officers, em- suspended parties. ployees or agents will neither solicit Grantees and subgrantees must not nor accept gratuities, favors or any- make any award or permit any award thing of monetary value from contrac- (subgrant or contract) at any tier to tors, potential contractors, or parties any party which is debarred or sus- to subagreements. Grantee and sub- pended or is otherwise excluded from or grantees may set minimum rules where ineligible for participation in Federal the financial interest is not substantial assistance programs under Executive or the gift is an unsolicited item of Order 12549, ‘‘Debarment and Suspen- nominal intrinsic value. To the extent sion.’’ permitted by State or local law or reg- § 2541.360 Procurement. ulations, such standards or conduct will provide for penalties, sanctions, or (a) States. When procuring property other disciplinary actions for viola- and services under a grant, a State will tions of such standards by the grant- follow the same policies and procedures ee’s and subgrantee’s officers, employ- it uses for procurements from its non- ees, or agents, or by contractors or Federal funds. The State will ensure their agents. The awarding agency may that every purchase order or other contract includes any clauses required by in regulation provide additional prohi- Federal statutes and executive orders bitions relative to real, apparent, or and their implementing regulations. potential conflicts of interest. Other grantees and subgrantees will (4) Grantee and subgrantee proce- follow paragraphs (b) through (i) of this dures will provide for a review of pro- section. posed procurements to avoid purchase (b) Procurement standards. (1) Grant- of unnecessary or duplicative items. ees and subgrantees will use their own Consideration should be given to con- procurement procedures which reflect solidating or breaking out procure- applicable State and local laws and ments to obtain a more economical regulations, provided that the procure- purchase. Where appropriate, an anal- ments conform to applicable Federal ysis will be made of lease versus pur- law and the standards identified in this chase alternatives, and any other ap- section. propriate analysis to determine the (2) Grantees and subgrantees will most economical approach. maintain a contract administration (5) To foster greater economy and ef- system which ensures that contractors ficiency, grantees and subgrantees are perform in accordance with the terms, encouraged to enter into State and conditions, and specifications of their local intergovernmental agreements contracts or purchase orders. for procurement or use of common (3) Grantees and subgrantees will goods and services. maintain a written code of standards of (6) Grantees and subgrantees are en- conduct governing the performance of couraged to use Federal excess and sur- their employees engaged in the award plus property in lieu of purchasing new and administration of contracts. No equipment and property whenever such

722

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00732 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.360

use is feasible and reduces project resolve disputes relating to their pro- costs. curements and shall in all instances (7) Grantees and subgrantees are en- disclose information regarding the pro- couraged to use value engineering test to the awarding agency. A pro- clauses in contracts for construction tester must exhaust all administrative projects of sufficient size to offer rea- remedies with the grantee and sub- sonable opportunities for cost reduc- grantee before pursuing a protest with tions. Value engineering is a system- the Federal agency. Reviews of pro- atic and creative analysis of each con- tests by the Federal agency will be lim- tract item or task to ensure that its es- ited to: sential function is provided at the (i) Violations of Federal law or regu- overall lower cost. lations and the standards of this sec- (8) Grantees and subgrantees will tion (violations of State or local law make awards only to responsible con- will be under the jurisdiction of State tractors possessing the ability to per- or local authorities); and form successfully under the terms and (ii) Violations of the grantee’s or sub- conditions of a proposed procurement. grantee’s protest procedures for failure Consideration will be given to such to review a complaint or protest. Pro- matters as contractor integrity, com- tests received by the Federal agency pliance with public policy, record of other than those specified in this para- past performance, and financial and graph (b)(12)(ii) will be referred to the technical resources. grantee or subgrantee. (9) Grantees and subgrantees will (c) Competition. (1) All procurement maintain records sufficient to detail transactions will be conducted in a the significant history of a procure- manner providing full and open com- ment. These records will include, but petition consistent with the standards are not necessarily limited to the fol- of this section. Some of the situations lowing: Rationale for the method of considered to be restrictive of competi- procurement, selection of contract tion include but are not limited to: type, contractor selection or rejection, (i) Placing unreasonable require- and the basis for the contract price. ments on firms in order for them to (10) Grantees and subgrantees will qualify to do business; use time and material type contracts (ii) Requiring unnecessary experience only— and excessive bonding; (i) After a determination that no other contract is suitable; and (iii) Noncompetitive pricing practices (ii) If the contract includes a ceiling between firms or between affiliated price that the contractor exceeds at its companies; own risk. (iv) Noncompetitive awards to con- (11) Grantees and subgrantees alone sultants that are on retainer contracts; will be responsible, in accordance with (v) Organizational conflicts of inter- good administrative practice and sound est; business judgment, for the settlement (vi) Specifying only a ‘‘brand name’’ of all contractual and administrative product instead of allowing ‘‘an equal’’ issues arising out of procurements. product to be offered and describing These issues include, but are not lim- the performance of other relevant re- ited to source evaluation, protests, dis- quirements of the procurement; and putes, and claims. These standards do (vii) Any arbitrary action in the pro- not relieve the grantee or subgrantee curement process. of any contractual responsibilities (2) Grantees and subgrantees will under its contracts. Federal agencies conduct procurements in a manner will not substitute their judgment for that prohibits the use of statutory or that of the grantee or subgrantee un- administratively imposed in-State or less the matter is primarily a Federal local geographical preferences in the concern. Violations of law will be re- evaluation of bids or proposals, except ferred to the local, State, or Federal in those cases where applicable Federal authority having proper jurisdiction. statutes expressly mandate or encour- (12) Grantees and subgrantees will age geographic preference. Nothing in have protest procedures to handle and this section preempts State licensing

723

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00733 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.360 45 CFR Ch. XXV (10–1–11 Edition)

laws. When contracting for architec- If small purchase procedures are used, tural and engineering (A/E) services, price or rate quotations shall be ob- geographic location may be a selection tained from an adequate number of criteria provided its application leaves qualified sources. an appropriate number of qualified (2) Procurement by sealed bids (for- firms, given the nature and size of the mal advertising). Bids are publicly so- project, to compete for the contract. licited and a firm-fixed-price contract (3) Grantees will have written selec- (lump sum or unit price) is awarded to tion procedures for procurement trans- the responsible bidder whose bid, con- actions. These procedures will ensure forming with all the material terms that all solicitations: and conditions of the invitation for (i) Incorporate a clear and accurate bids, is the lowest in price. The sealed description of the technical require- bid method is the preferred method for ments for the material, product, or procuring construction, if the condi- service to be procured. Such descriptions in § 2541.36(d)(2)(i) apply. tion shall not, in competitive procure- (i) In order for sealed bidding to be ments, contain features which unduly feasible, the following conditions restrict competition. The description should be present: may include a statement of the quali- (A) A complete, adequate, and real- tative nature of the material, product istic specification or purchase descrip- or service to be procured, and when tion is available; necessary, shall set forth those min- (B) Two or more responsible bidders imum essential characteristics and are willing and able to compete effec- standards to which it must conform if tively and for the business; and it is to satisfy its intended use. De- (C) The procurement lends itself to a tailed product specifications should be firm fixed price contract and the selec- avoided if at all possible. When it is tion of the successful bidder can be impractical or uneconomical to make a made principally on the basis of price. clear and accurate description of the technical requirements, a ‘‘brand name (ii) If sealed bids are used, the fol- or equal’’ description may be used as a lowing requirements apply: means to define the performance or (A) The invitation for bids will be other salient requirements of a pro- publicly advertised and bids shall be curement. The specific features of the solicited from an adequate number of named brand which must be met by known suppliers, providing them suffi- offerors shall be clearly stated; and cient time prior to the date set for (ii) Identify all requirements which opening the bids; the offerors must fulfill and all other (B) The invitation for bids, which factors to be used in evaluating bids or will include any specifications and per- proposals. tinent attachments, shall define the (4) Grantees and subgrantees will en- items or services in order for the bidder sure that all prequalified lists of per- to properly respond; sons, firms, or products which are used (C) All bids will be publicly opened at in acquiring goods and services are cur- the time and place prescribed in the in- rent and include enough qualified vitation for bids; sources to ensure maximum open and (D) A firm fixed-price contract award free competition. Also, grantees and will be made in writing to the lowest subgrantees will not preclude potential responsive and responsible bidder. bidders from qualifying during the so- Where specified in bidding documents, licitation period. factors such as discounts, transpor- (d) Methods of procurement to be fol- tation cost, and life cycle costs shall be lowed—(1) Procurement by small purchase considered in determining which bid is procedures. Small purchase procedures lowest. Payment discounts will only be are those relatively simple and infor- used to determine the low bid when mal procurement methods for securing prior experience indicates that such services, supplies, or other property discounts are usually taken advantage that do not cost more than the sim- of; and plified acquisition threshold fixed at 41 (E) Any or all bids may be rejected if U.S.C. 403(11) (currently set at $100,000). there is a sound documented reason.

724

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00734 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.360

(3) Procurement by competitive pro- delay resulting from competitive solic- posals. The technique of competitive itation; proposals is normally conducted with (C) The awarding agency authorizes more than one source submitting an noncompetitive proposals; or offer, and either a fixed-price or cost- (D) After solicitation of a number of reimbursement type contract is award- sources, competition is determined in- ed. It is generally used when conditions adequate. are not appropriate for the use of (ii) Cost analysis, i.e., verifying the sealed bids. If this method is used, the proposed cost data, the projections of following requirements apply: the data, and the evaluation of the spe- (i) Requests for proposals will be pub- cific elements of costs and profits, is licized and identify all evaluation fac- required. tors and their relative importance. Any (iii) Grantees and subgrantees may response to publicized requests for pro- be required to submit the proposed proposals shall be honored to the maximum extent practical; curement to the awarding agency for (ii) Proposals will be solicited from pre-award review in accordance with an adequate number of qualified paragraph (g) of this section. sources; (e) Contracting with small and minority (iii) Grantees and subgrantees will firms, women’s business enterprise and have a method for conducting tech- labor surplus area firms. (1) The grantee nical evaluations of the proposals re- and subgrantee will take all necessary ceived and for selecting awardees; affirmative steps to assure that minor- (iv) Awards will be made to the re- ity firms, women’s business enter- sponsible firm whose proposal is most prises, and labor surplus area firms are advantageous to the program, with used when possible. price and other factors considered; and (2) Affirmative steps shall include: (v) Grantees and subgrantees may (i) Placing qualified small and minor- use competitive proposal procedures ity businesses and women’s business for qualifications-based procurement of enterprises on solicitation lists; architectural/engineering (A/E) profes- (ii) Assuring that small and minority sional services whereby competitors’ businesses, and women’s business en- qualifications are evaluated and the terprises are solicited whenever they most qualified competitor is selected, are potential sources; subject to negotiation of fair and rea- (iii) Dividing total requirements, sonable compensation. The method, when economically feasible, into small- where price is not used as a selection er tasks or quantities to permit max- factor, can only be used in procure- imum participation by small and mi- ment of A/E professional services. It nority business, and women’s business cannot be used to purchase other types enterprises; of services though A/E firms are a po- (iv) Establishing delivery schedules, tential source to perform the proposed where the requirement permits, which effort. (4) Procurement by noncompetitive encourage participation by small and proposals is procurement through solic- minority business, and women’s busi- itation of a proposal from only one ness enterprises; source, or after solicitation of a num- (v) Using the services and assistance ber of sources, competition is deter- of the Small Business Administration, mined inadequate. and the Minority Business Develop- (i) Procurement by noncompetitive ment Agency of the Department of proposals may be used only when the Commerce; and award of a contract is infeasible under (vi) Requiring the prime contractor, small purchase procedures, sealed bids if subcontracts are to be let, to take or competitive proposals and one of the the affirmative steps listed in para- following circumstances applies: graphs (e)(2) (i) through (v) of this sec- (A) The item is available only from a tion. single source; (f) Contract cost and price. (1) Grant- (B) The public exigency or emergency ees and subgrantees must perform a for the requirement will not permit a cost or price analysis in connection

725

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00735 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.360 45 CFR Ch. XXV (10–1–11 Edition)

with every procurement action including agency believes such review is ing contract modifications. The meth- needed to ensure that the item and/or od and degree of analysis is dependent service specified is the one being pro- on the facts surrounding the particular posed for purchase. This review gen- procurement situation, but as a start- erally will take place prior to the time ing point, grantees must make inde- the specification is incorporated into a pendent estimates before receiving bids solicitation document. However, if the or proposals. A cost analysis must be grantee or subgrantee desires to have performed when the offeror is required the review accomplished after a solici- to submit the elements of his esti- tation has been developed, the award- mated cost, e.g., under professional, ing agency may still review the speci- consulting, and architectural engineer- fications, with such review usually lim- ing services contracts. A cost analysis ited to the technical aspects of the pro- will be necessary when adequate price posed purchase. competition is lacking, and for sole (2) Grantees and subgrantees must on source procurements, including con- request make available for awarding tract modifications or change orders, agency pre-award review procurement unless price reasonableness can be es- documents, such as requests for pro- tablished on the basis of a catalog or posals or invitations for bids, inde- market price of a commercial product pendent cost estimates, etc. when: sold in substantial quantities to the (i) A grantee’s or subgrantee’s pro- general public or based on prices set by curement procedures or operation fails law or regulation. A price analysis will to comply with the procurement stand- be used in all other instances to deter- ards in this section; or mine the reasonableness of the pro- (ii) The procurement is expected to posed contract price. exceed the simplified acquisition (2) Grantees and subgrantees will ne- threshold and is to be awarded without gotiate profit as a separate element of competition or only one bid or offer is the price for each contract in which received in response to a solicitation; there is no price competition and in all cases where cost analysis is performed. or To establish a fair and reasonable prof- (iii) The procurement, which is ex- it, consideration will be given to the pected to exceed the simplified acquisi- complexity of the work to be per- tion threshold, specifies a ‘‘brand formed, the risk borne by the con- name’’ product; or tractor, the contractor’s investment, (iv) The proposed award is more than the amount of subcontracting, the the simplified acquisition threshold quality of its record of past perform- and is to be awarded to other than the ance, and industry profit rates in the apparent low bidder under a sealed bid surrounding geographical area for procurement; or similar work. (v) A proposed contract modification (3) Costs or prices based on estimated changes the scope of a contract or in- costs for contracts under grants will be creases the contract amount by more allowable only to the extent that costs than the simplified acquisition thresh- incurred or cost estimates included in old. negotiated prices are consistent with (3) A grantee or subgrantee will be Federal cost principles (see § 2541.220). exempt from the pre-award review in Grantees may reference their own cost paragraph (g)(2) of this section if the principles that comply with the appli- awarding agency determines that its cable Federal cost principles. procurement systems comply with the (4) The cost plus a percentage of cost standards of this section. and percentage of construction cost (i) A grantee or subgrantee may re- methods of contracting shall not be quest that its procurement system be used. reviewed by the awarding agency to de- (g) Awarding agency review. (1) Grant- termine whether its system meets ees and subgrantees must make avail- these standards in order for its system able, upon request of the awarding to be certified. Generally, these re- agency, technical specifications on pro- views shall occur where there is a con- posed procurements where the award- tinuous high-dollar funding, and third-

726

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00736 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.360

party contracts are awarded on a reg- conditions, access and records reten- ular basis. tion, suspension of work, and other (ii) A grantee or subgrantee may self- clauses approved by the Office of Fed- certify its procurement system. Such eral Procurement Policy. self-certification shall not limit the (1) Administrative, contractual, or awarding agency’s right to survey the legal remedies in instances where con- system. Under a self-certification pro- tractors violate or breach contract cedure, awarding agencies may wish to terms, and provide for such sanctions rely on written assurances from the and penalties as may be appropriate. grantee or subgrantee that it is com- (Contracts more than the simplified ac- plying with these standards. A grantee quisition threshold) or subgrantee will cite specific proce- (2) Termination for cause and for dures, regulations, standards, etc., as convenience by the grantee or sub- being in compliance with these require- grantee including the manner by which ments and have its system available it will be effected and the basis for set- for review. tlement. (All contracts in excess of (h) Bonding requirements. For con- $10,000) struction or facility improvement con- (3) Compliance with Executive Order tracts or subcontracts exceeding the 11246 of September 24, 1965, entitled simplified acquisition threshold, the ‘‘Equal Employment Opportunity,’’ as awarding agency may accept the bond- amended by Executive Order 11375 of ing policy and requirements of the October 13, 1967, and as supplemented grantee or subgrantee provided the in Department of Labor regulations (41 awarding agency has made a deter- CFR chapter 60). (All construction con- mination that the awarding agency’s tracts awarded in excess of $10,000 by interest is adequately protected. If grantees and their contractors or sub- such a determination has not been grantees) made, the minimum requirements shall be as follows: (4) Compliance with the Copeland (1) A bid guarantee from each bidder ‘‘Anti-Kickback’’ Act (18 U.S.C. 874) as equivalent to five percent of the bid price. supplemented in Department of Labor The ‘‘bid guarantee’’ shall consist of a regulations (29 CFR Part 3). (All con- firm commitment such as a bid bond, tracts and subgrants for construction certified check, or other negotiable in- or repair) strument accompanying a bid as assur- (5) Compliance with the Davis-Bacon ance that the bidder will, upon accept- Act (40 U.S.C. 276a to 276a–7) as supple- ance of his bid, execute such contrac- mented by Department of Labor regu- tual documents as may be required lations (29 CFR Part 5). (Construction within the time specified. contracts in excess of $2000 awarded by (2) A performance bond on the part of grantees and subgrantees when re- the contractor for 100 percent of the con- quired by Federal grant program legis- tract price. A ‘‘performance bond’’ is lation) one executed in connection with a con- (6) Compliance with Sections 103 and tract to secure fulfillment of all the 107 of the Contract Work Hours and contractor’s obligations under such Safety Standards Act (40 U.S.C. 327–330) contract. as supplemented by Department of (3) A payment bond on the part of the Labor regulations (29 CFR Part 5). contractor for 100 percent of the contract (Construction contracts awarded by price. A ‘‘payment bond’’ is one exe- grantees and subgrantees in excess of cuted in connection with a contract to $2000, and in excess of $2500 for other assure payment as required by law of contracts which involve the employ- all persons supplying labor and mate- ment of mechanics or laborers) rial in the execution of the work pro- (7) Notice of awarding agency re- vided for in the contract. quirements and regulations pertaining (i) Contract provisions. A grantee’s to reporting. and subgrantee’s contracts must con- (8) Notice of awarding agency retain provisions in paragraph (i) of this quirements and regulations pertaining section. Federal agencies are permitted to patent rights with respect to any to require changes, remedies, changed discovery or invention which arises or

727

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00737 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.370 45 CFR Ch. XXV (10–1–11 Edition)

is developed in the course of or under the same standards of timing and such contract. amount that apply to cash advances by (9) Awarding agency requirements Federal agencies. and regulations pertaining to copy- (b) All other grantees. All other grant- rights and rights in data. ees shall follow the provisions of this (10) Access by the grantee, the subpart which are applicable to awarding grantee, the Federal grantor agency, agencies when awarding and admin- the Comptroller General of the United istering subgrants (whether on a cost States, or any of their duly authorized reimbursement or fixed amount basis) representatives to any books, docu- of financial assistance to local and In- ments, papers, and records of the con- dian tribal governments. Grantees tractor which are directly pertinent to shall: that specific contract for the purpose (1) Ensure that every subgrant in- of making audit, examination, excludes a provision for compliance with cerpts, and transcriptions. this part; (11) Retention of all required records (2) Ensure that every subgrant infor three years after grantees or sub- cludes any clauses required by Federal grantees make final payments and all statute and executive orders and their other pending matters are closed. implementing regulations; and (12) Compliance with all applicable (3) Ensure that subgrantees are standards, orders, or requirements aware of requirements imposed upon issued under section 306 of the Clean them by Federal statutes and regula- Air Act (42 U.S.C. 1857(h)), section 508 tions. of the Clean Water Act (33 U.S.C. 1368), (c) Exceptions. By their own terms, Executive Order 11738, and Environ- certain provisions of this part do not mental Protection Agency regulations apply to the award and administration (40 CFR part 15). (Contracts, sub- of subgrants: contracts, and subgrants of amounts in (1) § 2541.100; excess of $100,000) (2) § 2541.110; (13) Mandatory standards and policies (3) The letter-of-credit procedures relating to energy efficiency which are specified in Treasury Regulations at 31 contained in the state energy conserva- CFR part 205, cited in § 2541.210; and tion plan issued in compliance with the (4) § 2541.500. Energy Policy and Conservation Act (Pub. L. 94–163, 89 Stat. 871). Subpart E—Reports, Records, [59 FR 41598, Aug. 12, 1994, as amended at 60 Retention and Enforcement FR 19639, 19646, Apr. 19, 1995] § 2541.400 Monitoring and reporting § 2541.370 Subgrants. program performance. (a) States. States shall follow State (a) Monitoring by grantees. Grantees law and procedures when awarding and are responsible for managing the day- administering subgrants (whether on a to-day operations of grant and cost reimbursement or fixed amount subgrant supported activities. Grantees basis) of financial assistance to local must monitor grant and subgrant sup- and Indian tribal governments. States ported activities to assure compliance shall: with applicable Federal requirements (1) Ensure that every subgrant in- and that performance goals are being cludes any clauses required by Federal achieved. Grantee monitoring must statute and executive orders and their cover each program, function or activ- implementing regulations; ity. (2) Ensure that subgrantees are (b) Nonconstruction performance re- aware of requirements imposed upon ports. The Federal agency may, if it de- them by Federal statute and regula- cides that performance information tion; available from subsequent applications (3) Ensure that a provision for com- contains sufficient information to pliance with § 2541.400 is placed in every meet its programmatic needs, require cost reimbursement subgrant; and the grantee to submit a performance (4) Conform any advances of grant report only upon expiration or termi- funds to subgrantees substantially to nation of grant support. Unless waived

728

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00738 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.410

by the Federal agency this report will subgrant supported activity. In such be due on the same date as the final Fi- cases, the grantee must inform the nancial Status Report. Federal agency as soon as the following (1) Grantees shall submit annual per- types of conditions become known: formance reports unless the awarding (1) Problems, delays, or adverse con- agency requires quarterly or semi-an- ditions which will materially impair nual reports. However, performance re- the ability to meet the objective of the ports will not be required more fre- award. This disclosure must include a quently than quarterly. Annual reports statement of the action taken, or con- shall be due 90 days after the grant templated, and any assistance needed year, quarterly or semi-annual reports to resolve the situation. shall be due 30 days after the reporting (2) Favorable developments which en- period. The final performance report able meeting time schedules and objec- will be due 90 days after the expiration tives sooner or at less cost than antici- or termination of grant support. If a pated or producing more beneficial re- justified request is submitted by a sults than originally planned. grantee, the Federal agency may ex- (e) Federal agencies may tend the due date for any performance Site visits. report. Additionally, requirements for make site visits as warranted by pro- unnecessary performance reports may gram needs. be waived by the Federal agency. (f) Waivers, extensions. (1) Federal (2) Performance reports will contain, agencies may waive any performance for each grant, brief information on the report required by this part if not need- following: ed. (i) A comparison of actual accom- (2) The grantee may waive any per- plishments to the objectives estab- formance report from a subgrantee lished for the period. Where the output when not needed. The grantee may ex- of the project can be quantified, a com- tend the due date for any performance putation of the cost per unit of output report from a subgrantee if the grantee may be required if that information will still be able to meet its perform- will be useful. ance reporting obligations to the Fed- (ii) The reasons for slippage if estab- eral agency. lished objectives were not met. (iii) Additional pertinent information § 2541.410 Financial reporting. including, when appropriate, analysis (a) General. (1) Except as provided in and explanation of cost overruns or paragraphs (a) (2) and (5) of this sec- high unit costs. tion, grantees will use only the forms (3) Grantees will not be required to specified in paragraphs (a) through (e) submit more than the original and two of this section, and such supple- copies of performance reports. mentary or other forms as may from (4) Grantees will adhere to the stand- time to time be authorized by OMB, ards in this section in prescribing per- for: formance reporting requirements for (i) Submitting financial reports to subgrantees. Federal agencies; or (c) Construction performance reports. For the most part, on-site technical in- (ii) Requesting advances or reim- spections and certified percentage-of- bursements when letters of credit are completion data are relied on heavily not used. by Federal agencies to monitor (2) Grantees need not apply the forms progress under construction grants and prescribed in this section in dealing subgrants. The Federal agency will re- with their subgrantees. However, quire additional formal performance grantees shall not impose more burden- reports only when considered nec- some requirements on subgrantees. essary, and never more frequently than (3) Grantees shall follow all applica- quarterly. ble standard and supplemental Federal (d) Significant developments. Events agency instructions approved by OMB may occur between the scheduled per- to the extent required under the Paper- formance reporting dates which have work Reduction Act of 1980 for use in significant impact upon the grant or connection with forms specified in

729

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00739 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.410 45 CFR Ch. XXV (10–1–11 Edition)

paragraphs (b) through (e) of this sec- reporting period. When required on an tion. Federal agencies may issue sub- annual basis, they will be due 90 days stantive supplementary instructions after the grant year. Final reports will only with the approval of OMB. Federal be due 90 days after the expiration or agencies may shade out or instruct the termination of grant support. grantee to disregard any line item that (c) Federal Cash Transactions Report— the Federal agency finds unnecessary (1) Form. (i) For grants paid by letter or for its decision making purposes. credit, Treasury check advances or (4) Grantees will not be required to electronic transfer of funds, the grant- submit more than the original and two ee will submit the Standard Form 272, copies of forms required under this Federal Cash Transactions Report, and part. when necessary, its continuation sheet, (5) Federal agencies may provide Standard Form 272a, unless the terms computer outputs to grantees to expe- of the award exempt the grantee from dite or contribute to the accuracy of this requirement. reporting. Federal agencies may accept (ii) These reports will be used by the the required information from grantees Federal agency to monitor cash ad- in machine usable format or computer vanced to grantees and to obtain dis- printouts instead of prescribed forms. bursement or outlay information for (6) Federal agencies may waive any each grant from grantees. The format report required by this section if not of the report may be adapted as appro- needed. priate when reporting is to be accom- (7) Federal agencies may extend the plished with the assistance of auto- due date of any financial report upon matic data processing equipment pro- receiving a justified request from a vided that the information to be subgrantee. mitted is not changed in substance. (b) Financial Status Report—(1) Form. (2) Forecasts of Federal cash require- Grantees will use Standard Form 269 or ments. Forecasts of Federal cash re- 269A, Financial Status Report, to requirements may be required in the port the status of funds for all non- ‘‘Remarks’’ section of the report. construction grants and for construc- (3) Cash in hands of subgrantees. When tion grants when required in accord- considered necessary and feasible by ance with paragraph (e)(2)(iii) of this the Federal agency, grantees may be section. required to report the amount of cash (2) Accounting basis. Each grantee will advances in excess of three days’ needs report program outlays and program in the hands of their subgrantees or income on a cash or accrual basis as contractors and to provide short nar- prescribed by the awarding agency. If rative explanations of actions taken by the Federal agency requires accrual in- the grantee to reduce the excess bal- formation and the grantee’s accounting ances. records are not normally kept on the (4) Frequency and due date. Grantees accrual basis, the grantee shall not be must submit the report no later than 15 required to convert its accounting sys- working days following the end of each tem but shall develop such accrual in- quarter. However, where an advance ei- formation through an analysis of the ther by letter of credit or electronic documentation on hand. transfer of funds is authorized at an (3) Frequency. The Federal agency annualized rate of one million dollars may prescribe the frequency of the re- or more, the Federal agency may report for each project or program. How- quire the report to be submitted within ever, the report will not be required 15 working days following the end of more frequently than quarterly. If the each month. Federal agency does not specify the (d) Request for advance or reimburse- frequency of the report, it will be sub- ment—(1) Advance payments. Requests mitted annually. A final report will be for Treasury check advance payments required upon expiration or termi- will be submitted on Standard Form nation of grant support. 270, Request for Advance or Reimburse- (4) Due date. When reports are re- ment. (This form will not be used for quired on a quarterly or semiannual drawdowns under a letter of credit, basis, they will be due 30 days after the electronic funds transfer or when

730

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00740 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.420

Treasury check advance payments are tion Programs shall be governed by made to the grantee automatically on paragraph (b)(2) of this section. a predetermined basis.) (2) Reimbursements. Requests for reim- § 2541.420 Retention and access re- bursement under nonconstruction quirements for records. grants will also be submitted on Stand- (a) Applicability. (1) This section ap- ard Form 270. (For reimbursement re- plies to all financial and programmatic quests under construction grants, see records, supporting documents, statis- paragraph (e)(1) of this section.) tical records, and other records of (3) The frequency for submitting pay- grantees or subgrantees which are: ment requests is treated in paragraph (i) Required to be maintained by the (b)(3) of this section. terms of this part, program regulations (e) Outlay report and request for reim- or the grant agreement; or bursement for construction programs—(1) (ii) Otherwise reasonably considered Grants that support construction activi- as pertinent to program regulations or ties paid by reimbursement method. (i) the grant agreement. Requests for reimbursement under con- (2) This section does not apply to struction grants will be submitted on records maintained by contractors or Standard Form 271, Outlay Report and subcontractors. For a requirement to Request for Reimbursement for Con- struction Programs. Federal agencies place a provision concerning records in may, however, prescribe the Request certain kinds of contracts, see for Advance or Reimbursement form, § 2541.360(i)(10). specified in paragraph (d) of this sec- (b) Length of retention period. (1) Ex- tion, instead of this form. cept as otherwise provided, records (ii) The frequency for submitting re- must be retained for three years from imbursement requests is treated in the starting date specified in paragraph paragraph (b)(3) of this section. (c) of this section. (2) Grants that support construction ac- (2) If any litigation, claim, negotia- tivities paid by letter of credit, electronic tion, audit or other action involving funds transfer or Treasury check ad- the records has been started before the vance. (i) When a construction grant is expiration of the 3-year period, the paid by letter of credit, electronic records must be retained until comple- funds transfer or Treasury check ad- tion of the action and resolution of all vances, the grantee will report its out- issues which arise from it, or until the lays to the Federal agency using end of the regular 3-year period, which- Standard Form 271, Outlay Report and ever is later. Request for Reimbursement for Con- (3) To avoid duplicate recordkeeping, struction Programs. The Federal agen- awarding agencies may make special cy will provide any necessary special arrangements with grantees and sub- instruction. However, frequency and grantees to retain any records which due date shall be governed by para- are continuously needed for joint use. graphs (b) (3) and (4) of this section. The awarding agency will request (ii) When a construction grant is paid transfer of records to its custody when by Treasury check advances based on it determines that the records possess periodic requests from the grantee, the long-term retention value. When the advances will be requested on the form records are transferred to or main- specified in paragraph (d) of this sec- tained by the Federal agency, the 3- tion. year retention requirement is not ap- (iii) The Federal agency may sub- plicable to the grantee or subgrantee. stitute the Financial Status Report specified in paragraph (b) of this sec- (c) Starting date of retention period—(1) tion for the Outlay Report and Request General. When grant support is contin- for Reimbursement for Construction ued or renewed at annual or other in- Programs. tervals, the retention period for the (3) Accounting basis. The accounting records of each funding period starts on basis for the Outlay Report and Re- the day the grantee or subgrantee sub- quest for Reimbursement for Construc- mits to the awarding agency its single

731

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00741 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.430 45 CFR Ch. XXV (10–1–11 Edition)

or last expenditure report for that pe- (d) Substitution of microfilm. Copies riod. However, if grant support is con- made by microfilming, photocopying, tinued or renewed quarterly, the reten- or similar methods may be substituted tion period for each year’s records for the original records. starts on the day the grantee submits (e) Access to records—(1) Records of its expenditure report for the last quar- grantees and subgrantees. The awarding ter of the Federal fiscal year. In all agency, the Inspector General, and the other cases, the retention period starts Comptroller General of the United on the day the grantee submits its States, or any of their authorized rep- final expenditure report. If an expendi- resentatives, shall have the right of ac- ture report has been waived, the reten- cess to any pertinent books, docu- tion period starts on the day the report ments, papers, or other records of would have been due. grantees and subgrantees which are (2) Real property and equipment pertinent to the grant, in order to records. The retention period for real make audits, examinations, excerpts, property and equipment records starts and transcripts. from the date of the disposition or re- (2) Expiration of right of access. The placement or transfer at the direction rights of access in this section must of the awarding agency. not be limited to the required reten- (3) Records for income transactions tion period but shall last as long as the after grant or subgrant support. In some records are retained. cases grantees must report income (f) Restrictions on public access. The after the period of grant support. Federal Freedom of Information Act (5 Where there is such a requirement, the U.S.C. 552) does not apply to records. retention period for the records per- Unless required by Federal, State, or taining to the earning of the income local law, grantees and subgrantees are starts from the end of the grantee’s fis- not required to permit public access to cal year in which the income is earned. their records. (4) Indirect cost rate proposals, cost al- [59 FR 41598, Aug. 12, 1994, as amended at 73 locations plans, etc. This paragraph ap- FR 53762, Sept. 17, 2008] plies to the following types of documents, and their supporting records: § 2541.430 Enforcement. indirect cost rate computations or pro- (a) Remedies for noncompliance. If a posals, cost allocation plans, and any grantee or subgrantee materially fails similar accounting computations of to comply with any term of an award, the rate at which a particular group of whether stated in a Federal statute or costs is chargeable (such as computer regulation, an assurance, in a State usage charge back rates or composite plan or application, a notice of award, fringe benefit rates). or elsewhere, the awarding agency may (i) If submitted for negotiation. If the take one or more of the following ac- proposal, plan, or other computation is tions, as appropriate in the cir- required to be submitted to the Federal cumstances: Government (or to the grantee) to form (1) Temporarily withhold cash pay- the basis for negotiation of the rate, ments pending correction of the defi- then the 3-year retention period for its ciency by the grantee or subgrantee or supporting records starts from the date more severe enforcement action by the of such submission. awarding agency; (ii) If not submitted for negotiation. If (2) Disallow (that is, deny both use of the proposal, plan, or other computa- funds and matching credit for) all or tion is not required to be submitted to part of the cost of the activity or ac- the Federal Government (or to the tion not in compliance; grantee) for negotiation purposes, then (3) Wholly or partly suspend or ter- the 3-year retention period for the pro- minate the current award for the posal plan, or computation and its sup- grantee’s or subgrantee’s program; porting records starts from end of the (4) Withhold further awards for the fiscal year (or other accounting period) program; or covered by the proposal, plan, or other (5) Take other remedies that may be computation. legally available.

732

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00742 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2541.500

(b) Hearings, appeals. In taking an en- date, and in the case of partial termi- forcement action, the awarding agency nation, the portion to be terminated. will provide the grantee or subgrantee However, if, in the case of a partial ter- an opportunity for such hearing, ap- mination, the awarding agency deter- peal, or other administrative pro- mines that the remaining portion of ceeding to which the grantee or sub- the award will not accomplish the pur- grantee is entitled under any statute poses for which the award was made, or regulation applicable to the action the awarding agency may terminate involved. the award in its entirety under either (c) Effects of suspension and termi- § 2541.430 or paragraph (a) of this sec- nation. Costs of grantee or subgrantee tion. resulting from obligations incurred by the grantee or subgrantee during a sus- Subpart F—After the Grant pension or after termination of an Requirement award are not allowable unless the awarding agency expressly authorizes § 2541.500 Closeout. them in the notice of suspension or ter- (a) General. The Federal agency will mination or subsequently. Other grant- close out the award when it determines ee or subgrantee costs during suspen- that all applicable administrative ac- sion or after termination which are tions and all required work of the necessary and not reasonably avoidable grant has been completed. are allowable if: (b) Reports. Within 90 days after the (1) The costs result from obligations expiration or termination of the grant, which were properly incurred by the the grantee must submit all financial, grantee or subgrantee before the effec- performance, and other reports re- tive date of suspension or termination, quired as a condition of the grant. are not in anticipation of it, and, in the Upon request by the grantee, Federal case of a termination, are agencies may extend this time frame. noncancellable; and These may include but are not limited (2) The costs would be allowable if to: the award were not suspended or ex- (1) Final performance or progress re- pired normally at the end of the fund- port; ing period in which the termination (2) Financial Status Report (SF 269) takes effect. or Outlay Report and Request for Re- (d) Relationship to debarment and sus- imbursement for Construction Pro- pension. The enforcement remedies grams (SF–271) (as applicable); identified in this section, including (3) Final request for payment (SF– suspension and termination, do not 270) (if applicable); preclude grantee or subgrantee from (4) Invention disclosure (if applica- being subject to ‘‘Debarment and Sus- ble); pension’’ under E.O. 12549 (see (5) Federally-owned property report. § 2541.350). In accordance with § 2541.320(f), a grantee must submit an inventory of all fed- § 2541.440 Termination for conven- erally owned property (as distinct from ience. property acquired with grant funds) for Except as provided in § 2541.430 which it is accountable and request dis- awards may be terminated in whole or position instructions from the Federal in part only as follows: agency of property no longer needed. (a) By the awarding agency with the (c) Cost adjustment. The Federal agen- consent of the grantee or subgrantee in cy will, within 90 days after receipt of which case the two parties shall agree reports in paragraph (b) of this section, upon the termination conditions, in- make upward or downward adjust- cluding the effective date and in the ments to the allowable costs. case of partial termination, the portion (d) Cash adjustments. (1) The Federal to be terminated; or agency will make prompt payment to (b) By the grantee or subgrantee the grantee for allowable reimbursable upon written notification to the award- costs. ing agency, setting forth the reasons (2) The grantee must immediately re- for such termination, the effective fund to the Federal agency any balance

733

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00743 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2541.510 45 CFR Ch. XXV (10–1–11 Edition)

of unobligated (unencumbered) cash Subpart B—Pre-Award Requirements advanced that is not authorized to be retained for use on other grants. 2543.10 Purpose. 2543.11 Pre-award policies. § 2541.510 Later disallowances and ad- 2543.12 Forms for applying for Federal as- justments. sistance. 2543.13 Debarment and suspension. The closeout of a grant does not af- 2543.14 Special award conditions. fect: 2543.15 Metric system of measurement. (a) The Federal agency’s right to dis- 2543.16 Resource Conservation and Recovery allow costs and recover funds on the Act. basis of a later audit or other review; 2543.17 Certifications and representations. (b) The grantee’s obligation to return any funds due as a result of later re- Subpart C—Post-Award Requirements funds, corrections, or other trans- FINANCIAL AND PROGRAM MANAGEMENT actions; (c) Records retention as required in 2543.20 Purpose of financial and program management. § 2541.420; 2543.21 Standards for financial management (d) Property management require- systems. ments in §§ 2541.3120 and 2541.320; and 2543.22 Payment. (e) Audit requirements in § 2541.410. 2543.23 Cost sharing or matching. 2543.24 Program income. § 2541.520 Collection of amounts due. 2543.25 Revision of budget and program (a) Any funds paid to a grantee in ex- plans. cess of the amount to which the grant- 2543.26 Non-Federal audits. ee is finally determined to be entitled 2543.27 Allowable costs. 2543.28 Period of availability of funds. under the terms of the award constitute a debt to the Federal Govern- PROPERTY STANDARDS ment. If not paid within a reasonable 2543.30 Purpose of property standards. period after demand, the Federal agen- 2543.31 Insurance coverage. cy may reduce the debt by: 2543.32 Real property. (1) Making an administrative offset 2543.33 Federally-owned and exempt prop- against other requests for reimburse- erty. ments; 2543.34 Equipment. (2) Withholding advance payments 2543.35 Supplies and other expendable prop- otherwise due to the grantee; or erty. (3) Other action permitted by law. 2543.36 Intangible property. (b) Except where otherwise provided 2543.37 Property trust relationship. by statutes or regulations, the Federal PROCUREMENT STANDARDS agency will charge interest on an over- 2543.40 Purpose of procurement standards. due debt in accordance with the Fed- 2543.41 Recipient responsibilities. eral Claims Collection Standards (4 2543.42 Codes of conduct. CFR Ch. II). The date from which inter- 2543.43 Competition. est is computed is not extended by liti- 2543.44 Procurement procedures. gation or the filing of any form of ap- 2543.45 Cost and price analysis. peal. 2543.46 Procurement records. 2543.47 Contract administration. PART 2543—GRANTS AND AGREE- 2543.48 Contract provisions. MENTS WITH INSTITUTIONS OF REPORTS AND RECORDS HIGHER EDUCATION, HOSPITALS, 2543.50 Purpose of reports and records. AND OTHER NON-PROFIT ORGA- 2543.51 Monitoring and reporting program NIZATIONS performance. 2543.52 Financial reporting. 2543.53 Retention and access requirements Subpart A—General for records. Sec. TERMINATION AND ENFORCEMENT 2543.1 Purpose. 2543.2 Definitions. 2543.60 Purpose of termination and enforce- 2543.3 Effect on other issuances. ment. 2543.4 Deviations. 2543.61 Termination. 2543.5 Subawards. 2543.62 Enforcement.

734

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00744 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.2

Subpart D—After-the-Award Requirements (i) Services performed by the recipient, and 2543.70 Purpose. (ii) Goods and other tangible prop- 2543.71 Closeout procedures. 2543.72 Subsequent adjustments and con- erty delivered to purchasers, and tinuing responsibilities. (2) Amounts becoming owed to the 2543.73 Collection of amounts due. recipient for which no current services or performance is required by the re- Subpart E—Statutory Compliance cipient. 2543.80 Contract provisions. (c) Acquisition cost of equipment means 2543.81 Equal employment opportunity. the net invoice price of the equipment, 2543.82 Copeland ‘‘Anti-Kickback’’ Act. including the cost of modifications, at- 2543.83 Davis-Bacon Act. tachments, accessories, or auxiliary 2543.84 Contract Work Hours and Safety apparatus necessary to make the prop- Standards Act. erty usable for the purpose for which it 2543.85 Rights to inventions made under was acquired. Other charges, such as contract or agreement. the cost of installation, transportation, 2543.86 Clean Air Act and the Federal Water taxes, duty or protective in-transit in- Pollution Control Act. 2543.87 Byrd anti-lobbying amendment. surance, shall be included or excluded 2543.88 Debarment and suspension. from the unit acquisition cost in accordance with the recipient’s regular AUTHORITY: 42 U.S.C. 12501 et seq. accounting practices. SOURCE: 60 FR 13055, Mar. 10, 1995, unless (d) Advance means a payment made otherwise noted. by Treasury check or other appropriate payment mechanism to a recipient Subpart A—General upon its request either before outlays are made by the recipient or through § 2543.1 Purpose. the use of predetermined payment This Circular establishes uniform ad- schedules. ministrative requirements for Federal (e) Award means financial assistance grants and agreements awarded to in- that provides support or stimulation to stitutions of higher education, hos- accomplish a public purpose. Awards pitals, and other non-profit organiza- include grants and other agreements in tions. Federal awarding agencies shall the form of money or property in lieu not impose additional or inconsistent of money, by the Federal Government requirements, except as provided in to an eligible recipient. The term does Sections 2543.4, and 2543.14 or unless not include: technical assistance, specifically required by Federal statute which provides services instead of or executive order. Non-profit organi- money; other assistance in the form of zations that implement Federal pro- loans, loan guarantees, interest sub- grams for the States are also subject to sidies, or insurance; direct payments of State requirements. any kind to individuals; and, contracts which are required to be entered into § 2543.2 Definitions. and administered under procurement (a) Accrued expenditures means the laws and regulations. charges incurred by the recipient dur- (f) Cash contributions means the re- ing a given period requiring the provi- cipient’s cash outlay, including the sion of funds for: outlay of money contributed to the re- (1) Goods and other tangible property cipient by third parties. received; (g) Closeout means the process by (2) Services performed by employees, which a Federal awarding agency de- contractors, subrecipients, and other termines that all applicable adminis- payees; and, trative actions and all required work of (3) Other amounts becoming owed the award have been completed by the under programs for which no current recipient and Federal awarding agency. services or performance is required. (h) Contract means a procurement (b) Accrued income means the sum of: contract under an award or subaward, (1) Earnings during a given period and a procurement subcontract under a from recipient’s or subrecipient’s contract.

735

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00745 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.2 45 CFR Ch. XXV (10–1–11 Edition)

(i) Cost sharing or matching means (q) Federal share of real property, that portion of project or program equipment, or supplies means that per- costs not borne by the Federal Govern- centage of the property’s acquisition ment. costs and any improvement expendi- (j) Date of completion means the date tures paid with Federal funds. on which all work under an award is (r) Funding period means the period of completed or the date on the award time when Federal funding is available document, or any supplement or for obligation by the recipient. amendment thereto, on which Federal (s) Intangible property and debt instru- sponsorship ends. ments means, but is not limited to, (k) means those Disallowed costs trademarks, copyrights, patents and charges to an award that the Federal patent applications and such property awarding agency determines to be un- as loans, notes and other debt instru- allowable, in accordance with the ap- ments, lease agreements, stock and plicable Federal cost principles or other terms and conditions contained other instruments of property owner- in the award. ship, whether considered tangible or in- (l) Equipment means tangible non- tangible. expendable personal property including (t) Obligations means the amounts of exempt property charged directly to orders placed, contracts and grants the award having a useful life of more awarded, services received and similar than one year and an acquisition cost transactions during a given period that of $5,000 or more per unit. However, require payment by the recipient dur- consistent with recipient policy, lower ing the same or a future period. limits may be established. (u) Outlays or expenditures means (m) Excess property means property charges made to the project or pro- under the control of any Federal gram. They may be reported on a cash awarding agency that, as determined or accrual basis. For reports prepared by the head thereof, is no longer re- on a cash basis, outlays are the sum of quired for its needs or the discharge of cash disbursements for direct charges its responsibilities. for goods and services, the amount of (n) Exempt property means tangible indirect expense charged, the value of personal property acquired in whole or third party in-kind contributions ap- in part with Federal funds, where the plied and the amount of cash advances Federal awarding agency has statutory and payments made to subrecipients. authority to vest title in the recipient For reports prepared on an accrual without further obligation to the Fed- basis, outlays are the sum of cash dis- eral Government. An example of ex- bursements for direct charges for goods empt property authority is contained and services, the amount of indirect ex- in the Federal Grant and Cooperative pense incurred, the value of in-kind Agreement Act (31 U.S.C. 6306), for contributions applied, and the net in- property acquired under an award to crease (or decrease) in the amounts conduct basic or applied research by a owed by the recipient for goods and non-profit institution of higher education or non-profit organization other property received, for services whose principal purpose is conducting performed by employees, contractors, scientific research. subrecipients and other payees and (o) Federal awarding agency means other amounts becoming owed under the Federal agency that provides an programs for which no current services award to the recipient. or performance are required. (p) Federal funds authorized means the (v) Personal property means property total amount of Federal funds obli- of any kind except real property. It gated by the Federal Government for may be tangible, having physical exist- use by the recipient. This amount may ence, or intangible, having no physical include any authorized carryover of un- existence, such as copyrights, patents, obligated funds from prior funding pe- or securities. riods when permitted by agency regula- (w) Prior approval means written ap- tions or agency implementing instruc- proval by an authorized official evi- tions. dencing prior consent.

736

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00746 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.2

(x) Program income means gross in- subrecipients at the discretion of the come earned by the recipient that is di- Federal awarding agency. The term rectly generated by a supported activ- does not include government-owned ity or earned as a result of the award contractor-operated facilities or re- (see exclusions in paragraphs § 2543.24 search centers providing continued (e) and (h)). Program income includes, support for mission-oriented, large- but is not limited to, income from fees scale programs that are government- for services performed, the use or rent- owned or controlled, or are designated al of real or personal property acquired as federally-funded research and devel- under federally-funded projects, the opment centers. sale of commodities or items fabricated (dd) Research and development means under an award, license fees and royal- all research activities, both basic and ties on patents and copyrights, and in- applied, and all development activities terest on loans made with award funds. that are supported at universities, col- Interest earned on advances of Federal leges, and other non-profit institu- funds is not program income. Except as tions. ‘‘Research’’ is defined as a sys- otherwise provided in Federal awarding tematic study directed toward fuller agency regulations or the terms and scientific knowledge or understanding conditions of the award, program in- of the subject studied. ‘‘Development’’ come does not include the receipt of is the systematic use of knowledge and principal on loans, rebates, credits, dis- understanding gained from research di- counts, etc., or interest earned on any rected toward the production of useful of them. materials, devices, systems, or meth- (y) Project costs means all allowable ods, including design and development costs, as set forth in the applicable of prototypes and processes. The term Federal cost principles, incurred by a research also includes activities in- recipient and the value of the contribu- volving the training of individuals in tions made by third parties in accom- research techniques where such activi- plishing the objectives of the award ties utilize the same facilities as other during the project period. research and development activities (z) Project period means the period es- and where such activities are not in- tablished in the award document dur- cluded in the instruction function. ing which Federal sponsorship begins (ee) Small awards means a grant or and ends. cooperative agreement not exceeding (aa) Property means, unless otherwise the small purchase threshold fixed at stated, real property, equipment, in- 41 U.S.C. 403(11) (currently $25,000). tangible property and debt instru- (ff) Subaward means an award of fi- ments. nancial assistance in the form of (bb) Real property means land, includ- money, or property in lieu of money, ing land improvements, structures and made under an award by a recipient to appurtenances thereto, but excludes an eligible subrecipient or by a sub- movable machinery and equipment. recipient to a lower tier subrecipient. (cc) Recipient means an organization The term includes financial assistance receiving financial assistance directly when provided by any legal agreement, from Federal awarding agencies to even if the agreement is called a con- carry out a project or program. The tract, but does not include procure- term includes public and private insti- ment of goods and services nor does it tutions of higher education, public and include any form of assistance which is private hospitals, and other quasi-pub- excluded from the definition of lic and private non-profit organizations ‘‘award’’ in paragraph (e). such as, but not limited to, community (gg) Subrecipient means the legal enti- action agencies, research institutes, ty to which a subaward is made and educational associations, and health which is accountable to the recipient centers. The term may include com- for the use of the funds provided. The mercial organizations, foreign or inter- term may include foreign or international organizations (such as agen- national organizations (such as agencies of the United Nations) which are cies of the United Nations) at the dis- recipients, subrecipients, or contrac- cretion of the Federal awarding agen- tors or subcontractors of recipients or cy.

