(10) It shall be provided that, where the Federal financial assistance is to provide: (i) Real property or structures thereon, the assurances shall be in effect for the period during which the real property or structures are used for a purpose for which the Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits; (ii) personal property, the assurances shall be in effect for as long as the recipient retains ownership or possession of the property; and (iii) any other type or form of assistance, the assurances shall be in effect for the duration of the period during which Federal financial assistance is extended to the program.

§ 8.6 Applicability of the regulations to Department programs.

The following examples illustrate the applicability of this part to programs which receive or may receive Federal financial assistance administered by the Department. The fact that a particular program is not listed does not indicate that it is not covered by this part. The discrimination referred to is that described in § 8.4 against persons on the ground of race, color, or national origin.

(a) Assistance programs which support highway construction and related projects. In programs receiving Federal financial assistance for highway construction, acquisition of right-of-way and related projects, discrimination is prohibited by recipients in the selection and retention of contractors, by contractors in the selection and retention of first-tier subcontractors, and by firsttier subcontractors in the selection and retention of second-tier subcontractors, who participate in any such projects. Such contractors and subcontractors inIclude, without limitation, those whose services are retained by contract for or incidental to planning, research, highway safety, engineering, acquisition of right-of-way, property management, and for any other commitments by recipients under which they are eligible for Federal-aid reimbursement, in addition to those contractors and subcontractors through the second-tier engaged in the actual highway construction work and those who supply the equipment and materials therefor. In addition, there shall be no discrimination against the traveling public and business users of the federally assisted highways in their ac

cess to and use of the facilities and services provided for public accommodations (such as eating, sleeping, rest, recreation, and vehicle servicing) constructed on, over, or under the space of the right-ofway of such highways in which the recipient has any interest, including a reversionary one.

(b) Assistance programs to support area redevelopment projects. (1) In loan and loan participation programs under which individuals and business entities receive Federal financial assistance to purchase or develop land, facilities, machinery or equipment for industrial or commercial usage, discrimination by recipients is prohibited (i) in the letting of contracts or other arrangements for the designing, engineering, acquisition, construction, rehabilitation, conversion, enlargement, installation. occupancy, use, maintenance, leasing, subleasing, sales, or other utilization or disposition of the property or facilities purchased or financed in whole or in part with the aid of the Federal financial assistance; (ii) in the acquisition of goods or services, or the production, preparation, manufacture, marketing, transportation, or distribution of goods or services in connection with the project or its operations; (iii) in the on-site operation of the project or facility; (iv) in all services or accommodations offered to the public in connection therewith; and (v) in their employment practices (as defined in § 8.4(c)). For these programs, a recipient by definition also includes the borrowers and all identifiable business entities which are intended to lease, use or otherwise operate the project or facility assisted by the loan.

(2) In loan or grant programs under which States, their subdivisions, or private or public organizations receive Federal financial assistance to finance the purchase or development of land for public facility usage, or the construction, rehabilitation, alteration, expansion or improvement of public facilities, discrimination by recipients is prohibited as set forth in subparagraph (1) of this paragraph, but includes the employment practices (as defined in § 8.4 (c)) only of any business entity which is intended to use or otherwise receive the substantial and direct benefit of the public facility. For these programs, a recipient by definition also includes the borrower or grantee and all identifiable business entities intended to be substantial and

direct beneficiaries of a public facility assisted or provided by the loan or grant. (3) In programs providing any form of technical assistance deemed useful to alleviate or prevent conditions of excessive unemployment or underemployment in areas of any State, discrimination by recipients of such technical assistance is prohibited as described in subparagraph (1) of this paragraph in connection with any land, buildings, machinery, equipment, improvements, facilities, goods, services, or the other operations of any identifiable business entities which are intended to be the direct and substantial beneficiaries of such technical assistance. Such technical assistance includes the results of studies evaluating the needs of and developing potentials for economic growth of areas of any State. Further, any party which under the program disseminates any form of technical assistance shall not discriminate in such dissemination. For this program, a recipient of technical assistance by definition also includes the sponsoring applicant and all identifiable business entities intended to be substantial and direct beneficiaries of the technical assistance applied for.

(c) Assistance programs to support the training of students. A current example of such programs is the assistance received by State maritime academies or colleges, by contract, of facilities (vessels), related equipment, and funds to train merchant marine officers. In this and other student training programs, discrimination which is prohibited by recipients includes discrimination in the selection of persons to be trained and in their treatment by the recipients in any aspect of the educational process and discipline during their training, or in the availability or use of any academic, housing, eating, recreational, or other facilities and services, or in financial assistance to students furnished or controlled by the recipients or incidental to the program. In any case where selection of trainees is made from a predetermined group, such as the students in an institution or area, the group must be selected without discrimination.

