[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Proposed Rules]
[Pages 39977-39985]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17034]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
31 CFR Part 22
RIN 1505-AC45
Nondiscrimination on the Basis of Race, Color, or National Origin
in Programs or Activities Receiving Federal Financial Assistance
AGENCY: Department of the Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This proposed regulation provides for the enforcement of Title
VI of the Civil Rights Act of 1964, as amended (``Title VI'') to the
end that no person in the United States shall on the grounds of race,
color, or national origin be denied participation in, be denied the
benefits of, or be otherwise subjected to discrimination under any
program or activity that receives federal financial assistance from the
Department of the Treasury. The promulgation of this proposed
regulation will provide guidance to the Department's recipients of
federal financial assistance in complying with the provisions of Title
VI and will also promote consistent and appropriate enforcement of
Title VI by the Department's components.
DATES: Written comments must be received on or before September 11,
2015.
ADDRESSES: Interested persons are invited to submit comments regarding
this notice of proposed rulemaking according to the instructions below.
All submissions must refer to the document title. The Department
encourages the early submission of comments.
Electronic Submission of Comments: Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
http://www.regulations.gov. Electronic submission of comments allows
the commenter maximum time to prepare and submit a comment, ensures
timely receipt, and enables the Department to make them available to
the public. Comments submitted electronically through the http://www.regulations.gov Web site can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Mail: Send comments to Mariam G. Harvey, Director, Office of Civil
Rights and Diversity, 1500 Pennsylvania Avenue NW., Washington, DC
20220; facsimile (202) 622-0367.
Note: To receive consideration as public comments, comments
must be submitted through a method specified.
Public Inspection of Public Comments: All properly submitted
comments will be available for inspection and downloading at http://www.regulations.gov.
Additional Instructions: In general comments received, including
attachments and other supporting materials, are part of the public
record and are available to the public. Do not submit any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: Mariam G. Harvey, Director, Office of
Civil Rights and Diversity, Department of the Treasury, (202) 622-0316
(voice), and (202) 622-7104 (TTY). All responses to this notice should
be submitted via http://www.regulations.gov or by mail to ensure
consideration.
SUPPLEMENTARY INFORMATION:
I. Background
The purpose of this proposed rule is to provide for the enforcement
of Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C.
2000d, et seq.), as it applies to programs or activities receiving
assistance from the Department of the Treasury. Specifically, the
statute states that ``[n]o person in the United States shall, on the
grounds of race, color, or national origin be denied participation in,
be denied the benefits of, or be otherwise subjected to discrimination
under any program or activity that receives federal financial
assistance.'' 42 U.S.C. 2000d. Each federal agency subject to Title VI
is required to issue regulations implementing Title VI. 28 CFR 42.403.
The Department of the Treasury will be issuing Title VI regulations for
the first time. The Department proposes regulations as Title VI of the
Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d to 2000d-7
(``Title VI''), requires.
[[Page 39978]]
Title VI prohibits discrimination on the basis of race, color, and
national origin in all programs or activities that receive federal
financial assistance. Under Treasury's proposed Title VI implementing
regulations, Treasury-funded programs are prohibited from taking acts,
including permitting actions, that discriminate based on the
statutorily protected classes. These proposed regulations further
provide for Treasury procedures to ensure compliance, including a
hearing procedure.
II. Applicable Executive Orders and Regulatory Certifications
Executive Order 12866
Executive Orders 13563 and 12866 direct agencies to assess costs
and benefits of available regulatory alternatives and, if regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Executive Order 13563
emphasizes the importance of quantifying both costs and benefits, of
reducing costs, of harmonizing rules, and of promoting flexibility.
This proposed rule has been designated a ``significant regulatory
action'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, this proposed rule has been
reviewed by the Office of Management and Budget.
Unfunded Mandates Reform Act of 1995
The Department certifies that no actions were deemed necessary
under the Unfunded Mandates Reform Act of 1995. Furthermore, these
proposed regulations will not result in the expenditure by State,
local, and tribal governments, in the aggregate, or by the private
sector, of $100,000,000 or more in any one year, and they will not
significantly or uniquely affect small governments.
The Regulatory Flexibility Act
The Department, in accordance with the Regulatory Flexibility Act,
5 U.S.C. 605(b), has reviewed these Title VI regulations and by
approving, certifies that these regulations will not have a significant
economic impact on a substantial number of small entities because all
of the entities that are subject to these regulations are already
subject to Title VI, and some entities already are subject to the Title
VI regulations of other agencies.