737

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00747 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.3 45 CFR Ch. XXV (10–1–11 Edition)

(hh) Supplies means all personal prop- ent’s approved negotiated indirect cost erty excluding equipment, intangible rate. property, and debt instruments as de- (oo) Working capital advance means a fined in this section, and inventions of procedure where by funds are advanced a contractor conceived or first actually to the recipient to cover its estimated reduced to practice in the performance disbursement needs for a given initial of work under a funding agreement period. (‘‘subject inventions’’), as defined in 37 CFR part 401, ‘‘Rights to Inventions § 2543.3 Effect on other issuances. Made by Nonprofit Organizations and For awards subject to this Circular, Small Business Firms Under Govern- all administrative requirements of ment Grants, Contracts, and Coopera- codified program regulations, program tive Agreements.’’ manuals, handbooks and other non- (ii) Suspension means an action by a regulatory materials which are incon- Federal awarding agency that tempo- sistent with the requirements of this rarily withdraws Federal sponsorship Circular shall be superseded, except to under an award, pending corrective ac- the extent they are required by stat- tion by the recipient or pending a deci- ute, or authorized in accordance with sion to terminate the award by the the deviations provision in Section Federal awarding agency. Suspension § 2543.4. of an award is a separate action from suspension under Federal agency regu- § 2543.4 Deviations. lations implementing E.O.s 12549 and The Office of Management and Budg- 12689, ‘‘Debarment and Suspension.’’ et (OMB) may grant exceptions for (jj) Termination means the cancella- classes of grants or recipients subject tion of Federal sponsorship, in whole or to the requirements of this Circular in part, under an agreement at any when exceptions are not prohibited by time prior to the date of completion. statute. However, in the interest of (kk) Third party in-kind contributions maximum uniformity, exceptions from means the value of non-cash contribu- the requirements of this Circular shall tions provided by non-Federal third be permitted only in unusual cir- parties. Third party in-kind contribu- cumstances. Federal awarding agencies tions may be in the form of real prop- may apply more restrictive require- erty, equipment, supplies and other ex- ments to a class of recipients when ap- pendable property, and the value of proved by OMB. Federal awarding goods and services directly benefiting agencies may apply less restrictive re- and specifically identifiable to the quirements when awarding small project or program. awards, except for those requirements (ll) Unliquidated obligations, for finan- which are statutory. Exceptions on a cial reports prepared on a cash basis, case-by-case basis may also be made by means the amount of obligations in- Federal awarding agencies. curred by the recipient that have not been paid. For reports prepared on an § 2543.5 Subawards. accrued expenditure basis, they rep- Unless sections of this Circular spe- resent the amount of obligations in- cifically exclude subrecipients from curred by the recipient for which an coverage, the provisions of this Cir- outlay has not been recorded. cular shall be applied to subrecipients (mm) Unobligated balance means the performing work under awards if such portion of the funds authorized by the subrecipients are institutions of higher Federal awarding agency that has not education, hospitals or other non-profit been obligated by the recipient and is organizations. State and local govern- determined by deducting the cumu- ment subrecipients are subject to the lative obligations from the cumulative provisions of regulations implementing funds authorized. the grants management common rule, (nn) Unrecovered indirect cost means ‘‘Uniform Administrative Require- the difference between the amount ments for Grants and Cooperative awarded and the amount which could Agreements to State and Local Gov- have been awarded under the recipi- ernments,’’ published at 53 FR 8034.

738

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00748 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.14

Subpart B—Pre-Award (c) For Federal programs covered by Requirements E.O. 12372, ‘‘Intergovernmental Review of Federal Programs,’’ the applicant § 2543.10 Purpose. shall complete the appropriate sections of the SF–424 (Application for Federal Sections § 2543.11 through § 2543.17 Assistance) indicating whether the ap- prescribes forms and instructions and plication was subject to review by the other pre-award matters to be used in State Single Point of Contact (SPOC). applying for Federal awards. The name and address of the SPOC for § 2543.11 Pre-award policies. a particular State can be obtained from the Federal awarding agency or the (a) Use of Grants and Cooperative Catalog of Federal Domestic Assistance. Agreements, and Contracts. In each in- The SPOC shall advise the applicant stance, the Federal awarding agency whether the program for which applica- shall decide on the appropriate award tion is made has been selected by that instrument (i.e., grant, cooperative State for review. agreement, or contract). The Federal (d) Federal awarding agencies that do Grant and Cooperative Agreement Act not use the SF–424 form should indi- (31 U.S.C. 6301–08) governs the use of cate whether the application is subject grants, cooperative agreements and to review by the State under E.O. 12372. contracts. A grant or cooperative agreement shall be used only when the § 2543.13 Debarment and suspension. principal purpose of a transaction is to accomplish a public purpose of support Federal awarding agencies and re- or stimulation authorized by Federal cipients shall comply with the non- statute. The statutory criterion for procurement debarment and suspension choosing between grants and coopera- common rule implementing E.O.s 12549 tive agreements is that for the latter, and 12689, ‘‘Debarment and Suspen- ‘‘substantial involvement is expected sion.’’ This common rule restricts sub- between the executive agency and the awards and contracts with certain par- State, local government, or other re- ties that are debarred, suspended or cipient when carrying out the activity otherwise excluded from or ineligible contemplated in the agreement.’’ Con- for participation in Federal assistance tracts shall be used when the principal programs or activities. purpose is acquisition of property or § 2543.14 Special award conditions. services for the direct benefit or use of the Federal Government. If an applicant or recipient: (b) Public Notice and Priority Set- (a) Has a history of poor perform- ting. Federal awarding agencies shall ance, notify the public of its intended fund- (b) Is not financially stable, ing priorities for discretionary grant (c) Has a management system that programs, unless funding priorities are does not meet the standards prescribed established by Federal statute. in this Circular, (d) Has not conformed to the terms § 2543.12 Forms for applying for Fed- and conditions of a previous award, or eral assistance. (e) is not otherwise responsible, Fed- (a) Federal awarding agencies shall eral awarding agencies may impose ad- comply with the applicable report ditional requirements as needed, pro- clearance requirements of 5 CFR part vided that such applicant or recipient 1320, ‘‘Controlling Paperwork Burdens is notified in writing as to: the nature on the Public,’’ with regard to all of the additional requirements, the rea- forms used by the Federal awarding son why the additional requirements agency in place of or as a supplement are being imposed, the nature of the to the Standard Form 424 (SF–424) se- corrective action needed, the time al- ries. lowed for completing the corrective ac- (b) Applicants shall use the SF–424 tions, and the method for requesting series or those forms and instructions reconsideration of the additional re- prescribed by the Federal awarding quirements imposed. Any special con- agency. ditions shall be promptly removed once

739

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00749 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.15 45 CFR Ch. XXV (10–1–11 Edition)

the conditions that prompted them by statute, executive order, or regula- have been corrected. tion on an annual basis, if the recipients have ongoing and continuing rela- § 2543.15 Metric system of measure- tionships with the agency. Annual cer- ment. tifications and representations shall be The Metric Conversion Act, as signed by responsible officials with the amended by the Omnibus Trade and authority to ensure recipients’ compli- Competitiveness Act (15 U.S.C. 205) de- ance with the pertinent requirements. clares that the metric system is the preferred measurement system for U.S. Subpart C—Post-Award trade and commerce. The Act requires Requirements each Federal agency to establish a date or dates in consultation with the Sec- FINANCIAL AND PROGRAM MANAGEMENT retary of Commerce, when the metric system of measurement will be used in § 2543.20 Purpose of financial and pro- the agency’s procurements, grants, and gram management. other business-related activities. Met- Sections 2543.21 through 2543.25 pre- ric implementation may take longer scribe standards for financial manage- where the use of the system is initially ment systems, methods for making impractical or likely to cause signifi- payments and rules for: satisfying cost cant inefficiencies in the accomplish- sharing and matching requirements, ment of federally-funded activities. accounting for program income, budget Federal awarding agencies shall follow revision approvals, making audits, de- the provisions of E.O. 12770, ‘‘Metric termining allowability of cost, and es- Usage in Federal Government Pro- tablishing fund availability. grams.’’ § 2543.21 Standards for financial man- § 2543.16 Resource Conservation and agement systems. Recovery Act. (a) Federal awarding agencies shall Under the Act Resource Conservation require recipients to relate financial and Recovery Act (42 U.S.C. 6962), any data to performance data and develop State agency or agency of a political unit cost information whenever prac- subdivision of a State which is using tical. appropriated Federal funds must com- (b) Recipients’ financial management ply with Section 6002. Section 6002 re- systems shall provide for the following: quires that preference be given in pro- (1) Accurate, current and complete curement programs to the purchase of disclosure of the financial results of specific products containing recycled each federally-sponsored project or materials identified in guidelines de- program in accordance with the report- veloped by the Environmental Protec- ing requirements set forth in § 2543.51. tion Agency (EPA) (40 CFR parts 247– If a Federal awarding agency requires 254). reporting on an accrual basis from a re- Accordingly, State and local institu- cipient that maintains its records on tions of higher education, hospitals, other than an accrual basis, the recipi- and non-profit organizations that re- ent shall not be required to establish ceive direct Federal awards or other an accrual accounting system. These Federal funds shall give preference in recipients may develop such accrual their procurement programs funded data for its reports on the basis of an with Federal funds to the purchase of analysis of the documentation on hand. recycled products pursuant to the EPA (2) Records that identify adequately guidelines. the source and application of funds for federally-sponsored activities. These § 2543.17 Certifications and represen- records shall contain information per- tations. taining to Federal awards, authoriza- Unless prohibited by statute or codi- tions, obligations, unobligated bal- fied regulation, each Federal awarding ances, assets, outlays, income and in- agency is authorized and encouraged to terest. allow recipients to submit certifi- (3) Effective control over and ac- cations and representations required countability for all funds, property and

740

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00750 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.22

other assets. Recipients shall ade- § 2543.22 Payment. quately safeguard all such assets and (a) Payment methods shall minimize assure they are used solely for author- the time elapsing between the transfer ized purposes. of funds from the United States Treas- (4) Comparison of outlays with budg- ury and the issuance or redemption of et amounts for each award. Whenever checks, warrants, or payment by other appropriate, financial information means by the recipients. Payment should be related to performance and methods of State agencies or instru- unit cost data. mentalities shall be consistent with (5) Written procedures to minimize Treasury-State CMIA agreements or the time elapsing between the transfer default procedures codified at 31 CFR of funds to the recipient from the U.S. part 205. Treasury and the issuance or redemp- (b) Recipients are to be paid in ad- tion of checks, warrants or payments vance, provided they maintain or dem- by other means for program purposes onstrate the willingness to maintain: by the recipient. To the extent that the (1) Written procedures that minimize provisions of the Cash Management Im- the time elapsing between the transfer provement Act (CMIA) (Pub. L. 101–453) of funds and disbursement by the re- govern, payment methods of State cipient, and agencies, instrumentalities, and fiscal (2) Financial management systems agents shall be consistent with CMIA that meet the standards for fund con- Treasury-State Agreements or the trol and accountability as established CMIA default procedures codified at 31 in § 2543.21. Cash advances to a recipi- CFR part 205, ‘‘Withdrawal of Cash ent organization shall be limited to the from the Treasury for Advances under minimum amounts needed and be Federal Grant and Other Programs.’’ timed to be in accordance with the ac- (6) Written procedures for deter- tual, immediate cash requirements of mining the reasonableness, allocability the recipient organization in carrying and allowability of costs in accordance out the purpose of the approved pro- with the provisions of the applicable gram or project. The timing and Federal cost principles and the terms amount of cash advances shall be as and conditions of the award. close as is administratively feasible to (7) Accounting records including cost the actual disbursements by the recipi- accounting records that are supported ent organization for direct program or by source documentation. project costs and the proportionate (c) Where the Federal Government share of any allowable indirect costs. guarantees or insures the repayment of (c) Whenever possible, advances shall money borrowed by the recipient, the be consolidated to cover anticipated Federal awarding agency, at its discre- cash needs for all awards made by the Federal awarding agency to the recipi- tion, may require adequate bonding ent. and insurance if the bonding and insurance requirements of the recipient are (1) Advance payment mechanisms include, but are not limited to, Treasury not deemed adequate to protect the in- check and electronic funds transfer. terest of the Federal Government. (2) Advance payment mechanisms are (d) The Federal awarding agency may subject to 31 CFR part 205. require adequate fidelity bond coverage (3) Recipients shall be authorized to where the recipient lacks sufficient submit requests for advances and reim- coverage to protect the Federal Gov- bursements at least monthly when ernment’s interest. electronic fund transfers are not used. (e) Where bonds are required in the (d) Requests for Treasury check ad- situations described above, the bonds vance payment shall be submitted on shall be obtained from companies hold- SF–270, ‘‘Request for Advance or Reim- ing certificates of authority as accept- bursement,’’ or other forms as may be able sureties, as prescribed in 31 CFR authorized by OMB. This form is not to part 223, ‘‘Surety Companies Doing be used when Treasury check advance Business With the United States.’’ payments are made to the recipient

741

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00751 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.22 45 CFR Ch. XXV (10–1–11 Edition)

automatically through the use of a pre- charges made by recipients at any time determined payment schedule or if pre- during the project period unless: cluded by special Federal awarding (1) A recipient has failed to comply agency instructions for electronic with the project objectives, the terms funds transfer. and conditions of the award, or Federal (e) Reimbursement is the preferred reporting requirements, or method when the requirements in para- (2) The recipient or subrecipient is graph (b) cannot be met. Federal delinquent in a debt to the United awarding agencies may also use this States as defined in OMB Circular A– method on any construction agree- 129, ‘‘Managing Federal Credit Pro- ment, or if the major portion of the grams.’’ Under such conditions, the construction project is accomplished Federal awarding agency may, upon through private market financing or reasonable notice, inform the recipient Federal loans, and the Federal assist- that payments shall not be made for ance constitutes a minor portion of the obligations incurred after a specified project. date until the conditions are corrected (1) When the reimbursement method or the indebtedness to the Federal Gov- is used, the Federal awarding agency ernment is liquidated. shall make payment within 30 days (i) Standards governing the use of after receipt of the billing, unless the banks and other institutions as deposi- billing is improper. tories of funds advanced under awards are as follows: (2) Recipients shall be authorized to (1) Except for situations described in submit request for reimbursement at paragraph (i)(2), Federal awarding least monthly when electronic funds agencies shall not require separate de- transfers are not used. pository accounts for funds provided to (f) If a recipient cannot meet the cri- a recipient or establish any eligibility teria for advance payments and the requirements for depositories for funds Federal awarding agency has deter- provided to a recipient. However, re- mined that reimbursement is not fea- cipients must be able to account for sible because the recipient lacks suffi- the receipt, obligation and expenditure cient working capital, the Federal of funds. awarding agency may provide cash on a (2) Advances of Federal funds shall be working capital advance basis. Under deposited and maintained in insured this procedure, the Federal awarding accounts whenever possible. agency shall advance cash to the re- (j) Consistent with the national goal cipient to cover its estimated disburse- of expanding the opportunities for ment needs for an initial period gen- women-owned and minority-owned erally geared to the awardee’s dis- business enterprises, recipients shall be bursing cycle. Thereafter, the Federal encouraged to use women-owned and awarding agency shall reimburse the minority-owned banks (a bank which is recipient for its actual cash disburse- owned at least 50 percent by women or ments. The working capital advance minority group members). method of payment shall not be used (k) Recipients shall maintain ad- for recipients unwilling or unable to vances of Federal funds in interest provide timely advances to their sub- bearing accounts, unless: recipient to meet the subrecipient’s ac- (1) The recipient receives less than tual cash disbursements. $120,000 in Federal awards per year. (g) To the extent available, recipi- (2) The best reasonably available in- ents shall disburse funds available from terest bearing account would not be ex- repayments to and interest earned on a pected to earn interest in excess of $250 revolving fund, program income, re- per year on Federal cash balances. bates, refunds, contract settlements, (3) The depository would require an audit recoveries and interest earned on average or minimum balance so high such funds before requesting additional that it would not be feasible within the cash payments. expected Federal and non-Federal cash (h) Unless otherwise required by stat- resources. ute, Federal awarding agencies shall (l) For those entities where CMIA not withhold payments for proper and its implementing regulations do

742

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00752 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.23

not apply, interest earned on Federal (2) Are not included as contributions advances deposited in interest bearing for any other federally-assisted project accounts shall be remitted annually to or program. Department of Health and Human (3) Are necessary and reasonable for Services, Payment Management Sys- proper and efficient accomplishment of tem, Rockville, MD 20852. Interest project or program objectives. amounts up to $250 per year may be re- (4) Are allowable under the applica- tained by the recipient for administra- ble cost principles. tive expense. State universities and (5) Are not paid by the Federal Gov- hospitals shall comply with CMIA, as it ernment under another award, except pertains to interest. If an entity sub- where authorized by Federal statute to ject to CMIA uses its own funds to pay be used for cost sharing or matching. pre-award costs for discretionary (6) Are provided for in the approved awards without prior written approval budget when required by the Federal awarding agency. from the Federal awarding agency, it (7) Conform to other provisions of waives its right to recover the interest this Circular, as applicable. under CMIA. (b) Unrecovered indirect costs may be (m) Except as noted elsewhere in this included as part of cost sharing or Circular, only the following forms shall matching only with the prior approval be authorized for the recipients in re- of the Federal awarding agency. questing advances and reimburse- (c) Values for recipient contributions ments. Federal agencies shall not re- of services and property shall be estab- quire more than an original and two lished in accordance with the applica- copies of these forms. ble cost principles. If a Federal award- (1) SF–270, Request for Advance or ing agency authorizes recipients to do- Reimbursement. Each Federal award- nate buildings or land for construction/ ing agency shall adopt the SF–270 as a facilities acquisition projects or long- standard form for all nonconstruction term use, the value of the donated programs when electronic funds trans- property for cost sharing or matching fer or predetermined advance methods shall be the lesser of: are not used. Federal awarding agen- (1) The certified value of the remain- cies, however, have the option of using ing life of the property recorded in the this form for construction programs in recipient’s accounting records at the lieu of the SF–271, ‘‘Outlay Report and time of donation, or. Request for Reimbursement for Con- (2) The current fair market value. struction Programs.’’ However, when there is sufficient jus- (2) SF–271, Outlay Report and Re- tification, the Federal awarding agen- quest for Reimbursement for Construc- cy may approve the use of the current tion Programs. Each Federal awarding fair market value of the donated prop- agency shall adopt the SF–271 as the erty, even if it exceeds the certified standard form to be used for requesting value at the time of donation to the reimbursement for construction pro- project. grams. However, a Federal awarding (d) Volunteer services furnished by agency may substitute the SF–270 professional and technical personnel, consultants, and other skilled and un- when the Federal awarding agency de- skilled labor may be counted as cost termines that it provides adequate in- sharing or matching if the service is an formation to meet Federal needs. integral and necessary part of an ap- § 2543.23 Cost sharing or matching. proved project or program. Rates for volunteer services shall be consistent (a) All contributions, including cash with those paid for similar work in the and third party in-kind, shall be ac- recipient’s organization. In those in- cepted as part of the recipient’s cost stances in which the required skills are sharing or matching when such con- not found in the recipient organization, tributions meet all of the following cri- rates shall be consistent with those teria. paid for similar work in the labor mar- (1) Are verifiable from the recipient’s ket in which the recipient competes for records. the kind of services involved. In either

743

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00753 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.24 45 CFR Ch. XXV (10–1–11 Edition)

case, paid fringe benefits that are rea- (2) The value of donated equipment sonable, allowable, and allocable may shall not exceed the fair market value be included in the valuation. of equipment of the same age and con- (e) When an employer other than the dition at the time of donation. recipient furnishes the services of an (3) The value of donated space shall employee, these services shall be val- not exceed the fair rental value of com- ued at the employee’s regular rate of parable space as established by an inde- pay (plus an amount of fringe benefits pendent appraisal of comparable space that are reasonable, allowable, and al- and facilities in a privately-owned locable, but exclusive of overhead building in the same locality. costs), provided these services are in (4) The value of loaned equipment the same skill for which the employee shall not exceed its fair rental value. is normally paid. (5) The following requirements per- (f) Donated supplies may include tain to the recipient’s supporting such items as expendable equipment, records for in-kind contributions from office supplies, laboratory supplies or third parties. workshop and classroom supplies. (i) Volunteer services shall be docu- Value assessed to donated supplies in- mented and, to the extent feasible, sup- cluded in the cost sharing or matching ported by the same methods used by share shall be reasonable and shall not the recipient for its own employees. exceed the fair market value of the (ii) The basis for determining the property at the time of the donation. valuation for personal service, mate- (g) The method used for determining rial, equipment, buildings and land cost sharing or matching for donated shall be documented. equipment, buildings and land for which title passes to the recipient may § 2543.24 Program income. differ according to the purpose of the (a) Federal awarding agencies shall award: apply the standards set forth in this (1) If the purpose of the award is to section in requiring recipient organiza- assist the recipient in the acquisition tions to account for program income of equipment, buildings or land, the related to projects financed in whole or total value of the donated property in part with Federal funds. may be claimed as cost sharing or (b) Except as provided in paragraph matching, or. (h) below, program income earned dur- (2) If the purpose of the award is to ing the project period shall be retained support activities that require the use by the recipient and, in accordance of equipment, buildings or land, nor- with Federal awarding agency regula- mally only depreciation or use charges tions or the terms and conditions of for equipment and buildings may be the award, shall be used in one or more made. However, the full value of equip- of the ways listed in the following: ment or other capital assets and fair (1) Added to funds committed to the rental charges for land may be allowed, project by the Federal awarding agency provided that the Federal awarding and recipient and used to further eligi- agency has approved the charges. ble project or program objectives. (h) The value of donated property (2) Used to finance the non-Federal shall be determined in accordance with share of the project or program. the usual accounting policies of the re- (3) Deducted from the total project or cipient, with the following qualifica- program allowable cost in determining tions. the net allowable costs on which the (1) The value of donated land and Federal share of costs is based. buildings shall not exceed its fair mar- (c) When an agency authorizes the ket value at the time of donation to disposition of program income as de- the recipient as established by an inde- scribed in paragraph (b)(1) or (b)(2), pendent appraiser (e.g., certified real program income in excess of any limits property appraiser or General Services stipulated shall be used in accordance Administration representative) and with paragraph (b)(3). certified by a responsible official of the (d) In the event that the Federal recipient. awarding agency does not specify in its

744

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00754 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.25

regulations or the terms and condi- plans, and request prior approvals for tions of the award how program income budget and program plan revisions, in is to be used, paragraph (b)(3) shall accordance with this section. apply automatically to all projects or (c) For nonconstruction awards, re- programs except research. For awards cipients shall request prior approvals that support research, paragraph (b)(1) from Federal awarding agencies for one shall apply automatically unless the or more of the following program or awarding agency indicates in the terms budget related reasons: and conditions another alternative on (1) Change in the scope or the objec- the award or the recipient is subject to tive of the project or program (even if special award conditions, as indicated there is no associated budget revision in § 2543.14. requiring prior written approval). (e) Unless Federal awarding agency (2) Change in a key person specified regulations or the terms and condi- in the application or award document. tions of the award provide otherwise, (3) The absence for more than three recipients shall have no obligation to months, or a 25 percent reduction in the Federal Government regarding pro- time devoted to the project, by the ap- gram income earned after the end of proved project director or principal in- the project period. vestigator. (f) If authorized by Federal awarding (4) The need for additional Federal agency regulations or the terms and funding. conditions of the award, costs incident (5) The transfer of amounts budgeted to the generation of program income for indirect costs to absorb increases in may be deducted from gross income to direct costs, or vice versa, if approval determine program income, provided is required by the Federal awarding these costs have not been charged to agency. the award. (6) The inclusion, unless waived by (g) Proceeds from the sale of property the Federal awarding agency, of costs shall be handled in accordance with the that require prior approval in accord- requirements of the Property Stand- ance with OMB Circular A–21, ‘‘Cost ards. (See § 2543.28 through § 2543.36.) Principles for Institutions of Higher (h) Unless Federal awarding agency Education,’’ OMB Circular A–122, ‘‘Cost regulations or the terms and condition Principles for Non-Profit Organiza- of the award provide otherwise, recipi- tions,’’ or 45 CFR part 74 Appendix E, ents shall have no obligation to the ‘‘Principles for Determining Costs Ap- Federal Government with respect to plicable to Research and Development program income earned from license Under Grants and Contracts With Hos- fees and royalties for copyrighted ma- pitals,’’ or 48 CFR part 31, ‘‘Contract terial, patents, patent applications, Cost Principles and Procedures,’’ as ap- trademarks, and inventions produced plicable. under an award. However, Patent and (7) The transfer of funds allotted for Trademark Amendments (35 U.S.C. 18) training allowances (direct payment to apply to inventions made under an ex- trainees) to other categories of experimental, developmental, or research pense. award. (8) Unless described in the application and funded in the approved § 2543.25 Revision of budget and pro- awards, the subaward, transfer or con- gram plans. tracting out of any work under an (a) The budget plan is the financial award. This provision does not apply to expression of the project or program as the purchase of supplies, material, approved during the award process. It equipment or general support services. may include either the Federal and (d) No other prior approval require- non-Federal share, or only the Federal ments for specific items may be im- share, depending upon Federal award- posed unless a deviation has been ap- ing agency requirements. It shall be re- proved by OMB. lated to performance for program eval- (e) Except for requirements listed in uation purposes whenever appropriate. paragraphs (c)(1) and (c)(4) of this sec- (b) Recipients are required to report tion, Federal awarding agencies are au- deviations from budget and program thorized, at their option, to waive cost-

745

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00755 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.25 45 CFR Ch. XXV (10–1–11 Edition)

related and administrative prior writ- cy. No Federal awarding agency shall ten approvals required by this Circular permit a transfer that would cause any and OMB Circulars A–21 and A–122. Federal appropriation or part thereof Such waivers may include authorizing to be used for purposes other than recipients to do any one or more of the those consistent with the original in- following: tent of the appropriation. (1) Incur pre-award costs 90 calendar (g) All other changes to nonconstruc- days prior to award or more than 90 tion budgets, except for the changes de- calendar days with the prior approval scribed in paragraph (j), do not require of the Federal awarding agency. All prior approval. pre-award costs are incurred at the re- (h) For construction awards, recipi- cipient’s risk (i.e., the Federal award- ents shall request prior written ap- ing agency is under no obligation to re- proval promptly from Federal awarding imburse such costs if for any reason agencies for budget revisions whenever the recipient does not receive an award (1), (2) or (3) apply. or if the award is less than anticipated (1) The revision results from changes and inadequate to cover such costs). in the scope or the objective of the (2) Initiate a one-time extension of project or program. the expiration date of the award of up (2) The need arises for additional to 12 months unless one or more of the Federal funds to complete the project. following conditions apply. For one- time extensions, the recipient must no- (3) A revision is desired which in- tify the Federal awarding agency in volves specific costs for which prior writing with the supporting reasons written approval requirements may be and revised expiration date at least 10 imposed consistent with applicable days before the expiration date speci- OMB cost principles listed in Section fied in the award. This one-time exten- § 2543.27. sion may not be exercised merely for (i) No other prior approval require- the purpose of using unobligated bal- ments for specific items may be im- ances. posed unless a deviation has been ap- (i) The terms and conditions of award proved by OMB. prohibit the extension. (j) When a Federal awarding agency (ii) The extension requires additional makes an award that provides support Federal funds. for both construction and nonconstruc- (iii) The extension involves any tion work, the Federal awarding agen- change in the approved objectives or cy may require the recipient to request scope of the project. prior approval from the Federal award- (3) Carry forward unobligated bal- ing agency before making any fund or ances to subsequent funding periods. budget transfers between the two types (4) For awards that support research, of work supported. unless the Federal awarding agency (k) For both construction and non- provides otherwise in the award or in construction awards, Federal awarding the agency’s regulations, the prior ap- agencies shall require recipients to no- proval requirements described in para- tify the Federal awarding agency in graph (e) are automatically waived writing promptly whenever the amount (i.e., recipients need not obtain such of Federal authorized funds is expected prior approvals) unless one of the con- to exceed the needs of the recipient for ditions included in paragraph (e)(2) ap- the project period by more than $5,000 plies. or five percent of the Federal award, (f) The Federal awarding agency whichever is greater. This notification may, at its option, restrict the transfer shall not be required if an application of funds among direct cost categories for additional funding is submitted for or programs, functions and activities a continuation award. for awards in which the Federal share (l) When requesting approval for of the project exceeds $100,000 and the budget revisions, recipients shall use cumulative amount of such transfers the budget forms that were used in the exceeds or is expected to exceed 10 per- application unless the Federal award- cent of the total budget as last ap- ing agency indicates a letter of request proved by the Federal awarding agen- suffices.

746

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00756 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.31

(m) Within 30 calendar days from the Circular A–122, ‘‘Cost Principles for date of receipt of the request for budg- Non-Profit Organizations.’’ The allow- et revisions, Federal awarding agencies ability of costs incurred by institutions shall review the request and notify the of higher education is determined in recipient whether the budget revisions accordance with the provisions of OMB have been approved. If the revision is Circular A–21, ‘‘Cost Principles for still under consideration at the end of Educational Institutions.’’ The allow- 30 calendar days, the Federal awarding ability of costs incurred by hospitals is agency shall inform the recipient in determined in accordance with the pro- writing of the date when the recipient visions of Appendix E of 45 CFR part 74, may expect the decision. ‘‘Principles for Determining Costs Ap- plicable to Research and Development § 2543.26 Non-Federal audits. Under Grants and Contracts with Hos- (a) Recipients and subrecipients that pitals.’’ The allowability of costs in- are institutions of higher education or curred by commercial organizations other non-profit organizations (includ- and those non-profit organizations listing hospitals) shall be subject to the ed in Attachment C to Circular A–122 is audit requirements contained in the determined in accordance with the pro- Single Audit Act Amendments of 1996 visions of the Federal Acquisition Reg- (31 U.S.C. 7501–7507) and revised OMB ulation (FAR) at 48 CFR part 31. Circular A–133, ‘‘Audits of States, Local Governments, and Non-Profit Or- § 2543.28 Period of availability of ganizations.’’ funds. (b) State and local governments shall Where a funding period is specified, a be subject to the audit requirements recipient may charge to the grant only contained in the Single Audit Act allowable costs resulting from obliga- Amendments of 1996 (31 U.S.C. 7501– tions incurred during the funding pe- 7507) and revised OMB Circular A–133, riod and any pre-award costs author- ‘‘Audits of States, Local Governments, ized by the Federal awarding agency. and Non-Profit Organizations.’’ (c) For-profit hospitals not covered PROPERTY STANDARDS by the audit provisions of revised OMB Circular A–133 shall be subject to the § 2543.30 Purpose of property stand- audit requirements of the Federal ards. awarding agencies. Sections 2543.31 through 2543.37 set (d) Commercial organizations shall forth uniform standards governing be subject to the audit requirements of management and disposition of prop- the Federal awarding agency or the erty furnished by the Federal Govern- prime recipient as incorporated into ment whose cost was charged to a the award document. project supported by a Federal award. [60 FR 13055, Mar. 10, 1995, as amended at 62 Federal awarding agencies shall re- FR 45939, 45947, Aug. 29, 1997] quire recipients to observe these standards under awards and shall not impose § 2543.27 Allowable costs. additional requirements, unless specifi- For each kind of recipient, there is a cally required by Federal statute. The set of Federal principles for deter- recipient may use its own property mining allowable costs. Allowability of management standards and procedures costs shall be determined in accord- provided it observes the provisions of ance with the cost principles applicable § 2543.31 through § 2543.37. to the entity incurring the costs. Thus, allowability of costs incurred by State, § 2543.31 Insurance coverage. local or federally-recognized Indian Recipients shall, at a minimum, pro- tribal governments is determined in vide the equivalent insurance coverage accordance with the provisions of OMB for real property and equipment ac- Circular A–87, ‘‘Cost Principles for quired with Federal funds as provided State and Local Governments.’’ The al- to property owned by the recipient. lowability of costs incurred by non- Federally-owned property need not be profit organizations is determined in insured unless required by the terms accordance with the provisions of OMB and conditions of the award.

747

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00757 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.32 45 CFR Ch. XXV (10–1–11 Edition)

§ 2543.32 Real property. dures shall be established that provide Each Federal awarding agency shall for competition to the extent prac- prescribe requirements for recipients ticable and result in the highest pos- concerning the use and disposition of sible return. real property acquired in whole or in (3) The recipient may be directed to part under awards. Unless otherwise transfer title to the property to the provided by statute, such require- Federal Government or to an eligible ments, at a minimum, shall contain third party provided that, in such the following: cases, the recipient shall be entitled to (a) Title to real property shall vest in compensation for its attributable per- the recipient subject to the condition centage of the current fair market that the recipient shall use the real value of the property. property for the authorized purpose of § 2543.33 Federally-owned and exempt the project as long as it is needed and property. shall not encumber the property without approval of the Federal awarding (a) Federally-owned property. agency. (1) Title to federally-owned property (b) The recipient shall obtain written remains vested in the Federal Govern- approval by the Federal awarding agen- ment. Recipients shall submit annually cy for the use of real property in other an inventory listing of federally-owned federally-sponsored projects when the property in their custody to the Fed- recipient determines that the property eral awarding agency. Upon completion is no longer needed for the purpose of of the award or when the property is no the original project. Use in other longer needed, the recipient shall re- projects shall be limited to those under port the property to the Federal award- federally-sponsored projects (i.e., ing agency for further Federal agency awards) or programs that have pur- utilization. poses consistent with those authorized (2) If the Federal awarding agency for support by the Federal awarding has no further need for the property, it agency. shall be declared excess and reported to (c) When the real property is no the General Services Administration, longer needed as provided in para- unless the Federal awarding agency graphs (a) and (b), the recipient shall has statutory authority to dispose of request disposition instructions from the property by alternative methods the Federal awarding agency or its suc- (e.g., the authority provided by the cessor Federal awarding agency. The Federal Technology Transfer Act (15 Federal awarding agency shall observe U.S.C. 3710(I)) to donate research equip- one or more of the following disposi- ment to educational and non-profit or- tion instructions. ganizations in accordance with E.O. (1) The recipient may be permitted to 12821, ‘‘Improving Mathematics and retain title without further obligation Science Education in Support of the to the Federal Government after it National Education Goals’’). Appro- compensates the Federal Government priate instructions shall be issued to for that percentage of the current fair the recipient by the Federal awarding market value of the property attrib- agency. utable to the Federal participation in (b) Exempt property. When statutory the project. authority exists, the Federal awarding (2) The recipient may be directed to agency has the option to vest title to sell the property under guidelines pro- property acquired with Federal funds vided by the Federal awarding agency in the recipient without further obliga- and pay the Federal Government for tion to the Federal Government and that percentage of the current fair under conditions the Federal awarding market value of the property attrib- agency considers appropriate. Such utable to the Federal participation in property is ‘‘exempt property.’’ Should the project (after deducting actual and a Federal awarding agency not estab- reasonable selling and fix-up expenses, lish conditions, title to exempt prop- if any, from the sales proceeds). When erty upon acquisition shall vest in the the recipient is authorized or required recipient without further obligation to to sell the property, proper sales proce- the Federal Government.

748

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00758 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.34

§ 2543.34 Equipment. ment equipment subject to the ap- (a) Title to equipment acquired by a proval of the Federal awarding agency. recipient with Federal funds shall vest (f) The recipient’s property manage- in the recipient, subject to conditions ment standards for equipment acquired of this section. with Federal funds and federally-owned (b) The recipient shall not use equip- equipment shall include all of the fol- ment acquired with Federal funds to lowing: provide services to non-Federal outside (1) Equipment records shall be main- organizations for a fee that is less than tained accurately and shall include the private companies charge for equiva- following information. lent services, unless specifically au- (i) A description of the equipment. thorized by Federal statute, for as long (ii) Manufacturer’s serial number, as the Federal Government retains an model number, Federal stock number, interest in the equipment. national stock number, or other identi- (c) The recipient shall use the equip- fication number. ment in the project or program for (iii) Source of the equipment, includ- which it was acquired as long as needing the award number. ed, whether or not the project or pro- (iv) Whether title vests in the recipi- gram continues to be supported by Fed- ent or the Federal Government. eral funds and shall not encumber the (v) Acquisition date (or date re- property without approval of the Fed- ceived, if the equipment was furnished eral awarding agency. When no longer by the Federal Government) and cost. needed for the original project or pro- (vi) Information from which one can gram, the recipient shall use the equip- calculate the percentage of Federal ment in connection with its other fed- participation in the cost of the equip- erally-sponsored activities, in the fol- ment (not applicable to equipment fur- lowing order of priority: nished by the Federal Government). (1) Activities sponsored by the Fed- (vii) Location and condition of the eral awarding agency which funded the equipment and the date the informa- original project; then tion was reported. (2) activities sponsored by other Fed- (viii) Unit acquisition cost. eral awarding agencies. (ix) Ultimate disposition data, in- (d) During the time that equipment cluding date of disposal and sales price is used on the project or program for or the method used to determine cur- which it was acquired, the recipient rent fair market value where a recipi- shall make it available for use on other ent compensates the Federal awarding projects or programs if such other use agency for its share. will not interfere with the work on the (2) Equipment owned by the Federal project or program for which the equip- Government shall be identified to indi- ment was originally acquired. First cate Federal ownership. preference for such other use shall be (3) A physical inventory of equipment given to other projects or programs shall be taken and the results rec- sponsored by the Federal awarding onciled with the equipment records at agency that financed the equipment; least once every two years. Any dif- second preference shall be given to ferences between quantities deter- projects or programs sponsored by mined by the physical inspection and other Federal awarding agencies. If the those shown in the accounting records equipment is owned by the Federal shall be investigated to determine the Government, use on other activities causes of the difference. The recipient not sponsored by the Federal Govern- shall, in connection with the inven- ment shall be permissible if authorized tory, verify the existence, current uti- by the Federal awarding agency. User lization, and continued need for the charges shall be treated as program in- equipment. come. (4) A control system shall be in effect (e) When acquiring replacement to insure adequate safeguards to pre- equipment, the recipient may use the vent loss, damage, or theft of the equipment to be replaced as trade-in or equipment. Any loss, damage, or theft sell the equipment and use the proof equipment shall be investigated and ceeds to offset the costs of the replace- fully documented; if the equipment was

749

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00759 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.35 45 CFR Ch. XXV (10–1–11 Edition)

owned by the Federal Government, the recipient’s selling and handling ex- recipient shall promptly notify the penses. Federal awarding agency. (2) If the recipient is instructed to (5) Adequate maintenance procedures ship the equipment elsewhere, the re- shall be implemented to keep the cipient shall be reimbursed by the Fed- equipment in good condition. eral Government by an amount which (6) Where the recipient is authorized is computed by applying the percent- or required to sell the equipment, prop- age of the recipient’s participation in er sales procedures shall be established the cost of the original project or pro- which provide for competition to the gram to the current fair market value extent practicable and result in the of the equipment, plus any reasonable highest possible return. shipping or interim storage costs in- (g) When the recipient no longer curred. needs the equipment, the equipment (3) If the recipient is instructed to may be used for other activities in ac- otherwise dispose of the equipment, the recipient shall be reimbursed by the cordance with the following standards. Federal awarding agency for such costs For equipment with a current per unit incurred in its disposition. fair market value of $5,000 or more, the (4) The Federal awarding agency may recipient may retain the equipment for reserve the right to transfer the title other uses provided that compensation to the Federal Government or to a is made to the original Federal award- third party named by the Federal Gov- ing agency or its successor. The ernment when such third party is oth- amount of compensation shall be com- erwise eligible under existing statutes. puted by applying the percentage of Such transfer shall be subject to the Federal participation in the cost of the following standards. original project or program to the cur- (i) The equipment shall be appro- rent fair market value of the equip- priately identified in the award or oth- ment. If the recipient has no need for erwise made known to the recipient in the equipment, the recipient shall re- writing. quest disposition instructions from the (ii) The Federal awarding agency Federal awarding agency. The Federal shall issue disposition instructions awarding agency shall determine within 120 calendar days after receipt whether the equipment can be used to of a final inventory. The final inven- meet the agency’s requirements. If no tory shall list all equipment acquired requirement exists within that agency, with grant funds and federally-owned the availability of the equipment shall equipment. If the Federal awarding be reported to the General Services Ad- agency fails to issue disposition in- ministration by the Federal awarding structions within the 120 calendar day agency to determine whether a require- period, the recipient shall apply the ment for the equipment exists in other standards of this section, as appro- Federal agencies. The Federal award- priate. ing agency shall issue instructions to (iii) When the Federal awarding the recipient no later than 120 calendar agency exercises its right to take title, days after the recipient’s request and the equipment shall be subject to the the following procedures shall govern. provisions for federally-owned equip- (1) If so instructed or if disposition ment. instructions are not issued within 120 calendar days after the recipient’s re- § 2543.35 Supplies and other expend- quest, the recipient shall sell the able property. equipment and reimburse the Federal (a) Title to supplies and other ex- awarding agency an amount computed pendable property shall vest in the re- by applying to the sales proceeds the cipient upon acquisition. If there is a percentage of Federal participation in residual inventory of unused supplies the cost of the original project or pro- exceeding $5,000 in total aggregate gram. However, the recipient shall be value upon termination or completion permitted to deduct and retain from of the project or program and the sup- the Federal share $500 or ten percent of plies are not needed for any other fed- the proceeds, whichever is less, for the erally-sponsored project or program,

750

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00760 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.36

the recipient shall retain the supplies the research data solely in response to for use on non-Federal sponsored ac- a FOIA request, the agency may charge tivities or sell them, but shall, in ei- the requester a reasonable fee equaling ther case, compensate the Federal Gov- the full incremental cost of obtaining ernment for its share. The amount of the research data. This fee should re- compensation shall be computed in the flect costs incurred by the agency, the same manner as for equipment. recipient, and applicable subrecipients. (b) The recipient shall not use sup- This fee is in addition to any fees the plies acquired with Federal funds to agency may assess under the FOIA (5 provide services to non-Federal outside U.S.C. 552(a)(4)(A)). organizations for a fee that is less than (2) The following definitions apply private companies charge for equiva- for purposes of this paragraph (d): lent services, unless specifically au- (i) Research data is defined as the re- thorized by Federal statute as long as corded factual material commonly ac- the Federal Government retains an in- cepted in the scientific community as terest in the supplies. necessary to validate research findings, but not any of the following: prelimi- § 2543.36 Intangible property. nary analyses, drafts of scientific pa- (a) The recipient may copyright any pers, plans for future research, peer re- work that is subject to copyright and views, or communications with col- was developed, or for which ownership leagues. This ‘‘recorded’’ material ex- was purchased, under an award. The cludes physical objects (e.g., laboratory Federal awarding agency(ies) reserve a samples). Research data also do not in- royalty-free, nonexclusive and irrev- clude: ocable right to reproduce, publish, or (A) Trade secrets, commercial infor- otherwise use the work for Federal pur- mation, materials necessary to be held poses, and to authorize others to do so. confidential by a researcher until they (b) Recipients are subject to applica- are published, or similar information ble regulations governing patents and which is protected under law; and inventions, including government-wide (B) Personnel and medical informa- regulations issued by the Department tion and similar information the dis- of Commerce at 37 CFR part 401, closure of which would constitute a ‘‘Rights to Inventions Made by Non- clearly unwarranted invasion of per- profit Organizations and Small Busi- sonal privacy, such as information that ness Firms Under Government Grants, could be used to identify a particular Contracts and Cooperative Agree- person in a research study. ments.’’ (ii) Published is defined as either (c) The Federal Government has the when: right to: (A) Research findings are published (1) Obtain, reproduce, publish or oth- in a peer-reviewed scientific or tech- erwise use the data first produced nical journal; or under an award; and (B) A Federal agency publicly and of- (2) Authorize others to receive, repro- ficially cites the research findings in duce, publish, or otherwise use such support of an agency action that has data for Federal purposes. the force and effect of law. (d)(1) In addition, in response to a (iii) Used by the Federal Government in Freedom of Information Act (FOIA) re- developing an agency action that has the quest for research data relating to pub- force and effect of law is defined as when lished research findings produced under an agency publicly and officially cites an award that were used by the Federal the research findings in support of an Government in developing an agency agency action that has the force and action that has the force and effect of effect of law. law, the Federal awarding agency shall (3) The requirements set forth in request, and the recipient shall pro- paragraph (d)(1) of this section do not vide, within a reasonable time, the re- apply to commercial organizations. search data so that they can be made (e) Title to intangible property and available to the public through the pro- debt instruments acquired under an cedures established under the FOIA. If award or subaward vests upon acquisi- the Federal awarding agency obtains tion in the recipient. The recipient

751

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00761 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.37 45 CFR Ch. XXV (10–1–11 Edition)

shall use that property for the origi- tive issues arising out of procurements nally-authorized purpose, and the re- entered into in support of an award or cipient shall not encumber the prop- other agreement. This includes dis- erty without approval of the Federal putes, claims, protests of award, source awarding agency. When no longer need- evaluation or other matters of a con- ed for the originally authorized pur- tractual nature. Matters concerning pose, disposition of the intangible prop- violation of statute are to be referred erty shall occur in accordance with the to such Federal, State or local author- provisions of paragraph § 2543.34 (g). ity as may have proper jurisdiction.

