[Title 45 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[From the U.S. Government Publishing Office]


          45



          Public Welfare



[[Page i]]

          PARTS 500 TO 1199

          Revised as of October 1, 1996
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF OCTOBER 1, 1996
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1996



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents


                                                                    Page
  Explanation.................................................       v
  Title 45:
      Subtitle B--Regulations Relating to Public Welfare--(Continued):

          Chapter V--Foreign Claims Settlement Commission of 
          the United States, Department of Justice                   5
          Chapter VI--National Science Foundation                   39
          Chapter VII--Commission on Civil Rights                  273
          Chapter VIII--Office of Personnel Management             321
          Chapter X--Office of Community Services, 
          Administration for Children and Families, Department 
          of Health and Human Services                             345
          Chapter XI--National Foundation on the Arts and the 
          Humanities                                               351
  Finding Aids:
    Material Approved for Incorporation by Reference..........     621
    Table of CFR Titles and Chapters..........................     623
    Alphabetical List of Agencies Appearing in the CFR........     639
    List of CFR Sections Affected.............................     649

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----------------------------------------------------------                    

  Cite this Code:  CFR                                                         
  To cite the regulations in this volume use title, part                       
  and section number. Thus, 45 CFR 500.1 refers to title                      
  45, part 500, section 1.                                                    

----------------------------------------------------------                    
                                                                                                                


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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 1996), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Properly approved incorporations by reference in this volume are 
listed in the Finding Aids at the end of this volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call (202) 523-4534.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.

[[Page vii]]

    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call 202-512-1800, 
M-F, 8 a.m. to 4 p.m. e.s.t. or fax your order to 202-512-2233, 24 hours 
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Customer Service call 202-512-1803.

                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

October 1, 1996.



[[Page ix]]



                               THIS TITLE

    Title 45--Public Welfare is composed of four volumes. The parts in 
these volumes are arranged in the following order: Parts 1-199, 200-499, 
500-1199, and 1200 to end. Volume one (parts 1-199) contains all current 
regulations issued under subtitle A--Department of Health and Human 
Services, General Administration. Volume two (parts 200-499) contains 
all current regulations issued under subtitle B--Regulations Relating to 
Public Welfare, chapter II--Office of Family Assistance (Assistance 
Programs), Administration for Children and Families, Department of 
Health and Human Services, chapter III--Office of Child Support 
Enforcement (Child Support Enforcement Program), Administration for 
Children and Families, Department of Health and Human Services, and 
chapter IV--Office of Refugee Resettlement, Administration for Children 
and Families, Department of Health and Human Services. Volume three 
(parts 500-1199) contains all current regulations issued under chapter 
V--Foreign Claims Settlement Commission of the United States, Department 
of Justice, chapter VI--National Science Foundation, chapter VII--
Commission on Civil Rights, chapter VIII--Office of Personnel 
Management, chapter X--Office of Community Services, Administration for 
Children and Families, Department of Health and Human Services, and 
chapter XI--National Foundation on the Arts and the Humanities. Volume 
four (part 1200 to end) contains all current regulations issued under 
chapter XII--ACTION, chapter XIII--Office of Human Development Services, 
Department of Health and Human Services, chapter XVI--Legal Services 
Corporation, chapter XVII--National Commission on Libraries and 
Information Science, chapter XVIII--Harry S Truman Scholarship 
Foundation, chapter XXI--Commission of Fine Arts, chapter XXII--
Christopher Columbus Quincentenary Jubilee Commission, chapter XXIII--
Arctic Research Commission, XXIV--James Madison Memorial Fellowship 
Foundation, and chapter XXV--Corporation for National and Community 
Service. The contents of these volumes represent all of the current 
regulations codified under this title of the CFR as of October 1, 1996.

    A subject index to 45 CFR parts 680-684 appears in the Finding Aids 
section of the volume containing parts 500-1199. Those amendments to 
part 801--Voting Rights Program, Appendixes A, B, and D, which apply to 
Texas also appear in Spanish following Appendix D.

    Redesignation tables appear in the Finding Aids section of volumes 
one and four.

    For this volume Christopher R. Choate was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]


[[Page 1]]



                        TITLE 45--PUBLIC WELFARE




                 (This book contains parts 500 to 1199)

  --------------------------------------------------------------------

SUBTITLE B--Regulations Relating to Public Welfare--Continued:
                                                                    Part
Chapter v--Foreign Claims Settlement Commission of the 
  United States, Department of Justice......................         500

Chapter vi--National Science Foundation.....................         601

Chapter vii--Commission on Civil Rights.....................         701

Chapter viii--Office of Personnel Management................         801

Chapter x--Office of Community Services, Administration for 
  Children and Families, Department of Health and Human 
  Services..................................................        1080

Chapter xi--National Foundation on the Arts and the 
  Humanities................................................        1100

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      Subtitle B--Regulations Relating to Public Welfare--Continued

[[Page 5]]



 CHAPTER V--FOREIGN CLAIMS SETTLEMENT COMMISSION OF THE UNITED STATES, DEPARTMENT OF JUSTICE




  --------------------------------------------------------------------

                     SUBCHAPTER A--RULES OF PRACTICE

Part                                                                Page
500             Appearance and practice.....................           7
501             Subpoenas, depositions, and oaths...........          10
502             Employee responsibilities and conduct.......          13
503             Public information..........................          15
504             Privacy Act and Government in the Sunshine 
                    regulations.............................          21


SUBCHAPTER B--RECEIPT, ADMINISTRATION, AND PAYMENT OF CLAIMS UNDER TITLE I OF THE WAR CLAIMS ACT OF 1948, AS AMENDED BY PUB. L. 91-289, APPROVED JUNE 24, 1970

505             Filing of claims and procedures therefor....          29
506             Provisions of general application...........          30
507             Eligibility requirements for compensation...          31
508             Payment.....................................          34
509             Hearings....................................          34


SUBCHAPTER C--RECEIPT, ADMINISTRATION, AND PAYMENT OF CLAIMS UNDER THE 
INTERNATIONAL CLAIMS SETTLEMENT ACT OF 1949, AS AMENDED

531             Filing of claims and procedures therefor....          36

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                     SUBCHAPTER A--RULES OF PRACTICE





PART 500--APPEARANCE AND PRACTICE--Table of Contents




Sec.
500.1  Appearance and representation.
500.2  Notice of entry or withdrawal of counsel in claims.
500.3  Fees.
500.4  Suspension of attorneys.
500.5  Disqualification of former employees; disqualification of 
          partners of current employees.
500.6  Disciplinary proceedings against former employees.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended (50 
U.S.C. App. 2001); Sec. 3, Pub. L. 81-455, 64 Stat. 12, as amended (22 
U.S.C. 1622); 18 U.S.C. 207.

    Source: 52 FR 17556, May 11, 1987, unless otherwise noted.



Sec. 500.1  Appearance and representation.

    (a) An individual may appear in his or her own behalf; a member of a 
partnership may represent the partnership; a bona fide officer of a 
corporation, trust or association may represent the corporation, trust 
or association; an officer or employee of the United States Department 
of Justice, when designated by the Attorney General of the United 
States, may represent the United States in a claim proceeding.
    (b) A person may be represented by an attorney at law admitted to 
practice in any State or Territory of the United States, or the District 
of Columbia.
    (c) In cases falling within the purview of subchapter B of this 
chapter, persons designated by veterans', service, and other 
organizations to appear before the Commission in a representative 
capacity on behalf of claimants shall be deemed duly authorized to 
practice before the Commission when the designating organization shall 
have been issued a letter of accreditation by the Commission. Petitions 
for accreditation shall be in writing, executed by duly authorized 
officer or officers, and addressed to the Foreign Claims Settlement 
Commission of the United States, Washington, DC 20579. Upon receipt of a 
petition setting forth pertinent facts as to the organization's history, 
purpose, number of posts or chapters and their locations, approximate 
number of paid-up memberships, statements that the organization will not 
charge any fee for services rendered by its designees in behalf of 
claimants and that it will not refuse on the grounds of non-membership 
to represent any claimant who applies for such representation if such 
claimant has an apparently valid claim, accompanied by a copy of the 
organization's constitution, or charter, by-laws, and its latest 
financial statement, the Commission in its discretion will consider and 
in appropriate cases issue or deny letters of accreditation.
    (d) A person may not be represented before the Commission except as 
authorized in paragraphs (a), (b), and (c) of this section.



Sec. 500.2  Notice of entry or withdrawal of counsel in claims.

    (a) Counsel entering an appearance in a claim originally filed by a 
claimant in the claimant's behalf, or upon request for a substitution of 
attorneys, shall be required to file an authorization by such claimant.
    (b) When counsel seeks to withdraw from the prosecution of a claim, 
it must appear that the client (claimant) has been duly notified.
    (c) When a claimant advises the Commission that counsel no longer 
represents such claimant, a copy of the Commission's acknowledgement 
shall be forwarded to such counsel.



Sec. 500.3  Fees.

    (a) No remuneration on account of services rendered or to be 
rendered to or on behalf of any claimant in connection with any claim 
falling within the purview of subchapter B of this chapter shall exceed 
ten per centum of the amount allowed on account of such claim, except 
that the Commission in its discretion may fix a lesser per centum with 
respect to any claim filed thereunder.
    (b) The total remuneration on account of services rendered or to be 
rendered to or on behalf of any claimant

[[Page 8]]

in connection with any claim falling within title I of the International 
Claims Settlement Act of 1949, as amended, shall not exceed ten per 
centum of the total amount paid on account of such claim.



Sec. 500.4  Suspension of attorneys.

    (a) The Commission may disqualify, or deny, temporarily or 
permanently, the privilege of appearing or practicing before it in any 
way to any person who is found after a hearing in the matter--
    (1) Not to possess the requisite qualifications to represent others 
before the Commission; or
    (2) To be lacking in character or integrity or to have engaged in 
unethical or improper professional conduct; or
    (3) To have violated sections 10 and 214 of the War Claims Act of 
1948, as amended, or section 4(f) of the International Claims Settlement 
Act of 1949, as amended, or Sec. 500.3 of part 500 of these regulations.
    (b) Contemptuous or contumacious conduct at any hearing shall be 
ground for exclusion from said hearing and for summary suspension 
without a hearing for the duration of the hearing.



Sec. 500.5  Disqualification of former employees; disqualification of partners of current employees.

    (a) No member, officer or employee of the Commission, including a 
special Government employee shall, after employment has ceased, 
knowingly act as an agent or attorney for, or otherwise represent, any 
person or party (other than the United States) in any formal or informal 
appearance before, or, with the intent to influence, make any oral or 
written communication on behalf of any person or party (other than the 
United States) (1) to the Commission or any other department, agency, 
court, court-martial, or any civil, military, or naval commission of the 
United States or the District of Columbia, or any officer or employee 
thereof, (2) in connection with any judicial or other proceeding, 
application, request for a ruling or other determination, contract, 
claim, controversy, investigation, charge, accusation, arrest, or other 
particular matter involving a specific party or parties in which the 
United States or the District of Columbia is a party or has a direct and 
substantial interest, and (3) in which such member, officer, employee, 
or special Government employee, participated personally and 
substantially through decision, approval, disapproval, recommendation, 
the rendering of advice, investigation or otherwise, while so employed.
    (b) No member, officer, or employee of the Commission, including a 
special Government employee, shall, within two years after employment 
has ceased, knowingly act as agent or attorney for, or otherwise 
represent, any person or party (other than the United States) in any 
formal or informal appearance before, or with intent to influence, make 
any oral or written communication on behalf of any person or party 
(other than the United States) (1) to an organization enumerated in 
paragraph (a)(1) of this section, or any officer or employee thereof, 
(2) in connection with any matter enumerated and described in paragraph 
(a)(2) of this section, and (3) which was actually pending under his or 
her official responsibility as an employee within a period of one year 
prior to the termination of such responsibility.
    (c) No member, officer, or employee of the Commission, including a 
special Government employee, in an executive level position, in a 
position with a comparable or greater rate of pay, or in a position that 
involved significant decision making or supervisory responsibility as 
designated by the Director of the Office of Government Ethics under 18 
U.S.C. 207(d)(1)(C), shall, within two years after employment has 
ceased, knowingly represent or aid, counsel, advise, consult or assist 
in representing any person or party (other than the United States) by 
personal presence at any formal or informal appearance before (1) an 
organization enumerated in paragraph (a)(1) of this section, or an 
officer or employee thereof, (2) in connection with any matter 
enumerated and described in paragraph (a)(2) of this section, and (3) in 
which he or she participated personally or substantially as an employee 
(18 U.S.C. 207(b)(ii)).
    (d) No member, officer, or employee of the Commission other than a 
special Government employee with service of

[[Page 9]]

less than sixty days in a given calendar year, who has been an employee 
in an executive level position or a position with a comparable or 
greater rate of pay, or in a position which involved significant 
decision making or supervisory responsibility as designated by the 
Director of Office of Government Ethics under 18 U.S.C. 207(d)(1)(C), 
shall, within one year after such employment has ceased, knowingly 
engage in conduct described in the next sentence. The prohibited knowing 
conduct is that of acting as attorney or agent for, or otherwise 
representing anyone other than the United States, in any formal or 
informal appearance before, or with the intent to influence, making any 
oral or written communication on behalf of anyone other than the United 
States (1) to the Commission, or any employee thereof, (2) in connection 
with any rulemaking or any matter enumerated and described in paragraph 
(a)(2) of this section and (3) which is pending before the Commission or 
in which it has a direct and substantial interest.
    (e) No partner of an employee shall act as agent or attorney for 
anyone other than the United States before an organization enumerated in 
paragraph (a)(1) of this section, or any officer or employee thereof, in 
connection with any matter enumerated and described in paragraph (a)(2) 
of this section in which such Government employee is participating or 
has participated personally and substantially as a Government employee 
through decision, approval, disapproval, recommendation, the rendering 
of advice, investigation or otherwise, or which is the subject of his or 
her official responsibility.



Sec. 500.6  Disciplinary proceedings against former employees.

    (a) Upon a determination by the Commission's Designated Ethics 
Officer, after investigation, that there is reasonable cause to believe 
that a former officer or employee, including a former special Government 
employee, has violated 18 U.S.C. 207 (a), (b) or (c), the Designated 
Ethics Officer shall cause a copy of written charges of the violation(s) 
to be served upon such individual, either personally or by registered 
mail. The charges shall be accompanied by a notice to the former 
employee to show cause within a specified time of not less than 30 days 
after receipt of the notice why he or she should not be prohibited from 
engaging in representational activities in relation to matters pending 
before the Commission, as authorized by 18 U.S.C. 207(j), or subjected 
to other appropriate disciplinary action under that statute. The notice 
to show cause shall include:
    (1) A statement of allegations, and their basis, sufficiently 
detailed to enable the former employee to prepare an adequate defense;
    (2) Notification of the right to a hearing; and
    (3) An explanation of the method by which a hearing may be 
requested.
    (b) If a former employee who submits an answer to the notice to show 
cause does not request a hearing or if the Designated Ethics Officer 
does not receive an answer within five days after the expiration of the 
time prescribed by the notice, the Designated Ethics Officer shall 
forward the record, including the report(s) of investigation, to the 
Chairman. In the case of a failure to answer, such failure shall 
constitute a waiver of defense.
    (c) Upon receipt of a former employee's request for a hearing, the 
Designated Ethics Officer shall notify him or her of the time and place 
thereof, giving due regard both to such person's need for an adequate 
period to prepare a suitable defense and an expeditious resolution of 
allegations that may be damaging to his or her reputation.
    (d) The presiding officer at the hearing and any related proceedings 
shall be a Federal administrative law judge or other Federal official 
with comparable duties. The presiding officer shall insure that the 
former employee has, among others, the rights:
    (1) To self-representation or representation by counsel;
    (2) To introduce and examine witnesses and submit physical evidence;
    (3) To confront and cross-examine adverse witnesses;
    (4) To present oral argument; and
    (5) To a transcript or recording of the proceedings, upon request.
    (e) The Designated Ethics Officer shall designate one or more 
officers or employees of the Commission to

[[Page 10]]

present the evidence against the former employee and perform other 
functions incident to the proceedings.
    (f) A decision adverse to the former employee must be sustained by 
substantial evidence that he or she violated 18 U.S.C. 207 (a), (b) or 
(c).
    (g) The presiding officer shall issue an initial decision based 
exclusively on the transcript of testimony and exhibits, together with 
all papers and requests filed in the proceeding, and shall set forth in 
the decision findings and conclusions, supported by reasons, on the 
material issues of fact and law presented on the record.
    (h) Within 30 days after issuance of the initial decision, either 
party may appeal to the Chairman, who in that event shall issue the 
final decision based on the record of the proceedings or those portions 
thereof cited by the parties to limit the issues. If the final decision 
modifies or reverses the initial decision, the Chairman shall specify 
the findings of fact and conclusions of law that vary from those of the 
presiding officer.
    (i) If a former employee fails to appeal from an adverse initial 
decision within the prescribed period of time, the presiding officer 
shall forward the record of the proceedings to the Chairman.
    (j) In case of a former employee who filed an answer to the notice 
to show cause but did not request a hearing, the Chairman shall make the 
final decision on the record submitted by the Designated Ethics Officer 
pursuant to subsection (b) of this section.
    (k) The Chairman, in a case where:
    (1) The defense has been waived;
    (2) The former employee has failed to appeal from an adverse initial 
decision; or
    (3) The Chairman has issued a final decision that the former 
employee violated 18 U.S.C. 207 (a), (b) or (c) may issue an order:
    (i) Prohibiting the former employee from making on behalf of any 
person or party (other than the United States), any informal or formal 
appearance before, or, with the intent to influence, any oral or written 
communication to, the Commission on a pending matter of business for a 
period not to exceed five years, or
    (ii) Prescribing other appropriate disciplinary action.



PART 501--SUBPOENAS, DEPOSITIONS, AND OATHS--Table of Contents




Sec.
501.1  Extent of authority.
501.2  Subpoenas.
501.3  Service of process.
501.4  Witnesses.
501.5  Depositions.
501.6  Documentary evidence.
501.7  Time.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended (50 
U.S.C. App. 2001); sec. 3, Pub. L. 81-455, 64 Stat. 12, as amended (22 
U.S.C. 1622).

    Source: 52 FR 17559, May 11, 1987, unless otherwise noted.



Sec. 501.1  Extent of authority.

    (a) Subpoenas, oaths and affirmations. The Commission or any member 
thereof may issue subpoenas, administer oaths and affirmations, take 
affidavits, conduct investigations and examine witnesses in connection 
with any hearing, examination, or investigation within its jurisdiction.
    (b) Certification. The Commission or any member thereof may, for the 
purpose of any such hearing, examination, or investigation, certify the 
correctness of any papers, documents, and other matters pertaining to 
the administration of any laws relating to the functions of the 
Commission.



Sec. 501.2  Subpoenas.

    (a) Issuance. A member of the Commission or a designated employee 
may, on such member or employee's own volition of upon written 
application by any party and upon a showing of general relevance and 
reasonable scope of the evidence sought, issue subpoenas requiring 
persons to appear and testify or to appear and produce documents. 
Applications for issuance of subpoenas duces tecum shall specify the 
books, records, correspondence, or other documents sought. The subpoena 
shall show on its face the name and address of the party at whose 
request the subpoena was issued.
    (b) Deposit for costs. The Commission or designated employee, before 
issuing

[[Page 11]]

any subpoena in response to any application by an interested party, may 
require a deposit in an amount adequate to cover fees and mileage 
involved.
    (c) Motion to quash. If any person subpoenaed does not intend to 
comply with the subpoena, such person shall, within 15 days after the 
date of service of the subpoena, petition in writing to quash the 
subpoena. The basis for the motion must be stated in detail. Any party 
desiring to file an answer to a motion to quash must file such answer 
not later than 15 days after the filing of the motion. The Commission 
shall rule on the motion to quash, duly recognizing any answer thereto 
filed. The motion, answer, and any ruling thereon shall become part of 
the official record.
    (d) Appeal from interlocutory order. An appeal may be taken to the 
Commission by the interested parties from the denial of a motion to 
quash or from the refusal to issue a subpoena for the production of 
documentary evidence.
    (e) Order of court upon failure to comply. Upon the failure or 
refusal of any person to comply with a subpoena, the Commission may 
invoke the aid of the United States District Court within the 
jurisdiction of which the hearing, examination or investigation is being 
conducted, or wherein such person resides or transacts business. Such 
court, pursuant to the provisions of Public Law 81-696, approved August 
16, 1950 (50 U.S.C. App. 2001(d)), may issue an order requiring such 
person to appear at the designated place of hearing, examination or 
investigation, then and there to give or produce testimony or 
documentary evidence concerning the matter in question. Any failure to 
obey such an order may be punished by the court as a contempt thereof. 
All processes in any such case may be served in the judicial district 
wherein such person resides or transacts business or wherever such 
person may be found.



Sec. 501.3  Service of process.

    (a) By whom served. The Commission shall serve all orders, notices 
and other papers issued by it, together with any other papers which it 
is required by law to serve.
    (b) Kinds of service. Subpoenas, orders, rulings, and other 
processes of the Commission may be served by delivering in person, by 
first class or registered mail, or by telegraph or by publication.
    (c) Personal service. Service by delivering in person may be 
accomplished by:
    (1) Delivering a copy of the document to the person to be served, to 
a member of the partnership to be served, to an executive officer or a 
director of the corporation to be served, or to a person competent to 
accept service; or
    (2) By leaving a copy thereof at the residence, principal office or 
place of business of such person, partnership, or corporation.
    (3) Proof of service. The return receipt for said order, other 
process or supporting papers, or the verification by the person serving, 
setting forth the manner of said service, shall be proof of the service 
of the document.
    (4) Service upon attorney or agent. When any party has appeared by 
an authorized attorney or agent, service upon such attorney or agent 
shall be deemed service upon the party.
    (d) Service by first class mail. Service by first class mail shall 
be regarded as complete upon deposit in the United States mail properly 
stamped and addressed.
    (e) Service by registered mail. Service by registered mail shall be 
regarded as complete on the date the return post office registered 
receipt for said orders, notices and other papers is received by the 
Commission.
    (f) Service by telegraph. Service by telegraph shall be regarded as 
complete when deposited with a telegraph company properly addressed and 
with charges prepaid.
    (g) Service by publication. Service by publication is completed when 
due notice shall have been given in the publication for the time and in 
the manner provided by law or rule.
    (h) Date of service. The date of service shall be the day upon which 
the document is deposited in the United States mail or delivered in 
person, as the case may be.
    (i) Filing with Commission. Papers required to be filed with the 
agency shall be deemed filed upon actual receipt by the Commission 
accompanied by proof of service upon parties required to be served. Upon 
such actual receipt the

[[Page 12]]

filing shall be deemed complete as of the date of deposit in the mail or 
with the telegraph company as provided in paragraphs (e) and (f) of this 
section.



Sec. 501.4  Witnesses.

    (a) Examination of witnesses. Witnesses shall appear in person and 
be examined orally under oath, except that for good cause shown, 
testimony may be taken by deposition.
    (b) Witness fees and mileage. Witnesses summoned by the Commission 
on its own behalf or on behalf of a claimant or interested party shall 
be paid the same fees and mileage that are allowed and paid witnesses in 
the District Courts of the United States. Witness fees and mileage shall 
be paid by the Commission or by the party at whose request the witness 
appears.
    (c) Transcript of testimony. Every person required to attend and 
testify or to submit documents or other evidence shall be entitled to 
retain or, on payment of prescribed costs, procure a copy of the 
transcript of the testimony or the documents produced.



Sec. 501.5  Depositions.

    (a) Application to take. (1) An application to take a deposition 
shall be in writing setting forth the reason why such deposition should 
be taken, the name and address of the witness, the matters concerning 
which it is expected the witness will testify, and the time and place 
proposed for the taking of the deposition, together with the name and 
address of the person before whom it is desired that the deposition be 
taken. If such deposition is being offered in connection with a hearing 
or examination, the application for deposition shall be made to the 
Commission at least 15 days prior to the proposed date of such hearing 
or examination.
    (2) Application to take a deposition may be made during a hearing or 
examination, or subsequent to a hearing or examination, only where it is 
shown for good cause that the facts as set forth in the application to 
take the deposition were not within the knowledge of the person signing 
the application prior to the time of the hearing or examination.
    (3) The Commission or its representative shall, upon receipt of the 
application and a showing of good cause, make and cause to be served 
upon the parties an order which will specify the name of the witness 
whose deposition is to be taken, the time, the place, and where 
practicable the designation of the officer before whom the witness is to 
testify. Such officer may or may not be the one specified in the 
application. The order shall be served upon all parties at least 10 days 
prior to the date of the taking of the deposition.
    (b) Who may take. Such deposition may be taken before the designated 
officer or, if none is designated, before any officer authorized to 
administer oaths by the laws of the United States. If the examination is 
held in a foreign country, it may be taken before a secretary of an 
embassy or legation, consul-general, consul, vice consul, or consular 
agent of the United States.
    (c) Examination and certification of testimony. At the time and 
place specified in said order the officer taking such deposition shall 
permit the witness to be examined and cross-examined under oath by all 
parties appearing, and the testimony shall be reduced to writing by, or 
under the direction of, the presiding officer. All objections to 
questions or evidence shall be deemed waived unless made in accordance 
with paragraph (d) of this section. The officer shall not have power to 
rule upon any objections but shall note them upon the deposition. The 
testimony shall be subscribed by the witness in the presence of the 
officer who shall attach a certificate stating that the witness was duly 
sworn, that the deposition is a true record of the testimony and 
exhibits given by the witness and that said officer is not counsel or 
attorney to any of the interested parties. The officer shall immediately 
seal and deliver an original and two copies of said transcript, together 
with the officer's certificate, by registered mail to the Foreign Claims 
Settlement Commission, Washington, DC 20579 or to the field office 
designated.
    (d) Admissibility in evidence. The deposition shall be admissible in 
evidence, subject to such objections to the questions and answers as 
were noted at the

[[Page 13]]

time of taking the deposition, or within ten (10) days after the return 
thereof, and would be valid were the witness personally present at the 
hearing.
    (e) Errors and irregularities. All errors or irregularities 
occurring shall be deemed waived unless a motion to suppress the 
deposition or some part thereof is made with reasonable promptness after 
such defect is, or with due diligence might have been, ascertained.
    (f) Scope of use. The deposition of a witness, if relevant, may be 
used if the Commission finds:
    (1) That the witness has died since the deposition was taken; or
    (2) that the witness is at a distance greater than 100 miles radius 
of Washington, DC, the designated field office or the designated place 
of the hearing; or
    (3) that the witness is unable to attend because of other good cause 
shown.
    (g) Interrogatories and cross-interrogatories. Depositions may also 
be taken and submitted on written interrogatories in substantially the 
same manner as depositions taken by oral examinations. When a deposition 
is taken upon interrogatories and cross-interrogatories, none of the 
parties shall be present or represented, and no person, other than the 
witness, such person's representative or attorney, a stenographic 
reporter and the presiding officer, shall be present at the examination 
of the witness, which fact shall be certified by such officer, who shall 
propound the interrogatories and cross-interrogatories to the witness in 
their order and reduce the testimony to writing in the witness' own 
words.
    (h) Fees. A witness whose deposition is taken pursuant to the 
regulations in this part, and the officer taking the deposition, shall 
be entitled to the same fees and mileage allowed and paid for like 
service in the United States District Court for the district in which 
the deposition is taken. Such fees shall be paid by the Commission or by 
the party at whose request the deposition is being taken.

[52 FR 17559, May 11, 1987, as amended at 52 FR 19731, May 27, 1987]



Sec. 501.6  Documentary evidence.

    Documentary evidence may consist of books, records, correspondence 
or other documents pertinent to any hearing, examination, or 
investigation within the jurisdiction of the Commission. The application 
for the issuance of subpoenas duces tecum shall specify the books, 
records, correspondence or other documents sought. The production of 
documentary evidence shall not be required at any place other than the 
witness' place of business. The production of such documents shall not 
be required at any place if, prior to the return date specified in the 
subpoena, such person either has furnished the issuer of the subpoena 
with a properly certified copy of such documents or has entered into a 
stipulation as to the information contained in such documents.



Sec. 501.7  Time.

    (a) Computation. In computing any period of time prescribed or 
allowed by the regulations, by order of the Commission, or by any 
applicable statute, the day of the act, event, or default after which 
the designated period of time begins to run is not to be included. The 
last day of the period so computed is to be included, unless it is a 
Saturday, Sunday or legal holiday, in which event the period runs until 
the end of the next day which is neither a Saturday, Sunday nor a 
holiday. When the period of time prescribed or allowed is less than 7 
days, intermediate Saturdays, Sundays and holidays shall be excluded in 
the computation.
    (b) Enlargement. When by the regulations in this chapter or by a 
notice given thereunder or by order of the Commission an act is required 
or allowed to be done at or within a specific time, the Commission for 
good cause shown may, at any time in its discretion (1) with or without 
motion, notice, or previous order or (2) upon motion, permit the act to 
be done after the expiration of the specified period.



PART 502--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents




Sec.
502.1  Adoption of regulations.

[[Page 14]]

502.2  Review of statements of employment and financial interests.
502.3  Disciplinary and other remedial action.
502.4  Gifts, entertainment, and favors.
502.5  Outside employment and other activity.
502.6  Specific provisions of agency regulations governing special 
          Government employees.
502.7  Statements of employment and financial interests.
502.8  Supplementary statements.

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supp., p. 130; 5 
CFR 735.101 et seq.

    Source: 52 FR 17560, May 11, 1987, unless otherwise noted.



Sec. 502.1  Adoption of regulations.

    Pursuant to 5 CFR 735.104(f), the Foreign Claims Settlement 
Commission of the United States (referred to hereinafter as ``the 
Commission'') hereby adopts the following sections of part 735 of title 
5, Code of Federal Regulations: Sections 735.101-102, 735.201a, 735.202 
(a), (d), (e), (f) through 735.210, 735.303(a), 735.304, 735.305(a), 
735.403(a), 735.404, 735.405, 735.407 through 735.411, 735.412 (b) and 
(d). These adopted sections are modified and supplemented as set forth 
in this part.



Sec. 502.2  Review of statements of employment and financial interests.

    Each statement of employment and financial interests submitted under 
this part shall be reviewed by the Commission's Designated Ethics 
Officer. When this review indicates a conflict between the interests of 
an employee or special Government employee of the Commission and the 
performance of such employee's services for the Government, the 
Designated Ethics Officer shall have the indicated conflict brought to 
the attention of the employee or special Government employee, grant the 
employee or special Government employee an opportunity to explain the 
indicated conflict, and attempt to resolve the indicated conflict. If 
the indicated conflict cannot be resolved, the Designated Ethics Officer 
shall forward a written report on the indicated conflict to the Chairman 
of the Commission through the counselor for the agency designated under 
5 CFR 735.105(a).



Sec. 502.3  Disciplinary and other remedial action.

    An employee or special Government employee of the Commission who 
violates any of the regulations in this part or adopted under Sec. 502.1 
may be disciplined. The disciplinary action may be in addition to any 
penalty prescribed by law for the violation. In addition to or in lieu 
of disciplinary action, remedial action to end conflicts or appearance 
of conflicts of interest may include but is not limited to:
    (a) Changes in assigned duties;
    (b) Divestment by the employee or special Government employee of the 
employee's conflicting interest; or
    (c) Disqualification for a particular assignment.



Sec. 502.4  Gifts, entertainment, and favors.

    The Commission authorizes the exceptions to 5 CFR 735.202(a) set 
forth in 5 CFR 735.202(b) (1) through (4).



Sec. 502.5  Outside employment and other activity.

    An employee of the Commission may engage in outside employment or 
other outside activity not incompatible with the full and proper 
discharge of the duties and responsibilities of such employee's 
Government employment; Provided, however, That no professional officer 
or employee of the Commission shall engage in the private practice of 
such officer or employee's profession, and no officer or employee, 
regardless of the nature of his or her duties with the Commission, shall 
engage in the private practice of law, except upon the prior approval in 
writing by the Chairman of the Commission.



Sec. 502.6  Specific provisions of agency regulations governing special Government employees.

    (a) Special Government employees of the Commission shall adhere to 
the standards of conduct applicable to employees as set forth in this 
part and adopted under Sec. 502.1, except 5 CFR 735.203(b).
    (b) Special Government employees of the Commission may teach, 
lecture, or write in a manner not inconsistent with 5 CFR 735.203(c).

[[Page 15]]

    (c) Pursuant to 5 CFR 735.305(b), the Commission authorizes the same 
exceptions concerning gifts, entertainment, and favors for special 
Government employees as are authorized for employees by Sec. 502.4.



Sec. 502.7  Statements of employment and financial interests.

    (a) In addition to the employees required to submit statements of 
employment and financial interests under 5 CFR 735.403(a), attorneys in 
charge of divisions shall submit statements of employment and financial 
interests.
    (b) Each statement of employment and financial interests required by 
this section shall be submitted to the Chairman of the Commission.
    (c) An employee who believes that his or her position has been 
improperly included in this section as one requiring the submission of a 
statement of employment and financial interests may obtain a review 
thereof under the Commission's grievance procedure.



Sec. 502.8  Supplementary statements.

    Notwithstanding the filing of the annual supplementary statement 
required by 5 CFR 735.406, each employee shall at all times avoid 
acquiring a financial interst that could result, or taking an action 
that would result, in a violation of the conflicts-of-interest 
provisions of section 208 of title 18, United States Code, or the 
regulations in this part or adopted under Sec. 502.1.



PART 503--PUBLIC INFORMATION--Table of Contents




Sec.
503.1  Organization and authority--Foreign Claims Settlement Commission.
503.2  Material to be published in the Federal Register pursuant to 
          Public Law 89-487.
503.3  Effect of nonpublication.
503.4  Incorporation by reference.
503.5  Records generally available.
503.6  Current index.
503.7  Additional documents and records generally available for 
          inspection and copying.
503.8  Effect of noncompliance.
503.9  Availability of records.
503.10  Actions on requests.
503.11  Appeals.
503.12  Exemptions.
503.13  Fees for services.

    Authority: 5 U.S.C. 552.

    Source: 52 FR 17561, May 11, 1987, unless otherwise noted.



Sec. 503.1  Organization and authority--Foreign Claims Settlement Commission.

    (a) The Foreign Claims Settlement Commission of the United States 
(``the Commission'') is an independent agency of the Federal Government 
created by Reorganization Plan No. 1 of 1954 (68 Stat. 1279) effective 
July 1, 1954. The Commission was transferred to the Department of 
Justice as an independent agency within that Department as of October 1, 
1980, under the terms of Public Law 96-209, approved March 14, 1980 (94 
Stat. 96, 22 U.S.C. 1622c). Its duties and authority are defined in the 
International Claims Settlement Act of 1949, as amended (64 Stat. 12, 22 
U.S.C. 1621-1645o) and the War Claims Act of 1948 (62 Stat. 1240, 50 
U.S.C. App. 2001-2017p).
    (b) The Commission has jurisdiction to determine claims of United 
States nationals against foreign governments for compensation for losses 
and injuries sustained by such nationals, pursuant to programs which may 
be authorized under either of said Acts. Available funds have their 
sources in international settlements or liquidation of foreign assets in 
this country by the Department of Justice or Treasury, and from public 
funds when provided by the Congress.
    (c) The Chairman and the two part-time members of the Commission are 
appointed by the President with the advice and consent of the Senate to 
serve for 3-year terms of office as provided by Public Law 96-209, 
supra.
    (d) All functions of the Commission are vested in the Chairman with 
respect to the internal management of the affairs of the Commission, 
including but not limited to:
    (1) The appointment of personnel employed under the Commission;
    (2) The direction of employees of the Commission and the supervision 
of their official duties;
    (3) The distribution of business among employees and organizational 
units under the Commission;
    (4) The preparation of budget estimates; and

[[Page 16]]

    (5) The use and expenditures of funds of the Commission available 
for expenses of administration.
    (e) Requests for records shall be made in writing by mail or 
presented in person to the Administrative Officer, Foreign Claims 
Settlement Commission, Washington, DC, 20579.
    (f) The offices of the Commission are located at 1111 20th Street 
NW. (Vanguard Building), 4th Floor, Washington, DC.



Sec. 503.2  Material to be published in the Federal Register pursuant to Public Law 89-487.

    The Commission shall separately state and concurrently publish the 
following materials in the Federal Register for the guidance of the 
public:
    (a) Descriptions of its central and field organization and the 
established places at which, the officers from whom, and the methods 
whereby, the public may secure information, make submittals or requests, 
or obtain decisions.
    (b) Statements of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available.
    (c) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports, or examinations.
    (d) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by the agency.
    (e) Every amendment, revision, or repeal of the foregoing.



Sec. 503.3  Effect of nonpublication.

    Except to the extent that a person has actual and timely notice of 
the terms thereof, no person shall in any manner be required to resort 
to, or be adversely affected by, any matter required to be published in 
the Federal Register and not so published.



Sec. 503.4  Incorporation by reference.

    For purposes of this part, matter which is reasonably available to 
the class of persons affected thereby shall be deemed published in the 
Federal Register when incorporated by reference therein with the 
approval of the Director of the Federal Register.



Sec. 503.5  Records generally available.

    The Commission will make promptly available to any member of the 
public the following documents:
    (a) Proposed and Final Decisions (including dissenting opinions) and 
all orders made with respect thereto;
    (b) Statements of policy and interpretations which have been adopted 
by the Commission which have not been published in the Federal Register; 
and
    (c) A current index, which shall be updated at least quarterly, 
covering the foregoing material adopted, issued or promulgated after 
July 4, 1967. Publication of an index is deemed both unnecessary and 
impractical. However, copies of the index are available upon request for 
a fee of the direct cost of duplication.



Sec. 503.6  Current index.

    The Commission shall maintain and make available for public 
inspection and copying, current indexes providing identifying 
information for the public as to any matter issued, adopted, or 
promulgated after July 4, 1967, as required by 5 U.S.C. 552(a)(2).



Sec. 503.7  Additional documents and records generally available for inspection and copying.

    The following kinds of documents are also available for inspection 
and copying in the offices of the Commission:
    (a) Rules of practice and procedure.
    (b) Annual report of the Commission to the Congress of the United 
States.
    (c) Bound volumes of Commission decisions.
    (d) International Claims Settlement Act of 1949, with amendments; 
the War Claims Act of 1948, with amendments; and related Acts.
    (e) Claims agreements with foreign governments effecting the 
settlement of claims under the jurisdiction of the Commission.
    (f) Press releases and other miscellaneous material concerning 
Commission operations.

[[Page 17]]

    (g) Indexes of claims filed under the various claims programs 
administered by the Commission.



Sec. 503.8  Effect of noncompliance.

    No decision, statement of policy, interpretation, or staff manual or 
instruction that affects any member of the public will be relied upon, 
used, or cited as precedent by the Commission against any private party 
unless it has been indexed and either made available or published as 
provided by this part, or unless that private party shall have actual 
and timely notice of the terms thereof.



Sec. 503.9  Availability of records.

    (a) Each person desiring access to a record covered by this part 
must comply with the following provisions:
    (1) A written request must be made for the record.
    (2) Such request must indicate that it is being made under the 
Freedom of Information Act.
    (3) The envelope in which the request is sent must be prominently 
marked with the letters ``FOIA''.
    (4) The request must be addressed to the appropriate official or 
employee of the Commission as set forth in paragraph (c) of this 
section.
    (5) The foregoing requirements must be complied with whether the 
request is mailed or hand-delivered to the Commission.
    (b) If the requirements of paragraph (a) of this section are not 
met, the ten day time limit described in Sec. 503.10(a) will not begin 
to run until the request has been identified by an official or employee 
of the Commission as a request under the Freedom of Information Act and 
has been received by the appropriate official or employee of the 
Commission.
    (c) Each person desiring access to a record covered in this part 
that is located in the Commission, or to obtain a copy of such a record, 
must make a written request to the Administrative Officer, Foreign 
Claims Settlement Commission, 1111 20th Street NW., Washington, DC 
20579.
    (d) Each request should reasonably describe the particular record 
requested. The request should specify the subject matter, the date when 
it was made and the person or office that made it. If the description is 
insufficient, the official or employee handling the request may notify 
the person making the request and, to the extent possible, indicate the 
additional data required.
    (e) Each record made available under this section is available for 
inspection and copying during regular working hours. Original documents 
may be copied but may not be released from custody.
    (f) Authority to administer this part in connection with Commission 
records is delegated to the Administrative Officer or the Commission 
employee acting in that official's capacity.



Sec. 503.10  Actions on requests.

    (a) The Administrative Officer or any employee acting in that 
official's capacity shall determine within ten days (excepting 
Saturdays, Sundays, and legal public holidays) after the receipt of any 
such request whether to comply with such request. Upon receipt of a 
request for a Commission record which is available, thu Administrative 
Officer or other employee shall notify the requester as to the time the 
record is available, and shall promptly make the record available after 
advising such requester of the applicable fees under Sec. 503.13. The 
person making such request shall be notified immediately after any 
adverse determination, the reasons for making such adverse determination 
and the right of such person to appeal.
    (b) Any denial of a request for a record shall be written and signed 
by the Administrative Officer or other employee, including a statement 
of the reason for denial. Such statement shall contain, as applicable:
    (1) A reference to the specific exemption under the Freedom of 
Information Act authorizing the withholding of a record, and to the 
extent consistent with the purpose of the exemption, an explanation of 
how the exemption applies to the record withheld.
    (2) If a record requested does not exist or has been legally 
disposed of, the requester shall be so notified.
    (c) In unusual circumstances, the time limit prescribed in paragraph 
(a) may be extended by written notice to

[[Page 18]]

the person making such request setting forth the reasons for such 
extension and the date on which a determination is expected to be 
dispatched. No such notice shall specify a date that would result in an 
extension for more than ten working days. As used in this paragraph, 
``unusual circumstances'' means, but only to the extent reasonably 
necessary to the proper processing of the particular request--
    (1) The need to search for and collect the requested records from 
other establishments that are separate from the office processing the 
request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more components of the 
agency having substantial subject-matter interest therein.
    (d) With respect to determinations on appeals, such determinations 
shall be made within twenty days (excepting Saturdays, Sundays, and 
legal holidays) after the receipt of such appeal. If, on appeal, the 
denial of the request for records is in whole or in part upheld, the 
person making such request shall be notified of the provisions for 
judicial review of that determination under section 552(a)(4) of title 
5, United States Code.



Sec. 503.11  Appeals.

    (a) Any person to whom a record has not been made available within 
the time limits established by paragraph (d) of Sec. 503.10, and any 
person who has been given an adverse determination pursuant to paragraph 
(b) of Sec. 503.10, that a requested record will not be disclosed, may 
apply to the Chairman of the Commission, or in the Chairman's absence an 
officer or employee designated by the Chairman, for reconsideration of 
the request. A determination that a record will not be disclosed is not 
administratively final for the purpose of judicial review unless it was 
made by the Chairman or Chairman's designee, unless the applicable time 
limit has passed without a determination of the appeal having been made.
    (b) Each application for reconsideration must be made in writing 
within thirty days from the date of receipt of the original denial and 
must include all information and arguments relied upon by the person 
making the request. Such application must indicate that it is an appeal 
from a denial of a request made under the Freedom of Information Act. 
The envelope in which the application is sent must be prominently marked 
with the letters ``FOIA''. If these requirements are not met, the twenty 
day limit described in Sec. 503.10 will not begin to run until the 
application has been identified as an application under the Freedom of 
Information Act and has been received by the appropriate office.
    (c) Whenever it is to be determined necessary, the person making the 
request may be required to furnish additional information, or proof of 
factual allegations and other proceedings appropriate in the 
circumstances may be ordered. The decision of the Chairman or Chairman's 
designee as to the availability of the record is administratively final.
    (d) The decision not to disclose a record under this part is 
considered to be a withholding for the purposes of section 552(a)(3) of 
title 5, United States Code.



Sec. 503.12  Exemptions.

    In the event any document or record requested hereunder shall 
contain material which is exempt from disclosure under this section, any 
reasonably segregable portion of such record shall, notwithstanding such 
fact, and to the extent feasible, be provided to any person requesting 
same, after deletion of the portions which are exempt under this 
section. Documents or records determined to be exempt from disclosure 
hereunder may nonetheless be provided upon request in the event it is 
determined that the provision of such document would not violate the 
public interest or the right of any person to whom such information may 
pertain, and the disclosure is not prohibited by law or Executive Order. 
The following categories of records are exempt from

[[Page 19]]

disclosure under the provisions of 5 U.S.C. 552(b):
    (a) Records which are specifically required by Executive Order to be 
kept secret in the interest of national defense or foreign policy and 
are in fact properly classified pursuant to such Executive Order. This 
exception may apply to records in the custody of the Commission which 
have been transmitted to the Commission by another agency which has 
designated the record as nonpublic under Executive Order.
    (b) Records related solely to the internal personnel rules and 
practices of the Commission.
    (c) Records specifically exempted from disclosure by statute.
    (d) Information given in confidence. This includes information 
obtained by or given to the Commission which constitutes confidential 
commercial or financial information, privileged information, or other 
information which was given to the Commission in confidence or would not 
customarily be released by the person from whom it was obtained.
    (e) Inter-agency or intra-agency memoranda or letters which would 
not be available by law to a private party in litigation with the 
Commission. Such communications include inter-agency memoranda, drafts, 
staff memoranda transmitted to the Commission, written communications 
between the Commission and its staff regarding the preparation of 
Commission decisions, other documents received or generated in the 
process of issuing a decision or regulation, and reports and other work 
papers of staff attorneys, accountants, and investigators.
    (f) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy.
    (g) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (1) Could reasonably be expected to interfere with enforcement 
proceedings;
    (2) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (3) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (4) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation, or by an agency conducting a lawful security intelligence 
investigation, information furnished by a confidential source;
    (5) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions if such disclosure could reasonably be 
expected to risk circumvention of the law; or
    (6) Could reasonably be expected to endanger the life or physical 
safety of any individual.



Sec. 503.13  Fees for services.

    The following provisions shall apply in the assessment and 
collection of fees for services rendered in processing requests for 
disclosure of Commission records under this part.
    (a) Fee for duplication of records. $0.15 per page.
    (b) Search and review fees. (1) Searches for records by clerical 
personnel--$2.00 per quarter hour, including time spent searching for 
and copying any record.
    (2) Search for and review of records by professional and supervisory 
personnel--$5.50 per quarter hour spent searching for any record or 
reviewing a record to determine whether it may be disclosed, including 
time spent in copying any record.
    (c) Certification and validation fee. $1.00 for each certification, 
validation or authentication of a copy of any record.
    (d) Imposition of fees. (1) Commercial use requests--Where a request 
appears to seek disclosure of records for a commercial use, the 
requester shall be charged for the time spent by Commission personnel in 
searching for the requested record and in reviewing the record to 
determine whether it should be disclosed, and for the cost of each page 
of duplication. ``Commercial use''

[[Page 20]]

is defined as a use or purpose that furthers the commercial, trade or 
profit interests of the requester or the person on whose behalf the 
request is made. The request also must reasonably identify the records 
sought.
    (2) Requests from representatives of news media--Where a request 
seeks disclosure of records to a representative of the news media, the 
requester shall be charged only for the actual duplication cost of the 
records and only to the extent that the number of duplications exceeds 
100 pages; provided, however, that the request must reasonably describe 
the records sought, and it must appear that the records are for use by 
the requester in such person's capacity as a news media representative. 
``Representative of the news media'' refers to any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term ``news'' means information 
that is about current events or that would be of current interest to the 
public. A ``freelance'' journalist not actually employed by a news 
organization shall be eligible for inclusion under this category if such 
person can demonstrate a solid basis for expecting publication by a news 
organization.
    (3) Requests from educational and non-commercial scientific 
institutions--Where a request seeks disclosure of records to an 
educational or non-commercial scientific institution, the requester 
shall be charged only for the actual duplication cost of the records and 
only to the extent that the number of duplications exceeds 100 pages; 
provided, however, that the request must reasonably describe the records 
sought and it must appear that the records are to be used by the 
requester in furtherance of its educational or non-commercial scientific 
research programs. ``Educational institution'' refers to a preschool, a 
public or private elementary or secondary school, or an institution of 
undergraduate, graduate, professional or vocational education, which 
operates a program or programs of scholarly research. ``Non-commercial 
scientific institution'' refers to an institution that is not operated 
on a ``commercial'' basis, within the meaning of paragraph (d)(1) of 
this section and which is operated solely for the purpose of conducting 
scientific research, the results of which are not intended to promote 
any particular product or industry.
    (4) All other requests--Where a request seeks disclosure of records 
to a person or entity other than one coming within paragraphs (d) (1), 
(2) and (3) of this section, the requester shall be charged the full 
cost of search and duplication. However, the first two hours of search 
time and the first 100 pages of duplication shall be furnished without 
charge.
    (e) Aggregating of requests. If there exists a solid basis for 
concluding that a requester or group of requesters has submitted a 
series of partial requests for disclosure of records in an attempt to 
evade assessment of fees, the requests may be aggregated so as to 
constitute a single request, with fees charged accordingly.
    (f) Unsuccessful searches. Except as provided in paragraph (d) of 
this section, the cost of searching for a requested record shall be 
charged even if the search fails to locate such record or it is 
determined that the record is exempt from disclosure.
    (g) Interest. In the event a requester fails to remit payment of 
fees charged for processing a request under this part within 30 days 
from the date such fees were billed, interest on such fees may be 
assessed beginning on the 31st day after the billing date, to be 
calculated at the rate prescribed in section 3717 of title 31, United 
States Code.
    (h) Advance payments. (1) If, but only if, it is estimated or 
determined that processing of a request for disclosure of records will 
result in a charge of fees of more than $250.00, the requester may be 
required to pay the fees in advance in order to obtain completion of 
such processing.
    (2) If a requester has previously failed to make timely payment 
(i.e., within 30 days of billing date) of fees charged under this part, 
the requester may be required to pay such fees and interest accrued 
thereon, and to make an advance payment of the full amount of estimated 
fees chargeable in connection with any pending or new request, in order 
to obtain processing of such pending or new request.

[[Page 21]]

    (3) With regard to any request coming within paragraphs (h) (1) and 
(2) of this section, the administrative time limits set forth in 
Secs. 503.10 and 503.11 of this part will begin to run only after the 
requisite fee payments have been received.
    (i) Non-payment. In the event of non-payment of billed charges for 
disclosure of records, the provisions of the Debt Collection Act of 1982 
(Pub. L. 97-365), including disclosure to consumer credit reporting 
agencies and referral to collection agencies, may be utilized to obtain 
payment.
    (j) Waiver or reduction of charges. Fees otherwise chargeable in 
connection with a request for disclosure of a record shall be waived or 
reduced where--
    (1) It is determined that disclosure is in the public interest 
because it is likely to contribute significantly to public understanding 
of the operations or activities of the government and is not primarily 
in the commercial interest of the requester; or
    (2) It is determined that the cost of collection would be equal to 
or exceed the amount of such fees. No charges shall be assessed if such 
fees amount to $8.00 or less.



PART 504--PRIVACY ACT AND GOVERNMENT IN THE SUNSHINE REGULATIONS--Table of Contents




                   Subpart A--Privacy Act Regulations

504.1   Definitions--Privacy Act.
504.2  General policies--Privacy Act.
504.3  Conditions of disclosure.
504.4  Accounting of certain disclosures.
504.5  Access to records or information
504.6  Determination of requests for access to records.
504.7  Amendment of a record.
504.8  Appeals from denial of requests for amendment to records.
504.9  Fees.
504.10  Exemptions.
504.11  Reports.
504.12  Notices.

            Subpart B--Government in the Sunshine Regulations

504.20  Definitions.
504.21  Notice of public observation.
504.22  Scope of application.
504.23  Open meetings.
504.24  Grounds for closing a meeting.
504.25  Announcement of meetings.
504.26  Procedures for closing of meetings.
504.27  Reconsideration of opening or closing, or rescheduling a 
          meeting.
504.28  Record of closed meetings, or closed portion of a meeting.
504.29  Requests for information.

    Source: 52 FR 17565, May 11, 1987, unless otherwise noted.



                   Subpart A--Privacy Act Regulations

    Authority: 5 U.S.C. 552a(f).



Sec. 504.1   Definitions--Privacy Act.

    For the purpose of this part:
    Agency includes any executive department, military department, 
government corporation, government controlled corporation, or other 
establishment in the executive branch of the government (including the 
Executive Office of the President) or any independent regulatory agency. 
The Foreign Claims Settlement Commission (Commission) is an agency 
within the meaning of the term.
    Individual means a citizen of the United States or an alien lawfully 
admitted for permanent residence.
    Maintain includes maintain, collect, use or disseminate.
    Record means any item, collection, or grouping of information about 
an individual that is maintained by an agency, including, but not 
limited to, an individual's education, financial transactions, medical 
history, and criminal or employment history, and that contains an 
individual's name, or the identifying number, symbol, or other 
identifying particular assigned to the individual, such as a finger or 
voice print or a photograph.
    Routine use means, with respect to the disclosure of a record, the 
use of such record for a purpose which is compatible with the purpose 
for which it was collected.
    Statistical record means a record in a system of records maintained 
for statistical research or reporting purposes only and not used in 
whole or in part in making any determination about an identifiable 
individual except as provided by section 8 of Title 13, United States 
Code.

[[Page 22]]

    System of records means a group of any records under the control of 
any agency from which information is retrieved by the name of the 
individual or by some identifying number, symbol, or other identifying 
particular assigned to the individual.



Sec. 504.2  General policies--Privacy Act.

    The Commission will protect the privacy of an individual identified 
in any information or record systems which it maintains. Accordingly, 
its officials and employees, except as otherwise provided by law or 
regulation, will:
    (a) Permit an individual to determine what records pertaining to 
such individual are collected, maintained, used or disseminated by the 
Commission.
    (b) Permit an individual to prevent a record pertaining to such 
individual obtained by the Commission for a particular purpose from 
being used or made available for another purpose without the 
individual's consent.
    (c) Permit an individual to gain access to information pertaining to 
such individual in Commission records, to have a copy made of all or any 
portion thereof, and to correct or amend such records.
    (d) Collect, maintain, use, or disseminate any record of 
identifiable personal information in a manner that assures that such 
action is for a necessary and lawful purpose, that the information is 
current and accurate for its intended use, and that adequate safeguards 
are provided to prevent misuse of such information.
    (e) Permit exemptions from record requirements provided under the 
Privacy Act only where an important public policy use for such exemption 
has been determined in accordance with specific statutory authority.



Sec. 504.3  Conditions of disclosure.

    The Commission will not disclose any record contained in a system of 
records by any means of communication to any person or any other agency 
except by written request of or prior written consent of the individual 
to whom the record pertains unless such disclosure is:
    (a) To those officers and employees of the Commission who have a 
need for the record in the performance of their duties;
    (b) Required under the Freedom of Information Act, 5 U.S.C. 552;
    (c) For a routine use;
    (d) To the Bureau of Census for purposes of planning or carrying out 
a census or survey or related activity under the provisions of Title 13, 
United States Code;
    (e) To a recipient who has provided the Commission with adequate 
advance assurance that the record will be used solely as a statistical 
research or reporting record, and the record is to be transferred in a 
form that is not individually identifiable;
    (f) To the National Archives of the United States as a record which 
has sufficient historical or other value to warrant its continued 
preservation by the United States Government or for evaluation to 
determine whether the record has such value;
    (g) To another agency or to an instrumentality of any government 
jurisdiction within or under control of the United States for a civil or 
criminal law enforcement activity authorized by law, provided the head 
of the agency or instrumentality has made a prior written request to the 
Commission, specifying the particular record and the law enforcement 
activity for which it is sought;
    (h) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual if upon such disclosure, 
notification is transmitted to the last known address of such 
individual;
    (i) To either House of Congress, or, to the extent of matter within 
its jurisdiction, any committee or subcommittee thereof, any joint 
committee of Congress or subcommittee of any such joint committee;
    (j) To the Comptroller General, or any of that official's authorized 
representatives, in the course of the performance of the duties of the 
General Accounting Office; or
    (k) Pursuant to the order of a court of competent jurisdiction.

[[Page 23]]



Sec. 504.4  Accounting of certain disclosures.

    (a) Except for disclosures under Sec. 504.3 (a) and (b) of this 
part, the Administrative Officer shall keep an accurate accounting of 
each disclosure of a record to any person or to another agency made 
under Sec. 504.3 (c), (d), (e), (f), (g), (h), (i), (j), and (k) of this 
part.
    (b) Except for a disclosure made to another agency or to an 
instrumentality of any governmental jursidiction under Sec. 504.3(g) of 
this part, the Administrative Officer shall make the accounting as 
required under paragraph (a) of this section available to any individual 
upon written request made in accordance with Sec. 504.5.
    (c) The Administrative Officer shall inform any person or other 
agency about any correction or notation of dispute made in accordance 
with Sec. 504.7 of this part of any record that has been disclosed to 
the person or agency if an accounting of the disclosure was made.
    (d) An accounting of disclosures of records within this section 
shall consist of the date, nature, the purpose of each disclosure of a 
record to any person or to another agency, and the name and address of 
the person or agency to whom the disclosure is made.
    (e) Such accounting shall be retained for 5 years or the life of the 
record, whichever is longer, after the disclosure for which the 
accounting is made.



Sec. 504.5  Access to records or information

    (a) Upon request in person or by mail, any individual shall be 
informed whether or not a system of records maintained by the Commission 
contains a record or information pertaining to such individual.
    (b) Any individual requesting access to such record or information 
in person shall appear in person at the offices of the Foreign Claims 
Settlement Commission, 1111 20th Street, NW., Room 400, Washington, DC., 
between the hours of 8:30 a.m. and 5 p.m., Monday through Friday, and
    (1) Provide information sufficient to identify the record, e.g., the 
individual's own name, claim and decision number, date and place of 
birth, etc.;
    (2) Provide identification to verify the individual's identity, 
e.g., driver's license, identification or Medicare card; and
    (3) Any individual requesting access to records or information 
pertaining to such individual may be accompanied by a person of the 
individual's own choosing while reviewing the record thereof. If an 
individual elects to be so accompanied, advance notification of the 
election shall be required along with a written statement authorizing 
disclosure and discussion of the record in the presence of the 
accompanying person at any time, including the time access is granted.
    (c) Any individual making a request for access to records or 
information pertaining to such individual by mail shall address such 
request to the Administrative Officer (Privacy Officer), Foreign Claims 
Settlement Commission, 1111 20th Street, NW., Washington, DC 20579, and 
shall provide information acceptable to the Administrative Officer to 
verify the individual's identity.
    (d) Responses to requests under this section normally will be made 
within ten (10) days of receipt (excluding Saturdays, Sundays, and legal 
holidays). If it is not possible to respond to requests within such 
period, an acknowledgement will be sent to the individual within ten 
(10) days of receipt of the request (excluding Saturdays, Sundays, and 
legal holidays).



Sec. 504.6  Determination of requests for access to records.

    (a) Upon request made in accordance with Sec. 504.5, the 
Administrative Officer shall:
    (1) Determine whether or not such request will be granted;
    (2) Make such determination and provide notification within a 
reasonable period of time after receipt of such request.
    (b) If access to a record is denied because information has been 
compiled by the Commission in reasonable anticipation of a civil or 
criminal action or proceeding, the Administrative Officer shall notify 
the individual of such determination and the reason therefor.
    (c) If access to the record is granted, the individual making such 
request shall notify the Administrative Officer

[[Page 24]]

whether the records requested are to be copied and mailed to the 
individual.
    (d) If records are to be made available for personal inspection, the 
individual shall arrange with the Administrative Officer a mutually 
agreeable time and place for inspection of the record.



Sec. 504.7  Amendment of a record.

    (a) Any individual may request amendment of a record pertaining to 
such individual according to the procedure in paragraph (b) of this 
section except those records described under paragraph (d) of this 
section.
    (b) After inspection by an individual of a record pertaining to such 
individual, he or she may file a written request, presented in person or 
by mail, with the Administrative Officer, for an amendment to a record. 
Such request shall specify the particular portions of the record to be 
amended, the desired amendments and the reasons therefor.
    (c) Not later than 10 days (excluding Saturdays, Sundays, and legal 
holidays) after the receipt of a request made in accordance with this 
section to amend a record in whole or in part, the Administrative 
Officer shall:
    (1) Make any correction of any portion of the record which the 
individual believes is not accurate, relevant, timely or complete and 
thereafter inform the individual of such correction; or
    (2) Inform the individual, by certified mail return receipt 
requested, of the refusal to amend such record, setting forth the 
reasons therefor, and notify the individual of the right to appeal that 
determination as provided under Sec. 504.8 of this part.
    (d) The provisions for amending records do not permit the alteration 
of evidence presented in the course of Commission proceedings in the 
adjudication of claims, nor do they permit collateral attack upon what 
has already been subject to final agency action in the adjudication of 
claims in programs previously completed by the Commission pursuant to 
statutory time limitations.



Sec. 504.8  Appeals from denial of requests for amendment to records.

    (a) An individual whose request for amendment of a record pertaining 
to such individual is denied may request a review of such determination. 
Such request shall be addressed to the Chairman of the Commission, and 
shall specify the reasons for which the refusal to amend is challenged.
    (b) If on appeal the refusal to amend the record is upheld, the 
Commission shall permit the individual to file a statement setting forth 
the reasons for disagreement with the determination. The statement must 
also be submitted within 30 days of receipt of the denial. The statement 
shall be included in the system of records in which the disputed record 
is maintained and shall be marked so as to indicate (1) that a statement 
of disagreement has been filed, and (2) where in the system of records 
the statement may be found.



Sec. 504.9  Fees.

    Fees to be charged, if any, to any individual for making copies of 
such individual's record excluding the cost of any search for and review 
of the record shall be as follows:
    (a) Photocopy reproductions, each copy $0.15.
    (b) Where the Commission undertakes to perform for a requester, or 
any other person, services which are clearly not required to be 
performed under the Privacy Act, either voluntarily or because such 
services are required by some other law, the question of charging fees 
for such services shall be determined by the official or designee 
authorized to release the information, under the Federal user charge 
statute, 31 U.S.C. 583a, any other applicable law, and the provisions of 
Sec. 503.13 of part 503 of the Commission's regulations.



Sec. 504.10  Exemptions.

    No system of records maintained by the Foreign Claims Settlement 
Commission is exempt from the provisions of 5 U.S.C. 552a as permitted 
under certain conditions by 5 U.S.C. 552a (j) and (k). However, the 
Chairman of the

[[Page 25]]

Commission reserves the right to promulgate rules in accordance with the 
requirements of 5 U.S.C. 553(b) (1), (2) and (3), (c) and (e) to exempt 
any system of records maintained by the Commission in accordance with 
the provisions of 5 U.S.C. 552a(k).



Sec. 504.11  Reports.

    (a) The Administrative Officer or designee shall provide adequate 
advance notice to Congress and the Office of Management and Budget of 
any proposal to establish or alter any Commission system of records, as 
required by 5 U.S.C. 552a(o).
    (b) If at any time a system of records maintained by the Commission 
is determined to be exempt from the application of 5 U.S.C. 552a in 
accordance with the provisions of 5 U.S.C. 552a (j) and (k), the number 
of records contained in such system shall be separately listed and 
reported to the Office of Management and Budget.



Sec. 504.12  Notices.

    The Commission shall publish in the Federal Register at least 
annually a notice of the existence and character of the systems of 
records which it maintains. Such notice shall include:
    (a) The name and location of each system;
    (b) The categories of individuals on whom the records are maintained 
in each system;
    (c) The categories of records maintained in each system;
    (d) Each routine use of the records contained in each system 
including the categories of users and the purpose of each use;
    (e) The policies and practices of the Commission regarding storage, 
retrievability, access controls, retention, and disposal of the records;
    (f) The title and business address of the agency official who is 
responsible for each system of records;
    (g) Commission procedures whereby an individual can be notified if a 
system of records contains a record pertaining to such individual;
    (h) Commission procedures whereby an individual can be notified how 
to gain access to any record pertaining to such individual contained in 
a system of records, and how to contest its content, and
    (i) The categories of sources of records in each system.



            Subpart B--Government in the Sunshine Regulations

    Authority: 5 U.S.C. 552b.



Sec. 504.20  Definitions.

    For purposes of this part: Agency means any agency, as defined in 5 
U.S.C. 552b(e), which includes the Foreign Claims Settlement Commission, 
headed by a collegial body composed of two or more individual members, a 
majority of whom are appointed by the President with the advice and 
consent of the Senate, and any subdivision thereof authorized to act on 
behalf of the agency;
    Closed meeting and closed portion of a meeting mean, respectively, a 
meeting or that part of a meeting designated as provided in Sec. 504.27 
as closed to the public by reason of one or more of the closure 
provisions listed in Sec. 504.24.
    Commission means the Foreign Claims Settlement Commission, which is 
a collegial body that functions as a unit composed of three individual 
members, appointed by the President with the advice and consent of the 
Senate.
    Meeting means the deliberations of at least two (quorum) members of 
the Commission where such deliberations determine or result in joint 
conduct or disposition of official Commission business.
    Member means any one of the three members of the Commission.
    Open meeting means a meeting or portion of a meeting which is not a 
closed meeting or a closed portion of a meeting.
    Public observation means the right of any member of the public to 
attend and observe, but not participate or interfere in any way, in an 
open meeting of the Commission within the limits of reasonable and 
comfortable accommodations made available for such purpose by the 
Commission.



Sec. 504.21  Notice of public observation.

    (a) A member of the public is not required to give advance notice of 
an intention to exercise the right of public

[[Page 26]]

observation of an open meeting of the Commission. However, in order to 
permit the Commission to determine the amount of space and number of 
seats which must be made available to accommodate individuals who desire 
to exercise the right of public observation, such individuals are 
requested to give notice to the Commission at least two business days 
before the start of the open meeting of the intention to exercise such 
right.
    (b) Notice of intention to exercise the right of public observation 
may be given in writing, in person, or by telephone to the official 
designated in Sec. 504.29.
    (c) Individuals who have not given advance notice of intention to 
exercise the right of public observation will not be permitted to attend 
and observe the open meeting of the Commission if the available space 
and seating are necessary to accommodate individuals who gave advance 
notice of such intention.



Sec. 504.22  Scope of application.

    The provisions of this part 504, Secs. 504.20 through 504.29, apply 
to meetings of the Commission, and do not apply to conferences or other 
gatherings of employees of the Commission who meet or join with others, 
except at meetings of the Commission to deliberate on or conduct 
official agency business.



Sec. 504.23  Open meetings.

    Every meeting of the Commission shall be open to public observation 
except as provided in Sec. 504.24.



Sec. 504.24  Grounds for closing a meeting.

    (a) Except in a case where the Commission determines otherwise, a 
meeting or portion of a meeting may be closed to public observation 
where the Commission determines that the meeting or portion of the 
meeting is likely to:
    (1) Disclose matters that are (i) specifically authorized under 
criteria established by an Executive order to be kept secret in the 
interests of national defense or foreign policy and (ii) in fact 
properly classified pursuant to such Executive order;
    (2) Relate solely to the internal personnel rules and practices of 
the Commission;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552) provided that such statute (i) 
requires that the matters be withheld from the public in such a manner 
as to leave no discretion on the issue, or (ii) establishes particular 
criteria for withholding or refers to particular types of matters to be 
withheld;
    (4) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (5) Involve accusing any person of a crime, or formally censuring 
any person;
    (6) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would (i) interfere with enforcement proceedings, (ii) 
deprive a person of a right to a fair trial or an impartial 
adjudication, (iii) constitute an unwarranted invasion of personal 
privacy, (iv) disclose the identity of a confidential source and, in the 
case of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, confidential information 
furnished only by the confidential source, (v) disclose investigative 
techniques and procedures, or (vi) endanger the life or physical safety 
of law enforcement personnel;
    (8) Disclose information contained in or related to examination, 
operating, or condition reports prepared by, on behalf of, or for the 
use of the Commission;
    (9) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed action of 
the Commission, provided the Commission has not already disclosed to the 
public the content or nature of its proposed

[[Page 27]]

action, or is not required by law to make such disclosure on its own 
initiative prior to taking final action on such proposal; or
    (10) Specifically concern the Commission's issuance of a subpoena or 
the Commission's participation in a civil action or proceeding, an 
action in a foreign court or international tribunal, or an arbitration, 
or the initiation, conduct, or disposition by the Commission of a 
particular case of formal agency adjudication pursuant to the procedures 
in section 554 of Title 5, United States Code, or otherwise involve a 
determination on the record after opportunity for a hearing.
    (b) If the Commission determines that the public interest would 
require that a meeting to be open, it may nevertheless so hold.



Sec. 504.25  Announcement of meetings.

    (a) The Commission meets in its offices at 1111 20th Street, NW., 
Washington, DC, from time to time as announced by timely notice 
published in the Federal Register.
    (b) At the earliest practicable time, which is estimated to be not 
later than eight days before the beginning of a meeting of the 
Commission, the Commission shall make available for public inspection in 
its offices, and, if requested, shall furnish by telephone or in 
writing, a notice of the subject matter of the meeting, except to the 
extent that such information is exempt from disclosure under the 
provisions of Sec. 504.24.



Sec. 504.26  Procedures for closing of meetings.

    (a) The closing of a meeting shall occur when:
    (1) A majority of the membership of the Commission votes to take 
such action. A separate vote of the Commission members shall be taken 
with respect to each Commission meeting a portion or portions of which 
are proposed to be closed to the public pursuant to Sec. 504.24, or with 
respect to any information which is proposed withheld under Sec. 504.24. 
A single vote may be taken with respect to a series of meetings, a 
portion or portions of which are proposed to be closed to the public, or 
with respect to any information concerning such series of meetings, so 
long as each meeting in such series involves the same particular matters 
and is scheduled to be held no more than thirty days after the initial 
meeting in such series. The vote of each Commission member participating 
in such vote shall be recorded and no proxies shall be allowed.
    (2) Whenever any person whose interests may be directly affected by 
a portion of a meeting requests that the Commission close such portion 
to the public for any of the reasons referred to in Sec. 504.24 (e), (f) 
or (g), the Commission upon request of any one of its Commission 
members, shall take a recorded vote, whether to close such portion of 
the meeting.
    (b) Within one day of any vote taken, the Commission shall make 
publicly available a written copy of such vote reflecting the vote of 
each member on the question and a full written explanation of its action 
closing the entire or portion of the meeting together with a list of all 
persons expected to attend the meeting and their affiliation.
    (c) The Commission shall announce the time, place and subject matter 
of the meeting at least 8 days before the meeting.
    (d) For every closed meeting, before such meeting is closed, the 
Commission's Chairman shall publicly certify that, the meeting may be 
closed to the public, and shall state each relevant closure provision. A 
copy of such certification, together with a statement setting forth the 
time and place of the meeting, and the persons present, shall be 
retained by the Commission.



Sec. 504.27  Reconsideration of opening or closing, or rescheduling a meeting.

    The time or place of a Commission meeting may be changed following 
the public announcement only if the Commission publicly announces such 
changes at the earliest practicable time. The subject matter of a 
meeting, or the determination of the Commission to open or close a 
meeting, or portion of a meeting, to the public, may be changed 
following the public announcement only if a majority of the Commission 
members determines by a recorded

[[Page 28]]

vote that Commission business so requires and that no earlier 
announcement of the changes was possible, and the Commission publicly 
announces such changes and the vote of each member upon such change at 
the earliest practicable time.



Sec. 504.28  Record of closed meetings, or closed portion of a meeting.

    (a) The Commission shall maintain a complete transcript or 
electronic recording adequate to record fully the proceedings of each 
closed meeting or closed portion of a meeting, except that in the case 
of a meeting or portion of a meeting closed to the public pursuant to 
Sec. 504.24 (d), (h), or (j), the Commission shall maintain either such 
transcript, recording, or a detailed set of minutes.
    (b) Any minutes so maintained shall fully and clearly describe all 
matters discussed and shall provide a full and accurate summary of any 
actions taken, and the reasons therefor, including a description of each 
of the views expressed on any item and the record of any rollcall vote. 
All documents considered in connection with any action shall be 
identified in the minutes.
    (c) The Commission shall promptly make available to the public, in 
its offices, the transcript, electronic recording, or minutes, of the 
discussion of any item on the agenda of a closed meeting, or closed 
portion of a meeting, except for such item or items of discussion which 
the Commission determines to contain information which may be withheld 
under Sec. 504.24. Copies of such transcript or minutes, or a 
transcription of such recording disclosing the identity of each speaker, 
shall be furnished to any person at the actual cost of duplication or 
transcription.
    (d) The Commission shall maintain a complete verbatim copy of the 
transcript, a complete copy of the minutes, or a complete electronic 
recording of each closed meeting or closed portion of a meeting for a 
period of two years after the date of such closed meeting or closed 
portion of a meeting.
    (e) All actions required or permitted by this section to be 
undertaken by the Commission shall be by or under the authority of the 
Chairman of the Commission.



Sec. 504.29  Requests for information.

    Requests to the Commission for information about the time, place, 
and subject matter of a meeting, whether it or any portions thereof are 
closed to the public, and any requests for copies of the transcript or 
minutes or of a transcript of an electronic recording of a closed 
meeting, or closed portion of a meeting, to the extent not exempt from 
disclosure by the provisions of Sec. 504.24, shall be addressed to the 
Administrative Officer, Foreign Claims Settlement Commission, 1111 20th 
Street, NW., Washington, DC 20579, telephone 202/ 653-6155.

[[Page 29]]



SUBCHAPTER B--RECEIPT, ADMINISTRATION, AND PAYMENT OF CLAIMS UNDER TITLE I OF THE WAR CLAIMS ACT OF 1948, AS AMENDED BY PUB. L. 91-289, APPROVED JUNE 24, 1970





PART 505--FILING OF CLAIMS AND PROCEDURES THEREFOR--Table of Contents




Sec.
505.1  Claim defined.
505.2  Time within which claims may be filed.
505.3  Official claim forms.
505.4  Place of filing claims.
505.5  Documents to accompany forms.
505.6  Receipt of claims.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240 as amended by Pub. 
L. 91-289, 84 Stat. 324 (50 U.S.C. App. 2001).

    Source: 52 FR 17569, May 11, 1987, unless otherwise noted.



Sec. 505.1  Claim defined.

    (a) A properly completed and executed application made on an 
official form provided by the Foreign Claims Settlement Commission for 
such purpose constitutes a claim and will be processed under the laws 
administered by the Commission.
    (b) Any communication, letter, note, or memorandum from a claimant, 
or the claimant's duly authorized representative, or a person acting as 
next friend of a claimant who is not sui juris, setting forth sufficient 
facts to apprise the Commission of an interest to apply under the 
provisions of sections 5(i) and 6(f) of the Act, shall be deemed to be 
an informal claim. Where an informal claim is received and an official 
form is forwarded for completion and execution by the applicant, such 
official form shall be considered as evidence necessary to complete the 
initial claim, and unless such official form is received within thirty 
(30) days from the date it was transmitted for execution, if the 
claimant resides in the continental United States, or forty-five (45) 
days if outside the continental United States, the claim may be 
disallowed.



Sec. 505.2  Time within which claims may be filed.

    (a) Claims of individuals entitled to benefits under section 5(i) of 
the War Claims Act of 1948, as added by Public Law 91-289, will be 
accepted by the Commission during the period beginning June 24, 1970 and 
ending (1) June 24, 1973, inclusive; (2) 3 years from the date the 
civilian American citizen by whom the claim is filed returned to the 
jurisdiction of the United States; or (3) 3 years from the date upon 
which the Commission, at the request of a potentially eligible survivor, 
makes a determination that the civilian American citizen has actually 
died or may be presumed to be dead, in the case of any civilian American 
citizen who has not returned to the jurisdiction of the United States, 
whichever of the preceding dates last occurs.
    (b) Claims of individuals entitled to benefits under section 6(f) of 
the War Claims Act of 1948, as added by Public Law 91-289, will be 
accepted by the Commission during the period beginning June 24, 1970 and 
ending (1) June 24, 1973, inclusive; (2) 3 years from the date the 
prisoner of war by whom the claim is filed returned to the jurisdiction 
of the Armed Forces of the United States; or (3) 3 years from the date 
the Department of Defense makes a determination that the prisoner of war 
has actually died or is presumed to be dead, in the case of any prisoner 
of war who has not returned to the jurisdiction of the Armed Forces of 
the United States, whichever of the preceding dates last occurs.



Sec. 505.3  Official claim forms.

    Official forms are provided for use in the preparation of claims for 
submission to the Commission for processing. Claim forms are available 
at the Washington offices of the Commission and through other offices as 
the Commission may designate. The official claim form for all claims 
under section 5(i)

[[Page 30]]

and 6(f) has been designated, FCSC Form 289, ``Application for 
Compensation for Members of the Armed Forces of the United States Held 
as Prisoner of War in Vietnam; for Persons Assigned to Duty on board the 
`U.S.S. Pueblo' Captured by Military Forces of North Korea; for Civilian 
American Citizens Captured or Who Went into Hiding to Avoid Capture or 
Internment in Southeast Asia During the Vietnam Conflict and, in Case of 
Death of any Such Person, for Their Survivors.''



Sec. 505.4  Place of filing claims.

    Claims must be mailed or delivered in person to the Foreign Claims 
Settlement Commission, 1111 20th Street, NW., Washington, DC 20579.



Sec. 505.5  Documents to accompany forms.

    All claims filed pursuant to sections 5(a) and 6(f) of the Act must 
be accompanied by evidentiary documents, instruments, and records as 
outlined in the instruction sheet attached to the claim form.



Sec. 505.6  Receipt of claims.

    (a) Claims deemed received. A claim shall be deemed to have been 
received by the Commission on the date postmarked, if mailed, or if 
delivery is made in person, on the date of delivery at the offices of 
the Commission in Washington, DC.
    (b) Claims developed. In the event that a claim has been so prepared 
as to preclude processing thereof, the Commission may request the 
claimant to furnish whatever supplemental evidence, including the 
completion and execution of an official claim form, as may be essential 
to the processing thereof. In case the evidence or official claim form 
requested is not returned within the time which may be designated by the 
Commission, the claim may be deemed to have been abandoned and may be 
disallowed.



PART 506--PROVISIONS OF GENERAL APPLICATION--Table of Contents




Sec.
506.1  Persons eligible to file claims.
506.2  Persons under legal disability.
506.3  Definitions applicable under the Act.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended by Pub. 
L. 91-289, 84 Stat. 324 (50 U.S.C. App. 2001).

    Source: 52 FR 17569, May 11, 1987, unless otherwise noted.



Sec. 506.1  Persons eligible to file claims.

    Persons eligible to file claims with the Commission under the 
provisions of sections 5(i) and 6(f) of the War Claims Act of 1948, as 
amended, are:
    (a) Civilian American citizens captured and held in Southeast Asia 
or their eligible survivors, under the provisions of section 5(i) of the 
Act; and
    (b) Members of the Armed Forces of the United States held as 
prisoners of war during the Vietnam conflict or their eligible 
survivors, under section 6(f) of the Act.



Sec. 506.2  Persons under legal disability.

    (a) Claims may be submitted on behalf of persons who, being 
otherwise eligible to make claims under the provisions of sections 5(i) 
and 6(f), are incompetent or otherwise under any legal disability, by 
the natural or legal guardian, committee, conservator, curator, or any 
other person, including the spouse of such claimant, whom the Commission 
determines is charged with the care of the claimant.
    (b) Upon the death of any individual for whom an award has been 
made, the Commission may consider the initial application filed by or in 
behalf of the decedent as a formal claim for the purpose of reissuing 
the award to the next eligible survivor in the order of preference as 
set forth under sections 5(i) and 6(d)(4) of the Act.



Sec. 506.3  Definitions applicable under the Act.

    Child means:
    (1) A natural or adopted son or daughter of a deceased prisoner of 
war or a deceased civilian prisoner of war or a deceased American 
citizen including any posthumous son or daughter of such deceased 
person.
    (2) Any son or daughter of such deceased person born out of wedlock 
will be deemed to be a child of such deceased for the purpose of this 
Act, if, (i) legitimated by a subsequent marriage of the parents, (ii) 
recognized as a child of the deceased by his or her admission,

[[Page 31]]

or (iii) so declared by an order or decree of any court of competent 
jurisdiction.
    Husband means the surviving male spouse of a deceased prisoner of 
war or of a deceased civilian American citizen who was married to the 
deceased at the time of her death by a marriage valid under the 
applicable law of the place entered into.
    Natural guardian means father and mother who shall be deemed to be 
the natural guardians of the person of their minor children. If either 
dies or is incapable of action, the natural guardianship of the person 
shall devolve upon the other. In the event of death or incapacity of 
both parents, then such blood relative, paternal or maternal, standing 
in loco parentis to the minor shall be deemed the natural guardian.
    Parent means:
    (1)(i) The natural or adoptive father or mother of a decreased 
prisoner of war, or any person standing in loco parentis to such 
deceased person, for a period of not less than 1 year immediately 
preceding the date of such person's entry into active service and during 
at least 1 year of such person's minority. Not more than one mother and/
or father as defined shall be recognized in any case. A person will not 
be recognized as standing in loco parentis if the natural parents or 
adoptive parents are living, unless there is affirmative evidence of 
abandonment and renunciation of parental duties and obligations by the 
natural or adoptive parent or parents prior to entry into active service 
by the deceased prisoner or war;
    (ii) An award in the full amount allowable had the deceased prisoner 
of war survived may be made to only one parent when it is shown that the 
other parent has died or if there is affirmative evidence of abandonment 
and renunciation of parental duties and obligations by the other parent.
    (2) The father of an illegitimate child will not be recognized as 
such for purposes of the Act unless evidence establishes that (i) he has 
legitimated the child by subsequent marriage with the mother; (ii) 
recognized the child as his by written admission prior to enlistment of 
the deceased in the armed forces or entry into an overseas duty status; 
or (iii) prior to death of the child he has been declared by decree of a 
court of competent jurisdiction to be the father.
    Widow means the surviving female spouse of a deceased prisoner of 
war or a deceased civilian American citizen who was married to the 
deceased at the time of his death by marriage valid under the applicable 
law of the place where entered into.



PART 507--ELIGIBILITY REQUIREMENTS FOR COMPENSATION--Table of Contents




                  Subpart A--Civilian American Citizens

507.1  ``Civilian American citizen'' defined.
507.2  Other definitions.
507.3  Rate of benefits payable.
507.4  Survivors entitled to award of detention benefits.
507.5  Persons not eligible to award of civilian detention benefits.

                       Subpart B--Prisoners of War

507.10  Vietnam conflict.
507.11  ``Prisoner of war'' defined.
507.12  Membership in the Armed Forces of the United States; 
          establishment of.
507.13  ``Armed Forces of the United States'' defined.
507.14  ``Force hostile to the United States'' defined.
507.15  Geneva Convention of August 12, 1949.
507.16  Failure to meet the conditions and requirements prescribed under 
          the Geneva Convention of August 12, 1949.
507.17  Rate of and basis for award of compensation.
507.18  Entitlement of survivors to award in case of death of prisoner 
          of war.
507.19  Members of the Armed Forces of the United States precluded from 
          receiving award of compensation.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended by Pub. 
L. 91-289, 84 Stat. 324 (50 U.S.C. App. 2001).

    Source: 52 FR 17570, May 11, 1987, unless otherwise noted.



                  Subpart A--Civilian American Citizens



Sec. 507.1  ``Civilian American citizen'' defined.

    Civilian American citizen means any person who, being then a citizen 
of the United States, was captured in Southeast Asia during the Vietnam 
conflict by any force hostile to the United States, or who went into 
hiding in

[[Page 32]]

Southeast Asia in order to avoid capture or internment by any such 
hostile force.



Sec. 507.2  Other definitions.

    Calendar month means the period of time between a designated day of 
any given month and the date preceding a similarly designated day of the 
following month.
    Citizen of the United States means a person who under applicable law 
acquired citizenship of the United States by birth, by naturalization, 
or by derivation.
    Dependent husband means the surviving male spouse of a deceased 
civilian American citizen who was married to the deceased at the time of 
her death by a marriage valid under the applicable law of the place 
where entered into.
    Force hostile to the United States means any organization or force 
in Southeast Asia, or any agent or employee thereof, engaged in any 
military or civil activities designed to further the prosecution of its 
armed conflict against the Armed Forces of the United States during the 
Vietnam conflict.
    Southeast Asia means but is not necessarily restricted to, the areas 
of North and South Vietnam, Laos, and Cambodia.
    Went into hiding means the action taken by a civilian American 
citizen when such person initiated a course of conduct consistent with 
an intention to evade capture or detention by a hostile force in 
Southeast Asia.



Sec. 507.3  Rate of benefits payable.

    Detention benefits awarded to a civilian American citizen will be 
paid at the rate of $150 for each calendar month of internment or during 
the period such civilian American citizen went into hiding to avoid 
capture and internment by a hostile force. Awards shall take account of 
fractional parts of a calendar month.



Sec. 507.4  Survivors entitled to award of detention benefits.

    In case of death of a civilian American citizen who would have been 
entitled to detention benefits under the War Claims Act of 1948, as 
amended, such benefits shall be awarded, if claim is made, only to the 
following persons:
    (a) Widow or husband if there is no child or children of the 
deceased;
    (b) Widow or dependent husband and child or children of the 
deceased, one-half to the widow or dependent husband and the other half 
to the child or children in equal shares;
    (c) The child or children of the deceased in equal shares if there 
is no widow or dependent husband, if otherwise qualified.



Sec. 507.5  Persons not eligible to award of civilian detention benefits.

    An individual is disqualified as a ``civilian American citizen'' 
under the Act, and thus is precluded from receiving an award of 
detention benefits, if such person:
    (a) Voluntarily, knowingly, and without duress, gave aid to or 
collaborated with or in any manner served any such hostile force; or
    (b) While detained, was a regularly appointed, enrolled, enlisted, 
or inducted member of the Armed Forces of the United States.



                       Subpart B--Prisoners of War



Sec. 507.10  Vietnam conflict.

    Vietnam conflict refers to the period beginning February 28, 1961, 
and ending on a date to be determined by Presidential proclamation or 
concurrent resolution of the Congress.



Sec. 507.11  ``Prisoner of war'' defined.

    Prisoner of war means any regularly appointed, enrolled, enlisted or 
inducted member of the Armed Forces of the United States who was held by 
any force hostile to the United States for any period of time during the 
Vietnam conflict.



Sec. 507.12  Membership in the Armed Forces of the United States; establishment of.

    Regular appointment, enrollment, enlistment or induction in the 
Armed Forces of the United States shall be established by certification 
of the Department of Defense.



Sec. 507.13  ``Armed Forces of the United States'' defined.

    Armed Forces of the United States means the United States Air Force,

[[Page 33]]

Army, Navy, Marine Corps and Coast Guard, and commissioned officers of 
the U.S. Public Health Service who were detailed for active duty with 
the Armed Forces of the United States.



Sec. 507.14  ``Force hostile to the United States'' defined.

    Force hostile to the United States means any organization or force 
in Southeast Asia, or any agent or employee thereof, engaged in any 
military or civil activities designed to further the prosecution of its 
armed conflict against the Armed Forces of the United States during the 
Vietnam conflict.



Sec. 507.15  Geneva Convention of August 12, 1949.

    The Geneva Convention of August 12, 1949, as identified in section 
6(f) of the War Claims Act of 1948, as amended, is the ``Geneva 
Convention Relative to the Treatment of Prisoners of War of August 12, 
1949'' which is included under the ``Geneva Convention of August 12, 
1949 For the Protection of War Victims'', entered into by the United 
States and other governments, including the Government in North Vietnam 
which acceded to it on June 28, 1957.



Sec. 507.16  Failure to meet the conditions and requirements prescribed under the Geneva Convention of August 12, 1949.

    For the purpose of this part, obligations under the Geneva 
Convention of August 12, 1949, consist of the responsibility assumed by 
the contracting parties thereto with respect to prisoners of war within 
the meaning of the Convention, to comply with and to fully observe the 
provisions of the Convention, and particularly those articles relating 
to food rations of prisoners of war, humane treatment, protection, and 
labor of prisoners of war, and the failure to abide by the conditions 
and requirements established in such Convention by any hostile force 
with which the Armed Forces of the United States were engaged in armed 
conflict.



Sec. 507.17  Rate of and basis for award of compensation.

    (a) Compensation allowed a prisoner of war during the Vietnam 
conflict under section 6(f)(2) of the War Claims Act of 1948, as 
amended, will be paid at the rate of $2 per day for each day such person 
was held as prisoner of war on which the hostile force, or its agents, 
failed to furnish the quantity and quality of food prescribed for 
prisoners of war under the Geneva Convention of August 12, 1949.
    (b) Compensation allowed a prisoner of war during the Vietnam 
conflict under section 6(f)(3) of the Act, will be paid at the rate of 
$3 per day for each day such person was held as a prisoner of war on 
which the hostile force failed to meet the conditions and requirements 
under the provisions of the Geneva Convention of August 12, 1949 
relating to labor of prisoners of war or for inhumane treatment by the 
hostile force by which such person was held.
    (c) Compensation under paragraphs (a) and (b) of this section will 
be paid to the prisoner of war or qualified applicant on a lump-sum 
basis at a total rate of $5 per day for each day the prisoner of war was 
entitled to compensation.



Sec. 507.18  Entitlement of survivors to award in case of death of prisoner of war.

    In case of death of a prisoner of war who would have been entitled 
to an award of compensation under section 6(f) (2) and (3) of the War 
Claims Act of 1948, as amended, such compensation shall be awarded, if 
claim is made, only to the following persons:
    (a) Widow or husband if there is no child or children of the 
deceased;
    (b) Widow or husband and child or children of the deceased, one-half 
to the widow or husband and the other half to the child or children of 
the deceased in equal shares;
    (c) child or children of the deceased (in equal shares) if there is 
no widow or husband; and
    (d) Parents (in equal shares) if there is no widow, husband or 
child.



Sec. 507.19  Members of the Armed Forces of the United States precluded from receiving award of compensation.

    Any member of the Armed Forces of the United States, who at any 
time, voluntarily, knowingly, and without duress gave aid to or 
collaborated with,

[[Page 34]]

or in any manner served any force hostile to the United States, is 
precluded from receiving an award of compensation based on such member's 
capture and internment.



PART 508--PAYMENT--Table of Contents




Sec.
508.1  Payments under the War Claims Act of 1948, as amended by Pub. L. 
          91-289.
508.2  Payments to persons under legal disability.
508.3  Reissuance of awards.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended (50 
U.S.C. App. 2001).

    Source: 52 FR 17572, May 11, 1987, unless otherwise noted.



Sec. 508.1  Payments under the War Claims Act of 1948, as amended by Public Law 91-289.

    (a) Upon a determination by the Commission as to the amount and 
validity of each claim filed pursuant to section 5(i) and 6(f) of the 
War Claims Act of 1948, as amended, any award made thereunder will be 
certified by the Commission to the Secretary of the Treasury for payment 
out of funds appropriated for this purpose, in favor of the civilian 
internee or prisoner of war found entitled thereto.
    (b) Awards made to survivors of deceased civilian internees or 
prisoners of war will be certified to the Secretary of the Treasury for 
payment to the individual member or members of the class or classes of 
survivors entitled to receive compensation in the full amount of the 
share to which each survivor is entitled, and if applicable, under the 
procedure set forth in Sec. 508.3, except that as to persons under legal 
disability, payment will be made as specified in Sec. 508.2.



Sec. 508.2  Payments to persons under legal disability.

    Any awards or any part of an award payable under sections 5(i) and 
6(f) of the Act to any person under legal disability may, in the 
discretion of the Commission, be certified for payment for the use of 
the claimant, to the natural or legal guardian, committee, conservator 
or curator, or if there is no such natural or legal guardian, committee, 
conservator or curator, then, in the discretion of the Commission, to 
any person, including the spouse of such person, or the Chief Officer of 
the hospital in which the claimant may be a patient, whom the Commission 
may determine is charged with the care of the claimant. In the case of a 
minor, any part of the amount payable may, in the discretion of the 
Commission, be certified for payment to such minor.



Sec. 508.3  Reissuance of awards.

    Upon the death of any claimant entitled to payment of an award, the 
Commission will cause the award to be cancelled and the amount of such 
award will be redistributed to the survivors of the same class or to 
members of the next class of eligible survivors, if appropriate, in the 
order of preference as set forth under the Act.



PART 509--HEARINGS--Table of Contents




Sec.
509.1  Basis for hearing.
509.2  Request for hearing.
509.3  Notification to claimant.
509.4  Failure to file request for hearing.
509.5  Purpose of hearing.
509.6  Resume of hearing, preparation of.
509.7  Action by the Commission.
509.8  Application of other regulations.

    Authority: Sec. 2, Pub. L. 80-896, 62 Stat. 1240, as amended by Pub. 
L. 91-289, 84 Stat. 324 (50 U.S.C. App. 2001).

    Source: 52 FR 17572, May 11, 1987, unless otherwise noted.



Sec. 509.1  Basis for hearing.

    Any claimant whose application is denied or is approved for less 
than the full allowable amount of such claim, shall be entitled to a 
hearing before the Commission or its representative with respect to such 
claim. Hearings may also be held on the Commission's own motion.



Sec. 509.2  Request for hearing.

    Within 30 days after the Commission's notice of denial of a claim, 
or approval for a lesser amount than claimed, has been posted by the 
Commission, the claimant, if a hearing is desired, shall notify the 
Commission in writing, and shall set forth in such request the reasons 
in full for requesting the hearing, including any statement

[[Page 35]]

of law or facts upon which the claimant relies.



Sec. 509.3  Notification to claimant.

    Upon receipt of such a request the Commission shall schedule a 
hearing and notify the claimant as to the date and place such hearing is 
to be held. No later than 10 days prior to the scheduled hearing date, 
the claimant shall submit all documents, briefs, or other additional 
evidence relative to an appeal from the award.



Sec. 509.4  Failure to file request for hearing.

    The failure to file a request for a hearing within the period 
specified in Sec. 509.2 will be deemed to constitute a waiver of right 
to such hearing and the decision of the Commission shall constitute a 
full and final disposition of the case.



Sec. 509.5  Purpose of hearing.

    (a) Such hearings shall be conducted by the Commission, its designee 
or designees. Oral testimony and documentary evidence, including 
depositions that may have been taken as provided by statute and the 
rules of practice, may be offered in evidence on claimant's behalf or by 
counsel for the Commission designated by it to represent the public 
interest opposed to the allowance of an unjust or unfounded claim or 
portion thereof, and either may cross-examine as to evidence offered 
through witnesses on behalf of the other. Objections to the admission of 
any such evidence shall be ruled upon by the presiding officer.
    (b) Such hearings may be stenographically recorded either at the 
request of the claimant or at the discretion of the Commission. A 
claimant making such a request shall notify the Commission at least 10 
days prior to the hearing date. When a stenographic record of a hearing 
is ordered at the claimant's request, the cost of such reporting and 
transcription may be charged to the claimant.
    (c) Such hearings shall be open to the public.



Sec. 509.6  Resume of hearing, preparation of.

    Upon such hearing, the hearing officer shall prepare a resume of the 
hearing, specifying the issues on which the hearing was based, and 
including a list of documents and contents and other items relative to 
such issues which were introduced as evidence. A brief analysis of oral 
testimony shall also be prepared and included in such resume of the 
hearing not stenographically reported.



Sec. 509.7  Action by the Commission.

    After the conclusion of such hearing and a review of the resume, the 
Commission may affirm, modify, or reverse its former action with respect 
to such claim, including a denial or reduction in the amount of the 
award theretofore approved. All findings of the Commission concerning 
the persons to whom compensation is payable, and the amounts thereof, 
are conclusive and not reviewable by any court.



Sec. 509.8  Application of other regulations.

    To the extent they are not inconsistent with the regulations set 
forth under provisions of this subchapter, the other regulations of the 
Commission shall also be applicable to the claims filed hereunder.

[[Page 36]]



 SUBCHAPTER C--RECEIPT, ADMINISTRATION, AND PAYMENT OF CLAIMS UNDER THE INTERNATIONAL CLAIMS SETTLEMENT ACT OF 1949, AS AMENDED





PART 531--FILING OF CLAIMS AND PROCEDURES THEREFOR--Table of Contents




Sec.
531.1  Time for filing.
531.2  Form, content and filing of claims.
531.3  Exhibits and documents in support of claim.
531.4  Acknowledgement and numbering.
531.5  Procedure for determination of claims.
531.6  Hearings.
531.7  Presettlement conference.

Authority: Sec. 3, Pub. L. 81-455, 64 Stat. 12, as amended (22 U.S.C. 
1622).

    Source: 52 FR 17572, May 11, 1987, unless otherwise noted.



Sec. 531.1  Time for filing.

    Claims shall be filed as specified by the Commission by duly 
promulgated notice published in the Federal Register, or as specified in 
legislation passed by Congress, as applicable.



Sec. 531.2  Form, content and filing of claims.

    (a) Unless otherwise specified by law, or by regulations published 
in the Federal Register, claims shall be filed on official forms 
provided by the Commission upon request in writing addressed to the 
Commission at its office at 1111 20th Street, NW., Washington, DC 20579; 
shall include all of the information called for in the appropriate form; 
and shall be completed and signed in accordance with the instructions 
accompanying the form.
    (b) Notice to the Foreign Claims Settlement Commission, the 
Department of State, or any other governmental office or agency, prior 
to the enactment of the statute authorizing a claims program or the 
effective date of a lump-sum claims settlement agreement, of an 
intention to file a claim against a foreign country, shall not be 
considered as a timely filing of a claim under the statute or agreement.
    (c) Any initial written indication of an intention to file a claim 
received within 30 days prior to the expiration of the filing period 
thereof shall be considered as a timely filing of a claim if formalized 
within 30 days after the expiration of the filing period.



Sec. 531.3  Exhibits and documents in support of claim.

    (a) If available, all exhibits and documents shall be filed with and 
at the same time as the claim, and shall, wherever possible, be in the 
form of original documents, or copies or originals certified as such by 
their public or other official custodian.
    (b) Documents in a foreign language. Each copy of a document, 
exhibit or paper filed, which is written or printed in a language other 
than English, shall be accompanied by an English translation thereof 
duly verified under oath by its translator to be a true and accurate 
translation thereof, together with the name and address of the 
translator.
    (c) Preparation of papers. All claims, briefs, and memoranda filed 
shall be typewritten or printed and, if typewritten, shall be on legal 
size paper.



Sec. 531.4  Acknowledgement and numbering.

    The Commission will acknowledge the receipt of a claim in writing 
and will notify the claimant of the claim number assigned to it, which 
number shall be used on all further correspondence and papers filed with 
regard to the claim.



Sec. 531.5  Procedure for determination of claims.

    (a) The Commission may on its own motion order a hearing upon any 
claim, specifying the questions to which the hearing shall be limited.
    (b) Without previous hearing, the Commission or a designated member 
of the staff may issue a Proposed Decision in determination of a claim.
    (c) Such Proposed Decision shall be delivered to the claimant or the 
claimant's attorney of record in person or by mail. Delivery by mail 
shall be deemed completed 5 days after the mailing of such Proposed 
Decision addressed to

[[Page 37]]

the last known address of the claimant or the claimant's attorney of 
record. A copy of the Proposed Decision shall be available for public 
inspection at the offices of the Commission.
    (d) It shall be the policy of the Commission to post on a bulletin 
board any information of general interest to claimants before the 
Commission.
    (e) When the Proposed Decision denies a claim in whole or in part, 
the claimant may within 15 days of service thereof file objections to 
such denial, assigning the errors relied upon, with accompanying brief 
in support thereof, and may request a hearing on the claim, specifying 
whether for the taking of evidence or only for the hearing of oral 
argument upon the errors assigned.
    (f) Copies of objections to or requests for hearings on Proposed 
Decisions shall be available for public inspection at the Commission's 
offices.
    (g) Upon the expiration of 30 days after service or receipt of 
notice, if no objection under this section has in the meantime been 
filed, a staff Proposed Decision, upon approval by the Commission, shall 
become the Commission's final determination and decision on the claim. A 
Proposed Decision issued by the Commission may become final after 30 
days without further order or decision by the Commission.
    (h) If an objection has in the meantime been filed, but no hearing 
requested, the Commission may, after due consideration thereof, (1) 
issue a Final Decision affirming or modifying its Proposed Decision, (2) 
issue an Amended Proposed Decision, or (3) on its own motion order 
hearing thereon, indicating whether for the taking of evidence on 
specified questions or only for the hearing of oral arguments.
    (i) After the conclusion of a hearing, upon the expiration of any 
time allowed by the Commission for further submissions, the Commission 
may proceed to issue a Final Decision in determination of the claim.
    (j)(1) In case an individual claimant dies prior to the issuance of 
the Final Decision, such person's legal representative shall be 
substituted as party claimant. However, upon failure of a representative 
to qualify for substitution, the Commission may issue its decision in 
the name of the estate of the deceased and, in case of an award, certify 
the award in the same manner to the Secretary of the Treasury for 
payment, if the payment of such award is provided for by statute.
    (2) Notice of the Commission's action under this paragraph shall be 
forwarded to the claimant's attorney of record, or if the claimant is 
not represented by an attorney, such notice shall be addressed to the 
estate of the claimant at the last known place of residence.
    (3) The term ``legal representative'' as applied in this paragraph 
means, in general, the administrator or executor, heir(s), next of kin, 
or descendant(s).
    (k) After the date of filing with the Commission no claim shall be 
amended to reflect the assignment thereof by the claimant to any other 
person or entity except as otherwise provided by statute.
    (l) At any time after a final Decision has been issued on a claim, 
or a Proposed Decision has been entered as the Final Decision on a 
claim, but not later than 60 days before the completion date of the 
Commission's affairs in connection with the program under which such 
claim is filed, a petition to reopen on the ground of newly discovered 
evidence may be filed. No such petition shall be entertained unless it 
appears therein that the newly discovered evidence came to the knowledge 
of the party filing the petition subsequent to the date of issuance of 
the Final Decision or the date on which the Proposed Decision was 
entered as the Final Decision; that it was not for want of due diligence 
that such evidence did not come sooner to the claimant's knowledge;' and 
that the evidence is material, and not merely cumulative, and that 
reconsideration of the matter on the basis of such evidence would 
produce a different decision. Such petition shall include a statement of 
the facts which the petitioner expects to prove, the name and address of 
each witness, the identity of documents, and the reasons for failure to 
make earlier submission of the evidence.



Sec. 531.6  Hearings.

    (a) Hearings, whether upon the Commission's own motion or upon 
request

[[Page 38]]

of claimant, shall be held upon not less than fifteen days' notice of 
the time and place thereof.
    (b) Such hearings shall be open to the public unless otherwise 
requested by claimant and ordered by the Commission.
    (c) Such hearings shall be conducted by the Commission, its designee 
or designees. Oral testimony and documentary evidence, including 
depositions that may have been taken as provided by statute and the 
rules of practices, may be offered in evidence on the claimant's behalf 
or by counsel for the Commission designated by it to represent the 
public interest opposed to the allowance of any unjust or unfounded 
claim or portion thereof; and either may cross-examine as to evidence 
offered through witnesses on behalf of the other. Objections to the 
admission of any such evidence shall be ruled upon by the presiding 
officer.
    (d) The claimant shall be the moving party, and shall have the 
burden of proof on all issues involved in the determination of his or 
her claim.
    (e) Hearings may be stenographically reported either at the request 
of the claimant or upon the discretion of the Commission. A claimant 
making such a request shall notify the Commission at least ten (10) days 
prior to the hearing date. When a stenographic record of a hearing is 
ordered at the claimant's request, the cost of such reporting and 
transcription may be charged to the claimant.



Sec. 531.7  Presettlement conference.

    The Commission on its own motion or initiative, or upon the 
application of a claimant for good cause shown, may direct that a 
presettlement conference be held with respect to any issue involved in a 
claim.

[[Page 39]]



                 CHAPTER VI--NATIONAL SCIENCE FOUNDATION




  --------------------------------------------------------------------

Part                                                                Page
601             Classification and declassification of 
                    national security information...........          41
602             Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    State and local governments.............          43
604             New restrictions on lobbying................          70
605             Nondiscrimination on the basis of handicap 
                    in programs and activities receiving 
                    Federal financial assistance............          82
606             Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the National 
                    Science Foundation......................          98
607             Salary offset...............................         104
608             Claims collection and administrative offset.         107
611             Nondiscrimination in federally-assisted 
                    programs of the National Science 
                    Foundation--effectuation of title VI of 
                    the Civil Rights Act of 1964............         111
612             Availability of records and information.....         122
613             Privacy Act regulations.....................         133
614             Government in the Sunshine Act regulations 
                    of the National Science Board...........         137
615             Testimony and production of records.........         139
617             Nondiscrimination on the basis of age in 
                    programs or activities receiving Federal 
                    financial assistance from NSF...........         142
620             Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         146
640             Compliance with the National Environmental 
                    Policy Act..............................         164
641             Environmental assessment procedures for 
                    proposed National Science Foundation 
                    actions in Antarctica...................         168
650             Patents.....................................         173

[[Page 40]]

660             Intergovernmental review of the National 
                    Science Foundation programs and 
                    activities..............................         182
670             Conservation of Antarctic animals and plants         185
671             Waste regulation............................         196
672             Enforcement and Hearing Procedures; Tourism 
                    Guidelines..............................         204
680             NSF conflict-of-interests rules and 
                    standards of conduct: Introduction and 
                    general provisions......................         216
681             Conflicts or potential conflicts in handling 
                    proposals and awards....................         223
682             Representational restrictions and 
                    involvement with proposals and projects 
                    during and after NSF service............         232
683             Other conflicts rules.......................         241
684             Rules for consultants, board members, and 
                    other ``special employees''.............         247
689             Misconduct in science and engineering.......         254
690             Protection of human subjects................         258
                Subject Index to 45 CFR Parts 680-684.......         270

[[Page 41]]



PART 601--CLASSIFICATION AND DECLASSIFICATION OF NATIONAL SECURITY INFORMATION--Table of Contents




Sec.
601.1  Purpose.
601.2  Classification authority.
601.3  Security program.
601.4  Classification Review Committee.
601.5  Derivative classification.
601.6  Downgrading and declassification.
601.7  Mandatory declassification review.
601.8  Access to classified materials.
601.9  Access by historical researchers and former Presidential 
          appointees.

    Authority: E.O. 12958, 3 CFR, 1995 Comp. p. 333.

    Source: 47 FR 57284, Dec. 23, 1983, unless otherwise noted.



Sec. 601.1  Purpose.

    Pursuant to Executive Order 12958 and Information Security Oversight 
Office Directive No. 1, the National Science Foundation [Foundation] 
issues the following regulations. The regulations identify the 
information to be protected, prescribe classification, declassification, 
downgrading, and safeguarding procedures to be followed, and establish a 
monitoring system to ensure the regulations' effectiveness.

[47 FR 57284, Dec. 23, 1983, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 601.2  Classification authority.

    The Foundation does not have original classification authority under 
Executive Order 12958. In any instance where a Foundation employee 
develops information that appears to warrant classification because of 
its national security character, the material will be afforded 
protection and sent to the Division of Administrative Services (DAS). 
Upon determination that classification is warranted, DAS will submit 
such material to the agency that has appropriate subject matter interest 
and classification authority.

[47 FR 57284, Dec. 23, 1983, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 601.3  Security program.

    The Director, Division of Administrative Services, is responsible 
for conducting a security program that ensures effective implementation 
of Executive Order 12958, to include:
    (a) Maintaining active training and orientation programs for 
employees concerned with classified information or material.
    (b) Encouraging Foundation personnel to challenge those 
classification decisions they believe to be improper.
    (c) Issuing directives that ensure classified information is used, 
processed, stored, reproduced and transmitted only under conditions that 
will provide adequate protection and prevent access by unauthorized 
persons.
    (d) Recommending to the Director appropriate administrative action 
to correct abuse or violation of any provision of these regulations, 
including notification by warning letters, formal reprimand, and to the 
extent permitted by law, suspension without pay and removal.

[47 FR 57284, Dec. 23, 1983, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 601.4  Classification Review Committee.

    The Security Officer (Information) chairs the Foundation's 
Classification Review Committee which has authority to act on all 
suggestions and complaints with respect to the Foundation's 
administration of the regulations. The Assistant Directors and the Heads 
of other offices reporting to the Director serve as members of the 
Committee. All suggestions and complaints including those regarding 
overclassification, failure to classify, or delay in declassifying not 
otherwise resolved, shall be referred to the Committee for resolution. 
The Committee shall establish procedures to review and act within 30 
days upon all appeals regarding requests for declassification. The 
Committee is authorized to overrule previous determinations in whole or 
in part when in its judgment, continued protection is no longer 
required. If the Committee determines that continued classification is 
required under the criteria of the Executive Order, it shall promptly so 
notify the requester and advise him that he may file an application for 
review with the Foundation. In addition, the Committee shall review all 
appeals of requests for records

[[Page 42]]

under section 552 of title 5 U.S.C. (Freedom of Information Act) when 
the proposed denial is based on their continued classification under 
Executive Order 12958.

[47 FR 57284, Dec. 23, 1983, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 601.5  Derivative classification.

    Distinct from ``original'' classification is the determination that 
information is in substance the same as information currently 
classified, because of incorporating, paraphrasing, restating or 
generating in new form information that is already classified, and 
marking the newly developed material consistent with the marking of the 
source information. Persons who only reproduce, extract, or summarize 
classified information, or who only apply classification markings 
derived from source material or as directed by a classification guide, 
need not possess original classification authority.
    (a) If a person who applies derivative classification markings 
believes that the paraphrasing, restating, or summarizing of classified 
information has changed the level of or removed the basis for 
classification, that person must consult for a determination an 
appropriate official of the originating agency or office of origin who 
has the authority to upgrade, downgrade, or declassify the information.
    (b) The person who applies derivative classification markings shall 
observe and respect original classification decisions; and carry forward 
to any newly created documents any assigned authorized markings. The 
declassification date or event that provides the longest period of 
classification shall be used for documents classified on the basis of 
multiple sources.



Sec. 601.6  Downgrading and declassification.

    Executive Order 12958 prescribes a uniform system for classifying, 
declassifying, and safeguarding national security information.
    (a) Information shall be declassified or downgraded as soon as 
national security considerations permit. The National Science Foundation 
shall coordinate their review of classified information with other 
agencies that have a direct interests in the subject matter. Information 
that continues to meet the classification requirements prescribed by 
Section 1.3 despite the passage of time will continue to be protected in 
accordance with Executive Order 12958.
    (b) Foundation documents may be declassified or downgraded by the 
official who authorized the original classification, if that official is 
still serving in the same position; the originator's successor; a 
supervisory official of either; or officials delegated such authority in 
writing by the Director.
    (c) The Director shall conduct internal systematic review programs 
for classified information originated by the Foundation contained in 
records determined by the Archivist to be permanently valuable but that 
have not been accessioned into the National Archives of the United 
States.
    (d) The Archivist of the United States shall, in accordance with 
procedures and timeframes prescribed in the Information Security 
Oversight Office's directives implementing Executive Order 12958, 
systematically review for declassification or downgrading, classified 
records accessioned into the National Archives of the United States. 
Such information shall be reviewed by the Archivist for declassification 
or downgrading in accordance with systematic review guidelines that 
shall be provided by the head of the agency that originated the 
information, or in the case of foreign government information, by the 
Director of Information Security Oversight Office in consultation with 
interested agency heads.

[47 FR 57284, Dec. 23, 1983, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 601.7  Mandatory declassification review.

    (a) The Division of Administrative Services is hereby designated as 
the office to which members of the public or Departments may direct 
requests for mandatory review for declassification under this provision. 
In the case of documents originally classified by the Foundation, this 
office shall, in turn, assign the request to the appropriate office for 
action within 60 days. In each instance, receipt of the request will be 
acknowledged in writing immediately

[[Page 43]]

by the office that has been assigned action. A request for 
classification review must reasonably describe the document.
    (b) Whenever a request is deficient in its description of the record 
sought, the requester should be asked to provide additional identifying 
information to the extent possible. Whenever a request does not 
reasonably describe the information sought, the requester shall be 
notified that unless additional information is provided or the scope of 
the request is narrowed, no further action will be undertaken. Upon a 
determination that the requested material no longer warrants 
classification, it shall be declassified and made promptly available to 
the requester, if not otherwise exempt from disclosure under 5 U.S.C. 
552(b) (Freedom of Information Act) or other provision of law. If the 
information may not be released in whole or in part the requester shall 
be given a brief statement as to the reasons for denial, a notice of the 
right to appeal the determination of the Classification Review 
Committee, and a notice that such an appeal must be filed with the 
Foundation within 60 days in order to be considered.
    (c) When the request relates to a document given derivative 
classification by the Foundation or originated by another agency, the 
request and the document will be forwarded to the originator of the 
source document, and the requestor notified of such referral.
    (d) Employees presently cleared for access to classified information 
are encouraged to challenge classification in cases where there is 
reasonable cause to believe that information is classified 
unnecessarily, improperly, or for an inappropriate period of time. Such 
challenges should be brought to the attention of the Security Officer 
(Information) who will act thereon within 30 days, informing the 
challenger of actions taken. Requests for confidentiality will be 
honored.



Sec. 601.8  Access to classified materials.

    No person may be given access to classified information unless that 
person has been determined to be trustworthy and unless access is 
essential to the accomplishment of lawful and authorized Government 
purposes.



Sec. 601.9  Access by historical researchers and former Presidential appointees.

    The requirement in Sec. 601.8 that access to classified information 
may be granted only as is essential to the accomplishment of lawful and 
authorized Government purposes may be waived for persons who are engaged 
in historical research projects, or previously have occupied 
policymaking positions to which they were appointed by the President, 
provided they execute written agreements to safeguard the information 
and written consent to the Foundation's review of their notes and 
manuscripts solely for the purpose of determining that no classified 
information is disclosed. A precondition to any such access is the 
favorable completion of an appropriate investigative inquiry.



PART 602--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
602.1  Purpose and scope of this part.
602.2  Scope of subpart.
602.3  Definitions.
602.4  Applicability.
602.5  Effect on other issuances.
602.6  Additions and exceptions.

                    Subpart B--Pre-Award Requirements

602.10  Forms for applying for grants.
602.11  State plans.
602.12  Special grant or subgrant conditions for ``high-risk'' grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

602.20  Standards for financial management systems.
602.21  Payment.
602.22  Allowable costs.
602.23  Period of availability of funds.
602.24  Matching or cost sharing.
602.25  Program income.
602.26  Non-Federal audit.

                    Changes, Property, and Subawards

602.30  Changes.
602.31  Real property.
602.32  Equipment.
602.33  Supplies.

[[Page 44]]

602.34  Copyrights.
602.35  Subawards to debarred and suspended parties.
602.36  Procurement.
602.37  Subgrants.

              Reports, Records, Retention, and Enforcement

602.40  Monitoring and reporting program performance.
602.41  Financial reporting.
602.42  Retention and access requirements for records.
602.43  Enforcement.
602.44  Termination for convenience.

                 Subpart D--After-the-Grant Requirements

602.50  Closeout.
602.51  Later disallowances and adjustments.
602.52  Collection of amounts due.

                   Subpart E--Entitlements [Reserved]

    Authority: 42 U.S.C. 1870(a).

    Source: 53 FR 8080, 8087, Mar. 11, 1988, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 
53 FR 8028, March 11, 1988.



                           Subpart A--General



Sec. 602.1  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 602.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 602.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subgrantees, 
subcontractors, and other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required, such as annuities, insurance 
claims, and other benefit payments.
    Accrued income means the sum of:
    (1) Earnings during a given period from services performed by the 
grantee and goods and other tangible property delivered to purchasers, 
and
    (2) Amounts becoming owed to the grantee for which no current 
services or performance is required by the grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.

[[Page 45]]

    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For nonconstruction grants, the SF-269 
``Financial Status Report'' (or other equivalent report); (2) for 
construction grants, the SF-271 ``Outlay Report and Request for 
Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of the Interior as eligible for 
the special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under state law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.

[[Page 46]]

    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than equipment 
as defined in this part.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. Termination does not include: (1) Withdrawal 
of funds awarded on the basis of the grantee's underestimate of the 
unobligated balance in a prior period; (2) Withdrawal of the unobligated 
balance as of the expiration of a grant; (3) Refusal to extend a grant 
or award additional funds, to make a competing or noncompeting 
continuation, renewal, extension, or supplemental award; or (4) voiding 
of a grant upon determination that the award was obtained fraudulently, 
or was otherwise illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 602.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 602.6, or:

[[Page 47]]

    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under title V, Subtitle D, Chapter 2, 
Section 583--the Secretary's discretionary grant program) and titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and Part C of title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 602.4(a) (3) through (8) are subject to Subpart E.



Sec. 602.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 602.6.



Sec. 602.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified

[[Page 48]]

regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 602.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 602.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for approval only the amended portions of 
the plan.



Sec. 602.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:

[[Page 49]]

    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grantee or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 602.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled

[[Page 50]]

checks, paid bills, payrolls, time and attendance records, contract and 
subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 602.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using such method is the unwillingness or 
inability of the grantee to provide timely advances to the subgrantee to 
meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or

[[Page 51]]

    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 602.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 602.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          
For-profit organization other than a        48 CFR part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------



Sec. 602.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 602.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:

[[Page 52]]

    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 602.25, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 602.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.

[[Page 53]]

    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 602.22, in the same way as depreciation or 
use allowances for purchased equipment and buildings. The amount of 
depreciation or use allowances for donated equipment and buildings is 
based on the property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the

[[Page 54]]

grantee. This requirement will also be imposed by the grantee on 
subgrantees.



Sec. 602.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 602.34.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 602.31 and 
602.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g) (2) and (3) of this 
section, program income in excess of any limits stipulated shall also be 
deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 602.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act of 1984 (31 
U.S.C. 7501-7507) and Federal agency implementing regulations. The 
audits shall be made by an independent auditor in accordance

[[Page 55]]

with generally accepted government auditing standards covering financial 
and compliance audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act, that receive Federal 
financial assistance and provide $25,000 or more of it in a fiscal year 
to a subgrantee shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Requirements for Grants and Other Agreements with 
Institutions of Higher Education, Hospitals and Other Nonprofit 
Organizations'' have met the audit requirement. Commercial contractors 
(private forprofit and private and governmental organizations) providing 
goods and services to State and local governments are not required to 
have a single audit performed. State and local govenments should use 
their own procedures to ensure that the contractor has complied with 
laws and regulations affecting the expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 602.36 
shall be followed.

                    Changes, Property, and Subawards



Sec. 602.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 602.22) contain requirements for prior approval of certain types of 
costs. Except where waived, those requirements apply to all grants and 
subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:

[[Page 56]]

    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 602.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 602.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.



Sec. 602.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the

[[Page 57]]

awarding agency. The grantee or subgrantee shall be paid an amount 
calculated by applying the grantee or subgrantee's percentage of 
participation in the purchase of the real property to the current fair 
market value of the property.



Sec. 602.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 602.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place will, as a minimum, meet 
the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.

[[Page 58]]

    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third part 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 602.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 602.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.



Sec. 602.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 602.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 602.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will follow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of

[[Page 59]]

conduct governing the performance of their employees engaged in the 
award and administration of contracts. No employee, officer or agent of 
the grantee or subgrantee shall participate in selection, or in the 
award or administration of a contract supported by Federal funds if a 
conflict of interest, real or apparent, would be involved. Such a 
conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative analysis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.

[[Page 60]]

    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 602.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services, geographic location may be 
a selection criteria provided its application leaves an appropriate 
number of qualified firms, given the nature and size of the project, to 
compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000).

[[Page 61]]

If small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 602.36(d)(2)(i) apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with more than one source 
submitting an offer, and either a fixed-price or cost-reimbursement type 
contract is awarded. It is generally used when conditions are not 
appropriate for the use of sealed bids. If this method is used, the 
following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a

[[Page 62]]

delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular 
procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price reasonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 602.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or

[[Page 63]]

service specified is the one being proposed for purchase. This review 
generally will take place prior to the time the specification is 
incorporated into a solicitation document. However, if the grantee or 
subgrantee desires to have the review accomplished after a solicitation 
has been developed, the awarding agency may still review the 
specifications, with such review usually limited to the technical 
aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the system. Under a self-certification procedure, 
awarding agencies may wish to rely on written assurances from the 
grantee or subgrantee that it is complying with these standards. A 
grantee or subgrantee will cite specific procedures, regulations, 
standards, etc., as being in compliance with these requirements and have 
its system available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other

[[Page 64]]

clauses approved by the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to that specific 
contract for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).

[53 FR 8080, 8087 Mar. 11, 1988, as amended at 60 FR 19639, 19645, Apr. 
19, 1995]



Sec. 602.37  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 602.42 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and

[[Page 65]]

amount that apply to cash advances by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 602.10;
    (2) Section 602.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 602.21; and
    (4) Section 602.50.

              Reports, Records, Retention, and Enforcement



Sec. 602.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semi-annual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports shall be due 90 days after the grant year, quarterly or 
semi-annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such

[[Page 66]]

cases, the grantee must inform the Federal agency as soon as the 
following types of conditions become known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 602.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extend required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that the Federal agency finds unnecessary for 
its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with paragraph Sec. 602.41(e)(2)(iii) of this section.
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accural basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will

[[Page 67]]

be due 90 days after the expiration or termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction 
grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 602.41(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 602.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 602.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.
    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 602.41(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 602.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 602.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 602.41(b)(2).

[[Page 68]]



Sec. 602.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 602.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits its expenditure report for 
the last quarter of the Federal fiscal year. In all other cases, the 
retention period starts on the day the grantee submits its final 
expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of

[[Page 69]]

the United States, or any of their authorized representatives, shall 
have the right of access to any pertinent books, documents, papers, or 
other records of grantees and subgrantees which are pertinent to the 
grant, in order to make audits, examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records Unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 602.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 602.35).



Sec. 602.44  Termination for convenience.

    Except as provided in Sec. 602.43 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 602.43 
or paragraph (a) of this section.

[[Page 70]]



                 Subpart D--After-the-Grant Requirements



Sec. 602.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:
In accordance with Sec. 602.32(f), a grantee must submit an inventory of 
all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.



Sec. 602.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 602.42;
    (d) Property management requirements in Secs. 602.31 and 602.32; and
    (e) Audit requirements in Sec. 602.26.



Sec. 602.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Ch. II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.



                    Subpart E--Entitlement [Reserved]



PART 604--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
604.100  Conditions on use of funds.
604.105  Definitions.
604.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

604.200  Agency and legislative liaison.
604.205  Professional and technical services.
604.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

604.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

604.400  Penalties.
604.405  Penalty procedures.
604.410  Enforcement.

[[Page 71]]

                          Subpart E--Exemptions

604.500  Secretary of Defense.

                        Subpart F--Agency Reports

604.600  Semi-annual compilation.
604.605  Inspector General report.

Appendix A to Part 604--Certification Regarding Lobbying
Appendix B to Part 604--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121 (31 U.S.C. 1352); 42 U.S.C. 
1870.

    Source: 55 FR 6737, 6754, Feb. 26, 1990, unless otherwise noted.

    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 604.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 604.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency,

[[Page 72]]

including those subject to the Federal Acquisition Regulation (FAR), and 
any other acquisition contract for real or personal property or services 
not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates

[[Page 73]]

agency consideration of such person for receipt of such contract, grant, 
loan, cooperative agreement, loan insurance commitment, or loan 
guarantee commitment. An officer or employee who is employed by such 
person for less than 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person shall be considered to be regularly employed as soon as 
he or she is employed by such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 604.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraph (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraph 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but

[[Page 74]]

not made before that date, certifications shall be required at award or 
commitment, covering activities occurring between December 23, 1989, and 
the date of award or commitment. However, for awards and commitments in 
process prior to the December 23, 1989 effective date of these 
provisions, but not made before December 23, 1989, disclosure forms 
shall not be required at time of award or commitment but shall be filed 
within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 604.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 604.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 604.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 604.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as a 
condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not

[[Page 75]]

allowable under this section unless they provide advice and analysis 
directly applying their professional or technical expertise and unless 
the advice or analysis is rendered directly and solely in the 
preparation, submission or negotiation of a covered Federal action. 
Thus, for example, communications with the intent to influence made by a 
lawyer that do not provide legal advice or analysis directly and solely 
related to the legal aspects of his or her client's proposal, but 
generally advocate one proposal over another are not allowable under 
this section because the lawyer is not providing professional legal 
services. Similarly, communications with the intent to influence made by 
an engineer providing an engineering analysis prior to the preparation 
or submission of a bid or proposal are not allowable under this section 
since the engineer is providing technical services but not directly in 
the preparation, submission or negotiation of a covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 604.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 604.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 604.100 (a), does not apply in the case of any reasonable payment 
to a person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 604.110 (a) and (b) regarding 
filing a disclosure form by each person, if required, shall not apply 
with respect to professional or technical services rendered directly in 
the preparation, submission, or negotiation of any commitment providing 
for the United States to insure or guarantee a loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission

[[Page 76]]

or negotiation of a covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 604.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
Appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 604.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.



Sec. 604.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 604.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 604.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see Appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the

[[Page 77]]

Clerk of the House of Representatives a report containing a compilation 
of the information contained in the disclosure reports received during 
the six-month period ending on March 31 or September 30, respectively, 
of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 604.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

        Appendix A to Part 604  Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the

[[Page 78]]

extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

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       Appendix B to Part 604--Disclosure Form to Report Lobbying

[GRAPHIC] [TIFF OMITTED] TC01JA91.007


[[Page 80]]

[GRAPHIC] [TIFF OMITTED] TC01JA91.008



[[Page 81]]

[GRAPHIC] [TIFF OMITTED] TC01JA91.009



[[Page 82]]



PART 605--NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents




                      Subpart A--General Provisions

Sec.
605.0  Adoption of HHS regulations.
605.1  Purpose.
605.2  Application.
605.3  Definitions.
605.4  Discrimination prohibited.
605.5  Assurances required.
605.6  Remedial action, voluntary action, and self-evaluation.
605.7  Designation of responsible employee and adoption of grievance 
          procedures.
605.8  Notice.
605.9  Administrative requirements for small recipients.
605.10  Effect of state or local law or other requirements and effect of 
          employment opportunities.

                     Subpart B--Employment Practices

605.11  Discrimination prohibited.
605.12  Reasonable accommodation.
605.13  Employment criteria.
605.14  Preemployment inquiries.
605.15--605.20  [Reserved]

                    Subpart C--Program Accessibility

605.21  Discrimination prohibited.
605.22  Existing facilities.
605.23  New construction.
605.24--605.30  [Reserved]

        Subpart D--Preschool, Elementary, and Secondary Education

605.31  Application of this subpart.
605.32  Location and notification.
605.33  Free appropriate public education.
605.34  Educational setting.
605.35  Evaluation and placement.
605.36  Procedural safeguards.
605.37  Nonacademic services.
605.38  Preschool and adult education programs.
605.39  Private education programs.
605.40  [Reserved]

                   Subpart E--Postsecondary Education

605.41  Application of this subpart.
605.42  Admissions and recruitment.
605.43  Treatment of students; general.
605.44  Academic adjustments.
605.45  Housing.
605.46  Financial and employment assistance to students.
605.47  Nonacademic services.
605.48--605.50  [Reserved]

             Subpart F--Health, Welfare, and Social Services

605.51  Application of this subpart.
605.52  Health, welfare, and other social services.
605.53  Drug and alcohol addicts.
605.54  Education of institutionalized persons.
605.55--605.60  [Reserved]

                          Subpart G--Procedures

605.61  Procedures.
605.62--605.90  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 47 FR 8573, Mar. 1, 1982, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 605.0  Adoption of HHS regulations.

    The regulations of the Department of Health and Human Services on 
Nondiscrimination on the Basis of Handicap, 45 CFR part 84, including 
any amendments thereto, have been adopted almost in their entirety to 
programs and activities receiving Federal financial assistance from the 
National Science Foundation. The few changes in the Foundation's rules 
include a newly added sub-paragraph (5) to paragraph (k) of Sec. 605.3; 
and modifications in paragraph (j), Sec. 605.3; paragraph (a) of 
Sec. 605.5; paragraph (b) of Sec. 605.46; and Sec. 605.61. Paragraph (c) 
of Sec. 605.5 has been removed, and ``qualified handicapped persons'' 
has been substituted for ``handicapped persons'' wherever that phrase 
appears in Sec. 605.4(b)(5) and in Subpart C (Secs. 605.21 through 
605.23). The date for compliance with Sec. 605.33(d) has been changed.

[47 FR 8573, Mar. 1, 1982, as amended at 61 FR 51021, Sept. 30, 1996]



Sec. 605.1  Purpose.

    The purpose of this part is to effectuate section 504 of the 
Rehabilitation Act of 1973, which is designed to eliminate 
discrimination on the basis of handicap in any program or activity 
receiving Federal financial assistance.



Sec. 605.2  Application.

    This part applies to each recipient of Federal financial assistance 
from the

[[Page 83]]

National Science Foundation and to each program or activity that 
receives or benefits from such assistance.



Sec. 605.3  Definitions.

    As used in this part, the term:
    (a) The Act means the Rehabilitation Act of 1973, Public Law 93-112, 
as amended by the Rehabilitation Act Amendments of 1974, Public Law 93-
516, 29 U.S.C. 794.
    (b) Section 504 means section 504 of the Act.
    (c) Education of the Handicapped Act means that statute as amended 
by the Education for all Handicapped Children Act of 1975, Public Law 
94-142, 20 U.S.C. 1401 et seq.
    (d) Foundation means the National Science Foundation.
    (e) Director means the Director of the National Science Foundation.
    (f) Recipient means any state or its political subdivision, any 
instrumentality of a state or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which Federal financial assistance is extended directly or 
through another recipient, including any successor, assignee, or 
transferee of a recipient, but excluding the ultimate beneficiary of the 
assistance.
    (g) Applicant for assistance means one who submits an application, 
request, or plan required to be approved by a Foundation official or by 
a recipient as a condition to becoming a recipient.
    (h) Federal financial assistance means any grant, loan, contract 
(other than a procurement contract or a contract of insurance or 
guaranty), or any other arrangement by which the Foundation provides or 
otherwise makes available assistance in the form of:
    (1) Funds;
    (2) Services of Federal personnel; or
    (3) Real and personal property or any interest in or use of such 
property, including:
    (i) Transfers or leases of such property for less than fair market 
value or for reduced consideration; and
    (ii) Proceeds from a subsequent transfer or lease of such property 
if the Federal share of its fair market value is not returned to the 
Federal Government.
    (i) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property.
    (j) Handicapped person. (1) Handicapped persons means any person in 
the United States who (i) has a physical or mental impairment which 
substantially limits one or more major life activities, (ii) has a 
record of such an impairment, or (iii) is regarded as having such an 
impairment.
    (2) As used in paragraph (j)(1) of this section, the phrase:
    (i) Physical or mental impairment means (A) any physiological 
disorder or condition, cosmetic disfigurement, or anatomical loss 
affecting one or more of the following body systems: neurological; 
musculoskeletal; special sense organs; respiratory, including speech 
organs; cardiovascular; reproductive, digestive, genito-urinary; hemic 
and lymphatic; skin; and endocrine; or (B) any mental or psychological 
disorder, such as mental retardation, organic brain syndrome, emotional 
or mental illness, and specific learning disabilities.
    (ii) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (iii) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (iv) Is regarded as having an impairment means (A) has a physical or 
mental impairment that does not subtantially limit major life activities 
but that is treated by a recipient as constituting such a limitation; 
(B) has a physical or mental impairment that substantially limits major 
life activities only as a result of the attitudes of others toward such 
impairment; or (C) has none of the impairments defined in paragraph 
(j)(2)(i) of this section but is treated by a recipient as having such 
an impairment.
    (k) Qualified handicapped person means:

[[Page 84]]

    (1) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question;
    (2) With respect to public preschool elementary, secondary, or adult 
educational services, a handicapped person (i) of an age during which 
nonhandicapped persons are provided such services, (ii) of any age 
during which it is mandatory under state law to provide such services to 
handicapped persons, or (iii) to whom a state is required to provide a 
free appropriate public education under section 612 of the Education of 
the Handicapped Act; and
    (3) With respect to postsecondary and vocational education services, 
a handicapped person who meets the academic and technical standards 
requisite to admission or participation in the recipient's education 
program or activity;
    (4) With respect to other services, a handicapped person who meets 
the essential eligibility requirements for the receipt of such services.
    (5) With respect to scientific and technical experimentation, 
observation, or field work a person who meets the academic, scientific 
and technical standards for participation and any reasonable physical 
qualifications for participation. Physical qualifications are not 
``reasonable,'' however, if they can be obviated without unreasonable 
burden by modifying facilities or programs or by providing auxiliary 
aids. In determining whether the burdens are unreasonable, factors such 
as cost, risks, or sacrifice of legitimate program objectives may be 
considered. In exceptional cases psychological qualifications may be 
considered `reasonable physical qualifications' under this paragraph. 
Nothing in this provision or these regulations requires reversal of 
scientific judgments on research, including choice of experiments, 
protocols for experiments, location of observing sites, or the like that 
are considered necessary to any line of scientific inquiry by the 
research scientists involved.
    (l) Handicap means any condition or characteristic that renders a 
person a handicapped person as defined in paragraph (j) of this section.



Sec. 605.4  Discrimination prohibited.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity which receives or benefits from Federal financial assistance.
    (b) Discriminatory actions prohibited. (1) A recipient, in providing 
any aid, benefit, or service, may not, directly or through contractual, 
licensing, or other arrangements, on the basis of handicap:
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons unless such 
action is necessary to provide qualified handicapped persons with aid, 
benefits, or services that are as effective as those provided to others;
    (v) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit, or service to beneficiaries of the recipients program;
    (vi) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vii) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving an aid, benefit, or service.
    (2) For purposes of this part, aids, benefits, and services, to be 
equally effective, are not required to produce the identical result or 
level of achievement for handicapped and nonhandicapped persons, but 
must afford handicapped

[[Page 85]]

persons equal opportunity to obtain the same result, to gain the same 
benefit, or to reach the same level of achievement, in the most 
integrated setting appropriate to the person's needs.
    (3) Despite the existence of separate or different programs or 
activities provided in accordance with this part, a recipient may not 
deny a qualified handicapped person the opportunity to participate in 
such programs or activities that are not separate or different.
    (4) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration (i) that 
have the effect of subjecting qualified handicapped persons to 
discrimination on the basis of handicap, (ii) that have the purpose or 
effect of defeating or substantially impairing accomplishment of the 
objectives of the recipient's program with respect to handicapped 
persons, or (iii) that perpetuate the discrimination of another 
recipient if both recipients are subject to common administrative 
control or are agencies of the same State.
    (5) In determining the site or location of a facility, an applicant 
for assistance or a recipient may not make selections (i) that have the 
effect of excluding qualified handicapped persons from, denying them the 
benefits of, or otherwise subjecting them to discrimination under any 
program or activity that receives or benefits from Federal financial 
assistance or (ii) that have the purpose or effect of defeating or 
substantially impairing the accomplishment of the objectives of the 
program or activity with respect to qualified handicapped persons.
    (6) As used in this section, the aid, benefit, or service provided 
under a program or activity receiving or benefiting from Federal 
financial assistance includes any aid, benefit, or service provided in 
or through a facility that has been constructed, expanded, altered, 
leased or rented, or otherwise acquired, in whole or in part, with 
Federal financial assistance.
    (c) Programs limited by Federal law. The exclusion of nonhandicapped 
persons from the benefits of a program limited by Federal statute or 
executive order to handicapped persons or the exclusion of a specific 
class of handicapped persons from a program limited by Federal statute 
or executive order to a different class of handicapped persons is not 
prohibited by this part.



Sec. 605.5  Assurances required.

    (a) Assurances. Recipients of Federal financial assistance under a 
program or activity to which this part applies will assure NSF, in a 
manner specified by the Director, that the programs will be operated in 
compliance with this part.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended in the form of real property or to provide real 
property or structures on the property, the assurance will obligate the 
recipient or, in the case of a subsequent transfer, the transferee, for 
the period during which the real property or structures are used for the 
purpose for which Federal financial assistance is extended or for 
another purpose involving the provision of similar services or benefits.
    (2) In the case of Federal financial assistance extended to provide 
personal property, the assurance will obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases the assurance will obligate the recipient for 
the period during which Federal financial assistance is extended.



Sec. 605.6  Remedial action, voluntary action, and self-evaluation.

    (a) Remedial action. (1) If the Director finds that a recipient has 
discriminated against persons on the basis of handicap in violation of 
section 504 or this part, the recipient shall take such remedial action 
as the Director deems necessary to overcome the effects of the 
discrimination.
    (2) Where a recipient is found to have discriminated against persons 
on the basis of handicap in violation of section 504 or this part and 
where another recipient exercises control over the recipient that has 
discriminated, the Director, where appropriate, may require either or 
both recipients to take remedial action.
    (3) The Director may, where necessary to overcome the effects of 
discrimination in violation of section 504 or this part, require a 
recipient to take

[[Page 86]]

remedial action (i) with respect to handicapped persons who are no 
longer participants in the recipient's program but who were participants 
in the program when such discrimination occurred or (ii) with respect to 
handicapped persons who would have been participants in the program had 
the discrimination not occurred.
    (b) Voluntary action. A recipient may take steps, in addition to any 
action that is required by this part, to overcome the effects of 
conditions that resulted in limited participation in the recipient's 
program or activity by qualified handicapped persons.
    (c) Self-evaluation. (1) A recipient shall, within one year of the 
effective date of this part:
    (i) Evaluate, with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons, 
its current policies and practices and the effects thereof that do not 
or may not meet the requirements of this part;
    (ii) Modify, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
any policies and practices that do not meet the requirements of this 
part; and
    (iii) Take, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
appropriate remedial steps to eliminate the effects of any 
discrimination that resulted from adherence to these policies and 
practices.
    (2) A recipient that employs fifteen or more persons shall, for at 
least three years following completion of the evaluation required under 
paragraph (c)(1) of this section, maintain on file, make available for 
public inspection, and provide to the Director upon request: (i) A list 
of the interested person consulted (ii) a description of areas examined 
and any problems identified, and (iii) a description of any 
modifications made and any remedial steps taken.



Sec. 605.7  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. A recipient that employs 
fifteen or more persons shall designate at least one person to 
coordinate its efforts to comply with this part.
    (b) Adoption of grievance procedures. A recipient that employs 
fifteen or more persons shall adopt grievance procedures that 
incorporate appropriate due process standards and that provide for the 
prompt and equitable resolution of complaints alleging any action 
prohibited by this part. Such procedures need not be established with 
respect to complaints from applicants for employment or from applicants 
for admission to postsecondary educational institutions.



Sec. 605.8  Notice.

    (a) A recipient that employs fifteen or more persons shall take 
appropriate initial and continuing steps to notify participants, 
beneficiaries, applications, and employees, including those with 
impaired vision or hearing, and unions or professional organizations 
holding collective bargaining or professional agreements with the 
recipient that it does not discriminate on the basis of handicap in 
violation of section 504 and this part. The notification shall state, 
where appropriate, that the recipient does not discriminate in admission 
or access to, or treatment or employment in, its programs and 
activities. The notification shall also include an identification of the 
responsible employee designated pursuant to Sec. 605.7(a). A recipient 
shall make the initial notification required by this paragraph within 90 
days of the effective date of this part. Methods of initial and 
continuing notification may include the posting of notices, publication 
in newspapers and magazines, placement of notices in recipient's 
publication, and distribution of memoranda or other written 
communications.
    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants, or employees, it shall include 
in those materials or publications a statement of the policy described 
in paragraph (a) of this section. A recipient may meet the requirement 
of this paragraph either by including appropriate inserts in existing 
materials and publications or by revising

[[Page 87]]

and reprinting the materials and publications.



Sec. 605.9  Administrative requirements for small recipients.

    The Director may require any recipient with fewer than fifteen 
employees, or any class of such recipients, to comply with Secs. 605.7 
and 605.8, in whole or in part, when the Director finds a violation of 
this part or finds that such compliance will not significantly impair 
the ability of the recipient or class or recipients to provide benefits 
or services.



Sec. 605.10  Effect of state or local law or other requirements and effect of employment opportunities.

    (a) The obligation to comply with this part is not obviated or 
alleviated by the existence of any state or local law or other 
requirement that, on the basis of handicap, imposes prohibitions or 
limits upon the eligibility of qualified handicapped persons to receive 
services or to practice any occupation or profession.
    (b) The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for handicapped persons than for 
nonhandicapped persons.



                     Subpart B--Employment Practices



Sec. 605.11  Discrimination prohibited.

    (a) General. (1) No qualified handicapped person shall, on the basis 
of handicap, be subjected to discrimination in employment under any 
program or activity to which this part applies.
    (2) A recipient that receives assistance under the Education of the 
Handicapped Act shall take positive steps to employ and advance in 
employment qualified handicapped persons in programs assisted under that 
Act.
    (3) A recipient shall make all decisions concerning employment under 
any program or activity to which this part applies in a manner which 
ensures that discrimination on the basis of handicap does not occur and 
may not limit, segregate, or classify applicants or employees in any way 
that adversely affects their opportunities or status because of 
handicap.
    (4) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this subparagraph include relationships 
with employment and referral agencies, with labor unions, with 
organizations providing or administering fringe benefits to employees of 
the recipient, and with organizations providing training and 
apprenticeship programs.
    (b) Specific activities. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and the processing of applications for 
employment;
    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff and rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absence, sick leave, or any other leave;
    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (7) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, and selection for leaves of absence to pursue training;
    (8) Employer sponsored activities, including social or recreational 
programs; and
    (9) Any other term, condition, or privilege of employment.
    (c) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.



Sec. 605.12  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise

[[Page 88]]

qualified handicapped applicant or employee unless the recipient can 
demonstrate that the accommodation would impose an undue hardship on the 
operation of its program.
    (b) Reasonable accommodation may include: (1) Making facilities used 
by employees readily accessible to and usable by handicapped persons, 
and (2) job restructuring, part-time or modified work schedules, 
acquisition or modification or equipment or devices, the provision of 
readers or interpreters, and other similar actions.
    (c) In determining pursuant to paragraph (a) of this section whether 
an accommodation would impose an undue hardship on the operation of a 
recipient's program, factors to be considered include:
    (1) The overall size of the recipient's program with respect to 
number of employees, number and type of facilities, and size of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of the recipient's workforce; and
    (3) The nature and cost of the accommodation needed.
    (d) A recipient may not deny any employment opportunity to a 
qualified handicapped employee or applicant if the basis for the denial 
is the need to make reasonable accommodation to the physical or mental 
limitations of the employee or applicant.



Sec. 605.13  Employment criteria.

    (a) A recipient may not make use of any employment test or other 
selection criterion that screens out or tends to screen out handicapped 
persons or any class of handicapped persons unless: (1) The test score 
or other selection criterion, as used by the recipient, is shown to be 
job-related for the position in question, and (2) alternative job-
related tests or criteria that do not screen out or tend to screen out 
as many handicapped persons are not shown by the Director to be 
available.
    (b) A recipient shall select and administer tests concerning 
employment so as best to ensure that, when administered to an applicant 
or employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude, or whatever other factor the test 
purports to measure, rather than reflecting the applicant's or 
employee's impaired sensory, manual, or speaking skills (except where 
those skills are the factors that the test purports to measure).



Sec. 605.14  Preemployment inquiries.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
recipient may not conduct a preemployment medical examination or may not 
make preemployment inquiry of an applicant as to whether the applicant 
is a handicapped person or as to the nature or severity of a handicap. A 
recipient may, however, make preemployment inquiry into an applicant's 
ability to perform job-related functions.
    (b) When a recipient is taking remedial action to correct the 
effects of past discrimination pursuant to Sec. 605.6(a), when a 
recipient is taking voluntary action to overcome the effects of 
conditions that resulted in limited participation in its federally 
assisted program or activity pursuant to Sec. 605.6(b), or when a 
recipient is taking affirmative action pursuant to section 503 of the 
Act, the recipient may invite applicants for employment to indicate 
whether and to what extent they are handicapped, Provided, That:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary or 
affirmative action efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential as 
provided in paragraph (d) of this section, that refusal to provide it 
will not subject the applicant or employee to any adverse treatment, and 
that it will be used only in accordance with this part.
    (c) Nothing in this section shall prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty,

[[Page 89]]

Provided, That: (1) All entering employees are subjected to such an 
examination regardless of handicap, and (2) the results of such an 
examination are used only in accordance with the requirements of this 
part.
    (d) Information obtained in accordance with this section as to the 
medical condition or history of the applicant shall be collected and 
maintained on separate forms that shall be accorded confidentiality as 
medical records, except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons and regarding necessary 
accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Government officials investigating compliance with the Act shall 
be provided relevant information upon request.
Secs. 605.15--605.20  [Reserved]



                    Subpart C--Program Accessibility



Sec. 605.21  Discrimination prohibited.

    No qualified handicapped person shall, because a recipient's 
facilities are inaccessible to or unusable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity to which 
this part applies.



Sec. 605.22  Existing facilities.

    (a) Program accessibility. A recipient shall operate each program or 
activity to which this part applies so that the program or activity, 
when viewed in its entirety, is readily accessible to qualified 
handicapped persons. This paragraph does not require a recipient to make 
each of its existing facilities or every part of a facility accessible 
to and usable by qualified handicapped persons.
    (b) Methods. A recipient may comply with the requirements of 
paragraph (a) of this section through such means as redesign of 
equipment, reassignment of classes or other services to accessible 
buildings, assignment of aides to beneficiaries, home visits, delivery 
of health, welfare, or other social services at alternate accessible 
sites, alteration of existing facilities and construction of new 
facilities in conformance with the requirements of Sec. 605.23, or any 
other methods that result in making its program or activity accessible 
to qualified handicapped persons. A recipient is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with paragraph (a) of this section. In 
choosing among available methods for meeting the requirement of 
paragraph (a) of this section, a recipient shall give priority to those 
methods that offer programs and activities to qualified handicapped 
persons in the most integrated setting appropriate.
    (c) Small health, welfare, or other social service providers. If a 
recipient with fewer than fifteen employees that provides health, 
welfare, or other social services finds, after consultation with a 
qualified handicapped person seeking its services, that there is no 
method of complying with paragraph (a) of this section other than making 
a significant alteration in its existing facilities, the recipient may, 
as an alternative, refer the qualified handicapped person to other 
providers of those services that are accessible.
    (d) Time period. A recipient shall comply with the requirement of 
paragraph (a) of this section within sixty days of the effective date of 
this part except that where structural changes in facilities are 
necessary, such changes shall be made within three years of the 
effective date of this part, but in any event as expeditiously as 
possible.
    (e) Transition plan. In the event that structural changes to 
facilities are necessary to meet the requirement of paragraph (a) of 
this section, a recipient shall develop, within six months of the 
effective date of this part, a transition plan setting forth the steps 
necessary to complete such changes. The plan shall be developed with the 
assistance of interested persons, including qualified handicapped 
persons or organizations representing qualified handicapped persons. A 
copy of the transition plan shall be made available for

[[Page 90]]

public inspection. The plan shall, at a minimum:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility of its program or activity to qualified 
handicapped persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and, if the time period of the transition 
plan is longer than one year, identify the steps of that will be taken 
during each year of the transition period; and
    (4) Indicate the person responsible for implementation of the plan.
    (f) Notice. The recipient shall adopt and implement procedures to 
ensure that interested persons, including persons with impaired vision 
or hearing, can obtain information as to the existence and location of 
services, activities, and facilities that are accessible to and usuable 
by qualified handicapped persons.



Sec. 605.23  New construction.

    (a) Design and construction. Each facility or part of a facility 
constructed by, on behalf of, or for the use of a recipient shall be 
designed and constructed in such manner that the facility or part of the 
facility is readily accessible to and usable by qualified handicapped 
persons, if the construction was commenced after the effective date of 
this part.
    (b) Alteration. Each facility or part of a facility which is altered 
by, on behalf of, or for the use of a recipient after the effective date 
of this part in a manner that affects or could affect the usability of 
the facility or part of the facility shall, to the maximum extent 
feasible, be altered in such manner that the altered portion of the 
facility is readily accessible to and usable by qualified handicapped 
persons.
    (c) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms and other spaces that, because of their intended use, will not 
require accessibility to the public or beneficiaries or result in the 
employment or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.

[47 FR 8573, Mar. 1, 1982, as amended at 55 FR 52138, 52142, Dec. 19, 
1990]
Secs. 605.24--605.30  [Reserved]



        Subpart D--Preschool, Elementary, and Secondary Education



Sec. 605.31  Application of this subpart.

    Subpart D applies to preschool, elementary, secondary, and adult 
education programs and activities that receive or benefit from Federal 
financial assistance and to recipients that operate, or that receive or 
benefit from Federal financial assistance for the operation of, such 
programs or activities.



Sec. 605.32  Location and notification.

    A recipient that operates a public elementary or secondary education 
program shall annually:
    (a) Undertake to identify and locate every qualified handicapped 
person residing in the recipient's jurisdiction who is not receiving a 
public education; and
    (b) Take appropriate steps to notify handicapped persons and their 
parents or guardians or the recipient's duty under this subpart.

[[Page 91]]



Sec. 605.33  Free appropriate public education.

    (a) General. A recipient that operates a public elementary or 
secondary education program shall provide a free appropriate public 
education to each qualified handicapped person who is in the recipient's 
jurisdiction, regardless of the nature or severity of the person's 
handicap.
    (b) Appropriate education. (1) For the purpose of this subpart, the 
provision of an appropriate education is the provision of regular or 
special education and related aids and services that (i) are designed to 
meet individual educational needs of handicapped persons as adequately 
as the needs of nonhandicapped persons are met and (ii) are based upon 
adherence to procedures that satisfy the requirements of Secs. 605.34, 
605.35 and 605.36.
    (2) Implementation of an individualized education program developed 
in accordance with the Education of the Handicapped Act is one means of 
meeting the standard established in paragraph (b)(1)(i) of this section.
    (3) A recipient may place a handicapped person in or refer such 
person to a program other than the one that it operates as its means of 
carrying out the requirements of this subpart. If so, the recipient 
remains responsible for ensuring that the requirements of this subpart 
are met with respect to any handicapped person so placed or referred.
    (c) Free education--(1) General.  For the purpose of this section, 
the provision of a free education is the provision of educational and 
related services without cost to the handicapped person or to his or her 
parents or guardian, except for those fees that are imposed on non-
handicapped persons or their parents or guardian. It may consist either 
of the provision of free services or, if a recipient places a 
handicapped person in or refers such person to a program not operated by 
the recipient as its means of carrying out the requirements of this 
subpart, of payment for the costs of the program. Funds available from 
any public or private agency may be used to meet the requirements of 
this subpart. Nothing in this section shall be construed to relieve an 
insurer or similar third party from an otherwise valid obligation to 
provide or pay for services provided to a handicapped person.
    (2) Transportation. If a recipient places a handicapped person in or 
refers such person to a program not operated by the recipient as its 
means of carrying out the requirements of this subpart, the recipient 
shall ensure that adequate transportation to and from the program is 
provided at no greater cost than would be incurred by the person or his 
or her parents or guardian if the person were placed in the program 
operated by the recipient.
    (3) Residential placement. If placement in a public or private 
residential program is necessary to provide a free appropriate public 
education to a handicapped person because of his or her handicap, the 
program, including non-medical care and room and board, shall be 
provided at no cost to the person or his or her parents or guardian.
    (4) Placement of handicapped persons by parents. If a recipient has 
made available, in conformance with the requirements of this section and 
Sec. 605.34, a free appropriate public education to a handicapped person 
and the person's parents or guardian chooses to place the person in a 
private school, the recipient is not required to pay for the person's 
education in the private school. Disagreements between a parent or 
guardian and a recipient regarding whether the recipient has made such a 
program available or otherwise regarding the question of financial 
responsibility are subject to the due process procedures of Sec. 605.36.
    (d) Compliance. A recipient may not exclude any qualified 
handicapped person from a public elementary or secondary education after 
the effective date of this part. A recipient that is not, on the 
effective date of this regulation, in full compliance with the other 
requirements of the preceding paragraphs of this section shall meet such 
requirements at the earliest practicable time and in no event later than 
July 1, 1983.



Sec. 605.34  Educational setting.

    (a) Academic setting. A recipient to which this subpart applies 
shall educate, or shall provide for the education of, each qualified 
handicapped person

[[Page 92]]

in its jurisdiction with persons who are not handicapped to the maximum 
extent appropriate to the needs of the handicapped person. A recipient 
shall place a handicapped person in the regular educational environment 
operated by the recipient unless it is demonstrated by the recipient 
that the education of the person in the regular environment with the use 
of supplementary aids and services cannot be achieved satisfactorily. 
Whenever a recipient places a person in a setting other than the regular 
educational environment pursuant to this paragraph, it shall take into 
account the proximity of the alternate setting to the person's home.
    (b) Nonacademic settings. In providing or arranging for the 
provision of nonacademic and extracurricular services and activities, 
including meals, recess periods, and the services and activities set 
forth in Sec. 605.37(a)(2), a recipient shall ensure that handicapped 
persons participate with nonhandicapped persons in such activities and 
services to the maximum extent appropriate to the needs of the 
handicapped person in question.
    (c) Comparable facilities. If a recipient, in compliance with 
paragraph (a) of this section, operates a facility that is identifiable 
as being for handicapped persons, the recipient shall ensure that the 
facility and the services and activities provided therein are comparable 
to the other facilities, services, and activities of the recipient.



Sec. 605.35  Evaluation and placement.

    (a) Preplacement evaluation. A recipient that operates a public 
elementary or secondary education program shall conduct an evaluation in 
accordance with the requirements of paragraph (b) of this section of any 
person who, because of handicap, needs or is believed to need special 
education or related services before taking any action with respect to 
the initial placement of the person in a regular or special education 
program and any subsequent significant change in placement.
    (b) Evaluation procedures. A recipient to which this subpart applies 
shall establish standards and procedures for the evaluation and 
placement of persons who, because of handicap, need or are believed to 
need special education or related services which ensure that:
    (1) Tests and other evaluation materials have been validated for the 
specific purpose for which they are used and are administered by trained 
personnel in conformance with the instructions provided by their 
producer;
    (2) Tests and other evaluation materials include those tailored to 
assess specific areas of educational need and not merely those which are 
designed to provide a single general intelligence quotient; and
    (3) Tests are selected and administered so as best to ensure that, 
when a test is administered to a student with impaired sensory, manual, 
or speaking skills, the test results accurately reflect the student's 
aptitude or achievement level or whatever other factor the test purports 
to measure, rather than reflecting the student's impaired sensory, 
manual, or speaking skills (except where those skills are the factors 
that the test purports to measure).
    (c) Placement procedures. In interpreting evaluation data and in 
making placement decisions, a recipient shall (1) draw upon information 
from a variety of sources, including aptitude and achievement tests, 
teacher recommendations, physical condition, social or cultural 
background, and adaptive behavior, (2) establish procedures to ensure 
that information obtained from all such sources is documented and 
carefully considered, (3) ensure that the placement decision is made by 
a group of persons, including persons knowledgeable about the child, the 
meaning of the evaluation data, and the placement options, and (4) 
ensure that the placement decision is made in conformity with 
Sec. 605.34.
    (d) Reevaluation. A recipient to which this section applies shall 
establish procedures, in accordance with paragraph (b) of this section, 
for periodic reevaluation of students who have been provided special 
education and related services. A reevaluation procedure consistent with 
the Education for the Handicapped Act is one means of meeting this 
requirement.

[[Page 93]]



Sec. 605.36  Procedural safeguards.

    A recipient that operates a public elementary or secondary education 
program shall establish and implement, with respect to actions regarding 
the identification, evaluation, or educational placement of persons who, 
because of handicap, need or are believed to need special instruction or 
related services, a system of procedural safeguards that includes 
notice, an opportunity for the parents or guardian of the person to 
examine relevant records, an impartial hearing with opportunity for 
participation by the person's parents or guardian and representation by 
counsel, and a review procedure. Compliance with the procedural 
safeguards of section 615 of the Education of the Handicapped Act is one 
means of meeting this requirement.



Sec. 605.37  Nonacademic services.

    (a) General. (1) A recipient to which this subpart applies shall 
provide nonacademic and extracurricular services and activities in such 
manner as is necessary to afford handicapped students an equal 
opportunity for participation in such services and activities.
    (2) Nonacademic and extracurricular services and activities may 
include counseling services, physical recreational athletics, 
transportation, health services, recreational activities, special 
interest groups or clubs sponsored by the recipients, referrals to 
agencies which provide assistance to handicapped persons, and employment 
of students, including both employment by the recipient and assistance 
in making available outside employment.
    (b) Counseling services. A recipient to which this subpart applies 
that provides personal, academic, or vocational counseling, guidance, or 
placement services to its students shall provide these services without 
discrimination on the basis of handicap. The recipient shall ensure that 
qualified handicapped students are not counseled toward more restrictive 
career objectives than are nonhandicapped students with similar 
interests and abilities.
    (c) Physical education and athletics. (1) In providing physical 
education courses and athletics and similar programs and activities to 
any of its students, a recipient to which this subpart applies may not 
discriminate on the basis of handicap. A recipient that offers physical 
education courses or that operates or sponsors interscholastic, club, or 
intramural athletics shall provide to qualified handicapped students an 
equal opportunity for participation in these activities.
    (2) A recipient may offer to handicapped students physical education 
and athletic activities that are separate or different from those 
offered to nonhandicapped students only if separation or differentiation 
is consistent with the requirements of Sec. 605.34 and only if no 
qualified handicapped student is denied the opportunity to compete for 
teams or to participate in courses that are not separate or different.



Sec. 605.38  Preschool and adult education programs.

    A recipient to which this subpart applies that operates a preschool 
education or day care program or activity or an adult education program 
or activity may not, on the basis of handicap, exclude qualified 
handicapped persons from the program or activity and shall take into 
account the needs of such persons in determining the aid, benefits, or 
services to be provided under the program or activity.



Sec. 605.39  Private education programs.