This proposed rule, if adopted, is not a ``major rule,'' nor will
it have a significant economic impact on a substantial number of small
entities, in large part because these regulations do not impose any new
substantive obligations on federal funding recipients. All recipients
of federal funding have been bound by Title VI's antidiscrimination
provision since 1964. Individual participants in the recipients'
programs have thus long had the right to be free from discrimination on
the basis of race, color, and national origin. This rule merely ensures
that the Department and its components have regulations implementing
this statute.
Executive Order 13132
These Title VI regulations will not have substantial direct effects
on the states, on the relationship between the national government and
the States, or on the distribution of power and responsibilities among
the various levels of government. These Title VI regulations do not
subject recipients of federal funding to any new substantive
obligations because all recipients of federal funding have been bound
by Title VI's antidiscrimination provision since 1964. Moreover, these
Title VI regulations are required by statute; Congress specifically
directed federal agencies to adopt implementing regulations when Title
VI was enacted. Therefore, in accordance with section 6 of Executive
Order 13132, the Department has determined that this rule does not have
sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. No further action is required.
Executive Order 12250
The Attorney General has reviewed and approved this proposed rule
pursuant to Executive Order 12250.
Paperwork Reduction Act
Under the Paperwork Reduction Act (44 U.S.C. chapter 35), an agency
may not conduct or sponsor and a person is not required to respond to a
collection of information unless it displays a valid control number
issued by the Office of Management and Budget (OMB). The information
collections contained in this proposed rule will be submitted and
approved by OMB in connection with information collections for the
applicable programs listed in appendix A to the regulations.
The information collections contained in this proposed rule are
found in Sec. Sec. 22.5 (reporting), 22.6 (reporting and
recordkeeping), 22.7 (reporting), and 22.10 (reporting).
The OMB control numbers that will be revised include the following:
------------------------------------------------------------------------
Program or
Bureau/Office activity OMB Control Nos.
------------------------------------------------------------------------
Departmental Offices, Office Community 1559-0021
of Domestic Finance, Office Development
of Financial Institutions. Financial
Institutions
(CDFI) Fund--
Financial
Component.
Departmental Offices, Office Community 1559-0021
of Domestic Finance, Office Development
of Financial Institutions. Financial
Institutions
(CDFI) Fund--
Technical
Assistance
Component.
Departmental Offices, Office Bank Enterprise 1559-0032, 1559-0005
of Domestic Finance, Office Award Program.
of Financial Institutions.
Departmental Offices, Office Native American 1559-0021
of Domestic Finance, Office Community
of Financial Institutions. Development
Financial
Institutions
(CDFI)
Assistance
Program,
Financial
Assistance (FA)
Awards.
Departmental Offices, Office Native American 1559-0021
of Domestic Finance, Office Community
of Financial Institutions. Development
Financial
Institutions
(CDFI)
Assistance
(NACA) Program,
Technical
Assistance
Grants.
Departmental Offices, Office Community 1559-0043
of Domestic Finance, Office Development
of Financial Institutions. Financial
Institutions
Fund, Capital
Magnet Fund.
Departmental Offices, Office State Small 1505-0227
of Domestic Finance, Office Business Credit
of Small Business, Community Initiative.
Development, and Housing
Policy.
Internal Revenue Service..... Tax Counseling 1545-2222
for the Elderly
Grant Program.
Internal Revenue Service..... Volunteer Income 1545-2222
Tax Assistance
Program.
Internal Revenue Service..... Volunteer Income 1545-2222
Tax Assistance
Grant Program.
Internal Revenue Service..... Low Income 1545-1648
Taxpayer Clinic
Grant Program.
United States Mint........... U.S. TBD
Commemorative
Coin Programs.
[[Page 39979]]
Departmental Offices, Equitable 1505-0152
Treasury Executive Office sharing program
for Asset Forfeiture. (transfer of
forfeited
property to
state and local
law enforcement
agencies).
Departmental Offices, Office Grants under the 1505-0250
of the Fiscal Assistant RESTORE Act's
Secretary. Direct
Component and
Centers of
Excellence
program.
------------------------------------------------------------------------
Comments on the collection of information should be sent to the
Office of Management and Budget, Attention: Desk Officer for the
Department of Treasury, Office of Information and Regulatory Affairs,
Washington, DC 20503, or email to [email protected] with
copies to the Department of Treasury at the addresses specified in the
ADDRESSES section. Comments on the information collection should be
submitted no later than September 11, 2015. Comments are specifically
requested concerning:
1. Whether the proposed information collection is necessary for the
proper performance of agency functions, including whether the
information will have practical utility;
2. The accuracy of the estimated burden associated with the
proposed collection of information, including the validity of the
methodology and assumptions used (see below);
3. How to enhance the quality, utility, and clarity of the
information required to be maintained; and
4. How to minimize the burden of complying with the proposed
information collection, including the application of automated
collection techniques or other forms of information technology.
