designee shall notify the grantee in writing of:

(1) Preliminary findings;

(2) Recommendations for achieving voluntary compliance, where appropriate; and

(3) The opportunity to engage in voluntary compliance negotiations, where appropriate.

The Associate Director for Human Rights or his/her designee shall notify the Assistant Attorney General for Civil Rights at the same time he/she notifies the grantee of any matter where recommendations for achieving voluntary compliance are made.

(g) If within 50 days of CSA's recommendations for achieving voluntary compliance the recommendations have not been agreed to, or voluntary compliance has not been secured, or the preliminary findings have not been shown to be false the Associate Director for Human Rights shall make a formal written determination of noncompliance. At the same time the grantee is notified of this determination, it shall be forwarded to the Assistant Attorney General for Civil Rights. This determination shall be made no later than 14 days after the conclusion of the 50-day negotiation period.

(h) Where the Associate Director for Human Rights makes a formal determination of noncompliance, the grantee and the Assistant Attorney General shall be immediately advised in writing of the determination and of the fact that the grantee has an additional 10 days in which to come into voluntary compliance. If voluntary compliance has not been achieved within the 10 days, the Associate Director shall institute proceedings under Subpart E. (i) All agreements to come into voluntary compliance shall be in writing, shall set forth the specific steps the grantee has agreed to take, and shall be signed by the Associate Director for Human Rights or his/her designee and an official of the grantee with authority to legally bind the grantee.

§ 1010.30-3 Complaint investigations.

(a) Local Complaint Procedures. (1) Submission of an Equal Opportunity Complaint. Any person who believes he/she has encountered discrimina

tion because of race, color, creed, sex, national origin, age, political affiliation, beliefs or handicap may first file a complaint with the Equal Opportunity Officer (EOO) of the grantee not more than 180 calendar days after the act complained of occurred. A copy of the complaint shall be immediately mailed to the Associate Director for Human Rights or his/her designee by the Equal Opportunity Officer.

(2) Resolution and Decision by the Grantee. (i) The EOO shall make every effort to resolve the complaint informally. The EOO shall, if requested by the complainant, assist in discussions with any party to the complaint and may take other steps which may assist in the resolution of the complaint.

(ii) The aggrieved person has the right to be accompanied, represented and advised by a representative or attorney of his/her choice. If the aggrieved person or the representative is an employee of the agency, he/she shall be given a reasonable amount of working time to prepare and present his/her request for a resolution of the complaint. These procedures shall be included in the grantee's personnel policies and must be approved by the CSA Office of Human Rights.

(iii) The EOO shall have 21 days to attempt to resolve the complaint before CSA will begin processing the complaint, if it has been filed with CSA or CSA otherwise assumes jurisdiction.

(iv) The EOO shall be given access within the agency to any information necessary for resolving the complaint.

(v) The EOO shall inform the complainant of the right to file a formal complaint with CSA and any other appropriate Federal, state and local civil rights agencies.

(vi) Nothing in this subpart should be construed to mean that a complainant cannot file a complaint directly with CSA at any time.

(3) Reports on Grantee Efforts at Resolution. (i) When the EOO has completed attempts to resolve the complaint, a report shall be prepared, setting out a summary of the complaint, the preliminary inquiry and the disposition of the complaint, indicating the basis for that disposition.

(ii) Copies of the report shall be given to the grantee's board, the complainant and to the Office of Human Rights. A report shall be forwarded within 21 days of the filing of a complaint, regardless of the disposition of the complaint.

(b) CSA Complaint Procedures. (1) Filing of Complaint with CSA. (i) If the result of the procedures outlined in § 1010.30-3(a) is unsatisfactory to the complainant, a formal complaint may be filed within 10 calendar days of receipt of the report of the EOO.

(ii) A complainant may file a complaint directly with CSA. However no complaint will be investigated if not received by CSA or the local EOO within 180 days of the date of the alleged discrimination unless the time for filing is extended, for good cause, by the Associate Director for Human Rights or his/her designee. If a complaint is filed with the local EOO and CSA, CSA shall not begin processing the complaint until the 21 days set forth in § 1010.30-3(a)(2)(iii) have expired.