    (a) A recipient that operates a private elementary or secondary 
education program may not, on the basis of handicap, exclude a qualified 
handicapped person from such program if the person can, with minor 
adjustments, be provided an appropriate education, as defined in 
Sec. 605.33(b)(1), within the recipient's program.
    (b) A recipient to which this section applies may not charge more 
for the provision of an appropriate education to handicapped persons 
than to nonhandicapped persons except to the extent that any additional 
charge is justified by a substantial increase in cost to the recipient.
    (c) A recipient to which this section applies that operates special 
education programs shall operate such programs in accordance with the 
provisions of Secs. 605.35 and 605.36. Each recipient to which this 
section applies is subject to

[[Page 94]]

the provisions of Secs. 605.34, 605.37 and 605.38.
Sec. 605.40  [Reserved]



                   Subpart E--Postsecondary Education



Sec. 605.41  Application of this subpart.

    Subpart E applies to postsecondary education programs and 
activities, including postsecondary vocational education programs and 
activities, that receive or benefit from Federal financial assistance 
and to recipients that operate, or that receive or benefit from Federal 
financial assistance for the operation of, such programs or activities.



Sec. 605.42  Admissions and recruitment.

    (a) General. Qualified handicapped persons may not, on the basis of 
handicap, be denied admission or be subjected to discrimination in 
admission or recruitment by a recipient to which this subpart applies.
    (b) Admissions. In administering its admission policies, a recipient 
to which this subpart applies:
    (1) May not apply limitations upon the number or proportion of 
handicapped persons who may be admitted;
    (2) May not make use of any test or criterion for admission that has 
a disproportionate, adverse effect on handicapped persons or any class 
of handicapped persons unless (i) the test or criterion, as used by the 
recipient, has been validated as a predictor of success in the education 
program or activity in question and (ii) alternate tests or criteria 
that have a less disproportionate, adverse effect are not shown by the 
Director to be available.
    (3) Shall assure itself that (i) admissions tests are selected and 
administered so as best to ensure that, when a test is administered to 
an applicant who has a handicap that impairs sensory, manual, or 
speaking skills, the test results accurately reflect the applicant's 
aptitude or achievement level or whatever other factor the test purports 
to measure, rather than reflecting the applicant's impaired sensory, 
manual, or speaking skills (except where those skills are the factors 
that the test purports to measure); (ii) admissions tests that are 
designed for persons with impaired sensory, manual, or speaking skills 
are offered as often and in as timely a manner as are other admissions 
tests; and (iii) admissions tests are administered in facilities that, 
on the whole, are accessible to handicapped persons; and
    (4) Except as provided in paragraph (c) of this section, may not 
make preadmission inquiry as to whether an applicant for admission is a 
handicapped person but, after admission, may make inquiries on a 
confidential basis as to handicaps that may require accommodation.
    (c) Preadmission inquiry exception. When a recipient is taking 
remedial action to correct the effects of past discrimination pursuant 
to Sec. 605.6(a) or when a recipient is taking voluntary action to 
overcome the effects of conditions that resulted in limited 
participation in its federally assisted program or activity pursuant to 
Sec. 605.6(6), the recipient may invite applicants for admission to 
indicate whether and to what extent they are handicapped, Provided, 
That:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary action 
efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential, that 
refusal to provide it will not subject the applicant to any adverse 
treatment, and that it will be used only in accordance with this part.
    (d) Validity studies. For the purpose of paragraph (b)(2) of this 
section, a recipient may base prediction equations on first year grades, 
but shall conduct periodic validity studies against the criterion of 
overall success in the education program or activity in question in 
order to monitor the general validity of the test scores.



Sec. 605.43  Treatment of students; general.

    (a) No qualified handicapped student shall, on the basis of 
handicap, be excluded from participation in, be denied

[[Page 95]]

the benefits of, or otherwise be subjected to discrimination under any 
academic, research, occupational training, housing, health insurance, 
counseling, financial aid, physical education, athletics, recreation, 
transportation, other extracurricular, or other postsecondary education 
program or activity to which this subpart applies.
    (b) A recipient to which this subpart applies that considers 
participation by students in education programs or activities not 
operated wholly by the recipient as part of, or equivalent to, an 
education program or activity operated by the recipient shall assure 
itself that the other education program or activity, as a whole, 
provides an equal opportunity for the participation of qualified 
handicapped persons.
    (c) A recipient to which this subpart applies may not, on the basis 
of handicap, exclude any qualified handicapped student from any course, 
course of study, or other part of its education program or activity.
    (d) A recipient to which this subpart applies shall operate its 
programs and activities in the most integrated setting appropriate.



Sec. 605.44  Academic adjustments.

    (a) Academic requirements. A recipient to which this subpart applies 
shall make such modifications to its academic requirements as are 
necessary to ensure that such requirements do not discriminate or have 
the effect of discriminating, on the basis of handicap, against a 
qualified handicapped applicant or student. Academic requirements that 
the recipient can demonstrate are essential to the program of 
instruction being pursued by such student or to any directly related 
licensing requirement will not be regarded as discriminatory within the 
meaning of this section. Modifications may include changes in the length 
of time permitted for the completion of degree requirements, 
substitution of specific courses required for the completion of degree 
requirements, and adaptation of the manner in which specific courses are 
conducted.
    (b) Other rules. A recipient to which this subpart applies may not 
impose upon handicapped students other rules, such as the prohibition of 
tape recorders in classrooms or of dog guides in campus buildings, that 
have the effect of limiting the participation of handicapped students in 
the recipient's education program or activity.
    (c) Course examinations. In its course examinations or other 
procedures for evaluating students' academic achievement in its program, 
a recipient to which this subpart applies shall provide such methods for 
evaluating the achievement of students who have a handicap that impairs 
sensory, manual, or speaking skills as will best ensure that the results 
of the evaluation represents the student's achievement in the course, 
rather than reflecting the student's impaired sensory, manual, or 
speaking skills (except where such skills are the factors that the test 
purports to measure).
    (d) Auxiliary aids. (1) A recipient to which this subpart applies 
shall take such steps as are necessary to ensure that no handicapped 
student is denied the benefits of, excluded from participation in, or 
otherwise subjected to discrimination under the education program or 
activity operated by the recipient because of the absence of educational 
auxiliary aids for students with impaired sensory, manual, or speaking 
skills.
    (2) Auxiliary aids may include taped texts, interpreters or other 
effective methods of making orally delivered materials available to 
students with hearing impairments, readers in libraries for students 
with visual impairments, classroom equipment adapted for use by students 
with manual impairments, and other similar services and actions. 
Recipients need not provide attendents, individually prescribed devices, 
readers for personal use or study, or other devices or services of a 
personal nature.



Sec. 605.45  Housing.

    (a) Housing provided by the recipient. A recipient that provides 
housing to its nonhandicapped students shall provide comparable, 
convenient, and accessible housing to handicapped students at the same 
cost as to others. At the end of the transition period provided for in 
subpart C, such housing shall be available in sufficient quantity and 
variety

[[Page 96]]

so that the scope of handicapped students' choice of living 
accommodations is, as a whole, comparable to that of nonhandicapped 
students.
    (b) Other housing. A recipient that assists any agency, 
organization, or person in making housing available to any of its 
students shall take such action as may be necessary to assure itself 
that such housing is, as a whole, made available in a manner that does 
not result in discrimination on the basis of handicap.



Sec. 605.46  Financial and employment assistance to students.

    (a) Provision of financial assistance. (1) In providing financial 
assistance to qualified handicapped persons, a recipient to which this 
subpart applies may not (i), on the basis of handicap, provide less 
assistance than is provided to nonhandicapped persons, limit eligibility 
for assistance, or otherwise discriminate or (ii) assist any entity or 
person that provides assistance to any of the recipient's students in a 
manner that discriminates against qualified handicapped persons on the 
basis of handicap.
    (2) A recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established under wills, trusts, bequests, or similar legal instruments 
that require awards to be made on the basis of factors that discriminate 
or have the effect of discriminating on the basis of handicap only if 
the overall effect of the award of scholarships, fellowships, and other 
forms of financial assistance is not discriminatory on the basis of 
handicap.
    (b) Assistance in making available outside employment. A recipient 
that helps its students to obtain employment shall assure itself that 
the employment opportunities it helps to make available to students are, 
as a whole, made available in a manner that would not violate subpart B 
if they were provided by the recipient.
    (c) Employment of students by recipients. A recipient that employs 
any of its students may not do so in a manner that violates subpart B.



Sec. 605.47  Nonacademic services.

    (a) Physical education and athletics. (1) In providing physical 
education courses and athletics and similar programs and activities to 
any of its students, a recipient to which this subpart applies may not 
discriminate on the basis of handicap. A recipient that offers physical 
education courses or that operates or sponsors intercollegiate, club, or 
intramural athletics shall provide to qualified handicapped students an 
equal opportunity for participation in these activities.
    (2) A recipient may offer to handicapped students physical education 
and athletic activities that are separate or different only if 
separation or differentiation is consistent with the requirements of 
Sec. 605.43(d) and only if no qualified handicapped student is denied 
the opportunity to compete for teams or to participate in courses that 
are not separate or different.
    (b) Counseling and placement services. A recipient to which this 
subpart applies that provides personal, academic, or vocational 
counseling, guidance, or placement services to its students shall 
provide these services without discrimination on the basis of handicap. 
The recipient shall ensure that qualified handicapped students are not 
counseled toward more restrictive career objectives than are 
nonhandicapped students with similar interests and abilities. This 
requirement does not preclude a recipient from providing factual 
information about licensing and certification requirements that may 
present obstacles to handicapped persons in their pursuit of particular 
careers.
    (c) Social organizations. A recipient that provides significant 
assistance to fraternities, sororities, or similar organizations shall 
assure itself that the membership practices of such organizations do not 
permit discrimination otherwise prohibited by this subpart.
Secs. 605.48--605.50  [Reserved]



             Subpart F--Health, Welfare, and Social Services



Sec. 605.51  Application of this subpart.

    Subpart F applies to health, welfare, and other social service 
programs and

[[Page 97]]

activities that receive or benefit from Federal financial assistance and 
to recipients that operate, or that receive or benefit from Federal 
financial assistance for the operation of, such programs or activities.



Sec. 605.52  Health, welfare, and other social services.

    (a) General. In providing health, welfare, or other social services 
or benefits, a recipient may not, on the basis of handicap:
    (1) Deny a qualified handicapped person these benefits or services;
    (2) Afford a qualified handicapped person an opportunity to receive 
benefits or services that is not equal to that offered nonhandicapped 
persons;
    (3) Provide a qualified handicapped person which benefits or 
services that are not as effective (as defined in Sec. 605.4(b)) as the 
benefits or services provided to others;
    (4) Provide benefits or services in a manner that limits or has the 
effect of limiting the participation of qualified handicapped persons; 
or
    (5) Provide different or separate benefits or services to 
handicapped persons except where necessary provide qualified handicapped 
persons with benefits and services that are as effective as those 
provided to others.
    (b) Notice. A recipient that provides notice concerning benefits or 
services or written material concerning waivers of rights or consent to 
treatment shall take such steps as are necessary to ensure that 
qualified handicapped persons, including those with impaired sensory or 
speaking skills, are not denied effective notice because of their 
handicap.
    (c) Emergency treatment for the hearing impaired. A recipient 
hospital that provides health services or benefits shall establish a 
procedure for effective communication with persons with impaired hearing 
for the purpose of providing emergency health care.
    (d) Auxiliary aids. (1) A recipient to which this subpart applies 
that employs fifteen or more persons shall provide appropriate auxiliary 
aids to persons with impaired sensory, manual, or speaking skills, where 
necessary to afford such persons an equal opportunity to benefit from 
the service in question.
    (2) The Director may require recipients with fewer than fifteen 
employees to provide auxiliary aids where the provision of aids would 
not significantly impair the ability of the recipient to provide its 
benefits or services.
    (3) For the purpose of this paragraph, auxiliary aids may include 
brailled and taped material, interpreters, and other aids for persons 
with impaired hearing or vision.



Sec. 605.53  Drug and alcohol addicts.

    A recipient to which this subpart applies that operates a general 
hospital or outpatient facility may not discriminate in admission or 
treatment against a drug or alcohol abuser or alcoholic who is suffering 
from a medical condition, because of the person's drug or alcohol abuse 
or alcoholism.



Sec. 605.54  Education of institutionalized persons.

    A recipient to which this subpart applies and that operates or 
supervises a program or activity for persons who are institutionalized 
because of handicap shall ensure that each qualified handicapped person, 
as defined in Sec. 605.3(k)(2), in its program or activity is provided 
an appropriate education, as defined in Sec. 605.33(b). Nothing in this 
section shall be interpreted as altering in any way the obligations of 
recipients under subpart D.
Secs. 605.55--605.60  [Reserved]



                          Subpart G--Procedures



Sec. 605.61  Procedures.

    The procedural provisions applicable to title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in 
Secs. 611.6 through 611.10 of this title (45 CFR). In the event that the 
Department of Education or the Department of Health and Human Services 
conducts a hearing under this part on behalf of NSF, the provisions of 
45 CFR 84.61 shall also apply except that the Director of NSF or his 
designee shall also be ``the responsible Department official'' for 
purposes of 45 CFR 81.102 and 81.121 and ``the reviewing authority'' for 
purposes of 45 CFR 81.103, 81.104, and 81.105. Also, in such cases, the 
Director of NSF rather than

[[Page 98]]

the Secretary of HHS or Education shall conduct the review provided for 
in 45 CFR 81.106.
Secs. 605.62--605.90  [Reserved]



PART 606--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE NATIONAL SCIENCE FOUNDATION--Table of Contents




Sec.
606.1  Purpose.
606.2  Application.
606.3  Definitions.
606.4--606.9  [Reserved]
606.10  Self-evaluation.
606.11  Notice.
606.12--606.29  [Reserved]
606.30  General prohibitions against discrimination.
606.31--606.39  [Reserved]
606.40  Employment.
606.41--606.49  [Reserved]
606.50  Program accessibility: Discrimination prohibited.
606.51  Program accessibility: Existing facilities.
606.52  Program accessibility: New construction and alterations.
606.53--606.59  [Reserved]
606.60  Communications.
606.61--606.69  [Reserved]
606.70  Complaint procedures.
606.71--606.99  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 54 FR 4791, Jan. 31, 1989, unless otherwise noted.



Sec. 606.1  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 606.2  Application.

    This part applies to all programs or activities conducted by the 
Foundation, except for programs or activities conducted outside the 
United States that do not involve individuals with handicaps in the 
United States. Programs and activities receiving Federal financial 
assistance from the Foundation are covered by 45 CFR part 605.



Sec. 606.3  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the Foundation. For example, auxiliary aids 
useful for persons with impaired vision include readers, Brailled 
materials, audio recordings, and other similar services and devices. 
Auxiliary aids useful for persons with impaired hearing include 
telephone handset amplifiers, telephones compatible with hearing aids, 
telecommunication devices for deaf persons (TDD's), interpreters, note 
takers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the Foundation's alleged 
discriminatory action in sufficient detail to inform the Foundation of 
the nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Foundation means the National Science Foundation.
    Individual with handicaps means any person in the United States who 
has a physical or mental impairment that substantially limits one or 
more major life activities, has a record of such an impairment, or is 
regarded as having such an impairment. As used in this definition, the 
phrase:
    (1) Physical or mental impairment includes--

[[Page 99]]

    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the Foundation as 
constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the Foundation as having such an 
impairment.

               Qualified individual with handicaps means--

     (1) With respect to any Foundation program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
Foundation can demonstrate would result in a fundamental alteration in 
its nature;
     (2) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
     (3) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this part by Sec. 606.40.
     Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810); 
and the Civil Rights Restoration Act of 1987 (Pub. L. 100-259, 102 Stat. 
28). As used in this part, section 504 applies only to programs or 
activities conducted by Executive agencies and not to federally assisted 
programs.
Secs. 606.4--606.9  [Reserved]



Sec. 606.10  Self-evaluation.

     (a) The Foundation shall, within one year of the effective date of 
this part, evaluate its current policies and practices, and the effects 
thereof, that do not or may not meet the requirements of this part, and, 
to the extent modification of any such policies and practices is 
required, the Foundation shall proceed to make the necessary 
modifications.
     (b) The Foundation shall provide an opportunity to interested 
persons, including individuals with handicaps or organizations 
representing individuals with handicaps, to participate in the self-
evaluation process by submitting comments (both oral and written).
     (c) The Foundation shall, for at least three years following 
completion of the evaluation required under paragraph (a) of this 
section, maintain on file and make available for public inspection:

[[Page 100]]

     (1) A list of the interested persons who made comments;
    (2) A description of areas examined and any problems identified; and
     (3) A description of any modifications made.



Sec. 606.11   Notice.

     The Foundation shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the Foundation and make such 
information available to them in such manner as the Director of the 
Foundation finds necessary to apprise such persons of the protections 
against discrimination assured them by section 504 and this regulation.
Secs. 606.12--606.29  [Reserved]



Sec. 606.30   General prohibitions against discrimination.

     (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the Foundation.
     (b)(1) The Foundation, in providing any aid, benefit, or service, 
may not, directly or through contractual, licensing, or other 
arrangements, on the basis of handicap--
     (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
     (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
     (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
     (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others;
     (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards; or
     (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
     (2) The Foundation may not deny a qualified individual with 
handicaps the opportunity to participate in programs or activities that 
are not separate or different, despite the existence of permissibly 
separate or different programs or activities.
     (3) The Foundation may not, directly or through contractual or 
other arrangements, utilize criteria or methods of administration the 
purpose or effect of which would--
     (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The Foundation may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude qualified individuals with handicaps from, deny them the 
benefits of, or otherwise subject them to discrimination under any 
program or activity conducted by the Foundation; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The Foundation, in the selection of procurement contractors, may 
not use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of

[[Page 101]]

individuals with handicaps is not prohibited by this part.
    (d) The Foundation shall administer programs and activities in the 
most integrated setting appropriate to the needs of qualified 
individuals with handicaps.
Secs. 606.31--606.39  [Reserved]



Sec. 606.40  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the Foundation. The definitions, requirements, 
and procedures of section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791), as established by the Equal Employment Opportunity 
Commission in 29 CFR part 1613, shall apply to employment in federally 
conducted programs or activities.
Secs. 606.41--606.49  [Reserved]



Sec. 606.50  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 606.51, no qualified individual 
with handicaps shall, because the Foundation's facilities are 
inaccessible to or unusable by individuals with handicaps, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the Foundation.



Sec. 606.51  Program accessibility: Existing facilities.

    (a) General. The Foundation shall operate each program or activity 
so that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the Foundation to make each of its existing 
facilities accessible to and usable by individuals with handicaps; or
    (2) Require the Foundation to take any action that it can 
demonstrate would result in a fundamental alteration in the nature of a 
program or activity or in undue financial and administrative burdens. In 
those circumstances where Foundation personnel believe that the proposed 
action would fundamentally alter the program or activity or would result 
in undue financial and administrative burdens, the Foundation has the 
initial burden of establishing that compliance with Sec. 606.51(a) would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the Foundation 
Director or his or her designee after considering all Foundation 
resources available for use in the funding and operation of the 
conducted program or activity, and must be accompanied by a written 
statement of the reasons for reaching that conclusion. If an action 
would result in such an alteration or burdens, the Foundation shall take 
any other action that would not result in such an alteration or such 
burdens but would nevertheless ensure that individuals with handicaps 
receive the benefits and services of the program or activity.
    (b) Methods. The Foundation may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to beneficiaries, 
home visits, delivery of services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible rolling stock, or any other methods that result in 
making its programs or activities readily accessible to and usable by 
individuals with handicaps. The Foundation is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with this section. The Foundation, in 
making alterations to existing buildings, shall meet accessibility 
requirements to the extent compelled by the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), and any regulations 
implementing it. In choosing among available methods for meeting the 
requirements of this section, the Foundation shall give priority to 
those methods that offer programs and activities to qualified 
individuals with handicaps in the most integrated setting appropriate.
    (c) Time period for compliance. The Foundation shall comply with the 
obligations established under this section within 60 days of the 
effective date of this part except that where structural

[[Page 102]]

changes in facilities are undertaken, such changes shall be made within 
three years of the effective date of this part, but in any event as 
expeditiously as possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
Foundation shall develop, within six months of the effective date of 
this part, a transition plan setting forth the steps necessary to 
complete such changes. The Foundation shall provide an opportunity to 
interested persons, including individuals with handicaps or 
organizations representing individuals with handicaps, to participate in 
the development of the transition plan by submitting comments (both oral 
and written). A copy of the transition plan shall be made available for 
public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the Foundation's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of transition plan 
is longer than one year, identify steps that will be taken during each 
year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 606.52  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the Foundation shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.
Secs. 606.53--606.59  [Reserved]



Sec. 606.60  Communications.

    (a) The Foundation shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The Foundation shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the Foundation.
    (i) In determining what type of auxiliary aid is necessary, the 
Foundation shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The Foundation need not provide individually prescribed 
devices, readers for personal use or study, or other devices of a 
personal nature.
    (2) Where the Foundation communicates with applicants and 
beneficiaries by telephone, telecommunications devices for deaf persons 
(TDD's) or equally effective telecommunication systems shall be used to 
communicate with persons with impaired hearing.
    (b) The Foundation shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The Foundation shall provide signage at a primary entrance to 
each of its inaccessible facilities, directing users to a location at 
which they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the Foundation to take any action 
that it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where Foundation personnel believe that 
the proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative

[[Page 103]]

burdens, the Foundation has the initial burden of establishing that 
compliance with Sec. 606.60 would result in such alteration or burdens. 
The decision that compliance would result in such alteration or burdens 
must be made by the Foundation Director or his or her designee after 
considering all Foundation resources available for use in the funding 
and operation of the conducted program or activity and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the Foundation shall take 
any other action that would not result in such an alteration or such 
burdens but would nevertheless ensure that, to the maximum extent 
possible, individuals with handicaps receive the benefits and services 
of the program or activity.
Secs. 606.61--606.69  [Reserved]



Sec. 606.70  Complaint procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the Foundation.
    (b) The Foundation shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director, Office of Equal Opportunity Programs (OEOP), shall 
coordinate implementation of this section.
    (d) Persons wishing to submit complaints should submit complete 
complaints (see Sec. 606.03) to the Office of Equal Opportunity 
Programs, National Science Foundation, 4201 Wilson Boulevard, Arlington, 
VA 22230. In accordance with the procedures outlined below, the 
Foundation will accept all complete complaints and will either undertake 
to investigate them if they are within the jurisdiction of the 
Foundation and submitted within 180 days of the alleged acts of 
discrimination or in the case of complaints not within the jurisdiction 
of the Foundation, it shall promptly notify the complainant and shall 
make reasonable efforts to refer the complaint to the appropriate 
government entity. Complete complaints submitted after the 180 day time 
limit may also be acted upon at the discretion of the Foundation if good 
cause for the delay in submission is found.
    (e) The Foundation shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or a facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (f) Within 180 days of the receipt of a complete complaint, the 
Director, Office of Equal Opportunity Programs (OEOP), or his or her 
designee or delegate, will investigate the complaint and shall notify 
the complainant of the results of the investigation in a letter 
containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of a right to appeal to the Director of the Foundation.
    (g)(1) A complainant may appeal findings of fact, conclusions of 
law, or remedies to the Director of the Foundation. Such appeals must be 
in writing and must state fully the basis for the appeal, proposed 
alternative findings of fact, conclusions of law, or remedies. They must 
be sent (as evidenced by an appropriate postmark or other satisfactory 
evidence) within 90 days after the date of receipt from the Foundation 
of the letter described in paragraph (f) of this section. The Foundation 
may extend this time for good cause.
    (2) The Director shall notify the complainant of the results of the 
appeal within 30 days of the receipt of the appeal. If the Director 
determines that additional information is needed from the complainant, 
the Director shall have 30 days from the date such additional 
information is received from the complainant to make a determination on 
the appeal.

[[Page 104]]

    (h) The time limits for sending a letter to the complainant in 
paragraph (f) and for deciding an appeal in paragraph (g)(2) of this 
section may be extended with the permission of the Assistant Attorney 
General.

[54 FR 4791, Jan. 31, 1989, as amended at 59 FR 37437, July 22, 1994]
Secs. 606.71--606.99  [Reserved]



PART 607--SALARY OFFSET--Table of Contents




607.1  Purpose and scope.
607.2  Definitions.
607.3  Applicability.
607.4  Notice requirements before offset.
607.5  Hearing.
607.6  Written decision.
607.7  Coordinating offset with another Federal agency.
607.8  Procedures for salary offset.
607.9  Refunds.
607.10  Statute of limitations.
607.11  Non-waiver of rights.
607.12  Interest, penalties, and administrative costs.

    Authority: 5 U.S.C. 5514; E.O. 12107, 3 CFR, 1978 Comp., p. 264; 5 
CFR part 550, subpart K.

    Source: 58 FR 68769, Dec. 29, 1993, unless otherwise noted.



Sec. 607.1  Purpose and scope.

    (a) This part provides procedures for the collection by 
administrative offset of a federal employee's salary without his or her 
consent to satisfy certain debts owed to the Federal government. This 
part applies to all Federal employees who owe debts to the National 
Science Foundation (NSF) and to current employees of NSF who owe debts 
to other Federal agencies. This part does not apply when the employee 
consents to recovery from his or her current pay account.
    (b) This part does not apply to debts or claims arising under:
    (1) The Internal Revenue Code of 1954, as amended, 26 U.S.C. 1 et 
seq.;
    (2) The Social Security Act, 42 U.S.C. 301 et seq.;
    (3) The tariff laws of the United States; or
    (4) Any case where a collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute.
    (c) This part does not apply to any adjustment to pay arising out of 
an employee's selection of coverage or a change in coverage under a 
Federal benefits program requiring periodic deductions from pay if the 
amount to be recovered was accumulated over four pay periods or less.
    (d) This part does not preclude the compromise, suspension, or 
termination of collection action where appropriate under the standards 
implementing the Federal Claims Collection Act, 31 U.S.C. 3711 et seq., 
and 4 CFR parts 101 through 105.
    (e) This part does not preclude an employee from requesting waiver 
of an overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 716, 
or in any way questioning the amount or validity of the debt by 
submitting a subsequent claim to the General Accounting Office. This 
part does not preclude an employee from requesting a waiver pursuant to 
other statutory provisions applicable to the particular debt being 
collected.
    (f) Matters not addressed in this part should be reviewed in 
accordance with the Federal Claims Collection Standards at 4 CFR 101.1 
et seq.



Sec. 607.2  Definitions.

    For the purposes of this part the following definitions will apply:
    Agency means an executive agency as defined at 5 U.S.C. 105, 
including the U.S. Postal Service and the U.S. Postal Rate Commission; a 
military department as defined at 5 U.S.C. 102; an agency or court in 
the judicial branch; an agency of the legislative branch, including the 
U.S. Senate and House of Representatives; and other independent 
establishments that are entities of the Federal government.
    Certification means a written debt claim received from a creditor 
agency which requests the paying agency to offset the salary of an 
employee.
    Chief Financial Officer means the Chief Financial Officer of NSF or 
such other official of NSF who is designated by the Chief Financial 
Officer to determine whether an employee is indebted to the United 
States and to take action to collect such debts.
    Creditor agency means an agency of the Federal Government to which 
the debt is owed.

[[Page 105]]

    Debt means an amount owed by a Federal employee to the United States 
from sources which include loans insured or guaranteed by the United 
States and all other amounts due the United States from fees, leases, 
rents, royalties, services, sales of real or personal property, 
overpayments, penalties, damages, interests, fines, forfeitures (except 
those arising under the Uniform Code of Military Justice), and all other 
similar sources.
    Disposable pay means the amount that remains from an employee's 
Federal pay after required deductions for social security, Federal, 
State or local income tax, health insurance premiums, retirement 
contributions, life insurance premiums, Federal employment taxes, and 
any other deductions that are required to be withheld by law.
    Hearing official means an individual responsible for conducting a 
hearing with respect to the existence or amount of a debt claimed, or 
the repayment schedule of a debt, and who renders a decision on the 
basis of such hearing. A hearing official may not be under the 
supervision or control of the Chief Financial Officer or of persons 
having supervision or control over the Chief Financial Officer.
    NSF means the National Science Foundation.
    Paying agency means the agency that employs the individual who owes 
the debt and authorizes the payment of his or her current pay.
    Salary offset means an administrative offset to collect a debt 
pursuant to 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.



Sec. 607.3  Applicability.

    The regulations in this part are to be followed when:
    (a) NSF is owed a debt by an individual who is a current employee of 
the NSF; or
    (b) NSF is owed a debt by an individual currently employed by 
another Federal agency; or
    (c) NSF employs an individual who owes a debt to another Federal 
agency.



Sec. 607.4  Notice requirements before offset.

    (a) Salary offset shall not be made against an employee's pay unless 
the employee is provided with written notice signed by the Chief 
Financial Officer of the debt at least 30 days before salary offset 
commences.
    (b) The written notice shall contain:
    (1) A statement that the debt is owed and an explanation of its 
nature and amount;
    (2) The agency's intention to collect the debt by deducting from the 
employee's current disposable pay account;
    (3) The amount, frequency, proposed beginning date, and duration of 
the intended deduction(s);
    (4) An explanation of interest, penalties, and administrative 
charges, including a statement that such charges will be assessed unless 
excused in accordance with the Federal Claims Collections Standards at 4 
CFR 101.1;
    (5) The employee's right to inspect, request, and receive a copy of 
government records relating to the debt;
    (6) The employee's opportunity to establish a written schedule for 
the voluntary repayment of the debt in lieu of offset;
    (7) The employee's right to an oral hearing or a determination based 
on a review of the written record (``paper hearing'') conducted by an 
impartial hearing official concerning the existence or the amount of the 
debt, or the terms of the repayment schedule;
    (8) The procedures and time period for petitioning for a hearing;
    (9) A statement that a timely filing of a petition for a hearing 
will stay the commencement of collection proceedings;
    (10) A statement that a final decision on the hearing (if requested) 
will be issued by the hearing official not later than 60 days after the 
filing of the petition requesting the hearing unless the employee 
requests and the hearing official grants a delay in the proceedings;
    (11) A statement that knowingly false or frivolous statements, 
representations, or evidence may subject the employee to appropriate 
disciplinary procedures and/or statutory penalties;
    (12) A statement of other rights and remedies available to the 
employee

[[Page 106]]

under statutes or regulations governing the program for which the 
collection is being made;
    (13) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
promptly refunded to the employee; and
    (14) A statement that the proceedings regarding such debt are 
governed by section 5 of the Debt Collection Act of 1982 (5 U.S.C. 
5514).



Sec. 607.5  Hearing.

    (a) Request for hearing. (1) An employee may file a petition for an 
oral or paper hearing in accordance with the instructions outlined in 
the agency's notice to offset.
    (2) A hearing may be requested by filing a written petition 
addressed to the Chief Financial Officer stating why the employee 
disputes the existence or amount of the debt or, in the case of an 
individual whose repayment schedule has been established other than by a 
written agreement, concerning the terms of the repayment schedule. The 
petition for a hearing must be received by the Chief Financial Officer 
not later than fifteen (15) calendar days after the employee's receipt 
of the offset notice, or notice of the terms of the payment schedule, 
unless the employee can show good cause for failing to meet the filing 
deadline.
    (b) Hearing procedures. (1) The hearing will be presided over by an 
impartial hearing official.
    (2) The hearing shall conform to procedures contained in the Federal 
Claims Collection Standards, 4 CFR 102.3(c). The burden shall be on the 
employee to demonstrate that the existence or the amount of the debt is 
in error.



Sec. 607.6  Written decision.

    (a) The hearing official shall issue a final written opinion no 
later than 60 days after the filing of the petition.
    (b) The written opinion will include a statement of the facts 
presented to demonstrate the nature and origin of the alleged debt; the 
hearing official's analysis, findings, and conclusions; the amount and 
validity of the debt, if any; and the repayment schedule, if any.



Sec. 607.7  Coordinating offset with another Federal agency.

    (a) When the NSF is the creditor agency and the Chief Financial 
Officer determines that an employee of another agency (i.e., the paying 
agency) owes a debt to the NSF, the Chief Financial Officer shall, as 
appropriate:
    (1) Certify in writing to the paying agency that the employee owes 
the debt, the amount and basis of the debt, the date on which payment 
was due, and the date the Government's right to collect the debt 
accrued, and that this part 607 has been approved by the Office of 
Personnel Management.
    (2) Unless the employee has consented to salary offset in writing or 
signed a statement acknowledging receipt of the required procedures, and 
the written consent is sent to the paying agency, the Chief Financial 
Officer must advise the paying agency of the action(s) taken under this 
part 607, and the date(s) they were taken.
    (3) Request the paying agency to collect the debt by salary offset. 
If deductions must be made in installments, the Chief Financial Officer 
may recommend to the paying agency the amount or percentage of 
disposable pay to be collected in each installment;
    (4) Arrange for a hearing upon the proper petitioning by the 
employee.
    (b) When the NSF is the creditor agency and the employee is in the 
process of separating from the Federal service, the NSF must submit its 
debt claim to the paying agency as provided in this part. The paying 
agency must certify the total amount collected, give a copy of the 
certification to the employee, and send a copy of the certification and 
notice of the employee's separation to the NSF. If the paying agency is 
aware that the employee is entitled to Civil Service Retirement and 
Disability Fund or other similar payments, it must certify to the agency 
responsible for making such payments that the debtor owes a debt, 
including the amount of the debt, and that the provisions of 5 CFR 
550.1108 have been followed.
    (c) When the NSF is the creditor agency and the employee has already

[[Page 107]]

separated from Federal service and all payments due from the paying 
agency have been paid, the Chief Financial Officer may request, unless 
otherwise prohibited, that money payable to the employee from the Civil 
Service Retirement and Disability Fund or other similar funds be 
collected by administrative offset.
    (d) When the NSF is the paying agency, upon receipt of a properly 
certified debt claim from another agency, deductions will be scheduled 
to begin at the next established pay interval. The employee must receive 
written notice that NSF has received a certified debt claim from the 
creditor agency, the amount of the debt, the date salary offset will 
begin, and the amount of the deduction(s). NSF shall not review the 
merits of the creditor agency's determination of the validity or the 
amount of the certified claim. If the employee transfers to another 
agency after the creditor agency has submitted its debt claim to NSF and 
before the debt is collected completely, NSF must certify the amount 
collected. One copy of the certification must be furnished to the 
employee. A copy must be furnished to the creditor agency with notice of 
the employee's transfer.



Sec. 607.8  Procedures for salary offset.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Chief Financial Officer's notice of 
intention to offset as provided in Sec. 607.4. Debts will be collected 
in one lump sum where possible. If the employee is financially unable to 
pay in one lump sum, collection must be made in installments.
    (b) Debts will be collected by deduction at officially established 
pay intervals from an employee's current pay account unless alternative 
arrangements for repayment are made.
    (c) Installment deductions will be made over a period not greater 
than the anticipated period of employment. The size of installment 
deductions must bear a reasonable relationship to the size of the debt 
and the employee's ability to pay. The deduction for the pay intervals 
for any period must not exceed 15% of disposable pay unless the employee 
has agreed in writing to a deduction of a greater amount.
    (d) Unliquidated debts may be offset against any financial payment 
due to a separated employee including but not limited to final salary or 
leave payment in accordance with 31 U.S.C. 3716.



Sec. 607.9  Refunds.

    (a) NSF will promptly refund to an employee any amounts deducted to 
satisfy debts owed to NSF when the debt is waived, found not owed to 
NSF, or when directed by an administrative or judicial order.
    (b) Another creditor agency will promptly return to NSF any amounts 
deducted by NSF to satisfy debts owed to the creditor agency when the 
debt is waived, found not owed, or when directed by an administrative or 
judicial order.
    (c) Unless required by law, refunds under this section shall not 
bear interest.



Sec. 607.10  Statute of limitations.

    If a debt has been outstanding for more than 10 years after NSF's 
right to collect the debt first accrued, the agency may not collect by 
salary offset unless facts material to the Government's right to collect 
were not known and could not reasonably have been known by the official 
or officials who were charged with the responsibility for discovery and 
collection of such debts.



Sec. 607.11  Non-waiver of rights.

    An employee's involuntary payment of all or any part of a debt 
collected under the regulations in this part will not be construed as a 
waiver of any rights that the employee may have under 5 U.S.C. 5514 or 
any other provision of law.



Sec. 607.12  Interest, penalties, and administrative costs.

    Charges may be assessed on a debt for interest, penalties, and 
administrative costs in accordance with 31 U.S.C. 3717 and the Federal 
Claims Collection Standards, 4 CFR 101.1.



PART 608--CLAIMS COLLECTION AND ADMINISTRATIVE OFFSET--Table of Contents




608.1  Purpose and scope.
608.2  Collection, compromise, and use of consumer reporting agencies.

[[Page 108]]

608.3  Administrative offset.
608.4  Reductions of tax refunds.

    Authority: 31 U.S.C. 3711, 3716, 3718 and 3720A.

    Source: 58 FR 68772, Dec. 29, 1993, unless otherwise noted.



Sec. 608.1  Purpose and scope.

    (a) This part sets forth policies and procedures for the collection 
and compromise claims and the administrative offset of claims by the 
National Science Foundation (NSF) pursuant to 31 U.S.C. 3711, 3716, 3718 
and 3720A. It is not intended to limit or govern the rights of the NSF 
or the United States to collect, compromise, or administratively offset 
debts or claims under other authority and procedures that may be legally 
available to it.

    (b) Matters not addressed in this part should be reviewed and 
handled in accordance with applicable statutory provisions and the 
Federal Claims Collection Standards issued jointly by the Attorney 
General and the Comptroller General (4 CFR parts 101 through 105).

    (c) Any action other than the issuance of regulations specifically 
required to be done by the head of the agency by any of the statutes or 
regulations referred to in paragraphs (a) and (b) of this section shall 
be done on behalf of NSF by its Chief Financial Officer or by those to 
whom the Chief Financial Officer delegates authority. This is not 
intended to prevent the Chief Financial Officer from issuing additional 
internal procedures and guidance consistent with this part.



Sec. 608.2  Collection, compromise, and use of consumer reporting agencies.

    (a) Subject to the specific limitations and procedures of 31 U.S.C. 
3711 and in accordance with the applicable provisions of the Federal 
Claims Collection Standards, NSF, acting through its Chief Financial 
Officer or those to whom he or she delegates authority or assigns 
responsibilities, shall try to collect claims of the United States 
Government for money or property arising out of the activities of NSF or 
that are referred to NSF and may compromise or suspend or end collection 
action of certain claims. In making demands for payment, NSF will follow 
the guidance set forth at 4 CFR 102.2. In appropriate cases, as 
authorized by and subject to 31 U.S.C. 3718 and 4 CFR 102.6, NSF may 
contract for collection services. Before compromising or suspending or 
ending the collection of a claim in excess of $5,000, the matter shall 
be referred to the NSF Office of General Counsel for legal review.

    (b) When trying to collect a claim of the Government (except for 
claims under the Internal Revenue Code of 1986, 26 U.S.C. 1 et seq.), 
NSF may disclose to a consumer reporting agency information from a 
system of records that an individual is responsible for a claim if (1) a 
notice published pursuant to 5 U.S.C. 552a(3)(4) indicates that 
information in the system of records may be disclosed to a consumer 
reporting agency that an individual is responsible for a claim and (2) 
if the Chief Financial Officer of NSF decides that the claim is valid 
and overdue. Such disclosures to a consumer reporting agency will be 
done only under the conditions and procedures specified in 31 U.S.C. 
3711(f) and in the Federal Claims Collections Standards. Specifically, 
before NSF provides the information to the consumer reporting agency, 
the individual will be given the notice required by 31 U.S.C. 
3711(f)(1)(C); and in accordance with 4 CFR 102.5(c), the right of 
administrative review to be provided to the individual shall be 
consistent with the provisions of 4 CFR 102.3(c). If NSF does not have a 
current address for the individual in its files, it will take reasonable 
action to locate the individual, but if unsuccessful will mail the 
notice to the individual's last known address. NSF will disclose 
information only to a consumer reporting agency that gives satisfactory 
assurances that it is complying with all laws of the United States 
relating to providing consumer credit information. The information 
provided by NSF shall be limited to the type of information described in 
31 U.S.C. 3711(f)(1)(F). Moreover, NSF will not provide such information 
until it has established internal procedures to disclose promptly to a 
consumer reporting agency to which disclosure is made of any substantial 
changes in the condition or amount of the claim and to verify or correct 
promptly information about the claim on request of a

[[Page 109]]

consumer reporting agency for verification of information disclosed.
    (c) If in response to the notice referred to in paragraph (b) of 
this section, the individual repays or agrees in writing with NSF to a 
repayment plan, the information will not be disclosed to a consumer 
reporting agency. If in response to the notice referred to in paragraph 
(b) the individual requests a review or reconsideration of the claim, 
information shall not be disclosed to the consumer reporting agency 
until such a review is provided.
    (d) The review referred to in paragraph (c) of this section shall be 
based only on the written documentation in the file, including any 
additional written information provided by the individual in response to 
the notice referred to in paragraph (b). A written summary briefly 
describing the nature of the review performed and the conclusion reached 
shall be made. The written summary and conclusion shall be referred to 
the NSF Office of General Counsel for legal review. After legal review, 
a copy of the written summary shall be sent to the individual.



Sec. 608.3  Administrative offset.

    (a) If NSF is unable to collect a claim from a person after trying 
to do so in accordance with Sec. 608.2, NSF may collect the claim by 
administrative offset subject to the procedures and limitations of 31 
U.S.C. 3716 and the applicable provisions of the Federal Claims 
Collection Standards. Determinations to pursue administrative offset 
shall be made on a case-by-case basis taking into account the 
considerations specified at 31 U.S.C. 3716(b) and 4 CFR 102.3(a). Before 
employing administrative offset, NSF will comply with the notice, 
hearing, review, or other procedural requirements of 31 U.S.C. 3716(a) 
and 4 CFR 102.3(b) and (c). Furthermore, before an administrative offset 
is taken by NSF pursuant to the authority of this part 608, the matter 
shall be referred to the Office of General Counsel for legal review to 
ensure that the required procedures have been followed.
    (b) When another agency requests NSF to administratively offset a 
claim owing to that agency, NSF will normally comply with such request 
if the requesting agency has provided the certification required by 4 
CFR 102.3(f) and offset would not be contrary to law. Before imposing 
administrative offsets at the request of another agency under this part 
608, the matter shall be referred to the NSF Office of General Counsel 
for legal review.
    (c)(1) In appropriate cases, NSF may request another agency to 
administratively setoff a claim owed to NSF. Before making the 
certification to the other agency required by 4 CFR 102.3(f), the matter 
shall be referred to the NSF Office of General Counsel for legal review.
    (2) Unless otherwise prohibited by law, NSF may request that moneys 
that are due and payable to a debtor from the Civil Service Retirement 
and Disability Fund, the Foreign Service Retirement Fund or any other 
Federal retirement fund be administratively offset in reasonable amounts 
in order to collect in one full payment or a minimal number of payments 
debts owed the United States by the debtor. Such requests shall be made 
to the appropriate officials of the respective fund servicing agency in 
accordance with such regulations as may be prescribed by that agency. 
The requests for administrative offset will certify in writing that (i) 
the debtor owes the United States a debt and the amount of the debt; 
(ii) NSF has complied with applicable regulations and procedures; and 
(iii) NSF has followed the requirements of the Federal Claims Collection 
Standards as made applicable by this section. Once NSF decides to 
request offset from a Federal retirement fund, it will make the request 
as soon as practical after completion of the applicable procedures in 
order that the fund servicing agency may identify and flag the debtor's 
account in anticipation of the time when the debtor requests or becomes 
eligible to receive payments from the fund and to ensure that offset 
will be initiated prior to the expiration of the statute of limitations.
    (3) If NSF collects part or all of the debt by other means before 
deductions are made or completed pursuant to this paragraph (c), NSF 
shall act promptly to modify or terminate its request for offset.

[[Page 110]]

    (4) This paragraph (c) does not require or authorize the fund 
servicing agency to review the merits of (i) NSF's determination with 
respect to the amount and validity of the debt, (ii) NSF's determination 
as to waiver under an applicable statute, or (iii) NSF's determination 
to provide or not provide an oral hearing.
    (d) No collection by administrative offset shall be made on any debt 
that has been outstanding for more than ten years unless facts material 
to the Government's right to collect the debt were not known, and 
reasonably could not have been known, by the official or officials 
responsible for discovering the debt.
    (e) Administrative offset under this section will not be initiated 
against:
    (1) A debt in which administrative offset of the type of debt 
involved is explicitly provided for or prohibited by a statutes other 
than 31 U.S.C. 3716, including debts subject to the Salary offset 
procedures at 45 CFR part 607;
    (2) Debts owed by other agencies of the United States or by any 
State or local Government; or
    (3) Debts arising under the Internal Revenue Code of 1954; the 
Social Security Act; or the tariff laws of the United States.



Sec. 608.4  Reductions of tax refunds.

    (a) In accordance with regulations and guidance issued by the 
Secretary of the Treasury at 26 CFR 301.6402-6 and the requirements of 
31 U.S.C. 3720A, NSF will participate in the Federal Tax Refund Offset 
Program for offset against income tax refunds of persons owing past due 
legally enforceable debts to NSF.
    (b) For purposes of this section, a past-due legally enforceable 
debt referable to the IRS is a debt which is owed to the United States 
and:
    (1) Except in the case of a judgment debt, has been delinquent for 
at least three months but has not been delinquent for more than ten 
years at the time the offset is made;
    (2) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (3) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by NSF against amounts 
payable to or on behalf of the debtor by or on behalf of NSF;
    (4) With respect to which NSF has notified or has made a reasonable 
attempt to notify the taxpayer that the debt is past-due and, unless 
repaid within 60 days thereafter, the debt will be referred to the IRS 
for offset against any overpayment of tax;
    (5) With respect to which NSF has given the taxpayer at least 60 
days from the date of notification to present evidence that all or part 
of the debt is not past-due or legally enforceable, has considered the 
evidence presented by such taxpayer, and has determined that an amount 
of such debt is past-due and legally enforceable;
    (6) Has been disclosed by NSF to a consumer reporting agency as 
authorized by 31 U.S.C. 3711(f), unless a consumer reporting agency 
would be prohibited from using such information by 15 U.S.C. 1681c, or 
unless the amount of the debt does not exceed $100.00;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Internal 
Revenue Service regulations at 26 CFR 301.6402-6 relating to the 
eligibility of a debt for tax return offset have been satisfied.
    (c) NSF will make a request for reduction of an IRS tax refund only 
after the NSF determines that an amount is owed and past-due and 
provides the debtor with 60 days written notice. NSF's notice of 
intention to collect by IRS tax refund offset (Notice of Intent) will 
state:
    (1) The amount of the debt;
    (2) That unless the debt is repaid within 60 days from the date of 
the NSF's Notice of Intent, NSF intends to collect the debt by 
requesting the IRS to reduce any amounts payable to the debtor as 
refunds of Federal taxes paid by an amount equal to the amount of the 
debt and all accumulated interest and other charges;
    (3) That the debtor has a right to present evidence that all or part 
of the debt is not past-due or legally enforceable; and
    (4) A mailing address for forwarding any written correspondence and 
a contact name and phone number for any questions.

[[Page 111]]

    (d) A debtor who receives a Notice of Intent has the right to 
present evidence that all or part of the debt is not past-due or not 
legally enforceable. To exercise this right, the debtor must:
    (1) Send a written request for a review of the evidence to the 
address provided in the notice.
    (2) State in the request the amount disputed and the reasons why the 
debtor believes that the debt is not past-due or is not legally 
enforceable.
    (3) Include with the request any documents which the debtor wishes 
to be considered or state that additional information will be submitted 
within the remainder of the 60-day period.
    (e) The failure of a debtor to respond as provided in paragraph (d) 
of this section will result in an automatic referral of the debt to the 
IRS without further action by NSF. If the debtor responds, NSF will 
consider all available evidence related to the debt and issue a written 
determination, including supporting rationale, whether its prior 
determination that the debt is past-due and legally enforceable is 
sustained, amended, or canceled. Before this determination is made the 
matter shall be referred to the NSF Office of General Counsel for legal 
review. NSF will give prompt notification of this determination to the 
debtor.



PART 611--NONDISCRIMINATION IN FEDERALLY-ASSISTED PROGRAMS OF THE NATIONAL SCIENCE FOUNDATION--EFFECTUATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964--Table of Contents




Sec.
611.1  Purpose.
611.2  Application of part.
611.3  Discrimination prohibited.
611.4  Assurances required.
611.5  Illustrative applications.
611.6  Compliance information.
611.7  Conduct of investigations.
611.8  Procedure for effecting compliance.
611.9  Hearings.
611.10  Decisions and notices.
611.11  Judicial review.
611.12  Effect on other regulations; forms and instructions.
611.13  Definitions.

Appendix A to Part 611

    Authority: Sec. 11(a), National Science Foundation Act of 1950, as 
amended, 42 U.S.C. 1870(a); 42 U.S.C. 2000d-1.

    Source: 29 FR 16305, Dec. 4, 1964, unless otherwise noted.



Sec. 611.1   Purpose.

    The purpose of this part is to effectuate the provisions of title VI 
of the Civil Rights Act of 1964 (hereafter referred to as the ``Act'') 
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 National Science Foundation.



Sec. 611.2   Application of part.

    This part applies to any program for which Federal financial 
assistance is authorized under a law administered by the Foundation, 
including the Federally-assisted programs and activities listed in 
Appendix A of this part. It applies to money paid, property transferred, 
or other Federal financial assistance extended under any such program 
after the effective date of the regulation pursuant to an application 
approved prior to such effective date. This part does not apply to (a) 
any Federal financial assistance by way of insurance or guaranty 
contract, (b) money paid, property transferred, or other assistance 
extended under any such program before the effective date of this part, 
(c) any assistance to any individual who is the ultimate beneficiary 
under any such program, or (d) any employment practice, under any such 
program, of any employer, employment agency, or labor organization, 
except to the extent described in Sec. 611.3. The fact that a program or 
activity is not listed in the Appendix shall not mean, if title VI of 
the Act is otherwise applicable, that such program is not covered. Other 
programs under statutes now in force or hereafter enacted may be added 
to this list by notice published in the Federal Register.



Sec. 611.3   Discrimination prohibited.

    (a) General. No person in the United States, shall, on grounds of 
race, color,

[[Page 112]]

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 
under any program to which this part applies may not directly or through 
contractual or other arrangements, on the ground of race, color, or 
national origin:
    (i) Deny an individual any service, financial aid, or other benefit 
provided under the program;
    (ii) Provide any service, financial aid, or other benefit to an 
individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (iii) Subject an individual 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 an individual 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 an individual differently from others in determining 
whether he satisfies any admission, enrollment, quota, eligibility, 
membership or other requirement or condition which individuals must meet 
in order to be provided any service, financial aid, or other benefit 
provided under the program;
    (vi) Deny an individual an opportunity to participate in the program 
through the provision of services or otherwise or 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 of 
an employee but only to the extent set forth in paragraph (c) of this 
section).
    (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 individuals 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 individuals to be 
afforded an opportunity to participate in any such program, may not 
directly or through contractual or other arrangements, utilize criteria 
or methods of administration which have the effect of subjecting 
individuals 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 as respects 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 individuals 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 the Act or this regulation.
    (4) As used in this section the services, financial aid, or other 
benefits provided under a program receiving Federal financial assistance 
shall be deemed to 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 and paragraph (c) of this section does not limit the 
generality of the prohibition in paragraph (a) of this section.
    (6) This regulation 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 previous 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 regulation applies the applicant or recipient has an 
obligation to take reasonable action to remove or overcome the 
consequences of the prior

[[Page 113]]

discriminatory practice or usage, and to accomplish the purposes of the 
Act.
    (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 may not directly or through 
contractual or other arrangements subject an individual to 
discrimination on the ground of race, color, or national origin in its 
employment practices under such program (including recruitment or 
recruitment advertising, employment, layoff or termination, upgrading, 
demotion, or transfer, rates of pay or other forms of compensation and 
use of facilities), including programs where a primary objective of the 
Federal financial assistance is (i) to assist such individuals through 
employment to meet expenses incident to the commencement or continuation 
of their education or training or (ii) to provide work experience which 
contributes to the education or training of such individuals.
    (2) Programs listed in Appendix A as respects employment 
opportunities provided thereunder, or in facilities provided thereunder, 
which are limited, or for which preference is given, to students, 
fellows, or other persons, including research associates, where in 
training for the same or related employments, have one of the above 
purposes as a primary purpose.
    (3) 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.
    (4) Where a primary objective of the Federal financial assistance is 
not to provide employment, but 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, to deny them the benefits of, or to subject them to 
discrimination under any program to which this regulation applies, the 
provisions of paragraph (c)(3) 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.
    (d) Medical emergencies. Notwithstanding the foregoing provisions of 
this section, a recipient of Federal financial assistance shall not be 
deemed to have failed to comply with paragraph (a) of this section if 
immediate provision of a service or other benefit to an individual is 
necessary to prevent his death or serious impairment of his health, and 
such service or other benefit cannot be provided except by or through a 
medical institution which refuses or fails to comply with paragraph (a) 
of this section.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973]



Sec. 611.4   Assurances required.

    (a) General. (1) Every application for Federal financial assistance 
to carry out a program to which this part applies, and every application 
for Federal financial assistance to provide a facility shall, as a 
condition to its approval and the extension of any Federal financial 
assistance pursuant to the application, contain or be accompanied by an 
assurance that the program will be conducted or the facility operated in 
compliance with all requirements imposed by or pursuant to this part. 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 and 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 pursuant to the 
application. The responsible Foundation official shall specify the form 
of the foregoing assurances for each program and the extent to which 
like assurances will be required of subgrantees, contractors

[[Page 114]]

and subcontractors, successors in interest, and other participants in 
the program. Any such assurance shall include provisions which give the 
United States a right to seek its judicial enforcement.
    (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 under a program of 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 Foundation to revert title to 
the property in the event of a breach of the covenant where, in the 
discretion of the responsible Foundation official, such a condition and 
right of reverter is appropriate to the program under which the real 
property is obtained and to the nature of the grant and the grantee. In 
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 
responsible Foundation official may agree, upon request of the 
transferee and if necessary to accomplish such financing, and upon such 
conditions as he deems appropriate, to subordinate such right of 
reversion to the lien of such mortgage or other encumbrance.
    (3) Transfers of surplus property are subject to regulations issued 
by the Administrator of the General Services Administration. (41 CFR 
101-6.2.)
    (b) Elementary and secondary schools. The requirements of paragraph 
(a) of this section with respect to any elementary or secondary school 
or school system shall be deemed to be satisfied if such school or 
school system (1) is subject to a final order of a court of the United 
States for the desegregation of such school or school system, and 
provides an assurance that it will comply with such order, including any 
future modification of such order, or (2) submits a plan for the 
desegregation of such school or school system which the responsible 
Official of the Department of Health, Education, and Welfare determines 
is adequate to accomplish the purposes of the Act and this part, and 
provides reasonable assurance that it will carry out such plan. In any 
case of continuing Federal financial assistance the responsible Official 
of the Department of Health, Education, and Welfare may reserve the 
right to redetermine, after such period as may be specified by him, the 
adequacy of the plan to accomplish the purposes of the Act and this 
part. In any case in which a final order of a court of the United States 
for the desegregation of such school or school system is entered after 
submission of such a plan, such plan shall be revised to conform to such 
final order, including any future modification of such order.
    (c) Assurances from institutions. (1) In the case of any application 
for Federal financial assistance to an institution of higher education 
(including assistance for construction, for research for a special 
training project, or for any other purpose), the assurance required by 
this section shall extend to admission practices and to all other 
practices relating to the treatment of students.
    (2) The assurance required with respect to an institution of higher 
education, 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 unless the applicant establishes, to the 
satisfaction of the responsible Foundation official, that the

[[Page 115]]

institution's practices in designated parts or programs of the 
institution will in no way affect its practices in the program of the 
institution for which Federal financial assistance is sought, or the 
beneficiaries of or participants in such program. If in any such case 
the assistance sought is for the construction of a facility or part of a 
facility, the assurance shall in any event extend to the entire facility 
and to facilities operated in connection therewith.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973]



Sec. 611.5   Illustrative applications.

    The following examples will illustrate the application of the 
foregoing provisions to some of the programs of the Foundation. (In all 
cases the discrimination prohibited is discrimination on the ground of 
race, color, or national origin prohibited by title VI of the Act and 
this part, as a condition of the receipt of Federal financial 
assistance.)

    1. In programs for support to elementary or secondary schools such 
as for the acquisition of equipment discrimination by the recipient 
school district in any of its elementary or secondary schools, or by the 
recipient private institution, in the admission of students, or in the 
treatment of its students in any aspect of the educational process, is 
prohibited. In this and the following illustration the prohibition of 
discrimination in the treatment of students or other trainees includes 
the prohibition of discrimination among the students or trainees in the 
availability or use of any academic, dormitory, eating, recreational, or 
other facilities of the grantee or other recipient.
    2. In a research, training, or other grant to a university for 
activities to be conducted in a graduate school, discrimination in the 
admission and treatment of students in the graduate school is 
prohibited, and the prohibition extends to the entire university unless 
it satisfies the responsible Foundation official that practices with 
respect to other parts or programs of the university will not interfere, 
directly or indirectly, with fulfillment of the assurance required with 
respect to the graduate school.
    3. In a training grant to a hospital or other nonacademic 
institution, discrimination is prohibited in the selection of 
individuals to be trained and in their treatment by the grantee during 
their training. In a research or demonstration grant to such an 
institution, discrimination is prohibited with respect to any 
educational activity, any provision of medical or other services and any 
financial aid to individuals incident to the program.
    4. In grant programs to assist in the construction of facilities for 
research or for the provision of educational services, assurances will 
be required that services will be provided without discrimination, to 
the same extent that discrimination would be prohibited as a condition 
of Federal operating grants for the support of such services. Thus, as a 
condition of grants for the construction of academic, research, or other 
facilities at institutions of higher education, assurances will be 
required that there will be no discrimination in the admission or 
treatment of students. In other construction grants the assurances 
required will similarly be adapted to the nature of the activities to be 
conducted in the facilities for construction of which the grants have 
been authorized by Congress.
    5. Upon transfers of real or personal property for research or 
educational uses, discrimination is prohibited to the same extent as in 
the case of grants for the construction of facilities or the provision 
of equipment for like purposes.
    6. In some situations even though past discriminatory practices have 
been abandoned, the consequences of such practices continue to impede 
the full availability of a benefit. If the efforts required of the 
applicant or recipient under Sec. 611.6(d) to provide information as to 
the availability of the program or activity, and the rights of 
beneficiaries under this regulation, have failed to overcome these 
consequences, it will become necessary for such applicant or recipient 
to take additional steps to make the benefits fully available to racial 
and nationality groups previously subjected to discrimination. This 
action might take the form, for example, of special arrangements for 
obtaining referrals which will insure that groups previously subjected 
to discrimination are adequately served but not the establishment of 
discriminatory qualifications for participation in any program.
    7. Even though an applicant or recipient has never used 
discriminatory policies, the services and benefits of the program or 
activity it administers may not in fact be equally available to some 
racial or nationality groups. In such circumstances an applicant or 
recipient may properly give special consideration to race, color, or 
national origin to make the benefits of its program more widely 
available to such groups, not then being adequately served. For example, 
where a university is not adequately serving members of a particular 
racial or nationality group, it may establish special recruitment 
policies to make its program better known and more readily available to 
such group,

[[Page 116]]

and take other steps to provide that group with more adequate service.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973]



Sec. 611.6   Compliance information.

    (a) Cooperation and assistance. The responsible Foundation official 
shall, to the fullest extent practicable, seek the cooperation of 
recipients in obtaining compliance with this part and shall provide 
assistance and guidance to recipients to help them comply voluntarily 
with this part.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the responsible Foundation official timely, complete and 
accurate compliance reports at such times, and in such form and 
containing such information, as the responsible Foundation official may 
determine to be necessary to enable him to ascertain whether the 
recipient has complied or is complying with this part. In the case of 
any program under which a primary recipient extends Federal financial 
assistance to any other recipient, such other recipient shall also 
submit such compliance reports to the primary recipient as may be 
necessary to enable the primary recipient to carry out its obligations 
under this part.
    (c) Access to sources of information. Each recipient shall permit 
access by the responsible Foundation official or his designee during 
normal business hours to such of its books, records, accounts, and other 
sources of information, and its facilities as may be pertinent to 
ascertain compliance with this part. Where any information required of a 
recipient is in the exclusive possession of any other agency, 
institution or person and this agency, institution or person shall fail 
or refuse to furnish this information, the recipient shall so certify in 
its report and shall set forth what efforts it has made to obtain the 
information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of this 
part and its applicability to the program under which the recipient 
receives Federal financial assistance, and make such information 
available to them in such manner, as the responsible Foundation official 
finds necessary to apprise such persons of the protections against 
discrimination assured them by the Act and this part.

(Approved by the Office of Management and Budget under control number 
3l45-0087)

[29 FR l6305, Dec. 4, l964, as amended at 49 FR 37595, Sept. 25, l984]



Sec. 611.7  Conduct of investigations.

    (a) Periodic compliance reviews. The responsible Foundation official 
shall from time to time review the practices of recipients to determine 
whether they are complying with this part.
    (b) Complaints. Any person who believes himself or any specific 
class of individuals to be subjected to discrimination prohibited by 
this part may by himself or by a representative file with the 
responsible Foundation official a written complaint. A complaint must be 
filed not later than 90 days from the date of the alleged 
discrimination, unless the time for filing is extended by the 
responsible Foundation official.
    (c) Investigations. The responsible Foundation 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 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 
regulation, the responsible Foundation 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. 611.8.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section the responsible Foundation official 
will so inform the recipient and the complainant, if any, in writing.

[[Page 117]]

    (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.



Sec. 611.8  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 reference 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 Act), or any assurance or other 
contractual undertaking, and (2) any applicable proceeding under State 
or local law.
    (b) Noncompliance with Sec. 611.4. If an applicant fails or refuses 
to furnish an assurance required under Sec. 611.4 or otherwise fails to 
comply with that section, Federal financial assistance may be refused in 
accordance with the procedures of paragraph (c) of this section. The 
Foundation shall not be required to provide assistance in such a case 
during the pendency of the administrative proceedings under such 
subsection, except that the Foundation 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 Foundation 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 hearings, 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 
Sec. 611.10(e) and
    (4) The expiration of thirty 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 Foundation 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 ten days from the 
mailing of such notice to the recipient or other person. During this 
period of at least ten 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.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973; 51 
FR 22938, June 24, 1986]

[[Page 118]]



Sec. 611.9  Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required by Sec. 611.8(b), 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 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 twenty days after the date of such notice 
within which the applicant or recipient may request of the responsible 
Foundation 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 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 the Act and 
Sec. 611.8(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 Foundation in Arlington, VA, at a time fixed by the responsible 
Foundation official unless he determines that the convenience of the 
applicant or recipient or of the Foundation requires that another place 
be selected. Hearings shall be held before the responsible Foundation 
official or, at the discretion of the Director, a hearing examiner 
designated in accordance with 5 U.S.C. 3105 and 3344.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and the Foundation 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 
5 U.S.C. 554 through 557, 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 Foundation 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 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 programs 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 of the Act, the 
Director 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 of procedure 
not inconsistent with this part. Final decisions in such cases, insofar 
as this part

[[Page 119]]

is concerned, shall be made in accordance with Sec. 611.10.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973; 59 
FR 37437, July 22, 1994]



Sec. 611.10  Decisions and notices.

    (a) Decision by a person or persons other than the responsible 
Foundation official. If the hearing is held by a hearing examiner, such 
hearing examiner shall either make an initial decision, if so 
authorized, or certify the entire record including recommended findings 
and proposed decision to the responsible Foundation 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 Foundation official his exceptions to the initial decision, 
with his reasons therefor. In the absence of exceptions, the responsible 
Foundation 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 Foundation 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 Foundation official.
    (b) Decisions on record or review by the responsible Foundation 
official. Whenever, after hearing, a record is certified to the 
responsible Foundation official for decision or he reviews the decision 
of a hearing examiner pursuant to paragraph (a) of this section, or 
whenever the responsible Foundation 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 Foundation official shall 
be given in writing 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. 611.9(a), a decision shall be made by 
the responsible Foundation 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, panel, or 
responsible Foundation official shall set forth the 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 Director. Any final decision of a responsible 
Foundation 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 Foundation 
official that it will fully comply with this part.
    (g) Posttermination 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 regulation and provides reasonable assurance that

[[Page 120]]

it will fully comply with this regulation.
    (2) Any applicant or recipient adversely affected by an order 
entered pursuant to paragraph (f) of this section may at any time 
request the responsible Foundation 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 responsible Foundation official determines that those 
requirements have been satisfied, he shall restore such eligibility.
    (3) If the responsible Foundation 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 of procedure issued by the 
responsible Foundation 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.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973; 51 
FR 22939, June 24, 1986]



Sec. 611.11  Judicial review.

    Action taken pursuant to section 602 of the Act is subject to 
judicial review as provided in section 603 of the Act.



Sec. 611.12  Effect on other regulations; forms and instructions.

    (a) Effect on other regulations. All regulations, orders, or like 
directions heretofore issued by any officer of the Foundation which 
impose requirements designed to prohibit any discrimination against 
individuals on the ground 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 or recipient of such assistance under 
such program 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 shall be deemed to relieve any 
person of any obligation assumed or imposed under any such superseded 
regulation, order, instruction, or like direction prior to the effective 
date of this part. Nothing in this part, however, supersedes any of the 
following (including future amendments thereof): (1) Executive Order 
11246 and regulation 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. Each responsible Foundation 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 departments or agencies, 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 Sec. 611.10), including the achievement of effective coordination and 
maximum uniformity within the Foundation and within the Executive Branch 
of the Government in the application of title VI and this regulation 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 subsection shall have the same effect as though such action 
had been taken by the responsible official of this agency.

[29 FR 16305, Dec. 4, 1964, as amended at 38 FR 17985, July 5, 1973]



Sec. 611.13  Definitions.

    As used in this part:

[[Page 121]]

    (a) The term Foundation means the National Science Foundation, and 
includes each of its organizational units.
    (b) The term Director means the Director of the National Science 
Foundation.
    (c) The term responsible Foundation official with respect to any 
program receiving Federal financial assistance means the Director or 
other official of the Foundation designated by the Director.
    (d) The term United States means the States of the United States, 
the District of Columbia, Puerto Rico, the Virgin Islands, American 
Samoa, Guam, Wake Island, the Canal Zone, and the territories and 
possessions of the United States, and the term State means any one of 
the foregoing.
    (e) The term Federal financial assistance includes (1) grants and 
loans of Federal funds, (2) the grant or the 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.
    (f) The term program includes any program, project, or activity 
involving the provision of services, financial aid, or other benefits to 
individuals (including education or training, health, housing, or other 
services, whether provided through employees of the recipient of Federal 
financial assistance or provided by others through contracts or other 
arrangements with the recipient, and including work opportunities and 
cash or loan or other assistance to individuals), or for the provision 
of facilities for furnishing services, financial aid or other benefits 
to individuals. The services, financial aid, or other benefits provided 
under a program receiving Federal financial assistance shall be deemed 
to include any services, financial aid, or other benefits provided with 
the aid of Federal financial assistance or with the aid of any non-
Federal funds, property, or other resources required to be expended or 
made available for the program to meet matching requirements or other 
conditions which must be met in order to receive the Federal financial 
assistance, and to include any services, financial aid, or other 
benefits provided in or through a facility provided with the aid of 
Federal financial assistance or such non-Federal resources.
    (g) The term facility includes all or any portion 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.
    (h) The term recipient means any State, political subdivision of any 
State, or instrumentality of any State or political subdivision, any 
public or private agency, institution, or organization, or other entity 
or any individual, in any State, to whom Federal financial assistance is 
extended, directly or through another recipient, for any program, 
including any successor, assign, or transferee thereof, but such term 
does not include any ultimate beneficiary under any such program.
    (i) The term primary recipient means any recipient which is 
authorized or required to extend Federal financial assistance to another 
recipient for the purpose of carrying out a program.
    (j) The term applicant means one who submits an application, 
request, or plan required to be approved by a responsible Foundation 
official, or by a primary recipient, as a condition to eligibility for 
Federal financial assistance, and the term application means such an 
application, request, or plan.

                         Appendix A to Part 611

    Statutory Provisions under which the National Science Foundation 
provides Federal financial assistance:
The National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-
1875).

[38 FR 17986, July 5, 1973, as amended at 59 FR 37437, July 22, 1994]

[[Page 122]]



PART 612--AVAILABILITY OF RECORDS AND INFORMATION--Table of Contents




Sec.
612.1  Scope.
612.2  Information policy.
612.3  Procedures applicable to the public--requests and appeals.
612.4  Copies of records.
612.5  Creation of records.
612.6  Confidential commercial information--notice.
612.7  Agency actions on receipt of a properly presented request for 
          record.
612.8  Records not available.
612.9  Fees to be charged--definitions.
612.10  Fees to be charged--general.
612.11  Fees to be charged--categories of requesters.
612.12  Administrative actions to improve assessment and collection of 
          fees.
612.13  Waivers or reductions.

    Authority: 5 U.S.C. 552, as amended.



Sec. 612.1  Scope.

    This part establishes procedures by which the National Science 
Foundation (NSF) will implement the Freedom of Information Act, 5 U.S.C. 
552(a), relating to public availability of NSF records.

[56 FR 47415, Sept. 19, 1991]



Sec. 612.2  Information policy.

    (a) Subject to the policies set forth below, NSF will make the 
fullest possible disclosure of information to any person who requests 
information, without unnecessary expenses or delay. The Inspector 
General (concerning records maintained by the Office of Inspector 
General) or the Deputy Director (concerning all other NSF records) may, 
except where prohibited by law, order disclosure in the public interest 
of records exempt from mandatory disclosure under Sec. 612.8 of this 
part.
    (b) A collection of NSF policy documents, staff instructions, and of 
agency opinions and orders in the adjudication of cases, with respective 
indices, shall be physically located in the National Science Foundation 
library at 4201 Wilson Boulevard, Arlington, VA, where they will be 
available for inspection by the public during regular working hours on 
Monday through Friday. Copies of such documents shall be furnished in 
accordance with these regulations.
    (c) The Director, Office of Information and Resource Management (D/
IRM) shall be responsible for maintaining, publishing, distributing and 
making available for inspection and copying the current indexes and 
supplements thereto which are required by 5 U.S.C. 552(a)(2). Such 
indexes shall promptly be published, quarterly or more frequently, 
unless the D/IRM determines by order published in the Federal Register 
that the publication would be unnecessary. The fee for furnishing copies 
of indexes and supplements shall not exceed the direct cost of 
duplication.

[40 FR 12793, Mar. 21, 1975, as amended at 49 FR 23049, June 4, 1984; 49 
FR 37595, Sept. 25, 1984; 56 FR 47416, Sept. 19, 1991; 59 FR 37437, 
37438, July 22, 1994]



Sec. 612.3  Procedures applicable to the public--requests and appeals.

    (a) Publications excluded. For the purpose of public requests for 
records the term record does not include publications which are 
available to the public in the Federal Register, or by sale or free 
distribution. Such publications may be obtained from the Government 
Printing Office, the National Technical Information Service, the NSF 
Forms and Publications Unit or NSF grantees or contractors. Requests for 
such publications will be referred to or the requester informed of the 
appropriate source. The booklet, Publications of the National Science 
Foundation, which is available without charge from Forms and 
Publications, National Science Foundation, 4201 Wilson Boulevard, 
Arlington, VA 22230, identifies Annual Reports, Descriptive Brochures, 
Program Announcements, Science Resources Studies, Special Studies, and 
Periodicals descriptive of Foundation activities, policies, and 
procedures, sets forth the cost of each, and tells how copies may be 
obtained.
    (b) Form of request. A request need not be in any particular format, 
but it: (1) Must be in writing and include the requester's mailing 
address, (2) must be clearly identified both on the envelope and in the 
letter as a Freedom of Information Act or FOIA request, (3) must

[[Page 123]]

describe the records sought with sufficient specificity to permit 
identification, and (4) must state that the requester promptly will pay 
the fees chargeable under this regulation. Provided, however, that when 
the requester places an inadequate limit on the amount he will pay or 
the requester has failed to make payments for previous requests, the NSF 
may require advance payment in accordance with Sec. 612.12(d) of this 
part except in cases when fees have been waived or reduced in accordance 
with Sec. 612.13 of this part.
    (c) Place of request. Any request for records under FOIA shall be 
addressed to the National Science Foundation, Office of General Counsel, 
4201 Wilson Boulevard, Arlington, VA 22230, except that requests for 
records maintained by the Office of the Inspector General may be 
addressed to either the Office of General Counsel, National Science 
Foundation, 4201 Wilson Boulevard, Arlington, VA 22230 or to the Office 
of the Inspector General, National Science Foundation, 4201 Wilson 
Boulevard, Arlington, VA 22230. A request which meets the requirements 
of paragraph (b) of this section and is properly addressed will be 
deemed received on the date of arrival in the Office of General Counsel 
or the Office of the Inspector General.
    (d) Time for appeal. A person whose request has been denied or 
partially denied may initiate an appeal by filing a request for review 
within ten days of the receipt of the denial, Saturdays, Sundays, legal 
public holidays, and the date of receipt excluded.
    (e) Form of appeal. The appeal shall include a copy of the written 
request and the denial together with any written argument the requester 
wishes to submit, and shall be signed by the requester.
    (f) To whom appeal is made. An appeal shall be addressed to the 
General Counsel, National Science Foundation, 4201 Wilson Boulevard, 
Arlington, VA 22230.
    (g) Decisions on appeal. Decisions on appeal shall be made by the 
General Counsel in writing within 20 days (excepting the date of 
receipt, Saturdays, Sundays, and legal public holidays) from receipt of 
the appeal. If the decision is in favor of the requester it shall order 
the record made available promptly to the requester. If adverse to the 
requester in whole or in part it shall briefly state the reasons and 
notify the requester that he may seek judicial review of the decision 
pursuant to paragraph (4) of section 552(a), title 5, United States 
Code.

[40 FR 12793, Mar. 21, 1975, as amended at 49 FR 23049, June 4, 1984; 56 
FR 47416, Sept. 19, 1991; 59 FR 37438, July 22, 1994; 61 FR 51022, Sept. 
30, 1996]



Sec. 612.4  Copies of records.

    If a requested record is to be disclosed, a copy will be furnished 
the requester as promptly as possible provided payment of fees has been 
arranged, or has been waived pursuant to Sec. 612.13 of this part. 
Records will not be released for copying.

[56 FR 47416, Sept. 19, 1991]



Sec. 612.5  Creation of records.

    A record will not be created by compiling selected items from other 
documents at the request of a member of the public nor will a record be 
created by analysis, computation or other processing specifically for 
the requesting party. If such analysis or computation is available in 
the form of a record, copies shall be made available as provided in this 
regulation.

[40 FR 12793, Mar. 21, 1975]



Sec. 612.6  Confidential commercial information--notice.

    (a) In general. Commercial information provided to the NSF by a 
submitter shall not be disclosed pursuant to a Freedom of Information 
Act request except in accordance with this section.
    (b) Definitions. The following definitions are used in reference to 
this section:
    Commercial information means information provided to the NSF by a 
submitter that arguably is protected from disclosure under section b(4) 
of the Freedom of Information Act, 5 U.S.C. 552(b)(4) and 
Sec. 612.8(a)(4) of this part.
    Submitter means any person, organization, or entity who provides 
commercial information, directly or indirectly, to the NSF. The term 
includes, but is not limited to, corporations, state governments and 
foreign governments.

[[Page 124]]

    (c) Designation of commercial information. Submitters of commercial 
information shall use good-faith efforts to designate, by appropriate 
markings, either at the time of submission or within a reasonable time 
thereafter, those portions of their submissions which they deem to be 
protected from disclosure under 5 U.S.C. 552(b)(4) and Sec. 612.8(a)(4) 
of this part. Such designations shall be deemed to have expired ten 
years after the date of the submission unless the submitter requests, 
and provides reasonable justification for, a designation period of 
greater duration.
    (d) Notice to submitters. The NSF shall, to the extent permitted by 
law, provide a submitter with written notice of a Freedom of Information 
Act request or administrative appeal encompassing its commercial 
information wherever required under paragraph (e) of this section, 
except as provided for in paragraph (f) of this section. Such written 
notice, given in order to afford the submitter an opportunity to object 
to disclosure pursuant to paragraph (g) of this section, shall be given 
within a reasonable time after NSF's receipt of the Freedom of 
Information Act request or administrative appeal, consistent with 
statutory requirements, and shall either describe the exact nature of 
the commercial information requested or provide copies of the records or 
portions thereof containing the information. The requester also shall be 
notified that notice and an opportunity to object are being provided to 
a submitter.
    (e) When notice is required. Notice shall be given to a submitter 
whenever:
    (1) The information has been designated in good faith by the 
submitter as information deemed protected from disclosure under 5 U.S.C. 
552(b)(4) and Sec. 612.8(a)(4) of this part, or
    (2) The NSF has reason to believe that the information may be 
protected from disclosure under 5 U.S.C. 552(b)(4) and Sec. 612.8(a)(4) 
of this part.
    (f) Exceptions to notice requirements. The notice requirements of 
paragraph (d) of this section shall not apply if:
    (1) The NSF determines that the information should not be disclosed;
    (2) The information lawfully has been published or has been 
officially made available to the public;
    (3) Disclosure of the information is required by law (other than 5 
U.S.C. 552); or
    (4) The designation made by the submitter in accordance with 
paragraph (c) of this section appears obviously frivolous, except that, 
in such case, the NSF shall send to the submitter written notice of any 
final administrative decision to disclose commercial information at 
least ten days prior to a specified disclosure date.
    (g) Opportunity to object to disclosure. Through the notice 
described in paragraph (d) of this section, the NSF shall afford a 
submitter a reasonable time, consistent with statutory requirements, 
within which to provide the NSF with a detailed written statement of any 
objection to disclosure. Such statement shall specify all grounds for 
withholding any of the information under any exemption of the Freedom of 
Information Act and, in the case of 5 U.S.C. 552(b)(4) and 
Sec. 612.8(a)(4) of this part, shall provide a detailed description of 
why the information is a trade secret or commercial or financial 
information that is privileged or confidential. This description shall 
explain why release of commercial or financial information would cause 
substantial harm to the competitive position of the submitter. Whenever 
possible, the submitter's claim of confidentiality should be supported 
by a statement or certification by an officer or authorized 
representative of the submitter. Information provided by a submitter 
pursuant to this paragraph may itself be subject to disclosure under the 
FOIA. When the submitter fails to object within the specified time or 
the objection appears obviously frivolous, the NSF shall provide the 
submitter with written notice pursuant to paragraph (f)(4) of this 
section.
    (h) Notice of intent to disclose. The NSF shall consider a 
submitter's objections and specific grounds for non-disclosure prior to 
determining whether to disclose confidential information. Whenever the 
Foundation decides to disclose confidential information over the 
objection of a submitter, the NSF shall forward to the submitter a 
written notice which shall include:

[[Page 125]]

    (1) A statement of the reasons for which the submitter's disclosure 
objections wee not sustained;
    (2) A description of the confidential information to be disclosed; 
and
    (3) A specified disclosure date.

Such notice of intent to disclose shall be forwarded to the submitter at 
least ten days prior to the specified disclosure date and the requester 
shall be notified likewise.
    (i) Notice of FOIA lawsuit. Whenever a requester brings suit seeking 
to compel disclosure of confidential information, the NSF shall promptly 
notify the submitter.

[56 FR 47416, Sept. 19, 1991]



Sec. 612.7  Agency actions on receipt of a properly presented request for record.

    (a) Monitoring of requests. The NSF Office of General Counsel, or 
such other office as may be designated by the Director, will serve as 
the central office for internal administration of these regulations. For 
records maintained by the Office of Inspector General, that Office will 
control incoming requests made directly to it, dispatch response 
letters, and maintain administrative records. For all other records 
maintained by NSF, the Office of General Counsel, or such other office 
as may be designated by the Director, will control incoming requests, 
assign them to appropriate action offices, monitor compliance, consult 
with action offices on disclosure, approve unavoidable extensions, 
dispatch denial and other letters, and maintain administrative records.
    (b) Time for response. The Foundation will seek to take appropriate 
agency action on a request within 10 days of its receipt (excepting the 
date of receipt, Saturdays, Sundays, and legal public holidays). If the 
record may exist only in a retired file which has been placed in storage 
or there is otherwise a need to search for and collect the requested 
records from field facilities or other establishments that are separate 
from the Foundation, NSF shall immediately notify the requester by 
letter that the record has been ordered from storage (or is otherwise 
being sought) and that the time limit for acting on the request is 
extended by the length of time required to obtain the record. The letter 
will also give the date on which a determination is expected to be 
dispatched. If the request seeks a voluminous amount of separate and 
distinct records requiring an unusual length of time for search, 
collection, and appropriate examination, and determination on the 
request cannot be made within 10 working days after agency receipt, NSF 
shall within such ten-day period furnish to the requester written notice 
extending the period for not more than ten working days. This notice 
shall set forth the reasons for such extension and the date on which a 
determination is expected to be dispatched. If the record has not been 
obtained and examined and notice of the determination whether to comply 
with the request has not been given by the last day of the period as 
extended, the requester shall be notified on that last day that the 
request is denied because the record has not yet been found and 
examined. Such denial shall state that NSF will reconsider the denial as 
soon as the search and examination is complete, which should be within a 
specifically stated number of days, but that the requester may, if he 
wishes, file an administrative appeal as provided in Sec. 612.3 of this 
regulation. This same procedure for extending the period shall be 
followed if the nature of the record requires consultation with another 
agency having a substantial interest in the determination of the request 
or requires consultation among two or more components of NSF having 
substantial subject-matter interest therein.
    (c) Records containing commercial information. When the requested 
record contains confidential commercial information such as a successful 
proposal that was submitted to NSF, the NSF will normally contact, in 
accordance with Sec. 612.6 of this part, the organization that submitted 
the record in order to ask whether the submitter wished portions of the 
records withheld under any applicable exemptions. (The Foundation 
protects from disclosure pending proposals or unsuccessful proposals in 
any case.)
    (d) Denial of request No written request for records shall be denied 
except by the Office of General Counsel, the

[[Page 126]]

Office of Inspector General or such other office as may be designated by 
the Director. Notice of the denial of a request shall briefly set forth 
the reasons therefor which shall be based solely upon one or more of the 
exemptions specified in Sec. 612.8 of this part. Each notice of denial 
shall set forth the names and title or positions of each person 
responsible for the denial and shall inform the requester of the right 
to appeal as provided in Sec. 612.3 of this part.
    (e) Oral requests. Nothing in these regulations shall be deemed to 
preclude NSF from honoring oral requests for information where feasible, 
but if the requester is dissatisfied with the disposition of such a 
request, he shall be asked to put the request in writing.

[40 FR 12793, Mar. 21, 1975, as amended at 49 FR 23050, June 4, 1984; 56 
FR 47417, Sept. 19, 1991; 61 FR 51022, Sept. 30, 1996]



Sec. 612.8  Records not available.

    (a) Exemptions. The following types of records are not normally 
available for inspection and copying:
    (1) Records specifically authorized and in fact properly classified 
pursuant to Executive Order to be kept secret in the interest of 
national defense or foreign policy.
    (2) Records related solely to the internal personnel rules and 
practices of NSF. This exemption does not apply to rules relating to the 
work hours, leave, and working conditions of NSF personnel, or similar 
matters, to the extent that they can be disclosed without harm to the 
functions to which they pertain. Examples of exempt records of the type 
specified in the first sentence of this paragraph include, but are not 
limited to:
    (i) Operating rules, guidelines, manuals on internal procedure, 
schedules and methods utilized by NSF auditors and examiners;
    (ii) Negotiating positions and limitations involved in a negotiation 
prior to the execution of a contract or the completion of the action to 
which the negotiating positions or limitations were applicable. They may 
also be exempt pursuant to other provisions of this section.
    (iii) Personnel policies, procedures and instructions, internal 
staffing plans, requirements, authorizations, controls, and supporting 
data relating to position management and manpower utilization and 
information involved in the determination of the qualifications of 
candidates for employment or advancement.
    (3) Records specifically exempted from disclosure by statute such as 
18 U.S.C. 1905 which prohibits disclosure of information which concerns 
or relates to the trade secrets, processes, operations, style of work, 
or apparatus or to the identity, confidential statistical data, amount 
or source of any income, profits, losses, or expenditures of any person, 
firm, partnership, corporation or association. This also includes 
records that disclose any invention in which the Federal Government owns 
or may own a right, title, or interest (including a nonexclusive 
license) as provided in 35 U.S.C. 205.
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential. Matter subject to this 
exemption is that which is customarily held in confidence by the 
originator without regard to whether or not the originator is, or is not 
employed by, a nonprofit organization. It includes, but is not limited 
to:
    (i) Information received in confidence, such as grant applications, 
fellowship applications and research proposals prior to award;
    (ii) Statistical data or information if received in confidence from 
a contractor or potential contractor concerning contract performance, 
income, profits, losses, and expenditures.
    (5) Inter-agency or intra-agency memoranda or letters which would 
not be available by law to a private party in litigation with NSF. To 
the extent not so available by law, examples include, but are not 
limited to:
    (i) Reports, memoranda, correspondence, workpapers, minutes of 
meetings (other than those governed by the Federal Advisory Committee 
Act), and staff papers prepared for use within NSF or within the 
Executive Branch of the Government by personnel and consultants of NSF, 
or any Government agency.
    (ii) Advance information on proposed NSF plans to procure, lease, or 
otherwise acquire, or dispose of materials,

[[Page 127]]

real estate, facilities, services or functions, when such information 
would provide undue or unfair competitive advantage to any person;
    (iii) Records prepared for use in proceedings before any Federal or 
State court or administrative body;
    (iv) Evaluations of and comments on specific grant applications, 
research proposals, or potential contractors, whether made by NSF 
personnel or by external reviewers acting either individually or in 
committees;
    (v) Preliminary, draft unapproved recommendations, evaluations, and 
opinions, such as evaluations of invention disclosures, of research 
projects, and of incomplete studies conducted or supported by NSF;
    (vi) Proposed budget requests and supporting projections used or 
arising in the preparation and/or execution of a budget; proposed annual 
and multi-year policy, priorities, program and financial plan and 
supporting papers.
    (6) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy. Information in such files which is not otherwise exempt from 
disclosure pursuant to other provisions of this section will be released 
to the subject or to his designated legal representative, and it may be 
disclosed to others with his written consent. Examples of personnel 
files exempt from disclosure include, but are not limited to, file 
containing reports, records and other materials pertaining to individual 
cases in which disciplinary or other administrative action has been or 
may be taken. Similar files include reports and evaluations which 
reflect upon the qualifications or competence of individuals. Opinions 
and orders resulting from those proceedings shall be disclosed without 
identifying details if used, cited, or relied upon as precedent.
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (i) Could reasonably be expected to interfere with enforcement 
proceedings,
    (ii) Would deprive a person or a right to a fair trial or an 
impartial adjudication,
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy,
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis,
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law, or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (8) Matters contained in or related to examination, operating, or 
condition reports prepared by, or on behalf of, or for the use of any 
government agency responsible for the regulation or supervision of 
financial institutions.
    (9) Geological and geophysical information and data (including maps) 
concerning wells.
    (10) Records belonging to another government agency or dealing with 
subject matter as to which government agency, other than NSF, has 
exclusive or primary responsibility. Requests for such records shall be 
promptly forwarded to the appropriate government agency for disposition 
or for guidance with respect to disposition.
    (b) Deletion of exempt portion and identifying details. Any 
reasonably segregable portion of a record shall be provided to any 
person requesting such record after deletion of the portions which are 
exempt. Whenever any final opinion, order, or other materials required 
to be made available relates to a private party or parties and the 
release of the name or names or other identifying details will 
constitute a clearly unwarranted invasion of personal privacy, the 
record shall be published or made available with such identifying 
details left blank, or shall be published or

[[Page 128]]

made available with obviously fictitious substitutes and with a 
notification such as the following as a preamble:

    Names of parties and certain other identifying details have been 
removed (and fictitious names substituted) in order to prevent a clearly 
unwarranted invasion of the personal privacy of the individuals 
involved.

[40 FR 12793, Mar. 21, 1975, as amended at 47 FR 54943, Dec. 7, 1982. 
Redesignated at 49 FR 23050, June 4, 1984, and amended at 52 FR 43073, 
Nov. 9, 1987; 56 FR 47417, Sept. 19, 1991]



Sec. 612.9  Fees to be charged--definitions.

    For the purpose of these Guidelines:
    (a) All the terms defined in the Freedom of Information Act apply.
    (b) A statute specifically providing for setting the level of fees 
for particular types of records (5 U.S.C. 552(a)(4)(A)(vi)) means any 
statute that specifically requires a government agency, such as the 
Government Printing Office (GPO) or the National Technical Information 
Service (NTIS), to set the level of fees for particular types of 
records, in order to:
    (1) Serve both the general public and private sector organizations 
by conveniently making available government information;
    (2) Ensure that groups and individuals pay the cost of publications 
and other services which are for their special use so that these costs 
are not borne by the general taxpaying public;
    (3) Operate an information dissemination activity on a self-
sustaining basis to the maximum extent possible; or
    (4) Return revenue to the Treasury for defraying, wholly or in part, 
appropriated funds used to pay the cost of disseminating government 
information. Statutes, such as the User Fee Statute, which only provide 
a general discussion of fees without explicitly requiring that an agency 
set and collect fees for particular documents do not supersede the 
Freedom of Information Act under section (a)(4)(A)(vi) of that statute.
    (c) The term direct costs means those expenditures which an agency 
actually incurs in searching for and duplicating (and in the case of 
commercial requesters, reviewing) documents to respond to a FOIA 
request. Direct costs include, for example, the salary of the employee 
performing work (the basic rate of pay for the employee plus 16 percent 
of that rate to cover benefits) and the cost of operating duplicating 
machinery. Not included in direct costs are overhead expenses such as 
costs of space, and heating or lighting the facility in which the 
records are stored.
    (d) The term search includes all time spent looking for material 
that is responsive to a request, including page-by-page or line-by-line 
identification of material within documents. NSF shall ensure that 
searching for material is done in the most efficient and least expensive 
manner so as to minimize costs for both the agency and the requester. 
For example, NSF shall not engage in line-by-line search when merely 
duplicating an entire document would prove the less expensive and 
quicker method of complying with a request. ``Search'' should be 
distinguished, moreover, from ``review'' of material in order to 
determine whether the material is exempt from disclosure (see paragraph 
(f) of this section). Searches may be done manually or by computer using 
existing programming.
    (e) The term duplication refers to the process of making a copy of a 
document necessary to respond to a FOIA request. Such copies can take 
the form of paper copy, microform, audio-visual materials, or machine 
readable documentation (e.g., magnetic tape or disk), among others. The 
copy provided must be in a form that is reasonably usable by requesters.
    (f) The term review refers to the process of examining documents 
located in response to a request that is for a commercial use (see 
paragraph (g) of this section) to determine whether any portion of any 
document located is permitted to be withheld. It also includes 
processing any documents for disclosure, e.g., doing all that is 
necessary to excise them and otherwise prepare them for release. Review 
does not include time spent resolving general legal or policy issues 
regarding the application of exemptions.
    (g) The term `commercial use' request refers to a request from or on 
behalf of one who seeks information for a use or purpose that furthers 
the commercial,

[[Page 129]]

trade, or profit interests of the requester or the person on whose 
behalf the request is made. In determining whether a requester properly 
belongs in this category, NSF shall determine the use to which a 
requester will put the documents requested. Moreover, where NSF has 
reasonable cause to doubt the use to which a requester will put the 
records sought, or where that use is not clear from the request itself, 
NSF shall seek additional clarification before assigning the request to 
a specific category.
    (h) The term educational institution refers to a preschool, a public 
or private elementary or secondary school, an institution of graduate 
higher education, an institution of professional education, and an 
institution of vocational education, which operates a program or 
programs of scholarly research.
    (i) The term non-commercial scientific institution refers to an 
institution that is not operated on a ``commercial'' basis as that term 
is referenced in paragraph (g) of this section, and which is operated 
solely for the purpose of conducting scientific research the results of 
which are not intended to promote any particular product or industry.
    (j) The term representative of the news media refers to any person 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public. The term news means information 
that is about current events or that would be of current interest to the 
public. Examples of news media entities include television or radio 
stations broadcasting to the public at large, and publishers of 
periodicals (but only in those instances when they can qualify as 
disseminators of ``news'') who make their products available for 
purchase or subscription by the general public. These examples are not 
intended to be all-inclusive. Moreover, as traditional methods of news 
delivery evolve (e.g., electronic dissemination of newspapers through 
telecommunications services), such alternative media would be included 
in this category. In the case of ``freelance'' journalists, they may be 
regarded as working for a news organization if they can demonstrate a 
solid basis for expecting publication through that organization, even 
though not actually employed by it. A publication contract would be the 
clearest proof, but NSF may also look to the past publication record of 
a requester in making this determination.

[52 FR 43074, Nov. 9, 1987]



Sec. 612.10  Fees to be charged--general.

    NSF shall charge fees that recoup the full allowable direct costs 
they incur. Moreover, NSF shall use the most efficient and least costly 
methods to comply with requests for documents made under the FOIA. NSF 
will contract with private sector services to locate, reproduce and 
disseminate records in response to FOIA requests when that is the most 
efficient and least costly method. When doing so, however, NSF shall 
ensure that the ultimate cost to the requester is no greater than it 
would be if NSF itself had performed these tasks. In no case will NSF 
contract out responsibilities which the FOIA provides that it alone may 
discharge, such as determining the applicability of an exemption, or 
determining whether to waive or reduce fees. In addition, NSF shall 
ensure that when documents that would be responsive to a request are 
maintained for distribution by agencies operating statutory-based fee 
schedule programs (see definition in Sec. 612.9(b), such as the NTIS, 
they inform requesters of the steps necessary to obtain records from 
those sources.
    (a) Manual searches for records. Whenever feasible, NSF shall charge 
at the salary rate(s) (i.e., basic pay plus 16 percent) of the 
employee(s) making the search. However, where a homogeneous class of 
personnel is used exclusively (e.g., all administrative/clerical, or all 
professional/executive), NSF may establish an average rate for the range 
of grades typically involved. Thus, for each one-quarter hour after the 
first quarter hour, for search of a record by clerical personnel, the 
charge is $2.50. For a nonroutine, nonclerical search by professional 
personnel, for example, where the task of determining which records fall 
within a request and search requires professional or managerial time, 
the charge is $7.50 for each one

[[Page 130]]

quarter hour spent in excess of the first quarter hour.
    (b) Computer searches for records. NSF shall charge at the actual 
direct cost of providing the service. This will include the cost of 
operating the central processing unit (CPU) for that portion of 
operating time that is directly attributable to searching for records 
responsive to a FOIA request and operator/programmer salary 
apportionable to the search. When NSF can establish a reasonable agency-
wide average rate for CPU operating costs and operator/programmer 
salaries involved in FOIA searches, the Foundation will do so and charge 
accordingly.
    (c) Review of records. Only requesters who are seeking documents for 
commercial use may be charged for time NSF spends reviewing records to 
determine whether they are exempt from mandatory disclosure. It should 
be noted that charges may be assessed only for the initial review; i.e., 
the review undertaken the first time NSF analyzes the applicability of a 
specific exemption to a particular record or portion of a record. NSF 
may not charge for review at the administrative appeal level of an 
exemption already applied. However, records or portions of records 
withheld in full under an exemption which is subsequently determined not 
to apply may be reviewed again to determine the applicability of other 
exemptions not previously considered. The costs for such a subsequent 
review would be properly assessable. Where a single class of reviewers 
is typically involved in the review process, NSF may establish a 
reasonable agency-wide average and charge accordingly.
    (d) Duplication of records. NSF shall establish an average agency-
wide, per-page charge for paper copy reproduction of documents. This 
charge shall represent the reasonable direct costs of making such 
copies, taking into account the salary of the operators as well as the 
cost of the reproduction machinery. For copies prepared by computer, 
such as tapes or printouts, NSF shall charge the actual cost, including 
operator time, of production of the tape or printout. For other methods 
of reproduction or duplication, NSF shall charge the actual direct costs 
of producing the document(s). For photocopies of documents, $0.25 per 
copy per page will be charged. In practice, if NSF estimates that 
duplication charges are likely to exceed $25, it shall notify the 
requester of the estimated amount of fees, unless the requester has 
indicated in advance his willingness to pay fees as high as those 
anticipated. Such a notice shall offer a requester the opportunity to 
confer with agency personnel with the object of reformulating the 
request to meet his or her needs at a lower cost.
    (e) Other charges. It should be noted that complying with requests 
for special services such as those listed below is entirely at the 
discretion of NSF. Neither the FOIA nor its fee structure cover these 
kinds of services. NSF shall recover the full costs of providing 
services such as those enumerated below to the extent that it elects to 
provide them:
    (1) Certifying that records are true copies;
    (2) Sending records by special methods such as express mail.
    (f) Restrictions on assessing fees. With the exception of requesters 
seeking documents for a commercial use, section (4)(A)(iv) of the 
Freedom of Information Act, as amended, requires NSF to provide the 
first 100 pages of duplication and the first two hours of search time 
without charge. Moreover, this section prohibits NSF from charging fees 
to any requester, including commercial use requesters, if the cost of 
collecting a fee would be equal to or greater than the fee itself. These 
provisions work together, so that except for commercial use requesters, 
NSF would not begin to assess fees until after they had provided the 
free search and reproduction. For example, for a request that involved 
two hours and ten minutes of search time and resulted in 105 pages of 
documents, NSF will determine the cost of only 10 minutes of search time 
and only five pages of reproduction. If this cost was equal to or less 
that the cost to the agency of billing the requester and processing the 
fee collected, no charges would result.

The elements to be considered in determining the ``cost of collecting a 
fee,'' are the administrative costs to the

[[Page 131]]

NSF of receiving and recording a requester's remittance, and processing 
the fee for deposit in the Treasury Department's special account (or the 
NSF's account if the agency is permitted to retain the fee). The per-
transaction cost to the Treasury to handle such remittances is 
negligible and shall not be considered in the NSF's determination. For 
purposes of these restrictions on assessment of fees, the word ``pages'' 
refers to paper copies of a standard agency size which will normally be 
``8\1/2\ x 11'' or ``11 by 14.'' Thus, requesters would not be entitled 
to 100 microfiche or 100 computer disks, for example. A microfiche 
containing the equivalent of 100 pages or 100 pages of computer 
printout, however, might meet the terms of the restriction. Similarly, 
the term ``search time'' in this context has as its basis manual search. 
To apply this term to searches made by computer, NSF shall determine the 
hourly cost of operating the central processing unit and the operator's 
hourly salary plus 16 percent. When the cost of the search (including 
the operator time and the cost of operating the computer to process a 
request) equals the equivalent dollar amount of two hours of the salary 
of the person performing the search, i.e., the operator, NSF shall begin 
assessing charges for computer search.

[52 FR 43074, Nov. 9, 1987, as amended at 56 FR 47417, Sept. 19, 1991]



Sec. 612.11  Fees to be charged--categories of requesters.

    There are four categories of FOIA requesters: Commercial use 
requesters; educational and non-commercial scientific institutions; 
representatives of the news media; and all other requesters. The Act 
prescribes specific levels of fees for each of these categories:
    (a) Commercial use requesters. When a request for documents for 
commercial use is received, NSF shall assess charges which recover the 
full direct cost of searching for, reviewing for release, and 
duplicating the records sought. Requesters must reasonably describe the 
records sought. Commercial use requesters are not entitled to two hours 
of free search time nor 100 free pages of reproduction of documents. NSF 
may recover the cost of searching for and reviewing records even if 
there is ultimately no disclosure of records (see Sec. 612.12(b) of this 
part).
    (b) Educational and non-commercial scientific institution 
requesters. NSF shall provide documents to requesters in this category 
for the cost of reproduction alone, excluding charges for the first 100 
pages. To be eligible for inclusion in this category, requesters must 
show that the request is being made as authorized by and under the 
auspices of a qualifying institution and that the records are not sought 
for a commercial use, but are sought in furtherance of scholarly (if the 
request is from an educational institution) or scientific (if the 
request is from a non-commercial scientific institution) research. 
Requesters must reasonably describe the records sought.
    (c) Requesters who are representatives of the news media. NSF shall 
provide documents to requesters in this category for the cost of 
reproduction alone, excluding charges for the first 100 pages. To be 
eligible for inclusion in this category a requester must meet the 
criteria in Sec. 612.9(j) of this part, and his request must not be made 
for a commercial use. In reference to this class of requester, a request 
for records supporting the news dissemination function of the requester 
shall not be considered to be a request that is for commercial use. 
Requesters must reasonably describe the records sought.
    (d) All other requesters. NSF shall charge requesters who do not fit 
into any of the categories above fees which recover the full reasonable 
direct cost of searching for and reproducing records that are responsive 
to the request, except that the first 100 pages of reproduction and the 
first two hours of search time shall be furnished without charge. 
Moreover, requests from record subjects for records about themselves 
filed in NSF's systems of records will continue to be treated under the 
fee provisions of the Privacy Act of 1974 which permit fees only for 
reproduction. Requesters must reasonably describe the records sought.

[52 FR 43075, Nov. 9, 1987, as amended at 56 FR 47417, Sept. 19, 1991]

[[Page 132]]



Sec. 612.12  Administrative actions to improve assessment and collection of fees.

    NSF shall ensure that procedures for assessing and collecting fees 
are applied consistently and uniformly by all components. To do so, NSF 
amends its FOIA regulations to conform to the provisions of this Fee 
Schedule and Guidelines, especially including the following elements:
    (a) Charging interest--notice and rate. NSF may begin assessing 
interest charges on an unpaid bill starting on the 31st day following 
the day on which the billing was sent. NSF shall ensure that their 
accounting procedures are adequate to properly credit a requester who 
has remitted the full amount within the time period. The fact that the 
fee has been received by the agency, even if not processed, will suffice 
to stay the accrual of interest. Interest will be at the rate prescribed 
in section 3717 of Title 31 U.S.C. and will accrue from the date of the 
billing.
    (b) Charges for unsuccessful search. NSF may assess charges for time 
spent searching, even if NSF fails to locate the records or if records 
located are determined to be exempt from disclosure. In practice, if NSF 
estimates that search charges are likely to exceed $25, it shall notify 
the requester of the estimated amount of fees, unless the requester has 
indicated in advance his willingness to pay fees as high as those 
anticipated. Such a notice shall offer the requester the opportunity to 
confer with agency personnel with the object of reformulating the 
request to meet his or her needs at a lower cost.
    (c) Aggregating requests. Except for requests that are for a 
commercial use, NSF shall not charge for the first two hours of search 
time or for the first 100 pages of reproduction. However, a requester 
may not file multiple requests at the same time, each seeking portions 
of a document or documents, solely in order to avoid payment of fees. 
When NSF reasonably believes that a requester or, on rare occasions, a 
group of requesters acting in concert, is attempting to break a request 
down into a series of requests for the purpose of evading the assessment 
of fees, NSF may aggregate any such requests and charge accordingly. One 
element to be considered in determining whether a belief would be 
reasonable is the time period in which the requests have occurred. For 
example, it would be reasonable to presume that multiple requests of 
this type made within a relatively short period had been made to avoid 
fees. For requests made over a longer period, however, such a 
presumption becomes harder to sustain and NSF should have a basis for 
determining that aggregation is warranted in such cases.
    (d) Advance payments. NSF shall not require a requester to make an 
advance payment, i.e., payment before work is commenced or continued on 
a request, unless:
    (1) The NSF estimates or determines that allowable charges that a 
requester may be required to pay are likely to exceed $250. Then, NSF 
should notify the requester of the likely cost and obtain satisfactory 
assurance of full payment where the requester has a history of prompt 
payment of FOIA fees, or require an advance payment of an amount up to 
the full estimated charges in the case of requesters with no history of 
payment; or
    (2) A requester has previously failed to pay a fee charged in a 
timely fashion (i.e. within 30 days of the date of the billing), NSF may 
require the requester to pay the full amount owed plus any applicable 
interest as provided above or demonstrate that he has, in fact, paid the 
fee, and to make an advance payment of the full amount of the estimated 
fee before the NSF begins to process a new request or a pending request 
from that requester.
    (e) When NSF acts under paragraph (d) (1) or (2) of this section, 
the administrative time limits prescribed in subsection (a)(6) of the 
FOIA (i.e., 10 working days from receipt of initial requests and 20 
working days from receipt of appeals from initial denial, plus 
permissible extensions of these time limits) will begin only after NSF 
has received fee payments described above.

[52 FR 43076, Nov. 9, 1987]



Sec. 612.13  Waivers or reductions.

    (a) Employees of the National Science Foundation are encouraged to 
waive fees whenever the statutory fee

[[Page 133]]

waiver standard is met. However, employees are expected to respect the 
balance drawn in the statute, safeguarding federal funds by granting 
waivers or reductions only where it is determined that the following 
statutory standard is satisfied:

    Documents shall be furnished without any charge or at a charge 
reduced below the fees established under clause (ii) if disclosure of 
the information is in the public interest because it is likely to 
contribute significantly to public understanding of the operations or 
activities of the government and is not primarily in the commercial 
interest of the requester.

    (b) NSF will employ the following six factors in determining when 
FOIA fees should be waived or reduced:
    (1) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of the government'';
    (2) The informative value of the information to be disclosed: 
whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (3) The contribution to an understanding of the subject by the 
general public likely to result from disclosure: Whether disclosure of 
the requested information will contribute to ``public understanding'';
    (4) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities;
    (5) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure; and, if so
    (6) The primary interest in disclosure: Whether the magnitude of the 
identified commercial interest of the requester is sufficiently large, 
in comparison with the public interest in disclosure, that disclosure is 
``primarily in the commercial interest of the requester.''
    (c) NSF will use U.S. Department of Justice policy guidance in 
applying the foregoing factors.

[52 FR 43076, Nov. 9, 1987]



PART 613--PRIVACY ACT REGULATIONS--Table of Contents




Sec.
613.1  Purpose and scope.
613.2  Procedures for notification of existence of records pertaining to 
          individuals.
613.3  Procedures for requests for access to or disclosure of records 
          pertaining to an individual.
613.4  Correction of records.
613.5  Disclosure of records to agencies or persons other than the 
          individual to whom the record pertains.
613.6  Exemptions.

    Authority: 5 U.S.C. 552a(f).

    Source: 40 FR 44510, Sept. 26, 1975, unless otherwise noted.



Sec. 613.1   Purpose and scope.

    This part sets forth the National Science Foundation procedures 
under the Privacy Act of 1974 as required by 5 U.S.C. 552a(f). Internal 
guidance for NSF staff and other regulations implementing the Privacy 
Act are contained or will be contained in NSF Circulars.



Sec. 613.2   Procedures for notification of existence of records pertaining to individuals.

    (a) The systems of records, as defined in the Privacy Act of 1974, 
maintained by the National Science Foundation are listed annually in the 
Federal Register as required by that Act. Any person who wishes to know 
whether a system of records contains a record pertaining to him may 
either appear in person at the NSF Division of Administrative Services 
at 4201 Wilson Boulevard, Arlington, VA, on work days between the hours 
of 8:30 a.m. and 5 p.m. or may write to the NSF Privacy Act Officer, 
Division of Contracts, Policy, and Oversight, National Science 
Foundation, 4201 Wilson Boulevard, Arlington, VA 22230, it is 
recommended that requests be made in writing, since in many cases it 
will take several days to ascertain whether a record exists.
    (b) Requests for notification of the existence of a record should 
specifically identify the system of records involved and should state, 
if the requester is other than the individual to whom the record 
pertains, the relationship of the requester to that individual. (Note 
that requests will not be honored

[[Page 134]]

by the Foundation pursuant to the Privacy Act unless made (1) by the 
individual to whom the record pertains, (2) by such individual's parent 
if the individual is a minor, or (3) by such individual's legal guardian 
if the individual has been declared to be incompetent due to physical or 
mental incapacity or age by a court of competent jurisdiction). In cases 
where the NSF Notice of the System appearing in the Federal Register 
states that the system location is decentralized the special instruction 
in such notice pertaining to ``Notification'' and ``Access'' and 
``Content'' must be followed.
    (c) The Foundation will attempt to respond to a request as to 
whether a record exists within 10 working days from the time it receives 
the request or from the time any required identification is established, 
whichever is later.

[40 FR 44510, Sept. 26, 1975, as amended at 49 FR 37595, Sept. 25, 1984; 
59 FR 37438, July 22, 1994]



Sec. 613.3   Procedures for requests for access to or disclosure of records pertaining to an individual.

    (a) Any person may request review of records pertaining to him by 
appearing at the NSF Division of Administrative Services at 4201 Wilson 
Boulevard, Arlington, VA on work days between the hours of 8:30 a.m. and 
5 p.m. or by writing to the NSF Privacy Act Officer, Division of 
Contracts, Policy, and Oversight, National Science Foundation, 4201 
Wilson Boulevard, Arlington, VA 22230. (See paragraphs (b) and (c) of 
this section, for identification requirements.) The request should 
specifically identify the systems of records involved, and the request 
should include any special information specified in the notice of the 
system under ``Notification'' and ``Access and Contest.'' The Foundation 
will strive either to make the record available within 15 working days 
of the request or to inform the requester of the need for additional 
identification or the tendering of fees (as specified in Sec. 613.4(e)) 
within 15 working days; except that if the request for access was not 
preceded by a notification request as provided in Sec. 613.2, then the 
15-day period shall not begin until after such time as it has been 
determined that the record exists.
    (b) In the case of persons making requests by appearing at the 
Foundation the amount of personal identification required will of 
necessity vary with the sensitivity of the record involved. Except as 
indicated below reasonable identification such as employment 
identification cards, drivers licenses, credit cards will normally be 
accepted as sufficient evidence of identity in the absence of any 
indications to the contrary. Records in the following systems of 
records, however, are considered to contain relatively sensitive and/or 
detailed personal information--

Accident and Injury Reports (Antarctic)
Alien Applications for Consideration of Waiver of Two-Year Foreign 
Residence Requirements
Antarctic Conservation Act Files
Antarctic Service Records
Application and Account for Advance of Funds (SF 1038)
Debarment/Scientific Misconduct Files
Delinquent Debtors File
Dissertation Advisers File
Diving Safety Records (Polar Regions)
Doctorate Records Files
Doctorate Work History File
Earnings and Tax Statement (W-2)
Employee Grievance and Appeals File
Employee Locator Record Card
Employee Payroll Jacket
Fellowship and Other Awards
Fellowship Payroll
Frequent Traveler Profile
Individual Retirement Records
Manpower Management Subsystem
Medical Examination Records for Service in Polar Regions
National Survey of Recent College Graduates and Follow-up File
NSF Payroll System
Officer of Inspector General Investigative Files
Official Passports
P.I./Proposal File and Associated Records
Personnel Security Control Cards
Personnel Tracking System (Antarctic)
Public Transportation Subsidy Program
Radiation Safety Records (Polar Regions)
Reviewer/Fellowship and Other Award File and Associated Records
Reviewer/Proposal File and Associated Records
Science and Technology Centers (STC) Database
Telephone Call Detail Program Records
Time and Attendance Reports
EEOC/GOVT-1, Equal Employment Opportunity in the Federal Government 
Complaint and Appeal Records
OGE/GOVT-1, Executive Branch Public Financial Disclosure Reports and 
Other Ethics Program Records

[[Page 135]]

OGE/GOVT-2, Confidential Statements of Employment and Financial 
Interests
OPM/GOVT-1, General Personnel Records
OPM/GOVT-5, Recruiting, Examining and Placement Records
OPM/GOVT-7, Applicant Race, Sex, National Origin, and Disability 
Records.
OPM/GOVT-10, Employee Medical File System of Records

Accordingly, with respect to requests for records in these systems the 
Foundation reserves the right to require sufficient identification to 
identify positively the individual making the request. This might 
involve independent verification by the Foundation as by phone calls to 
determine whether an individual has made a request, personal 
identification by Foundation employees who know the individual, or such 
other means as are considered appropriate under the circumstances.
    (c) A written request will be honored only if it contains the 
following certification before a duly commissioned notary public of any 
state or territory (or similar official if the request is made outside 
the United States):

    I, ________________________, do hereby certify that I am the 
individual about whom the record requested in this letter pertains or 
that I am within the class of persons authorized to act on his behalf in 
accordance with 5 U.S.C. 552a(h).
          ______________________________________________________________
                                                           (Signature)  
          ______________________________________________________________
                                                            (Date)      
In the County of________________________________________________________
State of________________________________________________________________
On this ______ day of ______________, 19__.
          ______________________________________________________________
                                                    (Name of Individual)

who is personally known to me, did appear before me and sign the above 
certificate.
          ______________________________________________________________
                                                           (Signature)  
          ______________________________________________________________
                                                            (Date)      
    (S) My commission expires ____________.

However, where the record requested is contained in any of the systems 
of records listed in paragraph (b) of this section, the Foundation 
reserves the right to require additional identification and/or to 
independently verify to its satisfaction the identity of the requester.
    (d) Charges for copies of records will be at the rate of $0.10 per 
photocopy of each page. Where records are not susceptible to photo-
copying, e.g., punch cards, magnetic tapes or oversize materials, the 
amount charged will be actual cost as determined on a case-by-case 
basis. Only one copy of each record requested will be supplied. No 
charge will be made unless the charge as computed above would exceed 
$3.00 for each request or related series of requests. If a fee in excess 
of $25.00 would be required, the requester shall be notified and the fee 
must be tendered before the records will be copied.
    (e) The procedures of paragraphs (a) through (d) of this section 
shall also apply to requests made pursuant to 5 U.S.C. 552a(c)(3) that 
accountings made under 5 U.S.C. 552a(c)(1) be made available.

[40 FR 44510, Sept. 26, 1975, as amended at 42 FR 8639, Feb. 11, 1977; 
49 FR 37596, Sept. 25, 1984; 59 FR 37438, July 22, 1994; 61 FR 51022, 
Sept. 30, 1996]



Sec. 613.4   Correction of records.

    (a) Any individual is entitled to request amendments of records 
pertaining to him pursuant to 5 U.S.C. 552a(d)(2). Such a request shall 
be made in writing and addressed to the NSF Privacy Act Officer, 
Division of Contracts, Policy, and Oversight, National Science 
Foundation, 4201 Wilson Boulevard, Arlington, VA 22230.
    (b) The request should specify the record and systems of records 
involved, and should specify the exact correction desired and state that 
the request is made pursuant to the Privacy Act. An edited copy of the 
record showing the desired correction is desirable. Within 10 working 
days of the receipt of a properly addressed request (or within 10 
working days of the time the Privacy Act Officer becomes aware that a 
particular communication not addressed as prescribed above is a request 
for correction of a record under the Privacy Act), the Privacy Act 
Officer shall acknowledge receipt of the request.
    (c) The Privacy Act Officer upon the receipt of such a request shall 
promptly confer with the Directorate or office within the NSF 
responsible for the record. If the Privacy Act Officer finds that 
correction is not warranted in whole or in part, the matter shall be

[[Page 136]]

brought to the attention of the Inspector General, if it pertains to 
records maintained by the Office of Inspector General, or to the 
attention of the General Counsel, if it pertains to other records. If, 
after review by the General Counsel or by the Inspector General and 
discussion with the requester if deemed helpful, it is determined that 
correction as requested is not warranted, a letter shall be sent by the 
Privacy Act Officer to the requester denying his request and/or 
explaining what correction might be made if agreeable to the requester. 
This letter shall set forth the reasons for the refusal to honor the 
request for correction. It shall also inform him of his right to appeal 
this decision and include a description of the appeals procedure set 
forth in paragraph (d) of this section. Such letter or notification that 
the desired correction will be made shall normally be sent within 30 
working days of the receipt of a properly addressed request (or within 
30 working days of the time the Privacy Act Officer becomes aware that a 
particular communication not addressed as prescribed above is a request 
for correction of a record under the Privacy Act).
    (d) An appeal may be taken from an adverse determination under 
paragraph (c) of this section, to the Deputy Director of the Foundation. 
Such appeal must be made in writing and should clearly indicate that it 
is an appeal. The basis for the appeal should be included, and it should 
be mailed to the same address as listed in paragraph (a) of this 
section. A hearing at the Foundation may be requested. Such hearing will 
be informal, and shall be before the Deputy Director or his designee. If 
no hearing is requested, the request for appeal should include the basis 
for the appeal. Where no hearing is requested the Deputy Director shall 
render his decision within thirty working days after receipt of the 
written appeal at the Foundation unless the Director, for good cause 
shown, extends the 30-day period and the appellant is advised in writing 
of such extension. If a hearing is requested, then the Foundation will 
attempt to contact the appellant within five working days and arrange a 
suitable time for the hearing. In such case the decision of the Deputy 
Director shall be made within 30 working days after the hearing unless 
the time is extended and the appellant is advised in writing of such 
extension.
    (e) The final decision of the Deputy Director in an appeal shall be 
in writing and, if adverse to the appellant, set forth the reasons for 
the refusal to amend the record and advise him of his right to appeal 
the decision under 5 U.S.C. 552a(g)(1)(A). The individual shall also be 
notified that he has the right to file with the Foundation a concise 
statement setting forth the reasons for his disagreement with the 
refusal of the Foundation to amend his record.

[40 FR 44510, Sept. 26, 1975, as amended at 42 FR 8639, Feb. 11, 1977; 
56 FR 47417, Sept. 19, 1991; 59 FR 37438, July 22, 1994]



Sec. 613.5   Disclosure of records to agencies or persons other than the individual to whom the record pertains.

    Records subject to the Privacy Act that are requested by any person 
other than the individual to whom they pertain will not be made 
available except under the following circumstances:
    (a) Records required to be made available by the Freedom of 
Information Act will be released in response to a request formulated in 
accordance with NSF regulations found at 45 CFR part 612.
    (b) Records not required by the Freedom of Information Act to be 
released may be released, at the discretion of the Foundation, if the 
written consent of the individual to whom they pertain has been obtained 
or if such release would be authorized under 5 U.S.C. 552a(b)(1) or (3) 
through (11).



Sec. 613.6  Exemptions.

    (a) Fellowships and other support. Pursuant to 5 U.S.C. 552a(k)(5), 
the Foundation hereby exempts from the application of 5 U.S.C. 552a(d) 
any materials which would disclose the identity of references of 
fellowship applicants or reviewers of applicants for Federal contracts 
(including grants and cooperative agreements) contained in any of the 
following systems of records: (1) Fellowship and Traineeship Filing 
System, (2) Applicants to Committee on

[[Page 137]]

the Challenges of Modern Society Fellowship Program (NATO), and (3) 
Principal Investigator/Proposal File and Associated Records.
    (b) Applicants for Employment. Pursuant to 5 U.S.C. 552a(k)(5), the 
Foundation hereby exempts from the application of 5 U.S.C. 552a(d) any 
materials which would disclose the identity of references of applicants 
for employment at NSF contained in the system of records entitled 
``Official Personnel Folders.''
    (c) OIG Files Compiled for the Purpose of a Criminal Investigation 
and for Related Purposes. Pursuant to 5 U.S.C. 552a(j)(2), the 
Foundation hereby exempts the system of records entitled ``Office of 
Inspector General Investigative Files,'' insofar as it consists of 
information compiled for the purpose of a criminal investigation or for 
other purposes within the scope of 5 U.S.C. 552a(j)(2), from the 
application of 5 U.S.C. 552a, except for subsections (b), (c)(1) and 
(2), (e)(4) (A) through (F), (e)(6), (7), (9), (10) and (11), and (i).
    (d) OIG Files Compiled for Other Law Enforcement Purposes. Pursuant 
to 5 U.S.C. 552a(k)(2), the Foundation hereby exempts the systems of 
records entitled ``Office of Inspector General Investigative Files,'' 
insofar as it consists of information compiled for law enforcement 
purposes other than material within the scope of 5 U.S.C. 552a(j)(2), 
from the application of 5 U.S.C. 552a(c)(3), (d), (e)(1), (e)(4)(G), 
(H), and (I), and (f).

[40 FR 44510, Sept. 26, 1975, as amended at 53 FR 42951, Oct. 25, 1988; 
55 FR 12645, Apr. 5, 1990]



PART 614--GOVERNMENT IN THE SUNSHINE ACT REGULATIONS OF THE NATIONAL SCIENCE BOARD--Table of Contents




Sec.
614.1  General rule.
614.2  Grounds for closing meetings.
614.3  Materials relating to closed portions of meetings.
614.4  Opening of transcript or recording.
614.5  Public announcement.
614.6  Meeting changes.
614.7  Record vote.
614.8  Application to Board Executive Committee.

    Authority: Government in the Sunshine Act, sec. 552b of title 5, 
U.S.C.; 90 Stat. 1241.

    Source: 42 FR 14719, Mar. 16, 1977, unless otherwise noted.



Sec. 614.1   General rule.

    Except as otherwise provided in these regulations, every portion of 
every meeting of the National Science Board will be open to public 
observation.



Sec. 614.2   Grounds for closing meetings.

    (a) The National Science Board may by record vote close any portion 
of any meeting if it properly determines that an open meeting:
    (1) Is likely to disclose matters that (i) are specifically 
authorized under criteria established by Executive Order to be kept 
secret in the interests of national defense or foreign policy and (ii) 
are in fact properly classified pursuant to the Executive Order;
    (2) Is likely to relate solely to the internal personnel rules and 
practices of the National Science Foundation;
    (3) Is likely to disclose matters specifically exempted from 
disclosure by statute (other than 5 U.S.C. 552): Provided, That the 
statute (i) requires in such a manner as to leave no discretion on the 
issue that the matters be withheld from the public, or (ii) establishes 
particular criteria for withholding or refers to particular types of 
matters to be withheld;
    (4) Is likely to disclose trade secrets and commercial or financial 
information obtained from a person and privileged or confidential;
    (5) Is likely to involve accusing any person of a crime, or formally 
censuring any person;
    (6) Is likely to disclose personal information where the disclosure 
would constitute a clearly unwarranted invasion of personal privacy;
    (7) Is likely to disclose investigatory law-enforcement records, or 
information which, if written, would be contained in such records, but 
only to the extent provided in 5 U.S.C. 552b(c)(7);
    (8) Is likely to disclose information contained in or related to 
examination, operating, or condition reports prepared by, on behalf of, 
or for the use of an agency responsible for the regulation or 
supervision of financial institutions;

[[Page 138]]

    (9) Is likely to disclose information, the premature disclosure of 
which would:
    (i) In the case of information received from an agency which 
regulates currencies, securities, commodities, or financial 
institutions, be likely to (A) lead to significant financial speculation 
in currencies, securities, or commodities, or (B) significantly endanger 
the stability of any financial institution; or
    (ii) Be likely to significantly frustrate implementation of a 
proposed Foundation action, unless the Foundation has already disclosed 
to the public the content or nature of its proposed action or is 
required by law to make such disclosure on its own initiative before 
taking final action; or
    (10) Is likely to specifically concern the Foundation's 
participation in a civil action or proceeding, an action in a foreign 
court or international tribunal, or an arbitration.
    (b) Anyone who believes his interests may be directly affected by a 
portion of a meeting may request that the Board close it to the public 
for any reason referred to in paragraph (a) (5), (6), or (7) of this 
section. The request should be addressed to the Executive Officer, 
National Science Board, National Science Foundation, 4201 Wilson 
Boulevard, Arlington, VA 22230. It will be circulated to Members of the 
Board if received at least three full days before the meeting, and on 
motion of any Member the Board will determine by record vote whether to 
close the affected portion of the meeting.

[42 FR 14719, Mar. 16, 1977, as amended at 59 FR 37438, July 22, 1994]



Sec. 614.3   Materials relating to closed portions of meetings.

    If a portion or portions of any meeting of the National Science 
Board are closed to the public under Sec. 614.2:
    (a) The General Counsel of the National Science Foundation shall 
publicly certify that, in his opinion, that portion or portions may 
properly be closed to the public. The certificate shall state the 
exemptions under 5 U.S.C. 552b(c) that make the closings proper.
    (b) The presiding officer of the meeting (usually the Chairman of 
the Board) shall furnish a statement setting forth the time and place of 
the meeting and the persons present.
    (c) The Board shall make a complete transcript or electronic 
recording adequate to record fully the proceedings of each portion of 
the meeting that is closed to the public.
    (d) The National Science Board Office shall maintain the General 
Counsel's certificate, the presiding officer's statement, and the 
transcript or recording of the meeting for at least two years after the 
meeting and at least one year after the Board completes consideration of 
any proposal, report, resolution, or similar matter discussed in any 
closed portion of the meeting.



Sec. 614.4  Opening of transcript or recording.

    (a) Except as otherwise provided in this section, the transcript or 
electronic recording of every portion of every meeting closed to the 
public will promptly be made available on request to any member of the 
public in an easily accessible place.
    (b) Informal requests to inspect or copy the transcript or 
electronic recording of a closed session may be made to the staff of the 
National Science Board and will be handled informally and expeditiously. 
Written requests to inspect or copy such a transcript or recording that 
cite the Freedom of Information Act or the Sunshine Act will be treated 
as formal requests made under the Freedom of Information Act. They will 
be handled under the Foundation's Freedom of Information procedures 
described in 45 CFR part 612. The exemptions of these Sunshine Act 
regulations, 45 CFR 614.2, will govern, however, in determining what 
portions of the transcript or recording may be withheld.
    (c) A request to inspect or copy a transcript or electronic 
recording should specify the date of the meeting and the agenda item or 
items to which the request pertains. It should contain a promise to pay 
the costs of any duplication requested.
    (d) No search or transcription fees will be charged. Duplication 
fees may be charged as provided in 45 CFR 612.6.

[42 FR 55619, Oct. 18, 1977]

[[Page 139]]



Sec. 614.5   Public announcement.

    (a) Except as provided in paragraphs (c) and (d) of this section, 
the National Science Board will make a public announcement of each Board 
meeting at least one week before the meeting takes place. The 
announcement will cover:
    (1) The time, place, and subject matter of the meeting;
    (2) What portions of the meeting, if any, are to be closed to the 
public; and
    (3) The name and telephone number of the official designated to 
respond to requests for information on the meeting.
    (b) Each such announcement will be promptly posted on public notice 
boards at the National Science Foundation and made available to journals 
of general scientific interest. Immediately following the issuance of 
such an announcement, it will be submitted for publication in the 
Federal Register.
    (c) The announcement may be made less than a week before the meeting 
it announces or after the meeting only if (1) the Board by record vote 
determines that agency business requires the meeting to be called on 
such short or after-the-fact notice and (2) an announcement is made at 
the earliest practicable time.
    (d) All or any portion of the announcement of any meeting may be 
omitted if the Board by record vote determines that the announcement 
would disclose information which should be withheld under the same 
standards as apply for closing meetings under Sec. 614.2.



Sec. 614.6   Meeting changes.

    (a) The time or place of a meeting of the National Science Board 
that has been publicly announced as provided in Sec. 614.5 may 
subsequently be changed, but any such change will be publicly announced 
at the earliest practicable time.
    (b) The subject matter of any portion of any meeting of the Board 
that has been publicly announced as provided in Sec. 614.5 or the 
determination whether any portion of any meeting so publicly announced 
will be open or closed may subsequently be changed, but only when:
    (1) The Board determines by record vote that agency business so 
requires and that no earlier announcement of the change was possible; 
and
    (2) The Board publicly announces the change and the vote of each 
Member on the change at the earliest practicable time.



Sec. 614.7   Record vote.

    (a) For purposes of this part a vote of the National Science Board 
is a ``record vote'' if:
    (1) It carries by a majority of all those holding office as Board 
Members at the time of the vote;
    (2) No proxies are counted toward the necessary majority; and
    (3) The individual vote of each Member present and voting is 
recorded.
    (b) Within one day of any such record vote or any attempted record 
vote that fails to achieve the necessary majority under paragraph (a)(1) 
of this section, the Board Office will make publicly available a written 
record showing the vote of each Member on the question.
    (c) Within one day of any record vote under which any portion or 
portions of a Board meeting are to be closed to the public, the Board 
Office will make available a full written explanation of the Board's 
action and a list of all persons expected to attend the meeting, showing 
their affiliations.



Sec. 614.8   Application to Board Executive Committee.

    All the provisions of this part applicable to the National Science 
Board shall apply equally to the Executive Committee of the Board 
whenever the Executive Committee is meeting pursuant to its authority to 
act on behalf of the Board.



PART 615--TESTIMONY AND PRODUCTION OF RECORDS--Table of Contents




Sec.
615.1  Purpose.
615.2  Applicability.
615.3  Definitions.
615.4  Legal proceedings before NSF or in which the United States is a 
          party.
615.5  Legal proceedings between private litigants: Testimony and 
          production of documents.

[[Page 140]]

615.6  Legal proceedings between private litigants: Procedure when 
          demand is made.
615.7  Legal proceedings between private litigants: Office of Inspector 
          General employees.

    Authority: 42 U.S.C. 1870(a).

    Source: 59 FR 44056, Aug. 26, 1994, unless otherwise noted.



Sec. 615.1  Purpose.

    (a) This part sets forth policies and procedures to be followed 
when, in connection with a legal proceeding, an NSF employee is issued a 
demand to provide testimony or produce official records and information.
    (b) The provisions of this part are intended to promote economy and 
efficiency in NSF's programs and operations; minimize the possibility of 
involving NSF in controversial issues not related to its functions; 
maintain the impartiality of NSF among private litigants; and protect 
sensitive, confidential information and the deliberative process.
    (c) This part is not intended to and does not waive the sovereign 
immunity of the United States.
    (d) This part is intended only to provide guidance for the internal 
operations of NSF, and is not intended to, and does not, and may not be 
relied upon to create any right or benefit, substantive or procedural, 
enforceable at law by a party against the United States.



Sec. 615.2  Applicability.

    This part applies to demands and requests for factual or expert 
testimony or for official records or information in legal proceedings, 
whether or not the United States is a party, except that it does not 
apply to:
    (a) Demands upon or requests for an NSF employee to testify as to 
facts or events that are in no way related to his or her official duties 
or to the functions of NSF,
    (b) Demands upon or requests for a former NSF employee to testify as 
to matters in which the former employee was not directly or materially 
involved while at NSF,
    (c) Demands upon or requests for an NSF reviewer to testify as to 
matters not directly related to that individual's employment by or 
service to NSF, and
    (d) Congressional demands and requests for testimony or records.



Sec. 615.3  Definitions.

    (a) Demand--A subpoena, order, or other demand of a court or other 
competent authority for the production of records or for the appearance 
and testimony of an NSF employee, issued in a legal proceeding between 
private litigants.
    (b) Foundation or NSF means the National Science Foundation.
    (c) General Counsel means the General Counsel of the Foundation, or 
any person to whom the General Counsel has delegated authority under 
this part.
    (d) Legal proceeding means any proceeding before a court of law, 
administrative board or commission, hearing officer, or other body 
conducting a legal or administrative proceeding.
    (e) Official records and information means all documents and 
material which are records of the Foundation under the Freedom of 
Information Act, 5 U.S.C. 552; all other records contained in NSF's 
files; and all other information or material acquired by an NSF employee 
in the performance of his or her official duties or because of his or 
her official status.
    (f) NSF employee or employee means any present or former officer or 
employee of NSF; any other individual hired through contractual 
agreement by or on behalf of NSF, or who has performed or is performing 
services under such an agreement for NSF; and any individual who served 
or is serving on any advisory committee or in any advisory capacity, 
whether formal or informal.
    (g) Request means any informal request, by whatever method, for the 
production of official records and information or for testimony which 
has not been ordered by a court or other competent authority.
    (h) Testimony means any written or oral statement by a witness, 
including depositions, answers to interrogatories, affidavits, 
declarations, and statements at a hearing or trial.

[[Page 141]]



Sec. 615.4  Legal proceedings before NSF or in which the United States is a party.

    In any legal proceeding before NSF or to which the United States is 
a party, the General Counsel shall arrange for a current employee to 
testify as a witness for the United States whenever the attorney 
representing the United States requests it. The employee may testify for 
the United States both as to facts within the employee's personal 
knowledge and as an expert or opinion witness. For any party other than 
the United States, the employee may testify only as to facts within his 
or her personal knowledge.



Sec. 615.5  Legal proceedings between private litigants: Testimony and production of documents.

    (a) No employee may produce official records and information or 
provide any testimony in response to a demand or request unless 
authorized to do so by the General Counsel in accordance with this part.
    (b) The General Counsel, in his or her discretion, may grant an 
employee permission to testify or produce official records and 
information in response to a demand or request. In making this decision, 
the General Counsel shall consider whether:
    (1) The purposes of this part are met;
    (2) Allowing such testimony or production of records would be 
necessary to prevent a miscarriage of justice;
    (3) NSF has an interest in the decision that may be rendered in the 
legal proceeding; and
    (4) Allowing such testimony or production of records would be in the 
best interest of NSF or the United States.
    (c) If authorized to testify pursuant to this part, an employee may 
testify as to facts within his or her personal knowledge, but, unless 
specifically authorized to do so by the General Counsel, shall not:
    (1) Disclose confidential or privileged information;
    (2) Testify as to facts when the General Counsel determines such 
testimony would not be in the best interest of the Foundation or the 
United States; or
    (3) Testify as an expert or opinion witness with regard to any 
matter arising out of the employee's official duties or the functions of 
the Foundation.



Sec. 615.6  Legal proceedings between private litigants: Procedure when demand is made.

    (a) Whenever an employee is served with a demand to testify in his 
or her official capacity, or to produce official records and 
information, the employee shall immediately notify the General Counsel.
    (b) The General Counsel shall review the demand and, in accordance 
with the provisions of Sec. 615.5, determine whether, or on what 
conditions, to authorize the employee to testify and/or produce official 
records and information.
    (c) If a response to a demand is required before the General Counsel 
has made the determination referred to in Sec. 615.6(b), the General 
Counsel shall provide the court or other competent authority with a copy 
of this part, inform the court or other competent authority that the 
demand is being reviewed, and seek a stay of the demand pending a final 
determination. If the court fails to stay the demand, the employee must 
appear at the stated time and place, produce a copy of this part, and 
respectfully decline to comply with the demand. ``United States ex rel 
Touhy v. Ragen,'' 340 US 462 (1951).
    (d) If a court or other competent authority orders that a demand be 
complied with notwithstanding a final decision by the General Counsel to 
the contrary, or at any other stage in the process, the General Counsel 
may take steps to arrange for legal representation for the employee, and 
shall advise the employee on how to respond to the demand.



Sec. 615.7  Legal proceedings between private litigants: Office of Inspector General employees.

    Notwithstanding the requirements set forth in Secs. 615.1 through 
615.6, when an employee of the Office of Inspector General is issued a 
demand to provide testimony or produce official records and information, 
the Inspector General

[[Page 142]]

or his or her designee shall be responsible for performing the functions 
assigned to the General Counsel with respect to such demand pursuant to 
the provisions of this part.



PART 617--NONDISCRIMINATION ON THE BASIS OF AGE IN PROGRAMS OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE FROM NSF--Table of Contents




Sec.
617.1  Purpose.
617.2  Definitions.
617.3  Standards.
617.4  General duties of recipients.
617.5  Self-evaluation.
617.6  Information requirements.
617.7  Compliance reviews.
617.8  Pre-award reviews.
617.9  Complaints.
617.10  Mediation.
617.11  Investigation.
617.12  Compliance procedure.
617.13  Hearings, decisions, post-termination proceedings.
617.14  Remedial action by recipients.
617.15  Exhaustion of administrative remedies.
617.16  Prohibition against intimidation or retaliation.

Appendix I to Part 617--List of Age Distinctions Provided in Federal 
          Statutes or Regulations Affecting Federal Financial Assistance 
          Administered by NSF

    Authority: Age Discrimination Act of 1975, as amended, 42 U.S.C. 
6101, et seq.; 45 CFR part 90.

    Source: 49 FR 49628, Dec. 21, 1984, unless otherwise noted.



Sec. 617.1  Purpose.

    This part prescribes NSF's policies and procedures under the Age 
Discrimination Act of 1975 and the Department of Health and Human 
Services government-wide age discrimination regulations at 45 CFR part 
90. The Act and part 90 prohibit discrimination on the basis of age in 
programs or activities receiving Federal financial assistance. The Act 
and part 90 permit federally assisted programs and activities and 
recipients of Federal funds to continue to use age distinctions and 
factors other than age which meet the requirements of the Act and part 
90.



Sec. 617.2  Definitions.

    The following terms used in this part are defined in part 90:

Act
Action
Age
Age distinction
Age-related term
Agency
Federal financial assistance
Recipient (including subrecipients)
United States



Sec. 617.3  Standards.

    Standards for determining whether an age distinction or age-related 
term is prohibited are set out in part 90 of this title 45. See also 
appendix I to this part.



Sec. 617.4  General duties of recipients.

    Each recipient of Federal financial assistance from NSF shall comply 
with the Act, part 90, and this part. Each NSF award of Federal 
financial assistance shall contain the following provision:

                 Compliance With Age Discrimination Act

    The recipient agrees to comply with the Age Discrimination Act of 
1975 as implemented by the Department of Health and Human Services 
regulations at 45 CFR part 90 and the regulations of the Foundation at 
45 CFR part 617. In the event the recipient passes on NSF financial 
assistance to sub-recipients, this provision shall apply to the 
subrecipients, and the instrument under which the Federal financial 
assistance is passed to the subrecipient shall contain a provision 
identical to this provision.



Sec. 617.5  Self-evaluation.

    (a) Each recipient (including subrecipients) employing the 
equivalent of fifteen or more full-time employees shall complete a 
written self-evaluation of its compliance under this part within 18 
months of the effective date of these regulations, unless a similar 
evaluation has been completed for another agency.
    (b) In its self-evaluation, each recipient shall identify all age 
distinctions it uses and justify each age distinction it imposes on the 
program or activity receiving Federal financial assistance from NSF.

[[Page 143]]

    (c) Each recipient shall take corrective action whenever a self-
evaluation indicates a violation of the Act.
    (d) Each recipient shall make the self-evaluation available on 
request to NSF and the public for three years after its completion.



Sec. 617.6  Information requirements.

    Each recipient shall:
    (a) Make available upon request to NSF information necessary to 
determine whether the recipient is complying with the Act.
    (b) Permit reasonable access by NSF or its designee to the books, 
records, accounts, and other recipient facilities and sources of 
information to the extent necessary to determine whether a recipient is 
complying with the Act.



Sec. 617.7  Compliance reviews.

    (a) NSF may conduct compliance reviews of recipients that will 
permit it to investigate and correct violations of the Act. NSF may 
conduct these reviews even in the absence of a complaint against a 
recipient. The review may be as comprehensive as necessary to determine 
whether a violation of the Act has occurred.
    (b) If a compliance review indicates a violation of the Act, NSF 
will attempt to achieve voluntary compliance with the Act. If voluntary 
compliance cannot be achieved, NSF may arrange for enforcement as 
described in Sec. 617.12.



Sec. 617.8  Pre-award reviews.

    NSF reserves the right to conduct pre-award reviews of applicants 
for Federal financial assistance from NSF in cases where the NSF has 
substantial reason to believe that a potential recipient who is not then 
a recipient of other NSF financial assistance under the same program or 
activities may engage in practices under that program or activity that 
would violate the Act. However, the results of any such review shall not 
constitute a basis for NSF refusal to grant financial assistance to the 
applicant under that program or activity unless the procedural 
requirements of the Act (42 U.S.C. 6104) and Secs. 617.12 and 617.13 of 
this part have been followed.



Sec. 617.9  Complaints.

    (a) Any person, individually or as a member of a class or on behalf 
of others, may file a complaint with NSF, alleging discrimination 
prohibited by the Act. A complainant shall file a complaint within 180 
days from the date the complainant first had knowledge of the alleged 
act of discrimination. However, for good cause shown, NSF may extend 
this time limit.
    (b) NSF will accept as a sufficient complaint, any written statement 
which identifies the parties involved and the date the complainant first 
had knowledge of the alleged violation, describes generally the action 
or practice complained of, and is signed by the complainant. If an 
insufficient complaint is amended within 10 working days after notice by 
NSF to the complainant of the deficiency, NSF will consider the amended 
complaint as filed on the date the original insufficient complaint was 
filed for purposes of determining if it was timely filed. However, all 
other time requirements established by the Act and this part shall run 
from the date the amended complaint was filed.
    (c) On receipt of any complaint NSF shall promptly send written 
acknowledgement to the complainant, and a copy of the complaint to the 
recipient. In addition, NSF shall send either copies of this part or 
other pertinent information describing the rights and obligations of the 
parties.
    (d) NSF will return to the complainant any complaint outside the 
coverage of this part, and will state why it is outside the coverage of 
this part.



Sec. 617.10  Mediation.

    (a) NSF will refer to the Federal Mediation and Conciliation Service 
all complaints that fall within the jurisdiction of this part and 
contain all information necessary for further processing.
    (b) Both the complainant and the recipient shall participate in the 
mediation process to the extent necessary to reach an agreement or for a 
mediator to make an informed judgement that an agreement is not 
possible. NSF

[[Page 144]]

will take no further administrative action on any complaint if the 
complainant refuses to participate in the mediation process.
    (c) If the complainant and the recipient reach an agreement, the 
mediator shall prepare a written statement of the agreement and have the 
complainant and recipient sign it. The mediator shall send a copy of the 
agreement to NSF. NSF shall take no further action on the complaint 
unless the complainant or the recipient fails to comply with the 
agreement, in which case the other party may request that the complaint 
be reopened.
    (d) The mediator shall protect the confidentiality of all 
information obtained in the course of the mediation process. No mediator 
shall testify in any adjudicative proceeding, produce any document, or 
otherwise disclose any information obtained in the course of the 
mediation process without prior approval of the head of the Federal 
Mediation and Conciliation Service.
    (e) NSF will use the mediation process for a maximum of 60 days 
after receiving a complaint. Mediation ends if:
    (1) 60 days elapse from the time NSF receives a sufficient 
complaint: or
    (2) Before the end of the 60 day period, an agreement is reached; or
    (3) Before the end of the 60 day period, the mediator determines 
that an agreement cannot be reached.
    (f) The mediator shall return unresolved complaints to NSF.



Sec. 617.11  Investigation.

    (a) Informal investigation. (1) NSF will investigate complaints that 
are unresolved after mediation or are reopened because of violation of a 
mediation agreement.
    (2) As part of the initial investigation, NSF will use informal fact 
finding methods, including joint or separate discussions with the 
complainant and recipient, to establish the facts, and, if possible, 
will settle the complaint on terms that are agreeable to the parties. 
NSF may seek the assistance of any involved State program agency.
    (3) NSF will put any agreement in writing and have it signed by the 
parties and an authorized official of NSF.
    (4) A settlement shall not affect other enforcement efforts of NSF, 
including compliance reviews, or individual complaints that involve the 
recipient.
    (5) A settlement is not a finding of discrimination against the 
recipient.
    (b) Formal investigation. If NSF cannot resolve the complaint 
through informal investigation, it will begin to develop formal findings 
through further investigation of the complaint. If the investigation 
indicates a violation of the Act, NSF will try to obtain voluntary 
compliance. If NSF cannot obtain voluntary compliance, it will begin 
enforcement as described in Sec. 617.12. If the investigation does not 
indicate a violation of the Act, NSF will issue a written determination 
in favor of the recipient.



Sec. 617.12  Compliance procedure.

    (a) NSF may enforce this part by either termination of a recipient's 
financial asistance from NSF under the program or activity involved 
where the recipient has violated the Act or this part or refusal to 
grant further financial assistance under the program or activity 
involved where the recipient has violated the Act or this part. The 
determination of the recipient's violation may be made only after a 
recipient has had an opportunity for a hearing on the record before an 
administrative law judge. Therefore, cases settled in the mediation 
process or before a hearing will not involve termination of a 
recipient's Federal financial assistance from NSF.
    (b) NSF may also enforce this part by any other means authorized by 
law, including but not limited to:
    (1) Referral to the Department of Justice for proceedings to enforce 
any rights of the United States or obligations by this part.
    (2) Use of any requirement of or referral to any Federal, State, or 
local government agency that will have the effect of correcting a 
violation of the Act or this part.
    (c) NSF will limit any termination or refusal to grant further 
financial assistance to the particular recipient and the particular 
program found to be in violation of the Act. NSF will not base any part 
of a termination or refusal on a finding with respect to any program or 
activity of the recipient which does

[[Page 145]]

not receive Federal financial assistance for NSF.
    (d) NSF will not begin any hearing under paragraph (a) until the 
Director has advised the recipient of its failure to comply with this 
part and has determined that voluntary compliance cannot be obtained.
    (e) NSF will not terminate or refuse to grant Federal financial 
assistance until thirty days have elapsed after the Director has sent a 
written report of the circumstances and grounds of the action to the 
committees of the Congress having legislative jurisdiction over the 
Federal program or activity involved. The Director will file a report 
whenever any action is taken under paragraph (f) of this section.
    (f) Alternate Funds Disbursal Procedures. (1) When NSF withholds 
funds from a recipient under these regulations, the Secretary may 
disburse the withheld funds directly to an alternate recipient: Any 
public or non-profit private organization or agency, or State or 
political subdivision of the State.
    (2) The Director will require any alternate recipient to 
demonstrate:
    (i) The ability to comply with these regulations; and
    (ii) The ability to achieve the goals of the Federal statute 
authorizing the program or activity.



Sec. 617.13  Hearings, decisions, post-termination proceedings.

    Procedures prescribed in 45 CFR 611.9 and 611.10 for NSF enforcement 
of Title VI of the Civil Rights Act of 1964 shall apply also for NSF 
enforcement of this part. At the conclusion of any action taken under 
Sec. 617.12, NSF, shall remind both parties of the right to judicial 
review established by 42 U.S.C. 6105.



Sec. 617.14  Remedial action by recipients.

    Where the Director finds that a recipient has discriminated on the 
basis of age, the recipient shall take any remedial action the Director 
may require to overcome the effects of the discrimination. If another 
recipient exercises control over the recipient that has discriminated, 
the Director may require both recipients to take remedial action.



Sec. 617.15  Exhaustion of administrative remedies.

    (a) A complainant may file a civil action after exhausting 
administrative remedies under the Act. Administrative remedies are 
exhausted if:
    (1) 180 days have elapsed since the complainant filed a sufficient 
complaint and NSF has made no finding with regard to the complaint; or
    (2) NSF issues any finding in favor of the recipient.
    (b) If NSF fails to make a finding within 180 days or issues a 
finding in favor of the recipient, NSF will:
    (1) Promptly advise the complainant of this fact; and
    (2) Advise the complainant of his or her right to bring a civil 
action for injunctive relief under 42 U.S.C. 6104; and
    (3) Inform the complainant that under 42 U.S.C. 6104:
    (i) The complainant may bring a civil action only in a United States 
District court for the district in which the recipient is located or 
transacts business;
    (ii) A complainant prevailing in a civil action has the right to be 
awarded the costs of the action, including reasonable attorney's fees, 
but that the complainant must demand these costs in the complaint;
    (iii) Before commencing the action the complainant shall give 30 
days notice by registered mail to the Director, the Attorney General of 
the United States, and the recipient;
    (iv) The notice must state the alleged violation of the Act; the 
relief requested; the court in which the complainant is bringing the 
action; and whether or not attorney's fees are demanded in the event the 
complainant prevails; and
    (v) The complainant may not bring an action if the same alleged 
violation of the Act by the same recipient is the subject of a pending 
action in any court of the United States.



Sec. 617.16  Prohibition against intimidation or retaliation.

    A recipient may not engage in acts of intimidation or retaliation 
against a person who:
    (a) Attempts to assert a right protected by the Act, or
    (b) Cooperates in any mediation, investigation, hearing or other 
part of

[[Page 146]]

NSF's investigation, conciliation, and enforcement process.

  Appendix I to Part 617--List of Age Distinctions Provided in Federal 
     Statutes or Regulations Affecting Federal Financial Assistance 
                           Administered by NSF

    I. Section 6 of Pub. L. 94-86, 42 U.S.C. 1881a:
    This statute authorizes the Foundation to establish the Alan T. 
Waterman Award to recognize and encourage the work of ``younger'' 
scientists. Under NSF procedures awards have been limited to persons 35 
years of age or under.



PART 620--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                           Subpart A--General

Sec.
620.100  Purpose.
620.105  Definitions.
620.110  Coverage.
620.115  Policy.

                       Subpart B--Effect of Action

620.200  Debarment or suspension.
620.205  Ineligible persons.
620.210  Voluntary exclusion.
620.215  Exception provision.
620.220  Continuation of covered transactions.
620.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

620.300  General.
620.305  Causes for debarment.
620.310  Procedures.
620.311  Investigation and referral.
620.312  Notice of proposed debarment.
620.313  Opportunity to contest proposed debarment.
620.314  Debarring official's decision.
620.315  Settlement and voluntary exclusion.
620.320  Period of debarment.
620.325  Scope of debarment.

                          Subpart D--Suspension

620.400  General.
620.405  Causes for suspension.
620.410  Procedures.
620.411  Notice of suspension.
620.412  Opportunity to contest suspension.
620.413  Suspending official's decision.
620.415  Period of suspension.
620.420  Scope of suspension.

        Subpart E--Responsibilities of GSA, NSF and Participants

620.500  GSA responsibilities.
620.505  NSF responsibilities.
620.510  Participants' responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

620.600  Purpose.
620.605  Definitions.
620.610  Coverage.
620.615  Grounds for suspension of payments, suspension or termination 
          of grants, or suspension or debarment.
620.620  Effect of violation.
620.625  Exception provision.
620.630  Certification requirements and procedures.
620.635  Reporting of and employee sanctions for convictions of criminal 
          drug offenses.

Appendix A to Part 620--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions

Appendix B to Part 620--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions

Appendix C to Part 620--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: 41 U.S.C. 701 et seq.; 42 U.S.C. 1870(a); E.O. 12549, 3 
CFR, 1986 Comp., p. 189.

    Source: 53 FR 19201 and 19204, May 26, 1988, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notice 
published at 55 FR 21679, May 25, 1990 and 60 FR 33036, June 26, 1995.

    Editorial Note:
    (1) For nomenclature change to part 620, see 53 FR 19201, May 26, 
1988.
    (2) For additional information, see related documents published at 
52 FR 20360, May 29, 1987, 53 FR 19160, May 26, 1988, and 53 FR 34474, 
September 6, 1988.



                           Subpart A--General



Sec. 620.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded

[[Page 147]]

from Federal financial and nonfinancial assistance and benefits under 
Federal programs and activities. Debarment or suspension of a 
participant in a program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 620.105), and participants who have voluntarily 
excluded themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040, 33062, June 26, 1995]



Sec. 620.105  Definitions.

    The following definitions apply to this part:
    Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
     Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
     Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
     Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
     Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a

[[Page 148]]

criminal offense shall be given the same effect as an indictment.
     Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing regulations, the 
equal employment opportunity acts and executive orders, or the 
environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
     Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
     NSF. National Science Foundation.
     Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
     Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
     Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
     Principal. Officer, director, owner, partner, key employee, or 
other person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    (2) [Reserved]
     Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
     Respondent. A person against whom a debarment or suspension action 
has been initiated.
     State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
     Suspending official. An official authorized to impose suspension. 
The suspending official is either:

[[Page 149]]

    (1) The agency head, or
    (2) An official designated by the agency head.
     Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
     Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.

[53 FR 19201, 19204, May 26, 1988, as amended at 60 FR 33041, 33062, 
June 26, 1995]



Sec. 620.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will

[[Page 150]]

apply. Subpart B, ``Effect of Action,'' Sec. 620.200, ``Debarment or 
suspension,'' sets forth the consequences of a debarment or suspension. 
Those consequences would obtain only with respect to participants and 
principals in the covered transactions and activities described in 
Sec. 620.110(a). Sections 620.325, ``Scope of debarment,'' and 620.420, 
``Scope of suspension,'' govern the extent to which a specific 
participant or organizational elements of a participant would be 
automatically included within a debarment or suspension action, and the 
conditions under which affiliates or persons associated with a 
participant may also be brought within the scope of the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19201, 19204, may 26, 1988, as amended at 60 FR 33041, 33062, 
June 26, 1995]



Sec. 620.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 620.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 620.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 620.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);

[[Page 151]]

    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041, 33062, June 26, 1995]



Sec. 620.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 620.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 620.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 620.315 are 
excluded in accordance with the terms of their settlements. NSF shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 620.215  Exception provision.

    NSF may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a written determination by the agency head or an 
authorized designee stating the reason(s) for deviating from the 
Presidential policy established by Executive Order 12549 and 
Sec. 620.200. However, in accordance with the President's stated 
intention in the Executive Order, exceptions shall be granted only 
infrequently. Exceptions shall be reported in accordance with 
Sec. 620.505(a).

[60 FR 33041, 33062, June 26, 1995]



Sec. 620.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 620.215.

[60 FR 33041, 33062, June 26, 1995]



Sec. 620.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 620.215 or Sec. 620.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See Appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.

[60 FR 33041, 33062, June 26, 1995]



                          Subpart C--Debarment



Sec. 620.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 620.305, using procedures established in Secs. 620.310 through 
620.314. The existence of a cause for debarment, however, does not 
necessarily require that the person

[[Page 152]]

be debarred; the seriousness of the person's acts or omissions and any 
mitigating factors shall be considered in making any debarment decision.



Sec. 620.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 620.300 through 620.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 620.215 or Sec. 620.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 620.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in 620.615 of this 
part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19201, 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 620.310  Procedures.

    NSF shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 620.311 through 620.314.



Sec. 620.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 620.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 620.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 620.311 through Sec. 620.314, and any 
other NSF

[[Page 153]]

procedures, if applicable, governing debarment decisionmaking; and
    (e) Of the potential effect of a debarment.



Sec. 620.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 620.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 620.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 620.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, NSF may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).

[[Page 154]]



620.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see 620.305(c)(5)), the period of debarment 
shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 620.311 through 620.314 shall be followed to extend the debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19201, 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 620.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 620.311 through 
620.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance

[[Page 155]]

of the benefits derived from the conduct shall be evidence of such 
knowledge, approval, or acquiescence.



                          Subpart D--Suspension



Sec. 620.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 620.405 using procedures established in Secs. 620.410 
through 620.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 620.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 620.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 620.400 through 620.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 620.305(a); or
    (2) That a cause for debarment under Sec. 620.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 620.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. NSF shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Secs. 620.411 through 620.413.



Sec. 620.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 620.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Secs. 620.411 through 620.413 and any other 
NSF procedures, if applicable, governing suspension decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 620.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on

[[Page 156]]

the same facts as the suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 620.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 620.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 620.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 620.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 620.325), except that the procedures of Secs. 620.410 through 
620.413 shall be used in imposing a suspension.



        Subpart E--Responsibilities of GSA, NSF and Participants



Sec. 620.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references

[[Page 157]]

when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 620.505  NSF responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which NSF has granted exceptions under Sec. 620.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 620.500(b) and of 
the exceptions granted under Sec. 620.215 within five working days after 
taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Agency officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (Tel. ).
    (e) Agency officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.



Sec. 620.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(Tel. ). Adverse information on the certification will not necessarily 
result in denial of participation. However, the certification, and any 
additional information pertaining to the certification submitted by the 
participant, shall be considered in the administration of covered 
transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligibility of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to NSF if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated notice 
to the participant to which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21703, May 25, 1990, unless otherwise noted.

[[Page 158]]



Sec. 620.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 620.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 620.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of

[[Page 159]]

local government. A State instrumentality will be considered part of the 
State government if it has a written determination from a State 
government that such State considers the instrumentality to be an agency 
of the State government.



Sec. 620.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.



Sec. 620.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 620.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a)-(g) and/or (B) of the 
certification (Alternate I to appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.



Sec. 620.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 620.615, and in accordance with applicable law, the grantee shall 
be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 620.320(a)(2) of this 
part).



Sec. 620.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 620.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of

[[Page 160]]

such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 620.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall

[[Page 161]]

report the conviction, in writing, within 10 calendar days, to his or 
her Federal agency grant officer, or other designee, unless the Federal 
agency has designated a central point for the receipt of such notices. 
Notification shall include the identification number(s) for each of the 
Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

 Appendix A to Part 620--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

[[Page 162]]

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

 Appendix B to Part 620--Certification Regarding Debarment, Suspension, 
  Ineligibilty and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the

[[Page 163]]

Federal Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

  Appendix C to Part 620--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;

[[Page 164]]

    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.

[55 FR 21690 and 21703, May 25, 1990]



PART 640--COMPLIANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT--Table of Contents




Sec.
640.1  Purpose.
640.2  Committee on environmental matters.
640.3  Actions requiring an environmental assessment and categorical 
          exclusions.
640.4  Responsibilities and procedures for preparation of an 
          environmental assessment.
640.5  Responsibilities and procedures for preparation of an 
          environmental impact statement.

    Authority: NEPA; the Environmental Quality Improvement Act of 1970, 
as amended (42 U.S.C. 4371 et seq.); sec. 309 of the Clean Air Act, as 
amended (42 U.S.C. 7609); E.O. 11514, ``Protection and Enhancement of 
Environmental Quality'' (March 5, 1970, as amended by E.O. 11991, May 
24, 1977); and CEQ regulations at 40 CFR Parts 1500 through 1508.

    Source: 45 FR 40, Jan. 2, 1980, unless otherwise noted.



Sec. 640.1  Purpose.

    The purpose of this regulation is to adopt NSF procedures to 
supplement regulations at 40 CFR parts 1500 through 1508 (hereafter 
referred to as ``CEQ regulations'').



Sec. 640.2  Committee on environmental matters.

    (a) There is established an NSF Committee on Environmental Matters 
(hereafter referred to as the Committee) to consist of one 
representative from each directorate. The General

[[Page 165]]

Counsel, or his or her designee, shall serve as Chairman. At the 
discretion of the Chairman and with the concurrence of the Committee, 
additional members may be appointed.
    (b) All incoming correspondence from CEQ and other agencies 
concerning matters related to NEPA, including draft and final 
environmental impact statements, shall be brought to the attention of 
the Chairman. The Chairman will prepare or, at his or her discretion, 
coordinate replies to such correspondence.
    (c) The Committee shall meet regularly to discuss NSF policies and 
practices regarding NEPA, and make recommendations on the need for or 
adequacy of environmental impact assessments or statements.
    (d) With respect to actions of NSF, the Committee will:
    (1) Maintain a list of actions for which environmental impact 
statements are being prepared.
    (2) Revise this list at regular intervals, based on input from the 
directorates, and send revisions to CEQ.
    (3) Make the list available for public inspection on request.
    (4) Maintain a list of environmental impact assessments.
    (5) Maintain a file of draft and final environmental impact 
statements.
    (e) The Committee and/or the Chairman will perform such additional 
functions as are set forth elsewhere in this part and in other NSF 
issuances.

