Page images

dition coupled with a right to be reserved by the Endowment to revert title to the property in the event of a breach of the covenant where, in the discretion of the responsible Endowment official, such a condition and right of reverter is appropriate to the program under which the real property is obtained and to the nature of the grant and the grantee. In the event a transferee of real property proposes to mortgage or otherwise encumber the real property as security for financing construction of new, or improvement of existing, facilities on such property for the purposes for which the property was transferred, the Chairman of the Endowment concerned may agree, upon request of the transferee and if necessary to accomplish such financing, and upon such conditions as he deems appropriate, to forebear the exercise of such right to revert title for so long as the lien of such mortgage or other encumbrance remains effective.

(3) Transfers of surplus property are subject to regulations issued by the Administrator of the General Services Administration. (41 CFR 101-6.2)

(b) Continuing State programs. Every application by a State or a State agency to carry out a program involving continuing Federal financial assistance to which this part applies shall as a condition to its approval and the extension of any Federal financial assistance pursuant to the application (1) contain or be accompanied by a statement that the program is (or, in the case of a new program, will be) conducted in compliance with all requirements imposed by or pursuant to this part, and (2) provide or be accompanied by provision for such methods of administration for the program as are found by the responsible Endowment official to give reasonable assurance that the applicant and all recipients of Federal financial assistance under such program will comply with all requirements imposed by or pursuant to this part.

(c) Elementary and secondary schools. The requirements of paragraph (a) of this section with respect to any elementary or secondary school or school system shall be deemed to be satisfied if such school or school system (1) is subject to a final order of

a court of the United States for the desegregation of such school or school system, and provides 'an assurance that it will comply with such order, including any future modification of such order, or (2) submits a plan for the desegregation of such school or school system which the responsible official of the Department of Health, Education, and Welfare determines is adequate to accomplish the purposes of the Act and this part within the earliest practicable time and provides reasonable assurance that it will carry out such plan. In any case of continuing Federal financial assistance, the responsible official of the Department of Health, Education, and Welfare may reserve the right to redetermine, after such period as may be specified by him, the adequacy of the plan to accomplish the purposes of the Act and this part. In any case in which a final order of a court of the United States for the desegregation of such school or school system is entered after submission of such a plan, such plan shall be revised to conform to such final order, including any future modification of such order.

(d) Assurances from institutions. (1) In the case of any application for Federal financial assistance to an institution of higher education (including assistance for construction, for research, for a special training project, or for any other purpose), the assurance required by this section shall extend to admission practices and to all other practices relating to the treatment of students.

(2) The assurance required with respect to an institution of higher education or any other institution, insofar as the assurance relates to the institution's practices with respect to admission or other treatment of individuals as students, or clients of the institution or to the opportunity to participate in the provision of services or other benefits to such individuals, shall be applicable to the entire institution unless the applicant establishes, to the satisfaction of the responsible Endowment official, that the institution's practices in designated parts or programs of the institution will in no way affect its practices in the program of the institution for which Federal fi

nancial assistance is sought, or the In a research or demonstration grant beneficiaries of or participants in, to such an institution, discrimination such program. If in any such case the is prohibited with respect to any eduassistance sought is for the construc cational activity, any provision of medtion of a facility or part of a facility, ical or other services and any financial the assurance shall in any event aid to individuals incident to the proextend to the entire facility and to fa gram. cilities operated in connection there (d) Where Federal financial assistwith.

ance is provided to assist in the pres

entation of artistic and cultural pro8 1110.5 Illustrative applications.

ductions to the public, assurances will The following examples will illus be required that such productions will trate the application of the foregoing not be presented before any audience provisions to some of the activities for which has been selected on a discrimiwhich Federal financial assistance is natory basis. provided by the Endowments. (In all (e) A recipient may not take action cases the discrimination prohibited is that is calculated to bring about indidiscrimination on the ground of race, rectly what this part forbids it to accolor, or national origin prohibited by complish directly. Thus, a State, in seTitle VI of the Act and this part, as a lecting projects to be supported condition of the receipt of Federal fi through a State agency, may not base nancial assistance.)

its selections on criteria which have (a) In a research, training, or other the effect of defeating or substantially grant to a university for activities to impairing accomplishment of the obbe conducted in a graduate school, dis jectives of the Federal financial assistcrimination in the admission and ance as respects individuals of a partreatment of students in the graduate ticular race, color, or national origin. school is prohibited, and the prohibi. (f) In some situations even though tion extends to the entire university, past discriminatory practices have unless it satisfies the responsible En been abandoned, the consequences of dowment official that practices with such practices continue to impede the respect to other parts or programs of full availability of a benefit. If the efthe university will not interfere, di forts required of the applicant or rerectly or indirectly, with fulfillment of cipient under $ 1110.6(d) to provide inthe assurance required with respect to formation as to the availability of the the graduate school.

