at the Office of State Technical Services in Washington, D.C., unless the Director determines, based on good and sufficient reason tendered by the agency or institution, that another place be selected. The hearing shall be conducted in accordance with such rules as may facilitate a full and complete explanation of the conditions leading to the convening of the hearing. Witnesses shall be given an opportunity to testify and evidence, exhibits and documents may be introduced and submitted for the record. A transcript of the hearing will be taken, the cost of which will be borne by the Office of State Technical Services. A copy of such transcript will be available to the agency or institution on request.

(d) Revocation. Following his review of the hearing provided in paragraph (c) of this section, or if the agency or institution declines the offer of hearing or if it accepts but fails to appear or participate at such hearing, the Director shall make a finding on whether the conditions leading to the written notice or hearing have been corrected or eliminated. If the Director finds that such conditions have not been corrected or eliminated, he shall notify such agency or institution of his finding and the basis for his conclusion. The notification of such decision shall also advise that no further payments will be made under the provisions of the Act or under the regulations in this part until there is, in the judgment of the Director, substantial compliance with the provisions of the Act and the regulations in this part or that the diversion, misapplication, improper use, or expenditure of funds has been corrected. If compliance or correction is not possible, no further payments under the provisions of the Act or under the regulations in this part shall be made until such agency or institution repays or arranges the repayment of the funds diverted or improperly expended.

§ 700.14 Application of Title VI of Civil Rights Act of 1964.

(a) The program of extending Federal financial assistance under the Act will be conducted in compliance with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4) and the requirements imposed by or pursuant to the regulations of the Department of Commerce issued thereunder (Part 8 of this title), to the end that no person in the United States shall on the grounds of race, color, or national origin be ex

cluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under such program. Accordingly, each designated agency, on behalf of the State or States it represents, and each participating institution, qualified institution, or person, shall, as a condition to the extension to it of Federal financial assistance under the Act, execute an assurance of compliance with the aforesaid regulations of the Department of Commerce issued pursuant to Title VI of the Civil Rights Act of 1964. A copy of such assurance of compliance to be executed by each recipient prior to the receipt of Federal financial assistance under the Act appears in full as appendix B to this part.

(b) Each grant (or amendment thereto) issued or amended under the Act shall contain a clause stating as follows: "By accepting this grant, the grantee affirms that the 'Assurances of Compliance with the Department of Commerce Regulations under Title VI of the Civil Rights Act of 1964,' previously executed, is fully applicable to this grant and to any program assisted thereby."

§ 700.15 Existing or planned technical services program.

Federal financial assistance under the Act or the regulations in this part may be granted to any designated agency or participating institution in support of a technical services program presently funded by State or other non-Federal sources and operating therein when such program is modified or expanded in light of the objectives of the Act. In any modification or expansion of an existing program, the designated agency shall define the portion of the old program which contained technical services as defined in the Act and identify the nature of the modification or expansion of technical services, as well as the portion for which Federal assistance is sought. As set forth in § 700.2(g), funds expended by a State on existing programs may be considered as part of a State's non-Federal matching funds. While existing programs are eligible for Federal assistance under the Act, it shall be the policy, in approving such programs and in determining the amount of any Federal support, to provide an incentive for their expansion or modification for the widest benefit practicable throughout the country, considering the following:

(a) The extent to which the effectiveness of the State or interstate technical services program is increased within the State or region;

(b) The extent to which private or State participation in the technical services program is increased;

(c) The nature of the benefits within the State or region of any modification or redirection of existing technical services program in relation to the amount of the Federal assistance requested; and

(d) The extent of any national benefits resulting from any modification or expansion of the existing technical services program in relation to the total national program for accomplishing the purposes of the Act.

§700.16 Duplication.

In addition to the certification required under section 5(e) of the Act, that the technical services program submitted to the Secretary for his review and approval does not provide a service which is economically and readily available in the State from private sources, section 10 (e) (2) of the Act prohibits the payment of any funds to any designated agency, participating institution or person to carry out any technical services activity or program if such activity or program is a duplication of any other program readily available in the State from Federal or State agencies, including publicly supported institutions of higher learning in the State. Accordingly, before any request is submitted to the Director for Federal financial assistance under the Act, the designated agency or qualified institution shall first examine Federal and State programs in the State which are readily available to be sure that the proposal will not duplicate other Federal and State programs and will provide supporting statement indicating compliance.

§700.17 Repayment.