[45 FR 40, Jan. 2, 1980, as amended at 49 FR 37596, Sept. 25, 1984; 59 
FR 37438, July 22, 1994]



Sec. 640.3  Actions requiring an environmental assessment and categorical exclusions.

    (a) The types of actions to be classified as ``major Federal 
actions'' subject to NEPA procedures are discussed generally in the CEQ 
regulations. Paragraph (b) of this section describes various classes of 
NSF actions that normally require the preparation of an environmental 
assessment or an EIS, and those classes that are categorically excluded. 
(Categorical exclusion is defined at 40 CFR 1508.4.) The word 
``normally'' is stressed; there may be individual cases in which 
specific factors require contrary action. NSF directorates and offices 
are responsible for identifying situations in which an environmental 
assessment or an EIS should be prepared even if not normally required by 
paragraph (b) of this paragraph.
    (b) Most NSF awards support individual scientific research projects 
and are not ``major Federal actions significantly affecting the quality 
of the human environment'' except in the sense that the long term effect 
of the accumulation of human knowledge is likely to affect the quality 
of the human environment. However, such long term effects are basically 
speculative and unknowable in advance; thus they normally do not provide 
a sufficient basis for classifying research as subject to NEPA (See 40 
CFR 1508.8) and are categorically excluded from an environmental 
assessment. Nevertheless, in some cases the actual procedures used in 
carrying out the research may have potential environmental effects, 
particularly where the project requires construction of facilities or 
major disturbance of the local environment brought about by blasting, 
drilling, excavating, or other means. Accordingly, except as provided in 
paragraph (c) of this section, the following types of activities require 
at least an environmental assessment:
    (1) Cases where developmental efforts are supported, if the project 
supports the transition of a particular technology from the development 
stage to large-scale commercial utilization.
    (2) Any project supporting construction, other than interior 
remodelling.
    (3) Cases where field work affecting the natural environment will be 
conducted.
    (4) Any project that will involve drilling of the earth, excavation, 
explosives, weather modification, or other techniques that may alter a 
local environment.
    (5) Any project that provides for the testing and release of 
biological-control agents for purposes of ecosystem manipulation and 
assessment of short- and long-term effects of major ecosystem 
perturbation.
    (c) Directorates having divisions or programs with a substantial 
number of projects that fall within categories (3),

[[Page 166]]

(4), and (5) in (b) of this section, are authorized to issue 
supplemental guidelines to Division Directors and Program Officers 
establishing subcategories of research methodologies or techniques for 
which environmental assessments need not be prepared. For example, if a 
program regularly supports research that involves noninvasive techniques 
or nonharmful invasive techniques (such as taking water or soil samples, 
or collecting non-protected species of flora and fauna) the directorate 
may determine that field projects otherwise coming under paragraph 
(b)(3) of this section which involve only the use of such techniques do 
not require an environmental assessment. However, any such guidelines 
must be submitted to the Chairman for approval.
    (d) In some cases within the categories listed in paragraph (b) of 
this section, it will be evident at the outset or after the assessment 
process is begun that an EIS should be prepared. In such cases an 
assessment need not be completed, but the process of preparing an EIS 
(See Sec. 640.5, of this part) should be started.



Sec. 640.4  Responsibilities and procedures for preparation of an environmental assessment.

    (a) Program Officers, as the first point of decision in the review 
process, shall determine into which category incoming proposals fall, 
according to the criteria set forth in Sec. 640.3 of this part. 
Notwithstanding this responsibility of the Program Officer, the 
appropriate Division Director, Assistant Director, and other reviewing 
policy officials must assure that adequate analysis is being made.
    (b) Where appropriate, programs, divisions, or directorates will 
advise prospective applicants in program announcements, requests for 
proposals, and other NSF-prepared brochures of the requirement to 
furnish information regarding any environmental impact that the 
applicant's proposed study may have.
    (c) Should an environmental assessment be required, the directorate 
supporting the activity shall be responsible for its preparation. The 
grant or contract applicant may be asked to submit additional 
information in order that a reasonable and accurate assessment may be 
made. Though no specific format for an environmental assessment is 
prescribed, it shall be a separate document suitable for public review 
and shall serve the purpose described in 40 CFR 1508.9, which is quoted 
in full as follows:

                Section 1508.9  Environmental Assessment

    ``Environmental Assessment'':
    (a) Means a concise public document for which a Federal agency is 
responsible that serves to:
    (1) Briefly provide sufficient evidence and analysis for determining 
whether to prepare an environmental impact statement or a finding of no 
significant impact.
    (2) Aid an agency's compliance with the Act when no environmental 
impact statement is necessary.
    (3) Facilitate preparation of a statement when one is necessary.
    (b) Shall include brief discussions of the need for the proposal, of 
alternatives as required by section 102(2)(E), of the environmental 
impacts of the proposed action and alternatives, and a listing of 
agencies and persons consulted.

    (d) A copy of the assessment or drafts shall accompany the 
appropriate proposal throughout the NSF internal review and approval 
process. At the option of the directorate preparing the assessment, a 
draft may be submitted to the Committee for its review and comments. 
Prior to an award decision, one copy of all completed assessments shall 
be sent to the Chairman for review and updating of the Committee listing 
of assessments.
    (e) If, on the basis of an environmental assessment, it is 
determined that an EIS is not required, a Finding of No Significant 
Impact (FNSI) as described in 40 CFR 1508.13 will be prepared. The FNSI 
shall include the environmental assessment or a summary of it and be 
available to the public from the Committee. If the proposed action is 
one that normally requires an EIS, is closely similar to an action 
normally requiring an EIS, or is without precedent, the FNSI shall be 
made available for a 30 day public review period before any action is 
taken.

[[Page 167]]



Sec. 640.5  Responsibilities and procedures for preparation of an environmental impact statement.

    (a) If initially or after an environmental assessment has been 
completed, it is determined that an environmental impact statement 
should be prepared, it and other related documentation will be prepared 
by the directorate responsible for the action in accordance with section 
102(2)(c) of the Act, this part, and the CEQ regulations. The 
responsible directorate will be in close communication with the grant or 
contract applicant and may have to rely extensively on his or her input 
in preparing the EIS. However, once a document is prepared it shall be 
submitted to the Chairman who, after such review by the Committee as is 
deemed necessary by the Chairman, shall transmit the document as 
required by CEQ regulations and this part. If the Chairman considers a 
document unsatisfactory, he or she shall return it to the responsible 
directorate for revision prior to an award decision.
    Specifically, the following steps, as discussed in the CEQ 
regulations, will be followed in preparing an EIS:
    (1) A notice of intent to prepare a draft EIS will be published as 
described in 40 CFR 1501.7.
    (2) Scoping, as described in 40 CFR 1501.7, will be conducted.
    (3) The format and contents of the draft and final EIS shall be as 
discussed in 40 CFR part 1502.
    (4) Comments on the draft EIS shall be invited as set forth in 40 
CFR 1503.1. The minimum period to be afforded for comments on a draft 
EIS shall be 45 days, unless a lesser period is necessary to comply with 
other specific statutory requirements or in case of emergency 
circumstances, as described in 40 CFR 1506.11.
    (5) The requirements of 40 CFR 1506.9 for filing of documents with 
the Environmental Protection Agency shall be followed.
    (6) The responsible directorate shall examine carefully the basis on 
which supportive studies have been conducted to assure that such studies 
are objective and comprehensive in scope and in depth.
    (7) The Act requires that the decisionmaking involved ``utilize a 
systematic, interdisciplinary approach that will insure the integrated 
use of the natural and social sciences and the environmental design 
arts.'' If such disciplines are not present on the NSF staff, 
appropriate use should be made of personnel of Federal, State, and local 
agencies, universities, non-profit organizations, or private industry.
    (8) A copy of the draft EIS or the final EIS (or a summary, if the 
size of the EIS does not make this practical) shall be included in and 
accompany the appropriate proposal throughout the NSF internal review 
and approval process.
    (b)(1) 40 CFR 1506.1 describes the types of actions that should not 
be taken during the NEPA process. Such actions shall be avoided by NSF 
personnel during the process of preparation of an EIS and for a period 
of thirty days after the final EIS is filed with EPA, unless such 
actions are necessary to comply with other specific statutory 
requirements.
    (2) 40 CFR 1506.10 also places certain limitations on the timing of 
agency decisions on taking ``major Federal actions''. In some cases the 
actual ``decision point'' may be more clear-cut than others. If the 
``action'' that necessitated the preparation of an EIS is one that would 
be carried out under grant, contract, or cooperative agreement, then the 
award shall not be made before the times set forth in 40 CFR 1506.10, 
unless such action is necessary to comply with other specific statutory 
requirements, or as exceptions are needed as provided in 40 CFR 1506.10, 
1506.11, or 1507.3. However, an award for preliminary planning proposals 
may be made before such times if it is so structured as to require 
further NSF approvals for funding the actual actions that might 
adversely affect the quality of the human environment. In such cases, 
the subsequent approvals for funding these actions will be considered 
the ``decision''. This is consistent with the requirement that 
environmental considerations undergo concurrent review with all other 
project planning considerations.
    (c) In appropriate cases, if the action involves other agencies, the 
Chairman may agree to designate another agency as ``lead agency'' and to 
cooperate as

[[Page 168]]

discussed in 40 CFR 1501.5 and 1501.6. In such cases, the Chairman has 
authority to alter the procedures described in (a) to the extent they 
are inconsistent with functions assigned to NSF under the ``cooperating 
agency'' arrangements.
    (d) A public record of decision stating what the decision was; 
identifying alternatives that were considered, including the 
environmentally preferable one(s); discussing any national policy 
considerations that entered into the decision; and summarizing a 
monitoring and enforcement program if applicable for mitigation, will be 
prepared. This record of decision will be prepared at the time the 
decision is made, or if appropriate, when the agency makes its 
recommendation for action to Congress. (See 40 CFR 1505.2.)



PART 641--ENVIRONMENTAL ASSESSMENT PROCEDURES FOR PROPOSED NATIONAL SCIENCE FOUNDATION ACTIONS IN ANTARCTICA--Table of Contents




Sec.
641.10  Purpose.
641.11  Policy.
641.12  Applicability.
641.13  Right of action.
641.14  Definitions.
641.15  Preliminary environmental review.
641.16  Preparation of environmental documents, generally.
641.17  Initial environmental evaluation.
641.18  Comprehensive environmental evaluation.
641.19  Modification of environmental documents.
641.20  Notification of availability of environmental documents and 
          other information.
641.21  Monitoring.
641.22  Cases of emergency.

    Authority: E.O. 12114, 44 FR 1957, 3 CFR 1979 Comp., p. 356.

    Source: 57 FR 40339, Sept. 3, 1992, unless otherwise noted.



Sec. 641.10  Purpose.

    These procedures are designed to elicit and evaluate information 
that will inform the National Science Foundation (NSF) of the potential 
environmental consequences of proposed U.S. Antarctic Program (USAP) 
actions, so that relevant environmental considerations are taken into 
account by decisionmakers before reaching final decisions on whether or 
how to proceed with proposed actions. These procedures are consistent 
with and implement the requirements of:
    (a) Executive Order 12114 as it relates to NSF's Antarctic 
activities, and
    (b) the environmental assessment provisions of the Protocol on 
Environmental Protection to the Antarctic Treaty.



Sec. 641.11  Policy.

    It is the policy of NSF to use all practicable means, consistent 
with its authority, to ensure that potential environmental effects of 
actions undertaken by NSF in Antarctica, either independently or in 
cooperation with another country, are appropriately identified and 
considered during the decisionmaking process, and that appropriate 
environmental safeguards which would limit, mitigate or prevent adverse 
impacts on the Antarctic environment are identified.



Sec. 641.12  Applicability.

    The requirements set forth in this part apply to all proposed 
projects, programs and actions authorized or approved by, or subject to 
the control and responsibility of NSF that may have an impact on the 
Antarctic environment.



Sec. 641.13  Right of action

    The procedures set forth in this part establish internal procedures 
to be followed by NSF in considering the potential environmental effects 
of actions taken in Antarctica. Nothing in this part shall be construed 
to create a cause of action.



Sec. 641.14  Definitions.

    As used in these procedures, the term:
    (a) Action means a project, program or other activity, including the 
adoption of an official policy or formal plan, that is undertaken, 
authorized, adopted or approved by, or subject to the control or 
responsibility of NSF, the decommissioning of a physical plant or 
facility, and any change in the scope or intensity of a project, program 
or action.

[[Page 169]]

    (b) Antarctica means the area south of 60 degrees south latitude.
    (c) Antarctic environment means the natural and physical environment 
of Antarctica and its dependent and associated ecosystems, but excludes 
social, economic and other environments.
    (d) Antarctic Treaty Consultative Meeting means a meeting of the 
Parties to the Antarctic Treaty, held pursuant to Article IX(1) of the 
Treaty.
    (e) Comprehensive Environmental Evaluation or CEE means a study of 
the reasonably foreseeable potential effects of a proposed action on the 
antarctic environment, prepared in accordance with the provisions of 
Sec. 641.18, and includes all comments thereon received during the 
comment period described in Sec. 641.18(c). A Comprehensive 
Environmental Evaluation shall constitute an environmental impact 
statement for purposes of the Executive Order.
    (f) Environmental Action Memorandum means a document briefly 
describing a proposed action and its potential impacts, if any, on the 
antarctic environment prepared by the responsible official when he or 
she determines that a proposed action will have less than a minor or 
transitory impact on the Antarctic environment.
    (g) Environmental document means an initial environmental evaluation 
or a comprehensive environmental evaluation.
    (h) Environmental review means the environmental review required by 
the provisions of this part, and includes preliminary environmental 
review and preparation of an environmental document, and review by the 
parties to the Protocol, and committees established under the Protocol 
for that purpose, and the public, as applicable.
    (i) Executive Order means Executive Order 12114, Environmental 
Effects Abroad of Major Federal Actions, 44 FR 1957.
    (j) Initial Environmental Evaluation or IEE means a study of the 
reasonably foreseeable potential effects of a proposed action on the 
antarctic environment, prepared in accordance with the provisions of 
Sec. 641.17.
    (k) Preliminary environmental review means the environmental review 
described in Sec. 641.15(a).
    (l) Protocol means the Protocol on Environmental Protection to the 
Antarctic Treaty, adopted on October 4, 1991, in Madrid, at the fourth 
session of the Eleventh Special Antarctic Treaty Consultative Meeting 
and signed by the United States on that date, and all annexes thereto.
    (m) Responsible official means the Director of the Office of Polar 
Programs, or any NSF employee(s) designated by the Director to be 
principally responsible for the preparation of environmental action 
memoranda or environmental documents under this part.
    (n) Treaty means the Antarctic Treaty signed in Washington, D.C., on 
December 1, 1959, T.I.A.S No. 4780.

[57 FR 40339, Sept. 3, 1992, as amended at 59 FR 37438, July 22, 1994]



Sec. 641.15  Preliminary environmental review.

    (a) The responsible official shall be notified early in the general 
planning process of actions proposed by USAP components that may have 
impacts on the Antarctic environment, so that environmental review may 
be integrated into the planning and decisionmaking processes. The 
responsible official shall conduct a preliminary environmental review of 
each action, including consideration of the potential direct and 
reasonably foreseeable indirect effects of a proposed action on the 
Antarctic environment.
    (b) If, on the basis of the preliminary environmental review, the 
responsible official determines that an action will have less than a 
minor or transitory impact on the Antarctic environment, he will prepare 
an Environmental Action Memorandum briefly summarizing the environmental 
issues considered and conclusions drawn from the review. No further 
environmental review shall be necessary.



Sec. 641.16  Preparation of environmental documents, generally.

    (a) Preparation of an environmental document. If the responsible 
official determines, either initially or on the basis of a preliminary 
environmental review, that a proposed action may have at least a minor 
or transitory impact on the Antarctic environment, he

[[Page 170]]

will prepare an environmental document in accordance with the provisions 
of this part. In making this determination, the responsible official 
should consider whether and to what degree the proposed action:
    (1) Has the potential to adversely affect the Antarctic environment;
    (2) May adversely affect climate and weather patterns;
    (3) May adversely affect air or water quality;
    (4) May affect atmospheric, terrestrial (including aquatic), glacial 
or marine environments;
    (5) May detrimentally affect the distribution, abundance or 
productivity or species, or populations of species of fauna and flora;
    (6) May further jeopardize endangered or threatened species or 
populations of such species;
    (7) May degrade, or pose substantial risk to, areas of biological, 
scientific, historic, aesthetic or wilderness significance;
    (8) Has highly uncertain environmental effects, or involves unique 
or unknown environmental risks; or
    (9) Together with other actions, the effects of any one of which is 
individually insignificant, may have at least minor or transitory 
cumulative environmental effects.
    (b) Prior assessments. Notwithstanding the provisions of 
Sec. 641.16(a), if (1) An environmental document (including a generic or 
programmatic CEE) or its equivalent has been prepared for a particular 
type of action; (2) That document includes an analysis of potential 
environmental effects that are directly relevant to the potential 
effects of the proposed action, taking in account factors such as the 
similarity of the actions and of the locations within which they take 
place; and (3) There are no potential site specific or other impacts 
that would require further evaluation, then a new environmental document 
need not be prepared. Instead, the responsible official shall prepare an 
Environmental Action Memorandum for the proposed action, cross-
referencing the previously prepared environmental document.
    (c) Exclusions. NSF has determined that the following actions will 
have less than a minor or transitory impact on the Antarctic 
environment, and are not subject to the procedures set forth in this 
part, except to the extent provided herein:
    (1) Scientific research activities involving:
    (i) Low volume collection of biological or geologic specimens, 
provided no more mammals or birds are taken than can normally be 
replaced by natural reproduction in the following season;
    (ii) Small-scale detonation of explosives in connection with seismic 
research conducted in the continental interior or Antarctica where there 
will be no potential for impact on native flora and fauna;
    (iii) Use of weather/research balloons, research rockets, and 
automatic weather stations that are to be retrieved; and
    (iv) Use of radioisotopes, provided such use complies with 
applicable laws and regulations, and with NSF procedures for handling 
and disposing of radioisotopes.
    (2) Interior remodelling and renovation of existing facilities.

Notwithstanding the foregoing, if information developed during the 
planning of any of the actions described in this paragraph (c) indicates 
the possibility that the action may have at least a minor or transitory 
impact on the Antarctic environment, the environmental effects of the 
action shall be reviewed to determine the need for the preparation of an 
environmental document.
    (d) Coordination with other committees, offices and federal 
agencies. The responsible official shall notify NSF's Committee of 
Environmental Matters when he intends to prepare an environmental 
document, and will coordinate preparation of the document with those 
entities. Responsibility for preparation of the environmental document 
rests primarily with the responsible official, but, as soon as is 
feasible, he should consult with and encourage the participation of 
other knowledgeable individuals within NSF, and, where appropriate, with 
other individuals, government agencies and entities with relevant 
knowledge and expertise.
    (e) Type of environmental document. The type of environmental 
document required under this part depends on the

[[Page 171]]

nature of the proposed action under consideration. An IEE must be 
prepared for proposed actions which the responsible official concludes 
may have at least a minor or transitory impact on the Antarctic 
environment and for which a CEE is not prepared. A CEE must be prepared 
if an IEE indicates, or if it is otherwise determined, that a proposed 
action is likely to have more than a minor or transitory impact on the 
Antarctic environment.
    (f) Obligation of funds. Because of logistic constraints (i.e., 
constraints due to transportation difficulties, inaccessibility of 
Antarctic bases for much of the year, and the need to obtain items or 
materials requiring long lead times), it may not be possible to complete 
the environmental review of a proposed action before funds must be 
committed and/or disbursed. In such cases, funds for the proposed action 
may be committed and/or disbursed, provided:
    (1) The appropriate environmental review is completed before 
implementation of the proposed action in Antarctica, and
    (2) Implementation plans for the proposed action will be modified or 
canceled, if appropriate, in light of the completed environmental review 
(including public comments, if applicable).

[57 FR 40339, Sept. 3, 1992, as amended at 59 FR 37438, July 22, 1994]



Sec. 641.17  Initial environmental evaluation.

    (a) Contents. An IEE shall contain sufficient detail to assess 
whether a proposed action may have more than a minor or transitory 
impact on the Antarctic environment, and shall include the following 
information:
    (1) A description of the proposed action, including its purpose, 
location, duration and intensity; and
    (2) Consideration of alternatives to the proposed action and any 
impacts that the proposed action may have on the Antarctic environment, 
including cumulative impacts in light of existing and known planned 
actions and existing information on such actions.
    (b) Further environmental review. If an IEE indicates that a 
proposed action is likely to have no more than a minor or transitory 
impact on the Antarctic environment, no further environmental review of 
the action is necessary provided that appropriate procedures, which may 
include monitoring, are put in place to assess and verify the impact of 
the action.
    (c) Availability to public. An annual list of IEEs and a description 
of any decisions taken in consequence thereof shall be provided to the 
Department of State for circulation to all Parties to the Protocol and 
to organizations or committees established pursuant to the Protocol or 
the Treaty, as required. The Environmental Officer, Division of Polar 
Programs, shall also make the list and copies of final IEEs available to 
the public upon request.



Sec. 641.18  Comprehensive environmental evaluation.

    (a) Scoping. If it is determined that a CEE will be prepared, the 
responsible official shall publish a notice of intent to prepare a CEE 
in the Federal Register, inviting interested persons and government 
agencies to participate in the process of identifying significant issues 
relating to the proposed action and determining the scope of the issues 
to be addressed in the CEE.
    (b) Contents of CEE. A CEE shall be a concise and analytical 
document, prepared in accordance with the range of relevant issues 
identified in the scoping process. It shall contain sufficient 
information to permit informed consideration of the reasonably 
foreseeable potential environmental effects of a proposed action and 
possible alternatives to that proposed action. Such information shall 
include the following:
    (1) A description of the proposed action including its purpose, 
location, duration and intensity;
    (2) A description of the initial base-line environmental state with 
which predicted changes are to be compared, and a prediction of the 
future environmental state in the absence of the proposed action;
    (3) A description of the methods and data used to forecast the 
potential impacts of the proposed action;
    (4) An estimate of the nature, extent, duration and intensity of the 
likely direct potential impacts of the proposed action;

[[Page 172]]

    (5) A consideration of the potential indirect or second order 
impacts from the proposed action;
    (6) A consideration of potential cumulative impacts of the proposed 
action in light of existing activities and other known planned actions 
and available information on those actions;
    (7) A description of possible alternatives to the proposed action, 
including the alternative of not proceeding, and the potential 
consequences of those alternatives, in sufficient detail to allow a 
clear basis for choice among the alternatives and the proposed action;
    (8) Identification of measures, including monitoring, that could be 
employed to minimize, mitigate or prevent potential impacts of the 
proposed action, detect unforeseen impacts, provide early warning of any 
adverse effects, and carry out prompt and effective response to 
accidents;
    (9) Identification of unavoidable potential impacts of the proposed 
action;
    (10) Consideration of the potential effects of the proposed action 
on the conduct of scientific research and on other existing uses and 
values;
    (11) Identification of gaps in knowledge and uncertainties 
encountered in compiling the information required by this paragraph (b);
    (12) A non-technical summary of the information included in the CEE; 
and
    (13) The name and address of the person and/or organization which 
prepared the CEE, and the address to which comments thereon should be 
directed.
    (c) Circulation of draft CEE. A draft of each CEE shall be provided 
to the Department of State for circulation to all Parties to the 
Protocol and to organizations or committees established pursuant to the 
Protocol or Treaty, as required by the Protocol, and shall be made 
publicly available. Notice of such public availability shall be 
published in the Federal Register. All such parties shall have a period 
of not less than ninety (90) days within which to review and comment 
upon the draft CEE.
    (d) Final CEE. A final CEE shall address, and shall include or 
summarize, comments received on the draft CEE. The final CEE, notice of 
any decisions related thereto, and any evaluation of the significance of 
the predicted impacts in relation to the advantages of the proposed 
action shall be provided to the Department of State for circulation to 
all Parties to the Protocol, and shall be available to the public upon 
request, at least sixty (60) days prior to the commencement of the 
proposed activity in Antarctica. Notice of such public availability 
shall be published in the Federal Register.
    (e) Implementation of proposed action. No final decision shall be 
taken to proceed in Antarctica with an action for which a final CEE is 
required until after the earlier of:
    (1) The first Antarctic Treaty Consultative Meeting taking place at 
least one hundred and twenty days after circulation of the draft CEE, or
    (2) Fifteen months following the circulation of the draft CEE.



Sec. 641.19  Modification of environmental documents.

    The responsible official should revise or supplement an 
environmental document if there is a change in a proposed action that 
may have more than a minor or transitory effect on the antarctic 
environment, or if there are new circumstances or information that 
indicate the action may have impacts not anticipated in the original 
environmental document.



Sec. 641.20  Notification of the availability of environmental documents and other information.

    The Environmental Officer, Office of Polar Programs, shall make 
Environmental Action Memoranda, environmental documents and final data 
obtained under Sec. 641.21, available to the public upon request. 
However, notice of such availability need not be given, except as 
specifically provided in this part.

[57 FR 40339, Sept. 3, 1992, as amended at 59 FR 37438, July 22, 1994]



Sec. 641.21  Monitoring.

    Scientific, analytic and/or reporting procedures shall be put in 
place, including appropriate monitoring of key environmental indicators, 
to assess and verify the potential environmental impacts of actions 
which are the subject of a CEE. All proposed actions for which an 
environmental document has

[[Page 173]]

been prepared shall include procedures designed to provide a regular and 
verifiable record of the actual impacts of those actions, in order, 
inter alia, to
    (a) Enable assessments to be made of the extent to which such 
impacts are consistent with the Protocol; and
    (b) Provide information useful for minimizing or mitigating those 
impacts, and, where appropriate, information on the need for suspension, 
cancellation or modification of the action.



Sec. 641.22  Cases of emergency.

    This part shall not apply to actions taken in cases of emergency 
relating to the safety of human life or of ships, aircraft or equipment 
and facilities of high value, or the protection of the environment which 
require an action to be taken without completion of the environmental 
review required by this part. Notice of any such actions which would 
otherwise have required the preparation of a CEE shall be provided 
immediately to the Department of State for circulation to all Parties to 
the Protocol and to committees and organizations established pursuant to 
the Treaty or Protocol, as required. A description of the emergency 
action undertaken shall also be provided to the Department of State for 
appropriate circulation within ninety days of the action.



PART 650--PATENTS--Table of Contents




Sec.
650.1  Scope of part.
650.2  National Science Foundation patent policy.
650.3  Source of authority.
650.4  Standard patent rights clause.
650.5  Special patent provisions.
650.6  Awards not primarily for research.
650.7  Awards affected by international agreements.
650.8  Retention of rights by inventor.
650.9  Unwanted inventions.
650.10  Inventions also supported by another Federal agency.
650.11  Utilization reports.
650.12  Waivers and Approvals.
650.13  Exercise of march-in rights.
650.14  Request for conveyance of title to NSF.
650.15  Appeals.
650.16  Background rights.
650.17  Subcontracts.
650.18  Delegation of authority.

Appendix A to Part 650--Optional Format for Confirmatory License

    Authority: 35 U.S.C. 200-212, 42 U.S.C. 1870(e) and 1871; and the 
Presidential Memorandum entitled ``Government Patent Policy'', issued 
February 18, 1983.

    Source: 57 FR 18053, Apr. 28, 1992, unless otherwise noted.



Sec. 650.1  Scope of part.

    This part contains the policies, procedures, and clauses that govern 
allocation of rights to inventions made in performance of NSF-assisted 
research. It applies to all current and future funding agreements 
entered into by the Foundation that relate to performance of scientific 
or engineering research. As stated in the NSF Acquisition Regulation 
(chapter 25 of title 48 of the Code of Federal Regulations), this part 
applies to contracts as well as to grants and cooperative agreements.



Sec. 650.2  National Science Foundation patent policy.

    As authorized by the National Science Board at its 230th meeting, 
October 15-16, 1981, the Director of the National Science Foundation has 
adopted the following statement of NSF patent policy.
    (a) In accordance with the Bayh-Dole Act and the Presidential 
Memorandum entitled ``Government Patent Policy'' issued February 18, 
1983, the Foundation will use the Patent Rights clause prescribed by the 
Department of Commerce in all its funding agreements for the performance 
of experimental, developmental, or research work, including awards made 
to foreign entities, unless the Foundation determines that some other 
provision would better serve the purposes of that Act or the interests 
of the United States and the general public.
    (b) In funding agreements covered by a treaty or agreement that 
provides that an international organization or foreign government, 
research institute, or inventor will own or share patent rights, the 
Foundation will acquire such patent rights as are necessary to comply 
with the applicable treaty or agreement.
    (c) If an awardee elects not to retain rights to an invention, the 
Foundation will allow the inventor to retain the

[[Page 174]]

principal patent rights unless the awardee, or the inventor's employer 
if other than the awardee, shows that it would be harmed by that action.
    (d) The Foundation will normally allow any patent rights not wanted 
by the awardee or inventor to be dedicated to the public through 
publication in scientific journals or as a statutory invention 
registration. However, if another Federal agency is known to be 
interested in the relevant technology, the Foundation may give it an 
opportunity to review and patent the invention so long as that does not 
inhibit the dissemination of the research results to the scientific 
community.



Sec. 650.3  Source of authority.

    (a) 35 U.S.C. 200-212, commonly called the Bayh-Dole Act, as amended 
by title V of Public Law 98-620 (98 stat. 3335, 3364). That law controls 
the allocation of rights to inventions made by employees of small 
business firms and domestic nonprofit organizations, including 
universities, during federally-supported experimentation, research, or 
development. Government-wide implementing regulations are contained in 
part 401 of title 37 of the Code of Federal Regulations.
    (b) Section 11(e) of the National Science Foundation Act of 1950, as 
amended, (42 U.S.C. 1870(e)) provides that the Foundation shall have the 
authority to do all things necessary to carry out the provisions of this 
Act, including, but without being limited thereto, the authority--to 
acquire by purchase, lease, loan, gift, or condemnation, and to hold and 
dispose of by grant, sale, lease, or loan, real and personal property of 
all kinds necessary for, or resulting from, the exercise of authority 
granted by this Act.
    (c) Section 12 of the NSF Act (42 U.S.C. 1871) provides that each 
contract or other arrangement executed pursuant to this Act which 
relates to scientific research shall contain provisions governing the 
disposition of inventions produced thereunder in a manner calculated to 
protect the public interest and the equities of the individual or 
organization with which the contract or other arrangement is executed.
    (d) The Presidential Memorandum entitled ``Government Patent 
Policy'' issued February 18, 1983, directs Federal agencies, to the 
extent permitted by law, to apply to all research performers the 
policies of the Bayh-Dole Act. Under the provisions of the National 
Science Foundation Act quoted above, the Foundation is permitted to 
apply the Bayh-Dole policies without restriction.



Sec. 650.4  Standard patent rights clause.

    (a) The following Patent Rights clause will be used in every funding 
agreement awarded by the Foundation that relates to scientific or 
engineering research unless a special patent clause has been negotiated 
(see Sec. 650.5).

                       Patent Rights (April, 1992)

    (a) Definitions--(1) Invention means any invention or discovery 
which is or may be patentable or otherwise protectable under title 35 of 
the United States Code, to any novel variety of plant which is or may be 
protected under the Plant Variety Protection Act (7 U.S.C. 2321 et 
seq.).
    (2) Subject invention means any invention of the grantee conceived 
or first actually reduced to practice in the performance of work under 
this grant, provided that in the case of a variety of plant, the date of 
determination (as defined in section 41(d) of the Plant Variety 
Protection Act (7 U.S.C. 2401(d)) must also occur during the period of 
grant performance.
    (3) Practical application means to manufacture in the case of a 
composition or product, to practice in the case of a process or method, 
or to operate in the case of a machine or system; and, in each case, 
under such conditions as to establish that the invention is being 
utilized and that its benefits are to the extent permitted by law or 
Government regulations available to the public on reasonable terms.
    (4) Made when used in relation to any invention means the conception 
or first actual reduction to practice of such invention.
    (5) Small business firm means a domestic small business concern as 
defined at section 2 of Public Law 85-536 (15 U.S.C. 632) and 
implementing regulations of the Administrator of the Small Business 
Administration. For the purpose of this Patents Rights clause, the size 
standard for small business concerns involved in Government procurement 
and subcontracting at 13 CFR 121.3-8 and 13 CFR 121.3-12, respectively, 
will be used.
    (6) Nonprofit organization means a domestic university or other 
institution of higher education or an organization of the type described 
in section 501(c)(3) of the Internal

[[Page 175]]

Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation under 
section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)) or any 
domestic nonprofit scientific or educational organization qualified 
under a State nonprofit organization statute.
    (b) Allocation of Principal Rights. The grantee may retain the 
entire right, title, and interest throughout the world to each subject 
invention subject to the provisions of this Patents Rights clause and 35 
U.S.C. 203. With respect to any subject invention in which the grantee 
retains title, the Federal Government shall have a nonexclusive, 
nontransferable, irrevocable, paid-up license to practice or have 
practiced for or on behalf of the United States the subject invention 
throughout the world. If the award indicates it is subject to an 
identified international agreement or treaty, the National Science 
Foundation (NSF) also has the right to direct the grantee to convey to 
any foreign participant such patent rights to subject inventions as are 
required to comply with that agreement or treaty.
    (c) Invention Disclosure, Election of Title and Filing of Patent 
Applications by Grantee. (1) The grantee will disclose each subject 
invention to NSF within two months after the inventor discloses it in 
writing to grantee personnel responsible for the administration of 
patent matters. The disclosure to NSF shall be in the form of a written 
report and shall identify the grant under which the invention was made 
and the inventor(s). It shall be sufficiently complete in technical 
detail to convey a clear understanding of the nature, purpose, 
operation, and, to the extent known, the physical, chemical, biological 
or electrical characteristics of the invention. The disclosure shall 
also identify any publication, on sale or public use of the invention 
and whether a manuscript describing the invention has been submitted for 
publication and, if so, whether it has been accepted for publication at 
the time of disclosure. In addition, after disclosure to NSF, the 
grantee will promptly notify NSF of the acceptance of any manuscript 
describing the invention for publication or of any on sale or public use 
planned by the grantee.
    (2) The grantee will elect in writing whether or not to retain title 
to any such invention by notifying NSF within two years of disclosure to 
NSF. However, in any case where publication, on sale, or public use has 
initiated the one year statutory period wherein valid patent protection 
can still be obtained in the United States, the period for election of 
title may be shortened by NSF to a date that is no more than 60 days 
prior to the end of the statutory period.
    (3) The grantee will file its initial patent application on an 
invention to which it elects to retain title within one year after 
election of title or, if earlier, prior to the end of any statutory 
period wherein valid patent protection can be obtained in the United 
States after a publication, on sale, or public use. The grantee will 
file patent applications in additional countries or international patent 
offices within either ten months of the corresponding initial patent 
application, or six months from the date when permission is granted by 
the Commissioner of Patents and Trademarks to file foreign patent 
applications when such filing has been prohibited by a Secrecy Order.
    (4) Requests for extension of the time for disclosure to NSF, 
election, and filing under subparagraphs (c) (1), (2), and (3) of this 
clause may, at the discretion of NSF, be granted.
    (d) Conditions When the Government May Obtain Title. The grantee 
will convey to NSF, upon written request, title to any subject 
invention:
    (1) If the grantee fails to disclose or elect the subject invention 
within the times specified in paragraph (c) above, or elects not to 
retain title; provided that NSF may only request title within 60 days 
after learning of the failure of the grantee to disclose or elect within 
the specified times.
    (2) In those countries in which the grantee fails to file patent 
applications within the times specified in paragraph (c) above; 
provided, however, that if the grantee has filed a patent application in 
a country after the times specified in paragraph (c) above, but prior to 
its receipt of the written request of NSF, the grantee shall continue to 
retain title in that country.
    (3) In any country in which the grantee decides not to continue the 
prosecution of any application for, to pay the maintenance fees on, or 
defend in a reexamination or opposition proceeding on, a patent on a 
subject invention.
    (e) Minimum Rights to Grantee. (1) The grantee will retain a 
nonexclusive royalty-free license throughout the world in each subject 
invention to which the Government obtains title, except if the grantee 
fails to disclose the subject invention within the times specified in 
paragraph (c) above. The grantee's license extends to its domestic 
subsidiaries and affiliates, if any, within the corporate structure of 
which the grantee is a party and includes the right to grant sublicenses 
of the same scope to the extent the grantee was legally obligated to do 
so at the time the grant was awarded. The license is transferable only 
with the approval of NSF except when transferred to the successor of 
that part of the grantee's business to which the invention pertains.
    (2) The grantee's domestic license may be revoked or modified by NSF 
to the extent necessary to achieve expeditious practical application of 
the subject invention pursuant to an application for an exclusive 
license submitted in accordance with applicable provisions at 37 CFR 
part 404. This license will

[[Page 176]]

not be revoked in that field of use or the geographical areas in which 
the grantee has achieved practical application and continues to make the 
benefits of the invention reasonably accessible to the public. The 
license in any foreign country may be revoked or modified at the 
discretion of NSF to the extent the grantee, its licensees, or its 
domestic subsidiaries or affiliates have failed to achieve practical 
application in that foreign country.
    (3) Before revocation or modification of the license, NSF will 
furnish the grantee a written notice of its intention to revoke or 
modify the license, and the grantee will be allowed thirty days (or such 
other time as may be authorized by NSF for good cause shown by the 
grantee) after the notice to show cause why the license should not be 
revoked or modified. The grantee has the right to appeal, in accordance 
with applicable regulations in 37 CFR part 404 concerning the licensing 
of Government-owned inventions, any decision concerning the revocation 
or modification of its license.
    (f) Grantee Action to Protect Government's Interest. (1) The grantee 
agrees to execute or to have executed and promptly deliver to NSF all 
instruments necessary to:
    (i) Establish or confirm the rights the Government has throughout 
the world in those subject inventions for which the grantee retains 
title, and
    (ii) Convey title to NSF when requested under paragraph (d) above, 
and to enable the Government to obtain patent protection throughout the 
world in that subject invention.
    (2) The grantee agrees to require, by written agreement, its 
employees, other than clerical and non-technical employees, to disclose 
promptly in writing to personnel identified as responsible for the 
administration of patent matters and in a format suggested by the 
grantee each subject invention made under this grant in order that the 
grantee can comply with the disclosure provisions of paragraph (c) 
above, and to execute all papers necessary to file patent applications 
on subject inventions and to establish the Government's rights in the 
subject inventions. The disclosure format should require, at a minimum, 
the information requested by paragraph (c)(1) above. The grantee shall 
instruct such employees through the employee agreements or other 
suitable educational programs on the importance of reporting inventions 
in sufficient time to permit the filing of patent applications prior to 
U.S. or foreign statutory bars.
    (3) The grantee will notify NSF of any decision not to continue 
prosecution of a patent application, pay maintenance fees, or defend in 
a reexamination or opposition proceeding on a patent, in any country, 
not less than thirty days before the expiration of the response period 
required by the relevant patent office.
    (4) The grantee agrees to include, within the specification of any 
United States patent application and any patent issuing thereon covering 
a subject invention, the following statement: ``This invention was made 
with Government support under (identify the grant) awarded by the 
National Science Foundation. The Government has certain rights in this 
invention.''
    (5) The grantee or its representative will complete, execute, and 
forward to NSF a confirmation of a License to the United States 
Government within two months of filing any domestic or foreign patent 
application.
    (6) The grantee or its representative will forward to NSF a copy of 
any United States patent covering a subject invention within two months 
after it is issued.
    (g) Subcontracts. (1) The grantee will include this Patents Rights 
clause, suitably modified to identify the parties, in all subcontracts, 
regardless of tier, for experimental, developmental, or research work. 
The subcontractor will retain all rights provided for the grantee in 
this Patents Rights clause, and the grantee will not, as part of the 
consideration for awarding the subcontract, obtain rights in the 
subcontractor's subject inventions.
    (2) In the case of subcontracts, at any tier, when the prime award 
by the Foundation was a contract (but not a grant or cooperative 
agreement), NSF, subcontractor, and contractor agree that the mutual 
obligations of the parties created by this Patents Rights clause 
constitute a contract between the subcontractor and the Foundation with 
respect to those matters covered by this Patents Rights clause.
    (h) Reporting on Utilization of Subject Inventions. The grantee 
agrees to submit on request periodic reports no more frequently than 
annually on the utilization of a subject invention or on efforts at 
obtaining such utilization that are being made by the grantee or its 
licensees or assignees. Such reports shall include information regarding 
the status of development, date of first commercial sale or use, gross 
royalties received by the grantee, and such other data and information 
as NSF may reasonably specify. The grantee also agrees to provide 
additional reports in connection with any march-in proceeding undertaken 
by NSF in accordance with paragraph (j) of this Patents Rights clause. 
As required by 35 U.S.C. 202(c)(5), NSF agrees it will not disclose such 
information to persons outside the Government without the permission of 
the grantee.
    (i) Preference for United States Industry. Notwithstanding any other 
provision of this Patents Rights clause, the grantee agrees that neither 
it nor any assignee will grant to any person the exclusive right to use 
or sell

[[Page 177]]

any subject invention in the United States unless such person agrees 
that any products embodying the subject invention or produced through 
the use of the subject invention will be manufactured substantially in 
the United States. However, in individual cases, the requirement for 
such an agreement may be waived by NSF upon a showing by the grantee or 
its assignee that reasonable but unsuccessful efforts have been made to 
grant licenses on similar terms to potential licensees that would be 
likely to manufacture substantially in the United States or that under 
the circumstances domestic manufacture is not commercially feasible.
    (j) March-in Rights. The grantee agrees that with respect to any 
subject invention in which it has acquired title, NSF has the right in 
accordance with procedures at 37 CFR 401.6 and NSF regulations at 45 CFR 
650.13 to require the grantee, an assignee or exclusive licensee of a 
subject invention to grant a nonexclusive, partially exclusive, or 
exclusive license in any field of use to a responsible applicant or 
applicants, upon terms that are reasonable under the circumstances, and 
if the grantee, assignee, or exclusive licensee refuses such a request, 
NSF has the right to grant such a license itself if NSF determines that:
    (1) Such action is necessary because the grantee or assignee has not 
taken, or is not expected to take within a reasonable time, effective 
steps to achieve practical application of the subject invention in such 
field of use;
    (2) Such action is necessary to alleviate health or safety needs 
which are not reasonably satisfied by the grantee, assignee, or their 
licensees;
    (3) Such action is necessary to meet requirements for public use 
specified by Federal regulations and such requirements are not 
reasonably satisfied by the grantee, assignee, or licensee; or
    (4) Such action is necessary because the agreement required by 
paragraph (i) of this Patents Rights clause has not been obtained or 
waived or because a licensee of the exclusive right to use or sell any 
subject invention in the United States is in breach of such agreement.
    (k) Special Provisions for Grants with Nonprofit Organizations. If 
the grantee is a nonprofit organization, it agrees that:
    (1) Rights to a subject invention in the United States may not be 
assigned without the approval of NSF, except where such assignment is 
made to an organization which has as one of its primary functions the 
management of inventions, provided that such assignee will be subject to 
the same provisions as the grantee;
    (2) The grantee will share royalties collected on a subject 
invention with the inventor, including Federal employee co-inventors 
(when NSF deems it appropriate) when the subject invention is assigned 
in accordance with 35 U.S.C. 202(e) and 37 CFR 401.10;
    (3) The balance of any royalties or income earned by the grantee 
with respect to subject inventions, after payment of expenses (including 
payments to inventors) incidental to the administration of subject 
inventions, will be utilized for the support of scientific research or 
education; and
    (4) It will make efforts that are reasonable under the circumstances 
to attract licensees of subject inventions that are small business firms 
and that it will give preference to a small business firm if the grantee 
determines that the small business firm has a plan or proposal for 
marketing the invention which, if executed, is equally likely to bring 
the invention to practical application as any plans or proposals from 
applicants that are not small business firms; provided that the grantee 
is also satisfied that the small business firm has the capability and 
resources to carry out it plan or proposal. The decision whether to give 
a preference in any specific case will be at the discretion of the 
grantee. However, the grantee agrees that the Secretary of Commerce may 
review the grantee's licensing program and decisions regarding small 
business applicants, and the grantee will negotiate changes to its 
licensing policies, procedures, or practices with the Secretary when the 
Secretary's review discloses that the grantee could take reasonable 
steps to implement more effectively the requirements of this paragraph 
(k)(4).
    (l) Communications. All communications required by this Patents 
Rights clause should be sent to: Patent Assistant, Office of the General 
Counsel, National Science Foundation, 4201 Wilson Boulevard, Arlington, 
VA 22230.

    (b) When the above Patent Rights clause is used in a funding 
agreement other than a grant, ``grant'' and ``grantee'' may be replaced 
by ``contract'' and ``contractor'' or other appropriate terms.

(Approved by the Office of Management and Budget under control number 
3145-0084)

[57 FR 18053, Apr. 28, 1992, as amended at 59 FR 37438, July 22, 1994]



Sec. 650.5  Special patent provisions.

    At the request of the prospective awardee or on recommendation from 
NSF staff, a Grants or Contracts Officer, with the concurrence of the 
cognizant Program Manager, may negotiate special patent provisions when 
he or she determines that exceptional circumstances require restriction 
or

[[Page 178]]

elimination of the right of a prospective awardee to retain title to any 
subject invention in order to better promote the policy and objectives 
of chapter 18 of title 35 of the United States Code or the National 
Science Foundation Act. The Grants or Contracts Officer will prepare the 
written determination required by Sec. 401.3(e) of title 37 of the Code 
of Federal Regulations and assure that appropriate reports are made to 
the Secretary of Commerce and Chief Counsel for Advocacy of the Small 
Business Administration as required in Sec. 401.3(f). Unless doing so 
would be inconsistent with an obligation imposed on the Foundation by 
statute, international agreement, or pact with other participants in or 
supporters of the research, every special patent provision will allow 
the awardee, after an invention has been made, to request that it be 
allowed to retain principal rights to that invention under 
Sec. 650.12(e) of this regulation.



Sec. 650.6  Awards not primarily for research.

    (a) Awards not primarily intended to support scientific or 
engineering research need contain no patent provision. Examples of such 
awards are travel and conference grants.
    (b) NSF fellowships and traineeships are primarily intended to 
support education or training, not particular research. Therefore, in 
accordance with section 212 of title 35 of the United States Code, the 
Foundation claims no rights to inventions made by fellows or trainees. 
The following provision will be included in each fellowship or 
traineeship program announcement and made part of the award:

                      Intellectual Property Rights

    The National Science Foundation claims no rights to any inventions 
or writings that might result from its fellowship or traineeship awards. 
However, fellows and trainees should be aware that the NSF, another 
Federal agency, or some private party may acquire such rights through 
other support for particular research. Also, fellows and trainees should 
note their obligation to include an Acknowledgment and Disclaimer in any 
publication.



Sec. 650.7  Awards affected by international agreements.

    (a) Some NSF awards are made as part of international cooperative 
research programs. The agreements or treaties underlying many of these 
programs require an allocation of patent rights different from that 
provided by the Patent Rights clause in Sec. 650.4(a). Therefore, as 
permitted by Sec. 401.5(d) of the implementing regulations for the Bayh-
Dole Act (37 CFR 401.5(d)), paragraph (b) of the standard Patent Rights 
clause in Sec. 650.4(a) has been modified to provide that the Foundation 
may require the grantee to transfer to a foreign government or research 
performer such rights in any subject invention as are contemplated in 
the international agreement. The award instrument will identify the 
applicable agreement or treaty.
    (b) After an invention is disclosed to the Patent Assistant, the 
recipient of an award subject to an international agreement will be 
informed as to what rights, if any, it must transfer to foreign 
participants. Recipients may also ask the Program Manager to provide 
them with copies of the identified international agreements before or 
after accepting an award.



Sec. 650.8  Retention of rights by inventor.

    If an awardee elects not to retain rights to an invention, the 
inventor may request the NSF Patent Assistant for permission to retain 
principal patent rights. Such requests should be made as soon as 
possible after the awardee notifies the Patent Assistant that it does 
not want to patent the invention. Such requests will normally be granted 
unless either the awardee or the employer of the inventor shows that it 
would be harmed by that action. As required by Sec. 401.9 of the 
implementing regulations for the Bayh-Dole Act (37 CFR 401.9), the 
inventor will be subject to the same conditions that the awardee would 
have been, except that the special restrictions imposed on nonprofit 
organizations will not apply to the inventor.



Sec. 650.9  Unwanted inventions.

    (a) The Foundation will normally allow any patent rights not wanted 
by the awardee or inventor to be dedicated

[[Page 179]]

to the public through publication in scientific and engineering journals 
or as a statutory invention registration under section 157 of title 35 
of the United States Code. Except as provided in paragraph (b) of this 
section, the NSF Patent Assistant will acknowledge a negative election 
by encouraging the awardee and inventor to promptly make all research 
results available to the scientific and engineering community.
    (b) If the NSF Patent Assistant believes that another Federal agency 
is interested in the relevant technology, he or she may, after receiving 
the awardee's election not to patent and ascertaining that the inventor 
also does not want to patent, send a copy of the invention disclosure to 
that agency to give it an opportunity to review and patent the 
invention. Unless the agency expresses an interest in the invention 
within thirty days, the Patent Assistant will acknowledge the awardee's 
negative election by encouraging prompt publication of all research 
results. If the agency does express an interest in patenting the 
invention, the Patent Assistant will transfer to it all rights to the 
invention.



Sec. 650.10  Inventions also supported by another Federal Agency.

    Section 401.13(a) of the implementing regulation for the Bayh-Dole 
Act (37 CFR 401.13(a)) provides that in the event that an invention is 
made under funding agreements of more than one federal agency, the 
agencies involved will, at the request of the grantee or contractor or 
on their own initiative, designate one agency to be responsible for the 
administration of the invention. Whenever the NSF Patent Assistant finds 
that another agency also supported an NSF subject invention, he or she 
will consult with the grantee or contractor and appropriate personnel in 
the other agency to determine if a single agency should be designated to 
administer the Government's rights in the invention. The Patent 
Assistant may transfer to, or accept from, any other Federal agency, 
responsibility for administering a jointly-supported invention.



Sec. 650.11  Utilization reports.

    Paragraph (h) of the standard Patent Rights clause set forth in 
Sec. 650.4 obliges grantees ``to submit on request periodic reports no 
more frequently than annually on the utilization of a subject invention 
or on efforts at obtaining such utilization''. At this time, the 
Foundation does not plan to request such reports except in connection 
with march-in investigations conducted under Sec. 650.13. This section 
will be amended to describe periodic reporting requirements if such are 
ever established.

[57 FR 18053, Apr. 28, 1992, as amended at 59 FR 37438, July 22, 1994]



Sec. 650.12  Waivers and approvals.

    (a) Requests for extension of time to disclose to the NSF Patent 
Assistant, make an election to retain title to, or file a patent on a 
subject invention will be granted by the NSF Patent Assistant unless he 
or she determines that such an extension would either imperil the 
securing of valid patent protection or unacceptably restrict the 
publication of the results of the NSF-supported research.
    (b) Approval of assignments by nonprofit organizations (required by 
subparagraph (k)(1) of the Patent Rights clause in Sec. 650.4(a)) will 
be given by the Patent Assistant unless he or she determines that the 
interests of the United States Government will be adversely affected by 
such assignment.
    (c) Approval of long-term exclusive licensing of NSF-assisted 
inventions by nonprofit organizations (restricted by earlier versions of 
the NSF Patents Rights clause and by pre-Bayh-Dole Institutional Patent 
Agreements and waiver conditions) will be given by the Patent Assistant 
unless he or she determines that the interests of the United States 
Government will be adversely affected by such waiver.
    (d) The preference for United States industry imposed by paragraph 
(i) of the Patent Rights clause in Sec. 650.4(a) may be waived by the 
NSF Patent Assistant as provided in that paragraph.
    (e) Special restrictions on or limitation of the right of an awardee 
to retain title to subject inventions imposed under Sec. 650.5 of this 
regulation may be

[[Page 180]]

waived by the Grants or Contracting Officer whenever he or she 
determines, after consultation with the cognizant Program Manager, that 
the reasons for imposing the restrictions or limitations do not require 
their application to a particular invention.
    (f) Requests for approvals and waiver under this section should be 
addressed to the NSF Patent Assistant as provided in paragraph (1) of 
the Patent Rights clause in Sec. 650.4(a). Requests under paragraph (a) 
of this section for extensions of time to disclose, elect, or file may 
be made by telephone or electronic mail as well as in writing. A written 
request for extension of time to disclose, elect, or file can be assumed 
to have been approved unless the Patent Assistant replies negatively 
within ten business days of the date such request was mailed, 
telecopied, or otherwise dispatched. Requests for approvals or waivers 
under paragraphs (b), (c), (d), and (e) of this section must be in 
writing and should explain why an approval or waiver is justified under 
the stated criteria. The requester will be given a written explanation 
of the reasons for denial of a request covered by this section.



Sec. 650.13  Exercise of march-in rights.

    (a) The procedures established by this section supplement those 
prescribed by Sec. 401.6 of the implementing regulation for the Bayh-
Dole Act (37 CFR Sec. 401.6) and apply to all march-in rights held by 
NSF including those resulting from funding agreements not covered by the 
Bayh-Dole Act.
    (b) Petitions requesting that the NSF exercise a march-in right 
should be addressed to the NSF Patent Assistant. Such petitions should:
    (1) Identify the patent or patent application involved and the 
relevant fields of use of the invention;
    (2) State the grounds for the proposed march-in;
    (3) Supply evidence that one or more of the four conditions creating 
a march-in right (lack of practical application, unsatisfied health or 
safety needs, unmet requirements for public use, or failure to prefer 
United States industry) is present; and
    (4) Explain what action by the Foundation is necessary to correct 
that condition.
    (c) If evidence received from a petitioner or from the Foundation's 
administration of the Patent Rights clause indicates that one or more of 
the four conditions creating a march-in right might exist, the NSF 
Patent Assistant will informally review the matter as provided in 
Sec. 401.6(b) of the implementing regulation. If that informal review 
indicates that one or more of the four conditions creating a march-in 
right probably exists, the Patent Assistant will initiate a formal 
march-in proceeding by issuing a written notice to the patent holder. 
That notice will provide all the information required by Sec. 401.6(c) 
of the implementing regulation. The patent holder may submit information 
and argument in opposition to the proposed march-in in person, in 
writing, or through a representative.
    (d) If the NSF Patent Assistant determines that a genuine dispute 
over material facts exists, he or she will identify the disputed facts 
and notify the NSF General Counsel. The General Counsel will create a 
cross-directorate fact-finding panel, which will establish its own fact-
finding procedures within the requirements of Sec. 401.6(e) of the 
implementing regulation based on the dimensions of the particular 
dispute. The Patent Assistant will serve as secretary to the panel, but 
will not take part in its deliberations. Written findings of facts will 
be submitted to the General Counsel, sent by certified mail to the 
patent holder, and made available to all other interested parties.
    (e) The NSF General Counsel will determine whether and how the 
Foundation should exercise a march-in right as provided in Sec. 401.6(g) 
of the implementing regulation.



Sec. 650.14  Request for conveyance of title to NSF.

    (a) The procedures established by this section apply to the exercise 
of the Foundation's right under paragraph (d) of the Patent Rights 
clause in Sec. 650.4(a) to request conveyance of title to a subject 
invention if certain conditions exist.
    (b) The NSF Patent Assistant may request the recipient of an NSF 
award

[[Page 181]]

to convey to the Foundation or a designee title in one or more countries 
to any invention to which the awardee has elected not to retain title. 
The NSF Patent Assistant may request immediate conveyance of title to a 
subject invention if the awardee fails (1) to submit a timely invention 
disclosure, (2) to make a timely election to retain patent rights, or 
(3) to file a timely patent application; but only if he or she 
determines that such action is required to preserve patent rights.
    (c) The NSF Patent Assistant will informally review any apparent 
failure by an awardee to comply with the requirements of paragraph (c) 
of the Patent Rights clause in Sec. 650.4(a). The interested 
institution, the inventor, the patent holder, and any other interested 
party will be given an opportunity to explain why a particular invention 
was not disclosed, why an election was not made, or why a patent 
application was not filed. If the Patent Assistant determines that a 
genuine dispute over material facts exists, a cross-directorate fact-
finding panel will be appointed by the General Counsel. The panel will 
establish its own fact-finding procedures based on the dimensions of the 
particular dispute. Written findings of facts will be submitted to the 
General Counsel, sent by certified mail to the patent holder, and made 
available to all other interested parties.
    (d) The NSF General Counsel will determine whether the Foundation 
should request conveyance of title or if it should retain title obtained 
under Sec. 650.14(b).



Sec. 650.15  Appeals.

    (a) All actions by the NSF Patent Assistant under Sec. 650.8 denying 
an inventor's request to retain rights to a subject invention, under 
Sec. 650.12 denying a request for waiver, or under Sec. 650.14(d) 
denying the existence of a material dispute may be appealed to the 
Director of the NSF Division of Grants and Contracts by an affected 
party within thirty days. A request under Sec. 650.14(b) to immediately 
convey title to the Foundation may be appealed to the DGC Director by 
the title holder within five days.
    (b) All actions by a Grants and Agreements Officer or Contracting 
Officer refusing to eliminate restrictions on or limitation of the right 
of an awardee to retain title to subject inventions imposed under 
Sec. 650.5 of this regulation may be appealed to the Director of the NSF 
Division of Contracts, Policy, and Oversight (CPO) by an affected party 
within thirty days.
    (c) A decision by the General Counsel to exercise a march-in right 
or to request conveyance of title may be appealed by the patent holder 
or any affected licensee to the NSF Deputy Director within thirty days. 
When a march-in was initiated in response to a petition, the General 
Counsel's decision not to exercise a march-in right or to exercise it in 
a manner different from that requested in the petition may be appealed 
by the petitioner to the NSF Deputy Director within thirty days.
    (d) In reviewing the actions of the NSF Patent Assistant, a Grants 
and Agreements Officer, a Contracting Officer, or the General Counsel, 
the CPO Director or NSF Deputy Director will consider both the factual 
and legal basis for the action or determination and its consistency with 
the policies and objectives of the Foundation and, if applicable, the 
Bayh-Dole Act (35 U.S.C. 200-212) and implementing regulations at part 
401 of title 37 of the Code of Federal Regulations.

[57 FR 18053, Apr. 28, 1992, as amended at 61 FR 51022, Sept. 30, 1996]



Sec. 650.16  Background rights.

    The Foundation will acquire rights to a research performer's pre-
existing technology only in exceptional circumstances where, due to the 
nature of the research being supported, the Foundation requires greater 
control over resulting inventions. The NSF Grants or Contracts Officer, 
with concurrence of the cognizant Program Manager, will negotiate a 
background rights provision. If the affected awardee is a small business 
firm or nonprofit organization, the provision will conform to the 
requirements of the Bayh-Dole Act (35 U.S.C. 202(f)) as implemented by 
37 CFR 401.12).



Sec. 650.17  Subcontracts.

    As provided in paragraph (g) of the Patent Rights clause in 
Sec. 650.4(a),

[[Page 182]]

awardees should normally use that clause in all subcontracts. At the 
request of the awardee or subcontractor or on recommendation from NSF 
staff, the cognizant Grants or Contracts Officer may direct the awardee 
to insert into subcontracts relating to scientific research a special 
patent provision negotiated under Sec. 650.5.



Sec. 650.18  Delegation of Authority.

    The General Counsel is responsible for implementing this regulation 
and is authorized to make any exceptions to or extensions of the NSF 
Patent Policy as may be required by particular circumstances. The 
General Counsel will designate the NSF Patent Assistant and that 
individual is authorized to carry out the functions assigned by this 
regulation.

    Appendix A to Part 650--Optional Format for Confirmatory License

    The following format may be used for the confirmatory license to the 
Government required by subparagraph (f)(5) of the Patent Rights clause 
in Sec. 650.4(a). Any equivalent instrument may also be used.

                 License to the United States Government

    This instrument confirms to the United States Government, as 
represented by the National Science Foundation, an irrevocable, 
nonexclusive, nontransferable, royalty-free license to practice or have 
practiced on its behalf throughout the world the following subject 
invention:

(invention title)

(inventor[s] name[s])

(patent application number and filing date)

(country, if other than United States)

(NSF Disclosure No.).

    This subject invention was made with NSF support through:

(grant or contract number)

(grantee or contractor).

    Principal rights to this subject invention have been left with the 
licensor.

Signed:_________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

Date:___________________________________________________________________

    Accepted on behalf of the Government:



                          NSF Patent Assistant

Date:___________________________________________________________________



PART 660--INTERGOVERNMENTAL REVIEW OF THE NATIONAL SCIENCE FOUNDATION PROGRAMS AND ACTIVITIES--Table of Contents




Sec.
660.1  What is the purpose of these regulations?
660.2  What definitions apply to these regulations?
660.3  What programs and activities of the Foundation are subject to 
          these regulations?
660.4  [Reserved]
660.5  What is the Director's obligation with respect to Federal 
          interagency coordination?
660.6  What procedures apply to the selection of programs and activities 
          under these regulations?
660.7  How does the Director communicate with state and local officials 
          concerning the Foundation's programs and activities?
660.8  How does the Director provide states an opportunity to comment on 
          proposed Federal financial assistance and direct Federal 
          development?
660.9  How does the Director receive and respond to comments?
660.10  How does the Director make efforts to accommodate 
          intergovernmental concerns?
660.11  What are the Director's obligations in interstate situations?
660.12  [Reserved]
660.13  May the Director waive any provision of these regulations?

    Authority: E.O. 12372, July 14, 1982 (47 FR 30959), as amended Apr. 
8, 1983 (48 FR 15887); and sec. 401 of the Intergovernmental Cooperation 
Act of 1968 and as amended (31 U.S.C. 6506).

    Source: 48 FR 29365, June 24, 1983, unless otherwise noted.



Sec. 660.1  What is the purpose of these regulations?

    (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovermental Cooperation 
Act of 1968.
    (b) These regulations are intended to foster an intergovermental 
partnership and a strengthened Federalism by relying on state processes 
and on state,

[[Page 183]]

areawide, regional and local coordination for review of proposed Federal 
financial assistance and direct Federal development.
    (c) These regulations are intended to aid the internal management of 
the Foundation, and are not intended to create any right or benefit 
enforceable at law by a party against the Foundation or its officers.



Sec. 660.2  What definitions apply to these regulations?

    Foundation means the National Science Foundation.
    Order means Executive Order 12372, issued July 14, 1982, and amended 
April 8, 1983 and titled ``Intergovernmental Review of Federal 
Programs.''
    Director means the Director of the National Science Foundation or an 
official or employee of the Foundation acting for the Director under a 
delegation of authority.
    State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.



Sec. 660.3  What programs and activities of the Foundation are subject to these regulations?

    The Director publishes in the Federal Register a list of the 
Foundation's programs and activities that are subject to these 
regulations.
Sec. 660.4  [Reserved]



Sec. 660.5  What is the Director's obligation with respect to Federal interagency coordination?

    The Director, to the extent practicable, consults with and seeks 
advice from all other substantially affected Federal departments and 
agencies in an effort to assure full coordination between such agencies 
and the Foundation regarding programs and activities covered under these 
regulations.



Sec. 660.6  What procedures apply to the selection of programs and activities under these regulations?

    (a) A state may select any program or activity published in the 
Federal Register in accordance with Sec. 660.3 of this part for 
intergovernmental review under these regulations. Each state, before 
selecting programs and activities, shall consult with local elected 
officials.
    (b) Each state that adopts a process shall notify the Director of 
the Foundation's programs and activities selected for that process.
    (c) A state may notify the Director of changes in its selections at 
any time. For each change, the state shall submit to the Director an 
assurance that the state has consulted with elected local elected 
officials regarding the change. The Foundation may establish deadlines 
by which states are required to inform the Director of changes in their 
program selections.
    (d) The Director uses a state's process as soon as feasible, 
depending on individual programs and activities, after the Director is 
notified of its selections.



Sec. 660.7  How does the Director communicate with state and local officials concerning the Foundation's programs and activities?

    (a) For those programs and activities covered by a state process 
under Sec. 660.6, the Director, to the extent permitted by law:
    (1) Uses the state process to determine views of state and local 
elected officials; and
    (2) Communicates with state and local elected officials, through the 
state process, as early in a program planning cycle as is reasonably 
feasible to explain specific plans and actions.
    (b) The Director provides notice to directly affected state, 
areawide, regional, and local entities in a state of proposed Federal 
financial assistance or direct Federal development if:
    (1) The state has not adopted a process under the Order; or
    (2) The assistance or development involves a program or activity not 
selected for the state process.

This notice may be made by publication in the Federal Register or other 
appropriate means, which the Foundation in its discretion deems 
appropriate.

[[Page 184]]



Sec. 660.8  How does the Director provide states an opportunity to comment on proposed Federal financial assistance and direct Federal development?

    (a) Except in unusual circumstances, the Director gives state 
processes or directly affected state, areawide, regional and local 
officials and entities:
    (1) At least 30 days from the date established by the Director to 
comment on proposed Federal financial assistance in covered programs 
(i.e., those referenced in Sec. 660.3) in the form of continuation 
awards that are not peer reviewed; and
    (2) At least 60 days from the date established by the Director to 
comment on proposed direct Federal development or Federal financial 
assistance in covered programs (i.e., those referenced Sec. 660.3) other 
than continuation awards that are not peer reviewed.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Foundation have been 
delegated.



Sec. 660.9  How does the Director receive and respond to comments?

    (a) The Director follows the procedures in Sec. 660.10 if:
    (1) A state office or official is designated to act as a single 
point of contact between a state process and all Federal agencies, and
    (2) That office or official transmits a state process recommendation 
for a program selected under Sec. 660.6.
    (b)(1) The single point of contact is not obligated to transmit 
comments from state, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from state, areawide, regional, and local 
officials and entities that differ from it must also be transmitted.
    (c) If a state has not established a process, or is unable to submit 
a state process recommendation, state, areawide, regional and local 
officials and entities may submit comments either to the applicant or to 
the Foundation.
    (d) If a program or activity is not selected for a state process, 
state, areawide, regional and local officials and entities may submit 
comments either to the applicant or to the Foundation. In addition, if a 
state process recommendation for a nonselected program or activity is 
transmitted to the Foundation by the single point of contact, the 
Director follows the procedures of Sec. 660.10 of this part.
    (e) The Director considers comments which do not constitute a state 
process recommendation submitted under these regulations and for which 
the Director is not required to apply the procedures of Sec. 660.10 of 
this part, when such comments are provided by a single point of contact, 
by the applicant, or directly to the Foundation by a commenting party.



Sec. 660.10  How does the Director make efforts to accommodate intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
the Foundation through its single point of contact, the Director either:
    (1) Accepts the recommendation;
    (2) Reaches a mutually agreeable solution with the state process; or
    (3) Provides the single point of contact with a written explanation 
of the decision in such form as the Director in his or her discretion 
deems appropriate. The Director may also supplement the written 
explanation by providing the explanation to the single point of contact 
by telephone, other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section, the 
Director informs the single point of contact that:
    (1) The Foundation will not implement its decision for at least ten 
days after the single point of contact receives the explanation; or
    (2) The Director has reviewed the decision and determined that, 
because of unusual circumstances, the waiting period of at least ten 
days is not feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1) of this section, a single point of contact is presumed to have 
received written notification 5 days after the date of mailing of such 
notification.

[[Page 185]]



Sec. 660.11  What are the Director's obligations in interstate situations?

    (a) The Director is responsible for:
    (1) Identifying proposed Federal financial assistance and direct 
Federal development that have an impact on interstate areas;
    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select the Foundation's program or 
activity.
    (3) Making efforts to identify and notify the affected state, 
areawide, regional, and local officials and entities in those states 
that have not adopted a process under the Order or do not select the 
Foundation's program or activity;
    (4) Responding pursuant to Sec. 660.10 of this part if the Director 
receives a recommendation from a designated areawide agency transmitted 
by a single point of contact, in cases in which the review, 
coordination, and communication with the Foundation have been delegated.
    (b) The Director uses the procedures in Sec. 660.10 if a state 
process provides a state process recommendation to the Foundation 
through a single point of contact.
Sec. 660.12  [Reserved]



Sec. 660.13  May the Director waive any provision of these regulations?

    In an emergency, the Director may waive any provision of these 
regulations.



PART 670--CONSERVATION OF ANTARCTIC ANIMALS AND PLANTS--Table of Contents




                         Subpart A--Introduction

Sec.
670.1  Purpose of regulations.
670.2  Scope.
670.3  Definitions.

                 Subpart B--Prohibited Acts, Exceptions

670.4  Prohibited acts.
670.5  Exceptions in extraordinary circumstances.
670.6  Prior possession exception.
670.7  Food exception.
670.8  Foreign permit exceptions.

                           Subpart C--Permits

670.9  Applications for permits.
670.10  General issuance criteria.
670.11  Permit administration.
670.12  Conditions of permits.
670.13  Modification, suspension, and revocation.
670.14  [Reserved]

               Subpart D--Native Mammals and Native Birds

670.15  Specific issuance criteria.
670.16  Contents of permit applications.
670.17  Designation of native mammals.
670.18  Designation of native birds.
670.19  [Reserved]

       Subpart E--Specially Protected Species of Mammals and Birds

670.20  Specific issuance criteria.
670.21  Content of permit applications.
670.22  Designation of specially protected species of mammals and birds.
670.23  [Reserved]

                        Subpart F--Native Plants

670.24  Specific issuance criteria.
670.25  Content of permit applications.
670.26  Designation of native plants.
670.27  [Reserved]

                  Subpart G--Specially Protected Areas

670.28  Specific issuance criteria.
670.29  Content of permit applications.
670.30  Designation of specially protected areas.
670.31  [Reserved]

             Subpart H--Sites of Special Scientific Interest

670.32  Specific issuance criteria.
670.33  Content of permit applications.
670.34  Designation of sites of special scientific interest and 
          management plans for those sites.
670.35  [Reserved]

        Subpart I--Import Into and Export From the United States

670.36  Specific issuance criteria for imports.
670.37  Specific issuance criteria for exports.
670.38  Contents of permit applications.
670.39  Entry and exit ports.
670.40  [Reserved]

      Subpart J--Introduction of Non-Indigenous Plants and Animals

670.41  Specific issuance criteria.
670.42  Content of permit applications.
670.43  Conditions of permits.
670.44  [Reserved]

    Authority: 16 U.S.C. 2405, as amended.


[[Page 186]]


     Source: 44 FR 32699, June 7, 1979, unless otherwise noted.



                         Subpart A--Introduction



Sec. 670.1  Purpose of regulations.

    The purpose of these regulations is to conserve and protect the 
native mammals, native birds and native plants of Antarctica and the 
ecosystem upon which they depend and to implement the Antarctic 
Conservation Act of 1978, Public Law 95-541.



Sec. 670.2  Scope.

    These regulations apply to:
    (a) Taking any mammal or bird native to Antarctica,
    (b) Collecting any plant native to Antarctica in a specially 
protected area,
    (c) Entering any specially protected area or site of special 
scientific interest,
    (d) Importing into or exporting from the United States any mammal or 
bird native to Antarctica or any plant collected in a specially 
protected area, and
    (e) Introducing into Antarctica any non-indigenous plant or animal.



Sec. 670.3  Definitions.

    In this part:
    Act means the Antarctic Conservation Act of 1978, Public Law 95-541, 
92 Stat. 2048 (16 U.S.C. 2401 et. seq.)
    Agreed Measures means the Agreed Measures for Conservation of 
Antarctic Fauna and Flora, as recommended for approval at the Third 
Antarctic Treaty Consultative Meeting, and as amended in accord with 
Article IX (1) of the Treaty.
    Antarctica means the area south of 60 degrees south latitude.
    Collect means to cut, sever, or move any native plant, or to attempt 
to engage in any such action.
    Director means the Director of the National Science Foundation, or 
an officer or employee of the Foundation designated by the Director.
    Foreign person means any individual who is a citizen or national of 
a foreign nation; any corporation, partnership, trust, association or 
other legal entity existing or organized under the laws of a foreign 
nation; any department, agency, or other instrumentality of any foreign 
nation and any office, employee, or agent of any such instrumentality.
    Management plan means the restrictions applicable to activities in 
Sites of Special Scientific Interest.
    Native bird means a member of any species of the class Aves, which 
is indigenous to Antarctica or occurs there through natural agencies of 
dispersal that is designated in subpart D of this part. It includes any 
part, product, egg, or offspring of or the dead body or parts thereof 
excluding fossils.
    Native mammal means a member of any species of the class Mammalia, 
except species regulated by the International Whaling Commission, which 
is indigenous to Antarctica or occurs there through natural agencies of 
dispersal that is designated in subpart D of this part. It includes any 
part, product, egg, or offspirng of or the dead body or parts excluding 
fossils.
    Native plant means any kind of vegetation at any stage of its life 
cycle indigenous to Antarctica or occurring there through natural 
agencies of dispersal, including seeds but excluding fossils, that is 
designated in subpart F of this part.
    Site of Special Scientific Interest means an area of unique value 
for scientific investigation designated in subpart H of this part as 
needing protection from interference.
    Specially Protected Area means an area of outstanding scientific or 
ecological interest designated in subpart C of this part.
    Specially Protected Species means any species of native mammal or 
native bird that is approved by the United States for special protection 
under the Agreed Measures and is designated in subpart E of this part.
    Take means to remove, harass, molest, harm, pursue, hunt, shoot, 
wound, kill, trap, capture, restrain, or tag any native mammal or native 
bird, or to attempt to engage in such conduct.
    Treaty means the Antarctic Treaty signed in Washington, D.C., on 
December 1, 1959.
    United States means the several States of the Union, the District of 
Columbia, the Commonwealth of Puerto

[[Page 187]]

Rico, American Samoa, the Virgin Islands, Guam, and the Trust Terrritory 
of the Pacific Islands, including the Government of the Northern Mariana 
Islands.
    United States citizen means any individual who is a citizen or 
national of the United States; any corporation, partnership, trust, 
association, or other legal entity existing or organized under the laws 
of any of the United States; any department, agency, or other 
instrumentality of the Federal Government or of any State; and any 
officer, employee, or agent of any such entity or instrumentality.



                 Subpart B--Prohibited Acts, Exceptions



Sec. 670.4  Prohibited acts.

    Unless a permit has been issued pursuant to subpart C of this part 
or unless one of the exceptions stated in Secs. 670.5 through 670.8 is 
applicable, it is unlawful to commit, attempt to commit, or cause to be 
committed any of the acts described in paragraphs (a) through (h) of 
this section.
    (a) Taking any native mammal or native bird. It is unlawful for any 
United States citizen to take within Antarctica any native mammal or 
native bird.
    (b) Collecting native plants. It is unlawful for any United States 
citizen to collect a native plant in a specially protected area.
    (c) Entry into designated area. It is unlawful for any United States 
citizen to enter any specially protected area or to enter sites of 
special scientific interest, except sites of special scientific interest 
for which the management plans described in Sec. 670.34 state that no 
permit is required.
    (d) Possession and transfer of native mammals, plants or birds. It 
is unlawful for any United States citizen wherever located or any 
foreign person while within the United States to possess, sell, offer 
for sale, deliver, receive, carry, transport, or ship by any means 
whatever any native plant collected in a specially protected area, or 
any native mammal or native bird taken in Antarctica.
    (e) Import into or export from the United States. It is unlawful for 
any United States citizen wherever located or any foreign person while 
within the United States to import into the United States or export from 
the United States any native mammal or native bird or any native plant 
collected in a specially protected area.
    (f) Introduction of non-indigenous animals and plants into 
Antarctica. It is unlawful for any United States citizen to introduce 
into Antarctica any animal or plant that is not indigenous to Antarctica 
as specified in subpart J of this part, except as provided in 
Secs. 670.7 and 670.8.
    (g) Violation of regulations. It is unlawful for any United States 
citizen wherever located or any foreign person while within the United 
States to violate the regulations set forth in this part.
    (h) Violation of permit conditions. It is unlawful for any permit 
holder, whether or not a United States citizen, to violate any term or 
condition of any permit issued under subpart C of this part.

[44 FR 32699, June 7, 1979, as amended at 59 FR 42519, Aug. 18, 1994]



Sec. 670.5  Exceptions in extraordinary circumstances.

    (a) Human life. No act described in Sec. 670.4 shall be unlawful if 
committed under emergency circumstances to prevent the loss of human 
life.
    (b) Aiding or salvaging native mammals or native birds. The 
prohibition on taking shall not apply to taking native mammals or native 
birds if such action is necessary to:
    (1) Aid a sick, injured, or orphaned specimen;
    (2) Dispose of a dead specimen; or
    (3) Salvage a dead specimen which may be useful for scientific 
study.
    (c) Reporting. Any actions taken under the exceptions in this 
section shall be reported promptly to the Director.



Sec. 670.6  Prior possession exception.

    (a) Exception. Section 670.4 shall not apply to (1) any native 
mammal, bird or plant which is held in captivity on or before October 
28, 1978, or (2) any offspring of any such mammal, bird, or plant.
    (b) Presumption. With respect to any prohibited act set forth in 
Sec. 670.4 which

[[Page 188]]

occurs after April 29, 1979, the Act creates a rebuttable presumption 
that the native mammal, native bird, or native plant involved in such 
act was not held in captivity on or before October 28, 1978, or was not 
an off-spring referred to in paragraph (a) of this section.



Sec. 670.7  Food exception.

    Paragraph (f) of Sec. 670.4 shall not apply to the introduction of 
animals and plants into Antarctica for use as food so long as animals 
and plants used for this purpose are kept under controlled conditions. 
This exception shall not apply to living non-indigenous species of 
birds.



Sec. 670.8  Foreign permit exceptions.

    Paragraphs (d) and (f) of Sec. 670.4 shall not apply to 
transporting, carrying, receiving, or possessing native mammals, native 
plants, or native birds or to the introduction into Antarctica of non-
indigenous animals and plants when conducted by an agency of the U.S. 
Government on behalf of a foreign national operating under a permit 
issued by a foreign government to give effect to the Agreed Measures.



                           Subpart C--Permits



Sec. 670.9  Applications for permits.

    (a) General content of permit applications. All applications for a 
permit shall be dated and signed by the applicant and shall contain the 
following information:
    (1) The name and address of the applicant;
    (i) Where the applicant is an individual, the business or 
institutional affiliation the applicant; and
    (ii) Where the applicant is a corporation, firm, partnership, 
institution, or agency, either private or public, the name and address 
of its president or principal officer.
    (2) The scientific names and the numbers of native plants to be 
collected in a specially protected area; or the scientific names and the 
numbers of native mammals or native birds to be taken;
    (3) A description of the native mammals, native birds, or native 
plants to be taken or collected, including as appropriate the age, size, 
sex, and condition, e.g., whether pregnant or nursing;
    (4) A complete description of the location, time period, and manner 
of taking or collecting, including the proposed access to the location;
    (5) Whether the native mammals, birds, or plants, or parts of them 
are to be imported into the United States, and if so, their ultimate 
disposition;
    (6) Where the application is for the introduction of non-indigenous 
plants and animals, the scientific name and the number to be introduced;
    (7) Whether agents as referred to in Sec. 670.12 will be used; and
    (8) The desired effective date of the permit.
    (b) Content of specific permit applications. In addition to the 
general information required for permit applications set forth in this 
subpart, the applicant must submit additional information relating to 
the specific action for which the permit is being sought. These 
additional requirements are set forth in the sections of this part 
dealing with the subject matter of the permit applications as follows:

    Native Mammals and Native Birds--Sec. 670.16.
    Specially Protected Species--Sec. 670.21.
    Native Plants--Sec. 670.25.
    Specially Protected Areas--Sec. 670.29.
    Sites of Special Scientific Interest--Sec. 670.33.
    Import into or Export from the U.S.--Sec. 670.38.
    Introduction on Non-Indigenous Plants and Animals--Sec. 670.42.

    (c) Certification. Applications for permits shall include the 
following certification:

    I certify that the information submitted in this application for a 
permit is complete and accurate to the best of my knowledge and belief. 
Any false statement will subject me to the criminal penalties of 18 
U.S.C. 1001.

    (d) Address to which applications should be sent. Each application 
shall be in writing, addressed to:

    Permit Office, Division of Polar Programs, National Science 
Foundation, Washington, DC 20550.

    (e) Sufficiency of application. The sufficiency of the application 
shall be determined by the Director. The Director

[[Page 189]]

may waive any requirement for information, or require such additional 
information as determined to be relevant to the processing of the 
application.
    (f) Withdrawal. An applicant may withdraw the application at any 
time.
    (g) Publication of permit applications. The Director shall publish 
notice in the Federal Register of each application for a permit. The 
notice shall invite the submission by interested parties, within 30 days 
after the date of publication of the notice, of written data, comments, 
or views with respect to the application. Information received by the 
Director as a part of any application shall be available to the public 
as a matter of public record.

(Approved by the Office of Management of Budget under control number 
3145-0034)

[44 FR 32699, June 7, 1979, as amended at 49 FR 37598, Sept. 25, 1984]



Sec. 670.10  General issuance criteria.

    Upon receipt of a complete and properly-executed application for a 
permit and the expiration of the applicable public comment period, the 
Director will decide whether to issue the permit. In making this 
decision, the Director will consider, in addition to the specific 
criteria set forth in the appropriate subparts of this part:
    (a) Whether the authorization requested meets the objectives of the 
Act and the requirements of these regulations;
    (b) The judgment of persons having expertise in matters germane to 
the application; and
    (c) Whether the applicant has failed to disclose material 
information required or has made false statements about any material 
fact in connection with his application.



Sec. 670.11  Permit administration.

    (a) Issuance of permits. The Director may approve an application in 
whole or in part. Permits shall be issued in writing and be signed by 
the Director. Each permit may contain such terms and conditions as are 
consistent with the Act and this part.
    (b) Denial. The applicant shall be notified in writing of the denial 
of any permit request or part of a request, and the reason for such 
denial. If authorized in the notice of denial, the applicant may submit 
further information, or reasons why the permit should not be denied. 
Such further submissions shall not be considered a new application.
    (c) Amendment of applications or permits. An applicant or permit 
holder desiring to have any term or condition of his application or 
permit modified must submit full justification and supporting 
information in conformance with the provisions of this subpart and the 
subpart governing the activities sought to be carried out under the 
modified permit. Any application for modification of a permit that 
involves a material change beyond the terms originally requested will 
normally be subject to the same procedures as a new application.
    (d) Notice of issuance or denial. Within 10 days after the date of 
the issuance or denial of a permit, the Director shall publish notice of 
the issuance or denial in the Federal Register. 
    (e) Agents of the permit holder. The Director may authorize the 
permit holder to designate agents to act on behalf of the permit holder.
    (f) Marine mammals, endangered species and migratory birds. If the 
Director receives a permit application involving any native mammal which 
is a marine mammal as defined by the Marine Mammal Protection Act of 
1972 (16 U.S.C. 1362(5)), any species which is an endangered or 
threatened species under the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.), or any native bird which is protected under the Migratory 
Bird Treaty Act (16 U.S.C. 701 et seq.), the Director shall submit a 
copy of the application to the Secretary of Commerce or to the Secretary 
of the Interior, as appropriate. If the appropriate Secretary determines 
that a permit should not be issued pursuant to any of the cited acts, 
the Director shall not issue a permit. The Director shall inform the 
applicant of any denial by the appropriate secretary and no further 
action will be taken on the application. If, however, the appropriate 
Secretary issues a permit pursuant to the requirements of the cited 
acts, the Director still must determine whether the proposed action is 
consistent with the Act and these regulations.

[[Page 190]]



Sec. 670.12  Conditions of permits.

    (a) Possession of permits. Permits issued under these regulations, 
or copies of them, must be in the possession of persons to whom they are 
issued and their agents when conducting the authorized action.
    (b) Display of permits. Any permit issued shall be displayed for 
inspection upon request to the Director, designated agents of the 
Director, or any person with enforcement responsibilities.
    (c) Filing of reports. Permit holders may be required to file 
reports of the activities conducted under a permit. Reports shall be 
submitted to the Director not later than June 30 for the preceding 12 
months.



Sec. 670.13  Modification, suspension, and revocation.

    (a) The Director may modify, suspend, or revoke, in whole or in 
part, any permit issued under this section:
    (1) In order to make the permit consistent with any change to any 
regulation in this part made after the date of issuance of the permit;
    (2) If there is any change in conditions which makes the permit 
inconsistent with the purpose of the Act and these regulations; or
    (3) In any case in which there has been any violation of any term or 
condition of the permit, any regulation in this part, or any provision 
of the Act.
    (b) Whenever the Director proposes any modifications, suspension, or 
revocation of a permit under this subsection, the permittee shall be 
afforded opportunity, after due notice, for a hearing by the Director 
with respect to such proposed modification, suspension, or revocation. 
If a hearing is requested, the action proposed by the Director shall not 
take effect before a decision is issued by him after the hearing, unless 
the proposed action is taken by the Director to meet an emergency 
situation.
    (c) Notice of the modification, suspension, or revocation of any 
permit by the Director shall be published in the Federal Register within 
10 days from the date of the Director's decision.
Sec. 670.14  [Reserved]



               Subpart D--Native Mammals and Native Birds



Sec. 670.15  Specific issuance criteria.

    With the exception of specially protected species of mammals and 
birds designated in subpart E of this part, permits to take a mammal or 
bird in Antarctica designated as a native mammal in Sec. 670.17 or as a 
native bird in Sec. 670.18 may be issued:
    (a) Only for the purpose of providing--(1) Specimens for scientific 
study or scientific information, or
    (2) Specimens for museums, zoological gardens, or other educational 
or cultural institutions or uses;
    (b) Shall ensure, as far as possible, that--(1) No more native 
mammals or native birds are taken in any year than can normally be 
replaced by natural reproduction in the following breeding season, and
    (2) The variety of species and the balance of the natural ecological 
systems within Antarctica are maintained; and
    (3) The authorized taking, transporting, carrying, or shipping of 
any native mammal or native bird is carried out in a humane manner.



Sec. 670.16  Contents of permit applications.

    In addition to the information required in subpart C of this part, 
an applicant seeking a permit to take a native mammal or native bird 
shall include a complete description of the project including the 
purpose of the proposed taking, the use to be made of the native mammals 
or native birds, and the ultimate disposition of the native mammals or 
native birds. Sufficient information must be provided to establish that 
the taking, transporting, carrying, or shipping will be humane.



Sec. 670.17  Designation of native mammals.

    The following are designated native mammals:

Dolphin:
    Hourglass--Lagenorhynchus cruciger.
Seal:
    Crabeater--Lobodon carcinophagus.
    Elephant--Mirounga leonina.
    Kerguelen Fur--Arctocephalus gazella.\1\

[[Page 191]]

    Leopard--Hydrurga leptonyx.
    Ross--Ommatophoca rossi.\1\
    Weddell--Leptonychotes weddelli.
Whale:
    Arnoux's Beaked--Berardius arnuxii.
    Killer--Orcinus orca.
    Long-finned Pilot--Globicephala melaena.
    Southern Bottlenose--Hyperoodon planifrons.
    \1\ These species of mammals have been designated as specially 
protected species and are subject to subpart E of this part.



Sec. 670.18  Designation of native birds.

    The following are designated native birds:

Albatross:
    Black-browed--Diomedea melanophris.
    Gray-headed--Diomedea chrysostoma.
    Light-mantled Sooty--Phoebetria palpebrata.
    Wandering--Diomedea exulans.
Fulmer:
    Northern Giant--Macronectes halli.
    Southern--Fulmarus glacialoides.
    Southern Giant--Macronectes giganteus.
Gull:
    Southern Black-backed--Larus dominicanus.
Jaeger:
    Parasitic--Stercorarius parasiticus.
    Pomarine--Stercorarius pomarinus.
Penguin:
    Adelie--Pygoscelis adeliae.
    Chinstrap--Pygoscelis antarctica.
    Emperor--Aptenodytes forsteri.
    Gentoo--Pygoscelis papua.
    King--Aptenodytes patagonicus.
    Macaroni--Eudyptes chrysolophus.
    Rockhopper--Eudyptes crestatus.
Petrel:
    Antarctic--Thalassoica antarctica.
    Black-bellied Storm--Fregetta tropica.
    Blue--Halobaena caerulea.
    Gray--Procellaria cinerea.
    Great-winged--Pterodroma macroptera.
    Kerguelen--Pterodroma brevirostris.
     Mottled--Pterodroma inexpectata.
    Snow--Pagodroma nivea.
    Soft-plumaged--Pterodroma mollis.
    South-Georgia Diving--Pelecanoides georgicus.
    White-bellied Storm--Fregetta grallaria.
    White-chinned--Procellaria aequinoctialis.
    White-headed--Pterodroma lessoni.
    Wilson's Storm--Oceanites oceanicus.
Pigeon:
    Cape--Daption capense.
Pintail:
    South American Yellow-billed--Anas georgica spinicauda.
Prion:
    Antarctic--Pachyptila desolata.
    Narrow-billed--Pachyptila belcheri.
Shag:
    Blue-eyed--Phalacrocorax atriceps.
Shearwater:
    Sooty--Puffinus griseus.
Skua:
    Brown--Catharacta lonnbergi.
    South Polar--Catharacta maccormicki.
Swallow:
    Barn--Hirundo rustica.
Sheathbill:
    American--Chionis alba.
Tern:
    Antarctic--Sterna vittata.
    Arctic--Sterna paradisaea.
Sec. 670.19  [Reserved]



       Subpart E--Specially Protected Species of Mammals and Birds



Sec. 670.20  Specific issuance criteria.

    Permits authorizing the taking of mammals or birds designated as a 
specially protected species of mammals and birds in Sec. 670.22 may only 
be issued if:
    (a) There is a compelling scientific purpose for such taking;
    (b) The actions allowed under any such permit will not jeopardize 
the existing natural ecological system, or the survival of that species; 
and
    (c) The authorized taking, transporting, carrying, or shipping of 
any native mammal or native bird is carried out in a humane manner.



Sec. 670.21  Content of permit applications.

    In addition to the information required in subpart C of this part, 
an applicant seeking a permit to take a specially protected species 
shall include the following in the application:
    (a) A detailed scientific justification of the need for taking the 
specially protected species, including a discussion of possible 
alternative species;
    (b) Information demonstrating that the proposed action will not 
jeopardize the existing natural ecological system or the survival of 
that species; and
    (c) Information establishing that the taking, transplanting, 
carrying, or shipping of any native mammal or native bird is carried out 
in a humane manner.

[[Page 192]]



Sec. 670.22  Designation of specially protected species of mammals and birds.

    The Act states that the Director shall designate as a specially 
protected species any native species of mammal or bird which is approved 
by the United States for special protection under the Agreed Measures. 
The following two species have been so approved and are hereby 
designated specially protected species:

                     Common Name and Scientific Name

Kerguelen Fur Seal--Arctocephalus tropicales gazella.
Ross Seal--Ommatophoca rossi.
Sec. 670.23  [Reserved]



                        Supbart F--Native Plants



Sec. 670.24  Specific issuance criteria.

    Permits authorizing the collection of any native plant designated in 
Sec. 670.26 from a specially protected area designated in Sec. 670.30 
may be issued only if
    (a) There is a compelling scientific purpose for such collection 
which cannot be served elsewhere, and
    (b) The actions allowed under any such permit will not jeopardize 
the natural ecological system existing in that area.



Sec. 670.25  Content of permit applications.

    In addition to the information required in subpart C of this part, 
an applicant seeking a permit to collect a native plant in a specially 
protected area shall include the following in the application:
    (a) A detailed scientific justification of the need for the 
collection, including a discussion of alternatives; and
    (b) Information demonstrating that the proposed action will not 
jeopardize the unique natural ecological system existing in that area.



Sec. 670.26  Designation of native plants.

    All plants found in Antarctica are designated native plants, 
including:

Fungi--Lichens.
Vascular Plants--Marine algae.
Bryophytes--Freshwater algae.
Sec. 670.27  [Reserved]



                  Subpart G--Specially Protected Areas



Sec. 670.28  Specific issuance criteria.

    Permits authorizing entry into any specially protected area 
designated in Sec. 670.30 of this title may be issued only if
    (a) There is a compelling scientific purpose for such entry which 
cannot be served elsewhere;
    (b) The actions allowed under any such permit will not jeopardize 
the natural ecological system existing in that area; and
    (c) The actions permitted thereunder are in accordance with any 
Management Plan accompanying the description of a Specially Protected 
Area.

No permit shall be issued that allows the operation of any surface 
vehicle in a specially protected area.

[44 FR 32699, June 7, 1979, as amended at 56 FR 49148, Sept. 27, 1991]



Sec. 670.29  Content of permit applications.

    In addition to the information required in subpart C of this part, 
and applicant seeking a permit to enter a specially protected area shall 
include the following in the application.
    (a) A detailed scientific justification of the need for such entry, 
including a discussion of alternatives; and
    (b) Information demonstrating that the proposed action will not 
jeopardize the unique natural ecological system existing in that area.



Sec. 670.30  Designation of specially protected areas.

    The Act states that the Director shall designate as a specially 
protected area, each area identified under the Agreed Measures as 
needing special protection. The following areas have been so identified 
and designated as Specially Protected Areas:

(a) SPA 1, Taylor Rookery, MacRobertson Land
(b) SPA 2, Rookery Islands, Holme Bay
(c) SPA 3, Ardrey Island and Odbert Island, Budd Coast
(d) SPA 4, Sabrina Island, Balleny Islands

[[Page 193]]

(e) SPA 5, Beaufort Island, Ross Sea
(f) SPA 7, Cape Hallett, Victoria Land
(g) SPA 8, Dion Islands, Marguerite Bay, Antarctic Peninsula
(h) SPA 9, Green Island, Berthelot Islands, Antarctic Peninsula
(i) SPA 13, Moe Island, South Orkney Islands
(j) SPA 14, Lynch Island, South Orkney Islands
(k) SPA 15, Southern Powell Island and adjacent islands, South Orkney 
    Islands
(l) SPA 16, Coppermine Peninsula, Robert Island
(m) SPA 17, Litchfield Island, Arthur Harbor, Palmer Archipelago
(n) SPA 18, North Coronation Island, South Orkney Islands
(o) SPA 19, Lagotellerie Island, Marguerite Bay
(p) SPA 20, `New College Valley', Caughley Beach, Cape Bird, Ross Island
(q) SPA 21, Avian Island, North-west Marguerite Bay
(r) SPA 22, Cryptogram Ridge, Mount Melbourne, Victoria Land
(s) SPA 23, Forlidas Pond and Davis Valley Ponds

    Note: Maps specifying these areas in greater detail may be obtained 
from the Director.

[60 FR 46235, Sept. 6, 1995]
Sec. 670.31  [Reserved]



             Subpart H--Sites of Special Scientific Interest



Sec. 670.32  Specific issuance criteria.

    Sites of Special Scientific Interest, designated in Sec. 670.34, are 
sites where scientific investigations are being conducted or are planned 
and there is a demonstrable risk of interference which would jeopardize 
those investigations. Certain of these sites do not require limitations 
on entry to protect their value for scientific investigations. No permit 
is required for entry into these sites but entrants must comply with the 
managment plan. Permits to enter sites for which an entry permit is 
required may be issued only if the proposed entry is consistent with the 
management plan.



Sec. 670.33  Content of permit applications.

    In addition to the information required in subpart C of this part, 
an applicant seeking a permit to enter a site of special scientific 
interest shall include the following in the application:
    (a) The justification for such entry;
    (b) Information demonstrating that the proposed action will not 
jeopardize the unique scientific value of the area; and
    (c) A statement demonstrating the consistency of the proposed action 
with the management plan.



670.34  Designation of sites of special scientific interest and management plans for those sites.

    (a) The Director is required to designate as a site of special 
scientific interest each area approved by the United States in 
accordance with Recommendation VIII-3 of the Eighth Antarctic Treaty 
Consultative Meeting. The Director is also required to prescribe a 
management plan for such sites which is consistent with any management 
plan approved by the United States in accordance with that 
Recommendation. Accordingly, the areas listed below are designated as 
sites of special scientific interest to be managed in accordance with 
the management plan recommended at the applicable consultative meeting 
and any subsequent amendments to that plan. The number of the 
recommendation, including any modifications made at subsequent 
consultative meetings, is included below after each site, as is the site 
number established at the consultative meetings. If there are any 
variations or additional management measures required by the United 
States they shall also be included in the listing below. Any specific 
conditions or limitations included in permits issued under this 
regulation will be consistent with these plans. More detailed maps and 
descriptions of the sites and the complete management plans as 
recommended at the consultative meetings can be obtained from the 
National Science Foundation, Division of Polar Programs, Washington, DC 
20550.
    (b) The sites of special scientific interest are as follows:

[[Page 194]]

    (1) Cape Royds, Ross Island: Site No. 1 as described in 
Recommendation VIII-4 as revised by Recommendations X-6, XII-5 and XIII-
9.
    (2) Arrival Heights, Hut Point Peninsula, Ross Island: Site No. 2 as 
described in Recommendation VIII-4 as revised by Recommendations X-6, 
XII-5, XIII-7 and XIV-4. This site does not require an entry permit.
    (3) Barwick Valley, Victoria Land: Site No. 3 as described in 
Recommendations VIII-4 as revised by Recommendations X-6, XII-5 and 
XIII-7.
    (4) Cape Crozier, Ross Island: Site No. 4 as described in 
Recommendation VIII-4 as revised in Recommendations X-6, XII-5 and XIII-
7.
    (5) Fildes Peninsula, King George Island, South Shetland Islands: 
Site No. 5 as described in Recommendation VIII-4 as revised in 
Recommendations X-6, XII-5 and XIII-7.
    (6) Byers Peninsula, Livingston Island, South Shetland Islands: Site 
No. 6 as described in Recommendation VIII-4 as revised in 
Recommendations X-6, XII-5 and XIII-7.
    (7) Haswell Island: Site No. 7 as described in Recommendation VIII-4 
as revised in Recommendations X-6, XII-5 and XIII-7.
    (8) Western Shore of Admiralty Bay, King George Island: Site No. 8 
as described in Recommendation X-5 as revised in Recommendations XII-5 
and XIII-7.
    (9) Rothera Point, Adelaide Island: Site No. 9 as described in 
Recommendation XIII-8.
    (10) Caughley Beach, Cape Bird, Ross Island: Site No. 10 as 
described in Recommendation XIII-8.
    (11) Tramway Ridge, Mt. Erebus, Ross Island: Site No. 11 as 
described in Recommendation XIII-8.
    (12) Canada Glacier, Lake Fryxell, Taylor Valley, Victoria Land: 
Site No. 12 as described in Recommendation XIII-8.
    (13) Potter Peninsula, King George Island, South Shetland Islands: 
Site No. 13 as described in Recommendation XIII-8.
    (14) Harmony Point, Nelson Island, South Shetland Islands: Site No. 
14 as described in Recommendation XIII-8.
    (15) Cierva Point and nearby islands, Danco Coast, Antarctic 
Peninsula: Site No. 15 as described in Recommendation XIII-8.
    (16) Bailey Peninsula, Budd Coast, Wilkes Land: Site No. 16 as 
described in Recommendation XIII-8.
    (17) Clark Peninsula, Budd Coast, Wilkes Land: Site No. 17 as 
described in Recommendation XIII-8.
    (18) White Island, McMurdo Sound: Site No. 18 as described in 
Recommendation XIII-8.
    (19) Linnaeus Terrace, Asgaard Range, Victoria Land: Site No. 19 as 
described in Recommendation XIII-8.
    (20) Biscoe Point, Anvers Island, Palmer Archipelago: Site No. 20 as 
described in Recommendation XIII-8.
    (21) Shores of Port Foster, Deception Island, South Shetland 
Islands: Site No. 21 as described in Recommendation XIII-8.
    (22) Yukirdori Valley, Langhovde, Lutzow-Holm Bay: Site No. 22 as 
described in Recommendation XIV-5.
    (23) Svarthamaren, Muhlig-Hofmannfjella, Dronning Maud Land: Site 
No. 23 as described in Recommendation XIV-5.
    (24) Summit of Mt. Melbourne, North Victoria Land: Site No. 24 as 
described in Recommendation XIV-5.
    (25) Marine Plain, Mule Peninsula, Vestfold Hills, Princess 
Elizabeth Land: Site No. 25 as described in Recommendation XIV-5.
    (26) Chile Bay (Discovery Bay), Greenwich Island, South Shetland 
Islands: Site No. 26 as described in Recommendation XIV-5.
    (27) Port Foster, Deception Island, South Shetland Islands: Site No. 
27 as described in Recommendation XIV-5.
    (28) South Bay, Doumer Island, Palmer Archipelago: Site No. 28 as 
described in Recommendation XIV-5.
    (29) Ablation Point-Ganymede Heights, Alexander Island: Site No. 29 
as described in Recommendation XV-6.
    (30) Mount Flora, Hope Bay, Antarctic Peninsula: Site No. 31 as 
described in Recommendation XV-6.
    (31) Cape Shirreff, Livingston Island, South Shetland Islands: Site 
No. 32 as described in Recommendation XV-7.
    (32) Ardely Island, Maxwell Bay, King George Island, South Shetland 
Islands: Site number 33 as described in Recommendation XVI-2.

[[Page 195]]

    (33) Lions Rump, King George Island, South Shetland Islands: Site 
number 34 as described in Recommendation XVI-2.
    (34) West Bransfield Strait, off Low Island, South Shetland Islands: 
Site number 35 as described in Recommendation XVI-3.
    (35) East Dallmann Bay, off Brabant Island: Site number 36 as 
described in Recommendation XVI-3.

[54 FR 24710, June 9, 1989, as amended at 56 FR 49148, Sept. 27, 1991; 
59 FR 42519, Aug. 18, 1994; 60 FR 46235, Sept. 6, 1995]
Sec. 670.35  [Reserved]



        Subpart I--Import Into and Export From the United States



Sec. 670.36  Specific issuance criteria for imports.

    Subject to compliance with other applicable law, any person who 
takes a native mammal or native bird or collects a native plant under a 
permit issued under these regulations may import it into the United 
States unless the Director finds that importation would not further the 
purpose for which it was taken or collected. If the importation is for a 
purpose other than that for which the native mammal or native bird was 
taken or the native plant collected, the Director may permit importation 
upon a finding that importation would be consistent with the purposes of 
the Act, these regulations, or the permit under which they were taken or 
collected.



Sec. 670.37  Specific issuance criteria for exports.

    The Director may permit export from the United States of any native 
plant taken from a specially protected area or of any native mammal or 
native bird upon a finding that exportation would be consistent with the 
purposes of the Act, these regulations, or the permit under which they 
were taken or collected.



Sec. 670.38  Contents of permit applications.

    In addition to the information required in subpart C of this part, 
an applicant seeking a permit to import into or export from the United 
States a native plant taken from a specially protected area, a native 
mammal, or a native bird shall include the following in the application:
    (a) Information demonstrating that the import or export would 
further the purposes for which the species was taken or collected; or
    (b) Information demonstrating that the import or export is 
consistent with the purposes of the Act or these regulations; and
    (c) A statement as to which U.S. port will be used for the import or 
export.

The application shall also include information describing the intended 
ultimate disposition of the imported or exported item.



Sec. 670.39  Entry and exit ports.

    Any native plant collected in a specially protected area and any 
native mammal or native bird imported into or exported from the United 
States must enter or leave the United States at ports designated by the 
Secretary of Interior in 50 CFR part 14. The ports presently designated 
are:
    (a) New York, New York,
    (b) Miami, Florida,
    (c) Chicago, Illinois,
    (d) San Francisco, California,
    (e) New Orleans, Louisiana,
    (f) Seattle, Washington,
    (g) Honolulu, Hawaii.

Permits to import or export at non-designated ports may be sought from 
the Secretary of Interior pursuant to subpart C, 50 CFR part 14.
Sec. 670.40  [Reserved]



      Subpart J--Introduction of Non-Indigenous Plants and Animals



Sec. 670.41  Specific issuance criteria.

    For purposes consistent with the Act, only the following plants and 
animals may be considered for a permit allowing their introduction into 
Antarctica:
    (a) Sledge dogs;
    (b) Domestic animals and plants; and
    (c) Laboratory animals and plants including viruses, bacteria, 
yeasts, and fungi.

Living non-indigenous species of birds shall not be introduced into 
Antarctica.

[[Page 196]]



Sec. 670.42  Content of permit applications.

    Applications for the importation of plants and animals into 
Antarctica must describe (a) the need for the plants or animals, (b) how 
the applicant will ensure that the plants or animals will not harmfully 
interfere with the natural system, and (c) how the plants or animals 
will be removed from Antarctica or destroyed after they have served 
their purpose.



Sec. 670.43  Conditions of permits.

    (a) General. All permits allowing the introduction of non-indigenous 
plants and animals will require that the animal or plant be kept under 
controlled conditions to prevent harmful interference with the natural 
system and that after serving its purpose the plant or animal shall be 
removed from Antarctica or destroyed in a manner that protects the 
natural system of Antarctica.
    (b) Dogs. In addition to the requirements of paragraph (a) of this 
section, all dogs imported into Antarctica shall be inoculated against 
the following diseases:
    (1) Distemper;
    (2) Contagious canine hepatitis;
    (3) Rabies; and
    (4) Leptospirosis (L. canicola and L. icterohaemorragicae).

Each dog shall be inoculated at least two months before importation, and 
a certificate of inoculation shall accompany each dog. No dog shall be 
allowed to run free in Antarctica.
Sec. 670.44  [Reserved]



PART 671--WASTE REGULATION--Table of Contents






                         Subpart A--Introduction

Sec.
671.1  Purpose of regulations.
671.2  Scope.
671.3  Definitions.

                 Subpart B--Prohibited Acts, Exceptions

671.4  Prohibited Acts.
671.5  Exceptions.

                           Subpart C--Permits

671.6  Applications for permits.
671.7  General issuance criteria.
671.8  Permit administration.
671.9  Conditions of permit.
671.10  Review, modification, suspension and revocation.

                       Subpart D--Waste Management

671.11  Waste storage.
671.12  Waste disposal.
671.13  Waste management for the USAP.

    Subpart E--Designation of Banned Substances; Reclassification of 
                               Pollutants

671.14  Annual review.
671.15  Publication of preliminary determination.
671.16  Designation and redesignation of pollutants.

                      Subpart F--Cases of Emergency

71.17  Cases of Emergency.

    Authority: 16 U.S.C. 2405.

    Source: 58 FR 34719, June 29, 1993, unless otherwise noted.



                         Subpart A--Introduction



Sec. 671.1  Purpose of regulations.

    The purposes of these regulations in part 671 are to protect the 
Antarctic environment and dependent and associated ecosystems, to 
preserve Antarctica's value as an area for the conduct of scientific 
research, and to implement the Antarctic Conservation Act of 1978, 
Public Law 95-541, consistent with the provisions of the Protocol on 
Environmental Protection to the Antarctic Treaty, signed in Madrid, 
Spain, on October 4, 1991.



Sec. 671.2  Scope.

    These regulations in part 671 apply to any U.S. citizen's use or 
release of a banned substance, designated pollutant or waste in 
Antarctica.

[58 FR 34719, June 29, 1993, as amended at 59 FR 37438, July 22, 1994]



Sec. 671.3  Definitions.

    (a) Definitions. In this part:
    Act means the Antarctic Conservation Act of 1978, Public Law 95-541, 
92 Stat. 2048 (16 U.S.C. 2401 et seq.)
    Antarctic hazardous waste means any waste consisting of or 
containing one or more designated pollutants.
    Antarctica means the area south of 60 degrees south latitude.

[[Page 197]]

    Banned substance means any polychlorinated biphenyls (PCBs), non-
sterile soil, polystyrene beads, plastic chips or similar loose 
polystyrene packing material, pesticides (other than those required for 
scientific, medical or hygiene purposes) or other substance designated 
as such under subpart E of this part.
    Designated pollutant means any substance designated as such by the 
Director pursuant to subpart E of this part; any pesticide, radioactive 
substance, or substance consisting of or containing any chemical listed 
by source, generic or chemical name at 40 CFR 61.01, Table 116.4A of 40 
CFR 116.4; subpart D of 40 CFR part 261, 40 CFR 302.4, part 355, and 
part 372; and any substance which exhibits a hazardous waste 
characteristic as defined in subparts B and C of 40 CFR part 261; but 
shall not include any banned substance.
    Director means the Director of the National Science Foundation, or 
an officer or employee of the Foundation designated by the Director.
    Incinerate or Incineration means the processing of material by 
mechanisms that (1) involve the control of combustion air and/or fuel so 
as to maintain adequate temperature for efficient combustion; (2) 
contain the combustion reaction in an enclosed device with sufficient 
residence time and mixing for complete processing; and (3) control 
emission of gaseous or particulate combustion products.
    Master permit means a permit issued to a federal agency, or its 
agents or contractors, or any other entity, covering activities 
conducted in connection with USAP or other group activities in 
Antarctica.
    NSF or Foundation means the National Science Foundation.
    Open burning means combustion of any material by means other than 
incineration.
    Permit means a permit issued pursuant to subpart C of this part.
    Private permit means any permit other than a master permit.
    Protocol means the Protocol on Environmental Protection to the 
Antarctic Treaty, signed by the United States in Madrid on October 4, 
1991, and any and all Annexes thereto, as amended or supplemented from 
time to time.
    Release means any spilling, leaking, pumping, pouring, emitting, 
emptying, discharging, injecting, leaching, dumping, burying or 
disposing of a substance, whether intentionally or accidentally.
    Station means McMurdo Station, Palmer Station, Amundsen-Scott South 
Pole Station and any other permanent USAP facility in Antarctica 
designed to accommodate at least 50 persons at any one time.
    Substance means any gas, liquid, or solid, or mixture thereof, 
including biological material.
    Treaty means the Antarctic Treaty signed in Washington, D.C., on 
December 1, 1959.
    United States means the several States of the Union, the District of 
Columbia, the Commonwealth of Puerto Rico, American Samoa, the Virgin 
Islands, Guam and the Trust Territory of the Pacific Islands, including 
the Federated States of Micronesia and the Commonwealth of the Northern 
Mariana Islands.
    United States Antarctic Program or USAP means the United States 
national program in Antarctica.
    U.S. citizen means any individual who is a citizen or national of 
the United States; any corporation, partnership, trust, association, or 
other legal entity existing or organized under the laws of any of the 
United States; and any department agency or other instrumentality of the 
Federal government or of any State, and any officer, employee, or agent 
of such instrumentality.
    Use means to use, generate or create a substance, or to import a 
substance into Antarctica, but does not include the shipboard use of a 
substance, provided that substance is not released or removed from the 
vessel.
    Waste means any substance that will no longer be used for any useful 
purpose, but does not include substances to be recycled in Antarctica, 
or substances to be reused in a manner different than their initial use, 
provided such substances are stored in a manner that will prevent their 
dispersal into the environment, and further provided that they are 
recycled, reused or disposed of in accordance with the provisions of 
this Part within three years. Recycling includes, but is not limited

[[Page 198]]

to, the reuse, further use, reclamation or extraction of a waste through 
a process or activity that is separate from the process or activity that 
produced the waste.
    (b) Pollutants, generally. All banned substances, designated 
pollutants and waste shall be considered pollutants for purposes of the 
Antarctic Conservation Act.



                 Subpart B--Prohibited Acts, Exceptions



Sec. 671.4  Prohibited acts.

    Unless one of the exceptions stated in Sec. 671.5 is applicable, it 
is unlawful for any U.S. citizen to:
    (a) Use or release any banned substance in Antarctica;
    (b) Use or release any designated pollutant in Antarctica, except 
pursuant to a permit issued by NSF under subpart C of this part;
    (c) Release any waste in Antarctica, except pursuant to a permit 
issued by NSF under subpart C of this part; or
    (d) Violate any term or condition of a permit issued by NSF under 
subpart C of this part, or any term or condition of any of the 
regulations issued under this part.



Sec. 671.5  Exceptions

    A permit shall not be required for any use or release of designated 
pollutants or waste allowed under the Act to Prevent Marine Pollution 
from Ships (33 U.S.C. 1901 et seq.), as amended, or for any shipboard 
use of banned substances or designated pollutants, provided such 
substances are not removed from the vessel in Antarctica.



                           Subpart C--Permits



Sec. 671.6  Applications for permits.

    (a) General content of permit applications. Each application for a 
permit shall be dated and signed by the applicant, and shall include the 
following information:
    (1) The applicant's name, address and telephone number, the business 
or institutional affiliation of the applicant, or the name, address and 
telephone number of the president, principal officer or managing partner 
of the applicant, as applicable;
    (2) A description of the types, expected concentrations and volumes 
of wastes and designated pollutants to be released in Antarctica; the 
nature and timing of such releases; arrangements for waste management, 
including, without limitation, plans for waste reduction, minimization, 
treatment and processing, recycling, storage, transportation and 
disposal; arrangements for training and educating personnel to comply 
with these waste management requirements and procedures, and 
arrangements for monitoring compliance; and other arrangements for 
minimizing and monitoring the environmental impacts of proposed 
operations and activities;
    (3) A description of the types, expected concentrations and volumes 
of designated pollutants to be used in Antarctica; the nature and timing 
of such uses; the method of storage of designated pollutants; and a 
contingency plan for controlling releases in a manner designed to 
minimize any resulting hazards to health and the environment;
    (4) The desired effective date and duration of the permit; and
    (5) The following certification:

    ``I certify that, to the best of my knowledge and belief, and based 
upon due inquiry, the information submitted in this application for a 
permit is complete and accurate. Any knowing or intentional false 
statement will subject me to the criminal penalties of 18 U.S.C. 1001.''

    (b) Address to which application should be sent. Each application 
shall be in writing, and sent to: Permits Office, Office of Polar 
Programs, National Science Foundation, 4201 Wilson Boulevard, Arlington, 
VA 22230.
    (c) Sufficiency of application. The sufficiency of the application 
shall be determined by the Director. The Director may waive any 
requirement for information, or require such additional information as 
he determines is relevant to the processing and evaluation of the 
application.
    (d) Publication of permit applications. The Director shall publish 
notice in the Federal Register of each application

[[Page 199]]

for a permit and the proposed conditions of its issuance (including 
duration). The notice shall invite the submission by interested parties, 
the Environmental Protection Agency and other federal agencies, within 
30 days after the date of publication of notice, of written data, 
comments, or views with respect to the application. Information received 
by the Director as a part of any application shall be available to the 
public as a matter of public record.

[58 FR 34719, June 29, 1993, as amended at 59 FR 37438, July 22, 1994]



Sec. 671.7  General issuance criteria.

    (a) Upon receipt of a complete and properly executed application for 
a permit, the Director will decide whether and on what conditions he 
will issue a permit. In making this decision, the Director will 
carefully consider any comments or suggestions received from interested 
parties, the Environmental Protection Agency and other federal agencies 
pursuant to Sec. 671.6(d), and will determine whether the permit 
requested meets the objectives of the Act, the Protocol, and the 
requirements of these regulations.
    (b) Permits authorizing the use or release of designated pollutants 
or wastes may be issued only if, based on relevant available 
information, the Director determines that such use or release will not 
pose a substantial hazard to health or the environment, taking into 
account available information on the possible cumulative impact of 
multiple releases.



Sec. 671.8  Permit administration.

    (a) Issuance of permits. The Director may approve an application for 
a permit in whole or in part, and may condition such approval upon 
compliance with additional terms and conditions. Permits shall be issued 
in writing, shall be signed by the Director, shall specify duration, and 
shall contain such terms and conditions as may be established by the 
Director and as are consistent with the Act and this part.
    (b) Denial. An applicant shall be notified in writing of the denial 
of any permit request or part of a request, and the reason for such 
denial. If authorized in the notice of denial, the applicant may submit 
further information, or reasons why the permit should not be denied. 
Such further submissions shall constitute amendments of the application.
    (c) Amendment of applications or permits. An applicant or permit 
holder desiring to have any term or condition of his application or 
permit modified must submit full justification and supporting 
information in conformance with the provisions of this Part. Any 
application for modification of a permit that involves a material change 
beyond the terms originally requested will be subject to the same 
procedures as a new application.
    (d) Public notice of issuance or denial. Within 10 days after the 
date of the issuance or denial of a permit, the Director shall publish 
notice of the issuance or denial in the Federal Register, including the 
conditions of issuance or basis for denial, as appropriate.



Sec. 671.9  Conditions of permit.

    (a) Conditions. All permits issued pursuant to subpart C of this 
part shall be conditioned upon compliance with the relevant provisions 
of the ACA, the Treaty, the Protocol, such specific conditions or 
restrictions as may be imposed by the Director under Sec. 671.7, and the 
provisions of subpart D of this part.
    (b) Possession of permits. Permits issued under this part, or copies 
of them, must be in the possession of persons to whom they are issued or 
their agents when conducting the authorized action. Any permit issued 
shall be shown to the Director or to any other person with enforcement 
authority upon request.
    (c)(1) Reports. Permit holders must provide the Director with 
written reports of:
    (i) Any non-permitted release of designated pollutants or waste 
within fourteen days after the occurrence of such release, including the 
date, quantity and cause of the release, and plans for remediation;
    (ii) The identity and quantity of all designated pollutants removed 
from Antarctica or otherwise disposed of, and the method of disposal; 
and
    (iii) Any other violations of the terms and conditions of their 
permits.

[[Page 200]]

    (2) The Director may also require permit holders to file reports of 
activities conducted under their permits. Such reports shall be 
submitted to the Director not later than June 30 for the preceding 12 
month period ending May 31.



Sec. 671.10  Review, modification, suspension, and revocation.

    (a) The Director may modify, suspend or revoke, in whole or in part, 
any permit issued under this part:
    (1) In order to make the permit consistent with any change to any 
regulation in this Part made after the date of issuance of the permit;
    (2) If there is any change in conditions which makes the permit 
inconsistent with the Act and any regulation in this part; or
    (3) In any case in which there has been any violation of any term or 
condition of the permit, any regulation in this part, or any provision 
of the Act.
    (b) The Director shall review all unexpired permits issued under 
this part at least biennially to determine whether those permits should 
be modified, suspended or revoked as set forth in paragraph (a) of this 
section.
    (c) Whenever the Director proposes any modifications, suspensions or 
revocations of a permit under this Sec. 671.10, the permittee shall be 
afforded the opportunity, after due notice, for a hearing by the 
Director with respect to such proposed modification, suspension, or 
revocation. If a hearing is requested, the action proposed by the 
Director shall not take effect before a decision is issued by him after 
the hearing, unless the proposed action is taken by the Director to meet 
an emergency situation.
    (d) Notice of the modification, suspension, or revocation of any 
permit shall be published in the Federal Register within 10 days from 
the date of the Director's decision.



                       Subpart D--Waste Management



Sec. 671.11  Waste storage.

    (a) Pending the treatment, disposal or removal of any wastes 
pursuant to Sec. 671.12, all wastes shall be contained, confined or 
stored in a manner that will prevent dispersal into the environment;
    (b) All Antarctic hazardous wastes generated at or transported to 
any USAP station may be temporarily stored at such station prior to the 
treatment, disposal or removal of any wastes pursuant to Sec. 671.12, 
provided all such Antarctic hazardous waste is stored in either closed 
containers or tanks labeled to indicate their contents and the beginning 
date of accumulation of such waste, and further provided the following 
conditions are satisfied:
    (1) If Antarctic hazardous wastes, radioactive wastes, or medical 
wastes, are generated at or transported to McMurdo Station, they may be 
temporarily stored at that station for a period not to exceed 15 months;
    (2) If Antarctic hazardous wastes, radioactive wastes, or medical 
wastes, are generated at or transported to South Pole Station, they may 
be temporarily stored at that station while awaiting transport to 
McMurdo Station, for a period not to exceed 15 months;
    (3) If Antarctic hazardous wastes, radioactive wastes, or medical 
wastes, are generated at or transported to Palmer Station, they may be 
temporarily stored at that station while awaiting transport to McMurdo 
Station or other disposition, for a period not to exceed 28 months;
    (4) Containers holding Antarctic hazardous wastes must be:
    (i) In good, non-leaking condition with sufficient structural 
integrity for the storage of Antarctic hazardous waste;
    (ii) Made of or lined with materials which will not react with, and 
are otherwise compatible with, the Antarctic hazardous waste to be 
stored, so that the ability of the containers to contain such waste is 
not impaired;
    (iii) Stored in a manner that allows access for inspection and 
response to emergencies; and
    (iv) Inspected at least weekly for leakage and deterioration. All 
inspections must be appropriately documented.
    (5) Tank systems used for storing Antarctic hazardous wastes must be 
in

[[Page 201]]

good, non-leaking condition with sufficient structural integrity for the 
storing of hazardous wastes; and systems must be inspected weekly to 
detect corrosion or releases of waste and to collect data from 
monitoring and leak detection equipment, to the extent available, to 
ensure that they are functioning properly. All inspections must be 
appropriately documented. Prior to the expiration of the 15 month period 
referred to in Sec. 671.11(b)(1), all Antarctic hazardous wastes shall 
be treated or removed from Antarctica in accordance with Sec. 671.12.
    (6) Ignitable, reactive or incompatible wastes shall be properly 
segregated and protected from sources of ignition or reaction, as 
appropriate.
    (c) All Antarctic hazardous wastes generated at a location other 
than a permanent station may be temporarily stored at such location for 
a period not to exceed 12 months, in closed, non-leaking containers 
marked to indicate their contents. Such containers must be in good 
condition and made of or lined with material which will not react with 
and is otherwise compatible with the Antarctic hazardous waste stored 
therein so as not to impair the ability of the container to contain the 
waste. Prior to the expiration of the 12 month period referred to above, 
all such hazardous wastes shall be either:
    (1) Treated or processed, disposed of or removed from Antarctica 
pursuant to Sec. 671.12, or
    (2) Removed to a permanent station and temporarily stored at that 
station in accordance with paragraph (b) of this section.



Sec. 671.12  Waste disposal.

    (a)(1) The following wastes shall be removed from Antarctica:
    (i) Radioactive materials;
    (ii) Electrical batteries;
    (iii) Fuel (both liquid and solid);
    (iv) Waste containing harmful levels of heavy metals or acutely 
toxic or harmful persistent compounds;
    (v) Poly-vinyl chloride (PVC), polyurethane foam, polystyrene foam, 
rubber and lubricating oils, treated timbers and other products 
containing additives which can produce harmful emissions or releases;
    (vi) All other plastic wastes except low density polyethylene 
containers (such as bags for storing wastes) provided such containers 
are incinerated in accordance with paragraph (e) of this section;
    (vii) Solid, non-combustible wastes; and
    (viii) Fuel, oil and chemical drums that constitute waste.
    (2) Notwithstanding paragraph (a)(1) of this section, the 
obligations set forth in paragraphs (a)(1) (vii) and (viii) of this 
section shall not apply if the Director determines that the removal of 
such wastes by any practicable option would cause greater adverse 
environmental impacts than would be caused by leaving them in their 
existing locations.
    (b) All liquid wastes other than sewage and domestic liquid wastes 
and wastes referred in paragraph (a) of this section shall be removed 
from Antarctica to the maximum extent practicable.
    (c) Sewage and domestic liquid wastes may be discharged directly 
into the sea, taking into account the assimilative capacity of the 
receiving marine environment, and provided that such discharge occurs, 
wherever practicable, where conditions exist for initial dilution and 
rapid dispersal, and further provided that large quantities of such 
wastes (generated in a station where the average weekly occupancy over 
the austral summer is approximately 30 individuals or more) shall be 
treated at least by maceration. If biological treatment processes are 
used, the by-product of such treatment may be disposed of into the sea 
provided disposal does not adversely affect the local environment.
    (d) Residues of introduced animal carcasses, laboratory culture of 
micro-organisms and plant pathogens, and introduced avian products must 
be removed from Antarctica unless incinerated, autoclaved or otherwise 
sterilized.
    (e) Combustible wastes not removed from Antarctica other than wastes 
referred to in paragraph (a) of this section, shall be burnt in 
incinerators

[[Page 202]]

which reduce harmful emissions or discharges to the maximum extent 
practicable and the solid residue of such incineration shall be removed 
from Antarctica; provided, however, that USAP may continue to bury such 
combustible wastes in snow pits at South Pole Station, but must phase 
out such practices before March 1, 1995. Any emission or discharge 
standards and equipment guidelines which may be recommended by the 
Committee for Environmental Protection constituted or to be constituted 
pursuant to the Protocol or by the Scientific Committee on Antarctic 
Research shall be taken into account.
    (f) Sewage and domestic liquid wastes and other liquid wastes not 
removed from Antarctica in accordance with other provisions of this 
section, shall, to the maximum extent practicable, not be disposed of 
onto sea ice, ice shelves or grounded ice-sheet unless such wastes were 
generated by stations located inland on ice shelves or on the grounded 
ice-sheet. In such event, the wastes may be disposed of in deep ice pits 
if that is the only practicable option, provided the ice pits are not 
located on known ice-flow lines which terminate at ice-free land areas 
or in blue ice areas of high ablation.
    (g) No wastes may be disposed of onto ice-free areas or into any 
fresh water system.
    (h) Open burning of wastes is prohibited at all permanent stations, 
and shall be phased out at all other locations by March 1, 1994. If it 
is necessary to dispose of waste by open burning prior to March 1, 1994, 
allowance shall be made for the wind direction and speed and the type of 
waste to be burnt to limit particulate deposition and to avoid such 
deposition over areas of special biological, scientific, historic, 
aesthetic or wilderness significance.
    (i) Each unauthorized release of waste in Antarctic shall be, to the 
maximum extent practicable, promptly cleaned up by the person 
responsible for such release.



Sec. 671.13  Waste management for the USAP.

    (a) In order to provide a basis for tracking USAP wastes, and to 
facilitate studies aimed at evaluating the environmental impacts of 
scientific activity and logistic support, the USAP shall classify its 
wastes in one of the following categories:
    (1) Sewage and domestic liquid wastes;
    (2) Other liquid wastes and chemicals, including fuels and 
lubricants;
    (3) Solid wastes to be combusted;
    (4) Other solid wastes; and
    (5) Radioactive material.
    (b) USAP shall prepare and annually review and update a waste 
management plan (including plans for waste reduction, storage and 
disposal) specifying for each of its permanent stations, field camps and 
ships (other than small boats that are part of the operations of 
permanent stations or are otherwise taken into account in existing 
management plans for ships):
    (1) Current and planned waste management arrangements, including 
final disposal;
    (2) Current and planned arrangement for assessing the environmental 
effects of waste and waste management;
    (3) Other efforts to minimize environmental effects of wastes and 
waste management; and
    (4) Programs for cleaning up existing waste disposal sites and 
abandoned work sites.
    (c) USAP shall designate one or more waste management officials to 
develop and monitor waste management plans and ensure that members of 
expeditions receive training so as to limit the impact of their 
activities on the Antarctic environment, and to inform them of the 
requirements of the Protocol and of this Part.
    (d) USAP shall, to the extent practicable, prepare an inventory of 
locations of past activities (i.e., traverses, fuel depots, field bases, 
crashed aircraft) so that such locations can be taken into account in 
planning future scientific, logistic and waste management programs.
    (e) USAP shall clean up its past and present waste disposal sites on 
land and abandoned work sites, except that it shall not be required to:
    (1) Remove any structure designated as a historic site or monument; 
or
    (2) Remove any structure or waste in circumstances where the removal 
would result in greater adverse environmental impact than leaving the

[[Page 203]]

structure or waste in its existing location.
    (f) USAP shall circulate waste management plans and inventories 
described in this section in accordance with the requirements of the 
Treaty and the Protocol.



    Subpart E--Designation of Banned Substances; Reclassification of 
                               Pollutants



Sec. 671.14  Annual review.

    The Director shall review the list of banned substances and 
designated pollutants at least annually, and may propose the designation 
or redesignation of any substance as a banned substance, designated 
pollutant or other waste, based on the following criteria:
    (a) If the Director determines that a substance, including a 
designated pollutant, poses a substantial immediate hazard to health or 
the environment and such hazard cannot be eliminated through waste 
management practices or other methods, or if the Parties to the Protocol 
or Treaty agree that a substance should be banned from use in 
Antarctica, the Director may designate such substance a banned 
substance.
    (b) If the Director determines that a substance is liable to create 
a hazard to health or the environment if improperly treated or 
processed, stored, transported, or disposed of, the Director may 
designate such substance a designated pollutant.
    (c) If the Director determines that a substance previously 
designated a banned substance no longer displays the characteristics 
described in paragraph (a) of this section, the Director may remove such 
substance from the list of banned substances (to the extent consistent 
with the provisions of the Protocol), but if the Director determines 
that such substance has the characteristics described in paragraph (b) 
of this section, it shall be redesignated a designated pollutant.
    (d) If the Director determines that a substance previously 
designated a designated pollutant no longer displays the characteristics 
described in paragraph (b) of this section, the Director may remove such 
substance from the list of designated pollutants.
    (e) In making the determinations referred to in paragraphs (a) 
through (d) of this section, the Director shall take into account all 
relevant new information obtained through monitoring activities or 
otherwise.



Sec. 671.15  Publication of preliminary determination

    Prior to any designation or redesignation of substances pursuant to 
Sec. 671.14 (including removal of such substances from lists of banned 
substances or designated pollutants), the Director shall publish notice 
in the Federal Register of any proposed designation or redesignation, 
including the basis therefor. The notice shall invite the submission by 
interested parties, the Environmental Protection Agency and other 
federal agencies, within 30 days after the date of publication of 
notice, of written data, comments, or views with respect to such action.



Sec. 671.16  Designation and redesignation of pollutants

    After review of any comments or suggestions received from interested 
parties, the Environmental Protection Agency and other Federal agencies 
pursuant to Sec. 671.15, the Director will make a final determination to 
designate and redesignate various substances as set forth above. Within 
10 days after the date of such final determination, the Director shall 
publish notice of any action taken in the Federal Register. Such action 
shall become effective no earlier than thirty days following publication 
of notice.



                      Subpart F--Cases of Emergency



Sec. 671.17  Cases of emergency.

    The provisions of this part shall not apply in cases of emergency 
relating to the safety of human life or of ships, aircraft or other 
equipment and facilities of high value, or the protection of the 
environment. Notice of any acts or omissions resulting from such 
emergency situations shall be reported promptly to the Director, who 
shall notify the Treaty parties in accordance with the requirements of 
the Treaty and the Protocol, and publish notice of such acts or 
omissions in the Federal Register.

[[Page 204]]



PART 672--ENFORCEMENT AND HEARING PROCEDURES; TOURISM GUIDELINES--Table of Contents




Sec.
672.1  Hearing Procedures--Scope of these rules.
672.2  Definitions.
672.3  Powers and duties of the Director; Presiding Official; Office of 
          Polar Programs.
672.4  Filing, service, and form of pleadings and documents.
672.5  Filing and service of rulings, orders, and decisions.
672.6  Appearances.
672.7  Issuance of complaint.
672.8  Answer to the complaint.
672.9  Motions.
672.10  Default order.
672.11  Informal settlement; consent agreement and order.
672.12  Prehearing conference.
672.13  Accelerated decision; decision to dismiss.
672.14  Scheduling the hearing.
672.15  Evidence.
672.16  Objections and offers of proof.
672.17  Burden of presentation; burden of persuasion.
672.18  Filing the transcript.
672.19  Proposed findings, conclusions, and order.
672.20  Initial decision.
672.21  Appeal from or review of interlocutory orders or rulings.
672.22  Appeal from or review of initial decision.
672.23  Final order on appeal.

    Authority: 16 U.S.C. 2401 et seq.

    Source: 54 FR 7132, Feb. 16, 1989, unless otherwise noted. 
Redesignated at 58 FR 34718, June 29, 1993.



Sec. 672.1   Hearing procedures--Scope of these rules.

     (a) These hearing rules govern all adjudicatory proceedings for the 
assessment of civil penalties or imposition of other sanctions pursuant 
to the Antarctic Conservation Act of 1978, 16 U.S.C. 2407; 2404(f); 
2401-2412; and
     (b) Other adjudicatory proceedings that the Foundation, in its 
discretion, determines are appropriate for handling under these rules, 
including proceedings governed by the Administrative Procedure Act 
requirements for ``hearings on the record.'' 5 U.S.C. 554 (1982).
     (c) Questions arising at any stage of the proceeding which are not 
addressed in these rules shall be resolved at the discretion of the 
Director or Presiding Officer.



Sec. 672.2   Definitions.

     (a) Throughout these rules, words in the singular also include the 
plural, and words in the masculine gender also include the feminine, and 
vice versa.
     (b) Act means the particular statute authorizing the initiation of 
the proceeding.
     (c) Administrative Law Judge means an Administrative Law Judge 
appointed under 5 U.S.C. 3105 (see also Pub. L. 95-251, 92 Stat. 183).
     (d) Complainant means any person authorized to issue a complaint on 
behalf of the Agency to persons alleged to be in violation of the Act. 
The complainant shall not be the Presiding Officer or any other person 
who will participate or advise in the decision.
     (e) Complaint means a written communication, alleging one or more 
violations of specific provisions of the Act, Treaties, NSF regulations 
or a permit promulgated thereunder, issued by the complainant to a 
person under this subpart.
     (f) Consent Agreement means any written document, signed by the 
parties, containing stipulations or conclusions of fact or law, and a 
proposed penalty, revocation or suspension of a permit, or other 
sanction.
     (g) Director means the Director of the National Science Foundation 
(NSF) or his delegatee.
     (h) Final Order means (1) an order issued by the Director after an 
appeal of an initial decision, accelerated decision, a decision to 
dismiss, or default order, or (2) an initial decision which becomes a 
final order.
     (i) Foundation, Agency, or NSF means the National Science 
Foundation.
     (j) Hearing means a hearing on the record open to the public and 
conducted under these rules.
     (k) Hearing Clerk is the person with whom all pleadings, motions, 
and other documents required under this subpart are filed.
     (l) Initial Decision means the decision issued by the Presiding 
Officer based upon the official record of the proceedings.

[[Page 205]]

     (m) Party means any person that participates in a hearing as 
complainant, respondent, or intervenor.
     (n) Permit means a permit issued under section 5 of the Antarctic 
Conservation Act of 1978, 16 U.S.C. section 2404.
     (o) Person includes any individual, partnership, association, 
corporation, and any trustee, assignee, receiver or legal successor 
thereof; any organized group of persons whether incorporated or not; and 
any officer, employee, agent, department, agency or instrumentality of 
the Federal Government. of any State or local unit of government, or of 
any foreign government.
     (p) Presiding Officer means the attorney designated by the Director 
to conduct hearings or other proceedings under this subpart.
     (q) Respondent means any person proceeded against in the complaint.
     (r) Terms defined in the Act and not defined in these rules of 
practice are used consistent with the meanings given in the Act.



Sec. 672.3   Powers and duties of the Director; Presiding Official; Office of Polar Programs.

     (a) Director. The Director of NSF shall exercise all powers and 
duties as prescribed or delegated under the Act and these rules.
     (b) The Director may delegate all or part of his authority. Partial 
delegation does not prevent the Presiding Officer from referring any 
motion or case to the Director.
     (c) Presiding Officer. The Director may designate one or more 
Presiding Officers to perform the functions described below. The 
Presiding Officers shall be attorneys who are permanent or temporary 
employees of the Foundation or some other Federal Agency and may perform 
other duties compatible with their authority as hearing officers. 
Administrative Law Judges may perform the functions of Presiding 
Officers. The Presiding Officer shall have performed no prosecutorial or 
investigatory functions in connection with any matter related to the 
hearing.
     (d) The Presiding Officer shall conduct a fair and impartial 
proceeding, assure that the facts are fully elicited, adjudicate all 
issues, and avoid delay. The Presiding Officer shall have authority to:
     (1) Conduct administrative hearings under these rules of practice;
     (2) Rule upon motions, requests, and offers of proof, dispose of 
procedural requests, and issue all necessary orders;
     (3) Administer oaths and affirmations and take affidavits;
     (4) Examine witnesses and receive documentary or other evidence;
     (5) For good cause, upon motion or sua sponte, order a party, or an 
officer or agent thereof, to produce testimony, documents, or other 
nonprivileged evidence, and failing the production thereof without good 
cause being shown, draw adverse inferences against that party;
     (6) Admit or exclude evidence;
     (7) Hear and decide questions of facts, law or discretion;
     (8) Require parties to attend conferences for the settlement or 
simplification of the issues, or the expedition of facts, law or 
discretion;
     (9) Issue subpoenas authorized by the Act; and
     (10) Take all actions necessary for the maintenance of order and 
for the efficient, fair and impartial adjudication of issues arising in 
proceedings governed by these rules.
     (e) Disqualification; Withdrawal. (1) The Presiding Officer may not 
participate in any matter in which he (i) has a financial interest or 
(ii) has any relationship with a party or with the subject matter which 
would make it inappropriate for him to act. Any party may at any time by 
motion made to the Director, or his delegatee, request that the 
Presiding Officer be disqualified from the proceeding.
    (2) If the Presiding Officer is disqualified or withdraws from the 
proceeding, the Director shall assign a qualified replacement who has 
none of the infirmities listed in paragraph (e)(1) of this section. The 
Director, should he withdraw or disqualify himself, shall assign the 
Deputy Director to be his replacement.
     (f) Office of Polar Programs. The Office of Polar Programs (OPP) 
manages and operates the national program in Antarctica, including 
administration of the Antarctic Conservation Act (ACA) permit system. 
OPP is responsible for

[[Page 206]]

investigating alleged violations of the ``prohibited acts'' section of 
the ACA and alleged noncompliance with ACA permits. OPP will act as the 
official complainant in all proceedings under the ACA governed by these 
rules. OPP may delegate all or part of its investigatory duties to other 
appropriate NSF employees, other qualified federal employees, or 
consultants. OPP will prepare complaints with the assistance of 
designated prosecuting attorneys within NSF's Office of the General 
Counsel, other qualified federal attorneys, or other appropriate legal 
representative selected jointly by OPP and OGC. The designated 
prosecuting attorney will represent OPP in all proceedings governed by 
these rules.
    (g) The Office of Polar Programs, acting on behalf of the Director, 
may designate qualified individuals as enforcement officers empowered to 
execute all of the law enforcement functions set forth in section 10 of 
the ACA, 16 U.S.C. 2409, as well as any other appropriate actions 
ancillary to those statutory duties. OPP will provide each enforcement 
officer with official enforcement credentials for identification 
purposes and use during execution of official duties.
OPP may also designate knowledgeable individuals to provide educational 
and other information regarding the Antarctic to tour operators, their 
clients and employees, and other visitors to the Antarctic.
    (h) The Office of Polar Programs shall prepare for publication and 
distribution a clear, concise explanation of the prohibited acts set 
forth in the Antarctic Conservation Act, and other appropriate 
educational material. The explanation may be translated into Spanish, 
French, German, or other foreign languages. This material shall be 
provided to tour operators for distribution to their passengers and crew 
prior to or during travel to the Antarctic. Tour operators shall 
distribute provided materials to each passenger and crew member.
    (i) The Office of the General Counsel, with the concurrence of the 
Office of Polar Programs, may refer appropriate cases to the Department 
of Justice for possible prosecution of criminal violations of the 
Antarctic Conservation Act.

[54 FR 7132, Feb. 16, 1989. Redesignated at 58 FR 34718, June 29, 1993, 
and amended at 59 FR 37438, July 22, 1994; 61 FR 51022, Sept. 30, 1996]



Sec. 672.4   Filing, service, and form of pleadings and documents.

     (a) Filing of pleadings and documents. (1) Except as otherwise 
provided, the original and one copy of the complaint, and the original 
of the answer and of all other documents served in the proceeding, shall 
be filed with the Hearing Clerk.
     (2) A certificate of service shall accompany each document filed or 
served. Except as otherwise provided, a party filing documents with the 
Hearing Clerk, after the filing of the answer, shall serve copies 
thereof upon all other parties and the Presiding Officer. The Presiding 
Officer shall maintain a duplicate file during the course of the 
proceeding.
     (3) When the Presiding Officer corresponds directly with the 
parties, he shall file the original of the correspondence with the 
Hearing Clerk, maintain a copy in the duplicate file, and send a copy to 
all parties. Parties who correspond directly with the Presiding Officer 
shall in addition to serving all other parties send a copy of all such 
correspondence to the Hearing Clerk. A certificate of service shall 
accompany each document served under this subsection.
     (b) Service of pleadings and documents--(1) Service of complaint. 
(i) Service of a copy of the signed original of the complaint, together 
with a copy of these rules, may be made personally or by certified mail, 
return receipt requested, on the respondent or his representative.
     (ii) Service upon a domestic or foreign corporation or upon a 
partnership or other unincorporated association which is subject to suit 
under a common name shall be made by personal service or certified mail, 
as prescribed by paragraph (b)(1)(i) of this section, directed to an 
officer, partner, a managing or general agent, or to any other person 
authorized by appointment or by Federal or State law to receive service 
of process.

[[Page 207]]

     (iii) Service upon an officer or agency of the United States shall 
be made by delivering a copy of the complaint to the officer or agency, 
or in any manner prescribed for service by applicable regulations. If 
the agency is a corporation, the complaint shall be served as prescribed 
in paragraph (b)(1)(ii) of this section.
    (iv) Service upon a State or local unit of government, or a State or 
local officer, agency, department, corporation or other instrumentality 
shall be made by serving a copy of the complaint in the manner 
prescribed by the law of the State for the service of process on any 
such persons, or
    (A) If upon a State or local unit of government, or a State or local 
department, agency, corporation or other instrumentality, by delivering 
a copy of the complaint to the chief executive officer thereof; or
    (B) If upon a State or local officer by delivering a copy to such 
officer.
    (v) Proof of service of the complaint shall be made by affidavit of 
the person making personal service, or by properly executed return 
receipt. Such proof of service shall be filed with the complaint 
immediately upon completion of service.
     (2) The first page of every pleading, letter, or other document 
shall contain a caption identifying the respondent and the docket number 
which is exhibited on the complaint.
     (3) The original of any pleading, letter, or other document (other 
than exhibits) shall be signed by the party filing it or by his 
representative. The signature constitutes a representation by the signer 
that he has read the pleading, letter or other document, that to the 
best of his knowledge, information and belief, the statements made 
therein are true, and that it is not interposed for delay.
     (4) The initial document filed by any person shall contain his 
name, address and telephone number. Any changes in this information 
shall be communicated promptly to the Hearing Clerk, Presiding Officer, 
and all parties to the proceeding. A party who fails to furnish such 
information and any changes thereto shall be deemed to have waived his 
right to notice and service under these rules.



Sec. 672.5  Filing and service of rulings, orders, and decisions.

     (a) All rulings, orders, decisions, and other documents issued by 
the Presiding Officer shall be filed with the Hearing Clerk. Copies of 
all such documents shall be served personally, or by certified mail, 
return receipt requested, upon all parties.
     (b) Computation. In computing any period of time prescribed or 
allowed in these rules, except as otherwise provided, computation is by 
calendar days and does not include the day of the event from which the 
designated period begins to run. When a stated time expires on a 
Saturday, Sunday or legal holiday, the stated time period shall be 
extended to include the next business day.
     (c) Extensions of time. The Presiding Officer may grant an 
extension of time for the filing of any pleading, document, or motion 
(1) upon timely motion of a party to the proceeding, for good cause 
shown, and after consideration of prejudice to other parties, or (2) 
upon his own motion. Such a motion by a party may only be made after 
notice to all other parties, unless the movant can show good cause why 
serving notice is impracticable. The motion shall be filed in advance of 
the date on which the pleading, document or motion is due to be filed, 
unless the failure of a party to make timely motion for extension of 
time was the result of excusable neglect.
     (d) Service by mail. Service of the complaint is complete when the 
return receipt is signed. Service of all other pleadings and documents 
is complete upon mailing. Where a pleading or document is served by 
mail, five (5) days shall be added to the time allowed by these rules 
for the filing of a responsive pleading or document.
     (e) Ex parte discussion of proceeding. At no time after the 
issuance of the complaint shall the Presiding Officer, or any other 
person who is likely to advise these officials in the decision on the 
case, discuss ex parte the merits of the proceeding with any interested 
person outside the Agency, with any Agency staff member who performs a 
prosecutorial or investigative function in

[[Page 208]]

the proceeding or other factually related proceeding, or with any 
representative of such person. Any ex parte memorandum or other 
communication addressed to the Presiding Officer during the pendency of 
the proceedinq and relating to the merits thereof, by or on behalf of 
any party, shall be regarded as argument made in the proceeding and 
shall be served upon all other parties. The Presiding Officer shall give 
the other parties an opportunity to reply.
     (f) Subject to the provisions of law restricting the public 
disclosure of confidential information, any person may, during Agency 
business hours, inspect and copy any document filed in any proceeding. 
Such documents shall be made available by the Hearing Clerk.
     (g) The person seeking copies of any documents filed in a 
proceeding shall bear the cost of duplication. Upon a formal request the 
Agency may waive this cost in appropriate cases.



Sec. 672.6   Appearances.

     (a) Appearances. Any party may appear in person or by counsel or 
other representative. A partner may appear on behalf of a partnership 
and an officer may appear on behalf of a corporation. Persons who appear 
as counsel or other representative must conform to the standards of 
conduct and ethics required of practitioners before the courts of the 
United States.
     (b) Intervention. A motion for leave to intervene in any proceeding 
conducted under these rules must set forth the grounds for the proposed 
intervention, the position and interest of the movant, and whether the 
intervention will cause delay. Any person already a party to the 
proceeding may file an answer to a motion to intervene, making specific 
reference to the factors set forth in the foregoing sentence and 
paragraph (c) of this section, within ten (10) days after service of the 
motion for leave to intervene.
     (c) A motion for leave to intervene in a proceeding must ordinarily 
be filed before the first prehearing conference, or if there is no such 
conference, prior to the setting of a time and place for a hearing. Any 
motion filed after that time must include, in addition to the 
information set forth in paragraph (b) of this section, a statement of 
good cause for the failure to file in a timely manner. Agreements, 
arrangements, and other matters previously resolved during the 
proceeding are binding on the intervenor.
     (d) Disposition. The Presiding Officer may grant leave to intervene 
only if the movant demonstrates that (1) his presence in the proceeding 
would not unduly prolong or otherwise prejudice the adjudication of the 
rights of the original parties; (2) the movant will be adversely 
affected by a final order; and (3) the interests of the movant are not 
being adequately represented by the original parties. The intervenor 
becomes a full party to the proceeding upon the granting of leave to 
intervene.
     (e) Amicus curiae. Persons not parties to the proceeding who wish 
to file briefs may so move. The motion shall identify the interest of 
the applicant and shall state the reasons why the proposed amicus brief 
is desirable. If the motion is granted, the Presiding Officer or 
Director shall issue an order setting the time for filing such brief. An 
amicus curiae is eligible to participate in any briefing after his 
motion is granted, and shall be served with all briefs, motions, and 
orders relating to issues to be briefed.
     (f) Consolidation. The Presiding Officer may, by motion or sua 
sponte, consolidate any or all matters at issue in two or more 
proceedings docketed under these rules where (1) there exists common 
parties or common questions of fact or law; (2) consolidation would 
expedite and simplify consideration of the issues; and (3) consolidation 
would not adversely affect the rights of parties engaged in otherwise 
separate proceedings.
     (g) Severance. The Presiding Officer may, by motion or sua sponte, 
for good cause shown order any proceedings severed with respect to any 
or all parties or issues.



Sec. 672.7   Issuance of complaint.

     (a) General. If the complainant has reason to believe that a person 
has violated any provision of the Antarctic Conservation Act, other Act 
or attendant regulations, or a permit issued

[[Page 209]]

under the ACA, he may institute a proceeding for the assessment of a 
civil penalty or other sanctions by issuing a complaint under the Act 
and these rules.
     (b) If the complainant has reason to believe that (1) a permittee 
violated any term or condition of the permit, or (2) a permittee 
misrepresented or inaccurately described any material fact in the permit 
application or failed to disclose all relevant facts in the permit 
application, or (3) other good cause exists for such action, he may 
institute a proceeding for the revocation or suspension of a permit by 
issuing a complaint under the Act and these rules. A complaint may seek 
suspension or revocation of a permit in addition to the assessment of a 
civil penalty.
     (c) Content and amendment of the complaint. All complaints shall 
include:
     (1) A statement reciting the section(s) of the Act, regulations, 
and/or permit authorizing the issuance of the complaint;
     (2) A concise statement of the factual basis for all alleged 
violations; and
     (3) Notice of the respondent's right to request a hearing on any 
material fact contained in the complaint, or on the appropriateness of 
the proposed sanction.
     (d) Each complaint for the assessment of a civil penalty shall also 
include:
     (1) Specific reference to each provision of the Act and 
implementing regulations which respondent is alleged to have violated;
     (2) The amount of the civil penalty which is proposed to be 
assessed; and
     (3) A statement explaining the reasoning behind the proposed 
penalty;
     (e) Each complaint for the revocation or suspension of a permit 
shall also include:
     (1) Specific reference to each term or condition of the permit 
which the respondent is alleged to have violated, to each alleged 
inaccuracy or misrepresentation in respondent's permit application, to 
each fact which the respondent allegedly failed to disclose in his 
permit application, or to other reasons which form the basis for the 
complaint;
     (2) A request for an order to either revoke or suspend the permit 
and a statement of the terms and conditions of any proposed partial 
suspension or revocation; and
     (3) A statement indicating the basis for recommending the 
revocation, rather than the suspension, of the permit, or vice versa.
     A copy of these rules shall accompany each complaint served.
    (f) Derivation of proposed civil penalty. The complainant shall 
determine the dollar amount of the proposed civil penalty in accordance 
with any criteria set forth in the Act and with any civil penalty 
guidance issued by NSF.
    (g) Amendment of the complaint. The complainant may amend the 
complaint once as a matter of right at any time before the answer is 
filed. Otherwise the complainant may amend the complaint only upon 
motion granted by the Presiding Officer. Respondent shall have twenty 
(20) additional days from the date of service of the amended complaint 
to file his answer.
    (h) Withdrawal of the complaint. The complainant may withdraw the 
complaint, or any part thereof, without prejudice one time before the 
answer has been filed. After one withdrawal before the filing of an 
answer, or after the filing of an answer, the complainant may withdraw 
the complaint, or any part thereof, without prejudice, only upon motion 
granted by the Presiding Officer.
    (i) Complainant, in cooperation with the Office of General Counsel, 
may refer cases to the Department of Justice for possible criminal 
prosecution if there is reason to believe that respondent willfully 
violated the Antarctic Conservation Act or its attendant regulations. 
Such referral does not automatically preclude NSF from proceeding 
administratively under the Act and these rules against the same 
respondent.



Sec. 672.8  Answer to the complaint.

    (a) General. Where respondent (1) contests any material fact upon 
which the complaint is based; (2) contends that the amount of the 
penalty proposed in the complaint or the proposed revocation or 
suspension, as the case may be, is inappropriate; or (3) contends that 
he is entitled to judgment as a matter of law, he shall file a written 
answer to the complaint with the Hearing Clerk.

[[Page 210]]

Any such answer to the complaint must be filed with the Hearing Clerk 
within twenty (20) days after service of the complaint.
    (b) Contents of the answer. The answer shall clearly and directly 
admit, deny or explain each of the factual allegations contained in the 
complaint. If respondent asserts he has no knowledge of a particular 
factual allegation, the allegation is deemed denied. The answer shall 
also state (1) the circumstances or arguments which are alleged to 
constitute the grounds of defense; (2) the facts which respondent 
intends to place at issue; and (3) whether a hearing is requested.
    (c) Request for hearing. A hearing upon the issues raised by the 
complaint and answer shall be held upon request of respondent in the 
answer. The Presiding Officer may deem the right to a hearing waived if 
it is not requested by respondent. In addition, a hearing may be held at 
the discretion of the Presiding Officer, sua sponte, to examine issues 
raised in the answer.
    (d) Failure to admit, deny, or explain. Failure of respondent to 
admit, deny, or explain any material factual allegation contained in the 
complaint constitutes an admission of the allegation.
    (e) Amendment of the answer. The respondent may amend the answer to 
the complaint upon motion granted by the Presiding Officer.



Sec. 672.9  Motions.

    (a) General. All motions, except those made orally on the record 
during a hearing, shall (1) be in writing; (2) state the basis or 
grounds with particularity; (3) set forth the relief or order sought; 
and (4) be accompanied by any affidavit, certificate, or other evidence 
or legal memorandum relied upon.
    (b) Response to motions. A party must file a response to any written 
motion within ten (10) days after service of such motion, unless the 
Presiding Officer allows additional time. The response shall be 
accompanied by any affidavit, certificate, other evidence, or legal 
memorandum relied upon. If no response is filed within the designated 
period, the Presiding Officer may deem the parties to have waived any 
objection to the granting of the motion. The Presiding Officer may also 
set a shorter time for response, or make such other appropriate orders 
concerning the disposition of motions.
    (c) Ruling on Motions. The Presiding Officer shall rule on all 
motions, unless otherwise provided in these rules. The Presiding Officer 
may permit oral argument if he considers it necessary or desirable.



Sec. 672.10  Default order.

    (a) Default. The Presiding Officer may find a party in default (1) 
after motion, upon failure to file a timely answer to the complaint; (2) 
after motion or sua sponte, upon failure to comply with a prehearing or 
hearing order of the Presiding Officer; or (3) after motion or sua 
sponte, upon failure to appear at a conference or hearing without good 
cause being shown. No finding of default on the basis of a failure to 
appear at a hearing shall be made against the respondent unless the 
complainant presents sufficient evidence to the Presiding Officer to 
establish a prima facie case against the respondent. Any motion for a 
default order shall include a proposed default order and shall be served 
upon all parties. The alleged defaulting party shall have twenty (20) 
days from service to reply to the motion. Default by respondent 
constitutes, for purposes of the pending action only, an admission of 
all facts alleged in the complaint and a waiver of respondent's right to 
a hearing on such factual allegations. If the complaint is for the 
assessment of a civil penalty, the penalty proposed in the complaint 
shall become due and payable by respondent without further proceedings 
sixty (60) days after a final order issued upon default. If the 
complaint is for the revocation or suspension of a permit, the 
conditions of revocation or suspension proposed in the complaint shall 
become effective without further proceedings on the date designated by 
the Presiding Officer in his final order issued upon default. Default by 
the complainant shall result in the dismissal of the complaint with 
prejudice.
    (b) Procedures upon default. When the Presiding Officer finds a 
default has occurred, he shall issue a default order against the 
defaulting party. This

[[Page 211]]

order shall constitute the initial decision, and shall be filed with the 
Hearing Clerk.
    (c) Contents of a default order. A default order shall include 
findings of fact showing the grounds for the order, conclusions 
regarding all material issues of law or discretion, and the penalty 
which is recommended, or the terms and conditions of permit revocation 
or suspension, or other sanctions.
    (d) The Presiding Officer may set aside a default order for good 
cause shown.



Sec. 672.11  Informal settlement; consent agreement and order.

    (a) Settlement policy. The Agency encourages settlement of a 
proceeding at any time if the settlement is consistent with the 
provisions and objectives of the Act and applicable regulations. The 
respondent may confer with complainant concerning settlement whether or 
not the respondent requests a hearing. Settlement conferences shall not 
affect the respondent's obligation to file a timely answer.
    (b) Consent agreement. The parties shall forward a written consent 
agreement and a proposed consent order to the Presiding Officer whenever 
settlement or compromise is proposed. The consent agreement shall state 
that, for the purpose of this proceeding, respondent (1) admits the 
jurisdictional allegations of the complaint; (2) admits the facts 
stipulated in the consent agreement or neither admits nor denies 
specific factual allegations contained in the complaint; and (3) 
consents to the assessment of a stated civil penalty or to the stated 
permit revocation or suspension, or to other sanctions or actions in 
mitigation. The consent agreement shall include any and all terms of the 
agreement, and shall be signed by all parties or their counsel or 
representatives.
    (c) Consent order. No settlement or consent agreement shall dispose 
of any proceeding under the rules without a consent order from the 
Director or his delegatee. Before signing such an order, the Director or 
his delegatee may require that the parties to the settlement appear 
before him to answer inquiries relating to the consent agreement or 
order.
    (d) Actions by respondent to clean, protect, enhance, or benefit the 
environment. NSF may accept from respondent environmentally beneficial 
actions, in lieu of penalties, in whole or in part, assessed under the 
Antarctic Conservation Act. An assessment of the monetary value of any 
action in mitigation shall be made before that action is incorporated as 
a part of any consent agreement and order.



Sec. 672.12  Prehearing conference.