List of Subjects in 31 CFR Part 22
Civil rights, Reporting and recordkeeping requirements.
For the reasons discussed in the preamble, the Department proposes
to amend 31 CFR by adding part 22 to read as follows:
PART 22--NONDISCRIMINATION ON THE BASIS OF RACE, COLOR, OR NATIONAL
ORIGIN IN PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL
ASSISTANCE FROM THE DEPARTMENT OF THE TREASURY
Sec.
22.1 Purpose.
22.2 Application.
22.3 Definitions.
22.4 Discrimination prohibited.
22.5 Assurances required.
22.6 Compliance information.
22.7 Conduct of investigations.
22.8 Procedure for effecting compliance.
22.9 Hearings.
22.10 Decisions and notices.
22.11 Judicial review.
22.12 Effect on other regulations, forms, and instructions.
Appendix A to Part 22--Activities to Which This Part Applies
Authority: 42 U.S.C. 2000d-2000d-7.
Sec. 22.1 Purpose.
The purpose of this part is to effectuate the provisions of Title
VI of the Civil Rights Act of 1964 (Title VI) to the end that no person
in the United States shall, on the grounds of race, color, or national
origin, be excluded from participation in, be denied the benefits of,
or be otherwise subjected to discrimination under any program or
activity receiving federal financial assistance from the Department of
the Treasury.
Sec. 22.2 Application.
(a) This part applies to any program for which federal financial
assistance is authorized under a law administered by the Department,
including the types of federal financial assistance listed in Appendix
A to this part. It also applies to money paid, property transferred, or
other federal financial assistance extended after the effective date of
this part pursuant to an application approved before that effective
date. This part does not apply to:
(1) Any federal financial assistance by way of insurance or
guaranty contracts;
(2) Any assistance to any individual who is the ultimate
beneficiary; or
(3) Any employment practice, under any such program, of any
employer, employment agency, or labor organization, except to the
extent described in Sec. 22.4(c). The fact that a type of federal
financial assistance is not listed in Appendix A to this part shall not
mean, if Title VI is otherwise applicable, that a program is not
covered. Other types of federal financial assistance under statutes now
in force or hereinafter enacted may be added to appendix A to this
part.
(b) In any program receiving federal financial assistance in the
form, or for the acquisition, of real property or an interest in real
property, to the extent that rights to space on, over, or under any
such property are included as part of the program receiving that
assistance, the nondiscrimination requirement of this part shall extend
to any facility located wholly or in part in that space.
Sec. 22.3 Definitions.
As used in this part:
Applicant means a person who submits an application, request, or
plan required to be approved by an official of the Department of the
Treasury, or designee thereof, or by a primary recipient, as a
condition to eligibility for federal financial assistance, and
application means such an application, request, or plan.
Designated agency official means the Assistant Secretary for
Management and his or her designee.
Facility includes all or any part of structures, equipment, or
other real or personal property or interests therein, and the provision
of facilities includes the construction, expansion, renovation,
remodeling, alteration, or acquisition of facilities.
Federal financial assistance includes:
(1) Grants and loans of federal funds; (2) The grant or donation of
federal property and interests in property;
(3) The detail of federal personnel;
(4) The sale and lease of, and the permission to use (on other than
a casual or transient basis), federal property or any interest in such
property without consideration or at a nominal consideration, or at a
consideration which is reduced for the purpose of assisting the
recipient, or in recognition of the public interest to be served by
such sale or lease to the recipient; and
(5) Any federal agreement, arrangement, or other contract which has
as one of its purposes the provision of assistance.
Primary recipient means any recipient that is authorized or
required to extend federal financial assistance to another recipient.
Program or activity and program mean all of the operations of any
entity described in the following paragraphs (1) through (4) of this
definition, any part of which is extended federal financial assistance:
(1)(i) A department, agency, special purpose district, or other
instrumentality of a State or of a local government; or
(ii) The entity of such state or local government that distributes
such assistance and each such department or agency to which the
assistance is extended, in the case of assistance to a State or local
government;
[[Page 39980]]
(2)(i) A college, university, or other postsecondary institution,
or a public system of higher education; or
(ii) A local educational agency (as defined in 20 U.S.C. 7801),
system of vocational education, or other school system;
(3)(i) An entire corporation, partnership, or other private
organization, or an entire sole proprietorship--
(A) If assistance is extended to such corporation, partnership,
private organization, or sole proprietorship as a whole; or
(B) Which is principally engaged in the business of providing
education, health care, housing, social services, or parks and
recreation; or
(ii) The entire plant or other comparable, geographically separate
facility to which federal financial assistance is extended, in the case
of any other corporation, partnership, private organization or sole
proprietorship; or
(4) Any other entity which is established by two or more of the
entities described in the preceding paragraphs (1), (2), or (3) of this
definition.