(2) Within 25 days of receipt of a complaint, the Associate Director for Human Rights or his/her designee shall:

(i) Ascertain whether CSA has jurisdiction over the complaint;

(ii) If it is determined that CSA has jurisdiction, notify the grantee involved of the complaint and initiate the investigation; and

(iii) If it is determined that CSA does not have jurisdiction, notify the complainant of that fact in writing.

(3) The grantee shall be notified that it may at any time prior to CSA's findings make a documentary submission responding to, rebutting, or denying allegations raised in the course of the complaint investigation.

(4) Within 180 days of the initiation of a complaint investigation, the Associate Director for Human Rights or his/her designee shall notify the grantee in writing of:

(i) the preliminary findings;

(ii) recommendations for achieving voluntary compliance, where appropriate; and

(iii) the opportunity to engage in voluntary compliance negotiations, where appropriate.

The Associate Director for Human Rights or his/her designee shall notify the Assistant Attorney General for Civil Rights at the same time he/she notifies the grantee of any matter where recommendations for achieving voluntary compliance are made.

(5) If within 50 days of CSA's recommendation for achieving voluntary compliance, the recommendations have not been agreed to, voluntary compliance has not been secured, or the preliminary findings have not been shown to be false the Associate Director for Human Rights shall make a formal written determination of noncompliance. At the same time the grantee is notified of this determination, it shall be forwarded to the Assistant Attorney General for Civil Rights. This determination shall be made no later than 14 days after the conclusion of the 50-day negotiation period.

(6) If the Associate Director for Human Rights makes a formal determination of noncompliance, the grantee and the Assistant Attorney General for Civil Rights shall be advised in writing that the determination has been made and the grantee has an additional 10 days in which to come into voluntary compliance. If voluntary compliance has not been secured within the 10-day period, the Director shall institute proceedings under Subpart E.

(7) All agreements to come into voluntary compliance shall be in writing, shall set forth the specific steps the grantee has agreed to take, and shall be signed by the Associate Director for Human Rights and an official of the grantee with authority to legally bind the grantee.

§ 1010.30-4 Back-pay award.

CSA grant funds may lawfully be used to cover back-pay awards resulting from judgments or settlements arising from complaints of discrimination. However, CSA reserves the right to determine whether to allow the program cost on a case-by-case basis after the expenditure of grant funds so as not to influence the decision of the grantee to settle. Consideration will be given to such factors as the grantee's

conduct subject to the claim of discrimination, and whether the complainant's salary is funded by CSA.

§ 1010.30-5 Complaints filed with State and local commissions or the Equal Employment Opportunity Commission. When a complaint is filed with CSA and with the Equal Employment Opportunity Commission or another Federal, state or local agency, the Associate Director for Human Rights or his/her designee shall communicate with the other agency and shall arrange to handle the complaint so as to avoid duplication and to secure an effective resolution of the complaint. It shall be the general practice of CSA to investigate a Title VI complaint, unless there appears to be a compelling reason to do otherwise. In cases where Title VI complaints are not investigated, the compelling reason shall be set forth in writing to the complainant and Assistant Attorney General for Civil Rights.

No grantee shall intimidate, retaliate, threaten, coerce, or discriminate against any individual for the purpose of interfering with any right or privilege secured by section 624 of the Economic Opportunity Act of 1964, as amended, 42 U.S.C. 2971c; Title VI of the Civil Rights Act of 1964, as amended, or this part, or because he/she has made a complaint, testified, assisted, or participated in any manner in any investigation, proceeding or hearing under this part. The identity of complainants shall be kept confidential except to the extent necessary to carry out the purposes of this part, including the conduct of any preliminary inquiries thereunder.

§ 1010.30-7 Adjustment of time limits.

The time limits listed in § 1010.30-3 (b)(2) through (b)(4) of this section shall be appropriately adjusted where CSA requests another Federal agency to act on the complaint. CSA will monitor the progress of the matter through liaison with the other agency. Where the request to act does not result in timely resolution of the matter, CSA shall institute appropriate actions as required by this subpart.