[60 FR 13055, Mar. 10, 1995, as amended at 65 § 2543.42 Codes of conduct. FR 53609, Sept. 5, 2000] The recipient shall maintain written § 2543.37 Property trust relationship. standards of conduct governing the Real property, equipment, intangible performance of its employees engaged property and debt instruments that are in the award and administration of acquired or improved with Federal contracts. No employee, officer, or funds shall be held in trust by the re- agent shall participate in the selection, cipient as trustee for the beneficiaries award, or administration of a contract of the project or program under which supported by Federal funds if a real or the property was acquired or improved. apparent conflict of interest would be Agencies may require recipients to involved. Such a conflict would arise record liens or other appropriate no- when the employee, officer, or agent, tices of record to indicate that per- any member of his or her immediate sonal or real property has been ac- family, his or her partner, or an orga- quired or improved with Federal funds nization which employs or is about to and that use and disposition conditions employ any of the parties indicated apply to the property. herein, has a financial or other interest in the firm selected for an award. The PROCUREMENT STANDARDS officers, employees, and agents of the recipient shall neither solicit nor ac- § 2543.40 Purpose of procurement cept gratuities, favors, or anything of standards. monetary value from contractors, or Sections § 2543.41 through § 2543.48 set parties to subagreements. However, re- forth standards for use by recipients in cipients may set standards for situa- establishing procedures for the pro- tions in which the financial interest is curement of supplies and other expend- not substantial or the gift is an unso- able property, equipment, real property licited item of nominal value. The and other services with Federal funds. standards of conduct shall provide for These standards are furnished to en- disciplinary actions to be applied for sure that such materials and services violations of such standards by offi- are obtained in an effective manner cers, employees, or agents of the re- and in compliance with the provisions cipient. of applicable Federal statutes and executive orders. No additional procure- § 2543.43 Competition. ment standards or requirements shall All procurement transactions shall be imposed by the Federal awarding be conducted in a manner to provide, agencies upon recipients, unless spe- to the maximum extent practical, open cifically required by Federal statute or and free competition. The recipient executive order or approved by OMB. shall be alert to organizational conflicts of interest as well as noncompeti- § 2543.41 Recipient responsibilities. tive practices among contractors that The standards contained in this sec- may restrict or eliminate competition tion do not relieve the recipient of the or otherwise restrain trade. In order to contractual responsibilities arising ensure objective contractor perform- under its contract(s). The recipient is ance and eliminate unfair competitive the responsible authority, without re- advantage, contractors that develop or course to the Federal awarding agency, draft specifications, requirements, regarding the settlement and satisfac- statements of work, invitations for tion of all contractual and administra- bids and/or requests for proposals shall

752

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00762 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.44

be excluded from competing for such (b) Positive efforts shall be made by procurements. Awards shall be made to recipients to utilize small businesses, the bidder or offeror whose bid or offer minority-owned firms, and women’s is responsive to the solicitation and is business enterprises, whenever pos- most advantageous to the recipient, sible. Recipients of Federal awards price, quality and other factors consid- shall take all of the following steps to ered. Solicitations shall clearly set further this goal. forth all requirements that the bidder (1) Ensure that small businesses, mi- or offeror shall fulfill in order for the nority-owned firms, and women’s busi- bid or offer to be evaluated by the re- ness enterprises are used to the fullest cipient. Any and all bids or offers may extent practicable. be rejected when it is in the recipient’s (2) Make information on forthcoming interest to do so. opportunities available and arrange time frames for purchases and con- § 2543.44 Procurement procedures. tracts to encourage and facilitate par- (a) All recipients shall establish writ- ticipation by small businesses, minor- ten procurement procedures. These ity-owned firms, and women’s business procedures shall provide for, at a min- enterprises. imum, that: (3) Consider in the contract process (1) Recipients avoid purchasing un- whether firms competing for larger necessary items, contracts intend to subcontract with (2) Where appropriate, an analysis is small businesses, minority-owned made of lease and purchase alter- firms, and women’s business enter- natives to determine which would be prises. the most economical and practical pro- (4) Encourage contracting with con- curement for the Federal Government, sortiums of small businesses, minority- and owned firms and women’s business en- (3) Solicitations for goods and serv- terprises when a contract is too large ices provide for all of the following: for one of these firms to handle individ- (i) A clear and accurate description ually. of the technical requirements for the (5) Use the services and assistance, as material, product or service to be pro- appropriate, of such organizations as cured. In competitive procurements, the Small Business Administration and such a description shall not contain the Department of Commerce’s Minor- features which unduly restrict com- ity Business Development Agency in petition. the solicitation and utilization of (ii) Requirements which the bidder/ small businesses, minority-owned firms offeror must fulfill and all other fac- and women’s business enterprises. tors to be used in evaluating bids or (c) The type of procuring instruments proposals. used (e.g., fixed price contracts, cost (iii) A description, whenever prac- reimbursable contracts, purchase or- ticable, of technical requirements in ders, and incentive contracts) shall be terms of functions to be performed or determined by the recipient but shall performance required, including the be appropriate for the particular pro- range of acceptable characteristics or curement and for promoting the best minimum acceptable standards. interest of the program or project in- (iv) The specific features of ‘‘brand volved. The ‘‘cost-plus-a-percentage-of- name or equal’’ descriptions that bid- cost’’ or ‘‘percentage of construction ders are required to meet when such cost’’ methods of contracting shall not items are included in the solicitation. be used. (v) The acceptance, to the extent (d) Contracts shall be made only with practicable and economically feasible, responsible contractors who possess of products and services dimensioned in the potential ability to perform suc- the metric system of measurement. cessfully under the terms and condi- (vi) Preference, to the extent prac- tions of the proposed procurement. ticable and economically feasible, for Consideration shall be given to such products and services that conserve matters as contractor integrity, record natural resources and protect the envi- of past performance, financial and ronment and are energy efficient. technical resources or accessibility to

753

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00763 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.45 45 CFR Ch. XXV (10–1–11 Edition)

other necessary resources. In certain (b) Justification for lack of competi- circumstances, contracts with certain tion when competitive bids or offers parties are restricted by agencies’ im- are not obtained; and plementation of E.O.s 12549 and 12689, (c) Basis for award cost or price. ‘‘Debarment and Suspension.’’ (e) Recipients shall, on request, make § 2543.47 Contract administration. available for the Federal awarding A system for contract administration agency, pre-award review and procure- shall be maintained to ensure con- ment documents, such as request for tractor conformance with the terms, proposals or invitations for bids, inde- conditions and specifications of the pendent cost estimates, etc., when any contract and to ensure adequate and of the following conditions apply. timely follow up of all purchases. Re- (1) A recipient’s procurement proce- cipients shall evaluate contractor per- dures or operation fails to comply with formance and document, as appro- the procurement standards in the Fed- priate, whether contractors have met eral awarding agency’s implementation the terms, conditions and specifica- of this Circular. tions of the contract. (2) The procurement is expected to exceed the small purchase threshold § 2543.48 Contract provisions. fixed at 41 U.S.C. 403 (11) (currently The recipient shall include, in addi- $25,000) and is to be awarded without tion to provisions to define a sound and competition or only one bid or offer is complete agreement, the following pro- received in response to a solicitation. visions in all contracts. The following (3) The procurement, which is ex- provisions shall also be applied to sub- pected to exceed the small purchase contracts. threshold, specifies a ‘‘brand name’’ (a) Contracts in excess of the small product. purchase threshold shall contain con- (4) The proposed award over the tractual provisions or conditions that small purchase threshold is to be allow for administrative, contractual, awarded to other than the apparent or legal remedies in instances in which low bidder under a sealed bid procure- a contractor violates or breaches the ment. contract terms, and provide for such (5) A proposed contract modification remedial actions as may be appro- changes the scope of a contract or in- priate. creases the contract amount by more (b) All contracts in excess of the than the amount of the small purchase small purchase threshold shall contain threshold. suitable provisions for termination by the recipient, including the manner by § 2543.45 Cost and price analysis. which termination shall be effected and the basis for settlement. In addi- Some form of cost or price analysis tion, such contracts shall describe con- shall be made and documented in the ditions under which the contract may procurement files in connection with be terminated for default as well as every procurement action. Price anal- conditions where the contract may be ysis may be accomplished in various terminated because of circumstances ways, including the comparison of beyond the control of the contractor. price quotations submitted, market (c) Except as otherwise required by prices and similar indicia, together statute, an award that requires the with discounts. Cost analysis is the re- contracting (or subcontracting) for view and evaluation of each element of construction or facility improvements cost to determine reasonableness, shall provide for the recipient to follow allocability and allowability. its own requirements relating to bid guarantees, performance bonds, and § 2543.46 Procurement records. payment bonds unless the construction Procurement records and files for contract or subcontract exceeds purchases in excess of the small pur- $100,000. For those contracts or sub- chase threshold shall include the fol- contracts exceeding $100,000, the Fed- lowing at a minimum: eral awarding agency may accept the (a) Basis for contractor selection; bonding policy and requirements of the

754

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00764 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.51

recipient, provided the Federal award- REPORTS AND RECORDS ing agency has made a determination that the Federal Government’s interest § 2543.50 Purpose of reports and is adequately protected. If such a de- records. termination has not been made, the Sections § 2543.51 through § 2543.53 set minimum requirements shall be as fol- forth the procedures for monitoring lows. and reporting on the recipient’s finan- (1) A bid guarantee from each bidder cial and program performance and the equivalent to five percent of the bid necessary standard reporting forms. price. The ‘‘bid guarantee’’ shall con- They also set forth record retention re- sist of a firm commitment such as a quirements. bid bond, certified check, or other negotiable instrument accompanying a § 2543.51 Monitoring and reporting program performance. bid as assurance that the bidder shall, upon acceptance of his bid, execute (a) Recipients are responsible for such contractual documents as may be managing and monitoring each project, required within the time specified. program, subaward, function or activ- (2) A performance bond on the part of ity supported by the award. Recipients the contractor for 100 percent of the shall monitor subawards to ensure subcontract price. A ‘‘performance bond’’ recipients have met the audit require- is one executed in connection with a ments as delineated in Section § 2543.26. contract to secure fulfillment of all the (b) The Federal awarding agency contractor’s obligations under such shall prescribe the frequency with contract. which the performance reports shall be submitted. Except as provided in para- (3) A payment bond on the part of the graph § 2543.51(f), performance reports contractor for 100 percent of the con- shall not be required more frequently tract price. A ‘‘payment bond’’ is one than quarterly or, less frequently than executed in connection with a contract annually. Annual reports shall be due to assure payment as required by stat- 90 calendar days after the grant year; ute of all persons supplying labor and quarterly or semi-annual reports shall material in the execution of the work be due 30 days after the reporting pe- provided for in the contract. riod. The Federal awarding agency may (4) Where bonds are required in the require annual reports before the anni- situations described herein, the bonds versary dates of multiple year awards shall be obtained from companies hold- in lieu of these requirements. The final ing certificates of authority as accept- performance reports are due 90 cal- able sureties pursuant to 31 CFR part endar days after the expiration or ter- 223, ‘‘Surety Companies Doing Business mination of the award. with the United States.’’ (c) If inappropriate, a final technical (d) All negotiated contracts (except or performance report shall not be re- those for less than the small purchase quired after completion of the project. threshold) awarded by recipients shall (d) When required, performance re- include a provision to the effect that ports shall generally contain, for each the recipient, the Federal awarding award, brief information on each of the agency, the Comptroller General of the following. United States, or any of their duly au- (1) A comparison of actual accom- thorized representatives, shall have ac- plishments with the goals and objec- cess to any books, documents, papers tives established for the period, the and records of the contractor which are findings of the investigator, or both. directly pertinent to a specific pro- Whenever appropriate and the output gram for the purpose of making audits, of programs or projects can be readily examinations, excerpts and tran- quantified, such quantitative data scriptions. should be related to cost data for com- (e) All contracts, including small putation of unit costs. purchases, awarded by recipients and (2) Reasons why established goals their contractors shall contain the pro- were not met, if appropriate. curement provisions of Appendix A to (3) Other pertinent information in- this Circular, as applicable. cluding, when appropriate, analysis

755

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00765 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.52 45 CFR Ch. XXV (10–1–11 Edition)

and explanation of cost overruns or (iii) The Federal awarding agency high unit costs. shall determine the frequency of the (e) Recipients shall not be required to Financial Status Report for each submit more than the original and two project or program, considering the copies of performance reports. size and complexity of the particular (f) Recipients shall immediately no- project or program. However, the re- tify the Federal awarding agency of de- port shall not be required more fre- velopments that have a significant im- quently than quarterly or less fre- pact on the award-supported activities. quently than annually. A final report Also, notification shall be given in the shall be required at the completion of case of problems, delays, or adverse the agreement. conditions which materially impair the (iv) The Federal awarding agency ability to meet the objectives of the shall require recipients to submit the award. This notification shall include a SF–269 or SF–269A (an original and no statement of the action taken or con- more than two copies) no later than 30 templated, and any assistance needed days after the end of each specified re- to resolve the situation. porting period for quarterly and semi- (g) Federal awarding agencies may annual reports, and 90 calendar days make site visits, as needed. for annual and final reports. Exten- (h) Federal awarding agencies shall sions of reporting due dates may be ap- comply with clearance requirements of proved by the Federal awarding agency 5 CFR part 1320 when requesting per- upon request of the recipient. formance data from recipients. (2) SF–272, Report of Federal Cash Transactions. § 2543.52 Financial reporting. (i) When funds are advanced to re- (a) The following forms or such other cipients the Federal awarding agency forms as may be approved by OMB are shall require each recipient to submit authorized for obtaining financial in- the SF–272 and, when necessary, its formation from recipients. continuation sheet, SF–272a. The Fed- (1) SF–269 or SF–269A, Financial Sta- eral awarding agency shall use this re- tus Report. port to monitor cash advanced to re- (i) Each Federal awarding agency cipients and to obtain disbursement in- shall require recipients to use the SF– formation for each agreement with the 269 or SF–269A to report the status of recipients. funds for all nonconstruction projects (ii) Federal awarding agencies may or programs. A Federal awarding agen- require forecasts of Federal cash re- cy may, however, have the option of quirements in the ‘‘Remarks’’ section not requiring the SF–269 or SF–269A of the report. when the SF–270, Request for Advance (iii) When practical and deemed nec- or Reimbursement, or SF–272, Report essary, Federal awarding agencies may of Federal Cash Transactions, is deter- require recipients to report in the mined to provide adequate information ‘‘Remarks’’ section the amount of cash to meet its needs, except that a final advances received in excess of three SF–269 or SF–269A shall be required at days. Recipients shall provide short the completion of the project when the narrative explanations of actions taken SF–270 is used only for advances. to reduce the excess balances. (ii) The Federal awarding agency (iv) Recipients shall be required to shall prescribe whether the report shall submit not more than the original and be on a cash or accrual basis. If the two copies of the SF–272 15 calendar Federal awarding agency requires ac- days following the end of each quarter. crual information and the recipient’s The Federal awarding agencies may re- accounting records are not normally quire a monthly report from those re- kept on the accrual basis, the recipient cipients receiving advances totaling $1 shall not be required to convert its ac- million or more per year. counting system, but shall develop (v) Federal awarding agencies may such accrual information through best waive the requirement for submission estimates based on an analysis of the of the SF–272 for any one of the fol- documentation on hand. lowing reasons:

756

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00766 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.53

(A) When monthly advances do not other records pertinent to an award exceed $25,000 per recipient, provided shall be retained for a period of three that such advances are monitored years from the date of submission of through other forms contained in this the final expenditure report or, for section; awards that are renewed quarterly or (B) If, in the Federal awarding agen- annually, from the date of the submis- cy’s opinion, the recipient’s accounting sion of the quarterly or annual finan- controls are adequate to minimize ex- cial report, as authorized by the Fed- cessive Federal advances; or, eral awarding agency. The only excep- (C) When the electronic payment tions are the following: mechanisms provide adequate data. (1) If any litigation, claim, or audit is (b) When the Federal awarding agen- started before the expiration of the 3- cy needs additional information or year period, the records shall be re- more frequent reports, the following tained until all litigation, claims or shall be observed. audit findings involving the records (1) When additional information is have been resolved and final action needed to comply with legislative re- taken. quirements, Federal awarding agencies (2) Records for real property and shall issue instructions to require re- equipment acquired with Federal funds cipients to submit such information shall be retained for 3 years after final under the ‘‘Remarks’’ section of the re- disposition. ports. (3) When records are transferred to or (2) When a Federal awarding agency maintained by the Federal awarding determines that a recipient’s account- agency, the 3-year retention require- ing system does not meet the standards ment is not applicable to the recipient. in Section § 2543.21, additional perti- (4) Indirect cost rate proposals, cost nent information to further monitor allocations plans, etc. as specified in awards may be obtained upon written paragraph (g) of this section. notice to the recipient until such time (c) Copies of original records may be as the system is brought up to stand- substituted for the original records if ard. The Federal awarding agency, in authorized by the Federal awarding obtaining this information, shall com- agency. ply with report clearance requirements (d) The Federal awarding agency of 5 CFR part 1320. shall request transfer of certain (3) Federal awarding agencies are en- records to its custody from recipients couraged to shade out any line item on when it determines that the records any report if not necessary. possess long term retention value. (4) Federal awarding agencies may However, in order to avoid duplicate accept the identical information from record keeping, a Federal awarding the recipients in machine readable for- agency may make arrangements for re- mat or computer printouts or elec- cipients to retain any records that are tronic outputs in lieu of prescribed for- continuously needed for joint use. mats. (e) The Federal awarding agency, the (5) Federal awarding agencies may Inspector General, Comptroller Gen- provide computer or electronic outputs eral of the United States, or any of to recipients when such expedites or their duly authorized representatives, contributes to the accuracy of report- have the right of timely and unre- ing. stricted access to any books, documents, papers, or other records of re- § 2543.53 Retention and access recipients that are pertinent to the quirements for records. awards, in order to make audits, ex- (a) This section sets forth require- aminations, excerpts, transcripts and ments for record retention and access copies of such documents. This right to records for awards to recipients. also includes timely and reasonable ac- Federal awarding agencies shall not cess to a recipient’s personnel for the impose any other record retention or purpose of interview and discussion re- access requirements upon recipients. lated to such documents. The rights of (b) Financial records, supporting doc- access in this paragraph are not lim- uments, statistical records, and all ited to the required retention period,

757

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00767 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.60 45 CFR Ch. XXV (10–1–11 Edition)

but shall last as long as records are re- § 2543.61 Termination. tained. (a) Awards may be terminated in (f) Unless required by statute, no whole or in part only if: Federal awarding agency shall place (1) By the Federal awarding agency, restrictions on recipients that limit if a recipient materially fails to com- public access to the records of recipi- ply with the terms and conditions of an ents that are pertinent to an award, ex- award, cept when the Federal awarding agency (2) By the Federal awarding agency can demonstrate that such records with the consent of the recipient, in shall be kept confidential and would which case the two parties shall agree have been exempted from disclosure upon the termination conditions, in- pursuant to the Freedom of Informa- cluding the effective date and, in the tion Act (5 U.S.C. 552) if the records case of partial termination, the portion had belonged to the Federal awarding to be terminated, or agency. (3) By the recipient upon sending to (g) Indirect cost rate proposals, cost the Federal awarding agency written allocations plans, etc. Paragraphs (g)(1) notification setting forth the reasons and (g)(2) apply to the following types for such termination, the effective of documents, and their supporting date, and, in the case of partial termi- records: indirect cost rate computa- nation, the portion to be terminated. tions or proposals, cost allocation However, if the Federal awarding agen- plans, and any similar accounting com- cy determines in the case of partial putations of the rate at which a par- termination that the reduced or modi- ticular group of costs is chargeable fied portion of the grant will not ac- (such as computer usage chargeback complish the purposes for which the rates or composite fringe benefit grant was made, it may terminate the rates). grant in its entirety under either para- (1) If submitted for negotiation. If graphs (a) (1) or (2) of this section. the recipient submits to the Federal (b) If costs are allowed under an award, the responsibilities of the re- awarding agency or the subrecipient cipient referred to in paragraph submits to the recipient the proposal, § 2543.71(a), including those for property plan, or other computation to form the management as applicable, shall be basis for negotiation of the rate, then considered in the termination of the the 3-year retention period for its sup- award, and provision shall be made for porting records starts on the date of continuing responsibilities of the re- such submission. cipient after termination, as appro- (2) If not submitted for negotiation. priate. If the recipient is not required to submit to the Federal awarding agency or § 2543.62 Enforcement. the subrecipient is not required to sub- (a) Remedies for noncompliance. If a mit to the recipient the proposal, plan, recipient materially fails to comply or other computation for negotiation with the terms and conditions of an purposes, then the 3-year retention pe- award, whether stated in a Federal riod for the proposal, plan, or other statute, regulation, assurance, applica- computation and its supporting records tion, or notice of award, the Federal starts at the end of the fiscal year (or awarding agency may, in addition to other accounting period) covered by imposing any of the special conditions the proposal, plan, or other computa- outlined in Section § 2543.14, take one tion. or more of the following actions, as appropriate in the circumstances. TERMINATION AND EVALUATION (1) Temporarily withhold cash payments pending correction of the defi- § 2543.60 Purpose of termination and ciency by the recipient or more severe enforcement. enforcement action by the Federal Sections § 2543.61 and § 2543.62 set awarding agency. forth uniform suspension, termination (2) Disallow (that is, deny both use of and enforcement procedures. funds and any applicable matching

758

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00768 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.72

credit for) all or part of the cost of the § 2543.71 Closeout procedures. activity or action not in compliance. (a) Recipients shall submit, within 90 (3) Wholly or partly suspend or ter- calendar days after the date of comple- minate the current award. tion of the award, all financial, per- (4) Withhold further awards for the formance, and other reports as required project or program. by the terms and conditions of the (5) Take other remedies that may be award. The Federal awarding agency legally available. may approve extensions when re- (b) Hearings and appeals. In taking quested by the recipient. an enforcement action, the awarding (b) Unless the Federal awarding agen- agency shall provide the recipient an cy authorizes an extension, a recipient opportunity for hearing, appeal, or shall liquidate all obligations incurred other administrative proceeding to under the award not later than 90 cal- which the recipient is entitled under endar days after the funding period or any statute or regulation applicable to the date of completion as specified in the action involved. the terms and conditions of the award (c) Effects of suspension and termi- or in agency implementing instructions. nation. Costs of a recipient resulting (c) The Federal awarding agency from obligations incurred by the re- shall make prompt payments to a recipient during a suspension or after cipient for allowable reimbursable termination of an award are not allow- costs under the award being closed out. able unless the awarding agency ex- (d) The recipient shall promptly re- pressly authorizes them in the notice fund any balances of unobligated cash of suspension or termination or subse- that the Federal awarding agency has quently. Other recipient costs during advanced or paid and that is not au- suspension or after termination which thorized to be retained by the recipient are necessary and not reasonably for use in other projects. OMB Circular avoidable are allowable if: A–129 governs unreturned amounts that (1) The costs result from obligations become delinquent debts. which were properly incurred by the re- (e) When authorized by the terms and cipient before the effective date of sus- conditions of the award, the Federal pension or termination, are not in an- awarding agency shall make a settle- ticipation of it, and in the case of a ter- ment for any upward or downward ad- mination, are noncancellable, and justments to the Federal share of costs (2) The costs would be allowable if after closeout reports are received. the award were not suspended or ex- (f) The recipient shall account for pired normally at the end of the fund- any real and personal property ac- ing period in which the termination quired with Federal funds or received takes effect. from the Federal Government in ac- (d) Relationship to debarment and cordance with Sections § 2543.31 suspension. The enforcement remedies through § 2543.37. identified in this section, including (g) In the event a final audit has not suspension and termination, do not been performed prior to the closeout of preclude a recipient from being subject an award, the Federal awarding agency to debarment and suspension under shall retain the right to recover an ap- E.O.s 12549 and 12689 and the Federal propriate amount after fully consid- awarding agency implementing regula- ering the recommendations on dis- tions (see Section § 2543.13). allowed costs resulting from the final audit.

Subpart D—After-the-Award § 2543.72 Subsequent adjustments and Requirements continuing responsibilities. (a) The closeout of an award does not § 2543.70 Purpose. affect any of the following: Sections § 2543.71 through § 2543.73 (1) The right of the Federal awarding contain closeout procedures and other agency to disallow costs and recover procedures for subsequent disallow- funds on the basis of a later audit or ances and adjustments. other review.

759

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00769 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2543.73 45 CFR Ch. XXV (10–1–11 Edition)

(2) The obligation of the recipient to § 2543.81 Equal employment oppor- return any funds due as a result of tunity. later refunds, corrections, or other All contracts shall contain a provi- transactions. sion requiring compliance with E.O. (3) Audit requirements in Section 11246, ‘‘Equal Employment Oppor- § 2543.26. tunity,’’ as amended by E.O. 11375, (4) Property management require- ‘‘Amending Executive Order 11246 Re- ments in Sections § 2543.31 through lating to Equal Employment Oppor- § 2543.37. tunity,’’ and as supplemented by regu- (5) Records retention as required in lations at 41 CFR part 60, ‘‘Office of Section § 2543.53. Federal Contract Compliance Pro- grams, Equal Employment Oppor- (b) After closeout of an award, a rela- tunity, Department of Labor.’’ tionship created under an award may be modified or ended in whole or in § 2543.82 Copeland ‘‘Anti-Kickback’’ part with the consent of the Federal Act. awarding agency and the recipient, All contracts and subgrants in excess provided the responsibilities of the re- of $2000 for construction or repair cipient referred to in paragraph awarded by recipients and subrecipi- § 2543.73(a), including those for property ents shall include a provision for com- management as applicable, are consid- pliance with the Copeland ‘‘Anti-Kick- ered and provisions made for con- back’’ Act (18 U.S.C. 874), as supple- tinuing responsibilities of the recipi- mented by Department of Labor regu- ent, as appropriate. lations (29 CFR part 3, ‘‘Contractors and Subcontractors on Public Building § 2543.73 Collection of amounts due. or Public Work Financed in Whole or (a) Any funds paid to a recipient in in Part by Loans or Grants from the United States’’). The Act provides that excess of the amount to which the re- each contractor or subrecipient shall cipient is finally determined to be enti- be prohibited from inducing, by any tled under the terms and conditions of means, any person employed in the the award constitute a debt to the Fed- construction, completion, or repair of eral Government. If not paid within a public work, to give up any part of the reasonable period after the demand for compensation to which he is otherwise payment, the Federal awarding agency entitled. The recipient shall report all may reduce the debt by: suspected or reported violations to the (1) Making an administrative offset Federal awarding agency. against other requests for reimbursements, § 2543.83 Davis-Bacon Act. (2) Withholding advance payments When required by Federal program otherwise due to the recipient, legislation, all construction contracts (3) Taking other action permitted by awarded by the recipients and sub- statute, or recipients of more than $2000 shall in- (b) Except as otherwise provided by clude a provision for compliance with law, the Federal awarding agency shall the Davis-Bacon Act (40 U.S.C. 276a to charge interest on an overdue debt in a–7) and as supplemented by Depart- ment of Labor regulations (29 CFR part accordance with 4 CFR Chapter II, 5, ‘‘Labor Standards Provisions Appli- ‘‘Federal Claims Collection Stand- cable to Contracts Governing Federally ards.’’ Financed and Assisted Construction’’). Under this Act, contractors shall be re- Subpart E—Statutory Compliance quired to pay wages to laborers and mechanics at a rate not less than the § 2543.80 Contract provisions. minimum wages specified in a wage de- All contracts, awarded by a recipient termination made by the Secretary of including small purchases, shall con- Labor. In addition, contractors shall be tain the following provisions as appli- required to pay wages not less than cable: once a week. The recipient shall place a copy of the current prevailing wage

760

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00770 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2543.88

determination issued by the Depart- § 2543.86 Clean Air Act and the Fed- ment of Labor in each solicitation and eral Water Pollution Control Act. the award of a contract shall be condi- Contracts and subgrants of amounts tioned upon the acceptance of the wage in excess of $100,000 shall contain a pro- determination. The recipient shall revision that requires the recipient to port all suspected or reported viola- agree to comply with all applicable tions to the Federal awarding agency. standards, orders or regulations issued § 2543.84 Contract Work Hours and pursuant to the Clean Air Act (42 Safety Standards Act. U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amend- Where applicable, all contracts ed (33 U.S.C. 1251 et seq.). Violations awarded by recipients in excess of $2000 shall be reported to the Federal award- for construction contracts and in ex- ing agency and the Regional Office of cess of $2500 for other contracts that involve the employment of mechanics the Environmental Protection Agency or laborers shall include a provision for (EPA). compliance with Sections 102 and 107 of § 2543.87 Byrd anti-lobbying amend- the Contract Work Hours and Safety ment. Standards Act (40 U.S.C. 327–333), as supplemented by Department of Labor Contractors who apply or bid for an regulations (29 CFR part 5). Under Sec- award of $100,000 or more shall file the tion 102 of the Act, each contractor required certification. Each tier cer- shall be required to compute the wages tifies to the tier above that it will not of every mechanic and laborer on the and has not used Federal appropriated basis of a standard work week of 40 funds to pay any person or organiza- hours. Work in excess of the standard tion for influencing or attempting to work week is permissible provided that influence an officer or employee of any the worker is compensated at a rate of agency, a member of Congress, officer not less than 11⁄2 times the basic rate of or employee of Congress, or an em- pay for all hours worked in excess of 40 ployee of a member of Congress in con- hours in the work week. Section 107 of nection with obtaining any Federal the Act is applicable to construction contract, grant or any other award work and provides that no laborer or covered by 31 U.S.C. 1352. Each tier mechanic shall be required to work in shall also disclose any lobbying with surroundings or under working condi- non-Federal funds that takes place in tions which are unsanitary, hazardous connection with obtaining any Federal or dangerous. These requirements do award. Such disclosures are forwarded not apply to the purchases of supplies from tier to tier up to the recipient. or materials or articles ordinarily available on the open market, or con- § 2543.88 Debarment and suspension. tracts for transportation or trans- mission of intelligence. No contract shall be made to parties listed on the General Services Admin- § 2543.85 Rights to inventions made istration’s List of Parties Excluded under a contract or agreement. from Federal Procurement or Non- Contracts or agreements for the per- procurement Programs in accordance formance of experimental, develop- with E.O.s 12549 and 12689, ‘‘Debarment mental, or research work shall provide and Suspension.’’ This list contains the for the rights of the Federal Govern- names of parties debarred, suspended, ment and the recipient in any resulting or otherwise excluded by agencies, and invention in accordance with 37 CFR contractors declared ineligible under part 401, ‘‘Rights to Inventions Made statutory or regulatory authority by Nonprofit Organizations and Small other than E.O. 12549. Contractors with Business Firms Under Government awards that exceed the small purchase Grants, Contracts and Cooperative threshold shall provide the required Agreements,’’ and any implementing certification regarding its exclusion regulations issued by the awarding status and that of its principal employ- agency. ees.

761

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00771 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2544 45 CFR Ch. XXV (10–1–11 Edition)

PART 2544—SOLICITATION AND (c) Volunteer means an individual who ACCEPTANCE OF DONATIONS donates his/her personal service to the Corporation to assist the Corporation Sec. in carrying out its duties under the na- 2544.100 What is the purpose of this part? tional service laws, but who is not a 2544.105 What is the legal authority for so- participant in a program funded or liciting and accepting donations to the sponsored by the Corporation under the Corporation? National and Community Service Act 2544.110 What definitions apply to terms used in this part? of 1990, as amended. Such individual is 2544.115 Who may offer a donation? not subject to provisions of law related 2544.120 What personal services from a vol- to Federal employment, including unteer may be solicited and accepted? those relating to hours of work, rates 2544.125 Who has the authority to solicit of compensation, leave, unemployment and accept or reject a donation? 2544.130 How will the Corporation determine compensation and Federal employee whether to solicit or accept a donation? benefits, except that— 2544.135 How should an offer of a donation (1) Volunteers will be considered Fed- be made? eral employees for the purpose of the 2544.140 How will the Corporation accept or tort claims provisions of 28 U.S.C. reject an offer? chapter 171; 2544.145 What will be done with property that is not accepted? (2) Volunteers will be considered Fed- 2544.150 How will accepted donations be re- eral employees for the purposes of 5 corded and used? U.S.C. chapter 81, subchapter I, relat- AUTHORITY: 42 U.S.C. 12501 et seq. ing to compensation to Federal employees for work injuries; and SOURCE: 60 FR 28355, May 31, 1995, unless otherwise noted. (3) Volunteers will be considered special Government employees for the § 2544.100 What is the purpose of this purpose of ethics and public integrity part? under the provisions of 18 U.S.C. chap- This part establishes rules to ensure ter 11, part I, and 5 CFR chapter XVI, that the solicitation, acceptance, hold- subchapter B. ing, administration, and use of prop- (d) Inherently governmental function erty and services donated to the Cor- means any activity that is so inti- poration: mately related to the public interest as (a) Will not reflect unfavorably upon to mandate performance by an officer the ability of the Corporation or its of- or employee of the Federal Govern- ficers and employees, to carry out their ment, including an activity that re- official duties and responsibilities in a quires either the exercise of discretion fair and objective manner; and in applying the authority of the Gov- (b) Will not compromise the integrity ernment or the use of value judgment of the Corporation’s programs or its of- in making a decision for the Govern- ficers and employees involved in such ment. programs. § 2544.115 Who may offer a donation? § 2544.105 What is the legal authority for soliciting and accepting dona- Anyone, including an individual, tions to the Corporation? group of individuals, organization, cor- Section 196(a) of the National and poration, or association may offer a do- Community Service Act of 1990, as nation to the Corporation. amended (42 U.S.C. 12651g(a)). § 2544.120 What personal services from § 2544.110 What definitions apply to a volunteer may be solicited and ac- terms used in this part? cepted? (a) Donation means a transfer of A donation in the form of personal money, property, or services to or for services from a volunteer may be solic- the use of the Corporation by gift, de- ited and accepted to assist the Corpora- vise, bequest, or other means. tion in carrying out its duties. How- (b) Solicitation means a request for a ever, volunteers may not perform an donation. inherently governmental function.

762

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00772 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2544.140

§ 2544.125 Who has the authority to so- the Corporation’s Designated Ethics licit and accept or reject a dona- Official for an opinion. tion? The Chief Executive Officer (CEO) of § 2544.135 How should an offer of a do- the Corporation has the authority to nation be made? solicit, accept, or reject a donation of- (a) In general, an offer of donation fered to the Corporation and to make should be made by providing a letter of the determinations described in tender that offers a donation. The let- § 2544.130 (c) and (d). The CEO may dele- ter should be directed to an official au- gate this authority in writing to other thorized to accept donations, describe officials of the Corporation. the property or service offered, and specify any purpose for, or condition § 2544.130 How will the Corporation on, the use of the donation. determine whether to solicit or accept a donation? (b) If an offer is made orally, the Cor- poration will send a letter of acknowl- (a) The Corporation will solicit and edgment to the offeror. If the donor is accept a donation only for the purpose anonymous, the Corporation will pre- of furthering the mission and goals of pare a memorandum to the file ac- the Corporation. knowledging receipt of a tendered do- (b) In order to be accepted, the dona- nation and describing the donation in- tion must be economically advan- cluding any special terms or condi- tageous to the Corporation, consid- tions. ering foreseeable expenditures for matters such as storage, transportation, (c) Only those employees or officials maintenance, and distribution. with expressed notice of authority may (c) An official or employee of the accept donations on behalf of the Cor- Corporation will not solicit or accept a poration. If an offer is directed to an donation if the solicitation or accept- unauthorized employee or official of ance would present a real or apparent the Corporation, that person must im- conflict of interest. An apparent con- mediately forward the offer to an ap- flict of interest is presented if the so- propriate official for disposition. licitation or acceptance would raise a question in the mind of a reasonable § 2544.140 How will the Corporation person, with knowledge of the relevant accept or reject an offer? facts, about the integrity of the Cor- (a) In general, the Corporation will poration’s programs or operations. respond to an offer of a donation in (d) The Corporation will determine writing and include in the response: whether a conflict of interest exists by (1) An acknowledgment of receipt of considering any business relationship, the offer; financial interest, litigation, or other (2) A brief description of the offer and factors that may indicate such a con- any purpose or condition that the of- flict. Donations of property or vol- feror specified for the use of the dona- untary services may not be solicited or tion; accepted from a source which: (3) A statement either accepting or (1) Is a party to a grant or contract rejecting the donation; and with the Corporation or is seeking to do business with the Corporation; (4) A statement informing the donor that any acceptance of services or (2) Has pecuniary interests that may be substantially affected by perform- property can not be used in any man- ance or nonperformance of the Cor- ner, directly or indirectly, that en- poration; or dorses the donor’s products or services (3) Is an organization a majority of or appears to benefit the financial in- whose members are described in para- terests or business goals of the donor. graphs (d)(1) and (2) of this section. (b) If a purpose or condition for the (e) Any solicitation or offer of a do- use of the donation specified by the of- nation that raises a question or con- feror can not be accommodated, the cern of a potential, real, or apparent Corporation may request the offeror to conflict of interest will be forwarded to modify the terms of the donation.

763

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00773 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2544.145 45 CFR Ch. XXV (10–1–11 Edition)

§ 2544.145 What will be done with 2550.60 From which of the State Commis- property that is not accepted? sion requirements is an Alternative Ad- ministrative Entity exempt? In general, property offered to the 2550.70 [Reserved] Corporation but not accepted will be 2550.80 What are the duties of the State en- returned to the offeror. If the offeror is tities? unknown or the donation would spoil if 2550.85 How will the State Plan be assessed? 2550.90 Are there any restrictions on the ac- returned, the property will either be tivities of the members of State Commis- disposed of in accordance with Federal sions or Alternative Administrative En- Property Management regulations (41 tities? CFR chapter 101) or given to local char- 2550.100 Do State entities or their members ities determined by the Corporation. incur any risk of liability? 2550.110 What grants will be available from § 2544.150 How will accepted dona- the Corporation to assist in establishing tions be recorded and used? and operating a State Commission, Al- ternative Administrative Entity, or (a) All accepted donations of money Transitional Entity? and other property will be reported to AUTHORITY: 42 U.S.C. 12638. the Chief Financial Officer (CFO) of the Corporation for recording and appro- SOURCE: 58 FR 60981, Nov. 18, 1993, unless otherwise noted. priate disposition. (b) All donations of personal services § 2550.10 What is the purpose of this of a volunteer will be reported to the part? CFO and to the Personnel Division of (a) The Corporation for National and the Corporation for processing and doc- Community Service (the Corporation) umentation. seeks to meet the Nation’s pressing (c) Donations not designated for a human, educational, environmental particular purpose will be used for an and public safety needs through service authorized purpose described in and to reinvigorate the ethic of civic § 2544.125. responsibility across the Nation. If the (d) Property will be used as nearly as Corporation is to meet these goals, it is possible in accordance with the terms critical for each of the States to be ac- of the donation. If no terms are speci- tively involved. fied, or the property can no longer be (b) To be eligible to apply for pro- used for its original purpose, the prop- gram funding, or approved national erty will be converted to another au- service positions, each State must es- thorized use or sold in accordance with tablish a State commission on national Federal regulations. The proceeds of and community service to administer the sale will be used for an authorized the State program grant making proc- purpose described in § 2544.125. ess and to develop a State plan. The Corporation may, in some instances, PART 2550—REQUIREMENTS AND approve an alternative administrative GENERAL PROVISIONS FOR STATE entity (AAE). (c) The Corporation will distribute COMMISSIONS AND ALTER- grants of between $125,000 and $750,000 NATIVE ADMINISTRATIVE ENTI- to States to cover the Federal share of TIES operating the State commissions or AAEs. Sec. (d) The purpose of this part is to pro- 2550.10 What is the purpose of this part? vide States with the basic information 2550.20 Definitions. essential to participate in the subtitle 2550.30 How does a State decide whether to C programs. Of equal importance, this establish a State commission or an alter- part gives an explanation of the pre- native administrative entity? liminary steps States must take in 2550.40 How does a State get Corporation order to receive money from the Cor- authorization and approval for the entity it has chosen? poration. This part also offers guidance 2550.50 What are the composition require- on which of the two State entities ments and other requirements, restric- States should seek to establish, and it tions or guidelines for State Commis- explains the composition requirements, sions? duties, responsibilities, restrictions,

764

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00774 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2550.20

and other relevant information for tive must be included as a member of State commissions and AAEs. the State Commission or AAE. (g) Indian tribe. (1) An Indian tribe, [58 FR 60981, Nov. 18, 1993, as amended at 67 FR 45362, July 9, 2002; 70 FR 39607, July 8, band, nation, or other organized group 2005] or community, including— (i) Any Native village, as defined in § 2550.20 Definitions. section 3(c) of the Alaska Native (a) AAE. Alternative Administrative Claims Settlement Act (43 U.S.C. Entity. 1602(c)), whether organized tradition- (b) Administrative costs. As used in ally or pursuant to the Act of June 18, this part, those costs incurred by a 1934 (commonly known as the ‘‘Indian State in the establishing and operating Reorganization Act’’; 48 Stat. 984, a State entity; the specific administra- chapter 576; 25 U.S.C. 461 et seq.); and tive costs for which a Corporation ad- (ii) Any Regional Corporation or Vil- ministrative grant may be used as de- lage Corporation as defined in the Alas- fined in the Uniform Administrative ka Native Claims Settlement Act (43 Requirements for Grants and Agree- U.S.C. 1602 (g) or (j)), that is recognized ments to State and Local Govern- as eligible for the special programs and ments. services provided by the United States (c) Alternative Administrative Entity under Federal law to Indians because of (AAE). A State entity approved by the their status as Indians; and Corporation to perform the duties of a (2) Any tribal organization con- State Commission, including devel- trolled, sanctioned, or chartered by an oping a three-year comprehensive na- entity described in paragraph (g)(1) of tional service plan, preparing applica- this section. tions to the Corporation for funding (h) Older adult. An individual 55 years and approved national service posi- of age or older. tions, and administering service pro- (i) Service-learning. A method under gram grants; in general, an AAE must which students or participants learn meet the same composition and other and develop through active participa- requirements as a State Commission, tion in thoughtfully organized service but may receive waivers from the Cor- that is conducted in and meets the poration to accommodate State laws needs of a community and that is co- that prohibit inquiring as to the polit- ordinated with an elementary school, ical affiliation of members, to have secondary school, institution of higher more than 25 voting members (the education, or community service pro- maximum for a State Commission), gram, and with the community; serv- and/or to select members in a manner ice-learning is integrated into and en- other than selection by the chief execu- hances the academic curriculum of the tive officer of the State. students, or the educational compo- (d) Approved National Service Position. nents of the community service pro- A national service program position for gram in which the participants are en- which the Corporation has approved rolled, and it provides time for the stu- the provision of a national service edu- dents or participants to reflect on the cational award as one of the benefits to service experience. be provided for successful completion (j) Service learning programs. The to- of a term of service. tality of the service learning programs (e) Corporation. As used in this part, receiving assistance from the Corpora- the Corporation for National and Com- tion under subtitle B of the Act, either munity Service established pursuant to directly or through a grant-making en- the National and Community Service tity; this includes school-based, com- Trust Act of 1993 (42 U.S.C. 12651). munity-based, and higher education- (f) Corporation representative. Each of based service-learning programs. the individuals employed by the Cor- (k) State. As used in this part, the poration for National and Community term State refers to each of the 50 Service to assist the States in carrying States, the District of Columbia, the out national and community service Commonwealth of Puerto Rico, the activities; the Corporation representa- United States Virgin Islands, Guam,

765

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00775 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2550.30 45 CFR Ch. XXV (10–1–11 Edition)

American Samoa, and the Common- open, inclusive, non-political planning wealth of the Northern Mariana Is- process. lands. (l) State Commission. A bipartisan or [58 FR 60981, Nov. 18, 1993, as amended at 70 FR 39607, July 8, 2005] nonpartisan State entity, approved by the Corporation, consisting of 15–25 § 2550.40 How does a State obtain Cor- members (appointed by the chief execu- poration authorization and ap- tive officer of the State), that is re- proval for the entity it has chosen? sponsible for developing a comprehensive national service plan, assembling (a) To receive approval of a State applications for funding and approved Commission or AAE, a State must for- national service positions, and admin- mally establish an entity that meets istering national and community serv- the corresponding composition, mem- ice programs in the State. bership, authority, and duty require- (m) State Educational Agency. The ments of this part. (For the AAE, a same meaning given to such term in State must demonstrate why it is im- section 1471(23) of the Elementary and possible or unreasonable to estalbish a Secondary Education Act of 1965 (20 State Commission; an approved AAE, U.S.C. 2891(23)). however, has the same rights and re- (n) State entity. A State Commission, sponsibilities as a State Commission.) AAE, or Transitional Entity that has Once the entity is established, the been authorized by the Corporation to State must provide written notice—in perform the duties of a State Commis- a format to be prescribed by the Cor- sion. poration—to the chief executive officer [58 FR 60981, Nov. 18, 1993, as amended at 67 of the Corporation of the composition, FR 45362, July 9, 2002; 70 FR 39607, July 8, membership, and authorities of the 2005] State Commission or AAE and explain how the entity will perform its duties § 2550.30 How does a State decide whether to establish a State com- and functions. Further, the State must mission or an alternative adminis- agree to, first, request approval from trative entity? the Corporation for any subsequent (a) Although each State’s chief exec- changes in the composition or duties of utive officer has the authority to select a State Commission or AAE the State an administrative option, the Corpora- may wish to make, and, second, to tion strongly encourages States to es- comply with any future changes in Cor- tablish State Commissions which meet poration requirements with regard to the requirements in this part as quick- the composition or duties of a State ly as possible. The requirements for Commission or AAE. If a State meets State Commissions were established to the applicable requirements, the Cor- try to create informed and effective en- poration will approve the State Com- tities. mission or AAE. (b) The Corporation recognizes that (b) If the Corporation rejects a State some States, for legal or other legiti- application for approval of a State mate reasons, may not be able to meet Commission or AAE because that ap- all of the requirements of the State plication does not meet one or more of Commissions. The AAE is essentially the requirements of §§ 2250.50 or 2550.60, the same as a State Commission; how- it will notify the State of the reasons ever, it may be exempt from some of for rejection and offer assistance to the State Commission requirements. A make any necessary changes. The Cor- State that cannot meet one of the poration will reconsider revised appli- waivable requirements of the State cations within 14 working days of re- Commission (as explained in § 2550.60), and which can demonstrate this to the submission. Corporation, should seek to establish [58 FR 60981, Nov. 18, 1993, as amended at 70 an AAE. FR 39607, July 8, 2005] (c) Regardless of which entity a State employs, each State is required to solicit broad-based, local input in an

766

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00776 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2550.50

§ 2550.50 What are the composition re- State; however, although this list quirements and other require- should not be construed as exhaustive, ments, restrictions or guidelines for the Corporation suggests the following State Commissions? types of individuals: The following provisions apply to (1) Educators, including representa- both State Commissions and AAEs, ex- tives from institutions of higher edu- cept that AAEs may obtain waivers cation and local education agencies; from certain provisions as explained in (2) Experts in the delivery of human, § 2550.60. educational, environmental, or public (a) Size of the State Commission and safety services to communities and terms of State Commission members. The persons; chief executive officer of a State must (3) Representatives of Indian tribes; appoint 15–25 voting members to the (4) Out-of-school or at-risk youth; State Commission (in addition to any and non-voting members he or she may ap- (5) Representatives of programs that point). Voting members of a State are administered or receive assistance Commission must be appointed to re- under the Domestic Volunteer Service newable three-year terms, except that Act of 1973, as amended (DVSA) (42 initially a chief executive officer must U.S.C. 4950 et seq.). appoint a third of the members to one- year terms and another third of the (d) Appointment of ex officio, non-vot- members to two-year terms. ing members of a State Commission. The (b) Required voting members on a State chief executive officer of a State may Commission. A member may represent appoint as ex officio, non-voting mem- none, one, or more than one category, bers of the State Commission officers but each of the following categories or employees of State agencies oper- must be represented: ating community service, youth serv- (1) A representative of a community- ice, education, social service, senior based agency or organization in the service, or job training programs. State; (e) Other composition requirements. To (2) The head of the State education the extent practicable, the chief execu- agency or his or her designee; tive officer of a State shall ensure that (3) A representative of local govern- the membership for the State commis- ment in the State; sion is diverse with respect to race, (4) A representative of local labor or- ethnicity, age, gender, and disability ganizations in the State; characteristics. Not more than 50 per- (5) A representative of business; cent plus one of the voting members of (6) An individual between the ages of a State commission may be from the 16 and 25, inclusive, who is a partici- same political party. In addition, the pant or supervisor of a service program number of voting members of a State for school-age youth, or of a campus- commission who are officers or em- based or national service program; ployees of the State may not exceed (7) A representative of a national 25% of the total membership of that service program; State commission. (8) An individual with expertise in (f) Selection of Chairperson. The chair- the educational, training, and develop- person is elected by the voting mem- ment needs of youth, particularly dis- bers of a State Commission. To be eli- advantaged youth; gible to serve as chairperson, an indi- (9) An individual with experience in vidual must be an appointed, voting promoting the involvement of older member of a State Commission. adults (age 55 and older) in service and (g) Vacancies. If a vacancy occurs on volunteerism; and a State Commission, a new member (10) A representative of the volunteer must be appointed by the chief execu- sector. tive officer of the State to serve for the (c) Appointment of other voting mem- remainder of the term for which the bers of a State Commission. Any remain- predecessor of such member was ap- ing voting members of a State Com- pointed. The vacancy will not affect mission are appointed at the discretion the power of the remaining members to of the chief executive officer of the execute the duties of the Commission.

767

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00777 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2550.60 45 CFR Ch. XXV (10–1–11 Edition)

(h) Compensation of State Commission from being politically motivated or members. A member of a State Commis- controlled; however, in some States it sion may not receive compensation for is illegal to require prospective mem- his or her services, but may be reim- bers to provide information about po- bursed (at the discretion of the State) litical party affiliation. For this or an- for travel and daily expenses in the other compelling reason, the Corpora- same manner as employees intermit- tion may grant a waiver. tently serving the State. (b) Again, any time the Corporation (i) The role of the Corporation rep- grants one or more of these waivers for resentative. The Corporation will des- a State entity, that entity becomes an ignate one of its employees to serve as AAE; in all other respects an AAE is a representative to each State or group the same as a State Commission, hav- of States. This individual must be in- ing the same requirements, rights, du- cluded as an ex officio non-voting ties and responsibilities. member on the State Commission. In general, the Corporation representative § 2550.70 [Reserved] will be responsible for assisting States in carrying out national service activi- § 2550.80 What are the duties of the ties. State entities? Both State commissions and AAEs [58 FR 60981, Nov. 18, 1993, as amended at 73 FR 53762, Sept. 17, 2008; 74 FR 46507, Sept. 10, have the same duties. This section lists 2009; 74 FR 48866, Sept. 25, 2009] the duties that apply to both State commissions and AAEs—collectively § 2550.60 From which of the State referred to as State entities. Functions Commission requirements is an Al- described in paragraphs (e) through (j) ternative Administrative Entity ex- of this section are non-policymaking empt? and may be delegated to another State (a) An AAE is not automatically ex- agency or nonprofit organization. The empt from any of the requirements duties are as follows: that govern State Commissions. How- (a) Development of a three-year, com- ever, there are three specific State prehensive national and community serv- Commission requirements which the ice plan and establishment of State prior- Corporation may waive if a State can ities. The State entity must develop demonstrate that one or more of them and annually update a Statewide plan is impossible or unreasonable to meet. for national service covering a three- If the Corporation waives a State Com- year period, the beginning of which mission requirement for a State entity, may be set by the State, that is con- that State entity is, de facto, an AAE. sistent with the Corporation’s broad The three criteria which may be goals of meeting human, educational, waived for an AAE are as follows: environmental, and public safety needs (1) The requirement that a State’s chief and meets the following minimum re- executive officer appoint the members of a quirements: State Commission. If a State can offer a (1) The plan must be developed compelling reason why some or all of through an open and public process the State Commission members should (such as through regional forums or be appointed by the State legislature hearings) that provides for the max- or by some other appropriate means, imum participation and input from a the Corporation may grant a waiver. broad cross-section of individuals and (2) The requirement that a State Com- organizations, including national serv- mission have 15–25 members. If a State ice programs within the State, commu- compellingly demonstrates why its nity-based agencies, organizations with commission should have a larger num- a demonstrated record of providing ber of members, the Corporation may educational, public safety, human, or grant a waiver. environmental services, residents of (3) The requirement that not more than the State, including youth and other 50% plus one of the State Commission’s prospective participants, State Edu- voting members be from the same political cational Agencies, traditional service party. This requirement was estab- organizations, labor unions, and other lished to prevent State Commissions interested members of the public.