Recipient may mean any State, territory, possession, the District
of Columbia, or Puerto Rico, or any political subdivision thereof, or
instrumentality thereof, any public or private agency, institution, or
organization, or other entity, or any individual, in any State,
territory, possession, the District of Columbia, or Puerto Rico, to
whom federal financial assistance is extended, directly or through
another recipient, including any successor, assignee, or transferee
thereof, but such term does not include any ultimate beneficiary.
Sec. 22.4 Discrimination prohibited.
(a) General. No person in the United States shall, on the grounds
of race, color, or national origin be excluded from participation in,
be denied the benefits of, or be otherwise subjected to discrimination
under, any program to which this part applies.
(b) Specific discriminatory actions prohibited. (1) A recipient to
which this part applies may not, directly or through contractual or
other arrangements, on the grounds of race, color, or national origin:
(i) Deny a person any service, financial aid, or other benefit
provided under the program;
(ii) Provide any service, financial aid, or other benefit to a
person which is different, or is provided in a different manner, from
that provided to others under the program;
(iii) Subject a person to segregation or separate treatment in any
matter related to his receipt of any service, financial aid, or other
benefit under the program;
(iv) Restrict a person in any way in the enjoyment of any advantage
or privilege enjoyed by others receiving any service, financial aid, or
other benefit under the program;
(v) Treat a person differently from others in determining whether
he satisfies any admission, enrollment, quota, eligibility, membership,
or other requirement or condition which persons must meet in order to
be provided any service, financial aid, or other benefit provided under
the program;
(vi) Deny a person an opportunity to participate in the program
through the provision of services or otherwise to afford him an
opportunity to do so which is different from that afforded others under
the program (including the opportunity to participate in the program as
a volunteer or as an employee, but only to the extent set forth in
paragraph (c) of this section); or
(vii) Deny a person the opportunity to participate as a member of a
planning, advisory, or similar body which is an integral part of the
program.
(2) A recipient, in determining the types of services, financial
aid, or other benefits, or facilities which will be provided under any
such program, or the class of persons to whom, or the situations in
which, such services, financial aid, other benefits, or facilities will
be provided under any such program, or the class of persons to be
afforded an opportunity to participate in any such program, may not,
directly or through contractual or other arrangements, use criteria or
methods of administration which have the effect of subjecting persons
to discrimination because of their race, color, or national origin or
have the effect of defeating or substantially impairing accomplishment
of the objectives of the program with respect to individuals of a
particular race, color, or national origin.
(3) In determining the site or location of facilities, a recipient
or applicant may not make selections with the purpose or effect of
excluding persons from, denying them the benefits of, or subjecting
them to discrimination under any program to which this regulation
applies, on the grounds of race, color, or national origin; or with the
purpose or effect of defeating or substantially impairing the
accomplishment of the objectives of Title VI or this part.
(4) As used in this section the services, financial aid, or other
benefits provided under a program receiving federal financial
assistance include any service, financial aid, or other benefit
provided in or through a facility provided with the aid of federal
financial assistance.
(5) The enumeration of specific forms of prohibited discrimination
in this paragraph does not limit the generality of the prohibition in
paragraph (a) of this section.
(6) This part does not prohibit the consideration of race, color,
or national origin if the purpose and effect are to remove or overcome
the consequences of practices or impediments which have restricted the
availability of, or participation in, the program or activity receiving
federal financial assistance, on the grounds of race, color, or
national origin. Where prior discriminatory practice or usage tends, on
the grounds of race, color, or national origin to exclude individuals
from participation in, to deny them the benefits of, or to subject them
to discrimination under any program or activity to which this part
applies, the applicant or recipient must take affirmative action to
remove or overcome the effects of the prior discriminatory practice or
usage. Even in the absence of prior discriminatory practice or usage, a
recipient in administering a program or activity to which this part
applies, may take affirmative action to assure that no person is
excluded from participation in or denied the benefits of the program or
activity on the grounds of race, color, or national origin.