program or activity, and the rights of (b) In cases of Federal financial as beneficiaries under this regulation, sistance to elementary or secondary have failed to overcome these conseschools, discrimination by the recipi quences, it will become necessary for ent school district in any of its elemen such applicant or recipient to take adtary or secondary schools, or by the ditional steps to make the benefits recipient private institution, in the ad fully available to racial and nationalmission of students, or in the treat ity groups previously subjected to disment of its students in any aspect of crimination. This action might take the educational process, is prohibited. the form, for example of special arIn this and the following illustration rangements for obtaining referrals or the prohibition of discrimination in making selections which will insure the treatment of students or other that groups previously subjected to trainees includes the prohibition of discrimination are adequately served. discrimination among the students or (g) Even though an applicant or retrainees in the availa ty or use of cipient has never used discriminatory any academic, dormitory, eating, recre policies, the services and benefits of ational, or other facilities of the grant the program or activity it administers ee or other recipient.

may not in fact be equally available to (c) In a training grant to a nonacade some racial or nationality groups. In mic institution, discrimination is pro such circumstances an applicant or rehibited in the selection of individuals cipient may properly give special conto be trained and in their treatment sideration to race, color, or national by the grantee during their training. origin to make the benefits of its pro

gram more widely available to such groups, not then being adequately served. For example, where a university is not adequately serving members of a particular racial or nationality group, it may establish special recruitment policies to make its program better known and more readily available to such group, and take other steps to provide that group with more adequate service.

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 Endowment official finds necessary to apprise such persons of the protections against discrimination assured them by the Act and this part.

8 1110.6 Compliance information.

(a) Cooperation and assistance. The responsible Endowment 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 Endowment official timely, complete and accurate compliance reports at such times, and in such form and containing such information, as the respo ible Endowment 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, such other recipient shall also submit such compliance reports to the primary recipient as may be necessary to enable the primary recipient to carry out its obligations under this part.

(c) Access to sources of information. Each recipient shall permit access by the responsible Endowment official or his 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 any other agency, institution or person and this agency, institution or person shall fail or refuse 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


8 1110.7 Conduct of investigations.

(a) Periodic compliance reviews. The responsible Endowment official shall from time to time review the practices of recipients to determine whether they are complying with this part.

(b) Complaints. Any person who believes himself or any specific class of individuals to be subjected to discrimi. nation prohibited by this part may by himself or by a representative file with he responsible Endowment official a written complaint. A complaint must be filed not later than ninety days from the date of the alleged discrimination, unless the time for filing is extended by the responsible Endowment official.

(c) Investigations. The responsible Endowment official will make prompt investigation whenever a compliance review, report, complaint, or any other information indicates a possible failure to comply with this part. The investigation should include, where appropriate, a review of the pertinent practices and policies of the recipient, the circumstances under which the possible noncompliance with this part occurred, and other factors relevant to a determination as to whether the recipient has failed to comply with this part.

(d) Resolution of matters. (1) If an investigation pursuant to paragraph (c) of this section indicates a failure to comply with this part, the responsible Endowment 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

[ocr errors]


informal means, action will be taken cy of the administrative proceedings as provided for in § 1110.8.

under such paragraph, except that (2) If an investigation does not war such Endowment shall continue assistrant action pursuant to paragraph ance during the pendency of such pro(d)(1) of this section, the responsible ceedings where such assistance is due Endowment official will so inform the and payable pursuant to an applicarecipient and the complainant, if any, tion therefor approved prior to the efin writing.

fective date of this part. (e) Intimidatory or retaliatory acts (c) Termination of or refusal to prohibited. No recipient or other grant or to continue Federal financial person shall intimidate, threaten, assistance. No order suspending, tercoerce, or discriminate against any in minating, or refusing to grant or condividual for the purpose of interfering tinue Federal financial assistance shall with any right or privilege secured by become effective until (1) the responsisection 601 of the Act or this part, or ble Endowment official has advised because he has made a complaint, tes the applicant or recipient of his failtified, assisted, or participated in any ure to comply and has determined manner in an investigation, proceed that compliance cannot be secured by ing, or hearing under this part. The voluntary means, (2) there has been identity of complainants shall be kept an express finding on the record, after confidential except to the extent nec opportunity for hearings, of a failure essary to carry out the purposes of by the applicant or recipient to this part, including the conduct of any comply with a requirement imposed by investigation, hearing, or judicial pro or pursuant to this part, (3) the action ceeding arising thereunder.