(d) Assistance program to support mobile trade fairs. In programs under which operators of mobile trade fairs, using U.S. flag vessels and aircraft and designed to exhibit and sell U.S. products abroad, receive technical and financial assistance, discrimination by recipients

is prohibited in the selection or retention of any actual or potential exhibitors, or in access to or use of the services or accommodations by, or otherwise with respect to treatment of, exhibitors or their owners, officers, employees, or agents.

(e) Assistance programs to support business entities eligible for trade adjustment assistance. In programs under which eligible business entities receive any measure or kind of technical, financial or tax adjustment assistance because of or in connection with the impact of United States international trade upon such business, discrimination is prohibited by recipients in their employment practices, as defined in § 8.4 (c).

(f) Assistance programs to support research and distribute its results. In programs under which individuals, educational or other institutions, or business entities receive Federal financial assistance in order to encourage or foster research activities as such, or to obtain thereby technical or other information, products, or services which are to be made available to others, but where such program does not constitute Government procurement of property or services, discrimination is prohibited by recipients with respect to the choice, retention or treatment of any person, including the provision of services or financial aid to them, participating in the research activities, and, further, with respect to their dissemination to any person of the results of the research, whether in the form of information, products, services, or otherwise. If a research grant is made to an educational institution under which it is expected that students or others will participate in the research as a part of their experience or training, on a compensated or uncompensated basis, there shall be no discrimination in admission of students to, or in their treatment by, that part of the school from which such students are drawn or in the selection otherwise of trainees. The recipient educational institutions will be required to give the assurances provided in § 8.5 (b) (9).

(g) Assistance programs to aid in the operations of vessels engaged in United States foreign commerce. In programs receiving Federal financial assistance in the form of operating differential subsidies to operators of American-flag vessels used to furnish shipping services in the foreign commerce of the United States, discrimination is prohibited by

recipients in soliciting, accepting or serving in any way passengers or shippers of cargo entitled to protection in the United States under the Act. For these programs, a recipient by definition includes the operators of such vessels.

Subpart B-General Compliance § 8.7 Cooperation, compliance reports and reviews and access to records. (a) Cooperation and assistance. Each responsible Department official shall to the fullest extent practicable seek the cooperation of recipients in obtaining compliance with this part and shall provide assistance and guidance to recipients to help them comply voluntarily with this part.

(b) Compliance reports. Each recipient shall keep such records and submit to the responsible Department official timely, complete and accurate compliance reports at such times and in such form and containing such information as the responsible Department official may determine to be necessary to enable him to ascertain whether the recipient has complied or is complying with this part. In the case of any program under which a primary recipient extends Federal financial assistance to any other recipient, or under which a recipient is obligated to obtain or to cooperate in obtaining the compliance of other parties subject to this part, such other recipients or other parties shall also submit such compliance reports to the primary recipient or recipient as may be necessary to enable them to carry out their obligations under this part.

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(c) Access to sources of information. Each recipient or other party subject to this part shall permit access by the responsible Department official or designee during normal business hours to such of its books, records, accounts, and other sources of information, and its facilities, as may be pertinent to ascertain compliance with this part. Where any information required of a recipient is in the exclusive possession of another who fails or refuses to furnish this information, the recipient shall so certify in its report and shall set forth what efforts it has made to obtain the information.

(d) Information to beneficiaries and participants. Each recipient shall make available to participants, beneficiaries, and other interested persons such information regarding the provisions of this

part and its applicability to the program under which the recipient receives Federal financial assistance, and make such information available to them in such manner, as the responsible Department official finds necessary to apprise such persons of the protections against discrimination assured them by the Act and this part.

(e) Compliance review. The responsible Department official or his designee shall from time to time review the practices of recipients to determine whether they are complying with this part. § 8.8 Complaints.

(a) Filing complaints. Any person who believes himself or any specific class of persons to be subjected to discrimination prohibited by this part may by himself or by a representative file with the responsible Department official a written complaint. A complaint shall be filed not later than 90 days from the date of the alleged discrimination, unless the time for filing is extended by the responsible Department official.

§ 8.9 Intimidatory or retaliatory acts prohibited.

(a) No recipient or other party shall intimidate, threaten, coerce, or discriminate against, any person for the purpose of interfering with any right or privilege secured by section 601 of the Act or this part, or because the person has made a complaint, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this part.

(b) 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 investigation, hearing, or judicial or other proceeding arising thereunder. § 8.10 Investigations.

(a) Making the investigation. The responsible Department official or his designee will make a prompt investigation whenever a compliance review, report, complaint, or any other information indicates a possible failure to comply with this part. The investigation shall include, where appropriate, a review of the pertinent practices and policies of the recipient or other party subject to this part, the circumstances under which the possible noncompliance with this part occurred, and other factors relevant to a determination as to whether there

has been a failure to comply with this part.

(b) Resolution of matters. (1) If an investigation pursuant to paragraph (a) of this section indicates a failure to comply with this part, the responsible Department official will so inform the recipient and the matter will be resolved by informal means whenever possible. If it has been determined that the matter cannot be resolved by informal means, action will be taken as provided for in § 8.11.