(c) Employment practices. (1) Where a primary objective of the
federal financial assistance to a program to which this part applies is
to provide employment, a recipient subject to this part shall not,
directly or through contractual or other arrangements, subject a person
to discrimination on the ground of race, color, or national origin in
its employment practices under such program (including recruitment or
recruitment advertising, hiring, firing, upgrading, promotion,
demotion, transfer, layoff, termination, rates of pay or other forms of
compensation or benefits, selection for training or apprenticeship, and
use of facilities). Such recipient shall take affirmative action to
insure that applicants are employed, and employees are treated during
employment, without regard to their race, color, or national origin.
The requirements applicable to construction employment under any such
program shall be those specified in or pursuant to Part III of
Executive Order 11246 or any Executive Order which supersedes it.
(2) Where a primary objective of the federal financial assistance
is not to provide employment, but
[[Page 39981]]
discrimination on the grounds of race, color, or national origin in the
employment practices of the recipient or other persons subject to the
regulation tends, on the grounds of race, color, or national origin, to
exclude individuals from participation in, deny them the benefits of,
or subject them to discrimination under any program to which this
regulation applies, the provisions of paragraph (c)(1) of this section
shall apply to the employment practices of the recipient or other
persons subject to the regulation, to the extent necessary to assure
equality of opportunity to, and nondiscriminatory treatment of,
beneficiaries.
Sec. 22.5 Assurances required.
(a) General. Either at the application stage or the award stage,
federal agencies must ensure that applications for federal financial
assistance or awards of federal financial assistance contain, be
accompanied by, or be covered by a specifically identified assurance
from the applicant or recipient, satisfactory to the designated agency
official, that each program or activity operated by the applicant or
recipient and to which these Title VI regulations apply will be
operated in compliance with these Title VI regulations.
(b) Duration of obligation. (1) In the case where the federal
financial assistance is to provide or is in the form of personal
property, or real property or interest therein or structures thereon,
the assurance shall obligate the recipient, or, in the case of a
subsequent transfer, the transferee, for the period during which the
property is used for a purpose for which the federal financial
assistance is extended or for another purpose involving the provision
of similar services or benefits, or for as long as the recipient
retains ownership or possession of the property, whichever is longer.
In all other cases the assurance shall obligate the recipient for the
period during which federal financial assistance is extended to the
program.
(2) In the case where federal financial assistance is provided in
the form of a transfer of real property, structures, or improvements
thereon, or interest therein, from the federal Government, the
instrument effecting or recording the transfer shall contain a covenant
running with the land assuring nondiscrimination for the period during
which the real property is used for a purpose for which the federal
financial assistance is extended or for another purpose involving the
provision of similar services or benefits. Where no transfer of
property or interest therein from the federal government is involved,
but property is acquired or improved with federal financial assistance,
the recipient shall agree to include such covenant in any subsequent
transfer of such property. When the property is obtained from the
federal government, such covenant may also include a condition coupled
with a right to be reserved by the Department to revert title to the
property in the event of a breach of the covenant where, in the
discretion of the designated agency official, such a condition and
right of reverter is appropriate to the statute under which the real
property is obtained and to the nature of the grant and the grantee. In
such event if 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
designated agency official may agree, upon request of the transferee
and if necessary to accomplish such financing, and upon such conditions
as the designated agency official deems appropriate, to subordinate
such right of reversion to the lien of such mortgage or other
encumbrance.
(c) Continuing federal financial assistance. Every application by a
State or a State agency for continuing federal financial assistance to
which this part applies (including the types of federal financial
assistance listed in appendix A to this part) shall as a condition to
its approval and the extension of any federal financial assistance
pursuant to the application:
(1) Contain, be accompanied by, or be covered 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, be accompanied by, or be covered by provision for such
methods of administration for the program as are found by the
designated agency official to give reasonable guarantee 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.
(d) Assurance 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 special
training projects, for student loans 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, hospital, 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, patients, 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.
(e) Form. (1) The assurances required by paragraph (a) of this
section, which may be included as part of a document that addresses
other assurances or obligations, shall include that the applicant or
recipient will comply with all applicable federal statutes relating to
nondiscrimination. This includes but is not limited to Title VI of the
Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d, et seq.
(2) The designated agency official will specify the extent to which
such assurances will be required of the applicant's or recipient's
subgrantees, contractors, subcontractors, transferees, or successors in
interest. Any such assurance shall include provisions which give the
United States a right to seek its judicial enforcement.
Sec. 22.6 Compliance information.
(a) Cooperation and assistance. The designated Agency 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 designated Agency official timely, complete, and accurate
compliance reports at such times, and in such form and containing such
information, as the designated Agency official may determine to be
necessary to enable the designated Agency official to ascertain whether
the recipient has complied or is complying with this part. In the case
in 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. In general recipients should have available for the designated
Agency official racial and ethnic data showing the extent to which
members of minority groups are beneficiaries of programs receiving
federal financial assistance.