    (a) Purpose of prehearing conference. Unless a conference appears 
unnecessary, the Presiding Officer, at any time before the hearing 
begins, shall direct the parties and their counsel or other 
representatives to appear at a conference before him to consider:
    (1) The settlement of the case;
    (2) The simplification of issues and stipulation of facts not in 
dispute;
    (3) The necessity or desirability of amendments to pleadings;
    (4) The exchange of exhibits, documents, prepared testimony, and 
admissions or stipulations of fact which will avoid unnecessary proof;
    (5) The limitation of the number of expert or other witnesses;
    (6) Setting a time and place for the hearing; and
    (7) Any other matters which may expedite the proceeding.
    (b) Exchange of witness lists and documents. Unless otherwise 
ordered by the Presiding Officer, each party at the prehearing 
conference shall make available to all other parties (1) the names of 
the expert and other witnesses he intends to call, together with a brief 
narrative summary of their expected testimony, and (2) copies of all 
documents and exhibits which each party intends to introduce into 
evidence. Documents and exhibits shall be marked for identification as 
ordered by the Presiding Officer. The Presiding Officer may exclude from 
evidence any document or testimony not disclosed at the prehearing 
conference. If the Presiding Officer permits the submittal of new 
evidence, he will grant parties a reasonable opportunity to respond.
    (c) Record of the prehearing conference. No transcript of a 
prehearing conference relating to settlement shall be made. With respect 
to other prehearing

[[Page 212]]

conferences, no transcript of any prehearing conferences shall be made 
unless ordered by the Presiding Officer upon motion of a party or sua 
sponte. The Presiding Officer shall prepare and file for the record a 
written summary of the action taken at the conference. The summary shall 
incorporate any written stipulations or agreements of the parties and 
all rulings and appropriate orders containing directions to the parties.
    (d) Unavailability of a prehearing conference. If a prehearing 
conference is unnecessary or impracticable, the Presiding Officer, on 
motion or sua sponte, may conduct a telephonic conference or direct the 
parties to correspond with him to accomplish any of the objectives set 
forth in this section.
    (e) Other discovery. (1) Except as provided by paragraph (b) of this 
section, further discovery shall be permitted only upon determination by 
the Presiding Officer that (i) such discovery will not in any way 
unreasonably delay the proceeding; (ii) the information to be obtained 
is not otherwise obtainable; and (iii) such information has significant 
probative value.
    (2) The Presiding Officer shall order depositions upon oral 
questions only upon a showing of good cause and upon a finding that (i) 
the information sought cannot be obtained by alternative methods; or 
(ii) there is substantial reason to believe that relevant and probative 
evidence may otherwise not be preserved for presentation by a witness at 
the hearing.
    (3) Any party may request further discovery by motion. Such a motion 
shall set forth (i) the circumstances warranting the taking of the 
discovery; (ii) the nature of the information expected to be discovered; 
and (iii) the proposed time and place where it will be taken. If the 
Presiding Officer determines that the motion should be granted, he shall 
issue an order granting discovery, with any qualifying conditions and 
terms.
    (4) When the information sought to be obtained is within the control 
of one of the parties, failure to comply with an order issued pursuant 
to this paragraph may lead to (i) the inference that the information to 
be discovered would be adverse to the party from whom the information 
was sought; or (ii) the issuance of a default.



Sec. 672.13  Accelerated decision; decision to dismiss.

    (a) General. The Presiding Officer, upon motion of any party or sua 
sponte, may at any time render an accelerated decision in favor of the 
complainant or the respondent as to all or any part of the proceeding, 
without further hearing or upon such limited additional evidence, such 
as affidavits, as he may require, if no genuine issue of material fact 
exists and a party is entitled to judgment as a matter of law regarding 
all or any part of the proceeding. In addition, the Presiding Officer, 
upon motion of the respondent, may at any time dismiss an action without 
further hearing or upon such limited additional evidence as he requires, 
if complainant fails to establish a prima facie case, or if other 
grounds show complainant has no right to relief.
    (b) Effect. (1) If an accelerated decision or a decision to dismiss 
is issued as to all the issues and claims in the proceeding, the 
decision constitutes an initial decision of the Presiding Officer, and 
shall be filed with the Hearing Clerk.
    (2) If an accelerated decision or a decision to dismiss is rendered 
on less than all issues or claims in the proceeding, the Presiding 
Officer shall determine what material facts exist without substantial 
controversy and what material facts remain controverted in good faith. 
He shall then issue an interlocutory order specifying the facts which 
appear substantially uncontroverted, and the issues and claims upon 
which the hearing will proceed.



Sec. 672.14  Scheduling the hearing.

    (a) When an answer is filed, the Hearing Clerk shall forward the 
complaint, the answer, and any other documents filed thus far in the 
proceeding to the Presiding Officer, who will notify the parties of his 
assignment.
    (b) Notice of hearing. If the respondent requests a hearing in his 
answer, or one is ordered by the Presiding Officer, the Presiding 
Officer shall serve upon the parties a notice setting forth a time

[[Page 213]]

and place for the hearing. The Presiding Officer may issue the notice of 
hearing at any appropriate time, but not later than twenty (20) days 
prior to the date set for the hearing.
    (c) Postponement of hearing. The Presiding Officer will not grant a 
request for postponement of a hearing except upon motion and for good 
cause shown.



Sec. 672.15  Evidence.

    (a) General. The Presiding Officer shall admit all evidence which is 
not irrelevant, immaterial, unduly repetitious, or otherwise unreliable 
or of little probative value. Notwithstanding the preceding sentence, 
evidence relating to settlement which would be excluded in the federal 
courts under Ru1e 408 of the Federal Rules of Evidence is inadmissible. 
In the presentation, admission, disposition, and use of evidence, the 
Presiding Officer shall preserve the confidentiality of trade secrets 
and other commercial and financial information. The confidential or 
trade secret status of any information shall not, however, preclude its 
introduction into evidence. The Presiding Officer may review such 
evidence in camera, and issue appropriate protective orders.
    (b) Examination of witnesses. Parties shall examine witnesses 
orally, under oath or affirmation, except as otherwise provided in these 
rules or by the Presiding Officer. Parties shall have the right to 
cross-examine a witness who appears at the hearing.
    (c) Verified statements. The Presiding Officer may admit into the 
record as evidence, in lieu of oral testimony, statements of fact or 
opinion prepared by a witness. The admissibility of the evidence 
contained in the statement shall be subject to the same rules as if the 
testimony were produced under oral examination. Before any such 
statement is read or admitted into evidence, the witness shall deliver a 
copy of the statement to the Presiding Officer, the reporter, and 
opposing counsel. The witness presenting the statement shall swear to or 
affirm the statement and shall be subject to appropriate oral cross-
examination.
    (d) Admission of affidavits where the witness is unavailable. The 
Presiding Officer may admit into evidence affidavits of witnesses who 
are ``unavailable,'' within the meaning of that term under Rule 804(a) 
of the Federal Rules of Evidence.
    (e) Exhibits. Where practicable, an original and one copy of each 
exhibit shall be filed with the Presiding Officer for the record and a 
copy shall be furnished to each party. A true copy of any exhibit may be 
substituted for the original.
    (f) Official notice. Official notice may be taken of any matter 
judicially noticeable in the Federal courts and of other facts within 
the specialized knowledge and experience of the Agency. Opposing parties 
shall be given adequate opportunity to show that such facts are 
erroneously noticed.



Sec. 672.16  Objections and offers of proof.

    (a) Objection. Any objection concerning the conduct of the hearing 
may be made orally or in writing during the hearing. The party raising 
the objection must supply a short statement of its grounds. The ruling 
by the Presiding Officer on any objection and the reasons given for it 
shall be part of the record. An exception to each objection overruled 
shall be automatic and is not waived by further participation in the 
hearing.
    (b) Offer of proof. Whenever evidence is excluded from the record, 
the party offering the evidence may make an offer of proof, which shall 
be included in the record. The offer of proof for excluded oral 
testimony shall consist of a brief statement describing the nature of 
the evidence excluded. The offer of proof for excluded documents or 
exhibits shall consist of the insertion in the record of the documents 
or exhibits excluded.



Sec. 672.17  Burden of presentation; burden of persuasion.

    The complainant has the burden of going forward with and of proving 
that the violation occurred as set forth in the complaint and that the 
proposed civil penalty, revocation, suspension, or other sanction, is 
appropriate. Following the establishment of a prima facie case, 
respondent has the burden of presenting and of going forward with any 
defense to the allegations set forth in the complaint. The Presiding 
Officer

[[Page 214]]

shall decide all controverted matters upon a preponderance of the 
evidence.



Sec. 672.18  Filing the transcript.

    The hearing shall be transcribed verbatim. After the Presiding 
Officer closes the record, the reporter shall promptly transmit the 
original and certified copies to the Hearing Clerk, and one certified 
copy directly to the Presiding Officer. A certificate of service shall 
accompany each copy of the transcript. The Hearing Clerk shall notify 
all parties of the availability of the transcript and shall furnish the 
parties with a copy of the transcript upon payment of the cost of 
reproduction, unless a party can show that the cost is unduly 
burdensome. Any person not a party to the proceeding may obtain a copy 
of the transcript upon payment of the reproduction fee, except for those 
parts of the transcript ordered to be kept confidential by the Presiding 
Officer.



Sec. 672.19  Proposed findings, conclusions, and order.

    Unless otherwise ordered by the Presiding Officer, any party may 
submit proposed findings of fact, conclusions of law, and a proposed 
order, together with supporting briefs, within twenty (20) days after 
the parties are notified of the availability of the transcript. The 
Presiding Officer shall set a time by which reply briefs must be 
submitted. All submissions shall be in writing, shall be served upon all 
parties, and shall contain adequate references to the record and relied-
upon authorities.



Sec. 672.20  Initial decision.

    (a) Filing and contents. The Presiding Officer shall issue and file 
with the Hearing Clerk an initial decision as soon as practicable after 
the period for filing reply briefs, if any, has expired. The initial 
decision shall contain findings of fact, conclusions regarding all 
material issues of law or discretion, the reasons for the findings and 
conclusions, a recommended civil penalty assessment or other sanction, 
if appropriate, and a proposed final order. Upon receipt of an initial 
decision, the Hearing Clerk shall forward a copy to all parties, and 
shall send the original, along with the record of the proceeding, to the 
Director.
    (b) Amount of civil penalty. If the Presiding Officer determines 
that a violation has occurred, he shall set the dollar amount of the 
recommended civil penalty in the initial decision in accordance with any 
criteria set forth in the Act, and must consider any civil penalty 
guidelines issued by NSF. If the Presiding Officer decides to assess a 
penalty different in amount from the penalty recommended in the 
complaint, he shall set forth in the initial decision the specific 
reasons for the increase or decrease. The Presiding Officer shall not 
raise a penalty from that recommended in the complaint if the respondent 
has defaulted.
    (c) Effect of initial decision. The initial decision of the 
Presiding Officer shall become the final order of the Agency within 
forty-five (45) days after its service upon the parties and without 
further proceedings unless (1) an appeal to the Director is filed by a 
party to the proceedings; or (2) the Director elects, sua sponte, to 
review the initial decision.
    (d) Motion to reopen a hearing. A motion to reopen a hearing to take 
further evidence must be made no later than twenty (20) days after 
service of the initial decision on the parties and shall (1) state the 
specific grounds upon which relief is sought; (2) state briefly the 
nature and purpose of the evidence to be adduced; (3) show that such 
evidence is not cumulative; and (4) show good cause why such evidence 
was not adduced at the hearing. The motion shall be made to the 
Presiding Officer and filed with the Hearing Clerk. Parties shall have 
ten (10) days following service to respond. The Presiding Officer shall 
grant or deny such motion as soon as practicable. The conduct of any 
proceeding which may be required as a result of the granting of any 
motion to reopen shall be governed by the provisions of the applicable 
sections of these rules. The filing of a motion to reopen a hearing 
shall automatically stay the running of all time periods specified under 
these Rules until such time as the motion is denied or the reopened 
hearing is concluded.

[[Page 215]]



Sec. 672.21  Appeal from or review of interlocutory orders or rulings.

    (a) Request for interlocutory orders or rulings. Except as provided 
in this section, appeals to the Director or, upon delegation, to the 
General Counsel, shall obtain as a matter of right only from a default 
order, an accelerated decision or decision to dismiss, or an initial 
decision rendered after an evidentiary hearing. Appeals from other 
orders or rulings shall lie only if the Presiding Officer, upon motion 
of a party, certifies such orders or rulings to the Director on appeal. 
Requests for such certification shall be filed in writing within six (6) 
days of notice of the ruling or service of the order, and shall state 
briefly the grounds to be relied upon on appeal.
    (b) Availability of interlocutory appeal. The Presiding Officer may 
certify any ruling for appeal to the Director when (1) the order or 
ruling involves an important question of law or policy and there is 
substantial grounds for difference of opinion; and (2) either (i) an 
immediate appeal from the order or ruling will materially advance the 
ultimate resolution of the proceeding, or (ii) review after the final 
order is issued will be inadequate or ineffective.
    (c) Decision. If the Director or the General Counsel takes no action 
within thirty (30) days of the certification, the appeal is dismissed. 
If the Director or the General Counsel decides to hear the interlocutory 
appeal, he shall make and transmit his findings and conclusions to the 
Presiding Officer. When the Presiding Officer declines to certify an 
order or ruling to the Director on interlocutory appeal, it may be 
reviewed by the Director only upon appeal from the initial decision.
    (d) Stay of proceedings. The Presiding Officer may stay the 
proceedings for an interlocutory appeal. Proceedings will not be stayed 
except in extraordinary circumstances. Where the Presiding Officer 
grants a stay of more than thirty (30) days, such stay must be 
separately approved by the Director.



Sec. 672.22  Appeal from or review of initial decision.

    (a) Notice of appeal. Any party may appeal any adverse initial 
decision of the Presiding Officer by filing a notice of appeal and an 
accompanying appellate brief with the Hearing Clerk and upon all other 
parties and amicus curiae within twenty (20) days after the initial 
decision is served upon the parties. The notice of appeal shall set 
forth alternative findings of fact, alternative conclusions regarding 
issues of law or discretion, and a proposed order together with relevant 
references to the record and the initial decision. The appellant's brief 
shall contain a statement of the issues presented for review, argument 
on the issues presented, and a short conclusion stating the precise 
relief sought, together with appropriate references to the record. 
Within twenty (20) days of the service of notices of appeal and briefs, 
any other party or amicus curiae may file with the Hearing Clerk a reply 
brief responding to argument raised by the appellant, together with 
references to the relevant portions of the record, initial decision, or 
opposing brief. Reply briefs shall be limited to the scope of the appeal 
brief.
    (b) Sua sponte review by the Director. Whenever the Director 
determines sua sponte to review an initial decision, the Hearing Clerk 
shall serve notice of such intention on the parties within forty-five 
(45) days after the initial decision is served upon the parties. The 
notice shall include a statement of issues to be briefed by the parties 
and a time schedule for the service and filing of briefs.
    (c) Scope of appeal or review. The appeal of the initial decision 
shall be limited to those issues raised by the parties during the course 
of the proceeding. If the Director determines that issues raised, but 
not appealed by the parties, should be argued, he shall give the parties 
or their representatives written notice of such determination to permit 
preparation of adequate argument. Nothing herein shall prohibit the 
Director from remanding the case to the Presiding Officer for further 
proceedings.
    (d) Argument. The Director may, upon request of a party or sua 
sponte, assign a time and place for oral argument.

[[Page 216]]



Sec. 672.23  Final order on appeal.

    (a) Contents of the final order. When an appeal has been taken or 
the Director issues a notice of intent to conduct review sua sponte, the 
Director shall issue a final order as soon as practicable after the 
filing of all appellate briefs or oral argument. The Director shall 
adopt, modify or set aside the findings and conclusions contained in the 
decision or order being reviewed and shall set forth in the final order 
the reasons for his actions. The Director may, in his discretion, 
increase or decrease the assessed penalty from the amount recommended in 
the decision or order being reviewed, except that if the order being 
reviewed is a default order, the Director may not increase the amount of 
the penalty.
    (b) Payment of a civil penalty. The respondent shall pay the full 
amount of the civil penalty assessed in the final order within sixty 
(60) days after receipt of the final order unless otherwise agreed by 
the parties. Payment shall be made by forwarding to the Hearing Clerk a 
cashier's check or certified check in the amount of the penalty assessed 
in the final order, payable to the Treasurer, United States of America.
    (c) Money due and owing the United States by virtue of an unappealed 
final decision or settlement order may be collected by referral to the 
Department of Justice for appropriate civil action against respondent.



PART 680--NSF CONFLICT-OF-INTERESTS RULES AND STANDARDS OF CONDUCT: INTRODUCTION AND GENERAL PROVISIONS--Table of Contents




                 Subpart A--Introduction to Regulations

Sec.
680.10  Introduction.
680.11  Summary of conflicts rules.
680.12  Underlying purposes and considerations.
680.13  Summary of additional responsibilities.
680.14  Summary of special rules for full-time Presidential appointees.
680.15  General standards of employee conduct.
680.16  Key terms.

                     Subpart B--Statutory Exemptions

680.20  Necessity and effect of formal exemptions.
680.21  Exemptions under 18 U.S.C. 208(b).

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supplement and 
Regulations of the Office of Personnel Management, 5 CFR 735.104.

    Source: 47 FR 32131, July 26, 1982, unless otherwise noted.



                 Subpart A--Introduction to Regulations



Sec. 680.10  Introduction.

    (a) Parts 680 through 684 of this title 45 contain conflict-of-
interests rules and standards of conduct for employees and former 
employees of the National Science Foundation.
    (b) ``You'', the NSF Employee. The principal audience for these 
regulations is the NSF employee who must comply with and understand 
them. They are therefore addressed directly to you. Except where 
provisions plainly indicate otherwise, ``you'' includes every NSF 
employee. It includes not only permanent civil service employees, but 
``rotators'' and persons working at the NSF under the Intergovernmental 
Personnel Act. It includes rehired annuitants. It includes part-time 
employees. It also includes any intermittent employees, temporary 
consultants, or members of the National Science Board who work or will 
work for the Government more than 130 days a year.
    (c) What is expected of you. You are not expected to be familiar 
with every section of the regulations. You are expected to be thoroughly 
acquainted with a number of basic conflict-of-interests rules, which are 
summarized for you in Sec. 680.13. You are also responsible for adhering 
to general ``standards of employee conduct'' that are laid out in 
Sec. 680.16. (Full-time Presidential appointees should also be 
thoroughly acquainted with the special rules in Sec. 680.15.) Beyond 
that the regulations are designed as a reference document and you need 
not cope with more detail than you find helpful until a problem or 
question comes up. Then, you should be able to find the detail you may 
need in parts 681 through 683.

[[Page 217]]

    (d) Consultants, Board members, and other ``special employees''. 
Most consultants, members of the National Science Board, and other 
temporary or intermittent employees work for the Government fewer than 
130 days a year and are therefore what the law calls ``special 
Government employees''. If you are such a ``special employee'', see part 
684 of these regulations. Part 684 states and explains the rules and 
standards you must observe. If you are a member of the National Science 
Board, part 684 applies to you as to any other ``special employee''. 
Subpart B of part 684 states and explains special rules of the National 
Science Board that apply only to its members.
    (e) Ethics counselors. Within the Office of the General Counsel is 
an attorney designated by the General Counsel who has primary 
responsibility for conflict-of-interests matters and for liaison with 
the Office of Government Ethics. This attorney is the ``ethics 
counselor''. Working with the ethics counselor are one or more deputy 
ethics counselors. Whenever you have a conflict-of-interests problem or 
question and cannot find a clear answer in these regulations, consult an 
ethics counselor.



Sec. 680.11  Summary of conflicts rules.

    (a) This section summarizes the principal conflicts rules that NSF 
employees (other than ``special employees'') are expected to observe. 
Section 680.13 summarizes specific conflicts-related responsibilities 
assigned to particular organizational units or officials by the 
regulations. Section 680.14 summarizes special rules for full-time 
Presidential employees. Rules for consultants, Board members, and other 
employees who work for the NSF 130 days a year or less are covered in 
part 684.
    (b) Rules on handling proposals and awards. (Secs. 681.10 through 
681.44) (1) If you would normally handle a proposal or other 
application, but possess with respect to it an affiliation or 
relationship listed in Sec. 681.21, you must bring the matter to the 
attention of a conflicts official in your directorate or staff office. 
The conflicts official will determine how the matter should be handled 
and will tell you what further steps to take.
    (2) If you become aware that a prospective, current, or recent NSF 
employee has an involvement or interest in any proposal or other 
application you are handling, you must bring the matter to the attention 
of a directorate conflicts official. The conflicts official will decide 
how the matter should be handled and tell you what further steps to 
take. If the file reflects that a conflicts official has already been 
consulted and has decided how the matter should be handled, you may 
proceed as the conflicts official has directed, unless something of 
possible significance has changed.
    (3) You must ask each peer reviewer of any proposal you are handling 
to indicate any possible conflicts of interests the reviewer may have. 
You should record in the proposal file all interests, affiliations, or 
relationships revealed by reviewers; determine how, if at all, they 
ought to affect the use of the review; and describe your determination 
in the file.
    (c) Representational restrictions and involvement with proposals and 
projects during and after NSF service. (Secs. 682.10 through 682.23) (1) 
Current-employee restriction. During your Federal employment you must 
not represent anyone (including yourself) in dealings with any Federal 
official on any proposal, project, or other matter.
    (2) One-year NSF restriction. For one year after you leave NSF 
employment you must not represent anyone (including yourself) in 
dealings with any NSF official on any proposal, project, or other 
matter.
    (3) ``Official responsibility'' two-year restriction. For two years 
after you leave NSF employment you must not represent anyone else in 
dealings with any Federal official on any proposal, project, or other 
matter involving specific parties if the same matter was active under 
your official responsibility during your last year at the NSF.
    (4) ``Personal involvement'' permanent restriction. You must never 
represent anyone else in dealings with any Federal official on any 
proposal, project, or other matter involving specific parties if you 
were personally involved with the same matter as an NSF employee.

[[Page 218]]

    General effect: These representational restrictions do not preclude 
you from being involved as a researcher or educator with proposals 
submitted to the Government or projects supported by the Government. 
They do preclude you from negotiating with NSF officials or other 
Federal officials and from engaging in other representational activities 
intended to influence their decisions on certain proposals and projects. 
They do not preclude you from representing yourself before the 
Government on personal matters, such as audits of your individual tax 
returns or personnel decisions that affect you.
    (d) Financial disclosure. (Secs. 683.10 through 683.12)
    (1) If you are an executive level, SES, or supergrade (GS-16 or 
equivalent and above) employee, you are a ``senior employee'' and must 
file public Financial Disclosure Reports.
    (2) Otherwise, if you serve as either a program officer, a 
directorate administrative official, a grants officer, a contracts 
officer, an auditor, or a lawyer, you must file confidential Statements 
of Employment and Financial Interest.
    (3) If you fit neither of these categories, no general financial 
disclosure is required of you.
    (4) If you are required to file Financial Disclosure Reports or 
Statements of Employment and Financial Interests, the Foundation will 
supply the necessary forms. You may ask for them when you need them, but 
normally they will be sent to you automatically, with instructions.
    (e) Acts affecting your financial interests. (Sec. 683.20) You must 
not be personally involved as a Federal employee in the handling of any 
matter in which you, a member of your immediate family, a business 
partner, or an organization of which you are or may become a part has a 
financial interest.
    (f) Outside employment, compensation, gifts, etc. These rules are 
too numerous to summarize but they are not difficult to use. Refer to 
the referenced sections whenever you contemplate any of the following:
    (1) Outside employment and income (Sec. 683.30);
    (2) Compensation from private sources (Sec. 683.31);
    (3) Honoraria ( 683.32);
    (4) Reimbursement of expenses or receipt of meals, lodging, or 
travel tickets from private sources (Sec. 683.33);
    (5) Use of inside Government information in connection with 
speeches, articles, or other private activities ( 683.34);
    (6) Participation in an NSF-supported conference or workshop 
(Sec. 683.35); or
    (7) Receipt of a gift, favor, loan, prize, or award (Sec. 683.36).
    (g) Political activity (Hatch Act). (Secs. 683.40 through 683.45)
    (1) You may not run for public or party office, except in 
nonpartisan elections and certain local elections.
    (2) You may not participate in election campaigning, except in 
nonpartisan elections and certain local elections.
    (3) You may not take an active part in leading or managing a 
political party.
    (4) You must not use your official authority or influence for 
political purposes.



Sec. 680.12  Underlying purposes and considerations.

    (a) Conflicts sensitivity. This section outlines the primary sources 
of conflicts of interests and explains other considerations that 
underlie the conflicts rules. If you are sensitive to those 
considerations and identify situations in which someone might at least 
think that you have a conflict of interests, you will not be likely to 
violate the conflict-of-interests rules. When you do identify such a 
situation, of course, you can and should consult these regulations.
    (b) Effect of conflicts of interests. There are two principal 
reasons why you and the NSF should avoid or minimize actual or apparent 
conflicts of interests.
    (1) The success of the NSF in performing its scientific and other 
functions depends on the effectiveness of its proposal review process in 
ensuring that the best and most important work is supported. If 
judgments are warped because of conflicting interests, that 
effectiveness is compromised. The same is true of other NSF decision 
processes.

[[Page 219]]

    (2) The NSF must earn the confidence of the scientific community, 
the Congress, and the general public in the integrity, effectiveness, 
and evenhandedness of its proposal-review and other decision processes. 
It will not do so if the processes are seen to be compromised by 
conflicts of interests.
    (c) What is a conflict of interests? A conflict of interests is a 
clash between an official's concern for the public interest and his or 
her private interests or allegiances. There are three primary sources: 
(1) Personal interests; (2) outside affiliations or relationships; and 
(3) gifts or favors. The examples that follow deliberately present 
situations that are not clear cut and do not illustrate specific rules 
you must follow. The pertinent rules appear elsewhere in these 
regulations.
    (1) You might use your government position to further your personal 
interests, in conflict with the public interest.

    Example: If as an NSF program official you recommended a conference 
of scientists in your field to discuss current issues, then chaired the 
conference yourself and delivered the principal paper, at least a 
inference suspicion would arise that you had used your Government 
position to further your own professional prestige or other personal 
interests.

    (2) Outside affiliations or relationships could affect the 
objectivity of your judgments as a public official.

    Example: A proposal comes to you for handling. You received your 
degree from the applicant institution and were a professor there until 
recently. The proposed principal investigator is your cousin. You have 
potential conflicts of interests arising from both your academic 
affiliation and your family relationship.

    (3) Gifts or favors from those interested in agency decisions could 
affect the objectivity or integrity of your contribution to those 
decisions.

    Example: The chairman of a university department that regularly 
sends proposals to your unit is in town. After a late afternoon meeting 
he proposes dinner at a restaurant on his expense account. Acceptance of 
the dinner would create a potential conflict between your debt of 
gratitude towards him and your disinterested pursuit of the public 
interest.

    (d) Inside access and influence. A special concern that underlies 
many of the conflicts rules is that your insider's access to other 
Federal officials and your inside influence with them might allow you to 
sway their decisions or actions where you or those with whom you have 
ties are interested.

    Example: A personal friend is principal investigator on a proposal 
pending in another part of your NSF unit. He asks you to check how 
things are going with that proposal. You talk with the program officer 
and division director handling the proposal. You not only check the 
status of the review, but mention what a fine scientist your friend is 
and how excellent his recent work has been. Your friendship with the 
investigator may influence your judgment on these points, and your 
inside influence may affect the actions and judgments of those with whom 
you talk. This creates a potential conflict between your private 
allegiance to your friend and the public interest.

    (e) Conflicts that require prohibition or disqualification. Some 
conflicts of interests would so warp the performance of a Government 
agency or damage its credibility that they simply cannot be allowed to 
occur. (If a proposal from a member of your family or from your home 
institution comes into your program, for instance, you would clearly 
have to disqualify yourself from handling it.) Most Federal conflict-of-
interests laws and a few conflicts rules special to the NSF deal with 
conflicts or potential conflicts of this sort. They therefore either 
flatly prohibit you from doing certain things that could give rise to 
such conflicts or disqualify you from participating in matters where you 
would have a potentially serious conflict.
    (f) Other conflicts. By no means all conflicts of interests are so 
serious and clear that flat prohibitions or disqualifications are 
appropriate. Many conflicts, though real, are subtle, even remote. The 
seriousness of others so depends on circumstances of the particular case 
that unvarying rules would be impractical. There are also countervailing 
considerations. When we flatly prohibit Federal employees from doing 
things others who are not Federal employees are free to do, we tend to 
make Federal employment unattractive and so reduce the competence of 
Government. Also, disqualifying officials from

[[Page 220]]

being involved with particular matters may remove those who are best 
qualified by expertise or experience to make the required judgments or 
effect the required actions. For these reasons, the conflicts laws and 
regulations do not specifically address many potential or actual 
conflicts that are not serious enough to require flat prohibitions or 
disqualifications or not easily enough identified by general rule to 
permit them.
    (1) In the handling of the proposals and other award-related 
applications, these regulations require that some such potential 
conflicts receive special attention from a designated directorate 
``conflicts official.'' The conflicts official considers the 
circumstances of each case and decides whether to require either a 
disqualification or some form of special handling. See part 681.
    (2) Other actual or potential conflicts may not be covered by any 
specific rule. You should nonetheless be sensitive to them and do 
whatever seems wise either to avoid them altogether or to ensure that 
they affect neither the quality of NSF decisions nor public trust in 
those decisions.



Sec. 680.13  Summary of additional responsibilities.

    Apart from the conflicts rules for all employees summarized in the 
preceding section, these regulations impose the following additional 
responsibilities:
    (a) Directorates and staff offices. Each directorate and staff 
office is responsible for designating ``conflicts officials'' and for 
making sure that all staff who handle proposals and other applications 
know who the conflicts officials are (Sec. 681.10(d)).
    (b) Directorate (and staff-office) ``conflicts officials''. If your 
directorate or staff office has designated you as a conflicts official, 
your responsibilities are described in part 681, subpart D, 
(Secs. 681.40-681.44).
    (c) Officials who are recruiting new professional employees. If NSF 
officials who are recruiting determine that a person has become a 
``prospective employee'', they are responsible for bringing that fact 
and subsequent developments to the attention of a directorate (or staff-
office) conflicts official. Whenever a person currently listed in the 
NSF principal investigator/project director file seems likely to become 
an NSF employee, the directorate or office which has recruited that 
person must inform the Division of Information Systems by memo (so that 
the principal investigator/project director file can be ``flagged'' 
accordingly). It must also send copies of the memo to each NSF division 
or office that is responsible for an active award or pending proposal 
involving that person. These and related requirements are further 
described in part 681, subpart C, (Secs. 681.30-681.33).
    (d) Directorate for Administration. The Assistant Director for 
Administration is responsible for ``flagging'' the principal 
investigator/project director file to indicate those who are incoming, 
current, or recent employees (Sec. 681.33(d)).



Sec. 680.14  Summary of special rules for full-time Presidential appointees.

    If you are a Presidential appointee, you are subject to special 
additional rules:
    (a) You must file a public Financial Disclosure Report within 5 days 
of your nomination to your position by the President. (Sec. 683.11)
    (b) You may not earn from other outside activities income totalling 
more than 15 percent of your Government salary in any calendar year. 
(Sec. 683.30)
    (c) You are not subject to the restrictions on political activity, 
except to those concerning use of official authority or influence for 
political purposes. (Sec. 683.40)

[47 FR 32131, July 26, 1982, as amended at 51 FR 22939, June 24, 1986]



Sec. 680.15  General standards of employee conduct.

    (a) Summary. This section covers some standards of conduct for 
Government employees that are not covered elsewhere in the NSF 
regulations. Most of them are basic standards of integrity, decency, and 
obedience to law. Violation of any of these standards is grounds for 
serious disciplinary action.
    (b) Underlying intent. The intent of these regulations generally is 
that you should not:

[[Page 221]]

    (1) Engage in criminal, infamous, dishonest, immoral, or notoriously 
disgraceful conduct or in any other conduct prejudicial to the 
Government or to Government efficiency or economy;
    (2) Use your public office for private gain;
    (3) Give preferential treatment;
    (4) Have direct or indirect financial interests that conflict 
substantially, or appear to conflict substantially, with your Government 
duties and responsibilities;
    (5) Engage directly or indirectly in financial transactions based on 
information obtained through your Government employment that is not 
available to the general public;
    (6) Lose your independence or impartiality; or
    (7) Make Government decisions outside of the proper official 
channels.
    (c) Preserving public trust. You are responsible for helping to earn 
and maintain the confidence of the public in the integrity of the 
Government. This requires you to be concerned with appearances of as 
well as actual conflicts.
    (d) Payment of taxes and debts. You are expected to pay your taxes 
and your just debts properly and on time. (``Just debts'' means those 
you acknowledge or that have been reduced to final judgment. The 
Government will not try to determine the validity or amount of any 
disputed debt.)
    (e) Gambling. You must not gamble in a Government office or while on 
duty. This includes participating in a sports pool or a lottery not 
officially sanctioned by the NSF.
    (f) Familiarity with statutory provisions. You are legally 
responsible for acquainting yourself with each statute that relates to 
your conduct as an NSF and Federal employee. Principal among these are 
the criminal statutes relating to bribery, graft, and conflicts of 
interests contained in 18 U.S.C. 201 through 209; these regulations 
cover those provisions as they apply to NSF employees. These regulations 
also cover the provisions of Executive Order 11222, which prescribes 
standards of ethical conduct for Government officers and employees. They 
cover regulations of the Office of Personnel and Management that 
implement both the criminal statutes and the Executive Order. If you 
follow these regulations, you should have no trouble with any of those 
provisions. Not covered in these regulations, however, are the following 
statutory provisions:
    (1) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913).
    (2) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 
18 U.S.C. 1918).
    (3) The prohibitions against disclosure of classified information 
(18 U.S.C. 798, 50 U.S.C. 783) and disclosure of confidential 
information (18 U.S.C. 1905).
    (4) The provision relating to habitual use of intoxicants to excess 
(5 U.S.C. 7352).
    (5) The prohibition against misuse of a Government vehicle (31 
U.S.C. 638a(c)).
    (6) The prohibition against misuse of the franking privilege (18 
U.S.C. 1719).
    (7) The prohibition against use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917).
    (8) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001).
    (9) The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071).
    (10) The prohibition against counterfeiting or forging transporation 
requests (18 U.S.C. 508).
    (11) The prohibitions against embezzling Government money or 
property (18 U.S.C. 641); failing to account for public money (18 U.S.C. 
643); and embezzling the money or property of an employee by reason of 
his employment (18 U.S.C. 654).
    (12) The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285).
    (13) The prohibition against acting as the agent of a foreign 
principal registered under the Foreign Agents Registration Act (18 
U.S.C. 219).



Sec. 680.16  Key terms.

    Except where provisions plainly indicate otherwise, certain other 
terms are used throughout these regulations in standard meanings:

[[Page 222]]

    (a) Award means any grant, contract, cooperative agreement, loan, or 
other arrangement made by the Government.
    (b) Project means the unit of work that an award supports or helps 
support.
    (c) Proposal means an application for an award and includes a bid.
    (d) Other award-related application means a request for an award 
amendment, for an increment to a continuing grant, for a no-cost 
extension, or for an administrative approval.
    (e) Institution means any university, college, business firm, 
research institute, professional society, or other organization. It 
includes any university consortium or joint corporation such as AUI, 
AURA, or JOI, Inc., but not the universities that belong to it. It 
includes all parts of a university or college, including separate 
campuses. It does not include other universities or colleges in a multi-
institution state or city system, unless you are an employee of the 
central system offices or an officer, trustee, or equivalent of the 
system as a whole.
    (f) Directorate means an NSF directorate, staff office, or other 
organization that reports immediately to the NSF Director.
    (g) Program Officer includes assistant and associate program 
officers or program managers.



                     Subpart B--Statutory Exemptions



Sec. 680.20  Necessity and effect of formal exemptions.

    The exemptions described in this subpart are provided for by 
statute, which requires that they be formally promulgated. This subpart 
provides the formal promulgation and gives notice to the public. If you 
are an NSF employee, you need not be concerned with them. Anything you 
need to know that follows from them is either covered elsewhere in these 
regulations or will be explained if occasion arises by an ethics 
counselor.



Sec. 680.21  Exemptions under 18 U.S.C. 208(b).

    (a) The Foundation exempts the interests described in the remainder 
of this section from the operation of section 208(a) and from case-by-
case formal determinations under section 208(b)(1) of title 18, United 
States Code.
    (b) Minor interests. The following financial interests are too 
inconsequential to affect the integrity of an employee's services to the 
Government:
    (1) Noncorporate bonds;
    (2) Shares in a well-diversified money market or mutual fund;
    (3) Stocks, bonds, or other securities of a corporation listed on 
the New York or American Stock Exchange if the aggregate market value of 
all the securities you hold in that corporation does not exceed $1,000;
    (4) Vested pension rights to which no further contributions are 
being made by your former employer.
    (c) Indirect interests. An NSF employee may be a stockholder, 
partner, employee, officer, or director of an institution, such as a 
mutual fund, that owns a financial interest in a second institution. If 
the owning institution's financial interest consists of securities or 
other evidences of debt of the second institution that amount to:
    (1) Less than 5 percent of the total portfolio of investments of the 
owning institution,
    (2) Less than 5 percent of the total outstanding amounts of the same 
classes of securities of the second institution, and
    (3) Less than would be needed to obtain effective control of the 
second institution,

then the interest is too remote and inconsequential to affect the 
integrity of the employee's services to the Government.
    (d) Policy determinations. Where a general policy determination of 
the Government might constitute a ``particular matter'' under 18 U.S.C. 
208(a) and might affect the home institution of an NSF officer or 
employee, but only in the same manner as all similar institutions, the 
officer or employee may participate in that determination.
    (e) Support services for National Science Board tasks and 
responsibilities. A member of the National Science Board may need 
professional, clerical, and administrative services to support the 
member's personal efforts to carry out Board tasks and responsibilities. 
With the approval of the Director and the Chairman of the National 
Science

[[Page 223]]

Board and in accordance with other laws and regulations, the NSF may 
contract with the home insitution of the member to provide such 
services. The institution may receive reimbursement of all allowable 
costs, but no profit or fee. In such circumstances any financial 
interests the institution might have are normally too inconsequential to 
affect the integrity of the services provided by the Board member to the 
Government.



PART 681--CONFLICTS OR POTENTIAL CONFLICTS IN HANDLING PROPOSALS AND AWARDS--Table of Contents




                           Subpart A--Summary

Sec.
681.10  Summary.

   Subpart B--Guidance for Program Officers and Other Decision-making 
                                Officials

681.20  Introduction.
681.21  When you have a potentially biasing affiliation or relationship.
681.22  ``Automatically disqualifying''; ``normally disqualifying''.
681.23  When a prospective, current, or recent NSF employee has an 
          involvement or interest.
681.24  Directorate conflicts officials.
681.25  Possible conflicts of peer reviewers.

 Subpart C--Indentifying Prospective, Current, or Recent NSF Employees 
         and Proposals or Awards in Which They Have an Interest

681.30  General.
681.31  ``Recent employee''; ``prospective employee''.
681.32  What the recruiting directorate or office should do when a 
          person becomes a ``prospective NSF employee''.
681.33  Informing others about incoming employees; ``flagging''.

         Subpart D--Guidance for Directorate Conflicts Officials

681.40  Summary; responsibilities of conflicts officials.
681.41  Making determinations: underlying considerations.
681.42  Disclosure, disqualification, and other special handling.
681.43  Potential conflicts when an NSF employee has an involvement or 
          interest.
681.44  Handling prospective-employee determinations.

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supplement and 
Regulations of the Office of Personnel Management, 5 CFR 735.104.

    Source: 47 FR 32135, July 26, 1982, unless otherwise noted.



                           Subpart A--Summary



Sec. 681.10  Summary.

    (a) Two types of problems could affect the judgments of program 
officers and other NSF officials who handle proposals and other 
applications:
    (1) The official might possess outside interests, affiliations, or 
relationships that could create bias; or
    (2) Another NSF employee could have an involvement or interest in 
the proposal or application.

Whenever either of these problems arises, the official who would 
normally handle the proposal or other application is asked to bring the 
problem to the attention of a ``directorate conflicts official''. This 
conflicts official examines the case; decides what disqualifications or 
special handling arrangements, if any, are called for; and places a memo 
in the file explaining the circumstances and any arrangements made to 
deal with them. In some cases disqualifications are routine or 
automatic.
    (b) Peer reviewers can also have interests, affiliations, or 
relationships that might affect their reviews. Reviewers are asked to 
reveal any such interests, affiliations, or relationships. Those are 
then taken into account by NSF officials in making decisions or 
recommendations based on the reviews.
    (c) If you are a program officer or other NSF official who handles 
proposals and other award-related applications, your responsibilities in 
these matters are explained in subpart B (Secs. 681.20-681.26).
    (d) Each directorate or staff office of the Foundation is 
responsible for designating ``conflicts officials'' and for making sure 
that all staff who handle proposals and other applications know who the 
conflicts officials are. The conflicts officials need not be in the 
directorate front office. They could, for example, be division 
directors.

[[Page 224]]

    (e) If you have been designated as a directorate (or staff office) 
conflicts official, your responsibilities in these matters are explained 
in subpart D (Secs. 681.40 through 681.44) of this part, which also 
provides guidance to help you carry out those responsibilities.



   Subpart B--Guidance for Program Officers and Other Decision-making 
                                Officials



Sec. 681.20  Introduction.

    (a) If you are a progam officer or other NSF official who would 
normally handle a proposal or other application, but you possess with 
respect to it a potentially biasing affiliation, listed in Sec. 681.21, 
that section explains what you should do.
    (b) If you become aware that another NSF employee)--including a 
prospective employee or a recent employee (one who has left the NSF 
within the past year)--or a current member of the National Science Board 
has an involvement or interest in a proposal or other application you 
are handling, Sec. 681.23 explains what you should do.
    (c) You must ask each peer reviewer of any proposal or project you 
are handling to indicate any possible conflicts of interest the reviewer 
may have. Section 681.25 suggests how you should do that and explains 
what you should do when a reviewer does have a possible conflict.
    (d) Should an employee of another Government agency have an interest 
in a proposal or other application submitted by anyone other than that 
agency, do not talk or correspond with that employee at all without 
first consulting an ethics counselor. He or she could inadvertently 
violate a criminal statute.
    (e) You ``handle'' a proposal or other applicaton if you recommend a 
decision on it, make or approve the decision, or otherwise substantially 
influence the decision. If you are a grants officer, contracts officer, 
financial official, or lawyer you are affected if you play a significant 
role in decisions on award budgets or terms. If in doubt, consult an 
ethics counselor in the Office of the General Counsel.
    (f) This part covers only conflicts and potential conflicts in 
handling proposals and other award-related applications. Conflicts or 
potential conflicts in handling other matters are covered in 
Sec. 683.20.

[47 FR 32135, July 26, 1982, as amended at 48 FR 52732, Nov. 22, 1983]



Sec. 681.21  When you have a potentially biasing affiliation or relationship.

    (a) If you would normally handle a proposal or other application, 
but possess with respect to it a potentially biasing affiliation or 
relationship listed below, you must bring the matter to the attention of 
a conflicts official in your directorate or staff office. You must do so 
whether or not the affiliation or relationship is also designated 
``normally disqualifying'' or ``automatically disqualifying''. (Some 
affiliations or relationships are neither.) The conflicts official will 
determine how the matter should be handled and will tell you what 
further steps to take.
    (b) Affiliations with an applicant institution. (1) Current 
appointment at the institution as professor, adjunct professor, visiting 
professor, or the like [automatically disqualifying].
    (2) Current employment or being under consideration for employment 
at the institution [automatically disqualifying].

    Note: This may include employment via a consulting or advisory 
arrangement; check with an ethics counselor.

    (3) Any formal or informal reemployment arrangement with the 
institution [automatically disqualifying].
    (4) Current membership on a visiting committee or similar body at 
the institution [automatically disqualifying, but only for proposals or 
applications that originate from the department, school, or facility 
that the visiting committee or similar body advises].
    (5) Ownership of the institution's securities or other evidences of 
debt [automatically disqualifying].

    Note: Minor or indirect holdings may be exempted; see Sec. 680.21 or 
check with an ethics counselor.

    (6) Any office, governing board membership, or relevant committee 
chairmanship in the institution [automatically disqualifying].


[[Page 225]]


    Note: Ordinary membership in a professional society or association 
is not considered an office.

    (7) Current enrollment as a student [normally disqualifying, but 
only for proposals or applications that originate from the department or 
school in which one is a student].
    (8) Receipt and retention of an honorarium or award from the 
institution within the last twelve months [automatically disqualifying].
    (c) Relationships with an investigator, project director, or other 
person who has a personal interest in the proposal or other application. 
(1) Known family or marriage relationship [automatically disqualifying 
if the relationship is with a principal investigator or project 
director].
    (2) Business or professional partnership [automatically 
disqualifying].
    (3) Employment at the same institution within the last 12 months.
    (4) Past or present association as thesis advisor or thesis student.
    (5) Collaboration on a project or on a book, article, report, or 
paper within the last 48 months.
    (d) Other affiliations or relationships. (1) Any affiliation or 
relationship of your spouse, of your minor child, of a relative living 
in your immediate household or of anyone who is legally your partner 
that you are aware of and that would be covered by (b) or (c) of this 
section, if it were yours [disqualifying just as if the affiliation or 
relationship were yours, except for receipt by your spouse or relative 
of an honorarium or award, which is not necessarily disqualifying].
    (2) Any other relationship, such as close personal friendship, that 
you think might tend to affect your judgments or be seen as doing so by 
a reasonable person familiar with the relationship.



Sec. 681.22  ``Automatically disqualifying''; ``normally disqualifying''.

    (a) Automatically disqualifying. If you have an interest, 
affiliation, or relationship that Sec. 681.21 designates ``automatically 
disqualifying'', you should disqualify yourself from handling the 
affected proposal or other application. You must not participate in 
handling it under any circumstances. BE CAREFUL: in most cases a 
violation of this rule would be a Federal crime.
    (b) Normally disqualifying. If you have an interest, affiliation, or 
relationship that Sec. 681.21 designates ``normally disqualifying'', you 
should disqualify yourself from handling the affected proposal or other 
application, unless specifically directed to do otherwise by the 
conflicts official.



Sec. 681.23  When a prospective, current, or recent NSF employee has an involvement or interest.

    (a) If you become aware that a prospective, current, or recent NSF 
employee has an involvement or interest in any proposal or other 
application you are handling, you must bring the matter to the attention 
of a directorate conflicts official. For this purpose a member of the 
National Science Board is an employee. The conflicts official will 
decide how the matter should be handled and instruct you accordingly. If 
the file reflects that a conflicts official has already been consulted 
and has decided how the matter should be handled, you may proceed as the 
conflicts official has directed unless something of possible 
significance has changed.
    (b) What constitutes ``an involvement or interest''. A prospective, 
current, or recent NSF employee ``has an involvement or interest'' in a 
proposal or other application if the employee is, was, or will be a 
member of the research group or project staff involved. If the employee 
was a member of a research group, but has since ceased working on the 
project and with the group, the employee no longer has an involvement or 
interest. Unless there has been such a severance, however, appointment 
of a substitute principal investigator or substitute negotiator would 
not affect the requirement for consulting a conflicts official.
    (c) Finding out about it. How do you find out that someone who has 
an involvement or interest in a proposal or application is a current, 
prospective, or recent NSF employee? There are four possibilities:
    (1) The proposal or application might say so.
    (2) The Foundation's principal investigator/project director file 
that you

[[Page 226]]

routinely check when beginning work on a new proposal will usually 
indicate that a listed investigator is a current, prospective, or recent 
NSF employee if that is the case. The mechanism by which this is 
arranged is explained in Sec. 681.33.
    (3) You might receive a copy of a memorandum from another NSF 
official indicating that an investigator on a proposal already pending 
or an award already active has become a prospective employee. The 
circumstances under which such a memorandum will be sent to you are also 
explained in Sec. 681.33.
    (4) You might happen to know or learn of the person's NSF employment 
or prospective employment through your other activities.
    (d) Your responsibility. No matter how you find out, once you do, it 
is your responsibility to bring the matter to the attention of a 
directorate conflicts official--unless, of course that has already been 
done. If in doubt, consult the conflicts official or an ethics 
counselor.

[47 FR 32135, July 26, 1982, as amended at 48 FR 52732, Nov. 22, 1983]



Sec. 681.24  Directorate conflicts officials.

    Your directorate or office is responsible for letting you know who 
your conflicts officials are. If you do not know, check with the office 
of the assistant director or office head. Subpart D (Secs. 681.40 
through 681.44) explains the responsibilities of the conflicts officials 
and provides guidance for them.



Sec. 681.25  Possible conflicts of peer reviewers.

    (a) You must ask each peer reviewer of any proposal or similar 
application you are handling to indicate any possible conflicts of 
interests the reviewer may have.
    (b) In the case of mail review, you may do this by including in the 
letter requesting the review the following language:

    If you have any relationships with the institution or the persons 
submitting this proposal, please consider whether they could be 
construed as creating a conflict of interests for you. Please describe 
in your own words any relationship that might be so construed. You may 
use a separate piece of paper and attach it to your review. Regardless 
of any such relationships, we would like to have your review unless you 
believe you cannot be objective.

    (c) In the case of panel review, you should make an oral request of 
the panel members, essentially as follows:

    If when we come to consider any particular proposal, you recognize 
that you have a relationship with the institution or persons submitting 
the proposal that could be construed as creating a conflict of 
interests, please let me know. I'll ask you to describe the relationship 
in your own words and will determine from your description what to do 
about the situation. You must not participate in reviewing any 
application in which you or a member of your immediate family or an 
organization of which you are or may become a part has a financial 
interest. Otherwise, we'll often just make a note in the file to 
consider when making final recommendations.

    (d) You may use the list in Sec. 681.21 as a guide in responding to 
reviewer questions about the relationships that should be considered. 
Section 684.15 explains when a panel reviewer, like any other ``special 
employee'', must be excused from review of an application because of a 
financial interest. Otherwise, no advance disqualification of reviewers 
is required. There may be other circumstances, though, in which you and 
the reviewer will conclude that the review would have to be disregarded 
and would thus be a waste of the reviewer's time.
    (e) You should record in the proposal file all interests, 
affiliations, and relationships revealed by reviewers or otherwise known 
to you. You should determine how, if at all, those interests, 
affiliations, or relationships ought to affect the use of the review in 
assessing the proposal. You should describe in the file both your 
determination and the reasoning behind it.



Subpart C--Identifying Prospective, Current, or Recent NSF Employees and 
           Proposals or Awards in Which They Have an Interest



Sec. 681.30  General.

    Sections 681.23 and 681.43 provide for special handling of any 
proposal or

[[Page 227]]

other application in which a prospective, current, or recent NSF 
employee has an involvement or interest. Section 681.23(c) explains 
generally how an official who handles a proposal or application might 
learn that a person who has an involvement or interest is a prospective, 
current, or recent employee. This subpart:
    (a) Explains more precisely who is a ``recent employee'', or 
``prospective employee'' (Sec. 681.31);
    (b) Identifies responsibilities of the recruiting directorate or 
office when a person becomes a ``prospective employee'' (Sec. 681.32);
    (c) Explains how the recruiting directorate should inform others 
when it becomes clear that a prospect will become an NSF employee 
(Sec. 681.33(a)); and
    (d) Requires the Assistant Director for Administration to provide 
for ``flagging'' the principal investigator/project director (PI/PD) 
file to indicate that a person listed there is a prospective, current, 
or recent NSF employee (Sec. 681.33(d)).



Sec. 681.31  ``Recent employee''; ``prospective employee''.

    (a) Recent employee. Any former NSF employee who left the NSF within 
the year before the affected proposal or other application is filed with 
the NSF should be considered a recent NSF employee.
    (b) Prospective employee threshold. As soon as those recruiting have 
expressed interest in a particular person in connection with a specific 
opening and have received some indication of reciprocal interest, that 
person should be considered a prospective NSF employee--even though no 
actual offer has been made and even though there is substantial doubt 
that one would be accepted if it were made. More specifically:
    (1) NSF officials who have an opening on the horizon often discuss 
it with persons outside the NSF. If the discussion is just a general 
effort to make members of the appropriate community aware of the opening 
in the hope that applicants will appear, it makes no one a prospective 
employee. But if the discussion is with a particular individual whose 
candidacy is sought for a particular position, that individual should be 
considered a prospective employee if (but only if) the candidate 
expresses some interest. The expression of interest need not be strong. 
It could amount to no more than a willingness to ``think it over'' or 
come in for a talk. After such an expression of interest NSF officials 
could be influenced in decisions on proposals or other applications by 
their hopes of getting the candidate to consider the job or to take it.
    (2) When a specific vacancy is imminent, the NSF usually solicits 
and receives applications. Some applications may come from persons in 
whom there is little or no interest. Others may come from persons the 
recruiters have never met. Conflicts are unlikely to arise in such cases 
unless and until the recruiters become sufficiently interested to 
initiate some direct contact with the applicant, typically by suggesting 
an interview. At that point the applicant should be considered a 
``prospective employee''. If no direct contact is ever initiated outside 
the personnel mechanics, the applicant need not be considered a 
prospective NSF employee.



Sec. 681.32  What the recruiting directorate or office should do when a person becomes a ``prospective NSF employee''.

    (a) Special attention and special handling of proposals or other 
applications in which a prospective NSF employee has an involvement or 
interest are not required automatically. They are required under 
Sec. 681.23(a) only if an official handling the proposal or application 
actually becomes aware that a person involved or interested is a 
prospective employee. Whether to inform other officials that a person is 
a prospective employee is within the discretion of a conflicts official 
of the recruiting directorate or office.
    (b) If those who are recruiting determine that a person has become a 
prospective employee under these guidelines, they are responsible for 
bringing that fact and subsequent developments to the attention of a 
directorate or office conflicts official. This should be an official who 
is not directly involved in the recruitment and does not immediately 
supervise the position for which

[[Page 228]]

the prospective employee is being considered.
    (c) The conflicts official is responsible for deciding whether, 
when, and to what extent proposals or other applications involving the 
prospect require special attention and special handling. See 
Sec. 681.44.



Sec. 681.33  Informing others about incoming employees; ``flagging''.

    (a) When a ``prospective employee'' becomes an ``incoming 
employee''. Each directorate is responsible for informing the Division 
of Information Systems by memo whenever a prospective employee listed in 
the NSF PI/PD (principal investigator/project director) file seems 
likely in fact to become an NSF employee. The memo should be sent at 
least as soon as the incoming employee enters into discussions of grade 
and salary with personnel officials. It might be sent sooner should the 
responsible conflicts official of the recruiting directorate or office 
find that appropriate. The memo should identify all active NSF awards 
and pending NSF proposals with which the prospective employee has an 
association. This should be checked with the PI/PD file and with the 
prospective employee.
    (b) Informing other divisions. The recruiting directorate is also 
responsible for sending copies of its memo to each NSF division or 
office that is responsible for such an active award or pending proposal.
    (c) ``Signals off''. If the prospect does not become an NSF employee 
after all, the recruiting directorate is responsible for notifying by 
memo all those who received its original memo.
    (d) ``Flagging''. The Assistant Director for Administration is 
responsible for ``flagging'' the PI/PD file to indicate every person 
listed there who is a current or recent NSF employee or who has been 
identified in a memo from the recruiting directorate or office as an 
incoming NSF employee.



         Subpart D--Guidance for Directorate Conflicts Officials



Sec. 681.40  Summary; responsibilities of conflicts officials.

    (a) If your directorate or staff office has designated you as a 
conflicts official, you have three responsibilities under these 
regulations:
    (1) You determine how to handle a proposal or other application when 
an official who would normally handle it possesses with respect to it an 
affiliation or relationship listed in Sec. 681.21. The potential 
conflicts you should be concerned with in such a case are generally 
apparent from the nature of the affiliation or relationship.
    (2) You determine how to handle a proposal, or other application 
when a prospective, current, or recent NSF employee or a current member 
of the National Science Board has an involvement or interest in it. 
Section 681.43 describes the potential conflicts you should be concerned 
with in such a case.
    (3) You determine whether, when, and to what extent proposals or 
other applications involving a prospective NSF employee require special 
attention and special handling. Section 681.44 offers guidance for such 
determinations.
    (b) Section 681.41 describes the underlying considerations you are 
called upon to accommodate and balance in making these determinations. 
Section 681.42 describes the disclosure that is required in all cases 
that come to you for determination and the forms of special handling you 
might require in such cases. It also explains what you should do when a 
particular relationship is considered ``automatically disqualifying'' or 
``normally disqualifying''.

[47 FR 32135, July 26, 1982, as amended at 48 FR 52732, Nov. 22, 1983]



Sec. 681.41  Making determinations: underlying considerations.

    When you are called upon to make any of the determinations described 
in Sec. 681.40, what considerations should influence you in deciding 
what to do?
    (a) The primary purpose of your involvement is to remove or limit 
the influence of any ties to an applicant institution, investigator, 
etc. that you think could affect the decisions of an NSF official. Keep 
in mind that an official may be influenced by such ties without 
deliberate bias Do not, however, ``strain at gnats''.

[[Page 229]]

    (b) A secondary purpose is to preserve the trust of the scientific 
community, the Congress, and the general public in the integrity, 
effectiveness, and even-handedness of the NSF and its award-review 
processes. This requires you to be concerned with appearances as well as 
actualities.
    (c) An important countervailing consideration is to avoid distorting 
NSF judgments on proposals and other applications by disqualifying those 
who are most competent to make the judgments. So far as possible, you 
should ensure that those who handle a proposal or other application are 
competent in the scientific or technical fields involved and are capable 
of judging the standing of a proposal in comparison with other proposals 
in the same field.
    (d) Occasionally, action on a proposal or other application raises 
significant policy questions. As far as possible, you should avoid 
preventing an official who is responsible for the policy judgments in 
question from exercising that responsibility.
    (e) Finally, you can and should consider the extra paperwork, 
effort, and expense to the taxpayer required by any special handling you 
might require.

Except where an interest, affiliation, or relationship is designated 
``normally disqualifying'' or ``automatically disqualifying'', finding 
ways to accommodate and balance these competing considerations is left 
to your ingenuity and judgment.



Sec. 681.42  Disclosure, disqualification, and other special handling.

    (a) Disclosure. In every case brought to you as a conflicts 
official, you should prepare a simple memo for the file. The memo need 
not be in any particular format and may be handwritten. It should 
identify the potential conflicts problem involved and should explain 
what special handling, if any, you have required. Even if you require no 
additional special handling, the memo will ensure that the Foundation is 
open about the potential conflict and attentive to it. It will allow 
those reviewing the recommended action at higher levels to consider any 
effect the potential conflict might have had and alert them to 
scrutinize the action more closely. It will allow meaningful audit and 
oversight and so protect those involved, including you. And it will help 
preserve public trust in the NSF and in NSF decisions.
    (b) Disqualification. In some cases disclosure alone will be 
insufficient to protect against distortion of NSF decisions or 
undermining of public trust in the NSF and NSF decisions. On conflicts 
considerations alone, disqualification of the official who possesses the 
potential conflict is the best solution. But if the official has unique 
scientific or technical competence, is uniquely qualified to judge the 
competitive standing of a proposal, or has responsibility for policy 
judgments raised in the decision--disqualification of that official 
would have serious disadvantages. Although decisions on the kind and 
degree of special handling that should be required are often left to 
your discretion, more inflexible disqualification rules do apply in the 
case of certain interests and affiliations.
    (1) If an interest or affiliation is labelled ``automatically 
disqualifying'' in Sec. 681.22, you must disqualify any official who 
possesses such an interest or affiliation with respect to the proposal 
or application concerned. In most cases, the disqualification is 
required by criminal law. If you were to allow the official to take any 
part in the handling of the proposal or application, you would place him 
or her (and conceivably even yourself) in jeopardy of fine or 
imprisonment.
    (2) If an interest or affiliation is labelled ``normally 
disqualifying'' in these regulations, you should normally disqualify any 
official who possesses such an interest or affiliation with respect to 
the proposal or application concerned. If unusual circumstances require 
that such an official be allowed to act on the proposal or application, 
your memo to the file should carefully explain those circumstances and 
what other precautions you have taken to minimize the potential for 
bias. Even then, you should not proceed until you have consulted an 
ethics counselor and the ethics counselor concurs.
    (3) Even if an interest or affiliation is not labled 
``automatically'' or ``normally'' disqualifying, disqualification

[[Page 230]]

may be called for. Your judgment should depend heavily on the extent to 
which someone else who will be able to substitute effectively for the 
official might be disqualified.
    (c) Other special handling. You are not confined to relying either 
on disclosure only or on complete disqualification. Other, intermediate 
solutions can also go a long way toward removing or minimizing any 
potential for bias. For example:
    (1) Sometimes you might allow a case to be handled normally, but 
provide for extra peer reviews or extra review within the NSF.
    (2) Sometimes you might have an official perform some functions but 
not others. The official might be able to supply a list of potential 
reviewers, for example, without running into serious conflicts. Or the 
official might be consulted by a substitute official on the competitive 
range in the program where the substitute is competent enough to read 
reviews and judge the merit of a proposal, but ill-prepared to determine 
where that places the proposal among those competing for funds within 
the same program.
    (3) In some cases scientists from outside the NSF could be relied on 
to a greater extent than usual. For example, suppose a substitute NSF 
official has less than optimal technical competence or less than optimal 
sense of the competitive range in the affected program. Such a 
substitute might nonetheless be able to stand in if aided by an outsider 
who is more familiar with the scientific subfield or the affected 
program or both. The outsider might be a former NSF official, a panel 
member, a scientist from a sister agency, or in an unusual case, a 
special consultant.
    (4) In any case involving a current member of the National Science 
Board, you must always require that any proposed award, additional 
funding for an award, or continuing grant increment be presented to the 
Board for its information before any final action is taken.
    (d) Consolidated handling of related cases. If you anticipate a 
number of cases that will involve the same person and the same general 
circumstances, you may make a single determination and issue a single 
memo covering all of the cases. For example, you might issue a memo 
indicating that a rotator will be disqualified from handling any 
proposal or application from his or her home institution, and saying who 
will handle any such proposal or application instead. A copy of this 
memo should be placed in the file for each affected proposal or award.

[47 FR 32135, July 26, 1982, as amended at 48 FR 52732, Nov. 22, 1983]



Sec. 681.43  Potential conflicts when an NSF employee has an involvement or interest.

    (a) When a prospective, current, or recent NSF employee has an 
involvement or interest in a pending proposal or other application, you 
should look for and deal appropriately with the five types of potential 
conflicts described in the rest of this section.
    (b) Recruiter's conflicts. These are potential conflicts that could 
arise if an NSF official who is recruiting a prospective employee were 
simultaneously to handle a proposal or other application in which the 
prospective employee has an interest. You should identify those actively 
interested in recruiting the prospective employee and look for ways to 
limit their involvement in the handling of the proposal or other 
application. In particular:
    (1) The person who would be the immediate supervisor of the 
prospective employee usually will have an especially active interest in 
successful recruiting. You should treat that interest as ``normally 
disqualifying''.
    (2) Those directly involved in discussions with the prospective 
employee will also have an interest in successful recruiting. You should 
consider their possible conflicts.
    (3) Officials at higher echelons who are not directly involved in 
the particular recruitment may still have an interest in successful 
recruiting within their organizations. You should consider their 
possible conflicts.
    (c) Superior's conflicts. These are potential conflicts that could 
arise if an NSF official were to handle a proposal or other application 
in which one of the official's subordinates has an interest. In 
particular:

[[Page 231]]

    (1) The immediate supervisor of an employee usually will have an 
especially active interest in having the employee happy and in 
maintaining good relations with the employee. You should treat the 
immediate supervisor's interest as ``normally disqualifying'' if the 
interested employee is a prospective or current employee. You need not 
do so, however, in the case of a recent employee, for the supervisor's 
interest diminishes when the employment relationship ends.
    (2) Persons at higher echelons might also be influenced by an 
interest in having the employee happy. You should consider whether their 
involvement in handling the proposal or application can or should be 
limited.
    (d) Subordinate's conflicts. These are potential conflicts that 
could arise if an NSF official were to handle a proposal or other 
application in which the official's immediate superior or someone at a 
higher echelon in the official's ``chain of command'' has an interest. 
In particular:
    (1) An NSF official would be placed in a particularly difficult 
position if asked to act on a proposal or other application in which the 
official's boss has an interest. Thus you should treat the immediate 
subordinate of a prospective or current employee as having a ``normally 
disqualifying'' relationship and only under the most special 
circumstances allow him or her to have any part in handling the proposal 
or application. You need not necessarily disqualify one who was the 
immediate subordinate of a recent employee, however, since the potential 
conflict would be substantially diminished once the supervisor-
subordinate relationship ends.
    (2) You may sometimes have to allow less immediate subordinates at 
lower echelons to play a role if there is not to be serious loss of 
technical competence and awareness of competitive range in the program 
affected. But you should take particular care in involving such lower-
echelon subordinates. Disqualification would be preferable if it is 
workable. One possibility if disqualification is not workable may be to 
allow the official handling the proposal to stay anonymous, dealing with 
investigators and the grantee institution through another NSF official--
perhaps a senior official or a grants officer. Other types of special 
handling that might be useful in such a case are described in 
Sec. 681.42(c).
    (e) Professional associate's conflicts. These are potential 
conflicts that could arise if an NSF official were to handle a proposal 
or other application in which a close professional associate at the NSF 
has an interest. In particular:
    (1) You may have to consider disqualification of a very close 
associate of the interested employee, particularly where professional 
association may have led to personal friendship.
    (2) When the degree of professional association and personal 
acquaintance involved is only what normally arises from service within 
the same organizational unit, little more than disclosure should 
normally be required.
    (f) Reviewer's conflicts. These are potential conflicts that could 
arise when reviewers are asked to pass upon a proposal involving the 
interests of a scientist who will later be passing upon their proposals 
as an NSF program official. To avoid them:
    (1) All files, active and inactive, that involve research or a 
research group with which the employee was or is associated should be 
sequestered to protect the anonymity of reviewers.
    (2) To the extent possible you may want to provide more protection 
by selecting as peer reviewers persons who are not supported by any 
program for which the interested official is responsible.



Sec. 681.44  Handling prospective-employee determinations.

    (a) You may be called upon to determine whether, when, and to what 
extent proposals or other applications that involve a prospective 
employee require special attention and special handling. You should be 
consulted as soon as a person becomes a prospective employee. The 
procedure for this is described in Sec. 681.32.
    (b) Nature of possible conflicts. Actual or potential conflicts of 
interests can arise in such a situation if any of those who would handle 
a proposal or other application either is trying to recruit the 
prospective employee or would be a

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subordinate, supervisor, or close colleague of the potential employee.
    (c) When you should take action. If there is a significant 
possibility that such actual or potential conflicts could improperly 
influence decisions on proposals or other applications or awards, you 
must institute special handling as described in Secs. 681.42 and 681.43. 
In the case of proposals and awards outside your own directorate or 
office, you should do that by notifying officials of the other 
directorate. A conflicts official of that directorate or office will 
determine what special handling may be necessary there.
    (d) Avoid premature action. However, you should avoid unnecessarily 
early disclosure that a person is under consideration for an NSF 
position, for two reasons:
    (1) That a person is considering a change of jobs is often 
confidential, particularly in earlier stages; and
    (2) That an interested person is a prospective NSF employee cannot 
affect an official's judgment on a proposal or other application if the 
official has no knowledge of the prospective employment.

Since an official who works in one NSF organizational unit is less 
likely to know that a person is under consideration for employment in a 
different unit, and is also less likely to be influenced by any such 
knowledge, it normally makes sense to delay notifying officials outside 
the recruiting unit until it seems quite likely that the prospect will 
indeed become an NSF employee.



PART 682--REPRESENTATIONAL RESTRICTIONS AND INVOLVEMENT WITH PROPOSALS AND PROJECTS DURING AND AFTER NSF SERVICE--Table of Contents




         Subpart A--The Representational Restrictions Generally

Sec.
682.10  Summary; the four basic representational restrictions.
682.11  ``Official responsibility''; ``personally involved''.
682.12  Representation covered.
682.13  ``Matters'' covered.
682.14  Restriction on your partners.

Subpart B--Involvement With Proposals and NSF--Supported Projects During 
                          and After NSF Service

682.20  General; restricted representational activities vs. permitted 
          research or educational activities.
682.21  Proposals and projects over which you had official 
          responsibility or with which you were personally involved.
682.22  When you are or would be principal investigator.
682.23  Compensation or reimbursement of expenses from Federal awards.

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supplement and 
Regulations of the Office of Personnel Management, 5 CFR 735.104.

    Source: 47 FR 32140, July 26, 1982, unless otherwise noted.



         Subpart A--The Representational Restrictions Generally



Sec. 682.10  Summary; the four basic representational restrictions.

    (a) NSF employees are subject to four basic restrictions on 
representing private parties (not the Government) in dealings with other 
Federal officials. The first of these applies while you are working for 
the Government. The other three apply for varying periods afterward; 
they are thus known collectively as the post-employment restrictions.
    (1) Current-employee restriction. During your Federal employment you 
must not represent private parties in dealings with any federal official 
on any proposal, project, or other matter.
    (2) One-year NSF restriction. For one year after you leave NSF 
employment you must not represent private parties in dealings with any 
NSF official on any proposal, project, or other matter.
    (3) ``Official responsibility'' two-year restriction. For two years 
after you leave NSF employment you must not represent private parties in 
dealings with any Federal official on any proposal, project, or other 
matter involving specific parties if the same matter was active under 
your official responsibility during your last year at the NSF.
    (4) ``Personal involvement'' permanent restriction. You must never 
represent private parties in dealings with any Federal official on any 
proposal,

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project, or other matter involving specific parties if you were 
personally involved with the same matter as an NSF employee.
    All four restrictions have to do with representing private parties 
in dealings with NSF officials or other Federal officials. Here are the 
distinguishing features:

                                                                                                                
                                                                                                                
                                                                                                                
Current          During Federal employment.....  Any Federal official......  Any matter.                        
 employee                                                                                                       
 restriction.                                                                                                   
One-year NSF     For one year after NSF          Any NSF official..........  Any matter.                        
 restriction.     employment.                                                                                   
``Official       For two years after NSF         Any Federal official......  Any matter involving               
 responsibility   employment.                                                 specific parties                  
 '' two-year                                                                  that was under your               
 restriction.                                                                 official                          
                                                                              responsibility.                   
``Personal       Forever.......................  Any Federal official......  Any matter involving               
 involvement''                                                                specific parties in               
 permanent                                                                    which you were                    
 restriction.                                                                 personally                        
                                                                              involved.                         
----------------------------------------------------------------------------------------------------------------

    (b) Examples. The following examples illustrate the application of 
these rules.

    Example 1: You have been on the Physics faculty at the University of 
Wyoming and have been principal investigator on grants from the NSF and 
from the Department of Defense. You come to the NSF for a two-year stint 
as a section head. While you are away a colleague acts as principal 
investigator on both your grants. During your stint at the NSF the 
Department of Defense grant is about to expire. The substitute principal 
investigator files a new proposal with DOD. She asks you to call the DOD 
program officer, with whom you have great credibility from past 
dealings, to vouch for her excellence and to urge that he continue to 
fund the Wyoming work. The current-employee restriction prohibits you 
from doing so.
    Example 2: Same underlying facts as Example 1. After your stint at 
the NSF you return to Wyoming and want again to become principal 
investigator on the NSF-supported work. You may do so, but the one-year 
NSF restriction prohibits you from calling, writing, or visiting NSF 
officials to represent yourself or your institution on the award.
    Example 3: Same facts as Examples 1 and 2. A few months after your 
return it comes time to file a new proposal for another NSF award so 
that you can continue the line of investigation you have been pursuing 
with the NSF support. You may prepare a proposal for your institution 
and may be listed as principal investigator, but the one-year NSF 
restriction prohibits you from calling, writing, or visiting NSF 
officials to represent yourself or your institution on the proposal.
    Example 4: Same underlying facts as Example 1. During the last year 
of your tenure as section head another physics proposal came in from the 
University of Wyoming. Though the program officer who handled the peer 
review and submitted a recommendation was in your section, you 
disqualified yourself from any participation in handling the proposal. A 
three year continuing grant was awarded. Within two years after you 
return to Wyoming a problem comes up with the last increment of the 
continuing grant. You have meanwhile become department chairman. As 
department chairman you would normally confer with NSF officials about 
the problem and try to resolve it. The ``official responsibility'' two-
year restriction prohibits you from doing so. If the problem came up 
more than two years after you left the NSF, however, you would be free 
to confer with NSF officials. The ``official responsibility'' two-year 
restriction would no longer apply, and the ``personal involvement'' 
permanent restriction would not apply because you had no personal 
involvement in handling the proposal while at the NSF.
    Example 5: While you were Director of the Division of Grants and 
Contracts at the NSF you personally approved the terms of a contract to 
the Solar Equipment Company for development of solar heating equipment. 
Subsequently, responsibility for this contract was transferred to the 
Department of Energy. After you retire from your NSF position, you 
accept a position with the Solar Equipment Company. A problem comes up 
under the same contract, and you would normally be responsible for 
resolving it in discussions with DOE officials. The ``personal 
involvement'' permanent restriction prohibits you from doing so. That 
you would be dealing with DOE officials, not NSF officials, makes no 
difference: the restriction applies to dealings with any Federal 
official.

    (c) Proposals and projects. Subpart B (Secs. 682.20 through 682.23) 
is devoted entirely to the application of the representational 
restrictions in relation to proposals and projects. In relation to 
proposals and projects you may rely entirely on subpart B.
    (d) Other matters. For most current and former NSF employees the 
representational restrictions will rarely apply except in relation to 
proposals and projects. You are nonetheless responsible for making 
yourself familiar

[[Page 234]]

with the restrictions and abiding by them in relation to all covered 
matters.
    (e) Terms and effect. The wording of the restrictions as presented 
in this section and Sec. 682.20 has been simplified substantially from 
the wording of the underlying statutes, so that they will be easier to 
understand. In the process, they have also been deliberately overstated, 
with exceptions and ``escape hatches'' left out, so that your initial 
reaction will be to interpret them conservatively. The next three 
sections fill in critical concepts: what it means to have ``official 
responsibility'' or to be ``personally involved'' (Sec. 682.11); what is 
and is not representation subject to the restrictions (Sec. 682.12); and 
which are the matters on which representation is restricted 
(Sec. 682.13). In the process they explain the exceptions and 
refinements left out in this section.
    (f) Partners. During your Federal service only, there is a further 
restriction that applies to any partner of a business or professional 
partnership to which you belong. If you belong to any such partnership, 
see Sec. 682.14.
    (g) Source statutes and penalties for violation. For the most part 
these restrictions derive from Federal criminal statutes and apply to 
officials of all Federal agencies. In one respect the NSF rules are 
stricter. At other agencies the one-year agency restriction applies only 
to former high-ranking officials; the one-year NSF restriction applies 
to all former NSF employees. Violation of the statutory provisions can 
lead to criminal prosecution (the penalties are a fine of up to $10,000 
or imprisonment for up to two years of both) or to civil debarment from 
dealings with the NSF (for up to five years). A violation of the NSF's 
current-employee restriction can lead to disciplinary personnel action 
against an employee.
    (h) Consultation. If in doubt about any of the rules in this part, 
consult an ethics counselor in the Office of the General Counsel. You 
are welcome to consult an ethics counselor for this purpose even after 
you leave the NSF.



Sec. 682.11  ``Official responsibility''; ``personally involved''.

    (a) The ``official responsibility'' two-year restriction applies 
only if you had official responsibility for the matter in question 
during your last year at the NSF. The ``personal involvement'' permanent 
restriction applies only if you were personally involved with the matter 
in question while at the NSF. This section elaborates the concepts of 
``official responsibility'' and ``personal involvement''.
    (b) ``Official responsibility''. You had ``official responsibility'' 
for a matter if you had direct authority to approve, disapprove, or 
otherwise direct Government actions regarding that matter, and it was 
actually pending during your tenure. It does not matter whether your 
authority was intermediate or final, whether it was exercisable alone or 
with others, or whether it was exercisable personally or through 
subordinates. Specifically:
    (1) The scope of your ``official responsibility'' is ordinarily 
determined by the responsibilities of position you filled or the 
organization you headed.
    (2) Any matter under consideration in the NSF is under the 
``official responsibility'' of the Director and of each intermediate 
supervisor who has responsibility for any employee who actually 
participates in the matter within the scope of his or her duties.

    Example: A proposal under consideration within a particular program 
is under the ``official jurisdiction'' of the program officer who 
actually handles it, of the program director for the program, of the 
responsible section head, of the responsible division director, of the 
responsible assistant director, and of the Director of the NSF. Whether 
it is under the ``official responsibility'' of any of their deputies 
depends on the responsibilities assigned to the deputies by their 
position descriptions, by any formal delegations to them, or by an other 
legally effective means.

    (c) ``Personal involvement''. ``Personally involved'' is short for 
the following statutory language:

    ``Participated personally and substantially as an officer or 
employee through decision, approval, disapproval, recommendation, the 
rendering of advice, investigation or otherwise''.

In other words:

[[Page 235]]

    (1) You may have ``participated'' and so have been ``personally 
involved'' even though you actually made none of the important 
decisions. You ``participated'' if you made recommendations, rendered 
advice, conducted an investigation, or otherwise contributed. Moreover, 
``approval'' is specifically covered. Giving a required approval, 
however perfunctorily, is covered if the action could not have been 
taken over your objection.
    (2) On the other hand, there is a distinction between personal 
involvement and official responsibility. If you could have intervened in 
the matter because of your position, but in fact did not, you were not 
``personally involved''.
    (3) You must have participated ``personally''. You participated 
personally if you gave directions or instructions about the matter to a 
subordinate who participated directly. If a subordinate participated 
without any direction or instruction from you about that particular 
matter, and you did not otherwise participate, you did not participate 
personally.
    (4) You must have participated ``substantially''. That requires more 
than knowledge of what was going on, perfunctory involvement, or 
involvement on an administrative or peripheral issue. Your participation 
was ``substantial'' if it was significant to the outcome or would have 
seemed so to a reasonable outside observer, considering not only the 
effort you devoted to the matter but the influence of your effort on the 
outcome. A single act of a critical step, such as an approval, may be 
substantial. A series of time-consuming peripheral involvements, such as 
review solely for compliance with administrative or budgetary controls, 
may be insubstantial.



Sec. 682.12  Representation covered.

    (a) Representational dealings. All four of the basic 
representational restrictions are restrictions on representing private 
parties in dealing with NSF officials or other Federal officials. The 
dealings covered are encompassing. They include any formal appearance 
before an official; any meeting with an official; and any letter, phone 
call, or other communication with an official.
    (b) Intent to influence and potential controversy required. Contacts 
as a representative without intent to influence the officials contracted 
are not prohibited. Nor are contacts as a representative in connection 
with a routine request not involving a potential controversy. For 
example, you may ask a question about the status of a particular matter, 
as long as there is no implicit attempt to influence the outcome. You 
may request publicly available documents. You may communicate with an 
official to impart purely factual information as long as the 
communication has no connection with an adversary proceeding.

    Example: While an NSF employee you helped write the current contract 
for the Kitt Peak National Observatory, with which you are now a staff 
scientist. You are asked to make a scientific presentation to NSF 
officials at the annual review of the Kitt Peak program. You may do so. 
You may not, however, participate in or support any appeal for more 
funds for Kitt Peak during the review. Indeed, it would be better for 
you to not be present at all when funding and other contractual subjects 
are discussed. If you were not a staff scientist at Kitt Peak, but only 
a user, that would not change things for this purpose.

    (c) Assisting without appearing or communicating with officials. You 
are not prohibited from helping those who are representing a private 
party with Federal officials, as long as you do not yourself make an 
appearance or otherwise communicate with the officials. You may advise 
officials or representatives of the party, may make suggestions about 
whom they should contact and what they should say, and may even draft 
documents and letters, as long as you do not personally sign or transmit 
them. CAUTION: What is permitted under Federal law may be prohibited by 
rules of professional ethics, particularly if you are a lawyer.
    (d) Assisting by personal presence at an appearance or meeting. A 
former high-ranking employee (SES, GS-17, or above) who had official 
responsibility for a matter or was personally involved while a Federal 
employee may violate the criminal statutes by being present to assist 
others at a meeting with Federal officials or an appearance before them, 
even though the former employee never speaks with the Federal

[[Page 236]]

officials. The NSF goes further and asks that (whether high-ranking or 
not) if you would be barred from directly representing anyone in 
connection with any matter, you refrain from being personally present 
while others are meeting with NSF officials. In rare cases where there 
are special circumstances the General Counsel or the Director may waive 
this restriction to the extent consistent with the Government-wide law 
and regulations.
    (e) Dealings with officials of the legislative branch not covered. 
Where the basic representational restrictions refer to dealings with 
``Federal officials'', that covers officials of a Federal Executive-
branch or administrative agency and officials of Federal courts or 
administrative tribunals. It does not, however, encompass Members of 
Congress, their staffs, or other officials of the legislative branch.
    (f) Representing the United States. During your Government service, 
you may naturally represent your office, the NSF, or the Government (or 
anyone else, for that matter) with other Federal officials if the 
representation is part of your official duties. After your Government 
service, moreover, you may represent an office or agency of the 
Government in dealings with officials of another office or agency any 
time you are asked to do so.
    (g) Representing yourself. The ``official responsibility'' two-year 
restriction and the ``personal involvement'' permanent restriction do 
not apply if you represent only yourself. They would apply, however, if 
you were to represent yourself and another person, such as an 
institution or organization with which you are employed or affiliated. 
The current-employee representational restriction and the one-year NSF 
restriction would apply even if you were to represent only yourself. 
Even they, however, would not apply to:
    (1) Any expression of your views on policy issues, where the 
circumstances make obvious that you are only speaking as an informed and 
interested citizen, not representing any financial or other interests of 
your own or of any other person or institution with whom you are 
associated;
    (2) Any appearance or communication concerning matters of a personal 
and individual nature, such as your income taxes; your salary, benefits, 
or rights as a Federal employee; or the application of conflict-of-
interests rules to something you propose to do; or
    (3) Any appearance on your own behalf in any litigation or 
administrative proceeding.

They do apply, though, to contacts seeking grants or business, except 
for discussions about employment with an agency as a consultant or 
otherwise and to scientific or technical proposals, presentations, or 
communications. See Sec. 682.20.



Sec. 682.13  ``Matters'' covered.

    (a) Matters involving specific parties. The ``official 
responsibility'' two-year restriction an the ``personal involvement'' 
permanent restriction both cover only a ``matter involving specific 
parties''. Generally, such a matter is a specific proceeding affecting 
the legal rights of the parties to the proceeding or an isolatable 
transaction or related set of transactions between identifiable parties. 
A ``party'' may be either a person or an institution, and one such party 
other than the Government is enough.
    (1) In the context of the NSF a ``matter involving specific 
parties'' will usually consist of a proposal or bid, the award-or-
declination decision process with respect to it, any award that results, 
and any subsequent administrative action related to the project. Such 
``matters'' are covered in Subpart B of this part.
    (2) Otherwise, typical ``matters involving specific parties'' 
include other kinds of contracts or agreements; applications for 
permits, licenses, or the like; requests for rulings or similar official 
determinations; claims; investigations or audits; charges or accusations 
against individuals or firms; adjudicatory hearings; and court cases. 
These are relatively uncommon at the NSF, but when current or former NSF 
employees have been officially responsible for such matters or 
personally involved in them, the representational

[[Page 237]]

restrictions may apply. If in doubt consult an ethics counselor in the 
Office of the General Counsel.
    (b) Same or different matter. The ``official responsibility'' two-
year restriction and the ``personal involvement'' permanent restriction 
cover such a matter only if during your NSF service the same matter was 
under your official responsibility or you were personally involved in 
it. Except where guidance is provided in Subpart B of this part, you 
should not decide for yourself whether a ``matter involving specific 
parties'' is the same as one for which you had ``official 
responsibility'' or with which you were ``personally involved'' while at 
the NSF. Consult an ethics counselor in the Office of the General 
Counsel.
    (c) Other ``matters''. The current-employee restriction and the one-
year NSF restriction both cover matters that do not ``involve specific 
parties'' as well as those that do. Such broader ``matters'' include:
    (1) Determinations to establish or disestablish a particular program 
or set its budget level for a particular fiscal year;
    (2) Decisions to undertake or terminate a particular project;
    (3) Decisions to open or not open a contract to competitive bidding;
    (4) Decisions on particular NSF rules or formal policy, such as 
adoption or amendment of a resolution by the National Science Board, 
promulgation or amendment of an NSF regulation or circular, amendment of 
standard grant or contract terms, or changes to such NSF policy 
documents as Grants for Scientific Research and the Grants Policy 
Manual; and
    (5) Agency positions on particular legislative or regulatory 
proposals.

On the other hand, the statutory term is really not just ``matter'', but 
``particular matter''. The word ``particular'' is intended to exclude 
broad technical areas, policy issues, and conceptual work done before a 
program has become particularized into one or more specific projects. 
You should not, however, rely on this hazy distinction alone to take you 
out from under either of the representational restrictions that cover 
matters not involving specific parties without checking with an ethics 
counselor in the Office of the General Counsel.
    (d) Boundaries of matters not involving specific parties. In 
connection with the current-employee restriction and the one-year NSF 
restriction, you need not consider whether a ``matter'' is the same as 
or separate from any other matter. Those two restrictions cover any 
``matter'', whether or not you have previously had any responsibility 
for or involvement with it.



Sec. 682.14  Restriction on your partners.

    While you are a Federal official no person who is legally your 
partner in a business or professional partnership may act as agent or 
attorney for anyone in dealings with any other Federal official on any 
matter under your official responsibility or with which you are or have 
been personally involved as a Federal official. A partner who violates 
this rule commits a Federal crime punishable by a fine of up to $5000 or 
imprisonment for up to one year or both. In general, your partners may 
safely steer clear of this restriction by using the definitions and 
guidance in the earlier sections of this Subpart A, treating ``act as 
agent or attorney'' as equivalent to ``represent'' (it may actually be 
slightly less encompassing). They may consult on this restriction with 
attorneys in the Office of the NSF General Counsel. If they prefer to 
consult other counsel, the counsel should be directed to 18 U.S.C. 
207(g).



Subpart B--Involvement With Proposals and NSF-Supported Projects During 
                          and After NSF Service



Sec. 682.20  General; restricted representational activities vs. permitted research or educational activities.

    (a) Basic representational restrictions. The same four 
representational restrictions described in Subpart A of this part apply 
to representational activities involving proposals or projects.
    (1) Current-employee restriction. During your Federal employment you 
must not represent anyone (including yourself) in dealings with any 
Federal official on any proposal or project.

[[Page 238]]

    (2) One-year NSF restriction. For one year after you leave NSF 
employment you must not represent anyone (including yourself) in dealing 
with any NSF official on any proposal or project.
    (3) ``Official responsibility'' two-year restriction. For two years 
after you leave NSF employment you must not represent anyone else in 
dealing with any Federal official on any proposal or project if the same 
proposal or project was active under your official responsibility during 
your last year at the NSF.
    (4) ``Personal involvement'' permanent restriction. You must never 
represent anyone else in dealings with any Federal official on any 
proposal or project if you were personally involved with the same 
proposal or project as an NSF employee.
    (b) Examples. Examples 1 through 4 in Sec. 682.10(b) illustrate the 
application of these restrictions.
    (c) General effect. These representational restrictions do not 
preclude you from being involved as a researcher or educator with 
proposals submitted to the Government or projects supported by the 
Government. They do preclude you from negotiating with NSF officials or 
other Federal officials and from engaging in other representational 
activities intended to influence their decisions on certain proposals 
and projects.
    (d) Restricted representational dealings. If you write, call, visit, 
or otherwise communicate with an official you have ``dealt'' with the 
official. Those dealings are representational if you try to influence 
the official to suggest, recommend, or approve:
    (1) An award;
    (2) An award amount, a budget, or particular budget items;
    (3) Particular award terms or conditions;
    (4) An award amendment, increase, or extension;
    (5) An administrative approval; or
    (6) Any other action affecting a proposal or project.
    (e) Permitted research and educational activities. You do not engage 
in representational dealings, and so you violate none of the 
representational restrictions, by:
    (1) Participating in research or other work supported under an award 
from the NSF or another Federal agency;
    (2) Being listed as an investigator in a proposal or award;
    (3) Preparing a proposal that will be submitted to the NSF or 
another Federal agency (but if you prepare it during your NSF tenure, 
you must do so entirely on your own time);
    (4) Making a scientific or technical presentation to officials of 
the NSF or another Federal agency (at a site visit, for example) or 
otherwise communicating scientific or technical information to them on 
the work being proposed or conducted; or
    (5) Communicating with officials of the NSF or another Federal 
agency, with no intent to influence them, to request routinely available 
and noncontroversial information, such as the status of the decision 
process on a proposal.

Be very careful with these last two activities particularly; it would be 
easy to fall into trying to influence actions of the officials involved. 
If you can, let someone else make the presentation or request. If in any 
doubt, consult an ethics counselor in the Office of the General Counsel.
    (f) Specifics on proposals. You may prepare a proposal for 
submission to the NSF or another Federal agency even though you would be 
precluded by one of the three post-employment restrictions from any 
representational dealings with agency officials about it. You may sign 
the cover sheet to signify your agreement to assume responsibility for 
the scientific and technical direction of the project and for the 
preparation of required technical reports. You may not, however, sign 
the cover sheet as ``authorized official'' or sign any cover letter 
submitting the proposal for the institution. Nor may you call, write, or 
visit the agency program officer who is handling the proposal to urge an 
award, haggle over budgets, or the like. You may respond to requests 
from the program officer or another NSF official for scientific and 
technical information relating to the proposal, such as might be needed 
to respond to reviewer comments. You must not, however, couple the 
information you supply with any attempt to

[[Page 239]]

influence the decision on the proposal other than what inheres in the 
provision of the information itself. (If possible, have someone else 
respond.) At the NSF the proposal will receive special scrutiny and may 
require special handling to avoid conflict of interests, but you have no 
special responsibility in that connection.
    (g) Other issues related to representation. Section 682.12 covers a 
number of other issues related to representation. Among these are 
assisting in representation without appearing or communicating with 
official (generally permitted); assisting by personal presence at an 
appearance or meeting (generally prohibited); representating the 
Government (generally permitted); and representing yourself along 
(depends). The rules and explanations given there apply to proposals or 
projects just as to other matters. If any confusion persists after you 
read them, consult an ethics counselor in the Office of the General 
Counsel.



Sec. 682.21  Proposals and projects over which you had official responsibility or with which you were personally involved.

    (a) The ``official responsibility'' two-year restriction applies 
only if you had official responsibility for the proposal or project in 
question during your last year at the NSF. The ``personal involvement'' 
permanent restriction applies only if you were personally involved with 
the proposal or project while at the NSF. You will therefore need to 
know: (1) When a project is the same as one proposed or active while you 
were at the NSF, and (2) whether you had official responsibility for the 
project or were personally involved with it.
    (b) When is a project the same project? All usual aspects of 
handling a particular proposal and any award based on it relate to the 
same ``project''. These include:
    (1) The initial peer review and award-or-declination decision 
process;
    (2) Review and approvals of an award recommendation;
    (3) Negotiation of budget and award terms;
    (4) Negotiation of award amendments;
    (5) Consideration of continuing-grant increments; and
    (6) Consideration of any extensions or administrative approvals.
    (c) Exceptions. (1) A negotiation or determination on disposition of 
rights in any invention or publication that arises out of an award 
normally is a separate matter from the processing and monitoring of the 
award, but not from discussions or negotiations about disposition of 
rights that took place before the invention was made or the publication 
written.
    (2) Separate task orders under a continuing order agreement or the 
like constitute separate ``matters'' if the tasks and the negotiations 
are actually separate.
    (3) An ethics counselor may determine that other matters arising 
from a particular proposal or award constitute separate ``matters'' if 
the circumstances warrant.
    (d) Renewals. An application that involves a continuation or 
outgrowth of work that the investigators have been doing under a 
previous NSF and award is part of the same ``project'' as the original 
proposal and project unless:
    (1) A complete new proposal and a new budget are submitted;
    (2) They are subjected to a complete new competitive peer review or 
evaluation; and
    (3) The review or evaluation involves a new group of reviewers, a 
substantial fraction of whom did not review the earlier proposal.
    (e) ``Official responsibility''. You had ``official responsibility'' 
for a proposal or project if you were personally responsible for 
handling it or if you headed a directorate, division, section, or 
program that was responsible for handling it. (The Director has 
``official responsibility'' for every proposal or project active at the 
NSF during his or her tenure.) You will find further elaboration of 
``official responsibility'' in Sec. 682.12(b).
    (f) ``Personal involvement''. You were ``personally involved'' with 
a proposal or project if you handled the peer review of the proposal; if 
you made any formal recommendation or decision on it, including any 
approval of an award recommendation or other action; if you reviewed the 
proposal or made a site

[[Page 240]]

visit; or if you otherwise made a substantial contribution to the 
handling of the proposal or project. You will find further elaboration 
of ``personally involved'' in Sec. 682.12(c).



Sec. 682.22  When you are or would be principal investigator.

    (a) Retention of ties to research, etc. permitted. Many scientists 
and educators interrupt active research and teaching careers to spend a 
year or two at the NSF as ``rotators'' and then return to research and 
teaching, usually at the same institution from which they came. Many 
such rotators (and a few permanent employees) who have been principal 
investigators under NSF awards before coming to the NSF, retain some 
interest or association with the work. If you have been the principal 
investigator under an NSF award, you are not precluded from retaining 
ties to the work under the award after you become an NSF employee. 
Subject to the restrictions on outside employment explained in Part 683 
of the NSF conflict-of-interests regulations, you may stay in contact 
with those who are continuing the work in your laboratory or on your 
project. You may continue to supervise graduate students. And you may 
visit and work in the laboratory on your own time for these purposes.
    (b) Substitute principal investigator. Before you come to the NSF, 
however, the NSF requires that you and your institution designate, 
subject to NSF approval, a substitute principal investigator--i.e., 
another scientist who will be responsible for the work and equipment and 
will represent the project and the institution in any dealings with NSF 
officials while you are at the NSF.
    (c) Suspension of work on an NSF award. Appointment of a substitute 
principal investigator is unnecessary if all work under an award is to 
be completely suspended while you are at the NSF. If the work is to be 
suspended, you and your institution should so inform the NSF by letter 
before your NSF employment begins. Work under the award may be resumed 
when you complete your NSF employment, and its term may be extended to 
account for the time lost during your NSF employment.
    (d) Substitute negotiator. As soon as you leave the NSF, you may 
again be principal investigator on an NSF project, may be listed as 
principal investigator in any proposal or award, and may sign a proposal 
as principal investigator. However, the NSF asks that you and your 
institution formally designate (subject to NSF approval) a ``substitute 
negotiator'' who, though not principally responsible for the work, will 
represent the project and the institution in dealings with NSF officials 
from which you would be restricted. In the typical case, the one-year 
NSF restriction will require that a substitute negotiator continue to 
serve that function for one year after you leave the NSF. In the rarer 
case of a proposal or project for which you had official responsibility 
or with which you were personally involved, there should be a substitute 
negotiator for as long as the ``official responsibility'' two-year 
restriction or the ``personal involvement'' permanent restriction bar 
you from such representational dealings.
    (e) Renewal proposals submitted during your NSF service. During your 
NSF service a proposal may be submitted for continuation or extension of 
work on which you were principal investigator before coming to the NSF 
and to which you intend to return. The role you will play in the work 
proposed should be clearly spelled out in the proposal, and the proposal 
should prominently indicate that you are currently an NSF employee. If 
work under a resulting award would begin before you leave the NSF, a 
substitute principal investigator must be named. If the work would not 
begin until after you leave the NSF, you may be named as principal 
investigator, but a substitute negotiator must be named.
    (f) Your involvement or interest in project to be open. The 
appointment of a substitute principal investigator or a substitute 
negotiator is not intended to conceal or obscure your continued 
involvement or interest in the project. Just the opposite: your 
involvement or interest should be made unmistakably plain. This will 
ensure that any proposal or other award-related application will be 
given the special attention

[[Page 241]]

and special handling called for under Part 681.
    (g) Purposes of ``substitute'' requirements. The appointment of a 
``substitute principal investigator'' or ``substitute negotiator'' 
ensures against unthinking violation of the restrictions on dealings 
with NSF officials. It serves this purpose by flagging proposals or 
awards affected by the restrictions and by identifying someone else with 
whom NSF officials can properly discuss them or negotiate over them. 
Designation of a substitute principal investigator while you are at the 
NSF has two additional functions: It identifies another person to be 
responsible for the work and equipment, and it reminds all concerned 
that during your NSF service your primary attentions must be on your NSF 
duties.
    (h) Proposals and awards of other agencies. The ``substitute 
principal investigator'' and ``substitute negotiator'' requirements 
described in this section are specific to the NSF. If you are or would 
be a principal investigator under a project proposed to or supported by 
another Federal agency, however, you should carefully observe the 
representational restrictions as they apply to dealings with officials 
of other Federal agencies. The current-employee restriction is 
particularly likely to apply.



Sec. 682.23  Compensation or reimbursement of expenses from Federal awards.

    (a) Compensation from NSF awards. While you are an NSF employee, you 
may not receive any salary, consulting fee, honorarium, or other form of 
compensation for your services from an NSF award either directly or 
indirectly. In other words, you may not receive money for your services 
in connection with a project, a conference, or other work that was 
supported in whole or in part by funds provided from an NSF award. After 
you cease to be an NSF employee, you may again receive compensation from 
an NSF award.
    (b) Expenses from an NSF award. While an NSF employee you may not 
receive any reimbursement of expenses from an NSF award. You may receive 
reimbursement of expenses from other Federal awards to the extent 
consistent with Sec. 683.33.
[47 FR 32140, July 26, 1982; 47 FR 34151, Aug. 6, 1982; 47 FR 54081, 
Dec. 1, 1982]



PART 683--OTHER CONFLICTS RULES--Table of Contents




                     Subpart A--Financial Disclosure

Sec.
683.10  Who must make general financial disclosure.
683.11  Financial disclosure requirements for senior employees.
683.12  Financial disclosure requirements for program officers, grants 
          and contracts officers, auditors, and lawyers.

              Subpart B--Acts Affecting Financial Interests

683.20  Acts affecting your financial interests.

    Subpart C--Outside Employment, Compensation, Income, Gifts, etc.

683.30  Outside employment (``moonlighting'') and income.
683.31  Compensation.
683.32  Honoraria.
683.33  Reimbursements and services in kind.
683.34  Misuse of inside information or Government property.
683.35  Participation in NSF-supported conferences and workshops.
683.36  Gifts, favors, loans, prizes, and awards.

                Subpart D--Political Activity (Hatch Act)

683.40  Introduction; who's covered.
683.41  Basic political rights unaffected.
683.42  Candidacy and campaigns.
683.43  Party activities.
683.44  Political use of official authority or influence.

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supplement and 
Regulations of the Office of Personnel Management, 5 CFR 735.104.

    Source: 47 FR 32145, July 26, 1982, unless otherwise noted.



                     Subpart A--Financial Disclosure



Sec. 683.10  Who must make general financial disclosure.

    (a) If you are an executive level, SES, or supergrade employee, you 
are a ``senior employee'' and must file public Financial Disclosure 
Reports. See Sec. 683.11.

[[Page 242]]

    (b) If you are not a ``senior employee'', but serve as either a 
program officer, a directorate administrative official, a grants and 
contracts officer, an auditor, or a lawyer, you must file confidential 
Statements of Employment and Financial Interests. See Sec. 683.12.
    (c) If you are in neither of these categories, no general financial 
disclosure is required of you. You may ignore the rest of this subpart.
    (d) If you are required to file Financial Disclosure Reports or 
Statements of Employment and Financial Interests, the Foundation will 
supply you with the necessary forms. You may ask for them when you need 
them, but normally they will be sent to you automatically, with 
instructions.



Sec. 683.11  Financial disclosure requirements for senior employees.

    (a) If you are a ``senior employee'' you must file an initial 
Financial Disclosure Report within 30 days after you first come to the 
Foundation or are promoted into a senior-employee position. You must 
thereafter file a Financial Disclosure Report by May 15 of each year. 
And you must file a termination Financial Disclosure Report within 30 
days after you leave the Government.
    (b) File your Reports with an ethics counselor. The ethics counselor 
will help with problems or questions that arise in completing the forms, 
and is required by law to review your Report after you file it. The 
ethics counselor may contact you about any errors you make in filling 
out the form or about questions that are raised by what you report.
    (c) The law requires the NSF to make each Report you file available 
to the public within 15 days after you file it.
    (d) Any person who wants to see or copy your Report must make a 
written request. A copy of any such request will be sent to you.
    (e) If you are nominated by the President to an NSF position and 
must be confirmed by the Senate, your initial Report must be filed with 
the NSF within five days after your nomination.
    (f) If you fail to file a required Report, fail to file information 
required to be reported, or file false information, you are subject to 
disciplinary action. If you do any of those things willfully, the law 
requires the Director of the Foundation to report to the Attorney 
General, who has authority to enforce the disclosure requirements 
against any knowing or willful violation by suits seeking civil 
penalties of up to $5,000.



Sec. 683.12  Financial disclosure requirements for program officers, grants and contracts officers, auditors, and lawyers.

    (a) Sec. 683.10(b) indicates that you are one of those who must file 
Statements of Employment and Financial Interests, you must file an 
initial Statement within 30 days after you are first appointed to a 
covered position either by promotion or as a new NSF employee. You must 
thereafter file a Statement each year by July 31.
    (b) File your Statements with the Personnel Office.
    (c) Your Statements will be held in the strictest confidence allowed 
by law. The Personnel Office will keep them in a locked file and will 
release them or allow disclosure of information from them only with your 
written approval or that of the General Counsel. Before any release or 
disclosure on the authority of the General Counsel you will be notified 
and will have an opportunity to comment, except when information is 
requested for an official investigation of a possible criminal 
violation.
    (d) If you fail to file a required Statement, fail to file 
information required to be reported, or file false information, you are 
subject to disciplinary action.



              Subpart B--Acts Affecting Financial Interests



Sec. 683.20  Acts affecting your financial interests.

    (a) No acting as a Federal employee where you have a financial 
interest. You must not be personally involved as a Federal employee in 
handling of any proposal, award, or other matter in which you, a member 
of your immediate family, a business partner, or an organization of 
which you are or may become a part has a financial interest.

[[Page 243]]

BE CAREFUL: Violation of this rule may also result in a violation of a 
criminal statute for which the penalties are a fine of up to $10,000, 
imprisonment for up to two years, or both.
    (b) Proposals and awards. You will not violate this restriction in 
handling proposals and awards as long as you abide by the requirements 
on handling proposals and awards described in part 681 of these 
regulations.
    (c) Policy determinations. Broad policy determinations that might 
affect your home institutions, but only in the same manner as all 
similar institutions, are not covered.
    (d) ``Matter''. Otherwise, the term ``matter'' has the same meaning 
here as in connection with the representational restrictions described 
in part 682 of this chapter. It is elaborated in Sec. 682.13 of this 
chapter. Note that here specific parties need not be involved.
    (e) ``Personally involved''. The term ``personally involved'' has 
exactly the same meaning here as in connection with the representational 
restrictions described in part 682 of this chapter. It is elaborated in 
Sec. 682.12(b) of this chapter. In general, you can be ``personally 
involved'' in the handling of a matter even though you actually make 
none of the critical decisions, if you contribute by recommendations, 
advice, approval, or the like, and your contribution is substantial.
    (f) Immediate family. Only your spouse and minor children are 
considered members of your ``immediate family'' under this rule.
    (g) ``Organization of which you are or may become a part''. You are 
a part of an organization if you are an officer, director, trustee, 
partner, or employee. You ``may become'' part of an organization if you 
are negotiating with it or have an arrangement with it concerning a 
position.
    (h) Waiver. This provision may be waived where the interest is so 
insubstantial as to be unlikely to affect the integrity of your services 
to the Government. If you think such a waiver is called for, consult an 
ethics counselor in the Office of the General Counsel. The ethics 
counselor will advise you and will make a recommendation to the official 
who would have to approve such a waiver.



    Subpart C--Outside Employment, Compensation, Income, Gifts, etc.



Sec. 683.30  Outside employment (``moonlighting'') and income.

    (a) Permitted within limits; duty first. While not on official duty, 
you may work for private firms or organizations either for pay or as a 
volunteer, within limits established by the rest of this subpart. Be 
sure that you understand all those limits before undertaking any such 
outside work. Those that do not relate to compensation apply whether or 
not you work for pay. A basic limit, of course, is that duty comes 
first. You should not engage in any outside activity that impairs your 
health, exhausts your energies, or otherwise prevents you from doing 
your NSF job.
    (b) Policymaking or administrative work for certain organizations. 
You may not participate as a policymaking officer for any research or 
educational institution, any scientific society, or any professional 
association without the written approval of an ethics counselor. 
Whenever a major policy question is presented by a request for such 
approval, you or the ethics counselor may raise the matter with the 
General Counsel and, if appropriate, with the Director of the 
Foundation.
    (c) Visiting Committees. Employees should not participate in the 
deliberations of a college or university visiting committee. However, an 
employee may meet with such groups as a Foundation official where it 
would be appropriate to attend a similar meeting with any other 
comparable group requesting his or her assistance.

[47 FR 32145, July 26, 1982, as amended at 51 FR 22939, June 24, 1986]



Sec. 683.31  Compensation.

    (a) Basic restrictions on outside compensation. Three basic rules 
restrict compensation (not including reimbursement of expenses) you can 
accept from sources other than your Federal salary:
    (1) No extra compensation for official duties. You must not seek or 
accept any contribution or supplement to your Government salary for 
doing any part of your NSF job.

[[Page 244]]

    (2) No compensation out of any Federal award. You must not seek or 
accept any compensation out of funds that come wholly or partly from a 
Federal award.
    (3) No compensation in connection with any matter involving the 
Government. You must not seek or accept any compensation for services by 
you or anyone else in connection with any proposal, project, or other 
matter in which the United States is a party or has a direct interest.

BE CAREFUL: Breaking any of these rules would be a Federal crime.
    (b) Pensions and other employee benefits. These rules do not 
preclude you from continuing to participate in a bona fide pension or 
other employee benefit plan maintained by a former employer.
    (c) Wording and terms. The wording of these restrictions has been 
simplified here substantially from the wording of the underlying 
statutes, so that they will be easier to understand. Interpret them 
conservatively. If you have any doubt about the meaning of terms, 
consult an ethics counselor in the Office of the General Counsel.



Sec. 683.32  Honoraria.

    (a) Honoraria on official duty. You must not accept any honoraria 
for speeches, papers, lectures, or the like delivered in the course of 
your official duties. However, if declining an honorarium would appear 
embarrassing or insulting to the offeror, particularly one from another 
country, you may accept the honorarium on behalf of the Foundation and 
deposit it into a special trust fund account or into the Treasury. Under 
no circumstances may you accept an honorarium for yourself for acts 
performed in your official capacity.
    (b) Honoraria--while not on official duty. You may accept honoraria 
for speeches, papers, or lectures delivered while you are not on 
official duty, subject to general limits on outside employment described 
in Sec. 683.30, general restrictions on receipt of compensation 
described in Sec. 683.31, and prohibitions against misuse of inside 
information described in Sec. 683.34. You will be disqualified for one 
year from handling proposals and other award-related applications that 
involve the interests of the person or institution from which you 
received any honorarium. See Sec. 681.21 of this chapter. Moreover, the 
law restricts the amounts of honoraria you may accept:
    (1) You must not accept an honorarium of more than $2,000 for any 
speech, paper, lecture, or the like (excluding reimbursements for meals, 
lodging, and travel).
    (2) If you are a Presidential employee, honoraria count toward the 
fifteen-percent limit on your outside income. See Sec. 683.30(d)(3).



Sec. 683.33  Reimbursements and services in kind.

    (a) For official travel. You may not accept money from private 
sources to reimburse you for expenses incurred during travel on official 
NSF business, though private sources may reimburse the NSF for your 
expenses. You may accept meals, lodging, or travel tickets (not money) 
from private sources when you are traveling on official NSF business, 
but not if they would be paid for out of funds that come wholly or 
partly from an NSF award. There is one exception to the reservation 
about funds that come from an NSF award: if you are attending a 
conference, symposium, or other meeting funded by the NSF, you may 
accept meals and lodging (but NOT travel tickets) if they are offered to 
everyone attending the meeting and alternate arrangements for meals and 
lodging are unavailable or would cause an unusual inconvenience. If you 
do accept meals or lodging while on official travel, your per diem must 
be reduced accordingly.
    (b) For travel, etc. when not on duty. If you are on leave, not 
representing the Foundation, and not expected primarily to discuss NSF 
policy or procedures, these restrictions do not apply. However, you may 
not accept services in kind or reimbursement for travel expenses if the 
sources would be funds that come wholly or partly from an NSF award 
EXCEPT as provided for rotators in Sec. 682.23(c).



Sec. 683.34  Misuse of inside information or Government property.

    (a) No misuse of inside information. If your Government job gives 
you access

[[Page 245]]

to information not generally available to the public, you must not use 
that information for your private benefit or make it available for the 
private benefit of any other person or institution.
    (b) Consulting, lecturing, etc. about the NSF. You must not receive 
anything of monetary value for consulting, lecturing, writing, or public 
discussion that concerns the responsibilities, the programs, or the 
operations of the NSF or that draws on official information or ideas not 
generally available to the public.
    (c) Waivers. The Director, the Deputy Director, or an assistant 
director may waive application of these rules and authorize use of non-
public information in the public interest. Any such authorization must 
be in writing. Consult an ethics counselor in the Office of the General 
Counsel.
    (d) Private use of public property or services. You must not use 
Government property or services for your private benefit or for the 
private benefit of others, except as your normal public duties benefit 
particular members of the public in intended ways.



Sec. 683.35  Participation in NSF-supported conferences and workshops.

    You may participate in a conference, workshop, or similar event 
supported by NSF funds, provided you do not receive any compensation, 
honorarium, or the like for your participation. You may not serve as an 
organizer or director of such an NSF-supported event, unless its purpose 
is to plan, assess, or publicize NSF programs. Nor, ordinarily, should 
you chair a session or give a paper except to describe NSF programs or 
NSF needs. You may discuss arrangements with the organizers or directors 
as long as you do not use the influence that derives from your NSF 
position to pressure them.



Sec. 683.36  Gifts, favors, loans, prizes, and awards.

    (a) Gifts and favors generally. You may not directly or indirectly 
solicit or accept a gift, a favor, or a loan from any person or 
organization that has or is seeking NSF awards, that has other interests 
potentially affected by what you do in your NSF job, or that may be 
trying to affect your official actions. (You may, however, accept 
promotional things of trivial value such as pens, pencils, note pads, 
and calendars.)
    (b) Meals or entertainment. By extension, you should ordinarily 
avoid accepting meals or entertainment from such persons or 
organizations if you can avoid doing so within the reasonable bounds of 
politeness. You may, however, occasionally accept a modest meal offered 
as a courtesy or convenience during a site visit or a luncheon or dinner 
meeting.
    (c) Prizes and awards. The restrictions in paragraph (a) of this 
section do not prevent you from accepting a prize or award for 
scientific or other public achievement given by a university, scientific 
society, or other organization. However, you may accept anything of 
value that accompanies the prize or award only if it is not paid for out 
of funds that come wholly or partly from an NSF award. You will be 
disqualified for one year from handling proposals and other award-
related applications that involve the interests of the person or 
institution from which you received any such prize or award. See 
Sec. 681.21 of this chapter.
    (d) From foreign governments. You may not accept a gift or 
decoration from a foreign government except one of ``minimal value''. 
Minimal value means retail value in the United States of $140 or less. 
If the gift is of more than minimal value you may accept it only if not 
accepting it would be likely to cause offense or embarrassment. Even 
then, any gift of more than minimal value becomes the property of the 
United States. Consult an ethics counselor for help in depositing the 
gift with the State Department.



                Subpart D--Political Activity (Hatch Act)



Sec. 683.40  Introduction; who's covered.

    (a) Hatch Act. In order to ensure that day-to-day government actions 
(such as award of grants) are not affected by political motives and in 
order to preserve a nonpolitical civil service that is selected on 
merit, not on political considerations, the law restricts the 
involvement of Federal civil service employees with partisan politics. 
These

[[Page 246]]

restrictions derive from a law popularly known as ``the Hatch Act''.
    (b) Summary of Hatch Act restrictions. (1) You may not run for 
public or party office, except in nonpartisan elections and certain 
local elections. See Sec. 683.42(a).
    (2) You may not participate in election campaigning, except in 
nonpartisan elections and certain local elections. See Sec. 683.42(c).
    (3) You may not take an active part in leading or managing a 
political party. See Sec. 683.43.
    (4) You must not use your official authority or influence for 
political purposes. See Sec. 683.44.
    (c) Presidential appointees. You are subject to these restrictions 
if you are an NSF employee, unless you are a Presidential appointee 
whose appointment was subject to Senate confirmation. If you are such a 
Presidential appointee, you are subject only to the restrictions 
decribed in Sec. 683.44. You need not be concerned with the rest of this 
subpart except as it affects your colleagues and subordinates.
    (d) Employee coverage. If you are subject to the ``Hatch Act'' 
restrictions, they apply even while you are on leave while you are on 
detail or assignment to a non-Federal post. They apply even if you work 
for the Government only part-time. If you work for the Government as a 
temporary employee, the restrictions apply as long as your temporary 
employment lasts. If you work for the Government as an intermittent 
employee, the restrictions apply only while you are in the active-duty 
status, but that includes the entire 24 hours of any day on which you 
work for the Government at all. (If in doubt about the employment 
category to which you belong, check with Personnel.)
    (e) Political party. Any political party or political club, national 
or state, is a ``political party'' under this subpart, except where 
provisions specifically refer to a ``national political party''.



Sec. 683.41  Basic political rights unaffected.

    The Hatch Act restrictions do not affect your basic political 
rights. Specifically:
    (a) You may register and vote as you choose in any election.
    (b) You may contribute to a political party or candidate, though you 
may not be pressured to do so because of your Federal employment.
    (c) You may be a member of a political party or other political 
organization. You may attend party meetings and vote on issues. You may 
not, however, be involved in managing or leading the organization. See 
Sec. 683.43.
    (d) You may write, call, or visit any Federal, state, or local 
political official (including, for example, your Congressman) to express 
your views on any political issue and on how the official should vote or 
act on the issue.
    (e) You may sign political petitions, including nominating 
petitions, but you may not circulate such petitions for others to sign. 
See Sec. 683.42(d)(2).



Sec. 683.42  Candidacy and campaigns.

    (a) Running for office. You may not run for nomination or election 
to public office. There are two exceptions:
    (1) You may run in an election in which no candidate runs as 
representing any national political party. (Currently, this means the 
Democratic or Republican party, but if another party wins electoral 
votes in a Presidential election, that could change.)
    (2) You may run for office in most of the local political 
jurisdictions in the Washington, DC area if you run as an independent 
not representing any political party, national or otherwise. (To be sure 
that your jurisdiction is among those in which this is permitted, check 
with an Ethics Counselor in the Office of the General Counsel.)
    (b) No partisan campaigning. You may not campaign for or against a 
political party or candidate in an election for public office or in an 
election for party office. Essentially the same two exceptions apply:
    (1) You may campaign for a candidate in an election in which no 
candidate runs as representing any national political party.
    (2) If you could be an independent candidate in a local election 
described in paragraph (a)(2) of this section, you may campaign for an 
independent candidate in such an election.

You may not campaign for any side of a question or issue that is 
specifically identified with a political party.

[[Page 247]]

    (c) What constitutes campaigning. You ``campaign'' when you:
    (1) Actively participate in management of a campaign;
    (2) Initiate nominating petitions or canvass for signatures on 
nominating petitions;
    (3) Endorse or oppose a candidate or a position through political 
advertisements, broadcasts, campaign literature, or the like;
    (4) Speak at rallies, candidate nights, party caucuses, or other 
political gatherings;
    (5) Solicit campaign contributions, promote political dinners or 
similar events, sell tickets for such events, or otherwise participate 
in campaign fundraising;
    (6) Help to handle campaign finances;
    (7) Distribute campaign material;
    (8) Host a coffee, cocktail party, or buffet for a candidate or a 
candidate's surrogate;
    (9) Drive voters to the polls;
    (10) Work at the polls as a checker, challenger, pollwatcher, or the 
like, or
    (11) Do any other work on behalf of a candidate.
    (d) Nonpartisan election duties. In connection with an election, you 
may perform nonpartisan duties provided for by law as an election clerk, 
judge, or the like.
    (e) Appointment to nonelective office. You may accept appointment to 
nonelective public office, subject to the same limits that apply to any 
other outside employment. See subpart C, Secs. 683.30 through 683.36.



Sec. 683.43  Party activities.

    You may not take an active part in leading or managing a political 
party. You do that when you:
    (a) Participate in organizing or reorganizing it;
    (b) Serve as a party officer or as a member of a national, state, or 
local party committee (or stand as a candidate for such a position);
    (c) Participate in party fundraising or in handling party finances;
    (d) Serve as a delegate, alternate, or proxy to a party convention 
(though you may attend such a convention); or
    (e) Take an active part in conducting or running a meeting, rally, 
fund-raising function, convention, or other party gathering (though you 
may attend such a gathering).



Sec. 683.44  Political use of official authority or influence.

    You must not use your official authority or influence for political 
purposes. Thus:
    (a) You must not use your official position or authority to 
interfere with an election or to affect the result of an election.
    (b) You must not solicit political contributions from other Federal 
employees, allow your name to appear on any fundraising appeal likely to 
be sent to Federal employees, or authorize anyone to solicit or receive 
political contributions in a building where Federal employees work.
    (c) You must not discriminate against any other employee because of 
his or her political opinions or affiliations. This is a ``prohibited 
personnel practice''. See regulations of the Merit Systems Protection 
Board at 5 CFR 1250.3(b)(3).



PART 684--RULES FOR CONSULTANTS, BOARD MEMBERS, AND OTHER ``SPECIAL EMPLOYEES''--Table of Contents




   Subpart A--General Rules for Consultants, Board Members, and Other 
                          ``Special Employees''

Sec.
684.10  ``Special employees''.
684.11  Summary of rules for ``special employees''.
684.12  Financial disclosure.
684.13  Political activity (Hatch Act).
684.14  Representing private interests before the NSF or other Federal 
          agencies.
684.15  Compensation.
684.16  Acts affecting your financial interests.
684.17  Inside information.
684.18  General standards of conduct for ``special employees''.

Subpart B--Special Rules of the National Science Board for Board Members

684.20  Summary.
684.21  Participation in Board deliberations.
684.22  Negotiations with NSF staff.
684.23  Participation in proposals and projects.
    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supplement and 
Regulations of the

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Office of Personnel Management, 5 CFR 735.104.

    Source: 47 FR 32149, July 26, 1982, unless otherwise noted.



   Subpart A--General Rules for Consultants, Board Members, and Other 
                          ``Special Employees''



Sec. 684.10  ``Special employees''.

    (a) Special employees. Any NSF consultant, National Science Board 
member, or other temporary or intermittent employee (including a rehired 
annuitant) who works or is expected to work for the NSF 130 days a year 
or less is a ``special Government employee.'' The rules in this subpart 
apply to you only if you are such a ``special employee''. Other 
employees should see parts 680 through 683 of the NSF conflict-of-
interests regulations.
    (b) Days worked. If you have any uncertainty about how many days you 
work or are expected to work for the NSF, consult an ethics counselor in 
the Office of the General Counsel. There are specific rules for counting 
the days, and the rules that apply while you are still employed differ 
somewhat from those that apply afterward.



Sec. 684.11  Summary of rules for ``special employees''.

    (a) This section summarizes the principal conflicts requirements 
that you are expected to observe as an NSF ``special employee''. It 
references the subsequent provisions of this subpart in which these 
requirements are elaborated. You are encouraged to read as well 
Secs. 680.10 and 680.12, which introduce the NSF conflict-of-interests 
regulations and explain their purposes. Members of the National Science 
Board are committed to observe, besides the requirements summarized 
here, the special rules of the Board for its members. See subpart B, 
Secs. 684.20 through 684.22.
    (b) NSF work on proposals and awards of others. (1) If you serve on 
a panel that reviews proposals or otherwise serve as a peer reviewer, 
you will be given instructions designed to deal with any conflict of 
interests you may have.
    (2) If you participate in action on proposals and awards as a 
National Science Board member, see Sec. 684.21.
    (3) If you should otherwise become involved with the handling of a 
proposal of other award-related application you should follow the same 
rules and procedures on conflicts or potential conflicts in handling 
proposals and awards as regular NSF employees. They are set out in part 
681 of the NSF conflicts regulations, Secs. 681.20 through 681.26.
    (c) Financial disclosure (Sec. 684.12). (1) If you are compensated 
at a rate at or above the lowest rate for a GS-16 regular employee and 
plan to work or actually do work more than sixty days in any calendar 
year, you must file public Financial Disclosure Reports.
    (2) If you are not required to file public Financial Disclosure 
Reports, you must file a confidential Statement of Financial Interests 
at the time of your appointment (or reappointment).
    (3) You may ask for forms if you need them. Normally, however, they 
will be provided to you automatically, with instructions.
    (d) Political activity (Hatch Act) (Sec. 684.13). The Hatch Act 
prohibits you from being involved in an election campaign or in 
political-party activity on any day when you work for the Government.
    (e) Representational restrictions and involvement with proposals and 
awards during and after NSF service (Sec. 684.14). (1) You must never 
represent any private party in dealings with any Federal official on any 
proposal, project, or other matter if you have been personally involved 
with that matter at or for the NSF.
    (2) If you have been employed with the NSF more than sixty days a 
year, you must not represent anyone in dealings with any NSF official 
during your NSF service and for one year thereafter on any proposal, 
project, or other matter involving specific parties.

General effect: These restrictions do not preclude you from preparing a 
proposal for your institution, from serving as principal investigator 
under an NSF proposal or award, from otherwise working under an NSF 
award, or from receiving compensation or expenses

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out of an NSF award. If you are a member of the National Science Board, 
however, see Sec. 684.22.
    (f) Compensation (Sec. 684.15). (1) While you are an NSF ``special 
employee'' you must not seek or accept (except from the Government) any 
compensation for services by you or anyone else in relation to any 
matter involving specific parties if you have been personally involved 
for the Government.
    (2) If you have been employed with the NSF for more than sixty days 
in the last 365, you must not seek or accept (except from the 
Government) any compensation for services by you or anyone else in 
relation to any matter involving specific parties that is pending in the 
NSF.
    (g) Acts affecting your financial interests (Sec. 684.16). You must 
not be personally involved as a Federal employee in the handling of any 
proposal, award, or other matter in which you, a member of your 
immediate family, a business partner, or an organization of which you 
are or may become a part has a financial interest. You will not violate 
this restriction with respect to proposals and awards as long as you 
follow the instructions provided in paragraph (b) of this section.
    (h) Use of inside information (Sec. 684.17). If your work for the 
Government gives you access to information not generally available to 
the public, you must not use that information for your private benefit 
or make it available for the private benefit of any other person or 
organization.
    (i) Effect of simplified wording. The wording of the requirements as 
presented in these regulations has been simplified substantially from 
the wording of underlying statutes and other authorities, so that they 
will be easier to understand. Your initial interpretation should be 
conservative. If in doubt on the meaning of terms or otherwise troubled, 
consult an ethics counselor in the Office of the General Counsel.
    (j) General standards of conduct. You are also responsible for being 
familiar with general standards of conduct described in Sec. 680.18 of 
this chapter and for observing them.



Sec. 684.12  Financial disclosure.

    (a) Unless you are required under paragraph (b) of this section to 
file public Financial Disclosure Reports, you must file a confidential 
Statement of Employment and Financial Interests at the time of your 
appointment (and of any reappointment). The Personnel Office 
automatically supplies you with the necessary forms, and you file the 
Statement there.
    (b) High-ranking ``special employees'' who work more than sixty days 
a year. If you are compensated as a ``special employee'' at a rate at or 
above the lowest rate for a GS-16 regular employee, you are a ``senior 
employee''. Regular senior employees are required to file public 
Financial Disclosure Reports. You are required to do so, however, only 
if you plan to work or actually do work more than sixty days in any 
calendar year. Specifically:
    (1) If at the time of your appointment you are expected to serve 
more than sixty days in any calendar year, you must file such a Report 
then and again within thirty days after your appointment ends.
    (2) If you did not file at the time of your appointment, but do in 
fact serve more than sixty days in any calendar year, you must file such 
a Report within fifteen days of your sixty-first day of work and again 
within thirty days after your appointment ends.
    (3) In either case, if you in fact serve more than sixty days in any 
calendar year, you must also file such a Report before May 15 of the 
next year.

A person who is under consideration for nomination to the National 
Science Board may be asked to file a Financial Disclosure Report with 
the White House or the Senate through the Office of Government Ethics as 
part of the clearance process even if not expected to serve more than 
sixty days a year. Such a Report will not be made public by the NSF.
    (c) Filing of Financial Disclosure Reports. If you are required to 
file Financial Disclosure Reports, the necessary forms ordinarily will 
be sent to you automatically, with instructions. You should inquire, 
however, if you think you may go over the sixty-day limit, and you may 
ask for forms from the Office of the General Counsel whenever

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you need them. File your Reports with an ethics counselor in the Office 
of the General Counsel. The ethics counselors will help with problems or 
questions that arise in completing the forms. The law also requires them 
to review your Report after you file it. They may contact you about any 
errors you make in filling out the form and about any questions that are 
raised by what you report. The law requires them to make each Report you 
file available to the public within fifteen days after receiving it. A 
copy of any request for your Report will be sent to you.



Sec. 684.13  Political activity (Hatch Act).

    The Hatch Act and other laws restrict the involvement of Federal 
civil service employees with partisan politics. The restrictions apply 
to you for all of any day during which you work for the Government. If 
you have any plan or intention of being involved in any election 
campaign or political-party activity on any such day, consult an ethics 
counselor in the Office of the General Counsel before doing so. Members 
of the National Science Board, as Presidential appointees, are not 
subject to these rules. They are subject only to a restriction on using 
official authority or influence for political purposes. Part 683, 
subpart D, Secs. 683.40 through 683.44, cover the Hatch Act restrictions 
in greater detail.



Sec. 684.14  Representing private interests before the NSF or other Federal agencies.

    (a) ``Personal involvement'' permanent restriction. All NSF 
``special employees'' are subject to the following basic restriction:

    You must never represent anyone in dealings with any Federal 
official on any proposal, project, or other matter involving specific 
parties if you have been personally involved with that matter at or for 
the NSF.

    (b) NSF restriction. If you have been employed with the NSF more 
than sixty days a year, you are subject to one other restriction:

    During your NSF service and for one year thereafter you must not 
represent anyone in dealings with any NSF official on any proposal, 
project, or other matter involving specific parties.

Be careful: Violation of either of these restrictions may also be a 
Federal crime.
    (c) Effect on involvement with proposals and projects. These 
representational restrictions do not preclude you from being involved as 
a researcher or educator with proposals submitted to the NSF or other 
Government agencies or with projects supported by the NSF or by other 
Government agencies. They may preclude you from being the one to write, 
call, visit, or otherwise communicate with a Federal official about a 
proposal or project.
    (d) ``Personally involved''. You can be ``personally involved'' even 
though you actually make none of the critical decisions if you 
contribute to them by recommendations, advice, approval, or the like, 
but your involvement must have been substantial. If you are a member of 
the National Science Board, you have definitely been ``personally 
involved'' with a matter if you have participated in any Board or Board-
committee action on the matter or have taken part in a Board or 
committee discussion immediately preceding such an action.



Sec. 684.15  Compensation.

    (a) Compensation where you have been involved for the Government. 
All ``special Government employees'' are subject to the following 
restriction:

    While you are an NSF ``special employee'' you must not seek or 
accept (except from the Government) any compensation for services by you 
or anyone else in relation to any matter involving specific parties if 
you have been personally involved with that matter for the Government.

    (b) Compensation in relation to NSF matters. If you have been 
employed with the NSF for more than sixty days in the last 365 and still 
are, you are subject to one other restriction:

    You must not seek or accept any compensation for services by you or 
anyone else in relation to any matter involving specific parties that is 
pending in the NSF.

Be careful: Violation of either of these rules may also be a Federal 
crime.
    (c) NSF awards. You may, however, perform work under an NSF award 
and may receive compensation charged to the award for the work.

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    (d) ``Personally involved''. The term personally involved has 
exactly the same meaning here as in connection with the representational 
restrictions described in Sec. 684.14. See Sec. 684.14(d).



Sec. 684.16  Acts affecting your financial interests.

    (a) No acting as a Federal employee where you have a financial 
interest. You must not be personally involved as a Federal employee in 
the handling of any proposal, award, or other matter in which you, a 
member of your immediate family, or an organization of which you are or 
may become a part has a financial interest. BE CAREFUL: violation of 
this rule may also be a Federal crime.
    (b) Proposals and awards. You will not violate this restriction with 
respect to proposals and awards as long as you follow the instructions 
provided in Sec. 684.11(b).
    (c) ``Personally involved''. The term personally involved has 
exactly the same meaning here as in connection with the representational 
restrictions described in Sec. 684.14. See Sec. 684.14(d).
    (d) ``Matter''. The word matter has a somewhat broader meaning here 
than the phrase ``matter involving specific parties'' used in 
Sec. 684.14. Broad policy determinations that might affect your home 
institution, but only in the same manner as all similar institutions, 
are not covered. If in doubt, consult an ethics counselor in the Office 
of the General Counsel. National Science Board members should consult 
the Chairman of the Board.
    (e) Immediate family. Only your spouse and minor children are 
considered members of your ``immediate family'' under this rule.
    (f) ``Organization of which you are or may become a part''. You are 
a part of an organization if you are an officer, director, trustee, 
partner, or employee. You ``may become'' a part of an organization if 
you are negotiating with it or have an arrangement with it concerning 
such a position.
    (g) Waiver. This provision may be waived where the financial 
interest involved is so insubstantial that it is unlikely to affect the 
integrity of your services to the Government. If you think such a waiver 
is called for, consult an ethics counselor in the Office of the General 
Counsel. The ethics counselor will advise you and will make a 
recommendation to the official who would have to approve such a waiver. 
National Science Board members should consult with the Chairman of the 
Board.



Sec. 684.17  Inside information.

    (a) If your Government job gives you access to information not 
generally available to the public, you must not use that information for 
your private benefit or make it available for the private benefit of any 
other person or organization.
    (b) You must not receive anything of monetary value for consulting, 
lecturing, writing, or public discussion that primarily concerns the 
responsibilities, programs, or operations of the Foundation or that 
draws significantly on official information or ideas not generally 
available to the public.
    (c) The Director, the Deputy Director, an assistant director, or (in 
the case of Board members) the Chairman of the National Science Board 
may waive application of these rules and authorize use of non-public 
information in the public interest. Any such authorization must be 
obtained in writing. Consult an ethics counselor in the Office of the 
General Counsel. National Science Board members should consult with the 
Chairman.



Sec. 684.18  General standards of conduct for ``special employees''.

    (a) Use of Government employment for private gain. You must not use 
your Government employment for a purpose that is (or gives the 
appearance of being) motivated by desire for private gain for yourself 
or anyone else, particularly anyone with whom you have family, business, 
or financial ties.
    (b) Use of Government employment for extortion. You must not use 
your Government employment to coerce (or appear to coerce) anyone to 
provide financial benefit to yourself of anyone else, particularly 
anyone with whom you have family, business, or financial ties.
    (c) Gifts and favors. On days when you are working at or for the NSF 
or in connection with NSF employment you

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must not seek or accept from anyone who has business with the NSF any 
gift, tip, loan, entertainment, or favor for yourself or anyone else, 
particularly anyone with whom you have family, business, or financial 
ties. This does not include promotional items of trivial value or a 
modest meal offered as a courtesy when there is no apparent connection 
with NSF business.
    (d) Misuse of Government property. You must not use Government 
property or services for your private benefit or for the private benefit 
of others, except as your public duties benefit particular members of 
the public in intended ways.
    (e) Familiarity with statutory provisions. You are legally 
responsible for acquainting yourself with each statute that relates to 
your ethical and other conduct as an NSF and Federal employee. Principal 
among these are the criminal statutes relating to bribery, graft, and 
conflicts of interests contained in 18 U.S.C. 201 through 209. The 
aspects of those statutory provisions that apply to you as an NSF 
``special employee'' are covered by these regulations. These regulations 
also cover the provisions of Executive Order 11222, which prescribes 
standards of ethical conduct for Government officers and employees, and 
regulations of the Office of Personnel and Management that implement 
both the statutory provisions and the Executive Order. If you follow the 
regulations, you should have no trouble with any of those provisions. 
The regulations do not cover a number of other statutes that you must 
obey as a Federal employee:
    (1) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913).
    (2) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 
18 U.S.C. 1918).
    (3) The prohibitions against disclosure of classified information 
(18 U.S.C. 798, 50 U.S.C. 783) and disclosure of confidential 
information (18 U.S.C. 1905).
    (4) The provision on habitual use of intoxicants to excess (5 U.S.C. 
7352).
    (5) The prohibition against misuse of a Government vehicle (31 
U.S.C. 638a(c)).
    (6) The prohibition against misuse of the franking privilege (18 
U.S.C. 1719).
    (7) The prohibition against use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917).
    (8) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001).
    (9) The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071).
    (10) The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508).
    (11) The prohibitions against embezzlement of Government money or 
property (18 U.S.C. 641), failing to account for public money (18 U.S.C. 
643), and embezzlement of the money or property of an employee by reason 
of his employment (18 U.S.C. 654).
    (12) The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285).
    (13) The prohibition against an employee acting as the agent of a 
foreign principal registered under the Foreign Agents Registration Act 
(18 U.S.C. 219).



Subpart B--Special Rules of the National Science Board for Board Members



Sec. 684.20  Summary.

    As a member of the National Science Board you are covered by rules 
for ``special employees'' described in subpart A of this part 684. In 
addition, Board deliberations raise a number of conflicts issues in a 
unique context. Moreover, Board members are highly visible Presidential 
appointees who retain private employment and other affiliations. 
Specifically, many of them are active scientists whose work has been 
supported by the NSF or other Federal agencies. For these reasons the 
Board has adopted the following specific conflict-of-interests rules for 
the governance of its members. You should also advise the Chairman of 
the Board of any interest or affiliation you have or propose to have 
that could create a significant appearance of conflict of interests in 
the work of the Board.

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Sec. 684.21  Participation in Board deliberations.

    (a) Abstention. You must excuse yourself from deliberations and 
votes of the Board or any of its committees on any action that would to 
your knowledge affect:
    (1) The interests of an institution with which you, your spouse, a 
minor child, a blood relative who lives with you, or anyone who is 
legally your partner has any of the affiliations listed in paragraph (b) 
of this section, or
    (2) The interests of an individual with whom you, your spouse, a 
minor child, a blood relative who lives with you, or anyone who is 
legally your partner has any of the relationships listed in paragraph 
(c) of this action.
    (b) Affiliations with affected institutions. (1) Ownership of the 
institution's stocks, bonds, notes, or other evidences of debt (other 
than through mutual funds).

    Note: Minor or indirect holdings may be exempted; check with the 
Chairman.

    (2) Current employment.
    (3) Any formal or informal arrangement for future employment.
    (4) Current appointment as professor, adjunct professor, visiting 
professor, or the like.
    (5) Governing board membership.
    (6) Chairmanship of any committee of the institution that has an 
interest in the Board's action.
    (7) Any other office (not including ordinary membership in a 
professional society or association).
    (8) Current membership on a visiting committee or similar body.

    Note: Individual waivers of this provision may be issued in 
appropriate circumstances; contact the Chairman.

    (9) Current enrollment as a student in a department or school that 
has an interest in the Board's action.
    (10) Any other affiliation with the institution that you think would 
destroy your objectivity or be seen as doing so by a reasonable person 
familiar with the affiliation.
    (c) Relationships with affected individuals. (1) Blood or marriage 
relationship with a principal investigator.
    (2) Any other relationship, such as close personal friendship, that 
you think might tend to destroy your objectivity or be seen as doing so 
by a reasonable person familiar with the relationship.



Sec. 684.22  Negotiations with NSF staff.

    During your term on the National Science Board you must not 
represent yourself or any other private party in negotiations or other 
dealings with an NSF official on any proposal, project, or other matter.

[48 FR 52732, Nov. 22, 1983]



Sec. 684.23  Participation in proposals and projects.

    (a) General; substitute negotiator. You may prepare a proposal for 
submission to the NSF and may be principal investigator on the proposal 
and on any subsequent award. The proposal should also name a substitute 
negotiator to represent the project and the institution in dealings with 
NSF officials from which you would be restricted as a member of the 
Board. If you were principal investigator under an existing award before 
your appointment to the Board, your institution will be asked to name a 
substitute negotiator for the same purpose before the appointment 
becomes official.
    (b) Scientific and technical information. You may respond to 
requests from a program officer or another NSF official for scientific 
and technical information relating to an award or proposal, such as 
might be needed to respond to reviewer comments. You must not, however, 
couple the information you supply with any attempt to influence action 
on the proposal other than what inheres in the provision of the 
information itself. (If possible, have someone else respond.)
    (c) Compensation; reimbursement of expenses. No NSF award made while 
you are a member of the Board may be charged for any compensation paid 
to you. An award may be charged, however, for actual expenses you incur 
in doing work supported by the award. If you are already an investigator 
or consultant under an NSF award when you became a Board member, the 
award may be charged for compensation to you to the extent established 
before your nomination.

[48 FR 52732, Nov. 22, 1983]

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PART 689--MISCONDUCT IN SCIENCE AND ENGINEERING--Table of Contents




Sec.
689.1  General policies and responsibilities.
689.2  Actions.
689.3  Role of awardee institutions.
689.4  Initial NSF handling of misconduct matters.
689.5  Investigations.
689.6  Pending proposals and awards.
689.7  Interim administrative actions.
689.8  Dispositions.
689.9  Appeals.

    Authority: Sec. 11(a), National Science Foundation Act of 1950, as 
amended (42 U.S.C. 1870(a)).

    Source:  56 FR 22287, May 14, 1991, unless otherwise noted.



Sec. 689.1  General policies and responsibilities.

    (a) Misconduct means
    (1) Fabrication, falsification, plagiarism, or other serious 
deviation from accepted practices in proposing, carrying out, or 
reporting results from activities funded by NSF; or
    (2) Retaliation of any kind against a person who reported or 
provided information about suspected or alleged misconduct and who has 
not acted in bad faith.
    (b) The NSF will take appropriate action against individuals or 
institutions upon a determination that misconduct has occurred in 
proposing, carrying out, or reporting results from activities funded by 
NSF. It may also take interim action during an investigation. Possible 
actions are described in Sec. 689.2.
    (c) NSF will find misconduct only after careful inquiry and 
investigation by an awardee institution, by another Federal agency, or 
by NSF. An ``inquiry'' consists of preliminary information-gathering and 
preliminary fact-finding to determine whether an allegation or apparent 
instance of misconduct has substance. An investigation must be 
undertaken if the inquiry determines the allegation or apparent instance 
of misconduct has substance. An ``investigation'' is a formal 
examination and evaluation of relevant facts to determine whether 
misconduct has taken place or, if misconduct has already been confirmed, 
to assess its extent and consequences or determine appropriate action.
    (d) Before NSF makes any final finding of misconduct or takes any 
final action on such a finding, NSF will normally afford the accused 
individual or institution notice, a chance to provide comments and 
rebuttal, and a chance to appeal. In structuring procedures in 
individual cases, NSF may take into account procedures already followed 
by other entities investigating the same allegation of misconduct.
    (e) Debarment or suspension for misconduct will be imposed only 
after further procedures described in applicable debarment and 
suspension regulations, as described in Secs. 689.7 and 689.8, 
respectively. Severe misconduct, as established under these regulations, 
is an independent cause for debarment or suspension under the procedures 
established by the debarment and suspension regulations.
    (f) The Office of Inspector General (OIG) oversees and coordinates 
NSF activities related to misconduct, conducts any NSF inquiries and 
investigations into suspected or alleged misconduct, and except where 
otherwise provided, speaks and acts for NSF with affected individuals 
and institutions.



Sec. 689.2  Actions.

    (a) Possible final actions listed below for guidance range from 
minimal restrictions (Group I) to the most severe and restrictive (Group 
II). They are not exhaustive and do not include possible criminal 
sanctions.
    (1) Group I Actions.
    (i) Send a letter of reprimand to the individual or institution.
    (ii) Require as a condition of an award that for a specified period 
an individual, department, or institution obtain special prior approval 
of particular activities from NSF.
    (iii) Require for a specified period that an institutional official 
other than those guilty of misconduct certify the accuracy of reports 
generated under an award or provide assurance of compliance with 
particular policies, regulations, guidelines, or special terms and 
conditions.
    (2) Group II Actions.
    (i) Restrict for a specified period designated activities or 
expenditures under an active award.

[[Page 255]]

    (ii) Require for a specified period special reviews of all requests 
for funding from an affected individual, department, or institution to 
ensure that steps have been taken to prevent repetition of the 
misconduct.
    (3) Group III Actions.
    (i) Immediately suspend or terminate an active award.
    (ii) Debar or suspend an individual, department, or institution from 
participation in NSF programs for a specified period after further 
proceedings under applicable regulations.
    (iii) Prohibit participation of an individual as an NSF reviewer, 
advisor, or consultant for a specified period.
    (b) In deciding what actions are appropriate when misconduct is 
found, NSF officials should consider:
    (1) How serious the misconduct was;
    (2) Whether it was deliberate or merely careless;
    (3) Whether it was an isolated event or part of a pattern;
    (4) Whether it is relevant only to certain funding requests or 
awards involving an institution or individual found guilty of 
misconduct.
    (c) Interim actions may include, but are not limitd to:
    (1) Totally or partially suspending an existing award;
    (2) Totally or partially suspending eligibility for NSF awards in 
accordance with debarment-and-suspension regulations;
    (3) Proscribing or restricting particular research activities, as, 
for example, to protect human or animal subjects;
    (4) Requiring special certifications, assurances, or other, 
administrative arrangements to ensure compliance with applicable 
regulations or terms of the award;
    (5) Requiring more prior approvals by NSF;
    (6) Deferring funding action on continuing grant increments;
    (7) Deferring a pending award;
    (8) Restricting or suspending use of individuals as NSF reviewers, 
advisors, or consultants.
    (d) For those cases governed by the debarment and suspension 
regulations, the standards of proof contained in those regulations shall 
control. Otherwise, NSF will take no final action under this section 
without a finding of misconduct supported by a preponderance of the 
relevant evidence.



Sec. 689.3  Role of awardee institutions.

    (a) Awardee institutions bear primary responsibility for prevention 
and detection of misconduct. In most instances, NSF will rely on awardee 
institutions to promptly;
    (1) Initiate an inquiry into any suspected or alleged misconduct;
    (2) Conduct a subsequent investigation, if warranted; and
    (3) Take action necessary to ensure the integrity of research, the 
rights and interests of research subjects and the public, and the 
observance of legal requirements or responsibilities.
    (b) If an institution wishes NSF to defer independent inquiry or 
investigation, NSF expects it to;
    (1) Inform NSF immediately if an initial inquiry supports a formal 
investigation.
    (2) Keep NSF informed during such an investigation.
    (3) Notify NSF even before deciding to initiate an investigation or 
as required during an investigation
    (i) If the seriousness of apparent misconduct warrants;
    (ii) If immediate health hazards are involved;
    (iii) If NSF's resources, reputation, or other interests need 
protecting;
    (iv) If Federal action may be needed to protect the interests of a 
subject of the investigation or of others potentially affected; or
    (v) If the scientific community or the public should be informed.
    (4) Provide NSF with the final report from any investigation.
    (c) If an institution wishes NSF to defer independent inquiry or 
investigation, it should complete any inquiry and decide whether an 
investigation is warranted within 90 days. It should similarly complete 
any investigation and reach a disposition within 180 days. If completion 
of an inquiry or investigation is delayed, but the institution wishes 
NSF deferral to continue, NSF may require submission of periodic status 
reports.
    (d) Awardee institutions should maintain and effectively communicate 
to their staffs appropriate policies and procedures relating to 
misconduct,

[[Page 256]]

which should indicate when NSF must or should be notified.



Sec. 689.4  Initial NSF handling of misconduct matters

    (a) NSF staff who learn of alleged misconduct will promptly and 
discreetly inform OIG or refer informants to OIG.
    (b) To the extent possible the identify of informants who wish to 
remain anonymous will be kept confidential. To the extent allowed by 
law, documents and files maintained by NSF during the course of an 
inquiry or investigation of misconduct will be treated as investigative 
files exempt from mandatory pubic disclosure upon request under the 
Freedom of Information Act.
    (c) If alleged misconduct may involve a crime, OIG will determine 
whether any criminal investigation is already pending or projected. If 
not, OIG will determine whether the matter should be referred to the 
Department of Justice.
    (d) Otherwise OIG may:
    (1) Inform the awardee institution of the alleged misconduct and 
encourage it to undertake an inquiry;
    (2) Defer to inquiries or investigations of the awardee institution 
or of another Federal agency;
    (3) At any time proceed with its own inquiry.
    (e) If OIG proceeds with its own inquiry it will normally complete 
the inquiry no more than 60 days after initiating it.
    (f) On the basis of what it learns from an inquiry and in 
consultation as appropriate with other NSF offices, OIG will decide 
whether a formal NSF investigation is warranted.



Sec. 689.5  Investigations

    (a) When an awardee institution or another Federal agency has 
promptly initiated its own investigation, OIG may defer an NSF inquiry 
or investigation until it receives the results of that external 
investigation. If it does not receive the results within 180 days, OIG 
will ordinarily proceed with its own investigation.
    (b) If OIG decides to initiate an NSF investigation, it must give 
prompt written notice to the individual or institutions to be 
investigated, unless notice would prejudice the investigation or unless 
a criminal investigation is underway or under active consideration. if 
notice is delayed, it must be given as soon as it will no longer 
prejudice the investigation or contravene requirements of law or Federal 
law-enforcement policies.
    (c) If a criminal investigation by the Department of Justice, the 
Federal Bureau of Investigation, or another Federal agency is underway 
or under active consideration by these agencies or the NSF, OIG will 
determine what information, if any, may be disclosed to the subject of 
the investigation or to other NSF employees.
    (d) An NSF investigation may include:
    (1) Review of award files, reports, and other documents already 
readily available at NSF or in the public domain;
    (2) Review of procedures or methods and inspection of laboratory 
materials, specimens, and records at awardee institutions;
    (3) Interviews with parties or witnesses;
    (4) Review of any documents or other evidence provided by or 
properly obtainable from parties, witnesses, or other sources;
    (5) Cooperation with other Federal agencies;
    (6) Opportunity for the subject of the investigation to be heard; 
and
    (7) Full adjudicatory hearings or other formal proceedings, as 
described in appropriate regulations.
    (e) NSF may invite outside consultants or experts to participate in 
an NSF investigation. They should be appointed in a manner that ensures 
the official nature of their involvement and provides them with legal 
protections available to federal employees.
    (f) OIG will make every reasonable effort to complete an NSF 
investigation and to report within 120 days after initiating it. If OIG 
cannot report within 120 days, it should submit to the Deputy Director 
within 90 days an interim report and an estimated schedule for 
completion of the final report.



Sec. 689.6  Pending proposals and awards.

    (a) Upon learning of alleged misconduct OIG will identify 
potentially

[[Page 257]]

implicated awards or proposals and when appropriate, will ensure that 
program, grant, and contracting officers handling them are informed 
(subject to Sec. 689.5(c)).
    (b) Neither a suspicion or allegation of misconduct nor a pending 
inquiry or investigation will normally delay review of proposals. To 
avoid influencing reviews, reviewers or panelists will not be informed 
of allegations or of ongoing inquiries or investigations. However, if 
allegations, inquiries, or investigations have been rumored or 
publicized, the responsible Assistant Director may, in consultation with 
OIG, either defer review or inform reviewers of the status of the 
matter.

[56 FR 22287, May 14, 1991, as amended at 59 FR 37438, July 22, 1994]



Sec. 689.7  Interim administrative actions.

    (a) After an inquiry or during an external or NSF investigation the 
Deputy Director may order that interim actions (as described in 
Sec. 689.2(c)) be taken to protect Federal resources or to guard against 
continuation of any suspected or alleged misconduct. Such an order will 
normally be issued on recommendation from OIG and in consultation with 
the Division of Contracts, Policy, and Oversight or Division of Grants 
and Agreements, the Office of the General Counsel, the responsible 
Directorate, and other parts of the Foundation as appropriate.
    (b) When suspension is determined to be appropriate, the case will 
be referred to the suspending official pursuant to 45 CFR 620.410(a), 
and the suspension procedures of 45 CFR part 620 will be followed, but 
the suspending official (see Sec. 620.105(t)) will be either the Deputy 
Director or an official designated by the Deputy Director.
    (c) Such interim actions may be taken whenever information developed 
during an investigation indicates a need to do so. Any interim action 
will be reviewed periodically during an investigation and modified as 
warranted. An interested party may request a review and modification of 
any interim action.
    (d) The Deputy Director will make and OIG will retain a record of 
interim actions taken and the reasons for taking them.
    (e) Interim administrative actions are not final agency actions 
subject to appeal.

[56 FR 22287, May 14, 1991, as amended at 59 FR 37439, July 22, 1994]



Sec. 689.8  Dispositions.

    (a) After receiving a report from an external investigation by an 
awardee institution or another Federal agency, OIG will assess the 
accuracy and completeness of the report and whether the investigating 
entity followed usual and reasonable procedures. It will either 
recommend adoption of the findings in whole or in part or, normally 
within 30 days, initiate a new investigation.
    (b) When any satisfactory external investigation or an NSF 
investigation fails to confirm alleged misconduct and the Deputy 
Director concurs,
    (1) OIG will noitfy the subject of the investigation and, if 
appropriate, those who reported the suspected or alleged misconduct. 
This notification may include the investigation report.
    (2) Any interim administrative restrictions that were imposed will 
be lifted.
    (c) When any satisfactory investigation confirms misconduct,
    (1) In cases in which debarment is considered by OIG to be an 
appropriate disposition, the case will be referred to the debarring 
official pursuant to 45 CFR 620.311, and the procedures of 45 CFR part 
620 will be followed, but:
    (i) The debarring official (see Sec. 620.105(g)) will be either the 
Deputy Director, or an official designated by the Deputy Director.
    (ii) Except in unusual circumstances, the investigation report will 
be included among the materials provided to the subject of the 
investigation as part of the notice of proposed debarment (see 
Sec. 620.312).
    (iii) The notice of the debarring official's decision (see 
Sec. 620.314(d)) will include instructions on how to pursue an appeal to 
the Director.
    (2) In all other cases,
    (i) Except in unusual circumstances, the investigation report will 
be provided by OIG to the subject of the investigation, who will be 
invited to submit comments or rebuttal. Comments or rebuttal submitted 
within the period

[[Page 258]]

allowed, normally thirty days, will receive full consideration and may 
lead to revision of the report or of a recommended disposition.
    (ii) Normally within 45 days after completing an NSF investigation 
or receiving the report from a satisfactory external investigation, OIG 
will submit to the Deputy Director the investigation report, any 
comments or rebuttal from the subject of the investigation, and a 
recommended disposition. The recommended disposition will propose any 
final actions to be taken by NSF. Section 689.2 lists possible final 
actions and considerations to be used in determining them.
    (iii) The Deputy Director will review the investigation report and 
OIG's recommended disposition. Before issuing a disposition the Deputy 
Director may initiate further hearings or investigation. Normally within 
thirty days after receiving OIG's recommendations or after completion of 
any further proceedings, the Deputy Director will send the affected 
individual or institution a written disposition, specifying actions to 
be taken. The decision will include instructions on how to pursue an 
appeal to the Director.



Sec. 689.9  Appeals.

    (a) An affected individual or institution may appeal to the Director 
in writing within 30 days after receiving the Deputy Director's written 
decision. The Deputy Director's decision becomes a final administrative 
action if it is not appealed within the 30 day period.
    (b) The Director may appoint an uninvolved NSF officer or employee 
to review an appeal and make recommendations.
    (c) The Director will inform the appellant of a final decision 
within 30 days after receiving the appeal. That decision will be the 
final administrative action of the Foundation. Findings from completed 
investigations may be shared with scientific review groups if the 
information bears directly on an investigator's scientific integrity or 
if necessary to provide an accurate account of relevant facts.



PART 690--PROTECTION OF HUMAN SUBJECTS--Table of Contents




Sec.
690.101  To what does this policy apply?
690.102  Definitions.
690.103  Assuring compliance with this policy--research conducted or 
          supported by any Federal Department or Agency.
690.104--690.106  [Reserved]
690.107  IRB Membership.
690.108  IRB functions and operations.
690.109  IRB review of research.
690.110  Expedited review procedures for certain kinds of research 
          involving no more than minimal risk, and for minor changes in 
          approved research.
690.111  Criteria for IRB approval of research.
690.112  Review by institution.
690.113  Suspension or termination of IRB approval of research.
690.114  Cooperative research.
690.115  IRB records.
690.116  General requirements for informed consent.
690.117  Documentation of informed consent.
690.118  Applications and proposals lacking definite plans for 
          involvement of human subjects.
690.119  Research undertaken without the intention of involving human 
          subjects.
690.120  Evaluation and disposition of applications and proposals for 
          research to be conducted or supported by a Federal Department 
          or Agency.
690.121  [Reserved]
690.122  Use of Federal funds.
690.123  Early termination of research support: Evaluation of 
          applications and proposals.
690.124  Conditions.

    Authority: 5 U.S.C. 301; 42 U.S.C. 300v-1(b).

    Source: 56 FR 28012, 28022, June 18, 1991, unless otherwise noted.



Sec. 690.101  To what does this policy apply?

    (a) Except as provided in paragraph (b) of this section, this policy 
applies to all research involving human subjects conducted, supported or 
otherwise subject to regulation by any federal department or agency 
which takes appropriate administrative action to make the policy 
applicable to such research. This includes research conducted by federal 
civilian employees or military personnel, except that each department

[[Page 259]]

or agency head may adopt such procedural modifications as may be 
appropriate from an administrative standpoint. It also includes research 
conducted, supported, or otherwise subject to regulation by the federal 
government outside the United States.
    (1) Research that is conducted or supported by a federal department 
or agency, whether or not it is regulated as defined in Sec. 690.102(e), 
must comply with all sections of this policy.
    (2) Research that is neither conducted nor supported by a federal 
department or agency but is subject to regulation as defined in 
Sec. 690.102(e) must be reviewed and approved, in compliance with 
Sec. 690.101, Sec. 690.102, and Sec. 690.107 through Sec. 690.117 of 
this policy, by an institutional review board (IRB) that operates in 
accordance with the pertinent requirements of this policy.
    (b) Unless otherwise required by department or agency heads, 
research activities in which the only involvement of human subjects will 
be in one or more of the following categories are exempt from this 
policy:
    (1) Research conducted in established or commonly accepted 
educational settings, involving normal educational practices, such as 
(i) research on regular and special education instructional strategies, 
or (ii) research on the effectiveness of or the comparison among 
instructional techniques, curricula, or classroom management methods.
    (2) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures or observation of public behavior, unless:
    (i) Information obtained is recorded in such a manner that human 
subjects can be identified, directly or through identifiers linked to 
the subjects; and (ii) any disclosure of the human subjects' responses 
outside the research could reasonably place the subjects at risk of 
criminal or civil liability or be damaging to the subjects' financial 
standing, employability, or reputation.
    (3) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures, or observation of public behavior that is not exempt under 
paragraph (b)(2) of this section, if:
    (i) The human subjects are elected or appointed public officials or 
candidates for public office; or (ii) federal statute(s) require(s) 
without exception that the confidentiality of the personally 
identifiable information will be maintained throughout the research and 
thereafter.
    (4) Research, involving the collection or study of existing data, 
documents, records, pathological specimens, or diagnostic specimens, if 
these sources are publicly available or if the information is recorded 
by the investigator in such a manner that subjects cannot be identified, 
directly or through identifiers linked to the subjects.
    (5) Research and demonstration projects which are conducted by or 
subject to the approval of department or agency heads, and which are 
designed to study, evaluate, or otherwise examine:
    (i) Public benefit or service programs; (ii) procedures for 
obtaining benefits or services under those programs; (iii) possible 
changes in or alternatives to those programs or procedures; or (iv) 
possible changes in methods or levels of payment for benefits or 
services under those programs.
    (6) Taste and food quality evaluation and consumer acceptance 
studies, (i) if wholesome foods without additives are consumed or (ii) 
if a food is consumed that contains a food ingredient at or below the 
level and for a use found to be safe, or agricultural chemical or 
environmental contaminant at or below the level found to be safe, by the 
Food and Drug Administration or approved by the Environmental Protection 
Agency or the Food Safety and Inspection Service of the U.S. Department 
of Agriculture.
    (c) Department or agency heads retain final judgment as to whether a 
particular activity is covered by this policy.
    (d) Department or agency heads may require that specific research 
activities or classes of research activities conducted, supported, or 
otherwise subject to regulation by the department or agency but not 
otherwise covered by this policy, comply with some or all of the 
requirements of this policy.

[[Page 260]]

    (e) Compliance with this policy requires compliance with pertinent 
federal laws or regulations which provide additional protections for 
human subjects.
    (f) This policy does not affect any state or local laws or 
regulations which may otherwise be applicable and which provide 
additional protections for human subjects.
    (g) This policy does not affect any foreign laws or regulations 
which may otherwise be applicable and which provide additional 
protections to human subjects of research.
    (h) When research covered by this policy takes place in foreign 
countries, procedures normally followed in the foreign countries to 
protect human subjects may differ from those set forth in this policy. 
[An example is a foreign institution which complies with guidelines 
consistent with the World Medical Assembly Declaration (Declaration of 
Helsinki amended 1989) issued either by sovereign states or by an 
organization whose function for the protection of human research 
subjects is internationally recognized.] In these circumstances, if a 
department or agency head determines that the procedures prescribed by 
the institution afford protections that are at least equivalent to those 
provided in this policy, the department or agency head may approve the 
substitution of the foreign procedures in lieu of the procedural 
requirements provided in this policy. Except when otherwise required by 
statute, Executive Order, or the department or agency head, notices of 
these actions as they occur will be published in the Federal Register or 
will be otherwise published as provided in department or agency 
procedures.
    (i) Unless otherwise required by law, department or agency heads may 
waive the applicability of some or all of the provisions of this policy 
to specific research activities or classes of research activities 
otherwise covered by this policy. Except when otherwise required by 
statute or Executive Order, the department or agency head shall forward 
advance notices of these actions to the Office for Protection from 
Research Risks, Department of Health and Human Services (HHS), and shall 
also publish them in the Federal Register or in such other manner as 
provided in department or agency procedures.\1\
---------------------------------------------------------------------------

    \1\ Institutions with HHS-approved assurances on file will abide by 
provisions of title 45 CFR part 46 subparts A-D. Some of the other 
Departments and Agencies have incorporated all provisions of title 45 
CFR part 46 into their policies and procedures as well. However, the 
exemptions at 45 CFR 46.101(b) do not apply to research involving 
prisoners, fetuses, pregnant women, or human in vitro fertilization, 
subparts B and C. The exemption at 45 CFR 46.101(b)(2), for research 
involving survey or interview procedures or observation of public 
behavior, does not apply to research with children, subpart D, except 
for research involving observations of public behavior when the 
investigator(s) do not participate in the activities being observed.
---------------------------------------------------------------------------

[56 FR 28012, 28022, June 18, 1991; 56 FR 29756, June 28, 1991]



Sec. 690.102  Definitions.