768

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00778 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2550.80

(2) The plan must ensure outreach to after coordination with the State Edu- diverse, broad-based community orga- cational Agency. nizations that serve underrepresented (d) Administration of the grants pro- populations by creating State net- gram. After subtitle C and community- works and registries or by utilizing ex- based subtitle B funds are awarded, isting ones. States entities will be responsible for (3) The plan must set forth the administering the grants and over- State’s goals, priorities, and strategies seeing and monitoring the performance for promoting national and community and progress of funded programs. service and strengthening its service (e) Evaluation and monitoring. State infrastructure, including how Corpora- entities, in concert with the Corpora- tion-funded programs fit into the plan. tion, shall be responsible for imple- (4) The plan may contain such other menting comprehensive, non-duplica- information as the State commission tive evaluation and monitoring sys- considers appropriate and must contain tems. such other information as the Corpora- (f) Technical assistance. The State en- tion may require. tity will be responsible for providing (5) The plan must ensure outreach to, technical assistance to local nonprofit and coordination with, municipalities organizations and other entities in and county governments regarding the planning programs, applying for funds, national service laws. and in implementing and operating (6) The plan must provide for effec- high quality programs. States should tive coordination of funding applica- encourage proposals from underserved tions submitted by the State and other communities. organizations within the State under (g) Program development assistance and the national service laws. training. The State entity must assist (7) The plan must include measurable in the development of subtitle C pro- goals and outcomes for national service grams; such development might in- programs funded through the State clude staff training, curriculum mate- consistent with the performance levels rials, and other relevant materials and for national service programs. activities. A description of such pro- (8) The plan is subject to approval by posed assistance must be included in the chief executive officer of the State. the State comprehensive plan referred (9) The plan must be submitted, in its to in paragraph (a) of this section. A entirety, in summary, or in part, to the State may apply for additional subtitle Corporation upon request. C programs training and technical as- (b) Selection of subtitle C programs and sistance funds to perform these func- preparation of application to the Corpora- tions. The Corporation will issue no- tion. Each State must: tices of availability of funds with re- (1) Prepare an application to the Cor- spect to training and technical assist- poration to receive funding or edu- ance. cation awards for national service pro- (h) Recruitment and placement. The grams operating in and selected by the State entity, as well as the Corpora- State. tion, will develop mechanisms for re- (2) Administer a competitive process cruitment and placement of people in- to select national service programs for terested in participating in national funding. The State is not required to service programs. select programs for funding prior to (i) Benefits. The State entity shall as- submission of the application described sist in the provision of health and child in paragraph (b)(1) of this section. care benefits to subtitle C program par- (c) Preparation of Service Learning ap- ticipants, as will be specified in the plications. (1) The State entity is re- regulations implementing the subtitle quired to assist the State education C programs. agency in preparing the application for (j) Activity ineligible for assistance. A subtitle B school-based service learn- State commission or AAE may not di- ing programs. rectly carry out any national service (2) The State entity may apply to the program that receives financial assist- Corporation to receive funding for ance under section 121 of the NCSA or community-based subtitle programs title II of the DVSA.

769

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00779 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2550.85 45 CFR Ch. XXV (10–1–11 Edition)

(k) Make recommendations to the Cor- 102 of the Older Americans Act of 1965, poration with respect to priorities with- 42 U.S.C. 3002) on a marketing outreach in the State for programs receiving as- plan to businesses and outreach to non- sistance under DVSA. profit organizations, the State edu- (l) Coordination—(1) Coordination with cational agency, institutions of higher other State agencies. A State entity education, and other State agencies; must coordinate its activities with the (iii) Recommendations for civic en- activities of other State agencies that gagement and multigenerational ac- administer Federal financial assistance tivities, including early childhood edu- programs under the Community Serv- cation and care, family literacy, and ices Block Grant Act (42 U.S.C. 9901 et other after school programs, respite seq.) or other appropriate Federal fi- services for adults age 55 or older and nancial assistance programs. caregivers, and transitions for older (2) Coordination with volunteer service adults age 55 or older to purposeful programs. In general, the State entity work in their post-career lives; shall coordinate its functions (includ- (2) Incorporate the current knowl- ing recruitment, public awareness, and edge base regarding— training activities) with such functions (i) The economic impact of the roles of any division of ACTION, or the Cor- of workers age 55 or older in the econ- poration, that carries out volunteer omy; service programs in the State. Specifi- (ii) The social impact of the roles of cally, the State entity may enter into such workers in the community; an agreement with a division of AC- (iii) The health and social benefits of TION or the Corporation to carry out active engagement for adults age 55 or its functions jointly, to perform its older; and functions itself, or to assign responsi- (3) Be made available to the public bility for its functions to ACTION or and transmitted to the Corporation. the Corporation. [58 FR 60981, Nov. 18, 1993, as amended at 70 (3) In carrying out the activities FR 39607, July 8, 2005; 73 FR 53762, Sept. 17, under paragraphs (l) (1) and (2) of this 2008; 74 FR 46507, Sept. 10, 2009; 74 FR 48866, section, the parties involved must ex- Sept. 25, 2009; 75 FR 51415, Aug. 20, 2010] change information about the programs carried out in the State by the § 2550.85 How will the State Plan be State entity, a division of ACTION or assessed? the Corporation, as well as information The Corporation will assess the qual- about opportunities to coordinate ac- ity of your State Plan as evidenced by: tivities. (a) The development and quality of (m) Supplemental State Service Plan for realistic goals and objectives for mov- Adults Age 55 or Older. To be eligible to ing service ahead in the State; receive a grant or allotment under sub- (b) The extent to which proposed titles B or C of title I of the National strategies can reasonably be expected and Community Service Act (42 U.S.C. to accomplish stated goals; and 12501 et seq.), or to receive a distribu- (c) The extent of input in the devel- tion of approved national service posi- opment of the State plan from a broad tions under subtitle C of title I of that cross-section of individuals and organi- Act, a State must work with appro- zations as required by § 2550.80(a)(1). priate State agencies and private enti- [73 FR 53762, Sept. 17, 2008] ties to develop a comprehensive State service plan for service by adults age 55 § 2550.90 Are there any restrictions on or older. This plan must: the activities of the members of (1) Include the following elements: State Commissions or Alternative (i) Recommendations for policies to Administrative Entities? increase service for adults age 55 or To avoid a conflict of interest (or the older, including how to best use such appearance of a conflict of interest) re- adults as sources of social capital, and garding the provision of assistance or how to utilize their skills and experi- approved national service positions, ence to address community needs; members of a State Commission or (ii) Recommendations to the State AAE must adhere to the following pro- agency on aging (as defined in section visions:

770

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00780 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2550.110

(a) General restriction. Members of AAE, or general program administra- State Commissions and AAEs are re- tion; or stricted in several ways from the grant (2) Similar general matters relating approval and administration process to the Commission or AAE. for any grant application submitted by an organization for which they are cur- § 2550.100 Do State entities or their rently, or were within one year of the members incur any risk of liability? submission of the application, officers, (a) State liability. Except as provided directors, trustees, full-time volun- in paragraph (b) of this section, a State teers or employees. The restrictions for must agree to assume liability with re- such individuals are as follows: spect to any claim arising out of or re- (1) They cannot assist the applying sulting from any act or omission by a organization in preparing the grant ap- member of the State Commission or plication; AAE, within the scope of the service of (2) They must recuse themselves that member. from the discussions or decisions re- (b) Individual liability. A member of garding the grant application and any the State Commission or AAE shall other grant applications submitted to have no personal liability with respect the Commission or AAE under the to any claim arising out of or resulting same program (e.g., subtitle B pro- from any act or omission by that mem- grams or subtitle C programs); and ber, within the scope of the service of (3) They cannot participate in the that member. This does not, however, oversight, evaluation, continuation, limit personal liability for criminal suspension or termination of the grant acts or omissions, willful or malicious award. misconduct, acts or omissions for pri- (b) Exception to achieve a quorum. If vate gain, or any other act or omission this general restriction creates a situa- outside the scope of the service of that tion in which a Commission or AAE member. Similarly, this part does not does not have enough eligible voting limit or alter in any way any other im- members to achieve a quorum, the munities that are available under ap- Commission or AAE may involve some plicable law for State officials and em- normally-excluded members subject to ployees not described in this section; the following conditions: nor does this part affect any other (1) A Commission or AAE may ran- right or remedy against the State or domly and in a non-discretionary man- any person other than a member of a ner select the number of refused mem- State Commission or AAE. bers necessary to achieve a quorum; (2) Notwithstanding paragraph (b)(1) § 2550.110 What grants will be avail- of this section, no Commission or AAE able from the Corporation to assist member may, under any cir- in establishing and operating a cumstances, participate in any discus- State Commission, Alternative Ad- sions or decisions regarding a grant ap- ministrative Entity, or Transitional plication submitted by an organization Entity? with which he or she is or was affili- (a) Administrative Grants. The Cor- ated according to the definitions in poration may make administrative paragraph (a) of this section; and grants to States in an amount no less (3) If recused members are included than $250,000 and up to $1 million for so as to achieve quorum, the State the purpose of establishing or oper- Commission or AAE must document ating a State Commission or AAE; the event and report to the Corpora- these grants will be available to States tion within 30 days of the vote. which have Corporation-approved (c) Rule of construction. Paragraph (a) Transitional Entities only if those of this section shall not be construed States commit to establishing a Cor- to limit the authority of any voting poration-approved State Commission member of the State Commission or or AAE prior to the expiration of the AAE to participate in— transitional period. (1) Discussion of, and hearings and fo- (b) Limitation on Federal share. Except rums on, the general duties, policies as provided in paragraph (c) of this sec- and operations of the Commission or tion, the amount of a grant that may

771

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00781 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2551 45 CFR Ch. XXV (10–1–11 Edition)

be provided to a State under this sub- (c) Alternative Match Schedule. The section, together with other Federal Corporation may permit a State that funds available to establish or operate demonstrates hardship or a new State the State Commission or AAE, may Commission to meet alternative not exceed 50 percent of the total cost matching requirements for such a to establish or operate the State Com- grant as follows: mission or AAE.

Grant amount Match requirement

(1) First $100,000 ...... No match requirement. (2) Amounts above $100,000 but less than $250,000 $1 of non-Federal funds for every $2 provided by the Corporation in excess of $100,000. (3) Amounts greater than $250,000 ...... $1 of non-Federal funds for every $1 provided by the Corporation in excess of $250,000.

[74 FR 46508, Sept. 10, 2009] 2551.33 May a sponsor administer more than one program grant from the Corporation? PART 2551—SENIOR COMPANION Subpart C—Suspension and Termination of PROGRAM Corporation Assistance

Subpart A—General 2551.34 What are the rules on suspension, termination, and denial of refunding of Sec. grants? 2551.11 What is the Senior Companion Pro- gram? Subpart D—Senior Companion Eligibility, 2551.12 Definitions. Status, and Cost Reimbursements

Subpart B—Eligibility and Responsibilities of 2551.41 Who is eligible to be a Senior Com- a Sponsor panion? 2551.21 Who is eligible to serve as a sponsor? 2551.42 What types of criminal convictions 2551.22 What are the responsibilities of a or other adjudications disqualify an indi- sponsor? vidual from serving as a Senior Com- 2551.23 What are a sponsor’s program re- panion or as a Senior Companion grant- sponsibilities? funded employee? 2551.24 What are a sponsor’s responsibilities 2551.43 What income guidelines govern eligi- for securing community participation? bility to serve as a stipended Senior 2551.25 What are a sponsor’s administrative Companion? responsibilities? 2551.44 What is considered income for deter- 2551.26 To whom does this part apply? mining volunteer eligibility? 2551.27 What two search components of the 2551.45 Is a Senior Companion a federal em- National Service Criminal History Check ployee, an employee of the sponsor or of must I satisfy to determine an individ- the volunteer station? ual’s suitability to serve in a covered po- 2551.46 What cost reimbursements are pro- sition? vided to Senior Companions? 2551.28 When must I conduct a State crimi- 2551.47 May the cost reimbursements of a nal registry check and a NSOPR check Senior Companion be subject to any tax on an individual in a covered position? or charge, be treated as wages or com- 2551.29 What procedures must I follow in pensation, or affect eligibility to receive conducting a National Service Criminal History Check? assistance from other programs? 2551.30 What documentation must I maintain regarding a National Service Crimi- Subpart E—Senior Companion Terms of nal History Check? Service 2551.31 Under what circumstances may I follow alternative procedures in conducting 2551.51 What are the terms of service of a a State criminal registry check? Senior Companion? 2551.32 Is an individual who refuses to con- 2551.52 What factors are considered in deter- sent to a State criminal registry check, mining a Senior Companion’s service or who makes a false statement in con- schedule? nection with a grantee’s inquiry con- 2551.53 Under what circumstances may a cerning the individual’s criminal history, Senior Companion’s service be termi- eligible to serve in a covered position? nated?

772

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00782 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.12

Subpart F—Responsibilities of a Volunteer gram and to the expenditure of grant Station funds? 2551.122 What legal coverage does the Cor- 2551.61 When may a sponsor serve as a vol- poration make available to Senior Com- unteer station? panions? 2551.62 What are the responsibilities of a AUTHORITY: 42 U.S.C. 4950 et seq.; 42 U.S.C. volunteer station? 12651b–12651d; E.O. 13331, 69 FR 9911. Subpart G—Senior Companion Placements SOURCE: 64 FR 14115, Mar. 24, 1999, unless and Assignments otherwise noted. 2551.71 What requirements govern the as- Subpart A—General signment of Senior Companions? 2551.72 Is a written volunteer assignment § 2551.11 What is the Senior Com- plan required for each volunteer? panion Program? Subpart H—Clients Served The Senior Companion Program provides grants to qualified agencies and 2551.81 What type of clients are eligible to organizations for the dual purpose of be served? engaging persons 55 and older, particularly those with limited incomes, in Subpart I—Application and Fiscal volunteer service to meet critical com- Requirements munity needs; and to provide a high 2551.91 What is the process for application quality experience that will enrich the and award of a grant? lives of the volunteers. Program funds 2551.92 What are project funding require- are used to support Senior Companions ments? in providing supportive, individualized 2551.93 What are grants management re- services to help older adults with spe- quirements? cial needs maintain their dignity and Subpart J—Non-Stipended Senior independence. Companions [74 FR 46508, Sept. 10, 2009]

2551.101 What rule governs the recruitment § 2551.12 Definitions. and enrollment of persons who do not meet the income eligibility guidelines to (a) Act. The Domestic Volunteer serve as Senior Companions without sti- Service Act of 1973, as amended, Pub. pends? L. 93–113, Oct. 1, 1973, 87 Stat. 396, 42 2551.102 What are the conditions of service U.S.C. 4950 et seq. of non-stipended Senior Companions? (b) Adult with special needs. Any indi- 2551.103 Must a sponsor be required to enroll vidual over 21 years of age who has one non-stipended Senior Companions? or more physical, emotional, or mental 2551.104 May Corporation funds be used for health limitations and is in need of as- non-stipended Senior Companions? sistance to achieve and maintain their Subpart K—Non-Corporation Funded SCP highest level of independent living. Projects (c) Adequate staffing level. The number of project staff or full-time equiva- 2551.111 Under what conditions can an agen- lent needed by a sponsor to manage cy or organization sponsor a Senior Com- NSSC project operations considering panion project without Corporation fund- such factors as: number of budgeted ing? Volunteer Service Years (VSY), num- 2551.112 What benefits are a non-Corpora- tion funded project entitled to? ber of volunteer stations, and the size 2551.113 What financial obligation does the of the service area. Corporation incur for non-Corporation (d) Annual income. Total cash and in- funded projects? kind receipts from all sources over the 2551.114 What happens if a non-Corporation preceding 12 months including: the ap- funded sponsor does not comply with the plicant or enrollee’s income and, the Memorandum of Agreement? applicant or enrollee’s spouse’s income, if the spouse lives in the same resi- Subpart L—Restrictions and Legal dence. The value of shelter, food, and Representation clothing, shall be counted if provided 2551.121 What legal limitations apply to the at no cost by persons related to the ap- operation of the Senior Companion Pro- plicant/enrollee, or spouse.

773

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00783 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.12 45 CFR Ch. XXV (10–1–11 Edition)

(e) Chief Executive Officer. The Chief (n) Project. The locally planned and Executive Officer of the Corporation implemented Senior Companion Pro- appointed under the National and Com- gram activity or set of activities as munity Service Act of 1990, as amend- agreed upon between a sponsor and the ed, (NCSA), 42 U.S.C. 12501 et seq. Corporation. (f) Corporation. The Corporation for (o) Qualified individual with a dis- National and Community Service es- ability. An individual with a disability tablished under the Trust Act. The (as defined in the Rehabilitation Act, Corporation is also sometimes referred 29 U.S.C. 705 (20)) who, with or without to as CNCS. reasonable accommodation, can per- (g) Cost reimbursements. Reimburse- form the essential functions of a volun- ments provided to volunteers such as teer position that such individual holds stipends to cover incidental costs, or desires. If a sponsor has prepared a meals, and transportation, to enable written description before advertising them to serve without cost to them- or interviewing applicants for the posi- selves. Also included are the costs of tion, the written description may be annual physical examinations, volun- considered evidence of the essential teer insurance and recognition which functions of the volunteer position. are budgeted as Volunteer Expenses. (p) Service area. The geographically defined area in which Senior Compan- (h) In-home. The non-institutional as- ions are recruited, enrolled, and placed signment of a Senior Companion in a on assignments. private residence. (q) Service schedule. A written delin- (i) A written Letter of Agreement. eation of the days and times a Senior agreement between a volunteer sta- Companion serves each week. tion, the sponsor and the adult served (r) Sponsor. A public agency or pri- or the persons legally responsible for vate non-profit organization, either that adult. It authorizes the assign- secular or faith-based, that is respon- ment of a Senior Companion in the cli- sible for the operation of a Senior Com- ents home, defines the Senior Compan- panion project. ion’s activities and delineates specific (s) Stipend. A payment to Senior arrangements for supervision. Companions to enable them to serve (j) Memorandum of Understanding. A without cost to themselves. The written statement prepared and signed amount of the stipend is determined by by the Senior Companion project spon- the Corporation and is payable in reg- sor and the volunteer station that ular installments. The minimum identifies project requirements, work- amount of the stipend is set by law and ing relationships and mutual respon- shall be adjusted by the CEO from time sibilities. to time. (k) National Senior Service Corps (t) Trust Act. The National and Com- (NSSC). The collective name for the munity Service Trust Act of 1993, Pub. Foster Grandparent Program (FGP), L. 103–82, Sept. 21, 1993, 107 Stat. 785. the Retired and Senior Volunteer Pro- (u) United States and States. Each of gram (RSVP), the Senior Companion the several States, the District of Co- Program (SCP), and Demonstration lumbia, the U.S. Virgin Islands, the Programs established under Title II Commonwealth of Puerto Rico, Guam Parts A, B, C, and E, of the Act. NSSC and American Samoa, and Trust Terri- is also referred to as the ‘‘Senior tories of the Pacific Islands. Corps’’. (v) Volunteer assignment plan. A writ- (l) Non-Corporation support (required). ten description of a Senior Compan- The percentage share of non-Federal ion’s assignment with a client. The cash and in-kind contributions, re- plan identifies specific outcomes for quired to be raised by the sponsor in the client served and the activities of support of the grant. the Senior Companion. (m) Non-Corporation support (excess). (w) Volunteer station. A public agen- The amount of non-Federal cash and cy, secular or faith-based private non- in-kind contributions generated by a profit organization, or proprietary sponsor in excess of the required per- health care organization that accepts centage. the responsibility for assignment and

774

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00784 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.23

supervision of Senior Companions in zation, whether secular or faith-based, health, education, social service or re- or an eligible proprietary health care lated settings such as multi-purpose agency, capable of serving as a volun- centers, home health care agencies, or teer station for the placement of Sen- similar establishments. Each volunteer ior Companions; station must be licensed or otherwise (2) Ensuring that the placement of certified, when required, by the appro- Senior Companions is governed by a priate state or local government. Pri- Memorandum of Understanding: vate homes are not volunteer stations. (i) That is negotiated prior to place- [64 FR 14115, Mar. 24, 1999, as amended at 69 ment; FR 60094, Oct. 7, 2004] (ii) That specifies the mutual responsibilities of the station and sponsor; Subpart B—Eligibility and (iii) That is renegotiated at least Responsibilities of a Sponsor every three years; and (iv) That states the station assures it § 2551.21 Who is eligible to serve as a will not discriminate against volun- sponsor? teers or in the operation of its program The Corporation awards grants to on the basis of race; color; national ori- public agencies, including Indian tribes gin, including individuals with limited and non-profit private organizations, English proficiency; sex; age; political both secular and faith-based, in the affiliation; religion; or on the basis of United States that have the authority disability, if the participant or member to accept and the capability to adminis a qualified individual with a dis- ister a Senior Companion project. ability; and [69 FR 60095, Oct. 7, 2004] (3) Reviewing volunteer placements regularly to ensure that clients are eli- § 2551.22 What are the responsibilities gible to be served. of a sponsor? (d) Develop service opportunities A sponsor is responsible for fulfilling that consider the skills and experiences all project management requirements of the Senior Companion. necessary to accomplish the purposes (e) Consider the demographic make- of the Senior Companion Program as up of the project service area in the en- specified in the Act. A sponsor shall rollment of Senior Companions, taking not delegate or contract these respon- special efforts to recruit eligible indi- sibilities to another entity. The spon- viduals from minority groups, persons sor shall comply with all program reg- with disabilities, and under-rep- ulations and policies, and grant provi- resented groups. sions prescribed by the Corporation. (f) Provide Senior Companions with § 2551.23 What are a sponsor’s pro- assignments that show direct and de- gram responsibilities? monstrable benefits to the adults and the community served, the Senior A sponsor shall: Companions, and the volunteer station; (a) Focus Senior Companion re- with required cost reimbursements sources on critical problems affecting the frail elderly and other adults with specified in § 2551.46; with not less than special needs within the project’s serv- 40 hours of orientation of which 20 ice area. hours must be pre-service, and an aver- (b) Assess in collaboration with other age of 4 hours of monthly in-service community organizations or utilize ex- training. isting assessment of the needs of the (g) Encourage the most efficient and client population in the community effective use of Senior Companions by and develop strategies to respond to coordinating project services and ac- those needs using the resources of Sen- tivities with related national, state ior Companions. and local programs, including other (c) Develop and manage a system of Corporation programs. volunteer stations by: (h) Conduct an annual appraisal of (1) Ensuring that a volunteer station volunteers’ performance and annual re- is a public or non-profit private organi- view of their income eligibility.

775

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00785 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.24 45 CFR Ch. XXV (10–1–11 Edition)

(i) Develop, and annually update, a ties delegated to project staff for NSSC plan for promoting senior service with- program(s) within its control. A full- in the project’s service area. time project director shall not serve (j) Annually assess the accomplish- concurrently in another capacity, paid ments and impact of the project on the or unpaid, during established working identified needs and problems of the hours. The project director may par- client population in the community. ticipate in activities to coordinate pro- (k) Establish written service policies gram resources with those of related for Senior Companions that include but local agencies, boards or organizations. are not limited to annual and sick A sponsor may negotiate the employ- leave, holidays, service schedules, ter- ment of a part-time project director mination, appeal procedures, meal and with the Corporation when it can be transportation reimbursements. demonstrated that such an arrange- [64 FR 14115, Mar. 24, 1999, as amended at 67 ment will not adversely affect the size, FR 60998, Sept. 27, 2002; 69 FR 60095, Oct. 7, scope, and quality of project oper- 2004; 74 FR 46508, Sept. 10, 2009] ations. (d) Consider all project staff as spon- § 2551.24 What are a sponsor’s respon- sor employees subject to its personnel sibilities for securing community participation? policies and procedures. (e) Compensate project staff at a (a) A sponsor shall secure community level that is comparable with other participation in local project operation similar staff positions in the sponsor by establishing an Advisory Council or a similar organizational structure with organization and/or project service a membership that includes people: area. (1) Knowledgeable of human and so- (f) Establish risk management poli- cial needs of the community; cies and procedures covering project (2) Competent in the field of commu- and Senior Companion activities. This nity service and volunteerism; includes provision of appropriate insur- (3) Capable of helping the sponsor ance coverage for Senior Companions, meet its administrative and program vehicles and other properties used in responsibilities including fund-raising, the project. publicity and impact programming; (g) Establish record keeping/report- (4) With interest in and knowledge of ing systems in compliance with Cor- the capability of older adults; and poration requirements that ensure (5) Of a diverse composition that re- quality of program and fiscal oper- flects the demographics of the service ations, facilitate timely and accurate area. submission of required reports and co- (b) The sponsor determines how such operate with Corporation evaluation participation shall be secured, con- and data collection efforts. sistent with the provisions of para- (h) Comply with and ensure that all graphs (a)(1) through (a)(5) of this sec- volunteer stations comply with all ap- tion. plicable civil rights laws and regulations, including providing reasonable § 2551.25 What are a sponsor’s admin- accommodation to qualified individ- istrative responsibilities? uals with disabilities. A sponsor shall: (a) Assume full responsibility for se- § 2551.26 To whom does this part curing maximum and continuing com- apply? munity financial and in-kind support This part applies to Senior Com- to operate the project successfully. panion Sponsors when determining the (b) Provide levels of staffing and re- suitability of Senior Companions, as sources appropriate to accomplish the well as to Senior Companion grant- purposes of the project and carry out funded employees who, on a recurring its project management responsibil- basis, have access to children, persons ities. age 60 and older, or individuals with (c) Employ a full-time project direc- disabilities. tor to accomplish program objectives and manage the functions and activi- [72 FR 48583, Aug. 24, 2007]

776

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00786 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.31

§ 2551.27 What two search components (c) Document the individual’s under- of the National Service Criminal standing that selection into the pro- History Check must I satisfy to de- gram is contingent upon the organiza- termine an individual’s suitability tion’s review of the individual’s crimi- to serve in a covered position? nal history, if any; Unless the Corporation approves an (d) Provide a reasonable opportunity alternative screening protocol, in de- for the individual to review and chal- termining the suitability of an indi- lenge the factual accuracy of a result vidual to serve as a Senior Companion before action is taken to exclude the or as a covered grant-funded employee, individual from the position; you are responsible for ensuring, unless (e) Provide safeguards to ensure the prohibited by State law, that you con- confidentiality of any information re- duct and document a National Service lating to the criminal history check, Criminal History Check, which consists consistent with authorization provided of the following two search compo- by the individual; and nents: (f) Ensure that an individual, for (a) State criminal registry search. A whom the results of a required State search (by name or fingerprint) of the criminal registry check are pending, is State criminal registry for the State in not permitted to have access to chil- which the program operates and the dren, persons age 60 and older, or indi- State in which the individual resides at viduals with disabilities without being the time of application; and accompanied by an authorized program (b) National Sex Offender Public Reg- representative who has previously been istry. A name-based search of the De- cleared for such access. partment of Justice (DOJ) National [72 FR 48583, Aug. 24, 2007] Sex Offender Public Registry (NSOPR). [72 FR 48583, Aug. 24, 2007] § 2551.30 What documentation must I maintain regarding a National § 2551.28 When must I conduct a State Service Criminal History Check? criminal registry check and a You must: NSOPR check on an individual in a (a) Document in writing that you covered position? verified the identity of the individual (a) The State criminal registry check in a covered position by examining the must be conducted on an individual individual’s government-issued photo who enrolls in, or is hired by, your pro- identification card, and that you con- gram after November 23, 2007. ducted the required checks for the cov- (b) The NSOPR check must be con- ered position; and ducted on an individual who is serving, (b) Maintain the results of the Na- or applies to serve, in a covered posi- tional Service Criminal History check tion on or after November 23, 2007. (unless precluded by State law) and [72 FR 48583, Aug. 24, 2007; 72 FR 51009, Sept. document in writing that you consid- 5, 2007] ered the results in selecting the individual. § 2551.29 What procedures must I fol- [72 FR 48583, Aug. 24, 2007] low in conducting a National Serv- ice Criminal History Check? § 2551.31 Under what circumstances You are responsible for ensuring that may I follow alternative procedures the following procedures are satisfied: in conducting a State criminal reg- (a) Verify the individual’s identity by istry check? examining the individual’s govern- (a) FBI fingerprint-based check. If you ment-issued photo identification card, or your designee conduct and document such as a driver’s license; a fingerprint-based criminal history (b) Obtain prior, written authoriza- check through the Federal Bureau of tion for the State criminal registry Investigation, you will be deemed to check and the appropriate sharing of have satisfied the State criminal reg- the results of that check within the istry check requirement and do not program from the individual (but not need separate approval by the Corpora- for the NSOPR check); tion.

777

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00787 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.32 45 CFR Ch. XXV (10–1–11 Edition)

(b) Name-based search. If you conduct Subpart C—Suspension and Termi- and document a name-based criminal nation of Corporation Assist- history check through a source other ance than the FBI that, includes a check of the criminal records repository, in the § 2551.34 What are the rules on suspen- State in which your program is oper- sion, termination, and denial of re- ating, as well as in the State in which funding of grants? the individual lives, you will be deemed (a) The Chief Executive Officer or to have satisfied the State criminal designee is authorized to suspend fur- registry check requirement and do not ther payments or to terminate pay- need separate approval by the Corpora- ments under any grant providing as- tion. sistance under the Act whenever he/she (c) Alternative search approval. If you determines there is a material failure demonstrate that you are prohibited or to comply with applicable terms and otherwise precluded under State law conditions of the grant. The Chief Ex- from complying with a Corporation re- ecutive Officer shall prescribe proce- quirement relating to criminal history dures to insure that: checks or that you can obtain substan- (1) Assistance under the Act shall not tially equivalent or better information be suspended for failure to comply with through an alternative process, the applicable terms and conditions, except Corporation will consider approving an in emergency situations for thirty alternative search protocol that you days; submit in writing to the Office of (2) An application for refunding Grants Management. The Office of under the Act may not be denied unless Grants Management will review the al- the recipient has been given: ternative protocol to ensure that it: (i) Notice at least 75 days before the (1) Verifies the identity of the indi- denial of such application of the possi- vidual; and bility of such denial and the grounds (2) Includes a search of an alternative for any such denial; and criminal database that is sufficient to (ii) Opportunity to show cause why identify the existence, or absence of, such action should not be taken; criminal offenses. (3) In any case where an application for refunding is denied for failure to [72 FR 48583, Aug. 24, 2007] comply with the terms and conditions of the grant, the recipient shall be af- § 2551.32 Is an individual who refuses to consent to a State criminal reg- forded and opportunity for an informal istry check, or who makes a false hearing before an impartial hearing of- statement in connection with a ficer, who has been agreed to by the re- grantee’s inquiry concerning the in- cipient and the Corporation; and dividual’s criminal history, eligible (4) Assistance under the Act shall not to serve in a covered position? be terminated for failure to comply An individual who refuses to consent with applicable terms and conditions to a State criminal registry check, or unless the recipient has been afforded who makes a false statement in con- reasonable notice and opportunity for a nection with a grantee’s inquiry con- full and fair hearing. cerning the individual’s criminal his- (b) In order to assure equal access to tory, is not eligible to serve in a cov- all recipients, such hearings or other ered position. meetings as may be necessary to fulfill the requirements of this section shall [72 FR 48583, Aug. 24, 2007] be held in locations convenient to the recipient agency. § 2551.33 May a sponsor administer (c) The procedures for suspension, more than one program grant from termination, and denial of refunding, the Corporation? that apply to the Senior Companion A sponsor may administer more than Program are specified in 45 CFR Part one Corporation program. 1206. [64 FR 14115, Mar. 24, 1999. Redesignated at 72 [64 FR 14115, March 24, 1999. Redesignated at FR 48583, Aug. 24, 2007] 72 FR 48583, Aug. 24, 2007]

778

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00788 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.44

Subpart D—Senior Companion Eli- of the poverty line, as set forth in 42 gibility, Status, and Cost Reim- U.S.C. 9902 (2). bursements (b) For applicants to become stipended Senior Companions, annual § 2551.41 Who is eligible to be a Senior income is projected for the following 12 Companion? months, based on income at the time of (a) To be a Senior Companion, an in- application. For serving stipended Sen- dividual must: ior Companions, annual income is (1) Be 55 years of age or older; counted for the past 12 months. Annual (2) Be determined by a physical ex- income includes the applicant or en- amination to be capable, with or with- rollee’s income and that of his/her out reasonable accommodation, of spouse, if the spouse lives in the same serving adults with special needs with- residence. Sponsors shall count the out detriment to either himself/herself value of shelter, food, and clothing, if or the adults served; provided at no cost by persons related (3) Agree to abide by all requirements to the applicant, enrollee, or spouse. as set forth in this part; and (c) Allowable medical expenses are (4) In order to receive a stipend, have annual out-of-pocket medical expenses an income that is within the income for health insurance premiums, health eligibility guidelines specified in this care services, and medications provided subpart D. to the applicant, enrollee, or spouse (b) Eligibility to be a Senior Com- which were not and will not be paid by panion shall not be restricted on the Medicare, Medicaid, other insurance, basis of formal education, experience, or other third party payor, and which race, religion, color, national origin, do not exceed 50 percent of the applica- sex, age, handicap, or political affili- ble income guideline. ation. (d) Applicants whose income is not [64 FR 14115, Mar. 24, 1999, as amended at 74 more than 100 percent of the poverty FR 46508, Sept. 10, 2009] line shall be given special consideration for enrollment. § 2551.42 What types of criminal con- (e) Once enrolled, a Senior Com- victions or other adjudications dis- panion shall remain eligible to serve qualify an individual from serving as a Senior Companion or as a Sen- and to receive a stipend so long as his ior Companion grant-funded em- or her income, does not exceed the ap- ployee? plicable income eligibility guideline by Any individual who is registered, or 20 percent. who is required to be registered, on a [64 FR 14115, Mar. 24, 1999, as amended at 67 State sex offender registry, or who has FR 60998, Sept. 27, 2002; 69 FR 20830, Apr. 19, been convicted of murder, as defined 2004; Redesignated at 72 FR 48584, Aug. 24, under Federal law in section 1111 of 2007; 74 FR 46508, Sept. 10, 2009] title 18, United States Code, is deemed unsuitable for, and may not serve in, a § 2551.44 What is considered income position as a Senior Companion or as a for determining volunteer eligi- Senior Companion grant-funded em- bility? ployee. (a) For determining eligibility, ‘‘income’’ refers to total cash or in-kind [74 FR 46508, Sept. 10, 2009] receipts before taxes from all sources § 2551.43 What income guidelines gov- including: ern eligibility to serve as a (1) Money, wages, and salaries before stipended Senior Companion? any deduction, but not including food (a) To receive a stipend, a Senior or rent in lieu of wages; Companion may not have an annual in- (2) Receipts from self-employment or come from all sources, after deducting from a farm or business after deduc- allowable medical expenses, which ex- tions for business or farm expenses; ceeds the program’s income eligibility (3) Regular payments for public as- guideline for the State in which he or sistance, Social Security, Unemploy- she resides. The income eligibility ment or Workers Compensation, strike guideline for each State is 200 percent benefits, training stipends, alimony,

779

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00789 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.45 45 CFR Ch. XXV (10–1–11 Edition)

child support, and military family al- meal periods while serving as a volun- lotments, or other regular support teer, and while attending project-spon- from an absent family member or sored activities. Protection shall be someone not living in the household; provided against claims in excess of (4) Government employee pensions, any benefits or services for medical private pensions, and regular insurance care or treatment available to the vol- or annuity payments; and unteer from other sources. (5) Income from dividends, interest, (2) Personal liability insurance. Protec- net rents, royalties, or income from es- tion is provided against claims in ex- tates and trusts. cess of protection provided by other in- (b) For eligibility purposes, income surance. It does not include profes- does not refer to the following money sional liability coverage. receipts: (3) Excess automobile liability insur- (1) Any assets drawn down as with- ance. (i) For Senior Companions who drawals from a bank, sale of property, drive in connection with their service, house or car, tax refunds, gifts, one- protection is provided against claims time insurance payments or compensa- in excess of the greater of either: tion from injury; (A) Liability insurance volunteers (2) Non-cash income, such as the carry on their own automobiles; or bonus value of food and fuel produced and consumed on farms and the im- (B) The limits of applicable state fi- puted value of rent from owner-occu- nancial responsibility law, or in its ab- pied farm or non-farm housing. sence, levels of protection to be determined by the Corporation for each per- [64 FR 14115, Mar. 24, 1999. Redesignated at 72 son, each accident, and for property FR 48584, Aug. 24, 2007] damage. § 2551.45 Is a Senior Companion a fed- (ii) Senior Companions who drive eral employee, an employee of the their personal vehicles to or on assign- sponsor or of the volunteer station? ments or project-related activities Senior Companions are volunteers, must maintain personal automobile li- and are not employees of the sponsor, ability insurance equal to or exceeding the volunteer station, the Corporation, the levels established by the Corpora- or the Federal Government. tion. (c) Transportation. Senior Compan- [64 FR 14115, Mar. 24, 1999. Redesignated at 72 ions shall receive assistance with the FR 48584, Aug. 24, 2007] cost of transportation to and from volunteer assignments and official project § 2551.46 What cost reimbursements are provided to Senior Compan- activities, including orientation, train- ions? ing, and recognition events. Cost reimbursements include: (d) Physical examination. Senior Com- (a) Stipend. Senior Companions who panions are provided a physical exam- are income eligible will receive a sti- ination prior to assignment and annu- pend in an amount determined by the ally thereafter to ensure that they will Corporation and payable in regular in- be able to provide supportive service stallments, to enable them to serve without injury to themselves or the without cost to themselves. The sti- clients served. pend is paid for the time Senior Com- (e) Meals and recognition. Senior Com- panions spend with their assigned cli- panions shall be provided the following ents, for earned leave, and for attend- within limits of the project’s available ance at official project events. resources: (b) Insurance. A Senior Companion is (1) Assistance with the cost of meals provided with the Corporation-speci- taken while on assignment; and fied minimum levels of insurance as (2) Recognition for their service. follows: (f) Leadership incentive. Senior Com- (1) Accident insurance. Accident insur- panions who serve as volunteer leaders, ance covers Senior Companions for per- assisting new Senior Companions or co- sonal injury during travel between ordinating other Senior Companions in their homes and places of assignment, accordance with the Act, may be paid a during their volunteer service, during monetary incentive.

780

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00790 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.62

(g) Other volunteer expenses. Senior ment is not part of the service schedule Companions may be reimbursed for ex- and is not stipended. penses incurred while performing their (b) Travel time between individual volunteer assignments provided these assignments is a part of the service expenses are described in the Memo- schedule and is stipended. randum of Understanding negotiated (c) Meal time may be part of the with the volunteer station to which the service schedule and is stipended only volunteer is assigned, and there are if it is specified in the goal statement sufficient funds available to cover as part of the service activity. these expenses and meet all other requirements identified in the notice of § 2551.53 Under what circumstances grant award. may a Senior Companion’s service be terminated? [64 FR 14115, Mar. 24, 1999, as amended at 67 FR 60998, Sept. 27, 2002; 69 FR 20830, Apr. 19, (a) A sponsor may remove a Senior 2004. Redesignated at 72 FR 48584, Aug. 24, Companion from service for cause. 2007] Grounds for removal include but are not limited to: extensive and unauthor- § 2551.47 May the cost reimbursements ized absences; misconduct; inability to of a Senior Companion be subject to perform assignments; and failure to ac- any tax or charge, be treated as wages or compensation, or affect cept supervision. A Senior Companion eligibility to receive assistance from may also be removed from service for other programs? having income in excess of the eligi- No. Senior Companion’s cost reim- bility level. bursements are not subject to any tax (b) The sponsor shall establish appro- or charge or treated as wages or com- priate policies on service termination pensation for the purposes of unem- as well as procedures for appeal from ployment insurance, worker’s com- such adverse action. pensation, temporary disability, retirement, public assistance, or similar ben- Subpart F—Responsibilities of a efit payments or minimum wage laws. Volunteer Station Cost reimbursements are not subject to garnishment and do not reduce or § 2551.61 May a sponsor serve as a vol- eliminate the level of, or eligibility for, unteer station? assistance or services a Senior Com- Yes, a sponsor may serve as a volun- panion may be receiving under any teer station, provided this is part of governmental program. the application workplan approved by [64 FR 14115, Mar. 24, 1999. Redesignated at 72 the Corporation. FR 48584, Aug. 24, 2007] [67 FR 60999, Sept. 27, 2002] Subpart E—Senior Companion § 2551.62 What are the responsibilities Terms of Service of a volunteer station? A volunteer station shall undertake § 2551.51 What are the terms of service the following responsibilities in sup- of a Senior Companion? port of Senior Companion volunteers: A Senior Companion shall serve a (a) Develop volunteer assignments minimum of 15 hours per week and a that meet the requirements specified maximum of 40 hours per week. A Sen- in §§ 2551.71 through 2551.72, and regu- ior Companion shall not serve more larly assess those assignments for con- than 2088 hours per year. Within these tinued appropriateness. limitations, a sponsor may set service (b) Select eligible clients for assigned policies consistent with local needs. volunteers. [67 FR 60998, Sept. 27, 2002] (c) Develop a written volunteer assignment plan for each client that § 2551.52 What factors are considered identifies the role and activities of the in determining a Senior Compan- Senior Companion and expected out- ion’s service schedule? comes for the client served. (a) Travel time between the Senior (d) Obtain a Letter of Agreement for Companion’s home and place of assign- Senior Companions assigned in-home.

781

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00791 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.71 45 CFR Ch. XXV (10–1–11 Edition)

This letter must comply with all Fed- (c) Senior Companions shall not pro- eral, State and local regulations. vide services such as those performed (e) Provide Senior Companions serv- by medical personnel, services to large ing the station with: numbers of clients, custodial services, (1) Orientation to the station and any administrative support services, or in-service training necessary to en- other services that would detract from hance performance of assignments; their assignment. (2) Resources required for performance of assignments including reason- [67 FR 60999, Sept. 27, 2002] able accommodation; and (3) Appropriate recognition. § 2551.72 Is a written volunteer assign- (f) Designate a staff member to over- ment plan required for each volun- see fulfillment of station responsibil- teer? ities and supervision of Senior Com- (a) All Senior Companions per- panions while on assignment. forming direct services to individual (g) Keep records and prepare reports clients in home settings and individual required by the sponsor. clients in community-based settings, (h) Provide for the safety of Senior shall receive a written volunteer as- Companions assigned to it. signment plan developed by the volun- (i) Comply with all applicable civil teer station that: rights laws and regulations including (1) Is approved by the sponsor and ac- reasonable accommodation for Senior cepted by the Senior Companion; Companions with disabilities. (j) Undertake such other responsibil- (2) Identifies the client(s) to be ities as may be necessary to the suc- served; cessful performance of Senior Compan- (3) Identifies the role and activities ions in their assignments or as agreed of the Senior Companion and expected to in the Memorandum of Under- outcomes for the client(s); standing. (4) Addresses the period of time each client is expected to receive such serv- Subpart G—Senior Companion ices; and Placements and Assignments (5) Is used to review the status of the Senior Companion’s services in work- § 2551.71 What requirements govern ing with the assigned client(s), as well the assignment of Senior Compan- as the impact of the assignment on the ions? client(s). (a) Senior Companion assignments (b) If there is an existing plan that shall provide for Senior Companions to incorporates paragraphs (a)(2), (3), and give direct services to one or more eli- (4) of this section, that plan shall meet gible adults that: the requirement. (1) Result in person-to-person sup- (c) All Senior Companions serving as portive relationships with each client volunteer leaders shall receive a writ- served. ten volunteer assignment plan devel- (2) Support the achievement and oped by the volunteer station that: maintenance of the highest level of independent living for their clients. (1) Is approved by the sponsor and ac- (3) Are meaningful to the Senior cepted by the Senior Companion; Companion. (2) Identifies the role and activities (4) Are supported by appropriate ori- of the Senior Companion and expected entation, training, and supervision. outcomes; (b) Senior Companions may serve as (3) Addresses the period of time of volunteer leaders, and in this capacity service; and may provide indirect services. Senior (4) Is used to review the status of the Companions with special skills or dem- Senior Companion’s services identified onstrated leadership ability may assist in the assignment plan, as well as the newer Senior Companion volunteers in impact of those services. performing their assignments and in coordinating activities of such volun- [67 FR 60999, Sept. 27, 2002] teers.

782

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00792 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.92

Subpart H—Clients Served nancial obligations. It will document the extent of the Corporation’s obliga- § 2551.81 What type of clients are eligi- tion to provide financial support to the ble to be served? sponsor. Senior Companions serve only adults, (d) What happens if the Corporation re- primarily older adults, who have one or jects an application? The Corporation more physical, emotional, or mental will return to the applicant an applica- health limitations and are in need of tion that is not approved for funding, assistance to achieve and maintain with an explanation of the Corpora- their highest level of independent liv- tion’s decision. ing. (e) For what period of time does the Corporation award a Senior Companion Subpart I—Application and Fiscal grant? The Corporation awards a Senior Requirements Companion grant for a specified period that is usually 12 months in duration. § 2551.91 What is the process for application and award of a grant? § 2551.92 What are project funding requirements? (a) How and when may an eligible organization apply for a grant? (1) An eligi- (a) Is non-Corporation support re- ble organization may file an applica- quired? A Corporation grant may be tion for a grant at any time. awarded to fund up to 90 percent of the (2) Before submitting an application cost of development and operation of a an applicant shall determine the avail- Senior Companion project. The sponsor ability of funds from the Corporation. is required to contribute at least 10 (3) The Corporation may also solicit percent of the total project cost from grant applicants. Applicants solicited non-Federal sources or authorized Fed- under this provision are not assured of eral sources. selection or approval and may have to (b) Under what circumstances does the compete with other solicited or unso- Corporation allow less than the 10 percent licited applications. non-Corporation support? The Corpora- (b) What must an eligible organization tion may allow exceptions to the 10 include in a grant application? (1) An ap- percent local support requirement in plicant shall complete standard forms cases of demonstrated need such as: prescribed by the Corporation. (1) Initial difficulties in the develop- (2) The applicant shall comply with ment of local funding sources during the provisions of Executive Order 12372, the first three years of operations; or ‘‘Intergovernmental Review of Federal (2) An economic downturn, the occur- Programs,’’ (3 CFR, 1982 Comp., p. 197) rence of a natural disaster, or similar in 45 CFR part 1233 and any other appli- events in the service area that severely cable requirements. restrict or reduce sources of local fund- (c) Who reviews the merits of an appli- ing support; or cation and how is a grant awarded? (1) (3) The unexpected discontinuation of The Corporation reviews and deter- local support from one or more sources mines the merit of an application by that a project has relied on for a period its responsiveness to published guide- of years. lines and to the overall purpose and ob- (c) May the Corporation restrict how a jectives of the program. When funds sponsor uses locally generated contribu- are available, the Corporation awards a tions in excess of the 10 percent non-Cor- grant in writing to each applicant poration support required? Whenever lo- whose grant proposal provides the best cally generated contributions to Senior potential for serving the purpose of the Companion projects are in excess of the program. The award will be docu- minimum 10 percent non-Corporation mented by Notice of Grant Award support required, the Corporation may (NGA). not restrict the manner in which such (2) The Corporation and the spon- contributions are expended provided soring organization are the parties to such expenditures are consistent with the NGA. The NGA will document the the provisions of the Act. sponsor’s commitment to fulfill spe- (d) Are program expenditures subject to cific programmatic objectives and fi- audit? All expenditures by the grantee

783

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00793 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.93 45 CFR Ch. XXV (10–1–11 Edition)

of Federal and non-Federal funds, in- Hospitals, and Other Non-Profit Orga- cluding expenditures from excess lo- nizations’; cally generated contributions in sup- (4) The following OMB Circulars, as port of the grant are subject to audit appropriate A–21, ‘‘Cost Principles for by the Corporation, its Inspector Gen- Educational Institution’’, A–87, ‘‘Cost eral, or their authorized agents. Principles for State, Local and Indian (e) How are Senior Companion cost re- Tribal Governments’’, A–122, ‘‘Cost imbursements budgeted? (1) Except as Principles for Non-Profit Organiza- provided in (e)(2) of this section, the tions’’, and A–133, ‘‘Audits of States, total of cost reimbursements for Senior Local Governments, and Other Non- Companions, including stipends, insur- Profit Organizations’’ (OMB circulars ance, transportation, meals, physical are available electronically at the OMB examinations, and recognition, shall be homepage www.whitehouse.gov/WH/EOP/ a sum equal to at least 80 percent of omb); and the amount of the Federal share of the (5) Other applicable Corporation re- grant award. Federal, required non- quirements. Federal, and excess non-Federal re- (b) Project support provided under a sources can be used to make up the Corporation grant shall be furnished at amount allotted for cost reimburse- the lowest possible cost consistent ments. with the effective operation of the (2) The Corporation may allow excep- project. tions to the 80 percent cost reimburse- (c) Project costs for which Corpora- ment requirement in cases of dem- tion funds are budgeted must be justi- onstrated need such as: fied as being necessary and essential to (i) Initial difficulties in the develop- project operation. ment of local funding sources during (d) Volunteer expense items, includ- the first three years of operations; ing transportation, meals, recognition (ii) An economic downturn, the oc- activities and items purchased at the currence of a natural disaster, or simi- volunteers’ own expense and which are lar events in the service area that se- not reimbursed, are not allowable as verely restrict or reduce sources of contributions to the non-Federal share local funding support; or of the budget. (iii) The unexpected discontinuation (e) Costs of other insurance not re- of local support from one or more quired by program policy, but main- sources that a project has relied on for tained by a sponsor for the general con- a period of years. duct of its activities are allowable with (f) May a sponsor pay stipends at a rate the following limitations: different than the rate established by the (1) Types and extent of and cost of Corporation? A sponsor shall pay sti- coverage are according to sound insti- pends at the same rate as that estab- tutional and business practices; lished by the Corporation. (2) Costs of insurance or a contribu- [64 FR 14115, Mar. 24, 1999, as amended at 75 tion to any reserve covering the risk of FR 51415, Aug. 20, 2010] loss of or damage to Government- owned property are unallowable unless § 2551.93 What are grants management the government specifically requires requirements? and approves such costs; and What rules govern a sponsor’s man- (3) The cost of insurance on the lives agement of grants? of officers, trustees or staff is unallow- (a) A sponsor shall manage a grant in able except where such insurance is accordance with: part of an employee plan which is not (1) The Act; unduly restricted. (2) Regulations in this part; (f) Costs to bring a sponsor into basic (3) 45 CFR Part 2541, ‘‘Uniform Ad- compliance with accessibility require- ministrative Requirements for Grants ments for individuals with disabilities and Cooperative Agreements to State are not allowable costs. and Local Governments’’, or 45 CFR (g) Payments to settle discrimination Part 2543, ‘‘Grants and Agreements allegations, either informally through with Institutions of Higher Education, a settlement agreement or formally as

784

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00794 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2551.111

a result of a decision finding discrimi- (e) Non-stipended Senior Companions nation, are not allowable costs. may be placed in separate volunteer (h) Written Corporation approval/ stations where warranted. concurrence is required for the fol- (f) Non-stipended Senior Companions lowing changes in the approved grant: will be encouraged but not required to (1) Reduction in budgeted volunteer serve an average of 20 hours per week service years. and nine months per year. Senior Com- (2) Change in the service area. panions will maintain a close person- (3) Transfer of budgeted line items to-person relationship with their as- from Volunteer Expenses to Support signed special needs clients on a reg- Expenses. This requirement does not ular basis. apply if the 80 percent volunteer cost (g) Non-stipended Senior Companions reimbursement ratio is maintained. may contribute the costs they incur in [64 FR 14115, Mar. 24, 1999, as amended at 69 connection with their participation in FR 20830, Apr. 19, 2004] the program. Such contributions are not counted as part of the required Subpart J—Non-Stipended Senior non-federal share of the grant but may Companions. be reflected in the budget column for excess non-federal resources. § 2551.101 What rule governs the recruitment and enrollment of per- § 2551.103 Must a sponsor be required sons who do not meet the income to enroll non-stipended Senior Com- eligibility guidelines to serve as panions? Senior Companions without stipends? Enrollment of non-stipended Senior Companions is not a factor in the Over-income persons, age 55 or over, may be enrolled in SCP projects as award of new or continuation grants. non-stipended volunteers in commu- § 2551.104 May Corporation funds be nities where there is no RSVP project used for non-stipended Senior Com- or where agreement is reached with the panions? RSVP project that allows for the enrollment of non-stipended volunteers in Federally appropriated funds for SCP the SCP project. shall not be used to pay any cost, including any administrative cost, in- [64 FR 14115, Mar. 24, 1999, as amended at 74 curred in implementing the regulations FR 46508, Sept. 10, 2009] in this part for non-stipended Senior § 2551.102 What are the conditions of Companions. service of non-stipended Senior Companions? Subpart K—Non-Corporation Non-stipended Senior Companions Funded SCP Projects serve under the following conditions: (a) They must not displace or prevent § 2551.111 Under what conditions can eligible low-income individuals from an agency or organization sponsor becoming Senior Companions. a Senior Companion project with- (b) No special privilege or status is out Corporation funding? granted or created among Senior Com- An eligible agency or organization panions, stipended or non-stipended, who wishes to sponsor a Senior Com- and equal treatment is required. panion project without Corporation (c) Training, supervision, and other funding, must sign a Memorandum of support services and cost reimburse- Agreement with the Corporation that: ments, other than the stipend, are (a) Certifies its intent to comply with available equally to all Senior Com- all Corporation requirements for the panions. Senior Companion Program; and (d) All regulations and requirements (b) Identifies responsibilities to be applicable to the program, with the exception listed in paragraph (f) of this carried out by each party. section, apply to all Senior Compan- ions.