has been approved by the Chairman of

the Endowment concerned, and (4) the 8 1110.8 Procedure for effecting compli

expiration of 30 days after the Chair

man has filed with the Committee of (a) General. If there appears to be a the House and the Committee of the failure or threatened failure to comply Senate having legislative jurisdiction with this part, and if the noncompli over the program involved, a full writance or threatened noncompliance ten report of the circumstances and cannot be corrected by informal the grounds for such action. Any means, compliance with this part may action to suspend or terminate or to be effected by the suspension or termi refuse to grant or to continue Federal nation of or refusal to grant or to con financial assistance shall be limited to tinue Federal financial assistance or the particular political entity, or part by any other means authorized by law. thereof, or other applicant or recipient Such other means may include, but as to whom such a finding has been are not limited to, (1) a reference to made and shall be limited in its effect the Department of Justice with a rec to the particular program, or part ommendation that appropriate pro thereof, in which such noncompliance ceedings be brought to enforce any has been so found. rights of the United States under any (d) Other means authorized by law. law of the United States (including No action to effect compliance by any other titles of the Act), or any assur other means authorized by law shall ance or other contractual undertaking, be taken until (1) the responsible Enand (2) any applicable proceeding dowment official has determined that under State or local law.

compliance cannot be secured by vol(b) Noncompliance with $ 1110.4. If untary means, (2) the recipient or an applicant fails or refuses to furnish other person has been notified of its an assurance required under $ 1110.4 failure to comply and of the action to or otherwise fails to comply with that be taken to effect compliance, and (3) section, Federal financial assistance the expiration of at least 10 days from may be refused in accordance with the the mailing of such notice to the recipprocedures of paragraph (c) of this ient or other person. During this section. The Endowment concerned period of at least 10 days, additional shall not be required to provide assist efforts shall be made to persuade the ance in such a case during the penden recipient or other person to comply

with this part and to take such correc or recipient and the Endowment shall tive action as may be appropriate. have the right to be represented by

counsel. 8 1110.9 Hearings.

(d) Procedures, evidence, and record. (a) Opportunity for hearing. When (1) The hearing, decision, and any adever an opportunity for a hearing is ministrative review thereof shall be required by $1110.8(c), reasonable conducted in conformity with 5 U.S.C. notice shall be given by registered or 554-557 (sections 5-8 of the Adminiscertified mail, return receipt request trative Procedure Act), and in accorded, to the affected applicant or recipi ance with such rules of procedure as ent. This notice shall advise the appli are proper (and not inconsistent with cant or recipient of the action pro this section) relating to the conduct of posed to be taken, the specific provi the hearing, giving of notices subsesion under which the proposed action quent to those provided for in paraagainst it is to be taken, and the mat graph (a) of this section, taking of testers of fact or law asserted as the basis timony, exhibits, arguments and for this action, and either:

briefs, requests for findings, and other (1) Fix a date not less than 20 days related matters. Both the Endowment after the date of such notice within and the applicant or recipient shall be which the applicant or recipient may entitled to introduce all relevant evirequest of the responsible Endowment dence on the issues as stated in the official that the matter be scheduled notice for hearing or as determined by for hearing or

the officer conducting the hearing at (2) Advise the applicant or recipient the outset of or during the hearing. that the matter in question has been (2) Technical rules of evidence shall set down for hearing at a stated place not apply to hearings conducted purand time. The time and place so fixed suant to this part, but rules or princishall be reasonable and shall be sub ples designed to assure production of ject to change for cause. The com the most credible evidence available plainant, if any, shall be advised of the and to subject testimony to test by time and place of the hearing. An ap cross-examination shall be applied plicant or recipient may waive a hear where reasonably necessary by the ofing and submit written information ficer conducting the hearing. The and argument for the record. The fail hearing officer may exclude irreleure of an applicant or recipient to re vant, immaterial, or unduly repetitious quest a hearing under this paragraph evidence. All documents and other evior to appear at a hearing for which a dence entered or taken for the record date has been set shall be deemed to shall be open to examination by the be a waiver of the right of a hearing parties and opportunity shall be given under section 602 of the Act and to refute facts and arguments ad$ 1110.8(c) of this part and consent to vanced on either side of the issues. A the making of a decision on the basis transcript shall be made of the oral of such information as is available. evidence except to the extent the sub

(b) Time and place of hearing. Hear stance thereof is stipulated for the ings shall be held at the offices of the record. All decisions shall be based Endowment concerned in Washington, upon the hearing record and written DC, at a time fixed by the responsible findings shall be made. Endowment official unless he deter (e) Consolidated or joint hearings. mines that the convenience of the ap In cases in which the same or related plicant or recipient or of the Endow facts are asserted to constitute nonment requires that another place be compliance with this Regulation with selected. Hearings shall be held before respect to two or more programs to the responsible Endowment official or, which this part applies, or noncompliat his discretion, before a hearing ex ance with this part and the regulaaminer designated in accordance with tions of one or more other Federal desection 11 of the Administrative Proce partments or agencies issued under dure Act.

Title VI of the Act, the Chairman of (c) Right to counsel. In all proceed the Endowment concerned may, by ings under this section, the applicant agreement with such other depart

« PreviousContinue »