(c) Access to sources of information. Each recipient shall permit
access by the designated Agency official during
[[Page 39982]]
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 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 for which the recipient
receives federal financial assistance, and make such information
available to them in such manner, as the designated Agency official
finds necessary to apprise such persons of the protections against
discrimination assured them by Title VI and this part.
Sec. 22.7 Conduct of investigations.
(a) Periodic compliance reviews. The designated Agency 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 that he or she, or any
specific class of persons, has been subjected to discrimination
prohibited by this part may by himself or herself, or by a
representative, file with the designated Agency official a written
complaint. A complaint must be filed not later than 180 days after the
date of the alleged discrimination, unless the time for filing is
extended by the designated Agency official.
(c) Investigations. The designated Agency official 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 will 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 designated Agency 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 Sec. 22.8.
(2) If an investigation does not warrant action pursuant to
paragraph (d)(1) of this section the designated Agency official 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 Title VI or this part, or because
the individual 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.
Sec. 22.8 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 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 referral 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 Civil Rights Act of 1964), or any assurance or other
contractual undertaking; and
(2) Any applicable proceeding under State or local law.
(b) Noncompliance with Sec. 22.5. If an applicant fails or refuses
to furnish an assurance required under Sec. 22.5 or otherwise fails or
refuses to comply with a requirement imposed by or pursuant to that
section, federal financial assistance may be suspended, terminated, or
refused in accordance with the procedures of paragraph (c) of this
section. The Agency shall not be required to provide assistance in such
a case during the pendency of the administrative proceedings under such
paragraph. However, subject to Sec. 22.12, the Agency shall continue
assistance during the pendency of such proceedings where such
assistance is due and payable pursuant to an application approved prior
to the effective date of this part.
(c) Termination of or refusal to grant or to continue federal
financial assistance. (1) No order suspending, terminating, or refusing
to grant or continue federal financial assistance shall become
effective until:
(i) The designated Agency official has advised the applicant or
recipient of the applicant's or recipient's failure to comply and has
determined that compliance cannot be secured by voluntary means;
(ii) 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;
(iii) The action has been approved by the designated Agency
official pursuant to Sec. 22.10(e); and
(iv) The expiration of 30 days after the designated Agency official
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.
(2) 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
with Title VI by any other means authorized by law shall be taken by
the Department of the Treasury until:
(1) The designated Agency official has determined that compliance
cannot be secured by voluntary means;
(2) The recipient or other person has been notified of its failure
to comply and of the action to be taken to effect compliance; and
(3) 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 the regulation and to take such corrective
action as may be appropriate.
Sec. 22.9 Hearings.
(a) Opportunity for hearing. Whenever an opportunity for a hearing
is required by Sec. 22.8(c), reasonable notice 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
[[Page 39983]]
action proposed to be 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 of such notice
within which the applicant or recipient may request of the designated
agency official that the matter be scheduled for hearing; or
(2) Advise the applicant or recipient that the matter in question
has been set 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 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
Sec. 22.8(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 of the Treasury component administering the
program, at a time fixed by the designated Agency official unless the
designated Agency official determines that the convenience of the
applicant or recipient or of the Agency requires that another place be
selected. Hearings shall be held before the designated Agency official,
or at designated Agency official's discretion, before a hearing
examiner appointed in accordance with section 3105 of title 5, United
States Code, or detailed under section 3344 of title 5, United States
Code.
(c) Right to counsel. In all proceedings under this section, the
applicant or recipient and the Agency 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 554 through 557 of title 5, United States Code, 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 designated
Agency official 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 do 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
determined 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 federal statutes, authorities, or other
means by which federal financial assistance is extended and 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, the designated Agency official 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 or procedures not inconsistent with this part. Final
decisions in such cases, insofar as this regulation is concerned, shall
be made in accordance with Sec. 22.10.
Sec. 22.10 Decisions and notices.
(a) Procedure on decisions by hearing examiner. If the hearing is
held by a hearing examiner, the hearing examiner shall either make an
initial decision, if so authorized, or certify the entire record
including his recommended findings and proposed decision to the
designated agency 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 after the mailing of
such notice of initial decision, file with the designated Agency
official the applicant's or recipient's exceptions to the initial
decision, with the reasons therefor. In the absence of exceptions, the
designated Agency official may, on his or her own motion, within 45
days after the initial decision, serve on the applicant or recipient a
notice that the designated Agency official will review the decision.
Upon the filing of such exceptions or of notice of review, the
designated Agency official shall review the initial decision and issue
his or her own decision thereon including the reasons therefor. In the
absence of either exceptions or a notice of review the initial decision
shall, subject to paragraph (e) of this section, constitute the final
decision of the designated Agency official.