785

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00795 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2551.112 45 CFR Ch. XXV (10–1–11 Edition)

§ 2551.112 What benefits are a non- didate, or contending faction or group, Corporation funded project entitled in an election; or to? (ii) Any activity to provide voters or The Memorandum of Agreement enti- prospective voters with transportation tles the sponsor of a non-Corporation to the polls or similar assistance in funded project to: connection with any such election; or (a) All technical assistance and ma- (iii) Any voter registration activity, terials provided to Corporation-funded except that voter registration applica- Senior Companion projects; and tions and nonpartisan voter registration information may be made avail- (b) The application of the provisions able to the public at the premises of of 42 U.S.C. 5044 and 5058. the sponsor. But in making registra- § 2551.113 What financial obligation tion applications and nonpartisan does the Corporation incur for non- voter registration information avail- Corporation funded projects? able, employees of the sponsor shall not express preferences or seek to in- Entry into a Memorandum of Agree- fluence decisions concerning any can- ment with, or issuance of an NGA to a didate, political party, election issue, sponsor of a non-Corporation funded or voting decision. project, does not create a financial ob- (3) The sponsor shall not use grant ligation on the part of the Corporation funds in any activity for the purpose of for any costs associated with the influencing the passage or defeat of project, including increases in required legislation or proposals by initiative payments to Senior Companion’s that petition, except: may result from changes in the Act or (i) In any case in which a legislative in program regulations. body, a committee of a legislative body, or a member of a legislative body § 2551.114 What happens if a non-Cor- poration funded sponsor does not requests any volunteer in, or employee comply with the Memorandum of of such a program to draft, review or Agreement? testify regarding measures or to make representation to such legislative body, A non-Corporation funded project committee or member; or sponsor’s noncompliance with the (ii) In connection with an authoriza- Memorandum of Agreement may result tion or appropriations measure directly in suspension or termination of the affecting the operation of the Senior Corporation’s agreement and all bene- Companion Program. fits specified in § 2551.112. (b) Non-displacement of employed workers. A Senior Companion shall not per- Subpart L—Restrictions and Legal form any service or duty or engage in Representation any activity which would otherwise be performed by an employed worker or § 2551.121 What legal limitations apply which would supplant the hiring of or to the operation of the Senior Com- result in the displacement of employed panion Program and to the expend- workers, or impair existing contracts iture of grant funds? for service. (a) Political activities. (1) No part of (c) Compensation for service. (1) An any grant shall be used to finance, di- agency or organization to which NSSC rectly or indirectly, any activity to in- volunteers are assigned or which oper- fluence the outcome of any election to ates or supervises any NSSC program public office, or any voter registration shall not request or receive any com- activity. pensation from NSSC volunteers or (2) No project shall be conducted in a from beneficiaries for services of NSSC manner involving the use of funds, the volunteers. provision of services, or the employ- (2) This section does not prohibit a ment or assignment of personnel in a sponsor from soliciting and accepting matter supporting or resulting in the voluntary contributions from the com- identification of such project with: munity at large to meet its local sup- (i) Any partisan or nonpartisan polit- port obligations under the grant or ical activity associated with a can- from entering into agreements with

786

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00796 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service Pt. 2552

parties other than beneficiaries to sup- continue to carry out its mission, in- port additional volunteers beyond cluding the definition, development, those supported by the Corporation practice, and expression of its religious grant. beliefs, provided that it does not use (3) A Senior Companion volunteer Corporation funds to support any in- station may contribute to the financial herently religious activities, such as support of the Senior Companion Pro- worship, religious instruction, or pros- gram. However, this support shall not elytization, as part of the programs or be a required precondition for a poten- services funded. If an organization con- tial station to obtain Senior Com- ducts such activities, the activities panion service. must be offered separately, in time or (4) If a volunteer station agrees to location, from the programs or services provide funds to support additional funded under this part. Senior Companions or pay for other (h) Nepotism. Persons selected for Senior Companion support costs, the project staff positions shall not be re- agreement shall be stated in a written lated by blood or marriage to other Memorandum of Understanding. The project staff, sponsor staff or officers, sponsor shall withdraw services if the or members of the sponsor Board of Di- station’s inability to provide monetary rectors, unless there is written concur- or in-kind support to the project under rence from the community group es- the Memorandum of Understanding di- tablished by the sponsor under Subpart minishes or jeopardizes the project’s fi- B of this part and with notification to nancial capabilities to fulfill its obliga- the Corporation. tions. [64 FR 14115, Mar. 24, 1999, as amended at 69 (5) Under no circumstances shall a FR 60095, Oct. 7, 2004] Senior Companion receive a fee for service from service recipients, their § 2551.122 What legal coverage does legal guardian, members of their fam- the Corporation make available to ily, or friends. Senior Companions? (d) Labor and anti-labor activity. The It is within the Corporation’s discre- sponsor shall not use grant funds dition to determine if Counsel is em- rectly or indirectly to finance labor or ployed and counsel fees, court costs, anti-labor organization or related ac- bail and other expenses incidental to tivity. the defense of a Senior Companion are (e) Fair labor standards. A sponsor paid in a criminal, civil or administra- that employs laborers and mechanics tive proceeding, when such a pro- for construction, alteration, or repair ceeding arises directly out of perform- of facilities shall pay wages at pre- ance of the Senior Companion’s activi- vailing rates as determined by the Sec- ties. The circumstances under which retary of Labor in accordance with the the Corporation shall pay such ex- Davis-Bacon Act, as amended, 40 U.S.C. penses are specified in 45 CFR part 1220. 276a. (f) Nondiscrimination. A sponsor or sponsor employee shall not discrimi- PART 2552—FOSTER GRANDPARENT nate against a Senior Companion on PROGRAM the basis of race, color, national origin, sex, age, religion, or political affili- Subpart A—General ation, or on the basis of disability, if Sec. the Senior Companion with a disability 2552.11 What is the Foster Grandparent Pro- is qualified to serve. gram? (g) Religious activities. (1) A Senior 2552.12 Definitions. Companion or a member of the project staff funded by the Corporation shall Subpart B—Eligibility and Responsibilities of not give religious instruction, conduct a Sponsor worship services or engage in any form 2552.21 Who is eligible to serve as a sponsor? of proselytization as part of his or her 2552.22 What are the responsibilities of a duties. sponsor? (2) A sponsor or volunteer station 2552.23 What are a sponsor’s program re- may retain its independence and may sponsibilities?

787

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00797 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Pt. 2552 45 CFR Ch. XXV (10–1–11 Edition)

2552.24 What are a sponsor’s responsibilities Subpart E—Foster Grandparent Terms of for securing community participation? Service 2552.25 What are a sponsor’s administrative responsibilities? 2552.51 What are the terms of service of a 2552.26 To whom does this part apply? Foster Grandparent? 2552.27 What two search components of the 2552.52 What factors are considered in deter- National Service Criminal History Check mining a Foster Grandparent’s service schedule? must I satisfy to determine an individ- 2552.53 Under what circumstances may a ual’s suitability to serve in a covered po- Foster Grandparent’s service be termi- sition? nated? 2552.28 When must I conduct a State criminal registry check and a NSOPR check Subpart F—Responsibilities of a Volunteer on an individual in a covered position? Station 2552.29 What procedures must I follow in conducting a National Service Criminal 2552.61 May a sponsor serve as a volunteer History Check? station? 2552.30 What documentation must I main- 2552.62 What are the responsibilities of a tain regarding a National Service Crimi- volunteer station? nal History Check? 2552.31 Under what circumstances may I fol- Subpart G—Foster Grandparent low alternative procedures in conducting Placements and Assignments a State criminal registry check? 2552.71 What requirements govern the as- 2552.32 Is an individual who refuses to con- signment of Foster Grandparents? sent to a State criminal registry check, 2552.72 Is a written volunteer assignment or who makes a false statement in con- plan required for each volunteer? nection with a grantee’s inquiry concerning the individual’s criminal history, Subpart H—Children Served eligible to serve in a covered position? 2552.33 May a sponsor administer more than 2552.81 What type of children are eligible to one program grant from the Corporation? be served? 2552.82 Under what circumstances may a Subpart C—Suspension and Termination of Foster Grandparent continue to serve an Corporation Assistance individual beyond his or her 21st birthday? 2552.34 What are the rules on suspension, termination, and denial of refunding of Subpart I—Application and Fiscal grants? (eff. until 11-22-07) Requirements 2552.91 What is the process for application Subpart D—Foster Grandparent Eligibility, and award of a grant? Status and Cost Reimbursements 2552.92 What are project funding requirements? 2552.41 Who is eligible to be a Foster Grand- 2552.93 What are grants management re- parent? quirements? 2552.42 What types of criminal convictions or other adjudications disqualify an indi- Subpart J—Non-Stipended Foster vidual from serving as a Foster Grand- Grandparents parent or as a Foster Grandparent grant- funded employee? 2552.101 What rule governs the recruitment 2552.43 What income guidelines govern eligi- and enrollment of persons who do not bility to serve as a stipended Foster meet the income eligibility guidelines to Grandparent? serve as Foster Grandparents without 2552.44 What is considered income for deter- stipends? mining volunteer eligibility? 2552.102 What are the conditions of service 2552.45 Is a Foster Grandparent a federal of non-stipended Foster Grandparents? 2552.103 Must a sponsor be required to enroll employee, an employee of the sponsor or non-stipended Foster Grandparents? of the volunteer station? 2552.104 May Corporation funds be used for 2552.46 What cost reimbursements are pro- non-stipended Foster Grandparents? vided to Foster Grandparents? 2552.47 May the cost reimbursements of a Subpart K—Non-Corporation Funded Foster Foster Grandparent be subject to any tax Grandparent Program Projects or charge, be treated as wages or compensation, or affect eligibility to receive 2552.111 Under what conditions can an agen- assistance from other programs? cy or organization sponsor a Foster

788

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00798 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.12

Grandparent project without Corporation (c) Annual income. Total cash and in- funding? kind receipts from all sources over the 2552.112 What benefits are a non-Corpora- preceding 12 months including: the ap- tion funded project entitled to? plicant or enrollee’s income and, the 2552.113 What financial obligation does the Corporation incur for non-Corporation applicant or enrollee’s spouse’s income, funded projects? if the spouse lives in the same resi- 2552.114 What happens if a non-Corporation dence. The value of shelter, food, and funded sponsor does not comply with the clothing, shall be counted if provided Memorandum of Agreement? at no cost by persons related to the applicant/enrollee, or spouse. Subpart L—Restrictions and Legal (d) Chief Executive Officer. The Chief Representation Executive Officer of the Corporation 2552.121 What legal limitations apply to the appointed under the National and Com- operation of the Foster Grandparent Pro- munity Service Act of 1990, as amend- gram and to the expenditure of grant ed, (NCSA), 42 U.S.C. 12501 et seq. funds? (e) Child. Any individual who is less 2552.122 What legal coverage does the Cor- than 21 years of age. poration make available to Foster (f) Children having exceptional needs. Grandparents? Children who are developmentally dis- AUTHORITY: 42 U.S.C. 4950 et seq.; 42 U.S.C. abled, such as those who are autistic, 12651b–12651d; E.O. 13331, 69 FR 9911. have cerebral palsy or epilepsy, are vis- SOURCE: 64 FR 14126, Mar. 24, 1999, unless ually impaired, speech impaired, hear- otherwise noted. ing impaired, orthopedically impaired, are emotionally disturbed or have a Subpart A—General language disorder, specific learning disability, have multiple disabilities, § 2552.11 What is the Foster Grand- other significant health impairment or parent Program? have literacy needs. Existence of a The Foster Companion Program pro- child’s exceptional need shall be vides grants to qualified agencies and verified by an appropriate professional, organizations for the dual purpose of such as a physician, psychiatrist, psy- engaging persons 55 and older, particu- chologist, registered nurse or licensed larly those with limited incomes, in practical nurse, speech therapist or ed- volunteer service to meet critical com- ucator before a Foster Grandparent is munity needs; and to provide a high assigned to the child. quality experience that will enrich the (g) Children with special needs. Chil- lives of the volunteers. Program funds dren who are abused or neglected; in are to be used to support Foster Grand- need of foster care; adjudicated youth; parents in providing supportive, person homeless youths; teen-age parents; and to person service to children with ex- children in need of protective interven- ceptional needs, or in circumstances tion in their homes. Existence of a that limit their academic, social, or child’s special need shall be verified by emotional development. an appropriate professional before a Foster Grandparent is assigned to the [74 FR 46508, Sept. 10, 2009] child. (h) Corporation. The Corporation for § 2552.12 Definitions. National and Community Service es- (a) Act. The Domestic Volunteer tablished under the NCSA. The Cor- Service Act of 1973, as amended, Pub. poration is also sometimes referred to L. 93–113, Oct. 1, 1973, 87 Stat. 396, 42 as CNCS. U.S.C. 4950 et seq. (i) Cost reimbursements. Reimburse- (b) Adequate staffing level. The num- ments provided to volunteers such as ber of project staff or full-time equiva- stipends to cover incidental costs, lent needed by a sponsor to manage meals, and transportation, to enable NSSC project operations considering them to serve without cost to them- such factors as: number of budgeted selves. Also included are the costs of volunteers/Volunteer Service Years annual physical examinations, volun- (VSYs), number of volunteer stations, teer insurance and recognition which and the size of the service area. are budgeted as Volunteer Expenses.

789

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00799 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.12 45 CFR Ch. XXV (10–1–11 Edition)

(j) In-home. The non-institutional as- teer position that such individual holds signment of a Foster Grandparent in a or desires. If a sponsor has prepared a private residence or a foster home. written description before advertising (k) Letter of Agreement. A written or interviewing applicants for the posi- agreement between a volunteer station, the written description may be tion, the sponsor and the parent or per- considered evidence of the essential sons legally responsible for the child functions of the volunteer position. served by the Foster Grandparent. It (s) Service area. The geographically authorizes the assignment of a Foster defined area in which Foster Grand- Grandparent in the child’s home, de- parents are recruited, enrolled, and fines the Foster Grandparent’s activi- placed on assignments. ties and delineates specific arrange- (t) Service schedule. A written delinea- ments for supervision. tion of the days and times a Foster (l) Memorandum of Understanding. A Grandparent serves each week. written statement prepared and signed (u) Sponsor. A public agency or pri- by the Foster Grandparent project vate non-profit organization, either sponsor and the volunteer station that secular or faith-based, that is respon- identifies project requirements, work- sible for the operation of a Foster ing relationships and mutual respon- Grandparent project. sibilities. (v) Stipend. A payment to Foster (m) National Senior Service Corps Grandparents to enable them to serve (NSSC). The collective name for the without cost to themselves. The Foster Grandparent Program (FGP), amount of the stipend is determined by the Retired and Senior Volunteer Pro- the Corporation and is payable in reg- gram (RSVP), the Senior Companion ular installments. The minimum Program (SCP), and Demonstration amount of the stipend is set by law and Programs established under Title II shall be adjusted by the CEO from time Parts A, B, C, and E, of the Act. NSSC to time. is also referred to as the ‘‘Senior (w) Trust Act. The National and Com- Corps’’. munity Service Trust Act of 1993, Pub. (n) Non-Corporation support (required). L. 103–82, Sept. 21, 1993, 107 Stat. 785. The percentage share of non-Federal (x) United States and States. Each of cash and in-kind contributions, re- the several States, the District of Co- quired to be raised by the sponsor in lumbia, the U.S. Virgin Islands, the support of the grant. Commonwealth of Puerto Rico, Guam (o) Non-Corporation support (excess). and American Samoa, and Trust Terri- The amount of non-Federal cash and tories of the Pacific Islands. in-kind contributions generated by a (y) Volunteer assignment plan. A writ- sponsor in excess of the required per- ten description of a Foster Grand- centage. parent’s assignment with a child. The (p) Parent. A natural parent or a per- plan identifies specific outcomes for son acting in place of a natural parent, the child served and the activities of such as a guardian, a child’s natural the Foster Grandparent. grandparent, or a step-parent with (z) Volunteer station. A public agency, whom the child lives. The term also in- secular or faith-based private non-prof- cludes otherwise unrelated individuals it organization, or proprietary health who are legally responsible for a child’s care organization that accepts the re- welfare. sponsibility for assignment and super- (q) Project. The locally planned and vision of Foster Grandparents in implemented Foster Grandparent Pro- health, education, social service or re- gram activity or set of activities as lated settings such as multi-purpose agreed upon between a sponsor and the centers, home health care agencies, or Corporation. similar establishments. Each volunteer (r) Qualified individual with a dis- station must be licensed or otherwise ability. An individual with a disability certified, when required, by the appro- (as defined in the Rehabilitation Act, priate state or local government. Pri- 29 U.S.C. 705 (20)) who, with or without vate homes are not volunteer stations. reasonable accommodation, can per- [64 FR 14126, Mar. 24, 1999, as amended at 69 form the essential functions of a volun- FR 60095, Oct. 7, 2004]

790

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00800 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.23

Subpart B—Eligibility and (ii) That specifies the mutual respon- Responsibilities of a Sponsor sibilities of the station and sponsor; (iii) That is renegotiated at least § 2552.21 Who is eligible to serve as a every three years; and sponsor? (iv) That states the station assures it The Corporation awards grants to will not discriminate against Foster public agencies, including Indian tribes Grandparents or in the operation of its and non-profit private organizations, program on the basis of race; color; na- both secular and faith-based, in the tional origin, including individuals United States that have the authority with limited English proficiency; sex; to accept and the capability to admin- age; political affiliation; religion; or on ister a Foster Grandparent project. the basis of disability, if the participant or member is a qualified indi- [69 FR 60095, Oct. 7, 2004] vidual with a disability; and (3) Reviewing volunteer placements § 2552.22 What are the responsibilities regularly to ensure that clients are eli- of a sponsor? gible to be served. A sponsor is responsible for fulfilling (d) Develop Foster Grandparent serv- all project management requirements ice opportunities to support locally- necessary to accomplish the purposes identified needs of eligible children in a of the Foster Grandparent Program as way that considers the skills and expe- specified in the Act. A sponsor shall riences of Foster Grandparents. not delegate or contract these respon- (e) Consider the demographic make- sibilities to another entity. A sponsor up of the project service area in the en- shall comply with all program regula- rollment of Foster Grandparents, tak- tions and policies, and grant provisions ing special efforts to recruit eligible in- prescribed by the Corporation. dividuals from minority groups, persons with disabilities, and under-rep- § 2552.23 What are a sponsor’s pro- resented groups. gram responsibilities? (f) Provide Foster Grandparents with A sponsor shall: assignments that show direct and de- (a) Focus Foster Grandparent re- monstrable benefits to the children and sources on providing supportive serv- the community served, the Foster ices and companionship to children Grandparents, and the volunteer sta- with special and exceptional needs, or tion; with required cost reimburse- in circumstances that limit their aca- ments specified in § 2552.46; with not demic, social, or emotional develop- less than 40 hours of orientation of ment within the project’s service area. which 20 hours must be pre-service, and (b) Assess in collaboration with other an average of 4 hours of monthly in- community organizations or utilize ex- service training. isting assessment of the needs of the (g) Encourage the most efficient and client population in the community effective use of Foster Grandparents by and develop strategies to respond to coordinating project services and ac- those needs using the resources of Fos- tivities with related national, state ter Grandparents. and local programs, including other (c) Develop and manage a system of Corporation programs. volunteer stations by: (h) Conduct an annual appraisal of (1) Ensuring that a volunteer station volunteers’ performance and annual re- is a public or non-profit private organi- view of their income eligibility. zation, whether secular or faith-based, (i) Develop, and annually update, a or an eligible proprietary health care plan for promoting senior service with- agency, capable of serving as a volun- in the project’s service area. teer station for the placement of Fos- (j) Annually assess the accomplish- ter Grandparents; ments and impact of the project on the (2) Ensuring that the placement of identified needs and problems of the Foster Grandparents will be governed client population in the community. by a Memorandum of Understanding: (k) Establish written service policies (i) That is negotiated prior to place- for Foster Grandparents that include ment; but are not limited to annual and sick

791

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00801 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.24 45 CFR Ch. XXV (10–1–11 Edition)

leave, holidays, service schedules, ter- A sponsor may negotiate the employ- mination, appeal procedures, meal and ment of a part-time project director transportation reimbursements. with the Corporation when it can be demonstrated that such an arrange- [64 FR 14126, Mar. 24, 1999, as amended at 67 FR 61000, Sept. 27, 2002; 69 FR 60095, Oct. 7, ment will not adversely affect the size, 2004; 74 FR 46508, Sept. 10, 2009] scope, and quality of project operations. § 2552.24 What are a sponsor’s respon- (d) Consider all project staff as sponsibilities for securing community sor employees subject to its personnel participation? policies and procedures. (a) A sponsor shall secure community (e) Compensate project staff at a participation in local project operation level that is comparable with other by establishing an Advisory Council or similar staff positions in the sponsor a similar organizational structure with organization and/or project service a membership that includes people: area. (1) Knowledgeable of human and so- (f) Establish risk management poli- cial needs of the community; cies and procedures covering project (2) Competent in the field of commu- and Foster Grandparent activities. nity service, volunteerism and chil- This includes provision of appropriate dren’s issues; insurance coverage for Foster Grand- (3) Capable of helping the sponsor parents, vehicles and other properties meet its administrative and program used in the project. responsibilities including fund-raising, (g) Establish record keeping/report- publicity and programming for impact; ing systems in compliance with Cor- (4) With interest in and knowledge of poration requirements that ensure the capability of older adults; and quality of program and fiscal oper- (5) Of a diverse composition that re- ations, facilitate timely and accurate flects the demographics of the service submission of required reports and co- area. operate with Corporation evaluation (b) The sponsor determines how such and data collection efforts. participation shall be secured con- (h) Comply with and ensure that all sistent with the provisions of para- volunteer stations comply with all ap- graphs (a)(1) through (a)(5) of this sec- plicable civil rights laws and regulation. tions, including providing reasonable accommodation to qualified individ- § 2552.25 What are a sponsor’s admin- uals with disabilities. istrative responsibilities? A sponsor shall: § 2552.26 To whom does this part (a) Assume full responsibility for se- apply? curing maximum and continuing com- This part applies to Foster Grand- munity financial and in-kind support parent Sponsors in determining the to operate the project successfully. suitability of Foster Grandparents, as (b) Provide levels of staffing and re- well as to Foster Grandparent grant- sources appropriate to accomplish the funded employees who, on a recurring purposes of the project and carry out basis, have access to children, persons its project management responsibil- age 60 and older, or individuals with ities. disabilities. (c) Employ a full-time project direc- [72 FR 48584, Aug. 24, 2007] tor to accomplish program objectives and manage the functions and activi- § 2552.27 What two search components ties delegated to project staff for NSSC of the National Service Criminal program(s) within its control. A full- History Check must I satisfy to de- time project director shall not serve termine an individual’s suitability concurrently in another capacity, paid to serve in a covered position? or unpaid, during established working Unless the Corporation approves an hours. The project director may par- alternative screening protocol, in se- ticipate in activities to coordinate pro- lecting an individual as a Foster gram resources with those of related Grandparent or as a covered grant- local agencies, boards or organizations. funded employee, you are responsible

792

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00802 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.31

for ensuring, unless prohibited by consistent with authorization provided State law, that you conduct and docu- by the individual; and ment a National Service Criminal His- (f) Ensure that an individual, for tory Check, which consists of the fol- whom the results of a required State lowing two search components: criminal registry check are pending, is (a) State criminal registry search. A not permitted to have access to chil- search (by name or fingerprint) of the dren, persons age 60 and older, or indi- State criminal registry for the State in viduals with disabilities without being which the program operates and the accompanied by an authorized program State in which the individual resides at representative who has previously been the time of application; and cleared for such access. (b) National Sex Offender Public Reg- [72 FR 48584, Aug. 24, 2007] istry. A name-based search of the De- partment of Justice (DOJ) National § 2552.30 What documentation must I Sex Offender Public Registry (NSOPR). maintain regarding a National [72 FR 48584, Aug. 24, 2007] Service Criminal History Check? You must: § 2552.28 When must I conduct a State (a) Document in writing that you criminal registry check and a verified the identity of the individual NSOPR check on an individual in a in a covered position by examining the covered position? individual’s government-issued photo (a) The State criminal registry check identification card, and that you con- must be conducted on an individual ducted the required checks for the cov- who enrolls in, or is hired by, your pro- ered position; and gram after November 23, 2007. (b) Maintain the results of the Na- (b) The NSOPR check must be con- tional Service Criminal History check ducted on an individual who is serving, (unless precluded by State law) and or applies to serve, in a covered posi- document in writing that you consid- tion on or after November 23, 2007. ered the results in selecting the indi- [72 FR 48584, Aug. 24, 2007] vidual. [72 FR 48584, Aug. 24, 2007] § 2552.29 What procedures must I follow in conducting a National Serv- § 2552.31 Under what circumstances ice Criminal History Check? may I follow alternative procedures You are responsible for ensuring that in conducting a State criminal reg- the following procedures are satisfied: istry check? (a) Verify the individual’s identity by (a) FBI fingerprint-based check. If you examining the individual’s govern- or your designee conduct and document ment-issued photo identification card, a fingerprint-based criminal history such as a driver’s license; check through the Federal Bureau of (b) Obtain prior, written authoriza- Investigation, you will be deemed to tion for the State criminal registry have satisfied the State criminal reg- check and the appropriate sharing of istry check requirement and do not the results of that check within the need separate approval by the Corpora- program from the individual (but not tion. for the NSOPR check); (b) Name-based search. If you conduct (c) Document the individual’s under- and document a name-based criminal standing that selection into program is history check through a source other contingent upon the organization’s re- than the FBI that, includes a check of view of the individual’s criminal his- the criminal records repository, in the tory, if any; State in which your program is oper- (d) Provide a reasonable opportunity ating, as well as in the State in which for the individual to challenge the fac- the individual lives, you will be deemed tual accuracy of a result before action to have satisfied the State criminal is taken to exclude the individual from registry check requirement and do not the position; need separate approval by the Corpora- (e) Provide safeguards to ensure the tion. confidentiality of any information re- (c) Alternative search approval. If you lating to the criminal history check, demonstrate that you are prohibited or

793

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00803 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.32 45 CFR Ch. XXV (10–1–11 Edition)

otherwise precluded under State law conditions of the grant. The Chief Ex- from complying with a Corporation re- ecutive Officer shall prescribe proce- quirement relating to criminal history dures to ensure that: checks or that you can obtain substan- (1) Assistance under the Act shall not tially equivalent or better information be suspended for failure to comply with through an alternative process, the applicable terms and conditions, except Corporation will consider approving an in emergency situations for thirty alternative search protocol that you days; submit in writing to the Office of (2) An application for refunding Grants Management. The Office of under the Act may not be denied unless Grants Management will review the al- the recipient has been given: ternative protocol to ensure that it: (i) Notice at least 75 days before the (1) Verifies the identity of the indi- denial of such application of the possi- vidual; and bility of such denial and the grounds (2) Includes a search of an alternative for any such denial; and criminal database that is sufficient to (ii) Opportunity to show cause why identify the existence, or absence of, such action should not be taken; criminal offenses. (3) In any case where an application [72 FR 48584, Aug. 24, 2007] for refunding is denied for failure to comply with the terms and conditions § 2552.32 Is an individual who refuses of the grant, the recipient shall be af- to consent to a State criminal reg- forded an opportunity for an informal istry check, or who makes a false hearing before an impartial hearing of- statement in connection with a ficer, who has been agreed to by the re- grantee’s inquiry concerning the in- cipient and the Corporation; and dividual’s criminal history, eligible (4) Assistance under the Act shall not to serve in a covered position? be terminated for failure to comply An individual who refuses to consent with applicable terms and conditions to a State criminal registry check, or unless the recipient has been afforded who makes a false statement in con- reasonable notice and opportunity for a nection with a grantee’s inquiry con- full and fair hearing. cerning the individual’s criminal his- (b) In order to assure equal access to tory, is not eligible to serve in a cov- all recipients, such hearings or other ered position. meetings as may be necessary to fulfill [72 FR 48584, Aug. 24, 2007] the requirements of this section shall be held in locations convenient to the § 2552.33 May a sponsor administer recipient agency. more than one program grant from (c) The procedures for suspension, the Corporation? termination, and denial of refunding, A sponsor may administer more than that apply to the Foster Grandparent one Corporation program grant. Program are specified in 45 CFR part 1206. [64 FR 14126, Mar. 24, 1999. Redesignated at 48584, Aug. 24, 2007] [64 FR 14126, Mar. 24, 1999. Redesignated at 72 FR 48584, Aug. 24, 2007] Subpart C—Suspension and Termi- nation of Corporation Assist- Subpart D—Foster Grandparent ance Eligibility, Status and Cost Re- imbursements § 2552.34 What are the rules on suspension, termination, and denial of re- § 2552.41 Who is eligible to be a Foster funding of grants? Grandparent? (a) The Chief Executive Officer or (a) To be a Foster Grandparent an in- designee is authorized to suspend fur- dividual must: ther payments or to terminate pay- (1) Be 55 years of age or older; ments under any grant providing as- (2) Be determined by a physical ex- sistance under the Act whenever he/she amination to be capable, with or with- determines there is a material failure out reasonable accommodation, of to comply with applicable terms and serving children with exceptional or

794

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00804 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.44

special needs without detriment to ei- residence. Sponsors shall count the ther himself/herself or the children value of shelter, food, and clothing, if served; provided at no cost by persons related (3) Agree to abide by all requirements to the applicant, enrollee, or spouse. as set forth in this part; and (c) Allowable medical expenses are (4) In order to receive a stipend, have annual out-of-pocket medical expenses an income that is within the income for health insurance premiums, health eligibility guidelines specified in this care services, and medications provided subpart D. to the applicant, enrollee, or spouse (b) Eligibility to be a Foster Grand- which were not and will not be paid by parent shall not be restricted on the Medicare, Medicaid, other insurance, basis of formal education, experience, or other third party pay or, and which race, religion, color, national origin, do not exceed 50 percent of the applica- sex, age, handicap, or political affili- ble income guideline. ation. (d) Applicants whose income is not [64 FR 14126, Mar. 24, 1999, as amended at 74 more than 100 percent of the poverty FR 46509, Sept. 10, 2009] line shall be given special consideration for enrollment. § 2552.42 What types of criminal con- (e) Once enrolled, a Foster Grand- victions or other adjudications dis- parent shall remain eligible to serve qualify an individual from serving and to receive a stipend so long as his as a Foster Grandparent or as a or her income, does not exceed the ap- Foster Grandparent grant-funded plicable income eligibility guideline by employee? 20 percent. Any individual who is registered, or who is required to be registered, on a [64 FR 14126, Mar. 24, 1999, as amended at 67 State sex offender registry, or who has FR 61000, Sept. 27, 2002; 69 FR 19775, Apr. 14, 2004. Redesignated at 72 FR 48585, Aug. 24, been convicted of murder, as defined 2007; 74 FR 46509, Sept. 10, 2009] under Federal law in section 1111 of title 18, United States Code, is deemed § 2552.44 What is considered income unsuitable for, and may not serve in, a for determining volunteer eligi- position as a Foster Grandparent or as bility? a Foster Grandparent grant-funded em- (a) For determining eligibility, ‘‘in- ployee. come’’ refers to total cash and in-kind [74 FR 46509, Sept. 10, 2009] receipts before taxes from all sources including: § 2552.43 What income guidelines gov- (1) Money, wages, and salaries before ern eligibility to serve as a any deduction, but not including food stipended Foster Grandparent? or rent in lieu of wages; (a) To receive a stipend, a Foster (2) Receipts from self-employment or Grandparent may not have an annual from a farm or business after deduc- income from all sources, after deduct- tions for business or farm expenses; ing allowable medical expenses, which (3) Regular payments for public as- exceeds the program’s income eligi- sistance, Social Security, Unemploy- bility guideline for the State in which ment or Workers Compensation, strike he or she resides. The income eligi- benefits, training stipends, alimony, bility guideline for each State is 200 child support, and military family al- percent of the poverty line, as set forth lotments, or other regular support in 42 U.S.C. 9902 (2). from an absent family member or (b) For applicants to become someone not living in the household; stipended Foster Grandparents, annual (4) Government employee pensions, income is projected for the following 12 private pensions, and regular insurance months, based on income at the time of or annuity payments; and application. For serving stipended Fos- (5) Income from dividends, interest, ter Grandparents, annual income is net rents, royalties, or income from es- counted for the past 12 months. Annual tates and trusts. income includes the applicant or en- (b) For eligibility purposes, income rollee’s income and that of his/her does not refer to the following money spouse, if the spouse lives in the same receipts:

795

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00805 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.45 45 CFR Ch. XXV (10–1–11 Edition)

(1) Any assets drawn down as with- (3) Excess automobile liability insur- drawals from a bank, sale of property, ance. (i) For Foster Grandparents who house or car, tax refunds, gifts, one- drive in connection with their service, time insurance payments or compensa- protection is provided against claims tion from injury. in excess of the greater of either: (2) Non-cash income, such as the (A) Liability insurance volunteers bonus value of food and fuel produced carry on their own automobiles; or and consumed on farms and the im- (B) The limits of applicable state fi- puted value of rent from owner-occu- nancial responsibility law, or in its ab- pied farm or non-farm housing. sence, levels of protection to be deter- [64 FR 14126, Mar. 24, 1999. Redesignated at 72 mined by the Corporation for each per- FR 48585, Aug. 24, 2007] son, each accident, and for property § 2552.45 Is a Foster Grandparent a damage. federal employee, an employee of (ii) Foster Grandparents who drive the sponsor or of the volunteer sta- their personal vehicles to or on assign- tion? ments or project-related activities Foster Grandparents are volunteers, shall maintain personal automobile li- and are not employees of the sponsor, ability insurance equal to or exceeding the volunteer station, the Corporation, the levels established by the Corpora- or the Federal Government. tion. [64 FR 14126, Mar. 24, 1999. Redesignated at 72 (c) Transportation. Foster Grand- FR 48585, Aug. 24, 2007] parents shall receive assistance with the cost of transportation to and from § 2552.46 What cost reimbursements volunteer assignments and official are provided to Foster Grand- project activities, including orienta- parents? tion, training, and recognition events. Cost reimbursements include: (d) Physical examination. Foster (a) Stipend. Foster Grandparents who Grandparents are provided a physical are income eligible will receive a sti- examination prior to assignment and pend in an amount determined by the annually thereafter to ensure that they Corporation and payable in regular in- will be able to provide supportive serv- stallments, to enable them to serve ice without injury to themselves or the without cost to themselves. The stipend is paid for the time Foster Grand- children served. parents spend with their assigned chil- (e) Meals and recognition. Foster dren, for earned leave, and for attend- Grandparents shall be provided the fol- ance at official project events. lowing within limits of the project’s (b) Insurance. A Foster Grandparent available resources: is provided with the Corporation-speci- (1) Assistance with the cost of meals fied minimum levels of insurance as taken while on assignment; and follows: (2) Recognition for their service. (1) Accident insurance. Accident insur- (f) Other volunteer expenses. Foster ance covers Foster Grandparents for Grandparents may be reimbursed for personal injury during travel between expenses incurred while performing their homes and places of assignment, their volunteer assignments, provided during their volunteer service, during these expenses are described in the meal periods while serving as a volun- Memorandum of Understanding nego- teer, and while attending project-spon- tiated with the volunteer station to sored activities. Protection shall be which the volunteer is assigned and provided against claims in excess of there are sufficient funds available to any benefits or services for medical cover these expenses and meet all other care or treatment available to the volunteer from other sources. requirements identified in the notice of (2) Personal liability insurance. Protec- grant award. tion is provided against claims in ex- [64 FR 14126, Mar. 24, 1999, as amended at 69 cess of protection provided by other in- FR 19775, Apr. 14, 2004; 69 FR 56718, Sept. 22, surance. It does not include profes- 2004. Redesignated at 72 FR 48585, Aug. 24, sional liability coverage. 2007]

796

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00806 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.62

§ 2552.47 May the cost reimbursements not limited to: extensive and unauthor- of a Foster Grandparent be subject ized absences; misconduct; inability to to any tax or charge, be treated as perform assignments; and failure to ac- wages or compensation, or affect cept supervision. A Foster Grandparent eligibility to receive assistance from may also be removed from service for other programs? having income in excess of the eligi- No. Foster Grandparent’s cost reim- bility level. bursements are not subject to any tax (b) The sponsor shall establish appro- or charge or treated as wages or com- priate policies on service termination pensation for the purposes of unem- as well as procedures for appeal from ployment insurance, worker’s com- such adverse action. pensation, temporary disability, retirement, public assistance, or similar ben- Subpart F—Responsibilities of a efit payments or minimum wage laws. Volunteer Station Cost reimbursements are not subject to garnishment, and do not reduce or § 2552.61 May a sponsor serve as a vol- eliminate the level of, or eligibility for, unteer station? assistance or services a Foster Grand- Yes, a sponsor may serve as a volun- parent may be receiving under any gov- teer station, provided this is part of ernmental program. the application workplan approved by [64 FR 14126, Mar. 24, 1999. Redesignated at 72 the Corporation. FR 48585, Aug. 24, 2007] [67 FR 61000, Sept. 27, 2002] Subpart E—Foster Grandparent § 2552.62 What are the responsibilities Terms of Service of a volunteer station? A volunteer station shall undertake § 2552.51 What are the terms of service the following responsibilities in sup- of a Foster Grandparent? port of Foster Grandparent volunteers: A Foster Grandparent shall serve a (a) Develop volunteer assignments minimum of 15 hours per week and a that meet the requirements specified maximum of 40 hours per week. A Fos- in §§ 2552.71 through 2552.72 and regu- ter Grandparent shall not serve more larly assess those assignments for con- than 2088 hours per year. Within these tinued appropriateness. limitations, a sponsor may set service (b) Select eligible children for as- policies consistent with local needs. signed volunteers. (c) Develop a written volunteer as- [67 FR 61000, Sept. 27, 2002] signment plan for each child that identifies the role and activities of the Fos- § 2552.52 What factors are considered ter Grandparent and expected out- in determining a Foster Grand- comes for the child served. parent’s service schedule? (d) Obtain a Letter of Agreement for (a) Travel time between the Foster Foster Grandparents assigned in-home. Grandparent’s home and place of as- This letter must comply with all Fed- signment is not part of the service eral, State and local regulations. schedule and is not stipended. (e) Provide Foster Grandparents serv- (b) Travel time between individual ing the station with: assignments is a part of the service (1) Orientation to the station and any schedule and is stipended. in-service training necessary to en- (c) Meal time may be part of the hance performance of assignments; service schedule and is stipended only (2) Resources required for perform- if it is specified in the goal statement ance of assignments including reason- as part of the service activity. able accommodation; and (3) Appropriate recognition. § 2552.53 Under what circumstances (f) Designate a staff member to over- may a Foster Grandparent’s service see fulfillment of station responsibil- be terminated? ities and supervision of Foster Grand- (a) A sponsor may remove a Foster parents while on assignment. Grandparent from service for cause. (g) Keep records and prepare reports Grounds for removal include but are required by the sponsor.

797

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00807 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.71 45 CFR Ch. XXV (10–1–11 Edition)

(h) Provide for the safety of Foster (b) If there is an existing plan that Grandparents assigned to it. incorporates paragraphs (a)(2), (3), and (i) Comply with all applicable civil (4) of this section, that plan shall meet rights laws and regulations including the requirement. reasonable accommodation for Foster Grandparents with disabilities. Subpart H—Children Served (j) Undertake such other responsibilities as may be necessary to the suc- § 2552.81 What type of children are eli- cessful performance of Foster Grand- gible to be served? parents in their assignments or as agreed to in the Memorandum of Un- Foster Grandparents serve only chil- derstanding. dren and youth with special and exceptional needs, or in circumstances that Subpart G—Foster Grandparent limit their academic, social, or emo- Placements and Assignments tional development, who are less than 21 years of age. § 2552.71 What requirements govern [74 FR 46509, Sept. 10, 2009] the assignment of Foster Grand- parents? § 2552.82 Under what circumstances Foster Grandparent assignments may a Foster Grandparent continue shall: to serve an individual beyond his or (a) Provide for Foster Grandparents her 21st birthday? to give direct services to one or more (a) Only when a Foster Grandparent eligible children. Foster Grandparents has been assigned to, and has developed cannot be assigned to roles such as a relationship with, a child with a dis- teacher’s aides, group leaders or other ability, that assignment may continue similar positions that would detract beyond the individual’s 21st birthday, from the person-to-person relationship. (b) Result in person-to-person sup- provided that: portive relationships with each child (1) Such individual was receiving served. such services prior to attaining the (c) Support the development and chronological age of 21, and the con- growth of each child served. tinuation of service is in the best inter- (d) Be meaningful to the Foster est of the individual; and Grandparent. (2) The sponsor determines that it is (e) Be supported by appropriate ori- in the best interest of both the Foster entation, training and supervision. Grandparent and the individual for the assignment to continue. Such a deter- § 2552.72 Is a written volunteer assign- mination will be made through mutual ment plan required for each volunteer? agreement by all parties involved in the provision of services to the indi- (a) All Foster Grandparents shall re- vidual served. ceive a written volunteer assignment (b) In cases where the assigned Fos- plan developed by the volunteer station ter Grandparent becomes unavailable that: (1) Is approved by the sponsor and ac- to serve a particular individual, the re- cepted by the Foster Grandparent; placement of that Foster Grandparent (2) Identifies the individual child(ren) shall be made through mutual agree- to be served; ment by all parties involved. (3) Identifies the role and activities (c) The sponsor may terminate serv- of the Foster Grandparent and ex- ice to a child with a disability over age pected outcomes for the child; 21, if it determines that such service is (4) Addresses the period of time each no longer in the best interest of either child should receive such services; and the Foster Grandparent or the indi- (5) Is used to review the status of the vidual served. Foster Grandparent’s services in working with the assigned child, as well as [64 FR 14126, Mar. 24, 1999, as amended at 74 FR 46509, Sept. 10, 2009; 74 FR 48866, Sept. 25, the impact of the assignment on the 2009] child’s development.

798

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00808 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.92

Subpart I—Application and Fiscal poration awards a Foster Grandparent Requirements grant for a specified period that is usually 12 months in duration. § 2552.91 What is the process for application and award of a grant? § 2552.92 What are project funding re- (a) How and when may an eligible orga- quirements? nization apply for a grant? (1) An eligi- (a) Is non-Corporation support re- ble organization may file an applica- quired? A Corporation grant may be tion for a grant at any time. awarded to fund up to 90 percent of the (2) Before submitting an application cost of development and operation of a an applicant shall determine the avail- Foster Grandparent project. The spon- ability of funds from the Corporation. sor is required to contribute at least 10 (3) The Corporation may also solicit percent of the total project cost from grants. Applicants solicited under this non-Federal sources or authorized Fed- provision are not assured of selection eral sources. or approval and may have to compete (b) Under what circumstances does the with other solicited or unsolicited ap- Corporation allow less than the 10 percent plications. (b) What must an eligible organization non-Corporation support? The Corpora- include in a grant application? (1) An ap- tion may allow exceptions to the 10 plicant shall complete standard forms percent local support requirement in prescribed by the Corporation. cases of demonstrated need such as: (2) The applicant shall comply with (1) Initial difficulties in the develop- the provisions of Executive Order 12372 ment of local funding sources during ‘‘Intergovernmental Review of Federal the first three years of operations; or Programs,’’ (3 CFR, 1982 Comp., p.197) (2) An economic downturn, the occur- in 45 CFR Part 1233, and any other ap- rence of a natural disaster, or similar plicable requirements. events in the service area that severely (c) Who reviews the merits of an appli- restrict or reduce sources of local fund- cation and how is a grant awarded? (1) ing support; or The Corporation reviews and deter- (3) The unexpected discontinuation of mines the merit of an application by local support from one or more sources its responsiveness to published guide- that a project has relied on for a period lines and to the overall purpose and ob- of years. jectives of the program. When funds (c) May the Corporation restrict how a are available, the Corporation awards a sponsor uses locally generated contribu- grant in writing to each applicant tions in excess of the 10 percent non-Cor- whose grant proposal provides the best poration support required? Whenever lo- potential for serving the purpose of the cally generated contributions to Foster program. The award will be docu- Grandparent projects are in excess of mented by Notice of Grant Award the minimum 10 percent non-Corpora- (NGA). tion support required, the Corporation (2) The Corporation and the spon- may not restrict the manner in which soring organization are the parties to such contributions are expended pro- the NGA. The NGA will document the vided such expenditures are consistent sponsor’s commitment to fulfill specific programmatic objectives and fi- with the provisions of the Act. nancial obligations. It will document (d) Are program expenditures subject to the extent of the Corporation’s obliga- audit? All expenditures by the grantee tion to provide financial support to the of Federal and non-Federal funds, in- sponsor. cluding expenditures from excess lo- (d) What happens if the Corporation re- cally generated contributions in sup- jects an application? The Corporation port of the grant, are subject to audit will return an application that is not by the Corporation, its Inspector Gen- approved for funding to the applicant eral or their authorized agents. with an explanation of the Corpora- (e) How are Foster Grandparent cost re- tion’s decision. imbursements budgeted? (1) Except as (e) For what period of time does the provided in (e)(2) of this section, the Corporation award a grant? The Cor- total of cost reimbursements for Foster

799

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00809 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.93 45 CFR Ch. XXV (10–1–11 Edition)

Grandparents, including stipends, in- are available electronically at the OMB surance, transportation, meals, phys- homepage www.whitehouse.gov/WH/EOP/ ical examinations, and recognition, omb); and shall be a sum equal to at least 80 per- (5) Other applicable Corporation recent of the amount of the Federal quirements. share of the grant award. Federal, re- (b) Project support provided under a quired non-Federal, and excess non- Corporation grant shall be furnished at Federal resources can be used to make the lowest possible cost consistent up the amount allotted for cost reim- with the effective operation of the bursements. project. (2) The Corporation may allow excep- (c) Project costs for which Corpora- tions to the 80 percent cost reimburse- tion funds are budgeted must be justi- ment requirement in cases of dem- fied as being necessary and essential to onstrated need such as: project operation. (i) Initial difficulties in the develop- (d) Volunteer expense items, includ- ment of local funding sources during ing transportation, meals, recognition the first three years of operations; or activities and items purchased at the (ii) An economic downturn, the oc- volunteers’ own expense and which are currence of a natural disaster, or simi- not reimbursed, are not allowable as lar events in the service area that se- contributions to the non-Federal share verely restrict or reduce sources of of the budget. local funding support; or (e) Costs of other insurance not re- (iii) The unexpected discontinuation quired by program policy, but main- of local support from one or more tained by a sponsor for the general con- sources that a project has relied on for duct of its activities are allowable with a period of years. the following limitations: (f) May a sponsor pay stipends at a rate different than the rate established by the (1) Types and extent of and cost of Corporation? A sponsor shall pay sti- coverage are according to sound insti- pends at the same rate as that estab- tutional and business practices; lished by the Corporation. (2) Costs of insurance or a contribution to any reserve covering the risk of [64 FR 14126, Mar. 24, 1999, as amended at 75 loss of or damage to Government- FR 51415, Aug. 20, 2010] owned property are unallowable unless § 2552.93 What are grants management the government specifically requires requirements? and approves such costs; and (3) The cost of insurance on the lives What rules govern a sponsor’s man- of officers, trustees or staff is unallow- agement of grants? able except where such insurance is (a) A sponsor shall manage a grant part of an employee plan which is not awarded in accordance with: unduly restricted. (1) The Act; (2) Regulations in this part; (f) Costs to bring a sponsor into basic (3) 45 CFR Part 2541, ‘‘Uniform Ad- compliance with accessibility require- ministrative Requirements for Grants ments for individuals with disabilities and Cooperative Agreements to State are not allowable costs. and Local Governments’’, or 45 CFR (g) Payments to settle discrimination Part 2543, ‘‘Grants and Agreements allegations, either informally through with Institutions of Higher Education, a settlement agreement or formally as Hospitals, and Other Non-Profit Orga- a result of a decision finding discrimi- nizations’’; nation, are not allowable costs. (4) The following OMB Circulars, as (h) Written Corporation approval/ appropriate A–21, ‘‘Cost Principles for concurrence is required for the fol- Educational Institutions’’, A–87, ‘‘Cost lowing changes in the approved grant: Principles for State, Local and Indian (1) Reduction in budgeted volunteer Tribal Governments’’, A–122, ‘‘Cost service years. Principles for Non-Profit Organiza- (2) Change in the service area. tions’’, and A–133, ‘‘Audits of States, (3) Transfer of budgeted line items Local Governments, and Other Non- from Volunteer Expenses to Support Profit Organizations’’ (OMB circulars Expenses. This requirement does not

800

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00810 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2552.112

apply if the 80 percent volunteer cost (g) Non-stipended Foster Grand- reimbursement ratio is maintained. parents may contribute the costs they [64 FR 14126, Mar. 24, 1999, as amended at 69 incur in connection with their partici- FR 19776, Apr. 14, 2004] pation in the program. Such contributions are not counted as part of the re- Subpart J—Non-Stipended Foster quired non-federal share of the grant Grandparents but may be reflected in the budget column for excess non-federal resources. § 2552.101 What rule governs the recruitment and enrollment of per- § 2552.103 Must a sponsor be required sons who do not meet the income to enroll non-stipended Foster eligibility guidelines to serve as Grandparents? Foster Grandparents without stipends? Enrollment of non-stipended Foster Grandparents is not a factor in the Over-income persons, age 55 or over, award of new or continuation grants. may be enrolled in FGP projects as non-stipended volunteers in commu- § 2552.104 May Corporation funds be nities where there is no RSVP project used for non-stipended Foster or where agreement is reached with the Grandparents? RSVP project that allows for the enrollment of non-stipended volunteers in Federally appropriated funds for FGP the FGP project. shall not be used to pay any cost, including any administrative cost, in- [64 FR 14126, Mar. 24, 1999, as amended at 74 curred in implementing the regulations FR 46509, Sept. 10, 2009] in this part for non-stipended Foster § 2552.102 What are the conditions of Grandparents. service of non-stipended Foster Grandparents? Subpart K—Non-Corporation Non-stipended Foster Grandparents Funded Foster Grandparent serve under the following conditions: Program Projects (a) They must not displace or prevent eligible low-income individuals from § 2552.111 Under what conditions can becoming Foster Grandparents. an agency or organization sponsor (b) No special privilege or status is a Foster Grandparent project with- granted or created among Foster out Corporation funding? Grandparents, stipended or non- stipended, and equal treatment is re- An eligible agency or organization quired. who wishes to sponsor a Foster Grand- (c) Training, supervision, and other parent project without Corporation support services and cost reimburse- funding, must sign a Memorandum of ments, other than the stipend, are Agreement with the Corporation that: available equally to all Foster Grand- (a) Certifies its intent to comply with parents. all Corporation requirements for the (d) All regulations and requirements Foster Grandparent Program; and applicable to the program, with the ex- (b) Identifies responsibilities to be ception listed in paragraph (f) of this carried out by each party. section, apply to all Foster Grand- parents. § 2552.112 What benefits are a non- (e) Non-stipended Foster Grand- Corporation funded project entitled parents may be placed in separate vol- to? unteer stations where warranted. The Memorandum of Agreement enti- (f) Non-stipended Foster Grand- tles the sponsor of a non-Corporation parents will be encouraged but not refunded project to: quired to serve an average of 20 hours (a) All technical assistance and ma- per week and nine months per year. terials provided to Corporation-funded Foster Grandparents will maintain a close person-to-person relationship Foster Grandparent projects; and with their assigned children on a reg- (b) The application of the provisions ular basis. of 42 U.S.C. 5044 and 5058.