(a) If there appears to be a failure or threatened failure to comply with this part, and if the noncompliance or threatened noncompliance cannot be corrected by informal means, compliance with this part may be effected by the suspension or termination of or refusal to grant or to continue Federal financial assistance or by any other means authorized by law. Such other means may include, but are not limited to, a referral to the Department of Justice with a recommendation that appropriate proceedings be brought to enforce any rights of the United States under any applicable law of the United States or any assurance or other contractual undertaking.

(b) Noncompliance with Subpart C. If an applicant fails or refuses to furnish an assurance required under Subpart C or otherwise fails or refuses to comply with a requirement imposed by or pursuant to that subpart, Federal financial assistance may be refused in accordance with the procedures of this subpart.

(c) The Agency may defer action on applications for assistance to the grantee or applicant during the pendency of enforcement proceedings under this part.

§ 1010.40-2 Termination of or refusal to grant or to continue financial assist

ance.

(a) No order suspending, terminating or refusing to grant or continue Federal financial assistance for failure to comply with this part shall become effective until:

(1) The Associate Director for Human Rights or his/her designee has advised the applicant or grantee of its failure to comply and has determined that compliance cannot be secured by voluntary means;

(2) There has been an express finding on the record, after opportunity for hearing, of a failure by the applicant or grantee to comply with a requirement imposed by or pursuant to this subpart;

(3) The action has been reviewed by the Director of CSA pursuant to § 1010.40-4 or he/she has had the opportunity to review and did not do so; and

(4) The expiration of 30 days after the Director of CSA has filed with the committee of the House and the committee of the Senate having legislative jurisdiction over the program involved a full written report of the circumstances and the grounds for such action. Any action to suspend or terminate or to refuse to grant or to continue Federal financial assistance shall be limited to the particular political entity, or part thereof, or other applicant or grantee as to whom such finding has been made and shall be limited in its effect to the particular program, or part thereof, in which such noncompliance has been found.

(b) Voluntary compliance will be determined as not being available, if a voluntary compliance agreement is not arrived at during the period for voluntary compliance negotiations set forth by this part.

(c) Section 1010.40-2(a)(4) does not apply to actions concerning discrimination on the basis of creed, political affiliation or belief or to employment discrimination on the basis of race or national origin not covered by Title VI, § 1010.10-3(a), and § 1010.10-3(b).

§ 1010.40-3 Hearings.

(a) Opportunity for Hearing. Whenever an opportunity for a hearing is required by this part, reasonable notice of such hearing shall be given by registered or certified mail, return receipt requested. This notice shall advise the applicant or grantee of the action proposed to be taken, the specific provision under which the proposed action against it is to be taken, and either (1) fix a date less than 20 days after the date of such notice within which the applicant or grantee may request of the responsible CSA official that the matter be scheduled for hearing, or (2) advise the applicant or grantee that the matter in question has been set for hearing at a stated place and time. The complainant, if any, shall be advised of the time and place of the hearing. An applicant or grantee may waive a hearing and

submit written information and argument for the record. The failure of an applicant or grantee to request a hearing under this section or to appear at a hearing for which a date has been set shall be deemed to be a waiver of the right to a hearing under section 602 of Title VI and this subpart and consent to the making of a decision on the basis of such information as is available.

(b) Time and Place of Hearing. Hearings shall be at a time and place in Washington, D.C. fixed by the responsible CSA official or his/her designee unless he/she determines for cause that another location should be selected. Hearings shall be held before a hearing officer who shall be referred to hereinafter as the hearing examin

er.

(c) Right to Counsel. In all proceedings under this section, the applicant or grantee and CSA shall have the right to be represented by counsel.