In the event any activity or program is terminated under the provisions of section 16 of the Act and § 700.13, any funds that have been paid to any designated agency or participating institution by the Office of State Technical Services which have not been expended by such agency or institution upon receipt of the notice of termination, shall be repaid to the Director within 30 days of such notice.

§ 700.18 Formula for maximum amounts States are eligible to receive. Maximum amount which may be paid under section 10(b) of the Act shall be fixed by the Director in accordance with the following method: The least populous State, based upon the 1960 Census, shall not receive more than $37,500, and the most populous State shall not receive more than $500,000. The maximum amount which each and every other State is eligible to receive shall be an amount which bears the same relationship to amounts which the least and most populous States are eligible to receive as the population of the State bears to the population of the least and most populous States. Within these maximum amounts, the available appropriations shall be apportioned among the States as equitably as possible, considering the merit of the plans and programs submitted.

§700.19 Funding programs under the Act.

(a) General. All funds provided by the Office of State Technical Services under the Act shall be maintained in a separate account or as required by the Director. Matching funds may be commingled with the Federal funds so long as accurate records are maintained which show the separate balance of such funds.

(b) Matching funds. While the funds provided from State or non-Federal sources must, except for planning grants made under section 10(e) (1) of the Act and § 700.4, match the funds provided by the Office of State Technical Services, any State may provide additional amounts from any non-Federal sources.

nated agency in the preparation of the annual State or interstate technical services program.

(c) Such other special and periodic reports as may be required by the Director shall be submitted.

§ 700.21

Federal coordination and advisory committees.

The Director may, prior to approving any technical services plan or program, take such steps as he deems appropriate to coordinate such plan or program with other Federal agencies or seek the advice of such committees as the Secretary may establish for the purpose of reviewing the plans and programs.

APPENDIX A-DESIGNATION BY THE
COMMISSIONER OF EDUCATION

The following organizations have been designated by the Commissioner of Education as nationally recognized accrediting agencies and associations under section 2(c) of the State Technical Services Act of 1965:

I. For instruction in the basic or pure science disciplines and their interdisciplinary derivatives identified as science (as distinguished from technology):

Middle States Association of Colleges and Secondary Schools.

New England Association of Colleges and Secondary Schools.

North Central Association of Colleges and Secondary Schools.

Northwest Association of Secondary and Higher Schools.

Southern Association of Colleges and Schools. Western Association of Schools and Colleges. II. For Engineering: Engineers' Council for Professional Development.

III. For Business Administration: American Association of Collegiate Schools of

merce issued thereunder (Title 15, Code of Federal Regulations, Subtitle A, Part 8), a copy of which is attached, to the end that no person in the United States shall on the ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under said program; and

hereby gives assurance that it will immediately take any measures necessary to effectuate this agreement.

In accord with and without limiting the above, the Grantee agrees:

1. That the aforesaid discrimination in the conduct of the program includes and prohibits such discrimination in:

a. Inviting qualified institutions to submit proposals for providing technical services or in their selection as participating institutions;

b. Appointing members to the advisory council for technical services specified in section 9 of the Act;

c. Preparing the 5-year plans and technical service programs called for by section 4 of the Act by such means or with such provisions as would cause any discriminatory act or course of conduct prohibited by § 8.4 (a) and (b) of the Department's Title VI Regulations;

d. Considering the merits of proposals for providing technical services under the Act; e. Selecting means for providing technical services under the Act;

f. Administering and coordinating plans and programs under the Act;

g. Selecting institutions, agencies, and individuals to administer, coordinate and prepare technical services plans and programs under the Act;

h. Preparing, making public, disseminating, applying, and using reports, technical services, and other information under the Act;

1. Selecting and using contractors and subcontractors and other individuals and organizations to assist in accomplishing the objectives of the plans and programs under the Act and otherwise to participate therein; J. Publicizing, inviting participation in, providing facilities for, and otherwise administering and operating industrial workshops, seminars, training extension programs, demonstrations, fileld visits and other technical services; and

courses,

k. Otherwise planning, organizing, administering, operating and fulfilling the objectives of the Act.

2. That it will not engage in any discrimination described hereinabove in paragraph 1, or in any prohibited act or course of conduct with respect thereto as described in §§ 8.4 and 8.5(b) (6) of the Department of Commerce Title VI Regulations.