    (a) Department or agency head means the head of any federal 
department or agency and any other officer or employee of any department 
or agency to whom authority has been delegated.
    (b) Institution means any public or private entity or agency 
(including federal, state, and other agencies).
    (c) Legally authorized representative means an individual or 
judicial or other body authorized under applicable law to consent on 
behalf of a prospective subject to the subject's participation in the 
procedure(s) involved in the research.
    (d) Research means a systematic investigation, including research 
development, testing and evaluation, designed to develop or contribute 
to generalizable knowledge. Activities which meet this definition 
constitute research for purposes of this policy, whether or not they are 
conducted or supported under a program which is considered research for 
other purposes. For example, some demonstration and service programs may 
include research activities.
    (e) Research subject to regulation, and similar terms are intended 
to encompass those research activities for which a federal department or 
agency has specific responsibility for regulating as a research 
activity, (for example, Investigational New Drug requirements

[[Page 261]]

administered by the Food and Drug Administration). It does not include 
research activities which are incidentally regulated by a federal 
department or agency solely as part of the department's or agency's 
broader responsibility to regulate certain types of activities whether 
research or non-research in nature (for example, Wage and Hour 
requirements administered by the Department of Labor).
    (f) Human subject means a living individual about whom an 
investigator (whether professional or student) conducting research 
obtains
    (1) Data through intervention or interaction with the individual, or
    (2) Identifiable private information.
Intervention includes both physical procedures by which data are 
gathered (for example, venipuncture) and manipulations of the subject or 
the subject's environment that are performed for research purposes. 
Interaction includes communication or interpersonal contact between 
investigator and subject. ``Private information'' includes information 
about behavior that occurs in a context in which an individual can 
reasonably expect that no observation or recording is taking place, and 
information which has been provided for specific purposes by an 
individual and which the individual can reasonably expect will not be 
made public (for example, a medical record). Private information must be 
individually identifiable (i.e., the identity of the subject is or may 
readily be ascertained by the investigator or associated with the 
information) in order for obtaining the information to constitute 
research involving human subjects.
    (g) IRB means an institutional review board established in accord 
with and for the purposes expressed in this policy.
    (h) IRB approval means the determination of the IRB that the 
research has been reviewed and may be conducted at an institution within 
the constraints set forth by the IRB and by other institutional and 
federal requirements.
    (i) Minimal risk means that the probability and magnitude of harm or 
discomfort anticipated in the research are not greater in and of 
themselves than those ordinarily encountered in daily life or during the 
performance of routine physical or psychological examinations or tests.
    (j) Certification means the official notification by the institution 
to the supporting department or agency, in accordance with the 
requirements of this policy, that a research project or activity 
involving human subjects has been reviewed and approved by an IRB in 
accordance with an approved assurance.



Sec. 690.103  Assuring compliance with this policy--research conducted or supported by any Federal Department or Agency.

    (a) Each institution engaged in research which is covered by this 
policy and which is conducted or supported by a federal department or 
agency shall provide written assurance satisfactory to the department or 
agency head that it will comply with the requirements set forth in this 
policy. In lieu of requiring submission of an assurance, individual 
department or agency heads shall accept the existence of a current 
assurance, appropriate for the research in question, on file with the 
Office for Protection from Research Risks, HHS, and approved for 
federalwide use by that office. When the existence of an HHS-approved 
assurance is accepted in lieu of requiring submission of an assurance, 
reports (except certification) required by this policy to be made to 
department and agency heads shall also be made to the Office for 
Protection from Research Risks, HHS.
    (b) Departments and agencies will conduct or support research 
covered by this policy only if the institution has an assurance approved 
as provided in this section, and only if the institution has certified 
to the department or agency head that the research has been reviewed and 
approved by an IRB provided for in the assurance, and will be subject to 
continuing review by the IRB. Assurances applicable to federally 
supported or conducted research shall at a minimum include:
    (1) A statement of principles governing the institution in the 
discharge of its responsibilities for protecting the rights and welfare 
of human subjects of research conducted at or sponsored by the 
institution, regardless of whether

[[Page 262]]

the research is subject to federal regulation. This may include an 
appropriate existing code, declaration, or statement of ethical 
principles, or a statement formulated by the institution itself. This 
requirement does not preempt provisions of this policy applicable to 
department- or agency-supported or regulated research and need not be 
applicable to any research exempted or waived under Sec. 690.101 (b) or 
(i).
    (2) Designation of one or more IRBs established in accordance with 
the requirements of this policy, and for which provisions are made for 
meeting space and sufficient staff to support the IRB's review and 
recordkeeping duties.
    (3) A list of IRB members identified by name; earned degrees; 
representative capacity; indications of experience such as board 
certifications, licenses, etc., sufficient to describe each member's 
chief anticipated contributions to IRB deliberations; and any employment 
or other relationship between each member and the institution; for 
example: full-time employee, part-time employee, member of governing 
panel or board, stockholder, paid or unpaid consultant. Changes in IRB 
membership shall be reported to the department or agency head, unless in 
accord with Sec. 690.103(a) of this policy, the existence of an HHS-
approved assurance is accepted. In this case, change in IRB membership 
shall be reported to the Office for Protection from Research Risks, HHS.
    (4) Written procedures which the IRB will follow (i) for conducting 
its initial and continuing review of research and for reporting its 
findings and actions to the investigator and the institution; (ii) for 
determining which projects require review more often than annually and 
which projects need verification from sources other than the 
investigators that no material changes have occurred since previous IRB 
review; and (iii) for ensuring prompt reporting to the IRB of proposed 
changes in a research activity, and for ensuring that such changes in 
approved research, during the period for which IRB approval has already 
been given, may not be initiated without IRB review and approval except 
when necessary to eliminate apparent immediate hazards to the subject.
    (5) Written procedures for ensuring prompt reporting to the IRB, 
appropriate institutional officials, and the department or agency head 
of (i) any unanticipated problems involving risks to subjects or others 
or any serious or continuing noncompliance with this policy or the 
requirements or determinations of the IRB and (ii) any suspension or 
termination of IRB approval.
    (c) The assurance shall be executed by an individual authorized to 
act for the institution and to assume on behalf of the institution the 
obligations imposed by this policy and shall be filed in such form and 
manner as the department or agency head prescribes.
    (d) The department or agency head will evaluate all assurances 
submitted in accordance with this policy through such officers and 
employees of the department or agency and such experts or consultants 
engaged for this purpose as the department or agency head determines to 
be appropriate. The department or agency head's evaluation will take 
into consideration the adequacy of the proposed IRB in light of the 
anticipated scope of the institution's research activities and the types 
of subject populations likely to be involved, the appropriateness of the 
proposed initial and continuing review procedures in light of the 
probable risks, and the size and complexity of the institution.
    (e) On the basis of this evaluation, the department or agency head 
may approve or disapprove the assurance, or enter into negotiations to 
develop an approvable one. The department or agency head may limit the 
period during which any particular approved assurance or class of 
approved assurances shall remain effective or otherwise condition or 
restrict approval.
    (f) Certification is required when the research is supported by a 
federal department or agency and not otherwise exempted or waived under 
Sec. 690.101 (b) or (i). An institution with an approved assurance shall 
certify that each application or proposal for research covered by the 
assurance and by Sec. 690.103 of this Policy has been reviewed and 
approved by the IRB. Such certification must be

[[Page 263]]

submitted with the application or proposal or by such later date as may 
be prescribed by the department or agency to which the application or 
proposal is submitted. Under no condition shall research covered by 
Sec. 690.103 of the Policy be supported prior to receipt of the 
certification that the research has been reviewed and approved by the 
IRB. Institutions without an approved assurance covering the research 
shall certify within 30 days after receipt of a request for such a 
certification from the department or agency, that the application or 
proposal has been approved by the IRB. If the certification is not 
submitted within these time limits, the application or proposal may be 
returned to the institution.

(Approved by the Office of Management and Budget under control number 
9999-0020)

[56 FR 28012, 28022, June 18, 1991; 56 FR 29756, June 28, 1991]
Secs. 690.104--690.106  [Reserved]



Sec.  690.107  IRB membership.

    (a) Each IRB shall have at least five members, with varying 
backgrounds to promote complete and adequate review of research 
activities commonly conducted by the institution. The IRB shall be 
sufficiently qualified through the experience and expertise of its 
members, and the diversity of the members, including consideration of 
race, gender, and cultural backgrounds and sensitivity to such issues as 
community attitudes, to promote respect for its advice and counsel in 
safeguarding the rights and welfare of human subjects. In addition to 
possessing the professional competence necessary to review specific 
research activities, the IRB shall be able to ascertain the 
acceptability of proposed research in terms of institutional commitments 
and regulations, applicable law, and standards of professional conduct 
and practice. The IRB shall therefore include persons knowledgeable in 
these areas. If an IRB regularly reviews research that involves a 
vulnerable category of subjects, such as children, prisoners, pregnant 
women, or handicapped or mentally disabled persons, consideration shall 
be given to the inclusion of one or more individuals who are 
knowledgeable about and experienced in working with these subjects.
    (b) Every nondiscriminatory effort will be made to ensure that no 
IRB consists entirely of men or entirely of women, including the 
institution's consideration of qualified persons of both sexes, so long 
as no selection is made to the IRB on the basis of gender. No IRB may 
consist entirely of members of one profession.
    (c) Each IRB shall include at least one member whose primary 
concerns are in scientific areas and at least one member whose primary 
concerns are in nonscientific areas.
    (d) Each IRB shall include at least one member who is not otherwise 
affiliated with the institution and who is not part of the immediate 
family of a person who is affiliated with the institution.
    (e) No IRB may have a member participate in the IRB's initial or 
continuing review of any project in which the member has a conflicting 
interest, except to provide information requested by the IRB.
    (f) An IRB may, in its discretion, invite individuals with 
competence in special areas to assist in the review of issues which 
require expertise beyond or in addition to that available on the IRB. 
These individuals may not vote with the IRB.



Sec. 690.108  IRB functions and operations.

    In order to fulfill the requirements of this policy each IRB shall:
    (a) Follow written procedures in the same detail as described in 
Sec. 690.103(b)(4) and, to the extent required by, Sec. 690.103(b)(5).
    (b) Except when an expedited review procedure is used (see 
Sec. 690.110), review proposed research at convened meetings at which a 
majority of the members of the IRB are present, including at least one 
member whose primary concerns are in nonscientific areas. In order for 
the research to be approved, it shall receive the approval of a majority 
of those members present at the meeting.

[[Page 264]]



Sec. 690.109  IRB Review of Research.

    (a) An IRB shall review and have authority to approve, require 
modifications in (to secure approval), or disapprove all research 
activities covered by this policy.
    (b) An IRB shall require that information given to subjects as part 
of informed consent is in accordance with Sec. 690.116. The IRB may 
require that information, in addition to that specifically mentioned in 
Sec. 690.116, be given to the subjects when in the IRB's judgment the 
information would meaningfully add to the protection of the rights and 
welfare of subjects.
    (c) An IRB shall require documentation of informed consent or may 
waive documentation in accordance with Sec. 690.117.
    (d) An IRB shall notify investigators and the institution in writing 
of its decision to approve or disapprove the proposed research activity, 
or of modifications required to secure IRB approval of the research 
activity. If the IRB decides to disapprove a research activity, it shall 
include in its written notification a statement of the reasons for its 
decision and give the investigator an opportunity to respond in person 
or in writing.
    (e) An IRB shall conduct continuing review of research covered by 
this policy at intervals appropriate to the degree of risk, but not less 
than once per year, and shall have authority to observe or have a third 
party observe the consent process and the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 690.110  Expedited review procedures for certain kinds of research involving no more than minimal risk, and for minor changes in approved research.

    (a) The Secretary, HHS, has established, and published as a Notice 
in the Federal Register, a list of categories of research that may be 
reviewed by the IRB through an expedited review procedure. The list will 
be amended, as appropriate after consultation with other departments and 
agencies, through periodic republication by the Secretary, HHS, in the 
Federal Register. A copy of the list is available from the Office for 
Protection from Research Risks, National Institutes of Health, HHS, 
Bethesda, Maryland 20892.
    (b) An IRB may use the expedited review procedure to review either 
or both of the following:
    (1) Some or all of the research appearing on the list and found by 
the reviewer(s) to involve no more than minimal risk,
    (2) Minor changes in previously approved research during the period 
(of one year or less) for which approval is authorized.

Under an expedited review procedure, the review may be carried out by 
the IRB chairperson or by one or more experienced reviewers designated 
by the chairperson from among members of the IRB. In reviewing the 
research, the reviewers may exercise all of the authorities of the IRB 
except that the reviewers may not disapprove the research. A research 
activity may be disapproved only after review in accordance with the 
non-expedited procedure set forth in Sec. 690.108(b).
    (c) Each IRB which uses an expedited review procedure shall adopt a 
method for keeping all members advised of research proposals which have 
been approved under the procedure.
    (d) The department or agency head may restrict, suspend, terminate, 
or choose not to authorize an institution's or IRB's use of the 
expedited review procedure.



Sec. 690.111  Criteria for IRB approval of research.

    (a) In order to approve research covered by this policy the IRB 
shall determine that all of the following requirements are satisfied:
    (1) Risks to subjects are minimized: (i) By using procedures which 
are consistent with sound research design and which do not unnecessarily 
expose subjects to risk, and (ii) whenever appropriate, by using 
procedures already being performed on the subjects for diagnostic or 
treatment purposes.
    (2) Risks to subjects are reasonable in relation to anticipated 
benefits, if any, to subjects, and the importance of the knowledge that 
may reasonably be expected to result. In evaluating risks and benefits, 
the IRB should consider only those risks and benefits that may

[[Page 265]]

result from the research (as distinguished from risks and benefits of 
therapies subjects would receive even if not participating in the 
research). The IRB should not consider possible long-range effects of 
applying knowledge gained in the research (for example, the possible 
effects of the research on public policy) as among those research risks 
that fall within the purview of its responsibility.
    (3) Selection of subjects is equitable. In making this assessment 
the IRB should take into account the purposes of the research and the 
setting in which the research will be conducted and should be 
particularly cognizant of the special problems of research involving 
vulnerable populations, such as children, prisoners, pregnant women, 
mentally disabled persons, or economically or educationally 
disadvantaged persons.
    (4) Informed consent will be sought from each prospective subject or 
the subject's legally authorized representative, in accordance with, and 
to the extent required by Sec. 690.116.
    (5) Informed consent will be appropriately documented, in accordance 
with, and to the extent required by Sec. 690.117.
    (6) When appropriate, the research plan makes adequate provision for 
monitoring the data collected to ensure the safety of subjects.
    (7) When appropriate, there are adequate provisions to protect the 
privacy of subjects and to maintain the confidentiality of data.
    (b) When some or all of the subjects are likely to be vulnerable to 
coercion or undue influence, such as children, prisoners, pregnant 
women, mentally disabled persons, or economically or educationally 
disadvantaged persons, additional safeguards have been included in the 
study to protect the rights and welfare of these subjects.



Sec. 690.112  Review by institution.

    Research covered by this policy that has been approved by an IRB may 
be subject to further appropriate review and approval or disapproval by 
officials of the institution. However, those officials may not approve 
the research if it has not been approved by an IRB.



Sec. 690.113  Suspension or termination of IRB approval of research.

    An IRB shall have authority to suspend or terminate approval of 
research that is not being conducted in accordance with the IRB's 
requirements or that has been associated with unexpected serious harm to 
subjects. Any suspension or termination of approval shall include a 
statement of the reasons for the IRB's action and shall be reported 
promptly to the investigator, appropriate institutional officials, and 
the department or agency head.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 690.114  Cooperative research.

    Cooperative research projects are those projects covered by this 
policy which involve more than one institution. In the conduct of 
cooperative research projects, each institution is responsible for 
safeguarding the rights and welfare of human subjects and for complying 
with this policy. With the approval of the department or agency head, an 
institution participating in a cooperative project may enter into a 
joint review arrangement, rely upon the review of another qualified IRB, 
or make similar arrangements for avoiding duplication of effort.



Sec. 690.115  IRB records.

    (a) An institution, or when appropriate an IRB, shall prepare and 
maintain adequate documentation of IRB activities, including the 
following:
    (1) Copies of all research proposals reviewed, scientific 
evaluations, if any, that accompany the proposals, approved sample 
consent documents, progress reports submitted by investigators, and 
reports of injuries to subjects.
    (2) Minutes of IRB meetings which shall be in sufficient detail to 
show attendance at the meetings; actions taken by the IRB; the vote on 
these actions including the number of members voting for, against, and 
abstaining; the basis for requiring changes in or disapproving research; 
and a written summary of the discussion of controverted issues and their 
resolution.
    (3) Records of continuing review activities.

[[Page 266]]

    (4) Copies of all correspondence between the IRB and the 
investigators.
    (5) A list of IRB members in the same detail as described is 
Sec. 690.103(b)(3).
    (6) Written procedures for the IRB in the same detail as described 
in Sec. 690.103(b)(4) and Sec. 690.103(b)(5).
    (7) Statements of significant new findings provided to subjects, as 
required by Sec. 690.116(b)(5).
    (b) The records required by this policy shall be retained for at 
least 3 years, and records relating to research which is conducted shall 
be retained for at least 3 years after completion of the research. All 
records shall be accessible for inspection and copying by authorized 
representatives of the department or agency at reasonable times and in a 
reasonable manner.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 690.116  General requirements for informed consent.

    Except as provided elsewhere in this policy, no investigator may 
involve a human being as a subject in research covered by this policy 
unless the investigator has obtained the legally effective informed 
consent of the subject or the subject's legally authorized 
representative. An investigator shall seek such consent only under 
circumstances that provide the prospective subject or the representative 
sufficient opportunity to consider whether or not to participate and 
that minimize the possibility of coercion or undue influence. The 
information that is given to the subject or the representative shall be 
in language understandable to the subject or the representative. No 
informed consent, whether oral or written, may include any exculpatory 
language through which the subject or the representative is made to 
waive or appear to waive any of the subject's legal rights, or releases 
or appears to release the investigator, the sponsor, the institution or 
its agents from liability for negligence.
    (a) Basic elements of informed consent. Except as provided in 
paragraph (c) or (d) of this section, in seeking informed consent the 
following information shall be provided to each subject:
    (1) A statement that the study involves research, an explanation of 
the purposes of the research and the expected duration of the subject's 
participation, a description of the procedures to be followed, and 
identification of any procedures which are experimental;
    (2) A description of any reasonably foreseeable risks or discomforts 
to the subject;
    (3) A description of any benefits to the subject or to others which 
may reasonably be expected from the research;
    (4) A disclosure of appropriate alternative procedures or courses of 
treatment, if any, that might be advantageous to the subject;
    (5) A statement describing the extent, if any, to which 
confidentiality of records identifying the subject will be maintained;
    (6) For research involving more than minimal risk, an explanation as 
to whether any compensation and an explanation as to whether any medical 
treatments are available if injury occurs and, if so, what they consist 
of, or where further information may be obtained;
    (7) An explanation of whom to contact for answers to pertinent 
questions about the research and research subjects' rights, and whom to 
contact in the event of a research-related injury to the subject; and
    (8) A statement that participation is voluntary, refusal to 
participate will involve no penalty or loss of benefits to which the 
subject is otherwise entitled, and the subject may discontinue 
participation at any time without penalty or loss of benefits to which 
the subject is otherwise entitled.
    (b) Additional elements of informed consent. When appropriate, one 
or more of the following elements of information shall also be provided 
to each subject:
    (1) A statement that the particular treatment or procedure may 
involve risks to the subject (or to the embryo or fetus, if the subject 
is or may become pregnant) which are currently unforeseeable;
    (2) Anticipated circumstances under which the subject's 
participation may be terminated by the investigator without regard to 
the subject's consent;

[[Page 267]]

    (3) Any additional costs to the subject that may result from 
participation in the research;
    (4) The consequences of a subject's decision to withdraw from the 
research and procedures for orderly termination of participation by the 
subject;
    (5) A statement that significant new findings developed during the 
course of the research which may relate to the subject's willingness to 
continue participation will be provided to the subject; and
    (6) The approximate number of subjects involved in the study.
    (c) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth above, or waive the requirement to obtain informed consent 
provided the IRB finds and documents that:
    (1) The research or demonstration project is to be conducted by or 
subject to the approval of state or local government officials and is 
designed to study, evaluate, or otherwise examine: (i) Public benefit of 
service programs; (ii) procedures for obtaining benefits or services 
under those programs; (iii) possible changes in or alternatives to those 
programs or procedures; or (iv) possible changes in methods or levels of 
payment for benefits or services under those programs; and
    (2) The research could not practicably be carried out without the 
waiver or alteration.
    (d) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth in this section, or waive the requirements to obtain informed 
consent provided the IRB finds and documents that:
    (1) The research involves no more than minimal risk to the subjects;
    (2) The waiver or alteration will not adversely affect the rights 
and welfare of the subjects;
    (3) The research could not practicably be carried out without the 
waiver or alteration; and
    (4) Whenever appropriate, the subjects will be provided with 
additional pertinent information after participation.
    (e) The informed consent requirements in this policy are not 
intended to preempt any applicable federal, state, or local laws which 
require additional information to be disclosed in order for informed 
consent to be legally effective.
    (f) Nothing in this policy is intended to limit the authority of a 
physician to provide emergency medical care, to the extent the physician 
is permitted to do so under applicable federal, state, or local law.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 690.117  Documentation of informed consent.

    (a) Except as provided in paragraph (c) of this section, informed 
consent shall be documented by the use of a written consent form 
approved by the IRB and signed by the subject or the subject's legally 
authorized representative. A copy shall be given to the person signing 
the form.
    (b) Except as provided in paragraph (c) of this section, the consent 
form may be either of the following:
    (1) A written consent document that embodies the elements of 
informed consent required by Sec. 690.116. This form may be read to the 
subject or the subject's legally authorized representative, but in any 
event, the investigator shall give either the subject or the 
representative adequate opportunity to read it before it is signed; or
    (2) A short form written consent document stating that the elements 
of informed consent required by Sec. 690.116 have been presented orally 
to the subject or the subject's legally authorized representative. When 
this method is used, there shall be a witness to the oral presentation. 
Also, the IRB shall approve a written summary of what is to be said to 
the subject or the representative. Only the short form itself is to be 
signed by the subject or the representative. However, the witness shall 
sign both the short form and a copy of the summary, and the person 
actually obtaining consent shall sign a copy of the summary. A copy of 
the summary shall be given to the subject or the representative, in 
addition to a copy of the short form.
    (c) An IRB may waive the requirement for the investigator to obtain 
a

[[Page 268]]

signed consent form for some or all subjects if it finds either:
    (1) That the only record linking the subject and the research would 
be the consent document and the principal risk would be potential harm 
resulting from a breach of confidentiality. Each subject will be asked 
whether the subject wants documentation linking the subject with the 
research, and the subject's wishes will govern; or
    (2) That the research presents no more than minimal risk of harm to 
subjects and involves no procedures for which written consent is 
normally required outside of the research context.
    In cases in which the documentation requirement is waived, the IRB 
may require the investigator to provide subjects with a written 
statement regarding the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 690.118  Applications and proposals lacking definite plans for involvement of human subjects.

    Certain types of applications for grants, cooperative agreements, or 
contracts are submitted to departments or agencies with the knowledge 
that subjects may be involved within the period of support, but definite 
plans would not normally be set forth in the application or proposal. 
These include activities such as institutional type grants when 
selection of specific projects is the institution's responsibility; 
research training grants in which the activities involving subjects 
remain to be selected; and projects in which human subjects' involvement 
will depend upon completion of instruments, prior animal studies, or 
purification of compounds. These applications need not be reviewed by an 
IRB before an award may be made. However, except for research exempted 
or waived under Sec. 690.101 (b) or (i), no human subjects may be 
involved in any project supported by these awards until the project has 
been reviewed and approved by the IRB, as provided in this policy, and 
certification submitted, by the institution, to the department or 
agency.



Sec. 690.119  Research undertaken without the intention of involving human subjects.

    In the event research is undertaken without the intention of 
involving human subjects, but it is later proposed to involve human 
subjects in the research, the research shall first be reviewed and 
approved by an IRB, as provided in this policy, a certification 
submitted, by the institution, to the department or agency, and final 
approval given to the proposed change by the department or agency.



Sec. 690.120  Evaluation and disposition of applications and proposals for research to be conducted or supported by a Federal Department or Agency.

    The department or agency head will evaluate all applications and 
proposals involving human subjects submitted to the department or agency 
through such officers and employees of the department or agency and such 
experts and consultants as the department or agency head determines to 
be appropriate. This evaluation will take into consideration the risks 
to the subjects, the adequacy of protection against these risks, the 
potential benefits of the research to the subjects and others, and the 
importance of the knowledge gained or to be gained.
    (b) On the basis of this evaluation, the department or agency head 
may approve or disapprove the application or proposal, or enter into 
negotiations to develop an approvable one.
Sec. 690.121  [Reserved]



Sec. 690.122  Use of Federal funds.

    Federal funds administered by a department or agency may not be 
expended for research involving human subjects unless the requirements 
of this policy have been satisfied.



Sec. 690.123  Early termination of research support: Evaluation of applications and proposals.

    (a) The department or agency head may require that department or 
agency support for any project be terminated or suspended in the manner 
prescribed in applicable program requirements,

[[Page 269]]

when the department or agency head finds an institution has materially 
failed to comply with the terms of this policy.
    (b) In making decisions about supporting or approving applications 
or proposals covered by this policy the department or agency head may 
take into account, in addition to all other eligibility requirements and 
program criteria, factors such as whether the applicant has been subject 
to a termination or suspension under paragarph (a) of this section and 
whether the applicant or the person or persons who would direct or has 
have directed the scientific and technical aspects of an activity has 
have, in the judgment of the department or agency head, materially 
failed to discharge responsibility for the protection of the rights and 
welfare of human subjects (whether or not the research was subject to 
federal regulation).



Sec. 690.124  Conditions.

    With respect to any research project or any class of research 
projects the department or agency head may impose additional conditions 
prior to or at the time of approval when in the judgment of the 
department or agency head additional conditions are necessary for the 
protection of human subjects.

[[Page 270]]



                  Subject Index to 45 CFR Parts 680-684



    Editorial Note: This listing is provided for information purposes 
only. It is compiled and kept up-to-date by the National Science 
Foundation.

                  Subject Index to 45 CFR Parts 680-684                 
               Board Members                                            
Abstentions from deliberations and votes..  684.21(a).                  
Affiliations with affected institutions...  684.21(b).                  
Participation in NSF-supported projects...  684.22.                     
Relationships with affected individuals...  684.21(c).                  
Support services..........................  680.21(e).                  
Visiting committees.......................  680.21(d).                  
               Compensation                                             
Basic restrictions on outside compensation  683.31(a).                  
Pensions and other employee benefits......  683.31(b).                  
Wording and terms of restrictions.........  683.31(c).                  
          Conflicts of Interests                                        
Effects of................................  680.12(b).                  
General standards of conduct..............  680.15.                     
Introduction..............................  680.10.                     
Key terms.................................  680.16.                     
Sensitivity to............................  680.12(a).                  
Summary of special rules for:                                           
  ``Conflicts Officials''.................  680.13(b).                  
  Directories:                                                          
    Administration........................  680.13(d).                  
    All others and staff offices..........  680.13(a).                  
  Recruiting Officials....................  680.13(c).                  
Summary of rules for:                                                   
  Board Members...........................  684.20.                     
  Consultants.............................  684.10.                     
  Full-time presidential appointees.......  680.14.                     
  NSF Employees (including rotators and     680.11.                     
   IGPA's).                                                             
Types of conflicts of interests...........  680.12(c)-(f).              
                Consultants                                             
Acts affecting financial interests........  684.16.                     
Compensation..............................  684.15(a)-(d).              
Financial Disclosure......................  684.12.                     
General standards of conduct..............  684.18.                     
Inside information........................  684.17.                     
Political activities (Hatch Act)..........  684.13.                     
Representing private interests............  684.14.                     
``Special employees''.....................  684.10.                     
Summary of rules for ``special employees''  684.11.                     
       Financial Disclosure Coverage                                    
Auditors..................................  683.10(b); 683.12.          
Executive Level Employees.................  683.10(a).                  
Grants & Contracts Officers...............  683.10(b); 683.12.          
Lawyers...................................  683.10(b); 683.12.          
Program Officers..........................  683.10(b); 683.12.          
Senior employees..........................  683.10(a).                  
SES employees.............................  683.10(a).                  
Supergrade employees......................  683.10(a).                  
Disclosure requirements:                                                
  For auditors, lawyers, grants and         683.12.                     
   contracts officers and program officers.                             
  For senior employees....................  683.11.                     
General Information.......................  683.20.                     
  Gifts, Favors, Loans, Prizes and Awards                               
From foreign governments..................  683.36(d).                  
Gifts and favors generally................  683.36(a).                  
Meals or entertainment....................  683.36(b).                  
Prizes and awards.........................  683.36(c).                  
                 Honoraria                                              
Honoraria on official duty................  683.32(a).                  
Honoraria while not on official duty......  683.32(b).                  
Misuse of Inside Information or Government                              
                 Property                                               
Consulting, lecturing, etc., about NSF....  683.34(b).                  
Private use of public property or services  683.34(d).                  
Prohibitions..............................  683.34(a).                  
Waivers...................................  683.34(c).                  
            Outside Employment                                          
Permitted within limits; duty first.......  683.30(a).                  
Policymaking or administrative work for     683.30(b).                  
 certain organizations.                                                 
Presidential appointee....................  683.30(c).                  
Participation in NSF-Supported Conferences  683.35.                     
               and Workshops                                            
      Political Activity (Hatch Act):                                   
  Candidacy and Campaigns Campaigning       683.42(c).                  
   (defined).                                                           
  Coverage:                                                             
    NSF employees.........................  683.40(d)                   
    Presidential appointees...............  683.40(c).                  
Permissible Activities:                                                 
  Appointment to nonelective offices......  683.42(e).                  
  Communication with political officials..  683.41(d).                  
  Contributions to political campaigns....  683.41(b).                  
  Membership in a political party.........  683.41(c).                  
  Non-partisan election duties............  683.42(d).                  
  Registration and Voting.................  683.41(a).                  
  Signing political petitions.............  683.41(e).                  
Prohibited Activities:                                                  
  Campaigning for political parties.......  683.42(c).                  
  Managing a political party..............  683.43.                     

[[Page 271]]

                                                                        
    Partisan campaigning..................  683.42(b).                  
    Exceptions............................  683.42(b) (1), (2)          
  Running for office......................  683.42(a).                  
    Exceptions............................  683.42(a) (1), (2)          
  Using official authority or influence     683.44.                     
   for political purposes.                                              
Summary...................................  683.40(b).                  
           Proposals and Awards                                         
Compensation from Federal awards..........  682.23(a).                  
Expenses from NSF awards..................  682.23(b).                  
Involvement with:                                                       
  Current-employee restriction............  682.10(a)(1), (b),          
                                             682.13(d); 682.20(a)(1).   
  ``Official responsibility'' two year      682.10(a)(3), (b),          
   restriction.                              682.11(b); 682.13(a), (b); 
                                             682.21(a)-(c).             
  Renewals................................  682.21(d).                  
  One-year NSF restriction................  682.10(a)(2), (b),          
                                             682.13(a), (b);            
                                             682.20(a)(2).              
  ``Personal involvement'' permanent        682.10(a)(4), (b),          
   restriction.                              682.11(c), 682.12(c),      
                                             682.21(f).                 
  Permitted activities....................  682.12(c); 682.20(e)(f).    
  Restricted activities...................  682.20(d).                  
Principal Investigator:                                                 
  Proposals and awards of other agencies..  682.22(h).                  
  Renewals during NSF service.............  682.22(e).                  
  Retention of ties to research...........  682.22(a).                  
  Submission after return to institution..  682.22(d).                  
  Substitute:                                                           
    Negotiator............................  682.22(d).                  
    Principal investigator................  682.22(b).                  
    Purposes..............................  682.22(g).                  
Suspension of NSF projects................  682.22(c).                  
        Proposal and Award Handling                                     
Affiliations and interests:                                             
  NSF employees: prospective, current, or   681.23.                     
   recent.                                                              
  Peer reviewers..........................  681.25.                     
  Recent employee (defined)...............  681.31(a).                  
  Responsibilities of recruiting            681.32; 681.33.             
   Directorate/Office.                                                  
  With applicant institution..............  681.21(b).                  
  With investigators or others who are      681.21(c).                  
   personally involved with the                                         
   application.                                                         
  Other relationships.....................  681.21(d).                  
Directorate conflicts officials:                                        
  Consolidation of related cases..........  681.42(d).                  
  Determinations..........................  681.41                      
    Premature.............................  681.44(d).                  
    Timely................................  681.44(c).                  
General information.......................  681.20, 681.22; 681.24.     
  Potential conflicts of NSF employees:                                 
    Professional associates...............  681.43(e).                  
    Recruiters............................  681.43(b).                  
    Subordinates..........................  681.43(d).                  
    Superiors.............................  681.43(c).                  
    Of reviewers..........................  681.43(f).                  
Special handling devices:                                               
  Disclosures.............................  681.42(a).                  
  Disqualifications:                                                    
    Automatic.............................  681.42(b)(1); also          
                                             681.21(a); (b)(1)-(6), (8);
                                             (c)(1), (2), and 681.22(a).
    Normal................................  681.42(b)(2); also          
                                             681.21(a); (b) (7), and    
                                             681.22(b).                 
    Other.................................  681.42(c); also 681.21(c)(3)-
                                             (5).                       
Summary of responsibilities...............  681.40; also 681.33.        
Handling (defined)........................  681.20(e).                  
Identifying NSF employees with interests                                
 in NSF propsals and awards:                                            
  Prospective employee:                                                 
    Recruitment:                                                        
      Who is a ``prospective employee?''    681.31(b).                  
      How should the Directorate or Office  681.32.                     
       proceed?                                                         
      Who should be informed?               681.33.                     
    Processing Awards:                      681.40.                     
      Directorate conflicts officials'      681.41.                     
       role.                                                            
      Disclosure disqualification, and      681.42.                     
       other special handling.                                          
      Potential conflicts of NSF employees  681.43.                     
Program officers (and other decisionmaking  681.20.                     
 officials), guidance for.                                              
Summary...................................  681.10.                     
    Reimbursements and Services in Kind                                 
For official travel.......................  683.33(a).                  
For travel, etc. when not on duty.........  683.33(b).                  
          Representation Covered                                        
Appearances, formal.......................  682.12(a), (d).             
Assisting without appearing...............  682.12(c).                  
Legislators...............................  682.12(e).                  
Letters...................................  682.12(a).                  
``Matters'' covered.......................  682.13(a), (b).             
``Matters'' not covered...................  682.13(c).                  
Meetings..................................  682.12(a).                  
Phone calls...............................  682.12(a).                  

[[Page 272]]

                                                                        
Prohibitions:                                                           
  Intent to influence.....................  682.12(b).                  
Representing U.S..........................  682.12(f).                  
Representing yourself.....................  682.12(g).                  
Restriction on partner....................  682.14.                     
       Representational Restrictions                                    
Current-employee restrictions.............  682.10(a)(1), (b),          
                                             682.13(d).                 
``Official responsibility'' two year        682.10(a) (3), (b),         
 restriction.                                682.11(b); 682.13(a), (b). 
One-year NSF restriction..................  682.10(a) (2), (b);         
                                             682.13(a), (b).            
``Personal involvement'' permanent          682.10(a) (4), (b),         
 restriction.                                682.11(c); 682.12(c).      
                                                                        


[[Page 273]]



                 CHAPTER VII--COMMISSION ON CIVIL RIGHTS




  --------------------------------------------------------------------

Part                                                                Page
701             Organization and functions of the Commission         274
702             Rules on hearings, reports and meetings of 
                    the Commission..........................         277
703             Operations and functions of State Advisory 
                    Committees..............................         287
704             Information disclosure and communications...         290
705             Materials available pursuant to 5 U.S.C. 
                    552a....................................         296
706             Employee responsibilities and conduct.......         302
707             Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by U.S. Commission 
                    on Civil Rights.........................         308
708             Collection by salary offset from indebted 
                    current and former employees............         315

[[Page 274]]



PART 701--ORGANIZATION AND FUNCTIONS OF THE COMMISSION--Table of Contents




                   Subpart A--Operations and Functions

Sec.
701.1  Establishment.
701.2  Responsibilities.

                    Subpart B--Organization Statement

701.10  Membership of the Commission.
701.11  Commission meetings--duties of the Chairman.
701.12  Staff Director.
701.13  Staff organization and functions.

    Authority: Secs. 2-8, 97 Stat. 1301-1307 (42 U.S.C. 1975-1975f).

    Source: 50 FR 16261, Apr. 25, 1985, unless otherwise noted.



                 Subpart A--Organizations and Functions



Sec. 701.1  Establishment.

    The United States Commission on Civil Rights (hereinafter referred 
to as the ``Commission'') is a bipartisan agency of the executive branch 
of the Government. The predecessor agency to the present Commission was 
established by the Civil Rights Act of 1957, 71 Stat. 634. This Act was 
amended by the Civil Rights Act of 1960, 74 Stat. 86; the Civil Rights 
Act of 1964, 78 Stat. 241; by 81 Stat. 582 (1967); by 84 Stat. 1356 
(1970); by 86 Stat. 813 (1972); and by the Civil Rights Act of 1978, 92 
Stat. 1067. The present Commission was established by the United States 
Commission on Civil Rights Act of 1983, 97 Stat. 1301. The statutes are 
codified in 42 U.S.C. 1975 through 1975f. (Hereinafter, the 1983 Act 
will be referred to as ``the Act.'')



Sec. 701.2  Responsibilities.

    (a) The Commission's authority under section 5 of the Act may be 
summarized as follows:
    (1) To investigate allegations in writing under oath or affirmation 
that certain citizens of the United States are being deprived of their 
right to vote and have that vote counted by reason of color, race, 
religion, sex, age, handicap, or national origin;
    (2) To study and collect information concerning legal developments 
constituting discrimination or a denial of equal protection of the laws 
under the Constitution because of race, color, religion, sex, age, 
handicap or national origin or in the administration of justice;
    (3) To appraise the laws and policies of the Federal Government with 
respect to discrimination or denials of equal protection of the laws 
under the Constitution because of race, color, religion, sex, age, 
handicap, or national origin or in the administration of justice;
    (4) To serve as a national clearinghouse for information in respect 
to discrimination or denials of equal protection of the laws because of 
race, color, religion, sex, age, handicap, or national origin;
    (5) To investigate sworn allegations that citizens are being 
accorded or denied the right to vote in Federal elections as a result of 
patterns or practices of fraud or discrimination;
    (6) To appraise the laws and policies of the Federal Government with 
respect to denials of equal protection of the laws under the 
Constitution involving Americans who are of eastern and southern 
European ethnic groups and report its findings to the Congress.
    (b) Under section 5(c) of the Act, the Commission is required to 
submit reports to the President and to the Congress at such times as the 
Commission, the Congress or the President shall deem desirable.
    (c) In fulfilling these responsibilities the Commission is 
authorized by the Act to hold hearings and to issue subpenas for the 
production of documents and the attendance of witnesses; to consult with 
governors, attorneys general, other representatives of State and local 
governments, and private organizations; and is required to establish an 
advisory committee in each State. The Act also provides that all Federal 
agencies shall cooperate fully with the Commission so that it may 
effectively carry out its functions and duties.



                    Subpart B--Organization Statement



Sec. 701.10  Membership of the Commission.

    (a) The Commission is composed of eight members, not more than four 
of

[[Page 275]]

whom may be of the same political party. Four members are appointed by 
the President: Two members are appointed by the President pro tempore of 
the Senate and two members are appointed by the Speaker of the House of 
Representatives.
    (b) The Chairman and Vice Chairman of the Commission are designated 
by the President with the concurrence of a majority of the Commission's 
members. The Vice Chairman acts as Chairman in the absence or disability 
of the Chairman or in the event of a vacancy in that office.
    (c) No vacancy in the Commission affects its powers and any vacancy 
is filled in the same manner and is subject to the same limitations with 
respect to party affiliations as previous appointments.
    (d) Five members of the Commission constitute a quorum.



Sec. 701.11  Commission meetings--duties of the Chairman.

    (a) At a meeting of the Commission in each calendar year, the 
Commission shall, by vote of the majority, adopt a schedule of 
Commission meetings for the following calendar year.
    (b) In addition to the regularly scheduled meetings, it is the 
responsibility of the Chairman to call the Commission to meet in a 
special open meeting at such time and place as he or she shall deem 
appropriate; provided however, that upon the motion of a member, and a 
favorable vote by a majority of Commission members, a special meeting of 
the Commission may be held in the absence of a call by the Chairman.
    (c) The Chairman, after consulting with the Staff Director, shall 
establish the agenda for each meeting; provided however, that at the 
meeting of the Commission such agenda may be modified by the addition or 
deletion of specific items pursuant to the motion of a member and a 
favorable vote by a majority of the members.
    (d) In the event that after consulting with the members of the 
Commission and consideration of the views of the members, the Chairman 
determines that there are insufficient substantive items on a proposed 
meeting agenda to warrant holding a scheduled meeting, the Chairman may 
cancel such meeting.



Sec. 701.12  Staff Director.

    A Staff Director for the Commission is appointed by the President 
with the concurrence of a majority of the Commissioners. The Staff 
Director is the Chief Executive Officer of the agency.



Sec. 701.13  Staff organization and functions.

    The Commission staff organization and function are as follows:
    (a) Office of the Staff Director. Under the direction of the Staff 
Director, this Office defines and disseminates to staff, policies 
established by the Commissioners; develops program plans for 
presentation to the Commissioners; evaluates program results; supervises 
and coordinates the work of other agency offices; manages the 
administrative affairs of the agency and conducts agency liaison with 
the Executive Office of the President, the Congress and other Federal 
agencies.
    (b) Office of the Deputy Staff Director. Under the direction of the 
Deputy Staff Director, this Office is responsible for the day-to-day 
administration of the agency; evaluation of quantity and quality of 
program efforts; personnel administration and the supervision of Office 
Directors who do not report directly to the Staff Director. Units 
reporting directly to the Office of Deputy Staff Director are:
    (1) Equal Employment Opportunity Unit. Under the direction of the 
Equal Employment Opportunity Officer, this Unit is responsible for the 
conduct of the agency's inhouse Equal Employment Opportunity Program.
    (2) Solicitor's Office. Under the direction of the Solicitor, this 
Office is responsible for administrative law matters, including 
contracts, openness in government and government ethics, and the legal 
aspects of personnel, and labor relations issues.
    (3) Planning and Coordination Unit. Under its Director, this unit is 
responsible for: coordinating the presentation of project proposals and 
coordinating the assignment of resources to approved projects: 
developing goals and priorities for projects and evaluating

[[Page 276]]

their implementation and coordinating periodic program reports.
    (c) Office of the General Counsel. Under the direction of the 
General Counsel, who reports directly to the Staff Director, this Office 
serves as legal counsel to the Commissioners and to the agency; plans 
and conducts hearings and consultations for the Commission; conducts 
legal studies; prepares reports of legal studies and hearings; drafts or 
review proposals for legislative and executive action and reviews all 
agency publications and congressional testimony for legal sufficiency.
    (d) Office of Program and Policy. Under the direction of an 
Assistant Staff Director, who reports directly to the Staff Director, 
this Office is responsible for the development of concepts for programs, 
projects and policies directed toward the achievement of Commission 
goals; program management and the preparation of the publication New 
Perspectives.
    (e) Office of Management. Under the direction of an Assistant Staff 
Director, this Office is responsible for all administrative, management 
and facilitative services necessary for the efficient operation of the 
agency, including financial management, personnel, publications and the 
National Clearing House Library.
    (f) Office of Federal Civil Rights Evaluation. Under the direction 
of an Assistant Staff Director, this Office is responsible for: 
monitoring, evaluating and reporting on the civil rights enforcement 
effort of the Federal Government; preparing documents which articulate 
the Commission's views and concerns regarding Federal civil rights to 
Federal agencies having appropriate jurisdiction.
    (g) Office of Research. Under the direction of an Assistant Staff 
Director, this Office is responsible for: conducting or stimulating 
studies to advance basic knowledge of the extent, causes and 
consequences of civil rights denials; preparing monographs dealing with 
subjects which are current national civil rights issues; monitoring, 
planning and conducting consultations on the civil rights implications 
of Federal programs and policies and current civil rights issues.
    (h) Office of Congressional and Public Affairs. Under the direction 
of an Assistant Staff Director, this Office is responsible for liaison 
with the news media and the preparation of periodical publications on 
civil rights issues; liaison with committees and members of Congress, 
monitoring legislative activities relating to civil rights and preparing 
testimony for presentation before committees of Congress when such 
testimony has been requested by a committee; planning and managing 
conferences at which the Commission receives information regarding civil 
rights issues; establishing and maintaining liaison with government and 
private civil rights agencies; representing the Commission at government 
and private organization conferences and conventions; managing the 
Commissions consumer affairs program.
    (i) Office of Regional Programs. Under the direction of an Assistant 
Staff Director, this Office is responsible for: Directing and 
coordinating the programs and work of the regional offices and State 
Advisory Committees to the Commission on Civil Rights and maintaining 
liaison between the regional offices and the various headquarters 
offices of the Commission.
    (j) Regional Offices. The addresses of the Regional Offices of the 
Commission and the States which they serve are:

Region I: New England Regional Office, 55 Summer Street, Eighth Floor, 
          Boston, Massachusetts 02110, (617) 223-4671
    Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and 
Vermont

Region II: Eastern Regional Office, Jacob K. Javits Building, 26 Federal 
          Plaza, Room 1639, New York, NY 10278, (212) 264-0400
    New Jersey and New York

Region III: Mid-Atlantic Regional Office, 2120 L Street NW., Room 510, 
          Washington, DC 20037, (202) 254-67177
    Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, 
and West Virginia

Region IV: Southern Regional Office, Citizens Trust Bank Building, 75 
          Piedmont Avenue NE., Room 362, Atlanta, Georgia 30303, (404) 
          221-4391
    Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, 
South Carolina, and Tennessee

Region V: Midwestern Regional Office, 230 South Dearborn Street, 32nd 
          Floor, Chicago, Illinois 60604, (312) 353-7371

[[Page 277]]

    Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin

Region VI: Southwestern Regional Office, Heritage Plaza, 418 South Main, 
          First Floor, San Antonio, Texas 78204, (512) 229-5570
    Arkansas, Louisiana, Oklahoma, Texas, and New Mexico

Region VII: Central States Regional Office, 911 Walnut Street, Room 
          3103, Kansas City, Missouri 64106, (816) 374-5253
    Iowa, Kansas, Missouri, and Nebraska

Region VIII: Rocky Mountain Regional Office, The Executive Tower 
          Building, 1405 Curtis Street, Suite 2950, Denver, Colorado 
          80202, (303) 844-2211
    Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming

Region IX: Western Regional Office, 3660 Wilshire Boulevard, Suite 810, 
          Los Angeles, California 90010, (213) 688-3437
    Arizona, California, Hawaii, and Nevada

Region X: Northwestern Regional Office, 915 Second Avenue, Room 2854, 
          Seattle, Washington 98174, (206) 442-1246
    Alaska, Idaho, Oregon, and Washington.



PART 702--RULES ON HEARINGS, REPORTS AND MEETINGS OF THE COMMISSION--Table of Contents




                     Subpart A--Hearings and Reports

Sec.
702.1  Definitions.
702.2  Authorization for hearing.
702.3  Notice of hearing.
702.4  Subpenas.
702.5  Conduct of proceedings.
702.6  Executive session.
702.7  Counsel.
702.8  Evidence at Commission proceedings.
702.9  Cross-examination at public session.
702.10  Voluntary witnesses at public session of a hearing.
702.11  Special executive session.
702.12  Contempt of the Commission.
702.13  Intimidation of witnesses.
702.14  Transcript of Commission proceedings.
702.15  Witness fees.
702.16  Attendance of news media at public sessions.
702.17  Communications with respect to Commission proceedings.
702.18  Commission reports.

                           Subpart B--Meetings

702.50  Purpose and scope.
702.51  Definitions.
702.52  Open meeting requirements.
702.53  Closed meetings.
702.54  Closed meeting procedures.
702.55  Public announcement of meetings.
702.56  Records.
702.57  Administrative review.



                     Subpart A--Hearings and Reports

    Authority: Secs. 101-106, 71 Stat. 634-636, as amended; 42 U.S.C. 
1975-1975e; Pub. L. 94--409, 90 Stat. 1241.

    Source: 32 FR 4063, Mar. 15, 1967, unless otherwise noted. 
Designated Subpart A at 42 FR 14108, Mar. 15, 1977.



Sec. 702.1   Definitions.

    For purposes of the following Rules on Hearings of the United States 
Commission on Civil Rights, the following definitions shall apply, 
unless otherwise provided:
    (a) The Act shall refer to the Civil Rights Act of 1957, 71 Stat. 
634, as amended.
    (b) The Commission shall refer to the United States Commission on 
Civil Rights or, as provided in Sec. 702.2, to any authorized 
subcommittee thereof.
    (c) The Chairman shall refer to the Chairman of the Commission or 
authorized subcommittee thereof or to any acting Chairman of the 
Commission or of such subcommittee.
    (d) Proceeding shall refer collectively to any public session of the 
Commission and any executive session held in connection therewith.
    (e) Hearing shall refer collectively to a public session of the 
Commission and any executive session held in connection therewith, but 
shall not include a session held for the sole purpose of receiving 
subpenaed documents.
    (f) The rules in this part shall refer to the Rules on Hearings of 
the Commission.
    (g) Report refers to statutory reports or portions thereof issued 
pursuant to Section 104(c) of the Civil Rights Act of 1957, as amended.
    (h) Verified answer refers to an answer the truth of which is 
substantiated by oath or affirmation attested to by a notary public or 
other person who has legal authority to administer oaths.

[32 FR 4063, Mar. 15, 1967, as amended at 36 FR 5702, Mar. 27, 1971. 
Designated at 42 FR 14108, Mar. 15, 1977, and further amended at 44 FR 
75149, Dec. 19, 1979]

[[Page 278]]



Sec. 702.2   Authorization for hearing.

    Under section 105(f) of the Act the Commission or, on the 
authorization of the Commission, any subcommittee of two or more 
members, at least one of whom shall be of each major political party, 
may, for the purpose of carrying out the provisions of the Act, hold 
such hearings and act at such times and places as the Commission or such 
authorized subcommittee may deem advisable; and the holding of hearings 
by the Commission or the appointment of a subcommittee to hold hearings 
pursuant to this section must be approved by a majority of the 
Commission, or by a majority of the members present at a meeting at 
which at least a quorum of four members is present.



Sec. 702.3   Notice of hearing.

    At least 30 days prior to the commencement of any hearing, the 
Commission shall cause to be published in the Federal Register notice of 
the date on which such hearing is to commence, the place at which it is 
to be held, and the subject of the hearing.



Sec. 702.4   Subpenas.

    (a) Subpenas for the attendance and testimony of witnesses or the 
production of written or other matter may be issued by the Commission 
over the signature of the Chairman and may be served by any person 
designated by the Chairman.
    (b) A witness compelled to appear before the Commission or required 
to produce written or other matter shall be served with a copy of the 
rules in this part at the time of service of the subpena.
    (c) The Commission shall not issue any subpena for the attendance 
and testimony of witnesses or for the production of written or other 
matter which would require the presence of the party subpenaed at a 
place outside the State wherein the witness is found or resides or is 
domiciled or transacts business, or has appointed an agent for receipt 
of service of process except that, in any event, the Commission may 
issue subpenas for the attendance and testimony of witnesses and the 
production of written or other matter at a place within 50 miles of the 
place where the witness is found or resides or is domiciled or transacts 
business or has appointed an agent for receipt of service of process.
    (d) The Chairman shall receive and the Commission shall dispose of 
requests to subpena additional witnesses except as otherwise provided in 
Sec. 702.6(e).
    (e) Requests for subpena shall be in writing, supported by a showing 
of the general relevance and materiality of the evidence sought. Witness 
fees and mileage, computed pursuant to Sec. 702.15, shall be paid by the 
person at whose instance a witness is subpenaed.
    (f) Subpenas shall be issued at a reasonably sufficient time in 
advance of their scheduled return, in order to give subpenaed persons an 
opportunity to prepare for their appearance and to employ counsel, 
should they so desire.
    (g) No subpenaed document or information contained therein shall be 
made public unless it is introduced into and received as part of the 
official record of the hearing.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75149, Dec. 19, 1979]



Sec. 702.5   Conduct of proceedings.

    (a) The Chairman shall announce in an opening statement the subject 
of the proceeding.
    (b) Following the opening statement, the Commission shall first 
convene in executive session if one is required pursuant to the 
provisions of Sec. 702.6.
    (c) The Chairman shall, subject to the approval of the Commission--
    (1) Set the order of presentation of evidence and appearance of 
witnesses;
    (2) Rule on objections and motions;
    (3) Administer oaths and affirmations;
    (4) Make all rulings with respect to the introduction into or 
exclusion from the record of documentary or other evidence;
    (5) Regulate the course and decorum of the proceeding and the 
conduct of the parties and their counsel to insure that the proceedings 
are conducted in a fair and impartial manner.
    (d) Proceedings shall be conducted with reasonable dispatch and due 
regard shall be had for the convenience and necessity of witnesses.

[[Page 279]]

    (e) The questioning of witnesses shall be conducted only by Members 
of the Commission, by authorized Commission staff personnel, or by 
counsel to the extent provided in Sec. 702.7.
    (f) In addition to persons served with a copy of the rules in this 
part pursuant to Secs. 702.4 and 702.6, a copy of the rules in this part 
will be made available to all witnesses.
    (g) The Chairman may punish breaches of order and decorum by censure 
and exclusion from the proceedings.



Sec. 702.6   Executive session.

    (a) If the Commission determines that evidence or testimony at any 
hearing may tend to defame, degrade, or incriminate any person, it shall 
receive such evidence or testimony or summary of such evidence or 
testimony in executive session.
    (b) The Commission shall afford any persons defamed, degraded, or 
incriminated by such evidence or testimony an opportunity to appear and 
be heard in executive session, with a reasonable number of additional 
witnesses requested by them, before deciding to use such evidence or 
testimony.
    (1) Such person shall be served with notice in writing of the date, 
time, and place made available for the appearance of witnesses at 
executive session, at least 10 days prior to such date, or where service 
is by mail at least 14 days prior to such date. This notice shall be 
accompanied by a copy of the rules in this part and by a brief summary 
of the information which the Commission has determined may tend to 
defame, degrade, or incriminate such person.
    (2) The notice, summary, and rules in this part shall be served 
personally by depositing the same in the United States mail as certified 
mail, or by leaving a copy thereof at the last known residence or 
business address of such person.
    (3) The date of service, for purposes of this section, shall be the 
day when the material is deposited in the United States mail or is 
delivered in person, as the case may be. When service is made by 
certified mail, the return post office receipt shall be proof of 
service; in all other cases, the acknowledgment of the party served, or 
the verified return of the one making service shall be proof of the 
same.
    (c) If a person receiving notice under this section notifies the 
Commission within five days of service of such notice, or where service 
is by mail within eight days of service of such notice, that the time 
scheduled therein constitutes a hardship, the Commission may, in its 
discretion, set a new time for such person's appearance at the executive 
session.
    (d) In the event such persons fail to appear at executive session at 
the time and place made available under paragraph (b) or (c) of this 
section, they shall not be entitled to another opportunity to appear at 
executive session, except as provided in Sec. 702.11.
    (e) If such persons intend to submit sworn statements of themselves 
or others, or if they intend that witnesses appear in their behalf at 
executive session, they shall, no later than 48 hours prior to the time 
set under paragraph (b) or (c) of this section, submit to the 
Commission, all such statements and a list of all witnesses. The 
Commission will inform such persons whether the number of witnesses 
requested is reasonable within the meaning of paragraph (b) of this 
section. In addition, the Commission will receive and dispose of 
requests from such persons to subpena other witnesses. Requests for 
subpenas shall be made sufficiently in advance of the scheduled 
executive session as to afford persons subpenaed reasonable notice of 
their obligation to appear at that session. Subpenas returnable at 
executive session shall be governed by the provisions of Sec. 702.4.
    (f) Persons for whom an executive session has been scheduled, and 
persons compelled to appear at such session, may be represented by 
counsel at such session to the extent provided by Sec. 702.7.
    (g) Attendance at executive session shall be limited to Members of 
the Commission, authorized Commission staff personnel, witnesses and 
their counsel at the time scheduled for their appearance, and such other 
persons whose presence is requested or consented to by the Commission.
    (h) In the event the Commission determines to release or to use 
evidence

[[Page 280]]

or testimony which it has determined may tend to defame, degrade, or 
incriminate any persons, in such a manner as to reveal publicly their 
identity, such evidence or testimony, prior to such public release or 
use, will be presented at a public session, and the Commission will 
afford them an opportunity to appear as voluntary witnesses or to file a 
sworn statement in their own behalf and to submit brief and pertinent 
sworn statements of others.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75150, Dec. 19, 1979]



Sec. 702.7  Counsel.

    (a) Persons compelled to appear in person before the Commission and 
any witness appearing at a public session of the Commission will be 
accorded the right to be accompanied and advised by counsel, who will 
have the right to subject their clients to reasonable examination, and 
to make objections on the record and to argue briefly the basis for such 
objections.
    (b) For the purpose of this section, counsel'' shall mean an 
attorney at law admitted to practice before the Supreme Court of the 
United States, or the highest court of any State or Territory of the 
United States.
    (c) Failure of any persons to obtain counsel shall not excuse them 
from attendance in response to a subpena, nor shall any persons be 
excused in the event their counsel is excluded from the proceeding 
pursuant to Sec. 702.5(g). In the latter case, however, such persons 
shall be afforded a reasonable time to obtain other counsel, said time 
to be determined by the Commission.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75150, Dec. 19, 1979]



Sec. 702.8   Evidence at Commission proceedings.

    (a) The rules of evidence prevailing in courts of law or equity 
shall not control proceedings of the Commission.
    (b) Where a witness testifying at a public session of a hearing or a 
session for return of subpenaed documents offers the sworn statements of 
other persons, such statements, in the discretion of the Commission, may 
be included in the record, provided they are received by the Commission 
within 24 hours in advance of the witness' appearance.
    (c) The prepared statement of a witness testifying at a public 
session of a hearing, in the discretion of the Commission, may be placed 
into the record, provided that such statement is received by the 
Commission 24 hours in advance of the witness' appearance.
    (d) In the discretion of the Commission, evidence may be included in 
the record after the close of a public session of a hearing, provided 
the Commission determines that such evidence does not tend to defame, 
degrade, or incriminate any person.
    (e) The Commission will determine the pertinency of testimony and 
evidence adduced at its proceedings, and may refuse to include in the 
record of a proceeding or may strike from the record any evidence it 
considers to be cumulative, immaterial, or not pertinent.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75150, Dec. 19, 1979; 44 FR 76798, Dec. 28, 1979]



Sec. 702.9  Cross-examination at public session.

    If the Commission determines that oral testimony of a witness at a 
public session tends to defame, degrade, or incriminate any person, such 
person, or through counsel, shall be permitted to submit questions to 
the Commission in writing, which, in the discretion of the Commission, 
may be put to such witness by the Chairman or by authorized Commission 
staff personnel.

[44 FR 75150, Dec. 19, 1979]



Sec. 702.10   Voluntary witnesses at public session of a hearing.

    A person who has not been subpenaed and who has not been afforded an 
opportunity to appear pursuant to Sec. 702.6 may be permitted, in the 
discretion of the Commission, to make an oral or written statement at a 
public session of a hearing. Such person may be questioned to the same 
extent and in the same manner as other witnesses before the Commission.

[[Page 281]]



Sec. 702.11   Special executive session.

    If, during the course of a public session, evidence is submitted 
which was not previously presented at executive session and which the 
Commission determines may tend to defame, degrade, or incriminate any 
person, the provisions of Sec. 702.6 shall apply, and such extensions, 
recesses or continuances of the public session as it deems necessary 
shall be ordered by the Commission, except that the time and notice 
requirements of Sec. 702.6 may be modified by the Commission provided 
reasonable notice of a scheduled executive session is afforded such 
person, and except that the Commission may, in its discretion, strike 
such evidence from the record, in which case the provisions of 
Sec. 702.6 shall not apply.



Sec. 702.12   Contempt of the Commission.

    Proceedings and process of the Commission are governed by section 
105(g) of the Act, which provides:

    In case of contumacy or refusal to obey a subpena, any district 
court of the United States or the United States court of any territory 
or possession, or the District Court of the United States for the 
District of Columbia, within the jurisdiction of which the inquiry is 
carried on or within the jurisdiction of which said person guilty of 
contumacy or refusal to obey is found or resides or is domiciled or 
transacts business, or has appointed an agent for receipt of service of 
process, upon application by the Attorney General of the United States 
shall have jurisdiction to issue to such person an order requiring such 
person to appear before the Commission or a subcommittee thereof, there 
to produce pertinent, relevant and nonprivileged evidence if so ordered, 
or there to give testimony touching the matter under investigation; and 
any failure to obey such order of the court may be punished by said 
court as a contempt thereof.



Sec. 702.13   Intimidation of witnesses.

    Witnesses at Commission proceedings are protected by the provisions 
of 18 U.S.C. 1505, which provide:

    Whoever corruptly, or by threats of force, or by any threatening 
letter or communication, endeavors to influence, intimidate, or impede 
any witness in any proceeding pending before any department or agency of 
the United States, or in connection with any inquiry or investigation 
being had by either House, or any Committee of either House, or any 
joint committee of the Congress; or
    Whoever injures any party or witness in his person or property on 
account of his attending or having attended such proceeding, inquiry, or 
investigation, or on account of his testifying or having testified to 
any matter pending therein; or
    Whoever, with intent to avoid, evade, prevent, or obstruct 
compliance in whole or in part with any civil investigative demand duly 
and properly made under the Antitrust Civil Process Act willfully 
removes from any place, conceals, destroys, mutilates, alters, or by 
other means falsifies any documentary material which is the subject of 
such demand; or
    Whoever corruptly, or by threats of force, or by any threatening 
letter or communication influences, obstructs, or impedes or endeavors 
to influence, obstruct, or impede the due and proper administration of 
the law under which such proceeding is being had before such department 
or agency of the United States, or the due and proper exercise of the 
power of inquiry under which such inquiry or investigation is being had 
by either House, or any committee of either House or any joint committee 
of the Congress--
    Shall be fined not more than $5,000 or imprisoned not more than five 
years, or both.



Sec. 702.14   Transcript of Commission proceedings.

    (a) An accurate transcript shall be made of the testimony of all 
witnesses at all proceedings of the Commission. Transcripts shall be 
recorded solely by the official reporter, or by any other person or 
means designated by the Commission.
    (b) Every person who submits data or evidence shall be entitled to 
retain or, on payment of lawfully prescribed costs, procure a copy or 
transcript thereof, except that witnesses in a hearing held in executive 
session may for good cause be limited to inspection of the official 
transcript of their testimony. Transcript copies of public sessions may 
be obtained by the public upon the payment of the cost thereof.
    (c) Persons who have presented testimony at a proceeding may ask 
within 60 days after the close of the proceeding to correct errors in 
the transcript of their testimony. Such requests shall be granted only 
to make the transcript conform to their testimony as presented at the 
proceeding.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75150, Dec. 19, 1979]

[[Page 282]]



Sec. 702.15   Witness fees.

    Pursuant to section 102(j) of the Act: A witness attending any 
session of the Commission shall be paid the same fees and mileage that 
are paid witnesses in the courts of the United States. Mileage payments 
shall be tendered to the witness upon service of a subpena issued on 
behalf of the Commission or any subcommittee thereof.

[32 FR 4063, Mar. 15, 1967. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 37 FR 23185, Oct. 31, 1972]



Sec. 702.16  Attendance of news media at public sessions.

    Reasonable access for coverage of public sessions shall be provided 
to the various communications media, including newspapers, magazines, 
radio, newsreels, and television, subject to the physical limitations of 
the room in which the session is held and consideration of the physical 
comfort of Commission members, staff, and witnesses. However, no 
witnesses shall be televised, filmed, or photographed during the session 
nor shall the testimony of any witness be broadcast or recorded for 
broadcasting, if the witness objects.

[44 FR 75150, Dec. 19, 1979]



Sec. 702.17  Communications with respect to Commission proceedings.

    During any proceeding held outside Washington, D.C., communications 
to the Commission with respect to such proceeding must be made to the 
Chairman or authorized Commission staff personnel in attendance. All 
requests for subpenas returnable at a hearing, requests for appearance 
of witnesses at a hearing, and statements or other documents for 
inclusion in the record of a proceeding, required to be submitted in 
advance, must be submitted to the Chairman, or such authorized person as 
the Chairman may appoint, at an office located in the community where 
such hearing or proceeding is scheduled to be held. The location of such 
office will be set forth in all subpenas issued under the rules in this 
part and in all notices prepared pursuant to Sec. 706.2.

[44 FR 75150, Dec. 19, 1979]



Sec. 702.18   Commission reports.

    (a) If a Commission report tends to defame, degrade, or incriminate 
any person, the report or relevant portions thereof shall be delivered 
to such person at least thirty (30) days before the report shall be made 
public in order that such person may make a timely verified answer to 
the report. The Commission shall afford such person an opportunity to 
file with the Commission a verified answer to the report or relevant 
portions thereof not later than twenty (20) days after service of the 
report or relevant portions thereof upon such person as provided by the 
regulations in this part.
    (1) Such person shall be served with a copy of the report or 
relevant portions thereof, with an indication of the section(s) that the 
Commission has determined tend to defame, degrade, or incriminate such 
person, a copy of the Act and a copy of the regulations in this part.
    (2) The report or relevant portions thereof, the Act, and 
regulations in this part shall be served by depositing the same in the 
U.S. mail via certified mail, return receipt requested, or by leaving a 
copy thereof at the last known residence or business address of such 
person.
    (3) The date of sevice for the purposes of this section shall be the 
day the material is delivered either by the post office or otherwise, to 
such person or the agent of such person or at the last known residence 
or business address of such person. The acknowledgement of the party 
served, or the verified return of the one making service shall be proof 
of service except that when service is made by certified mail, the 
return post office receipt may also constitute proof of same.
    (b) If a person receiving a Commission report or relevant portions 
thereof under this part requests an extension of time from the 
Commission within 7 days of service of such report, the Commission may, 
upon a showing of good cause, grant the person additional time within 
which to file a verified answer.
    (c) A verified answer shall plainly and concisely state the facts 
and law constituting the person's reply or defense to the charges or 
allegations contained in the report.

[[Page 283]]

    (d) Such verified answer shall be published as an appendix to the 
report: Provided, however, That the Commission may except from the 
answer such matter as it determines to be scandalous, prejudicial or 
unnecessary.

[36 FR 5702, Mar. 27, 1971. Designated at 42 FR 14108, Mar. 15, 1977, 
and amended at 44 FR 75151, Dec. 19, 1979]



                           Subpart B--Meetings

    Authority: 5 U.S.C. 552b, Pub. L. 94-409, 90 Stat. 1241.

    Source: 42 FR 14108, Mar. 15, 1977, unless otherwise noted.



Sec. 702.50   Purpose and scope.

    This section contains the regulations of the U.S. Commission on 
Civil Rights implementing sections (a)-(f) of 5 U.S.C. 552b, the 
``Government in the Sunshine Act.'' They are adopted to further the 
principle that the public is entitled to the fullest practicable 
information regarding the decisionmaking processes of the Commission. 
They open to public observation meetings of the Commissioners of the 
U.S. Commission on Civil Rights except where the rights of individuals 
are involved or the ability of the Commission to carry out its 
responsibilities requires confidentiality.



Sec. 702.51   Definitions.

    (a) Commission means the U.S. Commission on Civil Rights and any 
Subcommittee of the Commission authorized under 42 U.S.C. 1975d(f).
    (b) Commissioner means a member of the U.S. Commission on Civil 
Rights appointed by the President under 42 U.S.C. 1975(b).
    (c) Solicitor means the Solicitor of the U.S. Commission on Civil 
Rights.
    (d) Meeting means the deliberations of at least the number of 
Commissioners required to take action on behalf of the Commission where 
such deliberations determine or result in the joint conduct or 
disposition of official Commission business.
    (1) The number of Commissioners required to take action on behalf of 
the Commission is four, except that such number is two when the 
Commissioners are a Subcommittee of the Commission authorized under 42 
U.S.C. 1975d(f).
    (2) Deliberations among Commissioners regarding the setting of the 
time, place or subject matter of a meeting, whether the meeting is open 
or closed, whether to withhold information discussed at a closed 
meeting, and any other deliberations required or permitted by 5 U.S.C. 
552b (d) and (e) and Sec. 702.54 and Sec. 702.55 of this subpart, are 
not meetings for the purposes of this subpart.
    (3) The consideration by Commissioners of Commission business which 
is not discussed through conference calls or a series of two party calls 
by the number of Commissioners required to take action on behalf of the 
Commission is not a meeting for the purposes of this subpart.
    (e) Public announcement or publicly announce means the use of 
reasonable methods, such as the posting on Commission public notice 
bulletin boards and the issuing of press releases, to communicate 
information to the public regarding Commission meetings.
    (f) Staff Director means the Staff Director of the U.S. Commission 
on Civil Rights.

[42 FR 14108, Mar. 15, 1977, as amended at 44 FR 75151, Dec. 19, 1979]



Sec. 702.52   Open meeting requirements.

    (a) Every portion of every Commission meeting shall be open to 
public observation, except as provided in Sec. 702.53 of this subpart. 
Commissioners shall not jointly conduct or dispose of agency business 
other than in accordance with this subpart.
    (b) This subpart gives the public the right to attend and observe 
Commission open meetings; it confers no right to participate in any way 
in such meetings.
    (c) The Staff Director shall be responsible for making physical 
arrangements for Commission open meetings which provide ample space, 
sufficient visibility and adequate acoustics for public observation.
    (d) The presiding Commissioner at an open meeting may exclude 
persons from a meeting and shall take all steps necessary to preserve 
order and decorum.

[[Page 284]]



Sec. 702.53   Closed meetings.

    (a) The Commission may close a portion or portions of a meeting and 
withhold information pertaining to such meeting when it determines that 
the public interest does not require otherwise and when such portion or 
portions of a meeting or the disclosure of such information is likely 
to:
    (1) Disclose matters that are (i) specifically authorized under 
criteria established by an Executive Order to be kept secret in the 
interests of national defense or foreign policy and (ii) in fact 
properly classified pursuant to such Executive Order;
    (2) Disclose information relating solely to the internal personnel 
rules and practices of the Commission;
    (3) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552), provided, that such statute (i) 
requires that the matters be withheld from the public in such a manner 
as to leave no discretion on the issue, or (ii) establishes particular 
criteria for withholding or refers to particular types of matters to be 
withheld;
    (4) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (5) Involve accusing any person of a crime, or formally censuring 
any person;
    (6) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (7) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would (i) interfere with enforcement proceedings, (ii) 
deprive a person of a right to a fair trial or an impartial 
adjudication, (iii) constitute an unwarranted invasion of personal 
privacy, (iv) disclose the identity of a confidential source and, in the 
case of a record received by the Commission from a criminal law 
enforcement authority in the course of a criminal investigation, or by 
an agency conducting a lawful national security intelligence 
investigation, confidential information furnished only by the 
confidential source, (v) disclose investigative techniques and 
procedures, or (vi) endanger the life or physical safety of law 
enforcement personnel;
    (8) Disclose information received by the Commission and contained in 
or related to examination, operating, or condition reports prepared by, 
on behalf of, or for the use of an agency responsible for the regulation 
or supervision of financial institutions;
    (9) Disclose information the premature disclosure of which would (i) 
In the case of information received by the Commission from an agency 
which regulates currencies, securities, commodities, or financial 
institutions, be likely to (A) lead to significant financial speculation 
in currencies, securities, or commodities, or (B) significantly endanger 
the stability of any financial institution; or (ii) be likely to 
significantly frustrate implementation of a proposed action, except that 
paragraph (a)(9)(ii) of this section shall not apply in any instance 
where the Commission has already disclosed to the public the content or 
nature of its proposed action, or where the Commission is required by 
law to make such disclosure on its own initiative prior to taking final 
agency action on such proposal; or
    (10) Specifically concern the Commission's issuance of a subpena, or 
the Commission's participation in a civil action or proceeding, an 
action in a foreign court or international tribunal, or an arbitration.



Sec. 702.54   Closed meeting procedures.

    (a) A meeting or portion thereof will be closed, and information 
pertaining to a closed meeting will be withheld, only after four 
Commissioners when no Commissioner's position is vacant, or three 
Commissioners when there is such a vacancy, or two Commissioners on a 
subcommittee authorized under 42 U.S.C. 1975d(f), vote to take such 
action.
    (b) A separate vote shall be taken with respect to each meeting, a 
portion or portions of which is proposed to be closed to the public 
under Sec. 702.53, and with respect to any information to be withheld 
under Sec. 702.53.

[[Page 285]]

    (1) A single vote may be taken with respect to a series of meetings, 
a portion or portions of which are proposed to be closed to the public, 
or with respect to any information concerning such series of meetings, 
so long as:
    (i) Each meeting in such series involves the same particular 
matters, and
    (ii) Is scheduled to be held no more than thirty (30) days after the 
initial meeting in such series.
    (c) The Commission will vote on the question of closing a meeting or 
portion thereof and withholding information under paragraph (b) of this 
section if one Commissioner calls for such a vote. The vote of each 
Commissioner participating in a vote to close a meeting shall be 
recorded and no proxies shall be allowed.
    (1) If such vote is against closing a meeting and withholding 
information, the Staff Director, within one working day of such vote, 
shall make publicly available by putting in a place easily accessible to 
the public a written copy of such vote reflecting the vote of each 
Commissioner.
    (2) If such vote is for closing a meeting and withholding 
information, the Staff Director, within one working day of such vote, 
shall make publicly available by putting in a place easily accessible to 
the public a written copy of such vote reflecting the vote of each 
Commissioner, and:
    (i) A full written explanation of the decision to close the meeting 
or portions thereof (such explanation will be as detailed as possible 
without revealing the exempt information);
    (ii) A list of all persons other than staff members expected to 
attend the meeting and their affiliation (the identity of persons 
expected to attend such meeting will be withheld only if revealing their 
identity would reveal the exempt information which is the subject of the 
closed meeting).
    (d) Prior to any vote to close a meeting or portion thereof under 
Sec. 702.54(c) the Commissioners shall obtain from the Solicitor his or 
her opinion as to whether the closing of a meeting or portions thereof 
is in accordance with paragraphs (1) through (10) of Sec. 702.53(a).
    (1) For every meeting closed in accordance with paragraphs (1) 
through (10) of Sec. 702.53(a), the Solicitor shall publicly certify in 
writing that, in his or her opinion, the meeting may be closed to the 
public and shall cite each relevant exemptive provision.
    (2) A copy of certification by the Solicitor, together with a 
statement from the presiding officer of the closed meeting setting forth 
the time and place of the meeting and the persons present, shall be 
retained by the Commission.
    (e) For all meetings closed to the public, the Commission shall 
maintain a complete verbatim transcript or electronic recording adequate 
to record fully the proceedings of each meeting, or portion of a meeting 
which sets forth the time and place of the meeting and the persons 
present.
    (1) In the case of a meeting, a portion of a meeting, closed to the 
public pursuant to paragraphs (8), (9)(i)(A), or (10) of Sec. 702.53(a), 
the Commission may retain a set of minutes;
    (i) such minutes shall fully and clearly describe all matters 
discussed and shall provide a full and accurate summary of any actions 
taken, and the reasons therefor, including a description of each of the 
views expressed on any item and the record of any roll call vote 
(reflecting the vote of each member on the question). All documents 
considered in connection with any action shall be identified in such 
minutes.
    (f) Any person whose interests may be directly affected by a portion 
of a meeting may request that such portion be closed to the public under 
Sec. 702.53 or that it be open to the public if the Commission has voted 
to close the meeting pursuant to Sec. 702.53(a) to Sec. 702.53(a)(5), 
(6) or (7). The Commission will vote on the request if one Commissioner 
asks that a vote be taken.
    (1) Such requests shall be made to the Staff Director within a 
reasonable amount of time after the meeting or vote in question is 
publicly announced.

[42 FR 14108, Mar. 15, 1977, as amended at 44 FR 75151, Dec. 19, 1979]

[[Page 286]]



Sec. 702.55   Public announcement of meetings.

    (a) Agenda: The Staff Director shall set as early as possible but in 
any event at least eight calendar days before a meeting, the time, place 
and subject matter for the meeting.
    (1) Agenda items will be identified in detail adequate to inform the 
general public of the specific business to be discussed at the meeting.
    (b) Notice: The Staff Director, as early as possible but in any 
event at least eight calendar days before a meeting, shall make public 
announcement of:
    (1) The time of the meeting;
    (2) Its place;
    (3) Its subject matter;
    (4) Whether it is open or closed to the public; and
    (5) The name and phone number of a Commission staff member who will 
respond to requests for information about the meeting.
    (c) Changes: (1) The time of day or place of a meeting may be 
changed following the public announcement required by Sec. 702.55(b) of 
this subpart, if the Staff Director publicly announces such change at 
the earliest practicable time subsequent to the decision to change the 
time of day or place of the meeting.
    (2) The date of a meeting may be changed following the public 
announcement required by Sec. 702.55(b), or a meeting may be scheduled 
less than eight calendar days in advance, if:
    (i) Four Commissioners when no Commissioner's position is vacant, or 
three Commissioners when there is such a vacancy, or two Commissioners 
on a Subcommittee authorized under 42 U.S.C. 1975d(f), determine by 
recorded vote that Commission business requires such a meeting at an 
earlier date; and
    (ii) The Staff Director, at the earliest practicable time following 
such vote, makes public announcement of the time, place and subject 
matter of such meeting, and whether it is open or closed to the public.
    (3) The subject matter of a meeting or the determination to open or 
close a meeting or a portion of a meeting to the public, may be changed 
following the public announcement required by 702.55(b) of this subpart 
if:
    (i) Four Commissioners when no Commissioner's position is vacant, or 
three Commissioners when there is such a vacancy, or two Commissioners 
on a Subcommittee authorized under 42 U.S.C. 1975d(f), determine by 
recorded vote that Commission business so requires; and
    (ii) The Staff Director publicly announces such change and the vote 
of each Commissioner upon such change at the earliest practicable time 
subsequent to the decision to make such change.
    (d) Federal Register: Immediately following all public announcements 
required by Sec. 702.55(b) and (c) of this subpart, notice of the time, 
place and subject matter of a meeting, whether the meeting is open or 
closed to the public, any change in one of the preceding, and the name 
and phone number of the official designated by the Commission to respond 
to requests for information about meeting, shall be submitted for 
publication in the Federal Register.
    (1) Notice of a meeting will be published in the Federal Register 
even after the meeting which is the subject of the notice has occurred 
in order to provide a public record of all Commission meetings.



Sec. 702.56   Records.

    (a) The Commission shall promptly make available to the public in an 
easily accessible place at Commission headquarters the following 
materials:
    (1) A copy of the certification by the Solicitor required by 
Sec. 702.54(e)(1).
    (2) A copy of all recorded votes required to be taken by these 
rules.
    (3) A copy of all announcements published in the Federal Register 
pursuant to this subpart.
    (4) Transcripts, electronic recordings and minutes of closed 
meetings determined not to contain items of discussion or information 
which may be withheld under Sec. 702.53.
    (i) Copies of such material will be furnished to any person at the 
actual cost of transcription or duplication.
    (b) Requests to review or obtain copies of records compiled under 
this Act,

[[Page 287]]

other than transcripts, electronic recordings or minutes of a closed 
meeting, will be processed under the Freedom of Information Act and, 
where applicable, the Privacy Act regulations of the Commission (parts 
704 and 706, respectively, of this title). Nothing in this subpart 
expands or limits the present rights of any person under these rules 
with respect to such requests.
    (1) Requests to review or obtain copies of transcripts, electronic 
recordings or minutes of meetings of a closed meeting maintained under 
Sec. 702.54(e) and not released under Sec. 702.56(a)(4) shall be 
directed to the Staff Director who shall respond to such requests within 
ten (10) working days.
    (c) The Commission shall maintain a complete verbatim copy of the 
transcript, a complete copy of minutes, or a complete electronic 
recording of each meeting, or portion of a meeting, closed to the 
public, for a period of two years after such meeting, or until one year 
after the conclusion of any agency proceeding with respect to which the 
meeting or portion was held, whichever occurs later.

[42 FR 14108, Mar. 15, 1977, as amended at 44 FR 75151, Dec. 19, 1979]



Sec. 702.57   Administrative review.

    (a) Any person who believes a Commission action governed by this 
subpart to be contrary to the provisions of this subpart shall file in 
writing with the Staff Director an objection specifying the violation 
and suggesting corrective action. Whenever possible, the Staff Director 
shall respond within ten (10) working days of the receipt of such 
objections.



PART 703--OPERATIONS AND FUNCTIONS OF STATE ADVISORY COMMITTEES--Table of Contents




Sec.
703.1  Name and establishment.
703.2  Functions.
703.3  Scope of subject matter.
703.4  Advisory Committee Management Officer.
703.5  Membership.
703.6  Officers.
703.7  Subcommittees--Special Assignments.
703.8  Meetings.
703.9  Reimbursement of members.
703.10  Public availability of documents and other materials.

    Authority: Sec. 105(c) of the Civil Rights Act of 1957, 71 Stat. 
634, as amended.



Sec. 703.1  Name and establishment.

    Pursuant to Section 105(c) of the Act, the Commission has chartered 
and maintains Advisory Committees to the Commission in each State and 
the District of Columbia. All relevant provisions of the Federal 
Advisory Committee Act of 1972 (Pub. L. 92-463 as amended) are 
applicable to the management, membership and operations of such 
committees and subcommittees thereof.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.2   Functions.

    Under the Commission's charter each State advisory committee shall:
    (a) Advise the Commission in writing of any knowledge or information 
it has of any alleged deprivation of the right to vote and to have the 
vote counted, by reason of color, race, religion, sex, age, handicap or 
national origin, or that citizens are being accorded or denied the right 
to vote in Federal elections as a result of patterns or practices of 
fraud or discrimination;
    (b) Advise the Commission concerning legal developments constituting 
discrimination or a denial of equal protection of the laws under the 
Constitution, and the effect of the laws and policies of the Federal 
Government with respect to equal protection of the laws;
    (c) Advise the Commission upon matters of mutual concern in the 
preparation of reports of the Commission to the President and the 
Congress;
    (d) Receive reports, suggestions, and recommendations from 
individuals, public and private organizations, and public officials upon 
matters pertinent to inquiries conducted by the State committee;
    (e) Initiate and forward advice and recommendations to the 
Commission upon matters which the State committee has studied;
    (f) Assist the Commission in the exercise of its clearinghouse 
function and with respect to other matters which the State committee has 
studied;

[[Page 288]]

    (g) Attend, as observers, any open hearing or conference which the 
Commission may hold within the State.

[42 FR 14108, Mar. 15, 1977, as amended at 44 FR 75151, Dec. 19, 1979]



Sec. 703.3   Scope of subject matter.

    The scope of the subject matter to be dealt with by State advisory 
committees shall be those subjects of inquiry or study with which the 
Commission itself is authorized to deal, pursuant to section 104(a) of 
the act. Each State advisory committee shall confine its studies to the 
State covered by its charter. It may, however, subject to the 
requirements of Sec. 703.4, undertake to study within the limitations of 
the act, subjects other than those chosen by the Commission for study.

[38 FR 15446, June 12, 1973]



Sec. 703.4  Advisory Committee Management Officer.

    (a) The Assistant Staff Director for the Office of Regional Programs 
is designated as Advisory Committee Management Officer pursuant to the 
requirements of the Federal Advisory Committee Act of 1972, (Pub. L. 92-
463).
    (b) Such officer shall carry out the functions specified in Section 
8(b) of the Federal Advisory Committee Act.
    (c) Such officer shall with respect to each State Advisory 
Committee, appoint an employee, subject to the supervision of the 
Regional Director of the Commission having responsibility for the State 
within which said Committee has been chartered, to provide services to 
the Committee and to be responsible for supervising the activity of the 
Committee pursuant to section 10 of the Federal Advisory Committe Act.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.5  Membership.

    (a) Subject to exceptions made from time to time by the Commission 
to fit special circumstances, each State Committee shall consist of at 
least 11 members appointed by the Commission. Members of the State 
Committee shall serve for a fixed term to be set by the Commission upon 
the appointment of a member subject to the duration of Advisory 
Committees as prescribed by the charter, provided that members of the 
State Committee may, at any time, be removed by the Commission.
    (b) Membership on the Advisory Committee shall be reflective of the 
different ethnic, racial, and religious communities within each State 
and the membership shall also be representative with respect to sex, 
political affiliation, age and handicap status.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.6  Officers.

    (a) The officers of each State Advisory Committee shall be a 
Chairperson, Vice Chairperson and such other officers as may be deemed 
advisable.
    (b) The Chairperson shall be appointed by the Commission.
    (c) The Vice Chairperson and other officers shall be elected by the 
majority vote of the full membership of the Committee.
    (d) The Chairperson, or in his/her absence the Vice Chairperson, 
under the direction of the Commission staff member appointed pursuant to 
Sec. 703.4(b), shall:
    (1) Call meetings of the Committee;
    (2) Preside over meetings of the Committee;
    (3) Appoint all subcommittees of the Committee;
    (4) Certify for accuracy the minutes of Committee meetings prepared 
by the assigned Commission staff member; and
    (5) Perform such other functions as the Committee may authorize or 
the Commission may request.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.7  Subcommittees--Special Assignments.

    Subject to the approval of the designated Commission employee, a 
State Advisory Committee may:
    (a) Establish subcommittees, composed of members of the Committee to 
study and report upon matters under consideration, and it may authorize 
such subcommittees to take specific action within the competence of the 
Committee; and
    (b) Designate individual members of the Committee to perform special 
projects involving research or study on

[[Page 289]]

matters under consideration by the Committee.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.8  Meetings.

    (a) Meetings of a Committee shall be convened by the designated 
Commission employee, or, subject to his/her approval, by the 
Chairperson, or by a majority of the Committee members. The agenda for 
such Committee or subcommittee meeting shall be approved by the 
designated Commission employee.
    (b) A quorum shall consist of one-half or more of the members of the 
Committee, or five members, whichever is the lesser, except that with 
respect to the conduct of factfinding meetings as authorized in 
paragraph (e) of this section, a quorum shall consist of three members.
    (c) Notice of all meetings of a Committee shall be given to the 
public.
    (1) Notice shall be published in the Federal Register at least 15 
days prior to the meetings, provided that in emergencies, such 
requirement may be waived.
    (2) Notice of meetings shall be provided to the public by press 
releases and other appropriate means.
    (3) Each notice shall contain a statement of the purpose of the 
meeting, a summary of the agenda, and the time, place, and location of 
such meeting.
    (d) Except as provided for in paragraph (d)(1) of this section, all 
meetings of committees or subcommittees shall be open to the public.
    (1) The Assistant Staff Director for Regional Programs may authorize 
a committee or subcommittee to hold a meeting closed to the public if 
he/she determines that the closing of such meeting is in the public 
interest: Provided, That prior to authorizing the holding of a closed 
meeting the Assistant Staff Director will have requested and received 
the opinion of the Solicitor of the Commission with respect to whether 
the meeting may be closed under one or more of the exemptions provided 
in the Government in the Sunshine Act, 5 U.S.C. 552b(c).
    (2) In the event that any meeting or portion thereof is closed to 
the public, the Committee shall publish, at least annually, in summary 
form a report of the activities conducted in meetings not open to the 
public.
    (e) Advisory Committees and subcommittees may hold factfinding 
meetings for the purpose of inviting the attendance of and soliciting 
information and views from government officials and private persons 
respecting subject matters within the jurisdiction of the Committee or 
subcommittee.
    (f) Any person may submit a written statement at any business or 
factfinding meeting of a Committee or subcommittee.
    (g) At the discretion of the designated Commission employee or his/
her designee, any person may make an oral presentation at any business 
or factfinding meeting, provided that such presentation will not defame, 
degrade or incriminate any other person as is prohibited by the Act.

[44 FR 75151, Dec. 19, 1979]



Sec. 703.9  Reimbursement of members.

    (a) Advisory Committee members may be reimbursed by the Commission 
by a per diem subsistence allowance and for travel expenses at rates not 
to exceed those prescribed by Congress for Government employees, for the 
following activities only:
    (1) Attendance at meetings, as provided for in Sec. 703.8; and
    (2) Any activity specifically requested and authorized by the 
Commission to be reimbursed.
    (b) Members will be reimbursed for the expense of travel by private 
automobile on a mileage basis only to the extent such expense is no more 
than that of suitable public transportation for the same trip, unless 
special circumstances justify the additional expense of travel by 
private automobile.

[44 FR 75152, Dec. 19, 1979]



Sec. 703.10   Public availability of documents and other materials.

    Part 704 of these rules and regulations shall be applicable to 
reports, publications, and other materials prepared by or for State 
advisory committees.

[38 FR 15446, June 12, 1973]

[[Page 290]]



PART 704--INFORMATION DISCLOSURE AND COMMUNICATIONS--Table of Contents




Sec.
704.1  Material available pursuant to 5 U.S.C. 552.
704.2  Complaints.
704.3  Other requests and communications.
704.4  Restrictions on disclosure of information.

    Authority: 42 U.S.C. 1975-1975(f); 5 U.S.C. 552.



Sec. 704.1   Material available pursuant to 5 U.S.C. 552.

    (a) Purpose, scope, and definitions. (1) This section contains the 
regulations of the U.S. Commission on Civil Rights implementing 5 U.S.C. 
552. These regulations inform the public with respect to where and how 
records and information may be obtained from the Commission. Officers 
and employees of the Commission shall make Commission records available 
under 5 U.S.C. 552 only as prescribed in this section. Nothing contained 
in this section, however, shall be construed to prohibit officers or 
employees of the Commission from routinely furnishing information or 
records which are customarily furnished in the regular performance of 
their duties.
    (2) For the purposes of these regulations the terms listed below are 
defined as indicated:
    Commission means the United States Commission on Civil Rights;
    Solicitor means the Solicitor of the United States Commission on 
Civil Rights or his/her designee;
    FOIA Freedom of Information Act, 5 U.S.C. 552;
    FOIA Request means a request in writing, for records pursuant to 5 
U.S.C. 552 which meets the requirements of 704.1(d) herein. These 
regulations do not apply to telephone or other oral communications and 
requests not complying with Sec. 704.1(d)(1)(i);
    Staff Director means the Staff Director of the United States 
Commission on Civil Rights.
    (b) General policy. In order to foster the maximum participation of 
an informed public in the affairs of Government, the Commission will 
make the fullest possible disclosure of its identifiable records and 
information consistent with such considerations as those provided in the 
exemptions of 5 U.S.C. 552, which are set forth in paragraph (f) of this 
section.
    (c) Material maintained on file pursuant to 5 U.S.C. 552(a)(2). 
Material maintained on file pursuant to 5 U.S.C. 552(a)(2) shall be 
available for inspection during regular business hours at the offices of 
the Commission at 1121 Vermont Avenue, NW., Washington, DC 20425. Copies 
of such material shall be available upon written request, specifying the 
material desired, addressed to the Solicitor's Unit, U.S. Commission on 
Civil Rights, Washington, DC 20425, and upon the payment of fees, if 
any, determined in accordance with paragraph (e) of this section.
    (1) Current index. Included in the material available pursuant to 5 
U.S.C. 552(a)(2) shall be an index of:
    (i) All other material maintained on file pursuant to 5 U.S.C. 
552(a)(2); and
    (ii) All material published by the Commission in the Federal 
Register and currently in effect.
    (2) Deletion of identifying details. Wherever deletions from 
material maintained on file pursuant to 5 U.S.C. 552(a)(2) are required 
in order to prevent a clearly unwarranted invasion of privacy, 
justification for the deletions shall be placed as a preamble to 
documents from which such deletions are made.
    (d) Materials available pursuant to 5 U.S.C. 552(a)(3)--(1) Request 
Procedures. (i) Each request for records pursuant to this subsection 
shall be in writing over the signature of the requester, addressed to 
the Solicitor's Unit, U.S. Commission on Civil Rights, Washington, DC 
20425 and: (A) Shall clearly and prominently be identified as a request 
for information under the Freedom of Information Act [if submitted by 
mail or otherwise submitted in an envelope or other cover, be clearly 
and prominently identified as such on the envelope or other cover--e.g., 
FOIA]; and (B) shall contain a sufficiently specific description of the 
record requested with respect to names, dates, and subject matter to 
permit such record to be identified and located; and (C) shall contain a 
statement that whatever costs involved pursuant to Sec. 704.1(e) will

[[Page 291]]

be paid, that such costs will be paid up to a specified amount, or that 
waiver or reduction of fees is requested pursuant to Sec. 704.1(e).
    (ii) If the information submitted pursuant to Sec. 704.1(d)(1)(i)(B) 
is insufficient to enable identification and location of the records, 
the Solicitor shall as soon as possible notify the requester in writing 
indicating the additional information needed. Every reasonable effort 
shall be made to assist in the identification and location of the record 
sought. Time requirements under these regulations are tolled from the 
date notification under this subsection is sent to the requester until 
an answer in writing to such notification is received from requester.
    (iii) A request for records which is not in writing or does not 
comply with Sec. 704.1(d)(1)(i) is not a request under the Freedom of 
Information Act and the 10 day time limit for agency response under the 
Act will not be deemed applicable.
    (iv) Except as otherwise provided herein, the Solicitor shall 
immediately notify the requester of noncompliance with 
Sec. 704.1(d)(1)(i)(C) and Sec. 704.1(e).
    (2) Agency determinations. (i) Responses to all requests pursuant to 
5 U.S.C. 552(a)(3) shall be made by the Solicitor in writing to the 
requester within 10 working days after receipt by the Solicitor of such 
request except as specifically exempted under Sec. 704.1(d)(1) (ii), 
(iii) and (iv), and shall state: (A) Whether and to what extent the 
Commission will comply with the request; (B) the probable availability 
of the records or that the records may be furnished with deletions or 
that records will be denied as exempt pursuant to 5 U.S.C. 552(b) (i) 
through (ix); (C) the estimated costs, determined in accordance with 
704.1(e) herein, including waiver or reduction of fee as appropriate and 
any deposit or prepayment requirement; and (D) when records are to be 
provided, the time and place at which records or copies will be 
available determined in accordance with the terms of the request and 
with Sec. 704.1(d)(3). Such response shall be termed a determination 
notice.
    (ii) In the case of denial of requests in whole or part the 
determination notice shall state: (A) Specifically what records are 
being denied; (B) the reasons for such denials; (C) the specific 
statutory exemption(s) upon which such denial is based; (D) the names 
and titles or positions of every person responsible for the denial of 
such request; and (E) the right of appeal to the Staff Director of the 
Commission and procedures for such appeal as provided under 
Sec. 704.1(g).
    (iii) Each request received by the Solicitor's Unit for records 
pursuant to these regulations shall be recorded immediately. The record 
of each request shall be kept current, stating the date and time the 
request is received, the name and address of the person making the 
request, any amendments to such request, the nature of the records 
requested, the action taken regarding the request, including waiver of 
fees, extensions of time pursuant to 5 U.S.C. 552(a)(6)(B), and appeals. 
The date and subject of any letters pursuant to Sec. 704.1(d)(1) or 
agency determinations pursuant to paragraph (d)(2)(i) of this section, 
the date(s) any records are subsequently furnished, and the payment 
requested and received.
    (3) Time limitations. (i) Time limitations for agency response to a 
request for records established by these regulations shall begin when 
the request is recorded pursuant to Sec. 704.1(d)(2)(iii). A written 
request pursuant to FOIA but sent to an office of the Commission other 
than the Solicitor's Unit shall be date stamped, initialed and 
redirected immediately to the Solicitor's Unit. The required period for 
agency determination shall begin when it is received by the Solicitor's 
Unit in accordance with Sec. 704.1(d)(2)(iii).
    (ii) In unusual circumstances, pursuant to 5 U.S.C. 552(a)(6)(B), 
the Solicitor may, in the case of initial determinations under these 
regulations, extend the 10 working day time limit in which the agency is 
required to make its determination notification. Such extension shall be 
communicated in writing to the requesting party setting forth with 
particularity the reasons for such extension and the date on which a 
determination is expected to be transmitted. Such extensions may not 
exceed 10 working days for any request and may only be used to the 
extent

[[Page 292]]

necessary to properly process a particular request. Such extension is 
permissible only where there is a demonstrated need: (A) To search for 
and collect the requested records from field facilities or other 
establishments that are separate from the Solicitor's Unit; (B) to 
search for, collect, and appropriately examine a voluminous amount of 
separate and distinct records which are demanded in a single request; or 
(C) for consultation, which shall be conducted with all practicable 
speed, with another agency having a substantial interest in the 
determination of the request or among two or more components of the same 
agency having substantial subject matter interest therein.
    (e) Fees--(1) Definitions. The following definitions apply to the 
terms when used in this section:
    (i) Direct costs means those expenditures which the Commission 
actually incurs in searching for and duplicating (and in the case of 
commercial requesters, reviewing) documents to respond to a request made 
under Sec. 704.1(d) of this part. Direct costs include, for example, the 
salary of the employee(s) performing the work (the basic rate of pay for 
the employee(s) plus 16 percent of that rate to cover benefits) and the 
cost of operating duplicating machinery. Not included in direct costs 
are overhead expenses such as costs of space, and heating or lighting 
the facility in which the records are stored.
    (ii) Search means all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification within documents. However, an entire document will be 
duplicated if this would prove to be a more efficient and less expensive 
method of complying with a request than a more detailed manner of 
searching. Search is distinguished from review of material in order to 
determine whether the material is exempt from disclosure.
    (iii) Duplication means the process of making a copy of a document 
necessary to respond to a request for disclosure of records. Such copies 
can take the form of paper or machine readable documentation (e.g., 
magnetic tape or disk), among others.
    (iv) Review means the process of examining documents located in 
response to an information request to determine whether any portion of 
any document is permitted to be withheld. It also includes processing 
any documents for disclosure, e.g., doing all that is necessary to 
prepare them for release. Review does not include time spent resolving 
general legal or policy issues regarding the application of exemptions.
    (v) Commercial use request means a request from or on behalf of one 
who seeks information for a use or purpose that furthers the commercial, 
trade, or profit interests of the requester or the person on whose 
behalf the request is made. In deciding whether a requester properly 
belongs in this category, the Solicitor will determine the use to which 
a requester will put the documents requested. When the Solicitor has 
reasonable cause to doubt such intended use, or where such use is not 
clear from the request itself, the Solicitor will see additional 
clarification before assigning the request to a specific category.
    (vi) Educational institution means a school, an institution of 
higher education, an institution of professional education or an 
institution of vocational education, which operates a program or 
programs of scholarly research.
    (vii) Noncommercial scientific institution means an institution that 
is not operated on a commercial basis and which is operated solely for 
the purpose of conducting scientific research the results of which are 
not intended to promote any particular product or industry.
    (viii) Representative of the news media means any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term news means information that is 
about current events or that would be of current interest to the public. 
News media entities include television or radio stations broadcasting to 
the public at large, and publishers of periodicals (but only in those 
instances when they can qualify as disseminators of ``news'') who make 
their products available for purchase or subscription by the general

[[Page 293]]

public. ``Freelance'' journalists may be regarded as working for a news 
organization if they can demonstrate a solid basis for expecting 
publication through that organization, even though not actually employed 
by it.
    (2) Costs to be included in fees. The direct costs included in fees 
will vary according to the following categories of requests:
    (i) Commercial use requests. Fees will include the Commission's 
direct costs for searching for, reviewing, and duplicating the requested 
records.
    (ii) Educational and noncommercial scientific institution requests. 
The Commission will provide documents to requesters in this category for 
the cost of duplication alone, excluding charges for the first 100 
pages. To be eligible for inclusion in this category, requesters must 
show that the request is being made under the auspices of a qualifying 
institution and that the records are sought in furtherance of scholarly 
(if the request is from an educational institution) or scientific (if 
the request is from a noncommercial scientific institution) research.
    (iii) Requests from representatives of the news media. The 
Commission will provide documents to requesters in this category for the 
cost of duplication alone, excluding charges for the first 100 pages. To 
be eligible for inclusion in this category a requester must meet the 
criteria in paragraph (e)(1)(viii) of this section.
    (iv) All other requests. The Commission will charge requesters who 
do not fit into any of the categories in paragraphs (e)(2)(i) through 
(iii) of this section fees which cover the direct costs of searching for 
and duplicating records that are responsive to the requests, except for 
the first two hours of search time and the first 100 pages duplicated. 
However, requests from persons for records about themselves will 
continue to be treated under the fee provisions of the Privacy Act of 
1974 and Sec. 705.10 of this chapter.
    (3) Fee calculation. Fees will be calculated as follows:
    (i) Manual search. At the salary rate (basic pay plus 16 percent) of 
the employee(s) making the search.
    (ii) Computer search. At the actual direct cost of providing the 
search, including computer search time directly attributable to search 
for records responsive to the request, runs, and operator salary 
apportionable to the search.
    (iii) Review (commercial use requests only). At the salary rate 
(basic pay plus 16 percent) of the employee(s) conducting the review. 
Only the review necessary at the initial administrative level to 
determine the applicability of any exemption, and not review at the 
administrative appeal level, will be included in the fee.
    (iv) Duplication. At 20 cents per page for paper copy. For copies of 
records prepared by computer (such as tapes or printouts), the actual 
cost of production, including operator time, will be charged.
    (v) Additional services; certification. Express mail and other 
additional services that may be arranged by the requester will be 
charged at actual cost. The fee for certification or authentication of 
copies shall be $3.00 per document.
    (vi) Assessment of interest. The Commission may begin assessing 
interest charges on the 31st day following the day the fee bill is sent. 
Interest will be at the rate prescribed in 31 U.S.C. 3717 and will 
accrue from the date of billing.
    (vii) No fee shall be charged if the total billable cost calculated 
under paragraphs (e)(2) and (3) of this section is less than $10,00.
    (4) Waiver or reduction of fees. (i) Documents will be furnished 
without charge, or at a reduced charge, where disclosure of the 
information is in the public interest because it is likely to contribute 
significantly to public understanding of the operations or activities of 
the government and is not primarily in the commercial interest of the 
requester.
    (ii) Whenever a waiver or reduction of fees is granted, only one 
copy of the record will be furnished.
    (iii) The decision of the Solicitor on any fee waiver or reduction 
request shall be final and unappealable.
    (5) Payment procedures--(i) Fee payment. Payment of fees shall be 
made by cash (if delivered in person), check or money order payable to 
the United States Commission on Civil Rights.

[[Page 294]]

    (ii) Notification of fees. No work shall be done that will result in 
fees in excess of $25.00 without written authorization from the 
requester. Where it is anticipated that fees will exceed $25.00, and the 
requester has not indicated in advance a willingness to pay fees as high 
as are anticipated, the requester will be notified of the amount of the 
projected fees. The notification shall offer the requester an 
opportunity to confer with the Solicitor in an attempt to reformulate 
the request so as to meet the requester's needs at a lower cost. The 
administrative time limits prescribed in 5 U.S.C. 552(a)(6) will not 
begin until after the requester agrees in writing to accept the 
prospective charges.
    (6) Advance payment of fees. When fees are projected to exceed 
$250.00, the requester may be required to make an advance payment of all 
or part of the fee before the request is processed. If a requester has 
previously failed to pay a fee in a timely fashion (i.e. within 30 days 
of the billing date), the requester will be required to pay the full 
amount owed plus any applicable interest, and to make an advance payment 
of the full amount of the estimated fee before a new or pending request 
is processed from that requester. The administrative time limits 
prescribed in 5 U.S.C. 552(a)(6) will not begin until after the 
requester has complied with this provision.
    (7) Other provisions--(i) Charges for unsuccessful search. Charges 
may be assessed for time spent searching for requested records, even if 
the search fails to locate responsive records or the records are 
determined, after review, to be exempt from disclosure.
    (ii) Aggregating requests to avoid fees. Multiple requests shall be 
aggregated when the Solicitor reasonably determines that a requester or 
group of requesters is attempting to break down a request into a series 
of requests to evade fees.
    (iii) Debt Collection Act. The Debt Collection Act, including 
disclosure to consumer reporting agencies and use of collection 
agencies, will be used to encourage payment where appropriate.
    (f) Exemptions (5 U.S.C. 552(b))--
    (1) General. The Commission may exempt from disclosure matters that 
are:
    (i)(A) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interest of national defense or 
foreign policy and (B) are in fact properly classified pursuant to such 
Executive Order.
    (ii) Related solely to the internal personnel rules and practices of 
an agency;
    (iii) Specifically exempted from disclosure by statute;
    (iv) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (v) Interagency or intra-agency memoranda or letters which would not 
be available by law to a party other than an agency in litigation with 
the agency;
    (vi) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (vii) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (A) Could reasonably be expected to interfere with enforcement 
proceedings,
    (B) Could deprive a person of a right to a fair trial or an 
impartial adjudication,
    (C) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy,
    (D) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis,
    (E) Could disclose techniques and procedures for all enforcement 
investigations or prosecutions, or could disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law, or
    (F) Could reasonably be expected to endanger the life or physical 
safety of any individual;
    (viii) Contained in or related to examination, operating, or 
condition reports prepared by, on behalf of, or for the use of an agency 
responsible for the

[[Page 295]]

regulation or supervision of financial institutions; and
    (ix) Geological and geophysical information and data, including 
maps, concerning wells.
    (2) Investigatory records or information. (5 U.S.C. 552(b)(7)). (i) 
Among the documents exempt from disclosure pursuant to 
Sec. 704.1(f)(1)(vii) shall be records or information reflecting 
investigations which either are conducted for the purpose of determining 
whether a violation(s) of legal right has taken place, or have disclosed 
that a violation(s) of legal right has taken place, but only to the 
extent that production of such records or information would fall within 
the classifications established in paragraphs (f)(1)(vii)(B) through (F) 
of this section.
    (ii) Among the documents exempt from disclosure under 
paragraphs(f)(1)(vii)(D) and (f)(2)(i) of this section concerning 
confidential sources shall be documents which disclose the fact or the 
substance of a communication made to the Commission in confidence 
relating to an allegation or support of an allegation of wrongdoing by 
certain persons. It is sufficient under this subsection to indicate the 
confidentiality of the source if the substance of the communication or 
the circumstances of the communication indicate that investigative 
effectiveness could reasonably be expected to be inhibited by 
disclosure.
    (iii) Whenever a request is made which involves access to records 
described in paragraph (f)(1)(vii)(A) of this section and the 
investigation or proceeding involves a possible violation of criminal 
law; and there is reason to believe that the subject of the 
investigation or proceeding is not aware of its pendency, and disclosure 
of the existence of the records could reasonably be expected to 
interfere with enforcement proceedings, the Commission may, during only 
such time as that circumstance continues, treat the records as not 
subject to the requirements of 5 U.S.C. 552 and this section.
    (3) Any reasonably segregable portion of a record shall be provided 
to any person requesting such record after deletion of the portions 
which are exempt under this subsection.
    (g) Administrative appeals. (1) These procedures apply whenever a 
requester is denied records under Sec. 704.1(d)(2)(i).
    (2) Parties may appeal Sec. 704.1(d)(2)(i) decisions within 90 days 
of the date of such decision by filing a written request for review 
addressed to the Staff Director, U.S. Commission on Civil Rights, 
Washington, DC 20425, by certified mail, including a copy of the written 
denial, and may include a statement of the circumstances, reasons or 
arguments advanced in support of disclosure. Review will be made by the 
Staff Director on the basis of the written record.
    (3) The decision on review of any appeal filed under this subsection 
shall be in writing over the signature of the Staff Director, will be 
promptly communicated to the person requesting review, and will 
constitute the final action of the Commission.
    (4) Determinations of appeals filed under this subsection shall be 
made within 20 working days after the receipt of such appeal. If, on 
appeal, denial of records is in whole or part upheld, the Staff Director 
shall notify the persons making such request of the provisions for 
judicial review of that determination under 5 U.S.C. 552(a)(4).
    (5) An extension of time may be granted under this subsection 
pursuant to criteria established in Sec. 704.1(d)(3)(ii) (A) to (C), 
except that such extension together with any extension which may have 
been granted pursuant to Sec. 704.1(d)(3)(ii) may not exceed a total of 
10 working days.

[40 FR 22833, May 27, 1975, as amended at 44 FR 75152, Dec. 19, 1979; 55 
FR 9884, 9886, Mar. 16, 1990]



Sec. 704.2   Complaints.

    Any person may bring to the attention of the Commission a grievance 
which he believes falls within the jurisdiction of the Commission, as 
set forth in section 104 of the Act. This shall be done by submitting a 
complaint in writing to the Office of Federal Civil Rights Evaluation, 
U.S. Commission on Civil Rights, Washington, DC 20425. Allegations 
falling under section 104(a) (1) and (5) of the Act (discrimination or 
fraud in voting) must be under oath or affirmation. All complaints 
should set forth the pertinent facts upon which

[[Page 296]]

the complaint is based, including but not limited to specification of 
(a) names and titles of officials or other persons involved in acts 
forming the basis for the complaint; (b) accurate designations of place 
locations involved; (c) dates of events described in the complaint.

[34 FR 7577, May 10, 1969, as amended at 44 FR 75152, Dec. 19, 1979]



Sec. 704.3  Other requests and communications.

    Requests for information should be addressed to Press and 
Communications Division and requests for Commission literature should be 
directed to Publications Management Division, U.S. Commission on Civil 
Rights, Washington, DC 20425. Communications with respect to Commission 
proceedings should be made pursuant to Sec. 702.17 of this chapter. All 
other communications should be directed to Office of Staff Director, 
U.S. Commission on Civil Rights, Washington, DC 20425.

[44 FR 75152, Dec. 19, 1979]



Sec. 704.4   Restrictions on disclosure of information.

    (a) By the provisions of section 102(g) of the Act, no evidence or 
testimony or summary of evidence or testimony taken in executive session 
may be released or used in public sessions without the consent of the 
Commission, and any person who releases or uses in public without the 
consent of the Commission such evidence or testimony taken in executive 
session shall be fined not more than $1,000 or imprisoned for not more 
than 1 year.
    (b) Unless a matter of public record, all information or documents 
obtained or prepared by any Member, officer, or employee of the 
Commission, including members of State Advisory Committees, in the 
course of his official duties, or by virtue of his official status, 
shall not be disclosed or used by such person for any purpose except in 
the performance of his official duties.
    (c) Any Member, officer, or employee of the Commission including 
members of State Advisory Committees, who is served with a subpena, 
order, or other demand requiring the disclosure of such information or 
the production of such documents shall appear in response to such 
subpena, order, or other demand and, unless otherwise directed by the 
Commission, shall respectfully decline to disclose the information or 
produce the documents called for, basing his refusal upon this section. 
Any such person who is served with such a subpena, order, or other 
demand shall promptly advise the Commission of the service of such 
subpena, order, or other demand, the nature of the information or 
documents sought, and any circumstances which may bear upon the 
desirability of making available such information or documents.

[32 FR 9684, July 4, 1967]



PART 705--MATERIALS AVAILABLE PURSUANT TO 5 U.S.C. 552a--Table of Contents




Sec.
705.1  Purpose and scope.
705.2  Definitions.
705.3  Procedures for requests pertaining to individual records in a 
          system of records.
705.4  Times, places, and requirements for identification of individuals 
          making requests and identification of records requested.
705.5  Disclosure of requested information to individuals.
705.6  Request for correction or amendment to record.
705.7  Agency review of request for correction or amendment of the 
          record.
705.8  Appeal of an initial adverse agency determination.
705.9  Disclosure of records to a person other than the individual to 
          whom the record pertains.
705.10  Fees.
705.11  Penalties.
705.12  Special procedures: Information furnished by other agencies.
705.13  Exemptions.
705.95  Accounting of the disclosures of records.

    Authority: Secs. 101-106, 71 Stat. 634-636 as amended (42 U.S.C. 
1975-1975c); 5 U.S.C. 552a.

    Source: 40 FR 45727, Oct. 2, 1975, unless otherwise noted. 
Redesignated at 44 FR 75152, Dec. 19, 1979.



Sec. 705.1   Purpose and scope.

    (a) The purpose of this part is to set forth rules to inform the 
public regarding information maintained by the Commission on Civil 
Rights about identifiable individuals and to inform those individuals 
how they may gain

[[Page 297]]

access to and correct or amend information about themselves.
    (b) The rules in this part carry out the requirements of the Privacy 
Act of 1974 (Pub. L. 93-579) and in particular 5 U.S.C. 552a as added by 
that Act.
    (c) The rules in this part apply only to records disclosed or 
requested under the Privacy Act of 1974, and not to requests for 
information made pursuant to the Freedom of Information Act, 5 U.S.C. 
552.



Sec. 705.2   Definitions.

    For the purpose of this regulation:
    (a) The terms Commission and agency mean the U.S. Commission on 
Civil Rights;
    (b) The term individual means a citizen of the United States or an 
alien lawfully admitted for permanent residence;
    (c) The term maintain includes maintain, collect, use, or 
disseminate;
    (d) The term record means any item, collection, or grouping of 
information about an individual that is maintained by the Commission, 
including, but not limited to, his or her education, financial 
transactions, medical history, and criminal or employment history and 
that contains his or her name, or the identifying number, symbol, or 
other identifying particular assigned to the individual;
    (e) The term system record means a group of any records under the 
control of the Commission from which information may be retrieved by the 
name of the individual or by some identifying number, symbol, or other 
identifying particular assigned to that individual;
    (f) The term statistical record means a record in a system of 
records maintained for statistical research or reporting purposes only 
and not used in whole or in part in making any determination about an 
identifiable individual, except as provided in section 8 of title 13; 
and
    (g) The term routine use means, with respect to the disclosure of a 
record, the use of such record for a purpose which is compatible with 
the purpose for which it was collected.
    (h) For purposes of these Rules, a confidential source means a 
source who furnished information to the Government under an express 
promise that the identity of the source would remain confidential, or, 
prior to September 27, 1975, under an implied promise that the identity 
of the source would be held in confidence.



Sec. 705.3   Procedures for requests pertaining to individual records in a system of records.

    (a) An individual seeking notification of whether a system of 
records contains a record pertaining to him or her or an individual 
seeking access to information or records pertaining to him or her which 
is available under the Privacy Act of 1974, shall present his or her 
request in person or in writing to the Solicitor of the Commission.
    (b) In addition to meeting the requirements set forth in 
Sec. 705.4(c) or (d), any person who requests information under these 
regulations shall provide a reasonably specific description of the 
information sought so that it may be located without undue search or 
inquiry. If possible, that description should include the nature of the 
records sought, the approximate dates covered by the record, and, if 
known by the requester, the system in which the record is thought to be 
included. Requested information that is not identified by a reasonably 
specific description is not an identifiable record, and the request for 
that information cannot be treated as a formal request.
    (c) If the description is insufficient, the agency will notify the 
requester and, to the extent possible, indicate the additional 
information required. Every reasonable effort shall be made to assist a 
requester in the identification and location of the record or records 
sought.

[40 FR 45727, Oct. 2, 1975, as amended by 42 FR 12046, Mar 2, 1977. 
Redesignated at 44 FR 75152, Dec. 19, 1979]



Sec. 705.4   Times, places, and requirements for identification of individuals making requests and identification of records requested.

    (a) The Solicitor is the designated Privacy Act Officer for the 
Commission.
    (b) An individual making a request to the Solicitor in person may do 
so at the Commission's headquarters office,

[[Page 298]]

1121 Vermont Avenue, NW., Washington, DC 20425, on any business day 
during business hours. Persons may also appear for purposes of 
identification only, at any of the regional offices of the Commission on 
any business day during business hours. Regional offices are located as 
follows:

Region I: U.S. Commission on Civil Rights, 55 Summer Street, 8th Floor, 
Boston, Massachusetts 02110, (617) 223-4671 (8:45 a.m.-5:30 p.m.)

Region II: U.S. Commission on Civil Rights, 26 Federal Plaza, Room 1639, 
New York, NY 10007, (212) 264-0543 (9:00 a.m.-5:30 p.m.)

Region III: U.S. Commission on Civil Rights, 2120 L Street, N.W., Room 
510, Washington, DC 20037, (202) 254-6670 (8:45 a.m.-5:30 p.m.)

Region IV: U.S. Commission on Civil Rights, Citizens Trust Bank 
Building, 75 Piedmont Avenue, NE., Atlanta, Georgia 30303, (404) 221-
4344 (9:00 a.m.-5:30 p.m.)

Region V: U.S. Commission on Civil Rights, 230 South Dearborn Street, 
32nd Floor, Chicago, Illinois 60604, (312) 353-7371 (8:45 a.m.-5:30 
p.m.)

Region VI: U.S. Commission on Civil Rights, Heritage Plaza, 418 South 
Main, First Floor, San Antonio, Texas 78204, (512) 225-4810 (8:45 a.m.-
5:30 p.m.)

Region VII: U.S. Commission on Civil Rights, 911 Walnut Street, Kansas 
City, Missouri 64106, (816) 374-5253 (8:00 a.m.-5:30 p.m.)

Region IX: U.S. Commission on Civil Rights, 312 North Spring Street, 
Room 1015, Los Angeles, California 90012, (213) 688-5705 (8:45 a.m.-5:00 
p.m.)

Region X: U.S. Commission on Civil Rights, Federal Building, 915 Second 
Avenue, Room 2852, Seattle, Washington 98174, (206) 442-1246 (8:00 a.m.-
5:00 p.m.)

    (c) An individual seeking access to records in person may establish 
his or her identity by the presentation of one document bearing a 
photograph (such as a driver's license, passport, or identification card 
or badge) or by the presentation of two items of identification which do 
not bear a photograph, but do bear both a name and address (such as a 
credit card). When identification is made without photographic 
identification the Commission will request a signature comparison to the 
signature appearing on the items offered for identification, whenever 
possible and practical.
    (d) An individual seeking access to records by mail shall establish 
his or her identity by a signature, address, date of birth, and one 
other identification, such as a copy of a driver's license, passport, 
identification card or badge, credit card or other document. The words 
``Privacy Act Request'' should be placed in capital letters on the face 
of the envelope in order to facilitate requests by mail.
    (e) An individual seeking access in person or by mail who cannot 
provide the required documentation of identification may provide a 
notarized statement, swearing or affirming to his or her identity and to 
the fact that he or she understands that there are criminal penalties 
for the making of false statements.
    (f) The parent or guardian of a minor or a person judicially 
determined to be incompetent, in addition to establishing the identity 
of the minor or incompetent person he or she represents as required by 
paragraphs (a) through (c) of this section, shall establish his or her 
own parentage or guardianship by furnishing a copy of a birth 
certificate showing parentage or court order establishing guardianship.
    (g) An individual seeking to review information about himself or 
herself may be accompanied by another person of his or her own choosing. 
In all such cases, the individual seeking access shall be required to 
furnish a written statement authorizing the discussion of his or her 
record in the presence of the accompanying person.

[40 FR 45727, Oct. 2, 1975, as amended at 42 FR 12046, Mar 2, 1977. 
Redesignated and amended at 44 FR 75152, Dec. 19, 1979]



Sec. 705.5   Disclosure of requested information to individuals.

    The Solicitor, or one or more assistants designated by him or her, 
upon receiving a request for notification of the existence of a record, 
or for access to a record shall (a) determine whether such record 
exists; (b) determine whether access is available under the Privacy Act; 
(c) notify the requesting person of those determinations within 10 (ten) 
working days (excluding Saturdays, Sundays, and legal public holidays); 
and (d) provide access to information pertaining to that person which 
has been determined to be available.

[[Page 299]]



Sec. 705.6   Request for correction or amendment to record.

    (a) Any individual who has reviewed a record pertaining to him or 
her that was furnished to him or her under this part may request the 
agency to correct or amend all or part of that record.
    (b) Each individual requesting a correction or amendment shall send 
the request to the Solicitor.
    (c) Each request for a correction or amendment of a record shall 
contain the following information:
    (1) The name of the individual requesting the correction or 
amendment.
    (2) The name of the system of records in which the record sought to 
be amended is maintained.
    (3) The location of the record system from which the record was 
obtained.
    (4) A copy of the record sought to be amended or a description of 
that record.
    (5) A statement of the material in the record that should be 
corrected or amended.
    (6) A statement of the specific wording of the correction or 
amendment sought.
    (7) A statement of the basis for the requested correction or 
amendment including any material that the individual can furnish to 
substantiate the reasons for the amendment sought.



Sec. 705.7   Agency review of request for correction or amendment of the record.

    Within ten (10) working days (excluding Saturdays, Sundays and legal 
public holidays) of the receipt of the request for the correction or 
amendment of a record, the Solicitor shall acknowledge receipt of the 
request and inform the individual that his or her request has been 
received and inform the individual whether further information is 
required before the correction or amendment can be considered. Further, 
the Solicitor shall promptly, and, under normal circumstances, not later 
than thirty (30) working days after receipt of the request, make the 
requested correction or amendment or notify the individual of his or her 
refusal to do so, including in the notification the reasons for the 
refusal, and the procedures established by the Commission by which the 
individual may initiate a review of that refusal. In the event of 
correction or amendment, an individual shall be provided with one copy 
of each record or portion thereof corrected or amended pursuant to his 
or her request without charge as evidence of the correction or 
amendment. The Commission shall also provide to all prior recipients of 
such a record, the corrected or amended information to the extent that 
it is relevant to the information previously furnished to a recipient 
pursuant to the Privacy Act.

[40 FR 45727, Oct. 2, 1975, as amended at 42 FR 12046, Mar. 2, 1977. 
Redesignated at 44 FR 75152, Dec. 19, 1979]



Sec. 705.8   Appeal of an initial adverse agency determination.

    (a) Any individual whose request for access or for a correction or 
amendment which has been denied, in whole or in part, by the Solicitor 
may appeal that decision to the Staff Director of the Commission, 1121 
Vermont Avenue, NW., Room 800, Washington, DC 20425, or to a designee of 
the Staff Director.
    (b) The appeal shall be in writing and shall:
    (1) Name the individual making the appeal;
    (2) Identify the record sought to be amended or corrected;
    (3) Name the record system in which that record is contained;
    (4) Contain a short statement describing the amendment or correction 
sought; and
    (5) State the name of the person who initially denied the correction 
or amendment.
    (c) Not later than thirty (30) working days (excluding Saturdays, 
Sundays, and legal public holidays) after the date on which the agency 
received the appeal, the Staff Director shall complete his or her review 
of the appeal and make a final decision thereon, unless, for good cause 
shown, the Staff Director extends the appeal period beyond the initial 
thirty (30) day appeal period. In the event of such an extension the 
Staff Director shall promptly notify the individual making the appeal 
that the period for a final decision has been extended.
    (d) After review of an appeal request, the Staff Director will send 
a written

[[Page 300]]

notice to the requester containing the following information:
    (1) The decision, and if the denial is upheld, the reasons for the 
decision;
    (2) The right of the requester to institute a civil action in a 
Federal District Court for judicial review of the decision, if the 
appeal is denied; and
    (3) The right of the requester to file with the Commission a concise 
statement setting forth the reasons for his or her disagreement with the 
Commission's decision denying the request. The Commission shall make 
this statement available to any person to whom the record is later 
disclosed, together with a brief statement, if the Commission considers 
it appropriate, of the agency's reasons for denying the requested 
correction or amendment. These statements shall also be provided to all 
prior recipients of the record to the extent that it is relevant to the 
information previously furnished to a recipient pursuant to the Privacy 
Act.

[40 FR 45727, Oct. 2, 1975, as amended at 42 FR 12047, Mar. 2, 1977. 
Redesignated at 44 FR 75152, Dec. 19, 1979]



Sec. 705.9   Disclosure of records to a person other than the individual to whom the record pertains.

    (a) Any individual who desires to have his or her record disclosed 
to or mailed to a third person may authorize that person to act as his 
or her agent for that specific purpose. The authorization shall be in 
writing, signed by the individual, and notarized. The agent shall also 
submit proof of his or her own identity as provided in Sec. 705.4.
    (b) The parent of any minor individual or the legal guardian of any 
individual who has been declared by a court to be incompetent, due to 
physical or mental incapacity, may act on behalf of that individual in 
any matter covered by this part. A parent or guardian who desires to act 
on behalf of such an individual shall present suitable evidence of 
parentage or guardianship, by birth certificate, copy of a court order 
or similar documents, and proof of the individual's identity as provided 
in Sec. 705.4.
    (c) An individual to whom a record is to be disclosed, in person, 
pursuant to this part may have a person of his or her own choosing 
accompany the individual when the record is disclosed.



Sec. 705.10   Fees.

    If an individual requests copies of his or her records the charge 
shall be three (3) cents per page, Provided, however, That the 
Commission shall not charge for copies furnished to an individual as a 
necessary part of the process of disclosing the record to an individual. 
Fees may be waived or reduced in accordance with Sec. 704.1(e) of the 
Commission's regulations (45 CFR part 704) because of indigency, where 
the cost is nominal, when it is in the public interest not to charge, or 
when waiver would not constitute an unreasonable expense to the 
Commission.



Sec. 705.11   Penalties.

    Any person who makes a false statement in connection with any 
request for a record, or in any request for an amendment to a record 
under this part, is subject to the penalties prescribed in 18 U.S.C. 494 
and 495.



Sec. 705.12   Special procedures: Information furnished by other agencies.

    When records or information sought from the Commission include 
information furnished by other Federal agencies, the Solicitor shall 
consult with the appropriate agency prior to making a decision to 
disclose or to refuse to disclose the record, but the decision whether 
or not to disclose the record shall be made by the Solicitor.



Sec. 705.13   Exemptions.

    (a) Under the provision of 5 U.S.C. 552a(k), it has been determined 
by the agency that the following exemptions are necessary and proper and 
may be asserted by the agency:
    (1) Exemption (k)(2) of the Act. Investigatory material compiled for 
law enforcement purposes, other than material within the scope of 
subsection (j)(2) of the Privacy Act: Provided, however, That if any 
individual is denied any right, privilege, or benefit that he or she 
would otherwise be eligible for, as a result of the maintenance of such 
material, such material shall be provided to such individual, except to 
the extent that the disclosure of such material would reveal the 
identify of a

[[Page 301]]

source who furnished information to the Government under an express 
promise that the identity of the source would be held in confidence, or, 
prior to the effective date of this section, under an implied promise 
that the identity of the source would be held in confidence.
    (2) Exemption (k)(4) of the Act. Statistical personnel records that 
are used only to generate aggregate data or for other evaluative or 
analytical purposes and which are not used to make decisions on the 
rights, benefits, or entitlements of individuals.
    (3) Exemption (k)(5) of the Act. Investigatory material maintained 
solely for the purposes of determining an individual's qualifications, 
eligibility, or suitability for employment in the Federal civilian 
service, Federal contracts, or access to classified information, but 
only to the extent that disclosure of such material would reveal the 
identity of the source who furnished information to the Government under 
an express promise that the identity of the source would be held in 
confidence, or prior to September 27, 1975, under an implied promise 
that the identity of the source would be held in confidence.
    (4) Testing or examination material used solely to determine 
individual qualifications for promotion or appointment in the Federal 
service the disclosure of which would compromise the objectivity or 
fairness of the testing or examination process.
    (b) Following are Commission systems of records which are partially 
exempt under 5 U.S.C. 552a(k)(2), (4), (5), and (6) and the reasons for 
such exemptions:
    (1) Appeals, Grievances and Complaints (staff)--Commission Project, 
CRC-001. Exempt partially under 5 U.S.C. 552a(k)(2)--The reasons for 
possibly asserting the exemptions are to prevent subjects of 
investigation from frustrating the investigatory process, to prevent 
disclosure of investigative techniques, to maintain the ability to 
obtain necessary information, to fulfill commitments made to sources to 
protect their identities and the confidentiality of information and to 
avoid endangering these sources.
    (2) Complaints, CRC-003--Exempt partially under 5 U.S.C. 552a(k)(2). 
The reasons for possibly asserting the exemptions are to prevent 
subjects of investigation from frustrating the investigatory process, to 
prevent disclosure of investigative techniques, to maintain the ability 
to obtain necessary information, to fulfill commitments made to sources 
to protect their identities and the confidentiality of information and 
to avoid endangering these sources.
    (3) Commission projects, CRC-004--Partially exempt under 5 U.S.C. 
552a(k)(a). The reasons for asserting the exemptions are to prevent 
subjects of investigation from frustrating the investigatory process, to 
prevent disclosure of investigative techniques, to maintain the ability 
to obtain necessary information, to fulfill commitments made to sources 
to protect their identities and the confidentiality of information and 
to avoid endangering these sources.
    (4) Other Employee Programs: EEO, Troubled Employee, and Upward 
Mobility, CRC-006--Partially exempt under 5 U.S.C. 552a(k)(4), (5), and 
(6). The reasons for asserting the exemptions are to maintain the 
ability to obtain candid and necessary information, to fulfill 
commitments made to sources to protect the confidentiality of 
information, to avoid endangering these sources and, primarily, to 
facilitate proper selection or continuance of the best applicants or 
persons for a given position.
    (5) State Advisory Committees Projects, CRC-009--Partially exempt 
under 5 U.S.C. 552a(k)(2). The reasons for possibly asserting the 
exemptions are to prevent subjects of investigation from frustrating the 
investigatory process, to prevent disclosure of investigative 
techniques, to maintain the ability to obtain necessary information, to 
fulfill commitments made to sources to protect their identities and the 
confidentiality of information and to avoid endangering these sources.



Sec. 705.95   Accounting of the disclosures of records.

    (a) All disclosures of records covered by this part 705, except for 
the exemptions listed in Sec. 705.95(b), shall be accounted for by 
keeping a written

[[Page 302]]

record of the particular record disclosed, the name and address of the 
person or agency to whom or to which disclosed, and the date, nature and 
purpose of the disclosure.
    (b) No accounting is required for disclosures of records to those 
officials and employees of the Commission who have a need for the record 
in the performance of their duties, or if disclosure would be required 
under the Freedom of Information Act. 5 U.S.C. 552.
    (c) The accounting shall be maintained for 5 years or until the 
record is destroyed or transferred to the National Archives and Record 
Service for storage, in which event, the accounting pertaining to those 
records, unless maintained separately, shall be transferred with the 
records themselves.
    (d) The accounting of disclosures may be recorded in any system the 
Commission determines is sufficient for this purpose, however, the 
Commission must be able to construct from its system a listing of all 
disclosures. The system of accounting of disclosures is not a system of 
records under the definition in Sec. 705.2(e) and no accounting need be 
maintained for disclosure of the accounting of disclosures.
    (e) Upon request of an individual to whom a record pertains, the 
accounting of the disclosures of that record shall be made available to 
the requester, provided that he/she has complied with Sec. 705.3(a) and 
with Sec. 705.4(c) or (d).

[42 FR 12047, Mar. 2, 1977]



PART 706--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents




                      Subpart A--General Provisions

Sec.
706.1  Adoption of regulations.
706.2  Purpose.
706.3  Definitions.
706.4  Distribution.
706.5  Counseling.
706.6  Disciplinary and other remedial action.
706.7  Outside employment and other activity.
706.8  Prohibition against disclosure of evidence.

 Subpart B--Ethical and Other Conduct and Responsibilities of Employees

706.9  Proscribed actions.
706.10  Gifts, entertainment and favors.
706.11  Proscribed outside employment and other activities.
706.12  Financial interests.
706.13  Use of Government property.
706.14  Misuse of information.
706.15  Indebtedness.
706.16  Gambling, betting and lotteries.
706.17  General conduct prejudicial to the Government.
706.18  Miscellaneous statutory provisions.

               Subpart C--Financial Reporting Requirements

706.19  Statements of financial and property interests and outside 
          employment.
706.20  Time and place for filing of reports.
706.21  Exclusion of certain positions from reporting requirements.
706.22  Information required to be reported--reporting forms.
706.23  Review of reports.
706.24  Public access to financial disclosure reports.

    Authority: Secs. 101-106, 71 Stat. 634-636, as amended (42 U.S.C. 
1975-1975e) Pub. L. 95-521, as amended, 5 CFR 735.

    Source: 44 FR 75152, Dec. 19, 1979, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 706.1  Adoption of regulations.

    Pursuant to 5 CFR 735.104(f) and 735.502, the U.S. Commission on 
Civil Rights (hereinafter referred to as the Commission) hereby adopts, 
with appropriate modifications, relevant sections of Part 735 of Title 5 
of the Code of Federal Regulations as renumbered and set forth below.



Sec. 706.2  Purpose.

    The maintenance of unusually high standards of honesty, integrity, 
impartiality, and conduct by Government employees and special Government 
employees is essential to assure the proper performance of the 
Government's business and the maintenance of confidence by citizens in 
their Government. The avoidance of misconduct and conflicts of interest 
on the part of Government employees and special Government employees 
through informed judgment is indispensable to the maintenance of these 
standards. To accord

[[Page 303]]

with these concepts, this part sets forth the United States Commission 
on Civil Rights' regulations covering the agency's employees and special 
Government employees, prescribing standards of conduct and 
responsibilities, and governing statements reporting employment and 
financial interests.



Sec. 706.3  Definitions.

    In this part:
    Commission means the United States Commission on Civil Rights, an 
Executive agency as defined by Section 105 of Title 5, United States 
Code.
    Employee means an officer or employee of the Commission including a 
special Government employee, as defined in 18 U.S.C. 202.
    Executive order means Executive Order 11222 of May 8, 1965.
    Person means an individual, a corporation, a company, an 
association, a firm, a partnership, a society, a joint stock company, or 
any other organization or institution.



Sec. 706.4  Distribution.

    (a) Within 90 days after publication of these regulations in the 
Federal Register the Commission shall furnish each employee with a copy 
of the regulations.
    (b) The Commission shall furnish all new employees with a copy of 
the regulations at the time of their entrance on duty.
    (c) The Commission shall bring the regulations to the attention of 
each employee annually, and at such other times as circumstances 
warrant.
    (d) The Commission shall have available for review by employees 
copies of relevant laws, the Executive order, and pertinent Commission 
instructions relating to ethical and other standards of conduct.



Sec. 706.5  Counseling.

    The Solicitor of the Commission shall serve as the agency's ethical 
conduct counselor and is the designated agency official for the purposes 
of the Ethics in Government Act of 1978, Pub. L. 95-521. The Solicitor 
shall respond to requests by employees and special Government employees 
for advice and guidance respecting questions of ethical conduct, 
conflicts of interest, reporting of financial interests and other 
matters of law covered by these regulations.



Sec. 706.6  Disciplinary and other remedial action.

    An employee of the Commission who violates any of the regulations in 
this part may be disciplined. The disciplinary action may be in addition 
to any penalty prescribed by law for the violation. In addition to or in 
lieu of disciplinary action, remedial action to end conflicts or 
appearance of conflicts of interests may include but is not limited to:
    (a) Changes in assigned duties;
    (b) Divestment by an employee of any conflicting interest; or
    (c) Disqualification for a particular assignment.



Sec. 706.7  Outside employment and other activity.

    Employees of the Commission may engage in outside employment or 
other outside activity not incompatible with the full and proper 
discharge of the duties and responsibilities of their Government 
employment. Employees who wish to engage in outside employment shall 
first obtain the approval, in writing, of their supervisor.



Sec. 706.8  Prohibition against disclosure of evidence.

    All employees of the Commission are subject to the prohibition on 
disclosure of evidence taken in executive session contained in Section 
102(g) of the Civil Rights Act of 1957, 71 Stat. 634, as amended.



 Subpart B--Ethical and Other Conduct and Responsibilities of Employees



Sec. 706.9  Proscribed actions.

    An employee shall avoid any action, whether or not specifically 
prohibited by this subpart, which might result in, or create the 
appearance of:
    (a) Using public office for private gain;
    (b) Giving preferential treatment to any person;
    (c) Impeding Commission efficiency or economy;

[[Page 304]]

    (d) Making a Commission decision outside official channels;
    (e) Losing complete independence or impartiality; or
    (f) Affecting adversely the confidence of the public in the 
integrity of the Commission.



Sec. 706.10  Gifts, entertainment and favors.

    (a) Except as provided in paragraphs (b) and (e) of this section, an 
employee shall not solicit or accept, directly or indirectly, any gift, 
gratuity, favor, entertainment, loan, or any other thing of monetary 
value from a person who:
    (1) Has, or is seeking to obtain, contractural or other business or 
financial relations with the Commission;
    (2) Conducts operations or activities that are regulated by the 
Commission; or
    (3) Has interests that may be substantially affected by the 
performance or nonperformance of the employee's official duty.
    (b) Exceptions from the prohibitions contained in paragraph (a) of 
this section are as follows:
    (1) Gifts, entertainment and favors which derive from family or 
personal relationships (such as those between parents, children, or 
spouse of the employee and the employee) when the circumstances make it 
clear that it is those relationships rather than the business of the 
persons concerned which are the motivating factors;
    (2) Acceptance of food and refreshments of nominal value on 
infrequent occasions in the ordinary course of a luncheon or dinner 
meeting or other meeting or on an inspection tour where an employee may 
properly be in attendance;
    (3) Aceptance of loans from banks or other financial institutions on 
customary terms to finance proper and usual activities of employees, 
such as home mortgage loans; and
    (4) Acceptance of unsolicited advertising or promotional material, 
such as pens, pencils, note pads, calendars, and other items of nominal 
intrinsic value.
    (c) Employees shall not solicit a contribution from another employee 
for a gift to an official superior, make a donation as a gift to an 
official superior, or accept a gift from an employee receiving less pay 
than themselves. This paragraph, however, does not prohibit a voluntary 
gift of nominal value or donation in a nominal amount made on a special 
occasion such as marriage, illness, or retirement.
    (d) An employee shall not accept a gift, present, decoration, or 
other thing from a foreign government unless authorized by Congress as 
provided by the Constitution and 5 U.S.C. 7342.
    (e) Neither this section nor Sec. 706.11 precludes an employee from 
receipt of bona fide reimbursement, unless prohibited by law, for 
expenses of travel and such other necessary subsistence as is compatible 
with this part, for which no Government payment or reimbursement is 
made. This paragraph, however, does not allow employees to be 
reimbursed, or payment to be made on their behalf, for excessive 
personal living expenses, gifts, entertainment or other personal 
benefits.



Sec. 706.11  Proscribed outside employment and other activities.

    (a) An employee shall not engage in outside employment or other 
outside activity not compatible with the full and proper discharge of 
the duties and responsibilities of Government employment. Incompatible 
activities include but are not limited to:
    (1) Acceptance of a fee, compensation, gift, payment of expense, or 
any other thing of monetary value in circumstances in which acceptance 
may result in, or create the appearance of conflicts of interest; or
    (2) Outside employment which tends to impair mental or physical 
capacity to perform Governmental duties and responsibilities in an 
acceptable manner.
    (b) An employee shall not receive any salary or anything of monetary 
value from a private source as compensation for service to the 
Government as prohibited by 18 U.S.C. 209.
    (c) Employees are encouraged to engage in teaching, lecturing, and 
writing that is not prohibited by law, the Executive order, or 
Commission regulations. An employee shall not, either for or without 
compensation, engage in teaching, lecturing, or writing, including 
teaching, lecturing, or writing for the purpose of the special 
preparation

[[Page 305]]

of a person or class of persons for an examination of the Office of 
Personnel Management or Board of Examiners for the Foreign Service, that 
depends on information obtained as a result of Government employment, 
except when that information has been made available to the general 
public or will be made available on request, or when the agency head 
gives written authorization for use of nonpublic information on the 
basis that the use is in the public interest. In addition, an employee 
who is a Presidential appointee covered by section 401(a) of the order 
shall not receive compensation or anything of monetary value for any 
consultation, lecture, discussion, writing, or appearance the subject 
matter of which is devoted substantially to the responsibilities, 
programs, or operations of the Commission or which draws substantially 
on official data or ideas which have not become part of the body of 
public information.
    (d) This section does not preclude an employee from:
    (1) Participation in the activities of national or State political 
parties not proscribed by law;
    (2) Participation in the affairs of or acceptance of an award for a 
meritorious public contribution or achievement given by a charitable, 
religious, professional, social, fraternal, nonprofit educational and 
recreational public service, or civic organization; or
    (3) Outside employment permitted under these regulations.



Sec. 706.12  Financial interests.

    (a) Employees shall not:
    (1) Have a direct or indirect financial interest that conflicts 
substantially, or appears to conflict substantially, with their 
Government duties and responsibilities; or
    (2) Engage in, directly or indirectly, a financial transaction as a 
result of, or primarily relying on, information obtained through their 
Government employment.
    (b) This section does not preclude an employee from having a 
financial interest or engaging in financial transactions to the same 
extent as a private citizen not employed by the Government, so long as 
it is not prohibited by law, the Executive order, or Commission 
regulations.



Sec. 706.13  Use of Government property.

    Employees shall not directly or indirectly use, or allow the use of, 
Government property of any kind, including property leased to the 
Government, for other than officially approved activities. Employees 
have a positive duty to protect and conserve Government property, 
including equipment, supplies, and other property entrusted or issued 
them.



Sec. 706.14  Misuse of information.

    For the purpose of furthering a private interest, employees shall 
not directly or indirectly use, or allow the use of, official 
information obtained through or in connection with their Government 
employment, which has not been made available to the general public.



Sec. 706.15  Indebtedness.

    An employee shall pay each just financial obligation in a proper and 
timely manner, especially one imposed by law such as Federal, State, or 
local taxes. For the purpose of this section, a ``just financial 
obligation'' means one acknowledged by the employee or reduced to 
judgment by a court, and ``in a proper and timely manner'' means in a 
manner which the agency determines does not, under the circumstances, 
reflect adversely on the Government as the employer. In the event of 
dispute between an employee and an alleged creditor, this section does 
not require the Commission to determine the validity or amount of the 
disputed debt.



Sec. 706.16  Gambling, betting and lotteries.

    Employees shall not participate while on Government-owned or leased 
property or while on duty for the Government, in any gambling activity 
including the operation of a gambling device, in conducting a lottery or 
pool, in a game for money or property, or in selling or purchasing a 
numbers slip or ticket.

[[Page 306]]



Sec. 706.17  General conduct prejudicial to the Government.

    Employees shall not engage in criminal, infamous, dishonest, 
immoral, or notoriously disgraceful conduct, or other conduct 
prejudicial to the Government.



Sec. 706.18  Miscellaneous statutory provisions.

    Employees shall acquaint themselves with each statute that relates 
to their ethical and other conduct as an employee of the Commission and 
of the Government. The attention of Commission employees is directed to 
the following statutory provisions:
    (a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 
Stat. B12, the ``Code of Ethics for Government Service'';
    (b) Chapter II of Title 18, United States Code, relating to bribery, 
graft, and conflicts of interest, as appropriate to the employees 
concerned;
    (c) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913);
    (d) The prohibitions against disloyalty and striking (5 U.S.C. 
73811; 18 U.S.C. 1918);
    (e) The prohibition against the employment of a member of a 
Communist organization (50 U.S.C. 784);
    (f) The prohibitions against the disclosure of classified 
information (18 U.S.C. 798; 50 U.S.C. 1905);
    (g) The provision relating to the habitual use of intoxicants to 
excess (5 U.S.C. 7352);
    (h) The prohibition against the misuse of a Government vehicle (31 
U.S.C. 638a(c));
    (i) The prohibition against the misuse of the franking privilege (18 
U.S.C. 1719);
    (j) The prohibition against the use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917);
    (k) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001);
    (l) The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071);
    (m) The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508);
    (n) The prohibitions against (1) embezzlement of Government money or 
property (18 U.S.C. 641); (2) failing to account for public money (18 
U.S.C. 643); and (3) embezzlement of the money or property of another 
person in the possession of the employee by reason of his/her employment 
(18 U.S.C. 654);
    (o) The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285);
    (p) The prohibitions against political activities in subchapter III 
of chapter 73 of Title 5, United States Code and 18 U.S.C. 602, 603, 
607, and 608;
    (q) The prohibition against an employee acting as the agent of a 
foreign principal registered under the Foreign Agent Registration Act 
(18 U.S.C. 219).



               Subpart C--Financial Reporting Requirements



Sec. 706.19  Statements of financial and property interests and outside employment.

    Pursuant to the Ethics in Government Act of 1978 (Pub. L. 95-521, 
referred to hereinafter in this subpart as ``the Act''), the following 
officers and employees of the Commission are required to file annual 
reports of financial and property interests and outside employment if 
they have served 61 days or more in their positions during the preceding 
calendar year:
    (a) Officers and employees (including special government employees, 
as defined in 18 U.S.C. 202) whose positions are classified at GS-16 or 
above of the General Schedule, or whose basic rate of pay (excluding 
``step'' increases) under other pay schedules is equal to or greater 
than the rate for GS-16 (step 1);
    (b) Employees in the excepted service in positions which are of a 
confidential or policy-making character, unless their positions have 
been excluded by the Director of the Office of Government Ethics; and
    (c) Each designated agency ethics official.

[[Page 307]]



Sec. 706.20  Time and place for filing of reports.

    (a) Annual reports are to be filed no later than May 15 of each 
calendar year, except that persons assuming a position for which reports 
are required who have not immediately prior to this assumption occupied 
a covered position in another agency, must file a report within 30 days 
after assuming the position at the Commission. In the event an 
individual terminates employment with the Commission and does not accept 
another position for which reporting is required, the report must be 
filed no later than the 30th day after termination, covering:
    (1) The preceding calendar year if the annual May 15 report has not 
been filed; and
    (2) The portion of the present calendar year up to the date of 
termination.
    (b) Reports shall be filed with the designated ethics officer 
(Solicitor) of the Commission. The reports of the designated ethics 
officer and nominees to and holders of positions which require 
confirmation by the Senate shall be transmitted by the Solicitor to the 
Office of Government Ethics of the Office of Personnel Management.



Sec. 706.21  Exclusion of certain positions from reporting requirements.

    (a) Under section 201(f)(5) of the Act, a report is required of any 
person in the executive branch in a position excepted from the 
competitive service by reason of being of a confidential or policymaker 
character. An exemption is available, as provided below, for a person in 
any such position classified below GS-16 (or the rate of basic pay for 
which is less than the minimum rate of basic pay fixed for GS-16) who 
has no role in advising or making policy determinations with respect to 
agency programs or policies. Such persons may include chauffeurs, 
private secretaries, stenographers and those who hold positions of 
similar nature, consistent with the basic criterion set forth in the 
preceding sentence.
    (b) The exclusion of any position will be effective as of the time 
the Commission files with the Office of Government Ethics a list and 
description of each position for which exclusion is sought, and the 
identity of its current occupant. Such a list must be filed with the 
Office of Government Ethics on or before the date on which such reports 
are due under the Act.
    (c) In the event that the Office of Government Ethics finds that one 
or more positions have been improperly excluded, it will so advise the 
Commission and set a date for the filing of the report.



Sec. 706.22  Information required to be reported--reporting forms.

    Information required to be reported by the Act shall be set forth in 
the manner specified in, and in accordance with the instructions 
contained in, Standard Forms issued by the Office of Personnel 
Management, to be used as follows:
    (a) Standard Form 278--for use by an officer or employee filing (1) 
an annual report pursuant to section 201(d) of the Act, or (2) a 
departure report upon termination of employment, pursuant to section 
201(e) of the Act;
    (b) Standard Form 278A--for use by (1) an individual assuming a 
position for which reporting is required pursuant to section 201(a) of 
the Act; or (2) an individual whose nomination has been transmitted by 
the President to the Senate, pursuant to section 201(b) of the Act.



Sec. 706.23  Review of reports.

    (a) Financial reports are reviewed by the Commission's designated 
Ethics official or the Director of the Office of Government Ethics, as 
appropriate. Reports are to be reviewed within 60 days after the date of 
their filing or transmittal to the Office of Government Ethics.
    (b) After reviewing a report, the reviewing official is required to:
    (1) State upon the report that the reporting individual is in 
compliance with applicable laws and regulations and to sign the report;
    (2) Notify the reporting individual that additional information is 
required to be submitted and the time by which it must be submitted; or
    (3) Notify the reporting individual that the report indicates 
noncompliance and afford the individual a reasonable opportunity for a 
written or oral

[[Page 308]]

response after which the reviewing official reaches an opinion whether 
the individual is in compliance.
    (c) If the reviewing official determines that the reporting 
individual is not in compliance with applicable laws and regulations, 
the reviewing official will notify the individual of that opinion, and 
after an opportunity for personal consultation, notify the individual of 
the steps which should be taken to assure compliance and the date by 
which such steps should be taken.
    (d) The use of any steps to bring the individual in compliance are 
to be in accordance with regulations issued by the Director of the 
Office of Government Ethics.
    (e) To assist employees in avoiding situations in which they would 
not be in compliance with applicable laws and regulations, the 
designated Commission ethics official is to maintain a list of those 
circumstances or situations which have resulted or may result in 
noncompliance and the lists are to be periodically published and 
furnished to individuals required to file reports under this Act.



Sec. 706.24  Public access to financial disclosure reports.

    (a) Pursuant to section 205(b) of the Act, each report will be made 
available for public inspection within 15 days after the report is 
received by the agency, whether or not the review of the report 
prescribed by section 206 of the Act has been completed.
    (b) Pursuant to section 205(b) of the Act, as amended by Pub. L. 96-
19, the following rules are applicable to public access to financial 
reports:
    (1) A financial disclosure report may not be made available to any 
person nor may a copy thereof be provided to any person except upon 
written application by such person stating:
    (i) That person's name, occupation, and address;
    (ii) The name and address of any other person or organization on 
whose behalf the inspection or copy is requested; and
    (iii) That such person is aware that it is unlawful to obtain or use 
a report:
    (A) For any unlawful purpose;
    (B) For any commercial purpose, other than by news and 
communications media for dissemination to the general public;
    (C) For determining or establishing the credit rating of any 
individual; or
    (D) For use, directly or indirectly, in the solicitation of money 
for any political, charitable, or other purpose. Any application for a 
report shall be available to the public during the period in which the 
requested report is available to the public.
    (c) Requests for copies of financial disclosure reports of officers 
appointed by the President by and with the advice and consent of the 
Senate, as well as nominees to such offices and designated Commission 
ethics officials, may be directed to the Director of the Office of 
Government Ethics.
    (d) To gain access to or to obtain a copy of a report filed with the 
Commission, an individual should appear in person at the office of the 
Solicitor of the Commission, 1121 Vermont Avenue, NW., Washington, DC 
20425, during the hours 8:30 a.m. to 4:30 p.m., and complete an 
application form. Requests by mail should contain the information 
described in paragraph (b) of this section, together with the signature 
of the requester. Requests which do not contain the required information 
will be returned. Notice of the statutory prohibitions on use will be 
attached to copies of reports provided in response to a request 
otherwise properly filled out.



PART 707--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY U.S. COMMISSION ON CIVIL RIGHTS--Table of Contents




Sec.
707.1  Purpose.
707.2  Application.
707.3  Definitions.
707.4  Self-evaluation and remedial measures.
707.5  Notice.
707.6  General prohibitions against discrimination.
707.7  Employment.
707.8  Physical access.
707.9  Access to communications.
707.10  Auxiliary aids.

[[Page 309]]

707.11  Eliminating discriminatory qualifications and selection 
          criteria.
707.12  Compliance procedures.

    Authority: 29 U.S.C. 794.

    Source: 55 FR 5786, Feb. 16, 1990, unless otherwise noted.



Sec. 707.1  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 707.2  Application.

    This part applies to all programs and activities, including 
employment, conducted by the Agency.



Sec. 707.3  Definitions.

    For the purposes of this part, the term--
    (a) Agency means the U.S. Commission on Civil Rights and its State 
Advisory Committees.
    (b) Auxiliary aids  means services or devices that enable persons 
with impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the Agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    (c) Complete complaint  means a written statement that contains the 
complainant's name and address and describes the Agency's alleged 
discriminatory action in sufficient detail to inform the Agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    (d) Facility  means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, vehicles, or other real or 
personal property.
    (e) Individual with handicaps  means any person who has a physical 
or mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological, musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, drug addiction, and 
alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the Agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major

[[Page 310]]

life actitities only as a result of the attitudes of others toward such 
impairment; or
    (iii) Has none of the impairments defined in paragraph (e)(1) of 
this definition but is treated by the Agency as having such an 
impairment.
    (f) Qualified individual with handicaps means--
    (1) With respect to any Agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
Agency can demonstrate would result in a fundamental alteration in its 
nature; and
    (2) With respect to employment, an individual with handicaps who 
meets the definition set forth in 29 CFR 1613.702(f), which is made 
applicable to this part by Sec. 707.7 of this rule.
    (3) With respect to any other Agency program or activity, an 
individual with handicaps who meets the essential eligibility 
requirements for participation in, or receipt of benefits from, that 
program or activity.
    (g) Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (19 U.S.C. 794), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Act of 1978 (Pub. L. 95-602, 92 Stat. 2955); the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810); 
and the Civil Rights Restoration Act of 1987 (Pub. L. 100-259, 102 Stat. 
28). As used in this part, section 504 applies only to programs or 
activities conducted by the Agency. The Agency does not operate any 
programs of Federal financial assistance to other entities.



Sec. 707.4  Self-evaluation and remedial measures.

    (a) The Agency shall, within one year of the effective date of this 
part, evaluate its current policies and practices, and the effects 
thereof, that do not or may not meet the requirements of this part, and, 
to the extent modification of any such policies and practices is 
required, the Agency shall proceed to make the necessary modifications.
    (b) The Agency shall provide an opportunity to interested persons, 
including individuals with handicaps and organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The Agency shall, for at least three years following completion 
of the evaluation required under paragraph (a) of this section, maintain 
on file and make available for public inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec. 707.5  Notice.

    (a) The Agency shall make available to all employees, applicants, 
and other interested persons, as appropriate, information regarding the 
provisions of this part and its applicability to the programs or 
activities conducted by the Agency, and such information shall be made 
available to the extent the Staff Director finds necessary to apprise 
such persons of the protections against discrimination assured them by 
section 504 and this part.
    (b) The Agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The Agency shall take appropriate steps to provide individuals 
with handicaps with information regarding their section 504 rights under 
the Agency's programs or activities.



Sec. 707.6  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the Agency.
    (b)(1) The Agency, in providing any aid, benefit, or service, shall 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--

[[Page 311]]

    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others:
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards or committees; or
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The Agency shall not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The Agency shall not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity, with respect to individuals with handicaps.
    (4) The Agency shall not, in determining the site or location of a 
facility or activity make selections the purpose or effect of which 
would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the Agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The Agency, in the selection of procurement contractors, shall 
not use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this part.
    (d) The Agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Sec. 707.7  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the Agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1613, shall apply to employment in programs or activities 
conducted by the Agency.



Sec. 707.8  Physical access.

    (a) Discrimination prohibited. Except as otherwise provided in this 
section, no qualified individual with handicaps shall, because the 
Agency's facilities are inaccessible to or unusable by individuals with 
handicaps, be denied the benefits of, be excluded from participation in, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the Agency.
    (b) Existing facilities-program access--(1) Existing facilities 
defined. For the purpose of this section, ``existing facilities'' means 
those facilities owned, leased or used through some other arrangement by 
the Agency on March 28, 1990.

[[Page 312]]

    (2) General. The Agency shall operate each program or activity 
conducted in an existing facility so that the program or activity, when 
viewed in its entirety, is readily accessible to and usable by 
individuals with handicaps. This paragraphs does not--
    (i) Necessarily require the Agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps.
    (ii) Require the Agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where Agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the Agency has the burden of 
proving that compliance with this paragraph would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the Staff Director or his or her 
designee after considering all Agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the Agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (3) Methods. (i) The Agency may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to individuals 
with handicaps, delivery of services at alternative accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible vehicles, or any other methods that result in making 
its program or activities readily accessible to and usable by 
individuals with handicaps.
    (ii) The Agency is not required to make structural changes in 
existing facilities where other methods are effective in achieving 
compliance with paragraph (b)(2) of this section. The Agency, in making 
alterations to existing buildings to achieve program accessibility, 
shall meet accessibility requirements imposed by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151 through 4157), as 
established in 41 CFR 101-19.600 to 101-19.607.
    (iii) In choosing among available methods for meeting the 
requirements of this section, the Agency shall give priority to those 
methods that offer programs and activities to qualified individuals with 
handicaps in the most integrated setting appropriate to the needs of 
qualified individuals with handicaps.
    (4) Time period for compliance. The Agency shall comply with the 
obligations established under this section within sixty days of the 
effective date of this part, except that where structural changes in 
facilities are undertaken, such changes shall be made within three years 
of the effective date of this part, but in any event as expeditiously as 
possible.
    (5) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
Agency shall develop, within 6 months of the effective date of this 
part, a transition plan setting forth the steps necessary to complete 
such changes. The Agency shall provide an opportunity to interested 
persons, including individuals with handicaps and organizations 
representing individuals with handicaps, to participate in the 
development of the transition plan by submitting comments (both oral and 
written). A copy of the transition plan shall be made available for 
public inspection. The plan shall, at a minimum--
    (i) Identify physical obstacles in the Agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (ii) Describe in detail the methods that will be used to make the 
facilities accessible;
    (iii) Specify the schedule for taking the steps necessary to achieve 
compliance with this paragraph and, if the time period of the transition 
plan is longer than 1 year, identify steps that

[[Page 313]]

will be taken during each year of the transition period; and
    (iv) Indicate the official response for implementation of the plan.
    (6) The Agency shall provide signs at a primary entrance to each of 
its inaccessible facilities, directing users to a location at which they 
can obtain information about accessible facilities. The international 
symbol for accessibility shall be used at each primary entrance of an 
accessible facility.
    (c) New purchases, leases or other arrangements. (1) Any building or 
facility acquired after March 28, 1990, whether by purchase, lease 
(other than lease renewal), or any other arrangement, shall be readily 
accessible to and usable by individuals with handicaps.
    (2) Nothing in this paragraph requires the Agency to take any action 
that it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where Agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the Agency 
has the burden of proving that compliance with this paragraph would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the Staff Director 
or his or her designee after considering all Agency resources available 
for use in the funding and operation of the conducted program or 
activity, and must be accompanied by a written statement of the reasons 
for reaching that conclusion. If an action would result in such an 
alteration or such burdens, the Agency shall take any other action that 
would not result in such an alteration or such burdens but would 
nevertheless ensure that individuals with handicaps receive the benefits 
and services of the program or activity.
    (d) New construction and alterations. Each building or part of a 
building that is constructed or altered by, on behalf of, or for the use 
of the Agency shall be designed, constructed, or altered so as to be 
readily accessible to and usable by individuals with handicaps in 
accordance with the requirements imposed by the Architectural Barriers 
Act of 1968, as amended (42 U.S.C. 4151 through 4157), as established in 
41 CFR 101-19.600 to 101-19.607.