(d) Procedures, Evidence and Record. (1) The hearing, decision, and any review thereof shall be conducted in conformity with 5 U.S.C. 554-557 (Sections 5-8 of the Administrative Procedure Act) and in accordance with such rules of procedure as are proper, relating to the conduct of the hearing, giving of notices subsequent to those provided for in § 1010.40-2 of this part, taking of testimony, exhibits, arguments and briefs, requests for findings, and other related matters. Both CSA and the applicant or grantee shall be entitled to introduce all relevant evidence on the issues as stated in the notice for hearing or as determined by the hearing examiner.

(2) Technical rules of evidence shall not apply to hearings conducted pursuant to this section, but rules or principles designed to assure production of the most credible evidence available and to subject testimony to test by cross-examination shall be applied where reasonably necessary by the hearing examiner. The hearing examiner may exclude irrelevant, immaterial, or unduly repetitious evidence. All documents and other evidence offered or taken for the record shall be open to examination by the parties and opportunity shall be given to refute facts and arguments advanced on either

side of the issues. A transcript shall be made of the oral evidence unless dispensed with by stipulation. All decisions shall be based upon the hearing record and written findings shall be made.

(e) Consolidated or Joint Hearings. In cases in which the same or related facts are asserted to constitute noncompliance with this part and the regulations of one or more other Federal departments or agencies issued under Title VI, the Director may, by agreement with such other departments or agencies, provide for consolidated or joint hearings, and for the application to such hearings of rules of procedure consistent with this part. Final decisions in such cases, insofar as this subpart is concerned, shall be made in accordance with § 1010.40-4.

§ 1010.40-4 Decisions and notices.

(a) Initial Decision. The hearing examiner shall make an initial decision. A copy of such initial decision shall be mailed to the applicant or grantee. The applicant or grantee may within 30 days of the mailing of the initial decision file with the Director of CSA its exceptions to the initial decision. In the absence of exceptions, the Director of CSA may, on his/her own motion, within 45 days after the initial decision, serve on the applicant or grantee a notice that he/she will review the decision. Upon the filing of such exceptions or of such notice of review, the Director of CSA shall review the initial decision and issue his/her own decision thereon. In the absence of either exceptions or notice of review, the initial decision shall constitute the final decision of CSA.

a

(b) Final Decision. Whenever the Director of CSA makes the initial decision pursuant to paragraph (c) of this section, or whenever the hearing examiner issues an initial decision, the applicant or grantee and complainant shall be given a copy of the decision. A copy of the final decision of the Director of CSA shall be given to the applicant or grantee and the complainant.

(c) Waived Hearings. Whenever a hearing is waived pursuant to Section 1010.40-3(a), a decision shall be made by the Director of CSA on the record

and a copy of such decision shall be given to the applicant or grantee and to the complainant.

(d) Rulings Required. The decision of a hearing examiner shall set forth each of his/her findings, conclusions, or exceptions presented, and shall identify the requirement or requirements imposed by or pursuant to this part, Title VI, or Section 624 of the Economic Opportunity Act of 1964, as amended, that the applicant or grantee has failed to comply with.

(e) Content of Orders. The final decision may provide for suspension or termination or, or refusal to grant or continue Federal financial assistance, in whole or in part, under the program involved, and may contain such terms, conditions, and other provisions as are consistent with and will effectuate the purpose of Title VI and this part, including provisions designed to assure that no Federal financial assistance will thereafter be extended under such program to the applicant or grantee determined to have failed to comply with this part, unless and until it corrects its noncompliance and satisfies the Associate Director for Human Rights that it will fully comply with this part.

(f) Post-Termination Proceedings. (1) An applicant or grantee adversely affected by an order issued under paragraph (e) of this section shall be restored to full eligibility to receive Federal financial assistance if it satisfies the terms and conditions of that order for such eligibility or if it brings itself into compliance with this part and provides reasonable that it will fully comply with this part.

assurance

(2) Any applicant or grantee adversely affected by an order issued pursuant to paragraph (e) of this section may at any time request the Associate Director for Human Rights to restore fully its eligibility to receive Federal financial assistance. Any such request shall be supported by information showing that the applicant or grantee has met the requirements of paragraph (f)(1) of this section. If the Associate Director for Human Rights determines that those requirements have been satisfied, he/she shall restore such eligibility.