801

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00811 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2552.113 45 CFR Ch. XXV (10–1–11 Edition)

§ 2552.113 What financial obligation voter registration information avail- does the Corporation incur for non- able, employees of the sponsor shall Corporation funded projects? not express preferences or seek to in- Entry into a Memorandum of Agree- fluence decisions concerning any can- ment with, or issuance of an NGA to a didate, political party, election issue, sponsor of a non-Corporation funded or voting decision. project, does not create a financial ob- (3) The sponsor shall not use grant ligation on the part of the Corporation funds in any activity for the purpose of for any costs associated with the influencing the passage or defeat of project, including increases in required legislation or proposals by initiative payments to Foster Grandparents that petition, except: may result from changes in the Act or (i) In any case in which a legislative in program regulations. body, a committee of a legislative body, or a member of a legislative body § 2552.114 What happens if a non-Cor- requests any volunteer in, or employee poration funded sponsor does not of such a program to draft, review or comply with the Memorandum of testify regarding measures or to make Agreement? representation to such legislative body, A non-Corporation funded project committee or member; or sponsor’s noncompliance with the (ii) In connection with an authoriza- Memorandum of Agreement may result tion or appropriations measure directly in suspension or termination of the affecting the operation of the FGP. Corporation’s agreement and all bene- (b) Non-displacement of employed work- fits specified in § 2552.112. ers. A Foster Grandparent shall not perform any service or duty or engage Subpart L—Restrictions and Legal in any activity which would otherwise Representation be performed by an employed worker or which would supplant the hiring of or § 2552.121 What legal limitations apply result in the displacement of employed to the operation of the Foster workers, or impair existing contracts Grandparent Program and to the for service. expenditure of grant funds? (c) Compensation for service. (1) An (a) Political activities. (1) No part of agency or organization to which NSSC any grant shall be used to finance, di- volunteers are assigned, or which oper- rectly or indirectly, any activity to in- ates or supervises any NSSC program fluence the outcome of any election to shall not request or receive any com- public office, or any voter registration pensation from NSSC volunteers or activity. from beneficiaries for services of NSSC (2) No project shall be conducted in a volunteers. manner involving the use of funds, the (2) This section does not prohibit a provision of services, or the employ- sponsor from soliciting and accepting ment or assignment of personnel in a voluntary contributions from the com- matter supporting or resulting in the munity at large to meet its local sup- identification of such project with: port obligations under the grant or (i) Any partisan or nonpartisan polit- from entering into agreements with ical activity associated with a can- parties other than beneficiaries to sup- didate, or contending faction or group, port additional volunteers beyond in an election; or those supported by the Corporation (ii) Any activity to provide voters or grant. prospective voters with transportation (3) A Foster Grandparent volunteer to the polls or similar assistance in station may contribute to the financial connection with any such election; or support of the FGP. However, this sup- (iii) Any voter registration activity, port shall not be a required pre- except that voter registration applica- condition for a potential station to ob- tions and nonpartisan voter registra- tain Foster Grandparent service. tion information may be made avail- (4) If a volunteer station agrees to able to the public at the premises of provide funds to support additional the sponsor. But in making registra- Foster Grandparents or pay for other tion applications and nonpartisan Foster Grandparent support costs, the

802

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00812 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service Pt. 2553

agreement shall be stated in a written lated by blood or marriage to other Memorandum of Understanding. The project staff, sponsor staff or officers, sponsor shall withdraw services if the or members of the sponsor Board of Di- station’s inability to provide monetary rectors, unless there is written concur- or in-kind support to the project under rence from the community group es- the Memorandum of Understanding di- tablished by the sponsor under Subpart minishes or jeopardizes the project’s fi- B of this part and with notification to nancial capabilities to fulfill its obliga- the Corporation. tions. (5) Under no circumstances shall a [64 FR 14126, Mar. 24, 1999, as amended at 69 Foster Grandparent receive a fee for FR 60095, Oct. 7, 2004] service from service recipients, their legal guardian, members of their fam- § 2552.122 What legal coverage does ily, or friends. the Corporation make available to (d) Labor and anti-labor activity. The Foster Grandparents? sponsor shall not use grant funds di- It is within the Corporation’s discre- rectly or indirectly to finance labor or tion to determine if Counsel is em- anti-labor organization or related ac- ployed and counsel fees, court costs, tivity. bail and other expenses incidental to (e) Fair labor standards. A sponsor the defense of a Foster Grandparent that employs laborers and mechanics are paid in a criminal, civil or adminis- for construction, alteration, or repair trative proceeding, when such a proof facilities shall pay wages at pre- ceeding arises directly out of perform- vailing rates as determined by the Sec- ance of the Foster Grandparent’s ac- retary of Labor in accordance with the tivities pursuant to the Act. The cir- Davis-Bacon Act, as amended, 40 U.S.C. cumstances under which the Corpora- 276a. tion may pay such expenses are speci- (f) Nondiscrimination. A sponsor or fied in 45 CFR part 1220. sponsor employee shall not discriminate against a Foster Grandparent on the basis of race, color, national origin, PART 2553—THE RETIRED AND sex, age, religion, or political affili- SENIOR VOLUNTEER PROGRAM ation, or on the basis of disability, if the Foster Grandparent with a dis- Subpart A—General ability is qualified to serve. (g) Religious activities. (1) A Foster Sec. Grandparent or a member of the 2553.11 What is the Retired and Senior Vol- project staff funded by the Corporation unteer Program? shall not give religious instruction, 2553.12 Definitions. conduct worship services or engage in Subpart B—Eligibility and Responsibilities of any form of proselytization as part of a Sponsor his or her duties. (2) A sponsor or volunteer station 2553.21 Who is eligible to serve as a sponsor? may retain its independence and may 2553.22 What are the responsibilities of a continue to carry out its mission, in- sponsor? cluding the definition, development, 2553.23 What are a sponsor’s program re- practice, and expression of its religious sponsibilities? beliefs, provided that it does not use 2553.24 What are a sponsor’s responsibilities Corporation funds to support any infor securing community participation? herently religious activities, such as 2553.25 What are a sponsor’s administrative worship, religious instruction, or pros- responsibilities? elytization, as part of the programs or 2553.26 May a sponsor administer more than services funded. If an organization con- one program grant from the Corporation? ducts such activities, the activities Subpart C—Suspension, Termination and must be offered separately, in time or Denial of Refunding location, from the programs or services funded under this part. 2553.31 What are the rules on suspension, (h) Nepotism. Persons selected for termination and denial of refunding of project staff positions shall not be re- grants?

803

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00813 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.11 45 CFR Ch. XXV (10–1–11 Edition)

Subpart D—Eligibility, Cost Reimbursements Subpart J—Performance Measures and Volunteer Assignments 2553.100 What is the purpose of this subpart? 2553.41 Who is eligible to be a RSVP volun- 2553.101 What is the purpose of performance teer? measurement? 2553.42 Is a RSVP volunteer a federal em- 2553.102 What performance measurement in- ployee, an employee of the sponsor or of formation must be part of an application the volunteer station? for funding under RSVP? 2553.43 What cost reimbursements are pro- 2553.103 Who develops the performance vided to RSVP volunteers? measures? 2553.44 May cost reimbursements received 2553.104 What performance measures must by a RSVP volunteer be subject to any be submitted to the Corporation and how tax or charge, treated as wages or com- are these submitted? pensation, or affect eligibility to receive 2553.105 How are performance measures ap- assistance from other programs? proved and documented? 2553.106 How does a sponsor report perform- Subpart E—Volunteer Terms of Service ance measures to the Corporation? 2553.107 What must a sponsor do if it cannot 2553.51 What are the terms of service of a meet its performance measures? RSVP volunteer? 2553.108 When may a sponsor change a 2553.52 Under what circumstances may a project’s performance measures? RSVP volunteer’s service be terminated? 2553.109 What happens if a sponsor fails to meet the performance measures included Subpart F—Responsibilities of a Volunteer in the Notice of Grant Award (NGA)? Station AUTHORITY: 42 U.S.C. 4950 et seq. 2553.61 When may a sponsor serve as a volunteer station? SOURCE: 64 FR 14135, Mar. 24, 1999, unless 2553.62 What are the responsibilities of a otherwise noted. volunteer station? Subpart A—General Subpart G—Application and Fiscal Requirements § 2553.11 What is the Retired and Sen- ior Volunteer Program? 2553.71 What is the process for application and award of a grant? The Retired and Senior Volunteer 2553.72 What are project funding require- Program (RSVP) provides grants to ments? qualified agencies and organizations 2553.73 What are grants management re- for the dual purpose of: engaging per- quirements? sons 55 and older in volunteer service to meet critical community needs; and Subpart H—Non-Corporation Funded to provide a high quality experience Projects that will enrich the lives of volunteers. 2553.81 Under what conditions may an agency or organization sponsor a RSVP § 2553.12 Definitions. project without Corporation funding? (a) Act. The Domestic Volunteer 2553.82 What benefits are a non-Corporation Service Act of 1973, as amended, Pub. funded project entitled to? L. 93–113, Oct. 1, 1973, 87 Stat. 396, 42 2553.83 What financial obligation does the U.S.C. 4950 et seq. Corporation incur for non-Corporation (b) Adequate staffing level. The num- funded projects? 2553.84 What happens if a non-Corporation ber of project staff or full-time equiva- funded sponsor does not comply with the lent needed by a sponsor to manage Memorandum of Agreement? NSSC project operations considering such factors as: number of budgeted Subpart I—Restrictions and Legal volunteers, number of volunteer sta- Representation tions, and the size of the service area. (c) Assignment. The activities, func- 2553.91 What legal limitations apply to the tions or responsibilities to be per- operation of the RSVP Program and to the expenditure of grant funds? formed by volunteers identified in a 2553.92 What legal coverage does the Cor- written outline or description. poration make available to RSVP volun- (d) Chief Executive Officer. The Chief teers. Executive Officer of the Corporation

804

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00814 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.12

appointed under the National and Com- not limited to, the following perform- munity Service Act of 1990, as amend- ance indicators: ed, (NCSA), 42 U.S.C. 12501 et seq. (1) Output indicator. The amount or (e) Corporation. The Corporation for units of service that RSVP volunteers National and Community Service es- have completed, or the number of peo- tablished under the NCSA. The Cor- ple the project has served. An output poration is also sometimes referred to indicator does not provide information as CNCS. on benefits or other changes in the (f) Cost reimbursements. Reimburse- lives of the volunteers or the people ments budgeted as Volunteer Expenses served. and provided to volunteers to cover in- (2) Outcome indicator. Specifies a cidental costs, meals, transportation, change that has occurred in the lives of volunteer insurance, and recognition to the people served or the volunteers. It enable them to serve without cost to is an observable and measurable indi- themselves. cation of whether or not a project is (g) Letter of Agreement. A written making progress toward its outcome agreement between a volunteer sta- target. tion, the sponsor, and person(s) served (m) Project. The locally planned and or the person legally responsible for implemented RSVP activity or set of that person. It authorizes the assign- activities in a service area as agreed ment of a RSVP volunteer in the home upon between a sponsor and the Cor- of a client, defines RSVP volunteer ac- poration. tivities, and specifies supervision ar- (n) Qualified individual with a dis- rangements. ability. An individual with a disability (h) Memorandum of Understanding. A (as defined in the Rehabilitation Act, written statement prepared and signed 29 U.S.C. 705 (20)) who, with or without by the RSVP project sponsor and the reasonable accommodation, can per- volunteer station that identifies form the essential functions of a volun- project requirements, working rela- teer position that such individual holds tionships and mutual responsibilities. or desires. If a sponsor has prepared a (i) National Senior Service Corps written description before advertising (NSSC). The collective name for the or interviewing applicants for the posi- Foster Grandparent Program (FGP), tion, the written description may be the Retired and Senior Volunteer Pro- considered evidence of the essential gram (RSVP), and the Senior Com- functions of the volunteer position. panion Program (SCP), and Demonstra- (o) Service area. The geographically tion Programs established under Parts defined area approved in the grant ap- A, B, C, and E, Title II of the Act. plication, in which RSVP volunteers NSSC is also referred to as the ‘‘Senior are recruited, enrolled, and placed on Corps’’. assignments. (j) Non-Corporation support (required). (p) Sponsor. A public agency or pri- The percentage share of non-Federal vate non-profit organization, either cash and in-kind contributions re- secular or faith-based, that is respon- quired to be raised by the sponsor in sible for the operation of an RSVP support of the grant, including non- project. Corporation federal, state and local (q) Trust Act. The National and Com- governments and privately raised con- munity Service Trust Act of 1993, as tributions. amended, Public Law 103–82, Sept. 21, (k) Non-Corporation support (excess). 1993, 107 Stat. 785. The amount of non-Federal cash and (r) United States and States. Each of in-kind contributions generated by a the several States, the District of Co- sponsor in excess of the required per- lumbia, the U.S. Virgin Islands, the centage. Commonwealth of Puerto Rico, Guam (l) Performance measures. Indicators and American Samoa, and Trust Terri- intended to help determine the impact tories of the Pacific Islands. of an RSVP project on the community, (s) Volunteer station. A public agency, including the volunteers. Performance secular or faith-based private non-prof- measures currently include, but are it organization, or proprietary health

805

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00815 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.21 45 CFR Ch. XXV (10–1–11 Edition)

care organization that accepts the re- range of placement opportunities that sponsibility for assignment and super- appeal to persons age 55 and over by: vision of RSVP volunteers in health, (1) Ensuring that a volunteer station education, social service or related set- is a public or non-profit private organi- tings such as multi-purpose centers, zation, whether secular or faith-based, home health care agencies, or similar or an eligible proprietary health care establishments. Each volunteer station agency, capable of serving as a volun- must be licensed or otherwise certified, teer station for the placement of RSVP when required, by the appropriate state volunteers to meet locally identified or local government. Private homes are needs; not volunteer stations. (2) Ensuring the placement of RSVP [64 FR 14135, Mar. 24, 1999, as amended at 69 volunteers is governed by a Memo- FR 60095, Oct. 7, 2004; 76 FR 20246, Apr. 12, randum of Understanding: 2011] (i) That is negotiated prior to placement; Subpart B—Eligibility and (ii) That specifies the mutual respon- Responsibilities of a Sponsor sibilities of the station and sponsor; (iii) That is renegotiated at least § 2553.21 Who is eligible to serve as a every three years; and sponsor? (iv) That states the station assures it The Corporation awards grants to will not discriminate against RSVP public agencies, including Indian tribes volunteers or in the operation of its and non-profit private organizations, program on the basis of race; color; na- both secular and faith-based, in the tional origin, including individuals United Sates that have authority to with limited English proficiency; sex; accept and the capability to administer age; political affiliation; religion; or on an RSVP project. the basis of disability, if the partici- [69 FR 60095, Oct. 7, 2004] pant or member is a qualified individual with a disability; and § 2553.22 What are the responsibilities (3) Annually assessing the placement of a sponsor? of RSVP volunteers to ensure the safe- A sponsor is responsible for fulfilling ty of volunteers and their impact on all project management requirements meeting the needs of the community. necessary to accomplish the purposes (d) Consider the demographic make- of the RSVP program as specified in up of the project service area in the en- the Act. A sponsor shall not delegate rollment of RSVP volunteers, taking or contract these responsibilities to an- special efforts to recruit eligible indi- other entity. A sponsor shall comply viduals from minority groups, persons with all regulations contained in this with disabilities and under represented part, policies, and grant provisions pre- groups. scribed by the Corporation. (e) Encourage the most efficient and § 2553.23 What are a sponsor’s pro- effective use of RSVP volunteers by co- gram responsibilities? ordinating project services and activities with related national, state and A sponsor shall: (a) Focus RSVP resources to have a local programs, including other Cor- positive impact on critical human and poration programs. social needs within the project service (f) Develop, and annually update, a area. plan for promoting service by older (b) Assess in collaboration with other adults within the project service area. community organizations or utilize ex- (g) Conduct an annual assessment of isting assessments of the needs of the the accomplishments and impact of the community or service area and develop project and how they meet the identi- strategies to respond to those needs fied needs and problems of the commu- using the resources of RSVP volun- nity. teers. (h) Provide RSVP volunteers with (c) Develop and manage a system of cost reimbursements specified in volunteer stations to provide a wide § 2553.43.

806

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00816 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.26

(i) Minimize any disruption to RSVP or unpaid, during established working volunteers when one sponsor is re- hours. The project director may par- placed by another as a result of relin- ticipate in activities to coordinate pro- quishment, denial of refunding, or re- gram resources with those of related competition of a grant. local agencies, boards or organizations. (j) Make every effort to meet such A sponsor may negotiate the employ- performance measures as may be estab- ment of a part-time project director lished for the RSVP project by mutual with the Corporation when it can be agreement. demonstrated that such an arrange- [64 FR 14135, Mar. 24, 1999, as amended at 67 ment will not adversely affect the size, FR 6875, Feb. 14, 2002; 69 FR 60095, Oct. 7, 2004; scope and quality of project operations. 76 FR 20246, Apr. 12, 2011] (d) Consider all project staff as spon- § 2553.24 What are a sponsor’s respon- sor employees subject to its personnel sibilities for securing community policies and procedures. participation? (e) Compensate project staff at a (a) A sponsor shall secure community level that is comparable with similar participation in local project operation staff positions in the sponsor organiza- by establishing an Advisory Council or tion and/or project service area. a similar organizational structure with (f) Establish risk management poli- a membership that includes people: cies and procedures covering project (1) Knowledgeable about human and and RSVP activities. This includes pro- social needs of the community; vision of appropriate insurance cov- (2) Competent in the field of commu- erage for RSVP volunteers, vehicles nity service and volunteerism; and other properties used in the (3) Capable of helping the sponsor project. meet its administrative and program (g) Establish record keeping and re- responsibilities including fund-raising, porting systems in compliance with publicity and programming for impact; Corporation requirements that ensure (4) With an interest in and knowledge quality of program and fiscal oper- of the capability of older adults; and ations, facilitate timely and accurate (5) Of a diverse composition that resubmission of required reports and co- flects the demographics of the service operate with Corporation evaluation area. (b) The sponsor determines how this and data collection efforts. participation shall be secured, con- (h) Comply with and ensure that all sistent with the provisions of para- volunteer stations comply with all ap- graphs (a)(1) through (a)(5) of this sec- plicable civil rights laws and regulation. tions, including providing reasonable accommodation to qualified individ- § 2553.25 What are a sponsor’s admin- uals with disabilities. istrative responsibilities? (i) Conduct criminal history checks A sponsor shall: on all grant-funded staff employed on (a) Assume full responsibility for se- or after October 1, 2009, in accordance curing maximum and continuing com- with the requirements in 45 CFR munity financial and in-kind support 2540.200–207. to operate the project successfully. (b) Provide levels of staffing and re- [64 FR 14135, Mar. 24, 1999, as amended at 74 sources appropriate to accomplish the FR 46509, Sept. 10, 2009] purposes of the project and carry out its project management responsibil- § 2553.26 May a sponsor administer more than one program grant from ities. the Corporation? (c) Employ a full-time project director to accomplish program objectives A sponsor may administer more than and manage the functions and activi- one Corporation program grant. ties delegated to project staff for NSSC program(s) within its control. A full- time project director shall not serve concurrently in another capacity, paid

807

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00817 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.31 45 CFR Ch. XXV (10–1–11 Edition)

Subpart C—Suspension, Termi- process described in § 2553.71 of this nation and Denial of Refund- part. ing [64 FR 14135, Mar. 24, 1999, as amended at 76 FR 20246, Apr. 12, 2011] § 2553.31 What are the rules on suspension, termination and denial of refunding of grants? Subpart D—Eligibility, Cost Reim- (a) The Chief Executive Officer or bursements and Volunteer As- designee is authorized to suspend fur- signments ther payments or to terminate payments under any grant providing as- § 2553.41 Who is eligible to be a RSVP volunteer? sistance under the Act whenever he or she determines there is a material fail- (a) To be an RSVP volunteer, an indi- ure to comply with applicable terms vidual must: and conditions of the grant. The Chief (1) Be 55 years of age or older; Executive Officer shall prescribe proce- (2) Agree to serve without compensa- dures to insure that: tion; (1) Assistance under the Act shall not (3) Reside in or nearby the commu- be suspended for failure to comply with nity served by RSVP; applicable terms and conditions, except (4) Agree to abide by all requirements in emergency situations for thirty as set forth in this part. days; (b) Eligibility to serve as a RSVP (2) An application for refunding volunteer shall not be restricted on the under the Act may not be denied unless basis of formal education, experience, the recipient has been given: race, religion, color, national origin, (i) Notice at least 75 days before the sex, age, handicap or political affili- denial of such application of the possi- ation. bility of such denial and the grounds for any such denial; and § 2553.42 Is a RSVP volunteer a federal (ii) Opportunity to show cause why employee, an employee of the spon- such action should not be taken; sor or of the volunteer station? (3) In any case where an application RSVP volunteers are not employees for refunding is denied for failure to of the sponsor, the volunteer station, comply with the terms and conditions the Corporation, or the Federal Gov- of the grant, the recipient shall be af- ernment. forded an opportunity for an informal hearing before an impartial hearing of- § 2553.43 What cost reimbursements ficer, who has been agreed to by the re- are provided to RSVP volunteers? cipient and the Corporation; and (4) Assistance under the Act shall not RSVP volunteers are provided the be terminated for failure to comply following cost reimbursements within with applicable terms and conditions the limits of the project’s available re- unless the recipient has been afforded sources: reasonable notice and opportunity for a (a) Transportation. RSVP volunteers full and fair hearing. shall receive assistance with the cost (b) In order to assure equal access to of transportation to and from volun- all recipients, such hearings or other teer assignments and official project meetings as may be necessary to fulfill activities, including orientation, train- the requirements of this section shall ing, and recognition events. be held in locations convenient to the (b) Meals. RSVP volunteers shall re- recipient agency. ceive assistance with the cost of meals (c) Beginning in FY 2013, the proce- taken while on assignment. dures for suspension and termination (c) Recognition. RSVP volunteers of RSVP grants, which are specified in shall be provided recognition for their 45 CFR part 1206, shall continue to service. apply, but the procedures in part 1206 (d) Insurance. A RSVP volunteer is applicable to denial of refunding of an provided with the Corporation-speci- RSVP grantee shall not apply to any fied minimum levels of insurance as grant awarded through the competitive follows:

808

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00818 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.61

(1) Accident insurance. Accident insur- § 2553.44 May cost reimbursements re- ance covers RSVP volunteers for per- ceived by a RSVP volunteer be sub- sonal injury during travel between ject to any tax or charge, treated as their homes and places of assignment, wages or compensation, or affect eligibility to receive assistance from during their volunteer service, during other programs? meal periods while serving as a volun- No. RSVP volunteers’ cost reim- teer, and while attending project spon- bursements are not subject to any tax sored activities. Protection shall be or charge and are not treated as wages provided against claims in excess of or compensation for the purposes of un- any benefits or services for medical employment insurance, worker’s com- care or treatment available to the vol- pensation, temporary disability, retire- unteer from other sources. ment, public assistance, or similar ben- (2) Personal liability insurance. Protec- efit payments or minimum wage laws. tion is provided against claims in ex- Cost reimbursements are not subject to cess of protection provided by other in- garnishment, do not reduce or elimi- surance. It does not include profes- nate the level of or eligibility for as- sional liability coverage. sistance or services a volunteer may be (3) Excess automobile liability insur- receiving under any governmental pro- ance. (i) For RSVP volunteers who gram. drive in connection with their service, protection is provided against claims Subpart E—Volunteer Terms of in excess of the greater of either: Service (A) Liability insurance the volunteers carry on their own automobiles; § 2553.51 What are the terms of service of a RSVP volunteer? or (B) The limits of applicable state fi- A RSVP volunteer shall serve weekly nancial responsibility law, or in its ab- on a regular basis, or intensively on short-term assignments consistent sence, levels of protection to be deter- with the assignment description. mined by the Corporation for each person, each accident, and for property § 2553.52 Under what circumstances damage. may a RSVP volunteer’s service be (ii) RSVP volunteers who drive their terminated? personal vehicles to or on assignments (a) A sponsor may remove a RSVP or project-related activities shall volunteer from service for cause. maintain personal automobile liability Grounds for removal include but are insurance equal to or exceeding the not limited to: extensive and unauthor- levels established by the Corporation. ized absences; misconduct; inability to (e) Other volunteer expenses. RSVP perform assignments; and failure to ac- volunteers may be reimbursed for except supervision. penses incurred while performing their (b) The sponsor shall establish appro- volunteer assignments, provided these priate policies on service termination expenses are described in the Memo- as well as procedures for appeal from randum of Understanding negotiated such adverse action. with the volunteer station and there are sufficient funds available to cover Subpart F—Responsibilities of a these expenses and meet all other re- Volunteer Station quirements identified in the notice of § 2553.61 When may a sponsor serve as grant award. a volunteer station? [64 FR 14135, Mar. 24, 1999, as amended at 69 The sponsor may function as a volun- FR 20831, Apr. 19, 2004; 69 FR 56718, Sept. 22, teer station, provided that no more 2004] than 5% of the total number of volunteers budgeted for the project are assigned to it in administrative or support positions. This limitation does not apply to the assignment of volunteers to other programs administered by the

809

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00819 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.62 45 CFR Ch. XXV (10–1–11 Edition)

sponsor or special volunteer activities Subpart G—Application and Fiscal of the project. The RSVP project itself Requirements may function as a volunteer station or may initiate special volunteer activi- § 2553.71 What is the process for appli- ties provided the Corporation agrees cation and award of a grant? that these activities are in accord with As funds become available, the Cor- program objectives and will not hinder poration solicits applications for RSVP overall project operations. grants from eligible organizations through a competitive process. § 2553.62 What are the responsibilities (a) What are the application require- of a volunteer station? ments for an RSVP grant? An applicant A volunteer station shall undertake must: the following responsibilities in sup- (1) Submit required information de- port of RSVP volunteers: termined by the Corporation. (a) Develop volunteer assignments (2) Demonstrate compliance with any that impact critical human and social applicable requirements specified in needs, and regularly assess those as- the Notice of Funding Availability or signments for continued appropriate- Notice of Funding Opportunity. ness; (b) What process does the Corporation (b) Assign staff member responsible use to select new RSVP grantees? (1) The for day to day oversight of the place- Corporation reviews and determines ment of RSVP volunteers within the the merits of an application by its re- volunteer station and for assessing the sponsiveness to published guidelines and to the overall purpose and objec- impact of volunteers in addressing tives of the program. In conducting its community needs; review during the competitive process, (c) Obtain a Letter of Agreement for the Corporation considers the input an RSVP volunteer assigned in-home. and opinions of those serving on a peer The Letter of Agreement shall comply review panel, including members with with all Federal, State and local regu- expertise in senior service and aging, lations; and may conduct site inspections, as (d) Keep records and prepare reports appropriate. as required; (2) The selection process includes: (e) Comply with all applicable civil (i) Determining whether an applica- rights laws and regulations including tion complies with the application re- reasonable accommodation for RSVP quirements, such as deadlines, eligi- volunteers with disabilities; and bility, and programmatic require- (f) Provide assigned RSVP volunteers ments, including performance measure- the following support: ment requirements; (1) Orientation to station and appro- (ii) Applying published selection cri- priate in-service training to enhance teria, as stated in the applicable Notice performance of assignments; of Funding Availability or Notice of (2) Resources required for perform- Funding Opportunity, to assess the ance of assignments including reason- quality of the application; able accommodation; (iii) Applying any applicable priorities or preferences, as stated in the ap- (3) Supervision while on assignment; plicable Notice of Funding Availability (4) Appropriate recognition; and or Notice of Funding Opportunity; (5) Provide for the safety of RSVP (iv) Ensuring innovation and geo- volunteers assigned to it. graphic, demographic, and pro- (g) Undertake such other responsibil- grammatic diversity across the Cor- ities as may be necessary to the suc- poration’s RSVP grantee portfolio; and cessful performance of RSVP volun- (v) Identifying the applications that teers in their assignments or as agreed most completely respond to the pub- to in the Memorandum of Under- lished guidelines and offer the highest standing. probability of successfully carrying out the overall purpose and objectives of the program.

810

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00820 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.72

(c) How is a grant awarded? (1) Subject ployees of the Corporation and rep- to the availability of funds, the award resentatives of communities served by will be documented by a Notice of RSVP volunteers, who will provide Grant Award (NGA). their input and opinions concerning (2) The Corporation and the spon- each grant. soring organization are parties to the (4) The Corporation will use the eval- NGA. The NGA will document the uation findings as the basis for pro- sponsor’s commitment to fulfill spe- viding recommendations for program cific programmatic objectives and fi- improvement, and for the provision of nancial obligations. It will document training and technical assistance. the extent of the Corporation’s obliga- (5) The evaluation will assess: tion to provide assistance to the spon- (i) The project’s strengths and areas sor. in need of improvement; (d) What happens if the Corporation re- (ii) Whether the project has ade- jects an application? The Corporation quately addressed population and com- will return to the applicant an applica- munity-wide needs; tion that is not approved for funding, (iii) The efforts of the project to col- informing the applicant of the Corpora- laborate with other community-based tion’s decision. organizations, units of government, (e) For what period of time does the and entities providing services to sen- Corporation award a grant? The Cor- iors, taking into account barriers to poration awards an RSVP grant for a such collaboration that such programs specified period that is 3 years in dura- may encounter; tion with an option for a grant renewal (iv) The project’s compliance with of 3 years, if the grantee’s performance the program requirements for the ap- and compliance with grant terms and propriate use of Federal funds as em- conditions are satisfactory. The Cor- bodied in a protocol for fiscal manage- poration will use the Denial of Refund- ment; ing procedures set forth in 45 CFR part (v) To what extent the project is in 1206 to deny funding to a grantee when conformity with the eligibility, out- the Corporation determines that the reach, enrollment, and other require- grant should not be renewed for an ad- ments for RSVP projects; and ditional 3 years. (vi) The extent to which the project (f) What assistance in preparation for is achieving other measures of per- competitive award of all RSVP grants will formance developed by the Corpora- the Corporation provide to sponsors who tion, in consultation with the review have previously received a grant and team. whose grants are expiring in fiscal year 2011, 2012, or 2013? (1) For each grant ex- [76 FR 20246, Apr. 12, 2011] piring in fiscal years 2011, 2012, or 2013, the Corporation will evaluate the § 2553.72 What are project funding re- grant, to the maximum extent prac- quirements? ticable, in fiscal years 2010, 2011, and (a) Is non-Corporation support re- 2012, respectively. quired? (1) A Corporation grant may be (2) The evaluation will give par- awarded to fund up to 90 percent of the ticular attention to the different needs total project cost in the first year, 80 of rural and urban projects, including percent in the second year, and 70 per- those serving Native American commu- cent in the third and succeeding years. nities, and will evaluate the extent to (2) A sponsor is responsible for identi- which the sponsor meets or exceeds fying non-Corporation funds which performance measures, outcomes, and may include in-kind contributions. other criteria established by the Cor- (b) Under what circumstances does the poration. Corporation allow less than the percent- (3) To the maximum extent prac- age identified in paragraph (a) of this sec- ticable, the Corporation will ensure tion? The Corporation may allow excep- that each evaluation is conducted by a tions to the local support requirement review team made up of trained indi- identified in paragraph (a) of this sec- viduals who are knowledgeable about tion in cases of demonstrated need RSVP, including current or former em- such as:

811

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00821 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.73 45 CFR Ch. XXV (10–1–11 Edition)

(1) Initial difficulties in the develop- tions’’, and A–133, ‘‘Audits of States, ment of local funding sources during Local Governments, and Other Non- the first three years of operations; or Profit Organizations’’ (OMB circulars (2) An economic downturn, the occur- are available electronically at the OMB rence of a natural disaster, or similar homepage www.whitehouse.gov/WH/EOP/ events in the service area that severely omb); and restrict or reduce sources of local fund- (5) Other applicable Corporation re- ing support; or quirements. (3) The unexpected discontinuation of (b) Project support provided under a local support from one or more sources Corporation grant shall be furnished at that a project has relied on for a period the lowest possible cost consistent of years. with the effective operation of the (c) May the Corporation restrict how a project. sponsor uses locally generated contribu- (c) Project costs for which Corpora- tions in excess of the non-Corporation tion funds are budgeted must be justi- support required? Whenever locally gen- fied as being essential to project oper- erated contributions to RSVP projects ation. are in excess of the non-Corporation (d) Volunteer expense items, includ- funds required (10 percent of the total ing transportation, meals, recognition cost in the first year, 20 percent in the activities and items purchased at the second year and 30 percent in the third volunteers own expense that are not re- and succeeding years), the Corporation imbursed, are not allowable as con- may not restrict the manner in which tributions to the non-Federal share of such contributions are expended pro- the budget. vided such expenditures are consistent (e) Costs of other insurance not re- with the provisions of the Act. quired by program policy, but main- (d) Are program expenditures subject to tained by a sponsor for the general con- audit? All expenditures by the grantee duct of its activities are allowable with of Federal and Non-Federal funds, in- the following limitations: cluding expenditures from excess locally generated contributions, are sub- (1) Types and extent of and cost of ject to audit by the Corporation, its In- coverage are according to sound insti- spector General, or their authorized tutional and business practices; agents. (2) Costs of insurance or a contribution to any reserve covering the risk of [64 FR 14135, Mar. 24, 1999, as amended at 67 loss of or damage to Government- FR 6875, Feb. 14, 2002] owned property are unallowable unless the government specifically requires § 2553.73 What are grants management requirements? and approves such costs; and (3) The cost of insurance on the lives What rules govern a sponsor’s man- of officers, trustees or staff is unallow- agement of grants? able except where such insurance is (a) A sponsor shall manage a grant part of an employee plan which is not awarded in accordance with: unduly restricted. (1) The Act; (2) Regulations in this part; (f) Costs to bring a sponsor into basic (3) 45 CFR Part 2541, ‘‘Uniform Ad- compliance with accessibility require- ministrative Requirements for Grants ments for individuals with disabilities and Cooperative Agreements to State are not allowable costs. and Local Governments’’, or 45 CFR (g) Payments to settle discrimination Part 2543, ‘‘Grants and Agreements allegations, either informally through with Institutions of Higher Education, a settlement agreement or formally as Hospitals, and Other Non-Profit Orga- a result of a decision finding discrimi- nizations’’; nation, are not allowable costs. (4) The following OMB Circulars, as (h) Written Corporation State Office appropriate A–21, ‘‘Cost Principles for approval/concurrence is required for a Educational Institutions’’, A–87, ‘‘Cost change in the approved service area. Principles for State, Local and Indian [64 FR 14135, Mar. 24, 1999, as amended at 67 Tribal Governments’’, A–122, ‘‘Cost FR 6875, Feb. 14, 2002; 69 FR 20831, Apr. 19, Principles for Non-Profit Organiza- 2004]

812

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00822 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.91

Subpart H—Non-Corporation fluence the outcome of any election to Funded Projects public office, or any voter registration activity. § 2553.81 Under what conditions may (2) No project shall be conducted in a an agency or organization sponsor manner involving the use of funds, the a RSVP project without Corpora- provision of services, or the employ- tion funding? ment or assignment of personnel in a An eligible agency or organization matter supporting or resulting in the who wishes to sponsor a RSVP project identification of such project with: without Corporation funding, must (i) Any partisan or nonpartisan polit- sign a Memorandum of Agreement with ical activity associated with a can- the Corporation that: didate, or contending faction or group, (a) Certifies its intent to comply with in an election; or all Corporation requirements for the (ii) Any activity to provide voters or Retired and Senior Volunteer Program; prospective voters with transportation and to the polls or similar assistance in (b) Identifies responsibilities to be connection with any such election; or carried out by each party. (iii) Any voter registration activity, except that voter registration applica- § 2553.82 What benefits are a non-Cor- poration funded project entitled to? tions and nonpartisan voter registration information may be made avail- (a) All technical assistance and ma- able to the public at the premises of terials provided to Corporation-funded the sponsor. But in making registra- RSVP projects; and tion applications and nonpartisan (b) The application of the provisions voter registration information avail- of 42 U.S.C. 5044 and 5058. able, employees of the sponsor shall not express preferences or seek to in- § 2553.83 What financial obligation does the Corporation incur for non- fluence decisions concerning any can- Corporation funded projects? didate, political party, election issue, or voting decision. Entry into a Memorandum of Agree- (3) The sponsor shall not use grant ment with, or issuance of an NGA to a funds in any activity for the purpose of sponsor of a non-Corporation funded influencing the passage or defeat of project does not create a financial obli- legislation or proposals by initiative gation on the part of the Corporation petition, except: for any costs associated with the project. (i) In any case in which a legislative body, a committee of a legislative § 2553.84 What happens if a non-Cor- body, or a member of a legislative body poration funded sponsor does not requests any volunteer in, or employee comply with the Memorandum of of such a program to draft, review or Agreement? testify regarding measures or to make A non-Corporation funded project representation to such legislative body, sponsor’s noncompliance with the committee or member; or Memorandum of Agreement may result (ii) In connection with an authoriza- in suspension or termination of the tion or appropriations measure directly Corporation’s agreement and all bene- affecting the operation of the RSVP fits specified in § 2553.82. Program. (b) Nondisplacement of employed work- Subpart I—Restrictions and Legal ers. A RSVP volunteer shall not per- Representation form any service or duty or engage in any activity which would otherwise be § 2553.91 What legal limitations apply performed by an employed worker or to the operation of the RSVP Pro- which would supplant the hiring of or gram and to the expenditure of result in the displacement of employed grant funds? workers, or impair existing contracts (a) Political activities. (1) No part of for service. any grant shall be used to finance, di- (c) Compensation for service. (1) An rectly or indirectly, any activity to in- agency or organization to which NSSC

813

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00823 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.92 45 CFR Ch. XXV (10–1–11 Edition)

volunteers are assigned, or which oper- the volunteer with a disability is quali- ates or supervises any NSSC program, fied to serve. shall not request or receive any com- (g) Religious activities. (1) A RSVP vol- pensation from NSSC volunteers or unteer or a member of the project staff from beneficiaries for services of NSSC funded by the Corporation shall not volunteers. give religious instruction, conduct wor- (2) This section does not prohibit a ship services or engage in any form of sponsor from soliciting and accepting proselytization as part of his/her du- voluntary contributions from the com- ties. munity at large to meet its local sup- (2) A sponsor or volunteer station port obligations under the grant; or, may retain its independence and may from entering into agreements with continue to carry out its mission, in- parties other than beneficiaries to sup- cluding the definition, development, port additional volunteers beyond practice, and expression of its religious those supported by the Corporation beliefs, provided that it does not use grant. Corporation funds to support any inherently religious activities, such as (3) A RSVP volunteer station may worship, religious instruction, or pros- contribute to the financial support of elytization, as part of the programs or the RSVP Program. However, this sup- services funded. If an organization con- port shall not be a required pre- ducts such activities, the activities condition for a potential station to ob- must be offered separately, in time or tain RSVP volunteers. location, from the programs or services (4) If a volunteer station agrees to funded under this part. provide funds to support additional vol- (h) Nepotism. Persons selected for unteers or pay for other volunteer sup- project staff positions shall not be report costs, the agreement shall be stat- lated by blood or marriage to other ed in a written Memorandum of Under- project staff, sponsor staff or officers, standing. The sponsor shall withdraw or members of the sponsor Board of Di- services if the station’s inability to rectors, unless there is written concur- provide monetary or in-kind support to rence from the Advisory Council or the project under the Memorandum of community group established by the Understanding diminishes or jeopard- sponsor under subpart B of this part, izes the project’s financial capabilities and with notification to the Corpora- to fulfill its obligations. tion. (5) Under no circumstances shall a [64 FR 14135, Mar. 24, 1999, as amended at 69 RSVP volunteer receive a fee for serv- FR 60095, Oct. 7, 2004] ice from service recipients, their legal guardian, members of their family, or § 2553.92 What legal coverage does the friends. Corporation make available to (d) Labor and anti-labor activity. The RSVP volunteers? sponsor shall not use grant funds di- It is within the Corporation’s discre- rectly or indirectly to finance labor or tion to determine if Counsel is em- anti-labor organization or related ac- ployed and counsel fees, court costs, tivity. bail and other expenses incidental to (e) Fair labor standards. A sponsor the defense of a RSVP volunteer are that employs laborers and mechanics paid in a criminal, civil or administra- for construction, alteration, or repair tive proceeding, when such a proof facilities shall pay wages at pre- ceeding arises directly out of perform- vailing rates as determined by the Sec- ance of the volunteer’s activities. The retary of Labor in accordance with the circumstances under which the Cor- Davis-Bacon Act, as amended, 40 U.S.C. poration may pay such expenses are 276a. specified in 45 CFR part 1220. (f) Nondiscrimination. A sponsor or sponsor employee shall not discrimi- Subpart J—Performance nate against a RSVP volunteer on the Measurement basis of race, color, national origin, sex, age, religion, or political affili- SOURCE: 76 FR 20247, Apr. 12, 2011, unless ation, or on the basis of disability, if otherwise noted.

814

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00824 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2553.107

§ 2553.100 What is the purpose of this plication. The Corporation will provide subpart? standard forms. This subpart sets forth the minimum (1) Output indicators. (2) Outcome indicators. performance measurement require- (b) An applicant must also submit ments for Corporation-funded Retired any uniform performance measures the and Senior Volunteer Program (RSVP) Corporation may establish for all ap- projects. plicants. (c) The Corporation may specify ad- § 2553.101 What is the purpose of performance measurement? ditional requirements relating to performance measures on an annual basis The purpose of performance measure- in program guidance and related mate- ment is to strengthen the RSVP rials. project and foster continuous improvement. Reporting on performance meas- § 2553.105 How are performance measures is used by the Corporation as part ures approved and documented? of assessing the impact of the project (a) The Corporation reviews and ap- on the community and on the accom- proves performance measures for all plishment of the objectives established applicants that apply for funding from in the Corporation’s Strategic Plan. In the Corporation. addition, as part of the competitive (b) An applicant must follow Cor- process, performance measures are poration-provided guidance and for- used to assess how an applicant for a mats provided when submitting per- grant approaches the design of volun- formance measures. teer activities and the measurement of (c) Final performance measures, as their impact on community needs. negotiated between the applicant and the Corporation, will be documented in § 2553.102 What performance measure- the Notice of Grant Award (NGA). ment information must be part of an application for funding under § 2553.106 How does a sponsor report RSVP? performance measures to the Cor- An application to the Corporation for poration? funding under RSVP must contain: The Corporation will set specific re- (a) Performance measures. porting requirements, including fre- (b) Estimated performance data for quency and deadlines, concerning per- the project years covered by the appli- formance measures established in the cation. grant award. A sponsor is required to (c) Actual performance data, where report on the actual results that oc- available, for the preceding completed curred when implementing the grant project year. and to regularly measure the project’s performance. § 2553.103 Who develops the performance measures? § 2553.107 What must a sponsor do if it cannot meet its performance meas- (a) An applicant is responsible for de- ures? veloping its own project-specific per- Whenever a sponsor finds it is not on formance measures. track to meet its performance meas- (b) In addition, the Corporation may ures, it must develop a plan to get back establish performance measures that on track or submit a request to the will apply to all Corporation-sponsored Corporation to amend its performance RSVP projects, which sponsors will be measures. The request must include all responsible for meeting. of the following: (a) Why the project is not on track to § 2553.104 What performance measures meet its performance requirements; must be submitted to the Corpora- (b) How the project has been tracking tion and how are these submitted? performance measures; (a) An applicant for Corporation (c) Evidence of corrective steps funds is required to submit at least one taken; of each of the following types of per- (d) Any new proposed performance formance measures as part of their ap- measures; and

815

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00825 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2553.108 45 CFR Ch. XXV (10–1–11 Edition)

(e) A plan to ensure that the project 2554.10 When will the Corporation issue a will meet the new proposed measure(s). complaint? 2554.11 What is contained in a complaint? § 2553.108 When may a sponsor change 2554.12 How will the complaint be served? a project’s performance measures? PROCEDURES FOLLOWING SERVICE OF A Performance measures may be COMPLAINT changed only if the Corporation ap- 2554.13 How does a defendant respond to the proves the sponsor’s request to do so. complaint? 2554.14 What happens if a defendant fails to § 2553.109 What happens if a sponsor file an answer? fails to meet the performance meas- 2554.15 What happens once an answer is ures included in the Notice of Grant filed? Award (NGA)? HEARING PROVISIONS If a sponsor fails to meet a target performance measure established in 2554.16 What kind of hearing is con- the NGA, the Corporation will nego- templated? 2554.17 At the hearing, what rights do the tiate a period of no more than one year parties have? for meeting the performance measure. 2554.18 What is the role of the ALJ? At that point, if the sponsor still fails 2554.19 Can the reviewing official or ALJ be to meet the performance measure, the disqualified? Corporation may take one or more of 2554.20 How are issues brought to the atten- the following actions: tion of the ALJ? (a) Reduce the amount of the grant; 2554.21 How are papers served? 2554.22 How is time computed? (b) Suspend, terminate, or deny re- 2554.23 What happens during a prehearing funding of the grant, in accordance conference? with the provisions of Section 2553.31 of 2554.24 What rights are there to review doc- this part; uments? (c) Take this information into ac- 2554.25 What type of discovery is authorized count in assessing any application and how is it conducted? from the organization for a new grant 2554.26 Are there limits on disclosure of doc- or augmentation of an existing grant uments or discovery? 2554.27 Are witness lists exchanged before under any program administered by the hearing? the Corporation; 2554.28 Can witnesses be subpoenaed? (d) Amend the terms of any Corpora- 2554.29 Who pays the costs for a subpoena? tion grant to the organization; or 2554.30 Are protective orders available? (e) Take other actions that the Cor- 2554.31 Where is the hearing held? poration deems appropriate. 2554.32 How will the hearing be conducted and who has the burden of proof? 2554.33 How is evidence presented at the PART 2554—PROGRAM FRAUD hearing? CIVIL REMEDIES ACT REGULATIONS 2554.34 How is witness testimony presented? 2554.35 Will the hearing proceedings be recorded? Sec. 2554.36 Can a party informally discuss the OVERVIEW AND DEFINITIONS case with the ALJ? 2554.37 Are there sanctions for misconduct? 2554.1 Overview of regulations. 2554.38 Are post-hearing briefs required? 2554.2 What kind of conduct will result in program fraud enforcement? DECISIONS AND APPEALS 2554.3 What is a claim? 2554.39 How is the case decided? 2554.4 What is a statement? 2554.40 How are penalty and assessment 2554.5 What is a false claim or statement? amounts determined? 2554.6 What does the phrase ‘‘know or have 2554.41 Can a party request reconsideration reason to know’’ mean? of the initial decision? 2554.42 When does the initial decision of the PROCEDURES LEADING TO ISSUANCE OF A ALJ become final? COMPLAINT 2554.43 What are the procedures for appeal- 2554.7 Who investigates program fraud? ing the ALJ decision? 2554.8 What happens if program fraud is sus- 2554.44 What happens if an initial decision is pected? appealed? 2554.9 Who is the Corporation’s authority 2554.45 Are there any limitations on the head? right to appeal to the authority head?

