a 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 Office official or his designee 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 § 1010.9.

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

(e) Intimidatory or retaliatory acts prohibited. No recipient or other person shall intimidate, threaten, coerce, or discriminate against any individual for the purpose of interfering with any right or privilege secured by section 601 of the Act or this part, or because he has made a complaint, testified, assisted, or participated in any manner in an 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 investigation, hearing, or judicial proceeding arising thereunder.

§ 1010.9 Procedure for effecting compliance.

(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 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 ap

propriate 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 § 1010.5. If an applicant fail or refuses to furnish an assurance under § 1010.5 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 Office shall not be required to provide assistance in such a case during pendency of the administrative proceedings under such paragraph, except that the Office shall continue assistance during the pendency of such proceedings where such assistance is due and payable pursuant to an application 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 Office 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 Director pursuant to § 1010.11(e), and (4) the expiration of 30 days after the Director 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 Office official has determined that compliance cannot be secured by voluntary means, (2) the action has been approved by the Director, (3) the recipient or other person 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 person. During this period of at least 10 days additional efforts shall be made to persuade the recipient or other person to comply with this part and to take such corrective action as may be appropriate. § 1010.10 Hearings.

When

(a) Opportunity for hearing. ever an oportunity for a hearing is required by § 1010.9 (c), reasonable notice of such hearing shall be given by registered or certified mail, return receipt requested, to the affected applicant or recipient. This notice shall advise the applicant or recipient 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 not less than 20 days after the date of such notice within which the applicant or recipient may request of the responsible Office 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 subsection 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 § 1010.9 (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 in Washington, D.C., at a time and place fixed by the responsible Office official unless he determines that the convenience of the applicant or recipient or of the Office requires that another place be selected. Hearings shall be held before the responsible Office official, or, at his discretion, before a hearing examiner designated in accord

ance with section 11 of the Administrative Procedure Act.

(c) Right to counsel. In all proceedings under this section, the applicant or recipient and the Office 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 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 Office 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 cross-examination 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 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 of the Act, the Director may, by agreement with such other departments or agencies, provide for the conduct of consolidated or joint hearings, and for the application to such hearings of rules of procedure not inconsistent with this part. Final decisions in such cases, insofar as this part is concerned, shall be made in accordance with § 1010.11.

§ 1010.11

Decisions and notices.

(a) Decision by person other than the responsible Office official. If the hearing is held by a hearing examiner, such hearing examiner shall either make any initial decision, if so authorized, or certify the entire record including his recommended findings and proposed decision to the responsible Office 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 examiner, the applicant or recipient may within 30 days of the mailing of such notice of initial decision file with the responsible Office official his exceptions to the initial decision, with his reasons therefor. In the absence of exceptions, the responsible Office official may, on his own motion, within 45 days after the initial decision serve on the applicant or recipient a notice that he will review the decision. Upon the filing of such exceptions or of such notice of review, the responsible Office official shall review the initial decision and issue his own decision thereon, including the reasons therefor. In the absence of either exceptions or a notice of review the initial decision shall constitute the final decision of the responsible Office official.

(b) Decisions on record or review by the responsible Office official. Whenever a record is certified to the responsible Office official for decision or he reviews the decision of a hearing examiner pursuant to paragraph (a) of this section, or whenever the responsible Office official conducts the hearing, the applicant or recipient shall be given reasonable opportunity to file with him briefs or other written statements of its contentions, and a copy of the final decision of the responsible Office official shall be given in writing to the applicant or recipient, and the complainant, if any.

(c) Decisions on record where hearing is waived. Whenever a hearing is waived pursuant to § 1010.10 (a), a decision shall be made by the responsible Office official on the record and a copy of such decision shall be given in writing to the applicant or recipient, and to the complainant, if any.

(d) Rulings required. Each decision of a hearing officer or responsible Office official shall set forth his ruling on each finding, conclusion, or exception presented, and shall identify the require

ment or requirements imposed by or pursuant to this part with which it is found that the applicant or recipient has failed to comply.

(e) Approval by Director. Any final decision of a responsible Office official (other than the Director) which provides for the suspension or termination of, or the refusal to grant or continue Federal financial assistance, or the imposition of any other sanction available under this part or the Act, shall promptly be transmitted to the Director, who may approve such decision, may vacate it, or remit or mitigate any sanction imposed.

(f) Content of orders. The final decision may provide for suspension or termination of, 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 purposes of the Act and this part, including provisions designed to assure that no Federal financial assistance will thereafter be extended under such program to the applicant or recipient determined by such decision to be in default in its performance of an assurance given by it pursuant to this part, or to have otherwise failed to comply with this part, unless and until it corrects its noncompliance and satisfies the responsible Office official that it will fully comply with this part.

§ 1010.12 Judicial review.

Any action taken pursuant to section 602 of the Act is subject to judicial review as provided in section 603 of the Act. § 1010.13 Effect on other regulations; forms and instructions.

(a) Nothing in this part shall be deemed to supersede (1) Executive Orders 10925 and 11114 and regulations issued thereunder, or (2) any other regulations or instructions insofar as they prohibit discrimination on the grounds of race, color, or national origin in any program or situation to which this part is inapplicable, or prohibit discrimination on any other ground.

(b) Forms and instructions. Each responsible Office official shall issue and promptly make available to interested persons forms and detailed instructions and procedures for effectuating this part as applied to programs to which this part applies and for which he is responsible.

(c) Supervision and coordination. The Director may, from time to time, assign to officials of other departments or agencies of the Government (with the consent of such department or agency) responsibilities in connection with the effectuation of the purposes of Title VI of the Act and this part (other than responsibility for final decision as provided in § 1010.11), including the achievement of effective coordination and maximum uniformity within the Office and within the Executive Branch of the Government in the application of Title VI and this part to similar programs and in similar situations.

