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 other contractual undertaking.

or

(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 assurance that it will fully comply with this part.

(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.

(3) If the Associate Director for Human Rights denies any such request, the applicant or grantee may submit a written request for a hearing to the Director of CSA specifying why it believes such denial to have been in error. It shall thereupon be given an expeditious hearing, with a decision on the record, in accordance with such rules of procedure as are issued by the Director of CSA. The applicant or grantee will be restored to eligibility if it proves at a hearing that it satisfied the requirements of paragraph (f)(1) of this section. While proceedings under this paragraph are pending, the sanctions imposed by the order issued under paragraph (e) of this section shall remain in effect.

CSA shall to the fullest extent practicable in accordance with the requirements of this part seek the cooperation of grantees in obtaining compliance with this part, and shall provide assistance and guidance to grantees to help them comply voluntarily with this part.

§ 1010.50-2 Continuing State programs. (a) Each state agency administering a continuing program which receives Federal assistance from CSA shall establish a Title VI compliance program for itself and other grantees which obtain financial assistance through it.

(b) This program will parallel the provisions of this part, including the maintenance of records necessary to permit Federal officials to determine compliance of the state agency and the sub-grantees with Title VI and this part.

§ 1010.50-3 Effect on other regulations, forms, and instructions. Nothing in this part shall be deemed to supersede (a) Executive Order 11246 and regulations issued thereun

der, or (b) any other regulations or instructions insofar as they prohibit discrimination on the grounds of race, color, national origin or sex in any program or situation to which this part is applicable, or prohibit discrimination on any other ground.

§ 1010.50-4 Supervision and coordination.

The Director of CSA may 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 this part other than the right to review a hearing examiner's initial decision as provided in § 1010.40-4. Any action taken, determination made, or requirements imposed by an official of another department or agency acting pursuant to such an assignment or responsibility shall have the same effect as though such action had been taken by the responsible official of CSA.

The above disproportionate allocations may be justifiable if the CSA-approved program objective was to address unemployment, and if 90% of the White poverty area was unemployed compared to 5% of the Black poverty area.

4. The utilization of sites and facilities that have historically discriminated, which affects the participation of beneficiaires because of race, color, or national origin.—A Community Action Agency in a multiracial community which is predominately Black leases a facility for use as a neighborhood service center in an exclusive White area that is inaccessible to the Black community.

The following examples, without being exhaustive, illustrate the application of the non-discrimination provisions of this part in programs or projects receiving Federal financial assistance from the Community Services Administration.

1. Denial of the opportunity to participate in a program because of race, color or national origin.-An Off-reservation Native American funded program in an urban area denies a Caucasian the opportunity to participate in the food and nutrition component of the program because she/he is not a Native American.

2. Failure to ensure that all segments of the low-income community have an equal opportunity to participate in the board member representation elective process because of race, color, or national origin.—A Community Action Agency in a multiracial community utilizing a mobile voting booth for board member elections in the area served, allots an equal amount of time in each of the ethnic and racial areas except for the Black community.

3. Providing a disproportionate allocation to one sector of a community with a predominant monoracial composition where the disproportionate allocation is not justified by a CSA-approved program objective.-A Community Action Agency serving a poverty population composed of 10% White, 77% Black, 10% Hispanic and 3% Oriental provides the White poverty community with 50% and the Black poverty community with 20% of the funds available to the poverty area served.

PART 1050-UNIFORM FEDERAL STANDARDS

Subpart A-Implementation of Uniform Federal Standards by the Community Services Administration (CSA Instruction 6800–1)