707.9  Access to communications.

    (a) Discrimination prohibited. Except as otherwise provided in this 
section, no qualified individual with handicaps shall, because the 
Agency's communications are inaccessible to or unusable by individuals 
with handicaps, be denied the benefits of, be excluded from 
participation in, or otherwise be subjected to discrimination under any 
program or activity conducted by the Agency.
    (b) The Agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (c) Specific requirements regarding oral communications--(1) 
Telecommunications devices for deaf persons. (i) The Agency headquarters 
and each regional office shall maintain and reliably answer at least one 
telecommunications device for deaf persons (TDD) or equally effective 
telecommunications device.
    (ii) The Agency shall ensure that all Agency letterhead, forms, and 
other documents listing any Agency telephone number list the appropriate 
TDD numbers.
    (2) Interpreter service. (i) The Agency shall establish a reliable 
system for the provision of qualified interpreters to individuals with 
handicaps for Agency programs or activities. This provision does not 
require the Agency to have an interpreter on staff, but does require the 
Agency to be able to provide a qualified interpreter on reasonable 
notice.
    (ii) Notice of the availability of interpreter service shall be 
included in all announcements notifying the public of Agency activities 
to which the public is invited or which it is permitted to attend, 
including but not limited to the U.S. Commission on Civil Rights' 
meetings, consultations, hearings, press conferences and State Advisory 
Committee conferences and meetings. This notice shall designate the 
Agency official(s) and the address, telephone and TDD number to call to 
request interpreter services.

[[Page 314]]

    (d) Specific requirements for printed communications. (1) The Agency 
shall establish a system to provide to individuals with handicaps 
appropriate reader or taping service for all Agency publications which 
are available to the public. This provision does not require the Agency 
to have a reader or taper or staff, but does require the Agency to be 
able to provide appropriate reader or taping service within a reasonable 
time and on reasonable notice. The Agency shall effectively notify 
qualified individuals with handicaps of the availability of reader or 
taping services.
    (2) Notice of the availability of reader or taping service shall be 
included in all publications which are available to the public. This 
notice shall designate the Agency official(s) and the address, telephone 
and TDD number to call to request interpreter services.
    (e) Nothing in this section or Sec. 707.10 requires the Agency to 
take any action that it can demonstrate would result in a fundamental 
alteration in the nature of a program or activity or in undue financial 
and administrative burdens. In those circumstances where Agency 
personnel believe that the proposed action would fundamentally alter the 
program or activity or would result in undue financial and 
administrative burdens, the Agency has the burden of proving that 
compliance with this section or Sec. 707.10 would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the Staff Director or his or her 
designee after considering all Agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompaned by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this paragraph would 
result in such an alteration or such burdens, the Agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
individuals with handicaps receive the benefits and services of the 
program or activity.



Sec. 707.10  Auxiliary aids.

    (a) The Agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the Agency.
    (b) In determining what type of auxiliary aid is necessary, the 
Agency shall give primary consideration to the requests of the 
individual with handicaps.
    (c) The Agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.



Sec. 707.11  Eliminating discriminatory qualifications and selection criteria.

    The Agency shall not make use of any qualification standard, 
eligibility requirement, or selection criterion that excludes particular 
classes of individuals with handicaps from an Agency program or activity 
merely because the persons are handicapped, without regard to an 
individual's actual ability to participate. An irrebuttable presumption 
of inability to participate based upon a handicap shall be permissible 
only if the condition would, in all instances, prevent an individual 
from meeting the essential eligibility requirements for participating 
in, or receiving the benefits of, the particular program or activity.



Sec. 707.12  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the Agency.
    (b) The Agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) Responsibility for implementation and operation of this section 
shall be vested in the Office of General Counsel.
    (d) The Agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180

[[Page 315]]

days of the alleged act of discrimination. The Agency may extend this 
time period for good cause.
    (e) If the Agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The Agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151 through 4157), is not readily 
accessible to and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the Agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the Agency of the letter required by Sec. 707.12(g). The Staff Director 
may extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the Staff 
Director or the Staff Director's designee.
    (j) The Agency shall notify the complainant in writing of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the Agency determines that additional information is needed 
from the complainant, it shall have 60 days from the date it receives 
the additional information to make its determination on the appeal.
    (k) The time limits cited in paragraphs (d), (g), (h), and (j) of 
this section may be extended for an individual case when the Staff 
Director determines that there is good cause, based on the particular 
circumstances of that case, for the extension.
    (l) The Agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another Agency.



PART 708--COLLECTION BY SALARY OFFSET FROM INDEBTED CURRENT AND FORMER EMPLOYEES--Table of Contents




Sec.
708.1  Purpose and scope.
708.2  Policy.
708.3  Definitions.
708.4  Applicability.
708.5  Notice.
708.6  Petitions for hearing.
708.7  Hearing procedures.
708.8  Written decision.
708.9  Coordinating offset with another Federal agency.
708.10  Procedures for salary offset.
708.11  Refunds.
708.12  Statute of limitations.
708.13  Non-waiver of rights by payments.
708.14  Interest, penalties, and administrative costs.

    Authority: 5 U.S.C. 5514; sec. 8(1) of E.O. 11609; redesignated in 
sec. 2-1 of E.O. 12107.

    Source: 58 FR 4351, Jan. 14, 1993, unless otherwise noted.



Sec. 708.1  Purpose and scope.

    (a) These regulations provide the procedure pursuant to 5 U.S.C. 
5514 and 5 CFR part 550 subpart K for the collection by administrative 
offset of a Federal employee's salary without his/her consent to satisfy 
certain debts owed to the Federal government. This procedure applies to 
all Federal employees who owe debts to the U.S. Commission on Civil 
Rights (``the Commission''). This provision does not apply when the 
employee consents to recovery from his/her current pay account.
    (b) This procedure does not apply to debts or claims arising under:
    (1) The Internal Revenue Code of 1954, as amended (26 U.S.C. 1 et 
seq.);
    (2) The Social Security Act (42 U.S.C. 301 et seq.);
    (3) The tariff laws of the United States; or
    (4) To any case where collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute (e.g., travel 
advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C. 
4108).

[[Page 316]]

    (c) The Commission shall except from salary offset provisions any 
adjustments to pay arising out of an employee's election of coverage or 
a change in coverage under a Federal benefits programs requiring 
periodic payroll deductions from pay, if the amount to be recovered was 
accumulated over four pay periods or less.
    (d) These procedures do not preclude an employee or former employee 
from requesting a waiver of a salary overpayment under 5 U.S.C. 5584, 10 
U.S.C. 2774, or 32 U.S.C. 716 or in any way questioning the amount or 
validity of the debt by submitting a subsequent claim to the General 
Accounting Office (GAO) in accordance with procedures prescribed by the 
GAO. In addition, this procedure does not preclude an employee from 
requesting a waiver pursuant to other statutory provisions applicable to 
the particular debt being collected.



Sec. 708.2  Policy.

    It is the policy of the Commission to apply the procedures(s) in 
these regulations uniformly and consistently in the collection of 
internal debts from its current and former employees.



Sec. 708.3  Definitions.

    For the purposes of these regulations the following definitions 
apply:
    (a) Agency means (1) an Executive agency as defined in section 105 
of title 5 United States Code, including the U.S. Postal Service and the 
U.S. Postal Rate Commission;
    (2) A military department as defined in section 102 of title 5, 
United States Code;
    (3) An agency or court in the judicial branch, including a court as 
defined in section 610 of title 28, United States Code, the District 
Court for the Northern Mariana Islands, and the Judicial panel on 
Multidistrict Litigation;
    (4) An agency of the legislative branch, including the U.S. Senate 
and the U.S. House of Representatives; and
    (5) Other independent establishments that are entities of the 
Federal Government.
    (b) Creditor agency means the agency to which the debt is owed.
    (c) Debt means an amount owed to the United States from sources 
which include loans insured or guaranteed by the United States, and 
amounts due the United States from fees, leases, rents, royalties, 
services, sales of real or personal property, overpayments, penalties, 
damages, interest, fines and forfeitures (except those arising under the 
Uniform Code of Military Justice), and all other similar sources.
    (d) Assistant Staff Director for Management means the Assistant 
Staff Director for Management of the U.S. Commission on Civil rights or 
his/her absence, or in the event of a vacancy in the position or its 
elimination, the Personnel Officer.
    (e) Disposable pay means that part of current basic pay, special 
pay, incentive pay, retired pay, retainer pay, or in the case of an 
employee not entitled to basic pay, other authorized pay remaining from 
an employee's Federal pay after required deductions for social security, 
Federal, state or local income tax, health insurance premiums, 
retirement contributions, life insurance premiums, Federal employment 
taxes, and any other deductions that are required to be withheld by law.
    (f) Employee means a current employee of an agency, including a 
current member of the Armed Forces or a Reserve of the Armed Forces 
(Reserves).
    (g) Former employee means an employee who is no longer employed with 
the Commission but is currently employed with another Federal agency.
    (h) FCCS means the Federal Claims Collection Standards jointly 
published by the Department of Justice and the General Accounting Office 
at 4 CFR 101.1 et seq.
    (i) Hearing official means an individual responsible for conducting 
any hearing with respect to the existence or amount of a debt claimed, 
and who renders a decision on the basis of such hearing. A hearing 
official may not be under the supervision or control of the Assistant 
Staff Director for Management of the U.S. Commission on Civil Rights.
    (j) Paying agency means the agency employing the individual who owes 
the debt and is responsible for authorizing the payment of his or her 
current pay.
    (k) Pay interval will normally be the biweekly pay period but may be 
some

[[Page 317]]

regularly recurring period of time in which pay is received.
    (l) Retainer Pay means the pay above the maximum rate of an 
employee's grade which he/she is allowed to keep in special situations 
rather than having the employee's rate of basic pay reduced.
    (m) Salary offset means an administrative offset to collect a debt 
under 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.
    (n) Waiver means the cancellation, remission, forgiveness, or non-
recovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 5584, 10 U.S.C. 2774, or 32 U.S.C. 
716, 5 U.S.C. 8346(b) or any other law.



Sec. 708.4  Applicability.

    These regulations are to be followed when:
    (a) The U.S. Commission on Civil Rights is owed a debt by an 
individual who is a current employee of the Commission; or
    (b) The U.S. Commission on Civil Rights is owed a debt by an 
individual currently employed by another Federal agency; or
    (c) The Commission employs an individual who owes a debt to another 
Federal agency.



Sec. 708.5  Notice.

    (a) Deductions shall not be made unless the employee who owes the 
debt has been provided with written notice signed by the Assistant Staff 
Director for Management (ASDM) or in his/her absence, or in the event of 
a vacancy in that position or its elimination the Personnel Officer (or 
the U.S. Department of Agriculture, National Finance Center acting on 
behalf of the Commission) of the debt at least 30 days before salary 
offset commences.
    (b) The written notice from the ASDM, acting on behalf of the 
Commission, as the creditor agency, shall contain:
    (1) A statement that the debt is owed and an explanation of its 
origin, nature, and amount;
    (2) The agency's intention to collect the debt by deducting from the 
employee's current disposable pay account;
    (3) The amount, frequency, proposed beginning date, and duration of 
the intended deduction(s);
    (4) An explanation of the requirements concerning the current 
interest rate, penalties, and administrative costs, including a 
statement that such charges will be assessed unless excused in 
accordance with the Federal Claims Collections Standards (4 CFR 101.1 et 
seq.);
    (5) The employee's right to inspect, request, or receive a copy of 
the government records relating to the debt;
    (6) The employee's right to enter into a written repayment schedule 
for the voluntary repayment of the debt in lieu of offset;
    (7) The right to a hearing conducted by an impartial hearing 
official (either an administrative law judge or an official who is not 
under the control of the Commission);
    (8) The method and time period for petitioning for a hearing;
    (9) A statement that the timely filing (i.e., within 15 calendar 
days) of a petition for a hearing will stay the commencement of 
collection proceedings;
    (10) A statement that a final decision on the hearing (if one is 
requested) will be issued at the earliest practical date but not later 
than 60 days after the filing of the petition requesting the hearing 
unless the employee requests and the hearing official grants a delay in 
the proceedings.
    (11) A statement that an employee knowingly submitting false or 
frivolous statements (5 CFR part 550.1101), representations, or evidence 
may subject the employee to disciplinary procedures under 5 U.S.C. 
chapter 75 and 5 CFR part 752; penalties under the False Claims Act, 31 
U.S.C. 3729-3731; or criminal penalties under 18 U.S.C. 286, 287, 1001, 
and 1002;
    (12) A statement of other rights and remedies available to the 
employee under statutes or regulations governing the program for which 
the collection is being made;
    (13) A statement that an employee will be promptly refunded any 
amount paid or deducted for a debt which is later waived or found not 
valid unless

[[Page 318]]

there are applicable contractual or statutory provisions to the 
contrary; and
    (14) The name, address, and phone number of an official who can be 
contacted concerning the indebtedness.



Sec. 708.6  Petitions for hearing.

    (a) Except as provided in paragraph (d) of this section, an employee 
who wants a hearing must file a written petition for a hearing to be 
received by the Assistant Staff Director for Management not later than 
15 calendar days from the date of receipt of the Notice of Offset. The 
petition must state why the employee believes the determination of the 
Commission concerning the existence or amount of the debt is in error.
    (b) The petition must be signed by the employee and should identify 
and explain with reasonable specificity and brevity the facts, evidence, 
and witnesses which the employee believes support his/her position.
    (c) If the employee objects to the percentage of disposable pay to 
be deducted from each check, the petition should state the objection and 
the reasons for it.
    (d) If the employee files a petition for a hearing later than the 15 
calendar days from the date of receipt of the Notice of Offset, as 
described in paragraph (a) of this section, the hearing official may 
accept the request if the employee can show that there was good cause 
(such as due to circumstances beyond his/her control or because he/she 
was not informed or aware of the time limit) for failing to meet the 
deadline date.
    (e) An employee will not be granted a hearing and will have his/her 
disposable pay offset in accordance with the ASDM's offset schedule if 
he/she fails to show good cause why he/she failed to file the petition 
for a hearing within the stated time limits.



Sec. 708.7  Hearing procedures.

    (a) If an employee timely files a petition for a hearing under the 
above procedures, the Assistant Staff Director for Management shall 
select the time, date, and location for the hearing.
    (b) The hearing shall be conducted by an impartial hearing official.
    (c) The hearing shall conform to procedures contained in the Federal 
Claims Collection Standards, 4 CFR 102.3(c).
    (d) The Commission, as the creditor agency, will have the burden of 
proving the existence of the debt.
    (e) The employee requesting the hearing shall have the burden of 
proof to demonstrate that the existence or amount of the debt is in 
error.



Sec. 708.8  Written decision.

    (a) The hearing official shall issue a written opinion no later than 
sixty (60) days after the filing of the petition for hearing; or no 
longer than sixty (60) days from the proceedings if an extension has 
been granted pursuant to Sec. 708.5(b)(10).
    (b) The written opinion will include: A statement of the facts 
presented to demonstrate the nature and origin of the alleged debt; the 
hearing official's analysis, findings, and conclusions; the amount and 
validity of the debt; and if applicable, the repayment schedule.



Sec. 708.9  Coordinating offset with another Federal agency.

    (a) The Commission is the creditor agency when the Assistant Staff 
Director for Management determines that an employee of another Federal 
agency owes a delinquent debt to the Commission. The Assistant Staff 
Director for Management shall, as appropriate:
    (1) Arrange for a hearing upon the proper petitioning by the 
employee;
    (2) Certify in writing that the employee of the paying agency owes 
the debt, the amount, and basis of the debt, the date on which payment 
is due, the date the Government's right to collect the debt first 
accrued, and that the Commission's regulations for salary offset have 
been approved by the Office of Personnel Management;
    (3) If the collection must be made in installments, the Commission, 
as the creditor agency, will advise the paying agency of the amount or 
percentage of disposable pay to be collected in each installment and the 
number and the commencement date of the installments;
    (4) Advise the paying agency of the actions taken under 5 U.S.C. 
5514(a) and provide the dates on which action

[[Page 319]]

was taken, unless the employee has consented to salary offset in writing 
or signed a statement acknowledging receipt of procedures required by 
law. The written consent or acknowledgement must be sent to the paying 
agency;
    (5) If the employee is in the process of separating, the Commission 
will submit its debt claim to the paying agency as provided in this 
part. The paying agency must certify any amounts already collected, 
notify the employee, and send a copy of the certification of the monies 
already collected and notice of the employee's separation to the 
Commission. If the paying agency is aware that the employee is entitled 
to Civil Service or Foreign Service Retirement and Disability Fund or 
similar payments, it must provide written notification to the agency 
responsible for making such payments stating the amount of the debt and 
indicating that the provisions of this part have been followed; and
    (6) If the employee has already separated and all payments due from 
the paying agency have been paid, the Assistant Staff Director for 
Management may request, unless otherwise prohibited, that money payable 
to the employee from the Civil Service Retirement and Disability Fund or 
other similar funds be collected by administrative offset. The 
Commission will provide the agency responsible for these payments with a 
properly certified claim.
    (b) The Commission is the paying agency when an employee of this 
agency owes a debt to another Federal agency which is the creditor 
agency.
    (1) Upon receipt of a properly certified debt claim from a creditor 
agency, deductions will be scheduled to begin at the next established 
pay interval.
    (2) The Commission must give the employee written notice that it has 
received a certified debt claim from a creditor agency (including the 
amount), and the date that deductions will be scheduled to begin and the 
amount of the deduction.
    (3) The Commission shall not review the merits of the creditor 
agency's determination of the amount of the certified claim or of its 
validity.
    (4) If the employee transfers to another paying agency after the 
creditor agency has submitted its debt claim but before the debt is 
collected completely, the Commission must certify the total amount 
collected to the creditor agency with notice of the employee's transfer. 
One copy of this certification must be furnished to the employee. The 
creditor agency will submit a properly certified claim to the new paying 
agency before collection can be resumed.
    (5) When the Commission, as a paying agency, receives an incomplete 
debt claim from a creditor agency, it must return the debt claim with a 
notice that procedures under 5 U.S.C. 5514 and this subpart must be 
provided and a properly certified debt claim received before action will 
be taken to collect from the employee's current pay account.



Sec. 708.10  Procedures for salary offset.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Assistant Staff Director for 
Management's written notice of intent to collect from the employee's 
current pay, unless alternative arrangements for repayment are made.
    (b) If the employee filed a petition for a hearing with the 
Assistant Staff Director for Management before the expiration of the 
period provided, then deductions will begin after the hearing official 
has provided the employee with a hearing, and a final written decision 
has been rendered in favor of the Commission.
    (c) A debt will be collected in a lump-sum if possible.
    (d) If an employee is financially unable to pay in one lump sum or 
the amount of the debt exceeds 15 percent of disposable pay for an 
officially established pay interval, collection must be made in 
installments. The size of the installment deduction(s) will bear a 
reasonable relationship to the size of the debt and the deduction will 
be established for a period not greater than the anticipated period of 
employment. The deduction for the pay intervals for any period must not 
exceed 15% of disposable pay unless the employee has agreed in writing 
to a deduction of a

[[Page 320]]

greater amount. If possible, the installment payment will be sufficient 
in size and frequency to liquidate the debt in no more than three years.
    (e) Installment payments may be less than 15 percent of disposable 
pay if the Assistant Staff Director for Management determines that the 
15 percent deduction would create an extreme financial hardship.
    (f) Installment payments of less than $25.00 per pay period or 
$50.00 per month, will only be accepted in the most unusual 
circumstances.
    (g) Unliquidated debts may be offset by the paying agency under 31 
U.S.C. 3716 against any financial payment due to a separating employee 
including but not limited to final salary payment, retired pay, or lump 
sum leave, etc. as of the date of separation to the extent necessary to 
liquidate the debt.
    (h) If the debt cannot be liquidated by offset from any final 
payment due a separated employee it may be recovered by the offset in 
accordance with 31 U.S.C. 3716 from any later payments due the former 
employee from the United States.



Sec. 708.11  Refunds.

    (a) The Commission will refund promptly any amounts deducted to 
satisfy debts owned to the Commission when the debt is waived, found not 
owed to the Commission, or when directed by an administrative or 
judicial order; or
    (b) The creditor agency will promptly return any amounts deducted 
and forwarded by the Commission to satisfy debts owed to the creditor 
agency when the debt is waived, found not owed, or when directed by an 
administrative or judicial order;
    (c) Upon receipt of monies returned in accordance with paragraph (b) 
of this section, the Commission will refund the amount to the current or 
former employee.
    (d) Unless required by law, refunds under this subsection shall not 
bear interest nor shall liability be conferred to the Commission for 
debt or refunds owed by other creditor agencies.



Sec. 708.12  Statute of limitations.

    If a debt has been outstanding for more than 10 years after the 
agency's right to collect the debt first accrued, the agency may not 
collect by salary offset unless facts material to the government's right 
to collect were not known and could not reasonably have been known by 
the official or officials who were charged with the responsibility for 
discovery and collection of such debts.



Sec. 708.13  Non-waiver of rights by payments.

    An employee's involuntary payment of all or any part of a debt 
collected under these regulations will not be construed as a waiver of 
any rights that employee may have under 5 U.S.C. 5514 or any other 
provision of contract or law unless there are statutory or contractual 
provisions to the contrary.



Sec. 708.14  Interest, penalties, and administrative costs.

    Charges may be assessed for interest, penalties, and administrative 
costs in accordance with the Federal Claims Collection Standards, 4 CFR 
102.13.


[[Page 321]]



              CHAPTER VIII--OFFICE OF PERSONNEL MANAGEMENT




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Part                                                                Page
801             Voting Rights Program.......................         322

[[Page 322]]



PART 801--VOTING RIGHTS PROGRAM--Table of Contents




                      Subpart A--General Provisions

Sec.
801.101  Definitions.
801.102  Timely filing required.
801.103  Computation of time.
801.104  Words denoting number and gender.

                 Subpart B--Listing on Eligibility List

801.201  Scope.
801.202  Times and places for filing and forms of application.
801.203  Procedures for filing application.
801.204  Qualifications requirements.
801.205  Action on the application.
801.206  Review of notice of ineligibility for listing.
801.207  Certification and publication of eligibility lists.

          Subpart C--Challenges to Listing on Eligibility List

801.301  Scope.
801.302  Basis of challenge.
801.303  Time and place of challenge.
801.304  Form of challenge.
801.305  Rejection and docketing of challenge.
801.306  Summary denial of challenge by hearing officer.
801.307  Notice of hearing.
801.308  Rights and duties of parties.
801.309  Continuance.
801.310  Hearing.
801.311  Powers of hearing officer.
801.312  Witnesses.
801.313  Subpena.
801.314  Evidence.
801.315  Decision.
801.316  Action after challenge is sustained.
801.317  Appeal.

                Subpart D--Removals From Eligibility List

801.401  Scope.
801.402  Bases for removals.
801.403  Procedure for removals determined by examiners.
801.404  Notification of removals.

                       Subpart E--Voting Complaint

801.501  Scope.
801.502  Making a complaint.
801.503  Processing a complaint.

Appendix A to Part 801
Appendix B to Part 801
Appendix C to Part 801
Appendix D to Part 801

    Authority: 5 U.S.C. 1103; secs. 7, 9, 79 Stat. 440, 411 (42 U.S.C. 
1973e, 1973g).

    Source: 30 FR 9859, Aug. 7, 1965, unless otherwise noted.

    Note: Those amendments to appendixes A, B, and D in Part 801, which 
apply to Texas, appearing at 41 FR 16155, Apr. 16, 1976, are also 
carried in Spanish at the end of appendix D.



                      Subpart A--General Provisions



Sec. 801.101   Definitions.

    In this part:
    (a) Act means the Voting Rights Act of 1965, Public Law 89-110, as 
amended by Public Law 94-73, August 6, 1975.
    (b) Applicant means a person who presents himself to an examiner at 
one of the times and places designated by the OPM under Sec. 801.202 for 
the purpose of being listed as eligible to vote;
    (c) Applications means the form prescribed by the OPM under the Act 
for use by a person applying for listing on an eligibility list;
    (d) OPM means the U.S. Office of Personnel Management;
    (e) Day means a calendar day;
    (f) Eligibility list means a list of eligible voters or supplements 
to a list of eligible voters, prepared by an examiner under the Act;
    (g) Examiner means a person designated or appointed by the OPM under 
the Act to examine applicants for listing on an eligibility list and to 
prepare and maintain lists of persons eligible to vote in Federal, 
State, or local elections;
    (h) Hearing officer means a person authorized by the OPM to 
adjudicate a challenge to a listing on an eligibility list;
    (i) Political subdivision, vote, and voting have the meanings given 
these terms in the Act; and
    (j) Parties means a challenger, a challenged person, and the 
representative of either.

[30 FR 9059, Aug. 7, 1965, as amended at 41 FR 16155, Apr. 16, 1976]



Sec. 801.102   Timely filing required.

    A document or other paper required to be filed within a time limit 
specified in this part shall be delivered to the office involved before 
the close of business on the last day of the period, or if filed by mail 
be postmarked before midnight of the last day of the period.

[[Page 323]]



Sec. 801.103   Computation of time.

    In computing a period of time prescribed by this part, the day of 
the action or event after which the designated period of time begins to 
run is not to be included. The last day of the period so computed is to 
be included unless it is a Saturday, Sunday, or legal holiday in the 
State involved, in which event the period runs until the end of the next 
day which is neither a Saturday, Sunday, nor a legal holiday.



Sec. 801.104   Words denoting number and gender.

    In this part:
    (a) Words importing the singular include and apply to several 
persons, parties, or things;
    (b) Words importing the plural include the singular; and
    (c) Words importing the masculine gender include the feminine as 
well.



                 Subpart B--Listing on Eligibility List



Sec. 801.201   Scope.

    This subpart prescribes the times, places, and procedures for 
listing on an eligibility list under the Act.



Sec. 801.202   Times and places for filing and forms of application.

    (a) The times and places designated by the OPM for filing an 
application in each political subdivision, and the forms of application 
prescribed by the OPM, shall be set out in appendix A to this part and 
incorporated in and made a part of this section.
    (b) The OPM shall give notice to the general public of the times and 
places designated under paragraph (a) of this section, to appropriate 
local election officials in the political subdivision, and to the 
attorney general of the State, by publication thereof in the Federal 
Register and by such other means as it considers appropriate.



Sec. 801.203   Procedures for filing application.

    (a) An applicant may obtain an application at the place and during 
the times set out in appendix A for the appropriate political 
subdivision. An application may be completed only at the place where it 
was obtained and shall be submitted by the applicant in person to an 
examiner at that place.
    (b) An examiner shall review the application in the presence of the 
applicant to insure that all questions are answered clearly and 
completely. If all questions are not answered clearly and completely or 
if an applicant is not able personally to complete the application in 
whole or in part because of lack of literacy or otherwise, or has 
difficulty in doing so, an examiner shall orally examine the applicant 
and record the pertinent information on the application or otherwise 
assist the applicant in completing the application.
    (c) After an application is completed, an examiner shall require the 
applicant to take the oath or affirmation prescribed on the application 
and to sign his name or make his mark thereon.



Sec. 801.204   Qualifications requirements.

    The qualifications required for listing, prescribed by the OPM after 
consultation with the Attorney General, for use by an examiner in 
examining an applicant for listing on an eligibility list shall be set 
out in appendix B to this part and incorporated in and made a part of 
this section.



Sec. 801.205   Action on the application.

    At the time of filing the application and in the presence of the 
applicant, the examiner shall review the application and make such 
examination as is necessary to determine whether the applicant has the 
prescribed qualifications. If the applicant has the prescribed 
qualifications, the examiner shall give him a certificate, on the form 
prescribed by the OPM, evidencing his eligibility to vote and enter his 
name on an eligibility list, the form for which is prescribed by the 
OPM. If the applicant does not have the prescribed qualifications, the 
examiner shall give him a notice of ineligibility for listing, on the 
form prescribed by the OPM.



Sec. 801.206   Review of notice of ineligibility for listing.

    An applicant may obtain a review of a notice of ineligibility for 
listing by executing the request for review contained on that notice and 
returning it to the examiner or by filing a written

[[Page 324]]

request, either personally or through a representative, with the 
Examiner (State Supervisor), U.S. Office of Personnel Management, in the 
State involved at the address set out in appendix C to this part and 
incorporated in and made a part of this section. The request shall be 
submitted within 10 days from the date of the notice of ineligibility 
for listing. The request shall set forth the applicant's reason for 
contesting the notice of ineligibility for listing. The Examiner (State 
Supervisor) shall notify the applicant or his representative and the 
examiner concerned of his decision. When the Examiner (State Supervisor) 
finds the applicant has the prescribed qualifications, he shall direct 
the examiner concerned to give the applicant a certificate evidencing 
his eligibility to vote and to enter his name on the eligibility list. 
There is no administrative appeal from the decision of an Examiner 
(State Supervisor).



Sec. 801.207   Certification and publication of eligibility lists.

    An examiner shall certify and transmit an eligibility list at least 
once a month to the office of the appropriate election official, with a 
copy to the Attorney General and the attorney general of the State. The 
list shall contain the name of each eligible voter listed since the last 
list was certified and transmitted. The list shall be made available for 
public inspection beginning on the last business day of the month and in 
any event not later than the 45th day before an election, during normal 
business hours, for one period of 10 consecutive days, at the place 
where the persons listed filed their applications as set out in appendix 
A to this part, except that the list may be made available for public 
inspection in the same political subdivision at a place other than the 
place where the persons listed filed their applications when advance 
notice of this change is posted at the place where the persons listed 
filed their applications.

[30 FR 12392, Sept. 29, 1965]



          Subpart C--Challenges to Listing on Eligibility List



Sec. 801.301   Scope.

    This subpart prescribes the procedure that governs a challenge to a 
listing on an eligibility list under the Act.



Sec. 801.302   Basis of challenge.

    A challenge to a listing on an eligibility list may be made only on 
the basis of fraud or that the challenged person does not have the 
prescribed qualifications.



Sec. 801.303   Time and place of challenge.

    A challenge shall be filed within 10 days after the listing of the 
challenged person is made available for public inspection as provided in 
Sec. 801.207 by delivering or mailing the challenge to the Examiner 
(State Supervisor), U.S. Office of Personnel Management, in the State 
involved at the address set out in appendix C to this part.



Sec. 801.304   Form of challenge.

    (a) A challenge shall be under oath and shall contain:
    (1) The name and address of the OPM office to which it is submitted;
    (2) The date of submission;
    (3) The name and address of the challenger;
    (4) The name and address of his representative, if any;
    (5) The name and address of the challenged person and his 
certificate number as they appear on the eligibility list;
    (6) A written statement setting forth in plain and concise language 
the facts constituting the grounds for challenging the listing of the 
challenged person on the eligibility list;
    (7) Affidavits of at least two persons (one of whom may be the 
challenger) with their addresses, stating that they have personal 
knowledge of the facts that constitute the grounds for challenge and 
setting forth those facts in plain and concise language. Each affidavit 
shall be sworn to before a person authorized to administer oaths; and
    (8) A certification that service of the challenge on the challenged 
person has

[[Page 325]]

been made as required by paragraph (b) of this section.
    (b) The challenger shall file his challenge in triplicate and shall 
have a copy of it served on the challenged person. That service may be 
in person or by first-class mail properly addressed with charges 
prepaid.



Sec. 801.305   Rejection and docketing of challenge.

    (a) When a challenge is not timely filed or served or does not meet 
the requirements of Sec. 801.304, it shall not be entertained but shall 
be rejected.
    (b) When a challenge is not rejected under paragraph (a) of this 
section, the hearing officer shall place it on the docket.



Sec. 801.306   Summary denial of challenge by hearing officer.

    If on review of a challenge a hearing officer determines that the 
information, even if true and known at the time of listing, would not 
have disqualified the challenged person, he shall issue a decision 
denying the challenge without further proceeding and notify the parties 
of his reasons for this decision.



Sec. 801.307   Notice of hearing.

    After docketing, and if not denied under Sec. 801.306, the challenge 
shall be set for hearing. The challenger and the challenged person shall 
be sent a notice of the date, time, and place of the hearing and advised 
of the rights and duties of the parties including the right to request a 
subpena. The notice of hearing shall be dated and the date of the 
hearing shall not be less than 5 days from the date of that notice. The 
notice of hearing shall be served on the challenger and the challenged 
person either personally or by mail.



Sec. 801.308   Rights and duties of parties.

    (a) The challenger has the burden of proceeding and proof at the 
hearing and shall appear personally or with a representative to 
prosecute the challenge, except that when a continuance is sought the 
challenger may appear by a representative. If a challenger fails to 
appear personally to prosecute the challenge, the hearing officer shall 
issue a decision denying the challenge or make such other disposition as 
is warranted by the circumstances.
    (b) The challenged person has the right to appear at the hearing 
personally or by or with a representative, and to present witnesses and 
documentary evidence in his behalf.



Sec. 801.309   Continuance.

    A request for a continuance of a hearing shall be filed with the 
hearing officer at the place and on the day of the hearing. The hearing 
officer shall not grant a continuance except under extraordinary 
circumstances.



Sec. 801.310   Hearing.

    A hearing shall be open to the public and held at the time and place 
specified in the notice of hearing. A hearing shall be recorded by an 
official reporter designated by the OPM, under the supervision of the 
hearing officer. A party may obtain a copy of the transcript from the 
official reporter at a rate not in excess of the maximum rate fixed by 
contract between the OPM and the reporter.



Sec. 801.311   Powers of hearing officer.

    In addition to the powers otherwise vested in a hearing officer by 
this subpart, a hearing officer shall have the power to:
    (a) Administer oaths and affirmations;
    (b) Issue and quash subpenas;
    (c) Regulate the course of the hearing;
    (d) Rule on offers of proof;
    (e) Permit a party to withdraw from a hearing on a showing of good 
cause;
    (f) Limit the number of witnesses whose testimony would be 
cumulative;
    (g) Deny a challenge for failure to prosecute;
    (h) Exclude any person from the hearing for contumacious conduct or 
misbehavior that obstructs the hearing; and
    (i) Take any other action in the course of the hearing consistent 
with law that is necessary to carry out the spirit and intent of the 
Act.



Sec. 801.312   Witnesses.

    (a) A witness shall testify under oath or affirmation and shall be 
subject to cross-examination.

[[Page 326]]

    (b) A witness who is summoned and responds is entitled to the same 
witness and mileage fees as are paid for like service in the courts of 
the United States. The party at whose instance the testimony is taken 
shall pay the witness and mileage fees.



Sec. 801.313   Subpena.

    (a) On the request of a party and for good cause shown, a hearing 
officer may issue a subpena for the appearance of a witness or for the 
production of documentary evidence.
    (b) A hearing officer may quash a subpena for good cause shown.
    (c) The party at whose request a subpena is issued is responsible 
for arranging for service. The officer or person making service shall 
show the original subpena to the person served, read the subpena to him 
if he is unable to read, and deliver a copy of the subpena to him.
    (d) When a U.S. Marshal or his deputy serves a subpena, he shall 
evidence the service by his return on the subpena. When someone other 
than a U.S. Marshal or his deputy serves a subpena, the person serving 
the subpena shall make an affidavit, stating the date, time, and the 
manner of service, and shall return the affidavit on, or with, the 
original subpena in accordance with the form thereon. When the U.S. 
Marshal, his deputy, or other person, as appropriate, cannot serve the 
subpena, he shall state his reason for the failure on the original 
subpena. When the person named in the subpena accepts service of the 
subpena in writing, no other evidence of return is necessary. The person 
responsible for serving a subpena shall return the original subpena, 
bearing or accompanied by the required return, affidavit, statement, or 
acceptance of service, to the officer presiding at the hearing at which 
the person subpenaed is required to appear.



Sec. 801.314   Evidence.

    (a) The application of the challenged person is prima facie evidence 
that he has the qualifications that are stated in the application.
    (b) Rules of evidence are not strictly applied but the hearing 
officer shall exclude irrelevant or unduly repetitious evidence.
    (c) Each exhibit of a documentary character shall be submitted to 
the hearing officer, duly marked, and made a part of the record. An 
exhibit does not become evidence unless received in evidence by the 
hearing officer.



Sec. 801.315   Decision.

    The hearing officer who presided at the hearing, unless he has 
become unavailable, shall decide the case on the record. If no hearing 
is held, the hearing officer to whom the challenge was assigned shall 
decide the case on the record. The decision shall be in writing and 
shall state the reasons or basis for the decision. Copies of the 
decision shall be served on the parties. The decision shall be issued 
not more than 15 days after the challenge is docketed under 
Sec. 801.305. The record, including the decision, shall be certified as 
true and complete by the hearing officer and forwarded to the Examiner 
(State Supervisor), U.S. Office of Personnel Management in the State 
involved at the address set out in appendix C to this part. It shall be 
available to interested persons at that office.



Sec. 801.316   Action after challenge is sustained.

    When a hearing officer sustains a challenge, he shall, after the 
courts have finally sustained his decision or the time for petitioning 
for a court review of that decision has expired, instruct an examiner to 
remove the name of the challenged person from the eligibility list and 
cancel that person's certificate evidencing his eligibility to vote. The 
examiner shall notify the challenged person, the appropriate election 
official, the Attorney General, and the attorney general of the 
appropriate State of his action.



Sec. 801.317   Appeal.

    There is no administrative appeal from the decision of a hearing 
officer or from any of his rulings. A petition for review of the 
decision of a hearing officer may be filed in court as provided in the 
Act.

[[Page 327]]



                Subpart D--Removals From Eligibility List



Sec. 801.401   Scope.

    The subpart prescribes the bases and procedures for removals from 
eligibility lists under the Act.



Sec. 801.402   Bases for removals.

    An examiner shall remove the name of a person from an eligibility 
list:
    (a) Pursuant to the instruction of a hearing officer under 
Sec. 801.316;
    (b) Pursuant to the order of a court having jurisdiction under the 
Act;
    (c) When the examiner determines that the listed person has lost his 
eligibility to vote under State law not inconsistent with the 
Constitution and the laws of the United States and in accordance with 
the instructions concerning loss of eligibility to vote prescribed by 
the OPM after consultation with the Attorney General which shall be set 
out in appendix D to this part and incorporated in and made a part of 
this section.



Sec. 801.403   Procedure for removals determined by examiners.

    An examiner may remove the name of a listed person as authorized by 
Sec. 801.402(c) only after:
    (a) Giving the person a notice of the proposed removal of his name 
stating the reason why the removal is proposed and offering the person 
an opportunity to answer the notice of proposed removal in person or in 
writing or both within ten days after his receipt of that notice; and
    (b) Considering all available evidence concerning the person's loss 
of eligibility to vote, including any timely answer submitted by the 
person.



Sec. 801.404   Notification of removals.

    When an examiner removes the name of a person from an eligibility 
list he shall notify the person, the appropriate election officials, the 
Attorney General, and the attorney general of the State of that removal 
and the reason therefor.



                       Subpart E--Voting Complaint



Sec. 801.501   Scope.

    This subpart prescribes the procedure for filing and processing a 
complaint under the Act that a person was not permitted to vote.



Sec. 801.502   Making a complaint.

    A person who has been listed on an eligibility list or registered by 
an appropriate election official and who is eligible to vote but has not 
been permitted to vote may make a complaint regarding that denial to an 
examiner for the political subdivision where the denial occurred. The 
complaint may be either oral or in writing and must be made within 48 
hours after the closing of the polls.



Sec. 801.503   Processing a complaint.

    The examiner to whom a complaint is made shall promptly ascertain 
whether the complaint is well founded. If the examiner determines the 
complaint is not well founded he shall notify the person who complained 
of his determination and take no further action on the complaint. If the 
examiner determines that the complaint is well founded the examiner 
shall notify the person and the Attorney General of his determination 
and of the reason for that determination and furnish the Attorney 
General with any papers or evidence relating to the complaint.

                         Appendix A to Part 801

    This appendix sets out the dates, times, and places designated by 
the OPM for filing an application in each political subdivision, and 
sets out the forms of application prescribed by the OPM.

                   Dates, Times, and Places for Filing

    Offices at which applications may be filed will be open in each 
State in the county or parish and at the place set forth in this 
appendix beginning on the date specified and continuing thereafter until 
a closing date is given. Each office will be open Monday through 
Saturday (except on a legal holiday) between the hours of 8:30 a.m. and 
4:30 p.m., except that the OPM may change the hours and days on which 
any office will be open for filing applications by posting advance 
notice of the change at the place set forth in this appendix.

[[Page 328]]

                                 Alabama

                County; Place for filing; Beginning date

    Autauga; (1) Prattville--U.S. Post Office; November 8, 1965; (2) 
Marbury--building adjacent to U.S. Post Office, intersection of Main 
Street and State Highway 143; February 26, 1966.
    Barbour; Holiday Inn, Room 101, Barbour St. at Riverside Drive, 
Eufaula, Alabama, 36027, (205) 687-7903.
    Bullock; Union Springs--U.S. Post Office, 108 E. Hardaway Street; 
November 7, 1978.
    Chambers; Lafayette--Examiners Office, Room 218, FHA Office, County 
Building, 18 Alabama Avenue E.; July 30, 1984.\1/8\
    Choctaw; Butler--Post Office; May 31, 1966.
    Conecuh; Evergreen--Holiday Inn, Room 108, Interstate 68 and Highway 
83; September 2, 1980.
    Dallas; (1) Selma--Federal Building; August 10, 1965; (2) Orrville--
U.S. Post Office, State Highway 22; February 26, 1966.
    Elmore; (1) Wetumpka--U.S. Post Office; November 8, 1965; (2) 
Eclectic--trailer at U.S. Post Office; February 26, 1966; (3) Elmore--
trailer at U.S. Post Office; February 26, 1966.
    Greene; (1) Eutaw--U.S. Post Office; November 8, 1965; (2) Boligee--
trailer at U.S. Post Office; March 8, 1966.
    Grenada; Grenada--Post Office Building; July 22, 1966.
    Hale; (1) Greensboro--Post Office Building; August 10, 1965; (2) 
Moundville--Tidmore Building; February 26, 1966.
    Jefferson; (1) Bessemer--Post Office Building, North 19th Street, 
January 24, 1966; (2) Birmingham--Post Office and Courthouse Building, 
18th at 5th Avenue, North; January 24, 1966; (3) Fairfield--4412 Gary 
Avenue; January 24, 1966; (4) North Birmingham--Post Office Building; 
2003 41st Avenue (Sayreton), Birmingham; February 14, 1966; (5) 
Powderly--Library Building, Birmingham Baptist College, 630 Ishkooda 
Road, Birmingham; February 14, 1966; (6) Wylam--trailer at Post Office, 
4221 7th Avenue (Wylam), Birmingham; February 21, 1966; (7) Irondale--
7949-A Crestwood Boulevard; February 26, 1966; (8) Homewood--1820 28th 
Avenue; February 26, 1966; (9) Tarant--1322 Main Street; March 18, 1966.
    Lowndes; (1) Fort Deposit--Post Office Building; August 10, 1965; 
(2) Hayneville--trailer at U.S. Post Office; January 3, 1966.
    Madison; (1) Canton--285 Peace Street; August 10, 1965; (2) Flora--
Segrist Building opposite post office; July 20, 1966.
    Marengo; (1) Demopolis--Post Office Building; August 10, 1965; (2) 
Putnam--trailer adjacent to Post Office; State Highway 69; March 18, 
1966.
    Monroe; Room 112, Monroe Motor Court South, Highway 21, Monroeville, 
Alabama. August 31, 1984.
    Montgomery; (1) Montgomery--Post Office and Courthouse Building, 
corner of Church, Lee, and Moulton Streets, Rooms 332, 334, 336; October 
6, 1965, to November 6, 1969; (2) Montgomery--Aronov Building, 474 South 
Court Street, Room 132; November 7, 1969; (3) Mount Meigs--trailer at 
U.S. Post Office, intersection of U.S. Highway 80 and Pike Road; 
February 26, 1966.
    Perry; (1) Marion--Post Office Building, Room 3; August 20, 1965; 
(2) Uniontown--trailer at corner of West and Front Streets; March 5, 
1966.
    Pickens; Carrollton--U.S. Post Office, Room 200, Courthouse Square, 
Highway 86; September 5, 1978.
    Russell; Phoenix City--U.S. Post Office, 1310 Ninth Avenue; 
September 26, 1978.
    Sumter; Livingston--Post Office; May 3, 1966.
    Wilcox; (1) Camden--Federal Building, Room 202-204; August 20, 1965; 
(2) Alberta--trailer at intersection of State Highway 5 and County 
Highway 29; March 5, 1966; (3) Pine Apple--trailer at U.S. Post Office, 
County Highway 59; March 5, 1966.

                                 Arizona

                County; Place for filing; Beginning date.

    Apache; Window Rock Motor Inn, P.O. Box 1687, Window Rock, Arizona; 
October 31, 1986.
    Navajo; Holiday Inn, P.O. Box 307, Kayenta, Arizona; October 31, 
1986.
    Yuma; U.S. Border Station, Highway 95, International Borderline, San 
Luis, Arizona, 85349; (602) 627-2016; February 26, 1991.

                               California

    County; Place for filing; Beginning date
    Alameda; Oakland-U.S. Attorneys Office, Oakland Branch, 1301 Clay 
Street, Suite 3405, Oakland, California, 94612; (510) 637-3784 and (510) 
637-3748; March 23, 1996.

                                 Georgia

                County; Place for filing; Beginning date

    Baker; Newton--U.S. Post Office Building; Nov. 5, 1968.
    Baldwin; ASCS, Post Office Building, 110 Handcock Street, Room 206, 
Milledgeville, Georgia; Sept. 21, 1984.
    Brooks; Georgian Motel, room 8, 803 East Screven Street, Quitman, GA 
31643; (912) 263-9306 or 263-9307, July 17, 1990.
    Bulloch; Statesboro--Federal Building, Conference Room 208, 52 North 
Main Street; August 5, 1980.
    Burke; Waynesboro-U.S. Post Office, 721 Liberty Street, Room 204; 
November 2, 1982.
    Butts; (1) Jackson--Daughty Foundation, 221 College Street; 
September 4, 1982; (2) Flovilla--Flovilla Community Center, Collier 
Street; September 4, 1982; (3) Jenkinsburg--Cleveland BBQ Restaurant 
Building, Corner of Highway 42 and High Falls Road; September 4, 1982.

[[Page 329]]

    Calhoun; Morgan--Soil Conservation Service, Main Street, P.O. Box 
113; August 5, 1980.
    Chattahoochee; U.S. Post Office Lumpkin Highway, Cusseta, Georgia; 
Sept. 21, 1984.
    Early; Blakely--Qual Motel, Room 26, U.S. 27 South; August 5, 1980.
    Hancock; Sparta--Post Office Building, Broad Street; November 8, 
1966.
    Jefferson; Post Office Building Room 4, 131 W. Broad Street, 
Louisville, Georgia; Sept. 21, 1984.
    Johnson; Wrightsville--U.S. Post Office, Basement Office 1, 151 
South Marcus; August 5, 1980.
    Lee; (1) Leesburg--Farmers Exchange Building, Second Floor; April 3, 
1967, through April 30, 1969; (2) Leesburg--U.S. Post Office, 
intersection of State Highway 32 and U.S. Highway 19; May 1, 1969.
    McIntosh; Best Western, Swiss Inn, room 115, Highway 251 and 
Interstate 95, Darien, Georgia 31304; (912) 437-4418 or 4421; July 21, 
1992.
    Meriweather; Greenville--U.S. Department of Agriculture, 
Agricultural Stabilization Conservation Service Office, Williams Street; 
August 10, 1976.
    Mitchell; Camilla--FHA District Office Conference Room, Building 
10A, Broad Street; August 5, 1980.
    Peach; Fort Valley--U.S. Post Office Building; 300 West Church 
Street; November 7, 1972.
    Pike; ASCS, Pike County Agriculture Building, Gwyn Street, Zebulon, 
Georgia; Sept. 21, 1984.
    Randolph, Travelers Mini Lodge, Room 2, 949 Blakely Street, 
Cuthbert, Georgia, 31740; (912) 732-5806 or 5807; August 11, 1992.
    Screven; Sylvania--Post Office Building, Main and East Telephone 
Streets; April 3, 1967.
    Stewart; Lumpkin--U.S. Department of Agriculture, Agricultural 
Stabilization Conservation Service Office, Meeting Room, Court House, 
Second Floor; August 10, 1976.
    Sumter; Americus--Federal Building and Court House, Basement 
Conference Room 128, East Forsyth Street; August 5, 1980.
    Talbot--Buice Motel, Room 2, Washington St., Talbotton, Georgia 
31827, August 9, 1988.
    Taliaferro; Crawfordville--Post Office; November 5, 1968.
    Telfair; McRae--Postmasters Office, U.S. Post Office, 211 South 
Second Avenue; August 5, 1980.
    Terrell; Dawson--Post Office Building, Stonewall and Lee Streets; 
April 3, 1967.
    Tift; Tifton--FHA, Conference Room 306, Tifton County Administrative 
Building, 225 Tift Avenue; August 5, 1980.
    Twiggs; Jeffersonville--County Office Building; State Highway 96; 
September 3, 1974.
    Worth; ASCS, Worth County ASCS Building, 501 N. Henderson, 
Sylvester, Georgia; Sept. 21, 1984.

                                Louisiana

                Parish; Place for filing; Beginning date

    Bossier; (1) Benton--trailer at Post Office; April 3, 1967; (2) 
Bossier City--Lodge Hall, 1708 Scott Street; April 5, 1967 through March 
17, 1969; (3) Bossier City--Post Office, 150 Benton Road, March 18, 
1969.
    Caddo; (1) Shreveport--Post Office and Courthouse Building, 424 
Texas Street; April 3, 1967; (2) Shreveport--Terry Building, 2643 Cooper 
Road; April 3, 1967; (3) Shreveport; Hollywood Baptist Church; 5305 
Roberts Street; April 3, 1967.
    De Soto; Mansfield--trailer, at Post Office; April 3, 1967.
    East Carroll; (1) Lake Providence--Post Office Building; August 10, 
1965; (2) Sondheimer--trailer at Post Office Building; February 14, 
1966; (3) Lake Providence--ASCS Office, 205 North Hood; October 19, 
1979.
    East Feliciana; (1) Clinton--Kline Building, St. Helena Street; 
August 10, 1965, to February 8, 1966; (2) Clinton--Trailer at U.S. Post 
Office; February 19, 1966; (3) Jackson--Trailer parked on Post Office 
grounds; February 14, 1966; (4) Slaughter--Post Office Building; 
February 14, 1966.
    Madison; Tallulah--Post Office; August 13, 1966.
    Ouachita; (1) Monroe--Post Office Building, Room 301; August 20, 
1965; (2) West Monroe--I. B. Haynes Building, Cypress and Young Streets, 
February 14, 1966.
    Plaquemines; (1) Buras--Post Office Building, August 10, 1965, 
through November 17, 1965, reopened August 31, 1967; (2) Belle Chasse--
Post Office Building; November 18, 1965; (3) Belle Chasse--US Naval Air 
Station, Administration Building, Room 46, Office of the Senior Chief of 
Command; October 19, 1979.
    Sabine; Many--U.S. Post Office Building; 525 San Antonia Avenue; 
September 27, 1974.
    St. Helena; Greensburg--(1) Trailer at Post Office; College and Main 
Streets; August 19, 1972; (2) ASCS Office, Burrell Carter Building, 
Street Floor, South Main Street; October 19, 1979.
    St. Landry; Opelousas--Chattau Motor Inn, 400 East Landry, the Bayou 
Room; December 5, 1979.
    West Feliciana; (1) Saint Francisville--trailer at Post Office; 
November 3, 1965, through January 7, 1966; (2) Saint Francisville--Post 
Office Building; January 8, 1966; (3) Weyanoke--trailer located on State 
Highway 66 approximately 0.3 mile South of Weyanoke; February 14, 1966.

                               Mississippi

                County; Place for filing; Beginning date

Adams; Prentiss Inn, U.S. 61 S, Natchez, Mississippi 39121; (601) 442-
7524/25; September 17, 1991.

[[Page 330]]

    Amite; (1) Liberty--Walsh Building, Main Street, second floor; April 
3, 1967; (2) Gloster--Ivey Building, First Street; July 29, 1967.
    Benton; Ashland--Post Office Building; October 1, 1965.
    Bolivar; Cleveland--Post Office Building; October 1, 1965.
    Carroll; (1) Carrollton--Post Office Building, Main Street, January 
4, 1966, through March 22, 1968; (2) North Carollton--Van Meter Lumber 
Co. Building, George Street, March 23, 1968.
    Claiborne; (1) Port Gibson--McFatters Drug Store, Second Floor, 618 
Main Street; April 16, 1966, through October 9, 1969; (2) Port Gibson--
Federal Building, Room 111; October 10, 1969.
    Clay; (1) West Point--Post Office Building; October 1, 1965; (2) 
Pheba--rear of Champion Grocery Store; July 21, 1967.
    Coahoma; Clarksdale--Post Office Building; October 1, 1965.
    Copiah; Hazelhurst--W.S. Henley Building, 122 South Lowe Street; 
December 13, 1983.
    Covington; Collins--McLauren Building, FHA Conference Room; August 
10, 1979.
    De Soto; (1) Walls--U.S. Post Office; November 8, 1965, through 
January 4, 1966; (2) Hernando--U.S. Post Office; January 5, 1966; (3) 
Olive Branch--second floor above Post Office; July 22, 1967.
    Forrest; (1) Hattiesburg--U.S. Courthouse, corner of Pine and 
Forrest Streets, Room 6; June 8, 1967; (2) Petal--108 Ninth Avenue; 
September 16, 1967.
    Franklin; Meadville--Old Halford Building, Highway 84 East, one 
block from city square; April 3, 1967.
    Greene; Leakesville--FHA Conference Room, New Bank Annex, Main and 
Lafayette Street; August 10, 1979.
    Grenada; (1) Grenada--Post Office Building; July 22, 1966, through 
August 7, 1966; (2) Grenada--639 Union Street; August 8, 1966, through 
October 9, 1969; (3) Grenada--U.S. Post Office, basement, October 10, 
1969; (4) Tie Plant--trailer at site of Horseshoe Store two blocks west 
of Tie Plant School on dirt road; September 9, 1966.
    Hinds; (1) Jackson--301 Building, 301 North Lamar Street; November 
8, 1965, through January 2, 1966; (2) Jackson--Post Office Building, 245 
East Capitol Street; January 3, 1966; (3) Jackson--848 Lynch Street; 
June 22, 1966; (4) Raymond--U.S. Post Office; November 8, 1965.
    Holmes; (1) Lexington--U.S. Post Office; November 8, 1965; (2) 
Cruger--U.S. Post Office; July 29, 1967.
    Humphreys; (1) Belzoni--Post Office Building; October 1, 1965; (2) 
Louise--Post Office Building; June 21, 1966; (3) Isola--trailer at Post 
Office, August 23, 1971.
    Issaquena; Mayersville--trailer at Post Office; June 15, 1967.
    Jasper; Bay Springs--trailer at New Post Office; April 16, 1966.
    Jefferson; Fayette--Ball Drug Store Building, Main Street; November 
8, 1965.
    Jefferson Davis; (1) Prentiss--Magnolia Courts, intersection of U.S. 
Highway 84 and State Highway 42, Units 21 through 24; August 25, 1965, 
through August 26, 1965; (2) Prentiss--Post Office Building; August 27, 
1965.
    Jones; (1) Laurel--Federal Building, Room B-8; August 20, 1965; (2) 
Ellisville--102 Jasmine Street; September 16, 1967.
    Kemper; DeKalb--U.S. Post Office; Lobby; Seventh Street and Eighth 
Avenue; November 4, 1974.
    Leflore; (1) Greenwood--Post Office Building; August 10, 1965; (2) 
Minter City--trailer on lot on northwest side of Post Office; June 6, 
1967.
    Lowndes; Columbus--Ramada Inn, Room 153, Highway 45 North; August 
22, 1983.
    Madison; Canton--285 Peace Street; August 10, 1965.
    Marshall; Holly Springs--Post Office Building; August 8, 1967.
    Monroe; Sheliane Motel, Room 44, Highway 45 N, Aberdeen, 
Mississippi, 39730; (601) 369-2192/2193; September 17, 1991.
    Neshoba; Philadelphia--U.S. Post Office; November 8, 1965.
    Newton; (1) Newton--Post Office Building; January 4, 1966; (2) 
Decatur--building on Fourth Avenue across street from U.S. Post Office; 
July 29, 1967.
    Noxubee; (1) Macon--Post Office Building, Basement, Room 1; April 
16, 1966; (2) Brooksville--Jourdan Building, Front Street; July 29, 
1967.
    Oktibbeha; Starkville--Post Office Building, 302 University Drive; 
April 3, 1967.
    Pearl River; Picayune--Community Recreation Center; Library; Rosa 
and Beech Streets; June 8, 1974.
    Quitman; Marks--Corp of Engineers, Rogers Road; October 29, 1980.
    Rankin; (1) Brandon--Rankin Building, intersection of U.S. Highway 
80 and State Highway 18; April 16, 1966, through August 4, 1966; (2) 
Brandon--Nettles Drug Store Building, East Government Street; August 5, 
1966 through January 31, 1971; (3) Brandon--280 Government Street; 
February 1, 1971.
    Scott; Best Western, room 130, Interstate 20 and Highway 251, 
Forest, Mississippi, 39074; (601) 469-4031 or 3950; May 18, 1993.
    Sharkey; Rolling Fork--102 Elm Street; June 14, 1967.
    Simpson; (1) Mendenhall--Post Office Building; January 4, 1966; (2) 
Magee--Post Office Building, Ninth Avenue (between Eighth and Ninth 
Streets); January 10, 1966.
    Sunflower; (1) Indianola-Post Office Building; May 2, 1967; (2) 
Ruleville-U.S. Post Office, 120 South Ruby Avenue; June 16, 1983.

[[Page 331]]

    Tallahatchie; (1) Charleston--103 Market Street; August 23, 1971; 
(2) Sumner--Abbey Building, East Court Square; August 23, 1971.
    Tunica; Tunica--Department of Agriculture Building, Agricultural 
Conservation and Stabilization Service; South Side, Court Square; 
November 3, 1975.
    Warren; Vicksburg--Post Office and Courthouse Building, Crawford and 
Monroe Streets; January 4, 1966.
    Washington; Greenville--Room 204A Federal Building, Main Street and 
Poplar Street; August 8, 1983.
    Wilkinson; (1) Woodville--Post Office Building; August 8, 1967, to 
August 24, 1967; (2) Woodville--Odd Fellows Building; August 24, 1967.
    Winston; Louisville--Post Office Building; Basement, Room 6; April 
16, 1966.
    Yazoo; Yazoo City, 100 South Main Street; November 2, 1971.

                               New Mexico

                County; Place for filing; Beginning date.

    Chavez; Federal Building, 5th and Richardson Street, Roswell, New 
Mexico; December 17, 1984.
    Cibola; U.S. Forest Service, Mt. Taylor Ranger District, Cibola 
National Forest, 201 Roosevelt, Grants, New Mexico; December 17, 1984.
    Curry; Main Post Office, 417 Gidding, Room 203, Clovis, New Mexico; 
December 17, 1984.
    McKinley; Bureau of Indian Affairs, Eastern Navajo Agency, P.O. Box 
328, Crowpoint, New Mexico (25 miles north of Thoreau, 1 mile west of 
State Road 57); Bureau of Indian Affairs, Navajo Area Office, Federal 
Building, 3rd and Hill Streets, Gallup, New Mexico; December 17, 1984.
    Otero; U.S. Forest Service, Lincoln National Forest, Federal 
Building, 11th and New York Streets, Alamogordo, New Mexico; December 
17, 1984.
    Sandoval; Mobile unit on parking lot behind U.S. Post Office, Camino 
del Pueblo Road, Bernalillo, New Mexico; U.S. Forest Service, Cuba 
Ranger District, San Fe National Forest, State Highway 126 and South 
Main, Cuba, New Mexico. December 17, 1984.

                                New York

                County; Place for filing; Beginning date

    Bronx, Kings, and New York Counties, New York; 26 Federal Plaza, 
Room 29108, New York, New York.

                             North Carolina

                County; Place for filing; Beginning date

    Edgecombe; Tarboro--Room B3, U.S. Post Office, 525 Main Street, 
Tarboro, North Carolina; May 4, 1984.

                             South Carolina

                County; Place for filing; Beginning date

    Bamberg; Room 6, Farmers Home Administration, J. Carl Kershe 
Agriculture Building, Calhoun Street, Bamberg, South Carolina. October 
10, 1984.
    Calhoun; Room 5, 2nd Floor, 111 Harry C. Raysor Drive, St. Mathews, 
South Carolina. September 28, 1984.
    Chester; Chester Motor Lodge, Room 161, West End St. at By-pass, 
Chester, SC 29706, (803) 385-5511.
    Clarendon; Manning--Federal Building; November 8, 1965.
    Colleton; Soil Conservation Service, Room 203, 119 Benson Street, 
Walterboro, South Carolina. October 10, 1984.
    Darlington; Darlington--U.S. Post Office, 201 Pearl Street; November 
7, 1978.
    Dorchester; St. George--U.S. Post Office; November 8, 1965.
    Hampton; Farmers Home Administration, 1st Floor, 1003 Elm Street, 
Hampton, South Carolina. October 10, 1984.
    Marion; Marion--U.S. Post Office, 201 South Main Street, Conference 
Room; June 27, 1978.
    Richland; Room 1466, Strom Thurmond FOB, 1835 Assembly Street, 
Columbia, South Carolina. September 28, 1984.
    Williamsburg; ASCS Service Center, 208 Short Street, Kingstree, 
South Carolina. September 28, 1984.

                                  Texas

                County; Place for filing; Beginning date

    Atascosa; Pleasanton--Office of USDA, 803 North Bryant; October 29, 
1980.
    Bee; Beeville--Agriculture Plant and Animal Inspection Service; 
Basement, U.S. Post Office, 111 N. St. Mary's Street; November 2, 1976.
    Crockett; Ozona--Agricultural Stabilization and Conservation Office, 
801 Avenue E; August 12, 1978.
    Dallas; Dallas--OPM, Room 6B3, 1100 Commerce Street, Dallas, Texas, 
April 4, 1984.
    El Paso; El Paso--2211 East Missouri Avenue, Suite N300; November 7, 
1978.
    Fort Bend; Richmond--Agricultural Stabilization Conservation Office; 
May 1, 1976.
    Frio; Pearsall--Federal Building, 411 East Colorado Avenue; November 
2, 1976.
    Hidalgo--101 East 14th (West Entrance), Mission, Texas, 78572, (512) 
585-8380, November 8, 1988.
    La Salle; Cotulla--U.S. Border Patrol Station, Federal Building, 
North Main Street; November 2, 1976.
    Medina; Hondo--Agricultural Stabilization Conservation Office; 1703 
Avenue K; May 1, 1976.
    Reeves; Pecos--U.S. Post Office, U.S. Attorneys Office, Room 301; 
May 6, 1978.

[[Page 332]]

    Uvalde; Uvalde--Agricultural Stabilization Conservation Office; 119 
West South Street; May 1, 1976.
    Wilson; Floresville--Agricultural Stabilization Conservation Office; 
May 1, 1976.
      

                          Forms of Application

                                 alabama

                                  Front

                                               Form approved            
                                               Budget Bureau No. 50-R359

      Application To Be Listed Under the Voting Rights Act of 1966

State of Alabama    County of___________________________________________
Instructions to the Applicant: Please fill out this side of this form. 
If you need help in answering any question, the Examiner will help you.
    1. Name -------------- (First) -------------- (Middle) ------------
-- (Last)
    2. Age ----------
    3. Address ------------ (RFD or Street Number) ---------- (Street) 
---------- (City or Town) ---------- (State)
    4. How long have you lived in Alabama?
5. How long have you lived at the above address?________________________
    6. What is your precinct? ------ or ward? ------
    7. Are you now (1) on active duty in the Armed Forces of the United 
States or the Alabama National Guard, (2) an employee of the United 
States or the State of Alabama, or (3) a seaman or college student? ----
-- {time}  Yes  {time}  No
    8. (a) Are you now registered to vote in Alabama? ------ {time}  Yes  
{time}  No
    (b) Are you now listed under the Voting Rights Act? ------ {time}  
Yes  {time}  No
    9. Are you a citizen of the United States and of the State of 
Alabama? ------ {time}  Yes  {time}  No
Former Address__________________________________________________________
    10. Have you ever been convicted of a crime other than a traffic 
violation? -------- {time}  Yes  {time}  No
    11. Have you ever been declared legally insane by a court? ------ 
{time}  Yes  {time}  No

Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment.

                Stop Here. Take the Form to the Examiner

    I do solemnly swear (or affirm) that the information I have provided 
is true and correct to the best of my knowledge, information, and 
belief. I do further personally swear (or affirm) that I will support 
and defend the Constitution of the United States and the Constitution of 
the State of Alabama; and that I do not believe in nor am I affiliated 
with any group or party which advocated or advocates the overthrow of 
the Government of the United States or of the State of Alabama by 
unlawful means.
Signature (or mark) of Applicant________________________________________
Sworn to (or affirmed) and subscribed before me on this date____________
Examiner________________________________________________________________
                                     U.S. Office of Personnel Management
                                                          CSC Form 805-A
                                                 dagger August 1965

                                  Back

             Do not write on this side--for use by examiner

                      Additional Information Items

2. If applicant shows his age to be under 21, write in his date of birth
    4. If applicant shows that he has not lived in Alabama for one year, 
will he have lived in Alabama for one year by the date of the next 
election? ------ {time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    5. If applicant shows that he has not lived at his present address 
for six months, will he by the date of the next election have:
    Lived in the same county for six months? ------ {time}  Yes  {time}  
No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    Lived in his precinct or ward for three months? ------ {time}  Yes  
{time}  No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    Lived in the same city or town for three months? ------ {time}  Yes  
{time}  No
If yes, write in the date residence began_______________________________
--------------------
    7. If applicant answers yes, is his residence in Alabama and in his 
county for temporary purposes only? ------ {time}  Yes  {time}  No
If yes, write in his occupation_________________________________________
........................................................................
8. (a) If applicant shows that he is now registered to vote in Alabama, 
write in the county where he is registered______________________________
    (b) If applicant shows that he is now listed under the Voting Rights 
Act, write in the county where he is listed ------------ and certificate 
number if available ------------.
    10. If applicant answers yes, name the crime -------------------- 
Where and when convicted? -------------------- Was the conviction for a 
disqualifying crime? --------
{time}  Yes  {time}  No
    If a disqualifying crime, has applicant been pardoned with 
restoration of his right to vote? ------ {time}  Yes  {time}  No
If so pardoned, how and when?___________________________________________
........................................................................

[[Page 333]]

    11. If applicant answers yes, has he subsequently been declared 
legally sane or competent by a court? ------ {time}  Yes  {time}  No
If yes, when and by what court?_________________________________________
........................................................................
    Certificate of Eligibility Issued-No. ---------- Notification of 
Ineligibility Issue-No. ----------

                                 georgia

                                  Front

      Application To Be Listed Under the Voting Rights Act of 1965

                                               Form approved            
                                               Budget Bureau No. 50-R359
State of Georgia    County of___________________________________________
Instructions to the Applicant: Please fill out this side of this form. 
If you need help in answering any question, the Examiner will help you.
    1. Name -------------- (First) -------------- (Middle) ------------
-- (Last)
    2. Age ----------
    3. Address ------------ (RFD or Street Number) ---------- (Street) 
---------- (City or Town) ---------- (State)
4. How long have you lived in Georgia?__________________________________
5. How long have you lived at the above address?________________________
6. What is your election district?______________________________________
    7. Are you now on active duty in the Armed Forces of the United 
States? -------- {time}  Yes  {time}  No
    8. (a) Are you now registered to vote in Georgia? ------ {time}  Yes  
{time}  No
    (b) Are you now listed under the Voting Rights Act? ------ {time}  
Yes  {time}  No
    9. Are you a citizen of the United States and of the State of 
Georgia? ------ {time}  Yes    {time}  No
    10. Have you ever been convicted of a crime other than a traffic 
violation? -------- {time}  Yes  {time}  No
    11. Have you ever been declared legally insane or idiotic by a 
court? ------ {time}  Yes    {time}  No

Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment.

                Stop Here. Take the Form to the Examiner

    I do solemnly swear (or affirm) that I am not registered to vote 
under any other name; that I have correctly answered the questions 
appearing elsewhere on this application; that the information contained 
elsewhere on this application is true.
Signature (or mark) of applicant________________________________________
Sworn to (or affirmed) and subscribed before me this date_______________
Examiner________________________________________________________________
                                     U.S. Office of Personnel Management
                                                          CSC Form 805-G
                                                 dagger August 1965

                                  Back

           Do not write on this side--for use by the Examiner

                      Additional Information Items

    2. If applicant shows his age to be under 18, will he be 18 by the 
date of the next election? ------ {time}  Yes  {time}  No
Write in his date of birth______________________________________________
    4. If applicant shows that he has not lived in Georgia for one year, 
will he have lived in Georgia for one year by the date of the next 
election? ------ {time}  Yes  {time}  No
If yes, write in date residence began___________________________________
--------------------
Former address__________________________________________________________
    5. If applicant shows that he has not lived at his present address 
for six months, will he have lived within the same county for six months 
by the date of the next election? ------ {time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former address__________________________________________________________
    7. If applicant answers yes, is his residence in Georgia and in his 
county for temporary purposes only? ------ {time}  Yes  {time}  No
8. (a) If applicant shows that he is now registered to vote in Georgia, 
write in the county where he is registered______________________________
(b) If applicant shows that he is now listed under the Voting Rights 
Act, write in the county where he is listed ------------ and certificate 
number if available_____________________________________________________
    10. If applicant answers yes, name the crime -------------------- 
Where and when convicted? -------------------- Was the conviction for a 
disqualifying crime? --------
{time}  Yes  {time}  No
    If a disqualifying crime, has applicant been pardoned? ------{time}  
Yes  {time}  No
If so pardoned, where and when?_________________________________________
    11. If applicant answers yes, has he subsequently been declared 
legally sane or competent by a court? ------ {time}  Yes  {time}  No
If yes, when and by what court?_________________________________________
Certificate of Eligibility Issued--No. ---------- Notice of 
Ineligibility Issued--No._______________________________________________

                                louisiana

                                  Front

                                               Form approved            
                                               Budget Bureau No. 50-R359

      Application To Be Listed Under the Voting Rights Act of 1965

State of Louisiana Parish of____________________________________________
    Instructions to the applicant: Please fill out this side of this 
form. If you need help in answering questions 1 through 13, the Examiner 
will help you.
    1. Name -------------- (First) -------------- (Middle) ------------
-- (Last)
    2. Age ----------

[[Page 334]]

    3. Address ------------ (RFD or Street Number) ---------- (Street) 
---------- (City or Town) ---------- (State)
4. How long have you lived in Louisiana?________________________________
........................................................................
5. How long have you lived at the above address?________________________
6. What is your precinct and ward?______________________________________
    7. Are you now (1) on active duty in the Armed Forces of the United 
States or the Louisiana National Guard, (2) an employee of the United 
States or the State of Louisiana, or (3) a seaman or college student? --
---- {time}  Yes  {time}  No
    8. (a) Are you now registered to vote in Louisiana? ------ {time}  
Yes  {time}  No
    (b) Are you now listed under the Voting Rights Act? ------ {time}  
Yes  {time}  No
    9. Are you a citizen of the United States and of the State of 
Louisiana? ------ {time}  Yes  {time}  No
    10. Have you ever been convicted of a crime other than a traffic or 
game violation? ------ {time}  Yes  {time}  No
    11. Have you ever been dishonorably discharged from or are you a 
deserter from the Louisiana National Guard or militia or the military 
service of the United States? ------ {time}  Yes  {time}  No
    12. Have you ever been declared legally insane or incompetent by a 
court? ----------
{time}  Yes  {time}  No
    13. Are you now living in a charitable home or institution? ------ 
{time}  Yes  {time}  No
14. What is your political party preference?____________________________

Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment.

                Stop Here. Take the Form to the Examiner

    I do solemnly swear (or affirm) that I will faithfully and fully 
abide by all of the laws of the State of Louisiana, that I am well 
disposed to the good order and happiness of the State of Louisiana and 
of the United States, and that the information I have provided is true 
to the best of my knowledge and belief.
Signature (or mark) of applicant________________________________________
Sworn to (or affirmed) and subscribed before me this date_______________
Examiner________________________________________________________________
                                     U.S. Office of Personnel Management
                                                          CSC Form 805-L
                                                 dagger August 1965

                                  Back

             Do not write on this side--For use by examiner

                      Additional Information Items

    2. If the applicant shows his age to be under 21, will he be 21 by 
the date of the next election? ------ {time}  Yes  {time}  No
Write in his date of birth______________________________________________
    4. If the applicant shows that he has not lived in Louisiana for one 
year, will he have lived in Louisiana for one year by the date of the 
next election? ------ {time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    5. If applicant shows that he has not lived at his present address 
for six months, will he by the date of the next election have:
    Lived in the same parish for six months? ------ {time}  Yes  {time}  
No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    Lived in this precinct for three months? ------ {time}  Yes  {time}  
No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    Lived in the same town or city for four months? ------ {time}  Yes  
{time}  No
If yes, write in the date residence began_______________________________
--------------------
Former Address__________________________________________________________
    7. If applicant's answer is yes, is his residence in Louisiana and 
in his parish for temporary purposes only? ------
{time}  Yes    {time}  No
If yes, write in his occupation_________________________________________
8. (a) If applicant shows that he is now registered to vote in 
Louisiana, write in the parish where he is registered:__________________
(b) If applicant shows that he is now listed under the Voting Rights 
Act, write in the parish where he is listed -------------- and 
certificate number if available_________________________________________
10. If applicant answers yes, name the crime____________________________
Where and when convicted?_______________________________________________
    Was the conviction for a disqualifying crime? -------- {time}  Yes  
{time}  No
    If a disqualifying crime, has applicant been pardoned with express 
restoration of the right to vote? ------ {time}  Yes  {time}  No
If so pardoned, how and when?___________________________________________
........................................................................
11. If applicant answers yes, write in whether dishonorably discharged 
or a deserter?__________________________________________________________
    If dishonorably discharged, has he been reinstated? ------ {time}  
Yes  {time}  No
If yes, when and where?_________________________________________________
    If a deserter, has he returned to his command and made up his lost 
time? ----------
 {time}  Yes  {time}  No
If yes, when and where?_________________________________________________
    12. If applicant shows that he has been declared legally insane or 
incompetent by a court, has he subsequently been declared legally sane 
or competent by a court? --------
{time}  Yes  {time}  No
If yes, when and what court?____________________________________________
    13. If the applicant shows that he is now living in a charitable 
home or institution, is he disqualified? ------ {time}  Yes  {time}  No
Certificate of Eligibility Issued--No.__________________________________

[[Page 335]]

Notice of Ineligibility Issued--No._____________________________________

                               mississippi

                                  Front

                                               Form approved            
                                              Budget Bureau No. 50-RO436

      Application to be Listed Under the Voting Rights Act of 1965

State of Mississippi, County of_________________________________________
Instructions to the Applicant: Please fill out both sides of this form. 
If you need help in answering any question, the Examiner will help you.
    1. Name -------------- (First) -------------- (Middle) ------------
-- (Last)
2. Date of Birth________________________________________________________
3. Social Security No___________________________________________________
    4. Are you a citizen of the United States? ------ {time}  Yes  
{time}  No
    5. What is your present residence address and each place you have 
resided during the past year, stating when you lived at each place?
    (a) Present address -------------------- From ------------ to date.
    (b) Previous address -------------------- From ------------ to ----
--------
    (c) Previous address -------------------- From ------------ to ----
--------
(If you need additional space, use the back side of this form.)
    6. What is your election district? ------------ Beat -------------- 
Precinct -------------- City Ward ----------
    7. Are you now registered to vote in Mississippi? ------ {time}  Yes  
{time}  No
(a) When:_______________________________________________________________
(b) What county:________________________________________________________
(c) Address at that time:_______________________________________________
    8. Have you ever been convicted of a crime of murder, rape, bribery, 
theft, arson, obtaining money or goods under false pretenses, perjury, 
forgery, embezzlement or bigamy? ------ {time}  Yes  {time}  No
(a) Which crime?________________________________________________________
(b) When and where?_____________________________________________________
    Has the right to vote been restored? ------ {time}  Yes  {time}  No
If yes, when:___________________________________________________________
    9. Have you ever been declared legally insane by a court? ------ 
{time}  Yes  {time}  No
If yes, when:___________________________________________________________
Where:__________________________________________________________________
(a) When and where declared competent by a court:_______________________
10. (a) If you have a current driver's license, state its number and the 
address shown thereon:__________________________________________________
(b) If you own a motor vehicle, state license tag number and the county 
and State in which the vehicle is registered for ad valorem and road and 
bridge privilege tax purposes:__________________________________________
(c) If you filed an income tax return for the year immediately past, 
state the address on your most recent income tax return:________________
........................................................................
(d) If you own real property, state its location:_______________________
(e) If you are receiving homestead exemption on any real property, state 
the location of all such property:______________________________________
(f) If you are currently employed, state the location of the place where 
you actually report for work:___________________________________________
(g) State the location of any church affiliation or location of any 
other religious groups of which you are a member:_______________________
(h) State the location of the greater amount of your personal 
possessions:____________________________________________________________
(i) If you have a telephone, state its location and number:_____________
    11. Do you intend to make this precinct and county your fixed 
habitation, for a definite or indefinite length of time, to which you 
intend to return whenever absent? ------ {time}  Yes  {time}  No

Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment.

                Stop Here. Take the Form to the Examiner

    I do solemnly swear (or affirm) that I am at least eighteen (18) 
years old (or will be before the next election in this county), and that 
I am now in good faith a resident of this state and of ----------------
---- election precinct in this county and that I am not disqualified 
from voting by reason of having been convicted of any crime named in the 
Constitution of this state as a disqualification to be an elector; that 
I have truly answered all questions propounded to me in the foregoing 
application for registration; and that I will faithfully support the 
Constitution of the United States and of the State of Mississippi, and 
will bear true faith and allegiance to the same. So help me God.

Signature (or mark) of applicant________________________________________
Sworn to (or affirmed) and subscribed before me this date_______________
Examiner________________________________________________________________
                                     U.S. Office of Personnel Management
Certificate of Eligibility Issued--No.__________________________________
Notice of Ineligibility Issued--No._____________________________________
                                                          CSC Form 805-M
                                                   Revised February 1973

                                  Back

             Do not write on this side--for use by examiner

                      Additional Information Items

    2. If applicant shows his age to be under 21, will he be 21 by the 
date of the next election? ------ {time}  Yes  {time}  No
Write in his date of birth______________________________________________

[[Page 336]]

    5. If applicant shows that he has not lived in Mississippi for two 
years, will he have lived in Mississippi for two years by the date of 
the next election? ------ {time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former address__________________________________________________________
    6. If applicant shows that he has not lived at his present address 
one year, will he by the date of the next election have:
    Lived in the same election district for one year? ------ {time}  Yes  
{time}  No
    If applicant is a minister or minister's wife, for 6 months? ------ 
{time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former address__________________________________________________________
    Lived in the same city, town, or village for one year? ------ 
{time}  Yes  {time}  No
    If applicant is a minister or minister's wife, for 6 months? ------ 
{time}  Yes  {time}  No
If yes, write in the date residence began_______________________________
--------------------
Former address__________________________________________________________
8. (a) If applicant shows that he is now registered to vote in 
Mississippi, write in the county where he is registered_________________
(b) If applicant shows that he is now listed under the Voting Rights 
Act, write in the county where he is listed ---------------- and 
certificate number if available_________________________________________
    10. If applicant answers yes, was the conviction for bribery, 
burglary, theft, arson, perjury, forgery, embezzlement, bigamy, or 
obtaining money or goods under false pretenses? ------ {time}  Yes  
{time}  No
    If yes, answer the following questions:
Which crime?____________________________________________________________
When and where convicted?_______________________________________________
Has right to vote been restored by the legislature?_____________________
If so restored, when?___________________________________________________
    11. If applicant answers yes, has he subsequently been declared 
legally sane or competent by a court? ------ {time}  Yes  {time}  No
If yes, when and by what court?_________________________________________
Certificate of Eligibility Issued--No.__________________________________
Notice of Ineligibility Issued--No._____________________________________

                             south carolina

                                  Front

                                               Form approved            
                                               Budget Bureau No. 50-R359

      Application To Be Listed Under the Voting Rights Act of 1965

State of South Carolina County of_______________________________________

Instructions to the Applicant: Please fill out this side of this form. 
If you need help in answering any question, the Examiner will help you.
    1. Name -------------- (First) -------------- (Middle) ------------
-- (Last)
    2. Age ----------
    3. Address ------------ (RFD or street number) ---------- (Street) 
---------- (City or town) ---------- (State)
    4. (a) Are you a minister in charge of an organized church or the 
spouse of such a minister ------ {time}  Yes  {time}  No
    (b) Are you a teacher in a public school or the spouse of such a 
teacher ------ {time}  Yes    {time}  No
5. How long have you lived in South Carolina____________________________
6. How long have you lived at the above address_________________________
7. What is your ward and precinct_______________________________________
    8. Are you now (1) a student, (2) a seaman, (3) an employee of the 
United States, or (4) on active duty in the Armed Forces of the United 
States ------ {time}  Yes  {time}  No
    9. (a) Are you now registered to vote in South Carolina ------ 
{time}  Yes  {time}  No
    (b) Are you now listed under the Voting Rights Act ------ {time}  
Yes  {time}  No
    10. Are you a citizen of the United States and the State of South 
Carolina --------
{time}  Yes  {time}  No
    11. Have you ever been convicted of a crime other than a traffic 
violation -------- {time}  Yes  {time}  No
    12. Have you ever been declared legally insane, idiotic, or mentally 
incompetent by a court ------ {time}  Yes  {time}  No
    13. Are you a pauper receiving all your support from your county, 
town, or city government ------ {time}  Yes  {time}  No

Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment

                Stop Here--Take the Form to the Examiner

    I hereby solemnly swear (or affirm) that the information I have 
provided is true to the best of my knowledge and belief and I so 
certify.
Signature (or mark) of applicant________________________________________
........................................................................
Sworn to (or affirmed) and subscribed before me this date_______________
Examiner________________________________________________________________
                                     U.S. Office of Personnel Management

                      CSC Form 805-S, October 1965

                                  Back

             Do not write on this side--for use by examiner

                      Additional Information Items

    5. If the applicant shows that he has not lived in South Carolina 
for one year, will he have lived in South Carolina for one year by the 
next election (or six months if applicant is a minister in charge of an 
organized church or a teacher in a public school, or the spouse of 
either) ------ {time}  Yes  {time}  No

[[Page 337]]

If yes, write in the date when he began to live in South Carolina_______
Former address__________________________________________________________
    6. If the applicant (other than a minister, teacher, or spouse of 
either) shows that he has not lived at the same address for six months, 
will he by the date of the next election have:
    Lived in the same county for six months ------ {time}  Yes  {time}  
No
If yes, write in the date when he began to live in the county___________
Former address__________________________________________________________
    Lived in the same city or town for four months ------ {time}  Yes  
{time}  No
If yes, write in the date when he began to live in the city or town_____
Former address__________________________________________________________
    Lived in the same precinct for three months ------ {time}  Yes  
{time}  No
If yes, write in the date when he began to live in the precinct_________
Former address__________________________________________________________
    8. If applicant answers yes, is his residence in South Carolina and 
in his county for temporary purposes {time}  Yes  {time}  No
If yes, write in his occupation_________________________________________
9. (a) If applicant shows that he is now registered to vote in South 
Carolina, write in the county where he is registered____________________
(b) If applicant shows that he is now listed under the Voting Rights 
Act, write in the county where he is listed ---------------- and 
certificate number if available_________________________________________
11. If applicant answers yes, name the crime____________________________
Where and when convicted________________________________________________
    Was the conviction for a disqualifying crime ------ {time}  Yes  
{time}  No
    If a disqualifying crime, has the disqualification been removed by 
pardon of the Governor ------ {time}  Yes  {time}  No
If so pardoned, where, when and by whom_________________________________
    12. If the applicant shows that he has been declared legally insane, 
idiotic, or mentally incompetent by a court, has he subsequently been 
declared legally sane or mentally competent by a court ------ {time}  
Yes      {time}  No
If yes, when and by what court__________________________________________
13. If the applicant shows that he is a pauper receiving all of his 
support from his county, town, or city, write details here______________
Certificate of eligibility issued--No.__________________________________
Notice of ineligibility issued--No._____________________________________

                                  texas

                                  Front

                                                         Form approved  
                                                         OMB No. 50R0592

                      Voting Rights Act Application

    The information requested below is for the purpose of determining 
whether you are eligible to vote. If you are found eligible to vote, 
your name will be certified to appropriate state officials for addition 
to the official voting lists. The solicitation of this information for 
this purpose is authorized by the Voting Rights Act of 1965, as amended. 
While you are not required to respond, your cooperation is needed if you 
wish to be found eligible to vote.
    Instructions to the Applicant: Please fill out this side of this 
form. If you need help in answering any question, the Examiner will help 
you.
    1. Name -------------- (First) -------------- (Middle) ---------- 
(Last)  Maiden surname if married woman: ----------
    2. Sex: ----------
    3. Permanent residence address: -------------------- (Street and 
Apt. No., if any, or Route No. or location (Not P.O. Box)) ------------
-- (City) ---------- (ZIP code)
4. Election Precinct (if known):________________________________________
    5. Mailing address if different from above: -------------------- 
(Street or P.O. box) ---------- (City) ---------- (State) ---------- 
(ZIP code)
    6. Birthplace: City ---------- or county ---------- State ---------- 
or foreign country ----------
7. Birth date: Month ------ Day ------ Year ------If naturalized, give 
court of naturalization or its location:________________________________
    8. Former registration: If now registered in another Texas County: 
-------------------- (Name of county)
    Last residence address: -------------------- (Street and apt. No., 
if any) ---------- (City) ---------- (State) ---------- (ZIP code)
    The disclosure of social security number and telephone number is 
voluntary. Failure to state either or both numbers will NOT result in 
your application being deficient. The numbers will be used only to 
maintain the accuracy and integrity of the registration records.
    Social Security Number ---------- Telephone Number ----------
    Any willful false statement on this application is a Federal crime 
punishable by fine or imprisonment.
    STOP HERE.
    TAKE THE FORM TO THE EXAMINER.
    I do solemnly swear (or affirm) that I, the applicant, am 18 years 
of age or over, or will be 18 years of age or older within 60 days after 
applying for registration, and am a citizen of the United States, hold 
legal residence in this county, have met all legal requirements, and I 
understand that the giving of false information to procure the 
registration of a voter is a felony.
Signature (or mark) of applicant________________________________________
Signature of agent*_____________________________________________________
    *Agent must be a registered voter, and must be only: (Circle one 
applicable) Husband--Wife--Mother--Father--Son--Daughter
Sworn to (or affirmed) and subscribed to me this date___________________

[[Page 338]]

Examiner________________________________________________________________
                                     U.S. Office of Personnel Management
                                                          CSC FORM 805-T
                                                     April 1976         

                                  Back

             Do not write on this side--For use by examiner

                      Additional Information Items

    Texas law states that a person convicted of a felony and not 
subsequently pardoned, and a person adjudicated a lunatic or idiot and 
not subsequently adjudicated competent, are not qualified to vote. 
Therefore, the following questions must be asked.
    A. Have you ever been convicted of a felony: ------ {time}  Yes  
{time}  No
If applicant answers yes, name the crime________________________________
Where and when convicted________________________________________________
    Was the conviction for a disqualifying crime: ------ {time}  Yes  
{time}  No
    If a disqualifying crime, has applicant been pardoned with 
restoration of his right to vote: ------ {time}  Yes  {time}  No
If so pardoned, how and when____________________________________________
    B. Have you ever been declared to be an idiot or a lunatic by a 
court: ------ {time}  Yes    {time}  No
    If applicant answers yes, has he subsequently been declared legally 
sane or competent by a court: ------ {time}  Yes  {time}  No
If yes, when and by what court__________________________________________
Certificate of eligibility issued--No.__________________________________
Notice of ineligibility issued--No._____________________________________

(5 U.S.C. 1103; Secs. 7, 9, 79 Stat. 440, 411, 441 (42 U.S.C. 1973c, 
1973g))

[30 FR 9859, Aug. 7, 1965]

    Editorial Note: For Federal Register citations affecting this 
appendix A, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                         Appendix B to Part 801

    This appendix sets out the qualifications required for listing on an 
eligibility list.

                                 alabama

    A person is qualified to be listed as an eligible voter in elections 
in the State of Alabama, except municipal elections, if he has all the 
following qualifications at the time he applies for listing and if he 
takes the required oath or affirmation.
    (1) He is 21 years of age.
    (2) He is a citizen of the United States and of the State of 
Alabama.
    (3) He will have lived in the State of Alabama for one year, in his 
county for six months, and in his ward or precinct for three months by 
the date of the next election.
    (4) He has not been convicted of treason, murder, arson, 
embezzlement, malfeasance in office, larceny, receiving stolen property, 
obtaining property or money under false pretenses, perjury, subornation 
of perjury, robbery, assault with intent to rob, burglary, forgery, 
bribery, assault and battery on the wife, bigamy, living in adultery, 
sodomy, incest, rape, crime against nature, or any crime punishable by 
imprisonment in the penitentiary, or of any infamous crime or crime 
involving moral turpitude, or of vagrancy or being a tramp, or of 
selling or offering to sell his vote or the vote of another, or of 
buying or offering to buy the vote of another, or of making or offering 
to make a false return in any election by the people or in any primary 
election to procure the nomination or election of any person to any 
office, or of suborning any witness or registrar to secure the 
registration of any person as an elector, or if so convicted he has been 
subsequently pardoned with restoration of his right to vote specifically 
expressed in the pardon.
    (5) He has not been declared legally insane by a court, or if so 
declared he has subsequently been declared legally sane or competent by 
a court.
    (6) He is not otherwise registered or listed as eligible to vote in 
the county in which he applies for listing.
    A person who has all the above qualifications is also qualified to 
be listed as an eligible voter in municipal elections if he will have 
lived in his city or town for three months by the date of the next 
election.

                                 georgia

    A person is qualified to be listed as an eligible voter in elections 
in the State of Georgia, except municipal elections, if he has all the 
following qualifications at the time he applies for listing and if he 
takes the required oath or affirmation.
    (1) He will be 18 years of age by the date of the next election.
    (2) He is a citizen of the United States and of the State of 
Georgia.
    (3) He will have lived in the State of Georgia for 1 year and in his 
county for 6 months by the date of the next election.
    (4) He has not been convicted of treason against the State, 
embezzlement of public funds, malfeasance in office, bribery or larceny, 
or of any crime involving moral turpitude, punishable by the laws of 
Georgia with imprisonment in the penitentiary, or if so convicted he has 
been subsequently pardoned.
    (5) He has not been declared legally insane or idiotic by a court, 
or if so declared he has been subsequently declared legally sane or 
competent by a court.
    (6) He is not otherwise registered or listed as eligible to vote in 
the county in which he applies for listing.

[[Page 339]]

                                louisiana

    A person is qualified to be listed as an eligible voter in elections 
in the State of Louisiana, except municipal elections, if he has all the 
following qualifications at the time he applies for listing and if he 
takes the required oath or affirmation.
    (1) He will be 21 years of age by the date of the next election.
    (2) He is a citizen of the United States and of the State of 
Louisiana.
    (3) He will have lived in the State of Louisiana for one year, in 
his parish for six months, and in his precinct for three months by the 
date of the next election.
    (4)(a) He has not been convicted of any crime punishable by 
imprisonment in the penitentiary, or if so convicted he has been 
subsequently pardoned with the express restoration of the franchise, or 
(b) he has not been convicted of a felony, or if so convicted he has 
subsequently received a pardon and full restoration of franchise.
    (5) He has not been interdicted, that is, declared legally 
incompetent or insane by a court, or if so interdicted he has been 
subsequently restored to legal competency or sanity by a court.
    (6) He has not been dishonorably discharged from the Louisiana 
National Guard or the military service of the United States, or if so 
discharged he has been reinstated.
    (7) He is not a deserter from the military services of the United 
States or the militia of the State of Louisiana, when called forth by 
the Governor or, in time of invasion, insurrection, or rebellion, by the 
President of the United States, or if such a deserter, he has returned 
to the command from which he deserted, made good the time lost in 
desertion, and served out the term of his original enlistment.
    (8) He is not an inmate of any charitable institution, except the 
Soldiers Home and the United States Marine hospital at Carville.
    (9) He is not otherwise registered or listed as eligible to vote in 
the parish in which he applies for listing.
    A person who has all the above qualifications is qualified to be 
listed as an eligible voter in municipal elections if he will have lived 
in his city or town for four months by the date of the next election.

                               mississippi

    A person is qualified to be listed as an eligible voter in elections 
in the State of Mississippi, except municipal elections, if he has all 
the following qualifications at the time he applies for listing and 
takes the required oath or affirmation.
    (1) He will be 21 years of age by the date of the next election.
    (2) He is a citizen of the United States.
    (3) He will have lived in the State of Mississippi for two years by 
the date of the next election.
    (4) He will have lived in his election district or his city, town, 
village, or municipality for one year by the date of the next election. 
However, if the person is a minister or the wife of a minister of the 
Gospel in charge of an organized church, that person is qualified if he 
or she will have lived in the election district for six months by the 
date of the next election.
    (5) He has not been convicted of arson, bigamy, bribery, burglary, 
embezzlement, forgery, obtaining money or goods under false pretenses, 
perjury, or theft, or if so convicted his right to vote has been 
restored by the legislature.
    (6) He has not been declared legally insane by a court, or if so 
declared he has been subsequently declared legally sane or competent by 
a court.
    (7) He is not otherwise registered or listed as eligible to vote in 
the county in which he applies for listing.
    A person who has all the above qualifications is qualified to be 
listed as an eligible voter in municipal elections if he will have lived 
in his city, town, or village for one year by the date of the next 
election, unless he has, within two years before the next municipal 
election, been convicted within the municipality of violating the liquor 
laws of the State or the municipality. However, if the person is a 
minister or the wife of a minister of the Gospel in charge of an 
organized church, that person is qualified to be listed as an eligible 
voter in municipal elections if he or she will have lived in the city, 
town, or village for six months by the date of the next election.

                             south carolina

    A person is qualified to be listed as an eligible voter in elections 
in the State of South Carolina, except municipal elections, if he has 
all the following qualifications at the time he applies for listing and 
if he takes the required oath or affirmation.
    (1) He is 21 years of age.
    (2) He is a citizen of the United States and of the State of South 
Carolina.
    (3) He will have lived in the State of South Carolina for one year, 
in his county for six months, and in his precinct for three months by 
the date of the next election. However, if the person is a minister in 
charge of an organized church or a teacher in the public schools, or the 
spouse of such a minister or teacher, that person is qualified if he or 
she will have lived in the State of South Carolina for six months by the 
date of the next election.
    (4) He has not been convicted of burglary, arson, obtaining goods or 
money under false pretenses, perjury, forgery, robbery, bribery,

[[Page 340]]

adultery, bigamy, wife-beating, housebreaking, receiving stolen goods, 
breach of trust with fraudulent intent, fornication, sodomy, incest, 
assault with intent to ravish, larceny, challenging or accepting a 
challenge to duel with a deadly weapon, or crimes against the election 
laws, or if so convicted his right to vote has been restored by pardon.
    (5) He has not been declared legally insane, idiotic, or incompetent 
by a court, or if so declared he has subsequently been declared legally 
sane or competent by a court.
    (6) He is not a pauper supported at public expense.
    (7) He is not otherwise registered or listed as eligible to vote in 
the county in which he applies for listing.
    A person who has all the above qualifications is also qualified to 
be listed as an eligible voter in municipal elections if he will have 
lived in his city or town for four months by the date of the next 
election.

                                  texas

    A person is qualified to be listed as an eligible voter in elections 
in the State of Texas if he has all the following qualifications at the 
time he applies for listing and if he takes the required oath or 
affirmation.
    (1) He will be 18 years of age within 60 days after applying for 
registration.
    (2) He is a citizen of the United States.
    (3) He is a resident of the State of Texas.
    (4) He has not been convicted of a felony, or if so convicted, he 
has been subsequently restored to full citizenship and suffrage or 
pardoned.
    (5) He has not been declared an idiot or a lunatic by a court, or if 
so declared, he has been subsequently declared legally sane or competent 
by a court.
    (6) He is not otherwise registered or listed as eligible to vote in 
the county in which he applies for listing.

    Editorial Note: For Federal Register citations affecting this 
appendix B, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                         Appendix C to Part 801

    These are the addresses of each Examiner (State Supervisor), U.S. 
Office of Personnel Management.

                                 Alabama

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southeast Region, 75 Spring Street, SW., Atlanta, Georgia, 30303.

                                 Georgia

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southeast Region, 75 Spring Street, SW., Atlanta, Georgia, 30303.

                                Louisiana

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southwest Region, 610 South Street, Room 804, New Orleans, Louisiana, 
70130.

                               Mississippi

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southeast Region, 802 State Street, Room 403, Jackson, Mississippi, 
39201. Address effective December 1, 1979: 75 Spring Street, SW., 
Atlanta, Georgia, 30303.

                             South Carolina

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southeast Region, 75 Spring Street, SW., Atlanta, Georgia, 30303.

                                  Texas

    Examiner (State Supervisor), U.S. Office of Personnel Management, 
Southwest Region, 1100 Commerce Street, Room 4C24, Dallas, Texas, 75242.

(Reorganization Plan No. 2 of 1978 (43 FR 36037))

    Editorial Note: For Federal Register citations affecting this 
appendix C, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                         Appendix D to Part 801

    This appendix sets out the bases for loss of eligibility to vote and 
removal from an eligibility list.

                                 alabama

    A person loses his eligibility to vote in elections in the State of 
Alabama if:
    (1) He is no longer a legal resident of the State of Alabama or the 
county for which he is listed (a person may not vote in a county or 
precinct in which he is not a resident, but when a person removes from 
one precinct or ward to another precinct or ward within the same county, 
town, or city within three months before an election, he may vote in the 
precinct or ward from which he so removed);
    (2) He dies;
    (3) He is convicted of treason, murder, arson, embezzlement, 
malfeasance in office, larceny, receiving stolen property, obtaining 
property or money under false pretenses, perjury, subornation of 
perjury, robbery, assault with intent to rob, burglary, forgery, 
bribery, assault and battery on wife, bigamy, living in adultery, 
sodomy, incest, rape, crime against nature, or any crime punishable by 
imprisonment in the penitentiary, or of any infamous crime or crime 
involving moral turpitude, or vagrancy or being a tramp, or selling or 
offering to sell his vote

[[Page 341]]

or the vote of another, or of buying or offering to buy the vote of 
another, or of making or offering to make false return in any election 
by the people or in any primary election to procure the nomination or 
election of any person to any office, or of suborning any witness or 
registrar to secure the registration of any person as an elector, and 
has not been subsequently pardoned with restoration of his right to vote 
specifically expressed in the pardon;
    (4) He is declared legally insane by a court and has not been 
subsequently declared legally sane or competent by a court; or
    (5) He loses his citizenship in the United States or the State of 
Alabama.
    A person loses his eligibility to vote in municipal elections only, 
if he is no longer a legal resident of his city or town. Loss of 
eligibility to vote in a municipal election because of change of such 
residence does not result in loss of eligibility in any other election.

                                 georgia

    A person loses his eligibility to vote in elections in the State of 
Georgia if:
    (1) He is no longer a legal resident of the State of Georgia or the 
county for which he is listed;
    (2) He dies;
    (3) He is convicted of treason against the State, embezzlement of 
public funds, malfeasance in office, bribery or larceny, or of any crime 
involving moral turpitude, punishable by the laws of Georgia with 
imprisonment in the penitentiary, and has not been subsequently 
pardoned;
    (4) He is declared legally insane or idiotic by a court and has not 
been subsequently declared legally sane or competent by a court; or
    (5) He loses his citizenship in the United States or the State of 
Georgia.
    A person loses his eligibility to vote in municipal elections only, 
if he is no longer a legal resident of his city or town. Loss of 
eligibility to vote in a municipal election because of change of such 
residence does not result in loss of eligibility in any other election.

                                louisiana

    A person loses his eligibility to vote in elections in the State of 
Louisiana if:
    (1) He is no longer a legal resident of the State of Louisiana or 
the parish for which he is listed, however, the removal from one parish 
to another does not deprive a person of the right to remain listed in 
the parish from which he has removed for the purpose of voting for 
district officers to be elected in a district which includes the parish 
to which he has removed, or for State officers, whether the parish is in 
the same district or not, until he has acquired the right to register or 
be listed and vote for such officers in the parish to which he has 
removed (the removal of a person from one precinct to another in the 
same parish does not deprive him of his right to remain listed in the 
parish from which he has removed until three months after the removal);
    (2) He dies;
    (3)(a) He is convicted of any crime punishable by imprisonment in 
the penitentiary and has not been subsequently pardoned with the express 
restoration of the franchise, or (b) he is convicted of a felony and has 
not subsequently received a pardon and full restoration of franchise.
    (4) He is declared legally incompetent or insane by a court and has 
not been subsequently restored to legal competency or sanity by a court;
    (5) He is dishonorably discharged from the Louisiana National Guard 
or the military service of the United States and has not been 
reinstated;
    (6) He deserts from the military service of the United States or the 
militia of the State of Louisiana, when called forth by the Governor or, 
in time of invasion, insurrection, or rebellion, by the President of the 
United States and has not returned to the command from which he 
deserted, made good the time lost in desertion, and served out the term 
of his original enlistment;
    (7) He becomes an inmate of any charitable institution, except the 
Soldiers Home and the United States Marine Hospital at Carville; or
    (8) He loses his citizenship in the United States or the State of 
Louisiana.
    A person loses his eligibility to vote in municipal elections only, 
if he is no longer a legal resident of his city or town. Loss of 
eligibility to vote in a municipal election because of change of such 
residence does not result in loss of eligibility in any other election.

                               mississippi

    A person loses his eligibility to vote in elections in the State of 
Mississippi if:
    (1) He is no longer a legal resident of the State of Mississippi or 
the election district for which he is listed;
    (2) He dies;
    (3) He is convicted of arson, bigamy, bribery, burglary, 
embezzlement, forgery, obtaining money for goods under false pretenses, 
perjury, or theft and has not had his right to vote restored by the 
legislature;
    (4) He is declared legally insane by a court and has not been 
subsequently declared legally sane or competent by a court; or
    (5) He loses his citizenship in the United States.
    A person loses his eligibility to vote in municipal elections only, 
if he (1) is no longer a legal resident of his city or town, or (2) if 
he

[[Page 342]]

has, within two years before the next municipal election, been convicted 
within the municipality of violating the liquor laws of the State or the 
municipality, or (3) is at the time of the municipal election in default 
for taxes due the municipality for the two preceding years. Loss of 
eligibility to vote in a municipal election because of change of such 
residence or such conviction or such default in taxes does not result in 
loss of eligibility in any other election.

                             south carolina

    A person loses his eligibility to vote in elections in the State of 
South Carolina if:
    (1) He is no longer a legal resident of the State of South Carolina 
or the county for which he is listed;
    (2) He dies;
    (3) He is convicted of burglary, arson, obtaining goods or money 
under false pretenses, perjury, forgery, robbery, bribery, adultery, 
bigamy, wife-beating, housebreaking, receiving stolen goods, breach of 
trust with fraudulent intent, fornication, sodomy, incest, assault with 
intent to ravish, larceny, challenging or accepting a challenge to duel 
with a deadly weapon, or crimes against the election laws and his right 
to vote has not been restored by pardon;
    (4) He is declared legally insane, idiotic or incompetent by a court 
and has not subsequently been declared legally sane or competent by a 
court;
    (5) He becomes a pauper supported at public expense; or
    (6) He loses his citizenship in the United States or the State of 
South Carolina.
    A person loses his eligibility to vote in municipal elections only 
if he is no longer a legal resident of his city or town. Loss of 
eligibility to vote in a municipal election because of change of 
residence does not result in a loss of eligibility in any other 
election.
    (7) He fails to register in accordance with State law requiring 
general registration of all previously registered voters every 10th 
year. However, he does not lose his eligibility to vote if he has 
attempted to register in accordance with State law and his application 
was rejected without legal cause or solely because his prior 
registration was by listing by an Examiner.

                                  texas

    A person loses his eligibility to vote in elections in the State of 
Texas if:
    (1) He is no longer a citizen of the United States;
    (2) He is no longer a resident of the State of Texas;
    (3) He dies;
    (4) He is convicted of a felony;
    (5) He is adjudged by a court of being mentally incompetent; or
    (6) He has a change of name through marriage or judgment of a court, 
and fails to present his registration certificate to the registrar with 
a signed request that his name be changed on the registration records.
    A person loses his eligibility to vote in elections of the county, 
municipality, or other political subdivision only, if he is no longer a 
resident of the subdivision on the day of the election. Loss of 
eligibility to vote in an election of a county, municipality, or other 
subdivision does not result in loss of eligibility in any other 
elections.

                                  Texas

                     Forma Aprobada OMB No. 50R0592

               Solicitud Para Ejercer El Derecho Del Voto

    La informacion que se le pide a continuacio es con el objeto de 
determinar si usted es elegible para votar. Si se encuentra que usted es 
elegible, su nombre sera certificado para que los oficiales apropiados 
del Estado lo agreguen a las listas oficiales para la votacion. La 
autorizacion para solicitar la siguiente informacion esta basada en el 
Acta del Derecho de Votar, enmendada. No se le exige que responda a las 
preguntas que se le haran a continuacion, pero su cooperacion es 
necesaria si usted desea que se le clasifique elegible para voter.
    Instrucciones para el solicitante: Haga el favor de llenar los 
espacios en blanco con la informacion que se le pide. Si necesita ayuda 
para contestar alguna pregunta, el examinador le ayudara.
    1. Nombre -------------------- (Primer nombre) (Segundo nombre) 
(Apellido)
Si es casada escriba equi su apellido de soltera________________________
    2. Sexo Masculino: {time}     Femenino: {time} 
    3. Direccion permanente: ---------- (Calle y no. de su apartamento, 
calle rural o localida (no caja postal) Ciudad ---------- Zip code ----
----
4. Lugar donde votara: (si lo sabe)_____________________________________
    5. Direccion postal si es diferente de la mencionada arriba: Calle o 
Apartado Postal ---------- Ciudad ------ Estado ------ Zip code ------
    6. Lugar de nacimiento: Ciudad -------- o Condado -------- Estado --
------ o Pais --------
7. Fecha de nacimiento: Mes ---------- Dia ------ Ano ------ Si usted es 
Americano naturalizado, de el nombre de la corte o la localidad donde se 
naturalizo:_____________________________________________________________
8. Registracion previa: Si Ud. esta actualmente registrado en otro 
condado de Texas, de el nombre de ese condado___________________________
Cual fue su ultima direccion: ---------- (Ciudad) ---------- (Estado) --
-------- (Zip code)
    Es voluntario declarar su numero de Seguro Social y su numero de 
telefono. Si Ud. prefiere declarar solo uno de esos numeros o ninguno de 
los dos, esta bien, eso

[[Page 343]]

NO sera motivo para que su solicitud se considere incompleta. Esos 
numeros solo serviran para mantener la exactitud y la integridad de los 
archivos de este registro.
Numero de Seguro Social_________________________________________________
Numero de su telefono___________________________________________________
    Si usted, sabiendolo, da informacion falsa en esta solicitud, esta 
cometiendo un crimen Federal que puede ser castigado con una multa o con 
encarcenlamiento.

PARE AQUI.
LLEVE ESTA FORMA AL EXAMINADOR.

    Solemnemente juro (o afirmo) que yo, el solicitante, soy de 18 anos 
de edad o mayor, o que cumplire 18 anos dentro de 60 dias despues de la 
fecha en que he presentado esta solicitud, y que soy ciudadano de los 
Estados Unidos, mantengo residencia legal en este Condado, he llenado 
todos los requisitos legales y entiendo que el hecho de dar informacion 
falsa con el objeto de que se me registre para la votacion es un crimen.
  Firma (o marca) del solicitante_______________________________________
  Firma del agente*_____________________________________________________
    *El agente debe estar registrado para votar y debe ser: (Encierre en 
un circulo la palabra correspondiente)

                    Esposo--Madre--Padre--Hijo--Hija

Jurado (o afirmado) y firmado en mi presencia en esta fecha:____________
Examinador______________________________________________________________
Officina de Administracion de Personal de los Estados Unidos de America  

                                                          CSC Form 805-T
                                                      abril 1976        

                          Informacion Adicional

    La ley del Estado de Texas dice que una persona que ha sido convicta 
por haber cometido un crimen y que no ha sido perdonada, o una persona 
que ha sido declarada lunatica o idiota y por lo tanto no se le 
considera competente, no esta calificada para votar. Por esta razon las 
siguientes preguntas deben ser contestadas.
A. Ha sido Ud. alguna vez convicto por haber cometido un crimen: Si 
          {time}   No {time} 
Si su respuesta es si, diga cual fue el crimen --------------------_____
Donde y cuando fue usted convicto_______________________________________
Fue esta conviccion por un crimen que lo descalifica para votar? Si 
{time}   No {time} _____________________________________________________
Si su respuesta a la pregunta anterior es afirmativa, ha sido usted 
perdonado y se le ha devuelto su derecho de votar? Si {time}   No 
{time} 
Si ha sido perdonado, donde y cuando?___________________________________
B. Ha sido usted declarado por una corte idiota o lunatico? Si {time}   
          No {time} 
Si su respuesta es si, fue usted despues declarado por una corte sano o 
competente? Si {time}   No {time} 
Si su respuesta es si, diga cuando y en cual corte______________________
Numero del certificado de elegible______________________________________
Numero del certificado de inelegible____________________________________

                               Apendice B

    Este apendice enumera las calificaciones que re requiren para 
sercolocado en una lista de personas elegibles para votar.

                                  texas

    Una persona es considerada calificada para ser puesta en la lista de 
elegibles para votar en el Estado de Texas si llena los siguientes 
requisitos al momento de hacer su solicitud y si presta juramento (o 
afirmacion) que se requiere.
    (1) Debera cumplir 18 anos de edad dentro de0 dias despues de haber 
hecho la solicitud.
    (2) Debe ser ciudadano de los Estados Unidos.
    (3) Debe ser residente del Estado de Texas.
    (4) No ha sido convicto por un crimen, o si fue convicto alguna vez, 
se le han desde entonces restaurado sus derechos de ciudadania y 
sufragio o ha sido perdonado.
    (5) No ha sido declarado por la corte come idiota o lunatico, y si 
lo fue, ha side despues declarado legalmente sano o competente por una 
corte.
    (6) No esta registrado para votar en ningun otro lugar de este 
Condado.

                               Apendice D

    Este apendice enumera las razones por las cuales puede usted perder 
el derecho a votar o por las cuales se le puede quitar de la lista de 
elegibles para votar.

                                  texas

    Una persona pierde su derecho a votar en las elecciones en el Estado 
de Texas si:
    (1) Ha dejado de ser ciudadano de los Estados Unidos;
    (2) Ha dejado de ser un residente del Estado de Texas;
    (3) Ha fallecido;
    (4) Ha sido convicto por haber cometido un crimen;
    (5) Ha sido declarado en la corte de ser mentalmente incompetente;
    (6) Ha cambiado de nombre por razones de matrimonio o por otros 
procedimientos legales en una corte y ha fallado de presentar el 
certificado correspondiente al encargado, dicho certificado debe ser 
acompanado de una peticion firmada pidiendo que su nombre sea cambiado 
en los archivos de registro para votar.
    Una persona pierde su derecho a votar en las elecciones del condado, 
la municipalidad o cualquier otra sub-division politica solamente, si 
esa persona ha dejado de ser residente de ese lugar el dia de la 
eleccion. La perdida de su elegibilidad para votar en una eleccion de un 
condado, municipalidad o cualquier otra subdivision politica no resulta

[[Page 344]]

en la perdida del derecho a votar en otras elecciones.

    Autoridad: Los requisitos enumerados en esta Parte 801 emitidos bajo 
las secciones 7, 9, 79, Stat. 440; 42 U.S.C. 1973e, 1973g.

    Editorial Note: For Federal Register citations affecting this 
appendix D, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

[[Page 345]]



CHAPTER X--OFFICE OF COMMUNITY SERVICES, ADMINISTRATION FOR CHILDREN AND 
            FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES




  --------------------------------------------------------------------

Part                                                                Page
1080            Emergency Community Services Homeless Grant 
                    Program.................................         346

[[Page 346]]



PART 1080--EMERGENCY COMMUNITY SERVICES HOMELESS GRANT PROGRAM--Table of Contents




Sec.
1080.1  Scope.
1080.2  Definitions.
1080.3  Allocation of funds.
1080.4  Eligible use of funds.
1080.5  Application procedures for states.
1080.6  Funding of alternative organizations.
1080.7  Funding of Indian tribes.
1080.8  Reporting requirements.
1080.9  Other requirements.

    Authority: 42 U.S.C. 11302 (101 Stat. 485); 42 U.S.C. 11461-11464, 
11472 (101 Stat. 532-533), as amended.

    Source: 54 FR 6372, Feb. 9, 1989, unless otherwise noted.



Sec. 1080.1  Scope.

    This part applies to the Emergency Community Services Homeless Grant 
Program.



Sec. 1080.2  Definitions.

    (a) Homeless or homeless individual includes:
    (1) An individual who lacks a fixed, regular, and adequate nighttime 
residence; and
    (2) An individual who has a primary nighttime residence that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing for the mentally ill);
    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or
    (iii) A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.

The term homeless or homeless individual does not include any individual 
imprisoned or otherwise detained pursuant to an Act of the Congress or a 
State law.
    (b) Indian tribe means any tribe, band, nation, or other organized 
group or community of Indians, including any Alaska Native village or 
regional or village corporation (as defined in, or established pursuant 
to, the Alaska Native Claims Settlement Act), that is recognized by the 
Federal Government as eligible for special programs and services 
provided to Indians because of their status as Indians.
    (c) State includes the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, 
the Commonwealth of the Northern Mariana Islands, and the Republic of 
Palau.



Sec. 1080.3  Allocation of funds.

    From the amounts made available under the Emergency Community 
Services Homeless Grant Program, the Secretary shall make grants to 
States that administer programs under the Community Services Block Grant 
Act (42 U.S.C. 9901 et seq.), after taking into account the amount set 
aside for Indian tribes in Sec. 1080.7(a) of this chapter. Such grants 
shall be allocated to the States in accordance with the formula set 
forth in subsections (a) and (b) of section 674 of such Act (42 U.S.C. 
9903 (a) and (b)). No funds shall be allocated under subsection (c) of 
section 674 of such Act (42 U.S.C. 9903(c)).



Sec. 1080.4  Eligible use of funds.

    Amounts awarded under the Emergency Community Services Homeless 
Grant Program may be used only for the following purposes:
    (a) Expansion of comprehensive services to homeless individuals to 
provide follow-up and long-term services to help them make the 
transition out of poverty;
    (b) Renovation of buildings to be used to provide such services, 
except that not more than 50 percent of such amounts may be used for 
such purpose, and provided that all procedures required under the 
National Historic Preservation Act are followed;
    (c) Provision of assistance in obtaining social and maintenance 
services and income support services for homeless individuals;
    (d) Promotion of private sector and other assistance to homeless 
individuals; and
    (e) After October 1, 1988, provision of assistance to any individual 
who has received a notice of foreclosure, eviction, or termination of 
utility services, if--

[[Page 347]]

    (1) The inability of the individual to make mortgage, rental, or 
utility payments is due to a sudden reduction in income;
    (2) The assistance is necessary to avoid the foreclosure, eviction, 
or termination of utility services; and
    (3) There is a reasonable prospect that the individual will be able 
to resume the payments within a reasonable period of time.
    (f) Provision of, or referral to, violence counseling for homeless 
children and individuals, and the provision of violence counseling 
training to individuals who work with homeless children and individuals; 
and,
    (g) Not more than 5 percent of the amount received will be used to 
defray State administrative costs.

[54 FR 6372, Feb. 9, 1989, as amended at 57 FR 27946, June 23, 1992]



Sec. 1080.5  Application procedures for States.

    (a) Each State requesting funds under the Emergency Community 
Services Homeless Grant Program shall submit to the Office of Community 
Services an application for funds for each fiscal year, at a time 
established by the Secretary. Approval must be requested of and received 
from the Office of Community Services before a State may implement 
changes to the information requested by paragraph (b) of this section 
after an application has been approved.
    (b) The application may be in any format, but must include a 
description of the agencies, organizations, and activities that the 
State intends to support with the amounts received. In addition, the 
application must include the following assurances, signed by the 
Governor or his/her designee:
    (1) The State will award not less than 95 percent of the amounts it 
receives to:
    (i) Community action agencies and other organizations that are 
eligible to receive amounts under section 675(c)(2)(A) of the Community 
Services Block Grant Act (42 U.S.C. 9904(c)(2)(A));
    (ii) Organizations serving migrant and seasonal farmworkers; and
    (iii) Any organization to which a State, that applied for and 
received a waiver from the Secretary under Public Law 98-139, made a 
grant under the Community Services Block Grant Act (42 U.S.C. 9901 et 
seq.) for fiscal year 1984;
    (2) No amount received will be used to supplant other programs for 
homeless individuals administered by the State;
    (3) Not more than 5 percent of the amount received will be used to 
defray State administrative costs;
    (4) Every effort will be made to award the funds within 60 days of 
their receipt;
    (5) Not more than 25 percent of the amounts received will be used 
for the purpose described in Sec. 1080.4(e) of these regulations; and
    (6) The State will have mechanisms in place to assure coordination 
among State and local agencies serving the homeless. This will include 
coordination at the State level with the agency responsible for 
developing the Comprehensive Homeless Assistance Plan or the 
Comprehensive Housing Affordability Strategy as required by section 401 
of such Act (42 U.S.C. 11361), as amended by section 836 of the 
Cranston-Gonzalez National Affordable Housing Act.
    (7) The State will have procedures in place to assure compliance 
with the provisions of the National Historic Preservation Act prior to 
the awarding of any amounts to be used for renovating any properties 
that are listed on, or eligible for inclusion on, the National Register 
of Historic Places.

(Information collection requirements are approved by the Office of 
Management and Budget under control number 0970-0088)

[54 FR 6372, Feb. 9, 1989, as amended at 57 FR 27946, June 23, 1992]



Sec. 1080.6  Funding of alternative organizations.

    (a) If a State does not apply for or submits an approvable 
application for a grant under the Emergency Community Services Homeless 
Grant Program, the Secretary shall use the amounts that would have been 
allocated to that State to make grants to agencies and organizations in 
the State that meet the requirements of Sec. 1080.5(b)(1).

[[Page 348]]

    (b) The amounts allocated under this section in any fiscal year 
shall be awarded to eligible agencies and organizations in the same 
proportion as funds distributed to those agencies and organizations by 
the State for the previous fiscal year under the Community Services 
Block Grant Program (42 U.S.C. 9904(c)(2)(A)).
    (c) Agencies and organizations eligible to be funded under this 
section shall submit an application meeting the requirements of 
Secs. 1080.5(a) and 1080.5(b)(2), (3), (5), (6) and (7), at a time 
specified by the Secretary. If such an agency or organization does not 
apply for or submit an approvable application under this section, the 
funds that would have been allocated to them shall be reallocated by the 
Secretary to the remaining eligible agencies and organizations on a pro 
rata basis.

[54 FR 6372, Feb. 9, 1989, as amended at 57 FR 27946, June 23, 1992]



Sec. 1080.7  Funding of Indian tribes.

    (a) Not less than 1.5 percent of the funds provided in each fiscal 
year for the Emergency Community Services Homeless Grant Program shall 
be allocated by the Secretary directly to Indian tribes that have 
applied for and received a direct grant award under section 674(c) of 
the Community Services Block Grant Act (41 U.S.C. 9903(c)) for that 
fiscal year.
    (b) An Indian tribe funded under this section is not required to 
submit an application for Emergency Community Services Homeless Grant 
Program funds. A tribe's application for a direct grant award under 
section 674(c) of the Community Services Block Grant Act (42 U.S.C. 
9903(c)) that is submitted by September 1 for the succeeding fiscal year 
will be considered as an application for Emergency Community Services 
Homeless Grant Program funds for that fiscal year. Acceptance of the 
Community Services Block Grant application by the Office of Community 
Services will constitute approval of an award of funds under this 
section.
    (c) Funds allocated under this section shall be allotted to an 
Indian tribe in an amount that bears the same ratio to all the funds 
allocated under this section as the tribe's poverty population bears to 
the total poverty population of all tribes funded under this section, 
except that no tribe shall receive an amount of less than:
    (1) $500, for those tribes whose allocation under this section would 
otherwise be at least $1 but no more than $500; or
    (2) $1000, for those tribes whose allocation under this section 
would otherwise be at least $501 but less than $1000.
    (d) For purposes of this section, an Indian tribe's poverty 
population shall be calculated by multiplying the tribe's overall 
population by the Indian rural poverty rate for the State in which it is 
located, using the population and rural poverty rate figures established 
for the purposes of making direct grants under section 674(c) of the 
Community Services Block Grant Act (42 U.S.C. 9903(c)).



Sec. 1080.8  Reporting requirements.

    Each recipient of funds under the Emergency Community Services 
Homeless Grant Program shall submit an annual report to the Secretary, 
within 6 months of the end of the period covered by the report, on the 
expenditure of funds and the implementation of the program for that 
fiscal year.
    (a) The report is to state the types of activities funded, any 
efforts undertaken by the grantee and its subgrantees to coordinate 
homeless activities funded under this program with other homeless 
assistance activities in the State and communities, the number of 
individuals served and any impediments, including statutory and 
regulatory restrictions to homeless individuals' use of the program and 
to their obtaining services or benefits under the program.
    (b) Such annual report shall provide information on the use of funds 
to defray State administrative costs, including the types of activities 
which specifically address services to the homeless and also those 
activities that are related to the administrative costs associated with 
the coordination and integration of services to the homeless.
    (c) States shall also provide information in the annual report which 
details programs, progress, and activities that are specifically related 
to expenditures for renovation, including the effects of such activities 
on historic properties,

[[Page 349]]

and the provision of, or referral to, services for domestic violence.

(Information collection requirements are approved by the Office of 
Management and Budget under control number 0970-0088)

[57 FR 27946, June 23, 1992]



Sec. 1080.9  Other requirements.

    All recipients of grants under the Emergency Community Services 
Homeless Grant Program shall be subject to the following regulations 
applicable to the block grant programs in the Department of Health and 
Human Services:
    (a) 45 CFR part 96, subpart B, Sec. 96.12--Grant Payment, concerning 
the timing and method of disbursing grant awards;
    (b) 45 CFR part 96, subpart B, Sec. 96.14--Time Period for 
Obligation and Expenditure of Grant Funds, as amended, concerning the 
availability of grant funds;
    (c) 45 CFR part 96, subpart C--Financial Management, as amended, 
concerning financial management and audit requirements;
    (d) 45 CFR part 96, subpart E--Enforcement, as amended, concerning 
enforcement and complaint procedures; and
    (e) 45 CFR part 96, subpart F--Hearing Procedures, concerning 
hearing procedures.

[[Page 351]]



     CHAPTER XI--NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES




  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
1100            Statement for the guidance of the public--
                    organization, procedure and availability 
                    of information..........................         353
1105            Standards of conduct of employees...........         357
1110            Nondiscrimination in federally assisted 
                    programs................................         365
1115            Privacy Act regulations.....................         376
              SUBCHAPTER B--NATIONAL ENDOWMENT FOR THE ARTS

1150            Collection of claims under the Federal 
                    Claims Collection Act of 1966...........         380
1151            Nondiscrimination on the basis of handicap..         382
1152            Intergovernmental review of National 
                    Endowment for the Arts programs and 
                    activities..............................         391
1153            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the National 
                    Endowment for the Arts..................         394
1154            Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         400
1157            Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    state and local governments.............         419
1158            New restrictions on lobbying................         446
      SUBCHAPTER C--FEDERAL COUNCIL ON THE ARTS AND THE HUMANITIES

1160            Indemnities under the Arts and Artifacts 
                    Indemnity Act...........................         457
           SUBCHAPTER D--NATIONAL ENDOWMENT FOR THE HUMANITIES
1168            New restrictions on lobbying................         462

[[Page 352]]

1169            Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         473
1170            Nondiscrimination on the basis of handicap 
                    in federally assisted programs and 
                    activities..............................         491
1174            Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    state and local governments.............         503
1175            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the National 
                    Endowment for the Humanities............         530
1176            Part-time career employment.................         536
1177            Claims collection...........................         537
1178            Use of penalty mail in the location and 
                    recovery of missing children............         541
1179            Salary offset...............................         541
               SUBCHAPTER E--INSTITUTE OF MUSEUM SERVICES
1180            Grants regulations..........................         546
1181            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Institute of 
                    Museum Services.........................         567
1183            Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    state and local governments.............         572
1185            Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         600
1186--1199  
  [Reserved]

[[Page 353]]



                          SUBCHAPTER A--GENERAL





PART 1100--STATEMENT FOR THE GUIDANCE OF THE PUBLIC--ORGANIZATION, PROCEDURE AND AVAILABILITY OF INFORMATION--Table of Contents




Sec.
1100.1  Definitions.
1100.2  Organization.
1100.3  Availability of information to the public.
1100.4  Current index.
1100.5  Agency procedures for handling requests for documents.
1100.6  Fees.
1100.7  Foundation report of actions.

    Authority: 5 U.S.C. 552, as amended by Pub. L. 99-570, 100 Stat. 
3207.

    Source: 52 FR 48266, Dec. 21, 1987, unless otherwise noted.



Sec. 1100.1  Definitions.

    (a) Agency means the National Endownment for the Arts, the National 
Endowment for the Humanities, the Institute of Museum Services, or the 
Federal Council on the Arts and the Humanities.
    (b) Commercial use request means a request by or on behalf of anyone 
who seeks information for a use or purpose that furthers the commercial 
trade or profit interests of the requestor (or the person on whose 
behalf the request is made.) The agency must determined the use to which 
a requestor will put the document. Where the agency has reasonable cause 
to doubt the use to which a requestor will put the records sought or the 
use is not clear from the request, the agency may seek additional 
clarification. The requestor fears the burden of demonstrating the use 
or purpose of the information requested.
    (c) Direct costs mens those expenditures which an agency actually 
incurs in searching for and duplication documents to respond to a 
Freedom of Information Act (FOIA) request. In the case of commercial use 
requests, the term shall also include expenditures for reviewing 
documents.
    (d) Duplication means the process of making a copy of a document 
necessary to respond to a FOIA request. Such copies may be in the form 
of paper, microfilm, machine readable documents, or other materials.
    (e) Educational institution means a preschool, elementary, or 
secondary school, an institution of graduate or undergraduate higher 
education, an institution of professional education, or an institution 
of vocational education, which operates a program or programs of 
scholarly research.
    (f) Non-commercial scientific institution means an institution that 
is not operated on a ``commercial use'' basis as defined in paragraph 
(b) of this section and which is operated solely for the purposes of 
conducting scientific research the results of which are not intended to 
promote any particular product or industry.
    (g) Representative of the news media means any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast information that is about current events or that would be 
of current interest to the public. Freelance journalists may be regarded 
as working for a news organization if they can demonstrate a sound basis 
for expecting publication though that organization, even though not 
actually employed by it.
    (h) Review means the process of examining a document located in 
response to a commercial use request to determine whether any portion is 
permitted to be withheld. Review includes processing documents for 
disclosure, including all that is necessary to excise them and otherwise 
prepare them for release. Review does not include time spent resolving 
general legal or policy issues regarding the application of exemptions.
    (i) Search means all the time that is spent looking for material 
that responds to a request, including page-by-page or line-by-line 
identification of material in documents. Searches may be done manually 
or by computer using exisiting programs.



Sec. 1100.2  Organization.

    The National Foundation on the Arts and the Humanities was 
established by the National Foundation on the Arts

[[Page 354]]

and the Humanities Act of 1965, 20 U.S.C. 951 et seq. The Foundation is 
composed of the National Endowment for the Arts, the National Endowment 
for the Humanities, the Institute of Museum Services, and the Federal 
Council on the Arts and the Humanities. The Institute of Museum Services 
became a part of the National Foundation on the Arts and the Humanities 
pursuant to Pub. L. 97-394 (December 30, 1982) and Pub. L. 98-306 (May 
31, 1984). Each Endowment is headed by a Chairman and has an advisory 
national council composed of 26 presidential appointees. The Institute 
of Museum Services is headed by a Director and has a National Museum 
Services Board composed of 15 presidential appointees. The Federal 
Council on the Arts and the Humanities, comprised of Executive branch 
officials and appointees of the legislative branch, is authorized to 
make agreements to indemnify against loss or damage for certain 
exhibitions and advise on arts and humanities matters.



Sec. 1100.3  Availability of information to the public.

    (a) All inquiries, or requests should be addressed to the 
appropriate agency. Descriptive brochures of the organization, programs, 
and function of each agency are available upon request. Inquiries 
involving work of the National Endowment for the Arts should be 
addressed to the National Endowment for the Arts, 1100 Pennsylvania 
Avenue, NW., Washington, DC 20506. The telephone number of the National 
Endowment for the Arts is (202) 682-5400. Requests or inquiries 
involving the National Endowment for the Humanities should be addressed 
to the National Endowment for the Humanities, 1100 Pennsylvania Avenue, 
NW., Washington, DC 20506. The telephone number of the National 
Endowment for the Humanities is (202) 786-0310. Requests or inquiries 
involving the Institute of Museum Services should be addressed to the 
Institute of Museum Services, 1100 Pennsylvania Avenue, NW., Washington, 
DC 20506. The telephone number of the Institute of Museum Services is 
(202) 786-0536.
    (b) The head of each agency is responsible for the effective 
administration of the Freedom of Information Act. The head of each 
agency pursuant to this responsibility hereby directs that every effort 
be expended to facilitate service to the public with respect to the 
obtaining of information and records.
    (c) Requests for access to records of the National Endowment for the 
Arts, the National Endowment for the Humanities, or the Institute of 
Museum Services may be filed by mail with the General Counsel of the 
National Endowment for the Arts, the Deputy Chairman of the National 
Endowment for the Humanities, or the Public Affairs Officer of the 
Institute of Museum Services, as is appropriate. Requests for access to 
records of the Federal Council on the Arts and the Humanities should be 
directed to the attention of the National Endowment for the Humanities. 
All requests should reasonably describe the record or records sought. 
Requests submitted should be clearly identified as being made pursuant 
to the Freedom of Information Act.



Sec. 1100.4  Current index.

    Each agency shall maintain and make available for public inspection 
and copying a current index providing identifying information for the 
public as to any matter which is issued, adopted, or promulgated and 
which is required to be made available pursuant to 5 U.S.C. 552(a) (1) 
and (2). Publication and distribution of such indices has been 
determined by the Foundation to be unnecessary and impracticable. The 
indices will be provided upon request at a cost not to exceed the direct 
cost of the duplication.



Sec. 1100.5  Agency procedures for handling requests for documents.

    (a) Upon receiving a request for documents in accordance with the 
rules of this part, the General Counsel of the National Endowment for 
the Arts, Deputy Chairman of the National Endowment for the Humanities, 
or the Public Affairs Officer of the Institute of Museum Services, as is 
appropriate, shall determine whether or not the request shall be granted 
in whole or in part.

[[Page 355]]

    (1) The determination shall be made within ten (10) days (excepting 
Saturdays, Sundays, and legal holidays) after receipt of such request.
    (2) The requestor shall be notified of the determination and the 
reasons that support it. When a request is denied in whole or in part, 
the requestor, will be notified of his or her rights to appeal the 
determination to the head of the agency.
    (b)(1) Any party whose request for documents has been denied in 
whole or in part may file an appeal no later than ten (10) working days 
following receipt of the notification of denial. Appeals must be 
addressed to the Chairman, National Endowment for the Arts, Washington, 
DC 20506, the Chairman, National Endowment for the Humanities, 
Washington, DC 20506, or the Director Institute of Museum Services, 
Washington, DC 20506, as is appropriate.
    (2) The head of the agency or his delegatee shall make a 
determination with respect to the appeal within twenty (20) days 
(excepting Saturdays, Sundays, and legal holidays) after the agency has 
received the appeal, except as provided in paragraph (c) of this 
section. If, on appeal, the denial is upheld either in whole or in part, 
the head of the agency shall notify the party submitting the appeal of 
the judicial review provisions of 5 U.S.C. 552(a)(4)(B).
    (c) In unusual circumstances, the time limits prescribed to 
determine a request for documents with respect to initial actions or 
actions on appeal may be extended by written notice from the General 
Counsel of the National Endowment for the Arts, the Deputy Chairman of 
the National Endowment for the Humanities, or the Public Affairs Officer 
of the Institute of Museum Services as is appropriate. The notice shall 
describe the reason for the extension and the date on which the 
determination is expected to be made. No notice shall specify a date 
that would result in an extension of more than ten (10) days (excepting 
Saturdays, Sundays, and legal holidays). As is used in this paragraph, 
unusual circumstances means:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
volumious amount of separate and distinct records which are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more components of the 
agency having a substantial subject-matter interest in the request.



Sec. 1100.6  Fees.

    (a) Categories of fees. Fees will be charged according to the 
Category of the FOIA request.
    (1) Commercial use requests. The agency will assess charges to 
recover the full direct cost of searching for, reviewing, and 
duplicating the requested document. The agency may recover the cost of 
searching for and reviewing records even if there is ultimately no 
disclosure.
    (2) Requests from educational and non-commercial scientific 
institutions. The agency will charge for duplication costs. To qualify 
for this category the requestor must show: (i) That requested records 
are being sought under the auspices of a qualified institution as 
defined in Sec. 1100.1 (e) or (f) of this part; (ii) the records are not 
sought for commercial use; and (iii) the records are being sought in 
furtherance of scholarly or scientific research of the institution.
    (3) Requests by representatives of the news media. The agency will 
charge duplication costs for the requests in this category.
    (4) All other requests. All other requests shall be charged fees 
which, recover the full reasonable cost for searching for and 
duplicating the requested records.
    (b) General fee schedule. The agency shall use the most efficient 
and least costly method to comply with requests for documents made under 
the FOIA. The agency will charge fees to recover all allowable direct 
costs incurred. The agency may charge fees for searching for and 
reviewing requested documents even if the documents are determined

[[Page 356]]

to be exempt from disclosure or cannot be located. If search charges are 
likely to exceed $25, the agency shall notify the requestor, unless the 
requestor has indicated in advance the willingness to pay higher fees. 
The following fees shall be charged in accordance with paragraph (a) of 
this section.
    (1) Searches--(i) Manual. The fee charged will be the salary rate(s) 
(i.e., basic pay plus 16.1 percent) of the employee(s) conducting the 
search.
    (ii) Computer. The fee charged will be the actual direct cost of 
providing the service including the cost of operating the central 
processing unit for the operating time that is directly attributed to 
searching for records responsive to a request and the operator/
programmer salary apportionable to the search.
    (2) Review. The fee charged will equal the salary rate(s) (basic pay 
plus 16.1 percent) of the employee(s) conducting the review.
    (3) Duplication. Copies of documents photocopied on one-side of a 
8\1/2\ x 11 inch sheet of paper will be provided at $.10 per page. 
Photocopies on two sides of a single 8\1/2\ x 11 inch sheet of paper 
will be provided at $.20 per page. For duplication of other materials, 
the charge will be the direct cost of duplication.
    (c) Restrictions on charging fees. (1) Except for documents provided 
in response to a commercial use request, the first 100 pages of 
duplication or the first two (2) hours of search time shall be provided 
at no charge. For the purposes of this section, two (2) hours of search 
time by computer entitles the requestor to two (2) hours of computer 
operator salary translated into computer search costs. Computer search 
costs consist of operator salary plus central proceeding unit operating 
time costs for the duration of the search.
    (2) Fees shall not be charged to any requestor, including commercial 
use requestors, if the cost of collecting a fee would be equal to or 
greater than the fee itself.
    (d) Waiver or reduction of fees. (1) Documents shall be furnished 
without charge or at reduced charge if disclosure of the information is 
in the public interest because it is likely to contribute significantly 
to public understanding of the operations or activities of the 
government and is not primarily in the commercial interest of the 
requestor.
    (2) The following factors shall be used to determine whether a fee 
will be waived or reduced:
    (i) The subject of the request. Whether the subject of the requested 
records concerns ``the operations or activities of the government'';
    (ii) The informative value of the information to be disclosed. 
Whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (iii) The contribution to an understanding of the subject by the 
general public likely to result from disclosure. Whether disclosure of 
the requested information will contribute to ``public understanding'';
    (iv) The significance of the contribution to public understanding. 
Whether disclosure is likely to contribute ``significantly'' to public 
understanding of government operations or activities;
    (v) The existence and magnitude of a commercial interest. Whether 
the requestor has a commercial interest that would be furthered by the 
disclosure; and if so
    (vi) The primary interest in disclosure. Whether the magnitude of 
the identified commercial interest of the requestor is sufficiently 
large in comparison with the public interest in disclosure, that 
disclosure is ``primarily in the commercial interest of the requester.''
    (e) Assessment and collection of fees. (1) Interest will accrue from 
the date the bill is mailed if the fee is not paid within thirty (30) 
days. Interest will be assessed at the rate prescribed in 31 U.S.C. 
3717.
    (2) If the agency reasonably believes that a requestor(s) is making 
multiple requests to avoid the assessment of fees, the agency may 
aggregate such requests and charge accordingly.
    (3) The agency may request an advance payment of the fee if
    (i) The allowable charges are likely to exceed $250; or
    (ii) The requestor has failed previously to pay a fee in a timely 
fashion.
    (4) When the agency requests an advance payment, the time limits 
prescribed in section (a)(6) of the Freedom

[[Page 357]]

of Information Act will begin only after the agency has received full 
payment.



Sec. 1100.7  Foundation report of actions.

    On or before March 1 of each calendar year, each member agency of 
the National Foundation on the Arts and the Humanities shall submit a 
report of its activities with regard to public information requests 
during the preceding calendar year to the Speaker of the House of 
Representatives and to the President of the Senate. The report shall 
include:
    (a) The number of determinations made by each member agency of the 
National Foundation on the Arts and the Humanities not to comply with 
requests for records made to the agency under the provisions of this 
part and the reasons for each such determination;
    (b) The number of appeals made by persons under such provision, the 
result of such appeals, and the reasons for the action upon each appeal 
that results in the denial of information;
    (c) The names and titles or positions of each person responsible for 
the denial of records requested under the provisions of this part and 
the number of instances of participation for each;
    (d) The results of each proceeding conducted pursuant to 5 U.S.C. 
552(a)(4)(F), as amended, including a report of the disciplinary action 
taken against the officer of employee who was primarily responsible for 
improperly withholding records or an explanation of why disciplinary 
action was not taken;
    (e) A copy of every rule made by the Foundation implementing the 
provisions of the FOIA.
    (f) A copy of the fee schedule and the total amount of fees 
collected by the agency for making records available under this section; 
and
    (g) Such other information as indicates efforts to administer the 
provisions of the FOIA, as amended.



PART 1105--STANDARDS OF CONDUCT OF EMPLOYEES--Table of Contents




Sec.
1105.735-1  Purpose.
1105.735-2  Scope.
1105.735-3  Definitions.
1105.735-4  Statutory provisions.
1105.735-5  Conflicts-of-Interest Counselor.
1105.735-6  Statements of employment and financial interests.
1105.735-7  Employee conduct.
1105.735-8  Presenting grievances to Congress.

Appendix to Part 1105--Related Statutory Provisions

    Authority: E.O. 11222 of May 8, 1965, 3 CFR, 1965 Supp.; 5 CFR 
735.104.

    Source: 32 FR 17663, Dec. 12, 1967, unless otherwise noted.



Sec. 1105.735-1   Purpose.

    While confident of the integrity and sense of responsibility of the 
employees of the National Endowment for the Arts and the National 
Endowment for the Humanities, it is essential to the Government and to 
the conduct of the business of the National Endowment for the Arts and 
the National Endowment for the Humanities that unusually high standards 
of honesty, integrity, impartiality, and conduct be maintained by 
employees of the Endowments. In accordance with these concepts, this 
part sets forth policies and procedures of the Endowments with respect 
to employee conduct, certain permissible and prohibited outside 
activities, and possible conflicts-of-interest situations.



Sec. 1105.735-2   Scope.

    The policies and procedures contained in this part apply to all 
employees of the Endowments, except that specific provision is made in 
Sec. 1105.735-6-(b) for the filing of Statements of Employment and 
Financial Interests by special Government employees.



Sec. 1105.735-3   Definitions.

    (a) Employee means an officer or employee of the National Endowment 
for the Arts or the National Endowment for the Humanities or a member of 
the shared staff of both Endowments. The term employee includes both a 
regular employee (as defined in this section) and a special Government 
employee unless expressly qualified.
    (b) Regular employee means a person holding an appointment in the 
competitive or excepted service, occupying

[[Page 358]]

a position on the staff of either Endowment or the shared staff of both 
Endowments, without regard to assigned working schedule (that is, 
including full-time, part-time and intermittent schedules), but 
excluding all special Government employees who have not been designated 
as regular employees by the Chairman of either Endowment for purposes of 
these regulations.
    (c) Full-time employee means a regular employee with an assigned 
full-time working schedule.
    (d) Part-time employee means a regular employee with an assigned 
part-time (less than 40 hours a week) work schedule.
    (e) Intermittent employee means a regular employee with an assigned 
intermittent working schedule.
    (f) Shared staff and joint employees mean employees performing 
services for both Endowments on a shared basis.
    (g) Special Government employee means a special Government employee 
as defined in section 202 of title 18 of the United States Code who is 
employed by the National Endowment for the Arts or the National 
Endowment for the Humanities, or by both Endowments jointly.
    (h) Endowment means either the National Endowment for the Arts or 
the National Endowment for the Humanities.
    (i) Foundation means the National Foundation on the Arts and the 
Humanities.
    (j) Chairman means the Chairman of the National Endowment for the 
Arts, or the Chairman of the National Endowment for the Humanities.

(Sec. 10, 79 Stat. 852 as amended 82 Stat. 186, 84 Stat. 443 (20 U.S.C. 
959))

[38 FR 3511, Feb. 7, 1973]



Sec. 1105.735-4   Statutory provisions.

    Each employee is responsible for acquainting himself not only with 
the provisions of this part, but also with applicable portions of each 
Federal statute relating to his conduct as an employee of the National 
Endowment for the Arts or the National Endowment for the Humanities and 
of the U.S. Government. This part will be called to the attention of all 
employees by the Administrative Officer of the Foundation at least once 
a year and he will provide a copy of the part to each new employee who 
joins either the National Endowment for the Arts or the National 
Endowment for the Humanities or becomes a member of the shared staff. (A 
list of pertinent statutes is provided in the Appendix to this part.)



Sec. 1105.735-5   Conflicts-of-Interest Counselor.

    (a) Conflicts-of-Interest Counselor. The General Counsel of the 
Foundation is designated the Conflicts-of-Interest Counselor, with 
responsibility for providing, on request from any employee, counsel 
regarding conflicts-of-interest regulations and requirements, as well as 
their applicability in particular situations. Each employee is 
responsible for seeking the advice of the Conflicts-of-Interest 
Counselor whenever it appears that he may be, or may become, involved in 
a possible conflicts-of-interest situation. Any supervisor may refer to 
the Conflicts-of-Interest Counselor any possible conflicts-of-interest 
situation involving a subordinate of his whenever he deems such action 
appropriate. In such cases, the subordinate concerned shall be informed 
that the matter has been referred for consideration and shall be 
afforded the opportunity to state his case. The General Counsel of the 
Foundation is responsible for reviewing conflicts-of-interest matters 
brought to his attention and for attempting to work with the employees 
concerned in resolving such situations, and for offering employees an 
opportunity to explain any conflict or appearance of conflict. Matters 
which cannot be satisfactorily resolved in this manner will be referred 
to the Chairman of the Endowment concerned, or, in the case of a share 
staff member, to the Chairmen of both Endowments, for decision and 
appropriate action. Remedial action, whether disciplinary or otherwise, 
shall be effected in accordance with any applicable laws, Executive 
orders, and regulations.
    (b) Disciplinary and other remedial actions. When there is a final 
decision that a conflicts-of-interest situation requires disciplinary or 
other remedial action, such action shall be taken promptly to end the 
conflict or appearance of conflict of interest and to carry

[[Page 359]]

out any appropriate disciplinary measure. Any action taken, whether 
disciplinary or otherwise, shall be effected in accordance with 
applicable laws, Executive orders, Civil Service Commission regulations 
and the regulations in this part. The action taken may involve, among 
other things:
    (1) Divestment by the employee of his conflicting interest;
    (2) Changes in existing duties;
    (3) Disqualification for a particular assignment;
    (4) Appropriate disciplinary action, up to and including removal.

[32 FR 17663, Dec. 12, 1967, as amended at 33 FR 494, Jan. 13, 1968]



Sec. 1105.735-6   Statements of employment and financial interests.

    (a) Employees other than special Government employees--(1) General 
requirement. Statements of employment and financial interests are 
required of all Federal employees occupying positions at or above Grade 
16 or the equivalent, as well as all employees occupying positions which 
either require the exercise of judgment in making a Government decision, 
or in taking Government action with regard to:
    (i) Contracting or procurement;
    (ii) Administering or monitoring grants or subsidies;
    (iii) Regulating or auditing private or other non-Federal 
enterprises;
    (iv) Other activities where the decision or action has an economic 
impact on the interest of a particular non-Federal enterprise; or

require the incumbent to report in order to avoid involvement in a 
possible conflicts-of-interest situation and carry out the purpose of 
law.
    (2) Requirements of the National Endowment for the Arts and the 
National Endowment for the Humanities. In order to fulfill the 
Endowments' obligations under the general Government requirement 
described in paragraph (a)(1) of this section, it has been determined 
that a Statement of Employment and Financial Interests must be completed 
and submitted in accordance with the procedures set forth in this 
section by employees occupying the following positions:
    (i) National Endowment for the Arts:
    (a) Deputy chairman.
    (b) All special assistants to the chairman and deputy chairman.
    (c) All program, division and office directors.
    (ii) National Endowment for the Humanities:
    (a) Deputy chairman.
    (b) All assistants (including special assistants) to the chairman 
and deputy chairman.
    (c) All program and office directors (but not including the Public 
Information Director).
    (d) All program officers classified at GS-13 and above.
    (iii) Shared staff:
    (a) All attorneys.
    (b) Director and Assistant Director of Administration.
    (c) All auditors classified at GS-13 and above.
    (d) Financial manager.
    (e) Administrative services officer.
    (f) All grants officers.
    (3) Inclusion and exclusion of positions. (i) Whenever appropriate, 
the Chairman of an Endowment may amend paragraph (a)(2) of this section 
to include additional positions in his Endowment that entail submission 
of such statements or may exclude any positions in his Endowment listed 
in paragraph (a)(2) of this section the inclusion of which is not 
required by the general requirement in paragraph (a)(1) of this section. 
Inclusion or elimination of shared positions will be accomplished by 
agreement of both Chairmen. Each supervisor is responsible for bringing 
to the attention of the appropriate Chairman (through the Deputy 
Chairman) any position which the supervisor believes should be covered 
or excluded by this requirement.
    (ii) If an employee believes that his position has been improperly 
included among those for which a Statement of Employment and Financial 
Interests is required, he may bring this matter, via the Foundation's 
grievance procedures, to the attention of the appropriate Deputy 
Chairman or, in the case of shared staff, to the attention of both 
Deputy Chairmen. In the event that the recommendation is made that the 
position be included, the employee may appeal to the Chairman of the 
Endowment concerned, or, in the case of

[[Page 360]]

shared staff, to both Chairmen, whose ruling shall be final.
    (iii) Although an employee's position may generally be included 
within the terms of paragraph (a)(1) of this section, such position may 
be excluded from the reporting requirement when it is determined that:
    (a) The duties of a position are such that the likelihood of the 
incumbent's involvement in a conflicts-of-interest situation is remote; 
or
    (b) The duties of a position are at such a level of responsibility 
that the submission of a statement of employment and financial interests 
is not necessary because of the degree of supervision and review over 
the incumbent or the inconsequential effect on the integrity of the 
Government.
    (4) Submission of original and supplementary statements. Each 
employee covered by this requirement shall complete the statement and 
submit it within 90 days after the effective date of this part. Each new 
employee shall complete and submit the statement within 30 days after 
his entrance on duty or within 90 days after the effective date of this 
part, whichever date is later. All changes in, or additions to, the 
information contained in each employee's original statement must be 
reported in a supplementary statement submitted by the employee as of 
June 30 each year. If no changes or additions occur a negative report is 
required. Not withstanding the filing of the annual report required by 
this subparagraph, each employee shall at all times avoid acquiring a 
financial interest that could result, or taking an action that would 
result, in a violation of the conflicts of interest provisions of 
section 208 of title 18, U.S.C., or Sec. 1105.735-7 of this part. The 
Administrative Office of the Foundation is responsible for informing 
each new, affected employee of the requirement for him to submit the 
statement within 30 days after his entrance on duty.
    (5) Interests of employees' relatives. For purposes of the 
statement, the interests of a spouse, minor child, or any other member 
of an employee's immediate household who is a blood relation of the 
employee, are considered to be interests of the employee.
    (6) Information not known by employees. If information required to 
be included on the statement of employment and financial interests 
(supplementary or otherwise, including holdings placed in trust) is not 
known by the employee but is known to another person, the employee shall 
request such other person to submit the information on his behalf.
    (7) Information not required. Employees are not required to submit 
information relating to their financial interests in any professional 
society not conducted as a business enterprise as described in the next 
sentence, charitable, religious, social, fraternal, recreational, public 
service, civic, political, or similar organization not conducted as a 
business enterprise. Professional societies, educational institutions, 
and other nonprofit organizations engaged in research, development, or 
related activities involving grants of money from, or contracts with, 
the Government are deemed ``business enterprises'' and are required to 
be included in employees' statements of employment and financial 
interests.
    (8) Effect of employees' statements on other requirements. The 
statements of employment and financial interests and supplementary 
statements required of employees are in addition to, and are not in 
substitution for, or in derogation of, any similar requirement imposed 
by law, regulation, or Executive order. The submission of the statement 
or supplementary statement by an employee does not permit him or any 
other person to participate in any matter in which his or the other 
person's participation is prohibited by law, regulation, or Executive 
order.
    (9) Confidentiality of employees' statements. Each statement of 
employment and financial interest and each supplementary statement will 
be held in strictest confidence. The officials designated below to 
receive such statements will not allow access to, or information to be 
disclosed from, a statement except to carry out a purpose of this part. 
Information will not be disclosed from the statement except as the Civil 
Service Commission or the appropriate Chairman (or Chairmen, in

[[Page 361]]

the case of shared staff members) may authorize for good cause shown.
    (10) Review of statements. (i) Each Deputy Chairman will submit his 
statement to the appropriate Endowment Chairman.
    (ii) Employees of either Endowment shall submit their statements to 
the Deputy Chairman of that Endowment.
    (iii) Joint employees shall submit their statements to both Deputy 
Chairmen.
    (iv) When a statement submitted under paragraph (b)(2) or (3) of 
this section indicates a conflict between the interests of an employee 
and the performance of his services for the Government and when the 
conflict or appearance of conflict cannot be resolved by the Deputy 
Chairman (or by both Deputy Chairmen in the case of joint employees), he 
shall report the information concerning the conflict or appearance of 
conflict to the Chairman through the General Counsel. In the case of 
joint employees, information concerning the conflict or appearance of 
conflict shall be reported to both Chairmen. The employee concerned 
shall be given an opportunity to explain the conflict or appearance of 
conflict before remedial action is initiated.
    (b) Special Government employees. (1) Each special Government 
employee shall submit a statement of employment, and, unless otherwise 
directed, a statement of financial interests not later than the time of 
his employment. It is necessary that the special Government employee 
report all Federal and non-Federal employment, and, when a statement of 
financial interests is required, those financial interests which relate, 
either directly, or indirectly, to his Foundation responsibilities or 
duties.
    (2) Each special Government employee must file a supplementary 
statement of employment and financial interests whenever a significant 
change occurs, either in his employment or financial interests, in order 
that his statement may be kept current.
    (3) The provisions of paragraphs (a) (5) through (9) of this section 
apply to special Government employees in the same manner as to other 
employees.

(Sec. 10, 79 Stat. 852, as amended at 82 Stat. 186, 84 Stat. 443 (20 
U.S.C. 959))

[32 FR 17663, Dec. 12, 1967, as amended at 38 FR 3512, Feb. 7, 1973]



Sec. 1105.735-7   Employee conduct.