(b) Decisions on record or review by the designated Agency
official. Whenever a record is certified to the designated Agency
official for decision or he or she reviews the decision of a hearing
examiner pursuant to paragraph (a) of this section, or whenever the
designated Agency official conducts the hearing, the applicant or
recipient shall be given reasonable opportunity to file with the
designated Agency official briefs or other written statements of its
contentions, and a written copy of the final decision of the designated
Agency official shall be sent to the applicant or recipient and to the
complainant, if any.
(c) Decisions on record where a hearing is waived. Whenever a
hearing is waived pursuant to Sec. 22.9, a decision shall be made by
the designated Agency official on the record and a written copy of such
decision shall be sent to the applicant or recipient, and to the
complainant, if any.
(d) Rulings required. Each decision of a hearing examiner or the
designated Agency official shall set forth his or her ruling on each
finding, conclusion, or exception presented, and shall identify the
requirement 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 designated Agency official. Any final decision by
an official of the Agency, other than the designated Agency official
personally, 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 Title VI,
shall promptly be transmitted to the designated Agency official
personally, 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, to which this regulation
applies, and may contain
[[Page 39984]]
such terms, conditions, and other provisions as are consistent with and
will effectuate the purposes of Title VI and this part, including
provisions designed to assure that no federal financial assistance to
which this regulation applies will thereafter be extended 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 designated Agency official
that it will fully comply with this part.
(g) Post termination proceedings. (1) An applicant or recipient
adversely affected by an order issued under paragraph (f) 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 recipient adversely affected by an order
entered pursuant to paragraph (f) of this section may at any time
request the designated Agency official to restore fully its eligibility
to receive federal financial assistance. Any such request shall be
supported by information showing that the applicant or recipient has
met the requirements of paragraph (g)(1) of this section. If the
designated Agency official determines that those requirements have been
satisfied, he or she shall restore such eligibility.
(3) If the designated Agency official denies any such request, the
applicant or recipient may submit a request for a hearing in writing,
specifying why it believes such official to have been in error. It
shall thereupon be given an expeditious hearing, with a decision on the
record in accordance with rules or procedures issued by the designated
Agency official. The applicant or recipient will be restored to such
eligibility if it proves at such a hearing that it satisfied the
requirements of paragraph (g)(1) of this section. While proceedings
under this paragraph are pending, the sanctions imposed by the order
issued under paragraph (f) of this section shall remain in effect.
Sec. 22.11 Judicial review.
Action taken pursuant to section 602 of the Title VI is subject to
judicial review as provided in section 603 of the Title VI.
Sec. 22.12 Effect on other regulations, forms, and instructions.
(a) Effect on other regulations. All regulations, orders, or like
directions issued before the effective date of this part by any officer
of the Department of the Treasury which impose requirements designed to
prohibit any discrimination against individuals on the grounds of race,
color, or national origin under any program to which this part applies,
and which authorize the suspension or termination of or refusal to
grant or to continue federal financial assistance to any applicant for
a recipient of such assistance for failure to comply with such
requirements, are hereby superseded to the extent that such
discrimination is prohibited by this part, except that nothing in this
part may be considered to relieve any person of any obligation assumed
or imposed under any such superseded regulation, order, instruction, or
like direction before the effective date of this part. Nothing in this
part, however, supersedes any of the following (including future
amendments thereof):
(1) Executive Order 11246 (3 CFR, 1965 Supp., p. 167) and
regulations issued thereunder; or
(2) Any other orders, regulations, or instructions, insofar as such
orders, regulations, or instructions prohibit discrimination on the
ground 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. The designated Agency official shall
issue and promptly make available to all interested persons forms and
detailed instructions and procedures for effectuating this part as
applied to programs to which this part applies and for which the
designated Agency official is responsible.
(c) Supervision and coordination. The designated Agency official
may from time to time assign to officials of the Agency, or to
officials of other departments or agencies of the Government with the
consent of such departments or agencies, responsibilities in connection
with the effectuation of the purposes of Title VI and this part (other
than responsibility for final decision as provided in Sec. 22.10),
including the achievement of effective coordination and maximum
uniformity within the Agency and within the Executive Branch of the
Government in the application of Title VI and this part to similar
programs and in similar situations. Any action taken, determination
made or requirement imposed by an official of another department or
agency acting pursuant to an assignment of responsibility under this
paragraph shall have the same effect as though such action had been
taken by the designated Agency official of the Department.