816

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00826 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.4

2554.46 How does the authority head dispose any individual, partnership, corpora- of an appeal? tion, association, or other legal entity. 2554.47 What judicial review is available? (b) If more than one person makes a 2554.48 Can the administrative complaint be settled voluntarily? false claim or statement, each person 2554.49 How are civil penalties and assess- is liable for a civil penalty. If more ments collected? than one person makes a false claim 2554.50 What happens to collections? which has induced the Corporation to 2554.51 What if the investigation indicates make payment, an assessment is im- criminal misconduct? posed against each person. The liabil- 2554.52 How does the Corporation protect ity of each such person to pay the as- the rights of defendants? sessment is joint and several, that is, AUTHORITY: Pub. L. 99–509, Secs. 6101–6104, each is responsible for the entire 100 Stat. 1874 (31 U.S.C. 3801–3812); 42 U.S.C. amount. 12651c–12651d. (c) No proof of specific intent to de- SOURCE: 72 FR 61912, Oct. 20, 2006, unless fraud is required to establish liability otherwise noted. under this part. OVERVIEW AND DEFINITIONS § 2554.3 What is a claim? § 2554.1 Overview of regulations. (a) Claim means any request, de- (a) Statutory basis. This part imple- mand, or submission: ments the Program Fraud Civil Rem- (1) Made to the Corporation for prop- edies Act of 1986, 31 U.S.C. 3801–3812 erty, services, or money; (‘‘the Act’’). The Act provides the Cor- (2) Made to a recipient of property, poration and other federal agencies services, or money from the Corpora- with an administrative remedy to im- tion or to a party to a contract with pose civil penalties and assessments the Corporation for property or serv- against persons making false claims ices, or for the payment of money. This and statements. The Act also provides provision applies only when the claim due process protections to all persons is related to property, services or who are subject to administrative pro- money from the Corporation or to a ceedings under this part. contract with the Corporation; or (b) Possible remedies for program fraud. (3) Made to the Corporation which de- In addition to any other penalties that creases an obligation to pay or account may be prescribed by law, a person who for property, services, or money. submits, or causes to be submitted, a (b) A claim can relate to grants, false claim or a false statement to the loans, insurance, or other benefits, and Corporation is subject to a civil pen- includes the Corporation guaranteed alty of not more than $5,000 for each loans made by participating lenders. A statement or claim, regardless of claim is made when it is received by whether property, services, or money is the Corporation, an agent, fiscal inter- actually delivered or paid by the Cor- mediary, or other entity acting for the poration. If the Corporation has made Corporation, or when it is received by any payment, transferred property, or the recipient of property, services, or provided services in reliance on a false money, or the party to a contract. claim, the person submitting it also is subject to an assessment of not more (c) Each voucher, invoice, claim than twice the amount of the false form, or individual request or demand claim. This assessment is in lieu of for property, services, or money con- damages sustained by the Corporation stitutes a separate claim. because of the false claim. § 2554.4 What is a statement? § 2554.2 What kind of conduct will re- A ‘‘statement’’ means any written sult in program fraud enforcement? representation, certification, affirma- (a) Any person who makes, or causes tion, document, record, or accounting to be made, a false, fictitious, or fraud- or bookkeeping entry made with re- ulent claim or written statement to spect to a claim or with respect to a the Corporation is subject to program contract, bid or proposal for a con- fraud enforcement. A ‘‘person’’ means tract, grant, loan or other benefit from

817

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00827 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.5 45 CFR Ch. XXV (10–1–11 Edition)

the Corporation. ‘‘From the Corpora- (a) Has actual knowledge that the tion’’ means that the Corporation pro- claim or statement is false, fictitious, vides some portion of the money or or fraudulent; or property in connection with the con- (b) Acts in deliberate ignorance of tract, bid, grant, loan, or benefit, or is the truth or falsity of the claim or potentially liable to another party for statement; or some portion of the money or property (c) Acts in reckless disregard of the under such contract, bid, grant, loan, truth or falsity of the claim or state- or benefit. A statement is made, pre- ment. sented, or submitted to the Corpora- tion when it is received by the Corpora- PROCEDURES LEADING TO ISSUANCE OF A tion or an agent, fiscal intermediary, COMPLAINT or other entity acting for the Corpora- tion. § 2554.7 Who investigates program fraud? § 2554.5 What is a false claim or state- The Inspector General, or his des- ment? ignee, is the investigating official re- (a) A claim submitted to the Corpora- sponsible for investigating allegations tion is a ‘‘false’’ claim if the person that a false claim or statement has making the claim, or causing the claim been made. In this regard, the Inspec- to be made, knows or has reason to tor General has authority under the know that the claim: Program Fraud Civil Remedies Act and (1) Is false, fictitious or fraudulent; the Inspector General Act of 1978 (5 (2) Includes or is supported by a writ- U.S.C. App. 3), as amended, to issue ad- ten statement which asserts or con- ministrative subpoenas for the produc- tains a material fact which is false, fic- tion of records and documents. titious, or fraudulent; (3) Includes or is supported by a writ- § 2554.8 What happens if program ten statement which is false, fictitious fraud is suspected? or fraudulent because it omits a mate- (a) If the investigating official con- rial fact that the person making the cludes that an action under this Part is statement has a duty to include in the warranted, the investigating official statement; or submits a report containing the find- (4) Is for payment for the provision of ings and conclusions of the investiga- property or services which the person tion to a reviewing official. The re- has not provided as claimed. viewing official is the General Counsel (b) A statement submitted to the or his or her designee. If the reviewing Corporation is a false statement if the official determines that the report pro- person making the statement, or caus- vides adequate evidence that a person ing the statement to be made, knows submitted a false claim or statement, or has reason to know that the state- the reviewing official transmits to the ment: Attorney General written notice of an (1) Asserts a material fact which is intention to refer the matter for adju- false, fictitious, or fraudulent; or dication, with a request for approval of (2) Is false, fictitious, or fraudulent such referral. This notice will include because it omits a material fact that the reviewing official’s statements con- the person making the statement has a cerning: duty to include in the statement. In (1) The reasons for the referral; addition, the statement must contain (2) The claims or statements upon or be accompanied by an express cer- which liability would be based; tification or affirmation of the truth- (3) The evidence that supports liabil- fulness and accuracy of the contents of ity; the statement. (4) An estimate of the amount of money or the value of property, serv- § 2554.6 What does the phrase ‘‘know ices, or other benefits requested or de- or have reason to know’’ mean? manded in the false claim or state- A person knows or has reason to ment; know (that a claim or statement is (5) Any exculpatory or mitigating false) if the person: circumstances that may relate to the

818

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00828 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.12

claims or statements known by the re- Corporation is referred to as the ‘‘de- viewing official or the investigating of- fendant.’’ ficial; and (b) The reviewing official may join in (6) A statement that there is a rea- a single complaint, false claims or sonable prospect of collecting an ap- statements that are unrelated, or that propriate amount of penalties and as- were not submitted simultaneously, re- sessments. gardless of the amount of money or the (b) If at any time, the Attorney Gen- value of property or services demanded eral or his or her designee requests in or requested. writing that this administrative proc- (c) The complaint will state that the ess be stayed, the authority head, as Corporation seeks to impose civil pen- identified in § 2554.9 of this Part, must alties, assessments, or both, against stay the process immediately. The au- each defendant and will include: thority head may order the process re- (1) The allegations of liability sumed only upon receipt of the written against each defendant, including the authorization of the Attorney General. statutory basis for liability, identification of the claims or statements in- § 2554.9 Who is the Corporation’s au- volved, and the reasons liability alleg- thority head? edly arises from such claims or statements; The Corporation’s ‘‘authority head’’ (2) The maximum amount of pen- is the Chief Executive Officer or his or alties and assessments for which each her designee. For purposes of this Part, defendant may be held liable; the Corporation’s Chief Financial Offi- (3) A statement that each defendant cer is designated to act on behalf of the may request a hearing by filing an an- Chief Executive Officer. swer and may be represented by a rep- § 2554.10 When will the Corporation resentative; issue a complaint? (4) Instructions for filing such an answer; The Corporation will issue a com- (5) A warning that failure to file an plaint: answer within 30 days of service of the (a) If the Attorney General (or des- complaint will result in imposition of ignee) approves the referral of the alle- the maximum amount of penalties and gations for adjudication; and assessments. (b) In a case of submission of false (d) The reviewing official must serve claims, if the amount of money or the any complaint on the defendant and, if value of property or services demanded a hearing is requested by the defend- or requested in a false claim, or a ant, provide a copy to the Administra- group of related claims submitted at tive Law Judge (ALJ) assigned to the the same time, does not exceed $150,000. case. ‘‘A group of related claims submitted at the same time’’ includes only those § 2554.12 How will the complaint be claims arising from the same trans- served? action (such as a grant, loan, applica- (a) The complaint must be served on tion, or contract) which are submitted individual defendants directly, a part- together as part of a single request, de- nership through a general partner, and mand, or submission. on corporations or on unincorporated associations through an executive offi- § 2554.11 What is contained in a com- cer or a director, except that service plaint? also may be made on any person au- (a) A complaint is a written state- thorized by appointment or by law to ment giving notice to the person al- receive process for the defendant. leged to be liable under 31 U.S.C. 3802 of (b) The complaint may be served ei- the specific allegations being referred ther by: for adjudication and of the person’s (1) Registered or certified mail (re- right to request a hearing with respect turn receipt requested) addressed to to those allegations. The person al- the defendant at his or her residence, leged to have made false statements or usual dwelling place, principal office or to have submitted false claims to the place of business; or by

819

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00829 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.13 45 CFR Ch. XXV (10–1–11 Edition)

(2) Personal delivery by anyone 18 promptly file with the ALJ the com- years of age or older. plaint, the general answer, and the re- (c) The date of service is the date of quest for an extension of time. personal delivery or, in the case of (e) For good cause shown, the ALJ service by registered or certified mail, may grant the defendant up to 30 addi- the date of postmark. tional days within which to file an an- (d) Proof of service— swer meeting the requirements of para- (1) When service is made by reg- graph (b) of this section. Such answer istered or certified mail, the return must be filed with the ALJ and a copy postal receipt will serve as proof of must be served on the reviewing offi- service. cial. (2) When service is made by personal delivery, an affidavit of the individual § 2554.14 What happens if a defendant serving the complaint, or written ac- fails to file an answer? knowledgment of receipt by the defendant or a representative, will serve as (a) If a defendant does not file any proof of service. answer within 30 days after service of (e) When served with the complaint, the complaint, the reviewing official the defendant also should be served will refer the complaint to the ALJ. with a copy of this Part 2554 and 31 (b) Once the complaint is referred, U.S.C. 3801–3812. the ALJ will promptly serve on the defendant a notice that an initial deci- PROCEDURES FOLLOWING SERVICE OF A sion will be issued. COMPLAINT (c) The ALJ will assume the facts alleged in the complaint to be true and, § 2554.13 How does a defendant re- if such facts establish liability under spond to the complaint? the statute, the ALJ will issue an ini- (a) A defendant may file an answer tial decision imposing the maximum with the reviewing official within 30 amount of penalties and assessments days of service of the complaint. An allowed under the statute. answer will be considered a request for (d) Except as otherwise provided in an oral hearing. this section, when a defendant fails to (b) In the answer, a defendant— file a timely answer, the defendant (1) Must admit or deny each of the al- waives any right to further review of legations of liability contained in the the penalties and assessments imposed complaint (a failure to deny an allega- in the initial decision. tion is considered an admission); (e) The initial decision becomes final (2) Must state any defense on which 30 days after it is issued. the defendant intends to rely; (3) May state any reasons why he or (f) If, at any time before an initial she believes the penalties, assessments, decision becomes final, a defendant or both should be less than the statu- files a motion with the ALJ asking tory maximum; and that the case be reopened and describ- (4) Must state the name, address, and ing the extraordinary circumstances telephone number of the person author- that prevented the defendant from fil- ized by the defendant to act as defend- ing an answer, the initial decision will ant’s representative, if any. be stayed until the ALJ makes a deci- (c) If the defendant is unable to file sion on the motion. The reviewing offi- an answer which meets the require- cial may respond to the motion. ments set forth in paragraph (b) of this (g) If, in his motion to reopen, a de- section, the defendant may file with fendant demonstrates extraordinary the reviewing official a general answer circumstances excusing his failure to denying liability, requesting a hearing, file a timely answer, the ALJ will and requesting an extension of time in withdraw the initial decision, and which to file a complete answer. A gen- grant the defendant an opportunity to eral answer must be filed within 30 answer the complaint. days of service of the complaint. (h) A decision by the ALJ to deny a (d) If the defendant initially files a defendant’s motion to reopen a case is general answer requesting an extension not subject to review or reconsider- of time, the reviewing official must ation.

820

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00830 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.18

(i) The defendant may appeal to the (4) A description of the procedures for authority head the decision denying a the conduct of the hearing; motion to reopen by filing a notice of (5) The name, address, and telephone appeal with the authority head within number of the defendant’s representa- 15 days after the ALJ denies the mo- tive and the representative for the Cor- tion. The timely filing of a notice of poration; and appeal shall stay the initial decision (6) Such other matters as the ALJ until the authority head decides the deems appropriate. issue. (d) The six-year statute of limitation (j) If the defendant files a timely no- may be extended by agreement of the tice of appeal with the authority head, the ALJ shall forward the record of the parties. proceeding to the authority head. HEARING PROVISIONS (k) The authority head shall decide expeditiously whether extraordinary § 2554.16 What kind of hearing is con- circumstances excuse the defendant’s templated? failure to file a timely answer based solely on the record before the ALJ. The hearing is a formal proceeding (l) If the authority head decides that conducted by the ALJ during which a extraordinary circumstances excused defendant will have the opportunity to the defendant’s failure to file a timely cross-examine witnesses, present testi- answer, the authority head shall re- mony, and dispute liability. mand the case to the ALJ with instructions to grant the defendant an oppor- § 2554.17 At the hearing, what rights tunity to answer. do the parties have? (m) If the authority head decides (a) The parties to the hearing shall that the defendant’s failure to file a be the defendant and the Corporation. timely answer is not excused, the au- Pursuant to 31 U.S.C. 3730(c)(5), a pri- thority head shall reinstate the initial vate plaintiff in an action under the decision of the ALJ, which shall be- False Claims Act may participate in come final and binding upon the par- the hearing to the extent authorized by ties 30 days after the authority head the provisions of that Act. issues such decision. (b) Each party has the right to: § 2554.15 What happens once an an- (1) Be represented by a representa- swer is filed? tive; (a) When the reviewing official re- (2) Request a pre-hearing conference ceives an answer, he must file concur- and participate in any conference held rently, the complaint and the answer by the ALJ; with the ALJ, along with a designation (3) Conduct discovery; of a Corporation representative. (4) Agree to stipulations of fact or (b) When the ALJ receives the com- law which will be made a part of the plaint and the answer, the ALJ will record; promptly serve a notice of oral hearing (5) Present evidence relevant to the upon the defendant and the representa- issues at the hearing; tive for the Corporation, in the same (6) Present and cross-examine wit- manner as the complaint, service of nesses; which is described in § 2554.12. The no- (7) Present arguments at the hearing tice of oral hearing must be served as permitted by the ALJ; and within six years of the date on which (8) Submit written briefs and pro- the claim or statement is made. posed findings of fact and conclusions (c) The notice must include: (1) The tentative time, place and na- of law after the hearing, as permitted ture of the hearing; by the ALJ. (2) The legal authority and jurisdic- § 2554.18 What is the role of the ALJ? tion under which the hearing is to be held; An ALJ retained by the Corporation (3) The matters of fact and law to be serves as the presiding officer at all asserted; hearings.

821

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00831 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.19 45 CFR Ch. XXV (10–1–11 Edition)

(a) The ALJ shall conduct a fair and cluding the time and circumstances of impartial hearing, avoid delay, main- the discovery of such facts; tain order, and assure that a record of (2) The motion must be filed prompt- the proceeding is made. ly after discovery of the grounds for (b) The ALJ has the authority to— disqualification, or the objection will (1) Set and change the date, time, be deemed waived; and and place of the hearing upon reason- (3) The party, or representative of able notice to the parties; record, must certify in writing that the (2) Continue or recess the hearing in motion is made in good faith. whole or in part for a reasonable period (c) Once a motion has been filed to of time; disqualify the reviewing official, the (3) Hold conferences to identify or ALJ will halt the proceedings until re- simplify the issues, or to consider solving the matter of disqualification. other matters that may aid in the ex- If the ALJ determines that the review- peditious disposition of the proceeding; ing official is disqualified, the ALJ will (4) Administer oaths and affirma- dismiss the complaint without preju- tions; dice. If the ALJ disqualifies himself or (5) Issue subpoenas requiring the at- herself, the case will be promptly reas- tendance of witnesses and the produc- signed to another ALJ. tion of documents at depositions or at hearings; § 2554.20 How are issues brought to (6) Rule on motions and other proce- the attention of the ALJ? dural matters; (a) All applications to the ALJ for an (7) Regulate the scope and timing of order or ruling shall be by motion. Mo- discovery; tions shall state the relief sought, the (8) Regulate the course of the hearing authority relied upon, and the facts al- and the conduct of representatives and leged, and shall be filed with the ALJ parties; and served on all other parties. (9) Examine witnesses; (b) Except for motions made during a (10) Receive, rule on, exclude, or prehearing conference or at the hear- limit evidence; ing, all motions shall be in writing. (11) Upon motion of a party, take of- The ALJ may require that oral mo- ficial notice of facts; tions be reduced to writing. (12) Upon motion of a party, decide (c) Within 15 days after a written mo- cases, in whole or in part, by summary tion is served, or such other time as judgment where there is no disputed may be fixed by the ALJ, any party issue of material fact; may file a response to such motion. (13) Conduct any conference, argu- (d) The ALJ may not grant a written ment, or hearing on motions in person motion before the time for filing re- or by telephone; and sponses thereto has expired, except (14) Exercise such other authority as upon consent of the parties or fol- is necessary to carry out the respon- lowing a hearing on the motion, but sibilities of the ALJ under this part. may overrule or deny such motion (c) The ALJ does not have the au- without awaiting a response. thority to find Federal statutes or reg- (e) The ALJ shall make a reasonable ulations invalid. effort to dispose of all outstanding motions prior to the beginning of the § 2554.19 Can the reviewing official or hearing. ALJ be disqualified? (a) A reviewing official or an ALJ § 2554.21 How are papers served? may disqualify himself or herself at (a) Form. (1) Documents filed with the any time. ALJ shall include an original and two (b) Upon motion of any party, the re- copies. viewing official or ALJ may be dis- (2) Every pleading and paper filed in qualified as follows: the proceeding shall contain a caption (1) The motion must be supported by setting forth the title of the action, the an affidavit containing specific facts case number assigned by the ALJ, and establishing that personal bias or other a designation of the paper (e.g., motion reason for disqualification exists, in- to quash subpoena).

822

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00832 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.24

(3) Every pleading and paper shall be (b) Upon the motion of any party, the signed by, and shall contain the ad- ALJ shall schedule at least one pre- dress and telephone number of the hearing conference at a reasonable party or the person on whose behalf the time in advance of the hearing. paper was filed, or his or her represent- (c) The ALJ may use prehearing con- ative. ferences to discuss the following: (4) Papers are considered filed when (1) Simplification of the issues; they are mailed. Date of mailing may (2) The necessity or desirability of be established by a certificate from the amendments to the pleadings, includ- party or its representative or by proof ing the need for a more definite state- that the document was sent by cer- ment; tified or registered mail. (3) Stipulations and admissions of (b) Service. A party filing a document fact or as to the contents and authen- with the ALJ shall at the time of fil- ticity of documents; ing, serve a copy of such document on (4) Whether the parties can agree to every other party. Service upon any submission of the case on a stipulated party of any document other than record; those required to be served as pre- (5) Whether a party chooses to waive scribed in § 2554.12 shall be made by de- appearances at an oral hearing and to livering a copy or by placing a copy of submit only documentary evidence the document in the United States (subject to the objection of other par- mail, postage prepaid and addressed, to ties) and written argument; the party’s last known address. When a (6) Limitation of the number of wit- party is represented by a representa- nesses; tive, service shall be made upon such (7) Scheduling dates for the exchange representative in lieu of the actual of witness lists and of proposed exhib- party. its; (c) Proof of service. A certificate of (8) Discovery; the individual serving the document by (9) The time and place for the hear- personal delivery or by mail, setting ing; and forth the manner of service, shall be (10) Such other matters as may tend proof of service. to expedite the fair and just disposition of the proceedings. § 2554.22 How is time computed? (d) The ALJ may issue an order containing all matters agreed upon by the (a) In computing any period of time parties or ordered by the ALJ at a pre- under this part or in an order issued hearing conference. thereunder, the time begins with the day following the act, event, or default, § 2554.24 What rights are there to re- and includes the last day of the period, view documents? unless it is a Saturday, Sunday, or (a) Upon written request to the re- legal holiday observed by the Federal viewing official, the defendant may re- government, in which event it includes view any relevant and material docu- the next business day. ments, transcripts, records, and other (b) When the period of time allowed materials that relate to the allegations is less than seven days, intermediate set out in the complaint and upon Saturdays, Sundays, and legal holidays which the findings and conclusions of observed by the Federal government the investigating official under § 2554.8 shall be excluded from the computa- are based, unless such documents are tion. subject to a privilege under Federal (c) Where a document has been served law. Upon payment of fees for duplica- or issued by placing it in the mail, an tion, the defendant may obtain copies additional five days will be added to of such documents. the time permitted for any response. (b) Upon written request to the reviewing official, the defendant also § 2554.23 What happens during a pre- may obtain a copy of all exculpatory hearing conference? information in the possession of the re- (a) The ALJ may schedule prehearing viewing official or investigating offi- conferences as appropriate. cial relating to the allegations in the

823

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00833 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.25 45 CFR Ch. XXV (10–1–11 Edition)

complaint, even if it is contained in a (iii) Will not unduly delay the pro- document that would otherwise be ceeding; and privileged. If the document would oth- (iv) Does not seek privileged informa- erwise be privileged, only that portion tion. containing exculpatory information (4) The burden of showing that dis- must be disclosed. covery should be allowed is on the (c) The notice sent to the Attorney party seeking discovery. General from the reviewing official as (5) The ALJ may grant discovery sub- described in § 2554.8 is not discoverable ject to a protective order under under any circumstances. § 2554.30. (d) The defendant may file a motion (e) Depositions. (1) If a motion for dep- to compel disclosure of the documents osition is granted, the ALJ shall issue subject to the provisions of this sec- a subpoena for the deponent, which tion. Such a motion may only be filed may require the deponent to produce with the ALJ following the filing of an documents. The subpoena shall specify answer pursuant to § 2554.13. the time and place at which the deposition will be held. § 2554.25 What type of discovery is au- (2) The party seeking to depose shall thorized and how is it conducted? serve the subpoena in the manner pre- (a) The following types of discovery scribed in § 2554.12. are authorized: (3) The deponent may file with the (1) Requests for production of docu- ALJ a motion to quash the subpoena or ments for inspection and copying; a motion for a protective order within (2) Requests for admissions of the au- ten days of service. thenticity of any relevant document or (4) The party seeking to depose shall of the truth of any relevant fact; provide for the taking of a verbatim (3) Written interrogatories; and transcript of the deposition, which it (4) Depositions. shall make available to all other par- (b) For the purpose of this section ties for inspection and copying. and §§ 2554.27 and 2554.28, the term (f) Each party shall bear its own ‘‘documents’’ includes information, costs of discovery. documents, reports, answers, records, accounts, papers, and other data and § 2554.26 Are there limits on disclosure documentary evidence. Nothing con- of documents or discovery? tained herein shall be interpreted to re- (a) Upon written request to the require the creation of a document. viewing official, the defendant may re- (c) Unless mutually agreed to by the view all non-privileged, relevant and parties, discovery is available only as material documents, records and other ordered by the ALJ. The ALJ shall reg- material related to the allegations con- ulate the timing of discovery. tained in the complaint. After paying (d) Motions for discovery. (1) A party the Corporation a reasonable fee for seeking discovery may file a motion duplication, the defendant may obtain with the ALJ. Such a motion shall be a copy of the records described. accompanied by a copy of the requested (b) Upon written request to the re- discovery, or in the case of depositions, viewing official, the defendant may ob- a summary of the scope of the proposed tain a copy of all exculpatory informa- deposition. tion in the possession of the reviewing (2) Within ten days of service, a party official or investigating official relat- may file an opposition to the motion ing to the allegations in the complaint. and/or a motion for protective order as If the document would otherwise be provided in § 2554.30. privileged, only the portion of the doc- (3) The ALJ may grant a motion for ument containing exculpatory infor- discovery only if he or she finds that mation must be disclosed. As used in the discovery sought— this section, the term ‘‘information’’ (i) Is necessary for the expeditious, does not include legal materials such fair, and reasonable consideration of as statutes or case law obtained the issues; through legal research. (ii) Is not unduly costly or burden- (c) The notice sent to the Attorney some; General from the reviewing official is

824

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00834 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.30

not discoverable under any cir- in § 2554.12. A subpoena on a party or cumstances. upon an individual under the control of (d) Other discovery is available only a party may be served by first class as ordered by the ALJ and includes mail. only those methods of discovery al- (f) A party or the individual to whom lowed by § 2554.25. the subpoena is directed may file with the ALJ a motion to quash the sub- § 2554.27 Are witness lists exchanged poena within ten days after service or before the hearing? on or before the time specified in the (a) At least 15 days before the hear- subpoena for compliance if it is less ing or at such other time as ordered by than ten days after service. the ALJ, the parties must exchange witness lists and copies of proposed § 2554.29 Who pays the costs for a sub- hearing exhibits, including copies of poena? any written statements or transcripts The party requesting a subpoena of deposition testimony that the party shall pay the cost of the fees and mile- intends to offer in lieu of live testi- age of any witness subpoenaed in the mony. amounts that would be payable to a (b) If a party objects, the ALJ will witness in a proceeding in United not admit into evidence the testimony States District Court. A check for wit- of any witness whose name does not ap- ness fees and mileage shall accompany pear on the witness list or any exhibit the subpoena when served, except that not provided to an opposing party un- when a subpoena is issued on behalf of less the ALJ finds good cause for the the authority, a check for witness fees omission or concludes that there is no and mileage need not accompany the prejudice to the objecting party. subpoena. (c) Unless a party objects within the time set by the ALJ, documents ex- § 2554.30 Are protective orders avail- changed in accordance with this sec- able? tion are deemed to be authentic for the (a) A party or a prospective witness purpose of admissibility at the hearing. or deponent may file a motion for a § 2554.28 Can witnesses be subpoe- protective order with respect to dis- naed? covery sought by an opposing party or with respect to the hearing, seeking to (a) A party wishing to procure the limit the availability or disclosure of appearance and testimony of any indi- evidence. vidual at the hearing may request that (b) In issuing a protective order, the the ALJ issue a subpoena. ALJ may make any order which justice (b) A subpoena requiring the attend- requires to protect a party or person ance and testimony of an individual from annoyance, embarrassment, op- may also require the individual to pression, or undue burden or expense, produce documents at the hearing. including one or more of the following: (c) A party seeking a subpoena shall file a written request therefore not less (1) That the discovery not be had; than 15 days before the date fixed for (2) That the discovery may be had the hearing unless otherwise allowed only on specified terms and conditions, by the ALJ for good cause shown. Such including a designation of the time or request shall specify any documents to place; be produced and shall designate the (3) That the discovery may be had witnesses and describe the address and only through a method of discovery location thereof with sufficient par- other than that requested; ticularity to permit such witnesses to (4) That certain matters not be in- be found. quired into, or that the scope of dis- (d) The subpoena shall specify the covery be limited to certain matters; time and place at which the witness is (5) That discovery be conducted with to appear and any documents the wit- no one present except persons des- ness is to produce. ignated by the ALJ; (e) The party seeking the subpoena (6) That the contents of discovery or shall serve it in the manner prescribed evidence be sealed;

825

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00835 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.31 45 CFR Ch. XXV (10–1–11 Edition)

(7) That a deposition after being (b) Except as provided in this part, sealed be opened only by order of the the ALJ shall not be bound by the Fed- ALJ; eral Rules of Evidence. However, the (8) That a trade secret or other con- ALJ may apply the Federal Rules of fidential research, development, com- Evidence where appropriate, e.g., to ex- mercial information, or facts per- clude unreliable evidence. taining to any criminal investigation, (c) The ALJ shall exclude irrelevant proceeding, or other administrative in- and immaterial evidence. vestigation not be disclosed or be dis- (d) Although relevant, evidence may closed only in a designated way; or be excluded if its probative value is (9) That the parties simultaneously substantially outweighed by the danger file specified documents or information of unfair prejudice, confusion of the enclosed in sealed envelopes to be issues, or by considerations of undue opened as directed by the ALJ. delay or needless presentation of cumulative evidence. § 2554.31 Where is the hearing held? (e) Although relevant, evidence may The ALJ will hold the hearing in any be excluded if it is privileged under judicial district of the United States: Federal law. (f) Evidence concerning offers of com- (a) In which the defendant resides or promise or settlement shall be inad- transacts business; or missible to the extent provided in Rule (b) In which the claim or statement 408 of the Federal Rules of Evidence. on which liability is based was made, (g) The ALJ shall permit the parties presented or submitted to the Corpora- to introduce rebuttal witnesses and tion; or evidence. (c) As agreed upon by the defendant and the ALJ. § 2554.34 How is witness testimony presented? § 2554.32 How will the hearing be conducted and who has the burden of (a) Except as provided in paragraph proof? (b) of this section, testimony at the hearing shall be given orally by wit- (a) The ALJ conducts a hearing in nesses under oath or affirmation. order to determine whether a defend- (b) At the discretion of the ALJ, tes- ant is liable for a civil penalty, assess- timony may be admitted in the form of ment, or both and, if so, the appro- a written statement or deposition. Any priate amount of the civil penalty and/ such written statement must be pro- or assessment. The hearing will be re- vided to all other parties along with corded and transcribed, and the tran- the last known address of such witness, script of testimony, exhibits admitted in a manner which allows sufficient at the hearing, and all papers and re- time for other parties to subpoena such quests filed in the proceeding con- witness for cross-examination at the stitute the record for a decision by the hearing. Prior written statements of ALJ. witnesses proposed to testify at the (b) The Corporation must prove a de- hearing and deposition transcripts fendant’s liability and any aggravating shall be exchanged as provided in factors by a preponderance of the evi- § 2554.27(a). dence. (c) The ALJ shall exercise reasonable (c) A defendant must prove any af- control over the mode and order of in- firmative defenses and any mitigating terrogating witnesses and presenting factors by a preponderance of the evi- evidence so as to: dence. (1) Make the interrogation and pres- (d) The hearing will be open to the entation effective for the ascertain- public unless otherwise ordered by the ment of the truth; ALJ for good cause shown. (2) Avoid needless consumption of time; and § 2554.33 How is evidence presented at (3) Protect witnesses from harass- the hearing? ment or undue embarrassment. (a) The ALJ shall determine the ad- (d) The ALJ shall permit the parties missibility of evidence. to conduct such cross-examination as

826

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00836 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.37

may be required for a full and true dis- notice and opportunity for all parties closure of the facts. to participate. (e) At the discretion of the ALJ, a This does not prohibit a person or witness may be cross-examined on mat- party from inquiring about the status ters relevant to the proceeding without of a case or asking routine questions regard to the scope of his or her direct concerning administrative functions or examination. To the extent permitted procedures. by the ALJ, cross-examination on matters outside the scope of direct exam- § 2554.37 Are there sanctions for mis- ination shall be conducted in the man- conduct? ner of direct examination and may pro- (a) The ALJ may sanction a person, ceed by leading questions only if the including any party or representative witness is a hostile witness, an adverse for— party, or a witness identified with an (1) Failing to comply with an order, adverse party. rule, or procedure governing the pro- (f) Upon motion of any party, the ceeding; ALJ shall order witnesses excluded so (2) Failing to prosecute or defend an that they cannot hear the testimony of other witnesses. This rule does not au- action; or thorize exclusion of— (3) Engaging in other misconduct (1) A party who is an individual; that interferes with the speedy, or- (2) In the case of a party that is not derly, or fair conduct of the hearing. an individual, an officer or employee of (b) Any such sanction, including but the party appearing for the entity pro not limited to those listed in para- se or designated by the party’s rep- graphs (c), (d), and (e) of this section, resentative; or shall reasonably relate to the severity (3) An individual whose presence is and nature of the failure or mis- shown by a party to be essential to the conduct. presentation of its case, including an (c) When a party fails to comply with individual employed by the Govern- an order, including an order for taking ment engaged in assisting the rep- a deposition, the production of evi- resentative for the Government. dence within the party’s control, or a request for admission, the ALJ may— § 2554.35 Will the hearing proceedings (1) Draw an inference in favor of the be recorded? requesting party with regard to the in- The hearing will be recorded and formation sought; transcribed. Transcripts may be ob- (2) In the case of requests for admis- tained following the hearing from the sion, deem each matter of which an ad- ALJ at a cost not to exceed the actual mission is requested to be admitted; cost of duplication. The transcript of (3) Prohibit the party failing to com- testimony, exhibits and other evidence ply with such order from introducing admitted at the hearing, and all papers evidence concerning, or otherwise rely- and requests filed in the proceeding ing upon testimony relating to the in- constitute the record for the decision formation sought; and by the ALJ and the authority head. The record may be inspected and cop- (4) Strike any part of the pleadings ied (upon payment of a reasonable fee) or other submissions of the party fail- by anyone, unless otherwise ordered by ing to comply with such request. the ALJ pursuant to § 2554.30. (d) If a party fails to prosecute or defend an action under this part com- § 2554.36 Can a party informally dis- menced by service of a notice of hear- cuss the case with the ALJ? ing, the ALJ may dismiss the action or No. Such discussions are forbidden as may issue an initial decision imposing ‘‘ex parte communications’’ with the penalties and assessments. ALJ. No party or person (except em- (e) The ALJ may refuse to consider ployees of the ALJ’s office) shall com- any motion, request, response, brief or municate in any way with the ALJ on other document which is not filed in a any matter at issue in a case, unless on timely fashion.

827

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00837 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.38 45 CFR Ch. XXV (10–1–11 Edition)

§ 2554.38 Are post-hearing briefs re- support the penalties and assessments quired? they impose. Because of the intangible The ALJ may require the parties to costs of fraud, the expense of inves- file post-hearing briefs. In any event, tigating such conduct, and the need to any party may file a post-hearing brief. deter others who might be similarly The ALJ shall fix the time for filing tempted, ordinarily double damages such briefs, not to exceed 60 days from and a significant civil penalty should the date the parties receive the tran- be imposed. script of the hearing or, if applicable, (b) Although not exhaustive, the fol- the stipulated record. Such briefs may lowing factors are among those that be accompanied by proposed findings of may influence that ALJ and the au- fact and conclusions of law. The ALJ thority head in determining the may permit the parties to file reply amount of penalties and assessments to briefs. impose with respect to the misconduct (i.e., the false, fictitious, or fraudulent DECISIONS AND APPEALS claims or statements) charged in the complaint: § 2554.39 How is the case decided? (1) The number of false, fictitious, or (a) The ALJ will issue an initial deci- fraudulent claims or statements; sion based only on the record. It will (2) The time period over which such contain findings of fact, conclusions of claims or statements were made; law, and the amount of any penalties and assessments imposed. (3) The degree of the defendant’s cul- (b) The ALJ will serve the initial de- pability with respect to the mis- cision on all parties within 90 days conduct; after close of the hearing or expiration (4) The amount of money or the value of any allowed time for submission of of the property, services, or benefit post-hearing briefs. If the ALJ fails to falsely claimed; meet this deadline, he or she shall (5) The value of the Government’s ac- promptly notify the parties of the rea- tual loss as a result of the misconduct, son for the delay and set a new dead- including foreseeable consequential line. damages and the costs of investigation; (c) The findings of fact must include (6) The relationship of the amount a finding on each of the following imposed as civil penalties to the issues: amount of the Government’s loss; (1) Whether any one or more of the (7) The potential or actual impact of claims or statements identified in the the misconduct upon national defense, complaint violate this part; and public health or safety, or public con- (2) If the defendant is liable for pen- fidence in the management of Govern- alties or assessments, the appropriate ment programs and operations, includ- amount of any such penalties or assessing particularly the impact on the in- ments, considering any mitigating or tended beneficiaries of such programs; aggravating factors. (8) Whether the defendant has en- (d) The initial decision will include a gaged in a pattern of the same or simi- description of the right of a defendant lar misconduct; found liable for a civil penalty or assessment to file a motion for reconsid- (9) Whether the defendant attempted eration with the ALJ or a notice of ap- to conceal the misconduct; peal with the authority head. (10) The degree to which the defendant has involved others in the mis- § 2554.40 How are penalty and assess- conduct or in concealing it; ment amounts determined? (11) Where the misconduct of employ- (a) In determining an appropriate ees or agents is imputed to the defend- amount of civil penalties and assess- ant, the extent to which the defend- ments, the ALJ and the authority ant’s practices fostered or attempted head, upon appeal, should evaluate any to preclude such misconduct; circumstances that mitigate or aggra- (12) Whether the defendant cooper- vate the violation and should articu- ated in or obstructed an investigation late in their opinions the reasons that of the misconduct;

828

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00838 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2554.43

(13) Whether the defendant assisted consideration or any defendant ad- in identifying and prosecuting other judged to have submitted a false claim wrongdoers; or statement timely appeals to the (14) The complexity of the program Corporation’s authority head, as set or transaction, and the degree of the forth in § 2554.43. defendant’s sophistication with respect (b) If the ALJ disposes of a motion to it, including the extent of the de- for reconsideration by denying it or by fendant’s prior participation in the issuing a revised initial decision, the program or in similar transactions; ALJ’s order on the motion for recon- (15) Whether the defendant has been sideration becomes the final decision of found, in any criminal, civil, or admin- the Corporation 30 days after the order istrative proceeding to have engaged in is issued, unless a defendant adjudged similar misconduct or to have dealt dishonestly with the Government of to have submitted a false claim or the United States or of a State, di- statement timely appeals to the au- rectly or indirectly; and thority head, within 30 days of the (16) The need to deter the defendant ALJ’s order, as set forth in § 2554.43. and others from engaging in the same or similar misconduct. § 2554.43 What are the procedures for (c) Nothing in this section shall be appealing the ALJ decision? construed to limit the ALJ or the au- (a) Any defendant who submits a thority head from considering any timely answer and is found liable for a other factors that in any given case civil penalty or assessment in an ini- may mitigate or aggravate the offense tial decision may appeal the decision. for which penalties and assessments (b) The defendant may file a notice of are imposed. appeal with the authority head within 30 days following issuance of the initial § 2554.41 Can a party request reconsideration of the initial decision? decision, serving a copy of the notice of appeal on all parties and the ALJ. The (a) Any party may file a motion for authority head may extend this dead- reconsideration of the initial decision line for up to an additional 30 days if with the ALJ within 20 days of receipt an extension request is filed within the of the initial decision. If the initial de- initial 30-day period and shows good cision was served by mail, there is a re- cause. buttable presumption that the initial decision was received by the party 5 (c) The defendant’s appeal will not be days from the date of mailing. considered until all timely motions for (b) A motion for reconsideration reconsideration have been resolved. must be accompanied by a supporting (d) If a timely motion for reconsider- brief and must describe specifically ation is denied, a notice of appeal may each allegedly erroneous decision. be filed within 30 days following such (c) Any response to a motion for re- denial or issuance of a revised initial consideration will only be allowed if it decision, whichever applies. is requested by the ALJ. (e) A notice of appeal must be sup- (d) The ALJ will dispose of a motion ported by a written brief specifying for reconsideration by denying it or by why the initial decision should be re- issuing a revised initial decision. versed or modified. (e) If the ALJ issues a revised initial (f) The Corporation’s representative decision upon motion of a party, that may file a brief in opposition to the no- party may not file another motion for tice of appeal within 30 days of receiv- reconsideration. ing the defendant’s notice of appeal § 2554.42 When does the initial deci- and supporting brief. sion of the ALJ become final? (g) If a defendant timely files a no- (a) The initial decision of the ALJ be- tice of appeal, and the time for filing comes the final decision of the Cor- motions for reconsideration has ex- poration, and shall be binding on all pired, the ALJ will forward the record parties 30 days after it is issued, unless of the proceeding to the authority any party timely files a motion for re- head.

829

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00839 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2554.44 45 CFR Ch. XXV (10–1–11 Edition)

§ 2554.44 What happens if an initial de- the appropriate court in a timely man- cision is appealed? ner. (a) An initial decision is stayed automatically pending disposition of a mo- § 2554.48 Can the administrative complaint be settled voluntarily? tion for reconsideration or of an appeal to the authority head. (a) Parties may make offers of com- (b) No administrative stay is avail- promise or settlement at any time. able following a final decision of the Any compromise or settlement must be authority head. in writing. (b) The reviewing official has the ex- § 2554.45 Are there any limitations on clusive authority to compromise or the right to appeal to the authority settle the case from the date on which head? the reviewing official is permitted to (a) A defendant has no right to ap- issue a complaint until the ALJ issues pear personally, or through a rep- an initial decision. resentative, before the authority head. (c) The authority head has exclusive (b) There is no right to appeal any in- authority to compromise or settle the terlocutory ruling. case from the date of the ALJ’s initial (c) The authority head will not con- decision until initiation of any judicial sider any objection or evidence that review or any action to collect the pen- was not raised before the ALJ unless alties and assessments. the defendant demonstrates that the (d) The Attorney General has exclu- failure to object was caused by extraor- sive authority to compromise or settle dinary circumstances. If the appealing the case while any judicial review or defendant demonstrates to the satisfac- any action to recover penalties and as- tion of the authority head that ex- sessments is pending. traordinary circumstances prevented (e) The investigating official may the presentation of evidence at the recommend settlement terms to the re- hearing, and that the additional evi- viewing official, the authority head, or dence is material, the authority head the Attorney General, as appropriate. may remand the matter to the ALJ for The reviewing official may recommend consideration of the additional evi- settlement terms to the authority head dence. or the Attorney General, as appropriate. § 2554.46 How does the authority head dispose of an appeal? § 2554.49 How are civil penalties and (a) The authority head may affirm, assessments collected? reduce, reverse, compromise, remand, Section 3806 and 3808(b) of title 31, or settle any penalty or assessment im- United States Code, authorize actions posed by the ALJ in the initial decision for collection of civil penalties and as- or reconsideration decision. sessments imposed under this Part and (b) The authority head will promptly specify the procedures for such actions. serve each party to the appeal and the ALJ with a copy of his or her decision. § 2554.50 What happens to collections? This decision must contain a statement describing the right of any per- All amounts collected pursuant to son, against whom a penalty or assess- this part shall be deposited as miscella- ment has been made, to seek judicial neous receipts in the Treasury of the review. United States, except as provided in 31 U.S.C. 3806(g). § 2554.47 What judicial review is available? § 2554.51 What if the investigation in- 31 U.S.C. 3805 authorizes judicial re- dicates criminal misconduct? view by the appropriate United States (a) Any investigating official may: District Court of any final Corporation (1) Refer allegations of criminal mis- decision imposing penalties or assess- conduct directly to the Department of ments, and specifies the procedures for Justice for prosecution or for suit such review. To obtain judicial review, under the False Claims Act or other a defendant must file a petition with civil proceeding;

830

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00840 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service Pt. 2555

(2) Defer or postpone a report or re- Subpart B—Coverage ferral to the reviewing official to avoid interference with a criminal investiga- 2555.200 Application. 2555.205 Educational institutions and other tion or prosecution; or entities controlled by religious organiza- (3) Issue subpoenas under other stat- tions. utory authority. 2555.210 Military and merchant marine edu- (b) Nothing in this part limits the re- cational institutions. quirement that the Corporation em- 2555.215 Membership practices of certain or- ployees report suspected violations of ganizations. criminal law to the Corporation’s Of- 2555.220 Admission. fice of Inspector General or to the At- 2555.225 Educational institutions eligible to submit transition plans. torney General. 2555.230 Transition plans. 2555.235 Statutory amendments. § 2554.52 How does the Corporation protect the rights of defendants? Subpart C—Discrimination on the Basis of These procedures separate the func- Sex in Admission and Recruitment Pro- tions of the investigating official, re- hibited viewing official, and the ALJ, each of whom report to a separate organiza- 2555.300 Admission. tional authority in accordance with 31 2555.305 Preference in admission. 2555.310 Recruitment. U.S.C. 3801. Except for purposes of settlement, or as a witness or a represent- Subpart D—Discrimination on the Basis of ative in public proceedings, no inves- Sex in Education Programs or Activities tigating official, reviewing official, or Prohibited Corporation employee or agent who helps investigate, prepare, or present a 2555.400 Education programs or activities. case may (in such case, or a factually 2555.405 Housing. related case) participate in the initial 2555.410 Comparable facilities. 2555.415 Access to course offerings. decision or the review of the initial de- 2555.420 Access to schools operated by cision by the authority head. This sep- LEAs. aration of functions and organization 2555.425 Counseling and use of appraisal and is designed to assure the independence counseling materials. and impartiality of each government 2555.430 Financial assistance. official during every stage of the pro- 2555.435 Employment assistance to stu- ceeding. The representative for the dents. Corporation may be employed in the 2555.440 Health and insurance benefits and offices of either the investigating offi- services. 2555.445 Marital or parental status. cial or the reviewing official. 2555.450 Athletics. 2555.455 Textbooks and curricular material. PART 2555—NONDISCRIMINATION ON THE BASIS OF SEX IN EDU- Subpart E—Discrimination on the Basis of CATION PROGRAMS OR ACTIVI- Sex in Employment in Education Pro- TIES RECEIVING FEDERAL FINAN- grams or Activities Prohibited CIAL ASSISTANCE 2555.500 Employment. 2555.505 Employment criteria. Subpart A—Introduction 2555.510 Recruitment. 2555.515 Compensation. Sec. 2555.520 Job classification and structure. 2555.100 Purpose and effective date. 2555.525 Fringe benefits. 2555.105 Definitions. 2555.530 Marital or parental status. 2555.110 Remedial and affirmative action 2555.535 Effect of state or local law or other and self-evaluation. requirements. 2555.115 Assurance required. 2555.540 Advertising. 2555.120 Transfers of property. 2555.545 Pre-employment inquiries. 2555.125 Effect of other requirements. 2555.550 Sex as a bona fide occupational 2555.130 Effect of employment opportuni- qualification. ties. 2555.135 Designation of responsible em- Subpart F—Procedures ployee and adoption of grievance procedures. 2555.600 Notice of covered programs. 2555.140 Dissemination of policy. 2555.605 Enforcement procedures.