    (a) General. (1) Each Endowment assumes that an employee will 
conduct himself in a manner that will not discredit or embarrass himself 
or the Endowment. However, it is pointed out that the violation of the 
regulations in this part, or any criminal, infamous, dishonest, immoral, 
or notoriously disgraceful conduct on the part of an employee (whether 
in official duty status or not), is cause for immediate disciplinary 
action, up to and including removal.
    (2) Employees shall avoid any action, whether or not specifically 
prohibited, which might result in or create the appearance of:
    (i) Using public office for private gain;
    (ii) Giving preferential treatment to any person;
    (iii) Impeding Government efficiency or economy;
    (iv) Losing complete independence or impartiality;
    (v) Making a Government decision outside official channels; or
    (vi) Affecting adversely the confidence of the public in the 
integrity of the Government.
    (b) Indebtedness. Employees are expected to meet their just 
financial obligations and not to take advantage of the fact that their 
wages are not subject to garnishment for private debts. Failure to meet 
just financial obligations in a proper and timely manner may result in 
disciplinary action, up to, and including, removal. For the purpose of 
this section, a ``just financial obligation'' means one acknowledged by 
the employee or reduced to judgment by a court, and ``in a proper and 
timely manner'' means in a manner which the agency determines does not, 
under the circumstances, reflect adversely on the Government as his 
employer. In the event of dispute between an employee and an alleged 
creditor, this section does not require the Endowment concerned to 
determine

[[Page 362]]

the validity or amount of the disputed debt.
    (c) Payment of taxes. Employees are expected to meet their 
obligations for payment of taxes to Federal, State, and local 
authorities. Delinquency in payment of Federal, State, and local taxes 
is cause for disciplinary action, up to, and including, removal. Federal 
agencies are required to furnish State taxing authorities (including the 
District of Columbia) with a copy of Form W-2 indicating annual earnings 
and Federal income tax withheld. Employees are authorized to pay 
delinquent Federal taxes by payroll deduction: Provided, That they make 
satisfactory arrangements with the Internal Revenue Service to liquidate 
their tax liabilities in this manner. When such arrangements are not 
made, District Directors of Internal Revenue have the authority to levy 
upon the salaries of Federal employees for the full amount of delinquent 
Federal income tax.
    (d) Financial interests. Any employee may hold financial interests 
and engage in financial transactions in the same way as any private 
citizen, provided that such interests or activities are not prohibited 
by law, Executive order, or the regulations in this part. In particular, 
no employee may have any direct or indirect financial interest that 
conflicts substantially or appears to conflict substantially with his 
duties and responsibilities as an Endowment employee. No employee shall 
carry out Endowment duties involving any organization in which he has a 
direct or indirect financial interest. No employee shall engage directly 
or indirectly in any financial transaction resulting from, or primarily 
relying on, information obtained through his employment, or use his 
employment to coerce, or give the appearance of coercing, a person, to 
provide financial benefit to himself or another.
    (e) Participation in Endowment grants by former Endowment employees. 
In cases not directly coming under the prohibitions of 18 U.S.C. 207 
(relating to activities of former Government officials), the following 
rules shall apply:
    (1) In addition to the statutory bars against ever dealing with the 
U.S. Government in connection with a particular matter in which he 
participated personally and substantially while an employee, and against 
dealing with the Government for 1 year after leaving in connection with 
a matter under his official responsibility while in the Government, a 
former regular employee of an Endowment may not negotiate with either 
Endowment, with a view to obtaining support for himself or his 
organization within 1 year after having left the Endowment, except with 
the written permission of the Chairman of the Endowment in which he had 
been employed.
    (2) A former regular employee of an Endowment may not be compensated 
from an Endowment grant directly or indirectly within 1 year of his 
leaving the Endowment, except with the written permission of the 
Chairman of the Endowment in which he had been employed.
    (3) In the case of joint employees, the written permission referred 
to in paragraphs (e)(1) and (2) of this section must be given by both 
Chairmen.
    (f) Gifts, entertainment, and favors. Employees may not solicit, or 
accept directly or indirectly from any person, institution, corporation, 
or group, anything of economic value as a gift, gratuity, favor, 
entertainment, or loan, which might be reasonably interpreted by others 
as being of such a nature that it would affect his impartiality. This is 
especially applicable in those instances where the employee has reason 
to believe that the person, institution, corporation, or group:
    (1) Has, is seeking, or is likely to seek, assistance, support, or 
funds from an Endowment; or
    (2) Conducts operations or activities which are involved with, or 
are supported by, an Endowment; or
    (3) Has interests which might be substantially affected by the 
employee's performance or nonperformance of duties; or
    (4) May be attempting to affect the employee's official actions.
    (i) An employee shall not solicit a contribution from another 
employee for a gift to an official superior, make a donation as a gift 
to an official superior, or accept a gift from an employee receiving 
less pay than himself (5 U.S.C. 7351). However, this paragraph does not 
prohibit a voluntary gift of

[[Page 363]]

nominal value or donation in a nominal amount made on a special occasion 
such as marriage, illness, or retirement.
    (ii) Employees are not permitted to accept a gift, or decoration, or 
other objects from a foreign government unless authorized by Congress as 
provided by the Constitution and in 5 U.S.C. 7342.
    (iii) Employees may accept promotional material of nominal intrinsic 
value such as pens, pencils, note pads, calendars, etc. Employees may, 
on infrequent occasions, accept items of nominal value such as food in 
the ordinary course of a luncheon or dinner meeting, site visit, or 
professional conference, when the employee is properly in attendance.
    (iv) Neither this paragraph nor paragraph (g) of this section 
precludes an employee from receipt of bona fide reimbursement, unless 
prohibited by law, for expenses of travel and such other necessary 
subsistence as is compatible with this part for which no Government 
payment or reimbursement is made. However, this paragraph does not allow 
an employee to be reimbursed, or payment to be made on his behalf, for 
excessive personal living expenses, gifts, entertainment or other 
personal benefits, nor does it allow an employee to be reimbursed by a 
person for travel on official business under agency orders when 
reimbursement is proscribed by Decision B-128527 of the Comptroller 
General dated March 7, 1967.
    (g) Outside employment and other activity. (1) Employees shall not 
engage in any outside employment or other outside activity not 
compatible with the full and proper discharge of their duties and 
responsibilities. Incompatible activities include, but are not limited 
to, acceptance of anything of monetary value which may result in or 
create the appearance of a conflict of interest.
    (2) Employees shall not engage in outside employment which tends to 
impair their health or capacity to discharge acceptably their duties and 
responsibilities.
    (3) Regular employees shall not receive anything of value from a 
private source as compensation for their activities as endowment 
employees.
    (4) Employees shall not engage in teaching, lecturing, or writing 
which is dependent on official information obtained as a result of 
Government employment, except when the information has been, or is being 
made available to the general public, or will be made available to the 
public on request, or when the Chairman or Deputy Chairman of the 
Endowment concerned gives written authorization for the use of nonpublic 
information on the basis that the use is in the public interest. 
However, employees are encouraged to engage in teaching, lecturing, and 
writing not prohibited by the regulations in this part, by law, or by 
Executive order.
    (5) Employees shall not receive anything of monetary value for any 
consulting, lecturing, discussion, writing, or presentation, the subject 
of which is devoted to the responsibilities, programs, or operations of 
an Endowment, or which draws on official data or ideas which have not 
become part of the body of public information.
    (6) Employees shall not serve as organizers or directors of 
conferences, colloquia or similar events supported by grant or contract 
from an Endowment, but may otherwise participate in such events provided 
they do not receive any compensation or economic benefit for such 
participation.
    (7) Employees may, however, participate in the affairs of, and 
accept an award for meritorious public contribution or achievement given 
by a charitable, religious, fraternal, educational, recreational, public 
service, or civic organization.
    (h) Advice or assistance to nonprofit or commercial organizations. 
The conditions under which full-time employees may offer assistance or 
advice to nonprofit or commercial organizations are set forth in this 
paragraph (h). Although these conditions are stated as general rules, 
illustrative applications to specific situations are set forth as an aid 
to interpretation:
    (1) General rules. While not on official duty, an employee may 
provide advice or assistance and receive compensation therefor, to 
either nonprofit or commercial organizations: Provided, That such 
services are unrelated to his Government activities and do not draw

[[Page 364]]

upon information deriving from Government sources not publicly 
available.
    (2) Specific examples--(i) Visiting committees. Employees should not 
participate in the deliberations of a college or university visiting 
committee; however, an employee may meet with such groups as an 
Endowment official where it would be appropriate to attend a similar 
meeting with any other comparable group requesting his assistance.
    (ii) [Reserved]
    (iii) Membership and office holding in professional societies. An 
employee may be a member of a professional society, but may not serve as 
an officer except where the society has not received any support from an 
Endowment during the preceding three years and the employee has no 
reason to expect it to seek support during the tenure of his office. If 
the society later requests support from an Endowment, the employee 
should resign his office in the society or request permission to remain 
in such office.
    (i) Misuse of information. For the purpose of furthering a private 
interest, employees shall not (except as provided in paragraph (g)(4) of 
this section) directly or indirectly use, or allow the use of, official 
information obtained through, or in connection with, his Government 
employment which has not been made available to the general public.
    (j) Compensation from endowment awarded funds. No regular employee 
may receive any compensation, either directly or indirectly, from funds 
awarded to contractors or grantees by either endowment.
    (k) Use of Federal property. No employee may use Federal property or 
facilities of any kind for other than officially approved activities. 
Every employee has the responsibility to protect and conserve all 
Federal property which has been entrusted to him.
    (l) Exercise of notary powers. Employees who are notaries public may 
not charge or receive any compensation for performing any notarial act 
during working hours, including the luncheon period.
    (m) Political activity. Restrictions in this section are applicable 
to employees on leave, leave without pay, or furlough, as well as to 
other regular employees. Individuals whose employment is on an 
intermittent basis (not occupying a substantial portion of their time) 
are subject to the political activities restrictions only while they are 
in an active duty status. The period of active duty status for a 
particular employee includes the entire 24-hour period of any day of 
actual employment. The ``Federal Personnel Manual'' may be consulted in 
the Foundation Administrative Office. If an employee is in doubt about 
permissible activities, he should contact the Administrative Office for 
clarification.
    (1) Employees may not use their official positions or influence for 
the purpose of interfering with an election and they may not take an 
active part in political management or in political campaigns, except as 
provided in paragraphs (m) (4) and (5) of this section.
    (2) No employee may discriminate against another employee because of 
his political opinions or affiliations.
    (3) An employee may not become a candidate for nomination or 
election to a Federal, State, county, or municipal office on a partisan 
political ticket. Nor may an employee become a candidate as an 
independent when opposed by a partisan political candidate, except as 
provided in paragraph (m)(4) of this section.
    (4) Certain political subdivisions in the vicinity of Washington, 
D.C., as well as other municipalities, designated by the Civil Service 
Commission, have been granted a limited exception to the rules 
prohibiting political management or candidacy for local office. In such 
municipalities, employees may become candidates as independents, even 
when opposed by partisan political candidates.
    (5) In general, employees are encouraged to be candidates for, and 
to hold, State, county, or municipal offices of a nonpartisan nature 
when permitted by law. Employees desiring to be candidates for, or to 
hold, a State or local office or to undertake the political management 
of a candidacy for such office, must secure the approval of the 
appropriate Endowment Chairman or, in the case of members of the shared 
staff, of both Chairmen.

[[Page 365]]

    (6) Full-time employees, with the prior consent of the Chairman 
concerned, or of both Chairmen, in the case of members of the shared 
staff, may hold positions under a State or local government on a part-
time basis only. Intermittent employees may hold full-time or part-time 
State or local government positions. In both cases, the above 
restrictions on political activity must be observed.
    (n) An employee shall not participate, while on Government-owned or 
leased property or while on duty for the Government, in any gambling 
activity, such as a lottery or the sale or purchase of numbers, etc.

(Sec. 10, 79 Stat. 852, as amended 82 Stat. 186, 84 Stat. 443 (20 U.S.C. 
959))

[32 FR 17663, Dec. 12, 1967, as amended at 38 FR 3512, Feb. 7, 1973]



Sec. 1105.735-8   Presenting grievances to Congress.

    Nothing in this part shall be construed as abridging in any way the 
right of employees, either individually or collectively, to petition 
Congress, or any Member thereof, or to furnish information, when 
appropriate, to either House of Congress, or to any committee or member 
thereof.

           Appendix to Part 1105--Related Statutory Provisions

    The following is a list of statutes related to the conduct of 
Government employees and consultants. Upon request, pertinent excerpts 
of these statutes will be made available by the Administrative Office of 
the Foundation.
    1. House Concurrent Resolution 175, 85th Congress, 2d session, 72 
Stat. B12, the ``Code of Ethics for Government Service.''
    2. Chapter 11 of title 18, United States Code, relating to bribery, 
graft, and conflicts of interest, as appropriate to the employees 
concerned.
    3. The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913).
    4. The prohibitions against disloyalty and striking (5 U.S.C. 7311, 
18 U.S.C. 1918).
    5. The prohibition against the employment of a member of a Communist 
organization (50 U.S.C. 784).
    6. The prohibitions against (1) the disclosure of classified 
information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of 
confidential information (18 U.S.C. 1905).
    7. The provision relating to the habitual use of intoxicants to 
excess (5 U.S.C. 7352).
    8. The prohibition against the misuse of a Government vehicle (31 
U.S.C. 638a. (c)).
    9. The prohibition against the misuse of the franking privilege (18 
U.S.C. 1719).
    10. The prohibition against the use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917).
    11. The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001).
    12. The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071).
    13. The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508).
    14. The prohibitions against (1) embezzlement of Government money or 
property (18 U.S.C. 641); (2) failing to account for public money (18 
U.S.C. 643); and (3) embezzlement of the money or property of another 
person in the possession of an employee by reason of his employment (18 
U.S.C. 654).
    15. The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285).
    16. The prohibition against proscribed political activities in 
Subchapter III of Chapter 73 of title 5, United States Code and 18 
U.S.C. 602, 603, 607, and 608.
    17. The prohibition against an employee acting as the agent of a 
foreign principal registered under the Foreign Agents Registration Act 
(18 U.S.C. 219).

[32 FR 17663, Dec. 12, 1967, as amended at 33 FR 494, Jan. 13, 1968]



PART 1110--NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS--Table of Contents




Sec.
1110.1  Purpose.
1110.2  Application of part.
1110.3  Discrimination prohibited.
1110.4  Assurances required.
1110.5  Illustrative applications.
1110.6  Compliance information.
1110.7  Conduct of investigations.
1110.8  Procedure for effecting compliance.
1110.9  Hearings.
1110.10  Decisions and notices.
1110.11  Judicial review.
1110.12  Effect on other regulations; forms and instructions.
1110.13  Definitions.

Appendix A to Part 1110--Federal Financial Assistance to Which This Part 
          Applies

    Authority: Sec. 602, 78 Stat. 252 and sec. 10(a)(1), 79 Stat. 852.

    Source: 38 FR 17991, July 5, 1973, unless otherwise noted.

[[Page 366]]



Sec. 1110.1   Purpose.

    The purpose of this part is to effectuate the provisions of title VI 
of the Civil Rights Act of 1964 (hereafter referred to as the ``Act'') 
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 any program or activity receiving Federal financial assistance 
from the National Endowment for the Arts or the National Endowment for 
the Humanities.



Sec. 1110.2   Application of part.

    This part applies to any program for which Federal financial 
assistance is authorized under a law administered by the National 
Endowment for the Arts or the National Endowment for the Humanities 
including the federally assisted programs and activities listed in 
Appendix A of this part. It applies to money paid, property transferred, 
or other Federal financial assistance extended under any such program 
after the effective date of the part, including assistance pursuant to 
an application approved prior to such date. It also applies to federal 
financial assistance extended to any such program prior to the effective 
date of this part under a contract or grant where the term of the 
contract or grant continues beyond such date or where the assistance was 
to provide real or personal property and the recipient or his transferee 
continues to use or retain ownership or possession of the property (see 
Sec. 1110.4(a)(1)). This part does not apply to (a) any Federal 
financial assistance by way of insurance or guaranty contract, (b) any 
assistance to any individual who is the ultimate beneficiary under any 
such program, or (c) any employment practice, under any such program, of 
any employer, employment agency, or labor organization, except to the 
extent described in Sec. 1110.3. The fact that a program or activity is 
not listed in Appendix A shall not mean, if title VI of the Act is 
otherwise applicable, that such program is not covered. Other programs 
under statutes now in force or hereinafter enacted may be added to this 
list by notice published in the Federal Register.



Sec. 1110.3   Discrimination prohibited.

    (a) General. No person in the United States shall, on 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 
under any program to which this part applies may not directly or through 
contractual or other arrangements, on the ground of race, color, or 
national origin:
    (i) Deny an individual any service, financial aid, or other benefit 
provided under the program;
    (ii) Provide any service, financial aid, or other benefit to an 
individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (iii) Subject an individual 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 an individual 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 an individual differently from others in determining 
whether he satisfies any admission, enrollment, quota, eligibility, 
membership, or other requirement or condition which individuals must 
meet in order to be provided any service, financial aid, or other 
benefit provided under the program;
    (vi) Deny an individual an opportunity to participate in the program 
through the provision of services or otherwise or 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 
an employee but only to the extent set forth in paragraph (c) of this 
section).
    (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 individuals to whom, or the situations in 
which, such services, financial aid, other benefits, or facilities

[[Page 367]]

will be provided under any such program, or the class of individuals to 
be afforded an opportunity to participate in any such program, may not 
directly or through contractual or other arrangements, utilize criteria 
or methods of administration which have the effect of subjecting 
individuals 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 as respects 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 individuals 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 the Act or this regulation.
    (4) As used in this section, the services, financial aid, or other 
benefits provided under a program receiving Federal financial assistance 
shall be deemed to 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 and paragraph (c) of this section does not limit the 
generality of the prohibition in paragraph (a) of this section.
    (6) This regulation 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 previous 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 regulation applies the applicant or recipient has an 
obligation to take reasonable action to remove or overcome the 
consequences of the prior discriminatory practice or usage, and to 
accomplish the purposes of the Act.
    (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 may not directly or through 
contractual or other arrangements subject an individual to 
discrimination on the ground of race, color, or national origin in its 
employment practices under such program (including recruitment or 
recruitment advertising employment, layoff or termination, upgrading, 
demotion, or transfer, rates of pay or other forms of compensation and 
use of facilities), including programs where a primary objective of the 
Federal financial assistance is (i) to assist such individuals through 
employment to meet expenses incident to the commencement or continuation 
of their education or training or (ii) to provide work experience which 
contributes to the education or training of such individuals or (iii) to 
reduce the unemployment of such individuals or to help them through 
employment to meet subsistence needs.
    (2) The requirements applicable to construction employment under any 
such program shall be those specified in or pursuant to Executive Order 
11246 or any executive order which supersedes it.
    (3) Where a primary objective of the Federal financial assistance is 
not to provide employment, but 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, to deny them the benefits of, or to subject them to 
discrimination under any program to which this regulation applies, the 
provisions of the foregoing subparagraph of this paragraph (c) 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.

[[Page 368]]

    (d) Medical emergencies. Notwithstanding the foregoing provisions of 
this section, a recipient of Federal financial assistance shall not be 
deemed to have failed to comply with paragraph (a) of this section if 
immediate provision of a service or other benefit to an individual is 
necessary to prevent his death or serious impairment of his health and 
such service or other benefit cannot be provided except by or through a 
medical institution which refuses or fails to comply with paragraph (a) 
of this section.



Sec. 1110.4   Assurances required.

    (a) General. (1) Every application for Federal financial assistance 
to carry out a program to which this part applies, and every application 
for Federal financial assistance to provide a facility shall, as a 
condition to its approval and the extension of any Federal financial 
assistance pursuant to the application, contain or be accompanied by an 
assurance that the program will be conducted or the facility operated in 
compliance with all requirements imposed by or pursuant to this part. 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 and benefits, or for as long as the recipient retains 
ownership or possession of the property, whichever is longer; and any 
other type or form of assistance, the assurances shall be in effect for 
the duration of the period during which Federal financial assistance is 
extended to the program. The responsible Endowment official shall 
specify the form of the foregoing assurances for each program and the 
extent to which like assurances will be required of subgrantees, 
contractors and subcontractors, successors in interest, and other 
participants in the program. Any such assurance shall include provisions 
which give the United States a right to seek its judicial enforcement.
    (2) In the case of real property, structures or improvements 
thereon, or interests therein, which was acquired through a program of 
Federal financial assistance, or in the case where Federal financial 
assistance is provided in the form of a transfer of real property 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 is involved, 
but property is improved under a program of Federal financial 
assistance, the recipients shall agree to include such a covenant in any 
subsequent transfer of such property. Where the property is obtained 
from the Federal Government, such covenant may also include a condition 
coupled with a right to be reserved by the Endowment to revert title to 
the property in the event of a breach of the covenant where, in the 
discretion of the responsible Endowment official, such a condition and 
right of reverter is appropriate to the program under which the real 
property is obtained and to the nature of the grant and the grantee. In 
the event a transferee of real property proposes to mortgage or 
otherwise encumber the real property as security for financing 
construction of new, or improvement of existing, facilities on such 
property for the purposes for which the property was transferred, the 
Chairman of the Endowment concerned may agree, upon request of the 
transferee and if necessary to accomplish such financing, and upon such 
conditions as he deems appropriate, to forebear the exercise of such 
right to revert title for so long as the lien of such mortgage or other 
encumbrance remains effective.
    (3) Transfers of surplus property are subject to regulations issued 
by the Administrator of the General Services Administration. (41 CFR 
101-6.2)
    (b) Continuing State programs. Every application by a State or a 
State agency to carry out a program involving continuing Federal 
financial assistance

[[Page 369]]

to which this part applies shall as a condition to its approval and the 
extension of any Federal financial assistance pursuant to the 
application (1) contain or be accompanied by a statement that the 
program is (or, in the case of a new program, will be) conducted in 
compliance with all requirements imposed by or pursuant to this part, 
and (2) provide or be accompanied by provision for such methods of 
administration for the program as are found by the responsible Endowment 
official to give reasonable assurance that the applicant and all 
recipients of Federal financial assistance under such program will 
comply with all requirements imposed by or pursuant to this part.
    (c) Elementary and secondary schools. The requirements of paragraph 
(a) of this section with respect to any elementary or secondary school 
or school system shall be deemed to be satisfied if such school or 
school system (1) is subject to a final order of a court of the United 
States for the desegregation of such school or school system, and 
provides an assurance that it will comply with such order, including any 
future modification of such order, or (2) submits a plan for the 
desegregation of such school or school system which the responsible 
official of the Department of Health, Education, and Welfare determines 
is adequate to accomplish the purposes of the Act and this part within 
the earliest practicable time and provides reasonable assurance that it 
will carry out such plan. In any case of continuing Federal financial 
assistance, the responsible official of the Department of Health, 
Education, and Welfare may reserve the right to redetermine, after such 
period as may be specified by him, the adequacy of the plan to 
accomplish the purposes of the Act and this part. In any case in which a 
final order of a court of the United States for the desegregation of 
such school or school system is entered after submission of such a plan, 
such plan shall be revised to conform to such final order, including any 
future modification of such order.
    (d) Assurances from institutions. (1) In the case of any application 
for Federal financial assistance to an institution of higher education 
(including assistance for construction, for research, for a special 
training project, or for any other purpose), the assurance required by 
this section shall extend to admission practices and to all other 
practices relating to the treatment of students.
    (2) The assurance required with respect to an institution of higher 
education or any other institution, insofar as the assurance relates to 
the institution's practices with respect to admission or other treatment 
of individuals as students, or clients of the institution or to the 
opportunity to participate in the provision of services or other 
benefits to such individuals, shall be applicable to the entire 
institution unless the applicant establishes, to the satisfaction of the 
responsible Endowment official, that the institution's practices in 
designated parts or programs of the institution will in no way affect 
its practices in the program of the institution for which Federal 
financial assistance is sought, or the beneficiaries of or participants 
in, such program. If in any such case the assistance sought is for the 
construction of a facility or part of a facility, the assurance shall in 
any event extend to the entire facility and to facilities operated in 
connection therewith.



Sec. 1110.5   Illustrative applications.

    The following examples will illustrate the application of the 
foregoing provisions to some of the activities for which Federal 
financial assistance is provided by the Endowments. (In all cases the 
discrimination prohibited is discrimination on the ground of race, 
color, or national origin prohibited by title VI of the Act and this 
part, as a condition of the receipt of Federal financial assistance.)
    (a) In a research, training, or other grant to a university for 
activities to be conducted in a graduate school, discrimination in the 
admission and treatment of students in the graduate school is 
prohibited, and the prohibition extends to the entire university, unless 
it satisfies the responsible Endowment official that practices with 
respect to other parts or programs of the university will not interfere, 
directly or indirectly, with fulfillment of

[[Page 370]]

the assurance required with respect to the graduate school.
    (b) In cases of Federal financial assistance to elementary or 
secondary schools, discrimination by the recipient school district in 
any of its elementary or secondary schools, or by the recipient private 
institution, in the admission of students, or in the treatment of its 
students in any aspect of the educational process, is prohibited. In 
this and the following illustration the prohibition of discrimination in 
the treatment of students or other trainees includes the prohibition of 
discrimination among the students or trainees in the availability or use 
of any academic, dormitory, eating, recreational, or other facilities of 
the grantee or other recipient.
    (c) In a training grant to a nonacademic institution, discrimination 
is prohibited in the selection of individuals to be trained and in their 
treatment by the grantee during their training. In a research or 
demonstration grant to such an institution, discrimination is prohibited 
with respect to any educational activity, any provision of medical or 
other services and any financial aid to individuals incident to the 
program.
    (d) Where Federal financial assistance is provided to assist in the 
presentation of artistic and cultural productions to the public, 
assurances will be required that such productions will not be presented 
before any audience which has been selected on a discriminatory basis.
    (e) A recipient may not take action that is calculated to bring 
about indirectly what this part forbids it to accomplish directly. Thus, 
a State, in selecting projects to be supported through a State agency, 
may not base its selections on criteria which have the effect of 
defeating or substantially impairing accomplishment of the objectives of 
the Federal financial assistance as respects individuals of a particular 
race, color, or national origin.
    (f) In some situations even though past discriminatory practices 
have been abandoned, the consequences of such practices continue to 
impede the full availability of a benefit. If the efforts required of 
the applicant or recipient under Sec. 1110.6(d) to provide information 
as to the availability of the program or activity, and the rights of 
beneficiaries under this regulation, have failed to overcome these 
consequences, it will become necessary for such applicant or recipient 
to take additional steps to make the benefits fully available to racial 
and nationality groups previously subjected to discrimination. This 
action might take the form, for example of special arrangements for 
obtaining referrals or making selections which will insure that groups 
previously subjected to discrimination are adequately served.
    (g) Even though an applicant or recipient has never used 
discriminatory policies, the services and benefits of the program or 
activity it administers may not in fact be equally available to some 
racial or nationality groups. In such circumstances an applicant or 
recipient may properly give special consideration to race, color, or 
national origin to make the benefits of its program more widely 
available to such groups, not then being adequately served. For example, 
where a university is not adequately serving members of a particular 
racial or nationality group, it may establish special recruitment 
policies to make its program better known and more readily available to 
such group, and take other steps to provide that group with more 
adequate service.



Sec. 1110.6   Compliance information.

    (a) Cooperation and assistance. The responsible Endowment official 
shall, to the fullest extent practicable, seek the cooperation of 
recipients in obtaining compliance with this part and shall provide 
assistance and guidance to recipients to help them comply voluntarily 
with this part.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the responsible Endowment official timely, complete and 
accurate compliance reports at such times, and in such form and 
containing such information, as the responsible Endowment official may 
determine to be necessary to enable him to ascertain whether the 
recipient has complied or is complying with this part. In the case of 
any program under which a primary recipient extends Federal financial 
assistance to

[[Page 371]]

any other recipient, such other recipient shall also submit such 
compliance reports to the primary recipient as may be necessary to 
enable the primary recipient to carry out its obligations under this 
part.
    (c) Access to sources of information. Each recipient shall permit 
access by the responsible Endowment official or his designee during 
normal business hours to such of its books, records, accounts, and other 
sources of information, and its facilities as may be pertinent to 
ascertain compliance with this part. Where any information required of a 
recipient is in the exclusive possession of any other agency, 
institution or person and this agency, institution or person shall fail 
or refuse to furnish this information, the recipient shall so certify in 
its report and shall set forth what efforts it has made to obtain the 
information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of this 
part and its applicability to the program under which the recipient 
receives Federal financial assistance, and make such information 
available to them in such manner, as the responsible Endowment official 
finds necessary to apprise such persons of the protections against 
discrimination assured them by the Act and this part.



Sec. 1110.7   Conduct of investigations.

    (a) Periodic compliance reviews. The responsible Endowment official 
shall from time to time review the practices of recipients to determine 
whether they are complying with this part.
    (b) Complaints. Any person who believes himself or any specific 
class of individuals to be subjected to discrimination prohibited by 
this part may by himself or by a representative file with the 
responsible Endowment official a written complaint. A complaint must be 
filed not later than ninety days from the date of the alleged 
discrimination, unless the time for filing is extended by the 
responsible Endowment official.
    (c) Investigations. The responsible Endowment official will make 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 Endowment official will so inform the recipient 
and the matter will be resolved by informal means whenever possible. If 
it has been determined that the matter cannot be resolved by informal 
means, action will be taken as provided for in Sec. 1110.8.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section, the responsible Endowment 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 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.



Sec. 1110.8   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

[[Page 372]]

not limited to, (1) a reference 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 Act), or any assurance or other 
contractual undertaking, and (2) any applicable proceeding under State 
or local law.
    (b) Noncompliance with Sec. 1110.4. If an applicant fails or refuses 
to furnish an assurance required under Sec. 1110.4 or otherwise fails to 
comply with that section, Federal financial assistance may be refused in 
accordance with the procedures of paragraph (c) of this section. The 
Endowment concerned shall not be required to provide assistance in such 
a case during the pendency of the administrative proceedings under such 
paragraph, except that such Endowment 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 Endowment 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 hearings, 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 Chairman 
of the Endowment concerned, and (4) the expiration of 30 days after the 
Chairman 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 Endowment 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 this part and to take such 
corrective action as may be appropriate.



Sec. 1110.9   Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required by Sec. 1110.8(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 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 responsible 
Endowment 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 paragraph or to 
appear at a hearing for which a date has been set shall be deemed to be 
a waiver of the right of a hearing under section 602 of the Act and 
Sec. 1110.8(c) of this part and

[[Page 373]]

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 Endowment concerned in Washington, DC, at a time fixed by the 
responsible Endowment official unless he determines that the convenience 
of the applicant or recipient or of the Endowment requires that another 
place be selected. Hearings shall be held before the responsible 
Endowment official or, at his discretion, before a hearing examiner 
designated in accordance with section 11 of the Administrative Procedure 
Act.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and the Endowment 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 
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 (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 Endowment 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 entered 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 
Regulation with respect to two or more programs 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 of the 
Act, the Chairman of the Endowment concerned 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. 1110.10.



Sec. 1110.10   Decisions and notices.

    (a) Decision by person other than the responsible Endowment 
official. If the hearing is held by a hearing examiner such 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 responsible Endowment 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 
Endowment official his exceptions to the initial decision, with his 
reasons therefor. In the absence of exceptions, the responsible 
Endowment 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 Endowment 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

[[Page 374]]

shall constitute the final decision of the responsible Endowment 
official.
    (b) Decisions on record or review by the responsible Endowment 
official. Whenever a record is certified to the responsible Endowment 
official for decision or he reviews the decision of a hearing examiner 
pursuant to paragraph (a) of this section, or whenever the responsible 
Endowment 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 Endowment official shall be given in writing 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. 1110.9(a) a decision shall be made by 
the responsible Endowment 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 Endowment official shall set forth his 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 Chairman. Any final decision of a responsible 
Endowment official (other than the Chairman) 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 Chairman, 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 Endowment 
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 regulation and provides reasonable assurance that it will fully 
comply with this regulation. (An elementary or secondary school or 
school system which is unable to file an assurance of compliance with 
Sec. 1110.3 shall be restored to full eligibility to receive Federal 
financial assistance, if it files a court order or a plan for 
desegregation which meets the requirements of Sec. 1110.4(c), and 
provides reasonable assurance that it will comply with this court order 
or plan.)
    (2) Any applicant or recipient adversely affected by an order 
entered pursuant to paragraph (f) of this section may at any time 
request the responsible Endowment 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 responsible Endowment official determines that those requirements 
have been satisfied, he shall restore such eligibility.
    (3) If the responsible Endowment 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 of procedure issued by the 
responsible Endowment 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

[[Page 375]]

proceedings under this paragraph are pending, the sanctions imposed by 
the order issued under paragraph (f) of this section shall remain in 
effect.



Sec. 1110.11   Judicial review.

    Action taken pursuant to section 602 of the Act is subject to 
judicial review as provided in section 603 of the Act.



Sec. 1110.12   Effect on other regulations; forms and instructions.

    (a) Effects on other regulations. Nothing in this part shall be 
deemed to supersede any of the following (including future amendments 
thereof): (1) Executive Orders 10925, 11114, and 11246, and regulations 
issued thereunder, or (2) Executive Order 11063 and regulations issued 
thereunder or any other regulations or instructions insofar as such 
order, regulations, or instructions prohibit discrmination 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 Endowment 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 Chairman of an Endowment may 
from time to time assign to other officials of the Endowment 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 of the Act and this 
part, including the achievement of effective coordination and maximum 
uniformity within the Endowment and within the executive branch of the 
Government in the application of title VI and this part of 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 
subsection shall have the same effect as though such action had been 
taken by the responsible official of this agency.



Sec. 1110.13   Definitions.

    As used in this part:
    (a) The term Foundation means the National Foundation for the Arts 
and the Humanities, and includes the National Endowment for the Arts, 
the National Endowment for the Humanities, and each of their 
organizational units.
    (b) The term Endowment means the National Endowment for the Arts or 
the National Endowment for the Humanities.
    (c) The term Chairman means the Chairman of the National Endowment 
for the Arts or the Chairman of the National Endowment for the 
Humanities.
    (d) The term responsible Endowment official with respect to any 
program receiving Federal financial assistance means the Chairman of any 
Endowment or other Endowment official designated by the Chairman.
    (e) The term United States means the States of the United States, 
the District of Columbia, Puerto Rico, the Virgin Islands, American 
Samoa, Guam, Wake Island, the Canal Zone, and the territories and 
possessions of the United States, and the term State means any one of 
the foregoing.
    (f) The term Federal financial assistance includes (1) grants and 
loans of Federal funds, (2) the grant or the 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.
    (g) The term program includes any program, project, or activity 
involving the provision of services, financial aid, or other benefits to 
individuals (including education or training, health, housing, or other 
services, whether provided through employees of the recipient of Federal 
financial assistance or provided by others through contracts or other 
arrangements with the recipient,

[[Page 376]]

and including work opportunities and cash or loan or other assistance to 
individuals), or for provision of facilities for furnishing services, 
financial aid or other benefits to individuals. The service, financial 
aid, or other benefits provided under a program receiving Federal 
financial assistance shall be deemed to include any services, financial 
aid, or other benefits provided with the aid of Federal financial 
assistance or with the aid of any non-Federal funds, property, or other 
resources required to be expended or made available for the program to 
meet matching requirements or other conditions which must be met in 
order to receive the Federal financial assistance, and to include any 
services, financial aid, or other benefits provided in or through a 
facility provided with the aid of Federal financial assistance or such 
non-Federal resources.
    (h) The term facility includes all or any portion 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.
    (i) The term recipient means any State, political subdivision of any 
State, or instrumentality of any State or political subdivision, any 
public or private agency, institution, or organization, or other entity 
or any individual, in any State, to whom Federal financial assistance is 
extended, directly or through another recipient, for any program, 
including any successor, assign, or transferee thereof, but such term 
does not include any ultimate beneficiary under any such program.
    (j) The term primary recipients means any recipient which is 
authorized or required to extend Federal financial assistance to another 
recipient for the purposes of carrying out a program.
    (k) The term applicant means one who submits an application, 
request, or plan required to be approved by a responsible Endowment 
official, or by a primary recipient, as a condition to eligibility for 
Federal financial assistance, and the term application means such an 
application, request, or plan.

Appendix A to Part 1110--Federal Financial Assistance to Which This Part 
                                 Applies

    1. Assistance to groups for projects and productions in the arts.
    2. Surveys, research and planning in the arts.
    3. Assistance to State arts agencies for projects and productions in 
the arts.
    4. Support of research in the humanities.
    5. Support of educational programs in the humanities, including the 
training of students and teachers.
    6. Assistance to promote the interchange of information in the 
humanities.
    7. Assistance to foster public understanding and appreciation of the 
humanities.
    8. Support of the publication of scholarly works in the humanities.



PART 1115--PRIVACY ACT REGULATIONS--Table of Contents




Sec.
1115.1  Purpose and scope.
1115.2  Definitions.
1115.3  Procedures for notification of existence of records pertaining 
          to individuals.
1115.4  Procedures for requests for access to or disclosure of records 
          pertaining to an individual.
1115.5  Correction of records.
1115.6  Disclosure of records to agencies or persons other than the 
          individual to whom the record pertains.
1115.7  Exemptions.

    Authority: 5 U.S.C. 552a(f).

    Source: 40 FR 49286, Oct. 21, 1975, unless otherwise noted.



Sec. 1115.1   Purpose and scope.

    This part sets forth the National Foundation on the Arts and the 
Humanities' procedures under the Privacy Act of 1974 as required by 5 
U.S.C. 552a(f). Internal guidance for Foundation staff and other 
regulations implementing the Privacy Act are contained or will be 
contained in Foundation circulars.



Sec. 1115.2   Definitions.

    For purposes of this part:
    (a) Foundation means the National Foundation on the Arts and the 
Humanities.
    (b) Act means the Privacy Act of 1974 (Pub. L. 93-579).
    (c) Individual means a citizen of the United States or an alien 
lawfully admitted for permanent residence.

[[Page 377]]

    (d) Maintain, used with reference to a record means to collect, to 
use, to disseminate, to have control over and responsibility for such 
record.
    (e) Record means any item, collection or grouping of information 
about an individual that is maintained by the Foundation and that is 
retrievable by his or her name or an identifying particular, such as a 
number, symbol, fingerprint, or photograph of the individual. 
Information maintained by the Foundation includes, but is not limited 
to, education, financial transactions, medical history, employment 
history and criminal history.
    (f) Routine use means, with respect to the disclosure of a record, 
the use of such a record for a purpose which is compatible with the 
purpose for which it was collected. The routine uses of record systems 
maintained by the Foundation were established pursuant to notice in the 
Federal Register.
    (g) System of records means a group of any records under the control 
of the Foundation from which information about an individual is 
retrievable by his or her name or by some identifying particular.



Sec. 1115.3   Procedures for notification of existence of records pertaining to individuals.

    (a) The systems of records, as defined in the Privacy Act of 1974, 
maintained by the National Foundation on the Arts and the Humanities are 
listed annually in the Federal Register as required by that Act. Any 
person who wishes to know whether a system of records contains a record 
pertaining to him may appear in person at the National Endowment for the 
Arts, Room 1338, 2401 E Street NW., Washington, DC 20506 or the National 
Endowment for the Humanities, Room 1000, 806 15th Street NW., 
Washington, DC 20506, on work days between the hours of 9:00 a.m. and 
5:30 p.m. or by writing to the Office of the General Counsel, National 
Endowment for the Arts or National Endowment for the Humanities, 
Washington, DC 20506. It is recommended that requests be made in 
writing, since in many cases it will take several days to ascertain 
whether a record exists.
    (b) Requests for notification of the existence of a record should 
specifically identify the system of records involved and should state, 
if the requestor is other than the individual to whom the record 
pertains, the relationship of the requestor to that individual. (Note 
that requests will not be honored by the Foundation pursuant to the 
Privacy Act unless made (1) by the individual to whom the record 
pertains, (2) by such individual's parent if the individual is a minor, 
or (3) by such individual's legal guardian if the individual has been 
declared to be incompetent due to physical or mental incapacity or age 
by a court of competent jurisdiction).
    (c) The Foundation will attempt to respond to a request as to 
whether a record exists within 10 working days from the time it receives 
the request or from the time any required identification is established, 
whichever is later.



Sec. 1115.4   Procedures for requests for access to or disclosure of records pertaining to an individual.

    (a) Any person may request review of records pertaining to him by 
appearing at the National Endowment for the Arts, Room 1338, 2401 E 
Street, NW., Washington, DC 20506, or the National Endowment for the 
Humanities, Room 1000, 806 15th Street, NW., Washington, DC 20506 on 
work days between the hours of 9:00 a.m. and 5:30 p.m. or by writing to 
the Office of the General Counsel, National Endowment for the Arts, or 
National Endowment for the Humanities, Washington, DC 20506. (See 
paragraphs (b) and (c) of this section for identification requirements.) 
The request should specifically identify the systems or records 
involved. The Foundation will strive either to make the record available 
within 15 working days of the request or to inform the requestor of the 
need for additional identification or the tendering of fees (as 
specified in paragraph (d) of this section) within 15 working days.
    (b) In the case of persons making requests by appearing at the 
Foundation, the amount of personal identification required will of 
necessity vary with the sensitivity of the record involved. Except as 
indicated below, reasonable identification such as employment 
identification cards, drivers licenses,

[[Page 378]]

and credit cards will normally be accepted as sufficient evidence of 
identity in the absence of any indications to the contrary. Records in 
the following systems of records, however, are considered to contain 
relatively sensitive and/or detailed personal information--

GRANT APPLICATIONS--NEA.
GRANT APPLICATIONS--NEH.
GRANTS TO INDIVIDUALS--NEA.
GRANTS TO INDIVIDUALS AND INSTITUTIONS--NEH.
EQUAL EMPLOYMENT OPPORTUNITY CASE FILE--NFAH NEA/NEH.
EMPLOYEE PAYROLL--NFAH.
PERSONNEL RECORDS--NFAH.

Accordingly, with respect to requests for records in these systems the 
Foundation reserves the rights to require sufficient identification to 
identify positively the individual making the request. This might 
involve independent verification by the Foundation as by phone calls to 
determine whether an individual has made a request, personal 
identification by Foundation employees who know the individual, or such 
other means as are considered appropriate under the circumstances.
    (c) A written request will be honored only if it contains the 
following certification before a duly commissioned notary public of any 
state or territory (or similar official if the request is made outside 
the United States):

    I,--------------------(Printed name), do hereby certify that I am 
the individual about whom the record requested in this letter pertains 
or that I am within the class of persons authorized to act on his behalf 
in accordance with 5 U.S.C. 552a(h).
          ______________________________________________________________
                                                             Signature  
          ______________________________________________________________
                                                              Date      
In the County of--------------------State   of--------------------. On 
this ----day of_________________________________________________________
          ______________________________________________________________
                                                    (Name of individual)
who is personally known to me, did appear before me and sign the above 
certificate.
          ______________________________________________________________
                                                             Signature  
          ______________________________________________________________
                                                              Date      
(s) My Commission expires_______________________________________________

However, where the record requested is contained in any of the systems 
of records listed in paragraph (b) of this section, the Foundation 
reserves the right to require additional identification and/or to 
independently verify to its satisfaction, the identity of the requestor.
    (d) Charges for copies of records will be at the rate of $0.10 per 
photography of each page. Where records are not susceptible to photo-
copying, e.g., punch cards, magnetic tapes or oversize materials, the 
amount charged will be actual cost as determined on a case-by-case 
basis. Only one copy of each record requested will be supplied. No 
charge will be made unless the charge as computed above would exceed 
$3.00 for each request or related series of requests. If a fee in excess 
of $25.00 would be required, the requestor shall be notified and the fee 
must be tendered before the records will be copied.



Sec. 1115.5  Correction of records.

    (a) Any individual is entitled to request amendments of records 
pertaining to him pursuant to 5 U.S.C. 552a(d)(2). Such a request shall 
be made in writing and addressed to the Office of the General Counsel, 
National Endowment for the Arts or National Endowment for the 
Humanities, Washington, DC 20506.
    (b) The request should specify the record and systems of records 
involved, and should specify the exact correction desired and state that 
the request is made pursuant to the Privacy Act. An edited copy of the 
record showing the desired correction is desirable. Within 10 working 
days of the receipt of a properly addressed request (or within 10 
working days of the time the General Counsel, National Endowment for the 
Arts or the General Counsel, National Endowment for the Humanities 
becomes aware that a particular communication not addressed as 
prescribed above is a request for correction of a record under the 
Privacy Act), the General Counsel's office shall acknowledge receipt of 
the request.
    (c) The General Counsel's office upon receipt of such a request 
shall promptly confer with the office within the Foundation responsible 
for the record. In the event it is felt that correction is not warranted 
in whole or in part, the matter shall be brought to the attention of the 
Deputy Chairman of the Endowment involved. If, after review by

[[Page 379]]

the Deputy Chairman of the involved Endowment and discussion with the 
request or, if deemed helpful, it is determined that correction as 
requested is not warranted, a letter shall be sent by the Deputy 
Chairman's office to the requestor denying his request and/or explaining 
what correction might be made if agreeable to the requestor. This letter 
shall set forth the reasons for the refusal to honor the request for 
correction. It shall also inform him of his right to appeal this 
decision and include a description of the appeals procedure set forth in 
paragraph (d) of this section.
    (d) An appeal may be taken from an adverse determination under 
paragraph (c) of this section to the Assistant Chairman/Management, 
National Endowment for the Arts or the Chairman, National Endowment for 
the Humanities. Such appeal must be made in writing and should clearly 
indicate that it is an appeal. The basis for the appeal should be 
included, and it should be mailed to the same address as listed in 
paragraph (a) of this section. A hearing at the Foundation may be 
requested. Such hearing will be informal, and shall be before the 
Assistant Chairman/Management, National Endowment for the Arts, the 
Chairman, National Endowment for the Humanities, or an appointed 
designee. If no hearing is requested, the request for appeal should 
include the basis for the appeal. Where no hearing is requested the 
Assistant Chairman or Chairman before whom the appeal is taken shall 
render his decision within thirty working days after receipt of the 
written appeal at the Foundation, unless the Assistant Chairman or 
Chairman before whom the appeal is taken, for good cause shown, extends 
the 30-day period and the appellant is advised in writing of such 
extension. If a hearing is requested, the Foundation will attempt to 
contact the appellant within five working days and arrange a suitable 
time for the hearing. In such cases the decision of the Assistant 
Chairman or Chairman shall be made within 30 working days after the 
hearing unless the time is extended and the appellant is advised in 
writing of such extension.
    (e) The final decision of the Assistant Chairman or Chairman in an 
appeal shall be in writing, and, if adverse to the appellant, set forth 
the reasons for the refusal to amend the record and advise him of his 
right to appeal the decision under 5 U.S.C. 552a(g)(1)(A). The 
individual shall also be notified that he has the right to file with the 
Foundation a concise statement setting forth the reasons for this 
disagreement with the refusal of the Foundation to amend his record.



Sec. 1115.6   Disclosure of records to agencies or persons other than the individual to whom the record pertains.

    Records subject to the Privacy Act that are requested by any person 
other than the individual to whom they pertain will not be made 
available except under the following circumstances:
    (a) Records required to be made available by the Freedom of 
Information Act will be released in response to a request formulated in 
accordance with Foundation regulations found at 45 CFR part 1100.
    (b) Records not required by the Freedom of Information Act to be 
released may be released, at the discretion of the Foundation, if the 
written consent of the individual to whom they pertain has been obtained 
or if such release would be authorized under 5 U.S.C. 552a(b)(1) or (3) 
through (11).



Sec. 1115.7   Exemptions.

    (a) Fellowships and grants. Pursuant to 5 U.S.C. 552a(k)(5), the 
Foundation hereby exempts from the application of section 552a(d) any 
materials which would disclose the identity of references for fellowship 
or grant applicants contained in any of the Foundation's systems of 
records.
    (b) Applicants for employment. Pursuant to 5 U.S.C. 552a(k)(5), the 
Foundation hereby exempts from the application of 5 U.S.C. 552a(d) any 
materials which would disclose the identity of references of applicants 
for employment at the Foundation contained in the system of records 
entitled ``Official Personnel Folders''.

[[Page 380]]



              SUBCHAPTER B--NATIONAL ENDOWMENT FOR THE ARTS





PART 1150--COLLECTION OF CLAIMS UNDER THE FEDERAL CLAIMS COLLECTION ACT OF 1966--Table of Contents




Sec.
1150.1  Scope.
1150.2  Incorporation of joint standards by reference.
1150.3  Subdivision and joining of claims.
1150.4  Referral of claims to the General Counsel.
1150.5  Accounting control.
1150.6  Record retention.
1150.7  Suspension or revocation of eligibility.
1150.8  Standards for collection of claims.
1150.9  Standards for compromise of claims.
1150.10  Standards for suspension or termination of collection action.
1150.11  Referral to GAO or Justice Department.

    Authority: Federal Claims Collection Act of 1966.

    Source: 40 FR 51196, Nov. 4, 1975, unless otherwise noted.



Sec. 1150.1   Scope.

    This subpart sets forth the regulations of the National Endowment 
for the Arts implementing the Federal Claims Collection Act of 1966 (the 
Act) in conformity with the standards jointly promulgated by the 
Attorney General and the Comptroller General in 4 CFR parts 101 through 
105. The Act (a) requires the head of an agency or his designee to 
attempt collection of all claims of the United States for money or 
property arising out of the activities of the National Endowment for the 
Arts; and (b) authorizes the head of an agency or his designee to 
compromise such claims that do not exceed $20,000 exclusive of interest, 
or to suspend or terminate collection action where it appears that no 
person liable on such claims has the present or prospective financial 
ability to pay any significant sum thereon or that the cost of 
collecting such claim is likely to exceed the amount of recovery.



Sec. 1150.2   Incorporation of joint standards by reference.

    All administrative actions to collect claims arising out of the 
activities of the National Endowment for the Arts shall be performed in 
accordance with the applicable standards prescribed in 4 CFR parts 101 
through 105, which are incorporated by reference and supplemented in 
this subpart.



Sec. 1150.3   Subdivision and joining of claims.

    (a) A debtor's liability arising from a particular transaction or 
contract shall be considered as a single claim in determining whether 
the claim is one not exceeding $20,000 exclusive of interest for the 
purpose of compromise or termination of collection action. Such a claim 
may not be subdivided to avoid the monetary ceiling established by the 
Act.
    (b) Joining of two or more single claims in a demand upon a 
particular debtor for payment totaling more than $20,000 does not 
preclude compromise or termination of collection action with respect to 
any one of such claims that does not exceed $20,000 exclusive of 
interest.



Sec. 1150.4   Referral of claims to the General Counsel.

    (a) Authority of the General Counsel. The General Counsel shall 
exercise the powers and perform the duties of the head of the agency to 
compromise or to suspend or terminate collection action on all claims 
not exceeding $20,000 exclusive of interest. Claims shall be referred to 
the General Counsel well within the applicable statute of limitations 
(28 U.S.C. 2415 and 2416), but in no event more than 2 years after the 
claims accrued.
    (b) Exclusions. There shall be no compromise or terminated 
collection action with respect to any claim: (1) As to which there is an 
indication of fraud, the presentation of a false claim, or 
misrepresentation on the part of the debtor or any other party having an 
interest in the claim; (2) based in whole or in part on conduct in 
violation of the anti-trust laws; (3) based on tax statutes; or (4) 
arising from an exception made by the General Accounting Office in the 
account of an accountable officer. Such claims shall be promptly

[[Page 381]]

referred to the Justice Department or GAO, as appropriate.



Sec. 1150.5   Accounting control.

    The General Counsel shall process all claims collections through the 
appropriate accounting office and report the collection, compromise, 
suspension and termination of all claims to the appropriate accounting 
office for recording.



Sec. 1150.6   Record retention.

    The file of each claim on which administrative collection action has 
been completed shall be retained by the appropriate office or the 
General Counsel not less than 1 year after the applicable statute of 
limitations has run.



Sec. 1150.7   Suspension or revocation of eligibility.

    (a) In the event a contractor, grantee, or other participant in 
programs sponsored by the Endowment fails to pay his debts to the 
Endowment within a reasonable time after demand, the fact shall be 
reported by the Grants, Audit, or other appropriate office to the 
General Counsel, who shall place such defaulting participant's name on 
the Endowment's list of debarred, suspended and ineligible contractors 
and grantees and the participant will be so advised.
    (b) The failure of any surety to honor its obligations in accordance 
with 6 U.S.C. 11 is to be reported at once to the General Counsel who 
shall so advise the Treasury Department. The Treasury Department will 
notify the Endowment when a surety's certificate of authority to do 
business with the Government has been revoked or forfeited.



Sec. 1150.8   Standards for collection of claims.

    (a) Demand for payment. Appropriate written demands shall be made 
upon the debtor which shall include information relating to the 
consequences of his failure to cooperate.
    (b) Collection by offset. Collection by offset will be 
administratively undertaken on claims which are liquidated or certain in 
amount in every instance where this is feasible.
    (c) Liquidation of collateral. When the Endowment holds security or 
collateral that may be liquidated and the proceeds applied on debts due 
it through the exercise of a power of sale in the security instrument or 
a nonjudicial foreclosure, such procedures should be followed if the 
debtor fails to pay his debt within a reasonable time after demand, 
unless the cost of disposing of the collateral will be disproportionate 
to its value or special circumstances require judicial foreclosure.
    (d) Collection in installments. Claims with accrued interest should 
be collected in full or one lump sum whenever this is possible. However, 
if the debtor is financially unable to pay the indebtedness in one lump 
sum, payment may be accepted in regular installments.
    (e) Interest. In the event prejudgment interest is not mandated by 
statute, contract or regulation, the interest shall be assessed at 7 
percent. Prejudgment interest may be waived as an inducement to 
voluntary payment. In such cases demand letters should inform the debtor 
that prejudgment interest will be collected if suit becomes necessary. 
When a debt is paid in installments and interest is collected, 
installment payments will first be applied to the payment of accrued 
interest and then to principal in accordance with the so-called ``U.S. 
Rule'' unless a different rule is prescribed by statute, contract or 
regulation. Prejudgment interest shall not be demanded or collected on 
civil penalty and forfeiture claims unless the statute under which the 
claim arises authorizes the collection of such interest.
    (f) Omission not a defense. Failure to comply with any standard 
prescribed in 4 CFR Chapter II or in this subpart shall not be available 
as a defense to any debtor.



Sec. 1150.9   Standards for compromise of claims.

    (a) Compromise offer. An offer to compromise may be accepted (1) if 
there is real doubt concerning the National Endowment for the Arts' 
ability to prove its case in court for the full amount claimed; (2) if 
the cost of collecting the

[[Page 382]]

claim does not justify the enforced collection of the full amount; (3) 
if in connection with statutory penalties or forfeitures established as 
an aid to enforcement and to compel compliance, the National Endowment 
for the Arts' enforcement policy will be adequately served by acceptance 
of the sum to be agreed upon, or (4) for other reasons deemed valid by 
the General Counsel (or his designee) and made a part of the claim 
record.
    (b) Documentary evidence of compromise. No compromise of a claim 
shall be final or binding on the Endowment unless it is in writing and 
signed by the appropriate officer who has authority to compromise the 
claim pursuant to this subpart.



Sec. 1150.10   Standards for suspension or termination of collection action.

    (a) Suspension of collection action. Collection action shall be 
suspended temporarily on a claim when the debtor cannot be located after 
diligent effort but there is reason to believe that future collection 
action may be sufficiently productive to justify periodic review and 
action on the claim, having consideration for its size and the amount 
which may be realized. Collection action may be suspended temporarily on 
a claim when the debtor owns no substantial equity in realty and is 
presently unable to make payment on the National Endowment for the Arts' 
claim or effect a compromise, but his future prospects justify retention 
of the claim for periodic review and action and (1) the applicable 
statute of limitations has been tolled or started anew or (2) future 
collection can be effected by offset notwithstanding the statute of 
limitations. Suspension as to a particular debtor should not defer the 
early liquidation of security for the debt.
    (b) Termination of collection action. Collection action may be 
terminated and the Endowment file closed for the following reasons: (1) 
No substantial amount can be collected; (2) the debtor cannot be 
located; (3) the cost will exceed recovery; (4) the claim is legally 
without merit; or (5) the claim cannot be substantiated by evidence.



Sec. 1150.11   Referral to GAO or Justice Department.

    (a) Claims referred. Claims which cannot be collected, compromised, 
or terminated in accordance with 4 CFR parts 101 to 105 will be referred 
to the General Accounting Office in accordance with 31 U.S.C. 71 or to 
the Department of Justice if the Endowment has been granted an exception 
from referrals to the General Accounting Office. Also, if there is doubt 
as to whether collection action should be suspended or terminated on a 
claim, the claim may be referred to the General Accounting Office for 
advice. When recovery of a judgment is prerequisite to imposition of 
administrative sanctions, the claim may be referred to the Justice 
Department for litigation even though termination of collection activity 
might otherwise be considered.
    (b) Prompt referral. Such referrals shall be made as early as 
possible consistent with aggressive collection action and in any event, 
well within the statute of limitations for bringing suit against the 
debtor.



PART 1151--NONDISCRIMINATION ON THE BASIS OF HANDICAP--Table of Contents




                      Subpart A--General Provisions

Sec.
1151.1  Purpose.
1151.2  Application.
1151.3  Definitions.
1151.4  Notice.
1151.5  Inconsistent State laws and effect of employment opportunities.
1151.6--1151.10  [Reserved]

    Subpart B--Standards for Determining Who Are Handicapped Persons

1151.11  Handicapped person.
1151.12  Qualified handicapped person.
1151.13--1151.15  [Reserved]

                  Subpart C--Discrimination Prohibited

                                 General

1151.16  General prohibitions against discrimination.
1151.17  Specific discriminatory actions prohibited.
1151.18  Illustrative examples.
1151.19--1151.20  [Reserved]

                          Program Accessibility

1151.21  Discrimination prohibited.

[[Page 383]]

1151.22  Existing facilities.
1151.23  New construction.
1151.24  Historic Properties.  [Reserved]
1151.25--1151.30  [Reserved]

                               Employment

1151.31  Discrimination prohibited.
1151.32  Reasonable accommodation.
1151.33  Employment criteria.
1151.34  Preemployment inquiries.
1151.35--1151.40  [Reserved]

                         Subpart D--Enforcement

1151.41  Assurances required.
1151.42  Self evaluation.
1151.43  Adoption of grievance procedures.
1151.44  Endowment enforcement and compliance procedures.
1151.45--1151.50  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 44 FR 22734, Apr. 17, 1979, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1151.1  Purpose.

    The purpose of this part is to implement section 504 of the 
Rehabilitation Act of 1973, which is designed to eliminate 
discrimination on the basis of handicap in any program or activity 
receiving Federal financial assistance.



Sec. 1151.2  Application.

    This part applies to each recipient of financial assistance from the 
National Endowment for the Arts and to each program or activity that 
receives or benefits from such assistance.



Sec. 1151.3  Definitions.

    As used in this part, the term:
    (a) The Act means the Rehabilitation Act of 1973, Public Law 93-112, 
as amended by the Rehabilitation Act Amendments of 1974, (Pub. L. 93-
516, 29 U.S.C. 706 et seq.) and the Comprehensive Rehabilitation 
Services Amendments of 1978, (Pub. L. 95-602).
    (b) Section 504 means section 504 of the Act.
    (c) Endowment means the National Endowment for the Arts.
    (d) Chairman means the Chairman, National Endowment for the Arts.
    (e) Recipient means any state or its political subdivision, any 
instrumentality of a state or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which federal financial assistance is extended directly or 
through another recipient, including any successor, assignee, or 
transferee of a recipient, but excluding the ultimate beneficiary of the 
assistance.
    (f) Federal financial assistance means any grant, loan, contract 
(other than a procurement contract or a contract of insurance or 
guaranty), or any other arrangement by which the Endowment provides or 
otherwise makes available assistance in the form of:
    (1) Funds;
    (2) Services of federal personnel; or
    (3) Real and personal property or any interest in or use of such 
property, including:
    (i) Transfers of leases of such property for less than fair market 
value or for reduced consideration; and,
    (ii) proceeds from a subsequent transfer or lease of such property 
if the federal share of its fair market value is not returned to the 
Federal Government.
    (g) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property.



Sec. 1151.4  Notice.

    (a) A recipient shall take appropriate initial and continuing steps 
to notify participants, beneficiaries, applicants, and employees, 
including those with impaired vision or hearing, and unions or 
professional organizations holding collective bargaining or professional 
agreements with the recipient that it does not discriminate on the basis 
of handicap in violation of section 504 and this part. The notification 
shall state, where appropriate, that the recipient does not discriminate 
in admission or access to, or employment in, its programs and 
activities. Methods of initial and continuing notification may include 
the posting of notices, publication in print, audio, and visual media, 
placement of notices in a recipient's publication, and distribution of 
other written and verbal communications.
    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants, or employees, it

[[Page 384]]

shall include in those materials or publications a statement of the 
policy described in paragraph (a) of this section. A recipient may meet 
the requirement of this paragraph either by including appropriate 
inserts in existing materials and publications or by revising and 
reprinting the materials and publications.



Sec. 1151.5  Inconsistent State laws and effect of employment opportunities.

    (a) Recipients are not excused from complying with this part as a 
result of state or local laws which limit the eligibility of handicapped 
persons to receive services or to practice a profession or occupation.
    (b) The presence of limited employment opportunities in a particular 
profession does not excuse a recipient from complying with the 
regulation. For example, a music school receiving Endowment financial 
assistance could not deny admission to a qualified blind applicant 
because a blind singer may experience more difficulty than a 
nonhandicapped singer in finding a job.
Secs. 1151.6--1151.10  [Reserved]



    Subpart B--Standards for Determining Who Are Handicapped Persons



Sec. 1151.11  Handicapped person.

    (a) Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment. For purposes of section 504, in connection with employment, 
this term does not include any individual who is an alcoholic or drug 
abuser whose current use of alcohol or drugs prevents such individual 
from performing the duties of the job in question or whose employment, 
by reason of such current alcohol or drug abuse, would constitute a 
direct threat to the property or safety of others.
    (b) As used in paragraph (a) of this section, the phrase:
    (1) Physical or mental impairment means:
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genito-urinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional and mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.
    (2) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means:
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but that is treated by a recipient as 
constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment;
    (iii) Has none of the impairments defined in paragraph (b)(1) of 
this section but is treated by a recipient as having such an impairment.



Sec. 1151.12  Qualified handicapped person.

    Qualified handicapped person means:
    (a) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question; and
    (b) With respect to services, a handicapped person who meets the 
essential

[[Page 385]]

eligibility requirements for the receipt of such services.
Secs. 1151.13--1151.15  [Reserved]



                  Subpart C--Discrimination Prohibited

                                 General



Sec. 1151.16  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
which receives or benefits from federal financial assistance.
    (b) These regulations do not prohibit the exclusion of 
nonhandicapped persons or persons with a specific type of handicap from 
the benefits of a program limited by Federal statute or executive order 
to handicapped persons or persons with a different type of handicap.
    (c) Recipients shall take appropriate steps to insure that no 
handicapped individual is denied the benefits of, excluded from 
participation in, or otherwise subjected to discrimination in any 
program receiving or benefiting from Endowment financial assistance 
because of the absence of appropriate auxiliary aids for individuals 
with impaired sensory, manual, or speaking skills.
    (d) Recipients shall take appropriate steps to insure that 
communications with their applicants, employees, and beneficiaries are 
available to persons with impaired vision and hearing.
    (e) Recipients shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.



Sec. 1151.17  Specific discriminatory actions prohibited.

    (a) A recipient, in providing any aid, benefit, service, or program 
either directly or through contractual, licensing, or other 
arrangements, shall not, on the basis of handicap:
    (1) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, program, or service;
    (2) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (3) Provide a qualified handicapped person with an aid, benefit, or 
service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (4) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons unless such 
action is necessary to provide qualified handicapped persons with aid, 
benefits, or services that are as effective as those provided to others;
    (5) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit, or service to beneficiaries of the recipient's program;
    (6) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (7) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving an aid, benefit, or service.
    (b) Despite the existence of separate or different programs or 
activities provided in accordance with this part, a recipient may not 
deny a qualified handicapped person the opportunity to participate in 
such programs or activities that are not separate or different.
    (c) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration:
    (1) That have the effect of subjecting qualified handicapped persons 
to discrimination on the basis of handicap;
    (2) That have the purpose or effect of defeating or substantially 
impairing accomplishment of the objectives of the recipient's program 
with respect to handicapped persons; or

[[Page 386]]

    (3) That perpetuate the discrimination of another recipient if both 
recipients are subject to common administrative control or are agencies 
of the same state.
    (d) A recipient may not, in determining the site or location of a 
facility, make selections:
    (1) That have the effect of excluding handicapped persons from, 
denying them the benefits of, or otherwise subjecting them to 
discrimination under any program or activity that receives or benefits 
from federal financial assistance; or
    (2) That have the purpose or effect of defeating or substantially 
impairing the accomplishment of the objectives of the program or 
activity with respect to handicapped persons.
    (e) As used in this section, the aid, benefit, or service provided 
under a program or activity receiving or benefiting from federal 
financial assistance includes any aid, benefit, or service provided in 
or through a facility that has been constructed, expanded, altered, 
leased or rented, or otherwise acquired, in whole or in part, with 
federal financial assistance.



Sec. 1151.18  Illustrative examples.

    (a) The following examples will illustrate the application of the 
foregoing provisions to some of the activities funded by the National 
Endowment for the Arts.
    (1) A museum exhibition catalogue or small press editions supported 
by the Endowment may be made usable by the blind and the visually 
impaired through cassette tapes, records, discs, braille, readers and 
simultaneous publications;
    (2) A theatre performance supported by Federal funds may be made 
available to deaf and hearing impaired persons through the use of a sign 
language interpreter or by providing scripts in advance of the 
performance.
    (3) A performing arts organization receiving Federal funds for a 
specific program offered in an inaccessible facility may arrange to 
provide a reasonable opportunity for that program to be offered to the 
public at large in an alternative accessible space; e.g., a theatre 
offering four different plays a season may offer at least one 
performance of each play in an alternative accessible space.
    (4) Recipients of federal funds should make every effort to assure 
that they do not support organizations or individuals that discriminate;
    (5) A handicapped person with experience and expertise equal to 
qualification standards established by a planning or advisory board may 
not be excluded from participation on the board on the basis of 
handicap. This does not mean that every planning or advisory board 
necessarily must include a handicapped person.
    (b) Despite the existence of permissible separate or different 
programs, e.g., periodic performances in alternative accessible spaces, 
a physically handicapped person who wishes to be, and can be, escorted 
to a seat, may not be denied such access to an otherwise inaccessible 
theatre.
    (c) State arts agencies are obligated to develop methods of 
administering federal funds so as to ensure that handicapped persons are 
not subjected to discrimination on the basis of handicap either by sub-
grantees or by the manner in which the funds are distributed.
    (d) In the event Endowment funds are utilized to construct, expand, 
alter, lease or rent a facility, the benefits of the programs and 
activities provided in or through that facility must be conducted in 
accordance with these regulations, e.g., a museum receiving a grant to 
renovate an existing facility must assure that all museum programs and 
activities conducted in that facility are accessible to handicapped 
persons.
    (e) In carrying out the mandate of section 504 and these 
implementing regulations recipients should make every effort to 
administer Endowment assisted programs and activities in a setting in 
which able-bodied and disabled persons are integrated, e.g., tours made 
available to the hearing impaired should be open to the public at large 
and everyone should be permitted to enjoy the benefits of a tactile 
experience in a museum.

[[Page 387]]

Secs. 1151.19--1151.20  [Reserved]

                          Program Accessibility



Sec. 1151.21   Discrimination prohibited.

    No qualified handicapped person shall, because a recipient's 
facilities are inaccessible to or unusable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity to which 
this part applies.



Sec. 1151.22   Existing facilities.

    (a) A recipient shall operate each program or activity to which this 
part applies so that the program or activity, when viewed in its 
entirety, is readily accessible to and usable by handicapped persons. 
This paragraph does not necessarily require a recipient to make each of 
its existing facilities or every part of a facility accessible to and 
usable by handicapped persons.
    (b) A recipient may comply with the requirement of paragraph (a) of 
this section through alteration of existing facilities, the construction 
of new facilities, or any other methods that result in making its 
program or activity accessible to handicapped persons. A recipient is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with paragraph (a) 
of this section. In choosing among available methods for meeting the 
requirement of paragraph (a) of this section, a recipient shall give 
priority to those methods that offer programs and activities to 
handicapped persons in the most integrated setting appropriate.
    (c) Time period. A recipient shall comply with the requirement of 
paragraph (a) of this section within sixty days of the effective date of 
this part except that where structural changes are necessary to make 
programs or activities in existing facilities accessible such changes 
shall be made as soon as possible but in no event later than three years 
after the effective date of this part.
    (d) Transition plan. In the event structural changes to facilities 
are necessary to meet the requirement of paragraph (a) of this section, 
a recipient shall develop, within one year of the effective date of this 
part, a transition plan setting forth the steps necessary to complete 
such changes. The plan shall be developed with the assistance of 
interested persons, including handicapped persons or organizations 
representing handicapped persons. Upon request, the recipient shall make 
available for public inspection a copy of the transition plan. The plan 
shall, at a minimum:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility of its program or activity to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the person responsible for implementation of the plan.



Sec. 1151.23   New construction.

    (a) Design, construction, and alteration. New facilities shall be 
designed and constructed to be readily accessible to and usable by 
handicapped persons. Alterations to existing facilities shall, to the 
maximum extent feasible, be designed and constructed to be readily 
accessible to and usable by handicapped persons.
    (b) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms

[[Page 388]]

and other spaces that, because of their intended use, will not require 
accessibility to the public or beneficiaries or result in the employment 
or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.

[44 FR 22734, Apr. 17, 1979, as amended at 55 FR 52138, 52142, Dec. 19, 
1990]
Sec. 1151.24  Historic Properties. [Reserved]
Secs. 1151.25--1151.30  [Reserved]

                               Employment



Sec. 1151.31  Discrimination prohibited.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be subjected to discrimination in employment under any program or 
activity that receives or benefits from federal financial assistance.
    (b) A recipient shall make all decisions concerning employment under 
any program or activity to which this part applies in a manner which 
ensures that discrimination on the basis of handicap does not occur and 
may not limit, segregate, or classify applicants or employees in any way 
that adversely affects their opportunities or status because of 
handicap.
    (c) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this paragraph include relationships 
with employment and referral agencies, with labor unions, with 
organizations providing or administering fringe benefits to employees of 
the recipients, and with organizations providing training and 
apprenticeship programs.
    (d) The prohibition against discrimination in employment applies to 
the following activities:
    (1) Recruitment, advertising, and the processing of applications for 
employment;
    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff, and 
rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absences, sick leave, or any other leave;
    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (7) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, and selection for leaves of absence to pursue training;
    (8) Employer sponsored activities, including social or recreational 
programs; and
    (9) Any other term, condition, or privilege of employment.
    (e) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.



Sec. 1151.32  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant or employee unless the recipient can demonstrate that the 
accommodation would impose an undue hardship on the operation of its 
program.
    (b) Reasonable accommodation may include:
    (1) Making facilities used by employees readily accessible to and 
usable by handicapped persons; and
    (2) Job restructuring, part-time or modified work schedules, 
acquisition, or modification of equipment or devices, such as use of 
telecommunication devices and amplifiers on telephones, the provision of 
readers or interpreters, and other similar actions.
    (c) In determining pursuant to paragraph (a) of this section whether 
an accommodation would impose an undue

[[Page 389]]

hardship on the operation of a recipient's program, factors to be 
considered include:
    (1) The overall size of the recipient's program with respect to 
number of employees, number and type of facilities, and size of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of the recipient's workforce; and
    (3) The nature and cost of the accommodation needed.



Sec. 1151.33  Employment criteria.

    (a) A recipient may not make use of any employment test or other 
selection criterion that screens out or tends to screen out handicapped 
persons or any class of handicapped persons unless:
    (1) The test score or other selection criterion, as used by the 
recipient, is shown to be job-related for the position in question; and
    (2) Alternative job-related tests or criteria are unavailable.
    (b) A recipient shall select and administer tests concerning 
employment so as best to ensure that, when administered to an applicant 
or employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude, or other factors relevant to adequate 
performance of the job in question.



Sec. 1151.34  Preemployment inquiries.

    A recipient may not, except as provided below, conduct a 
preemployment medical examination, make preemployment inquiry as to 
whether the applicant is a handicapped person, or inquire as to the 
nature or severity of a handicap. A recipient may, however, make 
preemployment inquiry into an applicant's ability to perform job-related 
functions.
    (a) When a recipient is taking remedial action to correct the 
effects of past discrimination, when a recipient is taking voluntary 
action to overcome the effects of conditions that resulted in limited 
participation in its federally assisted program or activity, or when a 
recipient is taking affirmative action pursuant to section 504 of the 
Act, the recipient may invite applicants for employment to indicate 
whether and to what extent they are handicapped, provided, that:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary or 
affirmative action efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential as 
provided in paragraph (c) of this section, that refusal to provide it 
will not subject the applicant or employee to any adverse treatment, and 
that it will be used only in accordance with this part.
    (b) Nothing in this section shall prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty, 
provided, that:
    (1) All entering employees are subjected to such an examination 
regardless of handicap; and
    (2) The results of such an examination are used only in accordance 
with the requirements of this part.
    (c) Information obtained in accordance with this section as to the 
medical condition or history of the applicant shall be collected and 
maintained on separate forms that shall be accorded confidentiality as 
medical records, except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons and regarding necessary 
accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Government officials investigating compliance with the Act shall 
be provided relevant information upon request.

[44 FR 22734, Apr. 17, 1979; 45 FR 57129, Aug. 27, 1980]

[[Page 390]]

Secs. 1151.35--1151.40  [Reserved]



                         Subpart D--Enforcement



Sec. 1151.41  Assurances required.

    (a) An applicant for federal financial assistance for a program or 
activity to which this part applies shall submit an assurance, on a form 
specified by the Chairman, that the program will be operated in 
compliance with this part. An applicant may incorporate these assurances 
by reference in subsequent applications to the Endowment.
    (b) Duration of obligation. (1) In the case of federal financial 
assistance extended to provide personal property, the assurance will 
obligate the recipient for the period during which it retains ownership 
or possession of the property.
    (2) In all other cases the assurance will obligate the recipient for 
the period during which federal financial assistance is extended.
    (c) Covenants. Where property is purchased or improved with federal 
financial assistance, the recipient shall agree to include in any 
instrument effecting or recording any transfer of the property a 
covenant running with the property 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.



Sec. 1151.42  Self evaluation.

    (a) A recipient shall within six months of the effective date of 
this part:
    (1) Evaluate, with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons, 
its current policies and practices and the effects thereof that do not 
or may not meet the requirements of this part;
    (2) Modify, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
any policies and practices that do not meet the requirements of this 
part; and
    (3) Take, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
appropriate remedial steps to eliminate the effects of any 
discrimination that resulted from adherence to these policies and 
practices.
    (4) Maintain on file, make available for public inspection, and 
provide to the Endowment upon request, for at least three years 
following completion of the self-evaluation:
    (i) A list of the interested persons consulted;
    (ii) A description of areas examined and any problems identified; 
and,
    (iii) A description of any modifications made and of any remedial 
steps taken.
    (5) The completed self-evaluation should be signed by a responsible 
official designated to coordinate the recipient's efforts in connection 
with this section.



Sec. 1151.43  Adoption of grievance procedures.

    A recipient may adopt an internal grievance procedure in order to 
provide for the prompt and equitable resolution of complaints alleging 
any action prohibited by this part. A responsible official should be 
designated to coordinate the recipient's efforts in connection with this 
section. Such procedures need not be established with respect to 
complaints from applicants for employment.



Sec. 1151.44  Endowment enforcement and compliance procedures.

    The procedural provisions applicable to title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in 
Secs. 1110.8 through 1110.11 of part 1110 of this title.
Secs. 1151.45--1151.50  [Reserved]

[[Page 391]]



PART 1152--INTERGOVERNMENTAL REVIEW OF NATIONAL ENDOWMENT FOR THE ARTS PROGRAMS AND ACTIVITIES--Table of Contents




Sec.
1152.1  What is the purpose of these regulations?
1152.2  What definitions apply to these regulations?
1152.3  What programs and activities of the Endowment are subject to 
          these regulations?
1152.4  What are the Chairman's general responsibilities under the 
          Order?
1152.5  What is the Chairman's obligation with respect to Federal 
          interagency coordination?
1152.6  What procedures apply to the selection of programs and 
          activities under these regulations?
1152.7  How does the Chairman communicate with state and local officials 
          concerning the Endowment's programs and activities?
1152.8  How does the Chairman provide states with an opportunity to 
          comment on proposed federal financial assistance?
1152.9  How does the Chairman receive and respond to comments?
1152.10  How does the Chairman make efforts to accommodate 
          Intergovernmental concerns?
1152.11  What are the Chairman's obligations in interstate situations?
1152.12  How may a state simplify, consolidate, or substitute federally 
          required state plans?
1152.13  May the Chairman waive any provision of these regulations?

    Authority: E.O. 12372, July 14, 1982 (47 FR 30959), as amended April 
8, 1983 (48 FR 15887); sec. 401 of the Intergovernmental Cooperation Act 
of 1968, as amended (31 U.S.C. 6506)

    Source: 48 FR 29352, June 24, 1983, unless otherwise noted.



Sec. 1152.1  What is the purpose of these regulations?

     (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovernmental 
Cooperation Act of 1968.
     (b) these regulations are intended to foster an intergovernmental 
partnership and a strengthened Federalism by relying on state processes 
and on state, areawide, regional and local coordination for review of 
proposed Federal financial assistance and direct Federal development.
     (c) These regulations are intended to improve the internal 
management of the Endowment, and are not intended to create any right or 
benefit enforceable at law by a party against the Endowment or its 
officers.



Sec. 1152.2  What definitions apply to these regulations?

     Chairman means the Chairman of the National Endowment for the Arts 
or an official or employee of the Endowment acting for the Chairman 
under a delegation of authority.
     Endowment means the National Endowment for the Arts.
     Order means Executive Order 12372, issued July 14, 1982, and 
amended April 8, 1983 and titled ``Intergovernmental Review of Federal 
Programs.''
     State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.



Sec. 1152.3  What programs and activities of the Endowment are subject to these regulations?

     The Chairman publishes in the Federal Register a list of the 
Endowment's programs and activities that are subject to these 
regulations.



Sec. 1152.4  What are the Chairman's general responsibilities under the Order?

     (a) The Chairman provides opportunities for consultation by elected 
officials of those state and local governments that would provide the 
non-Federal funds for, or that would be directly affected by, proposed 
Federal financial assistance from the Endowment.
     (b) If a state adopts a process under the Order to review and 
coordinate proposed Federal financial assistance the Chairman, to the 
extent permitted by law:
     (1) Uses the state process to determine official views of state and 
local elected officials;
     (2) Communicates with state and local elected officials as early in 
a program planning cycle as is reasonably

[[Page 392]]

feasible to explain specific plans and actions;
    (3) Makes efforts to accommodate state and local elected officials' 
concerns with proposed Federal financial assistance that is communicated 
through the state process;
    (4) Allows the states to simplify and consolidate existing federally 
required state plan submissions;
    (5) Where state planning and budgeting systems are sufficient and 
where permitted by law, encourages the substitution of state plans for 
federally required state plans;
    (6) Seeks the coordination of views of affected state and local 
elected officials in one state with those of another state when proposed 
Federal financial assistance has an impact on interstate metropolitan 
urban centers or other interstate areas; and
    (7) Supports state and local governments by discouraging the 
reauthorization or creation of any planning organization which is 
federally-funded, which has a limited purpose, and which is not 
adequately representative of, or accountable to, state or local elected 
officials.



Sec. 1152.5   What is the Chairman's obligation with respect to Federal interagency coordination?

    The Chairman to the extent practicable, consults with and seeks 
advice from all other substantially affected Federal departments and 
agencies in an effort to assure full coordination between such agencies 
and the Endowment regarding programs and activities covered under these 
regulations.



Sec. 1152.6  What procedures apply to the selection of programs and activities under these regulations?

    (a) A state may select any program or activity published in the 
Federal Register in accordance with Sec. 1152.3 of this part for 
intergovernmental review under these regulations. Each state, before 
selecting programs and activities shall consult with local elected 
officials.
    (b) Each state that adopts a process shall notify the Chairman of 
the Endowment's programs and activities selected for that process.
    (c) A state may notify the Chairman of changes in its selections at 
any time. For each change, the state shall submit to the Chairman an 
assurance that the state has consulted with elected local officials 
regarding the change. The Endowment may establish deadlines by which 
states are required to inform the Chairman of changes in their program 
selections.
    (d) The Chairman uses a state's process as soon as feasible, 
depending on individual programs and activities, after the Chairman is 
notified of its selections.



Sec. 1152.7  How does the Chairman communicate with state and local officials concerning the Endowment's programs and activities?

    (a) [Reserved]
    (b) The Chairman provides notice to directly affected state, 
areawide, regional, and local entities in a state of proposed Federal 
financial assistance if--
    (1) The state has not adopted a process under the Order; or
    (2) The assistance or development is under program or activity not 
selected for the state process.

This notice is made by the publication in the Federal Register or other 
appropriate means which the Endowment in its discretion deems 
appropriate.



Sec. 1152.8  How does the Chairman provide states with an opportunity to comment on proposed Federal financial assistance?

    (a) Except in unusual circumstance, the Chairman gives state 
processes or directly affected state, areawide, regional and local 
officials and entities--
    (1) [Reserved]
    (2) At least 60 days from the date established by the Chairman to 
comment on proposed Federal financial assistance.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Endowment have been 
delegated.



Sec. 1152.9  How does the Chairman receive and respond to comments?

    (a) The Chairman follows the procedures in Sec. 1152.10 if:

[[Page 393]]

    (1) A state office or official is designated to act as a single 
point of contact between a state process and all Federal agencies; and
    (2) That office or official transmits a state process recommendation 
for a program selected under Sec. 1152.6.
    (b)(1) The single point of contact is not obligated to transmit 
comments from state, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from state, areawide, regional, and local 
officials and entities that differ from it must also be transmitted.
    (c) If a state has not established a process, or is unable to submit 
a state process recommendation, state, areawide, regional and local 
officials and entities may submit comments to the Endowment.
    (d) If a program or activity is not selected for a state process, 
state, areawide, regional and local officials and entities may submit 
comments to the Endowment. In addition, if a state process 
recommendation for a nonselected program or activity is transmitted to 
the Endowment by the single point of contact, the Chairman follows the 
procedure of Sec. 1152.10 of this part.
    (e) The Chairman considers comments which do not constitute a state 
process recommendation submitted under these regulations and for which 
the Chairman is not required to apply the procedures of Sec. 1152.10 of 
this part, when such comments are provided by a single point of contact 
or directly to the Endowment by a commenting party.



Sec. 1152.10  How does the Chairman make efforts to accommodate Intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
the Endowment through its single point of contact, the Chairman either:
    (1) Accepts the recommendation;
    (2) Reaches a mutually agreeable solution with the state process; or
    (3) Provides the single point of contact with such written 
explanation of the decision, as the Chairman in his or her discretion 
deems appropriate. The Chairman may supplement the written explanation 
by also providing the explanation to the single point of contact by 
telephone other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section the 
Chairman informs the single point of contact that:
    (1) The Endowment will not implement its decision for ten days after 
the single point of contact receives the explanation; or
    (2) The Chairman has reviewed the decision and determined that, 
because of unusual circumstances, the ten-day waiting period is not 
feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1) of this section, a single point of contact is presumed to have 
received written notification 5 days after the date of mailing of such 
notification.



Sec. 1152.11  What are the Chairman's obligations in interstate situations?

    (a) The Chairman is responsible for:
    (1) Identifying proposed Gederal financial assistance that has an 
impact on interstate areas;
    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select the Endowment's program or 
activity;
    (3) Making efforts to identify and notify the affected state, 
areawide, regional, and local officials and entities in those states 
that have not adopted a process under the Order or do not select the 
Endowment's program or activity;
    (4) Responding pursuant to Sec. 1152.10 of this part if the Chairman 
receives a recommendation from a designated areawide agency transmitted 
by a single point of contact, in cases in which the review, 
coordination, and communication with the Endowment have been delegated.
    (b) The Chairman uses the procedures in Sec. 1152.10 if a state 
process provides a state process recommendation to the Endowment through 
a single point of contact.



Sec. 1152.12  How may a state simplify, consolidate, or substitute federally required state plans?

    (a) As used in this section:

[[Page 394]]

    (1) Simplify means that a state may develop its own format, choose 
its own submission date, and select the planning period for a state 
plan.
    (2) Consolidate means that a state may meet statutory and regulatory 
requirements by combining two or more plans into one document and that 
the state can select the format, submission date, and planning period 
for the consolidated plan.
    (3) Substitute means that a state may use a plan or other document 
that it has developed for its own purposes to meet Federal requirements.
    (b) If not inconsistent with law, a state may decide to try to 
simplify, consolidate, or substitute Federally required state plans 
without prior approval by the Chairman.
    (c) The Chairman reviews each state plan that a state has 
simplified, consolidated, or substituted and accepts the plan only if it 
meets Federal requirements.



Sec. 1152.13  May the Chairman waive any provision of these regulations?

    In an emergency, the Chairman may waive any provision of these 
regulations.



PART 1153--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE NATIONAL ENDOWMENT FOR THE ARTS--Table of Contents




Sec.
1153.101  Purpose.
1153.102  Application.
1153.103  Definitions.
1153.104--1153.109  [Reserved]
1153.110  Self-evaluation.
1153.111  Notice.
1153.112--153.129  [Reserved]
1153.130  General prohibitions against discrimination.
1153.131--1153.139  [Reserved]
1153.140  Employment.
1153.141--1153.148  [Reserved]
1153.149  Program accessibility: Discrimination prohibited.
1153.150  Program accessibility: Existing facilities.
1153.151  Program accessibility: New construction and alterations.
1153.152--1153.159  [Reerved]
1153.160  Communications.
1153.161---1153.169  [Reserved]
1153.170  Compliance procedures.
1153.171--1153.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 22895 and 22896, June 23, 1986, unless otherwise 
noted.



Sec. 1153.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978, which amended section 504 of the Rehabilitation Act of 1973 to 
prohibit discrimination on the basis of handicap in programs or 
activities conducted by Executive agencies or the United States Postal 
Service.



Sec. 1153.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1153.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe

[[Page 395]]

or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alocoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Qualified handicapped person means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, a handicapped person who is a member of 
a class of persons otherwise entitled by statute, regulation, or agency 
policy to receive education services from the agency.
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can acheive the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature;
    (3) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1153.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.

[[Page 396]]

    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.
Secs. 1153.104--1153.109  [Reserved]



Sec. 1153.110  Self-evaluation.

    (a) The agency shall, by August 24, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1153.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.
Secs. 1153.112--1153.129  [Reserved]



Secs. 1153.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangments, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.

[[Page 397]]

    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified handicapped persons to 
discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified handicapped persons to discrimination on 
the basis of handicap. However, the programs or activities of entities 
that are licensed or certified by the agency are not, themselves, 
covered by this part.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
Secs. 1153.131--1153.139  [Reserved]



Sec. 1153.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.
Secs. 1153.141--1153.148  [Reserved]



Sec. 1153.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1153.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1153.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons;
    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1153.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action

[[Page 398]]

would result in such an alteration or such burdens, the agency shall 
take any other action that would not result in such an alteration or 
such burdens but would nevertheless ensure that handicapped persons 
receive the benefits and services of the program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by handicapped persons. The agency is not 
required to make structural changes in existing facilities where other 
methods are effective in achieving compliance with this section. The 
agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151 through 4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
handicapped persons in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec. 1153.150(a) in historic preservation programs, the agency shall 
give priority to methods that provide physical access to handicapped 
persons. In cases where a physical alteration to an historic property is 
not required because of Sec. 1153.150(a)(2) or (a)(3), alternative 
methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide handicapped persons into or through 
portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by October 21, 1986, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by August 22, 1989, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by February 23, 1987, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 1153.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151 through 4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.

[[Page 399]]

Secs. 1153.152--1153.159  [Reserved]



Sec. 1153.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf person (TDD's) or 
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and adminstrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1153.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, handicapped persons receive the benefits and services 
of the program or activity.
Secs. 1153.161--1153.169  [Reserved]



Sec. 1153.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director, Office for Civil Rights, shall be responsible for 
coordinating implementation of this section. Complaints may be sent to 
the Office of General Counsel, National Endowment for the Arts, 1100 
Pennsylvania Avenue NW., Washington, DC 20506.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended

[[Page 400]]

(42 U.S.C. 4151-4157), or section 502 of the Rehabilitation Act of 1973, 
as amended (29 U.S.C. 792), is not readily accessible to and usable by 
handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1153.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[51 FR 22895 and 22896, June 23, 1986, as amended at 51 FR 22895, June 
23, 1986]
Secs. 1153.171--1153.999  [Reserved]



PART 1154--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents



                           Subpart A--General

Sec.
1154.100  Purpose.
1154.105  Definitions.
1154.110  Coverage.
1154.115  Policy.

                       Subpart B--Effect of Action

1154.200  Debarment or suspension.
1154.205  Ineligible persons.
1154.210  Voluntary exclusion.
1154.215  Exception provision.
1154.220  Continuation of covered transactions.
1154.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

1154.300  General.
1154.305  Causes for debarment.
1154.310  Procedures.
1154.311  Investigation and referral.
1154.312  Notice of proposed debarment.
1154.313  Opportunity to contest proposed debarment.
1154.314  Debarring official's decision.
1154.315  Settlement and voluntary exclusion.
1154.320  Period of debarment.
1154.325  Scope of debarment.

                          Subpart D--Suspension

1154.400  General.
1154.405  Causes for suspension.
1154.410  Procedures.
1154.411  Notice of suspension.
1154.412  Opportunity to contest suspension.
1154.413  Suspending official's decision.
1154.415  Period of suspension.
1154.420  Scope of suspension.

   Subpart E--Responsibilities of GSA, Arts Endowment and Participants

1154.500  GSA responsibilities.
1154.505  Arts Endowment responsibilities.
1154.510  Participants' responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

1154.600  Purpose.
1154.605  Definitions.
1154.610  Coverage.
1154.615  Grounds for suspension of payments, suspension or termination 
          of grants, or suspension or debarment.
1154.620  Effect of violation.
1154.625  Exception provision.
1154.630  Certification requirements and procedures.
1154.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

Appendix A to Part 1154--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions


[[Page 401]]


Appendix B to Part 1154--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions

Appendix C to Part 1154--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: 20 U.S.C. 959(a)(1); 41 U.S.C. 701 et seq.; E.O. 12549, 3 
CFR, 1986 comp., p. 189.

    Source: 53 FR 19201 and 19204, May 26, 1988, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notices 
published at 55 FR 21679, May 25, 1990, and 60 FR 33036, June 26, 1995.

    Editorial Notes:
    (1) For nomenclature changes to part 1154, see 53 FR 19201, May 26, 
1988.
    (2) For additional information, see related documents published at 
52 FR 20360, May 29, 1987, 53 FR 19160, May 26, 1988, and 53 FR 34474, 
September 6, 1988.



                           Subpart A--General



Sec. 1154.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 1154.105), and participants who have voluntarily 
excluded themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040, 33062, June 26, 1995]



Sec. 1154.105  Definitions.

    The following definitions apply to this part:
     Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.

[[Page 402]]

     Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
     Arts Endowment. National Endowment for the Arts.
     Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
     Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
     Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
     Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing regulations, the 
equal employment opportunity acts and executive orders, or the 
environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
     Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
     Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
     Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
     Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
     Principal. Officer, director, owner, partner, key employee, or 
other person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical

[[Page 403]]

influence on or substantive control over a covered transaction, whether 
or not employed by the participant. Persons who have a critical 
influence on or substantive control over a covered transaction are:
    (1) Principal investigators.
    (2) [Reserved]
     Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
     Respondent. A person against whom a debarment or suspension action 
has been initiated.
     State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
     Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
     Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.

[53 FR 19201, 19204, May 26, 1988, as amended at 60 FR 33041, 33062, 
June 26, 1995]



Sec. 1154.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.

[[Page 404]]

    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart B, ``Effect of Action,'' Sec. 1154.200, ``Debarment 
or suspension,'' sets forth the consequences of a debarment or 
suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 1154.110(a). Sections 1154.325, ``Scope of 
debarment,'' and 1154.420, ``Scope of suspension,'' govern the extent to 
which a specific participant or organizational elements of a participant 
would be automatically included within a debarment or suspension action, 
and the conditions under which affiliates or persons associated with a 
participant may also be brought within the scope of the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19201, 19204, May 26, 1988, as amended at 60 FR 33041, 33062, 
June 26, 1995]



Sec. 1154.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 1154.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency

[[Page 405]]

shall enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 1154.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 1154.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041, 33062, June 26, 1995]



Sec. 1154.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 1154.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 1154.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 1154.315 are 
excluded in accordance with the terms of their settlements. Arts 
Endowment shall, and participants may, contact the original action 
agency to ascertain the extent of the exclusion.



Sec. 1154.215  Exception provision.

    The Arts Endowment may grant an exception permitting a debarred, 
suspended, or voluntarily excluded person, or a person proposed for 
debarment under 48 CFR part 9, subpart 9.4, to participate in a 
particular covered transaction upon a written determination by the 
agency head or an authorized designee stating the reason(s) for 
deviating from the Presidential policy established by Executive Order 
12549 and Sec. 1154.200. However, in accordance with the President's 
stated intention in the Executive Order, exceptions shall be granted 
only infrequently. Exceptions shall be reported in accordance with 
Sec. 1154.505(a).

[60 FR 33041, 33062, June 26, 1995]



Sec. 1154.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 1154.215.

[60 FR 33041, 33062, June 26, 1995]



Sec. 1154.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 1154.215 or Sec. 1154.220, a 
participant shall not knowingly do business under

[[Page 406]]

a covered transaction with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See Appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.

[60 FR 33041, 33062, June 26, 1995]



                          Subpart C--Debarment



Sec. 1154.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 1154.305, using procedures established in Secs. 1154.310 through 
1154.314. The existence of a cause for debarment, however, does not 
necessarily require that the person be debarred; the seriousness of the 
person's acts or omissions and any mitigating factors shall be 
considered in making any debarment decision.



Sec. 1154.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 1154.300 through 1154.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 1154.215 or Sec. 1154.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 1154.315 or of any settlement of a 
debarment or suspension action; or

[[Page 407]]

    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in Sec. 1154.615 of 
this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 1154.310  Procedures.

    Arts Endowment shall process debarment actions as informally as 
practicable, consistent with the principles of fundamental fairness, 
using the procedures in Secs. 1154.311 through 1154.314.



Sec. 1154.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 1154.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 1154.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 1154.311 through Sec. 1154.314, and 
any other Arts Endowment procedures, if applicable, governing debarment 
decisionmaking; and
    (e) Of the potential effect of a debarment.



Sec. 1154.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 1154.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c) (1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance

[[Page 408]]

of the evidence. Where the proposed debarment is based upon a conviction 
or civil judgment, the standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 1154.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 1154.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, Arts Endowment may, 
at any time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).



Sec. 1154.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see 1154.305(c)(5)), the period of debarment 
shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 1154.311 through 1154.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 1154.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 1154.311 through 
1154.314).

[[Page 409]]

    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance of the benefits derived from the conduct shall 
be evidence of such knowledge, approval, or acquiescence.



                          Subpart D--Suspension



Sec. 1154.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 1154.405 using procedures established in Secs. 1154.410 
through 1154.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 1154.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 1154.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 1154.400 through 1154.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 1154.305(a); or
    (2) That a cause for debarment under Sec. 1154.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 1154.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. Arts Endowment shall process suspension 
actions as informally as practicable, consistent with principles of 
fundamental fairness, using the procedures in Sec. 1154.411 through 
Sec. 1154.413.



Sec. 1154.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further

[[Page 410]]

Federal Government dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 1154.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Secs. 1154.411 through 1154.413 and any 
other Arts Endowment procedures, if applicable, governing suspension 
decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 1154.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on the same facts as the 
suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 1154.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 1154.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 1154.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.

[[Page 411]]

    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 1154.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 1154.325), except that the procedures of Secs. 1154.410 
through 1154.413 shall be used in imposing a suspension.



   Subpart E--Responsibilities of GSA, Arts Endowment and Participants



Sec. 1154.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 1154.505  Arts Endowment responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which Arts Endowment has granted exceptions under Sec. 1154.215 
permitting participation by debarred, suspended, or voluntarily excluded 
persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 1154.500(b) and of 
the exceptions granted under Sec. 1154.215 within five working days 
after taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Arts Endowment officials shall check the Nonprocurement List 
before entering covered transactions to determine whether a participant 
in a primary transaction is debarred, suspended, ineligible, or 
voluntarily excluded (Tel. ).
    (e) Arts Endowment officials shall check the Nonprocurement List 
before approving principals or lower tier participants where agency 
approval of the principal or lower tier participant is required under 
the terms of the transaction, to determine whether such principals or 
participants are debarred, suspended, ineligible, or voluntarily 
excluded.



Sec. 1154.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(Tel. ).

[[Page 412]]

Adverse information on the certification will not necessarily result in 
denial of participation. However, the certification, and any additional 
information pertaining to the certification submitted by the 
participant, shall be considered in the administration of covered 
transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to Arts Endowment if at any time 
the participant learns that its certification was erroneous when 
submitted or has become erroneous by reason of changed circumstances. 
Participants in lower tier covered transactions shall provide the same 
updated notice to the participant to which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21703, May 25, 1990, unless otherwise noted.



Sec. 1154.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 1154.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 1154.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a

[[Page 413]]

matching requirement; consultants or independent contractors not on the 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers the instrumentality to be an agency of the 
State government.



Sec. 1154.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.



Sec. 1154.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 1154.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a) through (g) and/or (B) of the 
certification (Alternate I to appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.

[[Page 414]]



Sec. 1154.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 1154.615, and in accordance with applicable law, the grantee shall 
be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 1154.320(a)(2) of this 
part).



Sec. 1154.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 1154.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.

[[Page 415]]

    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 1154.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall report the conviction, in writing, within 10 calendar 
days, to his or her Federal agency grant officer, or other designee, 
unless the Federal agency has designated a central point for the receipt 
of such notices. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

Appendix A to Part 1154--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment

[[Page 416]]

under 48 CFR part 9, subpart 9.4, debarred, suspended, declared 
ineligible, or voluntarily excluded from participation in this covered 
transaction, unless authorized by the department or agency entering into 
this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

Appendix B to Part 1154--Certification Regarding Debarment, Suspension, 
  Ineligibilty and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.

[[Page 417]]

    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

  Appendix C to Part 1154--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:

[[Page 418]]

    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the

[[Page 419]]

Federal agency designates a central point for the receipt of such 
notices. When notice is made to such a central point, it shall include 
the identification number(s) of each affected grant.

[55 FR 21690, 21703, May 25, 1990]



PART 1157--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
1157.1  Purpose and scope of this part.
1157.2  Scope of subpart.
1157.3  Definitions.
1157.4  Applicability.
1157.5  Effect on other issuances.
1157.6  Additions and exceptions.

                    Subpart B--Pre-Award Requirements

1157.10  Forms for applying for grants.
1157.11  State plans.
1157.12  Special grant or subgrant conditions for ``high-risk'' 
          grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

1157.20  Standards for financial management systems.
1157.21  Payment.
1157.22  Allowable costs.
1157.23  Period of availability of funds.
1157.24  Matching or cost sharing.
1157.25  Program income.
1157.26  Non-Federal audit.

                    Changes, Property, and Subawards

1157.30  Changes.
1157.31  Real property.
1157.32  Equipment.
1157.33  Supplies.
1157.34  Copyrights.
1157.35  Subawards to debarred and suspended parties.
1157.36  Procurement.
1157.37  Subgrants.

              Reports, Records, Retention, and Enforcement

1157.40  Monitoring and reporting program performance.
1157.41  Financial reporting.
1157.42  Retention and access requirements for records.
1157.43  Enforcement.
1157.44  Termination for convenience.

                 Subpart D--After-the-Grant Requirements

1157.50  Closeout.
1157.51  Later disallowances and adjustments.
1157.52  Collection of amounts due.

                   Subpart E--Entitlements [Reserved]

    Authority: 20 U.S.C. 959(a)(1).

    Source: 53 FR 8081, 8087, Mar. 11, 1988, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 
53 FR 8028, March 11, 1988.



                           Subpart A--General



Sec. 1157.1  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 1157.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 1157.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for: (1) Goods and other 
tangible property received; (2) services performed by employees, 
contractors, subgrantees, subcontractors, and other payees; and (3) 
other amounts becoming owed under programs for which no current services 
or performance is required, such as annuities, insurance claims, and 
other benefit payments.
    Accrued income means the sum of: (1) Earnings during a given period 
from services performed by the grantee and goods and other tangible 
property delivered to purchasers, and (2) amounts becoming owed to the 
grantee for which no current services or performance is required by the 
grantee.

[[Page 420]]

    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For nonconstruction grants, the SF-269 
Financial Status Report (or other equivalent report); (2) for 
construction grants, the SF-271 Outlay Report and Request for 
Reimbursement (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 
688) certified by the Secretary of the Interior as eligible for the 
special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district,

[[Page 421]]

intrastate district, council of governments (whether or not incorporated 
as a nonprofit corporation under state law), any other regional or 
interstate government entity, or any agency or instrumentality of a 
local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than equipment 
as defined in this part.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. Termination does not include: (1) Withdrawal 
of funds awarded on the basis of the grantee's underestimate of the 
unobligated balance in a

[[Page 422]]

prior period; (2) withdrawal of the unobligated balance as of the 
expiration of a grant; (3) refusal to extend a grant or award additional 
funds, to make a competing or noncompeting continuation, renewal, 
extension, or supplemental award; or (4) voiding of a grant upon 
determination that the award was obtained fraudulently, or was otherwise 
illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 1157.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 1157.6, or:
    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under Title V, Subtitle D, Chapter 2, 
Section 583--the Secretary's discretionary grant program) and Titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and Part C of Title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).

[[Page 423]]

    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 1157.4(a) (3) through (8) are subject to Subpart E.



Sec. 1157.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 1157.6.



Sec. 1157.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 1157.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted.

[[Page 424]]

Previously submitted pages with information that is still current need 
not be resubmitted.



Sec. 1157.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for approval only the amended portions of 
the plan.



Sec. 1157.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grante or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 1157.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--

[[Page 425]]

    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 1157.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this

[[Page 426]]

section are not met. Grantees and subgrantees may also be paid by 
reimbursement for any construction grant. Except as otherwise specified 
in regulation, Federal agencies shall not use the percentage of 
completion method to pay construction grants. The grantee or subgrantee 
may use that method to pay its construction contractor, and if it does, 
the awarding agency's payments to the grantee or subgrantee will be 
based on the grantee's or subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using such method is the unwillingness or 
inability of the grantee to provide timely advances to the subgrantee to 
meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 1157.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 1157.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and

[[Page 427]]

    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          
For-profit organization other than a        48 CFR part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------



Sec. 1157.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 1157.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 1157.25, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 1157.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other

[[Page 428]]

provisions of the grant agreement expressly permit this kind of income 
to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be

[[Page 429]]

counted as cost sharing or matching. In the case of a subgrant, the 
terms of the grant agreement may require that the approval be obtained 
from the Federal agency as well as the grantee. In all cases, the 
approval may be given only if a purchase of the equipment or rental of 
the land would be approved as an allowable direct cost. If any part of 
the donated property was acquired with Federal funds, only the non-
federal share of the property may be counted as cost-sharing or 
matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 1157.22, in the same way as depreciation or 
use allowances for purchased equipment and buildings. The amount of 
depreciation or use allowances for donated equipment and buildings is 
based on the property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the grantee. This requirement 
will also be imposed by the grantee on subgrantees.



Sec. 1157.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 1157.34.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 1157.31 and 
1157.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the

[[Page 430]]

grant agreement specify another alternative (or a combination of the 
alternatives). In specifying alternatives, the Federal agency may 
distinguish between income earned by the grantee and income earned by 
subgrantees and between the sources, kinds, or amounts of income. When 
Federal agencies authorize the alternatives in paragraphs (g) (2) and 
(3) of this section, program income in excess of any limits stipulated 
shall also be deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 1157.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act of 1984 (31 
U.S.C. 7501-7) and Federal agency implementing regulations. The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial and compliance 
audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act, that receive Federal 
financial assistance and provide $25,000 or more of it in a fiscal year 
to a subgrantee shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Requirements for Grants and Other Agreements with 
Institutions of Higher Education, Hospitals and Other Nonprofit 
Organizations'' have met the audit requirement. Commercial contractors 
(private forprofit and private and governmental organizations) providing 
goods and services to State and local governments are not required to 
have a single audit performed. State and local govenments should use 
their own procedures to ensure that the contractor has complied with 
laws and regulations affecting the expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 1157.36 
shall be followed.

                    Changes, Property, and Subawards



Sec. 1157.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless

[[Page 431]]

waived by the awarding agency, certain types of post-award changes in 
budgets and projects shall require the prior written approval of the 
awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 1157.22) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 1157.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 1157.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.



Sec. 1157.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a

[[Page 432]]

grant or subgrant will vest upon acquisition in the grantee or 
subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 1157.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 1157.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place

[[Page 433]]

will, as a minimum, meet the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third part 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 1157.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 1157.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.

[[Page 434]]



Sec. 1157.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 1157.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 1157.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will follow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such

[[Page 435]]

use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative anaylsis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 1157.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services,

[[Page 436]]

geographic location may be a selection criteria provided its application 
leaves an appropriate number of qualified firms, given the nature and 
size of the project, to compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 1157.36(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with

[[Page 437]]

more than one source submitting an offer, and either a fixed-price or 
cost-reimbursement type contract is awarded. It is generally used when 
conditions are not appropriate for the use of sealed bids. If this 
method is used, the following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular

[[Page 438]]

procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price resonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 1157.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the

[[Page 439]]

system. Under a self-certification procedure, awarding agencies may wish 
to rely on written assurances from the grantee or subgrantee that it is 
complying with these standards. A grantee or subgrantee will cite 
specific procedures, regulations, standards, etc., as being in 
compliance with these requirements and have its system available for 
review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency,

[[Page 440]]

the Comptroller General of the United States, or any of their duly 
authorized representatives to any books, documents, papers, and records 
of the contractor which are directly pertinent to that specific contract 
for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).

[53 FR 8081, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19645, Apr. 
19, 1995]



Sec. 1157.37  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 1157.42 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 1157.10;
    (2) Section 1157.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 1157.21; and
    (4) Section 1157.50.

              Reports, Records, Retention, and Enforcement



Sec. 1157.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding

[[Page 441]]

agency requires quarterly or semi-annual reports. However, performance 
reports will not be required more frequently than quarterly. Annual 
reports shall be due 90 days after the grant year, quarterly or semi-
annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 1157.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extend required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that

[[Page 442]]

the Federal agency finds unnecessary for its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with paragraph Sec. 1157.41(e)(2)(iii) of this section.
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accural basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction

[[Page 443]]

grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 1157.41(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 1157.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 1157.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.
    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 1157.41(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 1157.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 1157.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 1157.41(b)(2).



Sec. 1157.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 1157.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits its expenditure report for 
the last quarter of the Federal fiscal year. In all other cases, the 
retention period starts on the day the grantee submits its

[[Page 444]]

final expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: Indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records Unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 1157.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the

[[Page 445]]

awarding agency expressly authorizes them in the notice of suspension or 
termination or subsequently. Other grantee or subgrantee costs during 
suspension or after termination which are necessary and not reasonably 
avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 1157.35).



Sec. 1157.44  Termination for convenience.

    Except as provided in Sec. 1157.43 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 1157.43 
or paragraph (a) of this section.



                 Subpart D--After-the-Grant Requirements



Sec. 1157.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:

In accordance with Sec. 1157.32(f), a grantee must submit an inventory 
of all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.



Sec. 1157.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:

[[Page 446]]

    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 1157.42;
    (d) Property management requirements in Secs. 1157.31 and 1157.32; 
and
    (e) Audit requirements in Sec. 1157.26.



Sec. 1157.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Chapter II). The 
date from which interest is computed is not extended by litigation or 
the filing of any form of appeal.



                   Subpart E--Entitlements [Reserved]



PART 1158--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
1158.100  Conditions on use of funds.
1158.105  Definitions.
1158.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

1158.200  Agency and legislative liaison.
1158.205  Professional and technical services.
1158.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

1158.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

1158.400  Penalties.
1158.405  Penalty procedures.
1158.410  Enforcement.

                          Subpart E--Exemptions

1158.500  Secretary of Defense.

                        Subpart F--Agency Reports

1158.600  Semi-annual compilation.
1158.605  Inspector General report.

Appendix A to Part 1158--Certification Regarding Lobbying
Appendix B to Part 1158--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121 (31 U.S.C. 1352); 20 U.S.C. 
959.

    Source: 55 FR 6737, 6755, Feb. 26, 1990, unless otherwise noted.

    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 1158.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has

[[Page 447]]

agreed to make any payment using nonappropriated funds (to include 
profits from any covered Federal action), which would be prohibited 
under paragraph (a) of this section if paid for with appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 1158.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.

[[Page 448]]

    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 1158.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event

[[Page 449]]

that requires disclosure or that materially affects the accuracy of the 
information contained in any disclosure form previously filed by such 
person under paragraph (a) or (b) of this section. An event that 
materially affects the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraph 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 1158.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1158.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and

[[Page 450]]

legislative liaison activities are allowable only where they are prior 
to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Pub. L. 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 1158.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1158.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as a 
condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, professional and 
technical services shall be limited to advice and analysis directly 
applying any professional or technical discipline. For example, drafting 
of a legal document accompanying a bid or proposal by a lawyer is 
allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 1158.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 1158.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1158.100 (a), does not apply in the case of any reasonable

[[Page 451]]

payment to a person, other than an officer or employee of a person 
requesting or receiving a covered Federal action, if the payment is for 
professional or technical services rendered directly in the preparation, 
submission, or negotiation of any bid, proposal, or application for that 
Federal contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 1158.110 (a) and (b) 
regarding filing a disclosure form by each person, if required, shall 
not apply with respect to professional or technical services rendered 
directly in the preparation, submission, or negotiation of any 
commitment providing for the United States to insure or guarantee a 
loan.
    (c) For purposes of paragraph (a) of this section, professional and 
technical services shall be limited to advice and analysis directly 
applying any professional or technical discipline. For example, drafting 
or a legal document accompanying a bid or proposal by a lawyer is 
allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 1158.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
Appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to

[[Page 452]]

continue in business, any prior violations by such person, the degree of 
culpability of such person, the ability of the person to pay the 
penalty, and such other matters as may be appropriate.
    (e) First offenders under paragraph (a) or (b) of this section shall 
be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 1158.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.



Sec. 1158.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 1158.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 1158.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see Appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the

[[Page 453]]

Secretary of the Senate and the Clerk of the House of Representatives no 
later than with the compilations due on May 31, 1991. OMB shall provide 
detailed specifications in a memorandum to these agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 1158.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

        Appendix A to Part 1158--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 454]]

       Appendix B to Part 1158--Disclosure Form to Report Lobbying

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[GRAPHIC] [TIFF OMITTED] TC01JA91.011



[[Page 456]]

[GRAPHIC] [TIFF OMITTED] TC01JA91.012



[[Page 457]]

      SUBCHAPTER C--FEDERAL COUNCIL ON THE ARTS AND THE HUMANITIES



PART 1160--INDEMNITIES UNDER THE ARTS AND ARTIFACTS INDEMNITY ACT--Table of Contents




Sec.
1160.1  Purpose and scope.
1160.2  Federal Council on the Arts and the Humanities.
1160.3  Definitions.
1160.4  Eligibility.
1160.5  Application for indemnification.
1160.6  Certificate of national interest.
1160.7  Indemnity agreement.
1160.8  Letter of intent.
1160.9  Loss adjustment.
1160.10  Certification of claim and amount of loss to the Congress.
1160.11  Appraisal procedures.
1160.12  Indemnification limits.

    Authority: 20 U.S.C. 971-977.

    Source: 56 FR 49848, Oct. 2, 1991, unless otherwise noted.



Sec. 1160.1  Purpose and scope.

    (a) This part sets forth the exhibition indemnity procedures of the 
Federal Council on the Arts and Humanities under the Arts and Artifacts 
Indemnity Act (Pub. L. 94-158) as required by section 2(a)(2) of the 
Act.
    (1) Eligible items from outside the United States while on 
exhibition in the United States or
    (2) Eligible items from the United States while on exhibition 
outside this country, preferably when they are part of an exchange of 
exhibitions.
    (b) Program guidelines and further information are available from 
the Indemnity Administrator, c/o Museum Program, National Endowment for 
the Arts, 1100 Pennsylvania Avenue, NW., Washington, DC 20506.

[56 FR 49848, Oct. 2, 1991, as amended at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.2  Federal Council on the Arts and the Humanities

    For the purposes of this part (45 CFR part 1160) the Federal Council 
on the Arts and the Humanities shall be composed of the Chairman of the 
National Endowment for the Arts, the Chairman of the National Endowment 
for the Humanities, the Secretary of Education, the Director of the 
National Science Foundation, the Librarian of Congress, the Chairman of 
the Commission of Fine Arts, the Archivist of the United States, the 
Commissioner, Public Buildings Service, General Services Administration, 
the Administrator of the General Services Administration, the Director 
of the United States Information Agency, the Secretary of the Interior, 
the Secretary of Commerce, the Secretary of Transportation, the Chairman 
of the National Museum Services Board, the Director of the Institute of 
Museum Services, the Secretary of Housing and Urban Development, the 
Secretary of Labor, the Secretary of Veterans Affairs, and the 
Commissioner of the Administration on Aging.



Sec. 1160.3  Definitions.

    For the purposes of this part:
    (a) Council means the Federal Council on the Arts and the Humanities 
as defined in Sec. 1160.2.
    (b) Letter of Intent means an agreement by the Council to provide an 
indemnity covering a future exhibition subject to compliance with all 
requirements at the date the indemnity is to be effective.
    (c) Lender means the owner of an object.
    (d) Eligible item means an object which qualifies for coverage under 
the Arts and Artifacts Indemnity Act.
    (e) Exhibition means a public display of an indemnified items(s) at 
one or more locations, as approved by the Council, presented by any 
person, nonprofit agency or institution, or Government, in the United 
States or elsewhere.
    (f) On Exhibition means the period of time beginning on the date an 
indemnified item leaves the place designated by the lender and ending on 
the termination date.
    (g) Indemnity Agreement means the contract between the Council and 
the indemnitee covering loss or damage to indemnified items under the 
authority of the Arts and Artifacts Indemnity Act.

[[Page 458]]

    (h) Indemnitee means the party or parties to an indemnity agreement 
issued by the Council, to whom the promise of indemnification is made.
    (i) Participating institution(s) means the location(s) where an 
exhibition indemnified under this part will be displayed.
    (j) Termination date means the date thirty (30) calendar days after 
the date specified in the indemnity Certificate by which an indemnified 
item is to be returned to the place designated by the lender or the date 
on which the item is actually so returned, whichever date is earlier. 
(In museum terms this means wall-to-wall coverage.) After 11:59 p.m. on 
the termination date, the item is no longer covered by the indemnity 
agreement unless an extension has theretofore been requested by the 
indemnitee and granted in writing by the Council.



Sec. 1160.4  Eligibility.

    An indemnity agreement made under these regulations shall cover:
    (a) Eligible items from outside the United States while on 
exhibition in the United States;
    (b) Eligible items from the United States while on exhibition 
outside this country, preferably when they are part of an exchange of 
exhibitions; and
    (c) Eligible items from the United States while on exhibition in the 
United States, in connection with other eligible items from outside the 
United States which are integral to the exhibition as a whole.

                                Example 1

    Museum A, an American art museum, is organizing a retrospective 
exhibition which will include more than 150 works of art by the 
Impressionist painter Auguste Renoir. The exhibition will present the 
full range of Renoir's production for the first time ever in an American 
museum. Museums B and C, large national museums in Paris and London, 
have agreed to lend 125 major works of art illustrating every aspect of 
Renoir's career. Museum A is also planning to include related works from 
other American public and private collections which have not been seen 
together since the artist's death in 1919. Museums D and E, major east 
coast American art museums, have agreed to lend 25 masterworks by 
Renoir. The exhibition will open in Chicago and travel to San Francisco 
and Washington.

                               Discussion

    Example 1 is a straightforward application of the amended indemnity 
regulations. Under the old regulations, only the works of art from 
Museums B and C, the foreign museums, would have been eligible for 
indemnification. Under the proposed Regulations, the works of art from 
American museums and other public and private collections also would be 
eligible for indemnification. In determining whether to indemnify the 
entire exhibition, the Federal Council will evaluate the exhibibition as 
a whole and whether the foreign loans are integral to the educational, 
cultural, historical or scientific significance of the exhibition. In 
this example, the Federal Council would likely approve indemnification 
of the entire exhibit.

                                Example 2

    Museum A in Massachusetts is organizing an exhibition celebrating 
250 Years of Decorative Arts in America, to be held in conjunction with 
the state's celebration of the millennium. Included among the objects to 
be borrowed from museums and historical societies in the United States 
are furniture, textiles, metalwork, ceramics, glass and jewelry, 
illustrating the best examples of American design from colonial times to 
the present. The curator traveled abroad recently and saw an exhibition 
of American quilts which have been acquired by a British decorative arts 
museums. He intends to borrow several of the quilts for the exhibition.

                               Discussion

    Example 2 raises the question as to whether the American museum 
organizing the exhibition has included the British-owned American quilts 
merely to obtain insurance relief. In determining whether to indemnify 
the entire exhibition, the Federal Council will evaluate the exhibition 
as a whole and whether the foreign loans are integral to achieving its 
educational, cultural and historical purposes. Here, it is likely that 
the Federal Council will conclude that the foreign work are not an 
essential component of the exhibition. The Federal Council also may seek 
additional information from the applicant to determine whether the 
objectives of the exhibition could have been accomplished as 
satisfactorily by borrowing American quilts from U.S. collections. On 
these facts, the Federal Council in all likelihood would deny 
indemnification for the entire exhibition.

                                Example 3

    Museum A, an American museum, is organizing an exhibition of the 
works of James Watkins, a nineteenth century American painter, focusing 
on his studies of human

[[Page 459]]

anatomy. Museum A has the foremost collection of preparatory drawings 
related to Watkins' major painting, ``The Surgeon and His Students.'' 
The painting is in the permanent collection of Museum B, located in the 
south of France, which has agreed to lend the painting for the 
exhibition. The exhibition will be shown at Museum B after the U.S. 
tour. American Universities, C and D, have also agreed to lend 
anatomical illustrations and drawings which show Watkins' development as 
a draughtsman. The exhibition and accompanying catalogue are expected to 
shed new light on Watkins contributions to art and scientific history.

                               Discussion

    Example 3 addresses the issue of whether the Federal Council will 
indemnify an exhibition even where the U.S. objects outnumber the 
foreign works. In determining whether to indemnify the entire 
exhibition, the Federal Council will evaluate the exhibition as a whole 
and the relationship of the foreign loans to the educational, cultural, 
historical and scientific significance of the exhibition. In this 
example, the exhibition promises to make important contributions not 
only to the history of art but also to the history of science. While 
there is only a single foreign work of art, it is clearly an essential 
component of the exhibition as a whole. The case for indemnification of 
the entire exhibition is further strengthened by the fact that a foreign 
masterpiece, which is closely related to the preparatory drawings and 
anatomical illustrations and drawings owned by American institutions, 
will be made available to the American public. Thus, the mere fact that 
the U.S. loans outnumber the foreign works will not in itself disqualify 
the entire exhibition for indemnification.

[60 FR 42466, Aug. 16, 1995]



Sec. 1160.5  Application for indemnification.

    An applicant for an indemnity shall submit an Application for 
Indemnification, addressed to the Indemnity Administrator, National 
Endowment for the Arts, Washington, DC 20506, which shall described as 
fully as possible:
    (a) The time, place, nature and Project Director/Curator of the 
exhibition for which the indemnity is sought;
    (b) Evidence that the owner and present possessor are willing to 
lend the eligible items, and both are prepared to be bound by the terms 
of the indemnity agreement;
    (c) The total value of all items to be indemnified, including a 
description of each item to be covered by the agreement and each item's 
value;
    (d) The source of valuations of each item, plus an opinion by a 
disinterested third party of the valuations established by lenders;
    (e) The significance, and the educational, cultural, historical, or 
scientific value of the items to be indemnified, and of the exhibition 
as a whole;
    (f) Statements describing policies, procedures, techniques, and 
methods to be employed with respect to:
    (1) Packing of items at the premises of, or the place designated by 
the lender;
    (2) Shipping arrangements;
    (3) Condition reports at lender's location;
    (4) Condition reports at borrower's location;
    (5) Condition reports upon return of items to lender's location;
    (6) Security during the exhibition and security during 
transportation, including couriers were applicable;
    (7) Maximum values to be transported in a single vehicle of 
transport.
    (g) Insurance arrangements, if any, which are proposed to cover the 
deductible amount provided by law or the excess over the amount 
indemnified;
    (h) Any loss incurred by the indemnitee or participating 
institutions during the three years prior to the Application for 
Indemnification which involved a borrowed or loaned item(s) or item(s) 
in their permanent collections where the amount of loss or damage 
exceeded $5,000. Details should include the date of loss, nature and 
cause of damage, and appraised value of the damaged items(s) both before 
and after loss;
    (i) If the application is for an exhibition of loans from the United 
States, which are being shown outside the United States, the applicant 
should describe in detail the nature of the exchange of exhibitions of 
which it is a part if any, including all circumstances surrounding the 
exhibition being shown in the United States, with particular emphasis on 
facts concerning insurance or indemnity arrangements.

[[Page 460]]

    (j) Upon proper submission of the above required information an 
application will be selected or rejected for indemnification by the 
Council. The review criteria include:
    (1) Review of educational, cultural, historical, or scientific value 
as required under the provisions of the Arts and Artifacts Indemnity 
Act;
    (2) Certification by the Director of the United States Information 
Agency that the exhibition is in the national interest; and
    (3) Review of the availability of indemnity obligational authority 
under section 5(b) of the Arts and Artifacts Indemnity Act (20 U.S.C. 
974).

[Approved under OMB control number 3135-0094]

    [56 FR 49848, Oct. 2, 1991; 56 FR 51842, Oct. 16, 1991. Redesignated 
at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.6  Certificate of national interest.

    After preliminary review the application will be submitted to the 
Director of the United States Information Agency for determination of 
national interest and issuance of a Certificate of National Interest.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.7  Indemnity agreement.

    In cases where the requirements of Secs. 1160.4 and 1160.5 have been 
met to the satisfaction of the Council, an Indemnity Agreement pledging 
the full faith and credit of the United States for the agreed value of 
the exhibition in question may be issued to the indemnitee by the 
Council, subject to the provisions of Sec. 1160.7.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



1160.8  Letter of intent.

    In cases where an exhibition proposed for indemnification is planned 
to begin on a date more than twelve (12) months after the submission of 
the application, the Council, upon approval of such a preliminary 
application, may provide a Letter of Intent stating that it will, 
subject to the conditions set forth therein, issue an Indemnity 
Agreement prior to commencement of the exhibition. In such cases, the 
Council will examine a final application during the twelve (12) month 
period prior to the date the exhibition is to commence, and shall, upon 
being satisfied that such conditions have been fulfilled, issue an 
Indemnity Agreement.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.9  Loss adjustment.

    (a) In the event of loss or damage covered by an Indemnity 
Agreement, the indemnitee without delay shall file a Notice of Loss or 
Damage with the Council and shall exercise reasonable care in order to 
minimize the amount of loss. Within a reasonable time after a loss has 
been sustained, the claimant shall file a Proof of Loss or Damage on 
forms provided by the Council. Failure to report such loss or damage and 
to file such Proof of Loss within sixty (60) days after the termination 
date as defined in Sec. 1160.3(k) shall invalidate any claim under the 
Indemnity Agreement.
    (b) In the event of total loss or destruction of an indemnified 
item, indemnification will be made on the basis of the amount specified 
in the Indemnity Agreement.
    (c) In the event of partial loss, or damage, and reduction in the 
fair market value, as a result thereof, to an indemnified item, 
indemnification will be made on the basis provided for in the Indemnity 
Agreement.
    (d) No loss or damage claim will be paid in excess of the 
Indemnification Limits specified in Sec. 1160.11.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.10  Certification of claim and amount of loss to the Congress.

    Upon receipt of a claim of total loss or a claim in which the 
Council is in agreement with respect to the amount of partial loss, or 
damage and reduction in fair market value as a result thereof, the 
Council shall certify the validity of the claim and the amount of such 
loss or damage and reduction in fair market value as a result thereof,

[[Page 461]]

to the Speaker of the House of Representatives and the President pro 
tempore of the Senate.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.11  Appraisal procedures.

    (a) In the event the Council and the indemnitee fail to agree on the 
amount of partial loss, or damage to, or any reduction in the fair 
market value as a result thereof, to the indemnified item(s), each shall 
select a competent appraiser(s) with evidence to be provided to show 
that the indemnitee's selection is satisfactory to the owner. The 
appraiser(s) selected by the Council and the indemnitee shall then 
select a competent and disinterested arbitrator.
    (b) After selection of an arbitrator, the appraisers shall assess 
the partial loss, or damage to, or where appropriate, any reduction in 
the fair market value of, the indemnified item(s). The appraisers' 
agreement with respect to these issues shall determine the dollar value 
of such loss or damage or repair costs, and where appropriate, such 
reduction in the fair market value. Disputes between the appraisers with 
respect to partial loss, damage repair costs, and fair market value 
reduction of any item shall be submitted to the arbitrator for 
determination. The appraisers' agreement or the arbitrator's 
determination shall be final and binding on the parties, and agreement 
on amount or such determination on amount shall be certified to the 
Speaker of the House and the President pro tempore of the Senate by the 
Council.
    (c) Each appraiser shall be paid by the party selecting him or her. 
The arbitrator and all other expenses of the appraisal shall be paid by 
the parties in equal shares.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]



Sec. 1160.12  Indemnification Limits.

    The dollar amounts of the limits described below are found in the 
guidelines referred to in Sec. 1160.1 and are based upon the statutory 
limits in the Arts and Artifacts Indemnity Act (20 U.S.C. 974).
    (a) There is a maximum amount of loss or damage covered in a single 
exhibition or an Indemnity Agreement.
    (b) A sliding scale deductible amount is applicable to loss or 
damage arising out of a single exhibition for which an indemnity is 
issued.
    (c) There is an aggregate amount of loss or damage covered by 
indemnity agreements at any one time.
    (d) The maximum value of eligible items carried in or upon any 
single instrumentality of transportation at any one time, is established 
by the Council.

[56 FR 49848, Oct. 2, 1991. Redesignated at 60 FR 42465, Aug. 16, 1995]

[[Page 462]]



           SUBCHAPTER D--NATIONAL ENDOWMENT FOR THE HUMANITIES



      



PART 1168--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
1168.100  Conditions on use of funds.
1168.105  Definitions.
1168.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

1168.200  Agency and legislative liaison.
1168.205  Professional and technical services.
1168.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

1168.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

1168.400  Penalties.
1168.405  Penalty procedures.
1168.410  Enforcement.

                          Subpart E--Exemptions

1168.500  Secretary of Defense.

                        Subpart F--Agency Reports

1168.600  Semi-annual compilation.
1168.605  Inspector General report.

Appendix A to Part 1168--Certification Regarding Lobbying
Appendix B to Part 1168--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121 (31 U.S.C. 1352); 20 U.S.C. 959 
(a) (1).

    Source: 55 FR 6737, 6755, Feb. 26, 1990, unless otherwise noted.

    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 1168.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a

[[Page 463]]

Member of Congress, an officer or employee of Congress, or an employee 
of a Member of Congress in connection with that loan insurance or 
guarantee.



Sec. 1168.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed

[[Page 464]]

officer or employee of any person, compensation that is consistent with 
the normal compensation for such officer or employee for work that is 
not furnished to, not funded by, or not furnished in cooperation with 
the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 1168.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraph (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,

[[Page 465]]

    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraph 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 1168.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1168.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Pub. L. 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 1168.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1168.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract,

[[Page 466]]

grant, loan, or cooperative agreement if payment is for professional or 
technical services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 1168.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 1168.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 1168.100 (a), does not apply in the case of any reasonable payment 
to a person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 1168.110 (a) and (b) 
regarding filing a disclosure form by each person, if required, shall 
not apply with respect to professional or technical services rendered 
directly in the preparation, submission, or negotiation of any 
commitment providing for the United States to insure or guarantee a 
loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational

[[Page 467]]

capability of a piece of equipment rendered directly in the negotiation 
of a contract is allowable. However, communications with the intent to 
influence made by a professional (such as a licensed lawyer) or a 
technical person (such as a licensed accountant) are not allowable under 
this section unless they provide advice and analysis directly applying 
their professional or technical expertise and unless the advice or 
analysis is rendered directly and solely in the preparation, submission 
or negotiation of a covered Federal action. Thus, for example, 
communications with the intent to influence made by a lawyer that do not 
provide legal advice or analysis directly and solely related to the 
legal aspects of his or her client's proposal, but generally advocate 
one proposal over another are not allowable under this section because 
the lawyer is not providing professional legal services. Similarly, 
communications with the intent to influence made by an engineer 
providing an engineering analysis prior to the preparation or submission 
of a bid or proposal are not allowable under this section since the 
engineer is providing technical services but not directly in the 
preparation, submission or negotiation of a covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 1168.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraph (a) or (b) of this section shall 
be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 1168.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.

[[Page 468]]



Sec. 1168.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 1168.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 1168.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 1168.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.

[[Page 469]]

    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

        Appendix A to Part 1168--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 470]]

       Appendix B to Part 1168--Disclosure Form to Report Lobbying

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[GRAPHIC] [TIFF OMITTED] TC01JA91.014



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[GRAPHIC] [TIFF OMITTED] TC01JA91.015



[[Page 473]]



PART 1169--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                           Subpart A--General

Sec.
1169.100  Purpose.
1169.105  Definitions.
1169.110  Coverage.
1169.115  Policy.

                       Subpart B--Effect of Action

1169.200  Debarment or suspension.
1169.205  Ineligible persons.
1169.210  Voluntary exclusion.
1169.215  Exception provision.
1169.220  Continuation of covered transactions.
1169.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

1169.300  General.
1169.305  Causes for debarment.
1169.310  Procedures.
1169.311  Investigation and referral.
1169.312  Notice of proposed debarment.
1169.313  Opportunity to contest proposed debarment.
1169.314  Debarring official's decision.
1169.315  Settlement and voluntary exclusion.
1169.320  Period of debarment.
1169.325  Scope of debarment.

                          Subpart D--Suspension

1169.400  General.
1169.405  Causes for suspension.
1169.410  Procedures.
1169.411  Notice of suspension.
1169.412  Opportunity to contest suspension.
1169.413  Suspending official's decision.
1169.415  Period of suspension.
1169.420  Scope of suspension.

        Subpart E--Responsibilities of GSA, NEH and Participants

1169.500  GSA responsibilities.
1169.505  NEH responsibilities.
1169.510  Participants' responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

1169.600  Purpose.
1169.605  Definitions.
1169.610  Coverage.
1169.615  Grounds for suspension of payments, suspension or termination 
          of grants, or suspension or debarment.
1169.620  Effect of violation.
1169.625  Exception provision.
1169.630  Certification requirements and procedures.
1169.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

Appendix A to Part 1169--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions
Appendix B to Part 1169--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions
Appendix C to Part 1169--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: 20 U.S.C. 959(a)(1); 41 U.S.C. 701 et seq.; E.O. 12549, 3 
CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235.

    Source: 53 FR 19201, 19204, May 26, 1988, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notices 
published at 55 FR 21679, May 25, 1990, and 60 FR 33036, June 26, 1995.

    Editorial Notes:
    (1) For nomenclature change to Part 1169, see 53 FR 19202, May 26, 
1988.
    (2) For additional information, see related documents published at 
52 FR 20360, May 29, 1987, 53 FR 19160, May 26, 1988, and 53 FR 34474, 
September 6, 1988.



                           Subpart A--General



Sec. 1169.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:

[[Page 474]]

    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 1169.105), and participants who have voluntarily 
excluded themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040, 33062, June 26, 1995]



Sec. 1169.105  Definitions.

    The following definitions apply to this part:
     Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
     Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
    Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
     Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
     Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
     Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing

[[Page 475]]

regulations, the equal employment opportunity acts and executive orders, 
or the environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
     NEH. National Endowment for the Humanities.
     Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
     Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
     Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: Foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
    Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
     Principal. Officer, director, owner, partner, key employee, or 
other person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    (2) [Reserved]
     Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
     Respondent. A person against whom a debarment or suspension action 
has been initiated.
     State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
     Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or

[[Page 476]]

Program Fraud Civil Remedies Act proceedings as may ensue. A person so 
excluded is ``suspended.''
     Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.

[53 FR 19201, 19202, 19204, May 26, 1988, as amended at 60 FR 33041, 
33062, June 26, 1995]



Sec. 1169.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart B, ``Effect of Action,'' Sec. 1169.200, ``Debarment 
or suspension,'' sets forth the consequences of a debarment or 
suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 1169.110(a). Sections 1169.325, ``Scope of 
debarment,'' and 1169.420, ``Scope of suspension,'' govern

[[Page 477]]

the extent to which a specific participant or organizational elements of 
a participant would be automatically included within a debarment or 
suspension action, and the conditions under which affiliates or persons 
associated with a participant may also be brought within the scope of 
the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19201, 19202, 19204, May 26, 1988, as amended at 60 FR 33041, 
33062, June 26, 1995]



Sec. 1169.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 1169.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 1169.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 1169.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and

[[Page 478]]

    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041, 33062, June 26, 1995]



Sec. 1169.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 1169.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 1169.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 1169.315 are 
excluded in accordance with the terms of their settlements. NEH shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 1169.215  Exception provision.

    NEH may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a written determination by the agency head or an 
authorized designee stating the reason(s) for deviating from the 
Presidential policy established by Executive Order 12549 and 
Sec. 1169.200. However, in accordance with the President's stated 
intention in the Executive Order, exceptions shall be granted only 
infrequently. Exceptions shall be reported in accordance with 
Sec. 1169.505(a).

[60 FR 33041, 33063, June 26, 1995]



Sec. 1169.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 1169.215.

[60 FR 33041, 33062, June 26, 1995]



Sec. 1169.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 1169.215 or Sec. 1169.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See Appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.

[60 FR 33041, 33062, June 26, 1995]



                          Subpart C--Debarment



Sec. 1169.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 1169.305, using procedures established in Secs. 1169.310 through 
1169.314. The existence of a cause for debarment, however, does not 
necessarily require that the person be debarred; the seriousness of the 
person's acts or omissions and

[[Page 479]]

any mitigating factors shall be considered in making any debarment 
decision.



Sec. 1169.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 1169.300 through 1169.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 1169.215 or Sec. 1169.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 1169.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in Sec. 1169.615 of 
this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 1169.310  Procedures.

    NEH shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 1169 .311 through 1169.314.



Sec. 1169.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 1169 .312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 1169.305 for proposing 
debarment;
    (d) Of the provisions of Secs. 1169.311 through 1169.314, and any 
other NEH

[[Page 480]]

procedures, if applicable, governing debarment decisionmaking; and
    (e) Of the potential effect of a debarment.



Sec. 1169.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 1169.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 1169.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 1169.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, NEH may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).

[[Page 481]]



Sec. 1169.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see Sec. 1169.305(c)(5)), the period of 
debarment shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 1169.311 through 1169.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4964, Jan. 31, 
1989]



Sec. 1169.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 1169.311 through 
1169.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance

[[Page 482]]

of the benefits derived from the conduct shall be evidence of such 
knowledge, approval, or acquiescence.



                          Subpart D--Suspension



Sec. 1169.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 1169.405 using procedures established in Secs. 1169.410 
through 1169.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 1169.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 1169.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 1169.400 through 1169.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 1169.305(a); or
    (2) That a cause for debarment under Sec. 1169.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 1169.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. NEH shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Sec. 1169.411 through Sec. 1169.413.



Sec. 1169.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 1169.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Sec. 1169.411 through Sec. 1169.413 and any 
other NEH procedures, if applicable, governing suspension 
decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 1169.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on

[[Page 483]]

the same facts as the suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 1169.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 1169.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: Based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 1169.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 1169.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 1169.325), except that the procedures of Secs. 1169.410 
through 1169.413 shall be used in imposing a suspension.



        Subpart E--Responsibilities of GSA, NEH and Participants



Sec. 1169.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references

[[Page 484]]

when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 1169.505  NEH responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which NEH has granted exceptions under Sec. 1169.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 1169.500(b) and of 
the exceptions granted under Sec. 1169.215 within five working days 
after taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) NEH officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (Tel. ).
    (e) NEH officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.



Sec. 1169.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(Tel. ). Adverse information on the certification will not necessarily 
result in denial of participation. However, the certification, and any 
additional information pertaining to the certification submitted by the 
participant, shall be considered in the administration of covered 
transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to NEH if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated notice 
to the participant to which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21703, May 25, 1990, unless otherwise noted.

[[Page 485]]



Sec. 1169.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 1169.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 1169.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of

[[Page 486]]

local government. A State instrumentality will be considered part of the 
State government if it has a written determination from a State 
government that such State considers the instrumentality to be an agency 
of the State government.



Sec. 1169.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.



Sec. 1169.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 1169.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a) through (g) and/or (B) of the 
certification (Alternate I to appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.



Sec. 1169.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 1169.615, and in accordance with applicable law, the grantee shall 
be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 1169.320(a)(2) of this 
part).



Sec. 1169.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 1169.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of

[[Page 487]]

such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 1169.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall

[[Page 488]]

report the conviction, in writing, within 10 calendar days, to his or 
her Federal agency grant officer, or other designee, unless the Federal 
agency has designated a central point for the receipt of such notices. 
Notification shall include the identification number(s) for each of the 
Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

Appendix A to Part 1169--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions
                     Instructions for Certification
    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions
    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:

[[Page 489]]

    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

Appendix B to Part 1169--Certification Regarding Debarment, Suspension, 
  Ineligibilty and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

[[Page 490]]

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

  Appendix C to Part 1169--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and

[[Page 491]]

    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.

[55 FR 21690, 21703, May 25, 1990]



PART 1170--NONDISCRIMINATION ON THE BASIS OF HANDICAP IN FEDERALLY ASSISTED PROGRAMS AND ACTIVITIES--Table of Contents




                      Subpart A--General Provisions

Sec.
1170.1  Purpose.
1170.2  Application.
1170.3  Definitions.
1170.4  Effect of State or local law or other requirements and effect of 
          employment opportunities.
1170.5--1170.10  [Reserved]

                   Subpart B-Discrimination Prohibited

1170.11  General prohibition against discrimination.
1170.12  Discriminatory actions prohibited.
1170.13  Illustrative examples.
1170.14--1170.20  [Reserved]

                     Subpart C--Employment Practices

1170.21  Discrimination prohibited.
1170.22  Reasonable accommodation.
1170.23  Employment criteria.
1170.24  Preemployment inquiries.
1170.25--1170.30  [Reserved]

                    Subpart D--Program Accessibility

1170.31  Discrimination prohibited.
1170.32  Existing facilities.
1170.33  New construction.
1170.34  Historic properties. [Reserved]
1170.35--1170.40  [Reserved]

                   Subpart E--Postsecondary Education

1170.41  Application of this subpart.
1170.42  Admissions and recruitment.
1170.43  Treatment of students; general.
1170.44  Academic adjustments.
1170.45  Housing.
1170.46  Financial and employment assistance to students.
1170.47  Nonacademic services.

[[Page 492]]

1170.48--1170.50  [Reserved]

                         Subpart F--Enforcement

1170.51  Assurances required.
1170.52  Remedial action, voluntary action, and self-evaluation.
1170.53  Designation of responsible employee and adoption of grievance 
          procedures.
1170.54  Notice.
1170.55  Endowment enforcement and compliance procedures.
1170.56--1170.99  [Reserved]

Authority: 29 U.S.C. 794.

    Source: 46 FR 55897, Nov. 12, 1981, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1170.1  Purpose.

    The purpose of this part is to implement section 504 of the 
Rehabilitation Act of 1973, which is designed to eliminate 
discrimination on the basis of handicap in any program or activity 
receiving Federal financial assistance.



Sec. 1170.2  Application.

    This part applies to each recipient of Federal financial assistance 
from the National Endowment for the Humanities and to each program or 
activity that receives or benefits from such assistance.



Sec. 1170.3  Definitions.

    As used in this part:
    (a) Section 504 means section 504 of the Rehabilitation Act of 1973, 
Pub. L. 93-112, as amended by the Rehabilitation Act Amendments of 1974, 
Pub. L. 93-516, 29 U.S.C. 794 et seq. and by the Rehabilitation, 
Comprehensive Services and Developmental Disabilities Amendments of 
1978, Pub. L. 95-602.
    (b) The term Endowment or the term agency means the National 
Endowment for the Humanities.
    (c) The term Chairman means the Chairman of the National Endowment 
for the Humanities.
    (d) The term responsible Endowment official with respect to any 
program receiving Federal financial assistance means the Chairman of the 
Endowment, the Director of the Office of Equal Employment Opportunity, 
or other Endowment official designated by the Chairman.
    (e) The term United States means the States of the United States, 
the District of Columbia, Puerto Rico, the Virgin Islands, American 
Samoa, Guam, the Northern Mariana Islands, Wake Island, the Canal Zone, 
and the territories and possessions of the United States, and the term 
State means any one of the foregoing.
    (f) Federal financial assistance means any grant, loan, contract 
(other than a procurement contract or a contract of insurance or 
guaranty), or any other arrangement by which the agency provides or 
otherwise makes available assistance in the form of:
    (1) Funds;
    (2) Services of Federal personnel; or
    (3) Real and personal property or any interest in or use of such 
property, including:
    (i) Transfers or leases of such property for less than fair market 
value or for reduced consideration; and
    (ii) Proceeds from a subsequent transfer or lease of such property 
if the Federal share of its fair market value is not returned to the 
Federal government.
    (g) The term program includes any program, project, or activity 
involving the provision of services, financial aid, or other benefits to 
individuals (including education or training, health, housing, or other 
services, whether provided through employees of the recipient of Federal 
financial assistance or provided by others through contracts or other 
arrangements with the recipient, and including work opportunities and 
cash or loan or other assistance to individuals), or for provision of 
facilities for furnishing services, financial aid or other benefits to 
individuals. The service, financial aid, or other benefits provided 
under a program receiving Federal financial assistance shall be deemed 
to include any services, financial aid, or other benefits provided with 
the aid of Federal financial assistance or with the aid of any non-
Federal funds, property, or other resources required to be expended or 
made available for the program to meet matching requirements or other 
conditions which must be met in order to receive the Federal financial 
assistance, and to include any services, financial aid, or other 
benefits provided in or through a

[[Page 493]]

facility provided with the aid of Federal financial assistance or such 
non-Federal resources.
    (h) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property.
    (i) Recipient means any state or its political subdivision, any 
instrumentality of a state or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which Federal financial assistance is extended directly or 
through another recipient, including any successor, assignee, or 
transferee of a recipient, but excluding the ultimate beneficiary of the 
assistance.
    (j) Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment. For purposes of section 504, in connection with employment, 
this term does not include any individual who is an alcoholic or drug 
abuser whose current use of alcohol or drugs prevents such individual 
from performing the duties of the job in question or whose employment, 
by reason of such current alcohol or drug abuse, would constitute a 
direct threat to the property or the safety of others. As used in this 
paragraph, the phrase:
    (1) Physical or mental impairment means:
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.
    (2) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such impairment means has a history of, or has 
been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by a recipient as 
constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (j)(1) of 
this section but is treated by a recipient as having such an impairment.
    (k) Qualified handicapped person means:
    (1) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question and
    (2) With respect to postsecondary and vocational education services, 
a handicapped person who meets the academic and technical standards 
requisite to admission or participation in the recipient's education 
program or activity;
    (3) With respect to services, a handicapped person who meets the 
essential eligibility requirements for the receipt of such services.



Sec. 1170.4  Effect of State or local law or other requirements and effect of employment opportunities.

    (a) The obligation to comply with this part is not obviated or 
alleviated by the existence of any state or local law or other 
requirement that, on the basis of handicap, imposes prohibitions or 
limits upon the eligibility of qualified handicapped persons to receive

[[Page 494]]

services or to practice any occupation or profession.
    (b) The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for handicapped persons than for 
nonhandicapped persons.
Secs. 1170.5--1170.10  [Reserved]



                  Subpart B--Discrimination Prohibited



Sec. 1170.11  General prohibition against discrimination.

    No qualified handicapped person shall, on the basis of handicap, be 
excluded from participation in, be denied the benefits of, or otherwise 
be subjected to discrimination under any program or activity that 
receives or benefits from Federal financial assistance.



Sec. 1170.12  Discriminatory actions prohibited.

    (a) A recipient, in providing any aid, benefit, or service, may not, 
directly or through contractual, licensing, or other arrangements, on 
the basis of handicap:
    (1) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (2) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (3) Provide a qualified handicapped person with an aid, benefit, or 
service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (4) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (5) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that discriminates on the basis of handicap in providing any 
aid, benefit, or service to beneficiaries of the recipient's program;
    (6) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (7) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (b) A recipient may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (c) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration.
    (1) that have the effect of subjecting qualified handicapped persons 
to discrimination on the basis of handicap,
    (2) that have the purpose or effect of defeating or substantially 
impairing accomplishment of the objectives of the recipient's program 
with respect to handicapped persons, or
    (3) that perpetuate the discrimination of another recipient if both 
recipients are subject to common administrative control or are agencies 
of the same state.
    (d) A recipient may not, in determining the site or location of a 
facility, make selections
    (1) that have the effect of excluding handicapped persons from, 
denying them the benefits of, or otherwise subjecting them to 
discrimination under any program or activity that receives or benefits 
from Federal financial assistance or
    (2) that have the purpose or effect of defeating or substantially 
impairing the accomplishment of the objectives of the program or 
activity with respect to handicapped persons.
    (e) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited

[[Page 495]]

by Federal statute or executive order to a different class of 
handicapped persons is not prohibited by this part.
    (f) Recipients shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
    (g) Recipients shall take appropriate steps to ensure that 
communications with their applicants, employees, and beneficiaries are 
available to persons with impaired vision and hearing.



Sec. 1170.13  Illustrative examples.

    (a) The following examples will illustrate the application of the 
foregoing provisions to some of the activities funded by the National 
Endowment for the Humanities.
    (1) A publication or a museum catalogue supported by the Endowment 
may be made usable by the blind and the visually impaired through 
cassette tapes, records, discs, braille, readers and simultaneous 
publications.
    (2) A lecture, meeting or symposium supported by Federal funds may 
be made available to deaf and hearing impaired persons through the use 
of a sign language interpreter or by providing scripts in advance of the 
performance.
    (3) Specific programs supported by Federal funds may be offered in 
an inaccessible facility provided that the same program is also offered 
to the public at large in an accessible space.
    (4) A qualified handicapped person is one who is able to meet all of 
a program's requirements in spite of his handicap. An educational 
institution is not required to disregard the disabilities of handicapped 
individuals or to lower or to make substantial modifications of 
standards to accommodate a handicapped person.
    (b) State humanities committees are obligated to develop methods of 
administering Federal funds so as to ensure that handicapped persons are 
not subjected to discrimination on the basis of handicap either by sub-
grantees or by the manner in which the funds are distributed.
    (c) In the event Endowment funds are utilized to construct, expand, 
alter, lease or rent a facility, the benefits of the programs and 
activities provided in or through that facility must be conducted in 
accordance with these regulations, e.g., a museum receiving a grant to 
renovate an existing facility must assure that all museum programs and 
activities conducted in that facility are accessible to handicapped 
persons.
    (d) In carrying out the mandate of section 504 and these 
implementing regulations recipients should administer Endowment assisted 
programs and activities in the most integrated setting appropriate, 
e.g., tours made available to the hearing impaired should be open to the 
public at large and everyone should be permitted to enjoy the benefits 
of a tactile experience in a museum.
Secs. 1170.14--1170.20  [Reserved]



                     Subpart C--Employment Practices



Sec. 1170.21  Discrimination prohibited.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity that receives or benefits from Federal financial assistance.
    (b) A recipient shall make all decisions concerning employment under 
any program or activity to which this part applies in a manner which 
ensures that discrimination on the basis of handicap does not occur and 
may not limit, segregate, or classify applicants or employees in any way 
that adversely affects their opportunities or status because of 
handicap.
    (c) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this paragraph include relationships 
with employment and referral agencies, with labor unions, with 
organizations providing or administering fringe benefits to employees of 
the recipient, and with organizations providing training and 
apprenticeship programs.
    (d) Specific activities. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and the processing of applications for 
employment;

[[Page 496]]

    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff and rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absence, sick leave, or any other leave;
    (6) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (7) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, and selection for leaves of absence to pursue training;
    (8) Employer sponsored activities, including social or recreational 
programs; and
    (9) Any other term, condition, or privilege of employment.
    (e) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.



Sec. 1170.22  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant or employee unless the recipient can demonstrate that the 
accommodation would impose an undue hardship on the operation of its 
program.
    (b) Reasonable accommodation may include:
    (1) Making facilities used by employees readily accessible to and 
usable by handicapped persons, and
    (2) Job restructuring, part-time or modified work schedules, 
acquisition or modification of equipment or devices, the provision of 
readers or interpreters, and other similar actions.
    (c) In determining pursuant to paragraph (a) of this section whether 
an accommodation would impose an undue hardship on the operation of a 
recipient's program, factors to be considered include:
    (1) The overall size of the recipient's program with respect to 
number of employees, number and type of facilities, and size of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of the recipient's workforce; and
    (3) The nature and cost of the accommodation needed.



Sec. 1170.23  Employment criteria.

    (a) A recipient may not make use of any employment test or other 
selection criterion that screens out or tends to screen out handicapped 
persons or any class of handicapped persons unless:
    (1) The test score or other selection criterion, as used by the 
recipient, is shown to be job-related for the position in question; and
    (2) Alternative job-related tests or criteria are unavailable.
    (b) A recipient shall select and administer tests concerning 
employment so as best to ensure that, when administered to an applicant 
or employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude, or other factors relevant to adequate 
performance of the job in question.



Sec. 1170.24  Preemployment inquiries.

    (a) A recipient may not, except as provided below, conduct a 
preemployment medical examination, make preemployment inquiry as to 
whether the applicant is a handicapped person, or inquire as to the 
nature or severity of a handicap. A recipient may, however, make 
preemployment inquiry into an applicant's ability to perform job-related 
functions.
    (b) If a recipient is taking remedial action to correct the effects 
of past discrimination, if a recipient is taking voluntary action to 
overcome the effects of conditions that resulted in limited 
participation in its federally assisted program or activity, or if a 
recipient is taking affirmative action under section 503 of the 
Rehabilitation Act, the recipient may invite applicants for employment 
to indicate whether and to what extent they are handicapped, provided, 
that:

[[Page 497]]

    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary or 
affirmative action efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential as 
provided in paragraph (d) of this section, that refusal to provide it 
will not subject the applicant or employee to any adverse treatment, and 
that it will be used only in accordance with this part.
    (c) Nothing in this section shall prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty, 
provided, that:
    (1) All entering employees are subjected to such an examination 
regardless of handicap; and
    (2) The results of such an examination are used only in accordance 
with the requirements of this part.
    (d) Information obtained in accordance with this section as to the 
medical condition or history of the applicant shall be collected and 
maintained on separate forms that shall be accorded confidentiality as 
medical records, except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons and regarding necessary 
accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Government officials investigating compliance with the Act shall 
be provided relevant information upon request.
Secs. 1170.25--1170.30  [Reserved]



                    Subpart D--Program Accessibility



Sec. 1170.31  Discrimination prohibited.

    No qualified handicapped person shall, because recipient's 
facilities are inaccessible to or unusable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity to which 
this part applies.



Sec. 1170.32  Existing facilities.

    (a) Program accessibility. A recipient shall operate each program or 
activity to which this part applies so that the program or activity, 
when viewed in its entirety, is readily accessible to handicapped 
persons. This paragraph does not necessarily require a recipient to make 
each of its existing facilities or every part of a facility accessible 
to and usable by handicapped persons.
    (b) Methods. A recipient may comply with the requirements of 
paragraph (a) of this section through such means as redesign of 
equipment, reassignment of classes or other services to accessible 
buildings, alteration of existing facilities and construction of new 
facilities in conformance with the requirements of Sec. 1170.33, or any 
other methods that result in making its program or activity accessible 
to handicapped persons. A recipient is not required to make structural 
changes in existing facilities where other methods are effective in 
achieving compliance with paragraph (a) of this section. In choosing 
among available methods for meeting the requirement of paragraph (a) of 
this section, a recipient shall give priority to those methods that 
offer program and activities to handicapped persons in the most 
integrated setting appropriate.
    (c) Time period. A recipient shall comply with the requirement of 
paragraph (a) of this section within sixty days of the effective date of 
this part except that where structural changes in facilities are 
necessary, such changes shall be made within three years of the 
effective date of this part, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities are necessary to meet the requirement of paragraph (a) of 
this section, a recipient shall develop, within one year of the 
effective date of this part, a transition plan setting forth the steps 
necessary to complete such changes. The plan shall be developed with the 
assistance of interested persons, including handicapped persons or 
organizations

[[Page 498]]

representing handicapped persons. A copy of the transition plan shall be 
made available upon request for public inspection. The plan shall, at a 
minimum:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility of its program or activity to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and, if the time period of the transition 
plan is longer than one year, identify the steps that will be taken 
during each year of the transition period; and
    (4) Indicate the person responsible for implementation of the plan.
    (e) Notice. The recipient shall adopt and implement procedures to 
ensure that interested persons, including persons with impaired vision 
or hearing can obtain information as to the existence and location of 
services, activities, and facilities that are accessible to and usable 
by handicapped persons.



Sec. 1170.33  New construction.

    (a) Design, construction, and alteration. New facilities shall be 
designed and constructed to be readily accessible to and usable by 
handicapped persons. Alterations to existing facilities shall, to the 
maximum extent feasible, be designed and constructed to be readily 
accessible to and usable by handicapped persons.
    (b) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms and other spaces that, because of their intended use, will not 
require accessibility to the public or beneficiaries or result in the 
employment or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.

[46 FR 55897, Nov. 12, 1981, as amended at 55 FR 52138, 52142, Dec. 19, 
1990]
Sec. 1170.34  Historic properties. [Reserved]
Secs. 1170.35--1170.40  [Reserved]
[46 FR 55897, Nov. 12, 1981, as amended at 55 FR 52138, 52142, Dec. 19, 
1990]



                   Subpart E--Postsecondary Education



Sec. 1170.41  Application of this subpart.

    Subpart E applies to postsecondary education programs and 
activities, including postsecondary vocational education programs and 
activities, that receive or benefit from Federal financial assistance 
and to recipients that operate, or that receive or benefit from Federal 
financial assistance for the operation of, such programs or activities.



Sec. 1170.42  Admissions and recruitment.

    (a) General. Qualified handicapped persons may not, on the basis of 
handicap, be denied admission or be subjected to discrimination in 
admission or recruitment by a recipient to which this subpart applies.
    (b) Admissions. In administering its admission policies, a recipient 
to which this subpart applies:
    (1) May not apply limitations upon the number or proportion of 
handicapped persons who may be admitted;
    (2) May not make use of any test or criterion for admission that has 
a disproportionate, adverse effect on handicapped persons or any class 
of handicapped persons unless
    (i) The test or criterion, as used by the recipient, has been 
validated as a predictor of success in the education program or activity 
in question and

[[Page 499]]

    (ii) Alternate tests or criteria that have a less disproportionate, 
adverse effect are not shown by the Chairman to be available.
    (3) Shall assure itself that:
    (i) Admissions tests are selected and administered so as best to 
ensure that, when a test is administered to an applicant who has a 
handicap that impairs sensory, manual, or speaking skills, the test 
results accurately reflect the applicant's aptitude or achievement level 
or whatever other factor the test purports to measure, rather than 
reflecting the applicant's impaired sensory, manual, or speaking skills 
(except where those skills are the factors that the test purports to 
measure);
    (ii) Admissions tests that are designed for persons with impaired 
sensory, manual, or speaking skills are offered as often and in as 
timely a manner as are other admissions tests; and
    (iii) Admissions tests are administered in facilities that, on the 
whole, are accessible to handicapped persons; and
    (4) Except as provided in paragraph (c) of this section, may not 
make preadmission inquiry as to whether an applicant for admission is a 
handicapped person but, after admission, may make inquiries on a 
confidential basis as to handicaps that may require accommodation.
    (c) Preadmission inquiry exception. When a recipient is taking 
remedial action to correct the effects of past discrimination pursuant 
to Sec. 1170.52(a) or when a recipient is taking voluntary action to 
overcome the effects of conditions that resulted in limited 
participation in its federally assisted program or activity pursuant to 
Sec. 1170.52(b), the recipient may invite applicants for admission to 
indicate whether and to what extent they are handicapped, provided, 
that:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally if no written questionnaire is 
used that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary action 
efforts; and
    (2) The recipient states clearly that the information is being 
requested on a voluntary basis, that it will be kept confidential, that 
refusal to provide it will not subject the applicant to any adverse 
treatment, and that it will be used only in accordance with this part.
    (d) Validity studies. For the purpose of paragraph (b)(2) of this 
section, a recipient may base prediction equations on first year grades, 
but shall conduct periodic validity studies against the criterion of 
overall success in the education program or activity in question in 
order to monitor the general validity of the test scores.



Sec. 1170.43  Treatment of students; general.

    (a) No qualified handicapped student shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any academic, 
research, occupational training, housing, health insurance, counseling, 
financial aid, physical education, athletics, recreation, 
transportation, or other postsecondary education program or activity to 
which this subpart applies.
    (b) A recipient to which this subpart applies that considers 
participation by students in education programs or activities not 
operated wholly by the recipient as part of, or equivalent to, an 
education program or activity operated by the recipient shall assure 
itself that the other education program or activity, as a whole, 
provides an equal opportunity for the participation of qualified 
handicapped persons.
    (c) A recipient to which this subpart applies may not, on the basis 
of handicap, exclude any qualified handicapped student from any course, 
course of study, or other part of its education program or activity.
    (d) A recipient to which this subpart applies shall operate its 
programs and activities in the most integrated setting appropriate.



Sec. 1170.44  Academic adjustments.

    (a) Academic requirements. A recipient to which this subpart applies 
shall make such modifications to its academic requirements as are 
necessary to ensure that such requirements do not discriminate or have 
the effect of discriminating, on the basis of handicap,

[[Page 500]]

against a qualified handicapped applicant or student. Academic 
requirements that the recipient can demonstrate are essential to the 
program of instruction being pursued by such student or to any directly 
related licensing requirement will not be regarded as discriminatory 
within the meaning of this section. Modifications may include changes in 
the length of time permitted for the completion of degree requirements, 
substitution of specific courses required for the completion of degree 
requirements, and adaptation of the manner in which specific courses are 
conducted.
    (b) Other rules. A recipient to which this subpart applies may not 
impose upon handicapped students other rules, such as the prohibitation 
of tape recorders in classrooms or of dog guides in campus buildings, 
that have the effect of limiting the participation of handicapped 
students in the recipient's education program or activity.
    (c) Course examinations. In its course examinations or other 
procedures for evaluating students' academic achievement in its program, 
a recipient to which this subpart applies shall provide such methods for 
evaluating the achievement of students who have a handicap that impairs 
sensory, manual, or speaking skills as will best ensure that the results 
of the evaluation represents the student's achievement in the course, 
rather than reflecting the student's impaired sensory, manual, or 
speaking skills (except where such skills are the factors that the test 
purports to measure).
    (d) Auxiliary aids. (1) A recipient to which this subpart applies 
shall take such steps as are necessary to ensure that no handicapped 
student is denied the benefits of, excluded from participation in, or 
otherwise subjected to discrimination under the education program or 
activity operated by the recipient because of the absence of educational 
auxiliary aids for students with impaired sensory, manual, or speaking 
skills.
    (2) Auxiliary aids may include taped texts, interpreters or other 
effective methods of making orally delivered materials available to 
students with hearing impairments, readers in libraries for students 
with visual impairments, classroom equipment adapted for use by students 
with manual impairments, and other similar services and actions. 
Recipients need not provide attendants, individually prescribed devices, 
readers for personal use or study, or other devices or services of a 
personal nature.



Sec. 1170.45  Housing.

    (a) Housing provided by the recipient. A recipient that provides 
housing to its nonhandicapped students shall provide comparable, 
convenient, and accessible housing to handicapped students at the same 
cost as to others. At the end of the transition period provided for in 
Subpart D, such housing shall be available in sufficient quantity and 
variety so that the scope of handicapped students' choice of living 
accommodations is, as a whole, comparable to that of nonhandicapped 
students.
    (b) Other housing. A recipient that assists any agency, 
organization, or person in making housing available to any of its 
students shall take such action as may be necessary to assure itself 
that such housing is, as a whole, made available in a manner that does 
not result in discrimination on the basis of handicap.



Sec. 1170.46  Financial and employment assistance to students.

    (a) Provision of financial assistance. (1) In providing financial 
assistance to qualified handicapped persons, a recipient to which this 
subpart applies may not
    (i) On the basis of handicap, provide less assistance than is 
provided to nonhandicapped persons, limit eligibility for assistance, or 
otherwise discriminate or
    (ii) Assist any entity or person that provides assistance to any of 
the recipient's students in a manner that discriminates against 
qualified handicapped persons on the basis of handicap.
    (2) A recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established under wills, trusts, bequests, or similar legal instruments 
that require awards to be

[[Page 501]]

made on the basis of factors that discriminate or have the effect of 
discriminating on the basis of handicap only if the overall effect of 
the award of scholarships, fellowships, and other forms of financial 
assistance is not discriminatory on the basis of handicap.
    (b) Assistance in making available outside employment. A recipient 
that assists any agency, organization, or person in providing employment 
opportunities to any of its students shall assure itself that such 
employment opportunities, as a whole, are made available in a manner 
that would not violate Subpart C if they were provided by the recipient.
    (c) Employment of students by recipients. A recipient that employs 
any of its students may not do so in a manner that violates Subpart C.