Appendix A to Part 22--Activities to Which This Part Applies
Note: Failure to list a type of federal assistance in this
appendix A shall not mean, if Title VI is otherwise applicable, that
a program is not covered.
------------------------------------------------------------------------
Program or
Component activity Authority
------------------------------------------------------------------------
Departmental Offices, Office of Community Riegle Community
Domestic Finance, Office of Development Development and
Financial Institutions. Financial Regulatory
Institutions Improvement Act
Fund--Financial of 1994, 12
Component. U.S.C. 4701 et
seq.
Departmental Offices, Office of Community Riegle Community
Domestic Finance, Office of Development Development and
Financial Institutions. Financial Regulatory
Institutions Improvement Act
Fund--Technical of 1994, 12
Assistance U.S.C. 4701 et
Component. seq.
Departmental Offices, Office of Bank Enterprise Riegle Community
Domestic Finance, Office of Award Program. Development and
Financial Institutions. Regulatory
Improvement Act
of 1994 sec. 114,
12 U.S.C. 4713.
Departmental Offices, Office of Native American Riegle Community
Domestic Finance, Office of Community Development
Financial Institutions. Development Banking and
Financial Financial
Institutions Institutions Act
Assistance of 1994, 12
Program, U.S.C. 4701 et
Financial seq.
Assistance (FA)
Awards.
Departmental Offices, Office of Native American Riegle Community
Domestic Finance, Office of Community Development
Financial Institutions. Development Banking and
Financial Financial
Institutions Institutions Act
Assistance (NACA) of 1994, 12
Program, U.S.C. 4701 et
Technical seq.
Assistance Grants.
Departmental Offices, Office of Community Housing and
Domestic Finance, Office of Development Economic Recovery
Financial Institutions. Financial Act of 2008 sec.
Institutions 1339, 12 U.S.C.
Fund, Capital 4569.
Magnet Fund.
[[Page 39985]]
Departmental Offices, Office of State Small Small Business
Domestic Finance, Office of Business Credit Jobs Act of 2010,
Small Business, Community Initiative. 12 U.S.C. 5701 et
Development, and Housing Policy. seq.
Internal Revenue Service........ Tax Counseling for Revenue Act of
the Elderly Grant 1978 sec. 163,
Program. Pub. L. 95-600,
92 Stat 2763,
2810-2811.
Internal Revenue Service........ Volunteer Income Tax Reform Act of
Tax Assistance 1969, Pub. L. 91-
Program. 172, 83 Stat.
487.
Internal Revenue Service........ Volunteer Income Consolidated
Tax Assistance Appropriations
Grant Program. Act, Pub. L. 110-
161, 121 Stat.
1844, 1975-76
(2007).
Internal Revenue Service........ Low Income Internal Revenue
Taxpayer Clinic Service
Grant Program. Restructuring and
Reform Act of
1998 sec. 3601,
26 U.S.C. 7526.
United States Mint.............. U.S. Commemorative Specific acts of
Coin Programs. Congress that
authorize United
States
commemorative
coin and medal
programs provide
assistance. See,
e.g., the Louis
Braille
Bicentennial--Bra
ille Literacy
Commemorative
Coin Act, Pub. L.
109-247 (2006);
the Boy Scouts of
America
Centennial
Commemorative
Coin Act, Pub. L.
110-363 (2008);
the American
Veterans Disabled
for Life
Commemorative
Coin Act, Pub. L.
110-277 (2008);
and the National
September 11
Memorial & Museum
Commemorative
Medal Act of
2010, Pub. L. 111-
221 (2010).
Departmental Offices, Treasury Equitable sharing 18 U.S.C.
Executive Office for Asset program (transfer 981(e)(2); 21
Forfeiture. of forfeited U.S.C.
property to state 881(e)(1)(A); 31
and local law U.S.C. 9703.
enforcement
agencies).
Various Treasury Bureaus and Unreimbursed 5 U.S.C. 3371
Offices (including the Internal detail of Federal through 3376.
Revenue Service). Employees through
the
Intergovernmental
Personnel Act.
Departmental Offices, Office of Grants under the Resources and
the Fiscal Assistant Secretary. RESTORE Act's Ecosystems
Direct Component Sustainability,
and Centers of Tourist
Excellence Opportunities,
program and and Revived
supplemental Economies of the
compliance Gulf Coast States
responsibilities Act of 2012, Pub.
for its L. 112-141.
Comprehensive
Plan and Spill
Impact Components.
------------------------------------------------------------------------
Brodi Fontenot,
Assistant Secretary for Management.
[FR Doc. 2015-17034 Filed 7-10-15; 8:45 am]
BILLING CODE 4810-25-P