(2) If an investigation does not warrant action pursuant to subparagraph (1) of this paragraph, the responsible Department official will so inform the recipient and the complainant, if any, in writing.

(a) General. 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, (1) a reference to the Department of Justice with a recommendation that appropriate proceedings be brought to enforce any rights of the United States under any law of the United States (including other titles of the Act), or any assurance or other contractual undertaking, and (2) any applicable proceeding under State or local law.

(b) Noncompliance with § 8.5. If an applicant fails or refuses to furnish an assurance required under § 8.5 or otherwise fails or refuses to comply with a requirement imposed by or pursuant to that section, Federal financial assistance may be refused in accordance with the procedures of paragraph (c) of this section. The Department shall not be required to provide assistance in such a case during the pendency of the administrative proceedings under said paragraph except that the Department shall continue assistance during the pendency of such proceedings where such assistance is due and payable pursuant to an application or contract therefor approved prior to the effective date of this part.

(c) Termination of or refusal to grant or to continue Federal financial assistance. No order suspending, terminating or refusing to grant or continue Federal financial assistance shall become effective until (1) the responsible Department official has advised the applicant or recipient of his 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 recipient to comply with a requirement imposed by or pursuant to this part, (3) the action has been approved by the Secretary pursuant to § 8.13(e), and (4) the expiration of 30 days after the Secretary 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 recipient as to whom such a finding has been made and shall be limited in its effect to the particular program, or part thereof, in which such noncompliance has been so found.

(d) Other means authorized by law. No action to effect compliance by any other means authorized by law shall be taken until (1) the responsible Department official has determined that compliance cannot be secured by voluntary means, (2) the action has been approved by the Secretary, (3) the recipient or other party has been notified of its failure to comply and of the action to be taken to effect compliance, and (4) the expiration of at least 10 days from the mailing of such notice to the recipient or other party. During this period of at least 10 days additional efforts shall be made to persuade the recipient or other party to comply with this part and to take such corrective action as may be appropriate.

taken, the specific provision under which the proposed action against it is to be taken, and the matters of fact or law asserted as the basis for this action, and either (1) fix a date not less than 20 days after the date or such notice within which the applicant or recipient may request of the responsible Department official that the matter be scheduled for hearing, or (2) advise the applicant or recipient that the matter in question has been set down for hearing at a stated place and time. The time and place so fixed shall be reasonable and shall be subject to change for cause. The complainant, if any, shall be advised of the time and place of the hearing. An applicant or recipient may waive a hearing and submit written information and argument for the record. The failure of an applicant or recipient to request a hearing under this paragraph of 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 the Act and § 8.11 (c) 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 held at the offices of the Department in Washington, D.C., at a time fixed by the responsible Department official or hearing officer unless he determines that the convenience of the applicant or recipient or of the Department requires that another place be selected. Hearings shall be held before the responsible Department official, or at his discretion, before a hearing officer.

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

(d) Procedures, evidence, and record. (1) The hearing, decision, and any administrative review thereof shall be conducted in conformity with sections 5-8 of the Administrative Procedure Act, and in accordance with such rules of procedure as are proper (and not inconsistent with this section) relating to the conduct of the hearing, giving of notices subsequent to those provided for in paragraph (a) of this section, taking of testimony, exhibits, arguments and briefs, requests for findings, and other related matters. Both the Department and the applicant or recipient shall be entitled to introduce all relevant evidence on the issues as stated in the notice for hearing

or as determined by the officer conducting the hearing at the outset of or during the hearing.

(2) Technical rules of evidence shall not apply to hearings conducted pursuant to this part, but rules or principles designed to assure production of the most credible evidence available and to subject testimony to test by crossexamination shall be applied where reasonably necessary by the officer conducting the hearing. The hearing officer 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 except to the extent the substance thereof is stipulated for the record. 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 with respect to two or more programs to which this part applies, or noncompliance with this part and the regulations of one or more other Federal departments or agencies issued under Title VI of the Act, the Secretary may, by agreement with such other departments or agencies where applicable, provide for the conduct of consolidated or joint hearings, and for the application to such hearings of rules of procedures not inconsistent with this part. Final decisions in such cases, insofar as this part is concerned, shall be made in accordance with § 8.13.

§ 8.13

Decisions and notices.

(a) Decision by person other than the responsible Department official. If the hearing is held by a hearing officer such hearing officer shall either make an initial decision, if so authorized, or certify the entire record including his recommended findings and proposed decision to the responsible Department official for a final decision, and a copy of such initial decision or certification shall be mailed to the applicant or recipient. Where the initial decision is made by the hearing officer the applicant or recipient may within 30 days of the mailing of such notice of initial decision file with the responsible Department official his exceptions to the initial decision, with his