APPENDIX A

PROGRAMS TO WHICH THIS PART APPLIES

Programs under the following provisions of the Economic Opportunity Act of 1964 are now administered by the Office and are covered by this part:

Title I, Part A, Section 108 (State-Operated Youth Camps).

Title II, Part A (Community Action Programs).

Title II, Part C (Voluntary Assistance Program for Needy Children).

Title III, Part B (Assistance for Migrant, and Other Seasonally Employed, Agricultural Employees and Their Families).

Title VI, Section 603 (Volunteers in Service to America).

Subpart C-Reports; Distribution; Supplemental Regulations

1015.735-31 Reports of non-OEO interests. 1015.735-32 Distribution. 1015.735-33 Supplemental regulations.

AUTHORITY: The provisions of this Part 1015 issued under 18 U.S.C. 208(b); P.L. 88452, sec. 602(n) (42 U.S.C. 2942(n)); and E.O. 11222 of May 8, 1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.

SOURCE: The provisions of this Part 1015 appear at 32 F.R. 13965, Oct. 7, 1967, unless otherwise noted.

Subpart A-General

§ 1015.735-1 Purpose.

The purpose of this part is to guide OEO employees toward maintaining the high standard of integrity expected of all Government employees. It is intended to require that employees avoid any action which might result in, or create the appearance of:

(a) Using public office for private gain;

(b) Giving preferential treatment to any organization or person;

(c) Impeding Government efficiency or economy;

(d) Making a Government decision outside official channels;

(e) Losing complete independence or impartiality of action; or

(f) Affecting adversely the confidence of the public in the integrity of OEO and the Government.

§ 1015.735-2 Applicability.

(a) Coverage. This part applies to all employees of OEO. “Employee," as used in this part, includes regular employees, Presidential appointees, officers, "special Government employees," experts, and consultants--whether employed on a full-time, part-time, or intermittent basis. "Employee" does not include Job Corps enrollees, VISTA's, or persons performing voluntary services for OEO under section 602(g) of the Economic Opportunity Act. Unless otherwise stated in the particular provision, the provisions of this part apply equally to all employees. In a number of cases, separate rules are stated for "special Government employees." A "special Government em

ployee is an employee appointed to serve not more than 130 days during the 365 days following his appointment. Special Government employees are so designated by the Personnel Division at the time of their appointment.

(b) Effective date. This part is effective upon publication in the FEDERAL REGISTER, except that the restrictions of § 1015.735-25, insofar as they apply to "related matters," shall not apply to any person whose employment with OEO was terminated prior to the date of such publication. With respect to any provision of this part which sets forth new OEO policy, the General Counsel may defer the application of such provision in particular cases where he finds it necessary to prevent hardship to employees or former employees.

(c) Compliance. Compliance with the applicable provisions of this part is a continuing condition of employment for every OEO employee. Failure to comply with any such provision shall make the employee involved subject to removal or to other appropriate disciplinary action. Such action may be in addition to any penalty which might be prescribed by statute or regulation.

Many of the provisions of this part are paraphrased restatements of statutes which affect the conduct of OEO employees. These statutes and all other restrictions imposed by law continue to apply to OEO employees on their own terms. The statutes most likely to be of concern to OEO employees are identified and listed in § 1015.735-26.

§ 1015.735-4 Interpretation and counseling.

The Office of General Counsel of OEO is available to advise on the interpretation of the provisions of this part and the other laws and regulations relevant to the conduct of OEO employees. The General Counsel is designated as OEO counselor for this purpose.

Subpart B-Specific Rules

§ 1015.735-11

Discrimination.

(a) Employees shall at all times give equal treatment and equal opportunity to all persons regardless of race, religion, sex, or political beliefs or affiliations, except as is required by law.

(b) See also the provisions of § 1015.735-15(b), relating to participation in

conferences at which discrimination may be practiced.

§ 1015.735-12 Compensation from outside sources for official duties; bribes, gifts, and favors.

(a) Outside compensation. No employee may solicit or accept any compensation from any source other than the Government for his services as an officer or employee of the Government (18 U.S.C. 209). In the case of special Government employees, and employees serving without compensation, this prohibition is applicable by virtue of OEO policy rather than by statute; in particular cases, upon a showing that the interests of OEO will not be adversely affected, this policy with respect to special Government employees and employees serving without compensation may be waived by the General Counsel.

(b) Bribes. No employee may solicit or accept a bribe (18 U.S.C. 201). A bribe is anything of value solicited or accepted in return for being influenced in the performance of any official act, or for being induced to do or to omit any official act, or for or because of any official act performed or to be performed.

(c) Gifts and favors. (1) No employee shall solicit or accept, directly or indirectly, any gift, gratuity, favor, loan, entertainment, or any other thing of monetary value from any person or from any employee of any organization if the OEO employee has reason to believe such person or organization:

(i) Has or is seeking to obtain a grant, contract, or other business or financial relationship with OEO; or

(ii) Conducts programs or activities which are regulated by OEO; or

(iii) Has interests which may be substantially affected by the performance or nonperformance of his official duty.

(2) This paragraph does not prohibit: (i) Acceptance of gifts and the exchange of social amenities when the relationship between the parties is a personal one and no reasonable inference is possible that the official judgment of the recipient was intended to be or would be influenced thereby.

(ii) Acceptance of food and refreshments of nominal value in the ordinary course of a luncheon or dinner meeting or other meeting when the employee's attendance at the meeting is in the interest of OEO.

(iii) Acceptance of things, such as unsolicited advertising or promotional ma