Sec. 1170.47  Nonacademic services.

    (a) Physical education and athletics. (1) In providing physical 
education courses and athletics and similar programs and activities to 
any of its students, a recipient to which this subpart applies may not 
discriminate on the basis of handicap. A recipient that offers physical 
education courses or that operates or sponsors intercollegiate, club, or 
intramural athletics shall provide to qualified handicapped students an 
equal opportunity for participation in these activities.
    (2) A recipient may offer to handicapped students physical education 
and athletic activities that are separate or different only if 
separation or differentiation is consistent with the requirements of 
Sec. 1170.43(d) and only if no qualified handicapped student is denied 
the opportunity to compete for teams or to participate in courses that 
are not separate or different.
    (b) Counseling and placement services. A recipient to which this 
subpart applies that provides personal, academic, or vocational 
counseling, guidance, or placement services to its students shall 
provide these services without discrimination on the basis of handicap. 
The recipient shall ensure that qualified handicapped students are not 
counseled toward more restrictive career objectives than are 
nonhandicapped students with similar interests and abilities. This 
requirement does not preclude a recipient from providing factual 
information about licensing and certification requirements that may 
present obstacles to handicapped persons in their pursuit of particular 
careers.
    (c) Social organizations. A recipient that provides significant 
assistance to fraternities, sororities, or similar organizations shall 
assure itself that the membership practices of such organizations do not 
permit discrimination otherwise prohibited by this subpart.
Secs. 1170.48--1170.50  [Reserved]



                         Subpart F--Enforcement



Sec. 1170.51  Assurances required.

    (a) Assurances. An applicant for Federal financial assistance for a 
program or activity to which this part applies shall submit an 
assurance, on a form specified by the responsible Endowment official, 
that the program will be operated in compliance with this part. An 
applicant may incorporate these assurances by reference in subsequent 
applications to the Endowment.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended in the form of real property or to provide real 
property or structures on the property, the assurance will obligate the 
recipient or, in the case of a subsequent transfer, the transferee, for 
the period during which the real property or structures are used for the 
purpose for which Federal financial assistance is extended or for 
another purpose involving the provision of similar services or benefits.
    (2) In the case of Federal financial assistance extended to provide 
personal property, the assurance will obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases the assurance will obligate the recipient for 
the period during which Federal financial assistance is extended.
    (c) Covenants. (1) Where Federal financial assistance is provided in 
the form of real property or interest in the property from the 
Endowment, the instrument effecting or recording this

[[Page 502]]

transfer shall contain a covenant running with the land to assure 
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.
    (2) Where no transfer of property is involved but property is 
purchased or improved with Federal financial assistance, the recipient 
shall agree to include the covenant described in paragraph (b)(2) of 
this section in the instrument effecting or recording any subsequent 
transfer of the property.
    (3) Where Federal financial assistance is provided in the form of 
real property or interest in the property from the Endowment, the 
covenant shall also include a condition coupled with a right to be 
reserved by the Endowment to revert title to the property in the event 
of a breach of the covenant. If a transferee of real property proposes 
to mortgage or to otherwise encumber the real property as security for 
financing construction of new, or improvement of existing, facilities on 
the property for the purposes for which the property was transferred, 
the responsible Endowment official may, upon request of the transferee 
and if necessary to accomplish such financing and upon such conditions 
as he or she deems appropriate, agree to forbear the exercise of such 
right to revert title for so long as the lien of such mortgage or other 
encumbrance remains effective.



Sec. 1170.52  Remedial action, voluntary action, and self-evaluation.

    (a) Remedial action. (1) If the Chairman finds that a recipient has 
discriminated against persons on the basis of handicap in violation of 
section 504 or this part, the recipient shall take such remedial action 
as the Chairman deems necessary to overcome the effects of the 
discrimination.
    (2) Where a recipient is found to have discriminated against persons 
on the basis of handicap in violation of section 504 or this part and 
where another recipient exercises control over the recipient that has 
discriminated, the Chairman, where appropriate, may require either or 
both recipients to take remedial action.
    (3) The Chairman may, where necessary to overcome the effects of 
discrimination in violation of section 504 or this part, require a 
recipient to take remedial action:
    (i) With respect to handicapped persons who are no longer 
participants in the recipient's program but who were participants in the 
program when such discrimination occurred, or
    (ii) With respect to handicapped persons who would have been 
participants in the program had the discrimination not occurred.
    (b) Voluntary action. A recipient may take steps, in addition to any 
action that is required by this part, to overcome the effects of 
conditions that resulted in limited participation in the recipient's 
program or activity by qualified handicapped persons.
    (c) A recipient shall within one year of the effective date of this 
part:
    (1) Evaluate, with the assistance of interested persons, including 
handicapped persons or organizations representing handicapped persons, 
its current policies and practices and the effects thereof that do not 
or may not meet the requirements of this part;
    (2) Modify, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
any policies and practices that do not meet the requirements of this 
part;
    (3) Take, after consultation with interested persons, including 
handicapped persons or organizations representing handicapped persons, 
appropriate remedial steps to eliminate the effects of any 
discrimination that resulted from adherence to these policies and 
practices.
    (4) A recipient that employs fifteen or more persons shall maintain 
on file, make available for public inspection, and provide to the 
Endowment upon request, for at least three years following completion of 
the self-evaluation:
    (i) A list of the interested persons consulted;
    (ii) A description of areas examined and any problems identified; 
and
    (iii) A description of any modifications made and of any remedial 
steps taken.

[[Page 503]]

    (5) The completed self-evaluation should be signed by a responsible 
official designated to coordinate the recipient's efforts in connection 
with this section.



Sec. 1170.53  Designation of responsible employee and adoption of grievance procedures.

    (a) Designation of responsible employee. A recipient that employs 
fifteen or more persons shall designate at least one person to 
coordinate its efforts to comply with this part.
    (b) Adoption of grievance procedures. A recipient that employs 
fifteen or more persons shall adopt grievance procedures that 
incorporate appropriate due process standards and that provide for the 
prompt and equitable resolution of complaints alleging any action 
prohibited by this part. Such procedures need not be established with 
respect to complaints from applicants for employment or from applicants 
for admission to postsecondary educational institutions.



Sec. 1170.54  Notice.

    (a) A recipient that employs fifteen or more persons shall take 
appropriate initial and continuing steps to notify participants, 
beneficiaries, applicants, and employees, including those with impaired 
vision or hearing, and unions or professional organizations holding 
collective bargaining or professional agreements with the recipient that 
it does not discriminate on the basis of handicap in violation of 
section 504 and this part. The notification shall state, where 
appropriate, that the recipient does not discriminate in admission or 
access to, or treatment or employment in, its programs and activities. 
The notification shall also include an identification of the responsible 
employee designated pursuant to Sec. 1170.53(a). A recipient shall make 
the initial notification required by this paragraph within 90 days of 
the effective date of this part. Methods of initial and continuing 
notification may include the posting of notices, publication in 
newspapers and magazines, placement of notices in recipients' 
publication, and distribution of memoranda or other written 
communications.
    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants, or employees, it shall include 
in those materials or publications a statement of the policy described 
in paragraph (a) of this section. A recipient may meet the requirement 
of this paragraph either by including appropriate inserts in existing 
materials and publications or by revising and reprinting the materials 
and publications.



Sec. 1170.55  Endowment enforcement and compliance procedures.

    The procedural provisions applicable to Title VI of the Civil Rights 
Act of 1964 apply to this part. These procedures are found in 
Secs. 1110.6 through 1110.11 of part 1100 of this title.
Secs. 1170.56--1170.99  [Reserved]



PART 1174--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
1174.1  Purpose and scope of this part.
1174.2  Scope of subpart.
1174.3  Definitions.
1174.4  Applicability.
1174.5  Effect on other issuances.
1174.6  Additions and exceptions.

                    Subpart B--Pre-Award Requirements

1174.10  Forms for applying for grants.
1174.11  State plans.
1174.12  Special grant or subgrant conditions for ``high-risk'' 
          grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

1174.20  Standards for financial management systems.
1174.21  Payment.
1174.22  Allowable costs.
1174.23  Period of availability of funds.
1174.24  Matching or cost sharing.
1174.25  Program income.
1174.26  Non-Federal audit.

                    Changes, Property, and Subawards

1174.30  Changes.

[[Page 504]]

1174.31  Real property.
1174.32  Equipment.
1174.33  Supplies.
1174.34  Copyrights.
1174.35  Subawards to debarred and suspended parties.
1174.36  Procurement.
1174.37  Subgrants.

              Reports, Records, Retention, and Enforcement

1174.40  Monitoring and reporting program performance.
1174.41  Financial reporting.
1174.42  Retention and access requirements for records.
1174.43  Enforcement.
1174.44  Termination for convenience.

                 Subpart D--After-the-Grant Requirements

1174.50  Closeout.
1174.51  Later disallowances and adjustments.
1174.52.  Collection of amounts due.

                   Subpart E--Entitlements [Reserved]

    Authority: 20 U.S.C. 959(a)(1).

    Source: 53 FR 8082, 8087, Mar. 11, 1988, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 49 FR 24958, June 18, 1984, 52 FR 20198, May 29, 1987, and 
53 FR 8028, March 11, 1988.



                           Subpart A--General



Sec. 1174.1  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 1174.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 1174.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for: (1) Goods and other 
tangible property received; (2) services performed by employees, 
contractors, subgrantees, subcontractors, and other payees; and (3) 
other amounts becoming owed under programs for which no current services 
or performance is required, such as annuities, insurance claims, and 
other benefit payments.
    Accrued income means the sum of: (1) Earnings during a given period 
from services performed by the grantee and goods and other tangible 
property delivered to purchasers, and (2) amounts becoming owed to the 
grantee for which no current services or performance is required by the 
grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.

[[Page 505]]

    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For nonconstruction grants, the SF-269 
``Financial Status Report'' (or other equivalent report); (2) for 
construction grants, the SF-271 ``Outlay Report and Request for 
Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 
688) certified by the Secretary of the Interior as eligible for the 
special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under state law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.

[[Page 506]]

    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than equipment 
as defined in this part.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. Termination does not include: (1) Withdrawal 
of funds awarded on the basis of the grantee's underestimate of the 
unobligated balance in a prior period; (2) withdrawal of the unobligated 
balance as of the expiration of a grant; (3) refusal to extend a grant 
or award additional funds, to make a competing or noncompeting 
continuation, renewal, extension, or supplemental award; or (4) voiding 
of a grant upon determination that the award was obtained fraudulently, 
or was otherwise illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 1174.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 1174.6, or:

[[Page 507]]

    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under Title V, Subtitle D, Chapter 2, 
Section 583--the Secretary's discretionary grant program) and Titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and Part C of Title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 1174.4(a) (3) through (8) are subject to Subpart E.



Sec. 1174.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 1174.6.



Sec. 1174.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified

[[Page 508]]

regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 1174.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 1174.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for approval only the amended portions of 
the plan.



Sec. 1174.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding

[[Page 509]]

agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grante or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 1174.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.

[[Page 510]]

    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 1174.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR Part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using such method is the unwillingness or 
inability of the grantee to provide timely advances to the subgrantee to 
meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold

[[Page 511]]

payments for proper charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 1174.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 1174.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          
For-profit organization other than a        48 CFR Part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------



Sec. 1174.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 1174.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of

[[Page 512]]

this section, a matching or cost sharing requirement may be satisfied by 
either or both of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 1174.25, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 1174.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.

[[Page 513]]

    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 1174.22, in the same way as depreciation or 
use allowances for purchased equipment and buildings. The amount of 
depreciation or use allowances for donated equipment and buildings is 
based on the property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the

[[Page 514]]

grantee. This requirement will also be imposed by the grantee on 
subgrantees.



Sec. 1174.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 1174.34.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 1174.31 and 
1174.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g) (2) and (3) of this 
section, program income in excess of any limits stipulated shall also be 
deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 1174.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act of 1984 (31 
U.S.C. 7501-7) and Federal agency implementing regulations. The audits 
shall be made by an independent auditor in accordance with

[[Page 515]]

generally accepted government auditing standards covering financial and 
compliance audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act, that receive Federal 
financial assistance and provide $25,000 or more of it in a fiscal year 
to a subgrantee shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Requirements for Grants and Other Agreements with 
Institutions of Higher Education, Hospitals and Other Nonprofit 
Organizations'' have met the audit requirement. Commercial contractors 
(private forprofit and private and governmental organizations) providing 
goods and services to State and local governments are not required to 
have a single audit performed. State and local govenments should use 
their own procedures to ensure that the contractor has complied with 
laws and regulations affecting the expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 1174.36 
shall be followed.

                    Changes, Property, and Subawards



Sec. 1174.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 1174.22) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:

[[Page 516]]

    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 1174.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 1174.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.



Sec. 1174.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the

[[Page 517]]

awarding agency. The grantee or subgrantee shall be paid an amount 
calculated by applying the grantee or subgrantee's percentage of 
participation in the purchase of the real property to the current fair 
market value of the property.



Sec. 1174.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 1174.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place will, as a minimum, meet 
the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.

[[Page 518]]

    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third part 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 1174.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 1174.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.



Sec. 1174.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 1174.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 1174.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will follow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of

[[Page 519]]

conduct governing the performance of their employees engaged in the 
award and administration of contracts. No employee, officer or agent of 
the grantee or subgrantee shall participate in selection, or in the 
award or administration of a contract supported by Federal funds if a 
conflict of interest, real or apparent, would be involved. Such a 
conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative anaylsis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.

[[Page 520]]

    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 1174.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services, geographic location may be 
a selection criteria provided its application leaves an appropriate 
number of qualified firms, given the nature and size of the project, to 
compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000).

[[Page 521]]

If small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 1174.36(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with more than one source 
submitting an offer, and either a fixed-price or cost-reimbursement type 
contract is awarded. It is generally used when conditions are not 
appropriate for the use of sealed bids. If this method is used, the 
following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a

[[Page 522]]

delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular 
procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price resonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 1174.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or

[[Page 523]]

service specified is the one being proposed for purchase. This review 
generally will take place prior to the time the specification is 
incorporated into a solicitation document. However, if the grantee or 
subgrantee desires to have the review accomplished after a solicitation 
has been developed, the awarding agency may still review the 
specifications, with such review usually limited to the technical 
aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the system. Under a self-certification procedure, 
awarding agencies may wish to rely on written assurances from the 
grantee or subgrantee that it is complying with these standards. A 
grantee or subgrantee will cite specific procedures, regulations, 
standards, etc., as being in compliance with these requirements and have 
its system available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other

[[Page 524]]

clauses approved by the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to that specific 
contract for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).

[53 FR 8082, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19645, Apr. 
19, 1995]



Sec. 1174.37  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 1174.42 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and

[[Page 525]]

amount that apply to cash advances by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 1174.10;
    (2) Section 1174.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 1174.21; and
    (4) Section 1174.50.

              Reports, Records, Retention, and Enforcement



Sec. 1174.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semi-annual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports shall be due 90 days after the grant year, quarterly or 
semi-annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such

[[Page 526]]

cases, the grantee must inform the Federal agency as soon as the 
following types of conditions become known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 1174.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extend required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that the Federal agency finds unnecessary for 
its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with paragraph Sec. 1174.41(e)(2)(iii) of this section.
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accural basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will

[[Page 527]]

be due 90 days after the expiration or termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction 
grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 1174.41(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 1174.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 1174.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.
    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 1174.41(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 1174.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 1174.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 1174.41(b)(2).

[[Page 528]]



Sec. 1174.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 1174.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits its expenditure report for 
the last quarter of the Federal fiscal year. In all other cases, the 
retention period starts on the day the grantee submits its final 
expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of

[[Page 529]]

the United States, or any of their authorized representatives, shall 
have the right of access to any pertinent books, documents, papers, or 
other records of grantees and subgrantees which are pertinent to the 
grant, in order to make audits, examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records Unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 1174.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under Executive Order 12549 (see 
Sec. 1174.35).



Sec. 1174.44  Termination for convenience.

    Except as provided in Sec. 1174.43 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 1174.43 
or paragraph (a) of this section.

[[Page 530]]



                 Subpart D--After-the-Grant Requirements



Sec. 1174.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:
In accordance with Sec. 1174.32(f), a grantee must submit an inventory 
of all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.



Sec. 1174.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 1174.42;
    (d) Property management requirements in Secs. 1174.31 and 1174.32; 
and
    (e) Audit requirements in Sec. 1174.26.



Sec. 1174.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Ch. II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.



                   Subpart E--Entitlements [Reserved]



PART 1175--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE NATIONAL ENDOWMENT FOR THE HUMANITIES--Table of Contents




Sec.
1175.101  Purpose.
1175.102  Application.
1175.103  Definitions.
1175.104--1175.109  [Reserved]
1175.110  Self-evaluation.
1175.111  Notice.
1175.112--1175.129  [Reserved]
1175.130  General prohibitions against discrimination.
1175.131--1175.139  [Reserved]
1175.140  Employment.
1175.141--1175.148  [Reserved]
1175.149  Program accessibility: Discrimination prohibited.
1175.150  Program accessibility: Existing facilities.

[[Page 531]]

1175.151  Program accessibility: New construction and alterations.
1175.152--1175.159  [Reserved]
1175.160  Communications.
1175.161--1175.169  [Reserved]
1175.170  Compliance procedures.
1175.171--1175.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 4578 and 4579, Feb. 5, 1986, unless otherwise noted.



Sec. 1175.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978, which amended section 504 of the Rehabilitation Act of 1973 to 
prohibit discrimination on the basis of handicap in programs or 
activities conducted by Executive agencies or the United States Postal 
Service.



Sec. 1175.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1175.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one of more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addition and 
alcholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by

[[Page 532]]

the agency as constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified handicapped person means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can achieve the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature; or
    (2) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity.
    (3) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1175.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.

[51 FR 4578 and 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]
Secs. 1175.104--1175.109  [Reserved]



Sec. 1175.110  Self-evaluation.

    (a) The agency shall, by April 9, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspections:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1175.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.
Secs. 1175.112--1175.129  [Reserved]



Sec. 1175.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualfied handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;

[[Page 533]]

    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
Secs. 1175.131--1175.139  [Reserved]



Sec. 1175.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
Part 1613, shall apply to employment in federally conducted programs or 
activities.
Secs. 1175.141--1175.148  [Reserved]



Sec. 1175.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1175.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1175.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons; or

[[Page 534]]

    (2) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1175.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
handicapped persons receive the benefits and services of the program or 
activity.
    (b) Methods. The agency may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to beneficiaries, 
home visits, delivery of services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible rolling stock, or any other methods that result in 
making its programs or activities readily accessible to and usable by 
handicapped persons. The agency is nor required to make structural 
changes in existing facilities where other methods are effective in 
achieving compliance with this section. The agency, in making 
alterations to existing buildings, shall meet accessibility requirements 
to the extent compelled by the Architectural Barriers Act of 1968, as 
amended (42 U.S.C. 4151 through 4157), and any regulations implementing 
it. In choosing among available methods for meeting the requirements of 
this section, the agency shall give priority to those methods that offer 
programs and activities to qualified handicapped persons in the most 
integrated setting appropriate.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by June 6, 1986, except that 
where structural changes in facilities are undertaken, such changes 
shall be made by April 7, 1989, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by October 7, 1986, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.

[51 FR 4578 and 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]



Sec. 1175.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151 through 4157), as established 
in 41 CFR 101-19.600 to 101-

[[Page 535]]

19.607, apply to buildings covered by this section.
Secs. 1175.152--1175.159  [Reserved]



Sec. 1175.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1175.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, handicapped persons receive the benefits and services 
of the program or activity.
Secs. 1175.161--1175.169  [Reserved]



Sec. 1175.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
Part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director, Office of Equal Opportunity shall be responsible 
for coordinating implementation of this section. Complaints may be sent 
to Director, Office of Equal Opportunity, National Endowment for the 
Humanities, 1100 Pennsylvania Avenue, NW., Room 419, Washington, DC 
20506.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers

[[Page 536]]

Compliance Board upon receipt of any complaint alleging that a building 
or facility that is subject to the Architectural Barriers Act of 1968, 
as amended (42 U.S.C. 4151 through 4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), is not readily 
accessible to and usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found;
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1175.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[51 FR 4578 and 4579, Feb. 5, 1986, as amended at 51 FR 4578, Feb. 5, 
1986]
Secs. 1175.171--1175.999  [Reserved]



PART 1176--PART-TIME CAREER EMPLOYMENT--Table of Contents




Sec.
1176.1  General.
1176.2  Definitions.
1176.3  Criteria.
1176.4  Establishing and converting part-time       positions.
1176.5  Annual plan.
1176.6  Review and evaluation.
1176.7  Publicizing vacancies.
1176.8  Exceptions.
1176.9--1176.99  [Reserved]

    Authority: Federal Employees Part-Time Career Employment Act of 
1978, Pub. L. 95-437, 92 Stat. 1055, 5 U.S.C. 3401-3408.

    Source: 46 FR 35647, July 10, 1981, unless otherwise noted.



Sec. 1176.1  General.

    (a) Purpose. Many individuals in society possess great productive 
potential which goes unrealized because they cannot meet the 
requirements of a standard workweek. Permanent part-time employment also 
provides benefits to other individuals in a variety of ways, such as 
providing older individuals with a gradual transition into retirement, 
providing employment opportunities to handicapped individuals or others 
who require a reduced workweek, providing parents with opportunities to 
balance family responsibilities with the need for added income, and 
assisting students who must finance their own education or vocational 
training. In view of this, the National Endowment for the Humanities 
will operate a part-time career employment program, consistent with its 
responsibilities and in accordance with Public Law 95-437, the Federal 
Employees' Part-Time Career Employment Act of 1978.
    (b) Program Coordinator. The Personnel Officer is responsible for 
program operation and coordination.



Sec. 1176.2  Definitions.

    (a) Part-time employment means employment of 16 to 32 hours a week 
under a schedule consisting of an equal or varied number of hours per 
day, whether in a position which would be part-time without regard to 
the Act or one established to allow job-sharing or comparable 
arrangements, but does not include employment on a temporary or 
intermittent basis.
    (b) Career employment includes competitive and excepted service 
employees in tenure groups I and II.

[[Page 537]]



Sec. 1176.3  Criteria.

    Positions becoming vacant, unless excepted as provided by 
Sec. 1176.8, will be reviewed to determine the feasibility of converting 
them to part-time. Among the criteria which may be used when conducting 
this review are:
    (a) Mission requirements.
    (b) Workload.
    (c) Employment ceilings and budgetary considerations.
    (d) Availability of qualified applicants willing to work part-time.



Sec. 1176.4  Establishing and converting part-time positions.

    Position management and other internal reviews may indicate that 
positions may be either converted from full-time or initially 
established as part-time positions. Criteria listed in Sec. 1176.3 may 
be used during these reviews. If a decision is made to convert to or to 
establish a part-time position, regular position management and 
classification procedures will be followed.



Sec. 1176.5  Annual plan.

    (a) An agencywide plan for promoting part-time employment 
opportunities will be developed annually. This plan will establish 
annual goals and set interim and final deadlines for achieving these 
goals. This plan will be applicable throughout the agency, and will be 
transmitted to the Office of Personnel Management with the required 
report to OPM on the status of the program as of September 30 of each 
year.
    (b) Beginning in FY 1981 in administering personnel ceilings, part-
time career employees shall be counted against ceiling authorizations as 
a fraction. This will be determined by dividing 40 hours into the 
average number of hours of such employee's regularly scheduled workweek.



Sec. 1176.6  Review and evaluation.

    Regular employment reports will be used to determine levels of part-
time employment. This program will also be designated an item of special 
interest to be reviewed during personnel management reviews.



Sec. 1176.7  Publicizing vacancies.

    When applicants from outside the Federal service are desired, part-
time vacanies may be publicized through various recruiting means, such 
as:
    (a) Federal Job Information Centers.
    (b) State Employment Offices.
    (c) Veterans' Administration Recruiting Bulletins.



Sec. 1176.8  Exceptions.

    (a) The Personnel Officer may except positions from inclusion in 
this program to provide fewer than 16 hours per week. This will normally 
be done in furtherance of special hiring programs such as the Stay-in-
School or Handicapped Employment Program.
    (b) On occasions when it becomes necessary to allow supervisors and 
managers to temporarily increase the hours of duty of employees above 32 
hours per week for limited and specific periods of time to meet heavy 
workloads, perform special assignments, permit employee training, etc., 
the Endowment policy is as follows:
    (1) Requests to work NEH employees on a 32 hour/week appointment 
more than 32 hours must be submitted in advance to the Personnel Office;
    (2) Justification should be concise but specific and must state the 
exact time frame for the increase in hours above 32 hours per week; and
    (3) The Program Coordinator will decide if the request meets the 
intent of the law and this agency's policy.
Secs. 1176.9--1176.99  [Reserved]



PART 1177--CLAIMS COLLECTION--Table of Contents




Sec.
1177.1  Purpose and scope.
1177.2  Definitions.
1177.3  Other remedies.
1177.4  Claims involving criminal activity or misconduct.
1177.5  Collection.
1177.6  Notice to debtor.
1177.7  Interest, penalties, and administrative costs.
1177.8  Administrative offset.
1177.9  Use of credit reporting agencies.
1177.10  Collection services.
1177.11  Referral to the Department of Justice or the General Accounting 
          Office.
1177.12  Compromise, suspension and termination.

[[Page 538]]

1177.13  Omissions not a defense.
1177.14--1177.99  [Reserved]

    Authority: 31 U.S.C. 3711, 3716-3719.

    Source: 51 FR 20484, June 5, 1986, unless otherwise noted.



Sec. 1177.1  Purpose and scope.

    This part prescribes standards and procedures for officers and 
employees of the National Endowment for the Humanities who are 
responsible for the collection and disposition of debts owed to the 
United States. The authority for this part is the Federal Claims 
Collection Act of 1966, as amended, 31 U.S.C. 3711 and 3716 through 
3719; the Federal Claims Collection Standards at 4 CFR parts 101 through 
105, as amended by 49 FR 8889, 5 U.S.C. 552a, and Office of Management 
and Budget Circular A-129. The activities covered include: collecting 
claims in any amount; compromising claims, or suspending or terminating 
the collection of claims that do not exceed $20,000 exclusive of 
interest and charges, and referring debts that cannot be disposed of by 
the Endowment to the Department of Justice or to the General Accounting 
Office for further administrative action or litigation.



Sec. 1177.2  Definitions.

    For the purpose of this part the following definitions will apply:
    (a) Claim or debt means an amount of property owed to the United 
States. These include but are not limited to: Overpayments to program 
beneficiaries; overpayments to contractors and grantees, including 
overpayments arising from audit disallowances; excessive cash advances 
to grantees and contractors; and civil penalties and assessments. A debt 
is overdue or delinquent if it is not paid by the due date specified in 
the initial notice of the debt (see Sec. 1177.6 of this part) or if the 
debtor fails to satisfy his or her obligation under a repayment 
agreement.
    (b) Debtor means an individual, organization, group, association, 
partnership, or corporation indebted to the United States, or the person 
or entity with legal responsibility for assuming the debtor's 
obligation.
    (c) Endowment means the National Endowment for the Humanities.
    (d) Administrative offset means satisfying a debt by withholding 
money payable by the United States to or held by the United States for a 
debtor.



Sec. 1177.3  Other remedies.

    The remedies and sanctions available to the National Endowment for 
the Humanities under this part are not intended to be exclusive. The 
Chairperson of the National Endowment for the Humanities or his designee 
may impose other appropriate sanctions upon a debtor for prolonged or 
repeated failure to pay a debt. For example, the Chairperson or his 
designee may place the debtor's name on a list of debarred, suspended, 
or ineligible grantees and contractors, convert the method of payment 
under a grant from an advance to a reimbursement method, or revoke a 
grantee's letter of credit. In such cases the debtor will be advised of 
the Endowment's action.



Sec. 1177.4  Claims involving criminal activity or misconduct.

    (a) A debtor whose indebtedness involves criminal activity such as 
fraud, embezzlement, theft, or misuse of government funds or property is 
subject to punishment by fine or imprisonment as well as to a civil 
claim by the United States for compensation for the misappropriated 
funds. The Endowment will refer these cases to the appropriate law 
enforcement agency for prosecution.
    (b) Debts involving fraud, false, claims, or misrepresentation shall 
not be compromised, terminated, suspended, or otherwise disposed of 
under this rule. Only the Department of Justice is authorized to 
compromise, terminate, suspend, or otherwise dispose of such debts.



Sec. 1177.5  Collection.

    (a) The Endowment will take aggressive action to collect debts and 
reduce delinquencies. Collection efforts shall include sending to the 
debtor's last known address a total of three progressively stronger 
written demands for payment at not more than 30 day intervals. When 
necessary to protect the Government's interest, written demand may be 
preceded by other appropriate action, including immediate referral

[[Page 539]]

for litigation. Other contact with the debtor or his or her 
representative or guarantor by telephone, in person and/or in writing 
may be appropriate to demand prompt payment, to discuss the debtor's 
position regarding the existence, amount and repayment of the debt, and 
to inform the debtor of his or her rights and the effect of nonpayment 
or delayed payment. A debtor who disputes a debt must promptly provide 
available supporting evidence.
    (b) If a debtor is involved in insolvency proceedings, the debt will 
be referred to the appropriate United States Attorney to file a claim. 
The United States may have a priority over other creditors under 31 
U.S.C. 3713.



Sec. 1177.6  Notice to debtor.

    The first written demand for payment must inform the debtor of the 
following:
    (a) The amount and nature of the debt:
    (b) The date payment is due, which will generally be 30 days from 
the date the notice was mailed;
    (c) The assessment of interest under Sec. 1177.7 from the date the 
notice was mailed if payment is not received within the 30 days;
    (d) The right to dispute the debt;
    (e) The office, address and telphone number that the debtor should 
contact to discuss repayment and reconsideration of the debt and;
    (f) The sanctions available to the National Endowment for the 
Humanities to collect a delinquent debt including, but not limited to, 
referral of the debt to a credit reporting agency, a private collection 
bureau, or the Department of Justice for litigation.



Sec. 1177.7  Interest, penalties, and administrative costs.

    (a) Interest will accrue on all debts from the date when the first 
notice of the debt and the interest requirement is mailed to the last 
known address or hand-delivered to the debtor if the debt is not paid 
within 30 days from the date the first notice was mailed. The Endowment 
will charge an annual rate of interest that is equal to the average 
investment rate for the Treasury tax and loan accounts on September 30 
of each year, rounded to the nearest whole per centum. This rate, which 
represents the current value of funds to the United States Treasury, may 
be revised quarterly by the Secretary of the Treasury and is published 
by the Secretary of the Treasury annually or quarterly in the Federal 
Register and the Treasury Financial Manual Bulletins.
    (b) The rate of interest initially assessed will remain fixed for 
the duration of the indebtedness, except that if a debtor defaults on a 
repayment agreement interest may be set at the Treasury rate in effect 
on the date a new agreement is executed.
    (c) The Endowment shall charge debtors for administrative costs 
incurred in handling overdue debts.
    (d) Interest will not be charged on administrative costs.
    (e) The Endowment shall assess a penalty charge, not to exceed 6 per 
cent per year on debts which have been delinquent for more than 90 days. 
This charge shall accrue from the date that the debt became delinquent.
    (f) The Chairperson or his designee may waive in whole or in part 
the collection of interest and administrative and penalty charges if 
determined that collection would be against equity or not in the best 
interests of the United States. The Endowment shall waive the collection 
of interest on the debt or any part of the debt which is paid within 30 
days after the date on which interest began to accrue.



Sec. 1177.8  Administrative offset.

    (a) The Endowment may collect debts owed by administrative offset 
if:
    (1) The debt is certain in amount;
    (2) Efforts to obtain direct payment have been, or would most likely 
be unsuccessful, or the Endowment and the debtor agree to the offset;
    (3) Offset is cost effective or has significant deterrent value; and
    (4) Offset is best suited to further and protect the Government's 
interest.
    (b) The Endowment may offset a debt owed to another Federal agency 
from amounts due or payable by the Endowment to the debtor or request 
another Federal agency to offset a debt owed to the Endowment;
    (c) Prior to initiating administrative offset, the National 
Endowment for the

[[Page 540]]

Humanities will send the debtor written notice of the following:
    (1) The nature and amount of the debt and the agency's intention to 
collect the debt by offset 30 days from the date the notice was mailed 
if neither payment nor a satisfactory response is received by that date;
    (2) The debtor's right to an opportunity to submit a good faith 
alternative repayment schedule to inspect and copy agency records 
pertaining to the debt, to request a review of the determination of 
indebtedness; and to enter into a written agreement to repay the debt 
and;
    (3) The applicable interest.
    (d) The National Endowment for the Humanities may effect an 
administrative offset against a payment to be made to a debtor prior to 
the completion of the procedures required by paragraph (c) of this 
section if:
    (1) Failure to offset would substantially prejudice the Government's 
ability to collect the debt and
    (2) The time before the payment is to be made does not reasonably 
permit completion of those procedures.



Sec. 1177.9  Use of credit reporting agencies.

    (a) The Endowment may report delinquent accounts to credit reporting 
agencies consistent with the notice requirements contained in the 
Sec. 1177.6 of this part. Individual debtors must be given at least 60 
days written notice that the debt is overdue and will be reported to a 
credit reporting agency.
    (b) Debts may be reported to consumer or commercial reporting 
agencies. Consumer reporting agencies are defined in 31 U.S.C. 
3701(a)(3) pursuant to 5 U.S.C. 552a(b)(12) and 31 U.S.C. 3711(f). The 
Endowment may disclose only an individual's name, address, social 
security number, and the nature, amount, status and history of the debt 
and the program under which the claim arose.



Sec. 1177.10  Collection services.

    (a) The Endowment may contract for collection services to recover 
outstanding debts. The Endowment may refer delinquent debts to private 
collection agencies listed on the schedule compiled by the General 
Services Administration. In such contracts, the National Endowment for 
the Humanities will retain the authority to resolve disputes, compromise 
claims, terminate or suspend collection, and refer the matter to the 
Department of Justice or the General Accounting Office.
    (b) The contractor shall be subject to the disclosure provisions of 
the Privacy Act of 1974, as amended (5 U.S.C. 552a(m)), and to 
applicable federal and state laws and regulations pertaining to debt 
collection practices, including the Fair Debt Collection Practices Act, 
15 U.S.C. 1692. The contractor shall be strictly accountable for all 
amounts collected.
    (c) The contractor shall be required to provide to the Endowment any 
data contained in its files relating to the debt account upon agency 
request or upon returning an account to the Endowment for referral to 
the Department of Justice for litigation.



Sec. 1177.11  Referral to the Department of Justice or the General Accounting Office.

    Debts over $600 but less than $100,000 which the Endowment 
determines can neither be collected nor otherwise disposed of will be 
referred for litigation to the United States Attorney in whose judicial 
district the debtor is located. Claims for amounts exceeding $100,000 
shall be referred for litigation to the Commercial Litigation Branch, 
Civil Division of the Department of Justice.



Sec. 1177.12  Compromise, suspension and termination.

    (a) The Chairperson of the National Endowment for the Humanities or 
his designee may compromise, suspend or terminate the collection of 
debts where the outstanding principal is not greater than $20,000. 
Endowment procedures for writing off outstanding accounts are available 
to the public.
    (b) The Chairperson of the National Endowment for the Humanities may 
compromise, suspend or terminate collection of debts where the 
outstanding principal is greater than $20,000 only with the approval of, 
or by referral to the United States Attorney or the Department of 
Justice.
    (c) The Chairman of the National Endowment for the Humanities will 
refer

[[Page 541]]

to the General Accounting Office (GAO) debts arising from GAO audit 
exceptions.



Sec. 1177.13  Omissions not a defense.

    Failure to comply with any provisions of this rule may not serve as 
a defense to any debtor.
Sec. 1177.14--1177.99  [Reserved]



PART 1178--USE OF PENALTY MAIL IN THE LOCATION AND RECOVERY OF MISSING CHILDREN--Table of Contents




Sec.
1178.1  Purpose and scope.
1178.2  Withdrawal of information.

    Authority: 39 U.S.C. 3220.



Sec. 1178.1  Purpose and scope.

    (a) The Chairperson of the National Endowment for the Humanities 
(NEH) may direct the agency to use penalty mail to assist in the 
location and recovery of missing children. When determined to be 
appropriate and cost-effective, the National Endowment for the 
Humanities may print, insert or use any other effective method to affix 
pictures and biographical data relating to missing children on NEH mail. 
The contact person for matters related to the implementation of this 
part is Tracy J. Joselson, Esq. Office of the General Counsel, National 
Endowment for the Humanities, 1100 Pennsylvania Avenue, NW., Washington, 
DC 20506, (202) 786-0322.
    (b) The National Center for Missing and Exploited Children will be 
the exclusive source from which the National Endowment for the 
Humanities will obtain photographic and biographical information for 
dissemination to the public.
    (c) It is estimated that the National Endowment for the Humanities 
will incur no additional costs to implement this program during its 
initial year. This estimate is based on a review of Endowment mailings 
that would maximize dissemination of this information.

[51 FR 20974, June 10, 1986]



Sec. 1178.2  Withdrawal of information.

    The National Endowment for the Humanities will withdraw or exhaust 
the supply of all materials bearing the photograph and biographical 
information of a missing child within a three month period from the date 
the National Center for Missing and Exploited Children receives notice 
that the child has been recovered or that the parents or guardian of the 
child have revoked permission to use the information. The National 
Center for Missing and Exploited Children will be responsible for 
immediately notifying the agency contact, in writing, of the need to 
withdraw or remove this material.

[51 FR 20974, June 10, 1986]



PART 1179--SALARY OFFSET--Table of Contents




1179.1  Purpose and scope.
1179.2  Definitions.
1179.3  Applicability.
1179.4  Notice requirements.
1179.5  Hearing.
1179.6  Written decision.
1179.7  Coordinating offset with another Federal agency.
1179.8  Procedures for salary offset.
1179.9  Refunds.
1179.10  Statute of limitations.
1179.11  Non-waiver of rights.
1179.12  Interest, penalties, and administrative costs.

    Authority: 5 U.S.C. 5514, E.O. 11809 (redesignated E.O. 12107), and 
5 CFR part 550, subpart K.

    Source: 52 FR 28472, July 30, 1987, unless otherwise noted.



Sec. 1179.1  Purpose and scope.

    (a) This regulation provides procedures for the collection by 
administrative offset of a Federal employee's salary without his/her 
consent to satisfy certain debts owed to the Federal government. These 
regulations apply to all Federal employees who owe debts to the National 
Endowment for the Humanities (NEH) and to current employees of the 
National Endowment for the Humanities who owe debts to other Federal 
agencies. This regulation does not apply when the employee consents to 
recovery from his/her current pay account.
    (b) This regulation does not apply to debts or claims arising under:

[[Page 542]]

    (1) The Internal Revenue Code of 1954, as amended, 26 U.S.C. 1 et 
seq; 
    (2) The Social Security Act, 42 U.S.C. 301 et seq;
    (3) The tariff laws of the United States; or
    (4) Any case where a collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute.
    (c) This regulation does not apply to any adjustment to pay arising 
out of an employee's selection of coverage or a change in coverage under 
a Federal benefits program requiring periodic deductions from pay if the 
amount to be recovered was accumulated over four pay periods or less.
    (d) This regulation does not preclude the compromise, suspension, or 
termination of collection action where appropriate under the standards 
implementing the Federal Claims Collection Act 31 U.S.C. 3711 et seq. 4 
CFR parts 101 through 105 45 CFR part 1177.
    (e) This regulation does not preclude an employee from requesting 
waiver of an overpayment under 5 U.S.C. 5584, 10 U.S.C. 2774 or 32 
U.S.C. 716 or in any way questioning the amount or validity of the debt 
by submitting a subsequent claim to the General Accounting Office. This 
regulation does not preclude an employee from requesting a waiver 
pursuant to other statutory provisions applicable to the particular debt 
being collected.
    (f) Matters not addressed in these regulations should be reviewed in 
accordance with the Federal Claims Collection Standards at 4 CFR 101.1 
et seq.



Sec. 1179.2  Definitions.

    For the purposes of the part the following definitions will apply:
    Agency means an executive agency as is defined at 5 U.S.C. 105 
including the U.S. Postal Service, the U.S. Postal Commission, a 
military department as defined at 5 U.S.C. 102, an agency or court in 
the judicial branch, an agency of the legislative branch including the 
U.S. Senate and House of Representatives and other independent 
establishments that are entities of the Federal government.
    Chairperson means the Chairperson of the National Endowment for the 
Humanities or the Chairperson's designee.
    Creditor agency means the agency to which the debt is owed.
    Debt means an amount owed to the United States from sources which 
include loans insured or guaranteed by the United States and all other 
amounts due the United States from fees, leases, rents, royalties, 
services, sales or real or personal property, overpayments, penalties, 
damages, interests, fines, forfeitures, (except those arising under the 
Uniform Code of Military Justice) and all other similar sources.
    Disposable pay means the amount that remains from an employee's 
Federal pay after required deductions for social security, Federal, 
state or local income tax, health insurance premiums, retirement 
contributions, life insurance premiums, Federal employment taxes, and 
any other deductions that are required to be withheld by law.
    Hearing official means an individual responsible for conducting any 
hearing with respect to the existence or amount of a debt claimed, and 
who renders a decision on the basis of such hearing. A hearing official 
may not be under the supervision or control of the Chairperson of the 
National Endowment for the Humanities.
    Paying Agency means the agency that employes the individual who owes 
the debt and authorizes the payment of his/her current pay.
    Salary offset means an administrative offset to collect a debt 
pursuant to 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his/her consent.



Sec. 1179.3  Applicability.

    (a) These regulations are to be followed when:
    (1) The National Endowment for the Humanities is owed a debt by an 
individual currently employed by another Federal agency;
    (2) The National Endowment for the Humanities is owed a debt by an 
individual who is a current employee of the National Endowment for the 
Humanities; or
    (3) The National Endowment for the Humanities employs an individual 
who owes a debt to another Federal agency.

[[Page 543]]



Sec. 1179.4  Notice requirements.

    (a) Deductions shall not be made unless the employee is provided 
with written notice signed by the Chairperson of the debt at least 30 
days before salary offset commences.
    (b) The written notice shall contain:
    (1) A statement that the debt is owed and an explanation of its 
nature, and amount;
    (2) The agency's intention to collect the debt by deducting from the 
employee's current disposable pay account;
    (3) The amount, frequency proposed beginning date, and duration of 
the intended deduction(s);
    (4) An explanation of interest, penalties, and administrative 
charges, including a statement that such charges will be assessed unless 
excused in accordance with the Federal Claims Collections Standards at 4 
CFR 101.1 et seq.;
    (5) The employee's right to inspect, request, or receive a copy of 
government records relating to the debt;
    (6) The opportunity to establish a written schedule for the 
voluntary repayment of the debt;
    (7) The right to a hearing conducted by an impartial hearing 
official;
    (8) The methods and time period for petitioning for hearings;
    (9) A statement that the timely filing of a petition for a hearing 
will stay the commencement of collection proceedings;
    (10) A statement that a final decision on the hearing will be issued 
not later than 60 days after the filing of the petition requesting the 
hearing unless the employee requests and the hearing official grants a 
delay in the proceedings;
    (11) A statement that knowingly false or frivolous statements, 
representations, or evidence may subject the employee to appropriate 
disciplinary procedures;
    (12) A statement of other rights and remedies available to the 
employee under statutes or regulations governing the program for which 
the collection is being made; and
    (13) Unless there are contractual or statutory provisions to the 
contrary, a statement that amounts paid on or deducted for the debt 
which are later waived or found not owed to the United States will be 
prompty refunded to the employee.



Sec. 1179.5  Hearing.

    (a) Request for hearing. (1) An employee must file a petition for a 
hearing in accordance with the instructions outlined in the agency's 
notice to offset. (2) A hearing may be requested by filing a written 
petition addressed to the Chairperson of the National Endowment for the 
Humanities stating why the employee disputes the existence or amount of 
the debt. The petition for a hearing must be received by the Chairperson 
no later than fifteen (15) calendar days after the date of the notice to 
offset unless the employee can show good cause for failing to meet the 
deadline date.
    (b) Hearing procedures. (1) The hearing will be presided over by an 
impartial hearing official. (2) The hearing shall conform to procedures 
contained in the Federal Claims Collection Standards 4 CFR 102.3(c). The 
burden shall be on the employee to demonstrate that the existence or the 
amount of the debt is in error.



Sec. 1179.6  Written decision.

    (a) The hearing official shall issue a written opinion no later than 
60 days after the hearing.
    (b) The written opinion will include: a statement of the facts 
presented to demonstrate the nature and origin of the alleged debt; the 
hearing official's analysis, findings and conclusions; the amount and 
validity of the debt, and the repayment schedule.



Sec. 1179.7  Coordinating offset with another Federal agency.

    (a) The Endowment as the creditor agency. (1) When the Chairperson 
determines that an employee of a Federal agency owes a delinquent debt 
to the National Endowment for the Humanities, the Chairperson shall as 
appropriate:
    (i) Arrange for a hearing upon the proper petitioning by the 
employee;
    (ii) Certify in writing that the employee owes the debt, the amount 
and basis of the debt, the date on which

[[Page 544]]

payment is due, the date the Government's right to collect the debt 
accrued, and that Endowment regulations for salary offset have been 
approved by the Office of Personnel Management;
    (iii) If collection must be made in installments, the Chairperson 
must advise the paying agency of the amount or percentage of disposable 
pay to be collected in each installment;
    (iv) Advise the paying agency of the actions taken under 5 U.S.C. 
5514(b) and provide the dates on which action was taken unless the 
employee has consented to salary offset in writing or signed a statement 
acknowledging receipt of procedures required by law. The written consent 
or acknowledgment must be sent to the paying agency;
    (v) If the employee is in the process of separating, the Endowment 
must submit its debt claim to the paying agency as provided in this 
part. The paying agency must certify any amounts already collected, 
notify the employee, and send a copy of the certification and notice of 
the employee's separation to the creditor agency. If the paying agency 
is aware that the employee is entitled to Civil Service Retirement and 
Disability Fund or similar payments, it must certify to the agency 
responsible for making such payments the amount of the debt and that the 
provisions of this part have been followed; and
    (vi) If the employee has already separated and all payments due from 
the paying agency have been paid, the Chairperson may request unless 
otherwise prohibited, that money payable to the employee from the Civil 
Service Retirement and Disability Fund or other similar funds be 
collected by administrative offset.
    (b) The Endowment as the paying agency. (1) Upon receipt of a 
properly certified debt claim from another agency, deductions will be 
scheduled to begin at the next established pay interval. The employee 
must receive written notice that the National Endowment for the 
Humanities has received a certified debt claim from the creditor agency, 
the amount of the debt, the date salary offset will begin, and the 
amount of the deduction(s). The National Endowment for the Humanities 
shall not review the merits of the creditor agency's determination of 
the validity or the amount of the certified claim.
    (2) If the employee transfers to another agency after the creditor 
agency has submitted its debt claim to the National Endowment for the 
Humanities and before the debt is collected completely, the National 
Endowment for the Humanities must certify the total amount collected. 
One copy of the certification must be furnished to the employee. A copy 
must be furnished the creditor agency with notice of the employee's 
transfer.



Sec. 1179.8  Procedures for salary offset.

    (a) Deductions to liquidate an employee's debt will be by the method 
and in the amount stated in the Chairperson's notice of intention to 
offset as provided in Sec. 1179.4. Debts will be collected in one lump 
sum where possible. If the employee is financially unable to pay in one 
lump sum, collection must be made in installments.
    (b) Debts will be collected by deduction at officially established 
pay intervals from an employee's current pay account unless alternative 
arrangements for repayment are made.
    (c) Installment deductions will be made over a period not greater 
than the anticipated period of employment. The size of installment 
deductions must bear a reasonable relationship to the size of the debt 
and the employee's ability to pay. The deduction for the pay intervals 
for any period must not exceed 15% of disposable pay unless the employee 
has agreed in writing to a deduction of a greater amount.
    (d) Unliquidated debts may be offset against any financial payment 
due to a separated employee including but not limited to final salary 
payment or leave in accordance with 31 U.S.C. 3716.



Sec. 1179.9  Refunds.

    (a) The National Endowment for the Humanities will refund promptly 
any amounts deducted to satisfy debts owed to the NEH when the debt is 
waived, found not owed to the NEH, or when directed by an administrative 
or judicial order.
    (b) The creditor agency will promptly return any amounts deducted by 
NEH

[[Page 545]]

to satisfy debts owed to the creditor agency when the debt is waived, 
found not owed, or when directed by an administrative or judicial order.
    (c) Unless required by law, refunds under this section shall not 
bear interest.



Sec. 1179.10  Statute of limitations.

    If a debt has been outstanding for more than 10 years after the 
agency's right to collect the debt first accrued, the agency may not 
collect by salary offset unless facts material to the Government's right 
to collect were not known and could not reasonably have been known by 
the official or officials who were charged with the responsibility for 
discovery and collection of such debts.



Sec. 1179.11  Non-waiver of rights.

    An employee's involuntary payment of all or any part of a debt 
collected under these regulations will not be construed as a waiver of 
any rights that employee may have under 5 U.S.C. 5514 or any other 
provision of contract law unless there are statutes or contract(s) to 
the contrary.



Sec. 1179.12  Interest, penalties, and administrative costs.

    Charges may be assessed for interest, penalties, and administrative 
costs in accordance with the Federal Claims Collection Standards, 4 CFR 
102.13.

[[Page 546]]



               SUBCHAPTER E--INSTITUTE OF MUSEUM SERVICES





PART 1180--GRANTS REGULATIONS--Table of Contents




        Subpart A--General Operating Support; Conservation Grants

Sec.
1180.1  Purpose of museum services program.
1180.2  Scope of this document.
1180.3  Definition of museum.
1180.4  Other definitions.
1180.5  Eligibility and burden of proof--Who may apply.
1180.6  Related institutions.
1180.7  General Operating Support.
1180.8  Two-Year grant period.
1180.9  Limitation on amount of General Operating Support grants.
1180.10  Allowable costs.
1180.11  Basic requirements which a museum must meet to be considered 
          for funding.
1180.12  How applications are judged.
1180.13  Criteria for evaluation of applications for General Operating 
          Support.
1180.14  [Reserved]
1180.15  Duration of grants.
1180.16  Contributions, restricted accounts.
1180.17  Reports.
1180.18  Maintenance of effort.
1180.19  [Reserved]
1180.20  Guidelines and standards for conservation projects.

     Subpart B--General Application, Selection and Award Procedures 
                              Applications

                              Applications

1180.30  Publication of an application notice; content of the notice.
1180.31  Information in the application notice.
1180.32  Deadline date for applications.
1180.33  Applicants must meet procedural rules.
1180.34  Number of copies.
1180.35  Group applications.

                     Selection and Award Procedures

1180.36  Rejection of an application.
1180.37  Rejection for technical deficiency--appeal; reconsideration; 
          waiver.
1180.38  How grants are processed.
1180.39  Applications not selected for funding.
1180.40  [Reserved]
1180.41  The cost analysis; basis for grant amount.
1180.42  The notification of grant award.
1180.43  Effect of the grant.

      Subpart C--General Conditions Which Must Be Met by a Grantee

                            Nondiscrimination

1180.44  Federal statutes and regulations on nondiscrimination.
1180.45  Use of consultants in Special Projects.

                               Evaluation

1180.46  Evaluation by the grantee.
1180.47  Federal evaluation--cooperation by a grantee.

                       Publications and Copyrights

1180.48  General conditions on publications.
1180.49  Copyright policy for grantees.
1180.50  Definition of ``materials.''

                 General Administrative Responsibilities

1180.51  Compliance with statutes, regulations, and its approved grant 
          application.
1180.52  The grantee administers or supervises the grant.
1180.53  Fiscal control and fund accounting procedures.
1180.54  Obligation of funds during the grant period.
1180.55  Prohibition of subgrants.

                                 Records

1180.56  Records related to grant funds.
1180.57  Records related to compliance.
1180.58  Records related to performance.
1180.59  Applicability.

                      Subpart D--Museum Assessment

1180.70  Purpose of program.
1180.71  Eligibility.
1180.72  Allowable costs.
1180.73  Form of assistance; limitation on amount.
1180.74  Conditions of participation.
1180.75  Funding and award procedures.
1180.76  Responsibility of a museum.

       Subpart E--Assistance to Professional Museum Organizations

1180.77  Contracts and cooperative agreements with professional museum 
          organizations.
1180.78  Technical training and implementation grants to museums.

[[Page 547]]

                          Subpart F--[Reserved]

        Subpart G--Meetings of the National Museum Services Board

                                 General

1180.80  Scope.
1180.81  General rule.
1180.82  Application to NMSB committees.
1180.83  Record vote.

                        Announcement of Meetings

1180.84  Public announcement of meetings.
1180.85  Changes in time or place of meeting.
1180.86  Changes in subject matter of meeting.
1180.87  Publication of announcements.

                             Closed Meetings

1180.88  Reasons and procedures for closing meetings.
1180.89  Requests to close meetings.
1180.90  Materials related to closed portions of meetings.
1180.91  Opening of transcript or recording of closed meeting.

Appendix A to Part 1180

    Authority: 20 U.S.C. 961-968; Pub. L. 97-100, 95 Stat. 1414; Pub. L. 
97-394, 96 Stat. 1994; 29 U.S.C. 794.

    Source: 48 FR 27728, June 17, 1983, unless otherwise noted.



        Subpart A--General Operating Support; Conservation Grants



Sec. 1180.1  Purpose of museum services program.

    The purpose of this program of Federal financial assistance is to 
ease the financial burden borne by museums as a result of their 
increasing use by the public and to encourage and assist them to carry 
out their educational and conservation roles as well as other functions 
and to modernize their methods and facilities.



Sec. 1180.2  Scope of this document.

    This document establishes rules for the award of grants to museums 
from funds appropriated under the Museum Services Act including rules 
governing the eligibility of applicant institutions, the type of 
assistance which may be provided, requirements which applicants must 
meet and criteria to be used in judging applications.



Sec. 1180.3  Definition of museum.

    For the purpose of this part:
    (a) Museum means a public or private nonprofit institution which is 
organized on a permanent basis for essentially educational or aesthetic 
purposes and which, using a professional staff:
    (1) Owns or uses tangible objects, either animate or inanimate;
    (2) Cares for these objects; and
    (3) Exhibits them to the general public on a regular basis.
    (i) An institution which exhibits objects to the general public for 
at least 120 days a year shall be deemed to meet this requirement.
    (ii) An institution which exhibits objects by appointment may meet 
this requirement if it can establish, in light of the facts under all 
the relevant circumstances, that this method of exhibition does not 
unreasonably restrict the accessibility of the institution's exhibits to 
the general public.
    (b) Museum includes (but is not limited to) the following 
institutions if they satisfy the provisions of this section:
    (1) Aquariums and zoological parks;
    (2) Botanical gardens and arboretums;
    (3) Nature Centers;
    (4) Museums relating to art, history (including historic buildings), 
natural history, science and technology; and
    (5) Planetariums.
    (c) For the purposes of this section, an institution uses a 
professional staff if it employs at least one staff member, or the 
fulltime equivalent, whether paid or unpaid primarily engaged in the 
acquisition, care, or exhibition to the public of objects owned or used 
by the institution.
    (d)(1) Except as set forth in paragraph (d)(2) of this section, an 
institution exhibits objects to the general public for the purposes of 
this section if such exhibition is a primary purpose of the institution.
    (2) An institution which does not have as a primary purpose the 
exhibition of objects to the general public but which can demonstrate 
that it exhibits objects to the general public on a regular basis as a 
significant, separate, distinct, and continuing portion of its 
activities, and that it otherwise meets the requirements of this 
section,

[[Page 548]]

may be determined to be a museum under this section. In order to 
establish its eligibility, such an institution must provide information 
regarding the following:
    (i) The number of staff members devoted to museum functions as 
described in paragraph (a) of this section.
    (ii) The period of time that such museum functions have been carried 
out by the institution over the course of the institution's history.
    (iii) Appropriate financial information for such functions presented 
separately from the financial information of the institution as a whole.
    (iv) The percentage of the institution's total space devoted to such 
museum functions.
    (v) Such other information as the Director requests.
    (3) The Director uses the information furnished under paragraph 
(d)(2) of this section in making a determination regarding the 
eligibility of such an institution under this section.
    (e) For the purpose of this section, an institution exhibits objects 
to the public if it exhibits the objects through facilities which it 
owns or operates.

[48 FR 27728, June 17, 1983, as amended at 50 FR 27587, July 5, 1985]



Sec. 1180.4  Other definitions.

    The following other definitions apply in this document:
    Act means the Museum Services Act, Title II of the Arts, Humanities 
and Cultural Affairs Act of 1976, Public Law 94-462 (20 U.S.C. 961-968).
    Board means the National Museum Services Board established under 
Section 204 of the Act.
    Collection includes objects owned, used or loaned by a museum as 
well as those literary, archival and documentary resources specifically 
required for the study and interpretation of these objects.
    Foundation means the National Foundation on the Arts and the 
Humanities.
    Director means the Director of the Institute of Museum Services.
    Grantee means the recipient of a grant under the Act.
    Institute means the Institute of Museum Services (IMS) established 
under Section 203 of the Act.
    Museum services means services provided by a museum, primarily 
exhibiting objects to the general public, and including but not limited 
to preserving and maintaining its collections, and providing educational 
and other programs to the public through the use of its collections and 
other resources.



Sec. 1180.5  Eligibility and burden of proof--Who may apply.

    (a) A museum located in any of the fifty States of the Union, the 
Commonwealth of Puerto Rico, American Samoa, the Virgin Islands, the 
Northern Mariana Islands, the Trust Territory of the Pacific Islands, 
Guam, or the District of Columbia may apply for a grant under the Act.
    (b) No museum is eligible to apply for funding available under the 
Act unless it has provided museum services, including exhibiting objects 
to the general public on a regular basis, for at least two years prior 
to application.
    (c) A public or private nonprofit agency which is responsible for 
the operation of a museum may, if necessary, apply on behalf of the 
museum.
    (d) A museum operated by a department or agency of the Federal 
Government is not eligible to apply.
    (e) An applicant has the burden of establishing that it is eligible 
for assistance under these regulations.
    (f) In a given year, a museum that has not received two consecutive 
General Operating Support awards in the immediately preceding two-year 
cycles is eligible to apply for General Operating Support.

[50 FR 27588, July 5, 1985, as amended at 60 FR 63964, Dec. 13, 1995]



Sec. 1180.6  Related institutions.

    (a) If two or more institutions are under the common control of one 
agency or institution or are otherwise organizationally related and 
apply for assistance under the Act, the Director determines under all 
the relevant circumstances whether they are separate museums for the 
purposes of establishing eligibility for assistance under these 
regulations. See Secs. 1180.5 and 1180.9.
    (b) IMS regards the following factors, among others, as showing that 
a related institution is a separate museum:

[[Page 549]]

    (1) The institution has its own governing body;
    (2) The institution has budgetary autonomy; and
    (3) The institution has administrative autonomy.



Sec. 1180.7  General Operating Support.

    In order to maintain, increase or improve museum services, a museum 
may apply for a grant under the Act to meet administrative, staff and 
operating costs, except as otherwise provided in these regulations.



Sec. 1180.8  Two-year grant period.

    (a) IMS makes General Operating Support grants for a period of 
twenty-four months beginning with the first month of the grant period.
    (b) A museum that receives a General Operating Support grant in a 
Federal fiscal year may not apply for an additional General Operating 
Support grant in the succeeding Federal fiscal year.
    Example. A museum applies for a General Operating Support grant in 
Federal fiscal year 1993. The museum receives a grant that it may use 
during the applicable 24-month grant period. The museum may not apply 
for an additional General Operating Support grant in Federal fiscal year 
1994.

[57 FR 36905, Aug. 17, 1992]



Sec. 1180.9  Limitation on amount of General Operating Support grants.

    (a) General rule. IMS makes General Operating Support grants in an 
amount not to exceed the lesser of:
    (1) the ceiling amount established under paragraph (b);
    (2)(i) 15 percent of the applicant museum's non-Federal operating 
income for its most recently completed fiscal year that is prior to the 
Federal fiscal year in which the application is filed; or
    (ii) $7,500, if larger.
    (b) Ceiling amount. The ceiling amount of a General Operating 
Support grant will be established through a notice published in the 
Federal Register. Beginning in FY 1993, the ceiling amount is $112,500.
    (c) Statutory requirement. Under section 206(c) of the Act, IMS may 
not make a grant in excess of 50 percent of the annual cost of the 
program for which the grant is made. If the application of the $7,500 
limitation in paragraph (a)(2) of this section causes a General 
Operating Support grant to exceed 50 percent of the museum's annual 
operating income for the grant period in question, IMS reduces the grant 
to that level in order to satisfy the statutory requirement.
    (d) Computation of non-Federal operating income. For the purposes of 
this section, a museum may include in non-Federal operating income an 
amount reflecting the reasonable and conservative value of non-cash 
contributions to the museum in the applicable fiscal year.
    Examples. The application of these rules is set forth in the 
following examples:
    (1) In fiscal year 1993, a museum with calendar year 1991 operating 
income of $5,000,000 applies to IMS for a General Operating Support 
grant. Its application is approved. It may receive a grant of no more 
than $112,500, the lesser of $112,500 and $750,000 which is 15 percent 
of the museum's non-Federal operating income.
    (2) In fiscal year 1993, a museum with calendar 1991 operating 
income of $700,000 applies to IMS for a General Operating Support grant. 
Its application is approved. It may receive a grant of no more than 
$105,000 the lesser of $112,500 and 15 percent of the operating income 
which is $105,000.
    (3) In fiscal year 1993, a museum with calendar 1991 operating 
income of $40,000 applies to IMS for a General Operating Support grant. 
Its application is approved. It may receive a grant of no more than 
$7,500, the larger of $7,500 or 15 percent of the museum's operating 
income which is $6,000. The grant satisfies the requirement of paragraph 
(c) (and the statute) that it not exceed 50 percent of the museum's 
operating income for that year.

[57 FR 36905, Aug. 17, 1992]



Sec. 1180.10  Allowable costs.

    (a) Determination of costs allowable under a grant is made in 
accordance with government-wide cost principles in applicable OMB 
circulars. (OMB circular A-21 (educational institutions) February 26, 
1979, published in 44 FR 12368 (March 6, 1979); OMB circular A-87 (State 
and local governments) January 15, 1981 published in 46 FR 9548 (January 
28, 1981); and OMB circular A-122 (Nonprofit organizations) June 27, 
1980, published in 45 FR 46022 (July 8, 1980)).
    (b) No costs shall be allowed for the purchase of any object to be 
included

[[Page 550]]

in the collection of a museum, except library, literary, or archival 
material specifically required for a designated activity under a grant 
under the Act.



Sec. 1180.11  Basic requirements which a museum must meet to be considered for funding.

    (a) Application. To apply for a grant, a museum must submit the 
designated application form containing the information requested in the 
form. Failure to submit the information required by the application at 
the time of filing can subject an applicant to rejection of the 
application without consideration on its merits.
    (b) IRS letter. A museum applying as a private, nonprofit 
institution must submit a copy of the letter from the Internal Revenue 
Service indicating the applicant's eligibility for nonprofit status 
under the applicable provision of the Internal Revenue Code of 1954, as 
amended.
    (c) Financial statements. (1) Each applicant museum must submit, 
with its application at the time of filing, its financial statements for 
the two fiscal years immediately preceding the fiscal year for which 
application is made or, if not available, for the second and third 
immediately preceding years. Each financial statement must include a 
statement of financial operations and if applicable, a balance sheet. 
Examples of a financial statement and a balance sheet may be found in 
the Museum Accounting Guidelines of the Association of Science-
Technology Centers (1976) or in the Museum Accounting Handbook of the 
American Association of Museums (1978).
    (2)(i) Every applicant which has previously received an IMS award 
must submit its audited financial statement for the last fiscal year 
immediately preceding the fiscal year in which application is made or 
the immediately preceding fiscal year, prepared by an individual or 
organization meeting the qualifications of the Comptroller General of 
the United States for individuals or organizations conducting Government 
audits. Reference is made to GAO, Standards for Audit of Governmental 
Organizations, Programs and Functions (1981 revision).
    (ii) In the case of a museum which does not use cash basis 
accounting, the individual or organization performing the audit must 
offer an opinion that the financial statement of the museum presents 
fairly the financial position and the results of financial operations in 
accordance with generally accepted accounting principles. In the case of 
a museum which uses cash basis accounting, the individual or 
organization performing the audit must offer an opinion that the 
statement presents fairly (A) revenues collected and expenditures made 
and (B), where a balance sheet is involved, the assets, liabilities, and 
fund balances of the museum arising from cash transactions.
    (3) If a museum is part of an organization such as a university, 
State or municipality and does not receive audits separate from those of 
the organization of which it is a part, it may submit its financial 
statement as drawn from and containing only audited figures of the 
organization of which the museum is a part. This financial statement, so 
prepared, must present fairly the financial position and the results of 
financial operations of the museum, and must clearly indicate that it 
has been so prepared and the Director may, upon written request filed at 
the time of the application, waive the requirement of a separate audit 
and proceed to process the application on its merits. Where the 
organization is not audited on an annual basis, the financial statement 
may be drawn from the most recent audited figures of the organization.
    (4) The Director is authorized to defer the audit requirement set 
forth in paragraph (c)(2) of this section in the case of a museum with 
non-federal operating income of $250,000 or less, exclusive of the value 
of non-cash contributions (in the fiscal period preceding the fiscal 
period for which the deferral is requested) if the Director finds that 
circumstances justify a deferral and that the grant of the deferral will 
not be inequitable to other applicants. A deferral may be granted only 
upon those conditions and in light of those assurances which the 
Director deems appropriate in order to ensure that the purposes of this 
paragraph are achieved. If the museum receives an

[[Page 551]]

award, the museum must submit audited financial statements no later than 
the end of the grant period for which the deferral is requested.
    (d) Long-range plans. Each applicant museum must include long-range 
plans for program and financial development.

(Museum Services Act, sec. 206, as amended, 20 U.S.C. 965)

(Approved by the Office of Management and Budget under control number 
3137-0015)

[48 FR 27728, June 17, 1983, as amended at 49 FR 14110, Apr. 10, 1984; 
50 FR 27588, July 5, 1985; 51 FR 43354, Dec. 2, 1986; 55 FR 10461, Mar. 
21, 1990; 59 FR 55593, Nov. 8, 1994]



Sec. 1180.12  How applications are judged.

    (a) To select grantees and determine the amount of their awards. IMS 
rates competitive applications under the applicable criteria stated in 
Sec. 1180.13. Normally, these applications are first evaluated by field 
reviewers, panels of experts, or both. Final determinations as to the 
award of grants are made by the Director after review by the Board.
    (b) To achieve diversity in the distribution of assistance, the 
Institute may consider the location, size and discipline of the 
applicant in addition to the criteria in Sec. 1180.13.

[50 FR 27588, July 5, 1985]



Sec. 1180.13  Criteria for evaluation of applications for General Operating Support.

    The following criteria apply to the evaluation of all applications 
for General Operating Support. In applying these criteria, the total 
operation of the applicant museum is assessed, including the museum's 
operation as it would be if the General Operating Support is granted. 
This assessment is based primarily on the information supplied in the 
museum's application.
    (a) Museum services. Are the applicant's museum services of high 
quality? IMS considers factors such as:
    (1) The quality of the museum's educational and interpretive 
services and their relevance to the collections and audience including 
the special constituencies which the museum serves;
    (2) The quality of the museum's physical facilities and the manner 
in which space is allocated to various museum activities; and
    (3) The qualifications of the professional staff (both full-time and 
part-time; paid and volunteer) and the quality of the opportunities for 
professional staff development and in-service training afforded by the 
museum.
    (b) Collections and exhibits. Are the museum's collections and 
exhibits of high quality and significance? IMS takes into account such 
factors as:
    (1) The intrinsic value of the collections and exhibits;
    (2) The significance of the museum's collections to the community; 
and
    (3) The quality of the care and conservation of the collections; the 
quality of exhibit designs.
    (c) Accessibility. How accessible to the general public are the 
museum's services, collections and exhibits? IMS considers such factors 
as:
    (1) The percentage of the museum's collections on view to the 
general public on a regular basis; the extent of the museum's regular 
program for outreach, loans, and other means of exhibiting its 
collections to the public;
    (2) The annual schedule of open hours for the museum; and
    (3) The appropriateness of this schedule to the museum's audience.
    (d) Population served. To what extent does the museum serve a 
general public which otherwise would have limited access to the type of 
museum services which it provides or to museum services of any type? To 
what extent does the public seek access to the museum's services? IMS 
considers such factors as:
    (1) The characteristics of the audience and the community which the 
museum serves;
    (2) The availability of other museums (or types of museums) which 
serve this audience and this community; and
    (3) The museum's annual attendance by calendar quarters.
    (e) Financial Management. What is the quality of the financial 
management of the museum? In how many of the last five years has the 
museum shown an excess of revenues over expenditures? IMS considers such 
factors as:
    (1) The financial condition of the museum as reflected in its 
financial statements;
    (2) The quality of the museum's plans for remedying any financial 
weaknesses in the museum's operations; and

[[Page 552]]

    (3) The qualifications of the museum staff assigned to financial 
management activities.
    (f) Long-range plans. What is the quality of the museum's long-range 
plans for financial and program development? What are the museum's plans 
for the expenditure of the grant funds? IMS considers such factors as:
    (1) The quality of the museum's long-range plans; how the museum 
proposes to implement them; how practical are the steps the museum plans 
to take to implement them?
    (2) The probability that the General Operating Support grant, if 
awarded, will assist the museum in carrying out its long-range plans;
    (3) In what manner will this grant, if awarded, contribute to 
maintaining, increasing or improving the museum's services?
    (g) Community commitment. How committed to the museum are its users 
and supporters? Does the museum have a substantial base of non-Federal 
support? Does it have a strong volunteer program? IMS considers such 
factors as:
    (1) The quality and extent of the financial support that the museum 
receives from the private sector and other non-Federal sources and the 
extent to which this support is stable, broad-based and indicative of 
continuing community commitment;
    (2) The quality of the museum's volunteer program and its program of 
in-kind contributions and their importance to the museum's annual 
operations; and
    (3) The commitment of its users to the museum as evidenced by such 
factors as participation in membership and docent programs, fund raising 
and other supportive activities.
    (h) Non-Federal support. To what extent, if any, will the General 
Operating Support requested enable the museum to increase its base of 
State, local and private funding in the year for which assistance is 
requested and beyond?
    (i) Past use of IMS funds (when applicable). Has the museum used its 
IMS funds effectively? How and in what amounts and in what manner have 
they been used?
Sec. 1180.14  [Reserved]



Sec. 1180.15  Duration of grants.

     The grantee may use grant funds during the period specified in the 
grant document unless the grant is suspended or terminated. If the 
grantee needs additional time to complete the grant, the grantee may 
apply for an extension of the grant period without additional funds. The 
Director may approve this extension at his or her discretion.

[57 FR 36905, Aug. 17, 1992]



Sec. 1180.16  Contributions, restricted accounts.

    (a) For a particular fiscal year, and for one or more programs, the 
Board may determine that an amount equal to the amount to be awarded (or 
a percentage thereof) to an applicant under the Act must consist of non-
Federal funds contributed to the museum in excess of the non-Federal 
funds contributed to the museum for its immediately preceding fiscal 
year.
    (b) A museum shall maintain a restricted account for funds received 
under the Act.

[57 FR 36905, Aug. 17, 1992]



Sec. 1180.17  Reports.

    In its final reports a grantee shall briefly detail how the 
expenditure of the grant funds has satisfied the proposed use of the 
funds as stated in its General Operating Support application or has 
accomplished the proposal as set forth in its application and has served 
the purpose of the Act as reflected in the applicable evaluation 
criteria in Sec. 1180.13.

[60 FR 63964, Dec. 13, 1995]



Sec. 1180.18   Maintenance of effort.

    A grantee must be able to demonstrate a continuing effort to 
maintain or increase its base of financial support during the fiscal 
year for which it receives a grant from IMS. A grantee successfully 
demonstrates maintenance of effort if its non-federal operating income 
during the fiscal year of its award is at least equal to its non-federal 
operating income for its immediately preceding fiscal year.

[49 FR 14111, Apr. 10, 1984]

[[Page 553]]

Sec. 1180.19  [Reserved]



Sec. 1180.20  Guidelines and standards for conservation projects.

    (a) Scope. The guidelines and standards in this document apply to 
all aspects of the IMS conservation grant program including the 
submission of applications by museums for conservation grants, to the 
award, review and approval of such applications by IMS, and to the 
carrying out of conservation grants awarded by IMS.
    (b) Applicability of regulations. (1) Except as otherwise provided 
in these guidelines, subparts A-C of this part, part 1180 of Title 45 
CFR, (45 CFR 1180.1-1180.58) (IMS Grants Regulations), as amended, 
including Secs. 1180.35, 1180.41, 1180.45, 1180.48, and 1180.49, apply 
to the IMS conservation grant program.
    (2) Sections 1180.11(d) does not apply. A museum which applies for a 
conservation grant need not submit a long-range plan.
    (3) Section 1180.16(b), which provides for the maintenance of a 
restricted account, does apply to conservation grants.
    (4) Section 1180.18 (relating to maintenance of effort) does not 
apply.
    (5) In addition to submitting the final report required by 
Sec. 1180.17, a grantee must submit an interim report in accordance with 
a schedule set forth in the grant award document. An applicant that has 
received a prior conservation grant from IMS the performance of which 
has not been completed may be required to submit an additional 
performance report or submit an interim report early.
    (c) Definition. As used in these guidelines, the term conservation 
includes, but is not limited to, the following functions, as applied to 
art, history, natural history, science and technology, and living 
collections:
    (1) Technical examination of materials and surveys of environmental 
and collection conditions;
    (2) Provision, insofar as practicable, of optimum environmental 
conditions for housing, exhibition, monitoring, reformating, nurturing 
and transportation of objects;
    (3) Physical treatment of objects, specimens and organisms, for the 
purpose of stabilizing, conserving and preserving their condition, 
removal of inauthentic additions or accretions, and physical 
compensation for losses; species survival activities; and
    (4) Research and training in conservation.
    (d) Applicants. Under the Museum Services Act only a museum may 
receive a grant. (20 U.S.C. 965(a)). See Sec. 1180.3 of the IMS 
regulations for the definition of ``museum''. A museum may apply for and 
receive only one conservation grant under this program in a fiscal year.
    (e) Types of conservation projects funded. IMS considers 
applications to carry out conservation projects such as:
    (1) Projects to develop improved or less costly methods of 
conservation, or to maintain or improve conservation with respect to one 
or more collections, including--
    (i) Projects involving surveys of conservation needs and
    (ii) Projects to establish or maintain optimum environmental 
conditions.
    (2) Projects to conduct research in conservation (including 
developmental and basic research).
    (3) Projects to conduct or obtain training in conservation 
(including training of persons for careers as professional conservators; 
training or upgrading of practicing conservators and conservation 
technicians in the use of new materials and techniques; and training of 
persons to become conservation technicians).
    (4) Projects related to museum conservation needs not regularly 
addressed by other Federal funding agencies.
    (5) Projects to meet the conservation needs of museums which are 
unable to maintain their own individual conservation facilities. Because 
grants are made only to museums, organizations which operate regional 
conservation centers but which are not museums are ineligible for a 
direct grant. However, a museum or a group of museums may use a grant to 
obtain services from such a center.
    (6) Projects to conserve particular objects in a museum's collection 
(including plants and animals) or to meet the conservation needs of a 
particular museum (through such activities as the employment of 
conservators and the

[[Page 554]]

procurement of conservation services or equipment).
    (f) Limits for Federal funding. (1) The normal amount of a 
Conservation Project Support grant will be established through a notice 
published in the Federal Register. Beginning in FY 1996, the normal 
maximum amount is $50,000. Unless otherwise provided by law, if the 
Director determines that exceptional circumstance warrant, the Director, 
consistent with the policy direction of the Board, may award a 
conservation grant which obligates an amount in Federal funds in excess 
of the normal maximum award. IMS may establish a maximum award level for 
exceptional project grants for a particular fiscal year through 
information made available in guidelines or other material distributed 
to all applicants.
    (2) A conservation grant is not included in the maximum amount which 
a museum may expect to receive from IMS for a fiscal year, as set forth 
pursuant to Sec. 1180.9 of the regulations. Therefore, a museum may 
receive, for example, a General Operating Support grant for the amount 
specified pursuant to that section and an additional amount for a 
conservation grant in a fiscal year.
    (3) IMS makes conservation grants only on a matching basis. This 
means that at least 50 per cent of the costs of a conservation project 
must be met from non-federal funds. Principles in applicable OMB 
circulars regarding costs sharing or matching apply. See, e.g., OMB 
Circular A-102, Attachment F.
    (g) Application requirements; priorities; survey required in certain 
cases. (1) Application requirements in Sec. 1180.11 (a), (b), and (c) 
apply. An application shall describe when, during the term of the grant, 
the applicant plans to complete each objective or phase of the project. 
Where appropriate, IMS may require an applicant to submit a 
dissemination plan.
    (2) The Board, by notice published in the Federal Register, may 
establish priorities with respect to all or part of the funds available 
to IMS for conservation for a fiscal year among the types of projects 
specified in paragraph (e) of this section. If the Board establishes one 
or more types of projects as a priority for a fiscal year, applications 
proposing projects of that type (or types) are evaluated, ranked and (if 
recommended for funding) approved before applications proposing other 
types of projects.
    (3) The Director may, to the extent appropriate, require (by 
instructions in the application materials) that an applicant which 
proposes a project to conserve particular objects must show that, prior 
to the submission of the application, it has carried out a general 
survey of its conservation needs and priorities and that the project in 
question is consistent with such survey. In exceptional circumstances, 
the Director may adjust this requirement, consistent with the policy 
direction of the Board. The Director may also (through such 
instructions) require an applicant for a conservation project to submit 
additional information, material, or undertakings to carry out the 
purposes of this part.
    (h) Procedures for review of applications. (1) IMS uses the 
procedures stated in this paragraph to review applications for 
conservation projects.
    (2) IMS evaluates all eligible applications for conservation 
projects in accordance with applicable criteria. (See paragraph (i) of 
this section.) The Director expects to use panels of experts to review 
at least a portion of the applications for conservation grants. 
Depending upon the number of applications received as well as other 
factors, the Director may also use field reviewers to evaluate 
applications before submission of applications to the panels. In 
addition, the Director may use technical experts to provide technical 
advice regarding certain applications. See generally Sec. 1180.12 of the 
IMS regulations.
    (3) IMS evaluates applications for conservation projects separately 
from applications for general operating support.
    (i) Criteria. This paragraph sets forth the criteria which IMS uses 
in evaluating and reviewing applications for conservation grants. 
Panelists and field reviewers are instructed to use only these criteria 
in the evaluation and review of these applications.

[[Page 555]]

    (1) The following programmatic criteria apply to the evaluation and 
review of conservation grants:
    (i) What is the importance of the object or objects to be conserved? 
What is the significance of the object or objects to the museum's 
collection and/or audience?
    (ii) What is the need for the project, including the relationship of 
the project to the conservation needs and priorities of the applicant 
museum as reflected in a survey of conservation needs or similar needs 
assessment?
    (iii) What are the applicant's plans to use and maintain the 
anticipated results or benefits of the project after the expiration of 
Federal support?
    (iv) Does the applicant plan to devote adequate financial and other 
resources to the project without inhibiting its ongoing activities?
    (2) The following technical criteria apply to the evaluation and 
review of applications for conservation grants:
    (i) What is the nature of the proposed project with respect to 
project design and management plan?
    (ii) To what extent does the application exhibit knowledge of the 
technical area to which the conservation project relates and employ the 
most promising or appropriate methods or techniques of conservation? To 
what extent is the conservation project likely to use, develop or 
demonstrate improved, more efficient, or more economic methods of 
conservation?
    (iii) Does the project have an adequate budget to achieve its 
purpose? Is the budget reasonable and adequate in relation to the 
objectives of the project?
    (iv) What are the qualifications of the personnel the applicant 
plans to use on the project and the proposed time that each such person 
is obligated to commit to the project?
    (j) Duration of grant. IMS makes a conservation grant under this 
section for a period of not to exceed two years.
    (k) Grant condition. An applicant which has received a grant in a 
prior fiscal year under the IMS conservation grant program may not 
receive a grant in a subsequent fiscal year under this section until 
required reports have been submitted regarding the performance of the 
previous grant.
    (l) Allowable and unallowable costs. (1) Section 1180.10 of the IMS 
regulations, which applies to conservation grants, sets forth the rules 
applicable to determining the allowability of costs under IMS grants and 
refers readers to the OMB circulars containing applicable cost 
principles which govern Federal grants generally.
    (2) In general such costs as compensation for personal services, 
costs of materials and supplies, rental costs, and other administrative 
costs specifically related to a conservation project are allowable under 
a conservation grant in accordance with applicable cost principles.
    (3) Costs of alterations, repairs and restoration to an existing 
facility are allowable when they are related to a conservation project 
under a conservation grant in accordance with applicable cost 
principles.
    (4) Costs of equipment are generally allowable if related to a 
conservation project but do require the specific approval of the 
Director as indicated in the grant award document.
    (5) A grantee may award a stipend to an individual for training in 
connection with a conservation project. Stipends and allowances may be 
paid at rates and under conditions established by the Director 
consistent with policies of other agencies in the Foundation or other 
agencies or instrumentalities of the United States providing comparable 
assistance with respect to conservation.
    (6) Costs of new construction are unallowable. For example, a museum 
may not a use a conservation grant to construct a new building or an 
addition to an existing building to improve the environment in which its 
collections are housed.

[50 FR 27585, July 5, 1985, as amended at 51 FR 43353, Dec. 2, 1986; 56 
FR 10178, Mar. 11, 1991; 57 FR 36905, Aug. 17, 1992; 60 FR 63964, Dec. 
13, 1995]

[[Page 556]]



     Subpart B--General Application, Selection and Award Procedures 
                              Applications

                              Applications



Sec. 1180.30  Publication of an application notice; content of the notice.

    Each fiscal year the Director publishes application notices in the 
Federal Register that explain what kind of assistance is available that 
fiscal year under the Act.



Sec. 1180.31  Information in the application notice.

    (a) The application notice usually includes:
    (1) How an applicant can get an application packet containing 
detailed information about the program including an application form;
    (2) Where an applicant must send its application;
    (3) The amount of funds available for grants;
    (4) The approximate number of grants the Institute expects to make 
under the program;
    (5) The expected cap on grant(s) that may be applied for;
    (6) Any priorities established by the Institute for that year;
    (7) A reference to the applicable regulations.
    (b) [Reserved]



Sec. 1180.32  Deadline date for applications.

    (a) The application notice sets deadline date for applications to be 
postmarked or hand delivered to the Institute. The applicant shall:
    (1) Mail the application to the address specified in the application 
notice on or before the deadline date; or
    (2) Hand deliver the application to the address specified in the 
application notice by 4:30 p.m. (Washington, DC time) on deadline date.
    (b) An applicant must be prepared to show one of the following as 
proof of timely mailing:
    (1) A legibly dated U.S. Postal Service postmark.
    (2) A legible mail receipt with the date of mailing stamped by the 
U.S. Postal Service.
    (3) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    (4) Any other dated proof of mailing acceptable to the Director.
    (c) If an application is mailed through the U.S. Postal Service, the 
Director does not accept either of the following as proof of mailing:
    (1) A private metered postmark.
    (2) A mail receipt that is not date cancelled by the U.S. Postal 
Service.



Sec. 1180.33  Applicants must meet procedural rules.

    The Director is authorized to make a grant only to an eligible 
applicant that submits a complete application, including attachments, on 
or before the deadline.



Sec. 1180.34  Number of copies.

    Each applicant shall submit an original and four copies of its 
application to the Institute.



Sec. 1180.35  Group applications.

    (a) Eligible museums may apply as a group for a project grant.
    (b) If a group of museums applies for a grant, the members of the 
group shall either:
    (1) Designate one member of the group to apply for the grant; or
    (2) Establish a separate, eligible legal entity, consisting solely 
of the museum group, to apply for the grant.
    (c) The members of the group, or entity, shall enter into an 
agreement that:
    (1) Details the activities that each member of the group plans to 
perform; and
    (2) Binds each member of the group to every statement and assurance 
made by the applicant in the application.
    (d) The applicant shall submit the agreement together with its 
application.
    (e) If the Director makes a grant to a group of eligible museums, 
the applicant for the group is the grantee and is legally responsible 
for:
    (1) The use of all grant funds; and
    (2) Ensuring that the project is carried out by the group in 
accordance with applicable Federal laws, regulations, and requirements.
    (f) Each member of the group is legally responsible for:

[[Page 557]]

    (1) Carrying out the activities it agrees to perform; and
    (2) Using the funds it receives under the agreement in accordance 
with applicable Federal laws, regulations, and requirements.

[48 FR 27728, June 17, 1983, as amended at 60 FR 63964, Dec. 13, 1995]

                     Selection and Award Procedures



Sec. 1180.36  Rejection of an application.

    (a) The Director rejects an application if:
    (1) The applicant is not eligible;
    (2) The applicant fails to comply with procedural rules that govern 
the submission of the application;
    (3) The application does not contain the information required;
    (4) The application cannot be funded under the authorizing statute 
or implementing regulations.
    (b) If the Director rejects an application under this section, the 
Director informs the applicant and explains why the application was 
rejected.



Sec. 1180.37  Rejection for technical deficiency--appeal; reconsideration; waiver.

    (a) An applicant whose application is rejected because of technical 
deficiency may appeal such rejection in writing to the Director within 
10 days of postmark of notice of rejection.
    (b) If an application was rejected because material did not 
accompany the application, the Director shall reconsider the application 
upon receipt of material in a timely manner.
    (c) As has always been the practice of IMS, the Director waives the 
requirement in these regulations of certain records under circumstances 
which would require such waivers where the regulations specifically 
provide for waiver. (See Sec. 1180.51(b) (Pub. L. 97-394))



Sec. 1180.38  How grants are processed.

    (a)(1) The Director may use one or more groups of experts or readers 
to evaluate eligible applications.
    (2) Each group consists of three or more qualified persons.
    (3) In each group there must be at least one person who is not an 
employee of the Federal Government.
    (4) A person may not serve as a member of a group of experts or 
readers if the person is an employee of the Institute who is regularly 
involved in grants processing; however, the Director may sign a waiver 
for such person and that person may serve as a member of a group of 
experts or readers.
    (b) When the director uses a group of experts or readers, the group 
of experts or readers uses the applicable evaluation criteria set forth 
in the Regulations to evaluate each application.
    (c) After the groups of experts or readers have evaluated the 
applications, a rank ordering of the application is prepared. The rank 
ordering of the eligible applications is based solely on the evaluations 
of the applications by the groups of experts.
    (d) Subject to Sec. 1180.12, the Director, in consultation with the 
Board, then determines the order in which applications will be selected. 
The Director makes these determinations on the basis of the evaluation 
criteria and any priorities or other program requirements that have been 
published in the Federal Register. The Director may consider the 
following in making these determinations:
    (1) The application.
    (2) The rank ordering of the applications.
    (3) Any other information relevant to applicable criteria, 
priorities, or any other applicable information or requirements. (Cross 
reference. See Sec. 1180.12)



Sec. 1180.39  Applications not selected for funding.

    If an application is not selected for funding, the Director informs 
the applicant.
Sec. 1180.40  [Reserved]



Sec. 1180.41  The cost analysis; basis for grant amount.

    Before the Director sets the amount of a grant, a cost analysis of 
the project is made which involves an examination of:
    (a) The cost data in the detailed budget for the project;
    (b) Specific elements of cost; and

[[Page 558]]

    (c) The necessity, reasonableness, and allowability under applicable 
statutes and regulations.

[60 FR 63964, Dec. 13, 1995]



Sec. 1180.42  The notification of grant award.

    (a) The Director furnishes a notification of grant award to the 
grantee.
    (b) The notification of grant award sets the amount of the grant and 
gives other information about the grant.



Sec. 1180.43  Effect of the grant.

    The grant obligates both the Federal Government and the grantee to 
all of the requirements, regulations and statutes that apply to the 
grant.



      Subpart C--General Conditions Which Must Be Met by a Grantee

                            Nondiscrimination



Sec. 1180.44  Federal statutes and regulations on nondiscrimination.

    (a) Each grantee shall comply with the following statutes:

------------------------------------------------------------------------
                  Subject                              Statute          
------------------------------------------------------------------------
Discrimination on the basis of race, color  Title VI of the Civil Rights
 or national origin.                         Act of 1964 (42 U.S.C.     
                                             2000d through 2000d-4)     
Discrimination on the basis of sex........  Title IX of the Education   
                                             Amendments of 1972 (20     
                                             U.S.C. 1681-1683).         
Discrimination on the basis of handicap...  Section 504 of the          
                                             Rehabilitation Act of 1973 
                                             (29 U.S.C. 794).           
Discrimination on the basis of age........  The Age Discrimination Act  
                                             (420 U.S.C. 8101 et. seq). 
------------------------------------------------------------------------

    (b)-(c) [reserved]
    (d) Regulations under section 504 of the Rehabilitation Act of 1973. 
The Institute applies the regulations in 45 CFR part 1170, issued by the 
National Endowment for the Humanities and relating to nondiscrimination 
on the basis of handicap in federally assisted programs and activities, 
in determining the compliance of museums with section 504 of the 
Rehabilitation Act of 1973 as it applies to recipients of Federal 
financial assistance from the Institute. These regulations apply to each 
program or activity that receives such assistance. In applying these 
regulations, references to the Endowment of the agency shall be deemed 
to be references to the Institute and references to the Chairman shall 
be deemed to be references to the Director.

[55 FR 51104, Dec. 12, 1990]



Sec. 1180.45  Use of consultants in Special Projects.

    (a) Subject to Federal statutes and regulations, a grantee shall 
adhere to its general policies and practices when it hires, uses, and 
pays a consultant as part of the staff.
    (b) The grantee may not use its grant to pay a consultant unless:
    (1) There is a need in the project for the services of that 
consultant; and
    (2) The grantee cannot meet that need through using an employee 
rather than a consultant.

[48 FR 27728, June 17, 1983, as amended at 60 FR 63964, Dec. 13, 1995]

                               Evaluation



Sec. 1180.46  Evaluation by the grantee.

    A grantee shall evaluate at least semi-annually:
    (a) The grantee's progress in achieving the objectives set forth in 
its approved application: and
    (b) The contribution of the grant toward meeting the purposes of the 
Act.



Sec. 1180.47  Federal evaluation--cooperation by a grantee.

    A grantee shall cooperate in any evaluation by the Director of the 
particular grant program in which grantee has participated.

                       Publications and Copyrights



Sec. 1180.48  General conditions on publications.

    (a) Content of materials. Subject to any specific requirements that 
apply to its grant, a grantee may decide the format and content of 
materials that it publishes or arranges to have published.
    (b) Required Statement. The grantee shall ensure that any 
publication that contains materials also contains the following 
statement:

    The contents of this (insert type of publication, e.g., book, 
report, film) were developed in whole or in part under a grant from the 
Institute of Museum Services. However, the contents do not necessarily 
represent the policy of the Institute, and endorsement by

[[Page 559]]

the Federal Government should not be assumed.

[60 FR 63964, Dec. 13, 1995]



Sec. 1180.49  Copyright policy for grantees.

    A grantee may copyright materials in accordance with government-wide 
policy applicable to copyright of publications developed under Federal 
grants.

[60 FR 63964, Dec. 13, 1995]



Sec. 1180.50  Definition of ``materials.''

    As used in Secs. 1180.48 through 1180.49, materials means a 
copyrightable work developed in whole or in part with funds from a grant 
from the Institute.

[60 FR 63964, Dec. 13, 1995]

                 General Administrative Responsibilities



Sec. 1180.51  Compliance with statutes, regulations, and its approved grant application.

    (a) A grantee shall comply with applicable statutes, regulations, 
and the approved grant application, and shall use Federal funds in 
accordance therewith.
    (b) No official, agent, or employee of the Institute may waive any 
regulation unless the regulation specifically provides for waiver.
    (c) No act or failure to act by an official, agent, or employee of 
the Institute can affect the authority of the Director to enforce 
regulations.
    (d) In any circumstance for which waiver is provided, the 
determination of the Director shall be final.



Sec. 1180.52  The grantee administers or supervises the grant.

    A grantee shall directly administer or supervise the administration 
of the grant and be answerable therefor.



Sec. 1180.53  Fiscal control and fund accounting procedures.

    A grantee shall exert fiscal control and employ fund accounting 
procedures that ensure proper disbursement of and accounting for Federal 
funds in accordance with OMB circulars A-102 and A-110.



Sec. 1180.54  Obligation of funds during the grant period.

    A grantee may use grant funds for obligations it makes only during 
the grant period.



Sec. 1180.55  Prohibition of subgrants.

    (a) A grantee may not make a subgrant.
    (b) A grantee may contract for supplies, equipment, and services 
subject to Sec. 1180.45(a).

                                 Records



Sec. 1180.56  Records related to grant funds.

    A grantee shall, in accordance with OMB circular A-102 and A-110, 
keep records that show accurately and in full:
    (a) The amount of funds awarded under the grant;
    (b) The exact uses of the funds;
    (c) The total amount expended under the grant;
    (d) The amount expended under the grant during the grant period 
provided from non-Federal sources; and
    (e) Other records necessary to facilitate an effective audit.



Sec. 1180.57  Records related to compliance.

    A grantee shall, in accordance with OMB circulars A-102 and A-110, 
keep accurate and full records to show its compliance with specific 
requirements set forth in the regulations and published notices, or 
contained in the grant award documents.



Sec. 1180.58  Records related to performance.

    (a) A grantee shall keep records revealing progress and results 
under the grant.
    (b) The grantee shall use the records under paragraph (a) of this 
section to:
    (1) Determine progress in accomplishing objectives; and
    (2) Revise those objectives, if necessary and authorized under the 
grant.

[60 FR 63965, Dec. 13, 1995]



Sec. 1180.59  Applicability.

    Subparts B and C (Secs. 1180.30 through 1180.58) apply to General 
Operating

[[Page 560]]

Support assistance, except as otherwise provided in these regulations.

[60 FR 63965, Dec. 13, 1995]



                      Subpart D--Museum Assessment

    Source: 50 FR 27588, July 5, 1985, unless otherwise noted.



Sec. 1180.70  Purpose of program.

    The Director of the Institute of Museum Services makes grants under 
this subpart to assist museums in carrying out institutional 
assessments. The grants enable museums to obtain technical assistance in 
order to evaluate their programs and operations by generally accepted 
professional standards. The Director may make grants for separate 
categories of assessment activities and establish conditions for receipt 
of assistance for such separate categories. Such categories may include 
assessment activities relating to--
    (a) General operations;
    (b) Collections;
    (c) Museum security, and
    (d) Other aspects of museum services, as specified by the Board.

[51 FR 43354, Dec. 2, 1986]



Sec. 1180.71  Eligibility.

    (a) A museum as defined in Sec. 1180.3 may apply for assessment 
assistance under this subpart.
    (b) A museum which receives a grant for assessment assistance under 
this subpart for a fiscal year may not receive another grant for the 
same category of assessment assistance in the same or a subsequent 
fiscal year.



Sec. 1180.72  Allowable costs.

    A museum may use a grant under this subpart for expenses of 
institutional assessment, such as registration fees, surveyor 
honorariums, travel and other expense of a surveyor, and technical 
assistance materials.



Sec. 1180.73  Form of assistance; limitation on amount.

    (a) The Director makes payments to a museum under this subpart in 
advance.
    (b) The amount of a grant to a museum under this subpart will be 
determined by the Director, in accordance with the policy direction of 
the Board regarding the maximum amount of a grant to be awarded for the 
various categories of assistance under this subpart and in consultation 
with the appropriate professional organization arranging for the 
assessment in question.

[50 FR 27588, July 5, 1985, as amended at 55 FR 10461, Mar. 21, 1990]



Sec. 1180.74  Conditions of participation.

    The Director considers an application by a museum on a form supplied 
by IMS for a grant under this subpart for assessment assistance only if:
    (a) The museum requests assessment from an appropriate professional 
organization as defined in this section, and
    (b) That organization notifies IMS that the request for the 
assessment assistance is complete and that the museum is eligible to 
participate. An appropriate professional organization for purposes of 
this subpart means: (1) The American Association of Museums or (2) other 
professional organizations that are determined to be capable of 
arranging for a program of assessment services for a category of museums 
and are so designated by notice published in the Federal Register.



Sec. 1180.75  Funding and award procedures.

    (a) The Director approves applications meeting the requirements of 
this subpart on first-come, first-served basis, in the order in which it 
is determined by IMS that such requirements (including all application 
requirements) have been met.
    (b) There are no selection criteria.
    (c) Section 1180.16 (IMS share of the cost of a proposal) does not 
apply to grants under this subpart.
    (d) A museum receiving assistance under this subpart must submit a 
final financial and narrative report that evaluates the success of the 
assessment and actions taken by the museum as a result of the 
assessment. IMS may request that the report be submitted up to 12 months 
after the close of the grant period.
    (e)(1) Except as provided in Sec. 1180.71 and paragraph (e)(2) of 
this section subparts A, B, and C of part 1180 of title 45 CFR do not 
apply to the Museum Assessment Program.

[[Page 561]]

    (2) The following sections do apply to the Museum Assessment 
Program: Sections 1180.5(a); 1180.5(c); 1180.5(d); 1180.5(e); 1180.15; 
1180.44; 1180.47; and 1180.51-1180.57.

[50 FR 27588, July 5, 1985, as amended at 60 FR 63965, Dec. 13, 1995]



Sec. 1180.76  Responsibility of a museum.

    Except in unusual circumstances, a museum which receives a grant 
under this subpart must take the steps normally expected of it to 
complete the assessment process for which it has received assistance. 
Section 1180.13(i) (a criterion for evaluation of general operating 
support applications) applies to the use of funds under this subpart.



       Subpart E--Assistance To Professional Museum Organizations



Sec. 1180.77  Contracts and cooperative agreements with professional museum organizations.

    (a) Scope. The guidelines and standards in this section apply to all 
aspects of the Institute's program to provide financial assistance, 
through contracts and cooperative agreements, to professional museum 
organizations for the carrying out of certain projects pursuant to 
section 206(b) of the Act.
    (b) Definitions. For the purposes of this subpart, the term 
professional museum organization means a private, non-profit 
professional museum services-related organization, institution, or 
association which engages in activities designed to advance the well-
being of museums eligible for assistance under this part and the museum 
profession through such activities as technical assistance, 
dissemination of information, professional development activities, and 
professional services.
    (c) Applicability of other regulations. The following IMS 
regulations apply to assistance under this subpart:
    (1) Section 1180.3; Sec. 1180.4; and Sec. 1180.5(e) of subpart A and
    (2) Sections 1180.30-1180.33 and Secs. 1180.36-1180.39 of subpart B; 
and
    (3) Section 1180.44, Sec. 1180.46 and Secs. 1180.51-1180.59 of 
subpart C.
    (d) Applicants. (1) A professional museum organization may apply for 
assistance through a contract or cooperative agreement under this 
subpart.
    (2) A professional museum organization that serves museums or museum 
professionals at the national, regional, state, or local level may 
apply.
    (3) An entity eligible for assistance under other subparts of this 
part 1180 may not apply.
    (e) Types of projects. The Institute considers applications under 
this subpart to carry out projects designed to strengthen museum 
services such as:
    (1) Programs to educate professionals in improved or innovative 
standards of museum operations or other matters relating to museum 
management;
    (2) Research or surveys to determine effective and innovative 
methods to provide museum services or conduct operations;
    (3) Projects to investigate the feasibility of cooperative methods 
for the carrying out by museums of management, storage, and information 
gathering and sharing, or other museum functions; or
    (4) Research projects to help museums and museum associations serve 
their publics more effectively.
    (f) Limitation. No financial assistance may be provided under this 
subpart to pay for the operational expenses of any professional museum 
organization.
    (g) Amount of contract or cooperative agreement. The amount of 
contracts or cooperative agreements shall be subject to the availability 
of appropriations. Guidance on probable award ranges will be provided 
with application materials each year.
    (h) Matching. A contract or cooperative agreement under this subpart 
for any fiscal year may not normally exceed 50 per centum of the cost of 
the project for which the contract or cooperative agreement is made. In 
exceptional circumstances applicable to a particular applicant, the 
Director, upon consultation with the Board, may waive this requirement 
pursuant to section 206(c) of the Act.
    (i) Application requirements. (1) An applicant under this subpart 
must submit an application in such time and such manner, and containing 
such information, as requested by the Institute.
    (2) An applicant must submit with its application its financial 
statements for the two most recent fiscal years for

[[Page 562]]

which information is available. For applications requesting in excess of 
$20,000, the Institute requests that one of those statements be audited.
    (j) Procedures for review of applications. To evaluate applications 
and determine the amount of their awards, the Institute rates 
competitive applications under the applicable criteria stated in 
paragraph (k) of this section. Normally, these applications are 
evaluated by field reviewers, panels of experts, or both. The Director 
may also use technical experts in the review of applications. Final 
determinations as to the award of contracts or cooperative agreements 
are made by the Director after consultation with the Board with respect 
to policy matters.
    (k) Criteria. This paragraph sets forth the criteria that the 
Institute uses in evaluating and reviewing applications for contracts or 
cooperative agreements under this subpart. Panelists and field reviewers 
are instructed to use only these criteria in the evaluation and review 
of these applications:
    (1) To what extent is the project likely to strengthen museum 
services?
    (2) To what extent does the project hold promise of exploring or 
developing effective and innovative solutions to problems affecting the 
provision of museum services or operations?
    (3) Has the need for the project been adequately documented?
    (4) What is the quality of the project design?
    (5) Does the project have an adequate budget to achieve its purpose?
    (6) What are the qualifications of the personnel the applicant plans 
to utilize in the project?
    (7) What are the anticipated long-term benefits of the project?
    (l) Limitation on number of applications. An applicant may submit 
only one application with respect to each deadline.

[53 FR 31338, Aug. 18, 1988, as amended at 56 FR 10178, Mar. 11, 1991]



Sec. 1180.78   Technical training and implementation grants to museums.

    (a) Purpose of program. The Director of the Institute of Museum 
Services makes two-part grants under this subpart to assist those who 
work in museums (paid or volunteer) to obtain training in technical 
areas of museum operations and to implement the training to improve 
museum services to the public.
    (b) Eligibility. (1) To be eligible to apply for a grant under this 
subpart, a museum must:
    (i) Be a public or private nonprofit institution that is organized 
on a permanent basis for essentially educational or aesthetic purposes; 
and
    (ii) Care for, and own or use tangible objects, whether animate or 
inanimate, and exhibit these objects to the public on a regular basis 
through facilities which it owns or operates, and
    (iii) Have at least one staff member, whether paid or unpaid, full-
time or part-time, whose primary responsibility is the acquisition, care 
or exhibition to the public of objects owned or used by the museum; and
    (iv) Be open and providing museum services to the general public on 
a regular basis; and
    (v) Be located in one of the fifty States of the Union, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the 
Virgin Islands, the Northern Mariana Islands, or Palau (until its 
compact of free association is approved.)
    (2) A museum must have an operating budget for the fiscal year 
immediately preceding the deadline to which the museum applies of no 
more than $250,000 exclusive of non-cash support.
    (3) Museum includes (but is not limited to) the following 
institutions if they satisfy the provisions of this section:
    (i) Aquariums and zoological parks;
    (ii) Botanical gardens and arboretums;
    (iii) Nature centers;
    (iv) Museums relating to art, history (including historic buildings 
and sites);
    (v) Natural history, science and technology, planetariums, and 
specialized subject.
    (4) A museum that receives a grant for training and implementation 
under this subpart for a fiscal year may not receive another grant under 
this subpart for the same or subsequent fiscal years.
    (5) Preference for funding will be given to a museum that has not 
received any grants from the Institute

[[Page 563]]

within two years of the deadline to which it applies over funding for a 
museum that has received a grant from the Institute within two years of 
application.
    (c) Applicability of other regulations. The following sections in 
part 1180 do apply to grants for training and implementation under this 
subpart: Sections 1180.3(d), 1180.4, 1180.5(c)-(e), 1180.6, 1180.10, 
1180.11(a)-(b), 1180.16(b), 1180.30-34, 1180.36-37, 1180.39, 1180.42-44, 
1180.47-48, 1180.51-57, part 1183, part 1185.
    (d) Application requirements. (1) An applicant under this subpart 
must submit an application in such time and such manner, and containing 
such information, as requested by the Institute.
    (2) An applicant must submit with its application financial 
information for its most recently completed fiscal year for which 
satisfactory information is available and projected financial 
information for the fiscal year(s) that includes the time of the grant 
period.
    (e) Procedures and criteria for review of applications. (1) To 
evaluate applications and determine the amount of their awards, the 
Institute rates competitive applications under the criteria stated in 
paragraph (e)(2) of this section. Normally, these applications are 
evaluated by field reviewers, panels of experts, or both. The director 
may also use technical experts in the review of applications.
    (2) This paragraph sets forth the criteria the Institute uses in 
evaluating and reviewing applications for technical training and 
implementation grants under this subpart. Evaluators are instructed to 
use only these criteria in the evaluation of these applications.
    (i) Does the museum demonstrate its importance to the community it 
serves?
    (ii) Is the type of training requested appropriate to the purpose or 
mission of the museum?
    (iii) Are the costs requested to obtain the training reasonable and 
necessary?
    (iv) Is the training needed at the museum?
    (v) Is the staff member(s) (paid or volunteer) identified to receive 
the training the appropriate person(s) within the museum's 
organizational structure?
    (vi) Does the individual(s) identified for training demonstrate at 
least a two-year commitment to the museum field?
    (vii) Does the museum demonstrate a commitment to implement the 
training?
    (f) Allowable costs. (1) A museum may use a grant under this subpart 
for expenses to obtain training in areas of museum operations and for 
activities to implement the training.
    (2) Funds may be used to pay for registration or tuition fees for 
training courses or workshops. Individual(s) may use the grant funds to 
pay for a course that is part of a degree-granting program only for non-
credit such as to audit the course.) Funds are generally not intended to 
support attendance at association annual meetings unless a specific 
training session or workshop is part of the meeting (or as a pre or post 
conference activity). A course of study that is identified by clearly 
and specifically named sessions that are part of an annual meeting 
program and that clearly and specifically address the area of training 
need will be considered.
    (3) Funds may be used for travel to and from training activities and 
expenses incurred during travel, such as housing and meals.
    (4) Funds may be used to purchase instructional materials.
    (5) Funds may not be used to pay the salary of the person(s) 
receiving the training. The time the staff member(s) expends to obtain 
the training and to implement the training is considered a matching, in-
kind contribution to the grant activities.
    (6) Funds may not be used for consulting fees. (In special cases 
where training is not available otherwise, the Institute may consider an 
individually designed training agenda that includes the use of a 
consultant clearly serving as a trainer to the applicant in specific 
areas of museum operations.)
    (7) Funds may be used to purchase supplies, materials, and equipment 
for areas of museum operations for which training was received.
    (8) Funds may support additional travel as needed to implement 
training (eg. travel to libraries, archives, etc. to document 
collections).

[[Page 564]]

    (g) Conditions of participation. Following the completion of the 
training activity the museum must submit an implementation plan to the 
Institute for review before implementation funds are released. The 
implementation plan must indicate the time frame for implementation 
activities, the personnel involved, the activities to be completed, 
where the activities will take place, and the costs for implementing the 
plan.
    (h) Form of assistance: Limitation of amount. (1) The Director makes 
payments to a museum under this subpart in advance.
    (2) The amount of the grant to a museum will be determined by the 
Director, in accordance with the policy direction of the Board, 
regarding the maximum amount available for each part of the grant. The 
amount of the grant will be subject to the availability of funds.
    (i) Reporting requirements. The museum receiving a grant for 
training and implementation under this subpart must submit a final 
financial and narrative report that evaluates the success of the 
applicant in meeting the stated goals and any plans to continue 
activities in the area of training.
    (j) Limitation on number of applications. A museum may submit only 
one application for each deadline.
    (k) Duration of grant. (1) Grants made under this subpart generally 
permit the grantee to use the funds for a period of up to 24 months from 
the start of the grant period. The grantee may use grant funds during 
the period specified in the grant document unless the grant is suspended 
or terminated.
    (2) If the grantee needs additional time to complete the grant, the 
grantee may apply for an extension of the grant period without 
additional funds. The Director may approve this extension at his or her 
discretion.

[59 FR 15344, Apr. 1, 1994]



                          Subpart F--[Reserved]



        Subpart G--Meetings of the National Museum Services Board

                                 General

    Authority: Museum Services Act (20 U.S.C. 961-68), as amended, and 
Pub. L. 97-100, 95 Stat. 1414; Pub. L. 97-394, 96 Stat. 1994; 5 U.S.C. 
552b.

    Source: 49 FR 3184, Jan. 26, 1984, unless otherwise noted.



Sec. 1180.80  Scope.

    5 U.S.C. 552b, added to the United States Code by the Government in 
the Sunshine Act, Public Law 94-409 (1976), provides that collegial 
bodies which head Federal agencies must, with certain exceptions, hold 
their meetings in public. Section 552b applies to meetings of the 
National Museum Services Board (``NMSB''). The regulations in this 
document (subpart G of part 1180, title 45 CFR) set forth procedures for 
the conduct of meetings of the NMSB in accordance with Section 552b.



Sec. 1180.81  General rule.

    Unless properly closed under Sec. 1180.88, every portion of every 
meeting of the NMSB is open to public observation. For the purposes of 
this document a meeting means the deliberations of at least the number 
of members of the NMSB required to take action on behalf of the NMSB, 
where these deliberations determine, or result in the joint conduct or 
disposition of official IMS business. (A meeting does not include 
deliberations required or permitted by subsection (d) or (e) of section 
552b.)



Sec. 1180.82  Application to NMSB committees.

    This document applies to committees of the NMSB when they are 
authorized to make final policy decisions on the NMSB's behalf. This 
document does not apply to committees or informal working groups of the 
NMSB which are authorized to make recommendations

[[Page 565]]

or reports to the NMSB or to perform technical or ministerial functions 
on its behalf.



Sec. 1180.83  Record vote.

    (a) Certain action of the NMSB with regard to meetings under these 
regulations may be taken only by ``record vote.'' For purposes of this 
document, a vote of the NMSB is a record vote if--
    (1) It carries by a majority of all those holding offices as NMSB 
members at the time of the vote;
    (2) No proxies are counted toward the necessary majority; and
    (3) The individual vote of each member voting is recorded.
    (b) Within one day of a record vote to close, or withhold 
information about a meeting, or any record vote for this purpose that 
does not achieve the necessary majority, the NMSB makes available to the 
public a written record showing the vote of each member.
    (c) The NMSB may take a vote with respect to matters governed by 
this part (without convening) by means of circulation of a written 
ballot, tally sheet, or other notation procedures.

                        Announcement of Meetings



Sec. 1180.84  Public announcement of meetings.

    (a) Except as stated in paragraphs (b) and (c) this section, the 
NMSB makes a public announcement of each meeting at least one week 
before the meeting. The announcement covers:
    (1) The time, place, and subject matter of the meeting;
    (2) What portions of the meeting, if any, are to be closed to the 
public; and
    (3) The name and phone number of the official designated to respond 
to requests for information on the meeting.
    (b) The announcement may be made less than a week before the meeting 
it announces or after the meeting only if--
    (1) The NMSB by record vote determines that agency business requires 
the meeting to be called on such short or after-the-fact notice and (2) 
a public announcement is made at the earliest practicable time.
    (c) All or any portion of the announcement of any meeting may be 
omitted if the NMSB by record vote determines that the announcement 
would disclose information which should be withheld under the same 
standards as apply for closing meetings under Sec. 1180.88.



Sec. 1180.85  Changes in time or place of meeting.

    The time or place of a meeting of the NMSB that has been publicly 
announced as provided in Sec. 1180.84 may subsequently be changed. 
However, the change must be publicly announced at the earliest 
practicable time.



Sec. 1180.86  Changes in subject matter of meeting.

    The subject matter of any portion of any meeting of the NMSB that 
has been publicly announced as provided in Sec. 1180.84 (or the 
determination whether any portion of any meeting so publicly announced 
will be open or closed) may subsequently be changed if--
    (a) The NMSB determines by record vote that agency business so 
requires and that no earlier announcement of change was possible; and
    (b) The NMSB publicly announces the change and the vote of each 
member on the change at the earliest practicable time. (Deletion or 
postponement of agenda items are not subject to the requirements of this 
section.)



Sec. 1180.87  Publication of announcements.

    Promptly following a public announcement required by these 
regulations, the NMSB submits, for publication in the Federal Register, 
a notice containing information regarding the announcement as required 
by section 552b.

                             Closed Meetings



Sec. 1180.88  Reasons and procedures for closing meetings.

    (a) The NMSB may, by record vote in accordance with section 552b, 
close any portion of a meeting if it determines that the portion falls 
within one of the exceptions stated in 5 U.S.C. section 552(c). (These 
exceptions are listed in Appendix A.)
    (b) In making a determination under paragraph (a) of this section, 
the

[[Page 566]]

NMSB considers whether the public interest merits keeping the meeting 
open although an exception applies.
    (c) The Board addresses requests for the certification required by 
section 552b to the individual responsible for providing legal services 
to the Institute with respect to section 552b.
    (d) Within one day of a record vote closing a portion of a NMSB 
meeting, the NMSB makes available a full written explanation of the 
NMSB's action and a list of all persons it expects to attend the meeting 
and their affiliations.



Sec. 1180.89  Requests to close meetings.

    A person who believes his or her interests may be directly affected 
by a meeting or a portion of a meeting may request the NMSB to close it 
to the public for a reason cited in paragraphs (5), (6), or (7) of 
Appendix A. Such requests are handled under procedures established by 
the NMSB in accordance with section 552b. This information collection 
has been assigned OMB No. 3137-0005.



Sec. 1180.90  Materials related to closed portions of meetings.

    If a portion or portions of any meeting of the NMSB are closed to 
the public--
    (a) The presiding officer of the meeting (usually the Chairman of 
the NMSB) furnishes a statement setting forth the time and place of the 
meeting and the persons present (including staff).
    (b) Except where the Act authorizes minutes to be kept, the NMSB 
makes a complete transcript or electronic recording adequate to record 
fully the proceedings of each portion of the meeting that is closed to 
the public.
    (c) The NMSB maintains the presiding officer's statement, the 
certificate described in Sec. 1180.88(c) as required by section 552b, 
and the transcript, recording, or minutes of the meeting for at least 
two years after the meeting and at least one year after the NMSB 
completes consideration of any proposal, report, resolution, or similar 
matter discussed in any closed portion of the meeting.



Sec. 1180.91  Opening of transcript or recording of closed meeting.

    (a) Except as stated in paragraph (b) of this section, the NMSB 
makes available for inspection the transcript, electronic recording or 
minutes of every portion of a very closed meeting on request tm any 
member of the public. The transcript or recording is made available in 
an easily accessible place. The NMSB furnishes to any member of the 
public on request copies of the transcript (or of a transcription of the 
recording) disclosing the identity of each speaker. The NMSB charges for 
the copies or transcriptions no more than the actual cost of duplication 
or transcription.
    (b) The NMSB withholds the transcripts or recording of the 
discussion of any agenda item if the Chairman of the NMSB (or a NMSB 
member designated by the Chairman) determines that the discussion 
contains information which should be withheld under the same standards 
which apply for closing meetings under Sec. 1180.88. The NMSB releases 
the transcript or recording so withheld when the Chairman (or the 
Chairman's designee) determines that the grounds for withholding no 
longer apply.

                         Appendix A to Part 1180

    A meeting may be closed if:
    (1) It is likely to disclose matters that (1) are specifically 
authorized under criteria established by Executive Order to be kept 
secret in the interest of national defense or foreign policy and (ii) 
are in fact properly classified pursuant to the Executive Order;
    (2) It is likely to relate solely to the internal personnel rules 
and practices of the IMS or another Federal agency;
    (3) It is likely to disclose matters specifically exempted from 
disclosure by statute (other than 5 U.S.C. 552): Provided, That the 
statute (i) requires that the matter be withheld from the public in such 
a manner as to leave no discretion on the issue, or (ii) establishes 
particular criteria for withholding or refers to particular types of 
matters to be withheld;
    (4) It is likely to disclose trade secrets and commercial or 
financial information obtained from the person and privileged or 
confidential;
    (5) It is likely to involve accusing any person of a crime, or 
formally censuring any person;
    (6) It is likely to disclose personal information where the 
disclosure would constitute a

[[Page 567]]

clearly unwarranted invasion of personal privacy;
    (7) It is likely to disclose investigatory law-enforcement records, 
or information which, if written, would be contained in such records, 
but only to the extent provided in 5 U.S.C. 552b(7);
    (8) It is likely to disclose information contained in or related to 
examination, operating, or condition reports prepared by, on behalf of, 
or for the use of an agency responsible for the regulation or 
supervision of financial institutions;
    (9) It is likely to disclose information, the premature disclosure 
of which (i) in the case of information received from an agency which 
regulates currencies, securities, commodities, or financial 
institutions, be likely to (A) lead to significant financial speculation 
in currencies, securities, or commodities, or (B) significantly endanger 
the stability of any financial institution: or (ii) be likely to 
significantly frustrate implementation of a proposed IMS action unless 
the IMS has already disclosed to the public the content or nature of its 
proposed action or is required by law to make such disclosure on its own 
initiative before taking final action; or
    (10) Is likely to specifically concern the IMS participation in a 
civil action or proceeding, or action in a foreign court or 
international tribunal, or an arbitration.



PART 1181--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE INSTITUTE OF MUSEUM SERVICES--Table of Contents




Sec.
1181.101  Purpose.
1181.102  Application.
1181.103  Definitions.
1181.104--1181.109  [Reserved]
1181.110  Self-evaluation.
1181.111  Notice.
1181.112--1181.129  [Reserved]
1181.130  General prohibitions against discrimination.
1181.131--1181.139  [Reserved]
1181.140  Employment.
1181.141--1181.148  [Reserved]
1181.149  Program accessibility: Discrimination prohibited.
1181.150  Program accessibility: Existing facilities.
1181.151  Program accessibility: New construction and alterations.
1181.152--1175.159  [Reserved]
1181.160  Communications.
1181.161--1181.169  [Reserved]
1181.170  Compliance procedures.
1181.171--1181.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 4578 and 4579, Feb. 5, 1986, unless otherwise noted.



Sec. 1181.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978, which amended section 504 of the Rehabilitation Act of 1973 to 
prohibit discrimination on the basis of handicap in programs or 
activities conducted by Executive agencies or the United States Postal 
Service.



Sec. 1181.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1181.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.

[[Page 568]]

    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one of more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addition and 
alcholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified handicapped person means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can achieve the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature; or
    (2) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity.
    (3) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1181.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.

[51 FR 4578 and 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]
Secs. 1181.104--1181.109  [Reserved]



Sec. 1181.110  Self-evaluation.

    (a) The agency shall, by April 9, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.

[[Page 569]]

    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspections:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1181.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.
Secs. 1181.112--1181.129  [Reserved]



Sec. 1181.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualfied handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.

[[Page 570]]

    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.
Secs. 1181.131--1181.139  [Reserved]



Sec. 1181.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.
Secs. 1181.141--1181.148  [Reserved]



Sec. 1181.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1181.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1181.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons; or
    (2) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1181.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
handicapped persons receive the benefits and services of the program or 
activity.
    (b) Methods. The agency may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to beneficiaries, 
home visits, delivery of services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible rolling stock, or any other methods that result in 
making its programs or activities readily accessible to and usable by 
handicapped persons. The agency is nor required to make structural 
changes in existing facilities where other methods are effective in 
achieving compliance with this section. The agency, in making 
alterations to existing buildings, shall meet accessibility requirements 
to the extent compelled by the Architectural Barriers Act of 1968, as 
amended (42 U.S.C. 4151-4157), and any regulations implementing it. In 
choosing among available methods for meeting the requirements of this 
section, the agency shall give priority to those methods that offer 
programs and activities to qualified handicapped persons in the most 
integrated setting appropriate.

[[Page 571]]

    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by June 6, 1986, except that 
where structural changes in facilities are undertaken, such changes 
shall be made by April 7, 1989, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by October 7, 1986, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.

[51 FR 4578 and 4579, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986]



Sec. 1181.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151-4157), as established in 41 
CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.
Secs. 1181.152--1181.159  [Reserved]



Sec. 1181.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1181.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or

[[Page 572]]

her designee after considering all agency resources available for use in 
the funding and operation of the conducted program or activity, and must 
be accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
handicapped persons receive the benefits and services of the program or 
activity.
Secs. 1181.161--1181.169  [Reserved]



Sec. 1181.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director shall be responsible for coordinating 
implementation of this section. Complaints may be sent to Director, 
Institute of Museum Services, 1100 Pennsylvania Ave., NW., room 510, 
Washington, DC 20506.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), is not readily 
accessible to and usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found;
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1181.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.

[51 FR 4578 and 4579, Feb. 5, 1986, as amended at 51 FR 4578, Feb. 5, 
1986]
Secs. 1181.171--1181.999  [Reserved]



PART 1183--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
1183.1  Purpose and scope of this part.
1183.2  Scope of subpart.

[[Page 573]]

1183.3  Definitions.
1183.4  Applicability.
1183.5  Effect on other issuances.
1183.6  Additions and exceptions.

                    Subpart B--Pre-Award Requirements

1183.10  Forms for applying for grants.
1183.11  State plans.
1183.12  Special grant or subgrant conditions for ``high-risk'' 
          grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

1183.20  Standards for financial management systems.
1183.21  Payment.
1183.22  Allowable costs.
1183.23  Period of availability of funds.
1183.24  Matching or cost sharing.
1183.25  Program income.
1183.26  Non-Federal audit.

                    Changes, Property, and Subawards

1183.30  Changes.
1183.31  Real property.
1183.32  Equipment.
1183.33  Supplies.
1183.34  Copyrights.
1183.35  Subawards to debarred and suspended parties.
1183.36  Procurement.
1183.37  Subgrants.

              Reports, Records, Retention, and Enforcement

1183.40  Monitoring and reporting program performance.
1183.41  Financial reporting.
1183.42  Retention and access requirements for records.
1183.43  Enforcement.
1183.44  Termination for convenience.

                 Subpart D--After-the-Grant Requirements

1183.50  Closeout.
1183.51  Later disallowances and adjustments.
1183.52  Collection of amounts due.

                   Subpart E--Entitlements [Reserved]

    Authority: 20 U.S.C. 961--968.

    Source: 53 FR 8083, 8087, Mar. 11, 1988, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 
53 FR 8028, March 11, 1988.



                           Subpart A--General



Sec. 1183.1  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 1183.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 1183.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for: (1) Goods and other 
tangible property received; (2) services performed by employees, 
contractors, subgrantees, subcontractors, and other payees; and (3) 
other amounts becoming owed under programs for which no current services 
or performance is required, such as annuities, insurance claims, and 
other benefit payments.
    Accrued income means the sum of: (1) Earnings during a given period 
from services performed by the grantee and goods and other tangible 
property delivered to purchasers, and (2) amounts becoming owed to the 
grantee for which no current services or performance is required by the 
grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can

[[Page 574]]

be treated only on a program-by-program or grant-by-grant basis, such as 
kinds of activities that can be supported by grants under a particular 
program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For nonconstruction grants, the SF-269 
``Financial Status Report'' (or other equivalent report); (2) for 
construction grants, the SF-271 ``Outlay Report and Request for 
Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 
688) certified by the Secretary of the Interior as eligible for the 
special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under state law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of

[[Page 575]]

in-kind contributions applied, and the amount of cash advances and 
payments made to contractors and subgrantees. For reports prepared on an 
accrued expenditure basis, outlays are the sum of actual cash 
disbursements, the amount of indirect expense incurred, the value of 
inkind contributions applied, and the new increase (or decrease) in the 
amounts owed by the grantee for goods and other property received, for 
services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than equipment 
as defined in this part.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. Termination does not include: (1) Withdrawal 
of funds awarded on the basis of the grantee's underestimate of the 
unobligated balance in a prior period; (2) Withdrawal of the unobligated 
balance as of the expiration of a grant; (3) Refusal to extend a grant 
or award additional funds, to make a competing or noncompeting 
continuation, renewal, extension, or supplemental award; or (4) voiding 
of a grant upon determination that the award was obtained fraudulently, 
or was otherwise illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the

[[Page 576]]

amount of obligations incurred by the grantee that has not been paid. 
For reports prepared on an accrued expenditure basis, they represent the 
amount of obligations incurred by the grantee for which an outlay has 
not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 1183.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 1183.6, or:
    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under title V, subtitle D, chapter 2, 
section 583--the Secretary's discretionary grant program) and titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and Part C of title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and

[[Page 577]]

    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 1183.4(a) (3) through (8) are subject to subpart E.



Sec. 1183.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 1183.6.



Sec. 1183.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 1183.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 1183.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:

[[Page 578]]

    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for approval only the amended portions of 
the plan.



Sec. 1183.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grante or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 1183.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real

[[Page 579]]

and personal property, and other assets. Grantees and subgrantees must 
adequately safeguard all such property and must assure that it is used 
solely for authorized purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 1183.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using

[[Page 580]]

such method is the unwillingness or inability of the grantee to provide 
timely advances to the subgrantee to meet the subgrantee's actual cash 
disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 1183.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 1183.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          
For-profit organization other than a        48 CFR Part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------


[[Page 581]]



Sec. 1183.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 1183.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 1183.25, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 1183.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions

[[Page 582]]

shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 1183.22, in the same way as depreciation or 
use allowances for purchased equipment and buildings. The

[[Page 583]]

amount of depreciation or use allowances for donated equipment and 
buildings is based on the property's market value at the time it was 
donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the grantee. This requirement 
will also be imposed by the grantee on subgrantees.



Sec. 1183.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 1183.34.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 1183.31 and 
1183.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g) (2) and (3) of this 
section, program income in excess of any limits stipulated shall also be 
deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be

[[Page 584]]

used for the purposes and under the conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 1183.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act of 1984 (31 
U.S.C. 7501-7) and Federal agency implementing regulations. The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial and compliance 
audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act, that receive Federal 
financial assistance and provide $25,000 or more of it in a fiscal year 
to a subgrantee shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Requirements for Grants and Other Agreements with 
Institutions of Higher Education, Hospitals and Other Nonprofit 
Organizations'' have met the audit requirement. Commercial contractors 
(private forprofit and private and governmental organizations) providing 
goods and services to State and local governments are not required to 
have a single audit performed. State and local govenments should use 
their own procedures to ensure that the contractor has complied with 
laws and regulations affecting the expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 1183.36 
shall be followed.

                    Changes, Property, and Subawards



Sec. 1183.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 1183.22) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved

[[Page 585]]

budget, whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 1183.36 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 1183.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.



Sec. 1183.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired

[[Page 586]]

with grant funds and acquiring replacement real property under the same 
program, the net proceeds from the disposition may be used as an offset 
to the cost of the replacement property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 1183.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 1183.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place will, as a minimum, meet 
the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.

[[Page 587]]

    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third part 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 1183.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 1183.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.



Sec. 1183.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 1183.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 1183.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will

[[Page 588]]

follow the same policies and procedures it uses for procurements from 
its non-Federal funds. The State will ensure that every purchase order 
or other contract includes any clauses required by Federal statutes and 
executive orders and their implementing regulations. Other grantees and 
subgrantees will follow paragraphs (b) through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative anaylsis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.

[[Page 589]]

    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 1183.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services, geographic location may be 
a selection criteria provided its application leaves an appropriate 
number of qualified firms, given the nature and size of the project, to 
compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or

[[Page 590]]

other salient requirements of a procurement. The specific features of 
the named brand which must be met by offerors shall be clearly stated; 
and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 1183.36(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with more than one source 
submitting an offer, and either a fixed-price or cost-reimbursement type 
contract is awarded. It is generally used when conditions are not 
appropriate for the use of sealed bids. If this method is used, the 
following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the

[[Page 591]]

most qualified competitor is selected, subject to negotiation of fair 
and reasonable compensation. The method, where price is not used as a 
selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular 
procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price resonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the

[[Page 592]]

complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 1183.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the system. Under a self-certification procedure, 
awarding agencies may wish to rely on written assurances from the 
grantee or subgrantee that it is complying with these standards. A 
grantee or subgrantee will cite specific procedures, regulations, 
standards, etc., as being in compliance with these requirements and have 
its system available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond,

[[Page 593]]

certified check, or other negotiable instrument accompanying a bid as 
assurance that the bidder will, upon acceptance of his bid, execute such 
contractual documents as may be required within the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to that specific 
contract for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the

[[Page 594]]

Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871).

[53 FR 8083, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19645, Apr. 
19, 1995]



Sec. 1183.37  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 1183.42 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 1183.10;
    (2) Section 1183.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 1183.21; and
    (4) Section 1183.50.

              Reports, Records, Retention, and Enforcement



Sec. 1183.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semi-annual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports shall be due 90 days after the grant year, quarterly or 
semi-annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.

[[Page 595]]

    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 1183.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a)(2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extend required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that the Federal agency finds unnecessary for 
its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with paragraph Sec. 1183.41(e)(2)(iii) of this section.

[[Page 596]]

    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accural basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction 
grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 1183.41(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 1183.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 1183.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.

[[Page 597]]

    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 1183.41(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 1183.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 1183.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 1183.41(b)(2).



Sec. 1183.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 1183.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits its expenditure report for 
the last quarter of the Federal fiscal year. In all other cases, the 
retention period starts on the day the grantee submits its final 
expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer

[[Page 598]]

usage chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records Unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 1183.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 1183.35).

[[Page 599]]



Sec. 1183.44  Termination for convenience.

    Except as provided in Sec. 1183.43 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 1183.43 
or paragraph (a) of this section.



                 Subpart D--After-the-Grant Requirements



Sec. 1183.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:
In accordance with Sec. 1183.32(f), a grantee must submit an inventory 
of all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.



Sec. 1183.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 1183.42;
    (d) Property management requirements in Secs. 1183.31 and 1183.32; 
and
    (e) Audit requirements in Sec. 1183.26.



Sec. 1183.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4

[[Page 600]]

CFR Ch. II). The date from which interest is computed is not extended by 
litigation or the filing of any form of appeal.



                   Subpart E--Entitlements [Reserved]



PART 1185--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENT WIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                           Subpart A--General

Sec.
1185.100  Purpose.
1185.105  Definitions.
1185.110  Coverage.
1185.115  Policy.

                       Subpart B--Effect of Action

1185.200  Debarment or suspension.
1185.205  Ineligible persons.
1185.210  Voluntary exclusion.
1185.215  Exception provision.
1185.220  Continuation of covered transactions.
1185.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

1185.300  General.
1185.305  Causes for debarment.
1185.310  Procedures.
1185.311  Investigation and referral.
1185.312  Notice of proposed debarment.
1185.313  Opportunity to contest proposed debarment.
1185.314  Debarring official's decision.
1185.315  Settlement and voluntary exclusion.
1185.320  Period of debarment.
1185.325  Scope of debarment.

                          Subpart D--Suspension

1185.400  General.
1185.405  Causes for suspension.
1185.410  Procedures.
1185.411  Notice of suspension.
1185.412  Opportunity to contest suspension.
1185.413  Suspending official's decision.
1185.415  Period of suspension.
1185.420  Scope of suspension.

        Subpart E--Responsibilities of GSA, IMS and Participants

1185.500  GSA responsibilities.
1185.505  IMS responsibilities.
1185.510  Participants' responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

1185.600  Purpose.
1185.605  Definitions.
1185.610  Coverage.
1185.615  Grounds for suspension of payments, suspension or termination 
          of grants, or suspension or debarment.
1185.620  Effect of violation.
1185.625  Exception provision.
1185.630  Certification requirements and procedures.
1185.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

Appendix A to Part 1185--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions

Appendix B to Part 1185--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions

Appendix C to Part 1185--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: 20 U.S.C. 961-968; 41 U.S.C. 701 et seq.; E.O. 12549, 3 
CFR, 1986 Comp., p. 189.

    Source: 53 FR 19202, 19204, May 26, 1988, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notices 
published at 55 FR 21679, May 25, 1990, and 60 FR 33036, June 26, 1995.

    Editorial Notes: 
    (1) For nomenclature change to part 1185, see 53 FR 19202, May 26, 
1988.
    (2) For additional information, see related documents published at 
52 FR 20360, May 29, 1987, 53 FR 19160, May 26, 1988, and 53 FR 34474, 
September 6, 1988.



                           Subpart A--General



Sec. 1185.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines

[[Page 601]]

promulgated by the Office of Management and Budget under section 6 of 
the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 1185.105), and participants who have voluntarily 
excluded themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040, 33063, June 26, 1995]



Sec. 1185.105  Definitions.

     Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
     Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
     Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
     Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
     Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
     Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing

[[Page 602]]

regulations, the equal employment opportunity acts and executive orders, 
or the environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
     IMS. Institute of Museum Services.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
     Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
     Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
     Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
     Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
     Principal. Officer, director, owner, partner, key employee, or 
other person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    (2) [Reserved]
     Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
     Respondent. A person against whom a debarment or suspension action 
has been initiated.
     State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
     Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
     Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act

[[Page 603]]

proceedings as may ensue. A person so excluded is ``suspended.''
     Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.

[53 FR 19202, 19204, May 26, 1988, as amended at 60 FR 33041, 33063, 
June 26, 1995]



Sec. 1185.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart B, ``Effect of Action,'' Sec. 1185.200, ``Debarment 
or suspension,'' sets forth the consequences of a debarment or 
suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 1185.110(a). Sections 1185.325, ``Scope of 
debarment,'' and 1185.420, ``Scope of suspension,'' govern

[[Page 604]]

the extent to which a specific participant or organizational elements of 
a participant would be automatically included within a debarment or 
suspension action, and the conditions under which affiliates or persons 
associated with a participant may also be brought within the scope of 
the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19202, 19204, May 26, 1988, as amended at 60 FR 33041, 33063, 
June 26, 1995]



Sec. 1185.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 1185.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 1185.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 1185.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and

[[Page 605]]

    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041, 33063, June 26, 1995]



Sec. 1185.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 1185.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 1185.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 1185.315 are 
excluded in accordance with the terms of their settlements. IMS shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 1185.215  Exception provision.

    IMS may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a written determination by the agency head or an 
authorized designee stating the reason(s) for deviating from the 
Presidential policy established by Executive Order 12549 and 
Sec. 1185.200. However, in accordance with the President's stated 
intention in the Executive Order, exceptions shall be granted only 
infrequently. Exceptions shall be reported in accordance with 
Sec. 1185.505(a).

[60 FR 33041, 33063, June 26, 1995]



Sec. 1185.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 1185.215.

[60 FR 33041, 33063, June 26, 1995]



Sec. 1185.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 1185.215 or Sec. 1185.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See Appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.

[60 FR 33041, 33063, June 26, 1995]



                          Subpart C--Debarment



Sec. 1185.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 1185.305, using procedures established in Secs. 1185.310 through 
1185.314. The existence of a cause for debarment, however, does not 
necessarily require that the person be debarred; the seriousness of the 
person's acts or omissions and

[[Page 606]]

any mitigating factors shall be considered in making any debarment 
decision.



Sec. 1185.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 1185.300 through 1185.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 1185.215 or Sec. 1185.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 1185.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in Sec. 1185.615 of 
this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4965, Jan. 31, 
1989]



Sec. 1185.310  Procedures.

    IMS shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 1185.311 through 1185.314.



Sec. 1185.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 1185.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 1185.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 1185.311 through Sec. 1185.314, and 
any other IMS

[[Page 607]]

procedures, if applicable, governing debarment decisionmaking; and
    (e) Of the potential effect of a debarment.



Sec. 1185.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 1185.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 1185.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 1185.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, IMS may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).

[[Page 608]]



Sec. 1185.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see 1185.305(c)(5)), the period of debarment 
shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 1185.311 through 1185.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19201 and 19204, May 26, 1988, as amended at 54 FR 4965, Jan. 31, 
1989]



Sec. 1185.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 1185.311 through 
1185.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance

[[Page 609]]

of the benefits derived from the conduct shall be evidence of such 
knowledge, approval, or acquiescence.



                          Subpart D--Suspension



Sec. 1185.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 1185.405 using procedures established in Secs. 1185.410 
through 1185.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 1185.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 1185.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 1185.400 through 1185.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 1185.305(a); or
    (2) That a cause for debarment under Sec. 1185.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 1185.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. IMS shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Sec. 1185.411 through Sec. 1185.413.



Sec. 1185.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 1185.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Secs. 1185.411 through 1185.413 and any 
other IMS procedures, if applicable, governing suspension 
decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 1185.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on

[[Page 610]]

the same facts as the suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 1185.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 1185.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 1185.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 1185.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 1185.325), except that the procedures of Secs. 1185.410 
through 1185.413 shall be used in imposing a suspension.



        Subpart E--Responsibilities of GSA, IMS and Participants



Sec. 1185.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references

[[Page 611]]

when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 1185.505  IMS responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which IMS has granted exceptions under Sec. 1185.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 1185.500(b) and of 
the exceptions granted under Sec. 1185.215 within five working days 
after taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) IMS officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (Tel. ).
    (e) IMS officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.



Sec. 1185.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in Appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(Tel. ). Adverse information on the certification will not necessarily 
result in denial of participation. However, the certification, and any 
additional information pertaining to the certification submitted by the 
participant, shall be considered in the administration of covered 
transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in Appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to IMS if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated notice 
to the participant to which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21704, May 25, 1990, unless otherwise noted.

[[Page 612]]



Sec. 1185.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 1185.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 1185.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of

[[Page 613]]

local government. A State instrumentality will be considered part of the 
State government if it has a written determination from a State 
government that such State considers the instrumentality to be an agency 
of the State government.



Sec. 1185.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.



Sec. 1185.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 1185.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a) through (g) and/or (B) of the 
certification (Alternate I to Appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to Appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.



Sec. 1185.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 1185.615, and in accordance with applicable law, the grantee shall 
be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 1185.320(a)(2) of this 
part).



Sec. 1185.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 1185.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in Appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of

[[Page 614]]

such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 1185.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall

[[Page 615]]

report the conviction, in writing, within 10 calendar days, to his or 
her Federal agency grant officer, or other designee, unless the Federal 
agency has designated a central point for the receipt of such notices. 
Notification shall include the identification number(s) for each of the 
Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

Appendix A to Part 1185--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

[[Page 616]]

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33041, 33062, June 26, 1995]

Appendix B to Part 1185--Certification Regarding Debarment, Suspension, 
  Ineligibilty and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the

[[Page 617]]

Federal Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042, 33062, June 26, 1995]

  Appendix C to Part 1185--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;

[[Page 618]]

    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.

[55 FR 21690, 21704, May 25, 1990]



PARTS 1186--1199  [RESERVED]

[[Page 619]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 621]]

            Material Approved for Incorporation by Reference

                     (Revised as of October 1, 1996)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR Part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


45 CFR CHAPTER VI (PARTS 600-670)

NATIONAL SCIENCE FOUNDATION


American National Standards Institute, Inc.

  1430 Broadway, New York, NY 10018
ANSI A117.1-61 (R 71) Specifications for Making 
  Buildings and Facilities Accessible to, and 
  Usable by, the Physically Handicapped...........             605.23(c)


                                                                    Chap.

[[Page 623]]



                    Table of CFR Titles and Chapters



                   (Revised as of September 30, 1996)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 624]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)

[[Page 625]]

      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
     XXXIX  Economic Analysis Staff, Department of Agriculture 
                (Parts 3900--3999)
        XL  Economics Management Staff, Department of Agriculture 
                (Parts 4000--4099)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 626]]

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                399)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 627]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

[[Page 628]]

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)

[[Page 629]]

        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 630]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3699)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)

[[Page 631]]

         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)

[[Page 632]]

        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)

[[Page 633]]

       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

[[Page 634]]

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

[[Page 635]]

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)

[[Page 636]]

      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Saint Lawrence Seaway Development Corporation (Great 
                Lakes Pilotage), Department of Transportation 
                (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)

[[Page 637]]

        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

[[Page 638]]

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Regulatory Agencies (Fishing and 
                Whaling) (Parts 300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 639]]





           Alphabetical List of Agencies Appearing in the CFR



                   (Revised as of September 30, 1996)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Analysis Staff                         7, XXXIX
  Economic Research Service                       7, XXXVII
  Economics Management Staff                      7, XL
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII

[[Page 640]]

American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51

[[Page 641]]

  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Analysis Staff                           7, XXXIX
Economic Development Administration               13, III
Economics Management Staff                        7, XL
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV

[[Page 642]]

Farm Service Agency                               7, VII, XVIII
Farmers Home Administration                       7, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Fishing and Whaling, International Regulatory     50, III
     Agencies
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105

[[Page 643]]

  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
     Secretary
[[Page 644]]

  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Regulatory Agencies (Fishing and    50, III
     Whaling)
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II

[[Page 645]]

Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV

[[Page 646]]

Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV; 46, III
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II

[[Page 647]]

  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV; 46, III
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 649]]



List of CFR Sections Affected


All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
volumes.

                                  1986

45 CFR
                                                                   51 FR
                                                                    Page
Chapter V
531.1  (l) added...................................................10631
531.2  (a) and (l) amended.........................................10632
Chapter VI
611  Authority citation revised....................................22938
611.8  (c) revised.................................................22938
611.10  (e) revised................................................22939
680.14  (b) and (c) removed; (d) and (e) redesignated as (b) and 
        (c)........................................................22939
683.30  (d) removed................................................22939
Chapter VIII
801  Appendix A amended.............................................9794
Chapter XI
1153  Added.................................................22895, 22896
1153.170  (c) revised..............................................22895
1175  Added...................................................4578, 4579
1175.103  Corrected.................................................7543
1175.150  (c) corrected.............................................7543
1175.170  (c) revised...............................................4578
1177  Added........................................................20484
1178  Added........................................................20974
1180  Authority citation revised...................................43353
1180.11  Amended (OMB number)......................................43354
1180.20  (e), (f), and (g) revised.................................43353
1180.70  Revised...................................................43354
1181  Added...................................................4578, 4579
1181.103  Corrected.................................................7543
1181.150  (c) corrected.............................................7543
1181.170  (c) revised...............................................4578

                                  1987

45 CFR
                                                                   52 FR
                                                                    Page
Chapter V
Chapter V  Revised.................................................17556
501.5  (a)(3) correctly revised....................................19731
503  Authority citation revised....................................13680
503.13  Redesignated from 503.14 and revised.......................13680
503.14  Redesignated as 503.13 and revised.........................13680
540--543 (Subchapter D)  Subchapter and parts removed..............17556
560 (Subchapter E)  Subchapter and part removed....................17556
580--581 (Subchapter F)  Subchapter and parts removed..............17556
Chapter VI
612  Authority citation revised....................................43073
612.6  Removed.....................................................43073
612.8  (a)(7) revised..............................................43073
612.9  Added.......................................................43074
612.10  Added......................................................43074
612.11  Added......................................................43075
612.12  Added......................................................43076
612.13  Added......................................................43076
689  Added.........................................................24468
Chapter VIII
801  Authority citation revised......................................416
    Appendix A amended...............................................416
Chapter X
Chapter X  Heading revised.........................................11074

[[Page 650]]

Technical correction...............................................25603
Chapter XI
1100  Revised......................................................48266
1179  Added........................................................28472
1180.73  (b) revised................................................5770

                                  1988

45 CFR
                                                                   53 FR
                                                                    Page
Chapter VI
602  Added....................................................8080, 8087
613.6  (a) revised.................................................42951
620  Added; nomenclature change.............................19201, 19204
620.105  (w) added; eff. 10-1-88...................................19201
670.30  (o), (p), and (q) added....................................27991
670.34  (a) (1) and (4) revised; (a) (5) through (11) and (d) 
        added......................................................27991
Chapter VIII
801  Appendix A amended............................................29895
    Appendix A corrected...........................................30379
    Appendix A amended.............................................45247
Chapter X
1080  Added (Sec. 1080.8 effective date pending in part)...........23571
Chapter XI
1154  Added; nomenclature change............................19201, 19204
1154.105  (w) added; eff. 10-1-88..................................19201
1157  Added...................................................8081, 8087
1169  Added; eff. 10-1-88...................................19201, 19204
    Nomenclature change; eff. 10-1-88..............................19202
1169.105  (w) added; eff. 10-1-88..................................19202
1174  Added...................................................8082, 8087
1180.77 (Subpart E)  Added.........................................31338
1183  Added...................................................8083, 8087
1185  Added; nomenclature change; eff. 10-1-88..............19202, 19204
1185.105  (w) added; eff. 10-1-88..................................19202

                                  1989

45 CFR
                                                                   54 FR
                                                                    Page
Chapter VI
606  Added..........................................................4791
620  Heading and authority citation revised.........................4964
    Technical correction............................................6363
620.305  (c) (3) and (4) amended; (c)(5) added; interim.............4964
620.320  (a) revised; interim.......................................4964
620.600--620.630 (Subpart F)  Added; interim........................4964
620  Appendix C added; interim......................................4964
670.4  (c) revised.................................................24710
670.34  Revised....................................................24710
670.50--670.72 (Subpart K)  Added...................................7132
Chapter X
1080  Revised.......................................................6372
Chapter XI
1154  Heading and authority citation revised........................4964
    Technical correction............................................6363
1154.305  (c) (3) and (4) amended; (c)(5) added; interim............4964
1154.320  (a) revised; interim......................................4964
1154.600--1154.630 (Subpart F)  Added; interim......................4964
1154  Appendix C added; interim.....................................4964
1169  Heading and authority citation revised........................4964
    Technical correction............................................6363
1169.305  (c) (3) and (4) amended; (c)(5) added; interim............4964
1169.320  (a) revised; interim......................................4964
1169.600--1169.630 (Subpart F)  Added; interim......................4965
1169  Appendix C added; interim.....................................4965
1185  Heading and authority citation revised........................4965
    Technical correction............................................6363
1185.305  (c) (3) and (4) amended; (c)(5) added; interim............4965
1185.320  (a) revised; interim......................................4965
1185.600--1185.630 (Subpart F)  Added; interim......................4965
1185  Appendix C added; interim.....................................4965

                                  1990

45 CFR
                                                                   55 FR
                                                                    Page
Chapter VI
604  Added; interim............................................6737,6754
605  Authority citation and heading revised........................52142
605.23  (c) revised.........................................52142, 52138
613.6  (c) and (d) added...........................................12645

[[Page 651]]

620  Regulation at 54 FR 4950, 4964 confirmed......................21703
620.305  Regulation at 54 FR 4950, 4964 confirmed..................21703
620.320  Regulation at 54 FR 4950, 4964 confirmed..................21703
620.600--620.635 (Subpart F)   Revised......................21688, 21703
620  Appendix C revised.....................................21688, 21703
Chapter VII
704  Authority citation revised.....................................9884
704.1  (e), (f)(1)(vii), and (2) revised............................9884
    (g)(1) and (2) amended..........................................9886
  707 Added.........................................................5786
Chapter VIII
801  Authority citation revised....................................23884
    Corrected......................................................26693
    Authority citation revised; sectional authority citations 
removed............................................................29206
    Appendix A amended......................................23884, 29206
Chapter XI
1151  Authority citation revised...................................52142
1151.23  (a) amended; (b) revised...........................52142, 52138
1154  Regulation at 54 FR 4950, 4964 confirmed.....................21703
1154.305  Regulation at 54 FR 4950, 4964 confirmed.................21703
1154.320  Regulation at 54 FR 4950, 4964 confirmed.................21703
1154.600--1154.630 (Subpart F)  Revised.....................21688, 21703
1154  Appendix C revised....................................21688, 21703
1158  Added; interim..........................................6737, 6755
1168  Added; interim..........................................6737, 6755
1169  Regulation at 54 FR 4950, 4964 confirmed.....................21703
1169.305  Regulation at 54 FR 4950, 4964 confirmed.................21703
1169.320  Regulation at 54 FR 4950, 4964 confirmed.................21703
1169.600--1169.635 (Subpart F)  Revised.....................21688, 21703
1169  Appendix C revised....................................21688, 21703
1170  Authority citation revised...................................52142
1170.33  (a) amended; (b) revised...........................52142, 52138
1180  Authority citation revised...................................51104
1180.11  (c)(4) revised............................................10461
1180.44  Revised...................................................51104
1180.73  (b) revised...............................................10461
1185.305  Regulation at 54 FR 4950, 4965 confirmed.................21703
1185.320  Regulation at 54 FR 4950, 4965 confirmed.................21703
1185.600--1185.635 (Subpart F)  Revised.....................21688, 21704
1185  Appendix C revised....................................21690, 21704

                                  1991

45 CFR
                                                                   56 FR
                                                                    Page
Chapter VI
612.1  Revised.....................................................47415
612.2  (a) revised.................................................47416
612.3  (b) and (c) revised.........................................47416
612.4  Revised.....................................................47416
612.6  Added.......................................................47416
612.7  (a), (c) and (d) amended....................................47417
612.8  (a)(2)(ii) revised..........................................47417
612.10  (a) and (d) revised........................................47417
612.11  (a) and (c) revised........................................47417
613.4  (c) revised.................................................47417
670.28  (a) and (b) revised; (c) added.............................49148
670.30  (i) removed................................................49148
670.34  (b)(29) through (32) added.................................49148
689  Revised.......................................................22287
690  Added..................................................28012, 28022
690.101  (b)(5) corrected..........................................29756
690.103  (f) corrected.............................................29756
Chapter VIII
801  Appendix A amended.............................................9180
    Appendix A amended.............................................47678
Chapter XI
1160  Revised......................................................49848
1160.4  (e) introductory text corrected............................51842
1180.20  (f)(1) revised............................................10178
1180.77  (l) removed; (m) redesignated as (l)......................10178

                                  1992

45 CFR
                                                                   57 FR
                                                                    Page
Chapter VI
641  Added.........................................................40339
650  Revised.......................................................18053

[[Page 652]]

Chapter VIII
801  Appendix A amended.....................................32448, 36018
Chapter X
Chapter X  Heading revised.........................................27946
1080  Authority citation revised...................................27946
1080.4  (b), (c) and (d) redesignated as (c), (d) and (e); new 
        (b), (f) and (g) added.....................................27946
1080.5  (b)(2) removed; (b)(3) through (7) redesignated as (b)(2) 
        through (6); (b)(1) introductory text revised, new (b)(3), 
        (5) and (6) revised; new (b)(7) added; OMB number..........27946
1080.6  (a) revised; (c) amended...................................27946
1080.8  Revised....................................................27946
Chapter XI
1180.8  Added......................................................36905
1180.9  Revised....................................................36905
1180.15  Revised...................................................36905
1180.16  Revised...................................................36905
1180.20  (b)(3) revised............................................36905

                                  1993

45 CFR
                                                                   58 FR
                                                                    Page
Chapter VI
607  Added.........................................................68769
608  Added.........................................................68772
670.50--670.72 (Subpart K)  Redesignated as Part 672...............34718
670.50--670.72 (Subpart K)  Correctly redesignated as Part 672.....34718
671  Added.........................................................34719
    Regulation at 58 FR 34719 eff. date corrected to 8-15-93.......54522
672  Redesignated from 670.50--670.72 (Subpart K)..................34718
    Authority citation added.......................................34719
    Regulation at 58 FR 34718 correctly redesignated from 670.50--
670.72 (Subpart K); eff. date corrected to 8-15-93.................54522
Chapter VII
708  Added..........................................................4351
Chapter VIII
801  Appendix A amended............................................29791

                                  1994

45 CFR
                                                                   59 FR
                                                                    Page
Chapter VI
606.70  (c), (d) and (f) introductory text amended.................37437
610  Removed.......................................................37437
611.9  (b) amended.................................................37437
611  Appendix A amended............................................37437
612.2  (b) amended.................................................37437
    (c) amended....................................................37438
612.3  (a), (c) and (f) amended....................................37438
613.2  (a) amended.................................................37438
613.3  (a) amended.................................................37438
613.4  (a) amended.................................................37438
614.2  (b) amended.................................................37438
615  Added.........................................................44056
630  Removed.......................................................37438
640.2  (a) revised.................................................37438
641.14  (m) amended................................................37438
641.16  (d) amended................................................37438
641.20  Amended....................................................37438
650.4  (a) amended.................................................37438
650.11  Amended....................................................37438
670  Authority citation revised....................................42519
670.4  (c) revised.................................................42519
670.34  (b)(33) through (36) added.................................42519
671.2  Amended.....................................................37438
671.6  (b) amended.................................................37438
672.3  Heading and (f) through (i) amended.........................37438
689.6  (a) amended.................................................37438
689.7  (a) amended.................................................37439
Chapter VIII
801  appendix A amended............................................51387
Chapter X
1180.11  (c)(4) revised............................................55593
Chapter XI
1180.78  Added.....................................................15344

                                  1995

45 CFR
                                                                   60 FR
                                                                    Page
Chapter VI
602.36  (d), (g), (h) and (i) revised.......................19639, 19645
620  Authority citation revised....................................33062
620.100  Revised............................................33040, 33062
620.105  Amended............................................33041, 33062
620.110  (c) revised........................................33041, 33062
620.200  Revised............................................33041, 33062
620.215  Revised............................................33041, 33062
620.220  Revised............................................33041, 33062

[[Page 653]]

620.225  Revised............................................33041, 33062
620  Appendixes A and B revised.............................33042, 33062
670.30  Revised....................................................46235
670.34  (b)(30) removed; (b)(31) through (36) redesignated as 
        (b)(30) through (35).......................................46235
Chapter VIII
Chapter X
1010  Removed......................................................26375
1050  Removed......................................................26375
1060  Removed......................................................26375
1061  Removed......................................................26375
1064  Removed......................................................26375
1067  Removed......................................................26375
1068  Removed......................................................26375
1069  Removed......................................................26375
1070  Removed......................................................26375
1076  Removed......................................................26375
Chapter XI
1154  Authority citation revised...................................33062
1154.100  Revised...........................................33040, 33062
1154.105  Amended...........................................33041, 33062
1154.110  (c) revised.......................................33041, 33062
1154.200  Revised...........................................33041, 33062
1154.215  Revised...........................................33041, 33062
1154.220  Revised...........................................33041, 33062
1154.225  Revised...........................................33041, 33062
1154  Appendixes A and B revised............................33042, 33062
1157.36  (d), (g), (h) and (i) revised......................19639, 19645
1160.1  (a) revised................................................42465
1160.4  Redesignated as 1160.5; new 1160.4 added...................42466
1160.5  Redesignated as 1160.6; new 1160.5 redesignated from 
        1160.4.....................................................42466
1160.6  Redesignated as 1160.7; new 1160.6 redesignated from 
        1160.5.....................................................42466
1160.7  Redesignated as 1160.8; new 1160.7 redesignated from 
        1160.6.....................................................42466
1160.8  Redesignated as 1160.9; new 1160.8 redesignated from 
        1160.7.....................................................42466
1160.9  Redesignated as 1160.10; new 1160.9 redesignated from 
        1160.8.....................................................42466
1160.10  Redesignated as 1160.11; new 1160.10 redesignated from 
        1160.9.....................................................42466
1160.11  Redesignated as 1160.12; new 1160.11 redesignated from 
        1160.10....................................................42466
1160.12  Redesignated from 1160.11.................................42466
1169  Authority citation revised...................................33062
1169.100  Revised...........................................33040, 33062
1169.105  Amended...........................................33041, 33062
1169.110  (c) revised.......................................33041, 33062
1169.200  Revised...........................................33041, 33063
1169.215  Revised...........................................33041, 33063
1169.220  Revised...........................................33041, 33063
1169.225  Revised...........................................33041, 33063
1169  Appendixes A and B revised............................33042, 33063
1174.36  (d), (g), (h) and (i) revised......................19639, 19645
1180.5  (f) added..................................................63964
1180.17  Revised...................................................63964
1180.20  (f)(1) revised............................................63964
1180.35  Heading, (a) and (b) revised..............................63964
1180.40  Removed...................................................63964
1180.41  Revised...................................................63964
1180.45  (a) revised...............................................63964
1180.48  Revised...................................................63964
1180.49  Revised...................................................63964
1180.50  Revised...................................................63964
1180.58  Revised...................................................63965
1180.59  Revised...................................................63965
1180.75  (d) revised...............................................63965
1183.36  (d), (g), (h) and (i) revised......................19639, 19645
1185  Authority citation revised...................................33063
1185.100  Revised...........................................33040, 33063
1185.105  Amended...........................................33041, 33063
1185.110  (c) revised.......................................33041, 33063
1185.200  Revised...........................................33041, 33063
1185.215  Revised...........................................33041, 33063
1185.220  Revised...........................................33041, 33063
1185.225  Revised...........................................33041, 33063
1185  Appendixes A and B revised............................33042, 33063

                                  1996

  (Regulations published from January 1, 1996, through October 1, 1996)

45 CFR
                                                                   61 FR
                                                                    Page
Chapter VI
601  Authority citation revised....................................51021

[[Page 654]]

601.1  Amended.....................................................51021
601.2  Amended.....................................................51021
601.3  Amended.....................................................51021
601.4  Amended.....................................................51021
601.6  Introductory text, (a) and (d) amended......................51021
605.0  Amended.....................................................51021
612.3  (b), (c), (f) and (g) amended...............................51022
612.7  (a) and (d) amended.........................................51022
613.3  (b) amended.................................................51022
650.15  (b) and (d) amended........................................51022
672.3  (f) amended.................................................51022
Chapter VIII
801  Appendix A amended............................................11748