3. That the Grantee further recognizes and agrees that its obligations to comply with the Department's Title VI Regulations extend not only to its own activities but also, in accord with §§ 8.5(b)(4) of said Regu

lations, to assure that the public and private organizations, institutions and individuals, such as participating institutions or contractors, which play a part in developing the Grantee's plans and in the Grantee's programs, will also comply with the Department's Title VI Regulations and these Assurances with respect to said plans and programs. To that end, the Grantee agrees that it will obtain as part of its contractual or other arrangements with such parties, or will arrange with others with whom it has direct dealings to obtain in turn from such parties, written Assurances of Compliance with the Department's Title VI Regulations in the same form and substance as these Assurances, which shall be applicable in connection with their contracts, agreements, operations, receipt of benefits and other participation under or relating to State Technical Services plans and programs receiving Federal financial assistance.

4. That it will obtain and provide the information required by or pursuant to said Title VI Regulations to ascertain and obtain compliance with said Regulations and these Assurances.

5. That it will secure the compliance, and assist and cooperate actively with the Department of Commerce in obtaining and enforcing the compliance, of said contracting and other participating parties with the nondiscrimination required by the Department's Title VI Regulations and their respective agreements and arrangements, and in the event the Grantee becomes involved in litigation with a noncomplying party, it may request the Department of Commerce to enter into such litigation to protect the interests of the United States in the enforcement of these obligations.

6. That when the Grantee or other participant under the plans or programs is an institution referred to in § 8.5(b) (9) of the Department's Title VI Regulations, the provisions of that section shall be applicable.

7. That any failure to comply with these assurances of nondiscrimination shall constitute a breach of the grant or agreement pursuant to which they were furnished; that in such case of breach further disbursements or payments under the grant or agreement may be refused or suspended or repayments required or any other enforcement or remedial actions or remedies provided in the regulations under the Act or the Department's Title VI Regulations or otherwise by law may be taken; and that the enforcement of one or more rights shall not be prejudicial to the Government's right to obtain judicial relief and/or take any other action available under the Act, regulations, grant, agreements, or otherwise by law.

8. That these assurances shall be in effect for the period provided in § 8.5(b) (10) of the Department's Title VI Regulations.

9. That these assurances of the Grantee, and any supplementary assurances given by related subgrantees, contractors and other participants in the plans and programs under the Act, shall be binding not only upon them but also upon their officers, directors, employees and agents, assignees, transferees, lessees, and successors in interest.

The Grantee acknowledges that it has received and read the provisions of the Department's Title VI Regulations. Dated

Part 802

803

PART 802-ANNUAL REPORTING OF REVENUES FOR CARRYING IMPORTS TO, AND EXPENDITURES IN, THE UNITED STATES OF SHIPPING AND AIR TRANSPORT OPERATORS OF FOREIGN NATIONALITY

Sec.

802.1 Who must report.

802.2

802.8

Forms to be used.

Information to be furnished. 802.4 Time and place of filing reports.

AUTHORITY: The provisions of this Part 802 issued under R.S. 161; 5 U.S.C. 22. Interpret or apply sec. 8, 59 Stat. 515; 22 U.S.C. 2861, E.O. 10033, 14 F.R. 561, 3 CFR, 1949 Supp.

SOURCE: The provisions of this Part 802 appear at 17 F.R. 4922, May 30, 1952, unless otherwise noted. Redesignated at 18 F.R. 8111, Dec. 10, 1953.

§ 802.1 Who must report.

(a) (1) A report is required from or on behalf of every foreign individual or organization incorporated, licensed or otherwise granted permission in countries other than the United States to operate vessels or aircraft if engaged in carrying goods or passengers to or from the United States. Agents or operating agents must respond where acting for foreign operators, unless the operator has his own office in the United States to which the agent is accountable or unless the operator elects to report directly from his home office.

(2) The Department of Commerce may in lieu of individual reports required

under this part, accept consolidated reports from foreign governments covering the operations of their national shipping concerns when, in its discretion, such consolidated reports would provide the information required by this part. Where such reports are accepted, the individual reports from operators or their agents will not be required.

(b) The foreign operator, for purposes of this part, means the owner, managing or operating owner, chartered owner, or subchartered owner who enters into and carries out any form of transportation contract with the shippers of merchandise or with passengers.

(c) If foreign-owned vessels or aircraft are chartered to other foreign operators, the owner should report his expenses in the United States, if any, and the operator should report the freight or charter revenue earned from the shippers of merchandise and his expenses in the United States.

(d) If foreign-owned vessels or aircraft are chartered to a United States operator, the owner should report his expenses in the United States, if any.

(e) Reports submitted by agents should include all disbursements accounted for directly by them to the foreign company at its foreign office; if subagents report through a principal agent in the same or another location, the principal agent should file a consolidated report on behalf of the foreign company.