831

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00841 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.100 45 CFR Ch. XXV (10–1–11 Edition)

AUTHORITY: 20 U.S.C. 1681, 1682, 1683, 1685, vocational education, as defined in this 1686, 1687, 1688. section. SOURCE: 65 FR 52865, 52893, Aug. 30, 2000, un- Federal financial assistance means any less otherwise noted. of the following, when authorized or extended under a law administered by Subpart A—Introduction the Federal agency that awards such assistance: § 2555.100 Purpose and effective date. (1) A grant or loan of Federal finan- The purpose of these Title IX regula- cial assistance, including funds made tions is to effectuate Title IX of the available for: Education Amendments of 1972, as (i) The acquisition, construction, ren- amended (except sections 904 and 906 of ovation, restoration, or repair of a those Amendments) (20 U.S.C. 1681, building or facility or any portion 1682, 1683, 1685, 1686, 1687, 1688), which is thereof; and designed to eliminate (with certain ex- (ii) Scholarships, loans, grants, ceptions) discrimination on the basis of wages, or other funds extended to any sex in any education program or activ- entity for payment to or on behalf of ity receiving Federal financial assist- students admitted to that entity, or ance, whether or not such program or extended directly to such students for activity is offered or sponsored by an payment to that entity. educational institution as defined in (2) A grant of Federal real or per- these Title IX regulations. The effec- sonal property or any interest therein, tive date of these Title IX regulations including surplus property, and the shall be September 29, 2000. proceeds of the sale or transfer of such property, if the Federal share of the § 2555.105 Definitions. fair market value of the property is As used in these Title IX regulations, not, upon such sale or transfer, prop- the term: erly accounted for to the Federal Gov- Administratively separate unit means a ernment. school, department, or college of an (3) Provision of the services of Fed- educational institution (other than a eral personnel. local educational agency) admission to (4) Sale or lease of Federal property which is independent of admission to or any interest therein at nominal con- any other component of such institu- sideration, or at consideration reduced tion. for the purpose of assisting the recipi- Admission means selection for part- ent or in recognition of public interest time, full-time, special, associate, to be served thereby, or permission to transfer, exchange, or any other enroll- use Federal property or any interest ment, membership, or matriculation in therein without consideration. or at an education program or activity (5) Any other contract, agreement, or operated by a recipient. arrangement that has as one of its pur- Applicant means one who submits an poses the provision of assistance to any application, request, or plan required education program or activity, except to be approved by an official of the a contract of insurance or guaranty. Federal agency that awards Federal fi- Institution of graduate higher edu- nancial assistance, or by a recipient, as cation means an institution that: a condition to becoming a recipient. (1) Offers academic study beyond the Designated agency official means ‘‘Di- bachelor of arts or bachelor of science rector, Equal Opportunity’’. degree, whether or not leading to a cer- Educational institution means a local tificate of any higher degree in the lib- educational agency (LEA) as defined by eral arts and sciences; 20 U.S.C. 8801(18), a preschool, a private (2) Awards any degree in a profes- elementary or secondary school, or an sional field beyond the first profes- applicant or recipient that is an insti- sional degree (regardless of whether tution of graduate higher education, an the first professional degree in such institution of undergraduate higher field is awarded by an institution of education, an institution of profes- undergraduate higher education or pro- sional education, or an institution of fessional education); or

832

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00842 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.110

(3) Awards no degree and offers no amended at 20 U.S.C. 1681–1688) (except further academic study, but operates sections 904 and 906 thereof), as amend- ordinarily for the purpose of facili- ed by section 3 of Public Law 93–568, 88 tating research by persons who have Stat. 1855, by section 412 of the Edu- received the highest graduate degree in cation Amendments of 1976, Public Law any field of study. 94–482, 90 Stat. 2234, and by Section 3 of Institution of professional education Public Law 100–259, 102 Stat. 28, 28–29 means an institution (except any insti- (20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, tution of undergraduate higher edu- 1688). cation) that offers a program of aca- Title IX regulations means the provi- demic study that leads to a first professions set forth at §§ 2555.100 through sional degree in a field for which there 2555.605. is a national specialized accrediting Transition plan means a plan subject agency recognized by the Secretary of to the approval of the Secretary of Education. Education pursuant to section 901(a)(2) Institution of undergraduate higher of the Education Amendments of 1972, education means: 20 U.S.C. 1681(a)(2), under which an edu- (1) An institution offering at least cational institution operates in mak- two but less than four years of college- level study beyond the high school ing the transition from being an edu- level, leading to a diploma or an asso- cational institution that admits only ciate degree, or wholly or principally students of one sex to being one that creditable toward a baccalaureate de- admits students of both sexes without gree; or discrimination. (2) An institution offering academic [65 FR 52865, 52893, Aug. 30, 2000, as amended study leading to a baccalaureate de- at 65 FR 52894, Aug. 30, 2000] gree; or (3) An agency or body that certifies § 2555.110 Remedial and affirmative credentials or offers degrees, but that action and self-evaluation. may or may not offer academic study. (a) Remedial action. If the designated Institution of vocational education agency official finds that a recipient means a school or institution (except has discriminated against persons on an institution of professional or grad- the basis of sex in an education pro- uate or undergraduate higher edu- gram or activity, such recipient shall cation) that has as its primary purpose take such remedial action as the des- preparation of students to pursue a ignated agency official deems nec- technical, skilled, or semiskilled occu- essary to overcome the effects of such pation or trade, or to pursue study in a discrimination. technical field, whether or not the school or institution offers certificates, (b) Affirmative action. In the absence diplomas, or degrees and whether or of a finding of discrimination on the not it offers full-time study. basis of sex in an education program or Recipient means any State or polit- activity, a recipient may take affirma- ical subdivision thereof, or any instru- tive action consistent with law to over- mentality of a State or political sub- come the effects of conditions that re- division thereof, any public or private sulted in limited participation therein agency, institution, or organization, or by persons of a particular sex. Nothing other entity, or any person, to whom in these Title IX regulations shall be Federal financial assistance is ex- interpreted to alter any affirmative ac- tended directly or through another re- tion obligations that a recipient may cipient and that operates an education have under Executive Order 11246, 3 program or activity that receives such CFR, 1964–1965 Comp., p. 339; as amend- assistance, including any subunit, suc- ed by Executive Order 11375, 3 CFR, cessor, assignee, or transferee thereof. 1966–1970 Comp., p. 684; as amended by Student means a person who has Executive Order 11478, 3 CFR, 1966–1970 gained admission. Comp., p. 803; as amended by Executive Title IX means Title IX of the Edu- Order 12086, 3 CFR, 1978 Comp., p. 230; cation Amendments of 1972, Public Law as amended by Executive Order 12107, 3 92–318, 86 Stat. 235, 373 (codified as CFR, 1978 Comp., p. 264.

833

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00843 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.115 45 CFR Ch. XXV (10–1–11 Edition)

(c) Self-evaluation. Each recipient nation whether occurring prior to or education institution shall, within one subsequent to the submission to the year of September 29, 2000: designated agency official of such as- (1) Evaluate, in terms of the require- surance. ments of these Title IX regulations, its (b) Duration of obligation. (1) In the current policies and practices and the case of Federal financial assistance ex- effects thereof concerning admission of tended to provide real property or students, treatment of students, and structures thereon, such assurance employment of both academic and non- shall obligate the recipient or, in the academic personnel working in connec- case of a subsequent transfer, the tion with the recipient’s education pro- transferee, for the period during which gram or activity; (2) Modify any of these policies and the real property or structures are used practices that do not or may not meet to provide an education program or ac- the requirements of these Title IX reg- tivity. ulations; and (2) In the case of Federal financial as- (3) Take appropriate remedial steps sistance extended to provide personal to eliminate the effects of any dis- property, such assurance shall obligate crimination that resulted or may have the recipient for the period during resulted from adherence to these poli- which it retains ownership or posses- cies and practices. sion of the property. (d) Availability of self-evaluation and (3) In all other cases such assurance related materials. Recipients shall main- shall obligate the recipient for the pe- tain on file for at least three years fol- riod during which Federal financial as- lowing completion of the evaluation re- sistance is extended. quired under paragraph (c) of this sec- (c) Form. (1) The assurances required tion, and shall provide to the des- by paragraph (a) of this section, which ignated agency official upon request, a may be included as part of a document description of any modifications made that addresses other assurances or obli- pursuant to paragraph (c)(2) of this sec- gations, shall include that the appli- tion and of any remedial steps taken cant or recipient will comply with all pursuant to paragraph (c)(3) of this section. applicable Federal statutes relating to nondiscrimination. These include but § 2555.115 Assurance required. are not limited to: Title IX of the Edu- (a) General. Either at the application cation Amendments of 1972, as amend- stage or the award stage, Federal agen- ed (20 U.S.C. 1681–1683, 1685–1688). cies must ensure that applications for (2) The designated agency official Federal financial assistance or awards will specify the extent to which such of Federal financial assistance contain, assurances will be required of the ap- be accompanied by, or be covered by a plicant’s or recipient’s subgrantees, specifically identified assurance from contractors, subcontractors, trans- the applicant or recipient, satisfactory ferees, or successors in interest. to the designated agency official, that each education program or activity op- § 2555.120 Transfers of property. erated by the applicant or recipient If a recipient sells or otherwise trans- and to which these Title IX regulations fers property financed in whole or in apply will be operated in compliance part with Federal financial assistance with these Title IX regulations. An as- to a transferee that operates any edu- surance of compliance with these Title cation program or activity, and the IX regulations shall not be satisfactory Federal share of the fair market value to the designated agency official if the of the property is not upon such sale or applicant or recipient to whom such assurance applies fails to commit itself transfer properly accounted for to the to take whatever remedial action is Federal Government, both the trans- necessary in accordance with feror and the transferee shall be § 2555.110(a) to eliminate existing dis- deemed to be recipients, subject to the crimination on the basis of sex or to provisions of §§ 2555.205 through eliminate the effects of past discrimi- 2555.235(a).

834

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00844 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.140

§ 2555.125 Effect of other require- § 2555.135 Designation of responsible ments. employee and adoption of grievance procedures. (a) Effect of other Federal provisions. The obligations imposed by these Title (a) Designation of responsible employee. IX regulations are independent of, and Each recipient shall designate at least do not alter, obligations not to dis- one employee to coordinate its efforts to comply with and carry out its re- criminate on the basis of sex imposed sponsibilities under these Title IX reg- by Executive Order 11246, 3 CFR, 1964– ulations, including any investigation of 1965 Comp., p. 339; as amended by Exec- any complaint communicated to such utive Order 11375, 3 CFR, 1966–1970 recipient alleging its noncompliance Comp., p. 684; as amended by Executive with these Title IX regulations or al- Order 11478, 3 CFR, 1966–1970 Comp., p. leging any actions that would be pro- 803; as amended by Executive Order hibited by these Title IX regulations. 12087, 3 CFR, 1978 Comp., p. 230; as The recipient shall notify all its stu- amended by Executive Order 12107, 3 dents and employees of the name, of- CFR, 1978 Comp., p. 264; sections 704 fice address, and telephone number of and 855 of the Public Health Service the employee or employees appointed Act (42 U.S.C. 295m, 298b-2); Title VII of pursuant to this paragraph. the Civil Rights Act of 1964 (42 U.S.C. (b) Complaint procedure of recipient. A 2000e et seq.); the Equal Pay Act of 1963 recipient shall adopt and publish griev- (29 U.S.C. 206); and any other Act of ance procedures providing for prompt Congress or Federal regulation. and equitable resolution of student and employee complaints alleging any ac- (b) Effect of State or local law or other tion that would be prohibited by these requirements. The obligation to comply Title IX regulations. with these Title IX regulations is not obviated or alleviated by any State or § 2555.140 Dissemination of policy. local law or other requirement that (a) Notification of policy. (1) Each re- would render any applicant or student cipient shall implement specific and ineligible, or limit the eligibility of continuing steps to notify applicants any applicant or student, on the basis for admission and employment, stu- of sex, to practice any occupation or dents and parents of elementary and profession. secondary school students, employees, (c) Effect of rules or regulations of pri- sources of referral of applicants for ad- vate organizations. The obligation to mission and employment, and all comply with these Title IX regulations unions or professional organizations is not obviated or alleviated by any holding collective bargaining or profes- rule or regulation of any organization, sional agreements with the recipient, club, athletic or other league, or asso- that it does not discriminate on the ciation that would render any appli- basis of sex in the educational pro- cant or student ineligible to partici- grams or activities that it operates, pate or limit the eligibility or partici- and that it is required by Title IX and pation of any applicant or student, on these Title IX regulations not to dis- the basis of sex, in any education pro- criminate in such a manner. Such noti- gram or activity operated by a recipi- fication shall contain such informa- ent and that receives Federal financial tion, and be made in such manner, as the designated agency official finds assistance. necessary to apprise such persons of § 2555.130 Effect of employment oppor- the protections against discrimination tunities. assured them by Title IX and these Title IX regulations, but shall state at The obligation to comply with these least that the requirement not to dis- Title IX regulations is not obviated or criminate in education programs or ac- alleviated because employment oppor- tivities extends to employment there- tunities in any occupation or profes- in, and to admission thereto unless sion are or may be more limited for §§ 2555.300 through 2555.310 do not apply members of one sex than for members to the recipient, and that inquiries of the other sex. concerning the application of Title IX

835

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00845 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.200 45 CFR Ch. XXV (10–1–11 Edition)

and these Title IX regulations to such erated by such recipient that receives recipient may be referred to the em- Federal financial assistance. ployee designated pursuant to § 2555.135, or to the designated agency § 2555.205 Educational institutions and official. other entities controlled by religious organizations. (2) Each recipient shall make the initial notification required by paragraph (a) Exemption. These Title IX regula- (a)(1) of this section within 90 days of tions do not apply to any operation of September 29, 2000 or of the date these an educational institution or other en- Title IX regulations first apply to such tity that is controlled by a religious recipient, whichever comes later, organization to the extent that appli- which notification shall include publication of these Title IX regulations cation in: would not be consistent with the reli- (i) Newspapers and magazines oper- gious tenets of such organization. ated by such recipient or by student, (b) Exemption claims. An educational alumnae, or alumni groups for or in institution or other entity that wishes connection with such recipient; and to claim the exemption set forth in (ii) Memoranda or other written com- paragraph (a) of this section shall do so munications distributed to every stu- by submitting in writing to the des- dent and employee of such recipient. ignated agency official a statement by (b) Publications. (1) Each recipient the highest-ranking official of the in- shall prominently include a statement stitution, identifying the provisions of of the policy described in paragraph (a) these Title IX regulations that conflict of this section in each announcement, with a specific tenet of the religious or- bulletin, catalog, or application form ganization. that it makes available to any person § 2555.210 Military and merchant ma- of a type, described in paragraph (a) of rine educational institutions. this section, or which is otherwise used in connection with the recruitment of These Title IX regulations do not students or employees. apply to an educational institution (2) A recipient shall not use or dis- whose primary purpose is the training tribute a publication of the type de- of individuals for a military service of scribed in paragraph (b)(1) of this sec- the United States or for the merchant tion that suggests, by text or illustra- marine. tion, that such recipient treats appli- § 2555.215 Membership practices of cants, students, or employees dif- certain organizations. ferently on the basis of sex except as such treatment is permitted by these (a) Social fraternities and sororities. Title IX regulations. These Title IX regulations do not apply to the membership practices of social (c) Distribution. Each recipient shall fraternities and sororities that are ex- distribute without discrimination on empt from taxation under section the basis of sex each publication de- 501(a) of the Internal Revenue Code of scribed in paragraph (b)(1) of this sec- 1954, 26 U.S.C. 501(a), the active mem- tion, and shall apprise each of its ad- bership of which consists primarily of mission and employment recruitment students in attendance at institutions representatives of the policy of non- of higher education. discrimination described in paragraph (b) YMCA, YWCA, Girl Scouts, Boy (a) of this section, and shall require Scouts, and Camp Fire Girls. These Title such representatives to adhere to such IX regulations do not apply to the policy. membership practices of the Young Men’s Christian Association (YMCA), Subpart B—Coverage the Young Women’s Christian Associa- tion (YWCA), the Girl Scouts, the Boy § 2555.200 Application. Scouts, and Camp Fire Girls. Except as provided in §§ 2555.205 (c) Voluntary youth service organiza- through 2555.235(a), these Title IX regu- tions. These Title IX regulations do not lations apply to every recipient and to apply to the membership practices of a each education program or activity op- voluntary youth service organization

836

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00846 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.230

that is exempt from taxation under (b) Provision for transition plans. An section 501(a) of the Internal Revenue educational institution to which this Code of 1954, 26 U.S.C. 501(a), and the section applies shall not discriminate membership of which has been tradi- on the basis of sex in admission or re- tionally limited to members of one sex cruitment in violation of §§ 2555.300 and principally to persons of less than through 2555.310. nineteen years of age. § 2555.230 Transition plans. § 2555.220 Admissions. (a) Submission of plans. An institution (a) Admissions to educational insti- to which § 2555.225 applies and that is tutions prior to June 24, 1973, are not composed of more than one administra- covered by these Title IX regulations. tively separate unit may submit either (b) Administratively separate units. For a single transition plan applicable to the purposes only of this section, all such units, or a separate transition §§ 2555.225 and 2555.230, and §§ 2555.300 plan applicable to each such unit. through 2555.310, each administratively (b) Content of plans. In order to be ap- separate unit shall be deemed to be an proved by the Secretary of Education, educational institution. a transition plan shall: (c) Application of §§ 2555.300 through (1) State the name, address, and Fed- 2555.310. Except as provided in para- eral Interagency Committee on Edu- graphs (d) and (e) of this section, cation Code of the educational institu- §§ 2555.300 through 2555.310 apply to tion submitting such plan, the admin- each recipient. A recipient to which istratively separate units to which the §§ 2555.300 through 2555.310 apply shall plan is applicable, and the name, ad- not discriminate on the basis of sex in dress, and telephone number of the per- admission or recruitment in violation son to whom questions concerning the of §§ 2555.300 through 2555.310. plan may be addressed. The person who (d) Educational institutions. Except as submits the plan shall be the chief ad- provided in paragraph (e) of this sec- ministrator or president of the institution as to recipients that are edu- tion, or another individual legally au- cational institutions, §§ 2555.300 thorized to bind the institution to all through 2555.310 apply only to institu- actions set forth in the plan. tions of vocational education, profes- (2) State whether the educational in- sional education, graduate higher edu- stitution or administratively separate cation, and public institutions of un- unit admits students of both sexes as dergraduate higher education. regular students and, if so, when it (e) Public institutions of undergraduate began to do so. higher education. §§ 2555.300 through (3) Identify and describe with respect 2555.310 do not apply to any public in- to the educational institution or ad- stitution of undergraduate higher edu- ministratively separate unit any obsta- cation that traditionally and contin- cles to admitting students without dis- ually from its establishment has had a crimination on the basis of sex. policy of admitting students of only (4) Describe in detail the steps nec- one sex. essary to eliminate as soon as practicable each obstacle so identified and § 2555.225 Educational institutions eli- indicate the schedule for taking these gible to submit transition plans. steps and the individual directly re- (a) Application. This section applies sponsible for their implementation. to each educational institution to (5) Include estimates of the number which §§ 2555.300 through 2555.310 apply of students, by sex, expected to apply that: for, be admitted to, and enter each (1) Admitted students of only one sex class during the period covered by the as regular students as of June 23, 1972; plan. or (c) Nondiscrimination. No policy or (2) Admitted students of only one sex practice of a recipient to which as regular students as of June 23, 1965, § 2555.225 applies shall result in treat- but thereafter admitted, as regular stu- ment of applicants to or students of dents, students of the sex not admitted such recipient in violation of §§ 2555.300 prior to June 23, 1965. through 2555.310 unless such treatment

837

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00847 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.235 45 CFR Ch. XXV (10–1–11 Edition)

is necessitated by an obstacle identi- discrimination provisions of Federal fied in paragraph (b)(3) of this section law. and a schedule for eliminating that ob- (c) Program or activity or program stacle has been provided as required by means: paragraph (b)(4) of this section. (1) All of the operations of any entity (d) Effects of past exclusion. To over- described in paragraphs (c)(1)(i) come the effects of past exclusion of through (iv) of this section, any part of students on the basis of sex, each edu- which is extended Federal financial as- cational institution to which § 2555.225 sistance: applies shall include in its transition (i)(A) A department, agency, special plan, and shall implement, specific purpose district, or other instrumen- steps designed to encourage individuals tality of a State or of a local govern- of the previously excluded sex to apply ment; or for admission to such institution. Such (B) The entity of such State or local steps shall include instituting recruit- government that distributes such as- ment programs that emphasize the in- sistance and each such department or stitution’s commitment to enrolling agency (and each other State or local students of the sex previously ex- government entity) to which the as- cluded. sistance is extended, in the case of assistance to a State or local govern- § 2555.235 Statutory amendments. ment; (a) This section, which applies to all (ii)(A) A college, university, or other provisions of these Title IX regula- postsecondary institution, or a public tions, addresses statutory amendments system of higher education; or to Title IX. (B) A local educational agency (as de- (b) These Title IX regulations shall fined in section 8801 of title 20), system not apply to or preclude: of vocational education, or other (1) Any program or activity of the school system; American Legion undertaken in con- (iii)(A) An entire corporation, part- nection with the organization or oper- nership, or other private organization, ation of any Boys State conference, or an entire sole proprietorship— Boys Nation conference, Girls State (1) If assistance is extended to such conference, or Girls Nation conference; corporation, partnership, private orga- (2) Any program or activity of a sec- nization, or sole proprietorship as a ondary school or educational institu- whole; or tion specifically for: (2) Which is principally engaged in (i) The promotion of any Boys State the business of providing education, conference, Boys Nation conference, health care, housing, social services, or Girls State conference, or Girls Nation parks and recreation; or conference; or (B) The entire plant or other com- (ii) The selection of students to at- parable, geographically separate facil- tend any such conference; ity to which Federal financial assist- (3) Father-son or mother-daughter ance is extended, in the case of any activities at an educational institution other corporation, partnership, private or in an education program or activity, organization, or sole proprietorship; or but if such activities are provided for (iv) Any other entity that is estab- students of one sex, opportunities for lished by two or more of the entities reasonably comparable activities shall described in paragraphs (c)(1)(i), (ii), or be provided to students of the other (iii) of this section. sex; (2)(i) Program or activity does not in- (4) Any scholarship or other financial clude any operation of an entity that is assistance awarded by an institution of controlled by a religious organization higher education to an individual be- if the application of 20 U.S.C. 1681 to cause such individual has received such such operation would not be consistent award in a single-sex pageant based with the religious tenets of such orga- upon a combination of factors related nization. to the individual’s personal appear- (ii) For example, all of the operations ance, poise, and talent. The pageant, of a college, university, or other post- however, must comply with other non- secondary institution, including but

838

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00848 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.300

not limited to traditional educational (i) Give preference to one person over operations, faculty and student hous- another on the basis of sex, by ranking ing, campus shuttle bus service, cam- applicants separately on such basis, or pus restaurants, the bookstore, and otherwise; other commercial activities are part of (ii) Apply numerical limitations upon a ‘‘program or activity’’ subject to the number or proportion of persons of these Title IX regulations if the col- either sex who may be admitted; or lege, university, or other institution (iii) Otherwise treat one individual receives Federal financial assistance. differently from another on the basis of (d)(1) Nothing in these Title IX regu- sex. lations shall be construed to require or (2) A recipient shall not administer prohibit any person, or public or pri- or operate any test or other criterion vate entity, to provide or pay for any for admission that has a disproportion- benefit or service, including the use of ately adverse effect on persons on the facilities, related to an abortion. Med- ical procedures, benefits, services, and basis of sex unless the use of such test the use of facilities, necessary to save or criterion is shown to predict validly the life of a pregnant woman or to ad- success in the education program or ac- dress complications related to an abor- tivity in question and alternative tests tion are not subject to this section. or criteria that do not have such a dis- (2) Nothing in this section shall be proportionately adverse effect are construed to permit a penalty to be im- shown to be unavailable. posed on any person or individual be- (c) Prohibitions relating to marital or cause such person or individual is seek- parental status. In determining whether ing or has received any benefit or serv- a person satisfies any policy or cri- ice related to a legal abortion. Accord- terion for admission, or in making any ingly, subject to paragraph (d)(1) of offer of admission, a recipient to which this section, no person shall be ex- §§ 2555.300 through 2555.310 apply: cluded from participation in, be denied (1) Shall not apply any rule con- the benefits of, or be subjected to dis- cerning the actual or potential paren- crimination under any academic, ex- tal, family, or marital status of a stu- tracurricular, research, occupational dent or applicant that treats persons training, employment, or other edu- differently on the basis of sex; cational program or activity operated (2) Shall not discriminate against or by a recipient that receives Federal fi- exclude any person on the basis of nancial assistance because such indi- pregnancy, childbirth, termination of vidual has sought or received, or is pregnancy, or recovery therefrom, or seeking, a legal abortion, or any ben- establish or follow any rule or practice efit or service related to a legal abor- that so discriminates or excludes; tion. (3) Subject to § 2555.235(d), shall treat disabilities related to pregnancy, child- Subpart C—Discrimination on the birth, termination of pregnancy, or re- Basis of Sex in Admission and covery therefrom in the same manner Recruitment Prohibited and under the same policies as any other temporary disability or physical § 2555.300 Admission. condition; and (a) General. No person shall, on the (4) Shall not make pre-admission in- basis of sex, be denied admission, or be quiry as to the marital status of an ap- subjected to discrimination in admis- plicant for admission, including wheth- sion, by any recipient to which er such applicant is ‘‘Miss’’ or ‘‘Mrs.’’ §§ 2555.300 through 2555.310 apply, except A recipient may make pre-admission as provided in §§ 2555.225 and 2555.230. inquiry as to the sex of an applicant for (b) Specific prohibitions. (1) In deter- admission, but only if such inquiry is mining whether a person satisfies any made equally of such applicants of both policy or criterion for admission, or in sexes and if the results of such inquiry making any offer of admission, a re- are not used in connection with dis- cipient to which §§ 2555.300 through crimination prohibited by these Title 2555.310 apply shall not: IX regulations.

839

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00849 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.305 45 CFR Ch. XXV (10–1–11 Edition)

§ 2555.305 Preference in admission. tity, not a recipient, to which §§ 2555.300 A recipient to which §§ 2555.300 through 2555.310 would not apply if the through 2555.310 apply shall not give entity were a recipient. preference to applicants for admission, (b) Specific prohibitions. Except as pro- on the basis of attendance at any edu- vided in §§ 2555.400 through 2555.455, in cational institution or other school or providing any aid, benefit, or service to entity that admits as students only or a student, a recipient shall not, on the predominantly members of one sex, if basis of sex: the giving of such preference has the (1) Treat one person differently from effect of discriminating on the basis of another in determining whether such sex in violation of §§ 2555.300 through person satisfies any requirement or 2555.310. condition for the provision of such aid, benefit, or service; § 2555.310 Recruitment. (2) Provide different aid, benefits, or services or provide aid, benefits, or (a) Nondiscriminatory recruitment. A services in a different manner; recipient to which §§ 2555.300 through (3) Deny any person any such aid, 2555.310 apply shall not discriminate on benefit, or service; the basis of sex in the recruitment and (4) Subject any person to separate or admission of students. A recipient may different rules of behavior, sanctions, be required to undertake additional re- or other treatment; cruitment efforts for one sex as reme- (5) Apply any rule concerning the dial action pursuant to § 2555.110(a), and domicile or residence of a student or may choose to undertake such efforts applicant, including eligibility for in- as affirmative action pursuant to state fees and tuition; § 2555.110(b). (6) Aid or perpetuate discrimination (b) Recruitment at certain institutions. against any person by providing sig- A recipient to which §§ 2555.300 through nificant assistance to any agency, or- 2555.310 apply shall not recruit pri- ganization, or person that discrimi- marily or exclusively at educational nates on the basis of sex in providing institutions, schools, or entities that any aid, benefit, or service to students admit as students only or predomi- or employees; nantly members of one sex, if such ac- (7) Otherwise limit any person in the tions have the effect of discriminating enjoyment of any right, privilege, ad- on the basis of sex in violation of vantage, or opportunity. §§ 2555.300 through 2555.310. (c) Assistance administered by a recipient educational institution to study at a Subpart D—Discrimination on the foreign institution. A recipient edu- Basis of Sex in Education Pro- cational institution may administer or grams or Activities Prohibited assist in the administration of scholarships, fellowships, or other awards es- § 2555.400 Education programs or ac- tablished by foreign or domestic wills, tivities. trusts, or similar legal instruments, or (a) General. Except as provided else- by acts of foreign governments and re- where in these Title IX regulations, no stricted to members of one sex, that person shall, on the basis of sex, be ex- are designed to provide opportunities cluded from participation in, be denied to study abroad, and that are awarded the benefits of, or be subjected to dis- to students who are already matricu- crimination under any academic, ex- lating at or who are graduates of the tracurricular, research, occupational recipient institution; Provided, that a training, or other education program recipient educational institution that or activity operated by a recipient that administers or assists in the adminis- receives Federal financial assistance. tration of such scholarships, fellow- Sections 2555.400 through 2555.455 do ships, or other awards that are re- not apply to actions of a recipient in stricted to members of one sex pro- connection with admission of its stu- vides, or otherwise makes available, dents to an education program or ac- reasonable opportunities for similar tivity of a recipient to which §§ 2555.300 studies for members of the other sex. through 2555.310 do not apply, or an en- Such opportunities may be derived

840

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00850 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.415

from either domestic or foreign nization, or person in making housing sources. available to any of its students, shall (d) Aids, benefits or services not pro- take such reasonable action as may be vided by recipient. (1) This paragraph (d) necessary to assure itself that such applies to any recipient that requires housing as is provided to students of participation by any applicant, stu- one sex, when compared to that pro- dent, or employee in any education vided to students of the other sex, is as program or activity not operated whol- a whole: ly by such recipient, or that facilitates, (A) Proportionate in quantity; and permits, or considers such participa- (B) Comparable in quality and cost to tion as part of or equivalent to an edu- the student. cation program or activity operated by (ii) A recipient may render such as- such recipient, including participation sistance to any agency, organization, in educational consortia and coopera- or person that provides all or part of tive employment and student-teaching such housing to students of only one assignments. sex. (2) Such recipient: (i) Shall develop and implement a § 2555.410 Comparable facilities. procedure designed to assure itself that A recipient may provide separate toi- the operator or sponsor of such other let, locker room, and shower facilities education program or activity takes no on the basis of sex, but such facilities action affecting any applicant, student, provided for students of one sex shall or employee of such recipient that be comparable to such facilities pro- these Title IX regulations would provided for students of the other sex. hibit such recipient from taking; and (ii) Shall not facilitate, require, per- § 2555.415 Access to course offerings. mit, or consider such participation if (a) A recipient shall not provide any such action occurs. course or otherwise carry out any of its education program or activity sepa- § 2555.405 Housing. rately on the basis of sex, or require or (a) Generally. A recipient shall not, refuse participation therein by any of on the basis of sex, apply different its students on such basis, including rules or regulations, impose different health, physical education, industrial, fees or requirements, or offer different business, vocational, technical, home services or benefits related to housing, economics, music, and adult education except as provided in this section (in- courses. cluding housing provided only to mar- (b)(1) With respect to classes and ac- ried students). tivities in physical education at the el- (b) Housing provided by recipient. (1) A ementary school level, the recipient recipient may provide separate housing shall comply fully with this section as on the basis of sex. expeditiously as possible but in no (2) Housing provided by a recipient to event later than one year from Sep- students of one sex, when compared to tember 29, 2000. With respect to phys- that provided to students of the other ical education classes and activities at sex, shall be as a whole: the secondary and post-secondary lev- (i) Proportionate in quantity to the els, the recipient shall comply fully number of students of that sex apply- with this section as expeditiously as ing for such housing; and possible but in no event later than (ii) Comparable in quality and cost to three years from September 29, 2000. the student. (2) This section does not prohibit (c) Other housing. (1) A recipient shall grouping of students in physical edu- not, on the basis of sex, administer dif- cation classes and activities by ability ferent policies or practices concerning as assessed by objective standards of occupancy by its students of housing individual performance developed and other than that provided by such re- applied without regard to sex. cipient. (3) This section does not prohibit sep- (2)(i) A recipient which, through so- aration of students by sex within phys- licitation, listing, approval of housing, ical education classes or activities dur- or otherwise, assists any agency, orga- ing participation in wrestling, boxing,

841

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00851 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.420 45 CFR Ch. XXV (10–1–11 Edition)

rugby, ice hockey, football, basketball, procedures for ensuring that such ma- and other sports the purpose or major terials do not discriminate on the basis activity of which involves bodily con- of sex. Where the use of a counseling tact. test or other instrument results in a (4) Where use of a single standard of substantially disproportionate number measuring skill or progress in a phys- of members of one sex in any particular ical education class has an adverse ef- course of study or classification, the fect on members of one sex, the recipi- recipient shall take such action as is ent shall use appropriate standards necessary to assure itself that such dis- that do not have such effect. proportion is not the result of discrimi- (5) Portions of classes in elementary nation in the instrument or its applica- and secondary schools, or portions of tion. education programs or activities, that (c) Disproportion in classes. Where a deal exclusively with human sexuality recipient finds that a particular class may be conducted in separate sessions contains a substantially dispropor- for boys and girls. tionate number of individuals of one (6) Recipients may make require- sex, the recipient shall take such ac- ments based on vocal range or quality tion as is necessary to assure itself that may result in a chorus or choruses that such disproportion is not the re- of one or predominantly one sex. sult of discrimination on the basis of sex in counseling or appraisal mate- § 2555.420 Access to schools operated rials or by counselors. by LEAs. A recipient that is a local edu- § 2555.430 Financial assistance. cational agency shall not, on the basis (a) General. Except as provided in of sex, exclude any person from admis- paragraphs (b) and (c) of this section, sion to: in providing financial assistance to any (a) Any institution of vocational edu- of its students, a recipient shall not: cation operated by such recipient; or (1) On the basis of sex, provide dif- (b) Any other school or educational ferent amounts or types of such assist- unit operated by such recipient, unless ance, limit eligibility for such assist- such recipient otherwise makes avail- ance that is of any particular type or able to such person, pursuant to the source, apply different criteria, or oth- same policies and criteria of admission, erwise discriminate; courses, services, and facilities com- (2) Through solicitation, listing, ap- parable to each course, service, and fa- proval, provision of facilities, or other cility offered in or through such services, assist any foundation, trust, schools. agency, organization, or person that provides assistance to any of such re- § 2555.425 Counseling and use of ap- cipient’s students in a manner that dis- praisal and counseling materials. criminates on the basis of sex; or (a) Counseling. A recipient shall not (3) Apply any rule or assist in appli- discriminate against any person on the cation of any rule concerning eligi- basis of sex in the counseling or guid- bility for such assistance that treats ance of students or applicants for ad- persons of one sex differently from permission. sons of the other sex with regard to (b) Use of appraisal and counseling ma- marital or parental status. terials. A recipient that uses testing or (b) Financial aid established by certain other materials for appraising or coun- legal instruments. (1) A recipient may seling students shall not use different administer or assist in the administra- materials for students on the basis of tion of scholarships, fellowships, or their sex or use materials that permit other forms of financial assistance es- or require different treatment of stu- tablished pursuant to domestic or for- dents on such basis unless such dif- eign wills, trusts, bequests, or similar ferent materials cover the same occu- legal instruments or by acts of a for- pations and interest areas and the use eign government that require that of such different materials is shown to awards be made to members of a par- be essential to eliminate sex bias. Re- ticular sex specified therein; Provided, cipients shall develop and use internal that the overall effect of the award of

842

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00852 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.445

such sex-restricted scholarships, fel- that violates §§ 2555.500 through lowships, and other forms of financial 2555.550. assistance does not discriminate on the basis of sex. § 2555.440 Health and insurance bene- (2) To ensure nondiscriminatory fits and services. awards of assistance as required in Subject to § 2555.235(d), in providing a paragraph (b)(1) of this section, recipi- medical, hospital, accident, or life in- ents shall develop and use procedures surance benefit, service, policy, or plan under which: to any of its students, a recipient shall (i) Students are selected for award of not discriminate on the basis of sex, or financial assistance on the basis of provide such benefit, service, policy, or nondiscriminatory criteria and not on plan in a manner that would violate the basis of availability of funds re- §§ 2555.500 through 2555.550 if it were stricted to members of a particular sex; provided to employees of the recipient. (ii) An appropriate sex-restricted This section shall not prohibit a recipi- scholarship, fellowship, or other form ent from providing any benefit or serv- of financial assistance is allocated to ice that may be used by a different pro- each student selected under paragraph portion of students of one sex than of (b)(2)(i) of this section; and the other, including family planning (iii) No student is denied the award services. However, any recipient that for which he or she was selected under provides full coverage health service paragraph (b)(2)(i) of this section be- shall provide gynecological care. cause of the absence of a scholarship, fellowship, or other form of financial § 2555.445 Marital or parental status. assistance designated for a member of (a) Status generally. A recipient shall that student’s sex. not apply any rule concerning a stu- (c) Athletic scholarships. (1) To the ex- dent’s actual or potential parental, tent that a recipient awards athletic family, or marital status that treats scholarships or grants-in-aid, it must students differently on the basis of sex. provide reasonable opportunities for (b) Pregnancy and related conditions. such awards for members of each sex in (1) A recipient shall not discriminate proportion to the number of students against any student, or exclude any of each sex participating in inter- student from its education program or scholastic or intercollegiate athletics. activity, including any class or extra- (2) A recipient may provide separate curricular activity, on the basis of such athletic scholarships or grants-in-aid student’s pregnancy, childbirth, false for members of each sex as part of sep- pregnancy, termination of pregnancy, arate athletic teams for members of or recovery therefrom, unless the stu- each sex to the extent consistent with dent requests voluntarily to partici- this paragraph (c) and § 2555.450. pate in a separate portion of the program or activity of the recipient. § 2555.435 Employment assistance to (2) A recipient may require such a students. student to obtain the certification of a (a) Assistance by recipient in making physician that the student is phys- available outside employment. A recipi- ically and emotionally able to continue ent that assists any agency, organiza- participation as long as such a certifi- tion, or person in making employment cation is required of all students for available to any of its students: other physical or emotional conditions (1) Shall assure itself that such em- requiring the attention of a physician. ployment is made available without (3) A recipient that operates a por- discrimination on the basis of sex; and tion of its education program or activ- (2) Shall not render such services to ity separately for pregnant students, any agency, organization, or person admittance to which is completely vol- that discriminates on the basis of sex untary on the part of the student as in its employment practices. provided in paragraph (b)(1) of this sec- (b) Employment of students by recipi- tion, shall ensure that the separate ents. A recipient that employs any of portion is comparable to that offered its students shall not do so in a manner to non-pregnant students.

843

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00853 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.450 45 CFR Ch. XXV (10–1–11 Edition)

(4) Subject to § 2555.235(d), a recipient pose or major activity of which in- shall treat pregnancy, childbirth, false volves bodily contact. pregnancy, termination of pregnancy (c) Equal opportunity. (1) A recipient and recovery therefrom in the same that operates or sponsors inter- manner and under the same policies as scholastic, intercollegiate, club, or in- any other temporary disability with re- tramural athletics shall provide equal spect to any medical or hospital ben- athletic opportunity for members of efit, service, plan, or policy that such both sexes. In determining whether recipient administers, operates, offers, equal opportunities are available, the or participates in with respect to stu- designated agency official will con- dents admitted to the recipient’s edu- sider, among other factors: cational program or activity. (i) Whether the selection of sports (5) In the case of a recipient that does and levels of competition effectively not maintain a leave policy for its stu- accommodate the interests and abili- dents, or in the case of a student who ties of members of both sexes; does not otherwise qualify for leave (ii) The provision of equipment and under such a policy, a recipient shall supplies; treat pregnancy, childbirth, false preg- (iii) Scheduling of games and prac- nancy, termination of pregnancy, and tice time; recovery therefrom as a justification (iv) Travel and per diem allowance; for a leave of absence for as long a pe- (v) Opportunity to receive coaching riod of time as is deemed medically and academic tutoring; necessary by the student’s physician, at the conclusion of which the student (vi) Assignment and compensation of shall be reinstated to the status that coaches and tutors; she held when the leave began. (vii) Provision of locker rooms, practice, and competitive facilities; § 2555.450 Athletics. (viii) Provision of medical and train- (a) General. No person shall, on the ing facilities and services; basis of sex, be excluded from partici- (ix) Provision of housing and dining pation in, be denied the benefits of, be facilities and services; treated differently from another per- (x) Publicity. son, or otherwise be discriminated (2) For purposes of paragraph (c)(1) of against in any interscholastic, inter- this section, unequal aggregate expend- collegiate, club, or intramural ath- itures for members of each sex or un- letics offered by a recipient, and no re- equal expenditures for male and female cipient shall provide any such athletics teams if a recipient operates or spon- separately on such basis. sors separate teams will not constitute (b) Separate teams. Notwithstanding noncompliance with this section, but the requirements of paragraph (a) of the designated agency official may this section, a recipient may operate or consider the failure to provide nec- sponsor separate teams for members of essary funds for teams for one sex in each sex where selection for such assessing equality of opportunity for teams is based upon competitive skill members of each sex. or the activity involved is a contact (d) Adjustment period. A recipient that sport. However, where a recipient oper- operates or sponsors interscholastic, ates or sponsors a team in a particular intercollegiate, club, or intramural sport for members of one sex but oper- athletics at the elementary school ates or sponsors no such team for mem- level shall comply fully with this sec- bers of the other sex, and athletic option as expeditiously as possible but in portunities for members of that sex no event later than one year from Sep- have previously been limited, members tember 29, 2000. A recipient that oper- of the excluded sex must be allowed to ates or sponsors interscholastic, inter- try out for the team offered unless the collegiate, club, or intramural ath- sport involved is a contact sport. For letics at the secondary or postsec- the purposes of these Title IX regula- ondary school level shall comply fully tions, contact sports include boxing, with this section as expeditiously as wrestling, rugby, ice hockey, football, possible but in no event later than basketball, and other sports the pur- three years from September 29, 2000.

844

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00854 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.510

§ 2555.455 Textbooks and curricular (2) Hiring, upgrading, promotion, material. consideration for and award of tenure, Nothing in these Title IX regulations demotion, transfer, layoff, termi- shall be interpreted as requiring or pro- nation, application of nepotism policies, right of return from layoff, and hibiting or abridging in any way the rehiring; use of particular textbooks or cur- (3) Rates of pay or any other form of ricular materials. compensation, and changes in compensation; Subpart E—Discrimination on the (4) Job assignments, classifications, Basis of Sex in Employment in and structure, including position de- Education Programs or Activi- scriptions, lines of progression, and se- ties Prohibited niority lists; (5) The terms of any collective bar- § 2555.500 Employment. gaining agreement; (6) Granting and return from leaves (a) General. (1) No person shall, on of absence, leave for pregnancy, child- the basis of sex, be excluded from par- birth, false pregnancy, termination of ticipation in, be denied the benefits of, pregnancy, leave for persons of either or be subjected to discrimination in sex to care for children or dependents, employment, or recruitment, consider- or any other leave; ation, or selection therefor, whether (7) Fringe benefits available by vir- full-time or part-time, under any edu- tue of employment, whether or not ad- cation program or activity operated by ministered by the recipient; a recipient that receives Federal finan- (8) Selection and financial support cial assistance. for training, including apprenticeship, (2) A recipient shall make all em- professional meetings, conferences, and ployment decisions in any education other related activities, selection for program or activity operated by such tuition assistance, selection for recipient in a nondiscriminatory man- sabbaticals and leaves of absence to ner and shall not limit, segregate, or pursue training; classify applicants or employees in any (9) Employer-sponsored activities, in- way that could adversely affect any ap- cluding social or recreational pro- plicant’s or employee’s employment grams; and opportunities or status because of sex. (10) Any other term, condition, or (3) A recipient shall not enter into privilege of employment. any contractual or other relationship which directly or indirectly has the ef- § 2555.505 Employment criteria. fect of subjecting employees or stu- A recipient shall not administer or dents to discrimination prohibited by operate any test or other criterion for §§ 2555.500 through 2555.550, including any employment opportunity that has relationships with employment and re- a disproportionately adverse effect on ferral agencies, with labor unions, and persons on the basis of sex unless: with organizations providing or admin- (a) Use of such test or other criterion istering fringe benefits to employees of is shown to predict validly successful the recipient. performance in the position in ques- (4) A recipient shall not grant pref- tion; and erences to applicants for employment (b) Alternative tests or criteria for on the basis of attendance at any edu- such purpose, which do not have such cational institution or entity that ad- disproportionately adverse effect, are mits as students only or predominantly shown to be unavailable. members of one sex, if the giving of such preferences has the effect of dis- § 2555.510 Recruitment. criminating on the basis of sex in vio- (a) Nondiscriminatory recruitment and lation of these Title IX regulations. hiring. A recipient shall not discrimi- (b) Application. The provisions of nate on the basis of sex in the recruit- §§ 2555.500 through 2555.550 apply to: ment and hiring of employees. Where a (1) Recruitment, advertising, and the recipient has been found to be pres- process of application for employment; ently discriminating on the basis of sex

845

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00855 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR § 2555.515 45 CFR Ch. XXV (10–1–11 Edition)

in the recruitment or hiring of employ- of employment not subject to the pro- ees, or has been found to have so dis- vision of § 2555.515. criminated in the past, the recipient (b) Prohibitions. A recipient shall not: shall recruit members of the sex so dis- (1) Discriminate on the basis of sex criminated against so as to overcome with regard to making fringe benefits the effects of such past or present dis- available to employees or make fringe crimination. benefits available to spouses, families, (b) Recruitment patterns. A recipient or dependents of employees differently shall not recruit primarily or exclu- upon the basis of the employee’s sex; sively at entities that furnish as appli- (2) Administer, operate, offer, or par- cants only or predominantly members ticipate in a fringe benefit plan that of one sex if such actions have the ef- does not provide for equal periodic ben- fect of discriminating on the basis of efits for members of each sex and for sex in violation of §§ 2555.500 through equal contributions to the plan by such 2555.550. recipient for members of each sex; or (3) Administer, operate, offer, or par- § 2555.515 Compensation. ticipate in a pension or retirement plan A recipient shall not make or enforce that establishes different optional or any policy or practice that, on the compulsory retirement ages based on basis of sex: sex or that otherwise discriminates in (a) Makes distinctions in rates of pay benefits on the basis of sex. or other compensation; § 2555.530 Marital or parental status. (b) Results in the payment of wages to employees of one sex at a rate less (a) General. A recipient shall not than that paid to employees of the op- apply any policy or take any employ- posite sex for equal work on jobs the ment action: performance of which requires equal (1) Concerning the potential marital, skill, effort, and responsibility, and parental, or family status of an em- that are performed under similar work- ployee or applicant for employment ing conditions. that treats persons differently on the basis of sex; or § 2555.520 Job classification and struc- (2) Which is based upon whether an ture. employee or applicant for employment is the head of household or principal A recipient shall not: wage earner in such employee’s or ap- (a) Classify a job as being for males plicant’s family unit. or for females; (b) Pregnancy. A recipient shall not (b) Maintain or establish separate discriminate against or exclude from lines of progression, seniority lists, ca- employment any employee or applicant reer ladders, or tenure systems based for employment on the basis of preg- on sex; or nancy, childbirth, false pregnancy, ter- (c) Maintain or establish separate mination of pregnancy, or recovery lines of progression, seniority systems, therefrom. career ladders, or tenure systems for (c) Pregnancy as a temporary disability. similar jobs, position descriptions, or Subject to § 2555.235(d), a recipient shall job requirements that classify persons treat pregnancy, childbirth, false preg- on the basis of sex, unless sex is a bona nancy, termination of pregnancy, re- fide occupational qualification for the covery therefrom, and any temporary positions in question as set forth in disability resulting therefrom as any § 2555.550. other temporary disability for all job- related purposes, including commence- § 2555.525 Fringe benefits. ment, duration, and extensions of (a) ‘‘Fringe benefits’’ defined. For pur- leave, payment of disability income, poses of these Title IX regulations, accrual of seniority and any other ben- fringe benefits means: Any medical, hos- efit or service, and reinstatement, and pital, accident, life insurance, or re- under any fringe benefit offered to em- tirement benefit, service, policy or ployees by virtue of employment. plan, any profit-sharing or bonus plan, (d) Pregnancy leave. In the case of a leave, and any other benefit or service recipient that does not maintain a

846

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00856 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR Corporation for National and Community Service § 2555.605

leave policy for its employees, or in the applicants of both sexes and if the re- case of an employee with insufficient sults of such inquiry are not used in leave or accrued employment time to connection with discrimination prohib- qualify for leave under such a policy, a ited by these Title IX regulations. recipient shall treat pregnancy, childbirth, false pregnancy, termination of § 2555.550 Sex as a bona fide occupa- pregnancy, and recovery therefrom as a tional qualification. justification for a leave of absence A recipient may take action other- without pay for a reasonable period of wise prohibited by §§ 2555.500 through time, at the conclusion of which the 2555.550 provided it is shown that sex is employee shall be reinstated to the sta- a bona fide occupational qualification tus that she held when the leave began for that action, such that consider- or to a comparable position, without ation of sex with regard to such action decrease in rate of compensation or is essential to successful operation of loss of promotional opportunities, or the employment function concerned. A any other right or privilege of employ- recipient shall not take action pursu- ment. ant to this section that is based upon alleged comparative employment char- § 2555.535 Effect of state or local law acteristics or stereotyped characteriza- or other requirements. tions of one or the other sex, or upon (a) Prohibitory requirements. The obli- preference based on sex of the recipi- gation to comply with §§ 2555.500 ent, employees, students, or other per- through 2555.550 is not obviated or alle- sons, but nothing contained in this sec- viated by the existence of any State or tion shall prevent a recipient from con- local law or other requirement that im- sidering an employee’s sex in relation poses prohibitions or limits upon em- to employment in a locker room or toi- ployment of members of one sex that let facility used only by members of are not imposed upon members of the one sex. other sex. (b) Benefits. A recipient that provides Subpart F—Procedures any compensation, service, or benefit to members of one sex pursuant to a § 2555.600 Notice of covered programs. State or local law or other requirement shall provide the same compensation, Within 60 days of September 29, 2000, service, or benefit to members of the each Federal agency that awards Fed- other sex. eral financial assistance shall publish in the FEDERAL REGISTER a notice of § 2555.540 Advertising. the programs covered by these Title IX regulations. Each such Federal agency A recipient shall not in any adver- shall periodically republish the notice tising related to employment indicate of covered programs to reflect changes preference, limitation, specification, or in covered programs. Copies of this no- discrimination based on sex unless sex tice also shall be made available upon is a bona fide occupational qualifica- request to the Federal agency’s office tion for the particular job in question. that enforces Title IX. § 2555.545 Pre-employment inquiries. § 2555.605 Enforcement procedures. (a) Marital status. A recipient shall The investigative, compliance, and not make pre-employment inquiry as enforcement procedural provisions of to the marital status of an applicant Title VI of the Civil Rights Act of 1964 for employment, including whether (42 U.S.C. 2000d) (‘‘Title VI’’) are hereby such applicant is ‘‘Miss’’ or ‘‘Mrs.’’ adopted and applied to these Title IX (b) Sex. A recipient may make pre- employment inquiry as to the sex of an regulations. These procedures may be applicant for employment, but only if found at 45 CFR 1203.6 through 1203.12. such inquiry is made equally of such [65 FR 52894, Aug. 30, 2000]

847

VerDate Mar<15>2010 08:32 Jan 03, 2012 Jkt 223192 PO 00000 Frm 00857 Fmt 8010 Sfmt 8010 Y:\SGML\223192.XXX 223192 wreier-aviles on DSK3TPTVN1PROD with CFR